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Nifty Monday--25/02/2008
2008-02-24 19:50:00
Monday we could see some rally in the Indian markets. This week the most exiting thing will be the Railway Budjet and the Financial Budjet(Is there some thing related to the leap year budjet, I mean any of the superstitions). The news of the Bonus shares in the ratio of 3:5 for the RPL counter will sure light it up. Also given that US markets ended quite well on Friday shall boast the markets. Also look out for Centurain bank of Punjab(Although it is a news now and not a rumor) For Monday 5184 on the nifty could be a serous resistance followed by 5200 and then 5241. Overall we should still remember that we still have one gap left around 14500 to be filled. So I think in this market whatever be the euphoria just go short on very high you see touching the trendline.
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Precious Metals outlook
2008-02-24 18:56:00
Past week we so a huge rally in the commodity space. Platinnium led all of them. Looking at all of this I belive the rally in Gold and silver will still continue in the next week too. The data comming from US is quite dissappointing as we all know. This week quite a crucial set of number are awaited esp the Housing numbers. If the bad numbers continue we could well see Euro/Dollar ratio passing 1.5000.This all encourages my view and we could all see a new high being made in the coming week Now if we are talking about Gold the immediate target looks to be around $968-$972. This is the first targret that we could come across this week at the same time this will pose a serious resistance. The next target if it corsses the $976-980 wil be $1005 while the ultimate for the current wave be around $1026. So if some one wants to go short , if someone sees the $970 mark for the first time he can go short on an intraday basis. And I think if U short around this level you should be in the mo...
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World Economy and Indian Markets
2008-02-19 19:10:00
World Economy and Indian Markets The price of gold will soon make a new high(Although I will sell if I see $938 in next couple of days on intraday basis) People around the globe are running towards precious metals. Platinium makes a new record daily. Silver is outperforming gold. This all could be the economic indicators that we are overlooking. The overall economic scenario around the world looks fragile.Is it too late too talk about this now? What will happen next? what about the India growth story? The Indian growth story is very much intact I would say but, the world growth tale(fable) doesn't looks so great. So we thought that the subprime crisis gave us the bad times. Hello! this could just be the start. The losses till date reported have come from the sell side firms only which could be around say $400 billion ++. But what about those players who are on the buy side. what about those who have bought these structured products (credit derivatives). They are yet to show up. Ev...
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Pay commission, Inflation and the Interest rates...Good, Bad and Ugly
2008-02-18 18:36:00
Pay commission, Inflation and the Interest rates...Good , Bad and UglyYes it is true we may have not thought about or talked as what these three could do together. Many people still dont get what pay commission can do the economy specially one like India. Just to highlight---What is a Pay Commission ?It is an administrative system/mechanism that the Government of India set up in 1956 to determine the salaries of government employees.The First Pay Commission was established in 1956, and since then, every decade has seen the birth of a commission that decides the wages of government employees for a particular time-frame.'The Fifth Pay Commission (set up in 1994) recommendations resulted in a Rs 530 billion payout by the government. The next (sixth) pay commission would effectively wind up Indian sovereignty.'-- Arun Shourie, former Union minister for divestment, statistics and programme implementationThe sixth pay commission is knocking the door as it has been a long time (Probably by...
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Initial Public Offer Basics
2007-05-09 13:56:00
An IPO is an Initial Public Offer made by a company (issuer) offering shares or debentures or other tradable security to the public at large. An IPO is either for a) Fresh issue of capital, where the funds are used for the projects / growth of the company. while a FPO is a Follow- on public offer. here the companies comes with the issue second time or more. In an IPO price discovery takes place through Book Building process while in an FPO mostly a Fixed price is opted. Book Built IPO, in which there is a discovery of the price through the price bidding mechanism. Usually, a band (range) of the price is announced, and interested investors apply or bid for the security within this band i.e. the application can be for any price within this range. The difference between the price band should not be more than 20% SEBI (Securities' Exchange Board Of India) issues guidlines,which specifies the percentage of the total securities offered for each category of investors from time to time.Cu...
