Mood of Market - What to Plan For?

Nifty should open in slightly down today. I am tempted to announce so because, as of this moment :

• SGX Nifty is down by 10 points
• Asian markets is mostly down
• Oil is slightly down

On last Friday Nifty closed  at 7899, down 12 points. Nifty is on a bullish run. But if Nifty moves further down, then it will find support at 7800. I had mentioned about this in my earlier post. Check it here. This is what I had mentioned in the post:-

"Worst case scenario for Nifty is that it can drift down to 7800. There Nifty should find support in today's trade."

"However if Nifty opens with a Gap-up above 7950, then it will be a very positive signal. Nifty will keep moving higher in such scenario. Further, if Nifty closes above 8000 today, then we can safely assume that it is headed to 8300."

Both the above mentioned conditions are still relevant for trade today. So keep these two points in mind while trading today.

Call-to-Action

We have 4 open long positions of Apr Futures. In these scrips, take following actions in trade today :-

1. IDBI Apr Fut to be sold at 73/73.5 if it does not open with strong gap up. It was bought at 71 and initial target given was 80.
2. BANKINDIA Apr Fut to be sold at 99/99.5 if it does not open with strong gap up. It was bought at 98 and initial target given was 120.
3. UNIONBANK Apr Fut to be sold at 136/137 if it does not open with strong gap up. It was bought at 134 and initial target given was 160.

Do plan to take action as I had mentioned in my last evening post Banks on Swing - Buy God News and Make Money

Take a look at the current status of 4 buy positions of April Futures held with us :-

IDBI                : Bought 71,Close 72.75

BANKINDIA  : Bought 98,Close 97.7

UNIONBANK :Bought 134,Close 133.6

HEXAWARE  : Bought 268,Close 252.2

Banks on Swing - Buy Good News And Make Money

Asset Quality Review of Banks by RBI

Asset Quality Review (AQR).
Herein lies the good news for Banks. Understand this factor of AQR as I explain in succeeding paragraphs. Once fully understood, you can take a decision whether you should seize this opportunity to make money or not.

Last year before third quarter results, RBI reviewed asset quality of banks and took out list of companies which are heavily indebted to banks.

RBI directed banks to make provision for this indebted amount in Q3 and Q4 results at 50-50 ratio respectively. This led to sharp decline in profits of banks after provisioning half the indebted amount in third quarter.

Now RBI has trimmed the list of indebted companies to be included in AQR. This means that banks will have to make less provisioning in their Q4 results, thereby increasing their bottom line. In other words, Q4 results of banks will be much above street expectations.

Bank scrips will get a boost with this news and move higher.

Technical View
You just read the fundamental good news. Now take into account the technical analysis of BankNifty.

• Bank Nifty in charts opened with a gap-up at 16257 on 21Apr 2016(last Thursday) and continued moving up.
• This gap-up opening provided a breakout move to BankNifty from upper band of Bollinger. This move has been maintained on Friday as well. Bank BankNifty closed at 16703.on Friday.
• With the breakout move last Thursday, BankNifty confirmed the swing that was forming. Friday closing was an affirmative signal to the swing in BankNifty.

Take Action to Make Money

With such positive environment related for banks, it is time to take action. Make hay while the sun s.....!

Buy May Futures of following banks:-

• Albk May Fut: Buy 57/58, Target 65
• Bankbaroda May Fut : Buy 159/160, Target 180
• Ktkbank May Fut : Buy 110/111, Target 125

Banks Buck Trend - Outshine Nifty Again

Banking sector was mercifully bullish in trade today, while Nifty was mildly volatile for better part of the day. Towards second half of session, Nifty drifted lower and finally closing at 7902, down 12 points.

Before markets opened, I gave a call for action in this post. Out of our 8 buy positions of Apr Futures held, 7 buy positions were listed in this post for selling, with modified targets.

Out of 7 buy positions recommended for selling, 4 scrips met their target in trade today. Let us calculate profit generated from these 4 Futures contracts.




