On Thursday,we saw NIFTY diving about 100 points. It looked like it would go lower. Markets can fool all the people all the time. Bulls returned with a vengeance and NIFTY moved only one way during the day on Friday. Up and up. Ended higher by 116 points.
The decline was led by Bank Nifty on Thursday and the rise was again on the back of Bank Nifty.
Fortunately this time I have avoided PUTS in banking sector even though I am not very hopeful about this sector. And the worst stocks in the sector like PNB and CANBK are the big gainers. Canara Bank had gone to near Rs. 220 levels in July and in just about three weeks it is near Rs. 290. PNB had made a low of Rs. 71.60 on June 28, 2018 and is now at Rs. 88.20. What has changed?
Nothing except the sentiment. Banks still carry same losses and same NPAs.
We shall surely buy some PUTS in these stocks after some time when the sentiment vanishes and the reality prevails. Right now it is good that we avoided them.
Let us review our positions.
PUT BUYER :
Though not in profit still the PUTS did well yesterday. With NIFTY rising 116 points, the situation could have been really hurting. It still remains manageable and gives hope.
In addition to these we had RELCAPITAL 370 PUT yesterday at Rs. 7.00. It closed at Rs. 7.35.
CALL BUYER :
The fall on Thursday had caused a damage to the positions. Friday brought back the cheer. Though both L&THF and YESBANK came down slightly from the high points of the day, both the CALLS made significant improvement over previous day.
It is good to see some positive results. In addition we had GAIL CALL 400 as a trade yesterday. One of the readers could get it for the low price of the day at Rs. 6.00. But I did not see that price traded. I am considering Rs. 7.00 as the entry price for this trade where most people could have actually bought this Option. The stock closed near the high point of the day and the CALL closed at Rs. 9.00.
This additional profit of Rs. 5334 ( Lot Size 2667 ) would make the above chart look much better.
Summary of 6 days Trades :
PUTS : 5 Right : 2 Wrong : 3
CALLS : 3 Right : 2 Wrong : 1
Let us wait for the new week and see how our trades perform.
Enjoy the weekend.
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.