RATIO PUT SPREAD FOR SBI

As we are bearish in SBI, and telling to go short in SBI. But today's volatility may be making some safe traders rethink on their strategy.

So i have come up with a ultra low risk strategy for SBI, called RATIO PUT SPREAD.

Those who are not familiar with raio put spread may see below:

The put ratio spread is a neutral strategy in options trading that involves buying a number of put options and selling more put options of the same underlying stock and expiration date at a different strike price. It is a limited profit, unlimited risk options trading strategy that is taken when the options trader thinks that the underlying stock will experience little volatility in the near term.

what we will do is :

1. Buy 1 lot sbin 1900pe @35
2. sell 2 lots sbin 1800pe@15


Now our net outflow will be 5 rs.try to reduce it if u can depending on the prices prevailing.

Strategy is risk free on higher side. lowe breakeven point is at 1695, unlikely this expiry.Maximum profit of 91-92 rs will be witnessed if sbi expires around 1800.

below is the profit diagram:

CRUDE: WHAT TO EXPECT FROM 4988 LEVELS,INTRADAY ANALYSIS

CRUDE now trading at 4988 levels very close to trendline supports on 30 min charts....

may be a good buy for next two hours if it bounces from these support levels or if it breaks and  trade below them...expect 4955, else 5025 can be retested. watch support at 4980-75 levels carefully for next 30 mins.

Why RBI is not able to contain Rupee fall

This chart below shows that India's forex reserves are lower in BRICs countries. Lower forex reserve means less capability to contain the weakness in domestic currency.

Reliance puts on hold investments in exploration as Govt delays approvals

New Delhi, July 29: 

The oil and gas exploration & production group of Reliance Industries is in a fix. Delays relating to uncertainty on Government approvals for its premium East Coast block have made the company’s board put all future investments proposals on the back-burner.

While the company has chalked out its next phase of capital investments in refining, petrochemicals, retail and broadband services, the exploration business is still in a limbo.

This has led to speculation that the company may exit the business altogether. For Krishna Godavari Basin-D6 block, RIL and its partners BP and Niko are planning to submit a revised field development plan for D1-D3 producing fields, aimed at maximising gas recovery and bringing satellite-identified discoveries in the block to production.

Investment level

It also plans to pursue approval of the revised field development plan for the MA field in the block, submitted in February.

RIL has also commenced pre-development activities in the D6 block, which include engineering and geophysical surveys and geotechnical investigations.

Indications are that all these activities will require an investment of close to $7 billion. The company has already spent over $5 billion on the fields. The Reliance-BP-Niko combine, which is looking at December-January 2012/2013 to submit the development plan, is yet to firm up final figures.

Sources in know of developments said: “The integrated development would require the contractors to drill more wells. Each deepwater well would cost close to $100 million. The development cost for MA fields is pegged at $1.96 billion and that for the optimised development plan at $1.5 billion.”

Present Output

The output from D6 block has now dropped below 30 mmscmd after hitting the peak of 60 mmscmd in end-2009. The D1-D3 fields in the block are producing 23 mmscmd and the MA field 5.8 mmscmd.

At present, the contractors are producing from 12 wells in D-1 and D-3 fields. Of the 22 wells drilled here, 18 are producing while four are not connected.

The contractors have eight satellites with 12 discoveries in the block.

Of these, five satellites have been approved for commerciality by the block management committee. 

courtesy: Business line

SBI 4HOURLY ANALYSIS

Trade mantra: sell close to rise to 1990-2000 levels sl 2050 targets 1770

Next week analysis: NIFTY

Self explanatory 4-hourly chart of Nifty futures with Support levels and Resistance levels, trade accordingly

will post more during weekdays on Nifty.

Have been busy recently....now will try to post regularly

Hi  everyone

Have been busy recently with some up gradation work to refine my trading techniques and starting study for commodities also, as I believe learning is a constant process. That's why was not able to attend to blog regularly, now will try to post regularly.
 

Although I am regularly updating whatever i have been trading, at twitter.

Now will try to post more studies at blog also, hope you all find value and gain.

Very soon we I may be launching commodity blog also, or may merge both equity and commodity blogs.

Just follow the levels and earn, thank you.

RANVIR SINGH