Wednesday, March 30, 2016

SBI Swings to Victory - Has Vijay Mallya Helped?

In today's trading session you have come out victorious after enduring tough conditions and some scary moments.

In last post I had assured you that there was no cause to worry about one position of SBI Mar Futures bought at 196. I had also asked you to square this March contract at 197/198. 

Well today SBI Mar Futures reached a day high of 198.7

By squaring off one lot SBI Mar Futures you have realized a profit of Rs 4000/- since it was bought at 196 and sold at 198 and the lot size is 2000.
That is not all. Icing on the cake is position of SBI Apr Futures we had picked up as recommended in this post. We bought this position at 190 on 28 Mar 2016.

Today SBI Apr Futures closed at 198.7 and this means that this position is presently offering you an unrealized profit of (198.7-190 = 8.7) X 2000 = Rs 17,400/-

I think we need to lock in such profit at the earliest. So now my recommendation is that as markets open tomorrow we should exit this position within first 30 mins of trade.

I wonder what gave fillip to banking sector in today's session. Could it be promise of Vijay Mallya to return Rs 4000 crores to banks by Sep 2016? Yes I do wonder!