Update for intraday calls for 30April

Pre-market calls for all-

Tv Today @ 127
Day high-129.95

Mercator Lines @96
Day high-105.8

REC@119
Day high-126.2

Garware Off @252
Day high-262

RPL@202
Day high-206.4

RNRL@126.5
Day high-128.5

=========================================================


Calls given to paid members-


BHEL@1891
Day high-1923

Sanra Soft.@53
Day high-55.8 (5% upper circuit)

Reliance ind.@2665
Day high-2675

Axis bank@948
Day high-950 (exit, no profit no loss)

Short Siemens@576
Day low-570

Century textile@856
Day high-912.5

Sasken@181
Day high-187

RPL@202
Day high-206.4


Njoyyyy hugeeeeeeeee profitttttttt,withouttttt stoplosssssssss!!!!!!!!!!!!!

====================================================================

For details or query call on-
09935466303

Intraday Calls for 30th Apr

Tv Today @ 127 target 129-131-134

Mercator Lines @ 96 taregt 98-100

REC @ 119 target 121-123

Garware Off @252 target 256 - 259

Look for RPL and RNRL also ..

Look at the Market trend before doing Intraday Trading .Avoid spike buying.

Update for intraday calls of 29April

Pre-market Intraday calls for all-

Nagarjuna fert@53
Day high-54

Chambal fert@73
Day high-76

SSI@163
Day high-169.6

RNRL@123
Day high-128.5

Unitech@294
Day high-321.7

=====================

Calls given to paid members-

ICICI Bank@896
Day high-925

REL@1436
Day high-1458

R-Power@403
Day high-409

Shashun chem.@62
Day high-64

chambal fert@73
Day high-76

ICSA@449
Day high-478.8

ACC@766
Day High-780

REC@117
Day high-120.7

SBI@1765
Day high-1807


njoyyyy hugeeee profitttt,without stoploss!!
=====================
For details contact-
09935466303

Intraday Calls for 29 Apr

Chambal Fert @73 target 75 - 77

Nagarjuna Fert @53 target 54.5 - 56

SSI(SOFTSOINT) @ 163 target 168 -171

Keep Eye on RNRL and Unitech also .....

Look at the market trend before investing , Keep booking profits ...

Updates of Delivery Calls

IDBI @ 104
Days High 107.9

Jet Airways @ 549.6
Days High 564.7

Kirloskar Ferro @47.2
Days High 49.4

Viceroy Hotel @79
Days High 83.5

Indian Bank @143
Days High 146

MTNL @112.6
Days High 116

Update for Intraday Calls 28th Apr

PreMarket Intraday Calls for all
TV Today @118
Days High 126

Nagarjuna Fert @ 51.5
Days High 53.9

Exide Ind @73.3
Days High 75.1

RNRL @123.4
Days High 126.7

Unitech @289.5
Days High 298

===========================================================
Calls Given To Paid Members

ICICI @ 916
Days High 960

Mundra Port @712
Days High 741

ICSA @436
Days High 465

Rel Comm @578
Days High 597.9

R-Power @406
Days High 414.4

Njoyyyyyyy Hugeeeeeee Proittttttttt
Without Stoplossssssssssssss...............

Delivery Stocks

IDBI
Jet Airways
Kirloskar Ferro
Viceroy Hotel
Indian Bank
MTNL
IFCI
Short Term Investor keep booking profit when stock is 5-10% up .Use spread buying.

Intraday Calls for 28th Apr

TV Today @118 target 119.5-121

Nagarjuna Fert @ 51.5 target 52.5-54

Exide Ind @73.3 target 75-76

Dont Miss RNRL and Unitech for intraday
Strictly look at the market trend before doing intraday trading. Avoid spike buying.

