Stock is Overvalued.

[sunandaC]

View : Stock is Overvalued.

Strategy : Long Stock & Short S&P CNX Nifty Futures

Scenario :
Short RIL : 10,00,000

Beta Value : 1.2

Long S&P CNX Nifty : 12,00,000
Futures

CNX Nifty Futures : 992
( 25th April expiration)

No. of Contracts : Vp * Bp / Vi
: 1m * 1.2 / 992*200
: 6 contracts

Value of Long Index Futures : 11,90,400 (198400 * 6)

On 25th April 1078 , 1090
S&P CNX NIFTY

Short RIL (1,20,000) , 1,23,400
Profit/(Loss)


Long S&P CNX Nifty Future 1,03,200 , 1,17,600
Profit/(Loss)

Net Result 16,800,5,800
Profit/(Loss)

 

[rosemarry2]

View : Stock is Overvalued.

Strategy : Long Stock & Short S&P CNX Nifty Futures

Scenario :
Short RIL : 10,00,000

Beta Value : 1.2

Long S&P CNX Nifty : 12,00,000
Futures

CNX Nifty Futures : 992
( 25th April expiration)

No. of Contracts : Vp * Bp / Vi
: 1m * 1.2 / 992*200
: 6 contracts

Value of Long Index Futures : 11,90,400 (198400 * 6)

On 25th April 1078 , 1090
S&P CNX NIFTY

Short RIL (1,20,000) , 1,23,400
Profit/(Loss)


Long S&P CNX Nifty Future 1,03,200 , 1,17,600
Profit/(Loss)

Net Result 16,800,5,800
Profit/(Loss)

Hello Sunanda,

Please check attachment for Stock Market Overvaluation as a Threat to Corporations and the Society, so please download and check it.