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"

Bajaj finance new target after Q4 results

Hey traders !!!

Bajaj finance has declared Q4 results on 19 may, and we can see bad impact of covid 19 on bajaj finance Q4 results. Else result will be quite good. 

After Q4 results brokers has gave target on bajaj finance....

1. Brokerages have offered mixed reviews of bajaj finance March Quarter earnings. The company on tuesday posted a 19 % fall in march quarter consolidated profit at rs 948 crore due to Covid-19 disruption.

2. The NBFC had reported Rs. 1176 crore profit for the January - March quarter of FY19.

3. Due to corona virus pandemic and the lockdown, Bajaj finance lost 10 productive days during the quarter resulting in the lower acquisition of nearly 1million loan accounts and when AUM fell by approximately rs 4500 crore.

And let's  come on different different brokers commentary on bajaj finance target after Q4 results.

1. YES Securities: the brokerage house has retained its 'reduce' rating on Bajaj finance with a price target of rs 1825, as the prolonge covid episode is expected to cause deeper impact on growth and asset quality. 

2. ICICI securities: it has maintained a 'hold' rating on the stock with a price target of rs 2000. "Lower growth and higher uncertainty warrant being cautious in the near term till clarity on lockdown emerges," the brokerage said.

3. Motilal oswal 

  Financial services: the brokerage house has 'neutral' rating on the stock with a price target of rs 2210, the brokerage has cut Bajaj finance (BAF) earnings estimates by 10 percent and 5 per cent for FY21 and FY22, respectively, to factor in lower growth.

"We remain convinced of the strength of BAF's business model to deliver better than sector returns over the medium to long term and are comfortable with the multiple.

If you check technical graph of bajaj finance then you will see a high of rs. 4923 on 20Feb. 2020,  and made low of rs 1915 on 27 april. If you compare high to low it is -3008 which is -57%. If you want to invest for long term then bajaj finance could be a good choice for you.

"Let's create wealth together"

Latest share market news

Hello everyone
From the 11th may another new trading week will continue till 15th may.

This trading week will react on 8th big news

1. Covid 19 situation 
Number of covid 19 cases crossed 65000 and mumbai has emerged as an epicentre with over one-fifth of the total cases. 2000 patients have succumbed to the disease. There is sharp rise in the patient count, market participants will be closely monitoring the  evolving situation.
But situation of seems to he stabilising in Europe. And fully in control in China and US situation is said to be peaking, though in india, it is yet to peak.

2. Govt. Policy toward Lockdown
We would have completed 53 days of lockdown by end of next week. We will soon come to know if the government is planning to extend the nationwide lockdown beyond may 17.
Reports suggest that the centre could extend lockdown further in red zones. However, experts feel that ant extensions of lockdown beyond 17 may could be a big risk for the economy.

3. Q4 earnings
March quarter earnings will be in full swing this week. Mid and small cap companies like wockhardt and Godrej properties will announce results on may 11, they will be followed by bandhan bank and nestle the next day and kotak mahindra bank and maru Suzuki on 13 mat, biocon and Manappuram finance results will be out on may 14, while Nippon AMC and L&T tech will disclose their earnings on May 15.

4. IIP and inflation date due
On the macro front, industrial production data for March and CPI inflation for april will be released on may 12, wpi inflation will be announce on may 14.

Foreign exchange reserves for the week ended may 8 and balance of trade data for April will be released on may 15.

5.USD-INR situation 
6.cruide oil
7. Us-China trade war revival 
Globally, the markets were cautious last week due to the likely collapse if phase 1 trade agreement between Us and china.
But, reports suggest that the meeting between officials of both countries was positive. This could be support equity markets.
Both sides agreed that in spite if the current global health emergency,  both countries fully expect to meet their obligations under the agreement in a timely manner, Reuters said, quoting the joint statement of teo trump cabinet officials.

8.Technical view.
The overall trend for nifty continues to remain sideways to negative until it remains 9400-9500 levels decisively, experts feel. Any sell off may push nifty towards 9000 or even lower towards 8800.

