Markets are likley to trade subdued today though volatility is not ruled out.
The breadth of the market ended negative at 403:738 suggesting profit booking
even in mid-cap stocks . Nifty November futures premium has
decreased to 15.30 points from 17.10 points and added 4 lakh
shares in open interest indicating fresh addition of long
positions in index futures. On the options front both call and put
options have seen writing suggesting the market to remain
within a range . Profit booking from the highs cannot be ignored
and with Fed meet scheduled for today evening;
Chennai Petro announced Q2 result :Net Profit Up 136.77% to Rs 230.26 Crores
There are expectations of a 25 basis point cut which we believe is not in the anvil. Forex hedging policy was liberated by RBI yesterday and this is indeed a blessing for all the IT companies and other exporters. Infosys is rumoured to announce billion dollar deals soon
We have a Range Bound view on Infosys . We recommend a Short Straddle strategy:
o Sell One Infosys Nov 1860 CA @ 72 - 74
o Sell One Infosys Nov 1860 PA @ 72 – 74
o UBEP: 2006
o LBEP: 1714
o SL: 190 (Total Premium)
o Investment: Rs.70,000 (Approx)
o Time Frame: 8-10 days
*UBEP: Upper break even point, LBEP: Lower break even point, SL: Stop Loss.
Reliance Buy 2755-2770 sl 2700 target 2900-2910 5-6 Days