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Just now, randomGuy said:

Yes they are.

 

Yes, but the point was, try to wait for 20-30% correction. Its not a hard and fast rule but still, good to keep in mind.

 

modi is doing lots of reforms/tinkering which definitely is in favour the mkt ..

my view is every dip is a buying opportunity 

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14 minutes ago, velu said:

 

modi is doing lots of reforms/tinkering which definitely is in favour the mkt ..

my view is every dip is a buying opportunity 

Not for expensive stocks.. for ex. Motilal oswal trading at ~35 pe.....i bought at 290 2 months back and still hold it. I won't suggest to buy it on smaller dips coz its expensive.

 

 

So where there is big discount to intrinsic value or relative valuations, u can buy any time. For ex manappuram i bought near highs at 45/- but it quickly went upto 80in 2 months.

 

 

So it not a hard and fast rule. Be flexible in buying and selling. And use all the knowledge and experience that u have acquired.

 

I wanna strongly suggest researchbytes.com to everyone and listen to concalls of the cos. U wanna invest in.

Edited by randomGuy
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I had done some back of the envelope calculation for a Mature stabilised running size of housing finance market. so for anyone who is interested -

 

Average Age (life expectancy) of house or apartment = 80 yrs.

 

India's peak population=150cr.

 

Average household size when Indian economy matures = 3 members per household (right now it is 4.8 for India , 3.1 for China iirc and 2.x for US, Germany, Japan etc)

 

Meaning India needs 150/3=50cr new houses every 80 yrs. Or 50/80crore new houses per year.

 

Occupancy rate = 100% (meaning all houses are occupied, either owned or taken on rent)

 

For each and every house, let us say 15 lac loan is taken. Some people need no loan, some 5 lacs , some 20 lacs, some 30 lacs...
I have taken 15 lacs as an average for every new house bought. Your assumption here may be different from mine.

 

Let us say the loan is taken for 15 yrs period on average.

 

So when India becomes a optimal economy (where say everyone is eligible for a 15 lac loan), then at all times, the total running asset size (loan book size or the total outstanding loans ) of the home loans would be=

50/80(15+14+13+12...+2+1) lac crores = 75 lac crore = 75 trillion rupees

 

Pls note that it is the running outstanding loan book size. so someone who took loan for 15lacs 1 year back , assume 14 lacs is outstanding loan now. someone who took loan for 15lacs 2 year back , assume 13 lacs is outstanding loan now. (hence 15+14+13...+1 in above calculations)

 

According to NHB (national housing board) data, it was 10 trillion rupees 2 yrs back growing at 20-25% cagr. So, at this point, it should be 15 trillion rupees.

 

That gives a 5 fold increase possibility till the time India becomes a more prosperous economy.

 

15 trillion rupees is 11.5% of 2 trillion dollar economy (taking exchange rate of 65 rupees per USD).

 

Let us say, the GDP size is 5 trillion USD when the housing finance market does become 75 trillion rupees. Taking same exchange rate of 65 rupees: 75/(5*65)=23%

 

Compare with other countries: China's home loan market is 20% of its GDP at this point BTW. And USA's mortgage debt is 45% of its GDP.

Edited by randomGuy
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I invested most of my earnings in RE , in my native..

But in stocks , only trading emoji49.png

ok good. which place btw?

 

Some stock are good for long term also btw....for ex. arman fin. - market cap for just ~180 cr. now. Transparent, ethical management (listen to concalls etc), wanting to grow at 70% this year, and similar rates for next 4-5 years....and maintain RoE at 18-20%.

 

For 180 cr. Mcap, its easier to envisage 10x growth (it'll just become 1800 cr. Mcap) than for a larger co. (for 5000cr. co. it has to become 50,000 cr to grow 10x).

 

I am invested in these stocks. So my views are biased and do ur own due diligence before investing.

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11 minutes ago, randomGuy said:

ok good. which place btw?

