Markets are likely to open up higher on monday due to a strong closing in US markets. However, the overall trend is slightly bearish.
Free Stock tips for the week- 29th Aug 2010
Medi-Caps @ 80
Empee distilleries @ 162
Option tips-
Since the overall trend is slightly bearish and markets are likely to open up positive on monday. One could go for trading futures and options together to benefit from the fall while managing the risk as well.
Short 1 contract of futures (Nifty) at 5450 (with stop loss at 5600)
Sell 3 contracts of 5000 (Nifty put options for oct) at Rs 60
Strategy- this strategy will give Rs 180 premium straight away and give the investor a profitable range of (4775 to 5630). If the market is between 4775-5630 the investor will benefit immensely.
