Guidelines

GENERAL GUIDELINES

Tips & suggestions applicable to all trading calls
  1. Make positions in even number of lots i.e. 2,4,6,8 etc. depending upon your risk appetite.
  2. When positions made are in even number of lots you can book profits partially and hold on to rest of the position for full targets.
  3. It also gives you the flexibility to shift your stop loss to your cost price after booking partial profits so that trades close only in profits.
  4. Stop loss and Targets have to be strictly followed as per our calls. In case of any change in stop loss or target price we would update the same via message.
  5. Always make equal positions in all calls strictly . For example if you trade 2 lots in F&O, always trade every call with 2 lots only. Similarly if you are doing delivery based trades you should buy each call of equal value for example Rs 25,000 value of each stock should be bought irrespective of quantity.

MARGIN REQUIREMENTS (APPROX. Rs)

STRATEGY 1 STRATEGY 2 STRATEGY 3
PLANS

2 LOTS OF FUTURE

1 LOT OF FUTURE + 1 LOT OF OPTIONS

2 LOTS OF OPTIONS

DERIVATIVE SHORT TERM

20,00,000.00

10,00,000.00

5,00,000.00

INDEX SHORT TERM (BOTH INDICES)

5,00,000.00

2,00,000.00

75,000.00

FOREX SHORT TERM

15,000.00

5,000.00

800.00(MINIMUM)

INDEX LONG TERM (BOTH INDICES)

7,50,000.00

NOT SUGGESTED

NOT SUGGESTED

DERIVATIVE LONG TERM

20,00,000.00

NOT SUGGESTED

NOT SUGGESTED

FOREX LONG TERM

15,000.00

NOT SUGGESTED

NOT SUGGESTED

CASH SHORT TERM / LONG TERM

NOT APPLICABLE ( DEPENDS ON CHOICE OF CLIENT )

Fact sheets assumptions: Our fact sheets are based on following assumptions :
  • Derivative short and long term : 2 lots of future for every call.
  • Index short and long term : 4 lots of future for every call.
  • Forex short and long term : 10 lots of future for every call.
  • Cash Short term / long term : Rs 1,00,000.00 for every call.

Things to check before Buying Stock
  • Are you with mass or against mass?
  • Shareholding pattern is fairly important thing to look at. Mainly three things: promoter, institutions (DII and FII) and retail holdings. Are MFs dumping stock?
  • Is it amongst last stocks on any benchmark (like NSE, BSE 200) in terms of market cap? i.e. say according to market cap if this stock is somewhere at no. 195 in BSE-200 list, then you are taking significant risk for buying this company. If this stock gets out of index then there will be significant selling by index funds.
  • Order book and Earning Estimates.
  • Industry outlook and Peer competition.
  • Is it hard to create business model or hard for new players to enter.
  • Secured loans and unsecured loans in balance sheet.
  • Be cautious when you see high "other income" in profit/loss statement.
  • Technical analysis: Is it technically correct level to invest?
  • Quality of Management

WHAT IS FUNDAMENTAL ANALYSIS?

The main goal of fundamental analysis is to find out intrinsic value of stock, means primary assumption for fundamental analysis is that the price on the stock market does not reflect the ‘true’ value of stock (share). In a nutshell, focus of fundamental analysis is to determine true value of stock by focusing on various factors like growth, company’s actual business, company’s financial strength and its future prospects.

Fundamental analysis mainly in three parts:
  • Financial stability ratios
  • Performance indicators
  • Valuation parameters

Broadly fundamental analysis should be performed at least for past 3 years (more you go, better it is).


WHAT IS TECHNICAL ANALYSIS?

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Technical analysts believe that the historical performance of stocks and markets are indications of future performance.

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