11 AUGUST TO 14 AUGUST

The levels given here are on closing basis. Our earlier views have been working very well so far. We hope that you are benefiting from this all. Stick to one strategy and don't look for clues evrytime here and there. A precise information always should suffice.
We have tried our best to give you a precise outlook after a comparative study. But we do not take responsibility of any situation arising out of the recomendations here. So, please use your own discretion and do your homework carefully. Those traders who do not understand Futures and Options, may stay away from our F&O calls here.

RELIANCE(2252)
After a narrow consolidation, it seems to be in a mood to move up to the levels of 2450 to 2480 in the near term. Short term traders can buy with stop loss at 2160.
But the Medium term trend has not turned positive unless it closes above 2500. This technical condition implies that it is not ripe for long term picks, yet!


1).High-budget-traders should buy in cash segment for the given target with stop loss.
2).High-risk-appetite traders may buy Futures for the given target with stop loss.
3).Low-budget-traders may go in for Call option of strike 2400(current premium Rs.34. Total loss Rs.2500 approx). Sell this call when reliance spot is at 2450.
4).Low-risk-traders may buy small quantity in cash; or initiate a long straddle by buying Call and Put of strike 2250 (current total premium Rs.162. Total loss Rs.12000/-approx.)
5).Existing long positions may not add more until beyond 2500. Book profits at 2450.

SBIN (1518)
It may stay in a range of 1500-1600. We have no specific point of view for this scrip this week. However, it is a buy call on a close above 1600 for medium term target of 1800. Avoid trading on a close below 1500. (Review at 10 a.m. on Monday, 11th Aug. : Please note that a "weekly" close above 1600 would be much stronger signal than a regular one).

INFOSYSTCH(1680)
It is also not in a mood to decisevely break out of the range between 1600-1800. Nasdaq, however, is showing some signs of bullishness. Even then, we do not have a specific outlook for the scrip this week.

NIFTY FUTURES(4547)
It is quoting at a high premium of about 17 (Nifty spot at 4529).
Nifty future charts are pointing towards weakness in short term but Nifty spot charts are not. So, it is a dilemma. Traders are writing calls at 4800 to 4900 and writing puts at 4300 and 4400 even. This implies that people expect limited upside as well as limited downside in immediate term.

In such a scenario
1). High/Low budget can buy puts of 4500 to 4700 in case markets move upward early next week.
2).High-risk-appetite traders may short nifty futures on a rise at 4750+ levels with a stop loss at 4810(spot 4780) on closing basis; and/or write calls of 4900 and beyond.
3).Low risk can buy a long straddle of strike 4500.

But overall, it is a scenario of "buy on decline" upto 4300 spot with 4300 itself the stoploss (See our Stocksweekly for more details).


It is a 4 day week:Friday the 15th being Independence day.

Wishing you a Happy Trading Week!

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