Barrel shooting and trading strategies are the two basic ways of stock market trading. Stock trading strategies are used by investors to determine the stocks to buy and the time to sell. It also helps them protect their investments. Trading strategies outperform barrel shooting by a large margin. The different types of trading strategies, which count to over a hundred, are tried and trued methods that have worked well over many years. Before exploring new strategies, beginners in the world of investments are advised to investigate some of the basic trading strategies first.

Hedging

The way of protecting an investment through the reduction of the risks that are involved in holding a particular stock is called hedging. Buying a put option that allows the selling of the stock at a particular price within a certain period of time can offset the risk of a decrease in the stock prices. There will be an increase in the value of the put option once the price of the stock falls. The most expensive hedging strategy is to buy put options against individual stocks. People with broad portfolios will do better if they buy a put option on the stock market itself because it will protect them against general market declines. Selling financial futures such as the S&P 500 futures is another way of hedging against market declines.

Dogs of the Dow

Dogs of the Dow, which gained popularity during the 90s, is a strategy that involves buying of best-value stocks in the Dow Industrial Average. These are ten stocks with the lowest P/E ratios and the highest dividend yields. This strategy presents the idea that the ten lowest companies on the Dow have the most potential for growth over the coming year. The companies listed on the Dow Index are those which offer a reliable investment performance. Pigs of the Dow is a new twist on the Dogs of the Dow. In this strategy, five of the worst stocks on the Dow are selected by looking at the price decline percentage from the previous year. Like in the Dogs of the Dow, the idea in Pigs of the Dow is that the worst five stocks are going to rebound more than the others.

Buying on Margin

The strategy of buying stocks using borrowed money, which is usually from the broker, is called buying on margin. Because they receive more stocks despite the low initial investment, the investors are given much more return by margin buying than by full payments. In the event that the stock loses its value, the losses in margin buying will also be correspondingly greater. In order to limit the losses in case of market reversal, investors should have stop-loss orders when they buy on margin. The margin amount has to be limited to about 10% of the total account value.

Dollar Cost and Value Averaging

The strategy that involves the investment of fixed dollar amounts on a regular basis is called dollar cost averaging. One example of this is the monthly buying of shares from a mutual fund. A drop in the price of the fund will cause the investors to receive more shares for their money but a raise in the price will cause the fixed amount to buy fewer shares. Value averaging, which is an alternative to dollar cost averaging, involves the decision of the investors to set a regular value that they wish to invest on. For example, the investors decide to invest $100 per month in a particular mutual fund. If the price of the fund increases, the investors also put in a higher dollar amount in that fund but if the price of the fund decreases, they spend less money. This will average out their investments to the original $100 per month. Value averaging, as a percentage return on the money invested, outperforms dollar cost averaging most of the time. When used as a part of broader trading strategies, value averaging can actually help in securing the growth of investment funds.

Budget 2014: Breather for FDI!

Budget 2014: Revenues and Expenditure

• Estimates that total expenditure will be Rs 17.95 trillion in 2014/15
• Revenue deficit seen at 2.9 per cent of GDP in 2014/15
• Capital receipts seen at Rs 739.5 billion in 2014/15
• Retains tax collection targets and makes no major changes to direct tax rates
• Allocates Rs 2.29 trillion for defence spending in 2014/15; capital outlay raised by Rs 50 billion over interim budget
• Earmarks Rs70.6 billion to create 100 'smart cities'
• Proposes Rs 50 billion for warehousing capacity; Rs 100 billion of private capital for start-up companies; and Rs 378 billion of investment in national and state highways
• Rs40 billion for affordable housing proposed through national housing bank; Rs 80 billion proposed for rural housing scheme

• Budget 2014: Cigarettes to lit Fire in pockets

   FM Jaitley targets raising Cigarettes prices which may lit Fire in common man’s pockets

• To raise export duty on bauxite to 20% from 10%
• To cut excise duty to 6% from 12% on footwear below Rs1,000
• To raise excise duty on cigarette between 11%-72%
• To raise excise duties on chewing tobacco, cigars
• To raise excise duty on aerated water containing added sugar
• Raises excise duty on pan masala to 16% from 12%

 

Budget impact on consumer goods

• Footwear (excise duty reduced from 12% to 6%)
• LED TVs with panel below 19 inches (basic custom duty on import of panel made nil)
• CRT TVs

• Gutka (excise duty hiked to 70% from 60%)
• Aerated water products with added sugar
• Cigarettes (excise hike on some cigarettes to 72% from 11%)

 

Budget 2014: Education

• To set up Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh.
• To set up five more IITs in Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala.
• To set up five more IIMs in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra.

