DSKF16
Long

GST of FERTILISER Reduced 12% to 5%, Is-VE News Discounted

NSE:GSFC   GUJARAT STATE FER
146 views
9
146 5
GSFC: @ 114.65 (Spot)
GST of FERTILISER Reduced from 12% to 5%. (Announced Prior 3 hours of Opening Bell)
Possible -VE News Already Discounted.
A Panic bottom may form @ 109.65, Extended to @ 106.75.
Pattern Confirmation Level: @ 117.5 - @ 119.60
Go LONG: Positional / Swing TGT: @ 127.9, @ 135.75, @ 141.3+
Can we see some Reversal from Here.

Strategy For FnO Trader:
LONG Futures 27-07-2017: @ 115.60, LOT Size: 4500
SHORT 125.0 Call 27-07-2017: @ 1.75, IV (Implied Volatility ) : 39.79
LONG 115.0 Put 27-07-2017: @ 4.30, IV (Implied Volatility ): 36.63.
Strategy Price (Net Option + Future Premium): Rs. 2.55 / LOT
On EXP . Break Even Point: Rs .118.15

Projection Assuming Spot Price @ 127.9 & Time Frame 1 WEEK (5 Trading Day) & IV Unchanged:
Projected 125 CE: @ 7.55 , & 115 PE: @ 0.75
Strategy Price (Future Premium + Net Option): Rs. 7.00 / LOT (Approx).
Projected Profit: Rs . 6.45 / LOT (i.e. Rs . 7.00 - Rs . 2.55)

If you think this post enrich your knowledge and would help you in trading,
Please don't forget to Hit / Click the Like button.
Your likes are the only motivation to post better ideas in future.
Disclaimer: Only For STUDY.
For taking Trade Decision Consult Financial Advisor.
Trade active: Projection (as of NOW) Fut Price (as of NOW) @ 122.2
125 CE: @ 3.80, & 115 PE: @ 1.95
NET Profit : 6.60 +1.75 - 3.80 + 1.95 - 4.30 => 2.20 / LOT => Rs. 9900
Trade active: LTP: @ 122.40, made a High @ 122.85
Till now +6.8%
Thanks for your views, benefited.
Reply
Just an observation, couldn't this pattern be viewed as a head and shoulder starting on 14th march'17 with peak at 10th May'17. Considering this as a background, i feel stock will see a reversal and short is the way to go.
Reply
DSKF16 Khannz
@Khannz, MULTIPLE Bottom viewed in this Zone. Watch 10/03/2017 (@ 112.6), 18/04/2017 (@113.9), 23/05/2017 (@ 115.2), 28/06/2017 (@ 112.50) &
Time duration between Every two consecutive Bottom is nearing 34 days ( 8th Fib No. Sequence).
Also prior to that Consolidating in between @ 107.5 to @ 114 Zone. As i mentioned point "C Zone" Bearish CYPHER(VIOLET Color) & Bearish SHARK (RED Color).
Reply
Is it okay if I buy a naked call option of 125 strike?
Reply
DSKF16 drchandramohankk
@drchandramohankk, Naked CE or PE is always Risky. But if you want to take RISK go for Nearer OTM. Here are Detailed of 120CE & 125CE, go as per your Risk Appetite.
GSFC 120 CE (Projected CE price / Fut. Price): @ 3.55 / 117.1, @ 4.15 / 118.40, @ 4.41 / 119. Final TGT: 5.55+, SL: 0.60.
GSFC 125 CE (Projected CE price / Fut. Price): @ 2.10 / 117.1, @ 2.50 / 118.40, @ 2.70 / 119. Final TGT: 3.15+, SL: 0.35.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Help Center Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out