We are on the half way mark today with regard to the number of trading days in this month. So far we have not even caught a whiff of profits. Every trade had gone wrong as soon as it was taken. Markets can be like that at times. It is at such times that keeping your belief is important.

Yesterday was again volatile but in a very narrow range. And finally ended up with a gain of around 40 points.

But surprisingly, NIFTY had 20 gainers and 30 losers for the day. That gives some indication that the up move may now be capped for a while.

We talked about YESBANK not doing anything in spite of NIFTY moving up everyday. Yesterday, this stock woke up and made a smart up move. At one stage it touched Rs. 247.60 before closing at Rs. 244.25.

We need a continuation of the trend and need it now.

Few days back we had entered a trade in BIOCON PUT 580. Like all other trades that had gone wrong from the same day. Yesterday, it bucked the overall market trend and moved lower by 2.93%.

The move reduced the loss in this option.

Other trades stayed more or less in the same position.

Thanks to the movement in these two stocks, the loss was reduced by about Rs. 9000 as compared to previous day. That gives us some breathing space and a little comfort.

Today SGX NIFTY is indicating a flat start to the market. Let us hope that our stocks specially YESBANK, BIOCON and DRREDDY continue in the way they did yesterday.

New Trade for the Day :

In the current up move, IT sector is not participating. Stocks like INFY, TCS, HCLTECH have actually lost ground over the 30 day period.

Among these stocks, INFY has exhibited more weakness than the others. It is weak over last 7 day period as well. We look for a continuation of the trend and go for INFY PUT 680 @ Rs. 4.50-4.80 based on the closing price for this option yesterday.

Lot Size is 1200, maximum risk is capped at Rs. 5760.

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.