Intraday Share Tips For Tommorrow

Buy Strides Arcolab with a price target of Rs 823 as against the current market price (CMP) of Rs 645.

Accumulate Maruti Suzuki India (MSIL) with a price target of 1,368 as against the current market price (CMP) of Rs 1,397.

Hold Manappuram General Finance with a price target of Rs 33 as against the current market price (CMP) of Rs 31.

Hold LIC Housing Finance with a price target of Rs 285 as against the current market price (CMP) of Rs 258.

Hold Sterlite Technologies with a price target of Rs 34 as against the current market price (CMP) of Rs 38.

Stock Trading Updates

Markets continued to trade flat in late noon trades ahead of the F&O expiry for the April series. The Sensex was down 5 points at 17,146 and the Nifty was down 5 points at 5,196.

On the global front, Asian markets are trading flat with a positive bias with the exception Shanghai Composite which ended slightly down. European shares were trading  marginally higher in early trades. The CAC-40, DAX and FTSE-100 were trading mixed.

On the sectoral front, BSE Metal and IT indices are the top gainers while Auto and PSU and Power indices are down nearly 0.6% each.

Among Sensex shares, Infosys was up 0.7% while TCS gained 1%.  In the metal space Jindal Steel was up 3.7% at Rs 496 and Tata Steel was up 1.2% at Rs 472. In the auto segment, two-wheeler majors Bajaj Auto and Hero MotoCorp were both down 3% each.

What is Put Option

A put is an option contract between buyer and the seller for exchange an underlying security, at a specified price, by a predetermined date. Two parties having, one party is the buyer of the put option and the second party is the seller of put option. Buyer has the rights, but not the obligations, to sell the asset at the strike price, while the seller has the obligation to buy the asset at the strike price if the buyer sells the option.

When an investor thinks that underlying asset price will decline, so he or she purchases the put option and if an investor think that underlying asset price will increase, so he or she prefer the call option.

What is Call Option

Call option is a contract between the buyer and the seller, in which the buyer has all the rights to purchase the specified shares at a fixed price within a fixed period of time. In call option buyer has the rights to purchase the specified securities whenever he or she is willing to, but it's not an obligation. Simple we can say that in the call option, choice is totally depended on buyer's, whenever he wants he can purchase the shares, he is not obliged to purchasing the share. If the buyer decides to purchase the stock from the seller, then seller is obligated to sell the shares.

These are the important term which is associated with call options:-

Option Premium:- Amount which buyer pays for the option
Premium = Time Value + Intrinsic Value
Intrinsic Value:- Stock’s current market price-Strike price
Strike Price:- price at which the stock can be purchased
Time Value:- Premium-Intrinsic Value

Benefits of Future Market

• Margin : - The most important benefit of Future Market is trading can be possible with the belittled amount of money. There is no need of a huge amount for investment. In future Market, easily trading can be taken place with a small amount. In Cash Market, if you want to purchase 100 shares, so you have to pay an amount of 100 shares (100 shares * Cost of per share) but in a future market, you haven't needed of pay a whole amount of money of 100 shares, you only have to pay margin money of the total share amount. The margin (price of one lot size) varies daily based on its stock closing price.

• Shot Selling : - Shot Selling is also possible in Future Market. In the cash market, you can't do shot selling in Delivery, but in Future market, shot selling is available for both Intraday and positional calls. Shot selling means you can sell shares, even you haven't shares.

• No need for holding the underlying commodity or equity :- Trading futures does not require the trader to have or own actual physical goods on hand in order to trade them, because all the trader is really doing is speculating with future contracts.         

• Works in the Lot sizes- In future market, shares are available in lots. Lot sizes of all futures are different- different, it's decided by SEBI.

What is Future Market and Types of Trading in Future Market

Future Market :-

Future Market is a place where everybody can trade, like if someone having so little amount of money, and he wants to trade in the stock market, then he should stick on the future market. In future market, people can trade with a very small amount. They have to pay just margin money of share value, which is at most 15 to 20 % of value of total shares. In Future Market, a small investor can also trade easily and effectively.

Futures Contract :Future is a contract between two parties for buying or selling a particular underlying assets on a particular date at a fixed price. The Underlying asset can be commodities, shares, currency, equity, index, foreign exchange, forex or any other assets.

In simple language one future contract is group of stocks (one lot) which has to be bought with certain expiry period and has to be sold (squared off) within that expiry period. At a time, Future Contract is available for 3 months. Future contract get expires at every last Thursday of every month.

In this segment trader can do two types of trading.

Intra-day Trading - In the Intra-day trading, traders have to square off the position in the same trading day. Intra-day trading means, not holding any position overnight. In this type of trading, at the end of the day traders get profit or loss in their accounts. In Intraday Trading, no need of margin money, for this trading trader only have to pay Mark to Market amount.

Positional Trading- Positional Trading is similar to Delivery trading in Cash Market. Positional trading, where you take up a position upto that expiry date.

What is Cash Market and Future Market

Share Market is a place, where buyers and sellers are available with different-different company shares for selling and buying on a profitable price for earned money. SEBI provides an organised platform for buyers and sellers to do trading. This an organised platform called an exchange. An exchange is an organisation which hosts of market where stocks, bonds, options, futures, and commodities are traded.

Cash Market :- In Cash Market, the exchange of goods and money between the seller and the buyer takes place in the present, not in the future.Buyer and Seller are available on the exchange, buyer attainable with the bid price and seller is available at the offer price, when the price is matched of buyer and seller, then trade is executed.The buyer of shares have to pay the whole amount of the value of the stocks to the seller and seller have to give the shares to the buyer. Cash Market is also known as the spot market.

Future Market:-Future is a contract between buyer and seller for buying or selling a particular underlying asset (commodities, shares, currency, equity, index, foreign exchange, forex or any other assets) on a particular date at a fixed price. In this type of trading exchange takes place on a specified future date at a pre fixed price.