nifty is looking strong

from last two days nifty has crossed a major psychological level of 4775 and looks like heading for 4900 /4950 very soon.bears are just watching the moves very carefully to attack but are very cautious as they have been smashed a couple of times recently.bulls are having a upper hand right now.i feel one can take nifty option positions by buying 4900 ce sep and selling 5100 ce oct and buy 4700 pe sep and selling 4400pe[ratio should be 1:2 double of 4700 pe ] todays close of 4900 ce is 75 and 5100ce oct is 110 and 4700 pe 65 and 4400 pe is 14. if we execute the trade total cost would be 2 .[75 -110+65-28=2]. one has to be very alert while taking this positions once nifty crosses 4900 you have to square off 4900ce sep and create new fresh trades which will be updated later .

short term pick arrow textiles ltd

Arrow Textiles a small cap looks very attractive for a short period of 5 -7 days it is available around 12.40

Sabero Organics Gujarat Ltd.

Sabero Organics Gujarat Ltd is trading at 38.00.Its face value is Rs10.00.The ISIN code is INE243A01018.Its scrip code is SABERORGAN.It is from Pesticides and Agrochemicals industry.This stock can bought for a long term investment of 2-3 years & above for multiple return.

Rico Auto Industries Ltd

Rico Auto Industries Ltd is trading at Rs.26.00.Its face value is Re1.00. The ISIN code is INE209B01025. Its NSEscrip code is RICOAUTO. This scrip is from Auto Ancillaries industries.This stock can be a multi bagger in long run

Firstsource solutions limited

FIRSTSOURCE SOLUTIONS LIMITED is trading at RS 35.00.Its face value is Rs10.00. The ISIN code is INE684F01012 .Its scrip code is FSL.It is from computer software industry.It is a long term investment with multiple returns.

AXIS IT&T LTD

AXIS IT&T LTD is trading at Rs 34.25.Its face value is Rs 5.00.Its ISIN code is INE555B01013.The scrip code is AXIS-IT&T.It is from computer software industry. This can be holded for long term for multiple returns.

DECCAN GOLD MINES LTD

DECCAN GOLD MINES is trading at RS 23.00.It is listed on BSE.Its BSE code is 512068 .Its scrip id is DECNGOLD.Its face value is Re.1.00.It is a NON BANKING FINANCIAL COMPANY(NBFC).This is a long term gold mine

BHAGWATI BANQUETS & HOTELS

BHAGWATI BANQUETS is trading at rs.38 .It has recently started its new hotel at Rajkot on 21/08/2009.Its face value is Rs10.00 & its ISIN code isINE797H01018. This stock can be accumulated for long term of 3years and above for 10 times returns

watch infosys technologies

yesterday infosys was up by nearly 40 rs and closed at 1220 , now tommorow also it should run if it crosses 1250 1260 in cash just buy 1260 put,u should get it around 40 rs .hold it for 3/4 days u can get atleast 70 plus for it.this is a bull trap rally which will get dry soon

yesterday i had given a call to buy one lot nifty dec 2900 ce at 90 and one lot dec 2400 pe at 90 total cost was 180 and the target given was 240 till friday max .
the market is closed today due to the terror attacks on our city so one day time decay will reduce our premium by atleast 5% ,this will also affect our targets.tommorrow also there is a possibility of our markets being closed[not yet confirmed]
lets study the call now yesterday when the nifty was at 2670 i had given this call of buying one ce and one pe total cost was 180

now to make profit nifty should go in one direction for 2/3 sessions continuously

yesterday dec 2900 ce closed at 115 and dec pe closed at 64
now if nifty goes up and crosses 2900 tomorow then the 2900 dec ce will cross 200 and 2400 dec pe will come down to 20/25 so the total value of our call will be 220/225.

suppose nifty goes down and closes below 2500 tommorrow then the dec2400 pe will go upto 180/200 and dec 2900 ce will come down to 25/30 now the total value of our call will be 205/230 .

if nifty just moves here and there and does not go in one direction we may not earn but our loss will be limited [ that is time decay of 2 days ]
we should always consider time decay will trading in options the premium decays very fast . if anybody has taken my call pls exit your call tommorow itself because after that 2 days tie decay will eat your premium

buy one dec 2400 pe at 90 and dec 2900 ce at 90
total cost 180
target 240 till friday max

nifty may open flat to green

yesterday the us markets have closed flat ,even the europe market closed in a little green ,now today asia is mix and nifty singapore is in little green.so i see a little green opening today in our market which should be used to get out of longs and you can also buy some puts today as the markets are very weak.