Saturday, August 29, 2009

WEEKLY REPORT ON NIFTY BY kadiyali - 29.08.09 (Saturday)

WEEK GONE BY

Nifty opened the week with a big positive gap, and remained under the control of bulls throught out the week, and managed to close above its elusive 4700 level. It closed the week with a positive close at4732, up 204 points. The high of the week of 4743 was recorded on Friday, and the low of the week of 4582 was touched on Tuesday. Nifty more or less traded in the trading range of 4520-4750 indicated by me in my last Weekly Report.

WEEK AHEAD

Having recorded positive close for 7 consecutive days, Nifty is unlikely to scale further highs without giving up part of the gains. Nifty will temporarily slide towards 4600 during next week, before picking up the upward momentum. Nifty may trade next week in a range of 4590-4780, before closing the week NEAR FLAT.

STRATEGY FOR THE WEEK

1. If you are long, hold on to your longs for a nifty target of 4900+.

2. If you are short, do cover your shorts when spot nifty touches 4600.

3. Boldly buy 4500PE if nifty goes beyond 4900 during next week. 

STOCK RECOMMENDATION

Hold on to your long term investment in shares, but do start booking profits in shares held by you for short term once nifty goes beyond 4900. Any fresh entry into stock investment at such high levels is NOT recommended.

OPTION RECOMMENDATION 

1. Watch the premium of nifty put 4500PE (cmp 73). BUY the same if & when it falls below 60 during next week for a target of 95.

2. Watch the premium of nifty call 4800CE (cmp 126). SHORT one lot when spot nifty touches 4750. After taking this trade, nifty can either rise to 4850 or fall to 4600, and the chances of the latter happening first is more. If nifty touches 4850 first, SHORT one more lot of 4900CE & BUY 2 lots of 4500PE. If nifty touches 4600 first, cover your shorted 4800CE & BUY the same out of the profits.

Those members/readers who follow the above Option Strategy No 2, please do report back to me how much they have gained or lost.

Posted by at

12 comments:

  1. HemantAugust 30, 2009 at 9:50 AM

    sir
    I m intrested to buy
    Unitech Future Sep PA 80 CMP 1.20, intrested to buy @ 0.50 or 0.25
    please advice
    thanks

    ReplyDelete
  2. ltcol vkpundirAugust 30, 2009 at 3:41 PM

    DEAR sir holding 9 puts of 4500 sept series @154.In addition am holding jindal steel 2 call 3200 @194.EGM fr fixing of record date of bonus in the ratio of 5:1 is scheduled fr 4 sept.Post announcement of record date the share will sky rocketand i expect record date to be in sept series itself .Pl advice .Regards an army officer

    ReplyDelete
  3. ltcol vkpundirAugust 30, 2009 at 3:45 PM

    sir need a advice on educom soln .EGM fr splitting of share face vaulue from 10 to 2 is i think on 22 sept.Ill buy as we close on to the EGM date.REGARDS

    ReplyDelete
  4. kadiyaliAugust 30, 2009 at 6:15 PM

    Hemant, you can buy Unitech Sept 90PA if & when nifty on the spot goes beyond 4900, and hold it till expiry.

    ReplyDelete
  5. kadiyaliAugust 30, 2009 at 6:29 PM

    vkpundir, you may get a chance to get out of your 4500PE at less loss next week when nifty temporarily falls below 4600. Do square up at that time, buy 4800CE & hold it till nifty on the spot hits 4900. You may re-enter into puts again if & when nifty touches 5000. 2)Get out of your Jindal Steel 3200CA just before the record date or nifty on the spot at 4900 whichever is earlier. 3)BUY Everonn instead of Educomp if nifty falls below 4500 in Sept series.

    ReplyDelete
  6. ramsfmAugust 30, 2009 at 6:46 PM

    Dear Kadiyali Sir,

    I have Unitech small quantity at 32.50/-, Actually i was planing to switch from UNITECH to GARDEN SILKS, do you think is it right right or else can i keep UNITECH as it is.

    Thanks,
    Ramesh.

    ReplyDelete
  7. kadiyaliAugust 30, 2009 at 6:58 PM

    Ramesh, you can sell Unitech at CMP, and switch the investment into Garden Silks. But do remember to buy back Unitech whenver it falls below 60 in future.

    ReplyDelete
  8. BIPINAugust 30, 2009 at 7:07 PM

    Dear kadiyali sir,
    can i buy TTML now @34 for your tgt of 50 by 15sept.and Garden silk out of suzlon 700 to be sold near 95.. advice..

    ReplyDelete
  9. kadiyaliAugust 30, 2009 at 7:57 PM

    Bipin, you can book profits in Suzlon around 95, convert the profits into Garden Silks for long term, and invest 50% of the capital taken out of Suzlon into TTML for a short term target of 50, which is expected by 15th Sept. If this target does not materialise by the said date, you may hold the same till the target is achieved in a short term.

    ReplyDelete
  10. jitteryAugust 30, 2009 at 10:19 PM

    Dear Sir,

    I am holding one lot of TTML 40 Call @ 0.80 as per your advise shall i hold it till TTML reaches 50 or get out now and buy when nifty is at 4500/4600. Please advise

    Thanks & Best regards

    ReplyDelete
  11. tvisAugust 31, 2009 at 9:00 AM

    THIS IS GOING TO BE VERY VOLATILE WEEK.TAKE UR GUARD .KADIYALIJI PL ADVICE WHETHER I CONTINUE TO HOLD TCS .CHINA DOWN 5% & NO SIGNS OF FII PUMPING MONEY .UR ADVICE IS ALSO TO BE ON CASH .GDP Q1 EXPECTED TODAY .THAT CAN LEAD TO RECOVERY IF BETTER THAN EXPECTED . IS GOING SHORT THE RIGHT STRATEGY .UR UPDATE COMES AT 11.00 AM .IS IT BECAUSE FIRST 1 HOUR OF TRADE NECASSARY FOR THINGS TO SETTLE DOWN.

    ReplyDelete
  12. kadiyaliAugust 31, 2009 at 11:21 AM

    tvis, I usually need one hour observation of the trading to decide what could be the range for rest of the day. That is why I do it usually at 11AM. I place my 11AM report first in my Money Control homepage sharp at 11AM, and then copy paste the same here. No doubt today we will have a bearish day, but nifty momentum is very strong, and it can touch easily 4800 any time within next 6-7 days. Further Q1 GDP data at is already out.

    ReplyDelete

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