Update for Stocks of the week 21-25April

Profit in stocks suggested for on Sunday,for the week 21-25 April -

Allsec technologies@75.5
High-84.5

Videocon ind.@340
High-397.9

Vakrangee software@220
High-256.4

Stewards & Lloyds of india ltd.@161
High-173.9

Keep booking profits,as market is volatile.....
Njoyyyyyy hugeee profitt,widout stoploss!!!
================================================
For more details contact-
9935466303

Update for Intraday calls 25April

Pre-market intraday calls for all-

Gitanjaligems@268
Day high-292

Tulsi ex.@82
Day high-85.5

Cinemax@113.
Day high-113.9

IFCI@63.2
Day high-63.9
===================================================
Stocks scrolling on ticker-

RNRL@116

Day high-124.7

RPL@193

Day high-196.3

Peninsula land@106.5

Day high-109.8

GSS America@439

Day high-455.4

=====================================================

Calls given to paid members-

Buy EKC @328.5
Day high-345

Short sell Adlabs@709
Day low-680

Buy Nicholas piramal@341
Day high-357.8

Short sell REL below 1304
Day low-1287

Buy Ranbaxy@476
Day high-488

Short sell Sesa goa@3480
Day low-3450

Short sell Infosys@1676
Day low-1651

Buy Reliance cap. @1440
Day high-1472


Njoyyyyyyy hugeeeeeeee profittttttttt,withoutttt stoplosss!!!!!

Intraday calls for 25April

Pre-market Intraday call-

Gitanjaligems@268
tgt-271-73+

Tulsi ex.@82
tgt-84-87

Cinemax@113.2
tgt-115.5-116.5

IFCI@63.2
tgt-64.5-66

RNRL & RPL good for intraday as well as positional!!

Strictly look at the market trend before doing intraday trading!!

Try to avoid banking sector stocks for few days,instead go for telecom sector !!stocks!!

===============================================

Told in the morning before market opening...that go for telecom sector stocks...now look urself ,telecom sector zoomingggg.....

Exit from IFCI rate to rate....

Update for intraday calls of 24 April

Pre-market intrday calls-

Guj.NREcoke@167
Day high-174.9

Gitanjali gems@281
Day high-292

RPL@196.5
Day high-198.7

Arvind Mills@57
Day high-57.9

Again buy call of Arvind mill@53.8 high-55.9
Short call @ 55.9 low-54.4

========================================================
Mid-market intraday call-

Buy Bank of India @344
High-351.5

=======================================================

Calls given to paid members-

REL@1348
Day high-1365

Adlabs@727
Day high-738

IVRCL infra@421
Day high-434

Tatasteel@798
Day high-800

MRPL@106
Day high-109.95

NDTV@420
Day high-425.8

RIL@2589
High-2596

HDIL@732
High-736.95

Bank of India@344
Day high-351.5

Always remember one thing-
Less profit is better than loss!!!!

Profit in intraday calls in this double edged sword like market of today....

Njoyyyyyyyyy Profittttt,without stoploss!!!!

Intraday calls for 24April

Pre-market intraday calls-

Guj.NREcoke@167
tgt-170-173

Gitanjali gems@281
tgt-285-89

RPL@196.5
tgt-198।5-200+

Arvind Mills@57
tgt-59-60.5

Market may open positive today!!!!!

Look at the market trnd before doing intraday trading!!!!
====================================================
Exit from Arvind mills without profit!
Risky traders can wait and can average it at 54,as it will move for sure!!
Who hvnt bought yet..can buy it at 54 for upside tgt!
Those who have averaged or bought it@53.9 ,book profit now at 55.95!
Short sell it @55.9 for tgt-54.5!!
Tgt-achieved
Now all must be in profittttt.....
Call closed!!

==========================================

Mid-market intraday call -

Buy Bank of India @344

Update for "stocks to invest thread...."

Stocks given for medium/long term investment
http://rulersofthesharemkt.blogspot.com/2008/04/stocks-to-invest.html

All stocks giving hugee profits in very short term.....
Orchid chem,MRPL,Adlabs,RPL,Yes bank,SREI infra, REL,RNRL,Ispat,Nagarjjuna fertiliser,chambal fertiliser....etc.... zooooomedddddddd in 20 days.....

Njoyyyy hugeeee profittt,without stoploss!!!!

