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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4248)	5/10/1999 3:05:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Trading Strategy for Indian Bourses.(Playing in Arbitrage & Intraday Moves) (Courtesy:DSB) If you have the holding power, use a strategy that I have seen many investors doing very well with. Pick any of the very actively traded stocks like Reliance, TELCO, TISCO or SBI. Pick up about 500 shares in any or all of these shares at cheaper prices (i.e Reliance @ Rs. 120 or lower, TELCO at 130 or lower, TISCO at 72 or lower and SBI at 150 or lower). Then you can do one of the following: Play on Intra Day or Intra Settlement moves – Sell the shares during a settlement at higher than acquisition prices. Buy them back if the price falls on the same day or within the same settlement. This way you have squared off your transaction within the same settlement (and paid the lower squaring off brokerage) and still have quality shares in your inventory. Arbitrage between 2 exchanges: See if there is a price difference in 2 exchanges. For example, Reliance may be at Rs.125 on the NSE and 123 on the DSE. Sell on the NSE @ Rs. 125 and buy it back simultaneously on the DSE at 123. If that's the case why do you need to hold shares? Well the settlement cycles are different on the NSE & DSE. So if you sell on the NSE, the DSE may not deliver the shares to you on time to be delivered to the NSE. If you have the shares in your custody, you could deliver on the NSE and wait for the DSE to give you the shares. This way you replenish your inventory.