The market is expected to open on a flat to positive note
today; trades are advised to trade long if Nifty holds above 5940
levels for immediate targets of 5980 and 6010 levels with a stop
loss placed below 5900 levels. Alternatively, they can assume
long positions from the lower supports of 5880 and 5820 levels.
On the options front Nifty call options have witnessed
buying while put options seen fresh short build up indicating
further upsides in the market; Nifty 5500 put option has seen
highes t addition in open interest at 2.4 lakh shares on short
side.
As indicated in earlier reviews there is no reason for this rally except for few stocks like Reliance Petro(expensive at current prices) and Reliance Communications.
If fail to close above 20k then we would might see 18800 level in near term
Rcom is likely to touch 1020 ,as it is planning to enter into GSM which is a positive trigger
View on RPL. We recommend a Collar strategy:
o Buy One RPL Nov Fut @ 270-274
o Buy One RPL Nov 270 PA @ 18-20
o Sell One RPL Nov 290 CA @ 18-20
o BEP: 272
o Tgt: 290
o Investment: Rs.5,00,000 (Approx)
o Time Frame: 5-6 days
IDBI Buy 155-157 sl 150 for 165-167 2-3 Days
RCom Buy 777-782 sl 770 for 808-810 3-4 Days
Delivery
Buy HIMACHLFUT for three figures
Buy Nocil ltd for Rs 70