NIFTY TRENDS
Tuesday, December 15, 2009
BANK NIFTY REAL WEALTH BUILDER!!!!
Time to follow that sector which is making panic in market these days .Attaching some charts that speak themselves .
REGARDS
NIFTY TRENDS TEAM
Sunday, December 13, 2009
SENSEX IN CONSOLIDATION
ABOVE AS WE HAVE TRIED TO SHOW IN WEEKLY CHART WHY WE ARE TRANDING IN TOO TIGHT RANGE FROM SOME DAYS .IT IS SENSEX MAIN RESISTANCE ZONE BREAK OF WHICH WILL MEAN 1200 POINTS RALLY . BREAKOUT WILL BE MASSIVE AND SHOULD BE USED BY ALL MAKE QUICK MONEY .
SAME THING IS REFLECTED IN DAILY CHARTS BY CHANCE ANY BAD NEWS ALSO COME IT WILL BE HUGE BUYING OPPORTUNITY .TILL WE HOLD 16600-800 LEVELS .
DERIVATIVE DATA SHOWS THAT THRE WILL BE GOOD VOLATILITY IN COMING DAYS . VIX INDEX FOR THE WEEK ENDED WAS 27.14 ,UP 1.01 COMPARED TO PREVIOUS WEEK 26.14.
4900 AND 5000 PUTS HAVE SEEN REDUCTION IN OPEN INTREST WHILE 5100 PUTS HAVE SEEN SOME BUILD UP .
POINT TO NOTE IS THERE IS HUGE BUILD UP IN 5300 AND 5400 CALLS WHICH SUGGEST IF BREAKOUT HAPPENS UPSIDE IT WILL BE GOOD ONE .
TIME TO BUY MID CAPS AND SMALL CAPS WHICH ARE UNDERVALUED TO GET MASSIVE RETURN IN SHORT TIME SPAN .
REGARDS
NIFTY TRENDS TEAM
Sunday, December 6, 2009
JUST NIFTY MANAGEMENT
NIFTY TRENDS WHO TRACK NIFTY BETTER THAN ANYONE RECORDS THERE IN BLOG NOW INTRODUCING JUST NIFTY MANAGEMENT :
1. What is Just Nifty MANAGEMENT ?
Nifty trends is runing since last 14 month .It is our special managment pack where only nifty will be traded in form of Nifty fut. Nifty options and NIFTY BEES depending on market conditions .
2 WHY ONLY JUST NIFTY MANAGEMENT ?
Just Nifty will be index traded management risk reward ratio will be more favourable and return of management will more than benchmark Indices .Many people think investment cannot be done here and wait for correction to enter . But if you take just nifty management you will not loose time waiting for correction rather will make more money with voilent moves in Nifty .
3. MINIMUM CAPITAL REQUIRED FOR JUST NIFTY MANAGEMENT IS 3.5 LAKHS .
4 LOCK IN PERIOD WILL BE 45 DAYS .
5 Subscription charges : PER MONTH Rs 4000 + taxs = Rs 4500 + 20% of return generated.
CONTACT US for Just Nifty Management email : niftytrends@in.com
mobile no : 9958731117 , 9386641943.
1. What is Just Nifty MANAGEMENT ?
Nifty trends is runing since last 14 month .It is our special managment pack where only nifty will be traded in form of Nifty fut. Nifty options and NIFTY BEES depending on market conditions .
2 WHY ONLY JUST NIFTY MANAGEMENT ?
Just Nifty will be index traded management risk reward ratio will be more favourable and return of management will more than benchmark Indices .Many people think investment cannot be done here and wait for correction to enter . But if you take just nifty management you will not loose time waiting for correction rather will make more money with voilent moves in Nifty .
3. MINIMUM CAPITAL REQUIRED FOR JUST NIFTY MANAGEMENT IS 3.5 LAKHS .
4 LOCK IN PERIOD WILL BE 45 DAYS .
5 Subscription charges : PER MONTH Rs 4000 + taxs = Rs 4500 + 20% of return generated.
CONTACT US for Just Nifty Management email : niftytrends@in.com
mobile no : 9958731117 , 9386641943.
Friday, September 18, 2009
No toppish pattern still all feel correction?
First of all we will say one world Sorry for not updating blog on regular basis these days .
