Weekly Strategy, May Week #4 | Stocks and Commodities

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May 19, 2014
Time: 1.30

Weekly Strategy: Sell Bank Nifty 14500 Put option and 16200 Call option.

1. Election results were better than expected.
2. So Bank Nifty broke out.
3. After hitting 15996 on Friday, Bank Nifty fell due to profit booking.
4. It closed around 14950.
5. Now again it is moving up.
6. IT, Pharma and FMCG falling, so it is a sign of bull market.
7. So Bank Nifty is not likely to fall below 14500.
8. At the smae time, Bank Nifty will face some resistance at 16000.
9. So we suggest selling 14500 Put and 16200 Call.
10. Now 14500 Put is trading at Rs 46 and 16200 Call is trading at Rs 26.
11. Since there are only 8 more trading session, this is a good investment as time value will work in our favor.