Yesterday we saw the markets correcting a little bit.
NIFTY came down by 59 points with 14 stocks advancing, 35 declining and 1 unchanged. Even on the previous two days when the Index was up, the advance to decline ratio was negative. This fact shows that the market is lacking the momentum to move forward.
This lack of momentum resulted in the fall yesterday.
BIOCON stock now trades after bonus issue in 1:1 ratio. Our PUT 520 has now become PUT 260 and lot size is 1800. In the position chart below, the Buy Price is adjusted accordingly. It was bought at Rs. 7.50, now changed to Rs. 3.75 in line with the bonus ratio. This stock went down 4% yesterday and played a major role in improving our trading positions.
DRREDDY and SUNPHARMA flattered to deceive. The stocks made good down moves but ended flattish which reduced the premiums. Same story with ZEEL.
Not a great day for our trades but we can call it a reasonably good day. The loss came down by almost Rs. 8000 as compared to Tuesday.
New Trades :
It is tempting to go for new trades. A good profit always seems to be just a good trade away.
Keeping patience when in a good position or in a bad position is the key to success in trading. Profit does not lie in the number of trades, it comes from few right trades handled successfully.
In 8 trading days, we have taken 8 trades and that is enough for the present. We wait for good opportunities and we also wait for our current trades to come good.
No trades for today.
Asia Markets and SGX NIFTY are in the red as I write, we may see some of our trades doing well today.
Trade cautiously, trade profitably.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.