"Let's create wealth together"

3 best shares for year 2020

Do you want to know about 3 best shares of the 2020?
Do you want to know about those 3 stocks which can be multibaggers in future.

When market shows big  corrections, we need to take big decisions.


* during the correction we should buy best shares, at best price.

* if you make SIP in this shares your average will be less.

* these share is not for only 3to4 year, this shares are for forever.

Q. Why we invest in shares?
A-  to become wealthy/rich/billionaire/millionaire. So we can't get there in 2 to 3 days. It takes long term investment, that's why I always suggest to invest for a long period.

So today I will suggest you 3 shares which could be multibagger in future.

How can we find these shares?

During the crashes valuation of those shares are very attractive.

These shares falls less than others shares during the crashes.

1. HDFC AMC

Hdfc AMC is fundamentally very strong company,  even you can call it profit making machine. My opinion on HDFC amc is clearly buying. HDFC amc is currently trading at 2600. You can make SIP for long term in this share & if it falls below 1500, you should do bulk buy.

2. IRCTC

Irctc has a monopoly business structure. There is no competition with irctc yet, IRCTC has great future ahead , with catering and ticketing business in indian railways. Irctc is currently trading ar 1200rs/ share, even during this lockdown u will get these even cheaper than this price. Start adding these shares, and don't sell. It will gives you big return. It could be multibagger stock in future.

3. Nestle

Nestle has product like coffee and maggie which has very good growth potential.  And continously giving more than 20% yearly return. And has a potential to become multibagger shares in future.


There are the 3 shares where u can invest your money through the SIP or you call also bulk buy when these shares trade below the fair value. Start adding these shares in your portfolio.


"Let's create wealth together "

BofA new target on banks

6 big reason behind 500 points fall in nifty

There's 6 big reasons behind the 500 points fall in nifty on monday 4th may 2020.

1. Q4 Earnings Disappontment & fear for worse.

March quarter earnings so far have disappointed investors. On thursday, Reliance industries, hindustan Uniliver and Tech mahindra joined peers who missed street estimates, acting as a dampener when markets reopened after and extended weekend.

It should be noted that the impact of country wide lockdown was just for a week until march. In the june quarter earnings, the real impact of the lockdown will be known.

2. Lockdown 3.0

The second extension of the lockdown, which will he into force till may 17, eased restriction into certain areas but analysts feared supply side disruptions. 

The government has designated 130 districts as red zones including most metropolitan cities, which will remain under stringent lockdown. About 284 districts have been classified as orange zones, and the remaining 319 districts as green zones.

Both orange and green zones will be allowed significant relaxation on the level and kind of economic activity undertaken on a graded basis. However, interstate transport via trains, flights and roads remain barred.

3. US- China face off

US and china which barely reaches a deal last year to end the 18 month old trade war, are now engaged in another tussle threatening more pressure on world economies and hurting the market sentiments back home.

The spat over the origin of the coronavirus put the brakes on optimism about an economic re-start even as countries around the world ease restrictions. This comes at a time when most major economies are expecting a contraction of GDP in near term.

The US tried to pin the blame of the pandemic on China, accusing the virus emerged from laboratory in the central chinese city of wuhan. 

4. Nifty top 10 drag

5. Severe Fall across all sectors

6. Weak Global cuses.

This are the 6 big reasons behind the nifty 500 points fall.

"Let's create wealth together"

Trading vs ingesting

Today I'm writing this article for those people who  are thinking to start investing with minimal amount of about 5000 to 10000rs.

Everyone thinks earnings in share market is very easy like they think buy shares at 1000rs and sell them in 1100 so you will get 100rs profit. It is really simple but when you do it practically it is little difficult.


If you want to earn in share market then first of all you will need to open Dmat account. It is very easy to open Dmat accounts, even we have posted article on it.

In the market  there's 2 ways to earn money. 99% people follow 1st one and rest are follows 2nd one.
1st is trading where traders buy shares and sell it within a day or in the 1/2 month.
2nd is investing. Only 1% follow this strategy.