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Bollinger Bands - Technical Analysis
2007-05-04 10:24:00
Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time.The indicator consists of three bands designed to encompass the majority of a security's price action.A simple moving average in the middleAn upper band (SMA plus 2 standard deviations)A lower band (SMA minus 2 standard deviations)Standard deviation is a statistical unit of measure that provides a good assessment of a price plot's volatility.Bollinger recommends using a 20-day simple moving average for the center band and 2 standard deviations for the outer bands. The length of the moving average and number of deviations can be adjusted to better suit individual preferences and specific characteristics of a security.Middle Bollinger Band = 20-period simple moving averageUpper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviationLower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviationSignals Double bottom Buy: A Double Bott...
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Binani Cement Limited IPO
2007-05-03 21:30:00
Binani Cement Limited is entering the capital markets. with a Public Offer of 20,500,000 Equity Shares of Rs. 10 each for cash, through an Offer for Sale by JP Morgan Special Situatbns (Mauritius) Limited ("Selling Shareholder"). The Offer shall be through the 100% book - building process. JP Morgan Chase controlled equity fund picked up 25% in BCL for about Rs 150 crore. It is now selling part of its stake, about 10% of BCL’s equity capital, through the IPO. The Company posted a T otaT Income of Rs. 5,665mn and a Profit before tax of Rs. 1097mn for the nine months ended December 31, 2006. It posted a T otallncome of Rs 5,840mn and a Profit before tax of Rs 581mn for the year ended March 31, 2006. The Price Band for the Offer has been fixed between Rs. 75 and Rs. 85 per Equity Share. The Public Offer opens on May 7. 2007. and closes for subscription on May 10, 2007. The Offer shall constitute 10.09% cif the Post-Offer paid-up capital of the Company. The Equity Shares are proposed ...

Insecticides India Ltd IPO
2007-05-03 21:18:00
Insecticides India Ltd (IIL) has today emerged as a 175 crore enterprise with a credible reputation and core competencies in the area of agro-chemicals.Its range of innovative end-to-end solutions have continuously improved safety of various crops across the country.Many of its products are now a benchmark for the industry. Today, IIL is a frontline performer which has emerged as a preferred brand in India, whose footprints cover the length and breadth of the country with 4 Regional Offices,7 Area Offices and 24 depots. The company has developed a core network of distribution and sales at national level,with representations in all parts of the country. IIL has 5000 distributors and over 50,000 dealers across the country.They have products for both Crop Protection and Urban Pest. The Initial Public Offering of Insecticides India Ltd will open for subscription on Monday, 7-May-2007. The issue will close for subscription on 11-May-2007 Book Running Lead Manager is UTI Securities Ltd Yo...

RBI Reduces Risk Weight on Housing Loans
2007-05-03 20:57:00
Reserve Bank of India (RBI) on Thursday notified the reduction in risk weight on hosing loans for up to Rs 20 lakh from 75 per cent to 50 per cent. The central bank also reduced the risk weight for banks' investment in mortgage backed securities, issued by the housing finance companies, to 50 per cent from the existing 75 per cent.RBI, however, said it would review the risk weights after one year keeping in view the default experience and other relevant factors.
More About: Weight , Loans , Housing , Risk , Weigh

Trendline Analysis
2007-05-03 10:20:00
Hi ALL The day has been good so far, Indian markets as well as the European markets have shown strength. Probably Nifty will touch new highs.... as we have seen a bounce back from around 4020-4040 levels.Now let us continue with our discussion on Technical Anal ysis . Today let us look at the basic of it the Trendline. A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. Market normally follows a trend which is depicted by the trendline.For the up market we draw a trend line by joining succesive lows. and for the down market by joining the highs. The break in the trend line would indicate change in the market trend or direction.One thing that I have noted recently is that if you exterpolate two or more trendlines so that they join at one single point, that point will correspond to the time where the market will peak or dip.High points and low points appear to line up better for trend lines w...

MIC Electronics IPO
2007-05-02 20:26:00
MIC Electronics manufactures of True Colour LED video display systems, MIC is the only company in India to have the capability for manufacture of LED video display systems.The price band for the offer has been fixed between Rs 129 and Rs 150 per equity share. Risk InvolvedIt has high risk of technological obsolescencethe company earnings are primarily dependent on the business of LED Display SystemsNichia Corporation is primary source Raw Material. PositivesThe management says the 30.8% earning before interest, depreciation, taxes and amortisation (EBIDTA) margin of the segment in FY ended June 2006 has improved to about 40% in the six months ended December 2006 on reduction in R & D cost. The current global LED display market size is around US$ 3.55 billion and is expected to reach US$ 3.9 billion by 2007. The LED market has shown a CAGR of 15.98% from FY 2004 to FY 2007. Internationally, LED display renting is one of the fastest growing segments in the live entertainment industry...

