Stock market & Finance

We need investment planning in Stock market for our protection because Economics are based on an assumption that human beings are rational. But human reactions to stock market movements are utterly irrational. When markets rise, everybody cheers, When markets crash everybody moans. The underlying assumption of all small investors is that share prices should rise forever. Now, if the price of rice, sugar or petrol rose forever, the small investor would complain bitterly. Yet they seem to think it perfectly fair that share prices should go up forever, and very unfair if share prices crash. How greedy and hypocritical humans are. Only few people here make investment planning in Stock market because they know how to invest in stock market and protect themselves in stock market crash  .

We tend to have a very short memory as in I don’t think many people remember that the sensex was around 5,000 during the last general election in 2004. It then slumped to 4,282 on panic selling. From that low point, the sensex tripled in two years to 12,624 on May 10, 2006 and touched 20 000 late last year That has been a bonanza, fuelling speculative frenzy. So, the 20% correction is to be welcomed. Stock market valuations remained stretched by historical standards, though not by developed market standards. If the sensex falls all the way to the 9.390 level at the start of the year, the market would still have yielded enormous gains to those investors who did investment planning in Stock market in 2004 . 

The long run prospects of the economy are excellent. So, investors should not really panic and always they must move themselves with stock market trend . Yet such exuberance needs to be tempered by sharp corrections from time to time. This sends the valuable message that exuberance is no substitute for judgment. All who invest in markets must remember these aphorisms. Risk and reward go together. If there were no risk, there would be no market reward. Share prices represent subjective judgments of the day, so bouts of euphoria and depression will necessarily drive share prices up and down.


So, our problem today is the notion that markets should rise forever.But it is not possible and they will not and should not. We need sharp dips, to remind investors from time to time that stock markets have risks as well as rewards . So if you Have not done any investment planing till yet for future  than you must do it from now .

It is true that it is far better to learn from others mistakes but we don't understand that till  we don't face any loos .In money matters this statement becomes more appropriate. Even Mr. Buffet said: "If you are not responsible for any errors, you can not make a decision. You can not speak .."

So I'll tell you what I've learned in this downturn.

1st You need 20-30% of the portfolio in cash or the equivalent in cash for Buying shares in low rates and take their profits and efficiency and so on.

2nd Please do not ask others in the darkness, you must remove all confident in beard trend because when market goes down all shares fall and no one get relief in such situation except few ones , bear kills everyone .

3rd You must not invest too much money invested in a warehouse(In One stock )in the tendency of Red Bull . Even if you do not Suffer through on the back of a horse. However, your investment get suffered every time in the back of  Red Bull .

4th The stock market has proven wrong to all experts as well .Always remember "time and tide waits for none" but here u need to be as slow as ever to be rich..

5th Their are only few stocks where u can put your money and sleep well .

6th Main point we always remember after facing losses that bull markets builds in the next 3 years and bear markets don't have memory but left out some pain .

Last and main point that you must avoid taking action on t.v news and other reports . You can watch news but don't react on them in fast mode or you can do some experiments yourself .

A cliché goes, whenever the US sneezes, the world catches a cold. This is evident from the way the Indian markets crashed taking a cue from a probable recession in the US and a global economic slowdown. Weakening of the American economy is bad news, not just for India, but for the rest of the world too. Here we would discuss what is recession, what causes it and how much of an impact does it have on India. Technically, Recession is a decline in a country's gross domestic product (GDP) growth for two or more consecutive quarters of a year. To understand what causes recession we need to know that economy follows a natural cycle wherein growth cannot be sustained forever and a slow down is an expected phenomena. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment. It might interest you to know that this is not the first time that recession has hit the markets hard. US has had 10 recessions since world war 2. Gives us a hope, doesn’t it?.

Impact of a US recession on India

A slowdown in the US economy is bad news for India. Indian companies have major outsourcing deals from the US. India's exports to the US have also grown substantially over the years. The India economy is likely to lose between 1 to 2 percentage points in GDP growth in the next fiscal year. Indian companies with big tickets deals in the US would see their profit margins shrinking. The worries for exporters will grow as rupee strengthens further against the dollar. But experts note that the long-term prospects for India are stable. A weak dollar could bring more foreign money to India. So all in all, though these are trying times financially, there is no reason to lose hope.

I am trading in options but now planning to enter in futures also . I have been following Mr. Zak calls from last 7+ months and earned good money in options trading . But now looking at the profit of his futures calls i am getting exicted . Here is Performance report of his given calls to his premium members :-

In options trading 

Bought Nifty 3800 Oct put @110 - Bought Nifty 3800 Oct put @110 booked profit at 180 recommended multiple lots. Profit more than 25k

Bought Rel Power 150 OCT put @ 5 - Bought Rel Power 150 OCT put @ 5 booked profit at 8.50. profit of 1700 on 1 lot.

Bought JP associate Sept Put@2 - Bought JP associate Sept Put@2 and booked profit at 4rs.

