Financial Daily from THE HINDU group of publications
Friday, Jun 03, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 03, 2005 |
|
|
|
|
|
Markets
-
Derivatives Markets Columns - On the hedge Small reversal likely in BHEL, Maruti B. Venkatesh
THE following strategies are based on Thursday's trading in the derivatives segment on the NSE. These strategies are constructed to take advantage of small reversal in futures prices. The positions may run counter to the primary trend. Protective stops are, hence, important. If futures price gaps up on Friday so as to trade 2-3 points above the recommended entry price, traders should enter the position after the price breaks above the five-minute low. Likewise, if the futures price gaps down and then triggers the recommended entry level, the protective stop should be placed at day's low at the time the position is initiated, if that price is lower 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. BHEL: Buy June futures after it trades above 851. The upside target is 855-858. Place the protective stop at 846. The open interest position is about 10 per cent of the market-wide limit. The minimum order size is 300 units. HPCL: Buy June futures after it trades above 334.50. The upside target is 337-339. Place the protective stop at 330. The open interest position is about 15 per cent of the market-wide limit. The minimum order size is 650 units. Maruti Udyog: Buy June futures after it trades above 450. The upside target is 453-455. Place the protective stop at 446. The open interest position is about 20 per cent of the market-wide limit. The minimum order size is 800 units. TCS: Buy June futures after it trades above 1,272. The upside target is 1,279-1,285. Place the protective stop at 1,266. The open interest position is about 15 per cent of the market-wide limit. The minimum order size is 250 units. Tata Power: Buy June futures after it trades above 371.50. The upside target is 373-375. Place the protective stop at 366. The open interest position is about 10 per cent of the market-wide limit. The minimum order size is 800 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 |
|
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
|