23 April 2014

NIFTY OUTLOOK FOR 24-04-14

Sell AXIS bank future below 1516 TG 1509,1498 SL 1525
Buy Tata steel  future above 428 TG 433,436 SL 424
NIFTY FUTURE OUTLOOK FOR TOMORROW
The stock market remains closed tomorrow, 24 April 2014, on account of Parliamentary elections in Mumbai constituency. The barometer index Sensex, and Nifty, both, hit record high on closing basis as well as on intraday basis The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections  Nifty future   settle at 6,841 , a record closing high for the index. The index hit a high of 6,858 in intraday trade, a lifetime high for the index. The index hit a low of 6,824 in intraday trade. The stock market remains closed tomorrow, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.....

22 April 2014

KEYS TO TRADE IN NIFTY FOR 22-04-2014

  • On Monday the rupee lost  30 paise to end the day at almost one-month low of 60.59 against the dollar due to fresh demand for the US currency from importers
  • Trading Nifty futures on the Singapore stock exchange indicates a flat opening 
  • Down jones 40 points up  16,449
  • NIKKIE 44 points up  @14,556.52
  • HENG SENG 51  points down @22,708
  • Upcoming result : HDFC Bank Ltd.MRF Ltd.,Rallis India Ltd.,VST Industries Ltd.Tata Elxsi Ltd.


21 April 2014

NIFTY ATTAINED RECORD CLOSING HIGH

CASH DELIVERY CALL : "Buy Exide ind. above 130 TG 148,162 SL 119"
NIFTY FUTURE OUTLOOK FOR TOMORROW
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire on Wednesday, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency. Nifty was up 38 points  to 6,827, a record closing high for the index.....
The index hit a high of 6,849 in intraday trade, a lifetime high for the index. The index hit a low of 6,801 in intraday trade. Tomorrow, once we see the Nifty sustaining above 6820, we can expect it to test the important supply zone between 6850 and 6870—this happens to be the most critical levels for the day as well. Even if the index were to cross the upper boundary of the most critical supply zone levels, we do not expect it to take out the strong resistance zone between 6830 and 6850 range.

NSE NEWS FOR TODAY 21-APRIL-2014

  • The rupee on Thursday gained by 8 paise to close the day at 60.29 against the dollar in line with the surge in stock markets, breaking three-day losing streak.
  • Trading of CNX Nifty futures on the Singapore stock exchange indicates a flat opening
  • Down jones 16  points down 16,408.
  • NIKKIE 91 points up  @14,607.
  • HENG SENG 64 points up @22,760
  • Upcoming result : Hindustan Zinc Ltd. , LIC Housing Finance Ltd. , Priti Mercantile Company Ltd. , HEG Ltd. , Supreme Petrochem Ltd.

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....