Maruti Suzuki Short at 7060 with SL of 7170 & target of 6900.

Jan 22, 2019

Reasons for shorting

1. Maruti Suzuki Broke the range today with strong volumes. The level 7175 which acted as support in last two occasions had been broken today.

2. There is formation of bearish Marubozu Pattern on daily charts.

3. Nifty made hammer pattern on daily patterns and is trading near resistance levels.

4. MACD is bearish.

5. RRR is around 1.5

Risks:

1. Stock is already in down trend

2. RSI is at 35 indicating oversold

3. Chances of reversal

Trade is at Confidence level of 60%

Don not forget to hedge the position by buying calls or selling puts. My choice is to buy 7100 CE at 152 to reduce the delta. https://kite.zerodha.com/ext/chart/NSE/MARUTI/2815745

Jan 23, 2019

Trade active

Closing around 7040. Revise your SL to 7060 and wait for target with the 7100 CE.

Jan 24, 2019

Trade active

Trailing sl hit at 7060..exit at cost.

Risk takers can wait with sl revised to 7100 for target of 6900

Jan 24, 2019

Trade active

Close around 7040..wait witl trailng sl at 7100..hedge using 7100 CE.

Jan 25, 2019

Trade closed: stop reached

Sl hit at 7100
Loss of 40 points.

Profit With 7100CE is around 20 points

Net loss of 20 points i.e. 20*75 - 1500/-

Jan 25, 2019

Note

Hard luck guys..
stock is down 8% now with out hitting our original stoploss of 7170.

But our plan is to be followed in any case..and the trailing sl hit at 7100..

We will erase this trade from our mind and will move on to next trade..