LARGEST IPO “PAYTM” WITH MEGA FALL🍂

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"Biggest IPO, biggest crash"
After india’s largest-ever IPO paytm parent one97 communications set another record on debut the biggest drop on opening day for share sales worth more than Rs 1000 crore.

The stock listed at Rs 1950, a discount of 9.3% to its offer price of Rs 2150, and closed at Rs 1564 down 27%. This is the first of six recent startup ipo’ s to list below the offer price. Anil ambani-controlled reliance power had  plunged 21% on debut in february 2008 after an Rs 11700 crore IPO. Investo Rs lost nearly Rs 5000 crore of their Rs 18300 crore investment in the one97 IPO. While institutional investors lost Rs 4254 crore, retail investors' net loss amounted to Rs 567 crore. High net worth induvial investors lost Rs 166 crore.In comparison, shares of its new-age peer zomato ltd. Had  hit the upper circuit on its listing day, before ending the trading session 66% higher. Shares of nykaa’s parent fsn e-commerce ventures ltd. Nearly doubled over its issue price on market debut.We hope the paytm story can inspire entrepreneurs, even for the ones who do not have the background, but we hope this inspires them that they can do it. we believe paytm’s business model lacks focus and direction. Unless paytm lends, it can’t make significant money by merely being a distributor. We therefore question its ability to achieve scale with profitability. Paytm financials are not very impressive and the growth prospects seem limited... Obviously the company lacks a clear path to profits.

How To Profit From Nifty Moves With Futures And Options !!!

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Traders with a view on markets and a risk appetite can take exposure to the Nifty by paying just a fraction of the index’s value through Nifty options and futures.

1. What are Nifty futures and options?
Nifty futures are a contract that gives its buyer or seller the right to buy or sell the Nifty 50 index at a preset price for delivery at a future date. Nifty options are of two types —call and put options. A call option on Nifty gives a buyer the right, but not the obligation, to buy the index at a predetermined price during a specified time period. Similarly, a Nifty put gives its buyer the right to sell the index. A seller of the options is obliged to give or take delivery of Nifty from the buyers. In practice index futures are cash settled, like their European counterparts.

2. How does a Nifty futures and options contract work?
Suppose trader A feels Nifty will rise from 18700, He can buy one lot (75 shares) of Nifty futures by putting a margin at a fraction of the contract cost. His counterparty trader B sells her Nifty at that level. If Nifty rises to, say, 18800 A has the right to buy the index at 18700 from the counterparty and sell it to him at 18800, gaining Rs 5000 (100×50). If the Nifty futures fall to 18600, B sells the futures to A for 18700 even though Nifty trades at 18600, which means the buyer faces a Rs 100 a share loss.

As opposed to buying a futures contract, A can buy a 18700 call option on Nifty by paying a premium of Rs 200 (closing price on Friday) per share. If Nifty jumps by 100 points at expiry to 18800 the option value will rise by around Rs 100. The seller of the option has to in this case fork out the money. However, the call buyer could also have an unrealised loss if the Nifty falls by a similar extent. Both futures and options are cash settled except where specified for compulsory delivery by the exchanges.

3. What’s more advantageous – buying a futures or options contract?
Both have their advantages and disadvantages. An option seller has to place a high exposure and Span margin with the exchange that’s way above the option price or premium she receives from a buyer. However, to buy or sell a futures contract, both buyer and seller put up the same margin, which is around 10 per cent of the contract’s overall value. Again, holding an option for long results in loss of value due to time decay, which does not happen in case of futures, which also can be rolled over, unlike the former.

But, gains and losses in futures can be unlimited. In options losses (for the buyer) are limited to the premium paid (sellers of options are exposed to higher loss of risk, though) while profits (buyer) are very high.