Financial Daily from THE HINDU group of publications
Wednesday, Feb 23, 2005
Financial Daily from THE HINDU group of publications Wednesday, Feb 23, 2005 |
|
|
|
|
|
Markets
-
Derivatives Markets Columns - On the hedge Outlook may turn positive for HCL Tech, negative for BEL B. Venkatesh
THE following strategies are based on Tuesday's trading in the spot and the derivatives segments on the NSE: HCL Tech: The stock closed at Rs 336 in the spot market. The outlook may turn positive if the stock trades above Rs 341. In the event, the stock could move to Rs 361. Buy March futures after the stock moves above Rs 341 in the spot market. Initiate the position with spot-market-stop-loss at Rs 330. Note that the initial protective stop is far away from the current price level. This is the minimum risk the trader has to take to initiate the position. Thereafter, the position has to be traded with trailing stops. Otherwise, the downside risk will be high as the contract-multiplier is 1,300 units. The margin on the futures position is approximately 17 per cent of the contract value. No alternative strategies are available, as options on the stock are not actively traded. Bharat Electronics (BEL): The stock closed at Rs 703 in the spot market. The outlook will turn negative if the stock trades below Rs 693. In the event, the stock may decline to Rs 648. Sell March futures after the stock moves below Rs 693 in the spot market. Initiate the position with spot-market-stop-loss at Rs 712. The position has to be traded with trailing stops to control the upside risk. The margin on the futures position is approximately 17 per cent of the contract value. The minimum order size is 700 units. No alternative strategies are available, as options on the stock are not actively traded. (The opinion expressed in this column is based on technical analysis. There is risk of loss in trading.)
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|