Nifty moved up 186 points mainly on the back of financials. Then there were the usual beaten down stocks/ other non performers which went up considerably and added few more points to NIFTY.

The big ones were once again reticent to participate in the rally. Three of them ended up in the negative on such a big day— TCS, INFY and ITC. Even the stocks where the gain was less than the gain in NIFTY caused a MTM loss for us.

The position at the end of day yesterday:

In a single day, this strategy lost Rs. 30000.

This is a big under performance by the front line stocks. That means the rally is not supported by the big names.

This fact may not support our strategy but it helps us in planning our trades for the Option Buying Series. I conclude that the rally is not likely to be sustained.

For the lazy trader nothing has changed. Nothing needs to be done.

Stay lazy, stay happy.

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.