 

Some stock are good for long term also btw....for ex. arman fin. - market cap for just ~180 cr. now. Transparent, ethical management (listen to concalls etc), wanting to grow at 70% this year, and similar rates for next 4-5 years....and maintain RoE at 18-20%.

 

For 180 cr. Mcap, its easier to envisage 10x growth (it'll just become 1800 cr. Mcap) than for a larger co. (for 5000cr. co. it has to become 50,000 cr to grow 10x).

 

I am invested in these stocks. So my views are biased and do ur own due diligence before investing.

 

Bhavani .. near erode/coimbatore if u know the geography of TN..

most investors blindly follow the news flow .. rarely they do fundamental analysis by themselves ( still these underrated companies need someone to bring them to limelight )..

 

my first company went for IPO long back before i joined .. issue price was 260 but it was trading at 600rs within a year ( sasken )

and considering the crap we do at office , i decided not to invest .. later stock plunged to 60 or 70rs

 

i mostly do options .. cover it in a day or two and run away

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3 minutes ago, velu said:

 

Bhavani .. near erode/coimbatore if u know the geography of TN..

most investors blindly follow the news flow .. rarely they do fundamental analysis by themselves ( still these underrated companies need someone to bring them to limelight )..

 

my first company went for IPO long back before i joined .. issue price was 260 but it was trading at 600rs within a year ( sasken )

and considering the crap we do at office , i decided not to invest .. later stock plunged to 60 or 70rs

 

i mostly do options .. cover it in a day or two and run away

Good.... researchbtyes website is a massive asset for retail.

 

I was holding arman a few months before any MF entered it thanks to RB... reliance mutual fund entered a couple of weeks back . usually they don't invest in such miccrocaps 

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11 minutes ago, randomGuy said:

Good.... researchbtyes website is a massive asset for retail.

 

I was holding arman a few months before any MF entered it thanks to RB... reliance mutual fund entered a couple of weeks back . usually they don't invest in such miccrocaps 

there are so many such sites .. but what we need is the site which will bring all the latest news 

every broker tries their best .. zerodha has got zerodha pulse , will put the news asap .. but nothing beats good old tv 

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Bhavani .. near erode/coimbatore if u know the geography of TN..

most investors blindly follow the news flow .. rarely they do fundamental analysis by themselves ( still these underrated companies need someone to bring them to limelight )..

 

my first company went for IPO long back before i joined .. issue price was 260 but it was trading at 600rs within a year ( sasken )

and considering the crap we do at office , i decided not to invest .. later stock plunged to 60 or 70rs

 

i mostly do options .. cover it in a day or two and run away

Sasken was such a blue eyed stock.They supposedly had a very elite selection procedure for hiring.Then it all came down.And knowing that they hired you just makes it clearer.

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I have always been fascinated by the options trading but still don't do it because of its high volatility. I have read and heard from many that shorting options is much more profitable than buying them as they deprecate with time. What do you guys generally do :hmmm: buy or short ??? 

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I have always been fascinated by the options trading but still don't do it because of its high volatility. I have read and heard from many that shorting options is much more profitable than buying them as they deprecate with time. What do you guys generally do :hmmm: buy or short ??? 

I do trade mostly in stock options..

Almost all stock option trades are shorts ( outside the money options and some times i hedge it )..

When we short options after some events , we are with time as well as volatility..

Here we have to avoid shorting before any major events like results, brexit , election etc

In index buying is preferable and mostly play in bank nifty weekly options..

But i would still short otm options to go with my atm options

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6 hours ago, velu said:

I do trade mostly in stock options..

Almost all stock option trades are shorts ( outside the money options and some times i hedge it )..

When we short options after some events , we are with time as well as volatility..

Here we have to avoid shorting before any major events like results, brexit , election etc

In index buying is preferable and mostly play in bank nifty weekly options..

But i would still short otm options to go with my atm options

But stock options are not that liquid. Volume is always very low. 

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