If Your Future Is In Futures - Then No Options

There are many attributes you require if you want to be a successful Stock Futures' player. You need deep pocket, strong heart, accurate judgement, nimble footed, firmly flexible mind ( sounds oxymoronic !) , et al. But above all these you need Lady Luck on your side. And those who have that, they should not fritter away the opportunity to indulge in the game of stock futures. For such individuals some wonderful opportunities exist as of today which are presented as under. Take a look.

Ambuja Cement

In case initially market shows weakness on 08 Oct 09, then sell Oct futures at 96.25 for an intra-day target of 94. Since lot size is 4124 you can decide to book quick profit at 95 also. The other scenario is that the market shows initial exuberance of Reliance 1:1 bonus share and opens with bullish strength; then sell Oct futures of the scrip at 100 and cover your position at 97.5/98.5.

ICSA

If market opens with bearish look then buy Oct futures at 200.5 and then cover the position intra-day at 210. Since lot size is 1200 you can decide to exit position at 206 also. However if market opens with a bullish flurry then buy at 206 and sell at 210/217. With a little help from the market on 08 Oct 09 you may even see ICSA touch 221.

BHEL

With weak market opening buy Oct futures of BHEL of lot size 150 at 2415 and then cover it intra-day at 2465/2500. On the other hand if market opens on a strong note then buy Oct futures of the scrip at 2470 for a target of 2500/2560. With strong market continuing through the day BHEL may touch 2600 also.

PORTFOLIO ANALYSIS - SAMPLE 4 ( S S HUSSAIN )

Here in this portfolio analysis we have a case of Mr Hussain who wants a three year horizon for his portfolio. However my recommendation to him will be to watch for one year targets and take profit there. After that he will have plenty of opportunity to pick up the shares again at a lower price since those targets are at supply zones. Lets begin the exercise.

DLF
Holding134 shares at an average price of Rs 358. Closing price on 22 Sep 09 was 430.1
6 mnth tgt- 700, 1 yr tgt- 900
You should keep holding the share for a target of 900. It may also trade at 1200 around two years down the line.

GMR Infra
Holding 287 shares at an average price of 76. Closing price on 22 Sep 09 was 142.8
6 mnth tgt- 200, 1yr tgt 260
You have a profitable position to hold. At the most GMR may come down to 110 in near future expected correction. Hold till target of 260 is achieved.

BPL
Holding1000 shares at an average price of Rs 24.15. Closing price on 22 Sep 09 was 36.85
6 mnth tgt- 45, 1 yr tgt- 65
Currently BPL may come down to the zone of 25 to 30. Since you will not be in any loss, therefore keep holding till target of 65.

BHEL
Holding 14 shares at an average price of Rs 1504. Closing price on 22 Sep 09 was Rs 2285.
6 mnth tgt- 2800, 1 yr tgt- 3900.
BHEL may come down to 1700 level in the foreseeable correction. It will be very weak if it closes below 2200. However you do not have to worry since your position will not give you any loss even if the correction does take place. Hence keep on holding it till 1 year's target of 3900.

GSPL
Holding 590 shares at an average price of Rs 59. Closing price on 22 Sep 09 was Rs 79.4
6 mnth tgt- 95, 1 yr tgt- 110
GSPL may correct to 50 level in near term. You may like to add to your position if it does come down to 50. What ever be the case, exit position only at 1 year's target of 110.

Rcom
Holding 90 shares at an average price of Rs 359. Closing price on 22 Sep 09 was 307.5
6 mnth tgt- 500, 1 yr tgt- 600, 2 yr tgt- 810
Rcom may come down to 250 level if the markets correct now, of which there is high probability. You can plan to add to your position at 260 and off load your complete position at two year's target of 810.

PORTFOLIO ANALYSIS - SAMPLE 3 ( X-3)

The next packet from Mr X's portfolio will be examined and I hope some of the capital goods companies discussed here will find their foot-marks in your portfolio too. Without much ado lets unveil the analysis for whatever it is worth.

ABB
Holding 10 shares @ 1109. CMP- 729.2
1 mnth tgt- 900, 6 mnth tgt- 1200, 1 yr tgt- 1400
ABB has corrected 38.2% and may come down to 580 in days ahead. Not to worry. Stay invested till the scrip reaches its 6 mnth tgt.

L&T
Holding 100 shares @ 2000. CMP- 1515
6 mnth tgt- 1950, 1 yr tgt- 2800
L&T has not yet corrected sufficiently to qualify for its journey in the 2nd leg of bull run. Hence in near future one has to be cautious on the buy side. It can move down swiftly to 1000 level which will give it 50% correction. It will then be able to cover a gap it created at 1000. You may buy 100 more shares at 1000 level and hold them till L&T reaches its 6 month target of 1950.

BHEL
Holding 120 shares @ 1770. CMP-2197
6 mnth tgt- 2800, 1 yr tgt- 3900
BHEL has not corrected and is a likely candidate to do so in coming days. Its 50% correction should take it tumbling to 1700 level. It is at this level that it has left a gap uncovered and hence may hurry to cover it at 1765. You may be well off to sell your shares at current market price and pick it again at your original buy price. After that you can off load at its 6 month target price of 2800

Havells
Holding 100 shares @ 22. CMP- 288.8
1 mnth tgt- 400, 6 mnth tgt- 500, 1yr tgt- 595
Havells has completed its 50% correction act and is well poised to take higher trajectory for 2nd leg of bull run. Since you are holding it at 22 you should book your profit at 500 and again re-enter after major correction. In doing so your holding of Havells will be free of cost and you would have profited, if you buy it back at a price lower by more than Rs 22. After that you should look to exit at 1 year target of 595.

Crompton Greaves
Holding 100 shares @ 250. CMP- 310
6 mnth tgt- 420, 1 yr tgt- 520
Crompton has not corrected itself in any real earnest and hence may do so now. Its propensity to correct may take it to as low as 180 where it will then be covering a gap it left behind while going on a meteoric rise. You could exit your profitable position at current market price and come into cash so that you can re-enter at 200 level. You should then hold your position for 6 month's target and trade serious dips. In this process of trading major dips you should finally exit at 1 year's target of 520.