The Nifty Future is trading at 11,437.00 up with +0.34% percent or +38.45 point. The Nikkei 225 Future is trading at 23,128.00 up with +0.29% percent or +68.00 point.The Hang Seng Future is trading at 25,185.50 with a loss of -0.61% percent or -155.50 point.
TODAY’S FACTORS AND EVENTS
Bank Nifty bulls are being advised to initiate a call ladder on August 27 expiry out-of-the-money options of the index. The loss is minimal in case the index expires below 22,400 as the cost of initiating the strategy is negligible. The Bank Nifty index closed at 22,170.6 Tuesday.
The call ladder entails the purchase of a 22,400 call, and sale of a 22,800 and a 23,000 call, which drastically cuts the upfront cost of the 22,400 call. Using Tuesday’s provisional closing rates, the 22,400 call costs Rs 300 a share (25 shares equal one lot) while the sale of the 22,800 and 23,000 calls results in inflow of Rs 296, cutting the debit to Rs 4. This is the maximum loss if Bank Nifty expires below 22,400.
PREVIOUS DAY ACTIVITY
For the day the Dow is trading at 27,778.07 with a loss of -0.24% percent or -66.84 point. The S&P 500 is trading at 3,389.78 up with +0.23% percent or +7.79 point. The Nasdaq Composite is trading at 11,210.84 up with +0.73% percent or +81.12 point.
In other parts of world, Japan’s Nikkei 225 is trading at at 23,110.61 up with +0.26% percent or +59.53 point. Hong Kong’s Hang Seng is trading at 25,152.51 with a loss of –0.85% percent or –214.87 point. China’s Shanghai Composite is trading at 3,408.13 with a loss of –1.24% percent or ?42.96 point. India’s BSE Sensex is trading at 38,731.49 up with +0.53% percent or +203.17 point at 12:15 PM.