 

Share Market Terms

INVESTING

Investing is not just about depositing your savings in the bank every few months. It’s about growing your money. It’s about making your money work for you.

INVESTING IS A LONG TERM ACTIVITY

When you invest, you  buy an asset like shares, mutual funds, gold or real estate when it’s available at a bargain and wait till its price go up. You may have to wait for a long time, say 5 or 10 years to get a real appreciation for your invested funds. So,  investing is a long term activity, you have to wait for your rewards.

IT’S ALSO ABOUT GROWING YOUR MONEY PRUDENTLY.

Money is a weapon that’s to be used very very carefully or else, it can backfire within no time resulting in a total ruin of your life. By being ‘prudent’ we  mean, determining an action or a line of investing that’s practically wise, judicious and careful.
When you look around for opportunities to invest, it’s natural to stumble upon ideas like multi level marketing of certain financial schemes or money chains etc that may seem to be too good an opportunity to make a quick buck. It’s important not get tempted by such investment offers. Any investing decision you take must be practical, legal, safe and capable of creating wealth for you in the long run.

REWARD FROM INVESTMENTS

Investments range from risky types like stocks  to very safe ones like fixed deposits. Depending on the type of investment you’ve made you get return in the form of rent, interest, dividends, premiums, pension benefits or appreciation in value. The more risk you take, the more you earn as rewards.

OBJECTIVES OF INVESTING

Objectives or purpose of investing would be different for different people.  By choosing to budget your expenses, accumulate money, invest that accumulated fund and limiting the amount of debt – you can achieve most of your life’s goals. Normally, a person would invest with one or many of the following objectives in mind:

• A Regular Income
• Creation of wealth
• Preserving his capital
• Planning for retirement life
• Education /marriage of his children.
• To start a business

THE PROCESS OF INVESTING

The process of investing is quite simple-
Depending upon the money you got, you will have to short list the type of asset suitable for investment.
Next, you’ll have to assess yourself and find out how much knowledge you have in that particular asset category. This assessment will tell you where you stand right now, and the amount of preparatory work you need to do before investing you money in it.
Once you gain enough knowledge, try to draw a plan to invest systematically – get access to the right information, plan properly and make the right choice.

REASONS TO INVEST

Why does investing acquire so much of importance? That’s because of three core benefits of investing-
First, the probability that you’ll beat inflation.
Second, the probability of achieving your financial goals quickly.
Third, the probability of building something for your next generation.
An investor’s  main focus should be to beat inflation.  Inflation and it’s after effects were discussed in our previous articles.  You’ve to invest in such a way that the rate of return beats the inflation rate. If you don’t do that, it eats away your returns. Unless your rate of return beats the inflation rate, you’re not growing your investments.We said ‘probability’ because, investments carry the risk of not hitting the desired targets. When you set higher targets ( higher returns) the risk of not achieving it is also high.
Apart from achieving financial goals and securing your children’s future, another important reason would be to plan for your retirement. When do you plan to retire? At 60 or at 50? You can opt to retire when you have a sufficient amount of wealth so that, you can maintain the standard of living that you are maintaining today. The earlier, the better!
In the coming lessons, we take to you through different aspects of investing. Each lesson has a concept to share. At the end, you’ll know what investing is all about, why it’s essential to invest early, different avenues to invest etc..In our next article , let’s see why investing is the most important activity one should have.

The markets ended on a high note last week after three weeks of sideways movement. It was the hopes built around the first budget of Modi government that made the sensex and the nifty rally 862 and 242 points respectively.
Going ahead, the Big day is here. Millions of people, corporates and businessmen are waiting to hear what the finance minister has worked out for each one of them so that they may retain the hope of good days ahead. A friendly budget which will not impact the living standards of the people negatively and which will kick off the growth process will immediately spur an upward movement that may crack the 27,000 level (sensex) and 8,000 levels (nifty) for the first time. But on the other had if the budget turns out to be a disappointing one (especially for the FD investors) we’re going to witness a plunge that may dip below 23,500 (sensex) and 6,500 (Nifty). Finally, if the budget happens to be an ordinary one which leaves some happy n some sad, it’s going to have a mixed reaction with a short rally on the budget day and then a retreat back to where we’re standing now.

