Fundamental Analysis

Fundamental Analysis

Fundamental analysis in a stock market is analyzing the business health, management of a company

There are two analytical models in analyzing a Stock:

• Fundamental analysis is where markets may mispriced a certain security in the short run, but later it would come back to its value and this short run is been taken advantage.
• Technical Analysis is where the movement of a stock is been reflected in its stock price. The price for which people buy in lots and the price for which people sell in lots the way in which a stock would flow.

Mutual Fund Investments or Unit Trusts

Mutual Fund Investments or Unit Trusts

If you are new to investments I would suggest you to get started through Mutual Fund wherein the risk is much less compared to Stock Market its mainly because it is being managed by professional Fund managers who do their best to manage your investments.

Massachussets Investors Trust now known as MFS Investment Mangement was the first Mutual fund founded in 1924.

Mutual Fund is basically where money from all the investors are made into a pool and then been managed by Fund Managers. There are a lot of companies and Banks which offer Mutual Funds in India. The buying of Mutual Fund will include a small percentage as brokerage. Mutual Fund is basically meant to hold the fund for atleast two years. Even most of the Mutual Fund will have a two year of locking period within which you cannot sell your Mutual Fund.

Types of Mutual Funds:

Exchange Traded Fund

Equity Funds

Open ended Fund

Bonds Fund

Money Market Funds

Funds of Fund

Hedge Funds

Realestate Investment Trust

Realestate Investment Trust

Real Estate Investment Trust or REIT is similar to a equity, But in Real Estate Investment Trust or REIT the investors money is been invested into the Real Estate and the investors gains benefit through the dividends this is good mostly for a long term investor wherein the investors get much more profit than the normal bank It is said that in Bursa Malaysian market around 90% of the profit has to be returned to the investors as dividends. It is based on the structure of the Mutual Fund Marketting.

Difference between a REIT and a Mutual Fund

• A REIT allows the investor to select its own company and invest in it whereas in Mutual Fund the selection lays in the hands of Mutual Fund Manager
• A REIT is more liquid than a Mutual fund.
• The person can buy any amount of REIT stocks and the buying price and there is no minimal amount for investing whereas for Mutual Fund there is a Minimal Amount and some times even a locking period.

Future of REIT

Since the realestate sector is booming in all around the world so is the profit got from the Real Estate sector is also more. Investing in REITS provides much more profit than the money just been kept in the bank for its gowth.

Hot News from the Market

Hot News from the Market

• RBI hikes CRR by 75 basis points.
• Long Term investors and enter the Market at 4000-4200 levels.
• Govt may Deregualate Petrol prices near Budget.

Bearish Stock (Falling Stocks)

Bearish Stock (Falling Stocks)

Here are some bearish stocks at this point of time:

• Aban offshore

• JSW Steels

• India Bulls Real estate

• Tata Steel

• Jindal Saw

• Educomp

These are accepted to show less momentum than other stocks.

The Indian ADR

The Indian ADR

Infosys Technologies Ltd. 52.41

HDFC Bank Ltd. 120.3299

ICICI Bank Ltd. 35.90

Mahanagar Telephone Nigam Ltd. 3.25

PATNI COMPUTER SYS 19.04

REDIFF.COM INDIA ADS 2.7101

Satyam Computer Services Ltd. 4.9599

Sify Ltd. 1.8936

Tata Motors Ltd. 14.95

Wipro Ltd. 19.90

Which Stocks to Buy.

Market might correct (fall) from here a bit more. But for a short term (2-3 months) target it would be good if you invest in those stocks that have corrected a lot in this times correction. I prefer you to buy Suzlon to make fast money which has been fallen from 94 to the current price of 72. If not Suzlon, Unitech is also a good bet. Unitech has fallen from 89 levels. RCF is accepted to come down to 90 and then move up. For a short term Buy any of Railways a week or two before the Railway Budget.

Now its time for those who are bearish, market might see levels of 4200 sooner.

What does Averaging basically mean in a stock market?

What does Averaging basically mean in a stock market?

Averaging is nothing but buying a stock at different rates so that the average price becomes the value of the stock. It is basically done when the investor is not sure of what would be the future of the stock whether it is increasing in price or decreasing in price.

For example: the investor has brought the stock at $100 and the current price in the market is $75. since the stock is in a loss and the investor doesn’t want to loose his money and is also believes that stock would come up in price in future hence he buys the stock at $75 so that the average buying price would much lesser than $100.

In other words if 100 stocks are brought at $100 so the amount invested would be 10000 and if the stock has lowered in price and the current market price is $75 then the total value of stock currently would be 7500 , now if the investor goes for averaging say investor has brought another 100 stocks at current market price then the current investment would be 7500, and the total investment would be 17000 with the total current value being 15000. then the average price would be 87.5 per share.

