The story yesterday:

Question on everybody’s mind now is — Will it bounce back ?

Experts will keep on talking endlessly about this support or that. There will be talk of 200 day, 100 day and 50 day moving averages and inferences drawn from them but market will keep on moving whichever way it wants confounding the experts and novices both.

It is best to accept the fact that predicting the market does not help in making money.

Accept what the market gives with thanks and humility.

Yesterday SUNPHARMA, BIOCON and YESBANK went wrong. The market was significantly down but these stocks ended up higher.

This is how most traders look at their trades and this surely is a wrong approach to trading.

It is the wrong orientation of mind towards trading. We tend to care too much about what is going wrong. we should be looking at what is doing well.

GAIL made the new 52 week low. HEROMOTOCO once again moved lower. MARUTI made fresh 52 week low exactly at Rs. 5900. We look for further down move from this level. TATASTEEL came below Rs. 450 and then moved a little higher. Further weakness in the sector can take it below the previous 52 week low.

Whatever we are expecting from the market may happen or may not but we have to look at the good part first.

I am again emphasizing that one should not feel exuberant when the trades do well. Similarly do not get depressed when losses come calling.

Our position improved considerably thanks to the move in GAIL and TATASTEEL with some inputs from HEROMOTOCO and MARUTI.

RELIANCE PUT 1240 was bought at Rs. 11.50 when the stock opened higher in the morning.

The position at close yesterday:

Our trades may come under some pressure today as the likely trend seems to be upwards for the day with S&P in USA moving above 3000 mark yesterday briefly.

Asia Markets and SGX NIFTY too are confirming this trend.

But we may also see the weak stocks continue to remain weak.

Time to be careful. Nothing new there, we need to be careful everyday.

New Trades :

We do not take new trades today but plan for some exits from the current trades.

MARUTI PUT 6300 could not be exited yesterday. We try to do that around Rs. 400 level and move to PUT 5800.

GAIL PUT 147.5 can be exited at around Rs. 5.00 and move made to PUT 142.5.

HEROMOTOCO PUT 2500 can be sold around Rs. 150 and PUT 2300 entered at that point.

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.