Sridhar's Trading Dairy

[arunkarthik]

Sir, I believe some large buyer is accumulating. He may hold the positions for few days.

Was there a huge volume based buy today as well? It suddenly shot up from the lows of 107 odd. Plus, the 115 CE and 120CE are gaining abnormal traction, given there are only 3 days to expiry.

Can this be an alert for a sudden spike in the next couple of days?

I might be a completely wrong and get a severe face palm. I’m prepared for that as well.


Cheers
AK

 

[sridhga]

Was there a huge volume based buy today as well? It suddenly shot up from the lows of 107 odd. Plus, the 115 CE and 120CE are gaining abnormal traction, given there are only 3 days to expiry.

Can this be an alert for a sudden spike in the next couple of days?

I might be a completely wrong and get a severe face palm. I’m prepared for that as well.


Cheers
AK

Ofcourse there was heavy buying. But later it got sold into.

 

[sridhga]

I would be travelling for about a week. I will not be trading and hence cannot post during that time. After that, I am stuck with some professional commitments. I do not know if I can post for some time henceforth.

 

[sridhga]

Yesterday in BEL strong buying was observed with about 19 lakh shares traded in 3 minutes spread out during afternoon. There is a big buyer pouring in the money. Further deliverables increased to 53.3%. However, the futures open interest reduced indicating that shorters were covering. Last half hour showed random spikes but are limited in effect. 3: 20 pm saw a spike when some unwinding took place. There is buying taking place. Yesterday indices were in the green. Today Asian markets are in red. Despite such big investor buying the share managed to move up by just 1.75%. The day end volume was around 63 lakhs which is less than 5 day average of 72 lakhs ( which is also high )(maybe effect of June series closure) . There appears to be some weakness still. I guess it is going to be red day today. We may also see sporadic buying.

 

[sridhga]

Tata Elxsi is moving up steadily. In second half the share price spiked with increase in open interest. This share is going to do well this month.

 

[arunkarthik]

Yesterday in BEL strong buying was observed with about 19 lakh shares traded in 3 minutes the spread out in the afternoon. There is a big buyer pouring in the money. Further deliverables increased to 53.3%. However, the futures open interest reduced indicating that shorters are unwinding. Last half hour showed random spikes but are limited in effect. 3: 20 pm saw a spike when some unwinding took place. There is buying taking place. Yesterday indices were in the green. Today Asian markets are in red. Despite such big investor buying the share managed to move up by just 1.75%. The day end volume was around 63 lakhs which is less than 5 day average of 72 lakhs. There appears to be some weakness still. I guess it is going to be red day today. We may also see sporadic buying.

Also, the zone below 104 is gathering a lot of buying interest. Leaving my major chunk of investment made around 119, I’m now buying around 102-105 levels and selling close to 110. Once a close above it’s immd resistance (111), there will be a jump of 3-5rs.


Cheers
AK

 

[sridhga]

After hitting a low of 101.3 on 28th June, BEL is now trading sideways so far. Today volume was low despite block deals as well as bulk deals. Strangely, OI in call options increased mainly OTM options. OI increase in put options was not significant. What does this mean? Retail investors expect the stock to go up from here? Is it because July end could be Q1 result date? However, on NSE, today volumes were low despite large deals. (43.52 lakhs). My earlier guess that it could be a red day turned out to be true. Barring intermittent buying by some large player, there seems to be no interest in the stock. The stock may breach its previous 52 week low and test Rs. 100 price point. Futures OI has increased. I may be right or wrong. But, I am currently shorting this stock.

 

[sridhga]

Elxsi experienced a red day with lower volumes. The stock is taking a pause on its way up. Though BEL also experienced a red day with low volumes, the case is different between the two stocks. BEL is supported only by large institutional buying, while Elxsi has a broader buying spectrum. I may be right or wrong in my previous statement, but this is based on my observation of minute charts and bulk deals. I believe that in this series, Elxsi has some more travel upwards. I am long on this stock. I may be right or wrong, but, I try to review my opinion every day.

 

[arunkarthik]

After hitting a low of 101.3 on 28th June, BEL is now trading sideways so far. Today volume was low despite block deals as well as block deals. Strangely, OI in call options increased mainly OTM options. OI in put options was not significant. What does this mean? Retail investors expect the stock to go up from here? Is it because July end could be Q1 result date? However, on NSE, today volumes were low despite large deals. (43.52 lakhs). My earlier guess that it could be a red day turned out to be true. Barring intermittent buying by some large player, there seems to be no interest in the stock. The stock may breach its previous 52 week low and test Rs. 100 price point. Futures OI has increased. I may be right or wrong. But, I am currently shorting this stock.

Interesting perspective on the OTM call options.

What’s the stop that you are having for your short position? Even a stop of 2-3 rs is pretty steep for me to digest and that’s why I stick to options only.


Cheers
AK

 

[sridhga]

As expected BEL was in the negative for today. However, Elxsi is going down and is going against my position. Let us see how it goes.