MARKET SUMMARY FOR 12 MAY 2015

Sensex falls 630 points 2.4 percent at 26855, Nifty ends down 207 points 2.5 percent at 8118. Tata Steel, Cairn India,Vedanta, BHEL, ICICI Bank and Tata Power were top losers Dr Reddy's Labs and Hero Motocorp were top gainers. Today’s sell off was broad with every single sector index closing in the red. Worst hit were shares from the capital goods, banking, oil & gas, power, realty and auto sectors. About 772 shares advanced, 1943 shares declined, and 147 shares were unchanged. After hitting record highs in this year, indices have been on a downtrend, making lower highs on each rebound and lower lows on each correction.

TODAY RESULT

Dr Reddy’s up by 3.3%.Dr Reddy's Labs Q4 net up 8% Dr Reddy's Labs  has net profit of Rs 519 crore in the quarter ended March 2015 up 7.8% from Rs 481.6 crore in the corresponding quarter last fiscal. During the period, total income was up 11.2 percent at Rs 3870 crore.

Apollo tyres falls by 1.1%.Apollo Tyres Q4 net up 9%at Rs 307 cr for the fourth quarter ended March 31.The company had posted a consolidated net profit of Rs 281 crore during the same period of previous fiscal. Net sales of the company, however, declined to Rs 3,098 crore during the same period compared with Rs 3,211 crore in the same period of previous financial year. top gainers and losers are

MARKET UPDATE FOR 11 MAY 2015

CALLS GIVEN ON 8 MAY 2015

TATAMOTOR CALL ROCKS..!!!!! ACHIEVED TGT 525 AND MADE A HIGH OF 531

AXISBANK CALL  HIT THE TGT 552 MADE A HIGH OF 554.85

CALLS FOR 12 MAY 2015

FUTURE:

"BUY SUNPHARMA ABOVE 969 TGT 985.00 SL 949.00"

"BUY APOLLOTYRE ABOVE 173.50 TGT 179.00 SL 168.00"

MARKET SUMMARY FOR TODAY

 The Nifty closes at 8325 up 133 points or 1.63%. Sensex closed at 27507, up 402  points or 1.48 %. up 133.75 points or 1.63 percent. HDFC, State Bank of India, Infosys, ICICI Bank, Tata Motors and Sun Pharma were among the major contributors to the rally. SBI and Vedanta up over 5 % while Hero, Tata Motors and Tata Steel were lead gainers while HUL, ITC, Wipro and Bharti Airtel were losers .
TODAY RESULT

Bank of baroda rising 17 percent. Because of improvement in asset quality was better .but Bank of Baroda ’s net profit fell 48%  to Rs 598 crore in the March quarter from Rs 1157 crore in the corresponding quarter last fiscal. fall in profit is due to increase in non-performing loan (NPLs) provisionmainly due to higher restructuring.Top gainers and losers are

                                 

MARKET SUMMARY FOR 8 MAY 2015

FUTURE:

"BUY AXISBANK ABOVE 546 TGT 552.00 SL 541.00"

"BUY TATAMOTORS ABOVE 515 TGT 525.00 SL 503.00"

Sensex up 506 pts, Nifty ends above 8150 Banks, auto and capital goods fueled the fire with some strong support. Tata Motors up 5 percent remained top gainer. After falling sharply in last two trading sessions, the markets today opened on a strong note following the positive global cues. The BSE Sensex surged over 574 points to trade above the 27,000 level while the Nifty reclaimed the 8,200 mark in the afternoon trade today as funds and retail investors went about creating fresh positions, driven by the government’s decision to refer MAT issue to a high-level committee. Besides, a rebound in the rupee from the 20-month low also boosted sentiment. The rally was led by a strong showing in auto, realty, banking, capital goods, PSUs, FMCG, metal and IT stocks on fresh capital inflows. Punjab National Bank (PNB) disappointed street on Friday with the fourth quarter profit falling 61.9 percent year-on-year to Rs 307 crore, dented by lower net interest income. PNB falls by 6.57% today. After a stellar rally,  the Sensex ended up 506 points or 1.9 percent at 27105. The Nifty was up 134.20 points or 1.7 percent at 8245.  About 1865 shares have advanced, 835 shares declined, and 169 shares are unchanged. Banks and autos led the rally while Consumer Durables index was in red. Here are the stocks that kept traders busy today.

HOW TO LEARN ABOUT CANDLESTICK & ITS USES ?

FUTURE:

"SELL HAVELLS BELOW 280 TGT 270.00 SL 285.00"

CASH:

"SELL SRF LTD BELOW 916 TGT 895.00 SL 930.00"

What is a Candlestick ?

Candlesticks show the price movement in a certain period, by using the trading day’s open, high, low and close. A candlestick is composed of a box which is called the body, whose length is the difference between the open and close, and thin vertical lines that are called the shadows above and below the body, representing the high and low prices reached during the day. A bullish day with a closing price higher than the opening price is shown by a white (hollow) body; while a bearish day with a closing price lower than the opening is shown by a black body. The body becomes a short horizontal line when the opening and closing prices are equal. In this case the candlestick is called a Doji, which usually signifies indecision in the market.

Though single candlesticks convey valuable information about the changes in a market’s supply and demand balance, a succession of candlesticks taken together, are more pertinent for this purpose as they make a pattern. The superiority of candlestick patterns over other technical analysis tools in forecasting medium and particularly short term direction is proven. Forecasting with candlesticks requires the proper identification of more than eighty different patterns and a well behaved continuous set of data with no missing observations.

Why Candlesticks?

