"TRADING RANGE AND IDEA WITH MORE CALLS FOR TUESDAY(04.05.2010)"

The Sensex shed over 172 points to 17,386 as market participants indulged in profit taking at higher levels amid weak signals from global markets. The Nifty fell by 55.25 points to 5,222.75. The stocks in metal, capital goods, realty, power and information technology segment remained under pressure throughout the session yesterday and were mainly responsible for pulling down the market. There were concerns that the euro zone troubles may slow down foreign portfolio investment, which has been a key driver for emerging markets like India. As expected, no major pull down happens and 5201 acts as a strong support. Markets today may recover on positive global cues.
EXPECTED RANGE FOR TUESDAY :: 5201-5314
RESISTANCE :: 5268/5298/5316
SUPPORTS :::::: 5221/5201
TRADING IDEA:: It looks like the big sharks have adopted the following strategy: Buy Reliance 1100CA and RNRL 90CA. This would be the perfect hedge for the judgment ahead. If Reliance wins, then the 1100 will score well. If RNRL gets the decision in their favour, then the 90CA will go vertically north. The strategy seems to be on fairly rational ground. The combined investment for buying 1 lot of each will be around Rs. 10,000/- and the profits, if the decision does come through (provided Europe as well as Goldman Sachs don’t gatecrash into the party), would be quite more than reasonable. So, once the judgment comes in, ride the favorable option and immediately discard the other one.
FUTURES:: Sell Nifty future around 5268 with a stoploss of 5271 for a target 5225 and 5205.
Buy Nifty future around 5226 for a target of 5261 and 5279.
In case of gap up opening, sell nifty future around 5298 with strict stoploss of 5311.
OPTIONS:: Buy NIFTY 5300CE around 61.00 with a strict stoploss of 57.20 for a target of 69.55, 73.80 and 82.
BUY NIFTY 5200PE above 97.05 with a strict stoploss of 91 for a target of 108 and 110. If anybody holds Nifty 5200 PE as per my yesterdaty's reco., they may hold it to achieve yesterday's target2 at 112 (made a high of 110).
Buy ICICIBANK 960CA around 20.70 with a strict stoploss of 17.55 for a target of 25.15 and 28.55.
STOCKS:: Buy Educomp around 692 with stoploss of 682 for a target of 901 and 914. WATCH FOR IFCI, IDBI.
WARNING:: Intraday trading is very risky. It may goes against you. Traders are advised to trade as per their risk taking apetite.
Disclaimer:: I am holding only one lot of SUZLON future (May Series). I may exit the same at any time.
"Confused what to Buy or what to Sell ? Check here for INTRADAY CALL"