Financial Daily from THE HINDU group of publications
Tuesday, May 03, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 03, 2005 |
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Markets
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Derivatives Markets Columns - On the hedge Outlook positive for Century Textiles, negative for Cipla B. Venkatesh
THE following strategies are based on Monday's trading in the derivatives segment on the NSE: Century Textiles: The May futures contract closed at 251.20. The outlook may turn positive if the May contract trades above 252.45. The upside target range is 261-265. Buy May futures if it trades above 252.45. Initiate the position with protective stop at 240. Trail the stop to control the downside risk. The margin on the futures position is approximately 21 per cent of the contract value. The minimum order size is 850 units. No alternative strategies are available, as options on the stock are not actively traded. Cipla: The May futures contract closed at 265.70. The outlook may turn negative if the May contract trades below 262. The downside target range is 252-248. Sell May futures if it trades below 262. Initiate the position with protective stop at 270. Trail the stop to control the downside risk. The margin on the futures position is approximately 17 per cent of the contract value. The minimum order size is 1,000 units. No alternative strategies are available, as options on the stock are not actively traded. Reliance Capital: The May futures contract closed at 169.30. The outlook may turn positive if the May contract trades above 172.80. The upside target range is 183-187. Buy May futures if it trades above 172.80. Initiate the position with protective stop at 164. Trail the stop to control the downside risk. The margin on the futures position is approximately 25 per cent of the contract value. The minimum order size is 850 units. No options-based strategies are available, as calls and puts 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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