Now, we can’t really say what exactly is going to come out of Mr. Arun Jaitley’s box on July 10^th. So we suggest investors to watch the game from the sidelines. It will be prudent for those who have profitable positions in cash market to liquidate a portion and take some profits home. Investors having loss positions may hold on to their investments for a gamble – should the budget spark a rally, they might get an opportunity to off load their investments at a profit or at least at par. Remember that not all is well with the fundamentals and Mr. Modi had earlier hinted about taking tough steps that may not impress the common man. Apart from the budget, the first quarter earnings results will also kick off this week with Infosys results on July 11th. For investors looking for opportunities in banking sector , Indian overseas bank looks fairly valued at the present market rate of Rs 84.
Expect a volatile week ahead. We expect the sensex and the nifty to trade in a range of 25,000-26,500 and 7,550-7,890 for the nifty assuming that the budget is going to be a reasonably good one.

Commandment 1: Don't attempt to time the market

Timing the market is no guessing matter. To the little investor, timing the market is like taking a random walk. Most people only recognise the correct path after already having set foot on the wrong one. One exception to this is “bottom-fishing”, an approach to buy stocks that you want in your portfolio at prices below the prevailing levels. This entails biding your time and buying into a market downturn before the others do (the age-old philosophy of buying low, selling high). The downside of this approach being that the stock you want may never see the downside you expect.

Commandment 2: Don't try to outguess the market

Market psychology is for shrinks, not for couch potatoes like we humans. What captures the imagination of the market is transient. This means that what is “in” today is “out” tomorrow. Most people only recognise the pattern after it has become apparent to almost everyone else and is too late to act upon. For example, if investment in technology appears to be the current flavour, you are probably already too late to cash in on the trend. In this instance, you should only invest in technology as part of a long-term balanced approach.

Commandment 3: Treat investing like marriage--go for the long haul

Short-term investing could go either way. Invest for the long term. Almost all market pundits and investment studies show that stock investing should be part of a long-term strategy, lasting for five to ten, or even 20, years or longer. Beware that not every year will result in a positive return on your investment. However, over time the plus will likely overwhelm the minus by a substantial margin.

Commandment 4: Stay clear of broker's advice, hot tips and "multibaggers"

Every portfolio advisor is not Sharekhan (J) who swears by sound investment principles. Think. Wouldn't most brokers be tempted to make their living by goading their clients to constantly move in and out of positions, thus garnering commissions? This is diametrically opposite to Commandments 1, 2 and 3. For most people, stock advice is like a game--of darts! Only accept advice if the person has your financial interest in mind and is not making a living by selling your stock. Of course never buy from someone who calls on you and gives you advice. J

Commandment 5: Almost always invest in blue chips and blue chips-to-be

Do invest in companies that are considered blue chips. These include not only the BSE 100, but also the others that are slowly stepping into the big league. Invest only in established companies with a good track record. Beware that not every blue chip will rise after you buy it, and that even these otherwise stellar performers will have their good months/years and bad months/years. But over time, the fluctuations will even out and you would be left with a considerable net plus. Also invest in companies that have a good record of declaring dividends (and if you find the solitary one that increases its dividend pay-out each year...you know what to do).

Commandment 6: Prefer steady installment-like buying of stock to buying at one go

Investing should never be done in panic or be treated as an emergency. Purchasing your favourite few is best accomplished at a steady rate over time, so as to avoid the ups and downs of the market. This is called rupee cost averaging and is one of the safest approaches to investing. It works just like any other habit: you buy, regardless whether the price is up or down, until you reach the desired number of shares of that stock.

Commandment 7: Diversify, diversify and diversify

Do diversify your portfolio, both within your selected sectors and within the overall industry. For example, don't invest in only technology because it happens to be in vogue but consider the other industries as well.

Commandment 8: No shopping with borrowed money and maintain a core reserve

Never use margin money to buy stocks. You should not invest money you don't have. A simple and basic rule is to not leverage yourself to an extent that when the tide turns against you, all you are left with is nothing.

You never know when a financial emergency might arise. That's why you must keep a comfortable cash reserve in your savings account, so you do not have to tap into your long-term investments. A reserve equal to six months of salary should be just about ideal.

Commandment 9: Set realistic financial goals

Treat a 500% return with as much derision as you would a 5% return. Decide what you need the money for: To retire early, to finance your kid's college education or to fund your daughter's marriage or just to preserve and build wealth? Whatever the goal you set, make sure it is reasonable and attainable. Expecting too much will only lead to disappointment down the road. Aim for an expected return level that is realistic--not mediocre or overambitious.

