Put a frog in boiling water and he will jump out and run.
Surely he will be scalded but probably live.
Put the same frog in normal water and then boil the water.
He will stay in the water and will be boiled alive and die.
He will keep adjusting to the rising temperature till it would be impossible.
Yesterday, the market was like the second part of the story.
It opened higher, went down about 90 points and then the temperature started rising till it boiled at a gain of 188 points. We got cooked in a right royal manner.
MARUTI was a saver. For the second time in last few days, it tested the price of Rs. 6500. Aficionados of the Technical Analysis will call it Double Bottom formation. To me it is nothing. On the day NIFTY was a big gainer, MARUTI ended up losing.
Next time it starts moving down, it should go below 6500. We only wish that it should happen soon enough to be of some benefit to us.
M&M moved both ways finally to our disadvantage. SBIN lost few more points for us as far as PUT 230 is concerned.
Overall the day was not very bad as per the NIFTY trend. We are in the fight.
Trend For The Day :
All the world markets were up yesterday with big gains in the US markets.
So is Asia this morning.
We are in for another ride on the upside for the day.
Pre open trades show NIFTY up by 55 points.
Strange are the ways of the market. Yesterday we had rumors of RBI and Government differences. Financials went down along with other stocks. By afternoon the differences were glossed over and the market went on steroids. The bad stocks of the morning became the stars of the afternoon.
That is trading for all of us. Inexplicable and strange.
We shall not take any new trade today as well.
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
Mash November 1, 2018 at 10:00 am
Hi sir, Is there any chance that market will push back and will go down again or is it like most of the corrections has been done and market is ready for upward rally.To my surprise, I donot know what has change in this week that suddenly all those points we were hearing on liquidity crunch, uncertainty on election etc etc and all the negative has vanished suddenly…
ReplyInzamammul Ahmed November 1, 2018 at 11:59 am
Sir, Tata motors after bad results going up whether this could be an opportunity to buy 170 PE.
Reply