Three trades to start the month

Last month was good.
We followed all trading and money management rules.

Finally NIFTY is in downtrend.
FIIs started selling heavily in cash. Some of the banks are doing very well though. Next trigger will be election results.

We already sold 2 lots of NIFTY 8000 CALLs around 220-230.
One can still be negative on NIFTY but should be very careful.

Trades for Monday, or perhaps for next couple of days could be.

1. Sell NIFTY 8000 CALLs 2 lots ie 150 quantity.
2. Sell Reliance 900 PUT around 6.50, 1 lot, but prepare to exit the trade if loss is more than Rs. 4000/- here. Normally Reliance would move in market direction. After long time I am noticing that they are not in random.
3. Buy KTK Bank 135 CALL around Rs. 3/-

Manage trades such that total month should not result in loss more than Rs. 30,000/-. Keep booking small profits due to election result month.

Disclaimer: This blog does not take any responsibility of your profit/loss

Those who can not stay away from trading they can buy DISHTV PUT of strike price 100 at 0.20/-.

NIFTY is not willing to bow down. Today it halted on lower channel support. Tomorrow 8200 level is important to watch.If it goes below 8200-8180 band then only floodgate would open for downside otherwise uptrend would continue.
FOMC meeting is being held on 27/ 28 October and coupled by expiry date, big volatility could be expected on the last day.
It is better to stay away.
Be very light on CALL/PUT sell positions. Market is looking for an opportunity to blast on positive side.
FIIs are buying, historically especially October and many times November are good months for the market.

For investors, 8450-8500 is very critical level for NIFTY. If it failed to cross this layer then it then in 2016, downfall till 6640 can not be excluded. Keep accumulating good stocks for long term investment.

Those who can not stay away from trading they can buy DISHTV PUT for strike price 100 at 0.20/-.

Disclaimer: This blog does not take any responsibility of your profit/loss.  

Lottery trade: If your profit for this month permits then buy ITC 355 PUT between 3-4.

Almost all 4 trading weeks did not support us in terms of market direction. You would have noticed we were always against the major NIFTY trend. The trend was up and we were hoping NIFTY to correct!
We were against FIIs.
But still it was just enough to make profit. It is beauty of option trading in strategies.

Yesterday recommendation was sell NIFTY 7800 CALLs and Buy ANDHRABANK CALL: We are holding the strategy as it is still showing overall profit.

NIFTY is very predictable in last four trading sessions. Starts with upper band of channel based on global cues, does not sustain major resistance around 8340, goes down and then recovers a bit. Today there was not much recovery though. But as long as NIFTY is trading above above 8215 uptrend continues. Maybe it will cross upper limit tomorrow. For tomorrow 8190 is lower channel support.

Lottery trade: If your profit for this month permits then buy ITC 355 PUT between 3-4.

Disclaimer: This blog does not take any responsibility of your profit/loss.

The strategy for Monday 26 October 2015

Update:
Reliance gave good profit booking opportunity on Friday.

Everyday NIFTY is honoring upper line of channel. It has done it in eight times in past 12 trading sessions.  This might be indicating that NIFTY is looking forward to slightly good news to cross 8350-8370 band. It again might touch this band on Monday. Global markets closed positive on Monday. The lower line of channel is around 8190.

We can not control market but can control us. FIIs are buying continuously. There must be something which we don't know or unable to anticipate. BN is in very narrow range. If NIFTY has to go up BN must participate.

So strategy for Monday 26 October could be,
Sell 4 lots of NIFTY 7800 CALLs around 500-550, and buy 1 lot of Andhrabank CALL of strike price 67.5 between 1.50-2.00.
One could hold the strategy if in profit or loss is below Rs. 5000/-

I am fully aware that there is very low (or zero!) possibility that NIFTY will go near or below 7800 under present circumstances till expiration, but selling 7800 CALLs will credit the account by Rs. 50,000/- and I found this idea lucrative. Also there is about Rs. 25/- premium in this contract and this is not bad too!

Disclaimer: This blog does not take any responsibility of your profit/loss.

Risk takers can sell Reliance future with SL 979

Surprisingly NIFTY is consolidating. It is trading near resistance line and showing resilience, which is very noticeable.
ECB also hold rate today, positive for market punters who are searching for cues to take market up. Languishing global markets during the day also surged after ECB announcement and our NIFTY should not do any different tomorrow morning.
But still there is merit in holding bear position till NIFTY crosses 8375 in SPOT.

No new trades for ordinary traders.
Hold bear spread position.
Book profit in LT strategy, of not booked earlier.

For risk takers and if profit gained this month permits then sell Reliance future with SL 979 (in Future)

Disclaimer: This blog does not take any responsibility of your profit/loss.

Sell LT 1600 CALL and buy LT 1550 PUT at market price.

NIFTY is in up-move clearly. It is consolidating in narrow range. It could blast if it crosses 8360. Technically it is forming higher high for past 11 days excepting one day and this is very bullish sign. FIIs are buying continuously and DIIs are selling. This is another signature of bulls. Most of the key markets are in green. 

Some negatives:

Future is at discount.

Drought 

FED

Low volumes

So as long as NIFTY is not crossing 8360 let us go with bearish possibility.

Hold NIFTY bear spread strategy.

New Trade

Sell LT 1600 CALL and buy LT 1550 PUT at market price. Book loss if total loss in strategy is Rs. 5000/-

Disclaimer: This blog does not take any responsibility of your profit/loss

There is high likelihood NIFTY might correct very soon

FIIs are buying.
NIFTY has conclusively closed above 8250 on EOD basis.
FIIs are buying for last consecutive 8 sessions in cash segment. Global markets are supporting NIFTY. Even now (19 October 9 PM) SGX NIFTY is in green, DOW is in green. If this remains so, there is no doubt that NIFTY will cross 8300.
This triggers reason for exiting from all bull positions.
We hold bearspread position of NIFTY.

But there is high likelihood NIFTY might correct very soon.
Reasons are:

1. Volumes are not supporting 
2. Locally things are not great.
3. Rate cut is digested by market and BN is not supporting NIFTY.
4. Today, it could be just aftermath of Reliance results.
5. Rate hike by FED will again could come on surface. 

So just be in existing brearspread trade in NIFTY. Those could not enter earlier could do so early trading hours tomorrow. No new trades.

Disclaimer: This blog does not take any responsibility of your profit/loss.
          

Buy 8200 NIFTY PUT around 50-60 and sell 8200 NIFTY PUT of 8000 strike price around 18-22

Update:
We closed all our earlier positions during early trade hours on Friday.
Total profit was more than 2% per month or 24% pa.

New trade:
NIFTY has formed negative divergence on daily chart.Or hidden negative divergence in many NIFTY stocks such as TATAMOTORS, ICICIBANK.

NIFTY might correct from here.
Bear- spread strategy in NIFTY:

Buy 8200 NIFTY PUT around 50-60 and sell 8200 NIFTY PUT of 8000 strike price around 18-22. One should do trading with 4 lots ie 100 quantity.

Maximum loss could be near 3600/- and profit potential is more than Rs. 16000/-
Very good risk reward ratio.

Risk takers could think of selling Future contracts of ICICIBANK and TATAMOTORS for day trading. SL should be day high or previous day high for future contracts.

Disclaimer: This blog does not take any responsibility of your profit/loss.

Only update. No new trades

1. DishTV: booked profit around Rs. 5000/-
2. BN 18000 CALL sell: Profit booking. Rs. 5000/-
3. TCS: Loss 4000/- , holding
4. Southbank: Loss about Rs. 5600/- . Holding
5. NIFTY strategy 8200 PUT and 7600 CALL: Overall descent profit. We booked profit in 8200 PUT and holding 7600 CALL,
6. Buy WIPRO PUT and Sell 8200 CALL: Till today in profit around 5-6 thousand. Holding
7. DLF: Booked 4000/- profit 
8. Bank of Baroda: Sell 170 PUT between 4.50-5.00 and Bank of India : Sell two lots of 145 CALLS between 4.50-5.00.:-- Overall profit. We have not entered into this trade.But one should book profit tomorrow morning.  
9. Buy 140 PUT of BANKINDIA around 4-5/-:- Presently loss around Rs. 1500/-

No new trades.

Disclaimer: This blog does not take any responsibility of your profit/loss

buy 140 PUT of BANKINDIA around 4-5/-

NIFTY is still in uptrend, till the time it closes below 8050 for decisive downtrend.
BN was good trade today and one could have booked Rs. 5000/-profit in quick time. Those who missed to do so today, tomorrow morning would be another opportunity.

NIFTY respected 8250 level, but technically still in uptrend. Watch out for 8250-8300 level very carefully.

Update:

DishTV: booked profit around Rs. 5000/-
BN 18000 CALL sell: Profit booking. Rs. 5000/-

TCS: Same status.  Presently around Rs. 2000/- loss. Results are good. Look for opportunity tomorrow, based on results to book profit, otherwise one can hold till expiry. Rupee is weakening and TCS might cross 2750 before expiration.

Southbank:
Loss about Rs. 5600/- or could be more depending upon buying rate. One can exit or preferably hold till October 19 and expect miracle in quarterly result.

NIFTY strategy 8200 PUT and 7600 CALL: Overall profit. We booked profit in 8200 PUT and holding 7600 CALL,

Buy WIPRO PUT and Sell 8200 CALL: Till today in profit around 5-6 thousand. Holding

INFY: One could have booked profit today. We have not taken this trade.

DLF: Profit booked in single trade,

New Strategy
Bank of Baroda: Sell 170 PUT between 4.50-5.00 and
Bank of India : Sell two lots of 145 CALLS between 4.50-5.00.

Total premium collected will be around 20000/-
SL: Rs. 5000/-

And those who want to keep trade simple (or do not want to invest in margin money, like us!) just buy 140 PUT of BANKINDIA around 4-5/-

Disclaimer: This blog does not take any responsibility of your profit/loss

Sell 4 lots of Bank NIFTY CALLs strike price 18000 around 200-225. SL Rs. 5000/-

NIFTY respected 8250 level, but technically still in uptrend. Good macro data will push NIFTY again in northward direction tomorrow. Watch out for 8250-8300 level.

Update:

DishTV: booked profit around Rs. 5000/-

TCS: Same status. In fact gone down. Presently around Rs. 2000/- loss. Hold

Southbank:
Loss about Rs. 5600/- or could be more depending upon buying rate. One can exit or preferably hold till October 19 and expect miracle in quarterly result.

NIFTY strategy 8200 PUT and 7600 CALL: Overall profit. We booked profit in 8200 PUT and holding 7600 CALL,

Buy WIPRO PUT and Sell 8200 CALL: Till today in profit around 3-4 thousand. Holding

INFY: One could hyave booked profit today. We have not taken this trade.

DLF: Profit booked in single trade,

New trade:
Sell 4 lots of Bank NIFTY CALLs strike price 18000 around 200-225. SL Rs. 5000/-

Disclaimer: This blog does not take any responsibility of your profit/loss

No new trades to start the week.

NIFTY is going up. Practically there is no particular reason to reach new heights everyday. Weak monsoon, nothing happened in Parliament session but rate cut booster and US FED decision not to hike rate enthused markets last two weeks. FIIs also started buying in past couple of days.  If macro data is good next week NIFTY will move quickly towards 8500. As a trader if NIFTY crosses 8250-8260 on EOD basis, it is better to exit all bear trades. While doing so if loss for the month is more than 25 K then stop trading for the month.

