Hi PGites...
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Please check out our reports at:
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Happy investing..!!
Market is down......m in huge losses....cant sell them at this much loss.....and bought more quantity at every down...now no money left to invest in all stocks.....Liquidity is NIL.
This was my 1st month in stock market.....and i learned many things then i lost!
Understood the importance of STOP LOSS. This market crash was Eyeopener for me.
But still worried abt markets....how much time will it take to cross 20000 levels again??
ne analyst over here.....plzz throw some light.....
I believe a lot of pain in market is still left, be very cautious while you trade this morning, all the emerging markets are down significantly.
16,500 could a point from where BSE could bounce back. It is only a speculation call,
Powergrid - 107 - I would recommed buying at 95-98 levels.
NTPC - 180-185 levels,
not sure of RPL and RNRL, I never understood why RPL is among top 15 companies (market cap), when it is still havent started production. But still I guess RPL is trading below its fair value which is 185-190.
Unless Fed comes up with some positive surprise, we could see some more downside.
newbiedelhi Saysbhai rel power kine pe list hoing:whatthat:
Welcome to greyMarket - IPO Information, Grey Market Premium, IPO Allotment, IPO Listing. IPO Ratings, IPO News & lots more
You might want to visit this place, it shows the premium at which the upcoming IPO's are trading in greymarket.
Reliance Power was trading at 350 points preimum, so I believe it will list at
450+350/380 = 800 / 820
Welcome to greyMarket - IPO Information, Grey Market Premium, IPO Allotment, IPO Listing. IPO Ratings, IPO News & lots more
You might want to visit this place, it shows the premium at which the upcoming IPO's are trading in greymarket.
Reliance Power was trading at 350 points preimum, so I believe it will list at
450+350/380 = 800 / 820
rel power premium update: 240-245....
i hope by the time it lists premium should be up to 400+ levels...about 8-9 trading sessions away....
still bullish on the market.....(though will adopt wait and watch policy)
I wonder if you can place order, as of now, Angel, India Infoline, Religare (Andheri East offices) and not accepting orders.
The brokers are already sitting on huge margin loss, unless they pay that to NSE-BSE, I believe they will be not be permitted to place a BUY order.
At this time RBI and SBI's intervention is important, to make sure that system has enough liquidity, otherwise to the worse, some small broking houses might file bankcrupt.
stocks 2 buy
1) 3 i infotech
2) ubi
3) icici
4) zuati ind
5) chambal fertl
akhil and buck sir plz post ur picks also.
ps: i bought 2000 3 i infotech@80 today
It is very dangerous to post picks in such type of markets you see. If you had been watching the near vertical fall of RNRL from 130 level to 80 level today, then you would agree with me that though stocks today have become cheap but there is no comfort in entering at such levels.
But one thing is sure that the stocks which had excessive leverage in them( RNRL, ISPAT, IVR PRIME to name a few)..............will give handsome returns to investors from the current level..........but positions in the derivatives of such stocks is a strict no.................
newbiedelhi Saysas per news rel power listing can be at a discunt
Can you please provide the source of this news?
this article makes an interesting read....
Source: moneycontrol.com
by Udayan Mukherjee
The thing about life is that one makes mistakes. Many mistakes were made in the second half of 2007 and those sins have to be washed away by blood, such is the way of financial markets. Some participants will go down under and never be able to get back to the market again but most will survive. The pain will linger for many months, maybe years but lessons have to be learnt. Every such debacle has lessons for us and the sooner we forget them the more we suffer.
The first lesson is not to let stock price performance become the sole reason for buying, a mistake which was made in abundance in the last 3 months. What couldn't be explained by fundamentals was credited to liquidity. The present lost all relevance as people chose to focus on the distant future, perhaps simply because the present could never justify those ticker prices; only a hazy dream of the future could. Traders and investors had no time for fundamental analysts, in many cases they were labelled "cribbing fools". Chartists became the most celebrated tribe on the street as only they could see and predict the one way run to glory for many of the hot stocks even as fundamental watchers cringed at valuations....till the music stopped. Don't get me wrong, charts do work in trending markets but once stock prices veer away completely from fundamental value, people need to get careful. But they never are. Now that the blinkers are off, people should ask themselves why stocks like RNRL, Ispat, RPL, Essar oil and Nagarjuna fertilisers have lost 50-70% of their value. It is simply because their stock prices had snapped all connection with underlying business fundamentals, earnings and value. Their stock prices became the only reasons for buying them which works for a while but not forever.
