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.