NIFTY moved up another 5 points yesterday. The little climb was not smooth. It went lower before recovering and then gave up the gains in the last 30 minutes.

There were only 17 stocks which gained while 32 were losers, 1 remaining unchanged. It appears that the upward momentum has lost steam now and we may see a slight correction. Again, this thought maybe wrong. One is never sure with the markets.

We had HEROMOTOCO losing 1.48% yesterday but that did not add much value to PUT 2500. It still has a long way to go before we are able to salvage this trade. Same is the case with HINDPETRO which shows no signs of weakness. The one showing the weakness has been YESBANK where we bought a CALL.  A real double whammy for us.

Such are the ways of the market. Inscrutable and unpredictable.

Who said making money in the market was easy. It is simple ( as mentioned many times) but never easy.

A trader has to keep looking for new trades all the time, enter the trade when appropriate and then see it going one way or the other.

New Trade For the Day :

We tried our hands with SUNPHARMA on few occasions. It gave good profits at times and took away the entire premium on few occasions. Pharma Stocks come with their own baggage of volatility.

This time we go for a stock which we have not traded for a long while.

BIOCON is down a little over 6% in the 30 day period. During the last 7 day period ( 4 trading days ), it has moved down from Rs. 632.90 to Rs. 611.55. It fits the bill for buying a PUT.

PUT 580 @ Rs. 8.00-9.00 can be a good trade. Lot Size is 900 and Maximum Risk is Rs. 8100.

This would be our fourth trade of the month.

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.