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

IOB          :  Lot size= 14000, BP = 30, SP = 32.
                    Holding Period = 11 trading sessions 
                    Profit = (32-30= 2) X 14000 = Rs 28000/-
                    Capital invested for 1 lot = Rs 77000/-
                    Return on Investment ( in 11 days) = 36% 

PNB          : Lot size= 4000, BP = 87, SP = 91.
                    Holding Period = 11 trading sessions 
                    Profit = (91-87= 4) X 4000 = Rs 16000/-
                    Capital invested for 1 lot = Rs 66000/-
                    Return on Investment ( in 11 days) = 24% 

SBI            : Lot size= 2000, BP = 195, SP = 200. 
                     Holding Period = 11 trading sessions 
                     Profit = (200-195= 5) X 2000 = Rs 10000/-
                     Capital invested for 1 lot = Rs 70000/-
                     Return on Investment ( in 11 days) = 14% 


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

RPOWER                 : Lot size= 12000, BP = 50, SP = 53.5. 
                                    Holding Period = 10 trading sessions 
                                   Profit = (53.5-50= 3.5) X 12000 = Rs 42000/-
                                    Capital invested for 1 lot = Rs 96000/-
                                   Return on Investment ( in 10 days) = 43% 

After squaring off 4 long positions today, we are left with 4 more long positions in Apr Futures. Fresh targets for these remaining 4 Futures positions will be given on Monday morning before markets open. So keep watching this space..

                                                                                                                                  
Consider This Carefully

Realize the astounding power of  Stock Futures Trading in generating wealth. Do not keep yourself away from futures trading for any reason. Dump your inhibitions and jump on the bandwagon!!

 I will guide you from very basics, provided you seek my help. Feel free to air your opinion or seek  clarification through comments section at bottom of the post.

Exit Strategy for April Futures - Action Station

Yesterday Nifty closed slightly in red at 7912 and Dow Jones in US closed deeply in red , down 113 points at 17982.

Global markets are not supportive. Asian markets are in red and SGX Nifty is down by 15 points, as of publishing this post. So Indian markets should open flat with a slight negative bias.

Worst case scenario for Nifty is that it can drift down to 7800. There Nifty should find support in today's trade.

However if Nifty opens with a Gap-up above 7950, then it will be a very positive signal. Nifty will keep moving higher in such scenario. Further, if Nifty closes above 8000 today, then we can safely assume that it is headed to 8300.

Call-to-Action

We have 8 open long positions of Apr Futures. In these scrips, take following actions in trade today :-

1. RPOWER Apr Fut: Sell at 53/53.5 if it does not open with strong gap up. It was bought at 50 and initial target given was 54. But if it opens with a strong gap up, then hold this position for target beyond 54.
2. IOB Apr Fut to be sold at 32/32.5 if it does not open with strong gap up. It was bought at 30 and initial target given was 36.
3. IDBI Apr Fut to be sold at 74/74.5 if it does not open with strong gap up. It was bought at 71 and initial target given was 80.
4. PNB Apr Fut to be sold at 90/91 if it does not open with strong gap up. It was bought at 87 and initial target given was 100.
5. SBI Apr Fut to be sold at 199/200 if it does not open with strong gap up. It was bought at 195 and initial target given was 220.
6. BANKINDIA Apr Fut to be sold at 99.5/100 if it does not open with strong gap up. It was bought at 98 and initial target given was 120.
7. UNIONBANK Apr Fut to be sold at 136/137 if it does not open with strong gap up. It was bought at 134 and initial target given was 160.

Take a look at the current status of 8 buy positions of April Futures held with us :-

RPOWER :Bought 50,Close 52.25
IOB : Bought 30,Close 31.6

IDBI: Bought 71,Close 72.55

PNB: Bought 87,Close 88.7

SBI: Bought 195,Close 194.3
BANKINDIA: Bought 98,Close 97.4
UNIONBANK:Bought 134,Close 132.4

HEXAWARE: Bought 268,Close 253.6

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.