PMS Commodity Equity shares Trading Tips MCX NCDEX NSE BSE Exchange Research Technical De-Mat: June 2012

Before exploring the vast world of stock-picking methodologies, we should address a few misconceptions. Many investors new to the stock-picking scene believe that there is some infallible strategy that, once followed, will guarantee success. There is no foolproof system for picking stocks! If you are reading this tutorial in search of a magic key to unlock instant wealth, we're sorry, but we know of no such key.

This doesn't mean you can't expand your wealth through the stock market. It's just better to think of stock-picking as an art rather than a science. There are a few reasons for this:

1. So many factors affect a company's health that it is nearly impossible to construct a formula that will predict success. It is one thing to assemble data that you can work with, but quite another to determine which numbers are relevant.

(1:35 PM 06/15/2012) YESBANK SELL CALL TGT 334 ACHIEVED

LME STOCK: COPPER +4375, ALUMINIUM -13375, NICKEL -372, ZINC +6825, LEAD +725

(12:46 PM 06/15/2012) SILVER BUY CALL TGT 54825 ACHIEVED

12:32 PM 15/06/2012 BOTH TGTS ACHIEVED IN COPPER

(12:18 PM 06/15/2012) YESBANK SELL ARND 335.50-336 SL 438 TGT 334/330.50 : NSE

(12:14 PM 06/15/2012) TATAMOTOR BUY CALL 2TGT 438.50 ACHIEVED

(12:13 PM 06/15/2012) SILVER BUY CALL UPDATE: BOOK A PROFIT AT 54780 OR TRAIL UR SL 54575 FOR NEXT TGTS

12:11 PM 15/06/2012 Copper Buy Call target 416.50 achieve.

(12:03 PM 06/15/2012) TATAMOTOR BUY CALL TGT 434.50 ACHIEVED

How to Analyse the Stock?

Warren Buffet is considered to be a genius when it comes to stock investment. He recommends an important thing to the investors that the stock (company) you are thinking to buy or invest should have been around for at least ten years. There are a number of factors to be considered befere investing in a stock. This article will help you in understanding such factors.

Techniques to Evaluate StocksFollowing are the things that will guide you in taking an investment decision. They will show you the strength of the financial position of a company. So that it will be easy for you to select a stock and invest in that.

Company History :-It is better to invest in companies that have in existence from minimum 10 years. Over the course of a decade, many things can happen to a company. There will be good times and bad times for everything.

(11:43 AM 06/15/2012) SILVER JULY BUY ARND 54650-70 SL 54475 TGT 54825/55050 : MCX

(11:20 AM 06/15/2012) TATAMOTOR BUY ARND 231 SL 227.75 TGT 234.50/238.30 :NSE

10:17 AM 15/06/2012 BUY RELINACE FUT 726 FOR TARGAT OF 736-740 STOP LOSS 719

10:51 AM 15/06/2012 BUY MCX COPPER JUNE AT 414.60 SL BELOW 413.3 FOR TGTS 416.5-417.2

Thursday, June 14, 2012

2:22 PM 14/06/2012 NIFTY 5000 PUT AT 71.3 FIRST TARGET ALMOST ACHIVED BOOK FULL PROFIT

(1:11 PM 06/14/2012) NIFTY BUY CALL TGT 5110 ACHIEVED

(12:56 PM 06/14/2012) NIFTY FUT BUY ARND 5090-92 SL 5072 TGT 5110/5130 : NSE

Inflation Update-

March WPI inflation has been revised to 7.69% versus 6.89% (MoM),
Manufactured products inflation for May has come in at 5.02% versus 5.1%,
food articles at 10.74% versus 10.5%, primary articles at 10.88% versus 9.71% while fuel group is at 11.53% versus 11.03% MoM)

(11:42 AM 06/14/2012) SILVER JULY SELL ARND 55120-130 SL 55292 TGT 54970/54800 : MCX

11:12 AM 14/06/2012 BUY NIFTY 5000 PUT BETWEEN 52-56 FOR TARGET OF 75-85 STOP LOSS 35

Wednesday, June 13, 2012

Know what is all about Copper

Copper is a metal that has played a vital role in human civilization. One of the earliest metals harnessed by human beings, copper is still widely used as an industrial raw material. In their hieroglyphics (picture writing), the ancient Egyptians used the Ankh sign to represent copper. The Ankh was also the symbol of Eternal Life, which is appropriate for copper since it has been used continuously by people for 10,000 years.

