Quotes with Resistance & Support
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Intraday calls for 02-08-10

Posted on: August 2nd, 2010 at 8:19 am

Markets likely to open higher. Resistance for nifty is at 5425 and support at 5350.

Buy Spectacle Industries Ltd at 140.95, target: 146. Stoploss: 137
Buy Jubilant Foodworks Ltd at 348.65, target: 357. Stoploss: 340

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635 Responses

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  1. a4amit2 Says:
    August 2nd, 2010
    Posted at: 9:27 pm

    hi cb ..why sbi is up so much? shall i buy or sell future tomorrow?how much upside u see in sbi


  2. RK Says:
    August 2nd, 2010
    Posted at: 9:34 pm

    Hi CB,
    Please advice me on my short position in Nifty .. I am short in August series at 5240 :(


  3. viji Says:
    August 2nd, 2010
    Posted at: 9:51 pm

    if i sell a call option for ex.. lf sell nifty 5500 @ 90,then i have to buy lesser than 90 for my profit. The selling rate should be lesser than buying rate in selling put option or call option. sell & buy in option is also like selling in CMP mkt sell & buy? please clear my doubt in detail.
    Buying call or put option,rate should be higher than purchase rate
    selling call or put option rate should be lesser than purchase rate.


  4. Kb Says:
    August 2nd, 2010
    Posted at: 10:04 pm

    Hi viji, Hmm..

    Short selling of Options is generally known as "writing" to avoid confusion .

    If u expect a bull > buy call option / sell put option

    If u expect a bear > buy put option / sell call option

    ----------------------------

    The rate at which options is sold/ bought is known as premium.

    When price rises all call options premium increases ( rate of change varies depends on supp & resis)

    When price falls, all put options premium increases

    -----------------------

    consider Premium price as stocks price & trade .. if buy at lower premium & sell at higher, u will be in profit .. And if sell ( write ) at higher & cover at lower , u will be in profit ..

    -----------------

    holding up to expiry > In this case , all the out of money options will end as value less ..

    -------------------------------

    Caution > option writing is very risky ... may end in unlimited loss ..

    Hope this gives u some idea ... cb will help u in better way ..


  5. viji Says:
    August 2nd, 2010
    Posted at: 10:26 pm

    Thank u very much k.b,really it helps me to know abt 'writing' but having doubt in price when selling both call & put.Thanks for detailed reply.


  6. Bull Says:
    August 2nd, 2010
    Posted at: 10:30 pm

    hi CB-Kartik, whats the buzz in sugar & tea ? we seen two days for Balaram & McLeod .now kal konsi rassi pakad sakte hai kal ? Bajaj hindustan ?


  7. Kartik Says:
    August 2nd, 2010
    Posted at: 10:34 pm

    Hi ramsingh, not sure why it seems to face such selling pressure, hold it for Short term

    Hi kanifb, hmm, lets wait for some time

    Hi a4amit2, it faced strong resistance at 2420, and gave a strong breakout today, it can see 2650 in the short run

    Hi viji, in all there are 4 types of trade you can perform

    1. Short Selling a CALL (wait for the price of the contract to come down to be in profits, in this case the price of the CALL will decrease if its price comes down in cash Market, same as Short sell)

    2. Buying a PUT ( wait for the stock price in cash Market to come down, in this case the price of the put will increase if its price comes down in cash Market)

    3. Buying a CALL (same a purchasing a stock, as the price increases, so will your profits)

    4. Short Selling a PUT(wait for the price of the contract to come upto be in profits, in this case the price of the PUT will decrease if the stock price goes up in the cash market)


    Hope this helps

    Hi Kb, thanks for the explanation

    Hi Golden bull, it seems to face some selling pressure lately, hold it for some more time, its likely to recover


  8. Kb Says:
    August 2nd, 2010
    Posted at: 10:37 pm

    Hi viji, Hmm .. didn't get ur doubt.. there are many strategies in option trading.. In th e case of low volatility .. one can took Short straddle .. to earn time value .. much complex & risky .. usually mutual funds do these .. :)


  9. Kb Says:
    August 2nd, 2010
    Posted at: 10:39 pm

    Hi Kartik, Most welcome :)


  10. Kartik Says:
    August 2nd, 2010
    Posted at: 10:41 pm

    Hi Bull, Sugar stocks had been seeing some consolidation for the past few days, dont enter Balrampur yet, Mcleod can do well in the Short run


  11. SARO Says:
    August 2nd, 2010
    Posted at: 10:49 pm

    Hi CB/KARTHICK
    Please advice me the following stocks i m holding each 100, Hold or Sell ?
    [email protected] ,
    [email protected],
    [email protected],
    [email protected],
    [email protected],
    [email protected]
    [email protected]


  12. viji Says:
    August 2nd, 2010
    Posted at: 10:56 pm

    Thanks karthik & k.p still having confusion in price ie when selling a call option,what will be the price level of buying the same sold call option.
    ex.. if i sell tata steel call option @14rs(strike 560) then buying rate of tata steel c.a should be 10-12rs(i.e lesser than 14rs) & the same things should be done for put selling no?like wise as we do in cmp.
    price of selling & buying of same otion call.


  13. RK Says:
    August 2nd, 2010
    Posted at: 10:56 pm

    Hi CB/Kartik,
    Please advice me on my short position in Nifty .. I am short in August series at 5240 :(


  14. viji Says:
    August 2nd, 2010
    Posted at: 11:04 pm

    strike price i mention wrongly in selling call option as 560, it is 500 strike price for selling tata steel


  15. Trader Says:
    August 2nd, 2010
    Posted at: 11:12 pm

    hi CB / kartik,
    wud it be good to short 1 lot minifty in case nifty opens at 5470-80
    Also, in case nifty touches 5500 in 1-2 days, can we short there ??
    thanks


  16. Tarun Says:
    August 2nd, 2010
    Posted at: 11:14 pm

    Hi S.MAHESH, Ji

    How are you ?

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