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Intraday calls for 16-11-09

Posted on: November 16th, 2009 at 9:22 am

Support for nifty is at 4990-5010.

Buy Steel Authority of India Ltd at 182-184, target: 191. Stoploss: 179.80

Options: Buy 5100 call at opening with sl at 4995. – (hold till tomorrow)

10.35am – buy patni computers at cmp 511 target 521. sl 505 ( sl triggered)

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760 Responses

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  1. CB Says:
    November 16th, 2009
    Posted at: 11:23 pm

    Hi sandy, would advice to hold it now till expiry.. tomorrow if we open gap up it could come down a bit more. some selling pressure is likely around 5150.

    Hi kp, no, its not like cash market.


  2. sanjay Says:
    November 16th, 2009
    Posted at: 11:30 pm

    hey cb how would sparc open up 2mrw??and also will century go above 491 2mrw???its facing a lot of resistance at those levels???


  3. sandy Says:
    November 16th, 2009
    Posted at: 11:38 pm

    Thank u so much sir


  4. akanksha Says:
    November 16th, 2009
    Posted at: 11:40 pm

    hi cb whats ur viewon se investments. it gave some notice on delisting?


  5. CB Says:
    November 16th, 2009
    Posted at: 11:58 pm

    Hi sanjay, yes, facing resistance at 491..should do well once it crosses it.. sparc can see 88 tomorrow.

    Hi sandy, most welcome

    Hi akanksha, not sure of the news of delisting on it.. its a med term play..can see 240-250


  6. HITESH Says:
    November 17th, 2009
    Posted at: 12:01 am

    cb should we hold call till closing or exit on opening


  7. CB Says:
    November 17th, 2009
    Posted at: 12:05 am

    Hi HITESH, if we cross 5075 on opening, hold it


  8. Manoj Says:
    November 17th, 2009
    Posted at: 12:07 am

    Hi CB, how does this trade sound to you : Buy DLF 390 call and hold for next few days or 5150 on Nifty ?


  9. CB Says:
    November 17th, 2009
    Posted at: 12:26 am

    Hi Manoj, it looks good.. go for it.


  10. Manoj Says:
    November 17th, 2009
    Posted at: 12:29 am

    Thanks CB ... will surely do so...


  11. CB Says:
    November 17th, 2009
    Posted at: 12:30 am

    Hi Manoj, thanks.


  12. sabir Says:
    November 17th, 2009
    Posted at: 12:33 am

    Hi CB,

    Could u pls clarify if trading in options is also like futures wherein we can square off our option contract/position any day until the date of the expiry of the contract which is at the end of the month?Pls confirm.

    Also, pls let us know why u say that options are risky as they are time bound but i see that we have time till end of the month in options too?Pls clarify if we can squareoff any day until the date of expiry of the option contract.


  13. CB Says:
    November 17th, 2009
    Posted at: 12:37 am

    Hi sabir, yes, its same as futures..but time plays an important role.. if you buy a 4800 put now at 50 and if there are only 3-4 days left for expiry and chances of nifty sees 4800 look bleak then the option price could come down to Rs.0 by expiry..


  14. sabir Says:
    November 17th, 2009
    Posted at: 12:52 am

    Ok. How are the lots determined in puts?Do we have to put in the same amount of capital in a put lot too as that of a Future?

    I am asking this only because I heard that the risk in options trading is limited to ur capital while returns could be unlimited due to the potential upside of it's price.

    Which is better or more safe-Futures or Options (assuming capital protection is the priority)?Although I do understand that both r risky unlike a debt instrument and hence after considering such assumed risk of market movement; which is better?


  15. CB Says:
    November 17th, 2009
    Posted at: 1:13 am

    Hi sabir, lot size is the same and money required is much lower.. but one has to trade with strict sl since loss could easily be 100%


  16. sabir Says:
    November 17th, 2009
    Posted at: 1:34 am

    Thanks CB, how much lower?
    And what could be the range of returns one should target usually assuming one plays in them for a couple of days only depending on the market conditions?

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