SomeScrips.....

CAN ENTER AT CMP AFTER THEIR SHARP CORRECTION
EIL , MMTC , RIL , TATA TEA , TULIP IT , EDUCOMP[LOMG-TERM HOLD OF 12-15 MNTHS]

ScripsAboutTo....

SHOW SUDDEN SHARP FALL[EXPECTED] FROM THE CLIFFHANGER IN THE DAYS TO COME >>>TITAN , ASIAN PAINTS , HEROHONDA , GRASIM , BHEL , HDFC ( a bit later)

ClosingBell...

Oh My GOD what an accuracy .
NIFTY SPOT TOUCHED 5349.20 And BY JOE!! MY TRGT.WAS 5351 INTRADAY .

Midday Update

I THINK NW HEADED TWRDS 5351 TODAY

9:45a.m. ...

well on opening touched 5384 and now fighting with 5395 .if able to cross this then will go till the upper limit of 5413 . but overall bias for today is negative

MorningOutlook ...

Intraday RANGE FOR SPOT NIFTY : 5413 -----5384.
BREAk BELOW 5384 AND CLOSING BLW 5376 SHORT
FOR THE TRGS>>5352>>5304>>5286 IN THIS WEEK

WEEKLY TARGETS ON LOWER SIDE : 5354>> 5294>>5235
NIFTY WILL SHOW UP MOVE TILL 5445 .
CLOSE ABV THIS LVL-5445 WILL SHOW FURTHER GREENZONE IN THIS WEEK.

Commodo Follow Up...

CAN FURTHER HOLD THE SHORTS IN GOLD and SILVER

FollowUp: Gold 1st trgt. of 1169 achieved .made a low of 1154 . Silver >> 1st trg.of 17.45 achieved .made a low of 17.34
Commodities weekly trend for 19th -23rd July:
GOLD>> DOWN >> TRG.1169>>1133
SILVER>DOWN>> TRG.17.45>>17.16>>16.90

MyDiary...

From today onwards i'll start venturing into the OPTIONS Part along with the nifty futures.

Day#1>> SELL- 5600CALL @272 and SELL -5100PUT@375

MarketOutlook...

YESTERDAY ENJOYED THE RALLY .NIFTY HAS GIVEN A BREAKOUT AT 5410 .
START BOOKING LONGS . BE PREPARED TO TAKE NEXT ACTION PACKED STEP IN COMING DAYS.

MORE FOLLOWUP COMING -MIDDAY.


>> COMMODITY:
As updated on -12th July >> in my opinion there is some dwn move expected in gold sector .
at least will try to test the recent lows again .

SOON BUY SIGNAL WILL BE GENERATED ON THE CHARTS .
ALL THE BEST . WAITING FOR RIGHT TIME .

MarketsbyExpiry...

Well for NIFTY SPOT now seems possible to climb 5536 >> 5558 hill top before expiry if the world markets give Backup support.[ which is quite possible now as indicated by $INDU charts]

Targetting >> 5494>>5536>>5558 Nifty Spot.
Daily = 3414 ; Weekly =5392 ; Monthly Floor = 5330 as of now .

Will update more later

Prosperity and Abundance...

A Salute...

PARINDE BHI SHARMAYE TUMHARI AISI UDAN HO,
PHOOL BHI JAL JAYE TUMHARI AISI MUSKAN HO,
DUA HAI TUM KADAM RAKHO JAHA, WO MANJIL BHI TUM PAR MEHARBAN HO..

ChartsforTomorrow...

Commodities weekly trend for 19th -23rd July:
GOLD>> DOWN >> TRG.1169>>1133
SILVER>DOWN>> TRG.17.45>>17.16>>16.90

Sensex:

DailyChart

WeeklyChart

MonthlyChart

Why Sell Options

>>If you have ever felt like professional traders and fund managers had an edge over individual investors, you were right. If you have ever thought that there were strategies to help you level the playing field with these traders, you are right again.
>>Many investors are now seeking to gain exposure to the commodities markets and the diversification and leverage they can offer. However, for many, trading futures contracts can often turn into a thrill ride that doesn't end well. High net worth or not, your hundreds of thousands, or even millions of dollars are no match for the billions being managed by professional managers and hedge funds. In commodities, fundamentals (supply and demand) will ultimately dictate what a bushel of wheat, a pound of sugar or a barrel of oil is worth. However, in the short term, speculative funds can move prices by shifting large amounts of money in and out of the market.
>>It is this hedge fund and institutional money moving around that makes timing and stop placement so difficult. Short term fluctuations often frustrate beginners and experts alike, stopping them out of positions even when their synopsis of the market will ultimately prove correct. This is a big reason why 80% of all futures traders lose money and the other 20% keep all of the money.

