Abhijit Gangurde - Nirmal Bang Securities Pvt. Ltd.

18/03/2022

Online Webinar On

“How to Invest in Share Market”

Date: 20.03.2022
Time: 11.00 AM – 12.30 PM

What you will learn –
- What is a share?
- How to select a stock for trading or investment?
- What is a risk and how to minimize it?
- How to set a target price for share?
- How to decide holding period & profit booking?

Special Sessions on –
- Trading in stock with only 1% risk.

Click on the below link & join the webinar –

Real-time meetings by Google. Using your browser, share your video, desktop, and presentations with teammates and customers.

12/03/2022

Link for webinar https://meet.google.com/yeo-hbkr-sgx

12/04/2017

Arbitraging is also a good strategy for trading....

E.g. todays spot close of HDFC is 1466.65 and its future closed on 1472.40, means difference in spot & future price is apprx. Rs. 6.

Lot size of HDFC future is 500.

Now, sell one lot of HDFC future and buy 500 shares at spot market.

On expiry both prices will be same.
Here 3 cases will happen.....
Case 1.
On expiry suppose HDFC will fall to 1460.
In future market you will earn Rs. 6000
In spot market you will lose Rs. 3000
Total profit 6000-3000=3000

Case 2.
On expiry suppose HDFC will rise to 1480.
In future market you will lose Rs. 4000
In spot market you will earn Rs. 7000
Total profit 7000-4000=3000

Case 3
On expiry suppose HDFC will close to 1470.
In future market you will earn Rs. 1000
In spot market you will earn Rs. 2000
Total profit 1000+2000=3000

But keep one thing in mind, this strategy will work only when futute price is higher than spot price.

Also you compulsury sell in future market & buy in spot market.

08/07/2016

From Last Month NSE is offering traders to trade in BANK NIFTY on weekly expiry basis. Means you can buy contracts of bank nifty for specified strikes with expiry of each thursday of every month.

Also, from this month, the lot size of bank nifty is changed to 40.

Before it was only possible to buy contracts of last thursday of every month.

e.g. In July-16, the contracts of each strike in bank nifty can be buy for expiry dates 7, 14, 21 & 28 July at different premium.

Here, closer the expiry, less the premium.

e.g. Today on 8th July Call of Bank Nifty with the Strike Prize 18000 is at -

a) Rs. 127.10 for expiry on 14th July
b) Rs. 243.00 for expiry on 21st July
c) Rs. 299.35 for expiry on 28th July

The thing behind this is, if you have less amount to invest, Buy option with closer expiry.

But please, before making any investment, kindly take opinion of the experts of the market, we are investing to earn & not for loss.

Thank You.

01/06/2015

The trading Strategy of this month....

Buy a call option of LT June of strike 1800 at Rs. 14.60
Buy a put option of LT June of strike 1700 at Rs. 13.45

Total Investment of Rs. 28.05

Lot size of LT is 125 shares.

Call will cost you 14.60 x 125 = 1825
Put will cost you 13.45 x 125 = 1681.25

Total Investment 1825 + 1681.25 = 3506.25

Condition 1.

If LT rises to 1800, call will become approximately of Rs. 55
and put will be approximately of Rs. 1.

Total Outcome Becomes Rs 56

Outcome in Rs is 56 x 125 = 7000

Net Profit 7000 - 3506.25 = 3493.75 approx.

Condition 2.

If LT falls to 1700, put will become approximately of Rs. 60
and call will be approximately of Rs. 1.

Total Outcome Becomes Rs 61

Outcome in Rs is 61 x 125 = 7625

Net Profit 7625 - 3506.25 = 4118.75 approx.

If you are very eager to book profits, sell both the lots when addition of price of call and put becomes greater than Rs. 30.
Beyond Rs. 30 you will get a little profit but your investment and brokerage will be covered.

Exit from positions after earning profit, don't keep positions
expecting it will earn huge profits beyond recommended levels,
as these contracts lasts only for June month.

Thank You.

12/05/2015

The result of yesterdays mentioned strategy came today and it is -

In Nifty there is a great fall today of 200 points. Means it is closed at 8126.95

The call of 8400 which was Rs 100.35 yesterday became of Rs. 42.55 due to fall in Nifty.

