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Dark secrets of share market

Dark secrets of share market
Stock market has some dark secrets that no broker tells. And what is more surprising is that these secrets belong to the steps taken to make money.
Let’s see how positive things turn negative
1# Commodity price risk
When price of commodity escalates, it brings joy to the companies that see commodities as output. But for companies that see commodities as inputs see loss in increased. Companies that don’t deal in commodities also face difficulties with price escalation. It is so because the customers start selling commodities. And it won’t be an exaggeration to say that commodity pricing effects the entire economy.
2# Headline risk
Do you remember the news of Fukushima nuclear crisis? This news surfaced in 2011 and it drowned all the stocks related to businesses related to nuclear power like uranium miners. It is called headline risk and no business is free from this risk. A torrent ofnews-reports regarding a business can have an adverse effect on its commodity p…
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How to choose the best stock for investment?

Stock options look lucrative because they promise huge-huge return but investors have their limitations and it isn’t possible for an investor to invest in every option. A careful selection of options and the wise comparison is needed before choosing a holding.
Here’re six rules of choosing a better stock option
Rule One: Invest in the company that has an easy-to-understand business model. For example take McDonalds and Starbucks. If you have good understanding of a business than others, it is an edge that you can leverage for your personal gains. Another example of sustainable business is Coca Cola that is considered a trusted investment.
Rule Two: Stick to the “best in breed” companies. Here you need understanding the difference between a brand and best-in-breed business. Brand is more a word for retailing than investment. For example branding has no place in mining sector but it rules retail market. There are some sectors where brands don’t exist but it doesn’t mean that these busine…

Reliance Infra arm moves Delhi HC over arbitration award against DMRC; stock up 5%

Subsidiary Delhi Airport Metro Express has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation.
Reliance Infrastructure share price rallied 5 percent intraday Tuesday after the company's subsidiary DAMEPL has moved the Delhi High Court over the execution of Arbitration award against DMRC.

"...subsidiary Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation (DMRC)," the company said in its filing.

The arbitral award was recently upheld by a single judge bench of the Delhi High Court.

In its petition filed under section 36 of the Arbitration and Conciliation Act in the division bench headed by Chief Justice of Delhi HC, DAMEPL has sought an order for the execution of the award dated May 11, 2017 passed by the Arbitral Tribunal and direct DMRC to pay a around Rs 5,200 crore, the company said.

Thi…

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…

Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…

Strong support for Nifty placed around 10,300; 3 stocks which could give up to 14% return

"The range of 10,300-10,500 levels for the Nifty will be crucial in the current expiry and the move is expected to remain volatile along with negative movement, as indicated by option open interest concentration," says Shitij Gandhi of SMC Global Securities Ltd.

After the recent short covering move seen in the opening of the week, the Nifty is trading near resistance level of 10,500 levels. The derivative data reflects that at current levels there is a lot of outstanding short position which is held in Nifty futures along with 10,500 and 10,600 call strikes.

Despite short covering rally we have not seen unwinding in 10,500 calls which indicates that the bearish scenario may continue.

The range of 10,300-10,500 levels will be crucial in the current expiry and the move is expected to remain volatile along with negative movement, as indicated by option open interest concentration.

If the Nifty50 falls below the 10,300 mark, it could correct to 10,100 levels on the back of furth…

Market Update: CNX IT up close to 2% led by HCL Tech, Tech Mahindra; Andhra Bank tanks 10%, Tata Steel most active

The market breadth was in favour of the advances with 1169 stocks advancing while 468 declined and 384 remained unchanged. On the other hand, in the BSE, 1388 stocks advanced and 674 declined and 94 remained unchanged.

The bulls were charging ahead in the Indian markets on Monday morning as the Nifty jumped 98 points at 10,325  while the Sensex was up 300 points.

The Nifty IT index jumped close to 2 percent led by HCL Tech which was up 3 percent while Tech Mahindra, Infosys, Tata Consulltancy Services and Wipro were the other top IT gainers

The Nifty PSU banking index was however down over 1 percent dragged by Andhra Bank which plunged over 10 percent after the Enforcement Directorate filed a charge sheet against a former bank director in an alleged Rs 5,000-crore bank fraud case involving a Gujarat-based pharma firm.

The other top losers included IDBI Bank, Canara Bank and Oriental Bank of Commerce.

From the Nifty the stocks which gained the most were HCL Tech which jumped 3 percent …