Week Ahead : 17 th to 21st Aug 09 THOUGHTS

Bullish formation on Nifty. Nifty Weekly Supports 4375 -4300, Weekly Resistances 4720-4800.
Nifty POSSIBLY strong above 4600 & weak below 4500 for the week.
Trade with STRICT STOP LOSS.

Week : 10 th to 14th Aug 09 REVIEW

Nifty traded weak during the start of the ( 1st 1-2-3 days) week. As already cautuioned u all on 12 th Aug that NIFTY is seeking direction ..... & on Wednesday saw a sharp intraday recovery from 4360. 13 th Aug saw a GREAT CLOSING , while on Friday Nifty was unable sustain above 4600 resistances.

Nifty

Trade with caution .... Feel markets are seeking for direction.Do not trade with volume & APPLY STRICT STOP LOSS.

Will review all positions at expiry.

NIFTY Unpredictable

Why not use the opportunity to invest in selected stocks in a systematic manner ?
Though the WORLD markets are up we ended in RED.
Any dip to around 4250-4300-4350 may be an opportunity to sell puts .
REMEMBER the markets will always prove the MAJORITY of us wrong.

Options for U

Bullish Strategy With LOW Risk
Trade with this Strategy if U are bullish on the MARKET & take position with limited RISK :

Strategy					Profitable Above	Total Cost	Max Profit	Max Loss
Bull Call Spread
Contract	Act	Strike	At	Prem
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-CE	Buy Sell	4,500.00 4,600.00	at at	133.00 93.30	4,539.70	1,985.00	3,015.00	1,985.00

Another Range bound strategy

				Profitable		Total Inflow	Max Profit	Max Loss
Act	Strike	At	Prem	Above	Below
Sell Sell	4,700.00 4,200.00	at at	63.00 52.05	4,084.95	4,815.05	5,752.50	5,752.50	Unlimited

Option Strategy - NIFTY

If U feel the Market will be RANGE bound between 4149 TO 4750
A strategy for U :

Strategy					Profitable		Total Inflow	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-PE	Sell Sell	4,500.00 4,400.00	at at	133.00 117.55	4,149.45	4,750.55	12,527.50	12,527.50	Unlimited

My Strategy WILL be : Tomorrow the market may open with a GAP UP, What ever be If the market is UP execute the call option ... if DOWN then execute put option to increase your leverage. Ideal if the market goes down sell the put & wait for the market to recover to sell the call.

If U are Bullish then : Options Startegy for U

Strategy					Profitable Above	Total Cost	Max Profit	Max Loss
Bull Call Spread
Contract	Act	Strike	At	Prem
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-CE	Buy Sell	4,700.00 4,800.00	at at	154.15 112.00	4,742.15	2,107.50	2,892.50	2,107.50

Good MUTAL FUND Picks for S I P

I would personally invest in the following Mutual Fund Schemes through SIP.

1> Reliance Regular Savings Scheme
2> DSPBR Equity
3> HDFC 200
4> Birla Front Line Equity
5 > Sundaram Select Mid cap

So if u are intending to invest 10,000 p.m then invest 2000 in each of the above mentioned schemes.

A BLEND of Front Line & Midcap Stocks

Option Trading Strategy if U Feel NIFTY will trade between 4300 to 5000 this MONTH

Strategy					Profitable		Max Loss	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-PE	Sell Sell	4,700.00 4,600.00	at at	151.20 149.00	4,299.80	5,000.20	UNLIMITED	15,010.00	Unlimited