Markets Look Robust - Keep on Long Side

Last trading session Nifty closed at 7855. We need a positive close today for Nifty to close at 8000 in this expiry on Thursday.

Today Nifty should open down. As of publishing this post :

• SGX Nifty is down by 30 points
• Asian markets are mixed
• Oil is up
• Dow had closed down by 26 points

Nifty should take support from its support zone of 7800. I had indicated this support area in my earlier post here. Relevant statement from this post is reproduced below :-

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

Call-to-Action

We have 2 open long positions of May Futures. In these scrips, take following actions in trade today :-

1. Albk May Fut to be sold at 60/60.5. It was bought at 58 and initial target given was 65. It was bought yesterday.
2. Bankbaroda May Fut to be sold at 162/163. It was bought at 159 and initial target given was 180. It was bought yesterday.

We have 2 open long positions of Apr Futures. In these scrips, take following actions in trade today :-

1. Bankindia Apr Fut to be sold at 99/100. It was bought at 98 and initial target given was 120.
2. Hexaware Apr Fut to be rolled over to May futures.

Vexing Day in Indian Markets - Profit Garnered Today

Before markets opened, I gave a call for action today morning in this post. Out of  4 buy positions of Apr Futures held, 3 long positions were listed in this post for selling, with modified targets.

Out of 3 long positions recommended for selling, 2 scrips met their target in trade today. Let us calculate profit generated from these 2 Apr Futures contracts.

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

IDBI        :  Lot size= 8000, BP = 71, SP = 73. Holding Period = 11 trading sessions 
                    Profit = (73-71=2) X 8000 = Rs 16000/-
                    Capital invested for 1 lot = Rs 1,02,000/-
                    Return on Investment ( in 11 days) = 17% 

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

UNIONBANK        :  Lot size= 3000, BP = 134, SP = 136. Holding Period = 12 trading sessions 
                                    Profit = (136-134=2) X 3000 = Rs 6000/-
                                    Capital invested for 1 lot = Rs 76000/-
                                    Return on Investment ( in 12 days) = 8% 

After squaring off 2 long positions today, we are left with 2 more long positions in Apr Futures. Fresh targets for these remaining 2  Apr Futures positions will be given on tomorrow morning before markets open. So keep watching this space.

Buy Recommendations For May Futures Given Yesterday

I had recommended buy prices for 3 scrips in May Futures contract in this post Banks on Swing - Buy Good News And make Money

Out of these 3 recommendations, 2 scrips of May Futures could be bought at their recommended price. These are :-

1. Albk bought at 58. It closed today at 59.2
2. Bankbaroda bought at 159. It closed today at 159.75

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.