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.

Margin


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.

Friday, March 23, 2012

How system of counting and numbers evolved?

                    This is article where we discuss counting system and numbers. I have discussing here system evolution. How should be this system evolved. Any one can imagine this by simple thinking. Just start with thing and discussing.
                    When there was number system. How people are counting. Let me discuss. When there was not counting. They are not know what are numbers. One person have goat. He daily goes to goat house and take out all goats and again take in all goat evening. What he do to remember all goat are rest or lost any one. He had bag of stones contain stones. He just take out goat and take out stone from bag to empty bag. This is way of counting. When all goats are out then all stones are put in new bag. He don't know how many goat and what this number is? There is next evolution to this happened. If there are very few goats then it is easy to take care of stones. But when there are many stones there is another idea come in front. 
                   New idea was Group of stones. But what should be group. This new idea will be as follows. When he takes out goat then he raise finger. This way he can raise ten fingers. This is common to all human being. So this is taken as standard and all groups are considered. What happened now? He take a stone for all fingers. This way he have to carry very small number of stones for higher number of goats. This is way of decimal system we study in mathematics. Further there is again problem when counting high figure and again this stones also need of grouping and this is evolution of counting system. 
                   If someone now take base as two then there is also possible to count. This system is known as binary system in computer language. Same way octal and hexadecimal system is evolved. There are bases instead of ten changed to two, eight, sixteen. This is what I thought and anyone can thought in this way and understand by easy way this complicated system.

Wednesday, March 21, 2012

Bharat heavy electricals limited

Today is again BHEL. This is fundamentally very strong PSU comapany and trading now on 270 level. This stock have very good support at 260 level. This will move higher level of 300 and above in coming days. This stock consolidated 260 level for very long period. This is very good supply level for this stock.
Other interesting things about stock.
  • This is very good for going long for investors.
  • This stock is volatile and very interesting for traders also.
  • This is blue chip stock.
  • This stock have 52 week high level 450.
  • This stock is at lower level of 223 in recent past and taken support in bear market.
  • This is also interesting to know that this had disinvestment list for this fiscal year.
  • Many broker had given bearish signal for this stock last month but this stock had jumped and touched 325 level. 
  • This is second leg of this pattern and stock will again jump from this level to 300 plus level.
  • Brokers had given bearish opinion on stock now also.
  • Technically spoken stock had doji pattern on candlestick yesterday and  this is reversal signal.
  • Doji singnal of yesterday had given conformation today.
  • BHEL had closed 270 level today is conformation of bull signal.
  • If tomorrow this stock jump above 276 level then this will definitely cross 300 level.

Saturday, March 17, 2012

What are types of Diabetes?

Diabetes is most common disease among all nations. This disease is not caused by any infection and organism. This is caused mainly by changes in basic function and hormonal changes in our body. This is mainly due to changes in sugar metabolism in our body. Insulin is hormone responsible for proper metabolism of sugar in our body. There is tow types based upon insulin availability and insulin resistance in our body. This is very short discussion on this topic and more deep discussion is possible but I here only discuss two main types of disease and their pathology. Insulin is secreted by pancreas and beta cells in Islet of Langerhans in pancreas. if there is no secretion then there is 
sugar metabolic problem. Lets come to the point and discuss two types of Diabetes. 
  1. IDDM-  Insulin dependent diabetes mellitus. This is also called as type 1 diabetes. This is caused due to deficiency in secretion of insulin hormone in body by pancreas. There is no secretion of insulin at all. Due to this sugar is not metabolized in our body and this is condition of diabetes. There is insulin in only option for treatment.
  2. NIDDM - Non insulin dependent diabetes mellitus. This is also called as type 2 diabetes. This is caused due to insulin resistance in our body. This disease is caused by barrier in consuming this hormone. This is treated by some drugs that reduces resistance. insulin is produced in body but not consumed is condition for this type. There should be brief discussion related to symptoms and management and drug related but we here just discussed about what are main types and what is basis of this type and what is brief story behind this type.

Friday, March 16, 2012

How nifty stocks moved today?

Today is very crucial day for Indian market. Union budget is announced today by finance minister of India in parliament today. Market reacted today negatively on budget announcement. Nifty closed 62 points down 5317. Market have very less expectation from budget. But today market lackluster by disappoint in budget announcement.
Stock specific performance of nifty.
  • ITC is one stock have good session today. This stock have not very good news from budget but stock moved 3 to 4 % higher. hike in cigarate  tax but stock moved high. there is opinion that stock have valuation of about 10 % tax but tax is now 15%. Stock closed 216 odd level and touched high of 225 intraday. 
  • Mahindra and Mahindra is another stock that moved higher and have good session. There is pressure on stock due to tax hike in vehicle of diesel engine. This stock is performed well when market was lower level and when market is corrected then this stock moved lower. 
  • Sun Pharma is stock  of disappointment due to news of joint business. This stock is lower by 6 to 7 percent.
  • Oil and Natural Gas Corporation is PSU company in oil and gas sector have also disappointment and lower by 5 odd percent. This is disappointment in subsidy matter.
  • Banking sector is lower due to fiscal deficit of 5.1 per cent  and this is another trigger for credit policy announcement by central bank.
This is possible to talk on single stock in a day and write blog here . I write one blog  daily on movement of market and moving stocks and currency . 
I will try to write on every market day if possible here on Indian market. one can like this then can post comment on blog there. 

