Beta in practice or Beta practical

Beta part 3: USING BETA FOR EARNING PROFIT

Please read previous beta posts(PLEASE VIEW IN DESKTOP MODE FOR BETTER ANALYSIS)
Portfolio beta
Beta part-2

Beta is a statistical tool which tells us how how a share price of the company would move if market moves in particular directions.(

Now let us Learn to Earn from Beta tools here are two positions taken by me in equity market (cash market) :-

Example 1

I have bought these shares on 12-03-2020 and sold on 13-03-2020. Buy price is price as on 12-03-2020 and selling price as on 13-03-2020

COMPANY NAME	BUY PRICE	QTY	BUY AMOUNT	SELL PRICE	SELL AMOUNT
bajaj-auto	2398.71	250	599677.5	2388.1	597025
cipla	394.28	1000	394280	431.2	431200
HINDUNILIVER	2059.83	250	514957.5	2098.68	524670
BHARTI AIRTEL	469.8	500	234900	500.65	250325
TCS	1805.21	250	451302.5	1790.55	447637.5
ITC	153.2	500	76600	163	81500
ASIAN PAINT	1844.18	1500	2766270	1832.9	2749350
TOTAL			5037987.5		5081707.5
INTRADAY
RELIANCE	1005.2	1500	1507800	1134.7	1702050

BASIS OF DECISION  Date of purchase : 12-03-2020 There is fall in global market all over the world due to cronavirus. All foreign  institutional investors are pulling their investment back as there is fall in the business activities,  shares are valued than less than the normal trading sessions so infused capital as when business would restore itself in 1 month or so then I would sell having 2% PROFIT  after brokerage.The Beta of 1 is maintained so as to match the sensetivity of market and avoid unsystematic risk . SHARE SPECIFIC All shares are showing bearish trends  and same beta generated.

DETAILS CHECKED Technicals summary in moneycontrol on line service.

Date of sale : 13-03-2020 Shares price heavily falls when market opens, strategy due to fall is to buy them at yearly lows at end of day so as to average cost but still placed order to sell at target +5% profit of the profits. Market recovers and realised profit of 5 % except in two and loss incurred is bookd resulting in net return of 4.64%. Example 2 I have bought these shares on 09-03-2020 and sold on 10-03-2020. Buy price is price as on 09-03-2020 and selling price as on 10-03-2020 COMPANY NAME BUY PRICE QTY BUY AMOUNT SELL PRICE SELL AMOUNT bajaj-auto 2580 250 645000 2620 655000 cipla 427.21 1000 427210 418.75 418750 HINDUUNILIVER 2130 250 532500 2141.84 535460 BHARTI AIRTEL 497 1000 497000 499 499000 TCS 1961.93 500 980965 1981.7 990850 ITC 177 2000 354000 174 348000 ASIAN PAINTS 1872 500 936000 1883 941500 RELIANCE 1120 1000 1120000 1157 1157000 Total 5492675 5545560

BASIS OF DECISION Date of purchase : 09-03-2020 There is fall in global market all over the world due to cronavirus. All foreign  institutional investors are pulling their investment back as there is fall in the  business activities,  shares are valued than less than the normal trading sessions so infused capital as when business would restore itself in 1 month or so then I  would sell having 2% PROFIT  after brokerage. The Beta of 1 is maintained so as to match the sensitivity of market and avoid unsystematic risk . Date os sales : 10-03-2020 Shares prices increased having positive trend after holi , the dalal street is neither following fundAmental analysis nor technical analysis so after  eaning 2%  of profit closed the position.The earning of 2% is sufficient for unsystematic risk. SHARE SPECIFIC All shares are showing bearish trends  and same beta generated. DETAILS CHECKED Technicals summary in moneycontrol on line service. We can see that I have earned a profit of  2% as well as 4.64% profit by taking only systematic risk. I have  maintained my portfolio beta of 1 and reduced my unsystematic risk to zero. I have earned this profit by taking only systematic risk. HAPPY TRADING HAPPY INVESTING