After 6 days of positive closing, NIFTY went down very mildly yesterday. It can be called a flat trading day again.

It is another matter that the decline did not help us much. SUNPHARMA continued its down move though not with the same speed as on Monday. The low point was almost same on both days. We need this stock to now go below the previous low of Rs. 435.

RELCAPITAL and TATAMOTORS closed higher in spite of the negative NIFTY trend. All we can do is to wait.

INFY went up very strongly. This trade was taken with the expectation that strength in INR will continue for few more days. That did not happen and INFY has gone into an up move of its own.

TITAN gave up all the gains of previous day and some more.

This is the status of the trades:

We stay in the positive zone thanks mainly to SUNPHARMA.

Likely Trend:

US Markets closed with big losses yesterday. DJIA and NASDAQ were both down by more than 3%,

Asia is trading negative but not like US. We are seeing some disconnect from the Global Markets in India for last few months. But such a big down move is likely to have some impact. At the time of writing SGX NIFTY is down 47 points. Let us see how the day unfolds.

New Trades:

For us it has become a cliche now— What an IDEA ?

Most of the time, buying a PUT in IDEA has worked. And we have a habit of being lazy and trying to make profit with minimum of effort.

IDEA fits the criteria of 30 day and 7 day weakness.

Problem arises in selecting a Strike Price. It is trading at near Rs. 35.00. There are Strikes available at 35, 34, 33, 32, 31 and 30. Out of these 35 and 30 Strike have the required volumes. Other strikes have small volumes.

For once we shall make a departure from our 100 contracts policy and go for PUT 32 at Rs. 0.80-0.90.

Maximum risk is Rs. 6300 as the lot size is 7000.

This would be our sixth trade in four days and I believe we should not be going any faster than this.

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.