IPO Grading Made Compulsory
2007-05-02 20:02:00
The Securities and Exchange Board of India (Sebi) has taken the plunge and made the grading of IPOs mandatory. From May 1, any promoter knocking on the doors of Sebi with a draft prospectus will need to get his offering graded by a credit rating agency. “The issuer shall be required to disclose all the grades obtained by it for its IPO in the prospectus, abridged prospectus, issue advertisements and all other places where the issuer is advertising for the IPO,” a Sebi amendment to the Disclosure and Investor Protection Guidelines, 2000, issued on Monday, states.SEBI has also amended the guidelines on qualified institutional placements (QIPs). Only companies with a one-year trading history will be allowed to raise funds through QIPs.source dnaindia.com
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Technical Analysis MACD
2007-05-02 09:50:00
Hi ALLWanted to give new face to the blog .... Now onwards will foucs on whole financial side ....So for this I thought .... to predict the market may be a index like nifty or sensex...or any stock we need to ... whats called " Technic al Anal ysis "As a part of this we will first look into the MACD indicator today with this video...MACD is Moving Average Convergence-Divergence Indicator, The MACD was developed by Gerald Appel, and is based on exponential moving averages (EMA). The MACD indicator is the difference between two exponential moving averages (12 and 26 as default) and also has a signal trigger or timing line (9 day ema as default). When values of the MACD indicator move above the zero level, it is similar to a moving average crossover signal described previously to identify uptrends. Here is one of the Vids explaing itVideo OneVideo TwoVideo Three
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Nifty Fifty ..heading downdy
2007-04-28 06:11:00
Nifty's Future MoveHi there again....As posted earlier ....there were signs of weakness in Nifty Fifty. The weakness was shown by simple trendline analysis (thats what I call)...Now the question is are...going to witness a complete downfall...???Nifty is currently at 3774...and the kind of candlestick it is showing is or can be termed as bearish engulfing ...for conformation we need to wait till monday...While I also looking at support for nifty at about 3741...which would decide weather the last leg of upside is still there..Happy Investing
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Market uproar, Nifty cool down on cards
2007-04-25 18:48:00
Markets may Cool in after 2 or three session Nifty may correct before settlementHi ALLIt is quite impossible to really find the level at which market would stop....Once the level of 4100 is crossed ...and the RBI not really looking for tightning this time ..Nifty can sure see levels of 4200++...will it touch 4340?? time will decide...But from the charts and the trend line there is a word of caution..we could see a fall in market in few days may 2 or 3 sessions at most...Few stocks which include Teledata In. and Atlanta had a great rally...and we hope it will continue..
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Nifty Looking very strong
2006-11-21 16:00:00
Hello PeopleThe Market is on the move and looks like the bears have given away. It was suprising for nifty to gain over 1.5% and close at 3918 levels .But one should not expect the same to happen the same tomorrow as so speed braker may be ahead..I thik the level of 3921 was and is important and if ( as it seems ) nifty may cross it quite easily market may however take a breather at 3940 and 3958 levels where the 100% uptrend ends. Market may however go well above and well reach upto 1.618 times the previous wave which would be 4318.00 levels on the niftyFor the future we may also see a hault at 4040 levels
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Nifty is on a move..
2006-11-20 19:24:00
Nifty is on a move..Hi PeopleYes Guys as told to you earlier in my blog that the target for nifty on the downside could be 3797 and no more and hence it jumped from there and covered most of the losses for the day.I have earlier pointed out that a new wave of bullishness is suppose to start and market could take reach up to 3940 levels on nifty ( not precise yet )..So it is time to be long again and people can stay invested till the next level is attended on nifty The next question would be where will the nifty be tomorrow ..I say nifty should take a breather at 3833 and the next 3857 levels ( these are ofcousre not the points where the correction starts though). I may have mentioned to some people that this could be the fifth way..but now I think this could be the fifth wave of the third wave of lessor degree and the fifth wave could be extended.Any views and comments are most welcome.
