Sell holding and buy back on same day at lower price

I have a doubt, I bought 2000 shares of ABC month ago(B1 price) and selling 1000 of them today(S1 price). After selling i find them again at low price and buy 500 qty again(B2 price) on same day and if it goes more low buy 500 qty again(B3 price) on same day. (2000-1000+500+500). Every buy and sell is in CNC. I have 2 questions

  1. Will I be able to book profit though qty is same?
  2. What will be my average?

@Nakul

Yes, since you’ve sold high and bought low, you would have made a profit on the trade

Your average will remain the same (B1) for the stocks you hold since the trade you’ve made is an Intraday trade.

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Please reread the question and reply again. I edited it. Thank you!

My answer remains the same.

You bought 2000 shares (B1) and the shares hit your demat account.

After one month, you sell 1000 shares (S1) and after a drop in price, you buy 500 (B2) and another 500 (B3) on the same day. You’ve bought and sold 1000 shares on the same day which is what’s referred to as an ‘Intraday trade’. There’s no obligation to deliver or receive shares for these transactions since net sum is 0.

The 2000 shares (B1) that are sitting in your demat account, will not be touched since there’s no obligation and hence your average price will remain what it was for B1 purchase.

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Such questions and such questioners lure me to intraday.

WIll I get profit when I sold 1000?

Yes, you will.

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  1. Profit will be difference of the amount between your average selling price and average buying price in the same day. The difference amount or profit will be credited to your account after deducting the charges and brokerage of course.
  2. Average will remain the same as your initial buying price or the B1 price as mentioned by you.

This is what happened with me yesterday. ABC company 100x qty bought at B1 price month ago. 50x Sold at S1 price which is high in CNC yesterday. 25x bought again at B2 when low in CNC yesterday. What will be net profit and how to calculate… I am unable to calculate. Zerodha is showing (S1- value lower than B1&B2)*50x. example- 1000 qty at B1 month ago, sold 500 yesterday at S1(high). Bought 250 again when it was lower(lower than B1).

From what I perceive let me explain with an example, mods clarify if I am wrong.

Take a company x for example trading at around 110.

A month ago I bought 100 shares of company x at 110rs so total inestment = 110*100 = 11000

Case 1

Now lets say today the same share was trading at 100 rs. I sell 50 of my shares at 100rs in the morning. Later in the same day prices fell to 90 and I again bought 25 shares at 90 rs.

So total profit in this case = 25 * 100 - 25 * 90 = 250rs at EOD which would be credited to your account.

Also you would be NET short 25 shares so 25 shares would be deducted from your holding and you would have only 75 shares at an average of 110 rs. Also you would have loss because the 25 shares you bought a month earlier at 110 were sold now at 100. This loss of course would be to your overall holding position. Since the stock is down so would be your profile value on the 75 remaining shares but on the 25 shares you sold you have realized the loss which amounts to 25 * (110-100) = 250rs.
Also in this case an additional amount of 25*100 would be credited to your account as this the amount you receive from selling your 25 share which were in your holding.

Case 2

Now lets say today the same share was trading at 100 rs. I sell 50 of my shares at 100rs in the morning. Later in the same day prices fell to 90 and I again bought 25 shares at 90 rs. Again the share prices are down to 85 and I again bought 25 shares at 85rs.

So total profit in this case = 50 * 100 - 25 * 90 - 25 * 85 = 625 at EOD credited to account.

In this case all the share I sold in the morning I have covered at the end of the day so no share’s would be deducted from my account.

In this case since the share prices are down my entire portfolio of the share X would be down but I would have realized a gain of 625rs which would be credited to my account.

The simplest way to look at these trades is to see them as intraday and make your calculations as such if your total sell vs buy number of shares are equal.

Also charges have not been taken into account so keep that in mind. Also with respect to case 1 there would be an additional deduction of around 15rs (depository charges) as 25 shares are deducted from your holdings.