General Trading Chat

[amitrandive]

Just noticed Bosch as the top gainers in Nifty today . wasn't aware that it was included in Nifty50 ..

Its option chain is terrible, should such stocks even be allowed in the Nifty ?

http://nseindia.com/live_market/dyn...-&segmentLink=17&symbolCount=2&segmentLink=17

also, some one sold 2 lots of 21000 @ 600 on 23rd June. Bosch closed at 22,901 ttoday .. ! Sexytrader, was that you !?

Bosch replaced IDFC in June series .. this is worrying, out of all the stocks on NSE they found this stock to be a part of the Index ?!

Yes absolutely right.Has huge spreads and is totally untradeable.
I don't think we can have many investors/traders when the stock is trading at 22k plus for one stock.

Such stocks should not be a part of an active index such as Nifty, it will skew the data of the index.

Eligibility Criteria

Selection of the index set is based on the following criteria:

Liquidity (Impact Cost)

Float-Adjusted Market Capitalization

Float

Domicile

Eligible Securities

Other Variables

Liquidity

For inclusion in the index, the security should have traded at an average impact cost of 0.50 %or less during the last six months, for 90% of the
observations.

Impact cost is the cost of executing a transaction in a security in proportion to its index weight, measured by market capitalization at any point in time. Thisis the percentage mark up suffered while buying/selling the desired quantity of a security compared to its ideal price -- (best buy + best sell)/2.

Float -Adjusted Market Capitalization

Companies eligible for inclusion in the CNX Nifty
must have at least twice the float-adjusted market capitalization of the current smallest index constituent.

Float

Companies eligible for inclusion in the CNX Nifty should have at least 10% of its stock available to investors (float). For this purpose, float is st
ocks which are not held by the promoters and associated entities (where identifiable) of such companies.

Domicile

The company must be domiciled in India and trade on the NSE.

Eligible Securities
All common shares listed on the NSE (which are of equity and not of a fixed income nature) are eligible for inclusion in the CNX Nifty index. Convertible stock, bonds, warrants, rights,and preferred stock that provide a guaranteed fixed return are not eligible.

Other Variables

A company which comes out with an IPO is eligible for inclusion in the index if it fulfills the normal eligibility criteria for the index -- impact cost, float-adjusted market capitalization and float -- for a three-month period instead of a six-month period.

Timing of Changes

The index is reviewed semi-annually, and a four-week notice is given to the market before making any changes to the index constituents

Bosch have all the Criteria

:thumb::thumb:

Same applies to Warren Buffet's company stock.
This stock is listed in the US markets at 2 lac dollars plus price.It satisfies all the criteria for inclusion in the index,but not included in any of the major indices of US.

Two different stocks , one BRK.A trades at 2 lac dollars plus and the other smaller counter part BRK.B trades at 137 dollars (CMP).

Feasible for traders who want to trade , highly liquid due to less price and does not skew the index data if included in the index.

Just imagine BRK.A has a daily range of around a 1000 dollars.

They can do the same for companies such as Bosch, MRF,Eicher motors,etc.

 

[XRAY27]

Same applies to Warren Buffet's company stock.
This stock is listed in the US markets at 2 lac dollars plus price.It satisfies all the criteria for inclusion in the index,but not included in any of the major indices of US.

Two different stocks , one BRK.A trades at 2 lac dollars plus and the other smaller counter part BRK.B trades at 137 dollars (CMP).

Feasible for traders who want to trade , highly liquid due to less price and does not skew the index data if included in the index.

Just imagine BRK.A has a daily range of around a 1000 dollars.

They can do the same for companies such as Bosch, MRF,Eicher motors,etc.

Amit !!!

Off course if they qualify then it has to be introduced..they are thousand stocks at your disposal to trade..btw if trader capital is decimal what can any exchange do

 

[kaalchakrasamay]

BNF
Give a small push and give me my level

Edit
Got it, just around it.
I knew it posted it :lol:

 

[rahulmalik]

BNF
Give a small push and give me my level

and this for long / short ?

 

[SwagatN]

Its upto traders who to use VP's & Forced VP's in trades ....again there is more advanced/forced VP's we can use ...but it all depends of traders and how they use it in sideways type market if we use forced VP's then it will ocures many times whip/unnecessery trades ...its my personal experience ...it may be differ to you and others
Okey thats it from my side.....

Vijay Ji, I think today;s low at 8405 will be a true VPL since it has taken out the previous mph on the minor downtrend.. Right ?

 

[kaalchakrasamay]

and this for long / short ?

For long
But already done with

Will now wait for second one

 

[amitrandive]

NF futures at a 5 point discount to spot ?

 

[kaalchakrasamay]

NF futures at a 5 point discount to spot ?

Bhai, this is going on since last 2 months.
And why NF only, BNF is also in same boat.
Currently 16 points discount

 

[rahulmalik]

NF futures at a 5 point discount to spot ?

this and worse, has been there since 7950


seemingly we may close flat today ( 8400 / 8450), since greece voting is on sunday

 

[TradeJoker]

come on 8500 :clap: