• 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 Monday'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 down on Tuesday so as to trade 2-3 points below the recommended entry price, traders should enter the short position after the price breaks below the 5-minute low.

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

Option-based strategies on these positions will not be optimal because the price targets are not far away from the recommended entry levels.

Tata Power: Sell July futures if it trades below 394. The downside target is 391-389. Place the protective stop at 398.

The open interest position is about 10 per cent of the market-wide limit. The minimum order size is 800 units.

Patni Computer: Sell July futures if it trades below 365. The downside target is 362-360. Place the protective stop at 369.

The open interest position is about 5 per cent of the market-wide limit. The minimum order size is 650 units.

Orchid Chemicals: Sell July futures if it trades below 356. The downside target is 353-349. Place the protective stop at 361.

The open interest position is about 30 per cent of the market-wide limit. The minimum order size is 700 units.

Dr Reddy's Labs: Sell July futures if it trades below 769. The downside target is 765-761. Place the protective stop at 774.

The open interest position is about 25 per cent of the market-wide limit. The minimum order size is 200 units.

CESC: Sell July futures if it trades below 210. The downside target is 208-207. Place the protective stop at 213.

The open interest position is about 20 per cent of the market-wide limit.

The minimum order size is 1100 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
Sterling Holiday to issue 37.4 lakh shares to promoters

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