Markets saw movements yesterday which tested both the highs of 7750 & the lows of 7500 before closing almost unchanged. The budget has pleased most however will the promises turn into implementation is the big question.
Markets saw movements yesterday which tested both the highs of 7750 & the lows of 7500 before closing almost unchanged. The budget has pleased most however will the promises turn into implementation is the big question.
Global cues have again turned volatile & suggest that we should see more time in this consolidation on the Nifty with 7450-7750 being the range.
Rupee, oil, bond yields & global cues will dictate the trend in the short term.
For today we are suggesting going long on key beneficiaries of the budget mainly reality, & shorting the high beta underperformers mainly gold & telecom stocks.
Trading calls for next 3 days:
Longs:
1. Buy DLF: Rs 222, stop loss Rs 216, target Rs 234
2. Buy Sobha Developers: Rs 470, stop loss Rs 460, target Rs 490
Shorts:
1. Sell Reliance Communications: Rs127, stop loss Rs132, target Rs112
2. Sell Titan Company: Rs 327, stop loss Rs 334, target Rs 310
The option we had initiated on short strangle gave excellent returns yesterday of around 36% if you bought back both the Nifty 7700 call @ Rs 45 & the 7500 put@ Rs 90 for Rs 135
WE recommend that you do cover & book profit around those levels as premiums have contracted.
Option strategy:
1. Buy Infosys 3200 put @ Rs 72, stop loss Rs 42, target Rs 122
2. Buy ITC 325 put @ Rs 7, stop loss Rs 3, target Rs 25
3. Short strangle on Nifty:
Sell 7500 put @ Rs 96
Sell 7700 call @ Rs 117
Total Rs 213
Stop loss Rs 253
Look for contraction in premiums to buy around Rs 135
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