MACRO ECONOMIC FACTORS
Inflation figures stood at 3.83 % at the end of this week compared with 3.79% last week.
The yield on the 10-year G – Sec has dropped down to 6.67%.
Crude oil price stood at US$90.22 per barrel by the end of the week. Over the week crude oil prices hovering around US$86.99-90.22 per barrel.
Rs per US$ exchange rate closed at 39.36 by the end of the week. Exchange rate Rs/US$ continued to trade around Rs.39.36 to 39.58
Saturday, January 26, 2008
Friday, January 25, 2008
SVEC Constructions IPO Subscription opens Feb 04
SVEC Constructions IPO Subscription starts on Monday, February 04, 2008. SVEC Constructions IPO price band has been fixed at Rs. 85 to Rs. 95 per share. SVEC Constructions Limited is based out of Hyderabad and has a lot in common with IVRCL infrastructure. Both these companies specialise in irrigation related projects. SVEC Constructions IPO Subscription closes on Friday, February 08, 2008. The funds raised from the IPO will be used by SVEC Constructions for expansion purposes as well as regular business purposes.
Wockhardt Hospitals IPO
Wockhardt Hospitals IPO Subscription opens on Thursday, January 31, 2008. Wockhardt Hospitals IPO price band has been fixed at Rs. 280 to 310 per share. Wockhardt Hospitals is likely to emerge as the market leader since its much bigger in sheer balance sheet size when compared to Apollo Hospitals and Fortis Healthcare. Wockhardt Hospitals Limited is a part of the Wockhardt Group which already has two group companies listed and traded on the Indian stock markets. Wockhardt Hospitals IPO Subscription closes on Tuesday, February 05, 2008. Post IPO, Wockhardt Hospitals Limited will be listed on both the NSE and the BSE.
Earning Growth VS Earning Value
One of the most important Ideas in investing is diversification. one should have balance between a growth stocks and value stocks. I mean a balance of different types of investments, as well as investments in different types of sectors and companies. In order to have a diversified investment portfolio, it is important to have a mix of growth stocks and value stocks. This is also true if you include stock investments in your retirement plan. Growth stocks and value stocks differ, and so it is a good idea to understand the basic differences between the two.
Growth stocks
Growth stocks are those that represent rapid growth . They generally offer higher returns on the stock investments made. However, with those higher returns also come higher risks. A stock's value with growth stocks is usually determined on potential. Growth for small companies is general a yearly return of at least 10%, and for larger companies, it should be around 7%. Some stocks have even higher returns in sectors that have higher potential. When incorporating growth stocks in your portfolio, it might be a good idea to set a reasonable level at which you will sell. This can help you earn a profit and get out before a bear market destroys the value of the stock.
Value stocks
Despite what the name may lead you to believe, value stocks are not usually cheap. They are, however, considered to be good deals. They are solid, steady companies. Their growth is slower, but their strong fundamentals make them more likely to survive a bear market. While losses occur, they are usually less dramatic than price drops of growth stocks. However, by the same token, you won't experience as dramatic profits. A good strategy for value stocks is to look for the 52-week low and try to buy stock at that level. That way you are more likely to make a profit down the road.
In general, growth stocks are compatible with a more short-term investment plan (and an investment strategy based on technical analysis), and value stocks are compatible with a long-term plan (and an investment strategy based on fundamental analysis). It is important to evaluate your stock investments every few months to make sure that properly diversified in your stock holdings. Too many growth stocks can pose great risk to your investment portfolio. And too many value stocks may prevent your portfolio from reaching its potential.
As always, it is important to thoroughly research your investments. No matter the advice you get, you can still lose money. Any investment represents a certain amount of risk.
Growth stocks
Growth stocks are those that represent rapid growth . They generally offer higher returns on the stock investments made. However, with those higher returns also come higher risks. A stock's value with growth stocks is usually determined on potential. Growth for small companies is general a yearly return of at least 10%, and for larger companies, it should be around 7%. Some stocks have even higher returns in sectors that have higher potential. When incorporating growth stocks in your portfolio, it might be a good idea to set a reasonable level at which you will sell. This can help you earn a profit and get out before a bear market destroys the value of the stock.
Value stocks
Despite what the name may lead you to believe, value stocks are not usually cheap. They are, however, considered to be good deals. They are solid, steady companies. Their growth is slower, but their strong fundamentals make them more likely to survive a bear market. While losses occur, they are usually less dramatic than price drops of growth stocks. However, by the same token, you won't experience as dramatic profits. A good strategy for value stocks is to look for the 52-week low and try to buy stock at that level. That way you are more likely to make a profit down the road.
In general, growth stocks are compatible with a more short-term investment plan (and an investment strategy based on technical analysis), and value stocks are compatible with a long-term plan (and an investment strategy based on fundamental analysis). It is important to evaluate your stock investments every few months to make sure that properly diversified in your stock holdings. Too many growth stocks can pose great risk to your investment portfolio. And too many value stocks may prevent your portfolio from reaching its potential.
