NIFTY ended flat for the day.
It would have ended up negative if not brilliantly supported by the 5% up move in TCS.
But technically the day ended positive even though by just 1 point.
NIFTY is still up by more than 350 points since June Expiry Day.
We should not be expecting very good results being in 8 PUT trades.
Some of them did very well today.
UPL was our star selection in June Expiry and today it was a great savior for our trades. From a high of Rs. 636 in the early trades, it smoothly moved down to Rs. 598.05 ( low of the day and new 52 week low ) before ending the day at Rs. 602.70. We shall be grateful to the market for more such trades.
RELCAPITAL and BHARTIAIRTEL did well to come back into profit once again.
BHEL, TATAMOTORS, PNB, SBIN and ICICIBANK all moved lower today and there was some recovery from the losing positions in all these trades.
We are not yet out of the woods. We are nowhere near profit. But the movement of the day has provided some relief. This relief may continue tomorrow or be mercilessly snatched away by another smart upward move in the market.
Our job is to identify the weak and strong stocks, select a suitable strike , enter the trade at an appropriate price and then let the market do the right thing for us.
On July 09 we had a notional loss of Rs. 22528 on trades valued at Rs. 84735. ( 8 PUTS ).
On July 10, the loss mounted to Rs. 42265, almost half the capital deployed in the trades.
Just one day brought it back to a normal range.
Have a look at the chart showing comparison between July 10 and 11.
We are still in negative territory by Rs. 6248.
But NIFTY has moved higher and higher since the trades were taken and really this is just a minor loss considering the earlier situation.
Likely Market Scenario :
People have their charts to tell them what NIFTY is likely to do today. They make a lot of studies to find that market does whatever it wants.
I look at what is happening, what the US markets did, what is happening with SGX NIFTY and find that market will do whatever it wants.
It is in our nature to look out for some clues. Nothing wrong with that as long as we are prepared for the fact that everything can go wrong.
A day ago, US markets were up but Asia was also down on US tariffs concerns. NIFTY ended up flat unmindful of rest of Asia.
Last night we had Dow Jones down significantly, but as of 8:20 am, SGX NIFTY is showing no signs of following the US trend. Asian markets also are up. Tariffs are no longer an issue. That is my point. Giving reasons for the market behavior is an exercise in futility.
We shall know only during the trading hours what is the actual trend.
New Trades :
Still no additional trades. Let us take a chance with the same 8 trades that these will do well.
Trade cautiously, trade profitably.
Keep posting your comments and sharing your selections.
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.
Sandeep Kharat July 12, 2018 at 11:53 am
Now 11140 seems obvious..Reply
Sandeep July 12, 2018 at 4:04 pm
I agree with you Venkat… The stock selection and the discipline are the utmost important things for the options trading… For the past three weeks I have been reading Pramod Sir’s writings and amazed by the way he picks the stocks and also sticks with his trades even when the market goes against his decision, having faith in the selection…Reply
admin July 13, 2018 at 8:33 am
NIFTY ended the day at 11023. It may make a new high soon like Sensex did today. But does it matter? NIFTY was at 11027 on January 31. Same level as yesterday. NIFTY remaining same , 31 stocks are losers and 19 are gainers in this period. New high does not mean anything if the position is so skewed in favor of losing stocks.Reply
venkat July 12, 2018 at 1:53 pm
Hi Sir, Inspite of loss/profit there is something that you stick on which is discipline. Its rare to see traders to stick on to their edge. This yield good margins in the long run. Hats off to you.Reply
VENkAT July 12, 2018 at 2:26 pm
We are in good shape even though NIFTY has moved up so much … This shows that if Market turns negative we will have huge advantage.. This gives hope and Energy to hold these PUTS..Reply
Prince Nahata July 12, 2018 at 2:58 pm
I have entered JISLJALEQS July 80 PE @₹1.30 .The stock had touched 52 week low of 74.25 on 29 June .Reply
Last month also I was planning to enter when stock was @95 @₹2 premium for strike 90 but was not ready to bet 18000/- as P&L was already in notional loss of above ₹50000/-.(Though it’s other matter that finally losses lessened to just 7000/- odd at June expiry thanks to Pramod Sir’s selection which had once touched some 70000/- odd)
But at expiry it ended at ₹79.30
Even Pramod Sir had approved then to take a position but I could not overcome my fear of losing extra ₹18000/- and hence did not take any new position.
So this time I have taken a position and I cross my fingers and hope for best
Niloy July 12, 2018 at 3:13 pm
Should we book profits in UPL and enter a lower PE ?Reply
Sandeep July 12, 2018 at 3:25 pm
Happy to see UPL & Vedanta in deep red at the bottom of the list, even though Nifty was nearing all time high… Thank you for the fabulous trades…Reply
Anup July 13, 2018 at 1:36 am
Do you actually trade on your selection?
admin July 13, 2018 at 7:22 am
That is what the selections are meant for. Mostly I trade these options. Sometimes I may miss a trade due to being engaged with something else or having few other trades not mentioned here.Reply
The main point is that if a trade is going well, I really wait with it like I tell my readers to do.
Without actually trading and going through the process of watching the trades going bad, you can not express the real emotions.