Historical day for Markets around the world. Markets panicked due to Coronovirus impact.
Indian Markets both Sensex and Nifty opened lower and reached the lower circuit 10%.. Trading was halted for 45 minutes then restarted. Market further went down 2% to reach the panic low then recovered dramatically to end the day at 5% higher.
NIFTY OPEN 9107 LOW 8555 HIGH 10159 CLOSE 9555 P.Close 9590
SENSEX OPEN 31214 LOW 29388 HIGH 34769 CLOSE 34103 p.Close 32778
BANKNIFTY OPEN 22720 LOW 21351 HIGH 25670 CLOSE 25166 P.Close 23971
Nifty swinged for whooping 1604 points which is probably a one year range in normal days,where as Sensex swinged for 5389 points.
VIX hit high of 59 which is higher than 2008 levels.
The reason for recovery could be RBI intervention, Global markets recovery etc but it was dramatic.
I could only watch the whole event expect for Bear Spread initiated at 9350 and 9300 with a 1:2 reward ratio. But it was good that i did not initiate any emotional trade.. Great learning.. Risk Management is key to trading .. Its good that i was learning slowly.
In the entire fall i only traded Bear Spreads which provided little profits but safe ones.
The first trade was a loss though due to short ratio put spread as no one expected a sudden fall at this rate. (created brought 1 11500 put and sold 2 11200 puts).
The loss recovered by subsequent Bear spreads and earned overall profit of 3%.
Given VIX is coming down, its interesting days ahead.. existed to trade in coming days.
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