"Markets have opened positive and trading positive so far; Inflation data released shows that it is 4.03% vs 4.28% reported last week, quite positive for the interest rate sensitive sectors like banks and consumption related sectors. In all likelyhood markets might close positive for this week and month, which gives a fresh rally from monday. However, volatility shall continue for some more weeks.
One can buy Wipro in the range of 505 to 525 for a target of 655 in a year's time, which gives 25% return in absolute terms.
Strategy for July'07:
One can sell a strangle of 4200 put option at Rs.65.00 and 4350 call option at Rs.65.00; One needs to keep an initial margin of
Rs.60000/- and shall receive Rs.6500/- which works out to 11% return for the month.
Assumption:
Nifty shall move between 4200 and 4450 during the month of July and if settles in that range by settlement day i.e., 26.07.2007 the entire premium received shall be the profit earned. The position will have break even at 4070 on down side and 4480 on the upside, beyond which levels the loss shall be unlimited. Hence, once has to go long or short the nifty futures on crossing the threshold levels of 4200 on the down side or 4350 on the upside. "
2 comments:
Oi, achei teu blog pelo google tá bem interessante gostei desse post. Quando der dá uma passada pelo meu blog, é sobre camisetas personalizadas, mostra passo a passo como criar uma camiseta personalizada bem maneira. Até mais.
can u please translate in to english, so that I can appreciated what is written!
vrkrao
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