Today Indian Markets closed flat, and so did SBI. Although SBI closed a trifle in the negative territory, it still is on course to target of 202. So do not panic.
I am asking you not to panic because with global markets in some kind of uncertainty, you might find SBI touch 190 level in intra-day trade. But just don't bother. In fact if that does happen it will be an opportunity to pick up one lot of SBI April Futures.
I am asking you to pick up one lot of SBI April Futures near 190 because expiry of March Futures will take place on 31 Mar 2016. In case SBI does not fall down to 190 level then just sit tight and book profit at 202 in one lot of SBI Mar Futures that you are holding.
The other scenario is if SBI opens on Monday with a gap up and closes near 202. Then be sure that SBI is going places. Then we may even see SBI trade at 220 on expiry day.
HAPPY HOLI !
Wednesday, March 23, 2016
Tuesday, March 22, 2016
SBI Still Swinging Up - Hold For Good Gains
In my yesterday's Post I had recommended you to buy SBI March Futures at the opening price available at market opening. I believe you would have bought at 196 or thereabouts.
If you have bought at 196, then you would be sitting on some unrealized profit. Today SBI March Futures closed at 197.65. One lot of SBI March Futures containing 2000 shares would have costed you about Rs 80,000/-
So your unrealized profit in today's trade from one lot of SBI would be (197.65-196= 1.65)X2000 = Rs 3300/-. Keep holding your position till given target of 202, which was mentioned in yesterday's post.
Keep enjoying the swing in SBI March Futures!
If you have bought at 196, then you would be sitting on some unrealized profit. Today SBI March Futures closed at 197.65. One lot of SBI March Futures containing 2000 shares would have costed you about Rs 80,000/-
So your unrealized profit in today's trade from one lot of SBI would be (197.65-196= 1.65)X2000 = Rs 3300/-. Keep holding your position till given target of 202, which was mentioned in yesterday's post.
Keep enjoying the swing in SBI March Futures!
Monday, March 21, 2016
Swing in Place - Did We Miss SBI Move Today?
In my pre-market opening post today, I had indicated that SBI is ready for further gains. But while giving a buy price to re-enter SBI Mar Futures, I became extra cautious. I wanted an entry at 184.5/185.5. That was not to be!
SBI did not breach 192 on the lower side in today's trade. So I have to accept that we missed a wonderful opportunity to profit, even after predicting the move correctly. It happens when you are ultra cautious and want to enter trade at day's low.
Well be that as it may, the important question that begs an answer is - what now? I would suggest that tomorrow also go long in SBI Mar Futures for a target of 202. Swing is visibly in operation, so just go ahead and buy SBI Mar Futures at opening price that you get.
SBI did not breach 192 on the lower side in today's trade. So I have to accept that we missed a wonderful opportunity to profit, even after predicting the move correctly. It happens when you are ultra cautious and want to enter trade at day's low.
Well be that as it may, the important question that begs an answer is - what now? I would suggest that tomorrow also go long in SBI Mar Futures for a target of 202. Swing is visibly in operation, so just go ahead and buy SBI Mar Futures at opening price that you get.
SBI Looks Good for Further Gains - Buy on Dip
Banking pack is looking good to go further north. Leader of the pack is surely SBI. As I had mentioned in my earlier post that SBI may reach 200. Check it out here in the last paragraph.
But it is important that you exercise some caution. It will be prudent to buy at dip. Some cooling in prices will make this fresh entry a very compelling buy.
So look for entering SBI March Futures at 184.5/185.5. This will ensure that even if market turns negative, you will certainly get a profitable exit when you enter at this conservative price.
The other stock which looks appealing to buy, from swing point of view, is Ultracemco. This stock closed at 3119 in Mar Futures and seems ready to go beyond 3150. You can consider buying Ultracemco Mar Futures at 3100 for target of 3155.
But it is important that you exercise some caution. It will be prudent to buy at dip. Some cooling in prices will make this fresh entry a very compelling buy.
So look for entering SBI March Futures at 184.5/185.5. This will ensure that even if market turns negative, you will certainly get a profitable exit when you enter at this conservative price.
The other stock which looks appealing to buy, from swing point of view, is Ultracemco. This stock closed at 3119 in Mar Futures and seems ready to go beyond 3150. You can consider buying Ultracemco Mar Futures at 3100 for target of 3155.
Saturday, March 19, 2016
Target Achieved in SBI - Time to Assess Profit
Remember I told you last Tuesday to buy SBI Mar Futures at 184/185 in this post. In this post I had mentioned that SBI was the right candidate for swing trading.. I had given the target as 190.
Yesterday, I had revised the target to 189.5. Check it here. Frankly speaking I had revised the target down because in yesterday's trade SBI reached a high of 189.7 and then dropped like a ton of bricks to day low of 184.5, which was a bit unnerving. I did not want a repeat of what happened yesterday and hence gave a conservative revised target.
Now lets analyze as to what happened to SBI in today's trade. SBI Mar Futures opened at 186.5, made a day low of 185.7 and then went on to make day high of 191.4, finally closing at 190.8. If you had closed your position at 189.5 as recommended yesterday, you still would have made a good profit in three days.
Profit Calculation
Bought at 184.5 , Sold at 189.5
Lot size : 2000 shares
Profit = (189.5 - 184.5 = 5) X 2000 = Rs 10000/-
This profit has been achieved in three trading sessions with capital investment of Rs 80000/-. Hence Return on Investment (ROI) is 12.5% in 3 days. This the power of swing trading.
Yesterday, I had revised the target to 189.5. Check it here. Frankly speaking I had revised the target down because in yesterday's trade SBI reached a high of 189.7 and then dropped like a ton of bricks to day low of 184.5, which was a bit unnerving. I did not want a repeat of what happened yesterday and hence gave a conservative revised target.
Now lets analyze as to what happened to SBI in today's trade. SBI Mar Futures opened at 186.5, made a day low of 185.7 and then went on to make day high of 191.4, finally closing at 190.8. If you had closed your position at 189.5 as recommended yesterday, you still would have made a good profit in three days.
Profit Calculation
Bought at 184.5 , Sold at 189.5
Lot size : 2000 shares
Profit = (189.5 - 184.5 = 5) X 2000 = Rs 10000/-
This profit has been achieved in three trading sessions with capital investment of Rs 80000/-. Hence Return on Investment (ROI) is 12.5% in 3 days. This the power of swing trading.
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