Crude Oil continues its downtrend. $40 per barrel has been its long term support, which will hold. More important question is whether the global Stock Indices deserve to trade at current levels if global growth is indeed looking bleak.
All posts by Alpha Stock Trading
Union Bank of India
Date, 17 Dec 2014: Union Bank of India (BSE 532477, NSE UNIONBANK) has shown remarkable strength over last few weeks, often becoming the first banking stock to go into green while the entire market is in red. Despite Nifty correction of 600 points (7%), Union Bank has held its levels and bounced back rapidly from all corrections. This is a very positive sign, and indicates that strong buying/ accumulation is happening from large investors, and we can see 240-250 level in the next rally. Investors in Indian stock market can buy Union Bank on all corrections and hold for at least 242 by Feb 2015, which will be about 13% gain on today’s close of Rs 215. Union Bank of India is among our top picks in the Indian stock market for the year 2015, with a reliable upside target of 273, which will give 26% gain from current level of 215. Therefore, investors can buy Union Bank at current level and all prices below 200 for good gains in year 2015.
Nifty Options Chain Analysis – 16 Dec 2014
Nifty Put Options went explosive today with Nifty coming close to 8050 today (day low 8052), having lost nearly 600 points in the last two weeks, making people want to buy protection as urgently as possible, at whatever price. We were selling Puts (with good profit) that we had bought when they were much cheaper. All those folks who resisted buying Puts, hoping for a pullback, could no longer wait and watch the market sinking, and see the Nifty Put options swelling in value 50% per day, every day!
Imagine, Nifty Dec 8500 Put option was at Rs 50 at the start of this series, and nobody really expected much downside despite sluggish moves in November 2014. That same Nifty Dec 8500 Put option was at 383 today, a gain of 666%!! Agreed that Nifty Put options have not paid off always in last 12 months, because of the bullish market, but they pay when markets are correcting from high levels, like in this month. Continue reading Nifty Options Chain Analysis – 16 Dec 2014