LEARN ABOUT OPTIONS TRADING IN INDIA

LEARN ABOUT OPTIONS TRADING IN INDIA

LEARN ABOUT STOCK OPTIONS AND INDEX OPTIONS
1. Types of options

2. Why trade options?
3. What instruments can be traded?

4. Some types of Option strategies

5. How options are priced?

6. How to evaluate different option trades?

7. An idea about expected returns from options 1. Types of options
At the basic level, there are 2 types of options:
a) Call option (CE) - In simple terms, you buy call if bullish or sell call if bearish.

b) Put option (PE) - Again simply put, you buy put if bearish or sell put if bullish.
More specifically, this is what can be done depending on view on underlying stock:
a) Stock expected to rise in short term - Buy call.

b) Stock expected not to fall below a certain level - Sell puts of strike level below which you don't expect it to fall.

c) Stock not expected to rise above a certain level - Sell calls of strike level above which you don't expect stock to rise.

d) Stock expected to fall - Buy puts. Now, what is stated in above 4 points, form the basic building blocks of 100s of option strategies for e.g. if you expect stock to be range bound you can initiate a 'Short Straddle' or 'Short Strangle' (you sell both call & put).

some details about some strategies in 3rd section.
Based on option price w.r.t price of underlying stock/index, there are 3 types of options:

a) OTM - Out of money options - e.g. if NIFTY is trading at 5317 currently, all CE's above strike of 5300 i.e. 5400, 5500, 5600 etc are OTM options. Similarly all puts below 5300 are OTM.

b) ATM - At the money - Options where strike price is same as price of underlying stock/index. e.g. Coal India is trading at about 340. So, 340 CE & PE are ATM options.

c) ITM - In the money - These are CE's where strike is below spot (spot is current price of underlying stock/index) or PE's where strike is above spot e.g. all CE's below 5400 are ITM.

2. Why trade Options?

One advantage of option trading as compared to stock trading is the amount of flexibility, you have lots of option strategies to make money in any kind of market -
a) Stocks going up
b) Stocks going down
c) Stocks remaining stagnant or range bound

(These have been my favorites over last 1 year or so!) Another advantage is that your money is always liquid. This being a long term investment group, this may not be a consideration for people, but to make money from stocks, you need to block your capital for comparatively longer period of time.

Whereas, in options, mostly trades are held maximum till expiry of current month, which is last Thursday of every month. So, you make money without really blocking your capital.
Disadvantage of option trading as compared to stocks:

There is no free lunch!!
Higher returns came at the cost of higher risk.

Derivatives are complex structures & proper risk management needs to be in place. So, expectedly, you need to have a good knowledge about the nature of stock movement, this is where knowledge of technicals come into picture. For example for case

(c) of making money from range bound stocks, following technical characteristics can be used:

a) See if price is oscillating within a channel i.e. not really trending in up or down direction.

b) Momentum indicators like RSI or directional indicators like ADX can give an idea if stock is trending or not.

c) Check support/resistance levels, moving averages etc.

d) Option chain (can be checked at NSE's website - http://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?symbolCode=-10006&symbol=NIFTY&symbol=NIFTY&instrument=-&date=-&segmentLink=17&symbolCount=2&segmentLink=17) gives Open Interest added at various option strikes (e.g. NIFTY - 5400, 5500, 5600 etc), which acts as support in case of puts & as resistance in-case of calls.

So, OI gives indications in addition to the technicals checked earlier. But please note that these are just indicative, nothing more. If we look at Option Chain for NIFTY for this month, support comes at 5200 & resistance is at 5600 as these have highest OI build up for puts & calls respectively .

3. What instruments can be traded?

All FNO stocks & major indices like NIFTY, BANKNIFTY etc can be traded.

But in Indian stock market, most of the stock options are illiquid & hence pose a big risk of getting stuck in case stock makes an unfavorable movement.

So, always trade in liquid options.

Some of the stocks which are amply liquid are - Reliance, Bharti, DLF, Coal India, Infy, Tata Steel etc.

Out of some 200 FnO stocks, there are about 40-45 stocks where current month options are reasonably liquid.

So, do not trade outside of these instruments.

NIFTY is a great instrument for options trading for following reasons:

a) Highly liquid.

b) Huge option of strikes (5300, 5400, 5500 etc) available which can be used in different option strategies.

c) Even options of next few months are reasonably liquid which can be used in strategies like Calendar Spreads where you combine options of this month & next month expiries.

4. Some types of Option Strategies There are many option strategies to pick from, depending on your view about the underlying.

Just to give an idea how strategies can be picked based on view on underlying, HERE some simple strategies:

a) Short Straddle - Sell both calls & puts of same strike.

Here we expect stock to remain stagnant or within a small range. Let us again take example of CoalIndia.
It is trading at 342. Its 340 CE for current expiry is trading at 8.2 & 340 PE is trading at 5.05.
We sell both call & put & get a total premium of 8+5=Rs 13. If CoalIndia remains at 340, our profit is Rs 13000 per lot (Coal India has a lot size of 1000).

Also, if Coal India remains between 340 - 13 & 340 + 13 i.e. between range 327 - 353, we'll make some profit.
b) Short Strangle - Sell call & put of different strikes - If we expect range for CoalIndia to be 320-360 from today till expiry (29th March), sell 320 CE & 360 PE. If CoalIndia indeed stays between this range for next 2 weeks, our profit will be Rs 3000 per lot (Rs 2 from 360 CE + Rs 1 from 320 PE).
C) Bull Spread - Here buy a CE & sell CE of a higher strike - This is for stocks where we feel stock will have a spurt of 5-10%.

