TRADING TIPS: 29SEP TO 03OCT 2008

RELIANCE(1963)
There is a hope until it holds 1900 levels. Existing longs may hold with a stop at 1890 for targets of 2040 and 2145. But the fresh longs may be initiated only on a close above 2150.
On the other hand, a close below the given stop loss would drag it to 1700 levels again. Medium term negativity is mitigated only on a move above 2400, which looks unlikely soon.
A long straddle(buying call and put of same strike) of strike 1950 is suggested. It costs around Rs.15000/- per set up.

SBIN(1435)
A stock, in howsoever strong uptrend, is bogged down by the prevailing pessimistic mood. Now, this week if it fails to move beyond 1500, it might also not hold the support at 1400. But as said earlier in previous weeks, it has a strong support above 1300 levels also.
A long straddle of strike 1440 is suggested. It costs around Rs.23000/- per set up.

INFOSYSTCH(1447)
It has more resistances than supports in the near to medium term. The rough idea is that it will have to move above 1675 to turn things positive for itself but...it seems very unlikely in view of the prevailing downward momentum in this stock. However, a failure to move above 1500 this week would drag it down towards 1300( medium to long term targets could be 1200 and 1100).
Short selling opportunity is possible according to the outlook above. Sell on rise with stop at 1521. Derivative traders can initiate a setup by selling futures and hedging that with a call option of 1500 or whichever nearby strike looks appropriate.

Nifty Futures' trading calls, if any, would be posted on updates from time to time.

The F&O calls given here are comparatively safe bets. But please note that only savvy traders need to trade in derivative calls because the trader herself has to track the set up, finally. It requires a lot of hard work to extract profits from F&O. A crude approach can cause considerable financial loss.