Nifty PE FOR 1 YEAR - Current value 18.5

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.

5 reasons why Rakesh JhunJhunwala is Bullish in Year 2016

5 reasonewhy Rakesh JhunJhunwala is Bullish in Year 2016

The Bigbull of Indian Equity market is very bullish this year.Following are the key reasons why he is bullish.

• With the Traditional investment rates falling, like FD to 7 %, Money has started flowing into market.
• Falling of Gold price has also made new gen investors to shy away from investion in Gold and started investing in markert.
• Flow from Indian Mutual funds have been so good that its matching the outflow from FII's.
• He also feels that we had a healthy correction from 9000 to 7500.And we will start bounching back.
• One sectors he says caution is the Banks, as more bad news to come and the Banking stocks could fall further.So be cautious in investing in Banks.
• Sectors that will shine in 2016 is Pharma,Defence,Infra and Housing Finance.
• Stock he is bullish on is Lupin,Aurobindo Pharma,Kotak,HDFC,Indigo,TataMotors
• Rakesh has been very consistent in his predictions. So people who like the Big Bull can follow his advice and invest in the above stocks. 

RBI .5 percent Rate Cut will help the Market- So is Fed going to raise the Rate?

RBI .5 percent Rate Cut will help the Market-So is Fed going to raise the Rate?

• Raguram Rajan has surprised the Market yesterday with .5 % ratecut.
• This Exited the Traders instantly and they moved sensex to 700 point in intraday.
• Buy FII quickly saw the opportunity to exit and brought down the Sensex.
• With India Inflation to remain around 6 % , the best that RBI Governor has is .75 % as the current RBI Rate is 6.75 % at which it lends to Bank.
• Banks keep 2.5 % minimum above this and sell it to us. The cover there expenses and profit in this.
• But currently the economy is weak, despite the rate cut it has not exited the FII.
• This has caused the exit of FII, Also i think RBI Governor would have sensed that the Fed will raise its interest rate in next meeting. So he want to give some cushion for our economy and market.
• So we should carefully watch the Fed meeting next month and see if all going well, then Fed is expected to raise interest rate by .25 %
• Also Bihar elections are being closely looked at as it could affect the Political equation in the country as some more big state are going to election next year.
• So Its a wait and watch game if you are a trader and Accumulate if you are investor.

What is Open Interest and Volume and how do they differ in Stock Market

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.  

Is Nifty Trend Reversing? a Comparison with 2005 to 2008 Chart patterns

Is Nifty Trend Reversing? a Comparison with 2005 to 2008 Chart patterns

• Was looking at Nifty Today. Some how feel that the reversal has already started.
• Comared the patterns with 2005 to 2008 Nifty and it looks same to me
• Look the below Charts and let me know what you think,
• You can see every time it fallen it hasn't crossed previous highs.
• Be Cautious while trading.

3yrs Chart till Date:

2005 TO 2008 Sep Chart

NIFTY PE is still high at 21.63 after recent market crash

NIFTY PE is still high at 21.63 after recent market crash

• Recent crash has not give much attractive valuation for Nifty. Its still in 21.63 which is high.
• We feel more correction is left and Nifty will come around PE 18.
• We will see in coming days how this pans out. We wont see a drastic fall, but a slow erosion is what we expect.

How to predict when a Stock is going to change the direction

How to predict when a Stock is going to change the direction

This is the question every trader and investor in Stock market has, how to predict when a Stock is going to change the direction? Always i have seen the so called Market Experts say its very difficult to predict exactly.

With over 10 yrs in Market we have now fine tuned on this topic and now we can say for sure when the Stock will change direction


Have look at this INFY Stock Chart.

• You can very clearly see that SMA 5 and SMA 20 makes a cross over
• At the sametime MACD 12 has crored EMA 26 9as shown in charts)

This is the change point where the stocks gets to change the direction and move.


With these 2 simple technique you can milk money in millions. 

How Rakesh Jhunjhunwala is making Million dollars a day

How Rakesh Jhunjhunwala is making Million dollars a day

• The call him the bull , the Warner Buffet of India,the Man with the Midas touch.Top fund house managers stand in queue to get his views on Indian market.Yes he is Rakesh Jhunjhunwalla

• We can now give hing an another Tittle "The Million Dollar Baby". Yes for the past 1 year his investments have been giving returns of 1 million every day (whooping 8.4 crore rupees)

• His current portfolio value stands at 7200 Crores which makes him the highest earning Individual investor in Capital market.

• The stocks which shined in his portfolio are Lupin which has moved to 1200 Rs.

• Interestingly his top pick is still Titan with a value of 2600 Crores followed by Lupin and then Crisil.

• All these teaches us few things.Invest in good Companies,Accumulate when they fall , and stay invested at-least for 5 to 10 years to be the next Bull.

Very simple ,yet very difficult to follow.But once you practice you will be the next Star of Stockmarket

Cipla Multibagger Trgt -2 yrs Price is 600 Rs

• Cipla’s journey began in 1935 when our founder, Dr. K. A. Hamied, set up an enterprise with the vision to make India self-sufficient in healthcare. Over the past 77 years, we have emerged as one of the world’s most respected pharmaceutical names, not just in India but worldwide.
• They have 34 state-of-the-art manufacturing facilities that make Active Pharmaceutical Ingredients (APIs) and formulations, which have been approved by major international Regulatory Agencies. 
• They have over 2000 products in 65 therapeutic categories; with over 40 dosage forms, covering a wide spectrum of diseases ranging from communicable, non-communicable, common and emerging diseases to even rare diseases.
• They are not only focused on profit but also on giving cheap drugs to users . In 2012, they  reduced the prices of cancer drugs, thus making world-class medicines affordable and accessible to cancer patients.
• This has giving a huge brand and love making Cipla the mosy preferred drug maker in emerging countries.
• Avg EPS has increased by 25% YoY.
• One can expect the stock to touch 600 Rs in 2 yrs timeframe.