Yesterday was Day 9 of continued declines.
The market continues to reel under the impact of US China tariff war and the traders are left to rue their losses.
Last night NASDAQ declined more than 3%. Dow Jones Index lost about 2.38% and Asia Markets are again in the red this morning.
Market observers are looking for a bounce back after continued fall of 9 days but the international trends do not offer any hope. Let us see how the day pans out.
Yesterday after the early flat market, our trades started to do well.
MOTHERSUMI and CADILAHC made new 52 week lows.
SUNPHARMA is caught in a case of collusion for price fixing in US and the stock moved down sharply to Rs. 344 levels before recovering to close near Rs. 400. PUT 430 traded for a high of Rs. 84.20 but came back to near Rs. 28 level by end of day.
This stock needs to be watched seriously as another down move is not ruled out.
Other trades too did well and with the exception of BHARTIARTL all have turned profitable.
The status as of yesterday close:
Again it is example of what can happen in options in just one day.
Let us expect more from this level.
Trades for the day :
It is very tempting to get carried away in such situations.
Let us not do that.
We are in 8 trades and let us stay with them.
If we see a big down move in any of the Pharma stocks i.e. SUNPHARMA or CADILAHC, we should be moving to a lower strike after booking some profit. That decision is to be taken if we see levels of Rs. 370 in SUNPHARMA and Rs. 260 in CADILAHC.
Stay calm and cool whether trades are doing well or otherwise.
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.