Weekly Summary - April 16 to April 20

Weekly trade summary stands as follows:


 

Trade Date	Contract Descriptor	Action	Qty	Price	Value	Brokerage
20-Apr-12	FUT-BHEL-31-May-2012-S	Buy	1000	248.1	248,100.00	144.59
20-Apr-12	FUT-BHEL-31-May-2012-S	Sell	1000	246.6	246,600.00	69.57
20-Apr-12	FUT-BHUST-31-May-2012-S	Sell	1000	413.9	413,900.00	361.29
18-Apr-12	FUT-BHUST-31-May-2012-S	Buy	1000	417.4	417,400.00	243.27
18-Apr-12	FUT-RELCAP-31-May-2012-S	Sell	500	368.1	184,050.00	138.54
18-Apr-12	FUT-RELCAP-26-Apr-2012-S	Buy	500	371	185,500.00	158.11
18-Apr-12	FUT-AURPHA-26-Apr-2012-S	Buy	2000	132	264,000.00	153.86
18-Apr-12	FUT-AURPHA-26-Apr-2012-S	Sell	2000	127.8	255,600.00	71.55
17-Apr-12	FUT-RELCAP-26-Apr-2012-S	Sell	500	361	180,500.00	135.86
17-Apr-12	FUT-RELCAP-26-Apr-2012-S	Buy	500	354	177,000.00	76.19

For a week where NIFTY was up, I had BHEL, BHUST and AURPHA trigger my stop losses. Ended up with a Rs. 12000 loss. This is very bad!

Major hit came from AURPHA which for no reason shot up from 127 to 132 on high volume.

Nifty intraday chart for 18-Apr-2012:

AURPHA intraday chart for 18-Apr-2012:

My learning with BHUST was that after a huge rise, there could be significant profit booking (it came down from 427 to 413 very quickly). I applied the same logic on AURPHA and burnt my fingers. I was playing for just a Rs. 2 gain; but, for my bad luck the stock rose to 132 on strong volumes. I guess my calculation was correct. On 4 out of 5 chances, I would have won. This was just a bad day. Exited with a decent loss.

5-day chart comparing nifty and aurpha:

Note that aurpha could not go below its previous day low of 127. It would be a good idea for me to wait till previous day intraday low is breached before taking a fresh short position. Moreover, I must strongly consider avoiding shorting a strong bullish stock.