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Charts & Analysis

Trading updates: How have I fared?

So here goes two huge days. I did reasonably ok and would like to share some of the trades.

As Wednesday opened limit down trading was halted for the day. I decided I would expand stop losses to 20% from peaks, and exit all leveraged positions. When the market opened, I had futures of Axisbank and HDFC bank, both of which opened horribly down. When I squared off, I was down Rs. 60,000(!) and really needed a miracle. Suzlon energy hit my expanded stop loss at 1575 and I squared that one too, giving me a net profit on that trade of around Rs. 200 a share (bought at 1381), about 15% profit in a month.

I managed to buy Jai Corporation, a stock that’s been upper circuiting all this while. In the madness some people sold it too. Another stock I picked up was Mudra Lifestyle – great results and I expect the stock to double in a year. Yes, not really a trading call, but one needs the long movers as well.

As the market started recovering, I sold one of the protective puts I owned – Nifty 5100 for a small profit. I also initiated a new long call option at Nifty 5500, bought at 92 some of which i traded out within the day for a 9K profit.

I then closed the day with two open positions – NIIT Technologies at 359 and Reliance Industries at 2639(both on the futures). NIIT Tech was bought because IT was the only sector that performed well, adn this was the weakest stock in that sector for the day, and I figured it will catch up the next day. Reliance was a pure momentum call for working with results today.

I closed Wednesday with a huge loss, about 9% down.

Thursday was interesting. NIIT Tech opened hugely up, and kept moving upwards. I sold it at 402, giving me a profit of 43 per share = Nearly 25,000 on a lot of 600. (This is for an investment of about 80,000 as margin).

Reliance hovered around 2800 when I set a mental stop loss of 2750, close by to cover a rapid fall. Also my overnight Nifty 5500 calls were hugely profitable so I sold them out at 250 or so. And my earlier purchased protective puts at 5100 were in bad shape (obviously) so I exited some of them.

Then the Nifty started to fall. I first took out Reliance at 2750, gathering a 110 Rs. gain on a lot of 150 – about 16,000 return in one day for a margin of 80,000. To cover any positive impact from results I bought a Reliance 2800 call at Rs. 85 per share. Set the stop loss on that to Rs. 50 (Options need WIDE stop losses)

The Nifty then seemed to settle at 5550 so i thought perhaps it’s best to work with a strong stock, and chose the SBI future at 1800. It immediately retraced to 1780 when I sold and saw Rs. 5,000 vanish just like that!

I now had nothing left on futures, only a few 5100 puts which were increasing in value as the market went lower. All stocks were keeping above their expanded stop losses. Just before close I bought Nifty 5700 calls at Rs. 25 each.

At close of day today I was up over 7% nearly recovering all the losses of Wednesday. I have only two open F&O positions: Nifty 5100 put and Nifty 5700 call. If it swings wildly in any direction, I’ll end up making money.

Stocks wise: Sintex has dropped 10% to 400, Reliance is at 2539, JaiCorp is still heating the upper circuit at 1248 (buy price: 887 and 1189). IGate is hovering at 202, Praj Industries is down to 196 (buy: 228) and Mudra is down about 5% at 80.

Marked to market, I am up 28% on the whole portfolio. The index is up about 19% in te same time, so I’ve done slightly better. Let’s see how the rest of the month goes.

  • suresh says:

    >Deepak, thanks for the update. The post on p-notes is very informative.

    Can you write a post on upper circuit , lower circuit and significance. I would be interested to know why some UC’s price is falling and some LC’s price is raising. Also, please cover how to acquire stocks locked in UC.

    I also have one question.
    Are the sensex circuit triggers works everyday. Or are they enabled on Wednesday anticipating the fall.

    Cheers

  • Madhab says:

    >Hi Deepak,
    What is the story behind “Jai Corp.” ? Is it that great a company, that every one in gung ho about it , and its UC every day? A few days back it was at 15,000 level was there any split ?
    For you, is this is a momentum play ?

    Thanks,
    Madhab