May the festival of lights bring cheer, joy and prosperity to all.
We have one hour of trading today from 5:30 pm to 6:30 pm. There will be pre open trading at 5:15 pm.
This is a tradition to hold this short one hour of trading on this festive day. Not much trading actually happens but cheer is always there. Let us look forward to it and enjoy the holiday today as well as tomorrow. Market is closed on November 08, 2018.
Yesterday the market went nowhere. It opened high, went higher, gave up all the gains, went into negative territory briefly and ended the day with a gain of about 6 points.
Now it is 4 gaining and 4 losing days for the NIFTY since October Expiry. We discussed this yesterday. Gainers were huge ( except yesterday), loser days had very small losses.
Yesterday, SUNTV PUT 560 could be bought for Rs. 9.00. The stock was down for the second consecutive day.
MARUTI too went down a bit. It has to continue the slide for few days to be meaningful to us.
SBIN did not give any benefit to us while going down 3%. It did establish one fact though. The fact is that all the experts talking on TV can talk all they want, market has a way of doing things its own way. Every one was advising a BUY on SBIN, with targets of 315 and above that. SBIN did not touch Rs. 300 even for a second and was traded at Rs. 285.25 at close. All of them had their stop loss hit.
Let us not get smug on others being proved wrong by the market. It has been happening to us as well everyday. That is why our profit/loss record looks like this:
At least 2 out of 5 are showing some positive result. We need better results than that and expect favorable winds over next few days.
Lucky that we decided to give a pass to TITAN CALL 900 yesterday. It lost 1.7%. The CALL too would have turned into a loser.
New Trade :
Among the private sector banks, INDUSINDBK is down 7.53% during the 30 day period while NIFTY is up 1.79%.
Over the last 5 trading days, it moved up from a low of 1333 to high of 1554 and closed yesterday at 1475.45.
I would trust it to make the move towards 1333 again, if there is a mildly negative trend in next few days.
PUT 1400 at Rs. 23.00 looks good. Lot size is 300, the maximum risk is Rs. 6900.
The move can be towards 1554 too if the market decides to go higher. In that case, I lose money. Nothing could be simpler than that.
Once again, wishing all the readers a happy and prosperous Deepavali.
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.