Markets are really strange.

There was fear of trade war between USA and China which supposedly led to the fall yesterday.

Fall was in Indian market only. Hong Kong and China were in the green. Our market had Rupee weakening concerns too as the INR closed at its all time low against the Dollar at Rs. 72.98.

Yesterday, China actually announced the tariffs on US imports worth $ 60 billion. What happened after this?

US markets were up. They chose to ignore the China sanctions. Asia is also up this morning as if trade war is done and dusted.

SGX NIFTY is up about 28 points , so we may expect a positive open for the markets. After that it will be impact of currency and crude to some extent and irrational behavior which generally prevails most of the time.

The purpose of stating all this is to emphasize the fact that it is almost impossible to predict the market moves. The 99 point fall yesterday was no at all anticipated and it actually happened in just last one hour of trading.

After two day fall of 137 and 99 points, we are where we were 4 trading days ago. TV channels would make us believe as if a very big fall has occurred. I do not understand why everyone has short and selective memory.

On September 11, NIFTY had closed at 11287.50. There have been only 4 trading sessions since then. Two days up and two days down to bring us back to same place.

Our Trades :

For the first time this month, all our PUTS did well for the day.

L&TFH, IBULHSGFIN and TATAMOTORS all had significant falls. So did ZEEL.

RELCAPITAL was the new addition to the list and it also obliged by going down a little more than 4%.

We need the momentum to sustain for at least another day.

Here is the status:

RELCAPITAL 390 PUT was bought for Rs. 5.05 and it closed for the day at Rs. 9.90. That is additional Rs. 7275 of notional profit. I call it notional because a profit is profit only when the trade is closed.

As we approach the expiry which is just 6 trading days away ( including today), we shall be closing the trades as they come into the money.

No new trades for today. Let us be careful with the 5 trades we have at present.

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.