Commandment 10: There are 10 more commandments

For those who thought that was the last of the ten commandments I have good news. There's more. Ensure that your portfolio size is controllable (15 stocks is about ideal) and your stocks are well researched. Checkpoints: Is the management quality above board? Does the company have a positive cash flow? Does it have the capability to compete on a global scale? Most importantly, is it shareholder friendly?

Finally, leave your emotions behind when you enter the world of investing. Follow the ten commandments. Time is on your side. Investment success won't happen overnight, so stay focused on long-term returns and avoid overreacting to short-term market swings. Remember, investment success depends on time, not timing.
Sharekhan has the best stocks under its coverage. Invest in them for the long term for healthy returns.

In line with the key identified investment themes (policy push-driven re-rating of construction, power and public sector undertakings, and early beneficiaries of an economic revival, like auto and financial services), we are adding
LIC Housing Finance, 
TVS Motor Company, 
Gabriel India and  
Gateway Distriparks
to the Top Picks basket. We believe that a possible pull-back or correction in these stocks after the recent upsurge would offer an attractive opportunity for investors to accumulate these stocks with a little longer time horizon.

Country's largest carmaker Maruti Suzuki India (MSI) reported a 5.5 percent decline in total sales in March at 1,13,350 units as against 1,19,937 units in the same month last year. The company said its domestic sales declined  by 5.2 percent during the month to 1,02,269 units as against 1,07,890 units in March 2013. Sales of mini segment cars, including M800, Alto, A-Star and WagonR, declined by 11 percent to 40,085 units as compared to 45,047 units in the year-ago month, MSI said in a statement.
The company said sales of the compact segment comprising Swift, Estilo, Ritz rose by 9.3 percent to 28,285 units in March this year as against 25,868 units last year, reports PTI. 12:50pm HSBC's India manufacturing PMI down in March HSBC's India manufacturing PMI declined in March at 51.3 versus 52.5 in February, but remained above the waterline, indicating positive growth. "Growth in the manufacturing sector eased on the back of weaker growth in output and a slowdown in order flows from domestic clients.
By goods, consumer goods firmed, but the production of investment goods remains subdued according to panellists. Looking ahead, the recovery is likely to prove protracted. Meanwhile, inflation eased in March, with the PMI index for input and output prices falling," the HSBC report said.
12:45pm Expert on RBI policy Kunal Shah, fund manager-debt, Kotak Mahindra Old Mutual Life Insurance said, "RBI has maintained status quo as per our and consensus expectations, though not clearly spelled out in policy but RBI is incrementally concerned about sticky growth underperformance." According to him, RBI has hinted that lead indicators do not point to any sustained revival in industry or services & hence believes that slower activity will help disinflate the economy which will support the fight against inflation. "Till these processes evolve RBI feels current policy rates are appropriate and may not require further tightening," he added. "We expect current disinflation process to continue and core inflation to moderate further however sharp fall is unlikely in short-term. Monsoon will be key to watch as it can create short-term volatility in inflation path," Shah said.
12:40pm Rate hike unlikely if inflation does not rise further The Reserve Bank’s policy stance will be firmly focussed on keeping the economy on a disinflationary glide path that is intended to hit 8 per cent CPI inflation by January 2015 and 6 per cent by January 2016, the central bank said. It further said that at the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy. Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture, the RBI said.
12:35pm RBI says Since December 2013, the sharper than expected disinflation in vegetable prices has enabled a sizable fall in headline inflation. Looking ahead, vegetable prices have entered their seasonal trough and further softening is unlikely. Meanwhile, CPI inflation excluding food and fuel has remained flat. There are risks to the central forecast of 8 percent CPI inflation by January 2015 stemming from a less-than-normal monsoon due to possible el nino effects; uncertainty on the setting of minimum support prices for agricultural commodities and the setting of other administered prices, especially of fuel, fertiliser and electricity; the outlook for fiscal policy; geo-political developments and their impact on international commodity prices. 12:30pm Market falls further, banks extend losses Equity benchmarks extended losses in afternoon trade weighed down by banking and financial stocks.
The Sensex is down 81.76 points to 22304.51 and the Nifty down 20.25 points to 6683.95. India's biggest lender State Bank of India plunged 2 percent while rival HDFC Bank slipped 1.9 percent. Top private sector lender ICICI Bank and housing finance company HDFC dropped over a percent. Shares of L&T, ITC, HUL, Bharti Airtel, Maruti Suzuki, Bajaj Auto, BHEL and Coal India declined over 1 percent.

