After three days of up move, NIFTY took a dive yesterday.
A good 107 points down.
Probably there is more to come. It is wait and watch from now on. With 6 days left to expiry, we are in a spot of trouble.
The fall of 107 points did not do much for us. With the exception of IBULHSGFIN, other stocks moved down narrowly with no appreciable change in the value of PUTS. And there were those which went up like INDUSINDBK and RELINFRA. The move in RELINFRA was quite unexpected as it opened lower and the anticipation was that it will remain lower. On the other hand, the stock moved higher while NIFTY was going down. These things happen and have to be taken with a pinch of salt.
Still, PUT 340 in RELINFRA is with a chance.
We look forward to CIPLA, IBULHSGFIN and TATAMOTORS coming good and making the trades worthwhile. Even IDEA trade can deliver.
US markets ended negative on Tuesday too. Asia is mildly in the red and SGX NIFTY is down 17 points. These indicators can go wrong anytime and every time. Real time trades only tell us the true story and one has to go through the pain to come out good.
With 9 trades already in the bag, I would not go for a new trade today.
If IBULHSGFIN comes down to Rs. 680 levels, I would book profit in PUT 740 and move to PUT 660. This will ensure protecting some profit and staying in the trade with possibility of either making a small profit or a small loss. The decision depends on the market move.
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.