Indian share market Tips; Free stock tips, cash and future tips for December 20, 2013

Updating on all trading days

Five stock market tips are given free for today's (December 20, 2013) trade on 'The Indian stock market'. This include one index future tip (BANKNIFTY future tip), one stock future tip and three intraday cash tips. Be cautious while trading.
Trading strategy
 Always keep stop loss. After achieving first target (T1) move your stop loss to just below entry level.After achieving second target (T2) move stop loss to first target (T1).

  

BANKNIFTY Future Tip 20.12.2013

BANKNIFTY Future DECEMBER 26 B-11255 T-11300,11400,11590 SL-11210
S-11045 T-10920,10775,10630 SL-11420

Stock Future Tips 20.12.2013

TECHM Future DECEMBER 26 B-1807 T-1817,1832,1867 SL-1797
S-1777 T-1767,1747,1715 SL-1784

Intraday Cash Tips 20.12.2013

CIPLA B-401.50 T-404,406.50,409.50 SL-399
S-395 T-392.50,390,386 SL-397.50
HCLTECH B-1242.50 T-1252.50,1267.50,1282.50 SL-1235
S-1227 T-1217,1203,1183 SL-1235
ADANIPORTS B-168.70 T-170.40,172.10,175.70 SL-167
S-163 T-161.30,159.60,157.50 SL-164.50

More free stock market tips posted at stockforyouindia

These stock market trading tips are prepared for intraday trading purpose.Trading in market direction is the best option.Always buy only at/above buy (entry) price.Sell only at/below sell (sell) price.Keep strict stop loss for all trades.Not initiate any intraday call after 2.30 PM.Book partial profits (at least 33 per cent) at first target.Those who are going to third target book partial profits at second target (at least 33 per cent) and then move stop loss to T1.Close all intraday positions before 3.15 PM If scrip opens above(buy)/below(sell) target levels then don't trade on that stock or try to trade only when it comes near to entry level.
NB-This post is only for education purpose.Trading on stock market is risky.Trade at your own risk.We are not responsible for any loss booked by the traders.

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Short selling in Stock, Commodity and Forex markets

In finance We can define short selling as the practice of selling securities (stocks, commodities, currencies or other financial instruments) which are not currently owned by the seller. When a trader or investor anticipating a decrease in share price, goes short but it is promised to be delivered. Shot selling is also known as shorting or going short.
 The purchasing of the stock after short selling is called 'Short Covering', 'covering the short' or 'covering the position'. If the price of the scrip declines at the time of short covering, the short seller will get profit as the cost of repurchase is less than the price of selling.If the price of a scrip increases prior to repurchase the short seller will incur a loss. The risk in short selling is that the potential loss of a short sale is unlimited. The short seller requires to keep a minimum margin to cover losses and keep the position. If the trader fails to keep the margin the broker or counter party may liquidate the position.
 On speculative markets traders uses the fluctuations to short a scrip to quickly make big profits.It is like gambling and in some cases it may result in heavy losses and as I mentioned above the loss of a short is theoretically unlimited.So one must keep strict stop loss to restrict the losses.
  In short selling, when you sell a financial instrument the broker will lend it to you from their own account or from some body else account (who is a customer of the firm) or from another brokerage to you.That is, you are borrowing the scrip and selling to some body else.You can hold the short as long as you want by keeping the margin. Some times interest may be charged to margin accounts. If the lender wants the stock back you borrowed from him you may either have to cover the short or borrow from another lender.
 In short, You are not the owner of the financial instruments you have sold. You must have to pay the dividends* or rights declared during the period of short to the  lender. In case of a stock split you must have to return the increased number of shares at lower price. That is if the stock splits in a ratio 2:1 you have to return twice the number of shares at half the price.
 Short selling plays a big role in day trading and it safer than short term short selling as the over nigh risk is not present. Hedge funds and large institutions also uses short selling to make some money. Some wealthy investors also uses short selling to make profit. How ever a short trader must be a dedicated person and he must be aware of the market condition and general conditions to avoid possible losses.
*The actual dividend paid by the company goes to the new buyer. The lender of the financial instrument who holds the shares in margin account also expects dividend (He is unlikely to be aware that his shares are lent out for short selling). There fore the short seller have to pay the dividend amount to compensate.

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