The momentum in NIFTY continues after March Expiry on Thursday. Friday saw NIFTY gain another 53 points and continue its move towards the all time high.
The journey to 11760 looks simple and straightforward from here. But markets are not known to be so easy to guess. Let us wait and see how this move unfolds.
Looking at the Asia Markets and SGX NIFTY this morning, NIFTY near 11700 today looks like a possibility.
This was my take on the likely NIFTY behavior over next few days.
Talking about NIFTY in a generalized way does not make money. We have to look for strength and weakness in individual stocks and take a trade based on a method and conviction.
For that we have to look below the surface and find out the trades.
NIFTY has gained 14.93% over the 365 day period. A very good gain indeed. In the same period 24 stocks are gainers and 26 are losers. Interesting, isn’t it ?
That means there is a skewed distribution of strength and weakness. It is not a good story everywhere.
So we keep on doing what we have been doing, NIFTY going one way or the other does not impact the trades much.
Friday Trades :
TATASTEEL PUT 480 was bought at Rs. 5.20.
TATAMOTORS PUT 160 was bought at Rs. 3.50.
Bpth the stocks moved higher and the PUT prices came down. We wait with these two.
Trades for Today :
INDUSINDBK has gained 20.49% over last 30 days. It maintains the trend in the 7 day period also even after a fall of 2.2% on Friday. That makes it a candidate for a CALL.
CALL 1860 @ Rs. 30-32 would be my choice. Lot Size 300, Maximum Risk — Rs. 9600.
BIOCON remains week over 30 day period. The problem is with 7 day status. It is just flat with neither gain nor loss. Normally it would mean avoiding a trade. But I am going with the trade taking a risk. Readers are free to ignore the trade if they so wish.
BIOCON PUT 580 @ Rs. 6.60-7.00 would be my choice for a trade. Lot Size 900, Maximum Risk Rs. 6300.
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.