Team-BHP > Shifting gears


View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 291 33.53%
26 - 50% -- I have a few stocks. 385 44.35%
51 - 75% -- I'm an active trader. 130 14.98%
76 - 100% -- Hey, I'm an i-banker!!! 62 7.14%
Voters: 868. You may not vote on this poll

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Old 30th May 2020, 14:16   #4276
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Default Re: Do you play the stock market

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Originally Posted by SmartCat View Post
Zerodha offers Rs. 20 per options transaction and accepts 7 specific liquid funds as margin collateral.

AXIS LIQUID FUND - DIRECT PLAN - GROWTH OPTION
HDFC LIQUID FUND - DIRECT PLAN - GROWTH OPTION
ABSL LIQUID FUND - DIRECT PLAN - GROWTH OPTION
ICICI PRUDENTIAL LIQUID FUND - DIRECT PLAN - GROWTH OPTION
FRANKLIN INDIA LIQUID FUND - DIRECT PLAN - GROWTH OPTION
NIPPON INDIA LIQUID FUND - DIRECT PLAN - GROWTH OPTION
ICICI PRUDENTIAL OVERNIGHT FUND - DIRECT PLAN - GROWTH OPTION

Note that the mutual fund investment has to be made via http://coin.zerodha.com platform.
Thanks for the response mate. Zerodha's condition that 50% of the position size should be maintained as cash in the demat account and the remaining 50% in liquid funds (after haircut) is not that pleasing. I'm looking to keep 80% of the funds in liquid funds and remining 20% in demat for handling MTM swings and buying options for hedge, which Zerodha does not permit. Do you have information on any broker which permits the same?

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From Monday, margins required for options spread trades will fall by 50% because of new SEBI rules. Look to enter spread trades instead of naked short options.
Yes mate. I'm looking forward to the same too. But saw a SEBI circular that the new margins are applicable from August 1 only, not sure if it was genuine. And yeah, I never carry unhedged positions overnight. I'm so scared of Black Swan events that I even hedge my monthly delta neutral strangles with weekly options
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Old 30th May 2020, 14:31   #4277
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Default Re: Do you play the stock market

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Originally Posted by naveenroy View Post
Thanks for the recco on Suven Life Sciences. I have also been looking at co's like Cyient etc.

Any other recommendations guys?
Suven Life Sciences fundamentals doesn't seem good to me.Am I missing something? What are the positives based on which it can be bought?

I have invested small sums in Dabur, Berger Paints, Trent, Tata Global Beverages, Bata, HDFC Bank & HUL.
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Old 30th May 2020, 14:32   #4278
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Default Re: Do you play the stock market

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Originally Posted by RiGOD View Post
Zerodha's condition that 50% of the position size should be maintained as cash in the demat account and the remaining 50% in liquid funds (after haircut) is not that pleasing.
um, you got that wrong. Liquid funds are considered as cash equivalent. Check the "Note".
https://support.zerodha.com/category...to-get-margins

I keep 90% in liquid funds and 10% in cash for derivatives trades.

Quote:
But saw a SEBI circular that the new margins are applicable from August 1 only, not sure if it was genuine.
Nopes, from Jun 1st. I'm carrying June positions, and I can see that margins have been cut 66% for me already when I login to my account.

Quote:
And yeah, I never carry unhedged positions overnight. I'm so scared of Black Swan events that I even hedge my monthly delta neutral strangles with weekly options
Hedging short monthly delta neutral positions with NEXT MONTH Nifty options works best from RoI point of view, because you don't have to keep buying hedges every week. Use limit orders when entering July Nifty options, because liquidity is not great.
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Old 30th May 2020, 17:15   #4279
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Default Re: Do you play the stock market

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Originally Posted by SmartCat View Post
um, you got that wrong. Liquid funds are considered as cash equivalent. Check the "Note".
https://support.zerodha.com/category...to-get-margins

I keep 90% in liquid funds and 10% in cash for derivatives trades.
Thanks a lot for the info mate.

Quote:
Originally Posted by SmartCat View Post
Hedging short monthly delta neutral positions with NEXT MONTH Nifty options works best from RoI point of view, because you don't have to keep buying hedges every week. Use limit orders when entering July Nifty options, because liquidity is not great.
Oh that's a neat technique. Currently I hold my strangles from 45DTE to 15DTE and the hedge per leg costs Rs.2 (or even less) per week. So total hedging cost comes to Rs.2 x 2 (legs) x 4 (weeks) = Rs.16 + Brokerage + Taxes. So if I choose the far month option of similar strike as hedge, I'll have to see if the theta decay of the far month options exceeds my current hedging cost. But sure, the headache of buying hedges in totally eliminated.

And another gripe I've faced with Zerodha is that they never let me go far OTM to make trades. RMS issue of being the largest broker in the country

Thanks again for the great pointers mate
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Old 2nd June 2020, 08:06   #4280
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Default Re: Do you play the stock market

How serious can be the impact of the rating downgrade by Moody's?

The markets have been on a continuous uptrend for the past few weeks despite Corona, partial lockdown, falling customer demand etc. Will Moody's be just another hurdle or the party is likely to get over soon?

