We are into the last day of trading for March 2019 Expiry Contracts.
Yesterday, NIFTY was down slightly. On the face of it, the fall was just 38 points.
It did not come in a straightforward manner. At one stage NIFTY was up 60 points. It stayed within a range up to 1:30 pm and then took a dive. There was some recovery towards close.
Yesterday I had written that it is becoming very difficult to make a guess about the market direction. The day proved it.
HEROMOTOCO made a new 52 week low again at Rs. 2535 but for us it is too little too late. We need the stock to be below 2500 to give us anything. Or we can cash it out for Rs. 5-10 depending on how the trend is. I will stay with the trade till the end. Salvaging Rs. 1000-1400 is not going to make a significant change in profit/loss equation.
YESBANK was the hero yesterday. Even when NIFTY was falling sharply, this stock stayed positive. I hope it continues the strong performance today as well.
MARUTI has done well so far for us. Another 2 % fall from here would be welcome.
The villain of the day for us was RELIANCE. After a gain of more than 3% previous day and touching Rs. 1377 yesterday, it just kept going down.
Other stocks anyway were not doing much for us.
With all these moves yesterday, our loss reduced by some Rs. 13000 . Not a happy position but better than what it was a day earlier.
What to do today ? :
Trading on expiry day is always difficult. Trades can go right or wrong in the blink of an eye. We have to be very alert and careful. Be watchful for the profitable trades i.e. YESBANK and MARUTI.
BIOCON too would need some proper exit if it makes some sudden down move. So would HEROMOTOCO. Other trades are already too far gone to matter much.
New Trade for the day :
Traders are an incorrigible lot. Even when the chips are down they need to play a hand or two.
We do not know which way the market will go today. There can be a strong downside or equally strong up move. I would take these two trades today:
LUPIN PUT 720 @ Rs. 2.50- 3.00. This stock made a new 52 week low yesterday at Rs. 722.30 and a down move of 1.5-2% can give good returns. Lot Size is 700, maximum loss is capped at Rs. 2100.
BHARTIARTL PUT 320 @ Rs. 2.00- 2.40 would be my second choice of a trade for expiry day. Lot Size 1700, maximum loss Rs. 4080.
Fasten your seat belts and be ready for the roller coaster ride which begins at 9:15 am.
Trade cautiously, trade profitably.
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.