FIIs are selling and domestic institutions are buying.
It is obvious. If FII buys shares worth USD 100,000 today, Rupee is being traded at around Rs 60 per USD, he will get shares worth INR 6,000,000. Assume he buys a script A which was prized at 600. He will get 10,000 shares of script A. Tomorrow Rupee slips to 62, even if price of script remains same in value terms his investment in USD will become USD 96, 774. He will lose money, about 3 and half percent. Moreover if stock goes down there will be an additional loss.
Whereas for DII, it is beneficial. If today he buys same 10,000 shares at 600/share it will also cost him 6,000,000. He does not have to calculate future value of 6,000,000. Moreover, if Rupee depreciates, a domestic investor can sell stock and buy USD of same amount to generate 3.5% profit by doing nothing if permitted as business model! In that case, DII does not need to worry still stock slips by 3.5%. For FII, stock must perform better than 3.5% for break even if Rupee depreciates further.
With this, if tomorrow Rupee gives gap down opening at 9 am that will be reflected in opening of stock market at 9.15 am.
So glue to television set and see Rupee movement for first 15 minutes before any trade.
Keep selling real estate, banking. Buy IT, Pharma till Rupee stabilizes. This is no brainer!!!
Hold LT, DLF strategies.
Exit Sunpharma at cost if you could.Or exit if Sunpharma reaches to 915 within next two days.
Exit Ranbaxy option if it goes near 320-315 in cash tomorrow.
In my personal view, NIFTY should able to held at 5620-5610 level till expiry.
Buy Axisbank 1240 PUT at Rs. 15/-. Maximum loss Rs. 3750, unlimited profit potential. Exit if Axisbank goes near 1205-1200 in cash.
Buy TCS 1440 CALL at Rs. 10. If Rupee starts going down TCS again will see 1500 levels before expiry. Maximum loss 2500/-, unlimited profit potential. Exit if TCS goes above 1480-1485 in cash.
For long term:
KTKBANK and Vijaya bank corrected as expected. This is god buying level. Maybe they could go down further by a percentage or two.
Buy Jyotilabs at current level for target of 215.
Buy APTECH if it goes above 64 in cash for target of 85.
Buy TATA GI Beverage if it goes above 155 on EOD basis.
Disclaimer: This blog does not take any responsibility of your profit/loss
It is obvious. If FII buys shares worth USD 100,000 today, Rupee is being traded at around Rs 60 per USD, he will get shares worth INR 6,000,000. Assume he buys a script A which was prized at 600. He will get 10,000 shares of script A. Tomorrow Rupee slips to 62, even if price of script remains same in value terms his investment in USD will become USD 96, 774. He will lose money, about 3 and half percent. Moreover if stock goes down there will be an additional loss.
Whereas for DII, it is beneficial. If today he buys same 10,000 shares at 600/share it will also cost him 6,000,000. He does not have to calculate future value of 6,000,000. Moreover, if Rupee depreciates, a domestic investor can sell stock and buy USD of same amount to generate 3.5% profit by doing nothing if permitted as business model! In that case, DII does not need to worry still stock slips by 3.5%. For FII, stock must perform better than 3.5% for break even if Rupee depreciates further.
With this, if tomorrow Rupee gives gap down opening at 9 am that will be reflected in opening of stock market at 9.15 am.
So glue to television set and see Rupee movement for first 15 minutes before any trade.
Keep selling real estate, banking. Buy IT, Pharma till Rupee stabilizes. This is no brainer!!!
Hold LT, DLF strategies.
Exit Sunpharma at cost if you could.Or exit if Sunpharma reaches to 915 within next two days.
Exit Ranbaxy option if it goes near 320-315 in cash tomorrow.
In my personal view, NIFTY should able to held at 5620-5610 level till expiry.
Buy Axisbank 1240 PUT at Rs. 15/-. Maximum loss Rs. 3750, unlimited profit potential. Exit if Axisbank goes near 1205-1200 in cash.
Buy TCS 1440 CALL at Rs. 10. If Rupee starts going down TCS again will see 1500 levels before expiry. Maximum loss 2500/-, unlimited profit potential. Exit if TCS goes above 1480-1485 in cash.
For long term:
KTKBANK and Vijaya bank corrected as expected. This is god buying level. Maybe they could go down further by a percentage or two.
Buy Jyotilabs at current level for target of 215.
Buy APTECH if it goes above 64 in cash for target of 85.
Buy TATA GI Beverage if it goes above 155 on EOD basis.
Disclaimer: This blog does not take any responsibility of your profit/loss
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