As we have posted on last post 700 points break out can come and this favoured mostly my bulls frds .PCR above 1.6 .But unlike jan this time many retails and traders are trapped on wrong foot shorting market on every rise so big correction can come unlikely as predicted by many gurus of stock Mkt .Its not worth to be more cautious and loose opportunity every time and again justify with some logic the same .
NO BIG CORRECTION IN NEAR TERM A CORRECTIVE RALLY CAN COME AS WE ARE APPROCHING DERIVATIVE EXPIRY TILL 4850..
No sign of toppish . Investors who have bought @ 2600-2800 can book 25% of portfolio to enter new virgin stocks .
Regards
NIFT TREND TEAM
As we have posted on last post 700 points break out can come and this favoured mostly my bulls frds .PCR above 1.6 .But unlike jan this time many retails and traders are trapped on wrong foot shorting market on every rise so big correction can come unlikely as predicted by many gurus of stock Mkt .Its not worth to be more cautious and loose opportunity every time and again justify with some logic the same .
NO BIG CORRECTION IN NEAR TERM A CORRECTIVE RALLY CAN COME AS WE ARE APPROCHING DERIVATIVE EXPIRY TILL 4850..
No sign of toppish . Investors who have bought @ 2600-2800 can book 25% of portfolio to enter new virgin stocks .
Regards
NIFT TREND TEAM
Friday, August 14, 2009
Sensex whats next ?
Tuesday, June 23, 2009
SENSEX VIEW FOR SHORT TERM
Finally Momentum trend line in sensex will break? Nifty view we have mentioned earlier now time to do some analysis of sensex . Nifty below 4345 will keep creating pressure. If this momentum line is not holded we feel we can see 12700-800 levels soon .Expiry is near so we cannot do this in one go but Danger will be breaking the momentum line .
Regards
Niftytreads TEAM
Thursday, June 18, 2009
NIFTY VIEW 18 JUNE
We have yesterday posted chart and showed -ve divergence which pulled market down. Now all have same question in mind are we moving down to see 3900 levels ? This small so called bull market ended ?
What we feel is this fall has to come as many indicators showing -ve divergence and where not able to move up. Yesterday if anyone tracked Yen has also fallen 1.3$ and so sentiment was negative from morning itself . If you watch crude you will see if bounce back which show bulls still alive and will take all opportunities to save their goal post.
Now our view is any bounce which has to come should come here and we should hold 4345 on closing basis .We will suggest buy on dips here with stoploss below 4300.
Regards
Niftytrends Team
Tuesday, June 16, 2009
Nifty update 17th June 2009
It has been a long time since we posted charts. We have seen markets zooming up in this time. Currently Nifty is in a rising channel and has experienced channel resistance. There has been some negative divergences in daily chart. We have to see if Nifty sustains above 4300 and moves up. If not we can see it drifting to lower levels. So aggressive short only below 4300 till then mantra is buy on dips .Budget also coming up, so keep tight stoploss and trade accordingly.
Regards
NIFTYRENDS TEAM
Thursday, May 14, 2009
NIFTY TRENDS SUBSCRIPTION PLANS
NIFTY TRENDS CHANGE IN SUBSCRIPTION PLANS
PLAN A :
EQUITY + COMMODITY @ JUST 130$ per month
EQUITY + COMMODITY @ 330$ Quarterly
PLAN B :
EQUITY @ JUST 80$ per month
EQUITY @ 165$ Quarterly
RATES WILL BE APPLICABLE FROM TODAY MID NIGHT .
15% DISCOUNT WILL BE OFFERED TO CLIENTS WHO JOIN BEFORE 30th May .
Regards
Nifty Trends
PLAN A :
EQUITY + COMMODITY @ JUST 130$ per month
EQUITY + COMMODITY @ 330$ Quarterly
PLAN B :
EQUITY @ JUST 80$ per month
EQUITY @ 165$ Quarterly
RATES WILL BE APPLICABLE FROM TODAY MID NIGHT .
15% DISCOUNT WILL BE OFFERED TO CLIENTS WHO JOIN BEFORE 30th May .
