Archive for January 2011



Nifty smartly recovers to end flat.

Written by HARIKRISHNAN.T
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Today also Indian market closed in RED.

Nifty closed 5505 and Sensex in 18327.


There is no clarity in maret that’s why the market went down today also.

Inflation worries had spooked the markets last week and today concerns over Egypt pulled the markets down.


The next major support of Nifty is at 5400.

If the nifty break that support then it can come up to 5200. So if nifty break that support level then the best thing is to sell your shares and buy that in a lower margin.

Lalit Thakkar, MD-Institution, Angel Broking says, the Nifty may bottom out at 5,350-5,400 level.


Among Asian markets, Nikkei, Hang Seng, Straits Times and Kospi fell 0.7-1.8% while Shanghai was up 1.4%. Taiwan gained 0.5%.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



What a Terrible week.....

Written by HARIKRISHNAN.T
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It was a terrible week for Indian market.

Sensex and Nifty closed in red today also.

The market was red in Tuesday, Thursday and Friday.

The sensex closed 288 points below and Nifty closed 92 points below today.

So see current fall as a buying opportunity.

Buy shares which has good fundamentals.

RIL is a good choice. The current price is about Rs.920/-

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



IMPACT OF RBI DECISION

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Reserve Bank of India announces their new policy today for controlling the inflation in the country.

RBI upped the repo--the rate at which it lends to banks -- and reverse repo--the rate at which it borrows from banks--rates by 25 bps each to 6.5% & 5.5%, respectively.

CRR rate remains unchanged.

Inflation is likely to be a global concern in 2011 and emerging markets are facing significant inflationary pressures, says RBI Governor D Subbarao. 

The effect of RBI policy influenced market in a negative way as all of us expected.

SENSEX closed 181 points in RED.

NIFTY closed below 5700.

Banking sector faced large selling pressure. Almost all Banking shares closed in RED.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



INVESTORS WAITING FOR RBI DECISION

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In order to control Inflation RBI is taking several policies.

The main decisions of RBI will declare tomorrow.

Experts expecting that RBI will increase the repo and reverse repo rate by 0.25%

Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate.

Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.

In November the inflation was 7.48%

In December it was increased to 8.43%

Since the petrol price again increased and the rates of several household articles is still high, I think the inflation will be again high in the coming months also.

If RBI increase the repo and reverse repo rate, then the following effects will occur

  1. Banks have to give more interest to RBI
  2. So the bank will increase interest rate again.
  3. Demand for money will decrease.
  4. Money circulation will decrease
  5. Profit of companies will decrease.
  6. Profit of banks will also decrease.
  7. Banking sector performance will come down.
  8. Market will come down.

So in all aspect this week is very crucial for us because

Tuesday: RBI DECISION.

Wednesday: MEETING OF FEDERAL RESERVE SYSTEM.

Thursday: FUTURES OPTION SETTLEMENT.

Lets hope for the best.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "



Interesting Information

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when you watch various financial channels CNBC TV 18 or something like that we can see the real time fluctuations of different shares that is scrolling through the bottom of the channel.

That will contain mainly 3 things

1) The current value of the price.
2) The comparison with the open price.
3) A particular number like 30k or 45M or something like that

Do you know the meaning of that 'K' and 'M' ?

Actually K indicates the number of shares traded today in thousands. That is 4k means 4*1000= 4000 shares traded today.

M indicates the number of shares traded today in ten thousands. That is 3.4M means 3.4*10000=34000 shares today.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



MNP Effect in the market

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Mobile number portability (MNP) enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile network operator to another.

Mobile number portability introduced in our country today.


This affect the share price of Bharti Airtel, Reliance Communication, IDEA Cellular etc.

Bharti Airtel closed in Red (Rs.340.30)


IDEA also closed in Red (Rs.68.80)


Anil Ambani's Reliance communication closed in Green (Rs.133.25)


Regards Hari " लोका समस्ता सुखिनो भवन्तु "



NIFTY BREAKS 5700

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It was a terrible end to a terrible week. 

Indian market today also show vulnerability due to large selling pressure. 

Nifty breaks the support level of 5700 and ends in 5654.55 (-97.35). 

Since Nifty breaks 5700 level,experts expecting nifty in the 5400-5500 levels being tested over the next one-two months. 

The next major support of Nifty is at 5590.

Sectorally, by the end of the day, it was all red. 

The heavies losing were SAIL, HDFC, Axis Bank, Tata Motors, Maruti, Sterlite, GAIL. SBI, Reliance and L&T.


Regards Hari " लोका समस्ता सुखिनो भवन्तु "



Difference between Shares and Stocks

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In today's financial markets, the distinction between stocks and shares has been somewhat blurred. 

Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates.

However, the difference between the two words comes from the context in which they are used.
 