So, we can buy a ATM CE & sell higher OTM CE. e.g. if we will DishTV can move up to 60 from here before expiry, we can buy 55 CE for Rs 2 & sell 60 CE for Rs 0.85. So, our net outflow is Rs 1.15 per lot.

This means that we'll make guaranteed money if DishTV closes above 55+1.15 = 56.15 before expiry. Also, Rs 1.15 per lot is the maximum loss that we can have.
d) Bear Spread - Similar to Bull Spread, but here view is bearish & we create a spread with puts.

e) Long Straddle/Strangle - Here we buy both CE & PE expecting a big move in either direction but we're not sure of the direction of move.

For e.g. just before budget, one can initiate a long straddle/strangle if we believe if market will make a decisive move based on budget announcements.

5. How options are priced? Option premium/price consists of 2 parts: a) Intrinsic value - Represents "money-ness" of options

(This can be compared with 'Book Value' in case of stocks :)).

b) Time value Let us take example of NIFTY 5300 CE for current month, trading at 61 (as of 18/3), whereas NIFTY is at 5318.

In this case, out of Rs 61, Rs 18 (5318 - 5300) is intrinsic value & Rs 43 (61 - 18) is time value premium. It is very important to note that by the expiry, every option value is same as its intrinsic value i.e. its time value premium becomes 0.

So, if NIFTY closes at 5318 by expiry, 5300 CE will close at Rs 18. 5400 CE will close at 0. Now next obvious question is how time value premium is determined.
This is where 'Option Greeks' come into picture.

Following greeks are the factors that determine time value premium:

a) Delta - Delta represents correlation of option price with price of underlying. Delta is different for OTM, ATM & ITM options.

b) Vega - This represents correlation with volatility. Higher the volatility, higher will be contribution to time value premium.

c) Theta - This represents decay in the time value premium with time. Remember by the expiry, time value premium will become zero. So, this determines how it will converge to zero provided other greeks do not change.

d) Gamma - Represents acceleration There is also Implied Volatility (IV) that is evaluated from current option price. It can be compared with historical volatility to get an idea about the option valuation.

(similar to way we compare current P/E with historical P/E of a stock :))

You don't really need to get into greeks (except theta) when it comes to option trading in "stocks". But vega is really important.

For NIFTY, use VIX (available on NSE website) for vega. Higher VIX means higher option premiums. So, when VIX is high, it is a good time to write options provided you are confident about short term support/resistance levels of NIFTY.

6. How to evaluate different option trades?
Consider following before initiating any option trade:

a) Investment required incase of a Debit strategy i.e. you are buying an option

. b) Maximum profit potential - This is limited incase an option is sold for e.g. if you sell CoalIndia 320 PE @ 1.1, Rs 1100 is your maximum profit potential per lot.

c) Maximum loss risk - Incase option is bought, premium paid is the maximum loss. But if option is sold, loss can be the theoretically unlimited!

d) Breakeven point - Again lets say you buy CoalIndia 340 CE option @ Rs 8.2 assuming a bullish view. In this case, breakeven occurs at 348.2.

So, you'll make money only if CoalIndia closes above 348.2 by expiry.

e) Return if stock price remains unchanged


7. An idea about expected returns from options
one can make consistently returns of 5-6% per month trading "full time". If compounded annually over 12 months, this translates into annual returns of about 100%. I don't trade full time due to my hectic job but manage to generate positive cash flow whenever I've time to trade. Of course, derivative trading also has its own risks & it can cause huge loses if not properly managed. So, risk management & money management are most important aspects as with normal stock trading. Let me take a simple example of naked put writing trade (naked writing is risky for beginners!) to illustrate how monthly returns of 5-6% can be generated. Consider NIFTY currently at 5318. Now, it is a reasonable view that NIFTY will not go below 5100 by expiry (which is 9 trading sessions away)? So, one call sell 5100 PE which is currently trading at Rs 23.45. So, if NIFTY closes above 5100 by expiry, this sold put will reduce to zero & money made per lot would be 23.45 x 50 = Rs 1172. Margin requirement per lot for writing 5100 PE is Rs 18354 (Please note that margin needs to be blocked for option writing). So, percentage returns in this trade = 1172 / 18354 = 6.3%. So, in 9 days you can make maximum of 6.3% profit. Also, since you get a premium of 23 by selling 5100 PE, means you will start making loss if NIFTY closes below 5100 - 23 = 5077 by expiry.

CALLS UPDATED : BEST TIPS IN STOCK OPTIONS

RECENT CALLS:

BUY GIVEN IN TATAGLOBAL 110 CALL @ 3.50 TARGETS 4,5,6

ALL TARGETS ACHIEVED ; MADE A HIGH OF RS. 10

PROFIT RS. 5000/-

BUY GIVEN IN HINDPETRO 340 CALL @ 2.50 SL 2 TARGET 3.50, 4

ACHIEVED ALL TARGETS

PROFIT RS. 1500/-

YESTERDAY GIVEN PETRONET 140 CALL @ 1.60 TARGET 2,3,4

ACHIEVED ALL TARGETS

PROFITS RS. 4400/-

BUY GIVEN TODAY ARVIND 70 CALL @ 2.30 SL 1.90 TARGETS 2.60, 2.90, 3.30

PENDING............

28 Jun, 2012, 12.39PM IST, Rajeev Jayaswal,ET Bureau

Fuel pricing reforms expected with Manmohan Singh taking additional charge of Finance Ministry

NEW DELHI: Prime Minister Manmohan Singh's direct involvement in the finance ministry has renewed reform vigour among officials, who plan steps to reform fuel pricing and accelerate domestic oil exploration, government and industry officials said.

According to officials fuel pricing reforms are expected after mid July post Presidential poll, which would include a hike in diesel rates by atleast Rs 3 per litre and limiting highly subsidized cooking gas cylinders to four refills per household every year.

