Thank God Its Friday.

After the beating received on previous few days, Friday came to soothe our nerves. NIFTY which had been going up everyday, took a breather.

Before we talk about our trades in the current month let us look at the prices of some of our favorite stocks in which we had identified weakness much earlier than the market gurus on various channels.

We had picked up RELCAPITAL, TATAMOTORS, RELINFRA, BHARTIAIRTEL, HINDPETRO etc at much higher levels in the months of May, June, July of last year. We had made a very good profit in IBULHSGFIN PUT 1160 in September Expiry. On Friday, this stock made a low of Rs. 605.

I am mentioning this fact to emphasize that our simple method of stock selection works and works wonderfully. There is absolutely no need to look at the charts, graphs, breakouts and all the other bullshit.

We have not seen any profit this month. But the trades are just 1-6 days old. We are never in a hurry. Let the price move to where we want it. That takes some time.

On Thursday our trades were in a loss of more than Rs. 31000.

On Friday, the loss was reduced to Rs. 10595.

It is a big relief and fortunately at the right time.

New Trades for the Day:

L&T ( Larsen & Toubro ) could not sustain at higher levels and moved down significantly on Friday.

For the 30 day period it is down 8.87%. In the 7 day period too it has lost about Rs. 40. For us it is a clear sign to go for a PUT trade.

Current price is Rs. 1259. We can go around 5% lower and buy PUT 1200.

LT PUT 1200 @ Rs. 13-15 is my choice for a trade. Lot Size s 375. Maximum Risk — Rs. 5625.


Another of our old favorites. It never stops going down. In August 2015, PUT 290 gave a profit.  In February 2019, we look forward to making money from  PUT 60.

It meets our criteria of entering the trade.

BHEL PUT 60 @ Rs. 1.20-1.30 would be my choice. Lot size 7500 Max Risk   Rs. 9750.

If these trades are taken, we will be in 7 contracts.

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.