However, TCS held its early gains, up 2 percent followed by Wipro and ONGC with more than 1.5 percent. Infosys and Tata Motors climbed over 0.5 percent. 12:25pm RBI says Retail inflation measured by the consumer price index (CPI) moderated for the third month in succession in February 2014, driven lower by the sharp disinflation in food prices, although prices of fruits, milk and products have started to firm up. Excluding food and fuel, however, retail inflation remained sticky at around 8 percent. This suggests that some demand pressures are still at play.
12:20pm RBI increases the liquidity provided under 7-day and 14-day term repos from 0.5 percent of net demand and time liability (NDTL) of the banking system to 0.75 percent. It decreases the liquidity provided under overnight repos under the liquidity adjustment facility (LAF) from 0.5 percent of bank-wise NDTL to 0.25 percent with immediate effect.
12:15pm Rajan says the bank may need to push foreign banks to follow subsidiary model. Foreign banks avoid subsidiary route on priority sector norm, he adds.
12:10pm While addressing press conference after an announcement of bi-monthly review, RBI governor Raghuram Rajan said the bank had responded to Election Commission queries on banking licences. "We took Election Commission (EC) opinion on banking licences to stay away from controversy. Bimal Jalan had also suggested getting EC nod for banking licences," Rajan said. He further said the window for differentiated banking licences would be opened soon. 12:05pm Reserve Bank of India kept repo rate, at which banks borrow money from RBI, unchanged at 8 percent and cash reserve ratio at 4 percent. The central bank also left marginal standing facility rate and bank rate unchanged at 9 percent.
12:00pm The market remains volatile after the Reserve Bank of India kept policy rates unchanged that is in-line with expectations. The Sensex slips 15.12 points to 22371.15 and the Nifty declines 4.75 points to 6699.45. About 1174 shares have advanced, 1042 shares declined, and 131 shares are unchanged.   Top lenders State Bank of India, ICICI Bank and HDFC Bank decline 0.5-0.8 percent. Housing finance company HDFC slips 0.66 percent. State-run power equipment maker BHEL drops 1.7 percent, and engineering and construction major L&T is down 1.3 percent.

Media plays an important role in helping political parties interact with voters and most of the parties are now using the print media, television, radio and other social networks like Facebook, Twitter and WhatsApp to convey their messages to their prospective voters.
It is true that this would translate into huge revenue growth for the media industry at large. Also, it is expected that the formation of a stable government at the Centre post-election would result in a series of reforms to boost the economy and this would further enhance the revenue growth prospects of the industry. 
However, the sluggish economic growth and a decrease in consumer spending have strained advertisers, leading them to cut promotional budgets. This has adversely affected the media industry. 
As the election is around the corner, media stocks have become attractive to investors and some of the media stocks have witnessed smart gains since the Election Commission (EC) announced the schedule for the general election on March 5, 2014.
Also, the fast moving consumer goods (FMCG) companies are raising their advertising expenditure, which is expected to further boost the performance of the media companies.
Almost 75 per cent of television advertising is concentrated over just three categories -- FMCG, telecom and auto -- while FMCG continues to dominate television advertising. 

Nandan Chakraborty, MD, Institutional Equity Research, Axis Capital recommends investors to have a judicious mix of defensives and cyclicals in their portfolios now.
Sharing views on the current market rally, Chakraborty told CNBC-TV18 that in upmoves, consumer discretionary and BFSI stocks rise first. He expects 15 percent growth in Sensex levels by year-end. He sees big upside in select engineering and infrastructure  stocks.
Also, certain pockets of banking stocks may see large upmove going ahead. From the PSU banking pack, he is positive on  SBI  and PNB  . One can bet on auto ancillary stocks like  Motherson Sumi  in the midcap auto space, he added.
 Further, he added that earnings upgrade is seen only for companies with improvement in balance sheet, he said. Meanwhile, he expects further appreciation in the Indian currency.

