Another day of the continued up trend.
Once again, NIFTY crosses 11000. We have been there earlier. Nothing new. Trades will go on as always. Some beaten down stocks will recover 20-30%, there will be new recommendations of buying by experts and few days/weeks/months later, it will be back to current levels for these stocks. Only the timing is uncertain, not the outcome.
Remember, CANBANK was above Rs. 440 in February 2015 , BHEL was near Rs. 270 and ONGC was Rs. 350 in those days. RCOM traded at Rs. 75. NIFTY was near 8400 levels.
Now 4 years later, NIFTY rules at 11053 and these stocks are at Rs. 252, Rs. 69, Rs. 155 and Rs. 6.00 respectively. For BHEL and ONGC adjusted price would be Rs. 92 and Rs. 207 respectively in view of the split but still a far cry from 4 years ago. NIFTY going up did nothing for these stocks.
Well, that was in the past and maybe the future for some of our PUT buying stocks.
HEROMOTOCORP and HINDPETRO both moved slightly lower yesterday but without giving much relief to our trades. On the contrary, YESBANK CALL 260 bought at Rs. 5.30 went wrong as soon as it was bought. All the while NIFTY was gaining, YESBANK decided to stay put and not move up. It is early days yet and we wait.
For the day, we do not take any fresh trades. Let us be watchful for the 3 trades we are already in.
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.
Comments
srinivas bale March 7, 2019 at 5:42 pm
Sir ji.. along with our Heromotoco, Hindpetro trades i am holding 4 lots of 10,800 PE. no worry about our PUTS. but any chance recovery of index puts. plz give me suggetion with your experience.
ReplyBikrant Sarmah March 8, 2019 at 2:30 am
Depends on which expiry you are holding. Most likely NIFTY is going to reverse from current levels and tomorrow we may see fall on NIFTY. If your are holding 28March’19 expiry then no worries else hope for the best.
ReplySandeep March 7, 2019 at 6:54 pm
Hi Sir,
Your views on VEDL… Taking 165 PE is a favourable trade? Please suggest…
Regards
Reply