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kunal_finner
Mar 2, 2023 12:06 PM

Bharti below 200 with a consolidating flag Short

BHARTI AIRTEL LTDNSE

Description

Bharti breaks key support and ends below 200. Take an itm put as iv is multi month low. 760 put is just 3 bucks if extrinsic value
Keep a stop at 760 which is the 200. The put will lose 50 percent at the stop. Target of 710 which is the next logical support.
Bonus, bharti coming out of a multi day squeeze and flag, which is fairly unique

Trade active

Continue to hold via short puts - however very close to the time stop loss of 10 days. if bharti does not turn lower than 760 by March 15 will close this trade and take the loss

Comment

Continue to hold as now turning down from 770 back to 760, just shorting nifty was a better trade - shorting defensive stocks in a bear market is a bad idea

Trade active

755 on the stocks and puts are now ITM - a very slow and painful trade indeed. Target 740 and will close there as thats a very long term resistance from which the stock has bounced a few times

Trade closed: stop reached

Stop hit - exit trade
Comments
kapil_jethava
I have also shorted this stock..it's just not coming down very strong stock indeed
kunal_finner
@kapil_jethava, I think if the nifty was in a range this trade may have worked out. With bank nifty sell off the only place for money to move is into defensives like telco, utilities (ntpc), cap goods etc. Still hanging on for target of 740 - still not out of the game. But take off 50% at a loss and reduce your size as this is no longer a good trade
kapil_jethava
@lazy_kunal I am agree with you ..it did not fall as per my expectations..still I feel it will eventually reach 740..
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