For example, "stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company. 

So, if investors say they own stocks, they are generally referring to their overall ownership in one or more companies. 

Technically, if someone says that they own shares - the question then becomes - shares in what company?

Reference www.investopedia.com

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



Todays Market

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Indian market was vulnerable today. Sensex and Nifty opened in green. Some instant sensex go above 200 points. But large selling pressure occurred and as a result sensex closed 27 points and nifty closed 8 points below. The main reason I expect for that the investors sell the shares taking small profit. Because there are negative reports on inflation. But Banking sector showed a positive trend. ICICI, AXIS bank, Yes bank etc closed in green. yes bank one of the stocks I advised to buy in the 260 range closed in green. 10 rupees increased for yes bank and closed in 270. In order to increase the liquidity the banks advised RBI to cut the CRR rate. Inflation will be a crucial problem in 2011. The 3 months will be crucial for Indian market. Lets hope for the best

Regards Hari " लोका समस्ता सुखिनो भवन्तु "





CORRECTION

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Inflation is currently hitting Indian market.

Foreign investors do not make investments in Indian market because of the current situation.

Market crashed today also because of large selling pressure.

Finance ministry and RBI constantly watching the current situation.

But no immediate action to control the capital flow. So there is a chance for continuing the current situation.

Markets may correct 8-10% from current level.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



Market Prediction

Written by HARIKRISHNAN.T
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All of us know that Our country is facing Inflation. 

Inflation is defined as a sustained increase in the general level of prices for goods and services. 

That means large amount of money is spreading in the system. 

So in order to control the inflation RBI must take sufficient actions. 

The most important thing is that RBI should increase the interest rates in order to control the liquidity of the system. 

The market facing correction for the past 3 days because of inflation issues and withdrawal of large amount of cash by foreign investors. 

If RBI take sufficient strategies, then the market will have a positive impact tomorrow.

The economy is likely to grow between 9 and 10% from the next fiscal year that starts from April 1, after growing 8.5% in the current fiscal year. Prime Minister said on Saturday. 

Lets hope for the Best.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



YES Bank

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  • Yes Bank Limited is an India-based banking company engaged in providing a range of banking and financial services. 
  •  Yes bank is one of the shares that I prefer in the banking sector. 
  • The current price of the share is Rs.284.50. 
  • Since the market faces correction in the last 2 days and there is a chance for continuing the current situation for 2 days, I expect the share price will again come down in the next 2 days. 
  • So it is the right time for buying Yes bank.
  • Hold that for at least 6 months. 
  • The experts predict that the share price can move up to Rs.400 within 6 months.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "



SOUTH INDIAN BANK

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  • The current price of SIB is about 25. 


  • The company split the shares thats why the price of the share came down. 


  • Now the face value is Rs.1/- Before splitting, the price go to a level of about Rs.480. 


  • We can expect good reports in the coming financial quarters. 


  • The bank has got ISO.9001 certificate in credit processing. 


  • The net interest margin is 3.11% (The net interest margin helps a company determine whether or not it has made wise investment decisions. A negative net interest margin indicates that a company has has a net negative return. A positive net interest margin indicates the opposite.). 


  • It is best for a Kerala bank. 


  • I expect the price will be in the range Rs.30 to 35 within 1 year. Buy SIB in the range 20 to 24. 

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



Todays share Pick

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I prefer Tata Global Beverages for the long time investment in this market scenario. The share price is about Rs. 111/-. The current market cap of this company is 7500 crores. But this is going to become a global firm. So I expect a market value of about 25000 crores soon. Now they are concentrating on various products like Tea products, Coffee products etc (a well known example Mr. Bean coffee powder). But they are now concentrating on snacks, healthy drinks etc. 

The technical chart is given below (Reference moneycontrol.com)

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



2011-Good begining for Indian Market

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The market began the year 2011 on a positive note on Monday following strong global cues and continued the uptrend for fourth consecutive session. BSE sensex closed at 20,561, up 52 points and the 50-share NSE Nifty rose 23 points to 6,157. Metal, telecom, Anil Dhirubhai Ambani Group (ADAG), healthcare, realty, infrastructure shares supported markets along with ONGC and Infosys. 



Bharat Forge

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Bharat Forge:


This is one of the shares I prefer for the next one year long time investment. The current value of this share is about Rs. 378. It is one of the world's biggest forging company. Their customers include the top five Passenger Car & top five Commercial Vehicle Manufacturers in the world. Since the demand for various parts of automobiles increasing rapidly, this share has a great future value. Within 3 to 4 years I expect a profit of at least 200%. 


This is the variation of price during the interval July 2010 to Dec 2010. (Reference: moneycontrol.com)

  

Regards Hari
" लोका समस्ता सुखिनो भवन्तु "