Post Market Summary:
- Today was a day of panic selling.
- In news I saw, the escalation of the fighting on the front lines caused the markets to sharply correct.
- However, if this is the case, the European market may have fallen as well.
- Today’s selling is probably due to massive insituition Fii basket selling.
- Fii has been selling for the eighth day in a row.
- Fii has sold over 5000 crores for the second day in a row.
- The market drops sharply in the last hour, closing near the day’s low.
- For the first time in a month, the Nifty closes below 17,000 points.
- After a trading range of 1,500 points, the Sensex closed 704 points lower at 56,463.
- The Midcap Index is down 2% from its highs, while the Sensex, Nifty, and Nifty Bank are all down over 1%.
- The advance-decline ratio is 2:5 in favour of the decline.
- Rupee finishes weak at 76.51/$, down from 76.26/$ on Monday.
- FII sold for Rs. 5871.69 crore today and DII bought for Rs. 3980.81 crore.
Trades Update 19.04.2022
Today, I exited an Arpil expiry straddle in the last few minutes due to a large drop in the last hour, taking a profit of Rs. 1400.
In addition, I did adjusmant in 38000 May straddle.
Until 2:30 p.m., the Mtm profit was around Rs. 16000, and it is now showing a Mtm loss of Rs 5,386.
However, because the average index closing prices are somewhat higher, I expect the Mtm loss to be adjusted in profit in the morning.
I was also concerned about tomorrow, so I purchased weekly 34500 Put options 2 lot, which will protect me if there is a significant gap down.
Sold BANKNIFTY MAY 38000 STRADDLE on 13-04-2022.
SOLD BANKNIFTY MAY 38000 CE = 1160.00
SOLD BANKNIFTY MAY 38000 PE = 1150.00
I was concerned that the market would open gap down tomorrow, and the straddle would open below the breakeven point. So, in that case, I’ll be losing a lot of money.
As a result, I made adjustments in this trade.
After creating this straddle in 2-4 days, the BankNifty drops 2000 points.
There is always a panic when we create a straddle and the market moves significantly on either side.
Long-term options straddles, on the other hand, have a high breakeven point and plenty of room for adjustment.
Now I’m some relaxed, and this straddle should be in profit in a few days.
Let us see how it goes.
If I find a clear direction, I’ll make some more weekly adjustments tomorrow.
Today it has an MTM loss of Rs. 6,403.
Sold BANKNIFTY MAY 37000 STRADDLE.
SOLD BANKNIFTY MAY 37000 CE = 1230.00
SOLD BANKNIFTY MAY 37000 PE = 1050.00
Today, it has an MTM loss of Rs. 435
Sold BANKNIFTY APRIL 37000 STRADDLE.
SOLD BANKNIFTY APRIL 37000 CE = 638.15
SOLD BANKNIFTY APRIL 37000 PE = 587.25
I exited this trade today and booked profit.
Profit is Rs. 1374
Positional Trades Total MTM Profit/Loss (19-04-2022):
Two positional trades are currently active, with an MTM loss of Rs. 5,386.
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!