We started December 2016 expiry with extra caution after November hiccups and GOOD NEWS is that we are on track and BAD NEWS is that progress is little slow but rest assured it is only for the time being.
During December month, we have had taken 5 trading decisions for INDICES segment,
~ Doing of Rollover of BUY Positions in DEC at 8060 levels on 23rd November.
~ On November Expiry Day we created Hedge by Short Selling in JAN contract at 8040 levels
~ We broke hedge by exiting from DEC Long Positions at 8265 on 30th November. And given BANKNIFTY 50% Short Sell at 18720 levels with 8300 Spot Index closing Basis for all open positions.
~ In next 2 days i.e. on 2nd Dec, itself we were getting near about 170pts running profit in Short Sell positions. But, we could not book profits in NIFTY however we did closed BankNIFTY with near about 200pts profit per lot basis
~ Thereafter market started trading in tight range with one day rise one day fall.
~ We were holding NIFTY Short Sell positions (JAN Contract) until 8th Dec with no change
~ Then on Friday, 9th DEC we again got opportunity to do average in NIFTY and to create Fresh Short Sell positions in BankNIFTY at 8275 DEC Future and 18720 DEC Futures levels respectively with 8300 Spot Closing Basis Stop loss for all open positions.
Come Monday and we were getting near about 100pts Profit in NIFTY and 350pts from BankNIFTY on per lot closing basis. However, again here Market found support at unexpected & hidden levels.
Point to be noted: On 30th November and 9th December, on both these days majorities of analyst were in BUY conditions except your advisor.
Finally, on 13th December we had to close Positions because Prices again were giving closing above 8200 with rising pattern of support, First Support 8056 and Second 8077 whereas Resistance remains at 8300 with no Change.
Therefore, we decided to exit from Short Sell positions at 8265 JAN and 18480 level DEC Future and advised to remain in 100% cash unless gets fresh opportunity to trade in INDICES again.
Therefore, in above Nifty trade initiated on 23-24 November, following results was obtained
a. DEC Entry 8060 Exit 8265 = 205pts Profit
b. JAN Entry 8040 Exit 8265 = 225pts Loss
NET Result 20pts loss on 2 lots Basis for NIFTY trades
In the same period BankNIFTY 2 traders were generated and provided entry with,
a. DEC Entry 18720 Exit 18530 = 190pts Profit
b. DEC Entry 18720 Exit 18480-85 = 235pts Profit
Just before RBI policy we had generated 1 more BankNIFTY Short Sell Call which was also closed yesterday at 18480 levels.
All were Short Sell mode only and counting profit loss on 1 lot basis only. Those clients who missed are advised not to miss any call in future.
Since, November Expiry has re-affirmed the fact that our Stop Loss is one the strongest levels we have. But somehow we could not followed it strictly that time ourselves. So, you are requested to adhere given SL at all the time.
Our maximum risk is 30-50pts in NIFTY per lot basis and minimum profit 200pts; otherwise pre-cautionary exit that to in minor profits, only.