Weekly Strategy, November Week 4 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November 23, 2013
Time: 10.15 am

Weekly Strategy: Sell December Expiry Nifty 5500 Put option and 6600 Call option

1. There are only four more trading sessions left for this expiry and markets are volatile.
2. So any call given for this expiry may go wrong.
3. So we are giving a call in the month of December.
4. In December series, there are lot of news flows, like India GDP data, US employment report (This is more important in the context of Fed tapering), RBI policy meet, FOMC meeting, election results etc.
5. Usually the month of December is lackluster.
6. But this time, it will be different.
7. Since the Nifty has already fallen by around 6 to 7% already, the downside from here is less as the global cues continue to be good.
8. There is a strong support at 5800 where 200 DMA lies.
9. There will a strong resistance at 6350 which was the peak for 3 or 4 times.
10. So by taking additional safety of about 300 points both sides, we are suggesting 5500 Put and 6600 call.
11. 5500 Put closed at Rs 11.55 and Rs 10.15 on Friday.
12. At this rate the return works out to be 5% for 5 weeks, which works out to be annualised return of about 50%.
13. Considering the low risk, this return seems to be very good.