Do you play the stock market

bvasista · 9th March 2020, 16:34

Is it a good idea to buy any Yes Bank shares now since SBI is coming in? Price started from 16 and went over 20 today.

Or is it like dead cat bounce - as mentioned by SmartCat ?

BaCkSeAtDrIVeR · 9th March 2020, 17:31

Quote:

Originally Posted by bvasista

Is it a good idea to buy any Yes Bank shares now since SBI is coming in? Price started from 16 and went over 20 today.

Depends on your risk appetite. Remember, as you buy thinking it is a smart, there is another guy saying it is smart to sell. SBI buying is not a good reason for me to buy.

Quote:

Originally Posted by bluevolt

*Equities
-> Maruti & Tata Motors (Auto)
-> DHFL/IBHFL/AB Capital (NBFC)
-> ITC (FMCG)
-> Dhampur (Sugar), Ginni filaments (small cap)
-> HUDCO, RCF, PTC, MRPL (Public sectoR)

Sugar is a controlled industry. I won't touch it. I won't touch PSUs for poor governance. Suzuki has a direct wholly owned subsidiary in india, with a factory and a dense fog over control of dealership. Tata - please test drive EV versions of Nexon, Tigor, etc. But spend some time watching the JLR showrooms and see how many new deliveries are taking place.

The upcoming slowdown will push up nerves, and people will turn to tobacco and alcohol to soothe nerves. Loss of jobs means free time and no money - so condom makers now and baby diaper makers a year later may be a good idea. (Aw .. going off too much!!! And a contradiction too).

Quote:

I know DHFL/IBHFL doesn't have any hopes but still

If you dont like the, dont buy, simple. India Bulls Housing has an exposure to tier 1 bonds issued by Yes Bank, and those are worthless, as per RBI's scheme. Need I say more?

Frankly, unless the management has a strong track record, and the company itself is a blue chip with presence in non-cyclicals and has pricing power, dont touch it right now.
PS - I'm serious about baby diaper and condom makers. But there are no blue chip large cap cos in there AFAIK. Market leaders, yes. Strong management, yes. Brand and pricing power, yes. Large cap? No.

BaCkSeAtDrIVeR · 10th March 2020, 20:49

Some tips for newbie investors. (Not for traders and that includes futures and options).
1. You are an investor only when you buy. And take delivery of shares. Or sell only what you have / hold and give delivery. How long you hold the shares may affect your taxes - capital gains. I usually hold for minimum one year, and capital gains on sale of shares held for a year or more was (note the past tense) nil.
2. Brokerage varies depending on whether you are a trader (high voltumes) or an investor.
3. Also, take into consideration account maintenance charge for delay accounts and delivery charges. Delivery charges are usually per transaction / per scrip per day. Suppose you buy, let's say 10 shares of Larsen and Tubro. I usually split this into 2 or 3 orders spread over the day. This may not be possible with all brokers. There will be mini.um brokerage per transaction. I have a minimum brokerage per day. Again, if this was a sale, again split, I still pay a single delivery charge for multiple transactions on a single scrip.

These minor details are important because an investor will buy and hold, and the turnover will be low. Some brokers allow "SIP" investments in equity - where, you buy each month a fixed numbers of shares of a definite portfolio for amounts as low as ₹ 5,000. This means you buy only one or two shares of a company, and you get to buy shares in 3-6 companies. Though personally enthused by this SIP thing, I realise I am doing something similar for some years now. From a holding of 15 - 20 companies, I buy may be, 4 - 5 companies a month, very irregularly. Sometimes, a days transactions could be as low as ~ ₹ 7k. That is around the figure which adds up to the minimum brokerage.

So, do go through your broker's tariffs in detail.

vrprabhu · 12th March 2020, 12:21

Sensex drops by a whopping 2300+ points.... brave hearted would made a killing

Quote:

Originally Posted by bvasista

Is it a good idea to buy any Yes Bank shares now since SBI is coming in? Price started from 16 and went over 20 today. Or is it like dead cat bounce?

There was a dead cat bounce last week - from ~37 on Mar. 05, dropped to ~16 on the next day and went up to ~21 by Mar. 09. Trading at ~25 now.... the SBI news turned out to be correct!?!

BaCkSeAtDrIVeR · 13th March 2020, 09:43

There is a 3k drop in the sensex, triggering circuit breakers. Practically everything is at multi-year loss. The bad news is that there will be a wave of sell-offs of pledged shares. Long coverings too. So still more pain.

Yet, there will be people who made a crore in the market. They probably started with five. (And not two, as in the old joke).

MileCruncher · 13th March 2020, 09:56

Quote:

Originally Posted by BaCkSeAtDrIVeR

Yet, there will be people who made a crore in the market. They probably started with five. (And not two, as in the old joke).

I know people who started with 10L and made a crore on this market through puts.

m8002? · 13th March 2020, 11:04

The markets now suddenly recovered all the losses today

I was planning to buy some ETFs.

RiGOD · 13th March 2020, 11:11

Quote:

Originally Posted by m8002?

The markets now suddenly recovered all the losses today

I was planning to buy some ETFs.

I feel that Nifty Bees are attractive even at the current valuations mate

MileCruncher · 13th March 2020, 11:11

Quote:

Originally Posted by m8002?

The markets now suddenly recovered all the losses today

Coz there has been some RBI intervention.

However since you were buying ETFs, you are still good to invest on long term perspective.

skumare · 13th March 2020, 13:01

Quote:

Originally Posted by MileCruncher

Coz there has been some RBI intervention.

Is RBI buying equities now? Or did they intervene with any other parameter?

