Stock update: Hdfc bank (Positional call)

About HDFC bank:

 

HDFC Bank is Private banking sector .The HDFC Bank was incorporated on August 1994 by the name of HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. HDFC Bank closed at Rs 1033.25 up  1.03%.HDFC Bank . The 52-week high of the share was Rs 1105.00 and the 52-week low was Rs 707.50. The company's trailing 12-month EPS was at Rs 38.84 per share as per the quarter ended December 2014.

BSE Code for this stock is 500180 and NSE Code is HDFCBANK.

 

ank has issued and allotted on a private placement basis senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures for Rs 3,000 crore," it said in a filing to BSE on Wednesday. 0 0 Google +0 0 Comments (2) HDFC Bank raises Rs 3,000 crore via bonds on pvt placement Private sector lender HDFC Bank has raised Rs 3,000 crore by issuing long term non-convertible bonds through private placement. "Bank has issued and allotted on a private placement basis senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures for Rs 3,000 crore," it said in a filing to BSE on Wednesday. However, the bank did not provide details on the need to issue such bonds and where the proceeds will be used. The HDFC Bank scrip was trading at Rs 1,028.20, up 0.52 percent, on the BSE in the afternoon. HDFC Bank stock price On April 01, 2015, HDFC Bank closed at Rs 1033.85, up Rs 11.00, or 1.08 percent. The 52-week high of the share was Rs 1105.00 and the 52-week low was Rs 707.50. The company's trailing 12-month (TTM) EPS was at Rs 38.84 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 26.62. The latest book value of the company is Rs 173.55 per share. At current value, the price-to-book value of the company is 5.96.

Read more at: http://www.moneycontrol.com/news/business/hdfc-bank-raises-rs-3000-crore-via-bondspvt-placement_1346478.html?utm_source=ref_article

 Latest announcement:

 

Hdfc bank has issued statement last Wednesday that they allotted on a private placement basis senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures for Rs 3,000 crore .HDFC Bank raises Rs 3,000 crore via bonds on pvt placement Private sector lender HDFC Bank has raised Rs 3,000 crore by issuing long term non-convertible bonds through private placement. However, the bank did not provide details on the need to issue such bonds and where the proceeds will be used.

I hope RBI Will announce rate cut on April 7.RBI had a lowered its policy rate by 25 basis points to 7.5 per cent on March 4, after a similar cut on January 15.Traditionally this is the most important policy – considering this is the first in the new financial year. Hence everyone expecting rate cut from RBI on April 7.It is possible that we get one more cut after that.

Expected movement for this Month:

HDFC Bank is strongest stock in banking sector. It is a share that has always performed well in Indian share market.we can buy this stock at current market level(1020-1030) and hold this stocks till expiry. As every one know HDFC bank will announce quarter result on April 23 and people are expecting good result from HDFC bank. I hope It will be touch 1072 level very soon. So my first target is 1052.Second target is 1061. And We can exit from when it reaches 1072 level.

Tips to buy:

For small investor Buy 1 lot of 1040 CALL @ 20 - 22 level 

 
Target for this Month is 35.

For big investor Buy 1 lot of future at 1030-1035. Target is 1060.

 

RBI had lowered its policy rate by 25 basis points to 7.5 per cent on March 4, after a similar cut on January 15, on the back of softening inflation and the government's commitment to continue with the fiscal consolidation programme. Both the rate cuts were announced outside RBI's regular policy review

Read more at: http://www.moneycontrol.com/news/economy/firming-food-prices-may-prompt-rbi-to-maintain-status-quo_1349099.html?utm_source=ref_article

ank has issued and allotted on a private placement basis senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures for Rs 3,000 crore," it said in a filing to BSE on Wednesday. 0 0 Google +0 0 Comments (2) HDFC Bank raises Rs 3,000 crore via bonds on pvt placement Private sector lender HDFC Bank has raised Rs 3,000 crore by issuing long term non-convertible bonds through private placement. "Bank has issued and allotted on a private placement basis senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures for Rs 3,000 crore," it said in a filing to BSE on Wednesday. However, the bank did not provide details on the need to issue such bonds and where the proceeds will be used. The HDFC Bank scrip was trading at Rs 1,028.20, up 0.52 percent, on the BSE in the afternoon. HDFC Bank stock price On April 01, 2015, HDFC Bank closed at Rs 1033.85, up Rs 11.00, or 1.08 percent. The 52-week high of the share was Rs 1105.00 and the 52-week low was Rs 707.50. The company's trailing 12-month (TTM) EPS was at Rs 38.84 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 26.62. The latest book value of the company is Rs 173.55 per share. At current value, the price-to-book value of the company is 5.96.

