Warm up for tomorrow.
Wat to do with telecom shares?
hold/sell? why?
Warm up for tomorrow.
Wat to do with telecom shares?
hold/sell? why?
utha lo bhai....Credit Suisse ne bhi kharidne ko bola hai....par sirf idea or airtel.....!
The Nifty has taken off its previous high of 5399, thus
making a new 52-week high and giving bulls a reason to
cheer.
The daily momentum has now turned into buy mode
which is like an icing on the cake for the bulls.
The Nifty is is expected to test the upper end of the channel, ie 5500, which seems its short term target.
On the lower side, 5297 is a crucial support, hence even if the Nifty corrects, it is not expected to fall below 5297. So buying is advised
on dips till 5297 is not overlapped.
making a new 52-week high and giving bulls a reason to
cheer.
The daily momentum has now turned into buy mode
which is like an icing on the cake for the bulls.
The Nifty is is expected to test the upper end of the channel, ie 5500, which seems its short term target.
On the lower side, 5297 is a crucial support, hence even if the Nifty corrects, it is not expected to fall below 5297. So buying is advised
on dips till 5297 is not overlapped.
Bharti Airtel's credit rating was downgraded due to number of reasons.
1> Apprehensions that telecom companies especially Bharti might have overpaid for the 3g spectrum, considering low penetration of high end mobiles, upcoming new technologies like LTE. These apprehensions sounded more real when this week Sunil Mittal said that the biding wasn't properly devised which led to overvaluation of 3g spectrum.
2> The high level of debt that will be placed on company balance sheet due to 3g and Zain acquisition in a market where ARPU is low and there is fierce competition.
3> The scenario in Indian markets itself where competition is fierce in terms of number of players as well as low call rates. According to me telecom industry is in danger of being turned in to a "perfect competition" place where long term "economic profit" isn't visible over the long term unless there is consolidation.
4> However do watch out for rating upgrades when consolidation takes place, which might take a long time coming as it will be a case of who blinks first. Lets hope that telecom wont go the cement industry way.
Considering the low P/E ratio in telecom we can consider buying telecom shares when Nifty P/E ratio which at the moment is around 23 comes down to reasonable levels of 18-17.
@blacksands Just a query , do u really think nifty PE will come down to 17-18 in recent future...? I think it wont.
Right now its at 22.57, if we see historical records whenever Nifty has hit 22-24 P/E it has more or less topped out and has corrected , so for me its better to wait and buy at 17-18 rather than to get in at 22-23, also telecom stocks have underperformed the markets which means whenever markets correct telecom will correct more than others and hence more damage to us if we buy in right now.
I am purely talking about investing and not about trading opportunities,
If we look at the past years in graphs, we have had 2 bubbles in 2000 and 2008.
In such extraordinary times, the P/E can go to even 28. We do not have bubbles every other year.
Market has corrected sharply when P/E is between 21 and 23.
This has happened almost 4-5 times in last 10 years that market has reacted from P/E 21-23.
Correction could be round the corner. If we take P/E of 23 as top, It makes sense to take profits off the table selectively, scrip wise if you go by the P/E historical data.
One caveat, companies in the Nifty change, but we take nifty as a broad barometer of the Indian Market.Hence, everything evens itself out.
Lets see if history repeats itself this time.
hey puys,
m novice in stock market.
Iwant to invest 50 k initially .
m looking for long term ( though not more than 1 yr )
so where should I invest it ?
another querry , which one would be better ?
mutual fund or fixed deposit or post savings ?
can anyone plz tell me which broking firm is good.......i mean in terms of brokerage charges, margin, customer care,tips,web based interface....i can compromise on brokerage charges even if it is little high but not on quality i m new to stock market so my trading will be low.....i will not be trading during the day so whatever stocks i will be placing orders during the night only....so based on all the factors plz suggest me a suitable broking firm...i m thinking of india bulls how do u rate them?? if its nt good then plz suggest any apart from hdfc securities......
hey puys,
m novice in stock market.
Iwant to invest 50 k initially .
m looking for long term ( though not more than 1 yr )
so where should I invest it ?
another querry , which one would be better ?
mutual fund or fixed deposit or post savings ?
looking at current volatility and market levels it seems fixed deposit should be preffered, till the market corrects itself
manoj_meghwani Sayscan anyone plz tell me which broking firm is good.......i mean in terms of brokerage charges, margin, customer care,tips,web based interface....i can compromise on brokerage charges even if it is little high but not on quality i m new to stock market so my trading will be low.....i will not be trading during the day so whatever stocks i will be placing orders during the night only....so based on all the factors plz suggest me a suitable broking firm...i m thinking of india bulls how do u rate them?? if its nt good then plz suggest any apart from hdfc securities......
India Infoline(IIFL) is good, but i guess Share Khan (SSKI) is better
hey puys,
m novice in stock market.