It is expected that state-run oil marketing companies, which skipped a price revision in mid June, will also reduce petrol rates by about Rs 2.50 per litre from next month. "There are gains in terms of crude oil, but it is largely nullified due to rupee depreciation. Exact quantum will be known only on June 30 ^th as average oil price and exchange rates will vary due to volatilities in the rates of the two crucial items," chairman of an oil firm said requesting anonymity.

A senior oil ministry official confirmed that the government is working on capping number of subsidized cooking gas cylinders and a stage is already set. "The transparency portal, launched last week is the first step in this direction. A decision is expected soon after the empowered group of ministers would meet under a new chairman," the official said.
Officials expect the new EGoM chairman to take a decision on the matter, which was pending due to preoccupation of the previous head of the panel, former finance minister Pranab Mukherjee in presidential poll. Mukherjee tendered his resignation from the government on Tuesday to contest for the port of the president.

Officials said that Prime Minister's Office (PMO) had been actively monitoring issues such as decline in gas production and gas pricing, hurdles in securing approvals for undertaking exploration and production activities in oil and gas blocks, decline in exploration and production (E&P) activities and the need to revamp the Directorate General of Hydrocarbons (DGH), whose role has been questioned the CAG in its report.

PMO has sought direct queries from the oil ministry regarding delays in granting pricing approvals to private firms to start commercial coal bed methane (CBM) production from three blocks.

PMO is also helping the oil ministry in resoling inter-departmental hurdles in getting various approvals from Navy, departments of space and environment that will facilitate oil and gas exploration in about 80 blocks.

Oil ministry officials confirmed that PMO is keenly watching petroleum sectors progress as energy security is national priority and rising subsidy is a major drag on the economy. The fuel subsidy bill this year is expected to be Rs 164,000 crore.

Moody's Backs India's Stable Rating

BUY GIVEN IN STER 100 CALL 2.10 TARGETS 2.50, 2.90, 3.40
Achieved first target 
profit rs. 800/-


BUY GIVEN IN MARUTI 1150 CALL @ 7 TARGET 14, 24 
HOLD IT EXPIRY

NEW DELHI—Moody's Investors Service said Monday it is maintaining its 'stable' outlook on India's sovereign rating as the growth slowdown and deteriorating business sentiment in the economy are likely to be temporary.

India's central bank raised the foreign investment cap on government bonds; Japanese Prime Minister is facing an open revolt within his party; Shares in Samsung tumbled and HTC pulled out of Brazil.

The decision would give the Indian government the much-needed respite as it faces heat due to a cut in outlook to 'negative' from 'stable' by Standard & Poor's in April and by Fitch last week, reflecting fading investor confidence triggered by worsening conditions in the economy.

Standard & Poor's and Fitch had warned that India could lose its investment grade rating if swift measures weren't taken to revive investment climate and boost growth in the economy.

India's fiscal deficit has ballooned, while slowing exports--even as imports continue to rise--have sharply stretched its current-account deficit, sending the rupee to all-time lows against the U.S. dollar.

The dollar was last trading at 56.42 rupees, off its record-high of 57.33 rupees hit Friday.

More

IKEA Says It Is Ready To Give India a Try

India Real Time: Moody's, IKEA Give India Vote of Confidence

Moody's said India's Baa3 rating already reflected challenges such as a weak fiscal performance of the government, high inflation and an uncertain investment policy environment, which have characterized the economy for decades.

Enlarge Image

Reuters

A labourer carries a cement bag before loading it onto a truck at a railway goods yard, on the outskirts of the western Indian city of Ahmedabad in this June 1, 2012 photo.

"Certain recent negative trends -- such as lower growth, slowing investment and poor business sentiment -- are unlikely to become permanent or even medium-term features of the Indian economy, although global and domestic factors, including potential shocks in agriculture, could keep India's growth below trend for the next few quarters," Moody's said in a statement.

Moody's said the slowdown in growth and high inflation will hurt India's credit profile, but not enough to lead to a revision in its rating.

India's limited foreign currency debt is also likely to shield the government from any significant increase in its external debt burden due to the sharp fall in the rupee, the ratings firm added.

Why the rupee is marching to it own gloomy beat

The rupee (INR) ignored inter-market correlations to the US dollar and global equities to make new lows against major currencies, despite the Reserve Bank’s resolve to stay firm and pause its rate cuts. The price action of the rupee shows that the long-term secular weakness of the INR cannot be solved by the central bank alone, let alone a single monetary policy.
Notice that even though the rupee slid the stock markets have held steady, despite the so-called “disappointing” monetary policy. The INR touched a new low of 57.33 to the US dollar before crawling up to close at 57.06. In the week to 22 June, the INR also touched new lows against other major currencies such as the euro at 71.91, the Japanese yen at 0.7116 and the British pound at 89.45.
The stock market seems to like the fact that the Reserve Bank stood its ground with one loose end. The Nifty (See Nifty chart above ) has held above its 50-day and 200-day simple moving averages. The 50-day average is shown by the blue line and the 200-day one by the black line. A moving average is the average price over a specified period and tends to act as support or resistance.

ndia has to embark on the path of smaller government, a larger private sector and sound money to get over the problem. Nicrocrisisfulli/Flickr

