Monday, December 16, 2013

Consolidation of the market

After touching high market is continue with consolidate to lower. There is policy meeting and fomc meeting ahead. Market is looking for this event. Today sesasterlite is top gainer.Infy; axis bank ; icici bank are support I ng index. Jindal steel; sun pharma; RIL; HDFC are looser.
Cipla had shown activity in last five minute. There will be some strength in defensive player.

Tuesday, June 5, 2012

4800 is holding in nifty for this time?

Nifty is holding 4800 level and giving strength at this point. 4500 level is very near for this bear market. One can think of touching this level again. US market had fallen very sharply on Friday. This will pressurized all global markets. This market will continue to fall below 4800 level also if European market continue to fall and Eurozone crisis had not given sign of recovery. Indian market had showing strength at 4800 level but this will hope of rate cut by RBI. Banking stocks had shown strength for this news.  
  1. State bank of India is stock giving positive since result had positive. This stock will give very strong output for coming days. 2400 is target for this stock if market show pullback from this level. This stock is positive on hope of RBI rate cut action and CRR rate cut. There is disappointment on GDP number. One reason behind this disappointment is tightening of rate bu central bank. RBI will soft their stance on the same is news flowing in market. This will boost banking sector. But Global weakness will another wing of story. If global weakness continues then there will very difficult time for Indian market and break below 4500 level. 
  2. Larsen and Tubro is stock giving strength. After touching 1100 level this stock had pullback from lows. If this continues in all over sentiment then stock will achieve target of 1400 once again. 
  3. Tata Motors is continuously correcting from higher level. This will touch 190 to 200 level before showing strength. After that this stock will again bounce back to 250 level. This stock is another stock which is good candidate for buy on dips. 

Friday, May 18, 2012

Market sell off

This is another week of heavy sell off. This is second week had seen losses consecutively.  Nifty will take support here. Some important points of this stage.
  1. Global market come to support level of 200 day moving average.
  2. S&P 500 is close to 1300 level. Here this index can take support.
  3. Dollor index come to 81 level. This is resistance level for this indicator. There will correction for this index.
  4. Nifty come to 4800 level where this is support level for index. 
  5. Market will cover from this level to 5150 level. This is expected movement for market.
  6. State bank of India had posted good numbers and found support at 1800 level. 
  7. Bank nifty is again shown strength.
  8. Some counter will give good momentum. 
  9.  NTPC had found support at 140 level.
  10.  Sesa goa Sterlite amalgamation will give strength and some price math mechanism for this month.  
This is week of bearish session. There will be positive in next month. 

Saturday, April 28, 2012

Market become rangebound after S&P downgrade.

Last week rating agency S&P downgraded India's rating negative from stable. BBB- is new rating for India. This news was bad news for market. Market collapsed by 50 point as immediate effect on announcement. After news market again recovered from intra day low to close 20 points lower. This was not big loss for market. Market had digested this news. There are global markets are good for Wednesday on which this announcement is done. Now market is range bound for more than 3 days. Result session is not giving positive. There should be neutral cue for market now. Some most interesting points for market in this flat market.
  • ITC had made all time high 252. This stock is outperforming market. This stock become most influential stock in  index itself.
  • Hindustan Unilever is another stock which had made all time high in this market. This is story of FMCG space. 
  • Bharti Aritel is stock which had underperformed market. This stock had made low of 288 in this market.
  • BHEL that is Bharat Heavy Electrical Limited is broken down at lower level that had made previously. This stock touched to 230 and lower level. 
  • HDFC Bank is one stock which is making good and outperforming market and banking space. 
This are some main points of market in last weeks. Further discuss some stocks which are good for long term short term. Some technicals are also discuss here. Any viewer want to suggest he will always welcome. Post suggestion here. 

Tuesday, April 10, 2012

Candle-stick stock chart

Equity market

Equities are assets that are instrument where one can invest money for long-term or short term. Company issues equity share to public, institutional investors, banks, foreign institutional investors, etc. This money of value of share gathers to that company. Company uses this money for growth of company. Company announces quarterly result. This is indicating company status and fundamentals. If company posted good result and profit; then well in near future. Shares of company will go up and outperform. Equity has face value for each share and company declares dividend for this face value every year. Dividend yield is another factor for deciding fundamental of company.

