Financial Daily from THE HINDU group of publications
Thursday, Apr 14, 2005
Financial Daily from THE HINDU group of publications Thursday, Apr 14, 2005 |
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Markets
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Derivatives Markets Columns - On the hedge Negative outlook for Tata Power, HDFC Bank B. Venkatesh
THE following strategies are based on Wednesday's trading in the derivatives segment on the NSE: Tata Power: The April futures contract closed at 350.15. The outlook may turn negative if the contract trades below 348. The downside target is 335. Sell April futures if it trades below 348. Initiate the position with protective stop at 355. Trail the stop 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 800 units. The open interest position as a percentage of the market-wide limit is less than 10 per cent. No alternative strategies are available, as options on the stock are not actively traded. HDFC Bank: The April futures contract closed at 558.60. The outlook may turn negative if the contract trades below 556. The downside target is 539. Sell April futures if it trades below 556.30. Initiate the position with protective stop at 570. Trail the stop to control the upside risk. The margin on the futures position is approximately 16 per cent of the contract value. The minimum order size is 800 units. The open interest position as a percentage of the market-wide limit is about 15 per cent. 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.)
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