Financial Daily from THE HINDU group of publications
Thursday, Mar 31, 2005
Financial Daily from THE HINDU group of publications Thursday, Mar 31, 2005 |
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Markets
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Derivatives Markets Columns - On the hedge Upside likely on Nifty, MTNL futures B. Venkatesh
THE following strategies are based on Wednesday's trading in the derivatives segment on the NSE: Nifty: The April futures contract closed at 2002. The outlook may turn positive if the April contract trades above 2004. The upside target is 2021. Buy April futures after it moves above 2004. The protective stop should be placed at the 1974, which is Wednesday's low. But that stop is far away and makes the risk-return trade-off unattractive. A workable protective stop is 1985. Trail the stop to control the downside risk. The margin on the futures position is approximately 10 per cent of the contract value. The minimum order size is 200 units. MTNL: The April futures contract closed at 113. The futures contract could see some throwback to the recent decline from 133 to 110. The price could retrace to a target range of 119-122. Buy April futures. Initiate the position with protective stop at 110. Trail the stop to control the downside risk. The margin on the futures position is approximately 16 per cent of the contract value. The minimum order size is 1,600 units. (The opinion expressed in this column is based on technical analysis. There is risk of loss in trading.)
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