Taking Stock:Day Trading Tips For 14 Oct 2009

In the last post on 13 Oct 2009, I had given some recommendations to buy Oct Futures on 14 Oct 2009. Now that the market has closed for the day its time to take stock of the day's happening vis-a-vis those recommendations. Throughout the day the market showed remarkable strength with Nifty closing 64 points up (+ 1.27%) and Sensex adding 205 points to yesterday's close i.e. 1.2% up. However even in this belligerent bullish mood, we found some sectors and scrips dipping into red, which was little disheartening. Be that as it may, let us now evaluate the performance of our day trading picks :-

HDIL. Buy for Oct Futures of HDIL was given between 369 and 376. Day low was 373.4, day high was 382.35 and it closed at 379.15. Since the lot size is 774, in the worst case scenario you would have made Rs 2438 (379.15-376=3.15x774=2438). And if you were lucky you would have made Rs 6000 plus.

Nagarconst. Buy price recommended was 165/167 but day's low was 169.1 and so there was no trade. No profit no loss!

LITL. Recommended buy price of 501/509 was not met in trade today since the day low was 516. Again no profit no loss!

Net Profit from day trading on 14 Oct 2009 ranged from Rs 2000/- to Rs 6000/-plus.

Day Trading Recommendations for 14 Oct 2009

If you have missed the boat on 12th October for swing trade then don't be disappointed much. Here I shall be providing day trading advice so that you may join the same trades on 14 October, in case you missed the 12th October swing. In addition I am also recommending something extra for day trading on 14 Oct 2009.

HDIL. Buy Oct Fut of HDIL anywhere between 369 and 376 for a target of 385. If you find the market as well as the scrip displaying unusual strength then you may decide to wait for target of 400 also.

Nagarconst. Buy Oct Fut of Nagarconst at 165/167 for a target of 171. You may also like to wait for 179.5 as exit point, provided the scrip and the market is flexing strong bullish muscles.

LITL. This scrip was not in my swing trading list of 12th October. For day trading on 14th October buy Oct Fut of LITL anywhere between 501 and 509 and look to square up your position at 540. In case you find very strong bullish sentiments prevailing in the market then you may like to wait for a target of 585.

Tracking Swing Trade Recommendations For 12 October

Today's price action has confirmed that the swing is in place for the recommendations given in the last post for swing trade for 12 Oct 2009. Lets track the performance of the stocks futures recommended:-

HDIL. Lets assume that you have taken position today at 358. Position closed at 372.1 after making day high of 376.4. In case you are holding position for target of 400 as recommended, then its fine. But if you have done day trade, you would have profited Rs 14/- to Rs 18/- per share. As the lot size is 774 your intra-day profit should range between Rs 10000/- to Rs 14000/-.

Asian Paint. Day low was 1510 and so missed trade by Rs 10. Hence no profit no loss.

Nagarconst. Assuming you bought one futures position at 165.2, it went to high of 168.4 and closed at 167.3. If you are holding position for a target of 179.5 as recommended, then its good news. But if you have day traded then you would have made a profit between Rs 2/- to Rs 3/- per share. Since lot size is 2000, your profit should range between Rs 4000/- to Rs 6000/-.

Overall Day Profit = 10000+4000=Rs14000/-(minimum); 14000+6000=Rs20000/-(max), less brokerage.

Swing Trade for 12th October

For last two trading sessions I have been giving recommendations for day trading some stocks futures and I hope you have made reasonable money from these recommendations during each day. Today I shall be giving some recommendations for swing trading with targets. However my suggestion will be that if you happen to make considerable profit within the day itself then do take that profit and square off your profitable positions.

HDIL

On 9th Oct I had recommended a buy for HDIL Oct futures at 357 and the scrip made a low of 356.1 before closing at 358.2. In case you had closed your trade on that day then its time to pick it up today anywhere between 352 to 362 for a target of 400 in 3/4 trading sessions. But if you are still holding it then ride it till 400. However if you achieve a target of 386 in today's trade then do grab it with both hands.

Asian Paint

Buy Oct Fut at 1500 for a target of 1700 in 3/4 sessions. However if you can get 1570 in today's trade then do take it.

Nagarconst

Buy Oct Fut between 164 to 166 for a target of 179.5 in 3/4 sessions. You may decide to exit trade if you can get a price of 171 in today's trade.

Day Trading Report Card For 09 Oct 2009

The report card for day trading recommendations given for 09 Oct 2009 in my last post reads as follows:-

1. HDIL bought at end of day at 357 and closed at 357.2. Since it was for day trading, the position was to be squared up with no profit no loss. (Day low 356.1)

2. Nagar Const bought at 164 and squared up between 169 and 172 ie at 170.5. This trade gave a profit of Rs 13000(6.5x2000). (Day low 162.05)

3.Canbk bought at 343 and closed at 342.85 with a loss of Rs 120(0.15x800). (Day low 340)

4.ICSA bought at 205 and closed at 202, giving a loss of Rs 3600 (3x1200). (Day low 202)

Net profit = 13000-120-3600-1000(brokerage)= 8280, say Rs 8000/-

ICSA Oct Fut on both days did give return ranging from Rs 2500 to Rs 4000. But on both these days profit was not taken and finally ended up taking loss at the end of day. Futures' Day Trading lessons need to be drawn from this ICSA trade.

Lesson No 1

If you are day trading with multiple positions of different scrips, and if you have made handsome profit in one position, then protect that profit for the day by exiting other positions which are giving normal profit.This should be done even when these positions may not have reached the targets you have in your mind for them.