Another 56 point fall in NIFTY on Wednesday on the back of 106 points on previous day.

Should have been great for us like manna from heaven.

Reality is different from appearances and brutal. As far as perceptions are concerned, anyone holding 9 PUTS should have made some money if not a great sum of money with 160 point fall in NIFTY over two days.

We got zilch for our trades and in fact lost out heavily. NIFTY kept on going lower but our selections decided either to stay up or go down mildly with no effect on PUT values. If at all there was some effect, it was to make the price lower. This is happening when time to expiry is just 5 days including today.

This gives rise to concerns about the likely losses. Losses are not likely, they are already taken when we entered the trade. It is time to see whether some of the trades are good for any returns.

IBULHSGFIN still looks good. RELINFRA needs to turn around. TATAMOTORS is hovering around the same levels for too long and it is time it did something for us.

IDEA went wrong terribly but I believe most of the readers had got out at higher levels when it had moved up to Rs. 4.00 not many days ago.

M&M did move down a bit but it is still too far away for comfort, but stranger things have happened in the past.

So we carry on with the belief that the market will do well for us. This belief and our selection process has done well for us over past 6 months and I find no reason to make changes. If there is to be a loss at the month, we just bear with it and look forward to next month. All is not over yet. There are five days of trading left.

In this kind of situation, we are not taking more trades.

Let us watch and trade cautiously.

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.