Nifty PE FOR 1 YEAR - Current value 18.5
- NIFTY P/E is the best indicator which helps long term investors to decide when to enter and when to exit.
- For past 1 Year Nifty has Fallen from 24 to 18.5. This shows the weakness in Market.
- Long term can start investing in staggered manner after P/E goes below 18. P/E generally can go till 15 and Bouce back from there Sharply.
- As India is still in Growth Phase, we can see the stocks booming.
- Current fall is because of Global factor and US probably going into recession again.
What are Dark Horse Stocks
- These are stocks which are for high risk investors.
- These Dark Horse Stocks can make you good money or you can loose all of them.
- These stocks have not got into the eyes of active traders or fund house and there fundamentals are poor in currnet day. But the potential to become multibagger over a period of time.
- Example for such stocks are Marksan Pharma, Spice Jet etc.
- Its just the time that it takes we dont know when it will shine, some time in 1 year,2 year, or 10 years, you just have to wait patiently.
- Other dark horses are one which have some unique features like niche technology,patented products, possibility to emerge as a multibagger. Examples are Eicher Motors, Suven Life Science.
What is Open Interest and Volume and how do they differ in Stock Market
- An open interest is the total number of contracts outstanding (yet to be settled) for an underlying asset. The quotes given above show us on August 9, 2010 Nifty futures has an open Interest of 32062850. It is important to understand that number of long futures as well as number of short futures is 32062850. This is because total number of long futures will always be equal to total number of short futures. Only one side of contracts is considered while calculating/ mentioning open interest. On August 8, 2010, the open interest in Nifty futures was 30959200. This means that there is an increase of 1103650 in the open interest on August 9, 2010. The level of open interest indicates depth in the market.
- Volumes traded give us an idea about the market activity with regards to specific contract over a given period – volume over a day, over a week or month or over entire life of the contract.
Key Points on What Yuan devaluation means to Indian Share Market
- China is Worlds largest Manufacturing export country.
- With 2 % Devaluation of the currency, the export from China will become Cheaper.
- So countries like India which is also trying to become Manufacturing Country now has to compete with China as the Product manufactured in China will be Cheaper then India.
- So in order to handle this Indian Rupee will also depreciate close to 2 % if it want to stay competitive with China
- So our currency will devalue some where at close to 65.5 Rs per dollar.
- We will see exporting companies losing close to at-least 2 % of there revenue because of this.
- Also this will put lot of companies in Slowdown as China itself is struggling with its exports and when will we export if China cant export :)
- So apart from all the Media buzz that we will handle it, truth it truth. We are going to have very tough 2 to 3 quarters of results.
