Markets May Laze - Look Out For 8000 In Nifty

Yesterday in morning post I had remarked the following in this post :

"We need a positive close today for Nifty to close at 8000 in this expiry on Thursday."

Nifty had taken support near its support zone of 7800 as was suggested by me.Nifty closed up 107 points at 7962 yesterday. Will we then see Nifty reach 8000 in trade today as predicted? That will be an interesting thing to watch for in Nifty today.




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

• SGX Nifty is slightly up by 10 points
• Asian markets are mixed
• Oil in global market is up
• Dow had closed mildly by 13 points

Market Direction
Nifty should open flat today. It will be difficult trade in Nifty since there will be volatility for reasons given below:-

• Tomorrow is expiry day for April derivatives contracts in Indian markets.
• Bank of Japan will give its monetary policy tomorrow.
• US Fed will come out with it's own monetary stance on rate hike today

Call-to-Action

Buy following banking scrips of May Futures:-

1. SBI May Fut buy at 199/200. Target 206
2. Bankbaroda May Fut buy at 160/161. Target 166

Bank of India Apr Futures buy position is held with us. This needs to be squared off by all means, since tomorrow there is expiry of April contracts. Take following action in trade today :-

Bankindia Apr Fut to be sold at 99/100. It was bought at 98 and initial target given was 120.

Markets Soar Majestically - Did You Profit From It?

Nifty whizzed past 7900 as if it was no resistance at all. It speared through resistance of 7900 like knife through butter. Nifty ended 107 points up at 7962 in today's session.

In morning before markets opened, I gave a call for action in post titled "Markets Look Robust - Keep on Long Side".

Hope you heeded my advice to remain on buy side. Such a post title was specifically meant for those who were short in market. Today in trade, shorts got squeezed and bears hurried to cover their shorts.

Yesterday we had bought two bank scrips in May Futures as per my recommendations. Check this post.

Both buy positions of May Futures were listed in morning post for selling, with modified targets. Targets  given in this morning post were met in trade today.

 Let us calculate profit generated from these 2 May Futures contracts.

May Futures Contracts Bought on 25 Apr 2016, Sold Today ( Check post here )

Albk May Fut                    :  Lot size= 6000, BP = 58, SP = 60.5. 
                                               Holding Period = 01 trading session
                                               Profit = (60.5-58=2.5) X 6000 = Rs 15,000/-
                                               Capital invested for 1 lot = Rs 59,000/-
                                               Return on Investment ( in 01 day) = 25% 

Bankbaroda May Fut       :  Lot size= 3100, BP = 159, SP = 162.5. 

                                                 Holding Period = 01 trading session

                                              Profit = (162.5-159=3.5) X 3100 = Rs 11,500/-

                                               Capital invested for 1 lot = Rs 98,500/-

                                              Return on Investment ( in 01 day) = 11.5% 

Consider This Carefully Again

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.

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