Question About Buying At Low Price and Selling Already Holding Share

Trading
1

Hi,

I am very new to trading, so please pardon if I am not using the correct Jargon.

  1. I buyed 400 shares of NiftyBess at 97.59 (6-7 days ago) and now at the moment, lets say the price is 96.53. I want to buy more 400 at lets say today (15-05-2020), now total i have 800 shares of Niftybees.

So the plan is i want to keep the share for long term and i only want to keep 400 shares as for now. Now lets say on 16-05-2020 i sold 400 share at 98.

My question is which of my 400 shares will get sold? The one that i buyers it at 96.53 or the one with 97.59 (this was the share that i hold). I want to sell 400 share of the lot that i buyed at 97.59 and not the lot(400) of 96.53. Do i get to choose which share i can sell as i have mixed value shares in my account.

Thank you

2

Hello,

Once the shares have hit your demat account, price doesn’t matter at all. It’s you who should keep tracking prices and value for your investment.
In your case, your average buying price is all which matters. There is no difference between selling the one you bought at two separate prices.
I simple terms, you can’t choose. Maybe you should have a read from varsity

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3

You have purchase Niftybess quantity 400 at 97.59 and willing to purchase again at 96.53 quantity 400
So your average price adjusted will be 97.06 for 800 quantity

If you purchase same stocks with different prices and quantity brokers will adjust the price to average price
Your average price is 97.06 of your 800 Niftybees

If you sold 400 quantity first then it will sold for 97.06 as the prices are adjusted to average price

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4

@Mehdi_Abbas @Vinayak_Shastri

Thank you for your reply. So what I was thinking is incorrect. For the long term, i should only think about the StopLoss and do not get distracted by day to day price fluctuations. Correct? Just keep the shares with stoploss and just wait for the coming months/years.

5

Yep Niftybees is Etf that tracks Nifty 50 indice so it is not really risky you’re good to go long term :slight_smile:

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6

@Mehdi_Abbas Thanks for the reply. Can i go long term with Reliance Industries as well?.. I have 20 share of that bought at @1,462.00 (10 unit) + @1,462.00 (10 unit)

7

you need to answer this question only if you are considering taxation. For taxation it is always first in first out… the first lot will be sold first… you have no control over that

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8

Recently, Reliance Ind touched the all-time-high (ATH) level.

For further breakout move, it has to be closed above ATH level.

Else, better to wait for the downside support level.

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9

I had faced this situation and found out that your very first purchase of 400 shares at 97.59 goes out first and you will have 400 shares @ 96.53 still in your account. Hope this helps.