Update intraday calls for 23April

Pre-market intraday calls for all-

JP hydro@71
Day high-74.9

Idea cell.@109
Day high-112.5

RNRL@118.5
Day high-121.7

RPL@192
Day high-197.2

Cinemax@114
Day high-116.9

MTNL@113
Day high-113

===================================================

Intraday calls Given to paid members-

Unitech@281
Day high- 292

Indiabulls fin.@518
Day high- 538

adlabs@727
Day high-746

Mundra port@667
Day high-678

CESC@445
High-464

RIL@2565
High-2607

REL@1340
High-1358

Castrol@268
High-297

ONGC@1048
High-1061

Njoyyyyy Hugeeee Profittttttt,without stoploss!!!!!!!!!!!!!!
===================================
For details contact- 09935466303

Intraday calls for 23 April

Pre-Intraday call-

JP hydro@71
tgt-73-75

Idea cell.@109
tgt-112-114.5

RNRL@118.5
tgt-121-123

Cinemax@114
tgt-116.5-118

MTNL@113
tgt-115-117.5

Keep eyes on RNRL & RPL also for intraday!!

Look at the market trend before trading!!!!!!

=======================================================

Keep booking profit in all calls...dont wait for targets.....as market is volatile,n profit booking can be seen at higher levels!!!

====================================================

Mid-Market calls given to all paid members.....zoominggg like rocket!!!

Will b posted here after market hours!!

Update for Short/medium term delivery calls (11April) thread

Profits In Five days-

Kalpana ind.@98
High-125.5
28% gain in five days

RPL@178
High-196
10% gain in five days

First tgt of 190 achieved !!!!

Bajaj hindustan@208
High-246.8
18.7% gain in five days
First tgt achieved ,heading towards our second tgt of 250!!

Allsec@64
High-84.5
32% gain in five days
Heading towards our tgt 0f 90!!!!!

All calls rockinggggggggggggg.............huge profit in four days.....

Keep booking profits,as market is volatile.....

Njoyyyy Hugeeeee profittt without stoploss!!!!!!!!

Update intraday calls 22April

Pre-market intraday calls-

Cinemax@114.6
Day high-118

Radha Madhav cor.@70.5
Day high-73

Noida toll@52.5
Day high-53.4

Yes bank@173
Day high-179
=====================================
Mid-market intraday calls-

Short sell Bajaj hindustan @241
Day low-228

Short sell Balrampur chini@104
Day low-100

Buy Apollo tyre@46
Day high-47

=====================================================
Calls given to paid members-

Short sell Balrampur chini@104
Day low-100

Buy R-Com@552
Day high-565

Buy Idea cellular@105
Day high-112.5

Buy Axix Bank @904
Day high-924

Buy Praj Ind.@175
Day high-178

Buy Religare@381
day high-411.8

Buy Bharti airtel@856
Day high-868

Buy ICICI Bank@866
Day high-890

Njoyyyy profittt without stop loss!!!!!!!!!!!!

Intraday calls for 22April

Pre-market intraday calls-

Cinemax@114.6
Tgt-117-120

Radha Madhav cor.@70.5
tgt-72.5

Noida toll@52.5
tgt-54-56

Yes bank@173
tgt-176-178

Look at mkt the trend before doing intraday trading!!

Strictly Keep booking profits in all calls,as market is volatile!!!!

========================================================
Mid-market intraday call-

Short sell Bajaj hindustan @241
tgt-236-32

Short sell Balrampur chini@104

tgt-102-100

Buy Apollo tyre@46

tgt-47-48

Update for intraday calls 21 April

Update pre-market intraday calls-
TTML@34
Day high-35.8

Bongaigaon ref@56
Day high-59.4

Cinemax@106
Day high-118

Njoyyy hugeee profittt,widout stoploss!!!!
===========================================
Update Mid-market intraday calls-
Buy KPIT@110
Day high-117

Short sell Tech mahindra @910
Day low-875

Njoyyy hugeee profittt,widout stoploss!!!!
==============================================
Calls given to paid members-

Buy CESC@444
Day high-463

Buy Bharti Airtel@824
Day high-870

Buy DLF@651
Day high-675

Buy Biocon@470
Day high-518

Buy Rel. Cap.@1390
Day high-1425

Short sell Infosys@1651
Day low-1628

Short sell Orchid chem.@275
Day low-242

Strong stocks told- GATI,Sasken,Gremach infra,KS Oil.
Result- All stocks rockeddddddd!!!!


Njoyyyyyyy hugeee profitttt,without stoploss!!!!!!!!

Intraday calls for 21April

Pre-market Intraday calls-

TTML@34 tgt-35-36.5
Bongaigaon ref@56 tgt-58
Cinemax@106 tgt-107.5-109

Market may open negative,then buy these stocks at dips!
Market will be highly volatile today,so stay cautious!!

