The NIFTY kept its upward momentum intact and closed above 10700 for the first time since late August 2018.
Again, the gains came in the last part of the day.
There are three interesting facts :
(1) Yesterday in spite of the strong close towards the end , there were 23 Gainers and 27 Losers in the NIFTY stocks.
(2) Yesterday had lower high and lower low than the previous day. Now I am not too much into technical analysis but this is one statement generally touted about predicting the market going down. Truly, I do not know and maybe others too do not know but would not admit it. Market will do whatever it wishes and keep us guessing all the time.
(3) Sensex closed at a record high on closing basis. Good. But the advancing shares were 1197 and the number of declining shares was 1366 yesterday. On a day of record closing, there were more losing stocks.
Look beyond the numbers. Therein lie the potential good trades.
We are into 4 trades till now. EICHERMOT opened with a strong gap up yesterday and the trade was avoided.
The position of other trades is as shown:
TATAMOTORS has moved far away but others can work out. We stay with them.
New Trades for the Day :
EICHERMOT still meets the criteria of buying a PUT. It gave up part of the gains yesterday though it moved up.
We consider this to be an opportunity to buy a better Strike Price at a good price.
EICHERMOT PUT 19500 @ Rs. 250-270 can be bought today. Lot Size 25 Maximum Risk Rs. 6750.
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.