If you look at traders, they are working day and night but still most of they are not rich. And another side investors who are not even working everyday in market but still they are rich. Investing is only a great way to become a rich in market. Yes few traders are successful but being successfull in trading is really hard. And in investing being successfull is quite easy you only need lots of patience become a rich.

If you start trading at the age of 20 and you buy and sell shares every day and when you reach your age 60 your Dmat account is still empty because you are trader. It you are trader than At the end of the game you dont have any asset.

If you focus on investing, look at the  rakesh jhunjhunwala,charlie manger,warren buffet, trump they believe in investing.

If you are looking for long run  then I have 2 strategy for you
1. Do not sell anything
2. Don't look at price

If you are looking for long term investment then price doesn't matter the only thing matters is number of shares you have.

In long run investing only thing matters is number of shares. If you have share in large quantity then you will get big dividends and even you will get compounding return benefits and some time u will also get benefits of bonus shares and split shares.

If you want to create great wealth then investing could be a really great way.

So stop trading and start adding shares to your Dmat account. Investing is best thing to do in share market.

If you choose some best company with best future growth then your small investing of 5000 can be more than 1cr. Don't forget about infosys and wipro.

Go and check our article we have posted many articles on investing.


"Let's create wealth together"

Inverse head and shoulders pattern

What is inverse head and shoulders pattern ?
An inverse head and shoulders pattern is also called head and shoulders bottom. It is same as head and shoulders pattern but inverted. This pattern is identified when the price action of a security meets the following characteristics:the price falls to a through and then rises the price falls below the former trough and then rises again. Finally, the price falls again but not as fast as the second trough. Once the final trough is made, the price heads upward, towards the resistance found near the top of the previous troughs.

The inverse head and shoulders pattern is also as popular as head shoulders pattern. This pattern indicates the end of the downward and starts of the upward.

What does an inverse head and shoulders tell you?

Investors typically enter into a long position when the price rises above the resistance of the neckline. The first  and third trough are considered shoulders and the second peak form the head. A move above the resistance, also known as the neckline, is used as a signal of a sharp move higher. Many traders watch for a large spike in volume to confirm the validity of the breakout. This pattern is the opposite of the popular head and shoulders pattern but is used to predict shifts in a downtrend rather than an uptrend.

A suitable profit target can he ascertained by measuring the distance between the bottom of the head and the neckline of the pattern and using that same distance to project how far proce may move in the direction of the breakout. For example, if the distance between the head and neckline is ten points, the profit target is set ten points above the pattern's neckline. An aggressive stop loss order can be placed below the breakout price bar if candle. Alternatively,  a conservative stop loss order can be placed below the right shoulders of the inverse head and shoulders pattern.

An inverse head and shoulders pattern in comprised of three component parts:

1. After long bearish trends, the price falls to a trough and subsequently rises to form a peak.
2. The price falls again to firm a second trough substantially below the initial low and rises yet again.
3. The price falls for a third time, but only to the level of the first trough, before rising once more and reversing the trend.

Limitations of an inverse head and shoulders
Like all charting patterns, the ups and downs of the head and shoulders pattern tell a very specific story about the battle being waged between bulls and bears.

The initial decline and subsequent peak represent the building momentum of the prior bearish trend into the first shoulder portion. Wanting to sustain the downward movement as long as possible, bears try to push the price back down past the initial trough after the shoulder to reach a new low. At this point,  it is still possible that bears could  reinstate their market dominance and continue the downward trend.

However,  once price rises a second time and reaches a point above the initial peak, it is clear that bulls are gaining ground.  Bears try one more time to push price downward but succeed only in hitting trough. This failure to surpass the lowest low signals the bears' defeat and bulls take over, Driving the price upward and completing the reversal.

"Let's create wealth together"

Head and shoulders pattern

What is a head and Shoulders pattern  ?

A head and shoulders pattern is a chat formation in technical analysis that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. A head and shoulders pattern describes a specific chat formation that predicts a bullish to bearish trend reversal. The head and Shoulders  pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.

Latest share market news

As we all know market always react on news and events. So from the 27april another trading week is starting and end on 30 april. As on 1st may is holiday because 1st may is maharashtra day. So this trading week will end on 30April.

