After two days of going nowhere NIFTY made an upward move today. Pharma was the leading sector for the second consecutive day and was joined by the Banking Sector today.
KPIT was a big mover today. Moved up by about 3.5% but as our CALL 320 is still an OTM call, there was not much to gain from this move.
INDUSINDBK CALL 1980 came to life today. It is still an Out of Money option but is coming good now.
BHARTIAIRTEL is just wasting time for us by alternately going up or down. This is what Time Decay is all about. We need a sharp down move and need it soon.
M&M did nothing.
I have been terribly wrong in few of the selections, notably in SBIN and PNB.
SBIN was a contrarian selection which has turned out to be wrong. This is what was written when the selection was made.
SBIN : This is a contrarian trade. It moved up by 15% during May Expiry. The entire move came after the results which were bad. It has become quite common for banking stocks to go up after bad results. Sanity prevails after some time. I believe that time could be this month. PUT 250 at Rs. 3.00 is my choice for this stock.
Well, the maximum loss is Rs. 9000 and we are nearly approaching that figure. I would not mind that loss if other trades had gone right like they did in the first few days. This is a trader’s life. Keep trying and keep the faith.
VEDL is moving lower but too slow for us. Let us expect some volatility in our favour.
This is how the position looks as of June 12, 2018:
A correction is made in the chart. We are trading INDUSINDBK CALL 1980. In previous posts it was mentioned as CALL 2000.
Add further loss of 34 points in Bank Nifty and the picture is complete.
Not a good picture.
New Trade :
One does not stop looking for opportunities when the going is tough. We have to keep the belief and keep on doing our part of the work. After that it is for the markets.
UPL is the stock selected. In a strong NIFTY trend, it is turning weak. It has turned around from Rs. 680 a few days ago. A second downward move may take it below the 52 week low of Rs. 672.50.
PUT 660 at Rs. 4.80 is the likely trade. It will come In The Money if the stock loses around 5% quickly. The aim is to get good profit with small outlay of money.
We have kept a lot of patience. Let us start seeing some success.
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.