Stock Futures - Gap Up Ticks Difficult To Trade

Before Indian stock markets opened today on 8th July 2010, there were strong bullish market sentiments from across the Atlantic Ocean. US markets had closed strongly in positive territory. Bounce in US markets was generated by investor expectations of good corporate earnings. After a long time Dow Jones closed above the 10000 mark with a gain of 274.66 points.
Overnight good tidings in US markets had a salubrious effect on the Asian markets, which were trading in green when Indian markets opened today. As was expected, Indian markets opened strongly in the green and kept surging northwards. It is such situations there is dilemma while entering trade in stocks futures. "Will the stock correct to cover intra-day gap or not?" is a question predominant in mind. Today was one such day.

Be that as it may, I am furnishing details of three stock futures trades which were squared off today as per my recommendations at http://www.stockezy.com/ . Of these three trades, two were long trades and one was a short trade. The point to note here is that even in a strong bullish market you can  earn profit by shorting specific stock futures :-

1. Balrampur Chini July Futures : Bought at 84.75 and covered at 85.5. Lot size = 4000. Long trade.
   Investment = Rs 67000/-.
   Profit = 0.75x4000= Rs 3000/-.
2. Bajaj Hind July Futures : Bought at 117 and covered at 118. Lot size = 2000. Long trade.
   Investment = Rs 47000/-.
   Profit = 1x2000= Rs 2000/-.
3. KS Oils July Futures : Sold at 58 and covered at 57.25. Lot size = 4000. Short trade.
   Investment = Rs 46000/-.
   Profit = 0.75x4000= Rs 3000/-.

Total profit on 08 July 2010 = Rs 8000/- (3000+2000+3000).