Regards
Nifty Trends
Wednesday, May 6, 2009
Nifty update 7th May 2009
Nifty has done very well since our last update. We had told 3350 supports and from there it has done well. Now we see negative divergences forming between the indicators and price. We would recommend to reduce positions or keep a trailing stop loss on all longs. The resistance seems to be 3747 and the support is 3500 and 3300 region is a good support region.
Friday, April 24, 2009
NIFTY UPDATE 24TH APRIL
Tuesday, April 21, 2009
Nifty as on 21st April 2008
This is the Daily chart of Nifty Futures. As seen from it, Nifty fell due to divergence on cci with price. Now we see that Nifty is near the support. Turbo cci has gone down. We have to see whether it hooks in the next 2 days. If it hooks then market would have taken support and we can see an upmove again.
Monday, April 13, 2009
NEARING MAJOR HURDDLE
TIME TO BE CARE FULL OR SAY CARE FOOL Does not matter . If u are long keep 3320 sl .
Market near multi month trend line if you can see and last day dozi was created in nifty daily so it can be warning sign . IF you see market in April , May , August ,october all neared the trend line and never crossed .
RETRACEMENT LEVELS MENTIONED IN CHARTS .
Regards
NiftyTrends Team
Wednesday, April 8, 2009
Nifty update
As stated in our previous chart, Nifty is doing a superb salsa!!! and surprised all intra day. This rise seems to be very fast and furious discounting many factors like rate cut etc. Just a view In this rally no one talking about bear market all have turned bullish . We should remember that we have not come to 8000 levels from 21000 because of any problem in India . This fall was led by DOW which is yet to give break out failing of which can result sharp fall .
Remember in our last post we have shown extend of Bear market rally. We are yet to break out either on Charts of dow jones or it happens to nifty also remember that till next week we are having alternate trading days .Keep you Profit floating and enjoy the ride .
Support : 3224 , 3160
Resistance : 3390-3430.
Regards
Nifty trends team
Remember in our last post we have shown extend of Bear market rally. We are yet to break out either on Charts of dow jones or it happens to nifty also remember that till next week we are having alternate trading days .Keep you Profit floating and enjoy the ride .
Support : 3224 , 3160
Resistance : 3390-3430.
Regards
Nifty trends team
Thursday, March 26, 2009
Nifty EOD 27th Mar 2009
We had told Nifty will breakout of channel in intraday chart. Nifty went up more than we expected. Let us now see the Daily charts and see where Nifty is heading. We can see that from past 2 months Nifty has been in a channel. As of now we can expect to see some channel resistance of 3150-3180. The result season will dictate whether Nifty will breakout from this channel. If breakout happens then Nifty - BELIEVE IT OR NOT- can see 3500-3700 levels!!! That will be an impressive rally in a bear market. But as of now 3150-3200 is VERY IMPORTANT channel resistance.
Sunday, March 22, 2009
Nifty Futures Update 23/03/2009
This is a 15 min time frame intraday chart of Nifty futures. As can be seen from chart, it is in a range from 2760 to around 2800 levels. A clear breakout from these levels and if it sustains above this then we can see the next range resistance level which is around 2871. As of now 2760 is acting as a support where a sort of double bottom was formed.
Tuesday, March 17, 2009
Nifty futures Point and Figure Chart
This is a 15 min chart of Nifty futures. We have used the Point and Figure method to analyse it. Let us see what it is telling. The rally of the past 3 days started when it broke the diagonal trendline around 2650. From the chart, we can see that recently futures had made high of 2800 and retreated. Today also Nifty tried to break the high of 2800 but could not sustain and fell. we might see 2650 and if that is broken 2400. Right now 2800 on the upside and 2650 on the downside are the levels to be watched out.
ALERT NIFTY RESISTANCE NEARING
Monday, March 9, 2009
SHORT TERM VIEW FOR SHORT TRADING WEEK
In last post we have suggested that big move is coming . Bears still have upper hand now and their position is safe till 2702-2710 is not broken and closed above that.
CHARTS ABOVE SHOWS NIFTY IN DOWNWARDS CHANNEL AND SHORT WEEK WILL ALSO PLAY CRUCIAL ROLE NOW .No one wants to take huge position home as dow trading below crucial level any big movement in Dow can make gaps in our charts .
Bulls have last hope as show in last chart area of 2490-2520 . This will be bouncy for them and any break for that area will be invite trouble for them as next support below that lies in area 2252-2350.