The other big lesson, one which should have been driven in earlier in May 2006, is the danger of overextending oneself in the futures market. The lure of stock futures is easy to understand. Put in some margin, take a big exposure on a fast moving stock, make a killing when prices shoot up. Repeat exercise. Just that people forgot that prices may also come down and at a pace which noone can even imagine, maybe their friendly stockbrokers forgot to tell them that part of the story. The result : unbridled speculation that ran into lakhs of crores, excesses that we are paying for today. Even this fall will not cure investors of their love for futures speculation but if at least some amount of caution is injected it would have been a worthwhile learning. Futures are not toys for amateurs, they are time bombs in the hands of inexpert and inexperienced traders, it's only a matter of when the fuse runs out.
The other learning which I hope will play out in the future, as it has in the past, is that it pays to be brave in times of panic such as these. If I was allowed to invest myself , which I am not, I would have no hesitation in deploying serious money into the market today, knowing fully well that prices may fall more tomorrow. And I would be standing there tomorrow to buy more of the same, till my money ran out. India is going to be a terrific stock market story for many years to come, even an intermediate bearish patch cannot shake that conviction of mine. At best, one will have to wait a bit for the returns to follow. That's alright. You are happy to put money in a bank FD and then wait for one full year to collect that measly 8%, aren't you? Then why does the stock market need to give you 20% every month? In the last one year, I haven't seen so many good stocks trade at such mouth watering levels. Forget trading, avoid the duds which were fuelled up by operators, just go out and buy those bluechips. They will deliver, even if there is a global market meltdown for a while, and if you are a bit patient you will be rewarded. But do remember January 2008, as history will repeat itself again in the future. Just that our memories tend to be too short and our greed too much.
Udayan Mukherjee
NOTE: This column was written at 2pm, even as the markets were trading.
this article makes an interesting read....
Futures are not toys for amateurs, they are time bombs in the hands of inexpert and inexperienced traders, it's only a matter of when the fuse runs out.
This is one among the famous quotes by Warren Buffet, it seems so true in last two sessions. There are so many retail investors which are finished. I know so many of my friends who were speculating REL at 3000, assuming Rel Power subscribed at 47-48 levels on the penultimate day.
REL was trading at 1785 yesterday and today 1500+, which counts 1000 odd points down, I wonder how people got margin money, even at 2100 levels !
FNO market is really not for amateurs 😞
Hi Guyz,
Can someone explain me how the fed rate cuts will affect the Indian stock market. I know it has got something to do with liquidity, but would love to learn more about it. Answers devoid of jargon will be really appreciated
.
Regards 
Hi Guyz,
Can someone explain me how the fed rate cuts will affect the Indian stock market. I know it has got something to do with liquidity, but would love to learn more about it. Answers devoid of jargon will be really appreciated.
Regards :smile:
think about it this way....a cut of 75 basis point brings the rate of int in US from 4.25 to 3.50% .....in other words it makes money much cheaper to borrow (trust me 75 basis points is a lot!!)
now if you were an investor in US, it would naturally make more sense to borrow more and chase higher returns.......(which are offered generally by emerging markets)
considering the situation we are in, all emerging markets have fallen by over 7% in last 2 trading sessions (much worse in case of India), making valuations cheap in the medium to long term.....so you should hopefully see major buying in the Indian market today...(as i write this, shanghai stock exchange is up by nearly 3-4%)
to summarize: cheap money--->cheap stocks with decent returns---->buying frenzy!
think about it this way....a cut of 75 basis point brings the rate of int in US from 4.25 to 3.50% .....in other words it makes money much cheaper to borrow (trust me 75 basis points is a lot!!)
now if you were an investor in US, it would naturally make more sense to borrow more and chase higher returns.......(which are offered generally by emerging markets)
considering the situation we are in, all emerging markets have fallen by over 7% in last 2 trading sessions (much worse in case of India), making valuations cheap in the medium to long term.....so you should hopefully see major buying in the Indian market today...(as i write this, shanghai stock exchange is up by nearly 3-4%)
to summarize: cheap money--->cheap stocks with decent returns---->buying frenzy!
