How much corpus would I get to trade? Maybe 5 crs
Which stocks would I trade? Well, to be frank, this is a challenge by itself. First thought that comes to my mind is, I would trade highly liquid stocks that are in news. Which means I look at only the LIX-15 index stocks.
LIX-15 index contains 15 highly stocks. It has average turnover of Rs. 1200+ crs daily.
That means 1200/15 = 80 crs is the average traded value of each stock.
Within this basket I would ignore those stocks which fall below the average turnover i.e. below 80 crs.
From the above list, 6 stocks fall below the average turnover. These can be ignored. From the remaining 9 we now take the top 3 and trade only those
AXISBANK, SBIN, TATAMOTORS
While Turnover is one aspect of looking at market cap, Volume also plays an important role....
(to be continued)