Post Market Summary:
- Nifty falls below 16,700, Sensex falls roughly 1300 points as a result of the RBI rate hike; media, real estate, and consumer durables suffer the most.
- The Nifty dropped over 500 points intraday to its lowest level since March 15th.
- Nifty Smallcap falls more than 2%, the biggest since April 25 and the lowest since March 9.
- The two indices closed at 16,677.60 and 55,669.03, respectively.
- In the broader market, the Nifty midcap and small cap indices tumbled by approximately 2% as the India Volatility Index (VIX) reached 22 on Wednesday’s close.
- Sectorally, Nifty Media, Realty, and Consumer Durables fell the most, with the indices falling by more than 3%.
- Furthermore, all sectors finished in the red, with auto, banking, and financial services stocks down by more than 2%.
- The rupee finishes strong at 76.41/$, compared to the previous closing of 76.52/$.
- The 10-year bond yield has risen to 7.4 percent as a result of the RBI’s rate move.
- FII sold for Rs. 3288.18 crore today and DII bought for Rs. 1338 crore.
Trades Update 04.05.2022
The unexpected rate hike by the RBI triggered a wave of selling.
Although, in the morning, I noticed a building of shorts in the index.
Some individuals were selling BankNifty aggressively.
This suggests that these people knew about the Rate hike.
Even though it had been a difficult day, I was able to make some profit.
Hedged positions have helped me to survive in today’s unpredictable market.
I booked a profit of Rs. 11,854 by closing my three positions today.
Only one position BankNifty 12th May 36500 Straddle is currently open, with an MTM loss of Rs. 9,914.
In this straddle, I’ve taken an adjustment trade.
So I made a profit of Rs. 11,854 today, and I have 1 open position with an MTM loss of Rs. 9,914.
Today learning part is:- Hedged positions are always beneficial. It saves us from unexpected move/events.
Also if you can adjust your positions then you can come out with some profit in this unpredictable market.
Hope you enjoyed the artilce.
Disclaimer: This article and trades shared here are for educational purposes only and should not be considered as financial advice or a recommendation of any kind. I am not advising any trading or investment ideas. Therefore, I, don't bear any responsibility for any trading losses you might incur as a result of using this learning/data/indicators/charting platform. One is free to choose whether or not to follow the learnings, and create a position in the market at his/her own risk. Index market trading involves considerable risk and can result from the loss of your invested capital. Always consult a Sebi Registered financial advisor and do your research before trading or investing in any market!