First day of the New Year 2019 was positive for our markets. But there was no let up in the volatility. We saw a 50 point down move before the trend reversed. And the reversal was on the back of financials. Some things never cease to fascinate me about the markets. How come same set of people who brought down the banking stocks in the fist few hours suddenly become so fond of the same stocks in the afternoon that there is something like a buying frenzy. But then who can understand the markets?

A gain of 47.55 points. And this was how it happened.

Down for the most part of the day and then just running away as if people suddenly found lot of money for going on a buying binge.

Fortunately for us TATASTEEL and SUNPHARMA did not follow the up trend of the last one hour. Their behaviour was quite opposite.



Both these stocks closed much lower than their highs of the day. It is not that these PUTS are giving us some money right now, but we can have some hope from the trend. These stocks do not look like going up. Once that is established, then there is time for moving lower.

INFY moved up slightly and CALL 700 is in the green now.

New Trades :

MARUTI fits the criteria of 30 day and 7 day weakness. Everything else is fine but the IV is less than 30. But the stock is known to move well at times. In view of the lower IV, we do not go to far away strikes but stay near.

Current Price is Rs. 7476. We go for PUT 7200 at Rs. 90-100.

Lot Size is 75. Maximum risk in the trade is Rs. 7500. We are looking for a move below 7200 towards 7000.

Let us see how it works out.

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.