Bullet Advisory Indian Stocks Weekly— Markets soar up from oversold territory on short covering by narendra nainani

BSE Sensex(9424.24) and Nifty(2874.80) closed 8.6% and 7.3% up respectively last week. Inflation was at 5.64 v/s 5.60 last week. Crude oil was at 42$.Markets soar up from oversold territory on the news of $819 billion stimulus package being passed by U.S.House of Representatives. L&T expressed their interest to buy Satyam to Government of India. Fiedility bought 1.71 Cr. shares of Satyam from the open market. IMF reduced the growth forecast of India to 5.1% from 6.3% in 2009 .
Government announced the price cut of petrol and diesel by five Rs and two Rs. respectively. Reliance Industries got interim order from Bombay high court to sell KG Basin gas till final judgement which is expected by mid March. Support for Sensex is at 9000 and for Nifty 2740.Resistance for Sensex is at 9860 and Nifty is at 3000. Nifty put call ratio was 1.21.Nifty February 2700 put option added open interest. SAIL and RPL added open interest.
SBI and HPCL shaded open interest. Huge position was build up at BHEL February put option strike price 1290 and L&T February call option strike price 680.

Tactics for Future Option players.

1)Hindalco(48.95) Lot Size-1759 Shares
Buy one call option of February strike price 50@3.85 Rs.
Sell one call option of February strike price 55@2.00 Rs.
Premium .Paid=3.85*1759=6772.15 Rs.
Premium Received=2*1759=3518.00 Rs.
Net Premium Paid=6772.15-3518=3254.15 Rs.
Maximum Profit=55-50=5*1759=8795-3254.15=5540.85 Rs.
Maximum Loss=3254.15 Rs.
Break-even=51.85 Rs.

2)Petronet(37.35) February future-Lot Size 2200 shares.
Buy one lot February future @37.35
Sell one call option of Februay strike price 40@1.90 Rs.
Premium Received=1.90*2200=4180.00 Rs.
Max Profit==40-37.35=2.65*2200=5830.00+4180.00=10010.00 Rs.
Max loss=Unlimited.




Trading Idea

1)MARUTI(568.30)Buy this stock in decline and trade.

2)BPCL(391.95)Buy this stock in decline and trade.



Trend of Major Stocks




STOCK TREND Days WeeklyTrend MonthlyTrend

BHEL.NS Bearish 2 Falling Rising

ICICIBANK.NS Bulllish 4 Rising Rising

INFOSYSTC.NS Bulllish 4 Rising Falling

ITC.NS Bulllish 4 Rising Rising

MARUTI.NS Bulllish 2 Rising Rising

SBIN.NS Bulllish 4 Rising Rising

TATASTEEL.NS Bulllish 3 Rising Rising

TCS.NS Bulllish 4 Rising Rising

Technical indicators of major Stocks

MFI=Money Flow Index
RSI=Relative Strength Index
ADX=Directional Momentum Index


STOCK CLOSE MFI-21 RSI-14 ADX-14



BHEL.NS 1320.8 46.85 44.43 12.26

ICICIBANK.NS 416.25 46.88 50.06 17.28

INFOSYSTC.NS 1306.65 69.32 61.52 22.13

ITC.NS 180.1 66.4 63.01 12.11

MARUTI.NS 568.30 75.86 55.16 20.07

SBIN.NS 1151 48.65 47.82 28.48


TATASTEEL.NS 184.6 57.04 43.03 21.96

TCS.NS 511.6 54.13 52.31 10.09


Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Intraday,Short Term ,Medium Term,Long Term,Portfolio Management,IPO & Mutual Fund Advisor.Covered regularly by E TV & Business Magazines like The Economic Revolution for Market views. Website narendranainani.blogspot.com.


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