Homer, following the Greek practice of around 1000 B.C., called the metal Chalkos. This is why the Copper Age is also known as the Chalcolithic Era.

A thousand years later during the Early Christian Era, the words "aes Cyprium" appeared in Roman writings about copper, because much of the metal at the time came from Cyprus. The word "copper" is an Anglicized term of this Latin phrase.

Copper is the third largest consumed metal after steel and aluminium in the world. Copper is used as electrical conductor, construction material and as components in telecommunications and alloys.

LME STOCK: COPPER +3875, ALUMINIUM -13500, NICKEL -336, ZINC -2525, LEAD -550

(1:56 PM 06/13/2012) NIFTY SELL CALL TGT 5110 ACHIEVED

(1:37 PM 06/13/2012) NIFTY SELL CALL UPDATE :: BOOK PARTIL PROFIT AT 5120 OR TRAIL UR SL AT 5145 FOR NEXT TGTS

1:22 PM 13/06/2012 CRUDEOIL BUY CALL TARGET 4660 ACHIEVED.

(1:12 PM 06/13/2012) NIFTY FUT SELL ARND 5135-40 SL 5166 TGT 5110/5090 : NSE

1:00 PM 13/06/2012 BOOK PARTIAL PROFIT IN MENTHA OIL AT 1392, HOLD REST WITH SL AT COST

(12:49 PM 06/13/2012) SILVER JULY BUY ARND 55180-200 SL 55045 TGT 55350/55500 : MCX

12:37 PM 13/06/2012 BUY MCX MENTHA OIL JUNE AT 1385-1382 SL BELOW 1370 FOR TGTS 1410-1422

DEMAT ACCOUNT

The term "demat", in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place.

Access to the demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed.

Advantages of demat

A demat account also helps avoid problems typically associated with physical share certificates, for example: delivery failures caused by signature mismatch, postal delays and loss of certificate during transit. Further, it eliminates the risks associated with forgery and mutilation due to damaged stock certificates. Demat account holders also avoid stamp duty (as against 0.1 per cent payable on physical shares) and filling up of transfer deeds. Demat account holders usually obtain quicker receipts of benefits like stock splits and bonuses.

The other advantage is the ability access stocks, bonds, ETFs, IPO, Gold ETF, etc. all in one place. Its like one centralized investment account from where you can access and maintain investment products.

What is meant by Face Value of a share/debenture?

The nominal or stated amount (in Rs.) assigned to a security by the issuer.

For shares, it is the original cost of the stock shown on the certificate; for bonds, it is the amount paid to the holder at maturity. Also known as par value or simply par. For an equity share, the face value is usually a very small amount (Rs. 5, Rs. 10) and does not have much bearing on the price of the share, which may quote higher in the market, at Rs. 100 or Rs. 1000 or any other price. For a debt security, face value is the amount repaid to the investor when the bond matures (usually, Government securities and corporate bonds have a face value of Rs. 100). The price at which the security trades depends on the fluctuations in the interest rates in the economy.

How to become a Successful Day Trader?

Intraday Trading/ Day Trading are one of the most attractive ways of making money. It is a money game; experts can make huge money, at the same time one who doesn’t know anything about the market may lose huge money. Understanding the below given points will help you in creating a fair idea about intraday trading.

Start saving
If you want to participate in intraday trading you should have enough savings with you. You can use 10 – 15% of your savings every day for intraday trading. If you don’t have good money backup with you a considerable loss in the market can place you in financial problem. So before entering in intraday trading make sure that you have enough savings.

Plan before Trading
There are different kinds of traders in the market such as day trader, swing trader, short term trader, long term trader, etc. before trading you need to decide what kind of trader do you want to be? A Day Trader works in the market every day and requires more research, monitoring of the market, supervision, guidance, etc. before trading you should have a clear plan about your trading pattern other strategies.

(11:57 AM 06/13/2012) CRUDEOIL BUY ARND 4640-45 sl 4621 tgt 4660/4685 : MCX

HOW TO PREDICT FUTURE STOCK PRICE

Due to speculative nature of stock prices, it is nearly impossible to predict the future price of stocks. Stock prices are mainly run by investor perception about company’s future performance and expected growth.

As we all know, stock prices are highly fluctuating and keeping a tab on them is indeed a huge challenge.

Be Aware of All News Related to the Markets
As a stock trader, you should be aware of all incoming news about the company whose stocks you wish to buy. From the news, you can predict whether it will have a positive or negative impact on the stock price. In case of a good news for a stock, positions can be made in advance and also on intra-day basis to make good profits. Good stock research is the key to success in this field.

Study the Chart Patterns
Studying stock chart patterns is very important for all interested in stock trading. Some chart patterns are bullish while some others are bearish in nature. In case of a bullish chart formation, positions can be made for a few trading sessions and then profits can be booked. In case of a bearish pattern, exiting the stock immediately before the huge free fall would be the right strategy. Chart patterns help to understand weakness and strength in the stock thus enabling us to predict future price targets.

11:29 AM 13/06/2012 Book Profit in NIFTY at 5100. TGT achieved.

10:56 AM 13/06/2012 SELL NIFTY FUT @ 5125, SL 5138, TGT 5100.

10:29 AM 13/06/2012 BUY NCDEX SOYABEAN JUNE AT 3438 SL BELOW 3418 FOR TGTS 3470-3485

Tuesday, June 12, 2012

(3:03 PM 06/12/2012) GOLD AUG SELL ARND 29735-40 SL 29790 TGT 29690/29650 : MCX

2:51 PM 06-12-2012 DELIVERY TRADE BUY IRB ABOVE 122 FOR TARGET OF 132-135 STOP LOSS 114 CASH LEVEL

2:41 PM 06-12-2012 BUY BANK BARODA FUT ABOVE 714 FOR TARGET OF 725-735 STOP LOSS 704

(1:35 PM 06/12/2012) NIFTY SELL CALL UPDATE; BOOK A PROFIT AT 5071 OR TRAIL UR SL AT 5100 FOR FURTHER TGTS

LME STOCK: COPPER +4350, ALUMINIUM -11575, NICKEL -150, ZINC -2450, LEAD +300

(1:24 PM 06/12/2012) CRUDEOIL SELL ARND 4580-85 SL 4611 TGT 4560/4540 : MCX

1:06 PM 06-12-2012 SL HIT IN COPPER

(12:54 PM 06/12/2012) RMSEED BUY CALL 2TGT 3755 ACHIEVED BOOK FULL PROFIT

(12:41 PM 06/12/2012) NIFTY FUT SELL ARND 5085-90 SL 5125 TGT 5055/5025 : NSE

(12:27 PM 06/12/2012) RMSEED BUY CALL TGT 3742 ACHIEVED

(12:19 PM 06/12/2012) RMSEED BUY CALL UPDATE: BOOK A PROFIT AT 3730 OR TRAI UR SL AT 3700 FOR NEXT TGTS

(11:40 AM 06/12/2012) RMSEED JULY BUY ARND 3715-18 SL 3689 TGTS 3742/3755

11:36 AM 06-12-2012 BUY VOLTAS FUT ABOVE 109 FOR TARGET OF 111-114 STOP LOSS 107.5

11:09 AM 06-12-2012 SELL MCX COPPER JUNE AT 410.7-411 SL ABOVE 412.1 FOR TGTS 408.5-407.8

10:59 AM 06-12-2012 BUY BOM DYING FUT ABOVE 500 FOR TARGET OF 508-515 STOP LOSS 493.8

Monday, June 11, 2012

1:24 PM 06-11-2012 SELL NIFTY FUT BELOW 5100 FOR TARGET OF 5070-5050 STOP LOSS 5025

11:16 AM 06-11-2012 SELL JPYINR JUNE AT 69.4200 SL ABOVE 69.58 FOR TGTS 69.1550-69.0550

10:48 AM 06-11-2012 BUY TATATSTEEL FUT ABOVE 416 FOR TARGET OF 422-428 STOP LOSS 411.8

(10:42 AM 06/11/2012) COPPER JUN BUY ARND 411.50 SL 409.80 TGT 413.20/415 : MCX

10:02 AM 06-11-2012 SELL BANK NIFTY FUT BETWEN 10095-10105 FOT TARGET OF 9950-9900 STOP LOSS 10160

10:00 AM 06-11-2012 CLOSE ICICI BANK FUT AT 848

Crude oil on MCX may open around 4760-80 with Gap Up.

9:57 AM 06-11-2012 BUY ICICI BANK FUT ABOVE 845 FOR TARGET FOR TARGET OF 855-865 STOP LOSS 838.8

Friday, June 8, 2012

Gold and silver are moving upward due to Weakening Rupee vs USD while market is still weak

2:03 PM 08/06/2012 BOOK PARTIAL PROFIT IN HDFCBANK AT 531.5 AND MOVE SL TO COST CASH LEVEL

(1:43 PM 06/08/2012) zinc sell call update: book aprofit at 104 or trail ur sl at 104.60 for next tgts

(1:36 PM 06/08/2012)silver july sell around 53620-640 sl 53890 target 53390/53130:MCX

10:21 AM 08/06/2012 CLOSE DIVIS LAB TRADE AT 949.5

9:51 AM 08/06/2012 BUY DIVIS LAB ABOVE 945 FOR TARGET OF 956-966 STOP LOSS 939.8 CASH LEVELS

Gold is trading 1.54% down on Commex from previous day while Silver is trading 1.58% down from its previous day's close. So MCX may open weak around 1% to 1.2% down.

Thursday, June 7, 2012

5:28 PM 07/06/2012 Buy MCX Aluminium (June) at 108.20-108.25 for targeting 109.40 with SL below 107.60

4:47 PM 07/06/2012 Buy MCX Crude Oil (June) at 4715-4720 for targeting 4770 with Sl below 4690

4:46 PM 07/06/2012 Target hit in copper, Book full profit at 410.40

4:35 PM 07/06/2012 Book Partial Profit in Copper at 409, rest hold for target with SL at cost

3:16 PM 07/06/2012 book full profit in bataindia at 846

3:14 PM 07/06/2012 RELIANCE TRADE WAS NOT INITIATED PLS IGNORE

3:13 PM 07/06/2012 FIRST TARGET IN BATAINDIA AT 840 IS ACHIVED USE TRAILING SL TO NEXT TARGET OF 850 CASH LEVELS

Sure Shot return of 48% p.a or 4% p.m for those who have holdings in SUZLON can sell SUZLON in cash and Buy in June Futures of SUZLON: Rmoney Research

2:42 PM 07/06/2012 CLOSE PNB TRADE AT 750.5

2:40 PM 07/06/2012 BUY RELIANCE FUT ABOVE 726 FOR TARGET OF 736-740 STOP LOSS 719.8

2:38 PM 07/06/2012 BOOK PARTIAL PROFIT IN BATA INDIA AT 835 AND MOVE SL TO COST CASH LEVELS

2:29 PM 07/06/2012 Buy MCX Copper (June) at 406.60-406.80 for targeting 410.40 with Sl below 404.80

2:24 PM 07/06/2012 BOOK FULL PROFIT IN MARUTI AT 1137

(2:16 PM 06/07/2012) SILVER SELL CALL UPDATE: BOOK A PROFIT AT 55170 OR TRAIL UR SL AT 55355 FOR NEXT TGTS

(2:04 PM 06/07/2012) AXISBANK SELL CALL SL TRIGGERED

The Five Golden Rules while dealing in stock or commodity Markets

The Five Golden Rules

1. Invest or Trade in the direction of the Trend!

The fastest and most risk free way to make money in the markets is to identify a change of trend in the market as early as possible, take your position, ride the trend and close your position shortly after the trend reverses.

Any market professional will tell you that it is impossible to buy at the lows and sell at the highs (or sell at the highs and buy at the lows) consistently, but with the Trend Trading Picks Newsletter, it is very possible to catch 60 to 80% of many intermediate term and long term market movements.

2. Cut Losses Quickly

In order to keep trading, you must preserve your capital. It is therefore important to keep the individual losses small in relation to the overall size of your trading capital. If you can keep trading in the direction of the trend, the big profits will come. If you are risking too high a percentage of your trading capital on each trade, you could end up blowing your entire trading capital.

(1:26 PM 06/07/2012) CRUDE SELL CALL TGT 4671 ACHIEVED

LME STOCK: COPPER -1900, ALUMINIUM -28750, NICKEL -1608, ZINC +175, LEAD +175

1:34 PM 07/06/2012 CLOSE HCLTECH TRADE AT 498.5

(12:59 PM 06/07/2012) CRUDE SELL CALL TGT 4690 ACHIEVED

12:49 PM 07/06/2012 MARUTI AT 1133 FIRST TARGETALMOST ACHIVED USE TRAILING SL TO NEXT TARGET OF 1146

12:36 PM 07/06/2012 BUY HCL TECH FUT ABOE 496 FOR TARGET OF 504-510 STOP LOSS 491.8

(12:33 PM 06/07/2012) AXISBANK FUT SELL ARND 1005-1007 SL 1015.80 TGT 998/990 : NSE

12:23 PM 07/06/2012 BOOK PARTIAL PROFIT IN MARUTI AT 1127 AND MOVE SL TO COST

(12:11 PM 06/07/2012) SILVER SELL ARND 55260-280 SL 55475 TGT 55085/54850 : MCX

(12:08 PM 06/07/2012) CRUDE SELL CALL UPDATE: BOOK A PROFIT AT 4701 OR TRAIL UR SL AT 4725 FOR NEXT TGTS

12:05 PM 07/06/2012 BUY PNB FUT ABOVE 744 FOR TARGET OF 754-764 STOP LOSS 737

12:03 PM 07/06/2012 PANTALOON TRADE WAS NOT INITIATED PLS IGNORE

Pivot Point Trading

Here's Your Lesson on Pivot Point Trading

You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations.

The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels.

The pivot level and levels calculated from that are collectively known as pivot levels.

11:48 AM 07/06/2012 BUY USDINR JUNE AT 55.3050 SL BELOW 55.20 FOR TGTS 55.4850-55.5575

(11:32 AM 06/07/2012) CRUDE SELL ARND 4715-20 SL 4752 TGT 4690/4671 : MCX

Sure Shot return of 25% p.a or 2% p.m for those who have holdings in ABAN can sell ABAN in cash and Buy in June Futures: Rmoney Research

10:27 AM 07/06/2012 BUY PANTLOON FUT ABOVE 161 FOR TARGET OF 166-170 STOP LOSS 158.8

Wednesday, June 6, 2012

3:14 PM 06/06/2012 CLOSE CAIRN AT 319 AND BANK INDIA AT 337

Portfolio Management Strategies

Portfolio Management Strategies refer to the approaches that are applied for the efficient portfolio management in order to generate the highest possible returns at lowest possible risks. There are two basic approaches for portfolio management including Active Portfolio Management Strategy and Passive Portfolio Management Strategy.
Active Portfolio Management Strategy
The Active portfolio management relies on the fact that particular style of analysis or management can generate returns that can beat the market. It involves higher than average costs and it stresses on taking advantage of market inefficiencies. It is implemented by the advices of analysts and managers who analyze and evaluate market for the presence of inefficiencies.
The active management approach of the portfolio management involves the following styles of the stock selection.
Top-down Approach: In this approach, managers observe the market as a whole and decide about the industries and sectors that are expected to perform well in the ongoing economic cycle. After the decision is made on the sectors, the specific stocks are selected on the basis of companies that are expected to perform well in that particular sector.
Bottom-up: In this approach, the market conditions and expected trends are ignored and the evaluations of the companies are based on the strength of their product pipeline, financial statements, or any other criteria. It stresses the fact that strong companies perform well irrespective of the prevailing market or economic conditions.
Passive Portfolio Management Strategy
Passive asset management relies on the fact that markets are efficient and it is not possible to beat the market returns regularly over time and best returns are obtained from the low cost investments kept for the long term.
The passive management approach of the portfolio management involves the following styles of the stock selection.
Efficient market theory: This theory relies on the fact that the information that affects the markets is immediately available and processed by all investors. Thus, such information is always considered in evaluation of the market prices. The portfolio managers who follows this theory, firmly believes that market averages cannot be beaten consistently.
Indexing: According to this theory, the index funds are used for taking the advantages of efficient market theory and for creating a portfolio that impersonate a specific index. The index funds can offer benefits over the actively managed funds because they have lower than average expense ratios and transaction costs.
Apart from Active and Passive Portfolio Management Strategies, there are three more kinds of portfolios including Patient Portfolio, Aggressive Portfolio and Conservative Portfolio.
Patient Portfolio: This type of portfolio involves making investments in well-known stocks. The investors buy and hold stocks for longer periods. In this portfolio, the majority of the stocks represent companies that have classic growth and those expected to generate higher earnings on a regular basis irrespective of financial conditions.
Aggressive Portfolio: This type of portfolio involves making investments in “expensive stocks” that provide good returns and big rewards along with carrying big risks. This portfolio is a collection of stocks of companies of different sizes that are rapidly growing and expected to generate rapid annual earnings growth over the next few years.
Conservative Portfolio: This type of portfolio involves the collection of stocks after carefully observing the market returns, earnings growth and consistent dividend history.

2:21 PM 06/06/2012 Buy MCX Nickel (June) at 904.50-904.70 for targeting 915-919 with SL below 896

1:46 PM 06/06/2012 BOOK PARTIAL PROFIT IN USDINR AT 55.5950, HOLD REST WITH SL AT COST

1:43 PM 06/06/2012 1ST TGT ACHVD IN COPPER

LME STOCK: COPPER +325, ALUMINIUM -13075, NICKEL -102, ZINC +2600, LEAD -2050

12:25 PM 06/06/2012 BUY CAIRN FUT ABOVE 318 FOR TARGET OF 322-326 STOP LOSS 315

12:21 PM 06/06/2012 BOOK PARTIAL PROFIT IN COPPER AT 410.5, HOLD REST WITH SL AT COST

12:12 PM 06/06/2012 BUY MCX COPPER JUNE AT 409.3 -409 SL BELOW 407 FOR TGTS 412.5-413.8

12:03 PM 06/06/2012 BUY BANKINDIA FUT ABOVE 336 FOR TARGET OF 340-344 STOP LOSS 332.8

(11:56 AM 06/06/2012) CRUDEOIL SELL ARND 4715-20 SL 4742 TGT 4698/4672 ; MCX

11:08 AM 06/06/2012 CLOSE TATASTEEL TRADE 405.4

11:05 AM 06/06/2012 SELL MCX NATURAL GAS JUNE AT 135.5-135.7 SL ABOVE 137.1 FOR TGTS 132.5-131

(10:30 AM 06/06/2012) NIFTY FUT SELL ARND 4930-4935 SL 4961 TGT 4906/4875 : NSE

10:23 AM 06/06/2012 BUY TATASTEEL FUT ABOVE 404 FOR TARGET OF 410-414 STOP LOSS 399.8

Tuesday, June 5, 2012

(3:28 PM 06/05/2012) BANK OF BARODA FUT. SELL CALL IS CONTINUE WITH SAME SL & TGTS

3:15 PM 06-05-2012 HOLD JUBLFOOD AND DR.REDDY TRADE WITH EXISTING LEVELS

(3:08 PM 06/05/2012) BANK OF BARODA FUT. SELL ARND 675 SL 678.80 TGT 672/665 : NSE

Moving Averages

Perhaps the simplest to understand and most widely used technical indicator is a moving average, which smoothes past data to illustrate existing trends or situations where a trend may be ready to begin or is about to reverse. A moving average helps you spot market direction over time rather than being caught up in short-term erratic market fluctuations. There are three main types of moving averages:

Simple. Each price point over the specified period of the moving average is given an equal weight. You just add the prices and divide by the number of prices to get an average. As each new price becomes available, the oldest price is dropped from the calculation.
Weighted. More weight is given to the latest price, which is regarded as more important than older prices. If you used a three-day weighted moving average, for example, the latest price might be multiplied by 3, yesterday's price by 2 and the oldest price three days ago by 1. The sum of these figures is divided by the sum of the weighting factors - 6 in this example. This makes the moving average more responsive to current price changes.
Exponential. An exponential moving average (EMA) is another form of a weighted moving average that gives more importance to the most recent prices. Instead of dropping off the oldest prices in the calculation, however, all past prices are factored into the current average. The current EMA is calculated by subtracting yesterday's EMA from today's price and then adding this result to yesterday's EMA to get today's EMA. An EMA generally produces a smoother line than other forms of moving averages, which can be an important factor in choppy market conditions.

(2:37 PM 06/05/2012) COPPER SELL CALL UPDATE: BOOK A PROFIT AT 407.50 OR TRAIL UR SL AT 410.95 FOR NEXT TGTS

2:12 PM 06/05/2012) NIFTY SELL CALL 2NDTGT 4830 ACHIEVED BOOK FULL PROFIT

(2:12 PM 06/05/2012) COPPER SELL ARND 408.50-409 SL 412 TGT 406.10/403.50 : MCX

(2:05 PM 06/05/2012) CRUDE SELL CALL TGTS 4688 ALMOST ACHIEVED ( MADE LOW 4690 AFTER OUR SELL CALL)

Moving Average Convergence-Divergence (MACD)

Introduction

Developed by Gerald Appel in the late seventies, the Moving Average Convergence-Divergence (MACD) indicator is one of the simplest and most effective momentum indicators available. The MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the best of both worlds: trend following and momentum. The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Because the MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels.
Note: MACD can be pronounced as either "MAC-DEE" or "M-A-C-D".

Calculation

MACD Line: (12-day EMA - 26-day EMA) 

Signal Line: 9-day EMA of MACD Line

MACD Histogram: MACD Line - Signal Line

(12:58 PM 06/05/2012) NIFTY SELL CALL TGT 4855 ACHIEVED

(1:22 PM 06/05/2012) ACC BUY CALL TGTS1 1135 ACHIEVED

(12:51 PM 06/05/2012) NIFTY SELL CALL UPDATE: BOOK A PROFIT AT 4859 OR TRAIL UR SL AT 4881 FOR FURTHER TGTS

If you like bank stocks then it belongs to you: Allahabad Bank

If you are fond of banking stocks and thinking to accumulate the SBI, ICICI or Axis on lower and attractive rates then here is another Gem for you to buy at very cheaper valuations. Yes, It is Allahabad Bank which is going to pick up in one or two trading sessions. It has been cracked down from 175 level when it had crossed below it after forming a triangle for downtrend. It has gone to deep downtrend in month of may. But it has now reached in bottom out phase and it is now ready to reverse for a bounce back. Technically it is showing consolidation in trend on ADX where we can see on charts that trend to be changed. RSI is still in oversold zone where it has ended forming lower highs and lower lows while forming a triangle on RSI if plot trendline on it. MACD is showing positive divergence while prices were making negative lines which is a good sign of reversal . For confirmation we can see the volume front where we can see a rounding bottom is forming which is also a sign of reversal . Today if we take some cues from f&O segment then we can clearly see that the stock is trading on premium in futures while most of the other stocks are on discount. So we strongly recommend to buy the stock at levels around 125-128 while placing a stoploss below 113.50 for target of 155-175 in 3-4 weeks.

(12:18 PM 06/05/2012) CRUDEOIL SELL ARND 4710-15 SL 4742 TGT 4688/4660 : MCX

12:04 PM 06-05-2012 BUY DRREDDY FUT ABOVE 1612 FOR TARGET OF 1632-1652 STOP LOSS 1595

(12:01 PM 06/05/2012) NIFTY FUT SELL ARND 4870-75 SL 4895.50 TGT 4855/4830: NSE

11:58 AM 06-05-2012 BOOK PARTIAL PROFIT IN WIPRO AT 401.3 AND MOVE SL TO COST

(11:52 AM 06/05/2012) ACC BUY CALL UPDATE: BOOK A PROFIT AT 1129.80 OR TRAIL UR SL AT 1123.90 FOR NEXT TGTS

11:46 AM 06-05-2012 BUY WIPRO FUT ABOVE 398 FOR TARGET OF 405-410 STOP LOSS 393.8

11:28 AM 06-05-2012 BUY EURINR JUNE AT 69.65 SL BELOW 69.43 FOR TGTS 69.8875-9575

11:27 AM 06-05-2012 BUY NCDEX SOYABEAN JUNE AT 3308-3302 SL BELOW 3280 FOR TGTS 3345-3360

(11:25 AM 06/05/2012) ACC FUT BUY ARND 1124-25 SL 1114.50 TGT 1135/1145 : NSE

Aban future is trading at discount of Rs. 11.90 to its cash. If holding in cash then sell and grab in futures @discount of 42.71% p.a or 3.56 % per month. Good opportunity for those who don,t want to take risk and get sure return

Aban future is trading at discount of Rs. 11.90 to its cash. If holding in cash then sell and grab in futures @discount of 42.71% p.a or 3.56 % per month. Good opportunity for those who don,t want to take risk and get sure return

9:59 AM 06-05-2012 BUY JUBLFOOD FUT ABOVE 1190 FOR TARGET OF 1205-1215 STOP LOSS 1178

Monday, June 4, 2012

3:08 PM 04/06/2012 CLOSE BOM DYING TRADE AT 452.5

Formula to calculate resistance and support levels

PIVOT POINTS for resistance and support of a particular stock:
Keep in mind that pivot points are short-term, over-night trend indicators, useful for only one day at a time. They need to be recalculated every day using the changing price movement.

When you are coming in with a bunch of calls, you need to study the historical data for each stock, determin the direction of the trend, it’s strength, buying interest, liquidity, historical supports and resistances (which the pivots R1 S1 etc do not povide), etc etc…For each of the above there is a combination of indicators that need to be studied, compared and analysed, entry and exit levels determined, and in a progressing trade, trailing stops need to be detemined etc etc etc…

Formula to calculate resistance and support levels.

P = (H + L + C) / 3
R1 = (P x 2) – L
R2 = P + (H – L)
S1 = (P x 2) – H
S2 = P – (H – L)

But for making calls for short, mid, long term trades, do not depend on the formula. Do an in depth study.

Interest Rates Risk & The Scenario in India

Interest Rate Risk – A risk is any variation from the expected return of an investment on the downside. An interest rate risk implies the risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relationship. Basically such a downside depends on interest rate variations. In general these changes do not affect securities directly and can be minimized by diversifying (investing in fixed-income securities with different durations) or hedging (e.g. through an interest rate swap).

Those who invest in stocks are not much bothered by the interest rates. However those who invest in Fixed Income (specifically bonds) are exposed to risk as the yield/price of the bond is highly correlated to the prevailing interest rates in the markets. Interest Rate has an inverse relation with the price of a bond. A person having a long position in a bond would benefit when rates go up. Hence for him the risk arises when the rates are expected to go up.

Friday, June 1, 2012

3:04 PM 06-01-2012 EXIT MCX COPPER AT CMP 416.30

(Fresh Call)2:45 PM 06-01-2012 BUY MCX COPPER JUNE AT 416.7 SL BELOW 415.7 FOR TGTS 418.7-419.5 : rmoneyguru.blogspot.com

(12:24 PM 06/01/2012) COPPER JUN SELL CALL UPDATE: BOOK A PARTIAL PROFIT AT 417.10 OR TRAIL UR SL AT 419.20 FOR NEXT TGTS