Enter Option Selling

By selling options, you immediately place yourself above this losing game with the funds. Not only are you no longer trying to predict what the market is going to do, you no longer have to pick when it's going to do it. With option selling, you are only selecting a price level the market will not reach (above or below the market) over a certain period of time. This means that short term market fluctuations will most often have little impact on your position. As long as the underlying futures price does not reach your strike prior to expiration, the option expires worthless and you, the seller, keep the premium collected as profit.

It is also what makes fundamental analysis and option selling such a potent combination. 80% of options held through expiration will expire worthless. Selling deep out of the money can improve those odds. Now sell deep out of the money based on a sound fundamental premise. You are stacking a lot in your favor here before the trade even begins. And you are taking away the advantage the institutional traders have over you. You are taking measures to put yourself in that elusive 20% and do it consistently.

Benefits to the Individual Investor

Time Decay

When selling (or writing) an option, time value works for you instead of against you. The buyer of the option pays you a premium for that option. If you sell an out of the money option, the entire value of that option is in time value. As time passes, all other things remaining constant, the option will gradually lose its value. It is for this reason that a strategy of selling deep out of the money options is of benefit .

Taking Profits

One of the hardest parts of futures trading is deciding when to take profits. With option selling, if the market behaves favorably towards your position, you won't need to make this decision. As time value decays your option, the market will gradually take profits for you. Upon expiration, if the option is still out of the money (has not reached your strike price), the entire premium for which you sold the option will be in your account. At this time, your position automatically closes out. However, if your option has decayed to the point of being nearly worthless prior to expiration, you can buy it back at any time.

Lower Stress

When investing in the markets, the daily stresses of trading can wear on a person. Where to get in, where to get out, why is it moving, why is it not moving? It can lead to emotional decision making. Most of our clients tell us that selling deep out of the money options removes much of the stress and emotional decision making that is common in futures (or equities) trading. Although all futures trading carries some degree of risk, done correctly, option selling can place your position in the market far enough away that short term swings in the market may not dramatically affect your position. This not only gives you staying power but allows you to focus on longer term market fundamentals.

No More Trying to Pick Market Direction

No matter what they say, nobody knows what any market is going to do, especially on a short term basis. However, do enough homework, and it is sometimes possible to make a fairly accurate projection of where prices will not go on a longer term basis. By selling deep out of the money options, you avoid the game of trying to predict where prices will go today, tomorrow or next week. Instead you are only projecting where you think prices won't go. For instance, if you are bullish the natural gas market, you might sell a deep out of the money put option. In this case, the market can move up, stay the same or even move down, as long as it is above your strike price upon expiration, you will still take your full profit.

What about the Risk?

Of course, option selling is not without risk. Taking steps to put probabilities in your favor does not mean you cannot lose money. And make no mistake, you can still lose money. Yet the misunderstood risk of selling option premium is what keeps so many otherwise rational investors away from the strategy. The term "unlimited risk" has been all that is needed to scare curious investors away and bring them right back to strategies their broker wants them in — namely strategies the broker understands such as buying options or buying the underlying stock or futures contract.

Granted, there is no free lunch. While many of the options that you sell will expire worthless or be bought back at a profit, there will be others that result in losses which can run if left unchecked. (Past performance is not necessarily indicative of future results.)

There is one key method of minimizing this risk, however. It is called "exiting your position". A loss is only unlimited if you don't limit it yourself. It is the art of when, where and how to exit that causes so much confusion among beginning option sellers (thus the reputation).

While one can never completely eliminate all of the risk in any investment, there are many effective ways of handling short option risk. Unlimited risk simply means that the market will not limit your risk for you. It has to be done "manually". Your portfolio manager will discuss with you desired methods of handling this risk when you first open your account. Effective strategies can include stop loss orders, 200% exit rules, or for the truly conservative, covered credit spreads.

How to Take Profits and Cut Losses

A low-priced call option or put option can turn into a profit almost overnight.