SUGGESTION : Our suggestion would be use intra day trading opportunity than taking long positional calls .
Regards
NIFTYTRENDS TEAM
Monday, March 2, 2009
BE READY FOR BIG MOVEMENT SOON
In last post we have showed hooking of CCI when nifty was trading above 2900 and mentioned that below 2830 nifty will face selling pressure on every rise .
LATTEST NIFTY VIEW : As above charts shows thats nifty is trading in small range and trying to consolidate before taking any further voilent move . Some of indicators like elliot trigger is near zero line and cci hooking again .
BULLS WILL BE SAFE IF NIFTY TRADES ABOVE 2753 AND BREAKOUT 2828 LEVELS NOW FOR BREAK OUT FOR AT LEAST NEXT 200 POINT MOVE ON UPSIDE .So I would suggest bulls to wait for breakout .
BEARS are safe as long as Nifty trades below 2784( this level derived from intraday chart of nifty ).
MAJOR SUPPORTS FOR NIFTY SPOT : 2700 ,2660, 2628
MAJOR RESISTANCE FOR NIFTY SPOT :2753,2784,2828.
HAVE A NICE TRADING DAY !!
Regards
NIFTYTRENDS TEAM
Wednesday, February 11, 2009
Nifty 12 Feb 2008
WE were bullish from some time now and we now entered good resistance area .Charts shows cci hooking so would suggest to hold longs with tight STOPLOSS .RETRACEMENT CAN BE TILL 2830 BELOW WHICH AGAIN FREASH SELLING CAN COME .
BULLS IF HOLD 2930 ON CLOSING BASIS WILL GO TO SEE 3028-50 AREA .
REGARDS
NIFTY TREND TEAM
Wednesday, February 4, 2009
NIFTY VIEW FOR 4.02
Sunday, February 1, 2009
NIfty update 2nd Feb 2009
Tuesday, January 27, 2009
Nifty update 28th Jan 2009
Wednesday, January 21, 2009
NIFTY UPDATE SHORT TERM
As We have mentioned is our last post that Bull will take charge only if we cross 2940.
But bad luck for bulls that we have not moved on higher end and market remains to be in the range and bears zones from last some days .
People were expecting some overnight turn around by newly elected president of US that made market 50:50 game for both bulls and bears and brought intra day pull back .Expiry also near just 7 days so we may see volatile trade .But any close below 2660 will be brutal for bulls and will shatter all hope of pull back for bulls .So message is clear.
BULLS :: PROTECT 2660 AREA YOU WANT PULL BACK TO 2840
BEARS :: BREAK 2660 AREA IF YOU CAN FOR GREATER REWARD .
HAVE A GREAT PROFITABLE DAY AHEAD
REGARDS
NIFTY TREND TEAM
Wednesday, January 14, 2009
Sunday, January 11, 2009
NIFTY SHORT TERM VIEW
SATYAM SHOCK PROVED TO BE BIG SENTIMENT REVERSAL FOR ALL MARKET .
NIFTY CLOSED ABOVE SUPPORT AREA 2805 THAT IS ONE BIG POSSITIVE THING . NIFTY NEED TO CROSS 2940 TO GAIN MOMENTUM FOR BULLS . WE FEEL WE WILL BE IN RANGE TILL RESULT START COMING AND THEN WILL TAKE ONE SIDE MOVE .
ABOVE CHART SHOWS ACCUMULATION DISTRIBUTION RESTING NEAR TRENDLINE THIS WAS TRIGGER WE USED TO PREDICT SHORT TERM RISE FROM 2550 LAST TIME.
THE BEST IDEA HERE IS TO WAIT FOR TREND TO CLEAR AND THEN TAKE DIRECTION .
BULLS REQUIRE 2940 TO BREAK UPSIDE FOR NEXT MOMEMTUM TO RESUME
BEARS NEED TO BREAK 2777-70 AREA AND CLOSE BELOW FOR DOWNSIDE MOVEMENT .
REGARDS
NIFTY TREND TEAM
Thursday, January 8, 2009
Satyam Computer Service : View Of A.K.Prabhakar
Satyam Computer Service:
Think best teacher is stock market is itself. It teaches us new lessons everyday. It takes exams everyday. One who scored more then 90% yesterday may even fail today. But it watches very carefully. It passes only those students who prepare well before the exams. So prepare well today. Prepare well everyday.
