Changes in margin requirements from 1st September 2020: Zerodha

 There two major regulatory changes from 1/09/2020.

* mathod of  pledging stocks, and 

* Upfront margin requirements ( Stocks and F&O on NSE BSE& MCX) 

New pledging system

Until now, when you pledged stocks as collateral to receive margins for trading F&O, you had to move it from your Demat account to the broker and in turn to the clearing corporation. Going forward, the stock will continue to remain in your Demat account and can be directly pledged to the clearing corporation. Over the last weekend, we have unpledged all securities which were pledged with us to the customer Demat account, and many have repledged it using the new mechanism 

New margins system

There are going to be a bunch of changes from tomorrow with respect to margin requirements.

Sale proceeds from the holdings can be used to take a new position

We are ready with a new system to debit shares from your Demat and make an early Payin to the exchange on the day it is sold. By doing this, we can ensure that you can continue using the full value of sale proceeds from your stock holdings as soon as you exit them to enter new positions — other stocks or F&O positions. While you might hear that this isn’t allowed at some other brokerage firms, nothing will change for our customers.

Using sale proceeds from T1 holdings

Similar to your stock holding, you can sell the T1 holdings (stocks bought the previous day and yet to be credited to your Demat) and use the entire value of the proceeds to buy new stocks for delivery. But there is going to be a small change here if you want to use the proceeds from T1 holdings to trade F&O, you will be able to use only 60% of selling value. 

Intraday profits can be used for new position only after it is sattled

Currently, you can use intraday realised profits for taking new positions on the same trading day. Going forward, you will be able to use it only after 2 days in case of equity/stocks and the next day in case of F&O. This is because the settlement cycle for equity is 2 days and 1 day for F&O, which is when the profits get credited to your account from the exchange only then. So intraday equity profits earned on a Monday can be used to trade more only on Wednesday, and intraday F&O profits earned on Monday can be used to trade more only on Tuesday.

Option sell credit can be used only to buy options on the same trading day

When you exit your long/buy option positions or enter new write/short options, the proceeds or credit of option premium can be used for only new long/buy option trades on the same trading day and only within the same segment (proceeds from equity options can’t be used for currency or vice versa). You can use this proceed or option credit for all other types of trades only from the next trading day.

Regards,

Team Zerodha

Thank you 

" Let's create wealth together "

Multibagger shares of 2020

Hey guys !!!

Today we are going to discuss about the multibagger share, a small cap share& market leader in their sector, not only market leader but also global leader, actually it is multinational company and also listed in India.

If we check performance of these stock,


Return in 1 year = 214%
Return in 3 year = 671%
Return in 5 year = 1744%


We can definitely call it money printing machine.

If you check stock's return in
 1 week= 16.19%
2 week = 22%
1 month= 24%
3 month= 58%
YTD= 140%
1 YEAR= 214%
3 Year = 671%
5 year= 1744%
10 year=4349%

You can see the big return if these stock,
Be patience I'm going to reveal the stock name soon.

Before I reveal the name let's check its chart,
On 19 Feb 2020 it has made high of rs3461/share and after the crash it has made low of rs 1826/share on 19Mar2020.  And after the recovery on the 10june2020 it is trading at around 4502rs/share, if you calculate it's return after making the low on 19March.  It has have return of rs 146% in just 2/3month.

And the stock name is GMM pfaudler, you can check its business model on company's official website.

We should not make any position only after looking at it's high return, before you make any position you should check RSI, RSI is currently showing 78.69, which indicate this share is in overbought zone, so fresh position in this share could be risky. You can put these share in watchlist, and can make position when it is safe.

You can see shareholding pattern of the GMM pfaudler company in above picture.
Promoters if this  comapny is pfaudler inc. (USA).

Market capitalisation : 6592crore (small cap)
Valuation of these share  is little expensive but also there's no competition for these company.

Face value: 2.00
EPS: 48.66

This is small research from our side but our opinion is wait and watch, fresh position could be little risky this time.

Thank you guys..

Latest share market news

Hey guys ...!!

Another new trading week is starting from 1st June to 5th June.

Market will react on this 8 big news...

1. Lockdown extension & unlock 1.0
Extension uptown 30th june in containment zones. Easing curbs in other areas:

* No Restrictions on inter-state & Intra- state movement.

* Reopening of malls, hotels and restaurants- possible in near future

* Reopening of Educational institutions, international air travel, and metro operations will he decided in the third phase.

