Yesterday ( July 18 ) Sensex made a new lifetime high.
NIFTY too moved up in the early trades. Went up to 11078 and then moved down. We read the views of experts and listen to them everyday as to where the market is headed. Market can and does make a fool of all of us all the time.
Well, talk is talk and facts are facts. Talk does not make money so we can very well ignore all of it. Including what I talk here.
Let us look at the facts.
NIFTY is again below 11000. So what ?
It is still 391 points higher than where it was on June Expiry. For our PUTS to come good we wanted NIFTY to move down. That has not happened.
Fortunately our stocks belonged to a group which was waiting to go down no matter what NIFTY did. Their weakness really worked wonders for us so far.
This is what NIFTY did during the day.
After 71 points gain on Tuesday, it was partial relief for us. The trades that had gone wrong on Tuesday did better yesterday.
BHARTI AIRTEL : It did not collapse 5-6% in a day as I had wished for. But continuous decline over few days led to making 52 week lows on daily basis. On Monday it was Rs. 344.80, on Tuesday the low was Rs. 340 and yesterday the low was Rs. 331 though it recovered from this level. PUT 360 is now deep in the money and we need to nurse this trade carefully.
TATAMOTORS : Did almost same thing as Bharti Airtel . Made the latest 52 week low of Rs. 247.30 and then moved up to Rs. 251.85. Another day, another low. Possible ? Let us see. We are happy if that happens.
UPL : It did what we wanted. Opened higher, made a move to go down, we could buy our PUT 560 at our price ( Rs. 10.00 ) and then it went up to Rs. 551.40. It was within touching distance of the 52 week low of Rs. 548.85 but recovered. The trade was right.
HINDALCO, ICICIBANK, PNB did better than yesterday. SBIN went lower initially but closed higher. This is one option which closed lower than yesterday. We can not win them all.
This is the chart of Options Positions at the end of day.
A good looking picture again.
Every day is different. A trader can not sit on the past glory. Trading is about the present and future. Past is done and dusted. One bad market move and one has to run for cover. Let us stay alert like we were in BHEL and RELCAPITAL . By the way those PUTS also recovered.
Readers Comments :
It is nice to know that the readers are doing good trades. It is further nice that they are sharing that information. Also they are taking trades which are not mentioned here. that means their own selections and analysis is working. Please keep sharing.
New Trades :
Pharma Sector did extremely well in the beginning of the month. Now it is giving away the gains.
LUPIN is apparently week. PUT 780 opened at Rs. 3.95 , made a high of Rs. 10.50 and closed almost in the middle at Rs. 6.20.
Stock price closed at Rs. 811.
The 780 strike is just 3.5% away and a good down move can bring this Option in the money soon. We have got 6 days for the trade to work out.
Risk in the trade is only about Rs. 4340.
If the stock opens higher it may be possible to get it for Rs. 5.00 -6.00.
Trade cautiously, trade profitably. Protect your profits and stay alert for sudden adverse moves.
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.