As we enter August series of Nifty F&O market:
·The U.S. initial jobless claims in US for the month of July closed at 584k. Initial claims are trending lower, indicating slow recovery. Firings are slowing down as economy recovers.
Despite worse than expected number, the US equity markets moved up due to better than expected 1st quarter results.
·Crude is still range bound. Oil majors, including Exxon and Shell, showed major drop in profit.
·Earnings season will come to an end. Upside due to strong results already priced in. Reliance Communication, Suzlon – both Nifty 50 stocks, will come up with results on 31st. Reliance communication has 2% weight on Nifty. Expect it to come up with stellar results. Next price target is Rs. 310. RCOM has a tremendous upside potential, and is recommended BUY.
·Suzlon may disappoint the market, however the company, with its recent GDR issuance is dealing with its debt problems and management has shown its commitment and efficiency to deal with the problem. It should remain range bound from Rs. 90 to Rs. 107, in short term. If the results are better than expected, then Suzlon could rise to Rs. 120 in August session. Long term view is BUY.
·Options Strategies: August series has shown bullish rollover of Open Interest. Shorts have stayed away till now. For low risk - Sell Nifty Calls at 5000 strike, Nifty puts at 4100. Exit strategy to follow. Ideal time to exit would be around 21st August if market remains range bound.
·Sell strangle for Suzlon at 120 call and 85 puts. Buy 280 strkie call for RCOM. Low risk/return.
·The U.S. initial jobless claims in US for the month of July closed at 584k. Initial claims are trending lower, indicating slow recovery. Firings are slowing down as economy recovers.
Despite worse than expected number, the US equity markets moved up due to better than expected 1st quarter results.
·Crude is still range bound. Oil majors, including Exxon and Shell, showed major drop in profit.
·Earnings season will come to an end. Upside due to strong results already priced in. Reliance Communication, Suzlon – both Nifty 50 stocks, will come up with results on 31st. Reliance communication has 2% weight on Nifty. Expect it to come up with stellar results. Next price target is Rs. 310. RCOM has a tremendous upside potential, and is recommended BUY.
·Suzlon may disappoint the market, however the company, with its recent GDR issuance is dealing with its debt problems and management has shown its commitment and efficiency to deal with the problem. It should remain range bound from Rs. 90 to Rs. 107, in short term. If the results are better than expected, then Suzlon could rise to Rs. 120 in August session. Long term view is BUY.
·Options Strategies: August series has shown bullish rollover of Open Interest. Shorts have stayed away till now. For low risk - Sell Nifty Calls at 5000 strike, Nifty puts at 4100. Exit strategy to follow. Ideal time to exit would be around 21st August if market remains range bound.
·Sell strangle for Suzlon at 120 call and 85 puts. Buy 280 strkie call for RCOM. Low risk/return.
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