2. Covid 19 situation 

● Current count above 1.8 lacs
● New cases around 8000 per Day
● Deaty toll above 5000

3. Us-China tensions 
@  Estimation of special status to hongkong possible

@ stopping Deal Use if technologies

@ Banning if chinese students doing research in US

4. Q4 Earnings

•  June 01: orient electric and v guard
• june 02: interglobe aviation, motherson Sumi and zydus wellness
• june 03:  Aurobindo pharma and BPCL
• june 04: PI industries, NIIT and SRF
• june 05: L&T and Gujarat gas
• june 06 : Relaxo

5. Auto sales

• auto sales number for the month of may
• April, zero sales were reported by most companies
• nifty auto is up over 11% in the last one month.

6. Macro Data

Purchasing managers index(PMI) data older the manufacturing and services sector for the month of may.
05,june: data for Bank loan& Deposit growth

7.nifty outlook 
Nifty has broken its range and decisively surpassed 9500,
9600 looks crucial, let's see if nifty Could hold this level, next levels to be watched around 9750- 9800

8. F&O cues

Maximum put OI was at 9000 followed by 8500 strike. Maximum call OI was at 10000 followed by 9500 strike.

Option data suggested that 9200 could be immediate support followed by 9000 while the resistance is around 9600.


This are the big 8 news for coming trading week.

"Let's create wealth together"

India's No.1 share

Hey guys !!

Today we are going to talk about Larsen and toubro.

Reason behind Bajaj finance crash

Hey guys !!!

We have already seen big crash in bajaj finance stock. Whenever we find a crash in shares we try to find out the reason for that particular crash. And during the crash if  any commentary comes from the management it is very reliable for the market, traders& investors.

Bajaj finserv's  managing director Sanjeev Bajaj gave commentary on this fall. If we check bajaj finance's chart we can see the high of rs 4923 on the date of 20 Feb. And after the continuous fall bajaj finance made low of rs 2104 on 24March. If we compare high to low it is big fall of about -57.26%. Still fall is continue and made new low on 27 Apr, of 1915. And on the 26 May, it made new low of 1822. Situation is very week in the bajaj finance. If you compare all time high to 26 may low, it is fall of  about -63%.
 After this big fall we really need to know about the weakness in the chart.

Sanjiv Bajaj gave commentary at Economic times,
  6 month moratorium unnecessary, it can alter credit behavior of customers: Sajiv bajaj.

I reccomend u to visit economic times website for full commentary, we can't discuss full commentary here so we will discuss few main points only.

Latest sharemarket news

Five rules for long term investment

Hello everyone,

Many people connected to share market, wants to invest for a long term. Because they know very well  that healthy weath can be created only with a long term investment.

Long term investment is not as tough as we think, if we follow some rules with our long term investment.

Learn 5 best rule for long term investment.

Rule 1:- Bet upon the leaders & The strongest 

If you want to invest for a long term (10/20 years) then you should invest in market leaders/sector leaders. You shouldn't invest in newly listed company who can't even survive in market for 10 years. So you can only bet on leaders, like if you are investing in FMCG then hindustan Unilever, ITC could be good choice. If IT sector then TCS, Infosys could be good choice, if you bet on oil sector then reliance. In short you need to invest in market leaders& sector leaders.

Rule 2:- Diversify wisely

Let's suppose if you have selected good stocks like tcs, Infosys, hUL, TCS but you can't just invest in it. Here you will need professionals, who can suggest to diversify  your portfolio. Because growth is very important factor in investment.

Rule 3:- focus on Big picture,  not on Micro Events

You are investing for long term then you don't need to think for micro event, you only need to focus on big pictures.

Rule 4:- understand the risk factors and be mentally prepared for volatility on the way 

Stock market is like rollercoaster, if you invest 10lac, then you need to know first that before you earn 2lac from sharemarket you can even be in lose of 2lac if you can't be mentally prepared for this situation then share market is not for you. You can Put your money in Fixed Deposit where risk in zero.

Rule 5:- regular monitoring and exercise change when desirable

Regular monitoring is also important because future is unexpected, for example once Nokia was a market leader in mobile company  and now it is almost vanished from the market.

This 5 basic rules are very important for the long term investment, if you invest with following this rules then you are more likely to create healthy wealth from the share market.

"Let's create wealth together"