Since the index is above the average, it’s acting as support. Support areas are where demand for stock exceeds supply, leading to a rally in price. The Nifty can rally all the way to the resistance zones marked by the red horizontal lines on the chart. Resistance zones are areas were the supply of stock exceeds the demand for stocks, leading to a fall in price.
We feel that the stock market is in a holding pattern with the US Federal Reserve not easing money supply further, as some expected, and the hope that the European Central Bank might, given the trouble in that continent.
Meanwhile, rupee is in a terrible spot. Decades of deficit financing and increasing money supply have taken its toll and cannot be fixed in one monetary policy with no supporting fiscal policy. The Reserve Bank, too, did some sneaky easing by way of an increase in the limit of export credit refinance of outstanding bank credit from 15 percent to 50 percent. This can add  Rs  30,000 crore to the banking system, which is equivalent to a 50 basis points (0.5 percent) cut in the cash reserve ratio (CRR).
The Reserve Bank’s  quiet easing is similar to giving a diabetic sugar-free lunch and then sneaking a cup of shrikhand for desert.
The only thing that determines the price of any asset is demand and supply. The increasing supply of money did contribute to the INR’s latest fall. The Reserve Bank did leave interest rates untouched to send a signal that the value of the rupee is as strong as it was before the policy was announced. But the markets disagreed: “How can you increase the supply of an asset and keep the price of it at the same level?”
So the markets did the rational thing. They reduced the rate of return on the rupee by devaluing it. To put it simply, if an investor held Rs 100 with an interest rate of 10 percent per annum, he would have got Rs 110 at the end of the year. After the Reserve Bank decided to infuse liquidity but maintained the interest rate, and the markets depreciated rupee, he’d perhaps get just Rs 108. Some of you might say this is true only for foreign investors who convert rupees to foreign currencies when repatriating the money. Not so fast. Indian citizens basing their investments in rupees will see their value eroded by inflation.
The fall of the INR looks really terrible when compared to other assets. Let’s compare the it to the Dollar index (See dollar index below) which measures the greenback against six major currencies.

Dollar index

The index began falling from 1 June to 19 June, so ideally a weakening dollar should have led to a rally in the rupee. The rupee only rallied for a week till 7 June and once it touched 55 against the dollar the depreciation began. The inverse correlation between the US dollar and the INR failed to work, which indicated an extreme weakness in the Indian currency.
The rupee and global equities are both considered risk trades. On 4 June, the S&P 500 (see S&P 500 chart below ) began to rally to peak last Thursday.

Chart 3

However, the Indian rupee continued its drop. To make matters worse, the INR has now made new lows against other major currencies such as the British pound, yen and euro. On Thursday, the euro had a major drop against the dollar, but  appreciated against the rupee to new highs. This shows a terrible decimation of the Indian currency.
We all know the reasons for this latest new low for the rupee – deficit financing and terrible policy muddles. The multi-year deficit by the Indian government and the willing deficit financing by its partner in crime, the Reserve Bank of India, has increased money supply to such high levels that the falling rupee is no surprise. There is no quick solution to this problem created over several decades. India has to embark on the path of smaller government, a larger private sector and sound money to get over the problem.
Meanwhile, in the short term,  keep an eye on the Dollar index. It seems to be on it’s way up to 83.56, which will put more downward pressure on the rupee, unless the RBI intervenes. The 83.56 level is an area of resistance, where the supply of dollars exceeds demand, which has led the greenback to fall a few times. If that level is broken the dollar can rally strongly much higher. Rupee bulls should pray that the level holds.

BEST TIPS IN STOCK OPTIONS AND STOCK FUTURES

(Reuters) - Eleven cement makers were slapped with $1.1 billion in fines on Thursday for price fixing, a record penalty from an increasingly assertive anti-trust regulator, the Competition Commission of India (CCI).

The CCI said the companies colluded to underuse their plant and create an artificial shortage of cement, the government said in a statement.

Analysts said the ruling, which was heavier than expected, reflected an increasingly tough approach by the three-year-old regulator and represented a coming of age for Asia's third-largest economy, hit by a spate of high-profile corruption cases in recent years.

UltraTech Cement (ULTC.NS), part of the diversified Aditya Birla Group, Holcim-controlled ACC (ACC.NS) (HOLN.VX) and Ambuja Cement (ABUJ.NS), India Cements (ICMN.NS) and the Indian unit of France's Lafarge SA (LAFP.PA) were among those fined the equivalent of 50 percent of their net profit for the fiscal years ending in March 2010 and March 2011.

"As economies get bigger there is a greater need for competition laws to regulate corporates that have grown with those economies from either abusing their dominance or cornering markets through cartels," Samir Gandhi, partner at law firm AZB Partners, said ahead of the ruling.

Executives from the fined companies denied price fixing.

"We have not indulged in any cartelisation," said O. P. Puranmalka, who heads UltraTech's cement business, adding the company will challenge the order.

"We deny the charges of cartelisation, there is no question about it," N. Srinivasan, managing director of India Cements told Reuters.

"I don't think this order is based upon any proof that they have," said Srinivasan.

The ruling, handed down after markets closed, comes five years after a similar order against 44 companies by the CCI's predecessor.

In April, the CCI fined agrichemical companies United Phosphorous (UNPO.NS) and Excel Crop Care (EXCR.NS), among others, for colluding over a government tender.

It is also expected to rule next week on tyre companies including Apollo Tyres (APLO.NS) and CEAT (CEAT.NS) over alleged price fixing, Ashok Chawla, the head of the CCI, said earlier this month.

Some industries in India such as telecoms see fierce price competition. Others, including fuel retailing and packaged foods, are governed by state-set prices.

"The CCI has demonstrated that it is willing to use its considerable fining powers, which has made companies take competition law compliance particularly seriously," said Gandhi.

Best tips in stock options and stock futures

BHEL & L&T to benefit: India plans import duty of 20% plus on imported equipment for power

Government owned BHEL and L&T who have developed over 30,000 mw capacity to produce boilers and turbines are in for good times ahead as the government prepares to impose duties of around 21% on imported power equipment. The matter will be given a formal nod in another two weeks time, a senior government official told ET.