=================================================
Mid-market intraday call-
Buy KPIT @110 tgt-113-116
Short sell tech mahindra @910 tgt 900-890
FIIs are allowed to short sell from today....So they may start selling in a day or two....stay Cautious.... !!!!!

Stocks of the week 21-25April

Allsec technologies
cmp-75.5

Videocon ind.
cmp-340

Vakrangee software
cmp-220

Stewards & Lloyds of india ltd.
cmp-161

Avoid spike buying,always use spread buying!!

Update intraday calls of 17April

Pre-market intraday calls for all-

JK Tyre@125.8
Day high-131

GMR infra@150.5
Day high-155

BongaigaonRef.@53.3
Day high-55.6

IFCI@48.2
Day high-50.8

GTL Infra@48
Day high-50.5

================================================
Calls given to paid members

Lanco infra@436
Day high-486

SRF ltd.@116
Day high-132

ONGC@1018
Day high-1039

RIL@2644
Day high-2718

R-com@526
Day high-539

Suzlon@293
Day high-303

I-Flex@1254
Day high-1325

Short sell RIL@2655
Day low-2621

Njoyyyy hugeeee profittt without stoploss!!!!!!!!

Intraday calls for 17April

Pre-market intraday calls:

JK Tyre@125.8 tgt-127-129.5

GMR infra@150.5 tgt-153-155.5

Bongaigaon ref.@53.3 tgt-54.5-55.3

IFCI@48.2 tgt-49.5-50.5

GTL infra@48 tgt-49.5-50.5

Look at the market trend before doing intraday trading!!!!

============================================

Mid-mkt intraday call

Short RIL@2655 tgt-2645-38-30

Buy Suzlon@293 tgt-296-98

Those who want to earn more n get more profit call at +91-9935466303

Pre-market Intraday calls update 16April

RNRL@105
Day high-112.6

Mudra lifestyle@43
Day high-46

Bartronics@164
Day high-173.8

Essar oil@261
Day high-274.4

Elnet tech.@59
Day high-63.8

Huge profit in all calls!!
njoyyyy profittt!!!!

Intraday calls for 16 April

Pre-mkt intraday calls for all-

RNRL@105 tgt-107-109
Mudra Lifestyle@43 tgt-44.5-46
Bartronics@164 tgt- 167-71
Essar oil@261 tgt-265-67-71
Elnet tech.@59 tgt-61-64

MundraPort@643 tgt-652-60-64

Look at the market trend before trading!
========================================
Mid-mkt intraday
Buy DLF tgt-635-40-47

==================================

Other calls given to paid members-

SBI@1682 tgt-1697-1705

Satyam@465 tgt-475-80

Mundra Port@643 tgt-652-60-64

IFCI@47 tgt-49

RPL@191 tgt-195

For more profitable tips call +91-9935466303

Update for intraday calls of 15 April

Pre-mkt intraday-

RPL @ 183
Day high-191

Ankur Drugs @ 211
Day high-222

Bajaj Hindustan @208
Day high-218.5

Sasken @ 135
Day high-141

Bombay Paint @ 60
Day high-64
================================
Mid-mkt intraday-

Buy Alstom pro.@615
Day high-652

Buy Hind oil@141
Day high-150.5

Buy Infosys@1470
Day high-1525

Buy R-com@502
Day high-525

Buy DLF@613
Day high-626

Njoyyyy profittt without stoploss!!!!

Intraday Calls For 15th Apr

Pre-mkt intraday-
RPL @ 183 target 186-188
Ankur Drugs @ 211 target 215-218
Bajaj Hindustan @208 target 212-215
Sasken @ 135 target 139-143
Bombay Paint @ 60 target 64-67-69
Look at the market trend before investing.
================================
Mid-mkt intraday calls-
Buy Alstom pro.@615 tgt-630-50

Buy Hind oil@141 tgt-143-45

Dont miss RPL.....will zoom to touch 190.....

==========================

Calls given to paid members-

Buy Alstom pro.@615 tgt-630-50

Buy Infosys@1470 tgt-1482-90

Buy R-com@502 tgt-508-512

Buy DLF@613 tgt-624-33-37

For making hugee profits in share mkt ...contact us after mkt hours.