Also, whenever Fed cuts interest rate and discount rate, the money from Bond market also flows out to Equity market. Now since, the Fed has reduced 75 bps, the prices in Bond market will increase, and people will book profit and money will flow to equity market. Lets hope, I believe 75 bps is not sufficient at this point of time, if they wouldnt had cut the US market would had sold off yesterday.
Lets keep our fingers crossed for 30th Jan, I hope 25 bps cut on that day.
Also, whenever Fed cuts interest rate and discount rate, the money from Bond market also flows out to Equity market. Now since, the Fed has reduced 75 bps, the yield in Bond market will increase, and people will book profit and money will flow to equity market. Lets hope, I believe 75 bps is not sufficient at this point of time, if they wouldnt had cut the US market would had sold off yesterday.
Lets keep our fingers crossed for 30th Jan, I hope 25 bps cut on that day.
cud u pls calrify dis small query of mine...hw ds a rate cut lead to an increase in d yield in the bond market...cud not make out d link.
as for me, i think there wud be another rate cut on 30th jan...hope so!!
wat about d rbi interest rates??dere shud be a cut...most probbly of 25basis points...watsay??
thanks in advance,
vidhi.
wat about d rbi interest rates??dere shud be a cut...most probbly of 25basis points...watsay??
thanks in advance,
vidhi.
what is basis points ?
ideacrash Sayswhat is basis points ?
1 basis point is equivalent to 0.01% ... someone correct me if I am wrong
cud u pls calrify dis small query of mine...hw ds a rate cut lead to an increase in d yield in the bond market...cud not make out d link.
as for me, i think there wud be another rate cut on 30th jan...hope so!!
wat about d rbi interest rates??dere shud be a cut...most probbly of 25basis points...watsay??
thanks in advance,
vidhi.
Oh just saw my post, the wrote bond yield instead of bond price, if the central bank cuts interbank rates, the yield should decrease, and the bond price should rise, which relates to profit booking in bond market. (Thanks for pointing out).
The Investors book profit in bond market and the money flows to equity market, which is liquidity inflow to the emerging markets.
Yes, Fed emergency cut came up yesterday, on Asian and European cues, which helped US market somehow, DowJones is already trading below its 200 DMA. I believe 30th Jan Fed might go for 25 bps, which will make 100 bps for this Q3.
Kotak bank was expecting 50 bps from Fed, also you might had seen RBI also might cut CRR before coming Budget, which provides a couple of triggers for markets to rally upside.
What kind of people from US invest in the indian Markets, is it corporations like Citibank, HSBC etc., or do individuals aslo invest here?
I read somewhere that Citibank lost billion of dollars in the last quater. I think this stockmarket crash of above 2000 points on 22nd Jan provides good oppurtunity to bigwigs to cash in as some of the share prices are rock bottom.
e.g. DLF 1340 comes down to 700
Deccan or SpiceJet ( dont remember ) comes down from 95 to 46.
and they pepped up after FM statement. People might have earned double the money if they would have bought the shares when the stock market crashed ( although they are not available easily, but to bigwigs they are )...
Ciao..
Kris
rubashg SaysWhat kind of people from US invest in the indian Markets, is it corporations like Citibank, HSBC etc., or do individuals aslo invest here?
Indian market is an emerging market, there are various fund managers who invest in Indian market, which are controlled by corporates. To name a few big names, Goldman Sachs Fund, JPMorgan Fund, Soras Fund (recently was in news, for obvious reasons 😃 ) etc. FII's trade in emerging markets is purely based on technicals, which is essentially the 50-200 DMA (Day moving average), which are usually called support zones for equity markets.
I am not very sure of the rumour that Citibank might file its bankruptcy, if that had been the case, US markets would had opened down circuit straight 😞 , everyone must be praying (including me), that shouldnt happen.