The move has been taken in view of the capacity build up by the domestic equipment manufacturers who have been lobbying for some protection against imported equipment from China and Korea that come with special advantages of a soft loan.

Given the estimates drawn out by the planning commission, India will need to add almost 30,000 mw generating capacity annually if growth is maintained at 8% plus. Giving a push to domestic manufacturers becomes important, given the requirement in the long term, the senior government official said.

The protective duty, may give the domestic equipment suppliers a double benefit if the rupee continues to remain depreciated at the current levels. Analysts, however, believe that the rupee would stabilise by the time the duty comes to play for prospective projects. "Most of the current generation capacities including the mega and ultra mega power plants have already placed orders and this duty will not be applicable on them" the senior government official said.

It is estimated that foreign equipment makers account for almost 30% of the total power equipment market in India. The leading foreign equipment makers who have eaten into the domestic market are those from China, Korea and Japan.

Chinese equipment makers have bagged large projects like that of Reliance Power, while the Tatas, builders of another power mega power plant have opted for Korean power equipment maker over domestic companies. In most of these cases, these countries have offered soft loans to buy the equipment that come as an added incentive to the power companies.

According to the Association of power producers, the depreciation of the Rupee against both the US Dollar and the Chinese Yuan (CNY) in the past few months have been significant and may play a spoiler if duties are imposed. For example the average INR/CNY exchange rate for February 2010 was 6.79 while it was 8.70 on 15th June 2012, a depreciation of 28.16%, Mr Ashok Khurana of APPAI says in a letter to the power secretary written recently.

Pranab Mukherjee set for Rashtrapati Bhavan as consensus grew in his favour

NEW DELHI: Pranab Mukherjee appears to be set for Rashtrapati Bhavan as consensus was growing in sections of the NDA that, considering his political stature and popularity, he should get cross-party support.

Although, the BJP-led National Democratic Alliance (NDA) is yet to make up its mind on supporting Mukherjee, murmurs of support for him came from its key alliance Janata Dal-United (JDU) and to some extent Shrimoni Akali Dal (SAD)

In Patna, JDU leader Shivanand Tiwari said a "graceful sendoff" should be given to the veteran politician by making him the country's 13th president.

"A senior and respected leader like Pranab Mukherjee, who is going to retire (from active politics), should be given a graceful sendoff," Tiwari told reporters in Patna, adding that it was his personal view.

He also said that Mukherjee enjoys the backing of Samajwadi Party and Bahujan Samaj Party (BJP), whose support will take the United Progressive Alliance (UPA) strength in the electoral college to 47.6 per cent.

JD-U chief Sharad Yadav was quick to point out that NDA will meet Sunday and decide its stand on the presidential poll. He also added that Tiwari was airing his personal view.

However, sources in the JD-U say that at the NDA meeting many party leaders will stress on support to Mukherjee. JD-U is the second largest partner in the NDA and the party shares power in Bihar with the BJP. The BJP has been saying that it will not support a Congress candidate.

The party will have to decide on whether it will back Purno Sangma, who is ready to defy his party Nationalist Congress Party (NCP) diktat and contest against Mukherjee, or go along with majority political opinion and back Pranab as a consensus candidate.

Sangma enjoys the support of two chief ministers - AIADMK's J.Jayalalitha and Biju Janata Dal's Naveen Patnaik. The BJD came out in open support of Sangma Saturday. NCP is part of UPA and had endorsed Mukherjee's candidature Friday.

"As of now there is no change in our decision on the presidential poll. BJD sticks to its support for Sangma, a prominent tribal leader. We are determined to back Sangma," senior leader and BJD parliamentary party leader Arjun Sethi told reporters in Odisha.

Sangma, who could be expelled from his party if he goes ahead against Mukherjee, is also eyeing support from the NDA.

BEST TIPS IN STOCK OPTIONS AND STOCK FUTURES

BUY GIVEN IN RENUKA 27.50 CALL YESTERDAY @ 1.60
FIRST TARGET ACHIEVED AT 2

BUY GIVEN IN TATAGLOBAL 110 CALL @ 3.10 TARGETS 4,5,6
ALL TARGETS ACHIEVED
 PROFIT RS. 5800/-

BUY GIVEN JPASSOCIATES 65 CALL @ 5 TARGETS 5.50, 6.50
PENDING.....

BUY GIVEN IN IDFC FUTURS @ 127 TARGET 130, 133

FIRST TARGET ACHIEVED

PROFIT RS. 6000/-

BEST TIPS IN STOCK OPTIONS AND STOCK FUTURES

BUY GIVEN IN STER 95 CALL @ 3.40 TARGETS 4.40, 5.40

made a high of 5.25

profit rs. 3500/-

BUY GIVEN IN PFC 160 CALL @ 4.30 TARGETS 4.80, 5.50

ACHIEVED FIRST TARGET 

PROFIT RS. 1000/-

PENDING FOR SECOND TARGET

BUY GIVEN IN DR REDDY 1600 CALL @ 40 SL 35 TARGETS 45, 50, 55

PENDING....

BUY GIVEN IN RENUKA 27.50 CALL @ 1.60 TARGETS 2, 2.50

POSITIONAL 

PENDING....

 

BEST TIPS IN STOCK OPTIONS & STOCK FUTURES

BUY GIVEN on 4-6-2012 IN NIFTY 4800 CALL @ 138 TARGET 158, 178

all targets achieved

profit rs. 2000/-

BUY GIVEN on 4-6-2012 IN IDFC 120 CALL @ 4.10 TARGET 5,6

achieved all targets and made a high of 9.70 today

profits rs. 4000/-

BUY GIVEN on 4-6-2012 in SBIN 2000 CALL @ 117 TARGETS 150,200

achieved first target at 150 and made a high of 187

profits rs 9625/-

CALLS GIVEN TODAY:

BUY LIC HSG 240 @ 8 TARGETS 9,10,11
achieved second target and made a high of 10.65

Profit rs. 2000/-


BUY GIVEN IN ESSAR OIL 55 CALL @ 1.50 TARGETS 2, 2.50
first target achieved at 2

profit rs. 2000/-

BUY GIVEN IN STER 95 CALL @ 3.40 TARGETS 4.40, 5.40

PENDING...

