@MohammedJunaid, Yes, it shall see further weakness ahead. Thanks
indiamarketoutlook
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Nice one sir...!!!
mklives
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so whts the stock call now? :) mega down move
turtlemove
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awesome !
k314
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Fantastic analysis and a big move!
sumangaddam
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Dear Jain,
I have been confusing about can we short the equity stocks for more than a day. I know as of now that shorting meant for intraday. Your reply meant a lot to me. Hope to receive reply which clears my doubt soon.Thanks in advance.
Regards,
suman gaddam
NeeteshJain
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@sumangaddam, The market trend is currently up but the movement remains stock specific, meaning that some stocks shall perform very well with the market and some shall do the opposite. Therefore, this stock was indicating a weakness when the market was moving up and therefore we shorted the stock due to its selling pressure in the market. Now, you can hold this stock until you see more sellers in the market in this one irrespective of market movements. Hope it helps. Thanks
indiamarketoutlook
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@sumangaddam, Short selling in Equity can not taken on a positional basis as it would impose penalty for not giving delivery of shares to the counter party in trade...
However Positional short selling of Equity stocks can be done through Derivatives i.e using Futures and Options.
- Futures is a contract between buyer and seller where both keep certain amount as margin with exchange. No actual delivery of shares happens just the difference of price is settled on a daily basis. If stock falls seller of the Futures contract is in profit and Buyer is in loss.
If stock rises buyer of contract is in profit and seller is in loss.
- In options there are 2 types - Call and Put option.... To take advantage of falling prices, traders can either sell Call option or Buy Put option to make money if stock is to fall down
Hope this gives you some clarity of thought
DO remember The Risk involved in Futures & Options is higher.