SRINIVASAN S

[SRINIVASAN S]

Thanks for your feed back sir!

[SRINIVASAN S]

Intraday analysis linked to ‘rate of change (speed at which stock price changes)’ and variation in trading volume with respect to time.  Decision should be made quick.

But Positional trade analysis calls for long term returns which are done with the help of both Fundamental and Technical Analysis.

 

[SRINIVASAN S]

It is mandatory to close the positions in intraday trading on same day.

If stocks were sold, it should be closed by buying pack, failing which following process happens

a)   When you sold short (seller shortage) those shares there was someone on the other side who bought them. He won’t get delivery. So your broker will try to purchase them in a buy-in auction market on T+2 day and the settlement of the auction shall be done on T+3 day (where T is the transaction day, holidays are not included).

b) If the auction is successful the defaulting client (you) will have to pay the actual auction price + Brokerage + Penalty( this depends on your broker)

<span class=”green2 bold_text”>c)What will be the auction price</span> – That depends on the price of the stock on auction day. The lowest or minimum offer price in auction can be 20% below the closing price on a day prior to the day of auction. If it’s lower then you might gain but this difference is not given to you it goes to Investor Protection Fund (some brokers pass the gain to you), if it’s higher you will have to pay the difference. Your broker will send you an email at the end of day with the detailed information.

If the auction is not successful, no one is ready to sell in the auction (generally happens when the stock hits upper circuit), the sell transaction is cancelled by the exchange and the defaulting member has to pay the highest price prevailing from the day of trading (T) up to a day prior to the auction 20% above the official closing price on the day prior to auction day, whichever is higher. The buyer of those shares gets a full refund.

[SRINIVASAN S]

Indicators of momentum stocks in intraday:

1) Rate of change (ROC)— which measures the speed at which stock price is changing within defined time period

2) Trading volume—Traders prefer to buy stocks that are rising with high volume and sell stocks that are falling with high volume.

[SRINIVASAN S]

Yes, global market impact will be seen in intraday price movements

Asian marts (Japan, Singapore) markets open before our opening, which has effect of previous day US market performance.

Also, when European market opens. Indian market going to close few hours from then and  Indian market becomes more active with  more participation/FII trades.

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