Mob.No.09935466303

Intraday update 11 April

RPL@176
day high-184

Media video@25.5
day high-27

RNRL@98
day high-101

Sasken@122
day high-143

Manaksia@79
day high-85

Short/medium term delivery calls (11April)

Kalpana Industries Ltd.@ 98
tgt-150

Allsec technologies ltd.@64
tgt-90

RPL@178
tgt-190-200

Bajaj hindustan@208
tgt- 225-250

Always use spread buying, and avoid spike buying!!!!!

Intraday Calls For 11 Apr

RPL @176 target 178-180
Media Vedio @ 25.5 target 27
RNRL @ 98 target 100-101
Sasken @122 target 124-126
Manaksia @ 79 target 81


REL@1254 tgt-1270-85
Rajesh expo.@92 tgt-93-95
Mundra port@605 tgt-620-25

Tata power@1228 tgt-1248

Banking sector looking weak!!!

Intraday update-

R-power @362.5->368
JP Hydro @58.7->60.6
KS oils @71->74
Indowind @82.4->83.5
S kumar @101->103.5

Intraday Calls for 10 Apr

JP Hydro
KSOil
Indowind
R-Power
SKumar Nation

Track these stocks for intraday today , and trade according to market trend.

Intraday update-

R-Power @351-->364

Yes Bank @162 --> 169

Pyramid Saimira @310 --> 326

Essar Oil @227 --> 230

JP Ass @221 --> 225

Njoy huge profit!

Intraday/Delivery calls On mobile through SMS

To get all the calls on your mobile,through SMS .....leave ur Name,place n mobile no. here (in comment column)..

Intraday Calls For 9 Apr

Yes Bank
R-Power
SKumar
Pyramid Saimira
Kolte Patil
Market is Highly volatile , If it opens positive buy on opening bell , If it opens weak then buy on intra day dips . Keep booking small profits to avoid losses.




Short Orchid chem.@242 tgt-215
Short Rel.Cap.@1236 tgt-1205

Intraday Calls for 8 Apr

RNRL 96.8 target 98-100
IFCI 43.2 target 44.5-45.5
Gujrat State Petro 60.8 target 64
Look At the Market Trend Before Investing

Intraday

RNRL @95 tgt-97 short below 96 for tgt-94-92

Jindal photo@145 tgt-148

JP Ass.@220 tgt-222-24

Royal orchid hotel@94 tgt-96
Look at the market trend before trading!!


Buy orchid chem.@180 tgt-sharp upside movement
Buy Rel.Cap@1130 tgt-1140-50
Buy REL@1160 tgt-1174-84

Buying expected in banking sector..

Very Short term calls (6 April)

RPL@167
Decan gold Mine@42
SREI infra@127

Buy these stocks for gain in short term!!

Market news

Market regulator SEBI on Friday banned Bellary Steels and Alloys along with three other entities and their directors from accessing capital markets for five years in a case involving issuance of duplicate shares.
The other entities which have been banned include SN Finance, Kodiganti Finance and Panchloha Hotel.While issuing the order SEBI also directed Bellary Steels to cancel the duplicate shares lying in the demat account of Panchloha Hotel and take "appropriate steps... to recognize the valid shares pledged with the Karnataka State Financial Corporation (KSFC) in the books of the company/STA (share transfer agent)/depositories".SEBI passed the order after investigating a complaint by KSFC in January 2006 that Bellary Steel has issued duplicate shares with the same distinctive numbers "with the malafide intention to cheat KSFC".The regulator in its interim order on February 1, 2006 had directed BSAL not to issue any more shares or alter the share capital till further directions

Investment

Investment in any sector,must be done with atleast 12 months time frame.

One can also invest 10% of the investment money in penny stocks like-
Krishna lifestyle
Harig Crankshaft
Facor alloys
Nila housing
Syschem india.

Investment strategy

Invest
50% of your money in large cap. stocks
40% of your money in small/midcap stocks
10% of your money in penny stocks
=========================================================
The following rules/points can help you in becoming a successful investor in the share market-
1. Manage greed/fear: This is an important point, which every investor must keep in mind owing to its great influencing ability in equity investment decisions. This point simply means that in a bull run - control the greed factor, which could entice you, the investor, to compromise with your investment principles.
Similarly, in a vice-versa scenario (bear market), investors must control their fear when stock markets turn unfavourable and stock prices collapse. Panic selling would serve no purpose and if the company has strong fundamentals, the stock is more than likely to bounce back.

