Kotak Mahindra Bank’s Next Move Plus Insights on Sun Pharma & TCS

Greetings, fellow market traders! Did you catch last week’s market fireworks? This is as whoever followed my pre-market YouTube videos is probably sitting on large profits. So if you want to keep the wins coming, watch the video below on Sun Pharma (NS:SUN), TCS (NS:TCS) and Nifty Midcap. Also, do hit that subscribe button so as to never miss out on my future market analysis.

Today, I will be diving into three stocks and one index. However, to keep the article concise, I have focused on Kotak Mahindra Bank (NS:KTKM) here. Meanwhile, I have analysed TCS, Sun Pharma, and Nifty Midcap in the YouTube video below.

Kotak Mahindra Bank:

Over the past few weeks, I have analysed Kotak Mahindra Bank multiple times on YouTube. My predictions of its significant fall and subsequent rise proved accurate. This benefited both option traders and equity investors.

However, the week before last, I once again analysed the stock in an article here and in a YouTube video. My video came first, and then on Monday morning, the article followed. In both, I shared that I expected the stock to fall from 1,900 to 1,755, and boy was I correct. This is as Kotak followed my prediction as it dropped from 1,900 to 1,755 which handed option traders with a windfall whilst also protecting potential equity investors.

So what’s next for Kotak Mahindra? Now, as long as it remains between 1,720 and 1,755, it is a stock searching for a bottom. This is as this area is a potent support zone as it is made up of a mix of quantitative and price action supports. Thus, traders should brace themselves, as I expect a range to form between 1,720 and 1,820 in the coming days. However, if we get a break below 1,720, then this will open the door to a descent towards 1,660 and even 1,600. Conversely, a break above 1,820 could pave the way for a clean climb to 1,900.

As for my current trading strategy? I have exhausted all the Kotak options I had shared in my prior videos. This is because all positions had made sizeable profits, and I see no point in risking my profits.

Moving forward, I will be focusing on the November series for option trades in Kotak. If the trend-catcher indicator remains stagnant, then I will be a double agent. So I will sell both calls and puts of the 1,720-1,820 range. This translates to selling calls above 1,820 and puts below 1,720, as that will capitalise on the stagnation. For all positions, I will maintain a profit stop once they earn some money because at some point one of the ends will break. Thus, then the profit stop will take me out of that trade and let me retain my profits. Lastly, I have not mentioned option buying this time, as I don’t think it is the ideal time to do that. This is because I would only consider option buys if we break above 1,820 or below 1,720.

For equity investors, I wouldn’t look at Kotak as a buy yet. I say this as there are stocks with a better risk-reward out there in the market. However, if you have your heart set on this particular stock, then only consider taking a long position if it surpasses 1,820. But be prepared for a slow, potentially less rewarding ride.

Key takeaway:

Overall, Kotak Mahindra Bank has followed my script to the tee. But now it’s time I find a new stock to make good money on and will share that with you in the coming days on my YouTube channel. This is as the bank will now have to prove itself before it earns a permanent spot in my investment portfolio. Lastly, do not forget to check out my YouTube video shared below for an in-depth analysis of Sun Pharma and TCS. These stocks are brimming with money-making potential. And if you’re a Nifty Midcap expiry enthusiast, you definitely won’t want to miss my expiry trading strategies!

Until next time, happy trading!

NB: The link to the Youtube video I discussed above is: https://youtu.be/5VHeHgbvo0I