Table of Contents
Post Market Summary:
- The market closes near the day’s low, with financials being a major drag.
- The Nifty is down 221 points at 17,172.
- The Sensex fell 714 points to 57,197.
- The Nifty Bank index falls 771 points to 36,044.
- The Nifty Midcap Index fell 287 points to 30,315 at the close.
- 42 of the 50 Nifty stocks finish in the red, with an advanced-decline ratio of 1:2.
- The market has had a volatile week of trading, with three days of losses and two days of gains.
- The Nifty closes the week with a loss of nearly 2%.
- This week, the Bank Nifty is down nearly 4%, the IT sector is down 5.5 percent, and the auto sector is up significantly.
- FII sold for Rs. 2461.72crore today and DII bought for Rs. 1602.35 crore.
Trades Update 22.04.2022
In the morning, I bought 35000 PE and 37600 CE expiring on May 5th.
This was purchased to hedge a 36300 5th May expiry straddle.
Taking hedged positions is always a good way to protect yourself from a black swan event.
I believe that in order to make consistent profits in the market, one must have an edge and hedge.
Trade 1:
Sold BANKNIFTY MAY 37000 STRADDLE on 18-04-2022.
SOLD BANKNIFTY MAY 37000 CE = 1230.00
SOLD BANKNIFTY MAY 37000 PE = 1050.00
Today, it has an MTM profit of Rs. 7,541
Trade 2:
Sold BANKNIFTY 5th May 36300 STRADDLE on 20-04-2022.
SOLD BANKNIFTY 5th May 36300 CE = 781.00
SOLD BANKNIFTY 5th May 36300 PE = 600.00
Today, I purchased 35000 PE and 37600 CE expiring on May 5th to hedge a 36300 straddle.
BUY BANKNIFTY 5th MAY 37600 CE = 180.35
BUY BANKNIFTY 5th MAY 35000 PE = 165.00
My risk is now defined by purchasing CE and PE at breakeven points.
Markets on both sides are extremely volatile, so having a hedged position in these markets is essential.
Hedged positions are also beneficial to one’s mental health.
Today, it has an MTM profit of Rs. 4,218
Positional Trades Total MTM Profit/Loss (22-04-2022):
Two positional trades are currently active with MTM profit of Rs. 11,760.
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!
