Another Monday, beginning of a new week of trading.

So far NIFTY has gone up from 11167.30 to 11429.50 ( 262.20 points ) in 11 trading days since July Expiry day. It has made new highs on multiple days in this period. Whether this momentum will be sustained in the new week is to be seen.

From the looks of Asia Markets and SGX NIFTY this morning, it appears that markets may be stalled in their up march at least for the day.

Our Trades :

As discussed in the Weekly Review post yesterday, we are not in good shape at present. But there are some trades which have a good chance of becoming ITM soon. Once that happens, we shall have some relief and hopefully a turnaround in the situation. Let us look towards the day with some optimism.

Keep a watch on all of them but more specifically on TATAMOTORS, TATAGLOAL, BIOCON, HINDALCO and YESBANK.

New Trades :

Trading is often boring and repetitive. We do not mind that if being boring is profitable. We do not have to look at new trading ideas. Old ideas or IDEA are good enough for us.

I mean a trade in Idea Cellular Limited. ( IDEA ).

It is currently trading at Rs. 54.40. Telecom is one of the weak sectors and IDEA a weak stock. In July, this stock had shown this volatile move from July 10 to July 18 :

A 12% decline in 7 trading days.

With IV ( Implied Volatility) of about 50, there is every chance of a repeat of such move and we can go for PUT 50 which is a strike about 8% away from current price. At Rs. 0.80 ( Lot Size 7000 ) , maximum loss can be Rs. 5600.

As I write Asia Markets have moved further into the red and so has SGX NIFTY.

Hence no CALL selections for today.

We expect a lot of volatility today. Let us hope it works for us.

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.