Finally the March month contracts came to conclusion.
It was a month when NIFTY went below 10000 level , then recovered by 200 points and gave away some of that gain yesterday to close at 10113.
We made a number of selections. Some went wrong, many were right and the right ones were right by a good margin. That is what trading is all about. The losses should be kept small, let the profits run.
Let us review the BUY SELECTIONS first:
TECHM ended higher by 4.79% while NIFTY declined by 4.2% in the same period.
RELIANCE did not oblige and ended down by 7.28%. But we had already exited when the price was Rs. 890.
Our other selection was KOTAKBANK:
This trade too had gone wrong and we had gone out of it when the price was Rs. 1045.
NTPC trade also did not do well.
A very minor loss and we stay with the trade for April contracts. But a loss of Rs. 0.45 per share is the result for March.
The final outcome for BUY SELECTIONS:
Right –1 Wrong –3.
In a falling market our BUY did not work.
SELL SELECTIONS :
This is where the bread and butter is earned. We had identified weakness for deciding the SELL selections. Combined with the general market weakness, it became more pronounced and some of the stocks gave excellent results.
The first five:
TATAMOTORS and LUPIN are more than bread and butter. They are the cherry on top of a delicious cake.
BAJAAUTO proved us very right and so did SBIN, though it has recovered from the low points of 234-235.
Only MARUTI did not give good profit. But one can not win them all.
Our next choice was Indiabulls Housing Finance.
This stock had gone down to 1188 levels only to recover and deny us a big profit. But we take whatever the market gives.
Still, it is profitable trade which was denied to us by BOSCH.
A loss of 1% is acceptable and we take it.
Next to be added to the list was BHEL.
It did very well for us.
We do not grudge an almost 7% gain. This more than makes up for the wrong trade in BOSCH.
Two days before expiry we added Hindustan Petroleum, Reliance Capital and Reliance Power to the SELL list.
The results are mixed:
This stock made a very strong reversal from the 52 week low made on Monday, March 26, 2018. This trade was planned for April contracts so we stay with the trade; of course it is with a loss.
We got one right and one wrong out of these two. The trade which went right is right by more than 5%, the wrong one by half that amount.
Result of SELL SELECTIONS :
Total 11 Wrong 3 Right 8
It has been a fascinating and successful exercise.
We have been successful in identifying the strength and weakness and the reward is left to the market which are quite handsome.
The series will be continued for April contracts with another title.
Keep reading and keep commenting.
It is about the readers and their success and failures.
Share your thoughts through comments.
Chirag Patel March 29, 2018 at 1:28 pm
I am observing Reliance capital since few days and found that stock is in down trend in weekly and daily time frame…..Although it did not went into our favour but can we consider it for April series.Reply
admin March 29, 2018 at 5:37 pm
This is the purpose of the exercise. You find that Reliance Capital can be considered a good shorting opportunity for April series. Add to that the courage to go with your conviction and you have a trade setup. At worst it can go wrong. When right, wait it out like we did with TATAMOTORS and LUPIN in March series.
Keep doing the analysis and you are sure to come up with a few good winners.