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?