17 April 2014

BULLISH MOMENTUM EXPECTED TO CONTINUE IN NIFTY

A runaway gap is found around the middle of a trend, usually after the price has already made a strong move. It is a healthy sign that the current trend will continue as it indicates continued, and even increasing, interest in the NIFTY .  After a  nifty has made a strong move, many of the traders that have been on the sideline waiting for a better entry or exit point decide that it may not be coming and if they wait any longer they will miss the trade. It is this increased buying or selling that creates the runaway gap and continuation of the trend.

Understanding Price Earning Ratio

What is a P/E ratio? 
The price to earnings (P/E) multiple or ratio is probably the most popular indicator used by investors for valuing stocks. It is the ratio of a company's stock price to its earnings per share. (Earnings per share or EPS is a company's net profit divided by the number of shares it has issued.) Another way of looking at the P/E ratio is as a ratio of the value that the market thinks a company deserves (its market capitalisaton) to its net profit. 
What does it mean? 
It tells you how to cheap or expensive a company's stock is. It is the number of times investors must pay for the company's current earnings. For example, assume that the share price of a company is Rs.80. If its EPS is, say Rs 5, its P/E is 16. So investors are willing to pay 16 times for every rupee of the company's earnings. 
What is the use of P/E ratio to me? 
Since you can use the P/E ratio to figure out if a company's stock is cheap or expensive, you can compare the stock price of one company with that of another company in the same industry, or stocks of two companies from different industries. You can have a P/E ratio for an industry as well as a stock group, like the BSE Sensex or the NSE Nifty. 
Does it have any limitations? 
It is a good guide but it is not a watertight indicator. The P/E published in a newspaper is for the previous year. But stock prices move because of investors' future expectations. A company with an admirable P/E in one year may post a loss the next year and there will be no P/E left, since earnings disappear. 
Even if two companies have the same P/Es in the same industry, they may not be equally cheap or expensive. You will need to know which company will have a better earnings growth next year to evaluate one against the other. 
The major number entering the P/E ratio from the profit and loss statement is net profit. Some companies are known to inflate profit figures. For example, earnings under the head called 'other income' which could be by way of selling assets (and hence non-business income) can play spoilsport and result in a misleadingly low P/E to lure gullible investors. Lower expenses than the actuals can also inflate the net profit number and hence distort the P/E. 
What is forward P/E? 
Analysts use a measure called forward P/E based on their net profit forecasts for the next year, but this number is not easily available to all. 
Forward P/E has the expectation of analysts built into it. The better the analysts' forecasts of profits, the closer will be the forward P/E to the actual number.

KEYS TO TRADE IN NIFTY FOR 17-APRIL-2014

  • On Wednesday The rupee lost five paise to 60.28 against the US dollar.
  • Trading of Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 11.50 points in morning session. 
  • Down jones 162 points up  16,424.
  • NIKKIE 51 points down  @14,365.
  • HENG SENG 58  points up @22,754
  • Upcoming result : Wipro Ltd. , HCL Technologies Ltd. , GlaxoSmithKline Pharmaceuticals Ltd. , Crisil Ltd. , Liberty Shoes Ltd.

16 April 2014

TOUGH FIGHT BETWEEN BULLS AND BEARS ON 17-04-14

"Buy Petronet Future above 142.8 TG 144.5/146.8 SL 140.3"
NIFTY FUTURE OUTLOOK FOR TOMORROW
As we have predicted the nifty couldnot cross the level of 6800 today.Nifty future opened higher and made a high of 6780 but edged lower after the forecast of june –september monsoon below normal this year.  The low of 6688 was  witnessed today by nifty The index has turned quite weak it can slide further down if it were to fall below 6690   key support area. Once 6705 is taken out decisively on high volume activity and the index might go down to test  6650 strong support zone....

MUST KNOW BEFORE TRADING IN NIFTY

  • The rupee on Tuesday lost six paise and closed at 60.23 against the dollar on sustained dollar demand from importers
  • Trading of  Nifty futures on the Singapore stock exchange indicates a flat opening of market.
  • Down jones 89 points up  16,262
  • NIKKIE 316 points up  @14,313
  • HENG SENG 142  points up @22,814
  • Results today  : Tata Consultancy Services Ltd. , IndusInd Bank Ltd. , MindTree Ltd. , Reliance Industrial Infra Structure Ltd. , RS Software (India) Ltd

15 April 2014

THE LEVEL OF 6800 HURDLE FOR NIFTY

NIFTY FUTURE OUTLOOK FOR TOMORROW
Nifty was nearly 50 points down today. Infy gains as Q4 profit beats estimates.Nifty future started at the level of  6900 the high  of today  but then fell till 6735 low of the day.
It could not cross even the level of 6800 in intraday trade. Now nifty may face a hurdle to cross the level of 6780 tomorrow ,if manages to cross this level then next level of 6820-6840 is to be  monitored for tomorrow.....

MUST KNOW BEFORE TRADING IN NIFTY

§  The rupee continued to decline against the American currency for the 2nd consecutive week by dipping another 9 paise to 60.17 per dollar on persistent demand of US currency from banks and importers.
§  Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 21 points at the opening bell
§  Down jones 146 points up 16,173
§  NIKKIE 114 points up @14,024.
§  HENG SENG 109  points down @22,929
§  Result today: nfosys Ltd.

12 April 2014

EXPECTING UPTREND IN NIFTY FOR NEXT WEEK

NIFTY FUTURE OUTLOOK FOR TOMORROW
Nifty was range bound today, it edged lower in morning trade and made a low of 6775 . Then again it managed to cross 6800 level but could not sustain it till the end. Nifty future settled at 6797 . Now market will open after 3 days on 15 april. The level of 6800 may provide a opening platform on Tuesday.