What a day ?
Going one way up. At one stage it looked like that the all time high would be taken out. But that was not to be. Suddenly the sellers rushed in to cash in the bullish sentiment.
What was the reason for this reversal? I do not know nor does anybody else. We have to live with what is happening and not spend time in analysis which can go wrong in a minute like it did yesterday.
NIFTY still ended in positive, still not very far from all time high.
We really had the worst of it from both sides.
The stocks in which we hold PUTS closed higher, TATAMOTORS by more than 7%. The one CALL in INDUSINDK bought at Rs. 30.00 kept going down when rest of the market and BANKNIFTY were going up.
BIOCON PUT 580 was bought for Rs. 6.60. That too lost some value.
Right now, all the 4 trades have gone wrong. Well, that is market for us.
New Trades for the Day :
TATAMOTORS did not give us a good drive.
Let us look for another ride.
EICHERMOT is down over 30 days and 7 days. Qualifies for buying a PUT. CMP is Rs. 20048 and 52 week low is Rs. 18800.
PUT 19000 @ Rs. 300-320 can turn out to be a good trade. Lot Size 25, Maximum Risk — Rs. 8000.
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.
srinivas B April 2, 2019 at 9:00 am
Nifty PE ratio is all time high at 29.13. in coming days it will drags nifty for some big correction. (it’s some experts Opinion. i don’t have that much Knowledge). is it correct sir? taking only PUTS is safe play for us sir??
KV Rao April 2, 2019 at 4:30 pm
I have been hearing this for last 10 Years !Reply
MADAN MOHAN M April 2, 2019 at 9:10 am
Zee Entertainment, Promoters have sold 76,00,000 shares in the Open Market yesterday . Source BseindiaReply
vishal agarwal April 2, 2019 at 9:35 am
Sir given strong opening of Eicher motors should we skip the trade or try to take 20000pe at 320 around. Still it needs to go above 21300 to invalidate our 1 week weak criteria.Reply
admin April 2, 2019 at 9:37 am
Today’s reversal has made our trade a non starter. We wait for another day.Reply
vishal agarwal April 2, 2019 at 9:41 am
Before writing the comment here had put an order for 20000pe at 300 which got traded. Now I am into the trade. Let’s see what is in store.Reply
Raveendran K A April 2, 2019 at 1:23 pm
PUT buyers in Eicher can breathe easy. In spite of today’s move, Eicher chart set-up (short-term) doesn’t look bullish. No need to worry till it goes above 21000.Reply
Ravikumar April 2, 2019 at 10:49 am
Sir, today’s hype is just because of the appointment of the new CEO. Most probably it is for just one day only. We have seen this many times in other stocks too. No fundamentals changedReply
Ravi Kumar April 2, 2019 at 9:27 pm
Sir, I took 19500 PE at 250.Reply
Arihant April 2, 2019 at 10:28 am
I got 19000pe at 179.. let’s see how it goesReply
Raveendran K A April 2, 2019 at 1:41 pm
You can also consider Bajaj Auto for buying PUTS – stock is breaking down.Reply
arnab April 2, 2019 at 3:44 pm
I am holding it since yesterday, so far so good, but you xan never say, what’s good turns bad in blink of an eye and vice-versa.Reply
vishal agarwal April 2, 2019 at 5:16 pm
Agreed! The market is so random. It’s thus prudent to stick with a clear long term trend. Bajaj Auto fits our month and week weak stock criteria. The put IV is at the borderline of 30. I am already in Eicher 20000PE trade else could have considered Bajaj Auto trade.Reply