Monetary policy is over. Markets got another 25 basis points cut in interest rates. It was supposed to cheer up the markets. For some reasons which we will never know, it did not. NIFTY closed just below 11600.
Only a day ago, the all time high was seen at 11761.
This was the move seen yesterday:
Monetary Policy review came at 11:00 am. The fall started much later. To quote that as a reason for a decline is stretching the argument. The fall was mainly in Banking and IT sectors. Other sectors did not do so badly.
We know it because all our trades suffered. For us the day was paradoxical. NIFTY went down. Our stocks did not go down. One that went down sharply was INDUSINDBK in which we have a CALL. The stocks with PUTS stayed higher. That is how the market can be.
The new trades could be taken at the suggested prices but ZEEL moved to Rs. 417 after going lower to Rs. 391. BRITANNIA too went wrong.
This is the position now:
BIOCON PUT 580 which had become marginally profitable moved back into losing territory.
Trades for the Day :
One of our old favorites RELCAPITAL is now showing signs of weakness. It is now down over 30 day and 7 day period. Current Price is Rs. 185.90. This stock is highly volatile, so we go for a PUT about 8% away. That would be Strike 170.
RELCAPITAL PUT 170 @ Rs. 4.60-5.00 is the trade. Lot Size — 1500. Maximum Risk — Rs. 7500.
Asia Markets are trading flat. So is SGX NIFTY. Let us see what is in store for us today.
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.