Another very volatile day.

NIFTY ended lower by 28 points.

This is one part of the story. Another part is that in the early trading it was up by 100 points. Then the news of Indo -Pak Air Force sorties started floating in. There was an immediate reaction by the market and NIFTY moved from the highs to the low. It recovered ground thereafter, became positive for a while and then again gave up slightly. Uncertainty does that to the market. Great profits and greater losses can be made in such situations but it is preferable to be on the sidelines.

This is how the day had unfolded.

Our Trades :

All the commotion did nothing for us. We are looking at a loss this month. Today is the last day and whatever little is left of price is to become worthless by end of day. Out of 11 trades, only 3 have gone right and that too not by much. This is the position.

We saw losses in the beginning of the month, moved to profitable position by the middle of it and then gave away. The new trades in BHEL and LT account for almost entire loss. What is done is done. It is time to move forward and look ahead to March Series.

New Trade for the Day :

Any trade has an equal chance of being right or wrong. On expiry day, a right trade can do wonders by being right. Let us take a chance with VEDL ( Vedanta Limited ) which showed a sharp decline yesterday.

VEDL PUT 165 @ Rs. 1.80- 2.00 has a maximum risk of Rs. 4600 and if it moves down by 2%, it can go to Rs. 4.00-4.50. If not, we know the loss.

With this, we close the February Series which did not really go well. We look for better results in March.

Trade profitably, trade cautiously.

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.