As always, it is important to thoroughly research your investments. No matter the advice you get, you can still lose money. Any investment represents a certain amount of risk.
Earning Growth and Earning Value
One of the most important Ideas in investing is diversification. one should have balance between a growth stocks and value stocks. I mean a balance of different types of investments, as well as investments in different types of sectors and companies. In order to have a diversified investment portfolio, it is important to have a mix of growth stocks and value stocks. This is also true if you include stock investments in your retirement plan. Growth stocks and value stocks differ, and so it is a good idea to understand the basic differences between the two.
Growth stocks
Growth stocks are those that represent rapid growth . They generally offer higher returns on the stock investments made. However, with those higher returns also come higher risks. A stock's value with growth stocks is usually determined on potential. Growth for small companies is general a yearly return of at least 10%, and for larger companies, it should be around 7%. Some stocks have even higher returns in sectors that have higher potential. When incorporating growth stocks in your portfolio, it might be a good idea to set a reasonable level at which you will sell. This can help you earn a profit and get out before a bear market destroys the value of the stock.
Growth stocks
Growth stocks are those that represent rapid growth . They generally offer higher returns on the stock investments made. However, with those higher returns also come higher risks. A stock's value with growth stocks is usually determined on potential. Growth for small companies is general a yearly return of at least 10%, and for larger companies, it should be around 7%. Some stocks have even higher returns in sectors that have higher potential. When incorporating growth stocks in your portfolio, it might be a good idea to set a reasonable level at which you will sell. This can help you earn a profit and get out before a bear market destroys the value of the stock.
Thursday, January 24, 2008
Trading on Margin
Trading on margin can be risky but an excellent tool for creating wealth.
However, one word of advice.Do not let the compulsory trader in you burn your chances for winning.
Trading on margin is not for the weak hearted but when a well designed system for trading includes proper money management strategy then it need to be considered.
Money management is an essential component for trading in the stock.There can be no excuse for remaining absent minded about your money management skills. Educate yourself and move into your trading positions with an understanding and preset strategy for capital distribution. Each trader should recognize the importance of knowing how much to buy and sell and how many positions to hold at any one time.
Go into each trade with absolute confidence. Find a trading strategy that makes sense for your personality and always take a winning mindset into the game of high stakes money. Your financial education will be your greatest lever. As a well trained investor you can gain far higher returns with far less risk and much less money.
However, one word of advice.Do not let the compulsory trader in you burn your chances for winning.
Trading on margin is not for the weak hearted but when a well designed system for trading includes proper money management strategy then it need to be considered.
Money management is an essential component for trading in the stock.There can be no excuse for remaining absent minded about your money management skills. Educate yourself and move into your trading positions with an understanding and preset strategy for capital distribution. Each trader should recognize the importance of knowing how much to buy and sell and how many positions to hold at any one time.
Go into each trade with absolute confidence. Find a trading strategy that makes sense for your personality and always take a winning mindset into the game of high stakes money. Your financial education will be your greatest lever. As a well trained investor you can gain far higher returns with far less risk and much less money.
Wednesday, January 23, 2008
Is Stock Trading Full Time Profession ?
Trading should be profitable and time efficient. Enjoy the endless news and different opinions from so called analysis. P.E ratio, eps, roe and all other complex teerms to understand the potential of the company company management structure, expansion plans, product developement, etc. are all pieces in a complex and often very puzzling profile for any company you may be studying.
Stock trading full time kya ? Market analyzation can take the stress out of over indulging in market babble and deliver a far more profitable time/ROI ratio.
The bottom line is that there are an plenty of market forces that will move the price of a stock. Market forces can be measured, represented, and evaluated using indicators so the trader can move with advantage in any market trend.
Therein lies the importance of mathematical based systems for trading that objectify the evaluation of stock choices, quantify the historic patterning of an individual stock pick, and remove the traders anxiety over what forces may be playing the most significant role in their stock portfolio's movement.
Here are a few that can be used for purposeful trading.
Fibonacci Numbers and the Golden Ratio
Fibonacci numbers were originally developed well before the world even knew what publicly traded stocks were. The application of Fibonacci numbers and the Golden Ratio to stock prices revealed that stock markets trends tended to be more geometric than most researchers first realized. The premise is that human nature is predictable, and that the resulting changes in the stock prices are attributable to this expected behavior.
This is an interesting concept, but it was adapted to the stock market, not developed for it. Some stock trading systems may incorporate portions of this tool, but there are other indicators that should be accounted for in order to successfully predict future trends.
Elliot Wave
Elliot waves were developed to classify price fluctuations as either impulse waves or corrective waves. They are a simplified way of graphing actual stock price fluctuations. Elliot waves can help you identify trends and predict stages of a stock cycle. Just like any other investing tool, they are not always correct, but they can improve your ability to forecast market fluctuations.
Investors can benefit by using this tool, but it should be supplemented with additional tools to provide a more complete picture of expected stock price trends. Elliot wave charts are useful, but they do not fill the need for stock trading systems.
