The heady feeling of the 421 points gain the previous day kept the upward momentum for the first half an hour yesterday.

NIFTY made a new All Time High at 11883.55.

We never know what makes the market do what it does. We will not pretend otherwise. It is not our job to find out the reasons of market actions. All the reasons which made market go up on Monday were present on Tuesday. But market decided to cool down a little and went down by almost 120 points, a good 200 points from the highest level.

Let us see what was the impact on our trades.

We bought SUNPHARMA PUT 390 at Rs. 7.00. Good that the stock moved lower in the later part of the day.

As expiry approaches, the time premiums are quickly eroding. But with 7 days still left for trading and actual elections results yet to be out, volatility is in the air and we are in with a chance.

Our position improved mainly due to TATASTEEL, TATAMOTORS and HCLTECH and KOTAKBANK CALL lost some as compared to previous day.

Overall, we ended up a little better than where we were on Monday.

Asia Markets are trading flat. If our market takes its clues from Asia, we are in for a lackluster trading day. But we have seen that the market can be volatile in a narrow range too. So, be ready for anything. A strong up move or down move or all day small swings finally not going anywhere.

The trick is to stay calm under any circumstances.

New Trades for the Day : 

This is the difficult part.

Looking for a new trade on daily basis is tough. I have seen guys on TV dishing out trades by the dozens or even twenties in a day. I do not know how they do it or more importantly why they do it. I have never seen anyone making money through those 12 or 20 trades per day.

Option Buyers have to think of the time remaining to expiry, uncertainty about the trend and most important cost of the trade knowing fully well that any option can become worthless.

That is why it is very difficult to find new trades every day.

No new trades today.

Be watchful with the current trades. If the market wishes to give us some profits, the current trades should be enough to get that.

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.