NTPC

I am watching NTPC for a quite long time, it was on a flat for a while, and from Nov 20th, 2012 it started a downtrend. 24th Dec 2012, trading looks like coming out of downtrend and closed above the resistance. 

I buy this scrip for medium term, if the scrip crosses 156.50. At the moment yesterday closed at 154.60. 

I would like to buy this scrip for intraday tomorrow, buy at above 154.70 and take profit at 155.50

RK’s Super 9 Vs monthly 999

I am comparing RK’s Super 9 with RK’s monthly 999 plan.

Both plans offer same leverage and same charges for software. The only point of difference is the brokerage. Super 9 charges 9 + 9 per trade that Rs.18 for buy and sell. There is no brokerage per trade in Monthly 999 plan. So how do we compare?
In Super 9, every trade is charged Rs.18. Suppose if we do 60 trades in a month, then this charge goes upto Rs.1080 (Rs.18 x 60 trades). This means if we do more than 3 trades every day continuously then irrespective of the turnover, our monthly brokerage will exceed Rs.1080 in the Super 9 plan.
In Monthly 999 plan, even if we do 100 trades a month, the brokerage still remains the same.
So we need to make a decision here – 
  1. If our number of trades will be more than 3 per day, then go for monthly 999. 
  2. If our number of trades will be less than 3 per day, then go for Super 9.

Is it possible to earn more by limiting trades to less than 3 per day? Yes, it is possible provided we have a 100% successful strategy. Suppose if we have a highly successful strategy, then we will invest in just one trade per day with high stakes and you are done with just a small brokerage of Rs.18. But if you are less confident of your strategy and want to diversify risk, then go for monthly 999. .

RK Global vs Zerodha

Features of Super 9 compared with zerodha’s 20-20:

  1. Rs. 9 per Executed Order: I think it is per one-leg. For both buy and sell orders it may be 9 + 9 which is Rs.18. Compare this zerodha which is Rs.40. 
  2. Leverage: RK offers about 6 times exposure while zerodha offers almost 9 times.
  3. Software maintenance: Zerodha has no charges for software while RK charges Rs.99 for web version and Rs.299 for ODIN.
  4. Service Tax, STT: Both charge the same as its levied by Govt.

Example: We have Rs.1,000 in our account. In RK we can buy shares worth 6,000 (6 times) while in Zerodha we can buy shares worth Rs.10,000 (10 times). Suppose, a share is Rs.100, then in RK we will buy 60 shares and in Zerodha we will buy 100 shares. 

If the share price increases by 10 paise which is Rs.100.10, then in RK we will make Rs.6 (60 shares x Rs.0.10) and in Zerodha we will make Rs.10. (100 shares x Rs.0.10). RK P/L will be -12 (6-18) and Zerodha P/L will be -30 (10-40) In both cases we will incur loss but RK loss is less when compared to Zerodha.
If the share price increases by 30 paise which is Rs.100.30, then in RK we will make Rs.18 (60 shares x Rs.0.30) and in Zerodha we will make Rs.30. (100 shares x Rs.0.10). RK P/L will be be 0 (18 – 18) and Zerodha P/L will be -10 (30 – 40). RK breaks even faster than Zerodha at 30 paise profit which is 0.3%.
If the share price increases by 40 paise which is Rs.100.40, then in RK we will make Rs.24 (60 shares x Rs.0.40) and in Zerodha we will make Rs. 40 (100 shares x Rs.0.40). RK P/L will be Rs.6 (24 – 18) and Zerodha P/L will be 0 (40 – 40). This means by the time zerodha breaks even, RK moves faster into making profit. In other words, at 0.4% change in share price, RK gives you profit while zerodha is still at break even.
In conclusion, Zerodha’s leverage of 10 times is not so useful. RK’s leverage and Super 9 are good. 

Nifty

Nifty crossing 6000 mark is every traders dream, but this is holding for long. Every week, I expect it to break, but it is high time now. Its like Sachin Tendulkar on 100th 100. At the moment it looks more downtrend for a while. It has a strong support at 5788. It has to take the support, before it head towards the psycological mark of 6000. Big bulls holding their money to start buy. If it touches the major support of 5788, hitting of 6000 mark would take time and will be delayed by 2 more weeks.

Brokers

I am a retail trader, trading for the past 30 years. I came accross different brokers. It is hard to say who is the best broker. 

Thanks to the internet revolution, now a days, it is the computers talk on behalf of brokers. Trading is made easy, all you have to do is think about the your investments. Transaction will take in seconds. 

I tried Sharekhan, Reliance, ICICI, Indiabulls, RK global and Zerodha. I have varied experience with different brokers. In this 30years of trading, I never came accross a single broker who do good to the retail investor.

Predictions

Wipro closed below support level. Its the time for down trend. We predict Sell Wipro at current level (373) with a target at 355 and stop loss at 386.

Reliance Infra There was a correction today on steady uptrend for reliance infra, buy more at this support level, with a tight stop loss. Buy Reliance Infra at 513, with stop loss at 500 and target 535. 

Reliance Industries Buy at 827, with stop loss at 815 and target 845. The correction, just finished, and up on the go.

SBI Couldn’t break the resistance at 2313. Broken swing low today.  The rally which picked up last two weeks, has ended. Sell at 2260, stop loss 2340, book your profit at 2190. 

Infosys Continous streak of fall, will find a support here. Buy at 2285 with tight stop loss of 2262, book your profit at 2400.

Tata Motors It is at strong resistance to break, sell at 287 with stop loss 295 and book the profit at 275.

Nifty Broken swing low. Sell Nifty at the open and book profit at 5800, with stop loss at 5950.