Nothing to do for Short term trades as of now

Blog meant for 29 June 2017 Thursday

Dear friends,

A quiet day for markets too as Nifty struggled to rise and finally closed weak and down by 20 points. Tomorrow is the last day for the Futures & Options contracts for June and hence markets may be a little volatile with movements on both sides.

The Asian and European markets have closed in negative territory but US markets are quite positive today as of now.

As per 30 days moving average, Nifty is in Don’t buy zone. The indications for short term for individual stocks are as follows:

THE HOLDS ARE – HDFC BANK,  HDFC, DIVISLAB, MARUTI, Reliance

Wait to Sell –ITC, Titan

Wait to Buy – YES Bank

Don’t Buy –  Axis Bank, LUPIN, BHEL, ONGC, Infosys, TCS, L&T, , ACC, M&M, SBI, Asian Paint

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Question of the Day

Question –

When I Sell a particular Stock for short term as per technical analysis graph and if I have the same company share even for long term then the first few shares which I bought for long term gets sold as per FIFO method instead of the shares I specifically bought for short term. How to solve this problem?

Answer –

This is an expected problem faced by investors. This is the reason we have advised in the Workshop to have two demat accounts – one for long term and one for short term. You can open an account in your name and another in your spouse’s name or open two demat accounts in two different brokerage companies. This is because we cannot maintain two accounts in the same brokerage company in the same name.

An investor is allowed to have any number of demat accounts in their name as long as they are in different companies and all linked to one PAN card. Its a crime to have more than one PAN Card.

By having separate accounts for long term and short term, there will be no confusion for you nor the income tax authorities to understand which shares were bought when and the problem of having sold long term shares will not arise.

In the long term account, you can keep accumulating shares and in the short term account few regular buy and sell transactions will take place.

All the best!

Dr.Bharath Chandra & Rohan