Trading Stock Futures for the day
- Thread starter Gandhar.
- Start date
RBI Policy meet:
A ahead of RBI policy there was global sell off in Emerging markets, all sector stocks were tanked and gave a break down. Nifty lost 130 points on Monday and closed at many weeks low point. On Tuesday RBI policy, market was expecting no rate cut but RBI increased rate.
Usually around 10:50 AM, market moves up a bit and try to trap bulls or move down and try to trap bears. Same happened today, market moved up way higher but does not sustain. This is the 1st indication to be alert.
After confirming the trend in Bank Nifty, checked PNB chart and could see the day’s high was 564 and stock trading at 563. Expecting market to go down as the over all trend is already down, I initiated 1 lot short. around 10:58, it started declining, proved that my trade was right. Quickly shorted 1 more lot. Around 11:01 AM, market started falling rapidly, in 3 minutes it went down to 535. Exited 2 lots when I realized buying support around 535.
Lesson: I should have waited 5 more minutes and if it doesn’t resume downtrend, I should have initiated BUY order.
Profit
A ahead of RBI policy there was global sell off in Emerging markets, all sector stocks were tanked and gave a break down. Nifty lost 130 points on Monday and closed at many weeks low point. On Tuesday RBI policy, market was expecting no rate cut but RBI increased rate.
Usually around 10:50 AM, market moves up a bit and try to trap bulls or move down and try to trap bears. Same happened today, market moved up way higher but does not sustain. This is the 1st indication to be alert.
After confirming the trend in Bank Nifty, checked PNB chart and could see the day’s high was 564 and stock trading at 563. Expecting market to go down as the over all trend is already down, I initiated 1 lot short. around 10:58, it started declining, proved that my trade was right. Quickly shorted 1 more lot. Around 11:01 AM, market started falling rapidly, in 3 minutes it went down to 535. Exited 2 lots when I realized buying support around 535.
Lesson: I should have waited 5 more minutes and if it doesn’t resume downtrend, I should have initiated BUY order.
Profit
IndusInd bank has huge resistance at 400, it had already fallen from 440 to 400 levels after the Q3 result. As 400 was previous support, it bounced back to 435 from 400. Formed double top, again started declining and fallen till 392 and closed at 392 yesterday.
Today opened gap up and unable to sustain above 400 levels. Around 10.55 AM,it broke days low of 397, so initiated short at 397 with days high as stop loss of 402. Worked well. Booom!! Stock fallen to 380, I exited at 382.
Profit:
Today opened gap up and unable to sustain above 400 levels. Around 10.55 AM,it broke days low of 397, so initiated short at 397 with days high as stop loss of 402. Worked well. Booom!! Stock fallen to 380, I exited at 382.
Profit:
TATA Power: It faced huge resistance at 92. Tried breaking the resistance twice and then started declining and went down to 72 in a month.
Entered long in TATA Power as there was not much continues declines in 5 mins chart and also whenever stock comes near 72, there was huge buying comes up. Went long at 72.70 with 71.9 (futures) as stop loss. It has very strong support at 70.
It is a positional trade. Will continue to hold it with 5 mins support level as trailing stop loss.
Entered long in TATA Power as there was not much continues declines in 5 mins chart and also whenever stock comes near 72, there was huge buying comes up. Went long at 72.70 with 71.9 (futures) as stop loss. It has very strong support at 70.
It is a positional trade. Will continue to hold it with 5 mins support level as trailing stop loss.
Entered DLF after closing the banking stocks. As DLF has already fallen much, I was not comfortable after entering the trade. However I shorted at 140.40 and in few minutes closed it at 140.20. Closed DLF with minimal profit of 400 Rs.
Lesson: Always wait for a perfect trade, do not enter a trade in a hurry and keep hoping that its gonna be a perfect trade.
Lesson: Always wait for a perfect trade, do not enter a trade in a hurry and keep hoping that its gonna be a perfect trade.
TATA STEEL:
Bought the stock when it made day high of 359, thinking the market to move higher and as TATA STEEL already tanked yesterday I thought It would retrace today. So went long around 9:35 itself, After I went long it started declining, though I kept days low (352) as Stop Loss, I dint have patience. I assumed my trade entry was wrong and exited at 356. But the stock continued its up move and did not hit the stop loss as well.
If I had held on to it, I would have been in profit now.
Lesson: Patience Pays in Long Trades :thumb:
Bought the stock when it made day high of 359, thinking the market to move higher and as TATA STEEL already tanked yesterday I thought It would retrace today. So went long around 9:35 itself, After I went long it started declining, though I kept days low (352) as Stop Loss, I dint have patience. I assumed my trade entry was wrong and exited at 356. But the stock continued its up move and did not hit the stop loss as well.
If I had held on to it, I would have been in profit now.
Lesson: Patience Pays in Long Trades :thumb:
Arvind : I was expecting Mid Caps to fall further and as Arvind has moved up from 125 to 160 levels, I expected a correction till 130 levels. Around 11, I entered short at 140 and it moved down till 138.6 but later it bounced back to my cost price. Again even though I kept day’s high as stop loss, I dint follow that. As it could give me more than 8000 loss if my stop loss is hit, so assumed my trade was wrong and exited.
But Stock continued to drift down lower. But I did not want to reenter again.
But Stock continued to drift down lower. But I did not want to reenter again.
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