The market decline continues.
NIFTY lost another 100 points on Monday ( 19-03-2018 ) to close below 10100 level. As I recall, this is the lowest close in year 2018.
We do not know where the NIFTY will go from here. There may be a small rebound like there was yesterday which got sold into. Guessing games are left to the experts. Let us stick to the straight and narrow path of traders.
Before looking at fresh trading opportunities, let us review the earlier selections.
With NIFTY going down by 235 points in two days, it would be too much to expect the BUY selections to be profitable.
Only TECHM is holding safe. RELIANCE and KOTAKBANK have both declined significantly.
SELL SELECTIONS :
It is normal for SELL selections to do well when the markets go down.
Well, it is not so normal, otherwise people will always be making money by shorting. Only the right selection can give good rewards.
Let us see what happened with our selections.
The first 5 are here:
TATAMOTORS and SBIN have done very well. BAJAJAUTO is also down by about 6%.
Only MARUTI is a poor performer as it gained about 1% yesterday when the market was falling. But the loss in MARUTI was compensated by the fall in BAJAJAUTO.
Our next SELL was Indiabulls Housing Finance.
After being steady over last 2-3 sessions, it cracked yesterday and is proving to be a good selection.
Our next choice for SELL was BOSCH.
It was not doing well for us but we kept waiting with the trade. Yesterday, the stock followed the general market trend and made a fresh 52 week low thus proving our selection as a right choice.
Not highly profitable, but we take whatever the market gives.
The last one to be added to the list was BHEL.
It did not do very well on Friday but like anticipated it declined by more than 2% yesterday to make this also a right selection.
More than 4% decline in 2 trading sessions is a good enough gain for a trader.
We still stay at a score of 8-3.
All the SELL are right and all the BUYS are wrong, though TECHM can be stated to be a no profit no loss case so far.
One is tempted to add new choices.
But the old trade has got as much chance to be right as the new one would have. Let us stay with the current selections.
It is for the readers to work out their own selections.
There was a comment by Mr. Sha Navas in one of the posts as to whether HINDALCO could be added.
Yes, HINDALCO was a very good SELL selection on the day the comment was posted.
I want the readers to keep doing the selection exercise, whether they ate trading their selections is another issue.
As I write, SGX NIFTY is showing a 33 point cut.
US markets were negative by more than 1% overnight. It looks there is no respite from the down move at least today.
What to do for the losing trades ?:
One should be getting out of the losing trades early.
We have waited with RELIANCE and KOTAKBANK long enough but both could not survive the downtrend.
We get out of KOTAKBANK if it falls below 1045 ( Futures )
We also get out of RELIANCE if it falls below 890 ( Futures )
Taking the loss hurts and being wrong hurts the ego as well. But trading is not about the ego. It is about making money when you are right and losing money when you are wrong.
Let us see what the market has in store for us today.
Keep working, 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.