 

BEST TIPS IN STOCK OPTIONS & STOCK FUTURES

BUY GIVEN on 4-6-2012 IN NIFTY 4800 CALL @ 138 TARGET 158, 178

all targets achieved

profit rs. 2000/-

BUY GIVEN on 4-6-2012 IN IDFC 120 CALL @ 4.10 TARGET 5,6

achieved all targets and made a high of 9.70 today

profits rs. 4000/-

BUY GIVEN on 4-6-2012 in SBIN 2000 CALL @ 117 TARGETS 150,200

achieved first target at 150 and made a high of 187

profits rs 9625/-

CALLS GIVEN TODAY:

BUY LIC HSG 240 @ 8 TARGETS 9,10,11
achieved second target and made a high of 10.65

Profit rs. 2000/-

BUY GIVEN IN ESSAR OIL 55 CALL @ 1.50 TARGETS 2, 2.50
first target achieved at 2

profit rs. 2000/-

BUY GIVEN IN STER 95 CALL @ 3.40 TARGETS 4.40, 5.40

PENDING...

 

MUDRAS FOR INNER HEALING

Six Mudras for Inner Peace

Mudras are an investment you make in yourself; the pay off is a feeling of well being and inner peace. If you come home from work feeling frustrated or burned out, mudras offer you relief.
Experiment with the following mudras. Some may work better for you than others. As you work with them you will begin to feel as though you have had a good massage. Before you begin you may feel jazzed and confused, and end feeling calm and focused.

Release — Calmness Let go of unwanted tensions This mudra draws anxiety and tension to your hand and lets it drain out. How to do it: Sit straight and tall. Bend your elbows so your forearms are perpendicular to the floor and hands are at ear level. Extend your fingers straight up, and rotate your hands back and forth. Note: When done, let anxiety drain out by dropping your hands loosely to your sides and gently wiggling them.	Relax — Tranquility Promotes grounding Tranquility helps you cut though external and internal chaos to find a place of inner peace. How to do it: Sit straight and tall. Bend elbows so your arms are in front of your chest. Place the palm of your right hand on top of your left arm. Move the top of your left hand up, touching the underside of your right arm. Keep fingers straight and together. Breathe deeply from your belly.
Restore — Comfort Invite soft energy into your heart Life deals us many losses — death, loss of job or dream. These events leave us feeling depleted. You can comfort yourself with this mudra. How to do it: Sit straight and tall. Bend elbows and extend them out. Put your hands on the upper chest, fingers pointing towards each other. Imagine your hands warming your heart. Breathe deeply from your belly.	Recharge — Energy Recharge yourself When your battery runs out of energy this mudra is like plugging yourself into a wall socket. How to do it: Sit straight and tall. Extend arms from the body to the sides. Make circles with the tips of the thumbs and index fingers. Breathe deeply from your belly.
Reframe thinking — Prosperity Live with abundance Our thoughts limit our possibilities. This mudra changes our perceptions You take in what you need and you pour out your contribution. When you hold tight there is no room for the new. How to do it: Sit straight and tall. Take in — Place elbows close to your body and extend your arms out. Turn palms up with little fingers touching to form a bowl, symbolizing willingness to receive. Give out — Turn palms over with index fingers touching to empty your bowl so you can receive more.	Refresh mind — Balance Increase concentration When you feel scattered you cannot concentrate or hear your internal wisdom. This mudra helps balance and concentration. How to do it: Sit straight and tall. Bend elbows so your hands are just in front of you, just above your navel. Rest the back of the left hand in the palm of the right hand. Keep fingers together. Breathe deeply from your belly.

Fingers and Mudras

Mudras are all about the fingers, and each finger is packed with nerve endings, energy and a meaning all its own. The correct play of the fingers gives the Mudra the potency to heal. Let us take a look at the five fingers:

The thumb represents the element earth, the stomach and worry. The index finger represents the element metal, the lungs, and the large intestine and the emotions are depression, sadness and grief. The middle finger is the element fire, the heart, small intestine, circulatory and respiratory systems, and the emotions are impatience and hastiness. The ring finger is the element wood and is connected to the liver, gall bladder, and nervous system, and corresponds to anger. The little finger corresponds to water, the kidneys, and fear. In palmistry and astrology too the fingers depict profound meaning.

Little finger: Mercury - The little finger relates to communication and it is associated with the second chakra.

Ring finger: Apollo - The ring finger refers to relationships and is associated with Apollo, the sun god and the root chakra.

Middle finger: Saturn - The middle finger refers to responsibility and is associated with the throat chakra, the gateway of purity.

Index finger: Jupiter - The index finger refers to self-worth and is associated with the heart chakra.

Thumb: Mars - The thumb refers to self-assertion and is associated with the fire element.
 

 

 

 

 

 

 

Guhyam brahma tadidam braveemi.
Nahi maanushaa shreshthataram hi kin chit.

(No visible or invisible power can compare with the enormous inherent power possessed by man)

What are Mudras? How do we define them?

