Mungerilal: Good morning Circuit, kya haal hain?
Circuit: Morning Sir Jee (most of the Circuits in the industry call most of the Mungerilals, Sir Jee)
C: Aaj to gap se khulega, Japan, Korea dekho…kal Dow, Bovespa bhi strong tha. Aur RPL ka listing hain…
M: Arey yaar, maine 3 alag demat account se apply kiya tha lekin nahin mila.
C: Kya baat karte ho, Sir Jee? Apne almost sabhi clients ko RPL allotment aaya, demat mein bhi credit hua.
M: Hmmmm……. (cursing his luck). Kite pe khulega…RPL?
C: dekho, boss-log (?) to kehte hain 100 se jyada…Long term ke liye bahut achhaa hain. RPL 120 to aaj-kal mein dikhayega, Sir Jee. Kuchh naya plant aa raha hain Gujrat mein. Aur 82 pe bahut strong buying aayegi…
M: haan haan, world’s largest refinery hain, heavy & sour crude oil can be refined…Nelson index…. (as usual he has little knowledge of everything....…but now getting more concerned that he does not have allotment and it’s going to run away)
C: Bolo Sir Jee, market khulne ka samay ho gaya….order daalna hain? Jaldi bolo….aur bhi bahut orders hain…(simultaneously answering phone calls)
M: Opening dekho, phir dalna
Market opens…strong on global cues & euphoria….Mungerilal getting impatient….
M: Arey Circuit, yeh to bhage jaa raha hain…kya karoo?
C: thoda sa profit booking aayega…neeche laga do buy order…bolo Sir Jee…
M: Lagao 1000 shares 95.15, buy order!
C: Confirm 95.15, buy order RPL quantity 1000? OK Sir jee?
M: Daal do jaldi…(he is too excited)
C: Order daal diya ….yeh dekho exchange confirmation aa gaya!
The order gets executed in no time…. CNBC is beaming live pictures of RPL’s listing ceremony….
C: Aa gaya Sir Jee…Kya karna hain, intra-day nikalna hain?....
M: Aisa karo Circuit, 500 bechne rakho….aaj ka high kitna tha?
C: 105 tha, bolo kya karoon?
M: order daalo 500 sell 104.95, aur balance 500 daalo 109.45
C: Bechne ke liye rakh diya hain….Lagta hain bahut momentum hain aaj market mein…FII net buyers kal bhi!…
Stock corrects….downwards touches a low of 85 odd….Circuit is constantly on the phone…
M: Neeche buying support aa raha hain kya? Arey baap re, kitna volume hua thodi der mein!
C: Sir jee, Ambani group ka stock hain…operators neeche nahin girne dega…
Stock is volatile, in the background some traders shout with excitement after making some quick buck on RPL/other shares…making our Mungerilal further nervous. Constantly ringing phones…general euphoric atmosphere adds fuel to the fire…
M: Support le raha hain shaayad…85 ka…(talking to himself, but loudly)
C: Average karna hain kya…Sir Jee…aap ke demat mein to blue-chip shares hain…margin hain….khelna hain aur?
M: aur 1000 buy karo…86.25
C: punches the order in….pending hain
Within 10-15 minutes this order also gets executed…Mungerilal borrows a calculator from another dealer…makes some calculations….
M: apna do sell order cancel karo…phir se fresh daalo… 1000 @ 99.80 aur balance 1000 @ 104.95
C: punches the orders in….Orders pending hain…Sir Jee!
At the end of the day..the stock does not reach Mungerilal’s sell levels. He takes prompt delivery, thinks to himself, “thoda profit booking kiya IPO waalon ne…Tomorrow I will do BTST”.
The next day…he asks Circuit again to punch orders to sell 1000 @ 97.95 and 1000 @ 101.75…the rest is history…..He had to liquidate RPL at huge loss. Also to meet margin calls on his other leveraged trades Gabbar Stockbrokers Security Advisors & Wealth Creators Pvt Ltd sells his other blocked shares during the market crash when exchange was closed for 1 hour.
P.S.: The scene is not very different even today; Gabbar, Circuit are the same…only Mungerilal’s role is being played by newer actors.
Disclaimer: The characters depicted here are not meant for hurting anyone’s feelings, living or dead. This is a true story, with name of the characters changed to protect their real identity. Please read this & react keeping in mind that it is being narrated with a purpose of investor education.
Edited by kulman - 23/Sep/2006 at 4:39pm
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