Last edited by CrAzY dRiVeR : 2nd June 2020 at 12:32. Reason: Typo
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Old 2nd June 2020, 08:25   #4281
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Originally Posted by CrAzY dRiVeR View Post
How serious can be the impact of the rating downgrade by Moody's? The markets have been on a continuous uptrend for the past few weeks despite Corona, partial lockdown, falling customer demand etc. Will Moody's be just another hurdle or the party is likely to get over soon?
Unlikely to have any impact. Moody was the only rating agency that upgraded India last year, while Fitch & S&P500 did nothing. Now Moody has just reverted back to its old rating that is equivalent to the ones assigned by other rating agencies - a notch above "Junk" status (meaning high risk)

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Last edited by CrAzY dRiVeR : 2nd June 2020 at 12:33. Reason: Typo in quoted post.
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Old 4th June 2020, 12:13   #4282
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Default Re: Do you play the stock market

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Originally Posted by Pancham View Post
Opened a demat account with Zerodha.
I am using ICICI Direct for last many years for occasional buying/selling. It increased during lock down period. Considering high brokerage of ICICI Direct, I opened a Zerodha account yesterday. Completed the online process at 8.30 PM and got the login details mail in 7 hours at 3:30 AM today (I have an IDFC Bank account and Zerodha has some tie-up with them). The process is very fast.

Do I need to courier them five page Power of Attorney? Did you also send it? I opened just equity trading account, no F&O, commodities, currency trading or mutual funds.
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Old 4th June 2020, 16:38   #4283
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Default Re: Do you play the stock market

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Originally Posted by mukeshgoel View Post
Do I need to courier them five page Power of Attorney? Did you also send it? I opened just equity trading account, no F&O, commodities, currency trading or mutual funds.
I was told that without the POA, I wouldn't be able to sell shares on my Demat a/c. However, I checked a few months back, and even without the POA, I could sell them.
Now, even without the POA, one would be able to sell the shares on the Demat a/c using a pin from CDSL. I have recently received it on my email registered with Zerodha. There is a restriction, however, as you could only sell shares worth 1 Crore a day.
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Old 4th June 2020, 16:58   #4284
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Now, even without the POA, one would be able to sell the shares on the Demat a/c using a pin from CDSL.
Thanks. I also got a 6 digit TPIN from edis@cdslindia.co.in. So, no hurry to send them POA. I will try a couple of buy/sell orders just to be double sure.

Quote:
There is a restriction, however, as you could only sell shares worth 1 Crore a day.
I don't see myself doing trades of more than 1 Crore a month in next few years.
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Old 4th June 2020, 18:28   #4285
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Default

I currently use HDFC Securities, and considering switching to Zerodha for F&O segment. I had created Zerodha account last year but never used it and did not send them POA documents either. I just checked now and I was able to login so my account is still active.

Do I need to complete POA formalities for just trading in F&O segment?
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Old 4th June 2020, 22:40   #4286
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Default Re: Do you play the stock market

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Originally Posted by RahuKetu View Post
Suven Life Sciences fundamentals doesn't seem good to me.Am I missing something? What are the positives based on which it can be bought?

I have invested small sums in Dabur, Berger Paints, Trent, Tata Global Beverages, Bata, HDFC Bank & HUL.
I haven't bought it.....but was just looking at options.

My watchlist - TVSelect, Fortis, SBIN, Wockhardt, Infy, HDFC
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Old 5th June 2020, 18:44   #4287
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Default Re: Do you play the stock market

Alok Industries which was acquired by Reliance industries is gaining 5% daily for nearly past 12-15 days. Doubled in less than a month. I bought it nearly 10 years ago for 21 Rs. It went down to 3-4 Rs. One month ago it was trading for 6 Rs., Today trading at 23 Rs.

Finally, I have reached breakeven position after 10 years.
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Old 5th June 2020, 19:03   #4288
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Default Re: Do you play the stock market

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Originally Posted by mukeshgoel View Post
I am using ICICI Direct for last many years for occasional buying/selling. It increased during lock down period. Considering high brokerage of ICICI Direct, I opened a Zerodha account yesterday. Completed the online process at 8.30 PM and got the login details mail in 7 hours at 3:30 AM today (I have an IDFC Bank account and Zerodha has some tie-up with them). The process is very fast.

Do I need to courier them five page Power of Attorney? Did you also send it? I opened just equity trading account, no F&O, commodities, currency trading or mutual funds.
I just completed the process of opening the 3 in 1 IDFC Zerodha account. POA is needed for 1 click money transfer to Zerodha to buy shares. Else you can use netbanking/UPI transfer. Netebanking has additional charges. I found 1 click useful.
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Old 5th June 2020, 20:25   #4289
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Default Re: Do you play the stock market

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Originally Posted by RahuKetu View Post
Finally, I have reached breakeven position after 10 years.
Can you let us know which God you pray to? What Puja needs to be performed to achieve such an outcome?

Actually, we are having lots of similar stories:

Yes Bank
Vodafone Idea
Ruchi Soya

This goes against the conventional wisdom that you have to cut losses if you see a large stock crash.
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Old 5th June 2020, 21:35   #4290
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Default Re: Do you play the stock market

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Originally Posted by alexgv View Post
POA is needed for 1 click money transfer to Zerodha to buy shares. Else you can use netbanking/UPI transfer. Netebanking has additional charges.
I think you understood it wrong.

https://zerodha.com/z-connect/zerodh...selling-stocks
Quote:
when you sell shares, we debit it from your demat account and give it to the exchange. To debit shares from your demat account when you sell on the exchange, brokerage firms have until now taken a POA (power of attorney) over the demat account.
One-click money transfer to Zerodha has nothing to do with POA. You must have digitally signed an online authorisation form for that.
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