One day down, another day up.

Yesterday it was the turn for going down. And go down it did with some energy. The best way for Bank Nifty to go down is by creating huge sell in HDFCBANK. This is the stock with the highest weight in the Index.

HDFCBANK went down 2.2%. ICICIBANK stayed positive for most of the day but cracked at the end. KOTAKBK managed to stay positive though significantly lower than the high point of the day.

With HDFCBANK falling so big, our PUT sell trade in this stock became a losing trade. ICICIBANK and KOTAKBK are still in profit and all three taken together are doing okay.

BANKNIFY PUT 30300 went up in value from the previous day and closed higher than our buying price. So we get a small profit from the hedging trade as well.

The position at close yesterday:

Strategy is working fine.

Wait and watch as we have been doing everyday.

Nothing else needs to be done.

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.