Thursday, April 21, 2016

Banks Make Strong Comeback - How Much Have You Profited?


Banking sector was extremely bullish in trade today. Nifty opened with a gap up but could not sustain its position for long. Through the entire session, Nifty drifted lower, finally closing slightly in red at 7912.

Today morning, before markets opened, I gave a call for action in this post. Out of our 16 buy positions of Apr Futures held, 11 buy positions were listed in this post for selling, with modified targets.

Out of 11 buy positions recommended for selling, 8 scrips met their target in trade today. Let us calculate profit generated from these 8 Futures contracts.


April Futures Contracts Bought on 4 Apr 2016, Sold Today ( Check post here )

KTKBANK        :  Lot size= 4000, BP = 104, SP = 113. Holding Period = 10 trading sessions 
                               Profit = (113-104=9) X 4000 = Rs 36000/-
                               Capital invested for 1 lot = Rs 67000/-
                               Return on Investment ( in 10 days) = 54% 

ALBK                 :  Lot size= 6000, BP = 57, SP = 61. Holding Period = 10 trading sessions 
                               Profit = (61-57=4) X 6000 = Rs 24000/-
                               Capital invested for 1 lot = Rs 69000/-
                               Return on Investment ( in 10 days) = 35% 

UCOBANK         : Lot size= 10000, BP = 40, SP = 41.5. Holding Period = 10 trading sessions 
                               Profit = (41.5-40=1.5) X 10000 = Rs 15000/-
                               Capital invested for 1 lot = Rs 76000/-
                               Return on Investment ( in 10 days) = 20% 

BANKBARODA : Lot size= 3100, BP = 150, SP = 156. Holding Period = 10 trading sessions 
                                Profit = (156-150=6) X 3100 = Rs 18600/-
                                Capital invested for 1 lot = Rs 93000/-
                                Return on Investment ( in 10 days) = 20% 


April Futures Contracts Bought on 5 Apr 2016, Sold Today  ( Check post here )

ANDHRABANK        :  Lot size= 8000, BP = 53, SP = 57. Holding Period = 9 trading sessions 
                                        Profit = (57-53=4) X 8000 = Rs 32000/-
                                        Capital invested for 1 lot = Rs 76000/-
                                        Return on Investment ( in 9 days) = 42% 

SYNDIBANK              :  Lot size= 5000, BP = 67, SP = 71. Holding Period = 9 trading sessions 
                                        Profit = (71-67=4) X 5000 = Rs 20000/-
                                        Capital invested for 1 lot = Rs 60000/-
                                        Return on Investment ( in 9 days) = 33% 

CANBANK                  : Lot size= 2000, BP = 194, SP = 203. Holding Period = 9 trading sessions 
                                        Profit = (203-194=9) X 2000 = Rs 18000/-
                                        Capital invested for 1 lot = Rs 74000/-
                                        Return on Investment ( in 9 days) = 24% 

ORIENTBANK           : Lot size= 3000, BP = 94, SP = 98. Holding Period = 9 trading sessions 
                                        Profit = (98-94=4) X 3000 = Rs 12000/-
                                        Capital invested for 1 lot = Rs 56000/-
                                        Return on Investment ( in 9 days) = 21% 

After squaring off 8 long positions today, we are left with 8 more long positions in Apr Futures. Fresh targets for these remaining 8 Futures positions will be given in this blog tomorrow morning before markets open. So keep close watch.


More importantly, you would have realized the awesome power of Futures Trading in generating wealth. If you are keeping yourself away from futures trading for any reason, dump your inhibitions and jump on the bandwagon. I will guide you from the very basics, if you seek my help. Rest is your choice. Feel free to comment.