Bought Nifty 3800 OCT Put@ 105 - Bought Nifty 3800 OCT@ 105 booked profit at 185 Profit of 40,000 as recommended 10 lots

Bought Nifty 4000 OCT Put@ 110 - Bought Nifty 4000 OCT@ 110 and booked profit at 230 Profit of 50,000 as recommended 10 lots

Bought Nifty 4200 Sept put@ 65 - Bought Nifty 4200 Sept@ 65 and booked profit at 80

Result in Future Calls

Sold LT @ 2650   - Sold LT @ 2650 book profit at 2601

Bought Tata Steel @ 490 - Bought Tata Steel @ 490 and booked profit at 499

BUY HDFC @ 2146    - Bought HDFC at 2146 book profit at 2189

Bought SBI with stop at 1415 - Bought SBI at 1425 and book profit at 1478.

I hope you will like performance of his given call . I think he is a master in options and in orkut he has proven that too by giving  many accurate calls in line without failure .

Yesterday, We recieved an email from India infoline Stock Brokerage firm in which they have mentioned that the Exchange has decided to change the market timings For both Cash and Derivatives Markets during the Sun Outage Period  from September 24, 2006 to October 08,2008 . So, the new timing during Sun Outage Period would be :-

Market Open	09.55 a.m.
Market will remain close	11.25 a.m. to 12.05 p.m.
Market re-open	12.05 p.m.
Market Close	04.15 p.m.
Market Post Close	04.35 p.m. to 04.45 p.m.

If you want to know more about this then you can check  National Stock Exchange or Bombay Stock Exchange  main websites for more information regarding this change.

Indian Market have taken support from last 2 days and all thanks to SBI. Traders are talking about Intermediate bottom and so on. It is advisable to all clients that please avoid trading in this Market specially on the long side. Investors are advice to avoid Investing for long term even at these levels. I said before Nifty will make a bottom between 3200-3600. which is 15% fall from here, However the stocks will decline much sharper. If U.S. is under such pain then how can world escaped. In near future we will come across some most favorite words in typical bear market like REDEMPTION PRESSURE, LIQUIDITY, LOW MARGIN, DEFAULT, etc.

So anyone who thing worse is over have mistaken. Domestic Institute are buying heavily now days just to safe themselves because they know that they cannot take the burden of redemption. Minor bounce back here and there can take place. Global market have fallen so much that you can even see a small bounce in the market I mean to say Bounce not rally.You can check 17th sep chart of nifty posted above also . Ultimately we have be ready for worse in the future. AIG bailout might be good news for the sentiments but it is bad news for Global economy. Yesterday Dow jones closed more than -400 points , So lets see what will happen today .

Now when indian festival in near all real estate agents and builders are approaching to this festive opportunity to boost their sales and targeting government employees for that . Now you must be thinking that why they are just focusing only government employees and offering special packages to them ? So here is the answer that now we all know that government has just passed sixth pay commission and all government employees will going to get good amount . So now builders are targeting that salary payout of government employees and offering nice packages .

Delhi based Housing developer Amrapali group has just issued one advertisement on this offer in almost all leading newpapers . So when interest rates are going up and property bisness came down to 50% to 70% down and now all india real estate agents and builders are looking for festive offers and have planned to offer many discount prices on freebies and EMI holidays on propert sales . Mumbai based Orbit Corporation is offering 15% discount on its residental projects on this diwali .

Right now you just have to pay the initial booking amount for flats or vilas and the EMI of your flats will start after your get possessions on them .Their are many more builders but right now they arenot disclosing their offers because of tuff competions in market . But this time i think many goverment employees must have palnned to get their own home with the help six pay commision passed money . Atleast they can pay for initial booking amount with that .

I was just reading gujjubulls and saw one exciting post over there related to some good stock picks review . Today also many guys said that market bounce was only because of NSG waiver .Now lets move on to topic and take a look on some good Stock picks which can give good returns in this deal .

Mr . Kathir on gujubulls has disclosed few stocks review which will going to get benefit after the nuclear deal is signed . So here is the list of companies which he mentioned over there and he has also explained very well that how these companies will get benefit by this deal .

L&T
BHEL
NTPC
Areva T&D
Alstom Projects
Rolta
Gammon
HCC
ABB
Crompton Greaves
Walchandnagar Industries
Siemens
Reliance Energy
Tata Power

Allmost all of these companies are connected to nuclear service providers like nuclear projects and all or have indirect relations with other parent companies . You can go and read full article and companies details on this link Stock picks of indo us nuclear deal .

Their are many people those have good and interesting knowledge in other investment opportunities like forex comparing to our equity market and they make good fortune in this daily . Many guys says that making money in forex is more faster than our equity market but for that you need better forex strategy and signals to move further . If you've never traded the foreign exchange markets and want to learn about it than i will recomend you to go to BabyPips.com . This site is also known as bibble of forex , specially for beginners in FOREX .

BabyPips is one of the best step by step guide for teaching new beginners of forex , They teaches you how to trade in currency and what thing you should know to get started . This site contains complate database for all type of forex traders whether they are professional or new traders .They says that they will not tell you how to get money but they will teach you how to create money in forex .

Forex education School of Pipsology -> In this school they will teach you everything which you will need to be a succeful currency trader . They have devided their section like our school sections :-

1. Elementary school (Kindergarten - 5th grade)
2. Middle school (6th grade - 8th grade)
3. High school (9th grade - 12th grade)

After completing 12th grade you can make good monein currency trading but this doesn't means you have mastered in it . After school you have to get full scholarship in that trade college . So you can go through their college section too mentioned on this page . Forex School

BabyPips don't only guide you but they have other servicces also like they forex blog and forum where you can share forex trading platforms views . They have good colletion of forex tools also like Forex Broker Guide which help you find a broker that you think will be best to suit your needs . Forex Charts Guide will teach you how to read and make your your stratergies in forex futures .

Their are many guys on orkut who runs their own communities but i follow Glidor in stockbullseye community daily and his prediction are almost nice too So i asked him can i share those reviews here to and he gave me permission . So here is today market review :-

Probable market TODAY
02-09-2008

AT the point Market is trying to go positive for reducing inflation factors, but funds story is looking it with different agnle.

Nifty may try to open in flat to green by 20 points

Nifty may range 4280/4420 with open of 4370
BSE may range 14300/14800 with open of 14500

ADVISE TO TRADERS AND INTRADAY - despite of good open market will perform undertone and end of day will try to recover afrer whole day volatility

ADVISE TO INVESTOR COMMUNITY - better price deal for profit booking, do it upto 10.20 hrs.

Quote:
As far as I am concerned, the stock market doesn't exist. It is only there as a reference to see if anybody is offering to do anything foolish. - Warren Buffett

Disclaimer : "above is my personal observation, may not match with market trends, posted for information purpose only, Please consult your finance advisor before entering any investment / trading descision"

Yesterday Zakir bhai from stockbullseye said that today we closed at the lower end of the trading range and if global cues were not positive we would have seen a break of a range. Going in for trading today we have impressive set of positive news, it is not only U.S gaining overnight but the data was extremely impressive. It look like a classic bull trap and if we see a siginificant rally from here this should be the last opportunity to exit or short the market. Today we might open more than 50 points up on nifty and rest will depend on GDP nos . Zakir bhai named this posts as a Classic Bull Trap . I will update you if i will get more info in market time .

Today Finance minister Mr P. Chidambaram inaugurated currency futures trading in National Stock Exchange of India (NSE) . Now National Stock Exchange has received first mover advantage for mandatory approval from the Securities and Exchange Board of India .

As we know that currency trading market has much more potential comparing to stock markets . A platform of currency trading futures globally is much bigger than stock market and now currency traders from india commodity market have also get chance to enter in trading currencies .Here are some brief points given by utvi.com to know better about today's announcements on currency future trading :-

* Currency futures launched on the National Stock Exchange of India.
* 300 members will be eligible to participate in currency futures trading
* Contract in quoted and settled in INR
* Maturity of contract not to exceed 12 months
* Futures date and price is fixed on purchase date
* Allows an investor to hedge against forex risks
* Every trading member participating in currency derivatives during the above period shall be required to make a lump-sum contribution of Rs 500 towards an Investor Protection Fund.
* Only US dollar-Indian rupee contracts would be allowed. The contract size will be of 1,000 US dollars and the tick size (minimum price fluctuation) will be 0.25 paise.
* The prices in currency derivatives segment shall be displayed, traded and reported up to the fourth decimal place instead of up to two.

I was just watching utvi channel to track my stocks and saw this news and thopught i should this with you . If I will get more info about it than i will update you by latest posts again .

I have seen so many traders giving their predictions on stocks in various communities . I am a new trader and don't have that much knowledge about analyzing charts , So that's why i keep tracking their views on technical charts as well as point and figure they mention in their stock prices . Market gurus use different stock analysis software but these prediction are not 100% guaranteed . These reports can give you a short view on upcoming movements and durning this movement you can mint good money .

I saw one boy using these reports and than he started doing shorting in between given targets . At last end of the day he finished market session with a profit of 15k but when i talked to him than he told me that yesterday he faced 10k loss in this also . Now i have also started learning Technical analysis tutorails from different online sources and in real market time i track charts on iCharts . Here is on more link which i found by Google and hope will help you to understand how technical analysis works and help to know upcoming movements . Here is one more link technical analysis where they have explained everything with charts and i hope this will help you to learn more about it .

It seems there are some big orders for Infra stocks as heavy buying is seen. Ril Ind, ICICI, HDFC are very weak and dragging the market down. RNRL, Rpower and IFCI are trying their best to make it into postive. If market is unable to break 4380 and sustain above it before 2.45pm then it will be very difficult to hold and market might close at the lowest point of the day. If market stays below 4340 then all longs in Infra stocks and momentum stocks should be exit as they will lead in further downside . More