Market study

We are discussing here study of stock for purchase of stock. There are fundamental study and technical study taken into consideration. Fundamental study is overall performance of company. Take example of stock like State bank of India. Banking stock has fundamentals like profit and NPA. Bank has good NII then good bank for investment. Net interest income is indicator of loan growth. If bank has good loans and have good income from loans; then net income from interest is good. Capital of bank distributed like promoter and public investment. State bank is public sector unit and have government holding in this bank. Growth is good NII is good. Credit agency had given good or stable rating. All are fundamental criteria. This study is as fundamental study. Another example is Bharat heavy electrical limited. This is another public sector unit. This company has also good fundamentals. This company is facing problem over order book. Company has posted good profit. This company is one of highest dividend paid to government. Company has competition from Chinese product. This is reason for sluggish order book of company. Fundamentally, good stock for long-term investment. This type of study is conducted for decide purchasing stock. Technical study is short-term market fluctuation study. Stock of one company have good supply zone and technical points decide resistance zone. When company has good fundamentals and free market capital. This type of stock price changes by action of trades in market. News flows in whole market also have impact on stocks. Such stocks called as blue-chip stock. Blue-chip stocks are good for long-term purpose.

Technical study

Technical study is important study for trading in many stocks. This is idea of taking advantage of market fluctuation. Market moves in some technical points. Those points studied in this study. When all traders buy particular stock; then price of stock goes high. There is one other point where traders start sell stocks and prices come to lower point. Points, which discussed here, called as support and resistance points.
After all this study, one can purchase share of company, which is technically and fundamentally good for buying.


Broker provide margin for intraday trading opportunity for traders. Trader can use this facility for day trading. This purchased stock need to square off in same day. This means we have to sell stock on same day on which purchased. We can purchase more stock in less cash in this facility. There are many instruments in market to trade. This article is only describing equity stock purchase. Other instruments in market not discussed here.

Sunday, April 8, 2012

Sterlite Industries limited.

               This is candle stick chart of Sterlite  Industries. This company is from metal counter. Metal sector had very underperformed in recent bear market. This space is beaten by any other sector. Sterlite Industries had made low in this time. 86.15 is lowest price for this stock. This chart is daily chart of Sterlite industries. 
              This chart have shown technical pattern in recent days. Triangle is formed in this counter. with lower side is 110 level. This will break on upper side. If market is supporting then stock will again touch 120 level and higher. This triangle is formed and break will in next some days.
              Comparison with other counters. Tata steel have much recovered from lows and performing well. Hindalco is another stock in this sector had touched 160 level and come down again to test 130 level. Sesa goa is trading 200 level. There is possibility of Sterlite Industries to form good chart in coming days.
           What is your opinion is expected from readers also. This is my own opinion and not recommendation to any one. One can study market and decide what to do?

Saturday, March 24, 2012

SU-UTI disolution, ITC, Axis bank, Larsen and tubro.

                       Yesterday government had announced for Specified Undertaking of The Unit Trust of India (SU-UTI) is to be dissolved to create an asset manager. Government have facing problem of disinvestment in PSU in last fiscal year. Government have target of 40,000 crore and reality government can raise 15000 crore through Oil and Natural Gas Corporation limited (ONGC). But this divestment was not much successful. This divestment had taken by insurance company about 98%. Life Insurance Corporation Limited (LIC) had taken all this shares of government. Government is facing fiscal deficit due to this problem. There are more companies for disinvestment. There are companies like Bharat Heavy Electricals Limited (BHEL), Oil India, Steal Authority of India (SAIL), etc. But from ONGC government had learned something. Government are now want to play safer.
                      Government have another plan for raise money and discussed many times is Government holding through SU-UTI in companies. This is safest rout for government to raise money. Government holding in three major companies through this skim. That companies are not PSU companies but there is not person or owner of this company. All three are major companies. That companies are ITC limited, Axis bank, Larsen and Tubro limited. Its assets include stakes in Axis Bank (23.58%), ITC (11.54%) and Larsen &Toubro (8.27%), totaling `38,046 crore in value. This money is separating government and using for purchase of this stake from government. It means this money will go to government. This is way of raising money and reducing fiscal deficit. On either side government facing problem due to political conditions. State election had given negative signal for government. Now fiscal deficit again become cause for monetary tightening. This is another round for inflation and government again face problem due to inflation. Other site is slowing of growth is concern for government. Growth is slowing due to interest rate hike. Interest rate hike done for inflation control. Again rate cut for growth is invitation for inflation. Reserve Bank of India is blaming on fiscal deficit for inflation. Overall government of India want to come out of all this and this decision is one part of this step toward relief from this situation. All this will impact on companies ITC, Axis bank, L&T. All money this companies have short fall will raised from retail investor. How this gap become headache for this companies. What is impact of this decision  on this companies in future will come to know in future days.