IDFC and L&T Finance Holdings extended gains to 6 percent and 4.6 percent, respectively on hopes of banking license. 
The decision of whether to issue banking license or not during elections period is in hands of Election Commission and not the government. 
Election Commissioner VS Sampath on Tuesday said he has not taken a final call on the banking license issue. "
We will take up this issue on Monday," he added. Election Commission has raised legal ethical issues on banking licenses matter. 
12:20pm Talwalkars in focus Shares of Talwalkars Better Value Fitness rose 11 percent as buzz of stake sale gathered steam. According to media reports UK's health and fitness group David Lloyd is looking to buy 20 percent stake in the Indian health and fitness company. "The management of David Lloyd is in talks to pick up an equity stake in Talwalkars. This will help both companies to expand their current relationship," the report quoted an investment banker. 
12:10pm FII View Credit Suisse is bullish on India and considers elections to be a turning point for the country. Speaking exclusively to CNBC-TV18 on the sidelines of the Credit Suisse Asia Conference in Hong Kong, Sakthi Siva, Asia Strategist, Credit Suisse said that atleast 5-10 percent upside in the Indian market is possible from current levels in the near-term. Siva is quite confident that though India’s growth last year was the lowest in the past 10 years, but with politics, potential change, there could be a turning point for the Indian market and the economy. 
12:00pm The market extended an upmove in noon trade with the Sensex rising over 100 points supported by banks, capital goods and auto stocks. The Sensex rose 107.58 points to 22202.88 and the Nifty climbed 38.45 points to 6639.85. About 1468 shares have advanced, 869 shares declined, and 141 shares are unchanged. Top lender State Bank of India jumped 3.5 percent after Goldman Sachs has upgraded the PSU bank to buy from neutral rating and revised target price to Rs 2,080 from Rs 1,440 apiece. 
PNB and Bank of Baroda gained 2.5-3 percent while rivals HDFC Bank and ICICI Bank advanced 0.7 percent each. Axis Bank rallied 2 percent. Brokerage house Morgan Stanley added Axis Bank to its Asia ex-Japan model portfolio. The firm is positive on the stock given company's reducing risks in books. 
Telecom operator Bharti Airtel surged 3 percent followed by Hindustan Unilever, M&M, Hero Motocorp, BHEL and NTPC with 1-2 percent. However, state-run oil & gas major Oil and Natural Gas Corporation's stock (ONGC) is quoting ex- dividend today. It fell nearly a percent. The board of directors on March 24 have approved second interim dividend of Rs 4.25 per equity share of Rs 5 each for the financial year 2013-14.  
 Drug majors Sun Pharma and Dr Reddy's Labs declined more than 1 percent. Dr Reddy's Labs has launched Amlodipine Besylate (to treat high blood pressure) and Atorvastatin calcium tablets in US market.

Today the global scenario looks favourable, which may result in positive opening of the Indian markets. SGX Nifty is also trading 31.00 points higher.
Global Market
Asian shares raced to two-week highs on Wednesday, with investor confidence getting a much needed boost from upbeat U.S. data and lingering hopes China may take steps to stimulate its sagging economy.
US stocks Tuesday finished a choppy trading session higher, boosted by stronger-than-expected consumer confidence data. The main indexes recorded small gains after two days of losses.
European shares rebounded on Tuesday, anticipating of stimulus measures from the European Central Bank (ECB) and the Chinese central bank to help their economies fight off any slowdown.
Levels to watch out:
Supports @ 6570 - 6540 - 6510
Resistance @ 6600 - 6650 - 6680

10:30am Oberoi Realty jumps over 10%
 Oberoi Realty bought Tata Steel’s defunct manufacturing plant in Borivali, a western suburb in Mumbai. Oberoi Realty jumped 10 percent while Tata Steel rose 2 percent after the real estate developer announced buying the 25-acre land for Rs 1155 crore through e-auction
"The Committee of Independent Directors appointed for the oversight and governance of the sale process by the Tata Steel Board declared Oberoi Realty Limited as the highest bidder of the auction on the basis of their final bid of Rs 1,155 crore, after several rounds of bidding," Tata Steel said in a statement

MCX | Financial Technologies | Arshiya International | ONGC | ACC | Tech Mahindra | United Spirits | Dabur India | PNB | Tata Power | Mahindra & Mahindra Financial Services | Bharti Infratel | Mindtree and Axis Bank are stocks, which are in the news today.

Welcome to StockNod’s stock market school for beginners. Here you can learn all about the analysis of stock charts, technical analysis, and how to begin trading stocks and taking personal control over your financial future. This section of our site is continually growing as we add more and more articles and information so check back with us often as we expand our stock market education for beginners.