But just as important, this volatility makes it doubly important to take profits when you have them.

When we say "take profits," we mean that you should close half of your position when the option hits its target price.

Then, if an option you are "riding" begins to lose value, immediately close the position and take the rest of your profits.

The easiest way to monitor this is with the underlying stock. If the stock reverses direction by 3%, close your position. You should also do this with options that have gains but have not hit their target prices.

Cutting Losses
As important as riding your winners and aggressively protecting your profits is to cut your losses when you have them, too.

In fact, cutting losses is more important, because when you buy options you will likely have more losers than winners.

The big hits that you get with your winners should offset your losses. But they will only do this if you keep your losses as low as possible.

For some reason many, if not most investors have a hard time taking losses. But this is what separates professionals from amateurs. It also separates amateurs from their money.

A losing option position will eventually expire worthless. To keep this from happening you must take the same kind of "mechanical" trading approach to losses as you do with winners.

The bottom line is this -- when you are involved in short-term trading, and options certainly fit that description, you must take a completely mechanical approach to your trading.

Take profits when you have them, and take your losses when you have them, too.

Any other approach is doomed to failure.

The Ten Commandments Of Option Buying

Ultimate Option Strategies editor Ken Trester has achieved great success trading options.

He did it by following a strict set of trading rules he calls his Ten Commandments of Option Buying.

You will greatly increase your odds of success if you follow these guidelines:

1) Be patient. This is the most important commandment. Decide how much you are willing to risk in options over the next twelve months. Then, don‘t commit all of it right away. Spread your trades over an entire year.

2) Diversify. Don‘t put all your eggs in one basket. Take at least two or three positions, and buy at least four contracts per position to reduce commission costs.

Try to invest the same dollar amount in each position, to eliminate the risk of having small investments in the winners and big investments in the losers.

Also, buy puts and calls on several stocks. Market variability is a major risk of option buying. If you buy calls and the market declines, you could be wiped out. You should always have some bets for both bullish and bearish scenarios.

3) Minimize your risk. Pay as little as possible for each option. And always be ready to cut your losses should the need arise. Generally you should sell a losing option if it drops by 50%. Take your loss and move on.

The ability to cut losses is a key determinant of whether you will be a successful trader or not.

4) Plan before you play. If you do not have a game plan it will be more difficult to profit. Know before the fact the price at which you will buy an option, take profits or exit the position.

5) Don‘t be greedy. The downfall of 90% of all options investors is greed. To avoid this natural tendency make sure you follow your game plan. Force yourself to wait for the right price by using limit orders to buy options.

6) Maximize your leverage. One option contract controls 100 shares of the underlying stock. Try to find options that will increase in value by at least 100%. Buying cheap, undervalued options is the first step in this strategy.

7) Buy options on high volatility stocks. You have a limited amount of time to work with, so your best plays are on volatile stocks that move within wide ranges of their base values.

An option’s price factors in this volatility. When we recommend an option, often times it is undervalued because the market has mispriced it based on the stock’s historical volatility. In other words, the stock has the potential for bigger price swings than the market is giving it credit for, so your chances of profit are higher.

8) In general, buy out-of-the-money options. These options normally have lower prices, and as a result less risk. If it is underpriced because of volatility factors, it has a greater chance of going in the money and increasing in value.

9) Buy undervalued options whenever possible. Successful option buyers are meticulous bargain hunters. Wait for your price, pay no more than that price, and make sure the price is below the option‘s true value.

10) Be patient. This is the most important commandment, and it bears repeating. You must wait for options to become underpriced.

Contrary to popular belief, buying speculative options is not a game that requires action everyday.

Players looking for this kind of action usually are not around for very long. Successful options buying requires patience and selectivity. It is the only way to win this game.

Three Keys to Options Success

If you want to make money trading options, you must have a game plan.

The "5 Ps" apply here — Proper Planning Prevents Poor Performance.

Most novice options traders either lack a game plan or lack the discipline to follow their plan. As a professional options trader I have identified three keys to success when you speculate with options.