Few lesson which we have to learn from Satyam episode:
First I have to admit that Satyam is there in Compact15 list and error of judgment by not exiting around Rs.170 few days back when the list return was 39.8% is misjudgment. Due to 15stock the risk is divided and even after major correction the list gives good return.
Error is human when one is judging stock market he can never be prefect or 100% right, if one is right 50-60% of the time itself returns should be high.
If some one is above average he will not be advising he will be counting M3.
Quote: Man's greatest enemy in speculation is 'hope.' We refuse to face facts, and facts are stubborn things. Hope spurs us on. It may be an anchor to the soul, but it's a very slim anchor in speculation when those facts are against us."- W.D. Gann (1955)
Few things to recollect on 07/01/2009
Many calls which I got "can I buy Satyam"?
This was difficult question to answer- 1) if I say buy and if the stock becomes zero.
2) If I say don't buy and if the stock doubles due to any take-over. Both chances were bright as we have seen both many times and it was hard decision to take during market hours. So I replied I didn't understand buy other stock like Infosys, Wipro or TCS.
Data says total 70% of the paid-up capital was traded in both exchange on 07/01/2009 and 43% delivery has been lifted (30% of company stake)
Founder and Chairman B Ramalinga Raju resigned after saying he falsified earnings and assets to the tune of Rs 5,500 crore. Institutional shareholders sold 8.62% of their combined holdings. Abardeen, one of the largest shareholders, sold the entire 5.6% stake it had in Satyam, and Swiss Finance also exited. Stock Exchange data showed huge sales by Morgan Stanley and Fidelity as well.
Then who brought 30% of Company stake in a single day?
Retail investor! This is the big possibility as far as my understanding goes, Many want to take instant decision which is harmful and only retail can take decision even without a 2nd though. And many would have brought in excess of there capacity and now this would create some payment problem for investor and as well as broker.
Then why didn't exchange stop trading in Satyam?
-No Answer-
Does history repeat on a regular basis?
From 1990 till date 2009 I have been seeing the same kind of mistake in stock market in different form many times I have strongly advised many things but on few occasions it becomes too cumbersome or emotional or lack of information to give an opinion. Global trust bank, SquareD, Silverline, PentaMedia are few stocks which eroded value of investor in similar way.
What about Satyam I have invested?
I have no comment on this, as Govt will be more interested in 53,000 employees than the Equity holders at this point of time. Previous many instances like Global trust Bank has showed that Equity investor are least preferred and there are many other priority and that is what Company Act1956 also says.
Now many ask is Indian corporate trustable?
This kind of corporate fraud happen world over (Enron is standing example) and things like this has been eye-opener and will improve systems over a period of time. Important lesson from this episode is that any promoter who are pledging there holding should be asked to disclose as we have seen many corporates getting into trouble.
Rating agency or Auditors have miserly failed, now who has rate the rating agency and who will audit the audit firm.
Indian stock market from 1988-2009 has seen remarkable change, there were days when a stock brought will take 3-6month to reach and when we send registration will take few more months. So when we buy people we had next few years in mind. Now investors never look beyond few more days and many call them investor and buy in derivative (Which has expiry).
Investment wisely made has always rewarded highly and that has made many turn to investing in stock, Risk is part of life and only understandable calculated risk has been rewarding….Invest wisely with longer term objective use fear to your advantage invest in staggered manner in Quality stock.
Basics of successful investing in my preview:
· Divide risk-A portfolio should have basket of stock minimum of 15 to maximum 40; too many stocks also will be difficult to monitor.
· Understand Risk- Stock market is always called risky asset for many reason there are chance many companies can fail. Warren Buffet in one of the interview said: there were 4000 companies manufacturing car in U.S, today hardly 3 and all 3 are finding it hard to survive, and many companies produced Television including GE now none. Bottom line when Risk is divided overall return should produce excellent result.
· Buy good Companies in bad times: This has been totally mis-understood many think a company which was Quoting around Rs.500 if it comes to Rs.50 we should buy 1/10 of value. Good management means Best corporate practice, long standing management, good dividend paying track record, highest disclosure norms.