It is basically calculated by total monthly invested divided by total number of share. In the above case the total investment is 17500 with number of price being 100+100=200 so 17500 / 200 = 87.5

National Stock Exchange

National Stock Exchange

National Stock Exchange (NSE) has been recognized as a stock market since April 1993 by Security Contract Regulation (Act), 1956. Commenced in Wholesale debt market (WDM) in June 1994 and in Equity market in Nov 1994 and derivative in 2000. the following NSE introduced Internet Trading, Exchange Transfer Funds (ETF), stock derivatives, currency index in 2008 ,volatile index. IndiaVIX. And exactly one year later NSE introduced Interest Rate Futures.

Address:

NSE - Corporate Office
National Stock Exchange of India Ltd.
Exchange Plaza,
Plot no. C/1, G Block,
Bandra-Kurla Complex
Bandra (E)
Mumbai - 400 051.

Tel No: (022) 26598100 - 8114
Fax No: (022) 26598120
E-mail : cc_nse@nse.co.in

BSE (Bombay Stock Exchange) (Mumbai Shear Bajar)

History of BSE

BSE is the oldest stock market in the whole of Asia. Which was established in 1875. back in 1875 it was known as “The Native Share and Stock Brokers Association”. Which began with a membership fee of re.1.

BSE is the first stock exchange which got a permanent recognition from the Government of India under the Security Contract and Regulation Act.

ISO 9001:2000 certification BSE is the First market in the India and Second in World.

BSE is world’s largest in terms of number of Stocks listed and fifth largest in terms of transaction which reached USD 1.79 Trillion.

BSE has entered a index corporation with Deutsche Börse, to make BSE indices available to the investors in America and Europe. Moreover Barclays Global Capital the global leaders in ETF ( Exchange Traded Fund) has made 'iShares® BSE SENSEX India Tracker' which tracks the SENSEX. ETF enables the investors in Hong Kong to invest in the Indian markets.

The Indices in BSE :

The companies are classified as A, B, S, T and Z groups. An investor can choose any stock of more than 4700 companies listed in the exchange.

In 1986 BSE came with a indices known as SENSEX. It has 30 stocks representing 12 major sectors. Apart from this BSE offers 21 indices including 12 sectorial indices.

In the year 1989 BSE came with another index known as BSE National Index which consisted of 100 best listed stocks in major stock exchanges of INDIA namely Mumbai, Kolkatta, Madras and Ahmedabad. This got later renamed as BSE-100 later in October 1996. In 2006 BSE launched its Dollar version of BSE-100

As the company listing began to increase BSE came up with another indeces known as BSE-200 or the Dollex -200

BSE-500 in 1999.

In 2001 BSE launched its BSE-PSU index countries first free-floating Index, as the years went on BSE shifted all its Indices in free-floating based index.

Contact Address:

BOMBAY STOCK EXCHANGE LIMITED

PHIROZE JEEJEEBHOY TOWERS
DALAL STREET
MUMBAI- 400001
PHONES : 91-22-22721233/4
FAX : 91-22-22721919

Hot picks

• Intra Day Trading

Aviation looking Smart

• Short term Trading(10-15 days)

• 3-6 Months

1. Now RCF is accepted to fall, Buy RCF once it reaches 90 with a target of 100-105
2. Buy Railway stocks a week or two before the railway budget, and sell on the day before the railway budget.

• 6-1yr
• Long Term (1yr and more)

1. Buy Infrastructure and power stocks for a Long term view (ex: Unitech, DLF, Suzlon, Adani Power)
   
   
   
   
   
   
   
   

   for trading account visit

A Word from Stock Market

• Start accumulating Stocks now with a 3 months holding period. You would really make a lot of money with this

• Nifty likely to be in a narrow range until budget.
• Nifty likely to be at 4600.
• Fertilizer would be a good bet befor the budget but also be cautious.
  

More Hot picks Sector Wise

• Fertilizer looking strong.
• Sugar sector is also strong on 3-6 months view.
• Infra good on a long term play especially unitech, DLF and HDIL.
• Telecom sector also good for very short term play.
  

How Stock Exchange Works

The Indian Stock Exchange is a market place to buy and sell stocks.

• The Stock brokers who buy and sell stocks for u arrange the deal with a commision which might be around 1%.
• The Marketers who buy and sell for you get the profit.

In India we have infact who major stock markets.

• BSE (Bombay Stock Market) (Mumbai Shear Bajar)
  
• NSE(National Stock Market)

BOMBAY STOCK EXCHANGE(MUMBAI SHEAR BAZAR)

Mumbai Stock exchange popularly known as BSE is the oldest stock

in asia and has greatest number of stocks listed in the world. It has the operating time between
9 am and 15:30 IST.

Best Stock Picks

This is a Blog which deals mainly with the HotPicks for the week.

This Blog also checks for the views of many famous stock market experts including Warrent Buffet, Christopher Woods and many more.

disclaimer: the onwner of the blog is not responsible for any of the views been mentioned in the blog.