1) Identify and play only undervalued or no worse than fairly valued positions. The main key to success is to identify mispriced options and pounce on these positions.
If you are an option buyer look for undervalued options. Most option traders are momentum players and follow crowd-driven strategies such as buying options on stocks that are about to split or are in strong uptrends.
But because everyone is doing this the option prices are exorbitant.
Never follow the crowd. These players are no different than gamblers in Las Vegas. Anyone can catch a winning streak, but eventually the take (commissions) and slippage (difference between bid and asked prices) will get you.
The options game is a zero sum game. Half the players win and half lose. The professionals only play the game when they have an edge. Our recommendations in Ultimate Option Strategies help you also get that edge.

2) Have a well defined game plan. Even when you only select undervalued options, without a good game plan you are doomed. This is especially true for option buyers.
When you buy options you have many decisions to make.
When do I take profits?
When do I cut losses?
How long should I stay in the position?
Without a game plan you leave these decisions to your emotions. And your emotions always lead you in the wrong direction.
The more quick decisions you make, the more mistakes you will make. That is why being a successful options buyer is tough.
In any option buying game plan, I decide my profit goal for half my position in advance, and at what stock price I will exit the entire position and keep my profits.
And I usually don’t hold a position during its expiration month unless it has little value. You may have only one chance to take profits -- a game plan ensures that you do so when you have them. In Ultimate Option Strategies we always give you the essential information to help you formulate a game plan and then follow that plan.

3) The discipline to follow your game plan. This final key to success separates more players from their money than any other. The pros never disobey their stop losses.
Discipline is critical when you trade options. Sure, at times you may take profits too early or cut losses too early. But in the long run following your game plan will pay off and may save you from financial Armageddon.

USE : United Stock Exchange - India's New Stock Exchange

India’s newest stock exchange, marks the beginning of a new chapter in the development of Indian financial markets.

USE overview: What is United Stock Exchange (USE)
USE represents the commitment of ALL 21 Indian public sector banks, respected private banks and corporate houses to build an institution that is on its way to becoming an enduring symbol of India’s modern financial markets.

Sophisticated financial products such as currency and interest rate derivatives are exciting introductions to Indian markets and hold immense opportunities for businesses and trading institutions alike. Consequently, USE’s strong bank promoter base allows a build-up of a highly liquid marketplace for these products. It also provides the necessary expertise to reach out to Indian businesses and individuals, educate them on the benefits of these markets and facilitate easy access to them.

Public Sector Banks that are stakeholders of USE include Allahabad Bank, Corporation Bank, Punjab National Bank, Andhra Bank, Dena Bank, State Bank of India, Bank of Baroda, IDBI Bank, Syndicate Bank, Bank of India, Indian Bank, UCO Bank, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Canara Bank, Oriental Bank of Commerce, United Bank of India, Central Bank of India, Punjab and Sind Bank, Vijaya Bank. Private Sector Banks like Axis Bank, Federal Bank, J & K Bank, HDFC Bank. Corporate Institutions such as Jaypee Capital, MMTC and India Potash are also associated with United Stock Exchange.

USE also boasts of Bombay Stock Exchange, as a strategic partner. As Asia’s oldest stock exchange, BSE lends decades of unparalleled expertise in exchange technology, clearing & settlement, regulatory structure and governance. Leveraging the collective experience of its founding partners, USE has developed a trustworthy and state of the art exchange platform that provides a truly world class trading experience.

Products and services
USE would begin operations in the future contracts in each of the following currency pairs:

- United States Dollar-Indian Rupee (USD-INR)
- Euro-Indian Rupee (EUR-INR)
- Pound Sterling-Indian Rupee (GBP-INR)
- Japanese Yen-Indian Rupee (JPY-INR)

There would be 12 contracts i.e one for each of the next 12 months in each of the above currency pair Outright contracts as well as calendar spread contracts are available in each pair for trading.

In the years to come, USE aims to become India’s most preferred stock exchange, providing a range of sophisticated financial instruments for diverse market participants to trade on and manage their risks efficiently.
From: USE Website - http://www.useindia.com

BULLS R Back

FOCUS on TARGET...

Use STEPS To Climb Rather than Lift ...

MyRecos...FollowUp

GRASIM GIVING GOOD GAINS>> as recommended last week to buy on dips and book on every rise.

>> BOUGHT 1 LOT NIFTY FUT. @5239 SPOT LVLS. WILL ENTER FOR MORE IN CASE THERE IS ANY FURHTER FALL TOWARDS 5165 MARK.
TARGET 5400-5500-5600 .