The Hindu Business Line : Satyam fall: Day traders feel the pinch

Chennai, Jan. 8 It’s a slip between the cup and the lip for Chennai’s Mr V. Balasubramanian, 50, who dabbles both in equities and F&O segment on a daily basis (day trader).

“I ordered my broker to go short on Satyam future (contract size: 600 contracts) in the morning at 176. But when it started moving up I panicked and started pestering my broker. Once it reversed the direction the broker covered my position at Rs 172, with a marginal profit of about Rs 2,400. Had I held on to the position for another half an hour, my profits would have been in excess of Rs 75,000,” said Mr Balasubramanian.

“Yesterday was Vaikunda Ekadasi – the auspicious day; He showed me the way, but I failed to capitalise on it,” he lamented.

However, for Ms Sowmya, home-maker, it was a happy day. “She ordered 10 lots of short on Tuesday at Rs 160. Even when the stock was moving up she did not panic; she covered her position at Rs 140, making a neat profit of Rs 1,20,000. She had no regrets even when the stock plummeted as she achieved her target,” said a sub-dealer at Emkay Share & Stock Brokers who handles her account.

However, that was not the case with Mr Naresh, 47, in Chennai. “As the stock started falling, I bought the shares at different levels in the cash segment. Finally, I ended up accumulating 500 shares with the average price working out to about Rs 70 a share. With so many negative news emanating, I don’t know whether I will get back my cost price,” Mr Naresh said.

The sub-dealer said he could not execute several orders of his clients, as the system rejected several of the orders. “I think due to heavy trading volume in Satyam Computer, several of our orders could not be executed. In fact, one of my clients, who is having 200 shares of Satyam, wanted to exit, but he couldn’t as the system rejected our orders.”

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