SBI

SBI is at edge and that means it can tumble down very hard if it goes any more down.
This also makes it a cheap buy. So buy it above 1485-1500 levels for long to medium term target of 1800. Be ready to sell it if it goes below 1450 - 1430 levels as it would mean further RED.

Strangle should have been the bet

NMDC is classic case of a failed straddle. It would have been a wonderful strangle bet instead of straddle as it hardly moved in 3 days instead of opposite to all the indications.

NMDC and long straddle

Hi,

Nifty is around 6063. 6090 is immediate resistance so it can go or up from then as it goes tomorrow.

NMDC:

NMDC is on verge of breakout and tomorrow is also its date for quarterly result. It has been known to shift wildly around its result. This looks like a good situation for doing a long straddle in options.

For those who don't know straddle is buying both put and call of "At the money" options.

One can buy NMDC 145 put and calls tomorrow.

Or 150 call or 140 put if sure that it will definitely explode more than 10 percent in two three days. It is called long strangle strategy.

Or one can do a mix type of thing with 145 call and 140 put because 140 put is cheap and its Implied volatility is around 50% compared to of 145 put which is around 62% and it also not cheap. Also it should factor that it is more liable to go down than go up.

Straddle provides a kind of safety in either direction.

Market and Tata power

Hi Investors,

Most shares are on verge of breakout. So we can see a huge surge in Nifty/sensex tomorrow.

Hindalco  went as predicted first down during intraday and then up for about 3 percent. Breakout is there to take.

Tata Power:
Tata power is on breakout acc. to Bolinger band and MACD. Chance of breakout above 76 and confirmation after 76.5-77. Volume was 3 times the previous day. Currently oversold.
May be it is rising either on good result prediction or may be because Delhi govt seem to supporting Tata over reliance in delhi.

Target: 80/82
SL: 73

Market Update And SBI

Bulls desperately trying to keep it above 5960-5940. If it remains above that then we can hope for a cyclical market till elections hovering between 5900 to 6300 range.

As for stocks Hindalco is going as it should.

SBI looking like a good buy if it holds its historical low support. 1457-1450 range level. If it bounces positively from it then it is a good discount buy for medium term target of 1700 considering NPA reduces considerably. 1600 is short term target. SL should be around 1400.

Hindalco

Hindalco is at major support zone. Can bounce back from this. If it sustains above 104. It can surely go to 112 or above. But it must sustain above 104 for it.

Result is on Feb 13 which can impact its shareprice significantly.

But for short term it looks like good short candidate. Can go down to 99.

Stock of the month - Tata Steel

Stock of the month: Tata Steel

Was given a target of 370-350

Touched 350 soon enough in january.

Check the charts!

Earlier: on 5th jan.

Now: