THE WEEK THAT WAS… 13.8.2012 – 17.8.2012
In the month of August 2012, till date, FIIs have pumped in positive net amounts daily in the equity market (Figure 1), crossing even Rs1000 crore on a particular day. Their net investments from August 1 to August 17 have been to the extent of Rs.5688 crore. On the back of this the Sensex has [...]
Daily Report 29.08.2012
Stock Markets Today For the 4th consecutive session the equity benchmarks dropped on Wednesday. Hopes of the government reforms lessened after consistent parliament deferment from the opposition party. Despite foreign money inflow the downtrend continued. For the 1st time in 3 ½ weeks the Nifty ended below the 5300 mark. The index dropped by 46.80 [...]
Nifty to Remain Rangebound This Week
On Friday the Sensex was down by 3.13 points to 17,557.74 and the Nifty went down to 5,320.40 by 2.55 points.
Ramky Enviro Engineers – IPO News
The latest buzz created in the primary market in India is by the Ramky Enviro Engineers Ltd (REEL) with its plan to raise a whopping 125 million dollars through the IPO issue in the Indian markets.
Stocks to watch
Stock Recommendations for This Week
According to sources, Adani Enterprises has proved to be a short sell for quite sometime now and the trend seems to persist. Therefore, it is advisable to sell Adani Enterprises as it is moving towards making new lows. New lows do not present a good option for buying in any case.
Buy SBI Stock with a Target Price of INR 2270
According to sources it is recommended to adopt a buy rating approach on SBI stock along with a target price of Rs 2270.
CLASSROOM
Repo Rate and Reverse Repo Rate
A repurchase agreement or repo is generally a technique used in the money market. Usually the Reserve Bank of India in India and other commercial banks get involved in repo transactions. Apart from that financial institute, banks and even individuals can engage in repurchase agreement. Repo is nothing but collateralized lending where banks borrowing money [...]
Insight into the various aspects of Options Trading
This article offers first time investors and traders with a brief understanding into the Options Trading world. Options trading provide lots of opportunities to experienced traders who are well aware of the complexities involved in the market with an urge to take risks. That is why Options which can also be defined as trade for [...]
INDIA VIX
IMPLIED VOLATILITY (INDIA VIX) 16.6.2011
I have already explained the concept of implied volatility in an earlier post. It is a forward looking concept and as it is expresses the expected movement of the underlying in the next 30 days. In this case the underlying is NIFTY and the implied volatility is India VIX. The relationship between the two is [...]
IMPLIED VOLATILITY AND MARKET SENTIMENT
Implied Volatility (IV) is the measure of volatility that is obtained from the Black and Scholes option pricing model. As we all know, the option price is a function of the spot price S, the strike price K, time to expiry t, volatility and the rate of interest r. If we plug in all these [...]
TRADING STRATEGIES
LEVERAGED TRADING
Leverage in a layman’s language is ‘borrowed money’. Individuals, corporates borrow money to increase their return on investment. In the stock market, leverage is the ability to trade a large position (i.e. buying large quantity in bulk) with only a small amount of trading capital. Most amateur traders trade using cash, meaning that if they [...]
FIXED MATURITY PLAN (FMP)
In the debt segment, there are quite a few assets that are available to an investor. These are fixed deposits (FD) in banks, fixed deposits with corporates, NCDs of corporates, government securities, NCDs of public sector enterprises etc. To the retail investor, the alternative of debt mutual funds is also there. Now, there are the [...]
