Where is Indian Stock Market heading next week April 8, 2013, Momday

The Indian Stock market both NSE and BSE has very bad session this week with markets falling more than 2% and many stocks have fallen five to ten percent. The global market especially European markets have been beaten sharply. And on Friday European stocks DAX, CAC and FTSE were down more than two percent but US market recovered from their days low and closed almost flat. Which shows that US is in the mode of progression and Dow and Nasdaq will move higher in days to come.

So what we can conclude from this. Our own Indian Stock market , shall see gap down opening on Monday and will recover from days low and for the week we can see market moving up around 2-3%.

So what stock should be on our radar. Q4 Result will start flowing from next week.

Buy Hind Uni Lvr ( HUL ) ( Cmp 470 ) for the target of 490 next week.

Sell HCL Tech For target of 720  Cmp 758

Buy R Com for target of 72 Cmp 63

Buy dish Tv for target of 77 Cmp 70

Sell Hexware for target of 87 Cmp 91

Buy Hexaware in Hedge Options Manner before

Traders and short term profit makers should buy the Hedging Option of Hexware on Monday 11 Feb 2013 before the announcement of its Dec Qtr results.

Buy 85 Call @ cmp 3.70 and 80 Put @ 3.30

Hence total cost of Investment = 7 * 2000 ( Lot Size of Hexware ) = 14,000

In the even of very good or bad result the stock will move upward or downward of more than or around 5% , hence the chances of gain are explained below.

Good Result stock moving up 5% = 86 Cost of Call likely 7 and cost of Put likely 2, Hence total selling cost = 9*2000 = 18,000, Therefore a gain of 4000/-.

Viceversa in case of a bad result and stock moving down of around 5%.

The above calculation has been taken on very conservative basis the are likely to be much higher.