Equity Markets

Lets look in layman perspective

When interest rates increases, investment decreases and saving increases. People don't borrow/spend money much when there is a high interest rate but they try to save more. So there is a decrease in the money supply because people aren't spending for their living say buying new cars , domestic upgrades ,new shares etc.

Economic growth occurs when people spend money and not save money.

so interest rates and money supply are inversely proportional ..


Thanx but my question is vice versa....
I read a statement:When there is more money supply in the market,ppl have more money in there hands so rather than keeping them,they try to invest in securities....This puts a downward pressure on interest rates hence they fall.....
Please explain this....
kambarish Says
Can any1 tell me book or give a pdf from where one can learn about this pattern. This forms part of technical analysis right ?


If u are really serious about learning candlestick patterns buy Steve nison's seminar video series on candlestickcharts.com ....Nothing beats that !!!!!
I personally have been to his seminars and undoubtedly they are the best resource one can get on CC's.

When it comes to TA,BOOKS are not the way to go about it.:biggrin:

A simple question:
Why do we need a separate bank account(DEMAT A/C) for trading? Why our regular savings account is not enough? What extra advantages does a demat account provide?

ifb agro -->.....avt natural-->:)...market for trading--> :nono:....market for investment-->

If u are really serious about learning candlestick patterns buy Steve nison's seminar video series on candlestickcharts.com ....Nothing beats that !!!!!
I personally have been to his seminars and undoubtedly they are the best resource one can get on CC's.

When it comes to TA,BOOKS are not the way to go about it.:biggrin:


Bhai, thanks for the reply. Will surely think of it.
Thanks again.
butterflyeffec Says
ifb agro -->.....avt natural-->:)...market for trading--> :nono:....market for investment-->

Bhai, whay do you meant by this ??

-----------------------------------
Also friends, how is IFB ind. ?? Is it a good buy at current levels ?
A simple question:
Why do we need a separate bank account(DEMAT A/C) for trading? Why our regular savings account is not enough? What extra advantages does a demat account provide?


DeMat Stands for DE-MATERIALISED
Before online trading was introduced, the shares were provided in physical contracts form called the Materialized form.
Now to have the shares in Digital form, they need to be dematerialized and stored in a special account which is used to hold stocks. Savings account is used to hold money and hence can not be used to store these dematerialized stocks.
Demat account doesnt provide any features as such. All the features would be provided by the trading account provider i.e. your broker. Demat account would simply hold the stocks that you buy.

Would like someone to add to it if I've missed out on something.

Interesting article on FB options :

Facebook options debut a wild card for volatility | Reuters

Hi
can anyone tell me the STT rates for day trading and deleivery both for cash and futures marketv:grin:

Hope this helps

http://www.nseindia.com/content/nsccl/nsccl_fostt.htm
http://www.nseindia.com/content/circulars/cmtr5588.htm

Hi
can anyone tell me the STT rates for day trading and deleivery both for cash and futures marketv:grin:

GDP Growth at 5.3% .. Currency breaking through the 56 level .. Italy and Spain threatening more now ..

Any predictions where the market is headed , will the markets stabilize or is there a correction predicted?

@kaaliya sir you were bang on with your predictions with 12% correction of FB shares so has it corrected enough? 27-28 level ?

Facebook got listed on the Nasdaq today. Would you buy shares at $40 a share? If yes, why? If no, Why not?

I thought it would fail. Presently it is a $40, $2 over its listing price of $38.

Mundane Musings: The Great Facebook IPO


Two weeks later, the shares are trading at $28. http://quotes.wsj.com/FB
Daemon_hunter Says
Two weeks later, the shares are trading at $28. FB Stock Price Today - Facebook Inc. Cl A Stock Quote - WSJ.com


By all means I'd prefer LinkedIn. Linkedin is doing much better. It made a spectacular debut on NYSE. It doubled on the day of listing and even today it is almost double than its offer price.

Linkedin Corporation: NYSE:LNKD quotes & news - Google Finance
LinkedIn share price more than doubles in NYSE debut | Reuters
LinkedIn Shares Soar After IPO - WSJ.com

Not only LinkedIn is a great product but I think it is also a good company 😃

Guys
This time recession seems worse than 2008 where gdp was 6.8. Its now 5.3 % and with euro crisis+policy paralysis + inflation whats the future outlook
Will this year be gdp growth less than 6%?
What will be the affect on job market :sneaky:



@kaaliya sir you were bang on with your predictions with 12% correction of FB shares so has it corrected enough? 27-28 level ?


I would be happy to see FB trading @ 23-24 levels....Though the stock is trading at levels where speculation comes into picture big time....

From valuation point of view 23-24 levels is what its true worth currently is...Anything below that would be a BUY for me.... :biggrin:
I would be happy to see FB trading @ 23-24 levels....Though the stock is trading at levels where speculation comes into picture big time....

From valuation point of view 23-24 levels is what its true worth currently is...Anything below that would be a BUY for me.... :biggrin:


There was an interesting article on how much is FB worth at Facebook
Daemon_hunter Says
There was an interesting article on how much is FB worth at Facebook


Have done a quick analysis by TRADING COMPS method,which i guess is the best way to go about it...i have attached the image of the excel sheet as well....plz pardon sms lingo as i have done everything in a haste...all statistics in m$$'s(except per share data) ....



Now,one Q arises as to how to calculate the exact peer revenue multiple...well,i guess u know the answer....
Have done a quick analysis by TRADING COMPS method,which i guess is the best way to go about it...i have attached the image of the excel sheet as well....plz pardon sms lingo as i have done everything in a haste...all statistics in m$$'s(except per share data) ....


Now,one Q arises as to how to calculate the exact peer revenue multiple...well,i guess u know the answer....


Can you also state all the assumptions you have taken

Growth rate , Abnormal Growth to Constant etc

Have u also tried with other methods of valuation?


EDIT: Sir if you can attach the excel then it would easier to interpret 😃
Can you also state all the assumptions you have taken

Growth rate , Abnormal Growth to Constant etc

Have u also tried with other methods of valuation?


EDIT: Sir if you can attach the excel then it would easier to interpret :)


I have just plugged in the values from the FB's SEC filing....and have taken a conservative approach growth assumption in revenues of 40%.....

Of course the real analysis is a hell lot of pain in the butt,but the result is somewhat similar....so,have taken a lucid path....

Revenue multiple have been derived from its peers (GOOG,LKND,YHOO) ......

& yes,had also done a discounted cash flow analysis of the same .....result is almost same ......
aur SIR keh ke plz sharminda na kare.....!!! :)

P.S Will attach the detailed excel worksheet analysis on MOnday....actually away from home !! its :drinking::drinking:time !!!

Hope u wont mind :biggrin:

Dow at 1 year low... breaching the Dec 2011 lows on the unemployment rising to 8.2%
The unemployment data has been worse than the most pessimistic forecast.
Dow Average Erases 2012 Advance After Employment Data - Bloomberg

India (Sensex) still 800 points up than the Dec.11 lows but can break the level anytime.

US has been performing very well for past few months. The only and very solid reason to be optimistic about markets. But now cracks appeared in that too. European worries are still haunting the markets and now the US data has pulled the trigger.

The only positive to take from it is , the hope of QE 3 by FED has been doubled

P.S. Gold may rock till the US Unemployment Fears persist. Its one of the greatest enemy of Dollar 😛
Oil is plummeting like ninepins. Expect cuts in Petrol prices this month if Rupee sustains at this level. :)
Will be interesting to see reactions in rupee. Theoretically, bad news in US should lead to depreciation of Dollar against other currencies. But here Euro and Rupee have their own problems so not sure about it.