The market opens today in less than one hour time.
Whole of Asian Markets are a sea of red this morning.
This in reaction to trade tariffs imposed by US on China. There is retaliation by China by imposing their own tariffs on US imports. The stock markets have given their immediate verdict with a thumbs down.
Here is what the SGX NIFTY looked like few minutes ago.
NIFTY should open today with a cut of more than 100 points.
Shall we see a sub 10000 NIFTY level today.
Quite likely.
In such a scenario, our SELL SELECTIONS should do very well unless some of the stock becomes the safe choice for buying. It happens sometimes like TATA MOTORS went up yesterday in spite of market being down.
Well, markets will do what they always do.
Let us review our selections and their performance.
BUY SELECTIONS :
We added NTPC to the list yesterday.
It did not do very well but ended positive on a negative day.
We are already out of RELIANCE and KOTAKBANK. TECHM was negative yesterday.
Here are the results for those trades yesterday.
and
We stay slightly positive on the two BUY selections and have already decided the exit from the other two at a much lower price.
I do not think that there will be any positive moves today in view of the global trends.
SELL SELECTIONS :
This is where the money comes in.
The first five:
TATA MOTORS recovered a bit yesterday, otherwise it was more than 10% gain at one stage.
SBIN touched 52 week low yesterday. LUPIN is about 1% away from the 52 week low. MARUTI was not going well for us over past 2 days, fell by 2% yesterday to make this a good trade.
The initial five choices have done fine for us.
Our next choice was IndiaBulls Housing Finance. It stayed firm all day yesterday.
Still, okay trade for us.
Our next selection was BOSCH.
It again made a 52 week low yesterday.
The last one to be added to the list was BHEL.
It has done exceptionally well and in just 3 days has gone down significantly. It is trading at less than 1% above the 52 week low and maybe ready to tank much lower.
At present, the trade is in profit by 6.62%.
So all the 8 SELL SELECTIONS are doing well.
Do we add any other stocks to the list ? :
With a likely gap down opening, we may not get an opportunity at a good price.
But the following 2 stocks would be good choices for going short.
Reliance Capital and Reliance Power.
Both are showing the declining characteristics over the last few sessions.
RPOWER can be considered for selling between Rs. 37-38 range.
RELCAP can be considered for selling in 400-405 range.
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.
Comments
Tarun March 23, 2018 at 12:50 pm
I am the most surprised with TechM. Even when nifty is ~5% down, it stays above the recommended price.
Replyadmin March 23, 2018 at 10:33 pm
A trader’s job is to make a selection through a thought process. It can be very simple or extremely complicated. After the selection is done, you can not do any thing except to control your loss by keeping it to manageable level. it is for the markets to decide whether to give your profit or loss. TechM has also shown some weakness with the trend but could stay above our entry level because of inherent strength which could be identified. We have been more right in identifying identifying weakness in our SELL selections.
ReplyThe point is– Everyone Can Do It Right.
Sha Navas March 23, 2018 at 10:26 pm
Why are you adding new scrips towards the end of current month? Isn’t the idea to take positions in the beginning of a month and close them towards the end of month?
ReplyWhat is the time frame in your mind for these new scrips added?
admin March 23, 2018 at 10:36 pm
Dear Sha Navas,
One should be looking for opportunities. The series is about making selections for trading, the process is a day to day task. Staying in a trade is dependent on how it turns out. There is no time frame in mind. If they keep going right, we move to next month contracts. If they go wrong significantly, we exit.
ReplyI hope it helps.