Where and how Mudras originated

Mudras in Therapy

A Scientific look

YOGA TATVA mudra vigyan

Most commonly known mudras and how they affect the body

---

What are Mudras? How do we define them? As per Eastern philosophies and culture and Yogic practices, 'Mudras' are systematic hand gestures. Literally, Mudra in Sanskrit means a posture/seal.
More deeply, "closed electrical circuits" of the subtle channels in physical and etheric bodies are also known as 'Mudras'.
Some Western writers have defined 'Mudra' as mystic hand gestures used to focus subtle energy, transmit teachings through symbols and confer psychic protection.
Chogyam Trungpa says Mudra is "a symbol in the wider sense of gesture or action………Also it is a symbol expressed with the hands to state for oneself and others the quality of different moments of meditation……."
Leaving aside the complex definitions offered by various people and sects, we will summarise to say that:
Mudras are a non-verbal mode of communication and self expression consisting of hand gestures and finger postures. They retain the efficacy of the spoken word. It is an external expression of inner resolve, suggesting that such non verbal communications are more powerful than the spoken word.
In Yoga mudras denote the finger and hand gestures and movements used in the performance of dances, rituals and rites and while engaging in spiritual exercises such as meditation. Mudras symbolically express inner feelings and inner psychological states. They also generate various qualities such as fearlessness, power, charity and peace in the practitioner and to on-lookers.
The Gherand Sanhita and the Vajrayana Tantra advise that the Mudras are capable of bestowing great powers and psychic abilities called "Siddhies" on their practitioners, hence, their knowledge should not be conveyed to those steeped in sin, to those that are not true to their word, to the skeptics and non believers, to heretics and insincere persons and those who do not observe the precepts.
Mudras have therefore always been considered an esoteric science and even as of date there are thousands of Mudras that are not available to the uninitiated (like in the Chen Yen Buddhism or True Buddha Schools). However, besides the mudras providing spiritual gains, there are mudras which are likewise of tremendous value in therapy. Constant researches by the dedicated have brought a large number of these to the fore although we still seem to be scratching the surface only of this sea of knowledge.
Where and how Mudras originated
No one knows for sure where and how mudras originated. They have been in use for millenniums. They have not ben known to adhere to any barriers . They have been found in all continents, practiced by people of all religions and those professing none. They are as natural to the body as the daily needs of the body. All that was required was to recognize them, identify them and scientifically understand and use them.

• In the Orient these can be observed in the rituals and rites of the rich cultural traditions of Hinduism and Buddhism in India, Tibet, China, Japan Indonesia etc. The paintings in the caves of Ajanta and sculptures in the Ellora caves, dating back to 2nd. and 1st. centuries BC show innumerable mudras.

Hinduism shows the earliest recorded knowledge and analysis of Mudras. The earliest documentations are found in Mantra Shastra (the book of incantations), Upasana Shastra (the book of worship and prayers) and the Nritya Shastra (the book of classical dances). The following verse from Srimad Bhagwad Gita mentions that Lord Krishna was in the posture of Gyan Mudra when he bestowed the knowledge of Gita to Arjuna.

Prapannapaarijaataaya totravetre paanaye,
gyaan mudraaya Krishnaaya geetaamritaa duhe namah

• In Jainism, Swami Mahavir Jain and in Sikkhism, Guru Nanak Devji are always shown in Gyan or Dhyan Mudra.
• In the Occident, cheironomy is the science of hand gestures (mudras). In Christian art Jesus, John the Baptist and Virgin Mary are shown in various Mudras. Reference may be had from the book "The sign Language of the Mysteries" by J.S.M.Ward. Even today, the sign used by the priests of Catholic Churches while blessing the devotees, is what is shown elsewhere in this article as "Mahagyan Mudra"
• Egyptian hieroglyphics are a virtual treasure house of mudras. The postures of their kings and queens even as mummies show them holding mudras.
• The Babylonian sun God Damuzi depicts Mudras while descending into the underworld.
• In Islam, the mystical Whirling Dervishes used Hand signs or Mudras for various rites and rituals.
• Roman art is replete with mudras.

Man only has that supreme power in his soul, that when scientifically endowed with Yoga, can help him achieve all the three sublime powers - the physical, mental and spiritual. All that is needed is the guidance and the rules of Dhyana (meditation) and Practice (sadhana)
There are various supreme sciences for the investigations on and into the human mind and body. Some of these are:

Mudra Vigyan	The science of finger postures
Kayakalpa Vigyan	The science of rejuvenation
Brahma Vidya	Divine knowledge - theosophy
Pranvinimaya Vidya	The science of curing the sick and the defective
Surya Vigyan	The science of solar energy
Punarjanma Vigyan	The science of reincarnation
Deerghayu Vidya	The science of longevity
Swar Vigyan	The science of sounds
Rasayan Vigyan	The science of Alchemy
Mantra Vigyan	The science of spiritual incantation
Samyad Preshan Vidya	The science of Telepathy etc.

There are many many more covering all aspects of science known to man today and those that modern science still has to discover again.
YOG TATVA MUDRA VIGYAN or in short, the more commonly known MUDRA VIGYAN is an entirely distinct and independent branch of yoga. This is the science of finger postures, based on Yoga of elements that go to create the human body. The science that can help raise the human being to achieve almost divine powers and keep the body perfectly fit.
Mudras in Therapy
We have mentioned earlier that The World Health Organisation defines good health as:
" A STATE OF COMPLETE PHYSICAL, MENTAL AND SOCIAL WELL BEING, NOT MERELY THE ABSENCE OF DISEASE OR INFIRMITY."
On this site, we shall be dealing with only those Mudras that have a salutary effect on the mind and the body to help maintain them at peak efficiency and /or help to cure them should they get stricken by any ailment or disease.
Like any Yoga, Mudras must be practiced sincerely and after gaining full knowledge of them. With few exceptions, a practice of these, with partial knowledge can, at the least, result in no gains and if practiced wrongly also produce undesireable effects.
Like any Yoga, Mudras should be learned from a Guru. After understanding the basic principles, the practitioners can generally do most of the Mudras by themselves.
Like any Yoga, Mudras are natures way of healing, as intended by nature and therefore, the mandates of nature are to be followed. These are no instant pills, which do give temporary relief but harm in the long run. While some Mudras do give instant relief, for permanent and long term gains they should be done with sincerity and belief.
Remember, the gains from all Yogic procedures are permanent and achieved without interfering with the natural working of the body mind or spirit.
A scientific look
Any living body is made of 5 distinct elements :