Read more at: http://www.moneycontrol.com/news/business/hdfc-bank-raises-rs-3000-crore-via-bondspvt-placement_1346478.html?utm_source=ref_article

Stock update: BHEL (Positional call)

About BHEL:

BHEL is part of the Infrastructure sector in Indian share market. BHEL is an integrated power plant equipment manufacturer and It is one of the largest engineering and manufacturing company. BHEL engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil & Gas and Defense with over 180 products offerings to meet the needs of these sectors.

BSE code for BHEL is 500103 and NSE code for this stock is BHEL.

Recent achievement:

BHEL has achieved another milestone with the commissioning of the second 800 MW supercritical boiler at Sri Damodaram Sanjeevaiah Thermal Power Plant (SDSTPP) at Krishnapatnam in Nellore District of Andhra Pradesh. Significantly, this is the second 800 MW rating and also the highest rating (800 MW) indigenous boiler to be commissioned in the country. The first 800 MW boilers were commissioned earlier by BHEL at the same project on 28th August, 2014. The commissioning of the two 800 MW boilers at Krishnapatnam is an important development for the country seeking to achieve self-reliance in the field of contemporary, state-of-the-art supercritical technology and demonstrates BHEL's capability in the area of supercritical technology.



The key equipment for the project has been manufactured by BHEL at its Trichy, Hyderabad, Ranipet and Bengaluru plant, construction of which was undertaken by the company's Power Sector - Southern Region. BHEL has so far contracted 36 sets of supercritical boilers out of which 4 boilers have been commissioned and the rest are in various stages of execution. These orders include orders from Central and State sectors as well as private sector developers. To keep abreast of the latest technologies in thermal power generation, BHEL has already taken up the indigenous development of the Advanced Ultra Supercritical (AUSC) technology with NTPC and IGCA.

Expected movement for this Month:

BHEL was last traded at Rs 231.80, down 1.34%.I strongly believe this stock is good investment stock for the next three months. And we can buy this stock at 200 to 210 level.And hold this stocks till expiry. It will be touch 250 level very soon as we are expecting good quarter results and It got many project from some state. I think there is not much downside left from current trade price.It can't go down below 200 to 215 levels.

According to the last month High and low value, If it crosses 256.01 then it will surely touch 261.37.

Tips to buy:

Lot size for BHEL is 1000. 

Buy 1 lot of 240 CALL @ 5 (or below)
Buy 1 lot of 230 PUT @ 9 (or below)

Note:We have to buy both the option , Then only we can get a profit. 

Target for this call is 20.

Postional call

Asian Paint:

Buy Asian paint 820 call @ 20 . Target is 30 .Please wait till expiry.

Lot size of AsianPaint is 500 .

Nifty Trend :31/03/2015

NIFTY:

Nifty will open in green will continue the positive momentum. Bulls back in the driver's seat after 8 days of drubbing. Benchmark indices surge almost 2 percent Monday after eight days of drubbing. The Nifty closed around 8500 and the Sensex gained more than 500 points to end the day at 27976.Capital goods, infra and banking stocks see strong buying.

he Indian equity market may open in Green as SGX nifty is trading in Green at 8574.5 at 8.43.

 

In Europe, equities closed sharply higher, having extended gains throughout the session, as investors looked ahead to forthcoming US jobs data.

Intraday Target:(25/03/2015):

 BUY:

If Nifty will open above 8526.56 then it will indicate the strong upper trend.So today on upside first resistance is at 8557.37 .Next resistance at 8565.08.so once Nifty  cross that level you can buy Nifty  future 1 lot (25 shares) for intraday trading. Please find the below table . Always my first target surely will reach.Exit the trade when it crosses the 8565.08 level.

 

SELL: 

 

You can short Nifty future when it will reach 8495.81 Short the NIFTY one lot future at this level. My first target for sell this stock is 8465.11. And when it reaches 8457.44 levels please exit from the trade. And please maintain the stop loss which is mentioned in below diagram.

 

 

 

Stock update: TATASTEEL 31/03/2015

Tata Steel is the biggest steel sector in India.Tata Steel Limited is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra.It is one of the company in Tata Group.Tata steel was the 11th largest steel producing company in the world in 2013. Tata Steel is the among the top ten steel manufacturers in the world. It operates in more than 20 countries and has a commercial presence in over 50.

Tata Steel claimed it has achieved a new milestone of becoming the first Indian steel plant to produce 10 million tonnes per annum of hot metal from a single location at Jamshedpur in Jharkhand.

