• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

B. Venkatesh

THE following strategies are based on Wednesday's trading in the derivatives segment on the NSE.

The strategies are constructed to take advantage of small reversal in futures prices. These positions may run counter to the primary trend.

Protective stops are, hence, important. If futures price gaps down on Thursday to trade 2-3 points below the recommended entry price, traders should enter the position after the price breaks below the 5-minute low.

Likewise, if the futures price gaps up and then triggers the recommended entry level, the protective stop should be placed at the day's high at the time the position is initiated, if that price is higher than the stop-loss level recommended below.

Options-based strategies are not available on these positions because the price targets are not far away from the recommended entry levels.

Aurobindo Pharma: Sell June futures after it trades below 308.50. The downside target is 305-303. Place the protective stop at 312. The open interest position is about 10 per cent of the market-wide limit. The minimum order size is 700 units.

ONGC: Sell June futures after it trades below 925.50. The downside target is 921-919. Place the protective stop at 929. The open interest position is about 10 per cent of the market-wide limit. The minimum order size is 300 units.

Titan Industries: Sell June futures after it trades below 318. The downside target is 315-313. Place the protective stop at 322. The open interest position is about 40 per cent of the market-wide limit. The minimum order size is 800 units.

Bharat Forge: Sell June futures after it trades below 1363. The downside target is 1360-1356. Place the protective stop at 1367. The open interest position is about 65 per cent of the market-wide limit. The minimum order size is 200 units.

(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
FMCG funds outpace other equity schemes

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