Tuesday, March 13, 2012

How market is bounced today?

Today is day of metals . All metal stock jumped today for higher level. JSW steel, Tata steel, Sterlite Industries , Hindalco are bounced today and this is good movement by metal counters today.

Saturday, March 10, 2012

market report

Nifty  on Friday had  taken support 5170 level which is 200 DMA and market swing with more than 100 points gain. This is start of bull market again.Which ended at 5600 last moth. Stock specific Tata stell and JSW steel are winner of the day. 

Thursday, March 1, 2012

market today

This todays day with some losses increased. half percent down  5339 is todays close on nifty 45 points down.
we now come to some market driver stock on discuss shortly..
  1. DLF is today big loser on largecap site. This reality stock lose ground on news that Veritas Financials  announced that there is huge financial mis discipline and driven stock down about 4 to 6 percent. 
  2. Maruti Suzuki is todays winner. Auto sale report of February12 announced today and this is great news for Maruti Suzuki. Maruti stock increased about 4 odd percent. 
  3. Mahindra and Mahandra is disappointed today in sales report. This is top loser on large cap stocks.
  4. BHEL and Larsen & Tubro is another capital goods space have seen profit booking today. both stock loosed about 2 to 3 percent.
  5. Banks are also today down . Axis bank is most in all 3 percent down in today's trade.  

Wednesday, February 29, 2012

Market report

Today market open with positive note and manged to stay above level of 5350 but ended with flat noted. European market opened flat today and go higher level. I think market is consolidating in range between 5300 to 5600 and wait for cue form budget coming to 12 march as budget session start.
   ONGC is on stock of today opened at 295 and traded higher for day. there is news that divestment issue is finalized and base price fixed at 290 . Stock was 280 level yesterdays close and todays open was due to this news flows in stock.

Tuesday, February 28, 2012

BHEL

Bharat heavy Electrical corrected yesterday from 325 to 290 price level  but it bounce back from level of 290 to again 309 level and closed 208 odd level. this level is support after  stock split and now trading on that. future prediction is that this stock will manage to go above this level and have target of 335 and above this level in coming days. There is FPO announcement is one trigger for this stock. FPO is expected in next fiscal year likely. upto that this stock will rally. we are waiting for target of 335 now.

Sunday, February 26, 2012

HDFC block deal

On 24 February second block deal in HDFC. Citi group exit from HDFC and sell stake. beyond details. We talking about Stock price.
 Last block deal was Carlyl finance exit from HDFC that time stack slip from 700 to 680 level. and recovered from this level to again level of 700 and above. This time on day of deal this stock slipped to 670 level. Now in future what will be the price movement of stock. I think this will recover again to 700 level. With market out performance this stock is neutral. But other thing is this not under performer in bad market . there is lowest level of 600 for stock and 52 week high of 734 this is run and stock aways try defensive. So I don't think much lower side on this counter.

Wednesday, February 1, 2012

NIFTY: RESISTANCE BREAK ?

today nse index had show breakout movement at resistance at 5200 Data shows

  • 25 oct 2011 high 5211 volume 221,084,588 after that market again went to lower level
  • 27Jan 2012 level 5217 volume 215,923,377 market lost more than 100 point  on 31 Jan2012 
now look in both cases volume is 221,084,588 and 215,923,377there is not more than 10% gap 
  • now today on 01feb2012  closing at 5235 and volume is 552,000,000 some what near this 
  look at this 221,084,588*0.1 = 22108458
  • this is 10 % of volume that shows resistance 
  • this seem
221,084,588 +22108458 =  243,193,046


volume greater than 243,193,046 and closing above 5230 is technically break out of resistance 


now what happen tomorrow is gap up is confirmation of break 
because remember last time this level was broken  very panicky with gap down opening during US debt crisis talk 


technically this look like break of resistance 


but last time also this level breached by gap up opening 


we will see tomorrow what will happen 


If this is break or not?

ITC STOCK

ITC is stock from FMCG counter i.e. Fast Moving Capital Goods space
It having two businesses
  • older and base is tobacco business major revenue come from this one thats why ITC is taken into consideration as cigarette company
  • second is FMCG food soap creams ,Hotel business,Paper business all this are secondary because since today all FMCG business have losses that loss is overlapped by profit in tobacco with high volume 
tax structure on tobacco business is major concern for tobacco and cigarette business of ITC
this is reason why ITC stock reacting on BUDGET and tax policies
  • upto BUDGET it have no any thing to push up from lower levels
  • but when market is improving in that sense of recovery will happen in this stock
  • this stock is major on stock exchange
  • this is fifth by market capital on exchange now a days
  • this company having govt investment in it through UUTI government scheme
  • this co have no owner as specific having holding in it

Monday, January 30, 2012

Nifty

Nifty 50 having resistance at 5200 again tasted on 30 jan 2012
Volume wise test suggest this time no broken


  • on 27 Jan closed on 5204 with total volume 215,923,377
  • on 25 oct 2011 on 5211 volume was 221,084,588
  • there is about 10%  volume differ 
  • today nifty is again at 5100 
  • hence resistance is proved

Sunday, January 29, 2012

EQUITY DERIVATIVES

  • Call option is contract traded on stock exchange on underlying stock price buy is commited to buy a quantity of lot of underling on expiry factor affecting contract
  1. volatility
  2. dividend
  3. time to expiry