Market will be closed on may 1, on occasion of Maharashtra Day.

1.coronavirus count
The number of covid patients in india has passed 26000 with 850 death, and 6000 recovered.  Worldwide the number of fatalities are close to 2lakh over 1/4 of whom have died I'm the US some states in the US have also decided to ease lockdown even though the cases have continued fi rise rapidly.

2. Lockdown decision
This week, we will know whether the government will end the nationwide lockdown on may 3 or if it will be extended further.
While efforts are on to curb the spread of the novel coronavirus so that the economy can hit reopened, rising number of cases in Maharastra, the National Capital region(NCR), Gujarat and Madhya pradesh, among the other states, has led to concern over what happens next.

3.scare in Debt market : Franklin Templeton issue impact
The franklin Templeton fiasco has scared investors and they are rushing to withdraw funds. With the lockdown having a devastating effect on the balance sheets of the companies, fears of downgrades and defaults have increased. This in turn has increased volatility in the banking stocks.

4. Q4 earnings
A number if banks and insurance companies will come out with Q4 earnings this week, among major companies, Ambuja Cementsz HDFC life insurance company and indusind bank will declare their result on April 27, axis bank on April 28 while Hindustan Unilever and Tech mahindra result will be out on 30 April.

5. Bigger stimulus Package
The market stabilised and has been moving in a particular range in the last couple of weeks after a sharp fall. Apart from a rally in global peers, this is based on hopes of a big stimulus package.
Market is awaiting round two of an economic stimulus package from the government. Although given the limitations government has with its finances, not much is expected.

6.Technical view
The nifty50 formed Gravestine Doji patterns on daily charts on April 24, indicating lack of conviction among bulls.
The index consistently failed to sustain 9300 levels and has been struggling to head higher since the past few sessions.
Broad range could be 9500 to 8800.

7. F&O Expiry
  The options data indicate that the maximum put base has shifted to 9000 followed by 8800 strike.
The significant unwinding was seen in 9000 and 9300 put strikes, which hints that put writers may be covering their shorts fearing that Nifty may slip below 9000 levels.
The call writers were active in 9300 and 9500 strikes, where 9500 holds the maximum open interest. "So continuous call writing at 9500 hints that nifty is unlikely to surpass 9500 in the April series.

This are few news& events on market will react this week.

"Let's create wealth together" 

Five over bought shares

Today I'm going to share some stocks which are in over bought zone.

Five Over sold shares

Today I'm going to share about 5 shares which are highly over sold.

4 Best Shares for long term investment

 Due to Covid-19, slowdown in economy is expected. Not only in india but all around the world's know about the slowdown. & it is logical.

There's some sector where position can  be very good In coming years.

We have 4 best stocks which will multiply your investment in long term investment.

1. SBI LIFE INSURANCE COMPANY LTD.

SBI life insurance company is currently trading at 725rs.
If you check it's return you will see...
1week= +0.52%
2week= -4 74%
1month= +31.62%
3month= -28%
YTD =-26.7%
1year= -14.27%

Some experts says Demand in Insurance company will increase after this pandemic. And eventually this insurance company will get benefits. IF you are looking for long term investment SBI life could be a good option for you. It can be Beneficial for your long term investment.

2. HDFC LIFE INSURANCE CO. LTD

HDFC  life insurance co. Ltd is currently trading at 490rs. On23rd april  2020.
1week= +7.02%
2week= +6.68%
1month= +46.66%
3month= -17.79%
YTD =  -19.5%
1year= +26.79%

Investors who bought shares before 1 year is still in positive return of about 27% even After this Covid‐19 crash.

3. ICICI PRUDENTIAL LIFE INSU. CO. LTD

ICICI prudential life insurance company ltd is currently trading at 365rs.

1week= +12.47%
2week = +8.5%
1month = +54%
3month = -26.93%
YTD = -23%
1year = 0.31%


Also in this company if you bought shares 1year ago, today you are might not get big profit but you are at least not in negative returns. Even after this covid-19 crash.
Experts expects demand in insurance company will increase.

4. Icici Lombard general insurance co. Ltd 

SBI CARD Target