MileCruncher · 13th March 2020, 13:13

Quote:

Originally Posted by skumare

Is RBI buying equities now? Or did they intervene with any other parameter?

They intervened in the currency markets. I also feel LIC must have done some buying, not sure how else the NIFTY could go up so drastically.

saket77 · 13th March 2020, 13:14

Quote:

Originally Posted by skumare

Is RBI buying equities now? Or did they intervene with any other parameter?

RBI normally doesn't buy equities. It generally buys bonds, gold, currencies, etc and it may intervene in the currency market. Today it looks like RBI had a role in the currency market in stabilizing the tumbling INR.

Coming to equities, I think the recovery in today's market is due to following factors:

1. Not sure, but probably Govt. has forced LIC, EPFO, and other DIIs to buy. This intervention is often made to stabilize falling markets.

2. The FM is supposed to hold a PC at 3PM today. Yes bank revival plan and a relief package to the Telecom industry may be on agenda.

BaCkSeAtDrIVeR · 13th March 2020, 13:29

When I made my last post, markets were down 3k. And trading was halted. Around 12, it was up ~500 points. As I write this, it is up 1.5k. Wild, wild swings. More than 4500 points swing intra day. Not good.

jas_mirage · 15th March 2020, 00:25

I have some funds I would be willing to invest now. Do the experienced traders think it is a good time to invest now? And if so which stocks/MF's should I pick. I am thinking of holding for 5 years if needed.

Sherlocked · 16th March 2020, 10:52

SBI Cards IPO gets listed lower than the issue rate. Now it is trading around 735. Should we buy some for short to medium term period not exceeding 12 months?
I did not apply for the IPO.

View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs.	410	32.01%
26 - 50% -- I have a few stocks.	570	44.50%
51 - 75% -- I'm an active trader.	209	16.32%
76 - 100% -- Hey, I'm an i-banker!!!	92	7.18%
Voters: 1281. You may not vote on this poll

9th March 2020, 16:34	#4126
bvasista BHPian Join Date: Feb 2019 Location: Dallas, Texas Posts: 102 Thanked: 263 Times	Re: Do you play the stock market Is it a good idea to buy any Yes Bank shares now since SBI is coming in? Price started from 16 and went over 20 today. Or is it like dead cat bounce - as mentioned by SmartCat ?
	() Thanks

10th March 2020, 20:49	#4128
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,541 Thanked: 755 Times	Re: Do you play the stock market Some tips for newbie investors. (Not for traders and that includes futures and options). 1. You are an investor only when you buy. And take delivery of shares. Or sell only what you have / hold and give delivery. How long you hold the shares may affect your taxes - capital gains. I usually hold for minimum one year, and capital gains on sale of shares held for a year or more was (note the past tense) nil. 2. Brokerage varies depending on whether you are a trader (high voltumes) or an investor. 3. Also, take into consideration account maintenance charge for delay accounts and delivery charges. Delivery charges are usually per transaction / per scrip per day. Suppose you buy, let's say 10 shares of Larsen and Tubro. I usually split this into 2 or 3 orders spread over the day. This may not be possible with all brokers. There will be mini.um brokerage per transaction. I have a minimum brokerage per day. Again, if this was a sale, again split, I still pay a single delivery charge for multiple transactions on a single scrip. These minor details are important because an investor will buy and hold, and the turnover will be low. Some brokers allow "SIP" investments in equity - where, you buy each month a fixed numbers of shares of a definite portfolio for amounts as low as ₹ 5,000. This means you buy only one or two shares of a company, and you get to buy shares in 3-6 companies. Though personally enthused by this SIP thing, I realise I am doing something similar for some years now. From a holding of 15 - 20 companies, I buy may be, 4 - 5 companies a month, very irregularly. Sometimes, a days transactions could be as low as ~ ₹ 7k. That is around the figure which adds up to the minimum brokerage. So, do go through your broker's tariffs in detail.
	() Thanks

13th March 2020, 09:43	#4130
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,541 Thanked: 755 Times	There is a 3k drop in the sensex, triggering circuit breakers. Practically everything is at multi-year loss. The bad news is that there will be a wave of sell-offs of pledged shares. Long coverings too. So still more pain. Yet, there will be people who made a crore in the market. They probably started with five. (And not two, as in the old joke).
	() Thanks

13th March 2020, 11:04	#4132
m8002? BHPian Join Date: Feb 2006 Location: bangalore Posts: 852 Thanked: 2,599 Times	Re: Do you play the stock market The markets now suddenly recovered all the losses today I was planning to buy some ETFs.
	() Thanks

13th March 2020, 13:29	#4138
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,541 Thanked: 755 Times	When I made my last post, markets were down 3k. And trading was halted. Around 12, it was up ~500 points. As I write this, it is up 1.5k. Wild, wild swings. More than 4500 points swing intra day. Not good.
	() Thanks

15th March 2020, 00:25	#4139
jas_mirage BHPian Join Date: Oct 2006 Location: COK, DXB, DOH Posts: 60 Thanked: 21 Times	I have some funds I would be willing to invest now. Do the experienced traders think it is a good time to invest now? And if so which stocks/MF's should I pick. I am thinking of holding for 5 years if needed.
	() Thanks

16th March 2020, 10:52	#4140
Sherlocked BHPian Join Date: Jan 2013 Location: Jaipur Posts: 689 Thanked: 1,815 Times	Re: Do you play the stock market SBI Cards IPO gets listed lower than the issue rate. Now it is trading around 735. Should we buy some for short to medium term period not exceeding 12 months? I did not apply for the IPO.
	() Thanks