TM-Vision SMS Fraud

SMS Frauds

NSE & BSE Intraday traders, daily traders, intraday, stock tip seekers please be aware of SMS frauds. It's your hard earned money that's at stake. Think, research enough and then invest or trade in stocks whoever the tips, suggestion provider is.

Ensure you follow these steps before putting your money at risk:

1. Check the market trend
2. Check the company's profile
3. Check the stock price trending for a week, month etc
4. Check for any news, announcements from the company or its competitors
5. Last but not the least - "Do not follow tips, blindly"

A real scenario of Fraud from TM-Vision SMS

A SMS was sent across to many people from TM-Vision at 15:00 approximately advising to buy Orchid Chem Fut. The SMS read something like this:

(PLATINUM CALL) BUY ORCHID CHEM FUT AT 321 - 324 SL 314 TGT 355 DONT MISS

This is what happened to Orchid Chem stock price today (23rd Nov'10) at BSE & NSE:

 

 

If you look at the stock price which increased Rs. 15.30 and Rs. 15.35 on BSE & NSE respectively from the previous days close which was 306.65. You might have been tempted to buy the stock at the recommended price by TM-Vision. 

Now let's Assume

You are impressed that the stock has shown great rise and the stock opens at 322.80 higher then yesterday's close, so you decide to buy it at the recommended levels (321 - 324) price by TM-Vision. Let's assume you decide to buy a small quantity using your broker given exposure or by cash or its futures. 

this would have cost you ( 321 x 500 = 160500 ) excluding brokerage fees, tax etc.

At 13:50 app the stock price moved up to 330.80 & 330.95 in NSE and BSE respectively. If you start thinking that's good wait at by the end of the it had bottomed down to 306 app and recovered back 312 app. During all this if you had not taken evasive action or if you have not kept stop loss, you would be in a grim situation. Here's the maths...

If you had kept stop loss, you would have lost: ( 321 - 314 = 7) ( 7 x 500 = 3500 )

If you had did not keep a stop loss, you would have lost: ( 321 - 306 = 15) ( 15 x 500 = 7500 )

Now imagine the same on futures.

Hence, please ensure that you read the market trends, observe and wait for the right time to invest, enter a stock for trade.

chart for the day of ORCHIDCHEM on NSE

Registered Complaint: http://www.consumercomplaints.in/complaints/sms-c325947.html