Mid Market Report 3, September 3, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 3, 2013
Time: 3 pm

Mid Market Report 3:

1. Markets are higly volatile due to the currency depreciation.
2. FII counters are seeing huge selling pressure, so today evening FII selling figures will be high that will dampen sentiment tomorrow also.
3. All kinds of news flows and rumors are going around.
4. One hour before Russian defense ministry said that the are are missiles spotted, launched towards Syria.
5. Later Russian embassy from Syria said there were no missile attacks in Syria.
6. European markets fell suddenly due to this news flow and crude started appreciating adding to the Rupee problems.
7. Rupee depreciated by more than Rs 2 today.

Recommendation:

1. Buying options is not a good idea as volatility is more than 30 and risk premiums have shot up.
2. So sell Bank Nifty 10500 Call option at Rs 15.
3. Sell Nifty 5800 Call option at Rs 19 and keep stop loss at 30.