TRADING ASSIGNMENT

Group 4 | Section A
18th July, 2016

Futures
Stock Futures
Jubiliant Food: The short position taken in Jubiliant food paid modestly. The realised profit of
2000 was realised in 4 days. With the Kerala government announcing a Fat Tax on fast
food items such as burgers, pizzas, etc. we were highly bearish to the stock of Jubilant Foods,
which operates the business of Dominos Pizza in India. We had thus gone SHORT and aim
to make a profit out of it while the stock falls on a rally

TATA Steel: With the referendum on Brexit turning out in the favour of Nays and PM
Cameron moving out of office, the chances of TATAs making an exit of their Port Talbot
Steel making plant stands once again on slippery grounds. So we had highly bearish view on
Tata Steel however due to unravelling of uncertainty and appointment of new PM in UK
Markets reflected positively and the prices rose. This lead to a big loss in our portfolio
however we shielded the loss by exiting the position within time.

Coal India: We have taken a long position in Coal India. It is a speculative position. We are
Bullish on Coal India owing to the increase in industrial activity, fall in Coal import etc. We
feel Coal India has bottomed out and will have a considerable upside from here

Index Futures
NIFTY: We continue to be bullish on NIFTY and continue to remain LONG. Our long
position in NIFTY has paid out well till now. Looking at the positive and Bullish sentiments
prevailing in market we still have positive outlook in NIFTY.

BANK NIFTY: We entered the Bank Nifty and exited the Long position in this week the
position yielded out well and paid off well in the week.

Currency Futures
USDINR: We have taken a long position on USDINR, for we are positive that with the
monsoon turning out good and other positive signals for Indian economy we expect Rupee to
appreciate

GBPINR: We continue our SHORT position on GBPINR, given the current volatile situation
in UK

EURINR: After the subsiding of the BREXIT uncertainty, decision on UK PM, Europe
recovering from the glut. We hold bullish view about Euro strengthening against rupee so we
have taken a short position in EURINR

Currency Options
USDINR: With the imminent US elections at hand and the changing political and social
landscape of US, we expect high volatility in USDINR. We are however unsure of the
potential upside or downside. As a result, we have applied a Strangle strategy to hedge our
bets on USDINR options.

Equity
Ashok Leyland: Ashok Leyland being a pure-play CV player is bound to benefit from the
improving economy, Industrial growth, Growth in mining new auto policy regarding the
emission and safety norms in the long run. Also Ashok Leyland has recently corrected its
price. So at the attractive valuation we have taken a long position in Equity stocks