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Wednesday 31 July 2013

Why Indian market is in free fall





  • Indian Markets have gone in Cruse mode for free fall. There is no stopping now....Many people have asked me why this free fall now,It attributes multiple of reason,
  • Rupee depreciation has caused our deficit to rise and causing pain. Growth is near zero for the worlds fastest growing economy. Yes With no growth, you dont have many to pay the dues.
  • People where initially blaming gold for this, but now that gold import is almost zero, still the rupee depreciation continues. To recover rupee what can government and RBI do, Stop the Futures and Options trading on Currencies, this will stop the speculative trading and will show the actual demand and supply
  • The next reason is that the new govt that will come next year, is causing fear in investors mind, with no clear majority and the regional parties having the trump card will make hard for new govt in centre to have a say on key policies. So there is no hope until there is clear and stable govt in centre.
  • The next is the FII who are pulling out thier money from Indian bonds. They dont have trust in our bonds, so they are sellling in open maket and exiting the market and investing back in US market.We are left at the hands of these foriegn investors,pity to say that we can survive without any imports other an Oil, still our makert is run by this liberal fund managers who take small investors for a ride, 

We dont see any stop in this free fall for now. When Nifty reaches 5200 start cumulating.

Remember dead cat will always bounce back, it's just a trap. 

Friday 26 July 2013

OFS- Offer for Sale-How to make money


  • OFS- Offer for Sale is the new mantra in Dallal street.
  • SEBI has mandated all companies to reduce the promoter stake to 75% in order to protect the minority investors.
  • So promoter holding more than 75% has 2 options either dilute his stake or delist the company by accruing the stake.
  • While som years back many company where ready to delist, now the mantra has changed to be listed, which gives better valuation (most companies are more than 25X of their PE).
  • So how do you benefit from OFS or dilution of stake by promoter is by subscribing to good compaines OFS, usually they are below the market price by upto 5%.
  • Once you subscribe you will be alloted shares based on the price discovered.
  • You can sell these share in open manret after you receive the share to earn some quick bucks.

Sunday 21 July 2013

Various Market Regulators

Indian Market has many regulators to regulate the Market.

Please find the below list

Securities & Exchange Board of India (SEBI)
The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"
www.sebi.gov.in

Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
 www.rbi.org.in

Ministry of Corporate Affairs (MCA)

The Ministry is primarily concerned with administration of the Companies Act, 1956, other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance with law.
www.mca.gov.in

Forward Markets Commission (FMC) 
Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952.

www.fmc.gov.in

Ministry of Finance - Department of Economic Affairs (DEA) 
DEA is the nodal agency of the Union Government to formulate and monitor country's economic policies and programmes having a bearing on domestic and international aspects of economic management.

www.finmin.nic.in

Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

www.irda.gov.in

Tuesday 9 July 2013

INTRADAY STOCK OPTION TIPS: BUY INFY PUT

INTRADAY STOCK OPTION TIPS: BUY INFY 2350 PUT.

Currently at  77.75 we expect it to to go to 90-100 Rs. tommorow

There is news that more of senior management is leaving the company

Monday 8 July 2013

INTRADAY STOCK OPTION TIPS: BUY SBIN CALL

INTRADAY STOCK OPTION TIPS: BUY SBIN 1950 CALL.
Currently at  41.75 we expect it to to go to 82-90 Rs.

Ther is news that the brokers are buying and accumulatin the stock

Thursday 4 July 2013

INTRADAY STOCK OPTION TIPS: BUY ITC 345 CALL


  • INTRADAY STOCK OPTION TIPS: BUY ITC 345 CALL.
  • Currently at  5.75 we expect it to to go to 9-10 Rs.
  • But we suggest the Trgt at 8.25 Rs.
  • Ther is news that the price increase on cigrates has bought the stock interested with brokers
Update:Target achieved- We bought at 5.75 yesterday and exited at 9.75 today - Making 4000 Rs profit

Hope you all enjoyed the profit

Rakesh Jhunjhunwala aquires 4% stake in Firstsource Solutions


  • Recently Rakesh Jhunjhunwala  is realign his portfolio. He is removing all the bad stocks and has been adding a fresh set of stocks.
  • One such move is 4% stake purchase in Firstsource solutions
  • With a PE of 7 and rupee settling in 60 range this definitely got bet for next 2 years.

Wednesday 3 July 2013

INTRADAY STOCK OPTION TIPS: BUY IBREALEST 67.5 CALL


  • INTRADAY STOCK OPTION TIPS: BUY IBREALEST 67.5 CALL at 2.5 will go to 4 by end of week.
  • There is news that promoter are buying the stock from open market.

Rakesh Jhunjhunwala Sells Stake In Crisil


  • In a bulk deal on NSE, Rakesh Jhunjhunwala's wife sold 4 Lac shares of Crisil at R1158.6 per share, aggregating to R46.34 Cr.
  • This is a 8 % reduce in stake buy the family which was holding 54 lac shares.
  • Mcgraw Hill which a majority stake in crisil has shown interest to increase it stake form 54% to 75% just like HUL.
  • So people can hold on this stock for 30% increase in coming code.