NIFTY - EOD - 5th September 2011

1. Do you have any trade right now in the market - Yes - Calls of Chambal. And my Old Trade - Puts for DLF, JPA and RELCAP.  
2. Why did you go for this trade - Because I got a signal to take the trade. Though there are possible signs of distribution. We will see tomorrow. If our stop loss is not hit, we will evaluate EOD otherwise get out of the trade. Stop loss is 1INR less than my buying price for CE.
3. How has the action been in these trades - Not positive for CE, EOD - though its up 39% but there are possible signs of distribution happening.  
4. Are the signals right now telling you to get out of the trade - Not yet.
5. What are global markets doing right now - In the last few days US S&P500 has not been able to go above 1224 in sustained manner. Hence my bearishness that the bounce was almost over. After two day of Doji we had a bearish engulfing pattern was well in SP500 yesterday which for us was not good as far as external cues are concerned. After this US is closed today, Europe has closed deep in Red. SGX is down 1% as well.
6. What might happen on Tuesday - The index may open with a gap down. Volume profile shows 5040 on the upside as the high volume node. 4990/ 4950/ 4900/ 4850 are the high volume nodes on the downside. Hence, we will have to see if these are holding. For Chambal - 106 to 100 are high volume nodes presenting very strong support. It has to break 116.5 levels.
7. So whats your plan of action -  We will have to see if the momentum in price is present, otherwise stop loss may be hit.
8. Learning - Never get out of the right trade until sell signal emerges.