Here is summary of our trades:

DishTV: booked profit around Rs. 5000/-

TCS: It had shown good profit of Rs. 80-100 but just for 5 minutes. We missed to book profit in those five early minutes in market trade during one of the day last week. Now contract is heading towards loss, maximum loss could be Rs. 4500, recommendation hold. Maybe good INFY results will again glitter our eyes.

Southbank:
Loss about Rs. 5600/- or could be more depending upon buying rate. One can exit or preferably hold till October 19 and expect miracle in quarterly result.

NIFTY strategy 8200 PUT and 7600 CALL: Overall marginal loss, but one can book profit in 8200 PUT. It will be trading at around Rs. 70-80, if NIFTY moves 100 points from here.

Buy WIPRO PUT and Sell 8200 CALL: Till today no loss/no profit.

INFY: No loss, no profit. Book profit immediately after results or exit the trade at marginal loss.

DLF: Profit in single trade, Book profit in bull spread strategy.

Since there are 5-6 active trades, no new trade should be entered as per our trading rule.

Disclaimer: This blog does not take any responsibility of your profit/loss

INFOSYS

INFY results are on Monday 12 October.
Bull spread could be very nice strategy.
Buy 1140 CALL at 44-45 and sell 1200 PUT around 25.
Maximum loss could be 5000/- and maximum profit potential could be Rs. 10000/- . Very good risk reward ratio and hence one should not miss this opportunity!

Disclaimer: This blog does not take any responsibility of your profit/loss

NIFTY and WIPRO

Sell 2 lots of 8200 NIFTY CALLs, collect around Rs. 7400-7500 as premium
and Buy WIPRO 580 PUT around 15-17.
Please exit the strategy if combined loss is more than Rs. 5000/-


Disclaimer: This blog does not take any responsibility of your profit/loss 

Sell 8400 CALLs around 40/-

NIFTY might pause for some time.
Sell 8400 CALLs around 40/-
Risk taker can sell 8000 CALL around 250/-

Hold other strategies recommended earlier.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update

NIFTY is heading towards 8250-8300 based on global cues.


1.) We already booked profit in DISHTV.

2.) NIFTY strategy 8200 PUT and 7600 CALL:

Hold. It is in overall profit.

3.) TCS

Hold. Trading at descent marginal profit.

4) Southbank:

If stock goes below 22.10 in cash then it is better to book the loss. But kindly consider 22.10 on EOD basis or around 3.25 PM tomorrow and then decide. If SL is hit we will exit and then change the trade. Or hold the trade till 18 October, maybe result will surprise in strong positive direction.
4a) One option is to sell 1400 PUT of LT, which could credit about Rs. 4000/- in trading account. Or sell NIFTY 7900 PUTs 2 lots and 8300 CALLs two lots to recover the premium. 

5)Sell NIFTY 7800 CALL:

 If NIFTY goes below 7900 tomorrow then one can enter in to this trade.

6.) DLF:

Hold the strategy.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and adjustments in trades

NIFTY is in uptrend.
It has resistance around 8034 in cash and 8060 in future. One can sell NIFTY CALLs around that level.

Before we enter in other trades here is the update of our old trades:
1.) We already booked profit in DISHTV.

2.) NIFTY strategy 8200 PUT and 7600 CALL:

Hold. It is in overall profit.

3.) TCS

Hold. Trading at descent marginal profit.

4) Southbank:

If stock goes below 22.10 in cash then it is better to book the loss. But kindly consider 22.10 on EOD basis or around 3.25 PM tomorrow and then decide. If SL is hit we will exit and then change the trade.
4a) One option is to sell 1400 PUT of LT, which could credit about Rs. 4000/- in trading account. 

5)Sell NIFTY 7800 CALL:

 If NIFTY goes below 7870 tomorrow then one can enter in to this trade.

6.) DLF:

Hold the strategy.

Disclaimer: This blog does not take any responsibility of your profit/loss