But the Put of 8250 which was Rs. 98.60 yesterday became Rs. 208.15.

Hence the total investment became 42.55 + 208.15 = 250.70

Your yesterdays actual investment was Rs. 198.95

So the profit you have earned is 250.70 - 198.95 = 51.75 for one share.

As the lot size of nifty is 25, your earned profit for one lot is
51.75 x 25 = 1293.75

The profit increases with number of lots.

Thank you.....

11/05/2015

The strangle strategy of trading in options....

To understand this strategy we'll take an example of today's Nifty.

Today index Nifty closed at 8325.25

In Derivative Market Nifty closed at 8340.

Now the Call option for strike price 8400 is available at the premium of Rs. 100.35 and the Put Option of strike price 8250 is at Rs. 98.60

The lot size for nifty is 25 shares.

Hence the Call of 8400 will cost you at 100.35 x 25 = 2508.75

And the Put of 8250 will cost you at 98.60 x 25 = 2465

Now your total investment became Rs. 198.95 (addition of call price and put price)

Now if at expiry Nifty closes below 8250 then Put option will earn profit for you which will overcome the loss of Call Option.

And if at expiry Nifty closes above 8400 then Call option will earn profit for you which will overcome the loss of Put Option.

For this strategy of trading one thing you have to keep in mind that when your investment that is addition of price of call and put exceeds

199 + Brokerage + at least Rs. 30 to 50

please, please, please book you profits as these Call and Put options contracts lasts only for one months.

Brokerage varies from broker to broker. Generally it is From Rs. 25 to 100 for one side i.e. for buying Rs. 25 to 100 and for Selling Rs. 25 to 100.

hence your profit will be Rs. 30 to 50 x 25 (lot size of nifty)

= 750 to 1250

if you get more, very good, but you afraid book profits at this stage.

For more details refer www.nseindia.com

Thank You......

10/05/2015

For fresh investors, I clearly suggest them to start with the Derivative Option Market.

As per my latest knowledge there are 145 Companies registered in Derivative Market in which you can trade the Option Strategy.

There are two types of option in Derivative Option Market -

1.Call (Bull Option)
2 Put (Bear Option)

Call Option is a Option when you are bullish on any stock.
Pall Option is a Option when you are bearish on any stock.
e.g. In Future Market X company is trading at Rs. 250/- per share. You think it may go up to Rs. 280/- per share. So if you buy strike of 280/- for X company, then you are buying a Call Option.
But if you think it may go up to Rs. 220/- per share and if you buy the strike of Rs. 220/- per share, then you are buying a Put Option.

In Option Trading you do not have to pay the actual price of the stock, instead you pays the premium for particular strike of Call or Put option.

You can get the list of companies registered in derivative market and the rate of Premium for particular strike of a selected company on www.nseindia.com

Option Market is a market where an investor invests a small amount and can get big returns.

If he faces the loss it is also a small amount.

In above example, suppose the lot size of X company is 1000.
The Call strike of Rs. 280/- is available with the premium of Rs. 5/-. Then your investment is will be 1000*5=5000.
If share price of the X company moves from 250 to 260/270/280 then say the rate of premium moves from 5 to 7/9/11 them your investment will be 1000*7or9or11 = 7000/9000/11000 making the profit of Rs. 2000/4000/6000.

But in case the stock price drops to 240/230/220/0 then your maximum loss it the price of share will become zero is Rs. 5000/- only. This is very small compared to Equity/Cash Market.

The Same thing happens in Put Option.

There are some strategies using which you can earn profits and minimise losses. We'll see those later.

10/05/2015

Since I started investing in shares, I've seen most peoples making three major mistakes are

1. Lack of Patients
2. Not following Correct Timing
3. Improper Selection of Stocks

If you correctly follow these three steps you will definitely get profits from good stocks...

In share market don't be too much greedy. if you are getting 5-10% profit, exit from the stock and book your profit. Don't stick to it hoping that your money would become double or triple in a long term....

Always remember, investments are made to earn profit, not to bear losses....

Thank You....

09/05/2015

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