Mid Market Report, February 14, 2014 | Stocks and Commodities

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February 14, 2014
Time: 12.30 pm

Mid Market Report:

1. Markets are trading as expected, slightly positive.
2. WPI data came at 5.05 against the expectation of 5.80.
3. Markets are waiting for SBI results.
4. SBI will declare results between 1 pm and 2 pm.
5. Europe is likely to open slightly negative.
6. Overseas data are also good like China Inflation, French GDP, etc.
7. US futures are slightly negative.
8. Bank Nifty is stabilising after a big fall yesterday..
9. Despite so much of commotion in the stock market, Rupee is trading between 62 and 63 which is very good for India.
10. Friday afternoon trade is difficult to predict, markets may break down and fall significantly or it may rise significantly due to short covering.

Recommendation:

1. Buy SBI one lot of 1550 Call option and sell 2 lots of 1600 Call option, sell one lot 1650 Call option and sell one lot of 1700 Call option.
2. SBI is expected to declare not so good results, hence SBI is expected to trade between 1500 and 1600.
3. In this strategy, we have nothing to loose if SBI trades below the current level.
4. We will have losses only if SBI crosses 1650, the possibility is very low for this.
5. Note: You have to initiate this trade before SBI results.