How to Determine Where to Set a Stop Loss

Many investors struggle with the task of determining where to set their stop loss levels. Investors don’t want to set their stop loss levels too far away and lose too much money if the stock moves in the wrong direction. On the other hand, investors don’t want to set their stop loss levels too close and lose money by being taken out of their trades too early.

So where should you set your stop losses?

Let’s take a look at the following three methods you can use to determine where to set your stop losses:

Whether you should go for future trading or option trading and what is the difference?

Future trading in the Indian stock market refers to the buying and selling of the stock futures of individual stock. If you have to buy one future of nifty (one future of nifty equals 200 nifty), you need to pay a margin between 25-50% depending upon the volatility of the index. For example, if you wish to buy future of DLF, then you need to buy 2000 DLF's, which is one lot size of DLF future. Any price movement (up or down) you either get profit or loss. The profits and losses are unlimited while buying or selling a future. When we buy an option i.e., a call or a put we only need to pay the premium and  that is the only risk we have. Options can be on the index as well as the stocks. Stock options are option on individual index. The buyer of an option pays the premium to the seller of the option. The buyer of an option is under no obligation to exercise his option but the seller of the option has to fulfill his obligation if the buyer demands For example, If you buy an index call option at a premium of Rs.20, then at the end of the month the maximum loss you can have is Rs.20, but the profit is unlimited where as the seller of the option will have maximum profit of Rs.20 only and his loss is unlimited. The seller of an option is also called an option writer. New investors and traders should not indulge in option writing or selling. An investor can buy a put option if he thinks that the market is going to go down. He has to pay only premium to the writer. The investors buys the put option which gives the investor the right but not the obligation to sell the stock at a later stage. The date specified at which the option has to mature is called the expiration date i.e.,  the last Thursday of the month. The price specified in the option contract is called the strike price. So a new investor is advised to buy call or put options rather than selling options or trading in future.

HOW DERIVATIVES USE IN STOCK MARKET

CALLS GIVEN ON 1^ST MAY

WOCKPHARMA CALL ROCKS..!!!!! ACHIEVED TGT AND MADE A HIGH OF 1471

AMTEKAUTO CALL ALMOST HIT THE TGT MADE A HIGH OF 163

1. What are derivatives? Derivatives, such as futures or options, are financial contracts which derive their value from a spot price, which is called the “underlying”. For example, wheat farmers may wish to enter into a contract to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction would take place through a forward or futures market. This market is the “derivatives market”, and the prices of this market would be driven by the spot market price of wheat which is the “underlying”. The term “contracts” is often applied to denote the specific traded instrument, whether it is a derivative contract in wheat, gold or equity shares. The world over, derivatives are a key part of the financial system. The most important contract types are futures and options, and the most important underlying markets are equity, treasury bills, foreign exchange, real estate etc.

2. What is a forward contract? In a forward contract, two parties agree to do a trade at some future date, at a stated price and quantity. No money changes hands at the time the deal is signed.

3. Why is forward contracting useful? Forward contracting is very valuable in hedging and speculation. The classic hedging application would be that of a wheat farmer forward -selling his harvest at a known price in order to eliminate price risk. Conversely, a bread factory may want to buy bread forward in order to assist production planning without the risk of price fluctuations. If a speculator has information or analysis which forecasts an upturn in a price, then he can go long on the forward market instead of the cash market. The speculator would go long on the forward, wait for the price to raise, and then take a reversing transaction making a profit.

How does a stock market crash? What are the after effects?

FUTURE:

"SELL SKSMICRO BELOW 465 TGT 450.00 SL 472.00"

"BUY AMTEKAUTO ABOVE 160.00 TGT 165.00 SL 157.00"

CASH:

"SELL VGUARD BELOW 990 TGT 965.00 SL 1015.00"

" BUY WOCKPHARMA  ABOVE 1300.00 TGT 1340.00 SL 1290.00"

A stock market crash is whenever the stock market loses more than 10% in a day or two. This differentiates it from a stock market correction, which is usually a loss of 10% or less over many days. You can measure the percentage losses in a stock market crash with any of the major stock market indices: the Dow Jones Industrial Average, the S&P 500 or the NASDAQ. Crashes are dangerous. They can lead to a bear market, which is an extended stock market decline that typically lasts 18 months.

Recognize the Warning Signs  

The market usually crashes after an extended bull market, which is an upswing in stock prices. Greed drives stock prices above the underlying worth of the company, as measured by earnings. Stock prices that aren't supported by earnings or underlying economic reality is how you can tell when the stock market is about to crash. There's a feeling of "I've got to get in now or I'll miss the profits," which leads to panicked buying. Usually, the individual investor will buy right at the market peak. The stock market crash is the reverse, panicked selling. That's when the individual investor, if driven by fear, usually sells. When investors are driven by emotion, not financials, then that emotion can reverse quickly, turning into panicked selling. That's the symptom of a stock market crash.

What Not to Do

Buying high and selling low is a sure-fire way to lose money in the stock market. That's why it's extremely difficult to time the market. By the time you get the information to make a move, institutional investors and traders have moved on.

What's the solution? Keep a well-diversified portfolio of stocks, bonds Rebalance it as market conditions change. During a stock market crash, stocks will make up less of your portfolio, while stocks will make up more. Sell some of the bonds to buy more stocks, now that the prices are down. When they go up again and they always do you will profit from the upswing in stock prices. You've sold some of your bonds, so you won't lose as much when those prices fall during the bull market. Even the most sophisticated investor finds it difficult to recognize a stock market crash until it is too late.