It’s a significant achievement in journey of iron making which started in 1911 with a capacity of only 0.16 mtpa. Today, the production stands at 10 mtpa - a growth of 63 times in capacity, said the company in a statement on Saturday (29/03/2015).

Tata Steel was last traded at Rs 322.40 with the 2.35% up movement.

BSE Code for this stock is 500470 and NSE Code is TATASTEEL.

Intraday Target:(31/03/2015)

 

BUY:

 

If tomorrow TATASTEEL Equity open or crosses 323.01 then we can buy this stock for tomorrow Intraday trading. And please maintain the stop loss which has been mentioned below picture.
So My first target if it crosses 323.01 level is 329.03. Exit target is 331.5.For small investor please buy TATASTEEL 320 CALL once it crosses 323.01 and exit once it reaches 330.For big investor buy one lot of  tatasteel future when it crosses 323 and exit when it crosses 330. Lot size of TATASTEEL is 500.

SELL:

 We can short this stock when it crosses 317.05.So my first target is 311.14 and exit target will be 309.67. And please maintain the stop loss.So once it crosses that level short lot of TATASTEEL future. And  once Equity crosses 309.67 please exit from the future short.

 

 

Option trading Strategy 4: Bull call spread

 When to use: 

A bull call spread is constructed using two call options.And it means to by buying a call option with a low strike price, and selling another call option with a higher.The bull call is one of the Bullish Strategies . It consist of two call in same underlying stock .

Buy 1 in the money call option

Sell 1 out the money call option.

Bull Call Spread option trading strategy is used by a trader when he thinks the market is bullish in nature and expects the underlying stock to give decent returns in the near future. When trader sell(write) a call, He will receive premium which results in reducing the cost for buying an ITM Call Option. However, the profits are also minimized. This strategy is also called as ‘Bull Call Debit Spread’.

 

An options strategy that involves purchasing call options at a specific strike price while also selling the same number of calls of the same asset and expiration date but at a higher strike. A bull call spread is used when a moderate rise in the price of the underlying asset is expected.Often the call with the lower exercise price will be at-the-money while the call with the higher exercise price is out-of-the-money. Both calls must have the same underlying security and expiration month. If the bull call spread is done so that both the sold and bought calls expire on the same day, it is a vertical debit call spread.

A strategy with limited risk and predictable reward, used when a stock's price is anticipated to rise.

 

Risk: 

The maximum loss is very limited. The worst that can happen is for the stock to be below the lower strike price at expiration.  In that case, both call options expire worthless, and the loss incurred is simply the initial outlay for the position.

Profit :

The maximum profit is limited to the difference between the strike prices, less the debit paid to put on the position The maximum gain is also limited. If the stock price is at or above the higher (short call) strike at expiration, the investor would exercise the long call component and presumably would be assigned on the short call. As a result, the stock is bought at the lower (long call strike) price and simultaneously sold at the higher (short call strike) price. The maximum profit then is the difference between the two strikes prices, less the initial outlay (the debit) paid to establish the spread.

Example:

Suppose that the NIFTY is trading around 8100 level. And if you want to enters into Bull-Call-Spread strategy. You brought one 8100 ITM Call Option for a premium of Rs. 165, and sells one 8300 OTM Call Option for Rs. 55.The lot size of NIFTY is 25.Hence the net investment will be only Rs. 5500

1.Buy 8100 call option 165*25=4125

2. Short 8450 call option 55*25=1375

Case 1: At expiry if the NIFTY dips down to 8000 level, the maximum loss will be only Rs. 5500.i,e our total investment of both the calls.

Case 2: At expiry if the NIFTY closes at 8200 level, net profit will be Rs. 6000.

8100 call at expiry day is Rs 100.

8300 call at expiry day is 0 which means we can get the total short amount.

So total loss is 100*25=2500

Short call option 55*25=1375

 3875

Total Loss is 5500-3875=Rs 1625

Case 3: At expiry if the spot NIFTY closes at 8400 level, the intrinsic value of the 8100 ITM call will be Rs.300 and that of 8300 OTM call will be Rs. 100. At expiry, the cash settlement will be done with a credit of Rs.

8100 call at expiry day is Rs 300

8300 call at expiry day is Rs 100

Total Profit: 

Profit in 8100 call =300-165=135*25=3375

Loss in 8300 call=100-55=45*25=1125

Total Profit=3375-1125=Rs 2250

Intraday Trade - 30 March

Shorted TATASTEEL 250 shares @ Market price
Bought HINDALCO 400 shares @  Market Price
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Update will follow in comments area below!

I will exit at 3:15 pm . If you think the profit you get is enough, please exit the trade.Don't Wait for my update.