Friday, March 16, 2018 was a disaster day for the Indian Markets.
The international trends were not very weak ( they were weak ) but our markets tanked in a big way.
Now the experts are running for cover and becoming bearish. Whether they are right or wrong again is best left to the markets. A trader’s job is to trade in any market condition. Trend is to be identified early and utilized to the maximum extent possible.
I had written on Friday morning that our SELL SELECTIONS had given up lot of profit even while the market was falling. Then the above 165 point fall happened.
This fall has hurt the BUY SELECTIONS ( as it should) but added more profit to the SELL side.
After lot of deliberations I had added BHEL to the SELL list. It went against the trend for the good part of the day but finally succumbed to the relentless selling and ended down.
Review Of Positions :
BUY SELECTIONS :
Out of the first two BUY selections, TECHM is doing ok whereas RELIANCE has gone wrong. It recovered part of the losses before close but still it is a bad loss.
KOTAKBANK added to the BUY selections a few days back is doing badly.
So we have 1 right and 2 wrong trades in the BUY list.
SELL SELECTIONS :
As NIFTY is going down, naturally SELL selections should do well. The key is by how much.
Let us see the positions.
The first list:
The first list of TATAMOTORS, LUOIN, BAJAJAUTO, SBIN and MARUTI is doing very well.
Out of the 5 stocks, TATAMOTORS and LUPIN have touched 52 week low in this period and are still looking weak.
We had added IndiaBulls Housing Finance a day later and it is also doing well.
BOSCH is one stock which did not go right for us. But it has not gone much wrong either. We stay in the trade.
Last one in the list was BHEL listed on March 16 morning. The recommended price was the closing price of March 15 and it was possible to get the trade.
As mentioned earlier, this trade also worked out.
It ended the day almost 1% lower.
To Summarize :
Trading opportunities are not very difficult to spot. If you go back to the first article in the series, you will know how to make these selections.
What is more important is to stay with your winning trades. You have to let the profitable trades run. More trades will not give more profit, the right trades will.
At present, we have 8 out of 11 trades right so we stay with them.
As of now, we do not add anything to the list.
Let the markets decide whether to reward or penalize us for being right or wrong.