I want to invest 50 k initially .
m looking for long term ( though not more than 1 yr )
so where should I invest it ?
another querry , which one would be better ?
mutual fund or fixed deposit or post savings ?
MbAhEaVeN Sayslooking at current volatility and market levels it seems fixed deposit should be preferred, till the market corrects itself
Market is very bullish and isn't volatile right now i.e. if one has enough knowledge of economics and finance. Anyone having some amount knowledge can gain very heavily in the current market if he plays well.
1 year isn't exactly long term.
Also, Stocks vs mutual fund vs fixed deposit vs post office savings isn't a very good correlational way to measure.
They are completely different instruments which are used for different reasons as adjudged by a person, position and markets.
Question is what do you want from the Rs 50000? Do you just want to grow the money without risking it? Can you risk it? How much of it can you risk? Do you have the time to play in the markets yourself? Why do you want the money? etc. The answers to these questions will allow us to get a better insight and thus tell you what you ought to do.
manoj_meghwani Sayscan anyone plz tell me which broking firm is good.......i mean in terms of brokerage charges, margin, customer care,tips,web based interface....i can compromise on brokerage charges even if it is little high but not on quality i m new to stock market so my trading will be low.....i will not be trading during the day so whatever stocks i will be placing orders during the night only....so based on all the factors plz suggest me a suitable broking firm...i m thinking of india bulls how do u rate them?? if its nt good then plz suggest any apart from hdfc securities......
MbAhEaVeN SaysIndia Infoline(IIFL) is good, but i guess Share Khan (SSKI) is better
IIFL's initial minimum account is bad. IIFL premia (premium account) is relatively better and they have recently hired nationally reputed team to look into things.
It looks like you seem to believe in "tips", If you are in the market for log term then here is a sound suggestion - Don't ever rely on "tips". they are mostly eye washes and if timed wrong then the tip can cause you a lot of worries.
Remember a golden rule -> A mistimed information is worse than an information which you didn't get.
Sharekhan is good but you need to spend time with the interface.
ICICI has the easiest interface and account handling but charges the highest fees.
India bulls has a very good interface but they have a lot of complaints. I have a friend whose dad has 1 crore locked in with them in his account and the India Bulls team is unwilling to give it back.
Recently, there is a new trend in India (and outside) that i knew was there but is now more rampant for its own demise.
Outsourcing Financial Research - thats right. Banks and other financial corporations and now seemingly trying to outsource financial research or atleast some part of it.
I, at times, do consulting projects related to strategy, marketing and finance and One of the upcoming consulting projects seem to be a study on "private equity research firm for outsourcing their qualitative and quantitative research work on private equity funds". So if a private equity research firm is outsourcing their qualitative and quantitative research work on private equity funds then what exactly will it do itself? What is its own core competence?
A relatively separate and yet related observation, It seems Reliance Money, ICICI Direct and Kotak Secturities use the same outsourced vendor for tips. Atleast the "technical short-term tips" seem very likely from the same vendor. I don't know if the vendor is smart enough not to provide the same "tips" everywhere.
All these can't even trust their own research, how can you trust their's? :|
Why does this matter? This means more and more research will throw the same tips to all the people thereby killing off any inefficiency in the market or atleast throwing off people from good buys. (This actually means smart traders can make more profits but poor newbie gullible traders might lose money).
But as they say, this fact too can be used in your favour so i am testing some theory on this. Lets see what it brings out.
These findings have reinforced the fact that very few people to real financial research in India (and even abroad) and further few will share it with anyone.
The best thing to do is to learn about such life altering things yourself. Don't go on random tips, if you do then do it very very cautiously and wisely.
Very true , Devilish... As in the words of Rakesh Jhunjhunwala , ' Tips are injurious to Ur Wealth...! '
But as they say, experience is the best teacher. So i think its actually good to loose some money doing such things and learn a lesson. I believe, loosing some money is a must to earn huge wealth frm markets...!
Too many cooks spoil the broth. Likewise, too many books spoil the brain!
Another school of thought says that "too many stocks spoil the investor's returns!"
Is this the right time to buy Gold?
I say NO. It may fall further! Any comments?
Is this the right time to buy Gold?
I say NO. It may fall further! Any comments?
Give your reasons for NO and I'll open my pandora box of comments
Is this the right time to buy Gold?
I say NO. It may fall further! Any comments?
very short term and nationally, gold may fall but in the medium term it will gain because of liquidity and credit crisis in banks all over the world. unless all fears of sovereign defaults go away gold will rise up in the medium term.
Question when do people choose gold over other forms of security and you will get your answers.
Anyone applying for SKS Microfinance IPO.....? I think its gonna be IPO of 2010. Though they hv priced it at a highly rich PE, still considering the growth in last 3 years; I think one should get handsome returns on listing....
hey........
i m doin my internship @ cdsl on mutual fund........
cn ny1 help me out in makin my project report.......
i wanna knw the content 2 b included in project report..........