Yesterday was volatile.
NIFTY was down near 70 points at one stage. Recovered almost all of it and then went down by 49 points in the end. Weighted average close made it down by 38 points. Nothing could be judged from these moves. Banks and Metal stocks had fallen to the low points of the day and then turned positive.
NIFTY will keep on doing all this.
Our selections were based on Strength and Weakness.
Let us see how they performed.
HINDUNILVR was the big disappointment. It had started moving down after making a new 52 week high on Wednesday. It stayed weak all day yesterday too.
M&M was just there doing nothing. Went up at some point and then came down as if it was waiting for such a move.
Among SELL selections, BHEL was a good performer falling more than 2%.
Had we traded Futures, we shall be looking at these results:
2 Selections 1 Right 1 Wrong
4 Selections 2 Right ( Very slightly ) and 2 Wrong.
3 Right Trades and 3 Wrong with a net loss figure is the present status.
Nothing has yet happened to change our selections or to get out of these.
Trading Options :
This is the result as of close on May 03:
This indicates a better result.
It has to do more with the date of entry and the correct Options Pricing than any other theory. Let us just be thankful to the market for favoring us for a little while.
We stay in the trades.
New Selection :
Traders are an impatient breed. They look for more action. They get out of a successful trade to get into another trade. This new trade has as much chance of succeeding or failing as the earlier trade but anyway we do it.
But looking for new opportunities should not be stopped.
UPL Limited ( UPL ) is exhibiting all the signs of a weak stock currently.
This stock has been down (-) 6.18% in the last 30 day period while NIFTY has gone up by 4.58%.
Between April 20, 2018 to May 03, 2018 it has come down from Rs. 765 to Rs. 707.90.
Weakness is continued.
We can go for UPL PUT 680 for a price of around Rs. 9.00. ( let us say from Rs. 9-10 range ).
All the best for today’s trading.
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
Madan Mohan May 4, 2018 at 1:54 pm
Dear Pramod Kumar, Kindly look into the chart of Reliance Naval and Engineering Ltd. Looks interesting. Since January 2018 the trend is directional. Kindly give your valuable comments. I entered into at Strike Price of 15 @ Put buy at Re. 0.80
ReplyMadan Mohan May 4, 2018 at 2:08 pm
I also entered into Shriram Transport Fin, Strike 1700 CE @ Rs. 18
Reply