EQUITY DERIVATIVES RESEARCH

January contract expired with our positional traders with awesome gains and day traders in small loss.Major sentiment chargers like our RBI credit policy ,US FOMC meeting all over,nothing surprising happened,result calender also almost over,so HOW WILL MARKET MOVE ????

In year we don't have BUDGET in February too,we told in previous post about channel movement of NIFTY in WEEKLY chart ,so upper target of that is 5250 (When January contract started we were near to low of 4450 ),so we  going to short this market with STOP of 5250 in closing basis.Because STOP is bit far we are entering in to OPTIONS.

Major asian market are closed for lunar New Year ,So full strength of participation can be seen on next week in NIFTY.

After news about companies buy back came ,i was just checking companies share holding pattern,in " Shareholding belonging to the category "Public" and holding more than 1% of the Total No.

Position traders ,who are LONG on NIFTY from January Contract after our advising video can exit position if market break 5000 ,after all there is only three trading day left in this month.Our Intraday traders made losses in S&P PUT option which expired yesterday,to limit losses we closed short positions in nifty and increased 4900 PUT to four.Reliance fooled investors and traders.With a small buy back news which got leaked (hope it was leaked !!)stock came back to 800 levels,just think reliance

Reliance Industries (RIL), heavyweight of indian stock market  is going to announce its third quarter results.Stock already moved  108 points back from January 2nd low,with speculative news like ,company going to take 26% in Cable networks .Company didn't confirm it yet.

A bad day in market when your bearish,still hold position in sell side and taken losses for the day,added 4900 PUT to current position @ 34.6 .

Why i didn't exited position today(17.1.2012) ?

a,Yesterdays movement of NIFTY was with out much volume.

b,This pull back started from midcap to Large cap.(good pull backs start from large caps and extend to midcap and smallcap.)

c,S&P 500 rallied 7 days in 9 trading days(till yesterday)due for correction which will trigger global correction .

NIFTY traded in -ve to flat Territory most of the time ,even after inflation figures it moved slowly ,but steady towards +ve near to close.We done an intraday trade  in NIFTY only.We will BUY a CALL OPTIONS if NIFTY if it break 4920 and sustain.

Today US Markets are closed for Martin Luther King Day,volume even in Indian Market was low compare to other day's.So we kept our positions open.

Positions

Bought S&P 500 1290 PUT @ 16.5.

Sold NIFTY FUTURE @ 4871  SL 4950 tgt 4745-4760.

At last they kept euorpe worries aside,after a better inline earnings started coming from US companies,we are closely looking INFOSYS earnings too.So Keep 4800 PUT and ride upside with 1290 call of S&P ,looking a tgt near to 19.So it will be almost like getting 50 points in NIFTY FUTURES.

Closed long position @ 4845 levels as well as 4700 PUT @ 49 levels.(NIFTY Profit=4845-4714)NIFTY PUT loss (76.5-49),making a 5200 approx PROFIT

CURRENT POSITION 

BOUGHT 4800 PUT @ 78 levels 

HOLDING 1290 CALL of S&P 500 @ 10.5 tgt19

* KEPT a BUY FOR FUTURES @ 4780 levels.

Still going with SYNTHETIC LONG CALL Strategy in NIFTY.

BOUGHT NIFTY FUTURES @ 4714

SOLD NIFTY 4700 PUT 107 ,will buy back it lower levels.

BOUGHT 1290 CALL of S&P 500 @ 10.5 tgt 19 (today),especially for closing it tomorrow  (expect a +ve break out in NIFTY.