Profit Realized - SBI Apr Futures

 

We have again got it right on target. In yesterday's post I had advised you to exit SBI Apr Futures within the first 30 mins of trade today. Check the blog post here.  I think we all could exit this position around 198.

In today's session SBI Apr Futures opened at 198.45 and it made a day high of 199.3, which makes me sure that all could at least exit near 198.

Time to calculate profit. We bought this lot of SBI Apr Futures at 190 ( check my recommendation here) and sold it at 198.

Profit from one lot of 2000 shares costing Rs 75000/- is (198-190= 8)X2000 = Rs 16000/- This trade has given Return on Investment as 16000/75000X100 = 21.3% in 4 trading sessions.

 For the moment let us wait and watch how things pan out in the markets. Today derivatives March expiry trades have been executed and tomorrow will be a fresh start with April contracts.

Tomorrow we will not enter trade. But if SBI Apr Futures is available at 186/188, then we should go ahead and buy it.

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!

Markets on Uncertain Grounds - Traders Should Buy Dips

Volatility has come swooping down on Indian markets.

But I think that is good news for traders. As things stand, every dip should be bought. There is every reason why you should be on buying binge.

What should you buy? I think banks are going to give good returns if you buy the dips. Reason is not far to seek. RBI is most likely to cut rates by at least 50 basis pts.

Expectation of our Finance Minister is also that the rates should be lowered by RBI. And when Arun Jaitley expects something, RBI Gov is most likely to deliver accordingly..

As for position of one lot SBI Mar Futures held, do not despair. It was bought at 196. Check here

This position should be closed at 197/198 by Thursday.

However keep holding the position of SBI Apr Futures which we bought on 28 Mar 2016. This position was taken as per my recommendation given on 23 Mar 2016 in this post. One should hold this position for a target of 205.

RBI Monetary Policy Review is on 05 Apr 2016 and rate cut is what will give boost to banks. Let us wait and see what Raghuram Rajan does to propel banks and Indian economy in this coming RBI Review Meet.

SBI on Track to Target and Beyond

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 !

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!