Panic selling in Nifty. Reversed to short position

Yesterday (19th March) saw a massive panic selling in the global as well as in Indian markets. Nifty 50 gap opened down by a massive ~500 points which made it impossible to close our previous hypothetical long position (taken at 23675) with the stop loss placed at spot 23537. The market opened at around 23200 hence to square off immediately we would have closed the futures trade at 23250, booking a loss of 425 points.

At the same time we had to immediately take a bearish position by selling Nifty futures at 23250 with an initial SL placed at 23807. Nifty continued to fall and broke 23000 before closing exactly at 23000 for the day. The MHAF candle chart gave a strong red candle boosting the confidence of holding the short position.

After the market close our stop loss is now sitting at 23580 as per the table above. This is far away at this point but if the market starts moving higher from now, that SL will be trailed as we progress and follow the spreadsheet.

Since we booked a good profit of Rs. 436000 from this Futures only strategy in this month, after booking the loss of Rs 1,10,500 (425 points x x 260), we are still in a profit of Rs 3,25,500 in this month. Our real money portfolio is not having any open trade for now.

Happy trading, Cheers.