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The Correction is Over for the Markets on Nifty
2006-11-17 17:59:00
Nifty Headed North ( Is the Correction over ?)Hi AllWith Reference to my las t post in my blog..........So we saw a steep fall today but you may wonder if it is still going to fall and is that the rally is over. But in my view the the correction that we saw today was of very short term in nature and a new rally is in the begining that will take us to the new highs and take the nifty to the levels of 3940 as I said to you earlier ..I do belive that this perticulr level of 3940 shall bring in a major correction that may bring us too the same level as we are today . For the longterm the bullish sentiment is here to say .I think that we are in the third wave of intemediate term which should atlest go on to the levels of 3940 if not more ( as the third wave is never the shotrest ) The steep fall that we saw in the month of may is still away ( Praobably at the 4980 levels of the nifty which is too far ( We would ofcourse have the midterm correction as we had today and some of the larger d...
More About: Markets , Nifty , Rect

Nifty Looking Weak for remaning Week
2006-11-16 17:35:00
Nifty Looking Weak For Remaning Week For Date 171106Hi All If you refer to the last blog the resistance anad support ( 3898 and 3868 respectively ) as stated for the day stands tall . Nifty touched the high of 3900.15 and started falling ( pretty near to the target ..right) Then it found support for the day at 3864.55 ( that's close too) But the million dollar question is what would you expect to happen tommorow....Well if I am right nifty has started following a new channel..now and the upward movement could be restricted for the time being ( which I feel is good for long term). So what for the day traders..Ofcourse the stock specific action and the Banks are going to have a very happy christmas..what say..So for tomorow I would say a bit of downside is still remaning on the downside we do have a very good support at the 3856-3860 levels. and should see a bounce back if it touches or comes near it..If the heavy correction continues for a day or two we would see a low of 3808-05. B...
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Nifty Moving Ahead ? What say ?
2006-11-15 17:47:00
Hello FriendsAs predicted in my last blog , ( I said in a pull back rally we could see resistance at the levels of 3884 on the nifty ) the nifty made a high of 3888 which is just four points above the predicted levels. The market still keeps on going ahead and and make few high ( although we had a pretty much of flat market to move on) And Banks perticulary steal the limelight making new alltime highs backed by real estate story and the infrastructure stocks we would like to see where probabaly it is headed. It seems to be quite difficult to see where one would landup tomorrow if the markets move ahead which seems to be possible ( waiting for some sort of candlestick confirmation too which would come tomorrow) I think moving ahead on an intraday basis we should face resistance at around say 3898 levels and 3907-09...If the market ends with the big white long candlestick we may see the high of 3926 ( this level may even take couple of days to achive).While for the low side we do have...
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Nifty levels as we move forward 151106
2006-11-14 18:27:00
Hello PeopleAs I had posted earlier in my blog the level of 3881 could act as a resitance for the nifty to move forward. Today nifty made a high of 3883 ( just two points above the target specified, in second attempt to cross the resistance level ) and pulled down, until it found the support at 3851.00 levels. From here we could see may a down side which could take it down to almost to the levels of 3819-3804 on the nifty. This could be a pretty good correction to move forward. If this happens and nifty toches these points and starts moving up we could see a upside ( A strong bullishness ) to take the nifty up to 3909 or at to the most of 3950 which as I have said earlier will be a strong resistance. to cross for the nifty.But if tommorow we see a pull back rally and nifty starts moving up ( which is pretty unlikely) , for then the intermediate resistance could be 3884 and then 3905.I would still suggest people to be vary cautious ( who are for the shrt term ) on the levels of ( ...
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Nifty Future levels
2006-11-13 19:54:00
Hi AllAs expected the point the levels of 3851 would posses a bit of resistance to the market as it did on the intraday basis. The nifty however managed to cross this level and close above this. Now the question remains where will it land in future ? Will it sustain its momentum...? Well its time who will answer that questions but we can try to predict the levels...I think having passed the levels of 3851-3853 we have a upside still remaining and it chould easily touch 3881 which may again be a point of resistance from where the market can slide upto 3817 or may be 3802.The next level for nifty which would be crucial for medium term would be 3940-49 level.While I still see the upward target for Nifty to be 4068 and then may be a target of 4417 in a long term but beforre that a correction should come in which may be a bit stronger which may bring the nifty to the 3789 to 3617 levels and we could se this happening at the levels of 4068 at the earliest.Thank youHappy Investing
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