- Wealth PMS (50L+)
The Slack Discussions
The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)
A brief summary of some of the interesting things discussed there in the last few days:
How big is STT?
0.125% of the whole contract (strike price + premium) x lot size.
STT or Securities Transaction Tax applies if you let an “in-the-money” option expire. It’s best to exit the option before 3:30 pm on expiry day, but if you do let it expire, that’s what it’s going to cost you.
Another Crash Prediction: Is this bullish for stocks?
Mazhar Mohammad says “ Nifty may be on the verge of a bigger crash; May fall to 7200 in 3 to 5 months”
Your Provident Fund will buy Stocks, starting Tomorrow!
EPFO to invest over Rs8,000 crore in ETFs that reflect the Indian economy by the end of March 2016.
The BJP Might Not Get a Majority in the Rajya Sabha even in 2019
A detailed analysis shows us why the Rajya Sabha elections in 2016 and 2019 might not yield an NDA majority (needed for it to push through key bills) even in 2019 before the next LS elections:
How the Modi govt lost the plot
“Modi May Have to Rethink Jaitley as Finance Minister”
FDA Approved First Drug Made by a 3D printer
Pharma companies might find this exciting (if they’re going to do it) or scary (if they will get redundant) – but a printer has mixed enough molecules to get drug approvals from the FDA.
RBI further eases project loan recast norms for NBFCs
Except for India, Asian Manufacturing Continues to Slip
“Sourcing norms for single-brand retail likely to be reviewed”
“A steep fall in cotton prices helped the textile companies”
“Tough call for Tata Steel ; P/E for Steel is low at 3.88”
“Indocount peaks at 1000”
We missed this one in the portfolio, though it’s been a top ranked outlier in Capital Mind Snap!
“NDL down by 12%”
EPS went from 2.52 to 3.4 — a 35% increase and the stock tanked over 12%. It’s still a 40% higher than when we got in, and such moves are scary, but hey we didn’t complain when the stock went up 10% a day for two days in succession.
“Blood high rates for Food at PVR”
Which makes it a good investment!
“International Paper, if able to sustain the horizontal resistance, has a target of 500+”
We spoke of how much it would cost to write a straddle (Call and Put at the same strike) – for a single BankNifty contract, it would add up to Rs. 80K, but about 25K of that is simply the premium you receive.
And here’s a graph by AP that makes it look really good to be a writer of Option Straddles:
Housing Loans have, in recent times, grown faster than overall credit growth.
We hope you liked this summary. We’ll post it every few days as we collect more interesting information!
Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.
Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.