Bollinger Bands
Bollinger Bands were developed by John Bollinger as a way for measuring volatility in stock prices. One moving average serves as a baseline average. A higher band serves as the upper range of stock price, while a lower band likewise serves as a lower range. The greater the range between the bands, the more volatile the stock price is.
Bollinger Bands are a simple way for identifying risks and opportunities within stocks by giving a somewhat clearer indication of what the likely ranges for change will be in the future. This system has had some successes and provides a simple method for predicting stock price behavior.
Stock trading full time kya ? Market analyzation can take the stress out of over indulging in market babble and deliver a far more profitable time/ROI ratio.
The bottom line is that there are an plenty of market forces that will move the price of a stock. Market forces can be measured, represented, and evaluated using indicators so the trader can move with advantage in any market trend.
Therein lies the importance of mathematical based systems for trading that objectify the evaluation of stock choices, quantify the historic patterning of an individual stock pick, and remove the traders anxiety over what forces may be playing the most significant role in their stock portfolio's movement.
Here are a few that can be used for purposeful trading.
Fibonacci Numbers and the Golden Ratio
Fibonacci numbers were originally developed well before the world even knew what publicly traded stocks were. The application of Fibonacci numbers and the Golden Ratio to stock prices revealed that stock markets trends tended to be more geometric than most researchers first realized. The premise is that human nature is predictable, and that the resulting changes in the stock prices are attributable to this expected behavior.
This is an interesting concept, but it was adapted to the stock market, not developed for it. Some stock trading systems may incorporate portions of this tool, but there are other indicators that should be accounted for in order to successfully predict future trends.
Elliot Wave
Elliot waves were developed to classify price fluctuations as either impulse waves or corrective waves. They are a simplified way of graphing actual stock price fluctuations. Elliot waves can help you identify trends and predict stages of a stock cycle. Just like any other investing tool, they are not always correct, but they can improve your ability to forecast market fluctuations.
Investors can benefit by using this tool, but it should be supplemented with additional tools to provide a more complete picture of expected stock price trends. Elliot wave charts are useful, but they do not fill the need for stock trading systems.
Bollinger Bands
Bollinger Bands were developed by John Bollinger as a way for measuring volatility in stock prices. One moving average serves as a baseline average. A higher band serves as the upper range of stock price, while a lower band likewise serves as a lower range. The greater the range between the bands, the more volatile the stock price is.
Bollinger Bands are a simple way for identifying risks and opportunities within stocks by giving a somewhat clearer indication of what the likely ranges for change will be in the future. This system has had some successes and provides a simple method for predicting stock price behavior.
Monday, January 21, 2008
my view
the whole stock market as turned down not only for dowjones, nasdaq. but the other asian economies have turned back, the shanghai market which was booming for the last 2 yrs have started the fall, in the last few quarters the emerging markets have out performed. the indian markets have cleary made a top on both short & medium term.
its better to buy a stock when a buy signal comes rather than jump into for bottom fishing.
its better to buy a stock when a buy signal comes rather than jump into for bottom fishing.
Weekly Report
MACRO ECONOMIC FACTORS
Inflation figures stood at 3.79 % at the end of this week compared with 3.50% last week.
The yield on the 10-year G – Sec has dropped down to 6.77%.
Crude oil price stood at US$90.57 per barrel by the end of the week. Over the week crude oil prices
hovering around US$90.13-94.2 per barrel.
Rs per US$ exchange rate closed at 39.30 by the end of the week. Exchange rate Rs/US$ continued to
trade around Rs.39.26 to 39.31.
Nifty
Market closed weak on a weekly basis. On weekly charts we have a bearish pattern in place indicating the
bearish trend in the market. The market opened the week on a strong selling pressure at higher level. Market failed
to show any strength of bounce back. Market is likely to remain volatile this week and is likely to oscillate in a range
of 5575 on the down side and 5865 on the upper side. Major support for Nifty is at 5575, 5395and 5101. And major
resistances are at 5865, 6050 and 6340.
Inflation figures stood at 3.79 % at the end of this week compared with 3.50% last week.
The yield on the 10-year G – Sec has dropped down to 6.77%.
Crude oil price stood at US$90.57 per barrel by the end of the week. Over the week crude oil prices
hovering around US$90.13-94.2 per barrel.
Rs per US$ exchange rate closed at 39.30 by the end of the week. Exchange rate Rs/US$ continued to
trade around Rs.39.26 to 39.31.
Nifty
Market closed weak on a weekly basis. On weekly charts we have a bearish pattern in place indicating the
bearish trend in the market. The market opened the week on a strong selling pressure at higher level. Market failed
to show any strength of bounce back. Market is likely to remain volatile this week and is likely to oscillate in a range
of 5575 on the down side and 5865 on the upper side. Major support for Nifty is at 5575, 5395and 5101. And major
resistances are at 5865, 6050 and 6340.
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