The tussle between the bulls and bears of the market goes on.
It would be fun if we were watching from the sidelines. But the traders are like the grass on which this tussle is staged. No matter who wins, the trader is likely to be trampled.
Sensex made all time high on July 18, 2018. NIFTY is within shouting distance of its own all time high. But do we see jubilation in the market. Except on TV channels there is no talk of market highs. The reason for that is that people are not invested in NIFTY. They are in different stocks. And most of the stocks are losers in the last one year period.
Over last 52 weeks NIFTY is up by 11.5%.
Out of 150 stocks listed under NIFTY 50, NIFTY NEXT 50 and NIFTY MIDCAP 50 we find that 85 are down. This is the situation over 12 month period. If we see the results Year To date, there is carnage in few stocks.
Well, things are not well in the market and nobody is talking about them.
Good for us. We can buy our PUTS peacefully and expect them to do well.
Here is NIFTY for yesterday.
Not a big fall. People call it a flat market. No issue with that.
There had been days when NIFTY went up but our PUTS did well. On this day, NIFTY went down but most of our PUTS did not do well.
PNB, BHARTI, SBIN, TATAMOTORS did not do well.
ICICIBANK PUT 260 did well marginally but is still not in the money.
UPL went down to make another 52 week low. Some of the readers might have cashed the PUT 560 but since I did not see any comments regarding this trade , probably it was not done. It gave away most of the gains towards the end as stock price rose higher.
It is not about the number of trades. It is that one trade which makes the difference and matters. That one trade was HINDALCO 210 PUT.
The stock made a new 52 week low at Rs. 194.50. The PUT traded at a high of Rs. 16.95.
Many readers have posted about their exit from this trade in the comments. This one trade more than made up for the lack of performance from others.
The new trade suggested was LUPIN. This also made a very quick down move in the last hour of trade and went to a low of Rs. 787.15. Recovered equally swiftly to trade at 799.00 at the end. We see that volatility is present in this stock and there is a good chance that the trade can work out. During trading PUT 780 touched a high of Rs. 12.30.
This is the summary for the day.
We are looking at a very decent profit. With 5 days to go and weekend approaching let us trade with alertness. Be watchful and take suitable exits if the trades show sign of reversal.
We got our profits in the last 2 days of June Expiry. We know two days can make or break a trade. Aim to stay in profit but be watchful.
No new trades today.
We stay with the present collection.
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.
Comments
Nathan July 20, 2018 at 12:39 pm
Pramod ji,
ReplyIs BHEL still in your watch list ?
Seems one more opportunity may be available within this series.
Entering the trade with either 65 or 67.50 PUT on Monday may be worth a risk, I think.
Or shall we wait for AUG series for a better risk reward possibility ?
admin July 20, 2018 at 6:08 pm
Dear Nathan,
Surely it is in my radar. The problem is that it is too volatile for comfort at this stage with 4 days left to expiry. We shall catch it again sometime soon.
Cheers.
ReplyRajbir Singh July 20, 2018 at 1:03 pm
Sir, for next series you can evaluate jetairways, it is downtrend for quite long.
Replyadmin July 20, 2018 at 6:07 pm
It was once my favorite. We shall see for next month. Already it has moved down from the high of Rs. 883.45 ( January 05, 2018 ) to the low of Rs. 296.20 ( July 19, 2018 ). Way to go ?
Cheers.
ReplyNiloy Roy July 20, 2018 at 3:24 pm
Dear Sir,
Do you follow any particular website for the analysis/news or explore nseindia ? While analysing to identify stocks, do you also look at all the major Nifty indices like metals, midcap and find top gainers/losers in each sector?
Replyadmin July 20, 2018 at 6:04 pm
Dear Niloy,
I like to keep it simple. Simplicity works. Looking at NIFTY is enough. Remember the story in Mahabharat. Arjuna’s focus was the sparrow’s eye only. Tree, its branches, leaves were not clouding his vision. We have to strive to become like that.
Cheers.
ReplyAshwani July 20, 2018 at 4:01 pm
Hello Pramod ji,
Do you think Tata Motors is a loss now? I was not able to sell it today.
What are your views on next series?
Replyadmin July 20, 2018 at 6:01 pm
Dear Ashwani,
Your question is not clear. If you are not able to sell today, it can be done next week. Still there are 4 days left to expiry.
Views about next expiry will depend on the market moves over next week.
Cheers.
ReplyAshwani July 20, 2018 at 6:14 pm
Thanks.
I meant that I might have to book loss in Tata Motors. But we still have 4 days to go. Lets see how it plans out.
Thanks for your reply.
Reply