· Never invest with-out prior home work and never get carried away by news or rumors many are misleading and it normally blocks us from thinking rationally.
· Invest in a staggered manner to get a better price.
· Invest in simple business, as peter lynch used to say; "Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
There is a theory called the Pareto Principal also known as the 80/20 rule and it goes something like this: in any human activity a few (20%) are vital and many (80%) are trivial.
* You wear 20% of your clothes 80% of the time
* 20% of stock produces 80% of sales in a normal retail store.
* 20% of sales people make 80% of commissions
* 20% of authors sell 80% of all books
* 20% of what you do in the day will result in 80% of your success
* 20% of traders take 80% of all profits from the markets.
Aberdeen Asset Management Asia said on Thursday it no longer owned any shares in India's Satyam, Aberdeen owned about 9.2% of Satyam as of October last year.
http://business-standard.com/india/news/raju-confesses-to-fraud-quits/00/47/345600
http://www.mydigitalfc.com/companies/third-mess-pwc-after-gtb-dsq-soft-210 Third mess-up by PwC after GTB, DSQ Soft
During market time we send a list: TCS, INFOSYS, WIPRO, MARUTI, ITC, TATAPOWER, SBIN, ICICIBANK, PNB, THERMAX, HINDLEVER, CROMPTON, BHEL, LT, TATASTEEL, RCOM, RPL, RELIANCE, SAIL, NALCO, ACC, GRASIM, IDEA, CAIRN, ABB, SIEMENS, GAIL, ONGC, BEL, BEML, NTPC, NALCO POWERGRID, HDFC, HDFCBANK for investing.
Please understand we are in bear market which will continue for another 15months and in my view there can be minimum for 6-9rallies which can fizzle out similar to this, so buying in panic and holding few months would normally give good returns. This market is like a rocking chair will be moving up & down but end result will be it will be here, and in my experience bear market give safety returns as a investor…. Buy only in cash have minimum of 20-30 stocks. I have selected Govt PSU stock, MNC & stocks long standing promoters.
Think best teacher is stock market is itself. It teaches us new lessons everyday. It takes exams everyday. One who scored more then 90% yesterday may even fail today. But it watches very carefully. It passes only those students who prepare well before the exams. So prepare well today. Prepare well everyday.
Few lesson which we have to learn from Satyam episode:
First I have to admit that Satyam is there in Compact15 list and error of judgment by not exiting around Rs.170 few days back when the list return was 39.8% is misjudgment. Due to 15stock the risk is divided and even after major correction the list gives good return.
Error is human when one is judging stock market he can never be prefect or 100% right, if one is right 50-60% of the time itself returns should be high.
If some one is above average he will not be advising he will be counting M3.
Quote: Man's greatest enemy in speculation is 'hope.' We refuse to face facts, and facts are stubborn things. Hope spurs us on. It may be an anchor to the soul, but it's a very slim anchor in speculation when those facts are against us."- W.D. Gann (1955)
Few things to recollect on 07/01/2009
Many calls which I got "can I buy Satyam"?
This was difficult question to answer- 1) if I say buy and if the stock becomes zero.
2) If I say don't buy and if the stock doubles due to any take-over. Both chances were bright as we have seen both many times and it was hard decision to take during market hours. So I replied I didn't understand buy other stock like Infosys, Wipro or TCS.
Data says total 70% of the paid-up capital was traded in both exchange on 07/01/2009 and 43% delivery has been lifted (30% of company stake)
Founder and Chairman B Ramalinga Raju resigned after saying he falsified earnings and assets to the tune of Rs 5,500 crore. Institutional shareholders sold 8.62% of their combined holdings. Abardeen, one of the largest shareholders, sold the entire 5.6% stake it had in Satyam, and Swiss Finance also exited. Stock Exchange data showed huge sales by Morgan Stanley and Fidelity as well.
Then who brought 30% of Company stake in a single day?
Retail investor! This is the big possibility as far as my understanding goes, Many want to take instant decision which is harmful and only retail can take decision even without a 2nd though. And many would have brought in excess of there capacity and now this would create some payment problem for investor and as well as broker.
Then why didn't exchange stop trading in Satyam?
