For the second day running, NIFTY fell by 150 points.

Two trading days this week, 300 points gone. What lies ahead?

I wish I knew.

We are into 6 trades now, all of them PUTS. Yesterday all these stocks were negative and the PUTS gained some value. The best performer so far has been IBULHSGFIN. It is to be seen whether it continues with the downward momentum. It is about 5% above it’s 52 week low of rs. 1081. Let us see if it goes there.

HINDPETRO went up unexpectedly during the day and then came down to make the latest 52 week low at Rs. 243.25. 

As Crude Oil Price has risen yesterday in the evening session by more than 2%, we expect this stock to move down nicely today. The move below 240 should happen soon. But markets do thing in their own manner and we should not be surprised if there is a slight recovery today or even a big recovery.

Other PUTS also did well for the day including the latest addition to the list — ZEEL. For more than two hours Rs. 4.80 was the highest price for PUT 450. Then it fell all the way to Rs. 3.60 after we bought it for Rs. 4.60. This Option touched a high of Rs. 8.25 and closed the day at Rs. 7.50.

Here is how the position looks now :

Great relief to look at.

Let us not get complacent. It is seen in the past how profit turns into loss and how loss becomes profit within the blink of an eye. We shall be watchful while expecting that things will go our way.

I would not suggest any new trades today. Market is closed tomorrow due to Ganesh Chaturthi festival. There may be short covering at the end of day if market is negative during the day. Or people may shed their long positions at the end of day in view of the holiday tomorrow. Well, the above two sentences contradict each other and do not make any sense.

That is what the experts on Business Channels do everyday all the time without knowing that they are not making sense. Probably they know but nonsense sells and they are in the business of selling it. Whatever way market decides to go, it will do it without bothering whether we want it or not. So let us not waste our energy and time on something which we can not control.

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.