FIRE

WIND

ETHER

EARTH

WATER

These are not as per science's definition of elements but refer to the five building blocks that go into the formation of any living body. Several ancient health systems are based on the concept of the balance of the five elements. Indian Medical science according to Ayurved and metaphysics affirm that distortion or impairment of the 5 elements create outer disturbance and inner sickness in the body.
The 5 fingers of the hands represent these 5 elements :

The Thumb	symbolises the Fire
The Forefinger	symbolises the Wind
The Middle finger	symbolises the Ether
The Ring finger	symbolises the Earth
The Little or small finger	symbolises the Water

The finger tips of every living being have many concentrated nerve root endings which are free energy discharge points. Science also confirms that around every tip there is a concentration of free electrons. By touching together of the tips of the fingers or the finger tips to other parts of the palms this free energy (Prana) is redirected back into the body along specified channels, back up to the brain. The redirected energy traveling through the nerves stimulates the various chakras. Keeping the hands on the knees stimulates the Gupta Nari and makes the energy start from the Mooladhara Chakra.
Thus, the tension applied to the nerve/s and/or the neural or psycho-neural circuits formed by the mudras help in balancing the five basic elements (or building blocks). This balancing of the tension, and redirection of the internal energy effects the changes in veins, tendons, glands and sensory organs, to bring the body back to a healthy state.
Keeping specified nerves stretched for specified periods tones up of the nervous system. The fingers of each hand are held folded in certain specific postures and this provides the required tension on the nerves.
The fingers of each and every individual in the world are different in their shapes and sizes. These are determined and provided by nature as a tool to bring the nerves into prime condition when affected adversely.
Thus, they provide a different 'end tension' on the nerves when different individuals fold their fingers or the same individual folds the fingers by different methods in different Mudras. This is exactly the tension required by that individual for that particular application. Nature has already bestowed us with the tools to be used to keep us healthy.
Compare this with Acupressure where the nerves are influenced by the application of pressure on certain points or Acupuncture, where slight electrical impulses are conveyed through needles inserted in the body. The advantage in Mudras is that the pressure to be applied on the nerves is automatic and controlled by the shape and size of the fingers and not by external agencies.
Because the Mudras work on the nerves, they are a NEURAL SCIENCE
Mudra Vigyan is also a science based on the principles of the Indian Medical Science (Ayurveda) which lays down three factors primarily responsible for the body's ills, Vata (wind), Pitta (bile) and Kapha (Phlegm).
10 types of Vayus (Winds) circulate through the nerves of the human body and can be controlled with MUDRAS.

MUKHYA VAYUS (Main Winds)
Pran Vayu	Mouth; central nose; central nabhi; heart
Apan Vayu	Rectum; regenerative organs; knees; loins Stomach; waist; navel and calves
Vyan Vayu	Eyes; ears; shoulders; ankles; throat
Udan Vayu	Hands and feet
Saman Vayu	assists other Vayus
UPVAYUS (Secondary winds)
Nag Vayu, Kurm Vayu, Kriker Vayu, Krikal or Devadutta Vayu, Dhananjaya Vayu and these winds circulate in places like the skin and bones etc.

The rules to keep these Vayus in good order are called PANCHMUKHI PRANOPASANA or the five faceted worship of the life forces and use the Mudras to achieve their ends.
YOGA TATVA mudra vigyan (Yoga related to the elements)

• Tatva Yog Mudra vigyan is an independent yoga, built upon the knowledge of the five fingers of the human hand.
• Detailed descriptions are available in Mantra Shastra (Books of incantation), Upasana Shastra (Books on meditation), Nritya Shastra (Books on the art of Dances) and the books on the art of sculpture.
• Mudra is a very exact and scientific yogic function by which one can develop or even change, one's internal and external dispositions viz. mental (anger, emotional disturbance, intelligence etc.), spiritual (concentration, meditation) or physical (in various diseases, illnesses).
• Mudras can bring miraculous mental, spiritual and physical changes and improvements in our body. They help in quickly balancing the elements of the body.
• Mudras effect changes in veins, tendons, glands and sense organs.
• Mudras need no prior preparation. They can be done (mostly but with exceptions) at any time, anywhere and under virtually any circumstances.
• They are like literal remote control switches bringing quick and effective changes.
• They help bring about permanent changes.
• A constant practice of Mudras can stop or slow down the destructive changes in the human body. It can help develop a virtuous, socially amiable, non-violent, pious and courteous disposition.
• Some of the Mudras can balance the elements of the body within 45 minutes; some react within a few seconds on the human body.
• The ancients believed there were 24 diagnostic elements, the Gayatri mantra has 24 words, the Jains have 24 Tirthankaras, and Sanatan Dharma has 24 avatars. The 24 words of the Gayatri Mantra have a special relationship with 24 mudras known as GAYATRI MUDRAS. They have different names and formations. The importance of Mudras is also clear from the grim qualifier to these:

Etaa Mudraa na jaanaati, Gaayatri nishphalaa bhaveta
To him who does not know Mudras, Gayatri becomes ineffectual.

• Mudras awaken the cosmic energy and help unite the atma (soul) with the Paramatama (the cosmic soul).