-No Answer-
Does history repeat on a regular basis?
From 1990 till date 2009 I have been seeing the same kind of mistake in stock market in different form many times I have strongly advised many things but on few occasions it becomes too cumbersome or emotional or lack of information to give an opinion. Global trust bank, SquareD, Silverline, PentaMedia are few stocks which eroded value of investor in similar way.
What about Satyam I have invested?
I have no comment on this, as Govt will be more interested in 53,000 employees than the Equity holders at this point of time. Previous many instances like Global trust Bank has showed that Equity investor are least preferred and there are many other priority and that is what Company Act1956 also says.
Now many ask is Indian corporate trustable?
This kind of corporate fraud happen world over (Enron is standing example) and things like this has been eye-opener and will improve systems over a period of time. Important lesson from this episode is that any promoter who are pledging there holding should be asked to disclose as we have seen many corporates getting into trouble.
Rating agency or Auditors have miserly failed, now who has rate the rating agency and who will audit the audit firm.
Indian stock market from 1988-2009 has seen remarkable change, there were days when a stock brought will take 3-6month to reach and when we send registration will take few more months. So when we buy people we had next few years in mind. Now investors never look beyond few more days and many call them investor and buy in derivative (Which has expiry).
Investment wisely made has always rewarded highly and that has made many turn to investing in stock, Risk is part of life and only understandable calculated risk has been rewarding….Invest wisely with longer term objective use fear to your advantage invest in staggered manner in Quality stock.
Basics of successful investing in my preview:
· Divide risk-A portfolio should have basket of stock minimum of 15 to maximum 40; too many stocks also will be difficult to monitor.
· Understand Risk- Stock market is always called risky asset for many reason there are chance many companies can fail. Warren Buffet in one of the interview said: there were 4000 companies manufacturing car in U.S, today hardly 3 and all 3 are finding it hard to survive, and many companies produced Television including GE now none. Bottom line when Risk is divided overall return should produce excellent result.
· Buy good Companies in bad times: This has been totally mis-understood many think a company which was Quoting around Rs.500 if it comes to Rs.50 we should buy 1/10 of value. Good management means Best corporate practice, long standing management, good dividend paying track record, highest disclosure norms.
· Never invest with-out prior home work and never get carried away by news or rumors many are misleading and it normally blocks us from thinking rationally.
· Invest in a staggered manner to get a better price.
· Invest in simple business, as peter lynch used to say; "Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
There is a theory called the Pareto Principal also known as the 80/20 rule and it goes something like this: in any human activity a few (20%) are vital and many (80%) are trivial.
* You wear 20% of your clothes 80% of the time
* 20% of stock produces 80% of sales in a normal retail store.
* 20% of sales people make 80% of commissions
* 20% of authors sell 80% of all books
* 20% of what you do in the day will result in 80% of your success
* 20% of traders take 80% of all profits from the markets.
Aberdeen Asset Management Asia said on Thursday it no longer owned any shares in India's Satyam, Aberdeen owned about 9.2% of Satyam as of October last year.
http://business-standard.com/india/news/raju-confesses-to-fraud-quits/00/47/345600
http://www.mydigitalfc.com/companies/third-mess-pwc-after-gtb-dsq-soft-210 Third mess-up by PwC after GTB, DSQ Soft
During market time we send a list: TCS, INFOSYS, WIPRO, MARUTI, ITC, TATAPOWER, SBIN, ICICIBANK, PNB, THERMAX, HINDLEVER, CROMPTON, BHEL, LT, TATASTEEL, RCOM, RPL, RELIANCE, SAIL, NALCO, ACC, GRASIM, IDEA, CAIRN, ABB, SIEMENS, GAIL, ONGC, BEL, BEML, NTPC, NALCO POWERGRID, HDFC, HDFCBANK for investing.
Please understand we are in bear market which will continue for another 15months and in my view there can be minimum for 6-9rallies which can fizzle out similar to this, so buying in panic and holding few months would normally give good returns. This market is like a rocking chair will be moving up & down but end result will be it will be here, and in my experience bear market give safety returns as a investor…. Buy only in cash have minimum of 20-30 stocks. I have selected Govt PSU stock, MNC & stocks long standing promoters.
Wednesday, January 7, 2009
Friday, January 2, 2009
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