Re: [Trading for Profit on Nifty (India)!!!] New comment on Outlook for Friday " Infosys delivers what promise....

Dear Rajesh,

First thing is you have sold shares of Hindalco which are assets and will move in value in tandem with markets or company performance.

Later bought 5300 Call Option(CE) on the advise of broker, which is a derivative instrument where the underlying is Nifty Index, the value of the option moves based on movement of price of underlying i.e., in this case Nifty, the value of premium will move on the principle of 'time value for money' and also based on cost of carry.

Selling the options held also invites another leg of brokerage, usually, which if you can avoid pressurising the broker, then you may be able to recover at least current value.

Nifty moving to 5300 before this expiry i.e., 24.09.2009 is impossible.

with best wishes,

bkvrkrao

On Wed, Sep 16, 2009 at 10:42 PM, Rajesh Haldar <rajeshrocks.kolkata@gmail.com> wrote:

Hi,

Thanks for your kind effort and reverting back to me. Actually I am absolutely new in this stock market. What happend is, I was holding 19 Hindalco shares, suddenly the my RM from the India Bulls called me and told me to sell the Hindalco when it was going @121/share and also instructed me to buy 500(quantity) of Nifty 5300CE-Sept-24-2009 @ 2.10/share. I did not have any idea about the CE & PE shares. So I purchased that. My RM said that this share will reach by Rs.7 to 9, so it will result a huge profit. But when they sent me the electronic contract note then I found a double charge. Here goes the details:
500 shares @2.10= 1050
Service Tax =153

So total price was 1,153. But at the end of the contract note I found a charge of Rs.1000 extra and they mentioned that I need to pay 2153.

As on date this call is going @1.75. So I don't find any chance of profit. So what should I do now?

Please suggest.

Thank you inadvance.

Warm regards,
Rajesh Haldar

On Wed, Sep 16, 2009 at 10:52 AM, vrk rao <vrkr4u@gmail.com> wrote:

Dear Rajesh,

Your querry is not clear, since u have posted it on an old article written by me.

Please read the latest posting and give full details of the strategy whether it is for this month expiry and quantity bought etc., for enabling me to give my view.

Thanks

bkvrkrao

On Tue, Sep 15, 2009 at 10:04 PM, Rajesh <rajeshrocks.kolkata@gmail.com> wrote:

Rajesh has left a new comment on your post "Outlook for Friday " Infosys delivers what promise...":

Hi, I am new in your blog. I desperately needyour suggestion. actually I am very new in stock trading. Yesterday my RM from IndiaBulls gave me a call and suggested me to purchase Nifty 5300CE @2.15 and I did so, he told me to sell it within next few days and the price is expected to rise by Rs.8. So please suggest me what should I do now? Please help me. My email id:rajeshrocks.kolkata@gmail.com. Thanks..



Posted by Rajesh to Trading for Profit on Nifty (India)!!! at September 15, 2009 10:04 PM