A Zero Risk Investment Strategy

Market always gives opportunities one need find right setup to reduce risk and maximize profitable
chances. Here is one Strategy which gives more than 40% Annual Return Possibilities with almost zero
risk!!
Before seeing the Strategy let see nifty monthly chart where we have two Possibilities
Chart1

in above chart show bullish view Contracting Triangle seems to be completed. if this Contracting triangle
really completed nifty has to go beyond 8500

Prepared by K.S.Saravanan
Trader cum investor
kssaravanan19@yahoo.com

A Zero Risk Investment Strategy

Next we will see another chart for bearish view

Another Possibility is that we cant ignore a Possibility of diametric pattern

Coming to Strategy How we can benefit from above analysis??
Personally I believe market will go new high and a new bull market is waiting in Indian Stock market at
the same time one cant ignore a Big fall. Moreover general election is coming next year so I expect a
wild move either side based on results

Prepared by K.S.Saravanan
Trader cum investor
kssaravanan19@yahoo.com

A Zero Risk Investment Strategy

Now coming to the Strategy

This Strategy require a minimum investment of 330000/Where the investor need to hold the Following Position for atleast 6 to 13 months

There is 3 Possibilities in next year

Based on Chart 1(Bullish View) Nifty Crosses 8500 on or Before 24 dec 2014
If this happens we need to close all Positions as Per Strategy
Which yields a minimum 32% Return on investment (that good return in current market conditions)

Based on Chart 2(Bearish View) Nifty Crosses 4500 on or Before 24 dec 2014
If it happens then the Valuation of nifty looks very attractive in this scenario an additional investment of
Rs 112500/- Needed
That is we have to buy 25 Nifty (via ETF) to add our investment
Then we again would have two Possibilities
a) Nifty Closes below 4500 on 24 dec 2014
In this case we would get additional Rs 1 Lakh as MTM from 6500 Put option that amount can be
used for more additions in nifty ETF
If option Prices permits we can still continue the same above Strategy for 2015
b) If nifty closes above 4500 on Dec 2014
Prepared by K.S.Saravanan
Trader cum investor
kssaravanan19@yahoo.com

A Zero Risk Investment Strategy

Wherever nifty close our initial capital is well protected Plus we can gain from additional
investment which made at lower levels

Nifty Stays between 8500-4500 in 2014

Case A Nifty closes between 6500-4500
This the area where we might not get any good return at the same time our capital is well protected
But I expect a Break out either side as Nifty Stayed in this range more than 3 years

Case B Nifty closes between 8500-6500

In this case we would be in profit the only thing the rate of return would vary depends on nifty closing
on Dec 24 2014
Conclusion
Since I have giving all Possibilities of nifty ranges I would say this as zero risk investment Strategy with
32% Annual Return Possibilities. unless we have a deep bear market the Strategy will be zero risk. Since
from 2008 we are in correction Phase .So the Probability of another deep bear market is very remote

Prepared by K.S.Saravanan
Trader cum investor
kssaravanan19@yahoo.com