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.