Another day, another all time high.
NIFTY moves on to another high and looks set to go above 11400 today. If not today, this level may be seen tomorrow.
On another day of new highs we did not expect our PUTS to do well. It worked the other way round. CALLS did not do well.
YESBANK and L&TFH both moved lower. Such are the ways of the market. YESBANK went above Rs. 374 when NIFTY was negative for the day but fell sharply when NIFTY covered all the loss and moved strongly upwards.
TATAMOTORS went down and it looks that this trade may come right soon if the market does the right thing after the results.
The position for both the PUT BUYER and the CALL BUYER are not good.
PUT BUYER :
CALL BUYER :
We stay in all these trades and look for new trades as the first day of August ( Calendar month, not the Series Month ) is upon us.
New Trades :
PUT BUYER :
Yesterday metals gained strength as the NIFTY moved up. The sector has remained weak otherwise over last few months. With a slight fall in NIFTY, metal stocks must move down. We go with our hero of previous month — HINDALCO.
The 52 week low few days ago was Rs. 192.85 and that is where we shall be keeping an eye.
PUT 195 at Rs. 2.80 -3.00 would be my choice.
CALL BUYER :
For today, there is no CALL selection.
Everything is looking strong. To decide is not easy. Let us wait another day for taking a trade.
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.
Comments
Vijay August 1, 2018 at 9:31 am
Hello Sir,
Tatamotors actually made it today. It is trading 3-4% down today.
It worked. Actually, put trades make good moves when trading in options. Call options take more time I guess.
Thank you for your guidance.
Regards,
ReplyVijay
admin August 1, 2018 at 10:51 am
It does not take much time to go wrong either. In the first minute of trade, Tata Motors touched Rs. 350. With 90 minutes gone it had moved to the high point of the day at Rs. 262.35 with the PUT 240 losing out all the gains. Same bad results but the market reactions can be different and deceptive.
We can only keep faith that the right thing will happen. If not immediately, then a little while later.
ReplyNiloy Roy August 1, 2018 at 10:50 am
Dear Sir,
Dr Reddy is already trading at 10% above the strike that we have taken. Is it correct to expect such a fall in the stock price for our put to work??
Thanks
Replyadmin August 1, 2018 at 10:54 am
We had taken a far away strike. It has gone further away. To expect such a fall? Well, I expect it. at the most I will be wrong and my money will be gone. Nothing worse than that can happen. Some other trade will do better and give more money.
ReplyCheers.
Rajeev August 1, 2018 at 11:29 am
Dear Sir,
Replypl let me know if it is possible to participate in your course online ?
Sunil Kumar Verma August 1, 2018 at 12:09 pm
Please confirm about the online course or webinars. It will be very convenient for people belonging to rural areas. Thanks
ReplyAbhinav August 1, 2018 at 1:24 pm
Every bad news is pulling stocks up. Today Tata Motors!!
ReplyRK August 1, 2018 at 4:20 pm
Tata Motors really played tough for our PUTs… At one point tough it went 10 points down, out PUT didnt change much… and EOD TM ended in positive… just bad luck…lets hope it goes down in coming days
RK
ReplyRK August 1, 2018 at 4:24 pm
Entered Hindalco 195 PE @ 3.3 …could have got it at 3.15 too …So far doing well
ReplyMadan Mohan August 1, 2018 at 11:44 pm
Dear Friends – Is the Tata Motors in the last stage of bearish trend? let us review some data from the charts. We all know that the present bearish trend of Tata Motors started on Oct 2016 and continuing since-then. We further know that for every bearish trend there comes intermittent rallies (small rallies). If we observe the last 5 rallies, we can note that each rally size is getting smaller from the last 5th rally to the recent one. let us start form today’s rally, todays rally size was just 12 points (assuming the rally ended today itself), then there was a rally on 28th April – the size of this rally was 21 points, then there was rally on March 26 – the rally size was 35 points, and the rally that had started on sep 4th 2017 had a size of 70 points (approx.), Just sharing my thoughts.
Reply