The last week saw NIFTY making another record high.

On Monday ( January 06, 2020 ), we appeared to be on way to profitability but by the end of week, our position had become weak.

This is how NIFTY moved up to record high and then gave up few points.

This is where we find ourselves:

Not good but not bad either.

In the last week, we saw ZEEL stock price move back from Rs. 260-261 level twice and currently too it is at Rs. 263. For a PUT to deliver a good profit, we need the option to be In The Money. Let us hope that this stock continues its downward momentum and moves below Rs. 260.

On Friday, RELIANCE did not gain anything with NIFTY being up. If RELIANCE remains subdued today as well, we have a chance with our trades.

As I write, SGX NIFTY is up 53 points. This kind of gain will take NIFTY very close to the record high and with another push may see a new high once again.

But the fact is that we do not want to see that.

Anyway, we have to face the reality of the market and hope that the day works out well for us.

New Trade :

With the new highs in the index, there are not many stocks which are showing current weakness.

The leading weak stock is YESBANK but the volatility being sky high it can not be traded as premiums are prohibitive.

ONGC is weak over 30 day and 7 day period. IV is just right at near 30.

The current price is Rs. 124.05 and we look for PUT 120.

ONGC PUT 120 @ Rs. 1.40-1.50 would be my choice for a trade today. Closing price on Friday for this option was Rs. 1.60 but with a likely positive open for the market, we look for a little lower price.

Lot Size is 4100 and the maximum risk is capped at Rs. 6150.

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.

Trade cautiously, trade profitably.