What is Technical Analysis?
Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like forecasting the weather, technical stock analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is most likely to happen to prices over time based on historic data. Technical analysis uses a wide variety of charts that show price over time. Technical analysis is applicable to stocks, commodities, futures or any tradable instrument like indices where the price is influenced by the forces of supply and demand. Price refers to any combination of the open, high, low, or close for a given security over a specific time frame. The time frame can be based on intraday, daily, weekly or monthly price data and last a few hours or many years. In addition, some technical analysts include volume or open interest figures with their study of price action.
What is Fundamental Analysis?
Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies. As with most analysis, the goal is to derive a forecast and profit from future price movements. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy. To forecast future stock prices, fundamental analysis combines economic, industry, and company analysis to derive a stock’s current fair value and forecast future value. If fair value is not equal to the current stock price, fundamental analysts believe that the stock is either over or under valued and the market price will ultimately gravitate towards fair value. Fundamentals is the starting point of most stock market analysis for beginners. By believing that prices do not accurately reflect all available information, fundamental analysts look to capitalize on perceived price discrepancies between market value and current price.

How to Read Stock Charts


A stock price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots. On the chart, the y-axis represents the price scale and the x-axis represents the time scale. Prices are plotted from left to right across the x-axis with the most recent plot being the furthest right. Types of stock charts include line charts, bar charts, point & Figure, and the ever popular candlestick charts.

Technical chartists use charts to analyze a wide array of securities and forecast future price movements. The word “securities” refers to any tradable financial instrument or quantifiable index such as stocks, bonds, commodities, futures or market indices. Any security with price data over a period of time can be used to form a chart for analysis. While technical stock analysts use charts almost exclusively, the use of charts is not limited to just technical analysis. Because charts provide an easy to understand visual representation of a security’s price movement over a specific period of time, they can also be of great benefit to discovering the fundamentals of a stock. A graphical historical record makes it easy to spot the effect of key events on a security’s price, its performance over a period of time and whether it’s trading near its highs, near its lows, or in between. Stocknod alerts are based on the same technical analysis as provided by stock charts, but provide users the same information without the convulsion of chart reading and interpretation.

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Stock Trading Online for Beginners
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Additional Stock Market for Beginners Resources

Online Stock Trading is becoming the most popular way to trade stocks because of computers. No longer do we have to call a broker and pay high commissions to buy or sell a stock. With just a few clicks of the mouse we are in total control of our investments. With online brokerages competing for your business, commission prices are at levels that are easily affordable. Access to information, known only to brokers a few years ago, is now at your finger tips.

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Today is special trading session....timing : 11am to 3.30pm

UMBAI/NEW DELHI: The government on Friday raised as much as $1.4 billion through share sales, in a push to shore up state finances before it heads into a tough parliamentary election next month

As a result, New Delhi managed to exceed its sharply-lowered budget target to raise as much as $3.1 billion via stake sales in some private as well as state companies in the fiscal year to March 31, after years of falling short.
Some analysts hope the new government, taking office in May, will speed divestments to bolster revenue generation and trim the budget deficit, as part of efforts to revive slowing economic growth.

Finance Minister P. Chidambaram had penciled nearly $9 billion in divestment revenues into his budget for this fiscal year, but slashed that figure last month to $3.1 billion.

He also set an ambitious target of raising $8.5 billion from further share sales in the next fiscal year, but this estimate could be revised by a possible successor after the election.

"With the next government in place, one would only expect better fortunes from stake sales," said N.R. Bhanumurthy, an economist at the National Institute of Public Finance and Policy think tank.

 "A recovery in growth sentiment in the market should help sell stakes quite early in the next fiscal year to meet the target."

Here are experts’ equity calls for the day on how the market is expected to trade:

Ridham Desai, Morgan Stanley: Market is prepping for a macro trade as evident in low stock correlations and high relative volatility. The implied volatility levels are low and given relative valuations, the direction of this macro trade could be down. We are overweight on technology, telecom, consumer discretionary and energy. We remain underweight on banks, industrials, consumer staples and utilities.

Sanjeev Prasad, Kotak Institutional Equities: The reward-risk balance for the Indian stock market is less favourable after the sharp run-up in prices of several domestic cyclical and PSU stocks. Current stock prices already discount FY15 EPS for most large-cap stocks. Earnings upgrades will largely depend on favourable government action in a few sectors, which depend on favourable election outcome and continuation of reforms