Day Trading Stocks & Futures

[travi]

Saurabh Mukherjea of Marcellous Investment managers did a backtest of last 10 years all the stocks entered in Nifty 50 if one buys and holds for few years, the CAGR has been 40 % he says...I have not done this backtest but soon we will get to see his back test...but a fantastic observation based on solid research which we can use....even if we make 25 % CAGR consistantly over 10 years, we can be rich...

Taking this lead I plan to do my own backtest before investing money on this simple observation...

Smart_trade

It is very likely just going by face value of the statement. I have observed it too.

Those stocks that can displace any one for N50 will have huge growth momentum.
Plus they will be in LC category, so compliance, mgmt., business model will be at big scale to attract all kinds of investors.

 

[vikas2131]

 

[siddhant4u]

It is very likely just going by face value of the statement. I have observed it too.

Those stocks that can displace any one for N50 will have huge growth momentum.
Plus they will be in LC category, so compliance, mgmt., business model will be at big scale to attract all kinds of investors.

If a stock is added to Index (or about to be added), there will be huge demand from mutual funds and ETFs which have to track/follow/beat Index... resulting huge volume. Check out recent inclusion of Nestle

 

[TracerBullet]

Saurabh Mukherjea of Marcellous Investment managers did a backtest of last 10 years all the stocks entered in Nifty 50 if one buys and holds for few years, the CAGR has been 40 % he says...I have not done this backtest but soon we will get to see his back test...but a fantastic observation based on solid research which we can use....even if we make 25 % CAGR consistantly over 10 years, we can be rich...

Taking this lead I plan to do my own backtest before investing money on this simple observation...

Smart_trade

In future i also will try to find a more backtested way of investing, but below seems like a future looking statement. So need to predict what will be added rather than invest in what is being added.

From this article.
http://www.forbesindia.com/article/...ll-be-out-of-the-nifty-in-this-decade/56935/1

Going by the three trends identified above, the companies that appear to be potential Nifty entrants over the next decade include Pidilite, Berger Paints, Divi’s Laboratories, Marico, Info Edge, Abbott India, Page Industries, ICICI Lombard, Dabur and HDFC Life. (Disclosure: The first eight of these 10 stocks feature in most of Marcellus Investment Managers’ client portfolios.)

Whilst I cannot possibly tell you what returns the above companies will give you, I know that had I been clever enough 10 years ago to predict the names of the 20 companies that have entered the Nifty in the interim period, my portfolio would have compounded at 40 percent per annum.

 

[Smart_trade]

In future i also will try to find a more backtested way of investing, but below seems like a future looking statement. So need to predict what will be added rather than invest in what is being added.

From this article.
http://www.forbesindia.com/article/...ll-be-out-of-the-nifty-in-this-decade/56935/1

That is why we need our own backtest. We cannot predict what will ener nifty with any degree of certainty but on its inclusion we definately know that it has been included in that year on that date.

From 2013-14 there are 25 scrips which were included in Nifty 50...I have the names now I have to do the analysis of how much CAGR we got if we bought them when they were included and held till today.....yet finding out data for earlier years....

If simple mechanical way gives > 25 % CAGR,I am more than happy...

Smart_trade

 

[Sidz]

An amazing observation related to algo based trading:

Watch the movement of nifty jun 13000 ce.

Every three minutes, there is an automated buying of 2 Lots.

Again same automated buying of 13000 June CE and 11500 Jun PE.

Awaiting views from ST da/veterans if we should enter this trade by selling options

 

[Smart_trade]

Depends on what premium you get and where it takes your breakeven level...but we have budget in this period and statistically in next 2 years after general elections, maximum gains are made in the market...so consider these points.

Smart_trade

 

[Sidz]

Depends on what premium you get and where it takes your breakeven level...but we have budget in this period and statistically in next 2 years after general elections, maximum gains are made in the market...so consider these points.

Smart_trade

I was referring to abnormal increase of about 50% in premium because of automated bot buying. Anyways, noted your point

 

[Sidz]

By the way, he/she really has deep pockets. Since yesterday the purchase amount is close to 40 Lacs in premium buying.

 

[siddhant4u]

By the way, he/she really has deep pockets. Since yesterday the purchase amount is close to 40 Lacs in premium buying.

Is “it” buying or selling? How to know? Volume of 150 means one lot bought and one lot sold.