2. Avoid timing the market: This is one factor, which many experts/investors claim to have understood but are more often wrong than right. We believe that it is rather impossible to time the market on a day-to-day basis and by adopting such an approach, an investor would most probably be at the losers' end at the end of the day.In fact, investors should take advantage of the huge volatility that is witnessed in the markets time and again.

3. Avoid actions based on rumours: Rumours are a part and parcel of stock markets, which do influence investor sentiments to some extent. However, investing on the basis of this could prove to be detrimental to an investors' portfolio, as these largely originate from sources with vested interests, which more often than not, turn out to be false. This then leads to carnage in the related stock(s) leaving retail investors in the lurch.

4. Avoid emotional averaging: It is very much possible that the company you have invested in fails to perform as per your expectations. This consequently gets reflected on the stock price.However, in such a scenario, it would not be wise to continue to hold onto the stock/buy more at lower levels on the back of expectations that the company's performance may improve for the better and the stock would provide an opportunity to exit at higher levels.Here it is advisable to switch to some other stock, which has promising prospects.

5.Avoid over-leveraging: This behaviour is typical in times of a bullrun when investors invest more than what they can manage with the hope of making smart returns on the borrowed money. Though this move may sound intelligent, it is smart only till the time markets display a unidirectional move (i.e. northwards).However, things take a scary turn when the markets reverse direction or move sideways for a long time. This is because it leads to additional margin calls by the lender, which might force the investor to book losses in order to meet the margin requirements.In a graver situation, a stock market fall could severely distort the asset allocation scenario of the investor putting his other finances at risk.

6.Keep Margin of Safety: If a portfolio of stocks is selected with adequate margin of safety, the chances of losses over the long term are minimised.

7.Follow research: The upswing in the stock markets attracts many retail investors into investing into equities. However, picking fundamentally strong stocks is not an easy task.In fact, it is even more difficult to identify a stock in a bullish market, when much of the positives are already factored into the stock price, making them an expensive buy.It is very important to understand here that owning a stock is in effect, owning a part of the company. Hence, a detailed and thorough research of the financial and business prospects of the company is a must.Given the fact that on most occasions, research is influenced by vested interests, the need of the hour is unbiased research. Information is power and investors need to understand that unless impartially represented (in the form of research) it could be misleading and detrimental in the long run.

8.Invest for the long-term: Short-term stock price movements are affected by various factors including rumours, sentiments, market perception, liquidity, etc, however, in the long-term, stock price tends to align themselves with its fundamentals.

Intraday Calls 4April

Pre-market intraday-

Hind oil@121.5 tgt-123-125
Corporation bank@291 tgt-295-97
Tulsi@92 tgt-95-98

Intraday

RNRL @99 tgt-102
RajTV@134Tgt 138-142
HindOil@119Tgt 123-126
FIEM Ind@78Tgt 80-82

Look at mkt trend first,before doing trading in intraday!

Intraday

Dish TV@50 tgt-52-53

RPL@167 tgt-170-72-74

RNRL@101 tgt-104-06

Adlabs@637 tgt-650-60

Welspun guj.@373 tgt-380-98

Indiabulls@412 tgt-420-28-43

Intraday

Indo Borax@64.25 tgt-66-68

FIEM ind@68 tgt-71-73

Pfizer ltd@686.3 tgt-692-96

Teledata@23 tgt-24.5-25.5

Stocks to invest for medium/long term

One can go for these stocks-

1-Banking: Syndicate Bank, YES Bank,Dena bank ,AXIS bank

2-Infrastructure : SREI Infra ,GMR Infra,GTL infra

3-Metal: Ispat ,SAIL, JSW Steel

4-Oil n Gas : KS oils,RNRL

5-Pharma: Orchid chemicals,Torrent pharma,Lupin

6 -IT : TCS, Satyam comp. ,Subex

7-Fertilisers: Nagarjuna fertiliser ,Chambal fertiliser ,SRF

8 -Aviation: Air Deccan ,Spice Jet,Jet airways

9-Sugar : Renuka sugar ,Mawana sugar,Dharani sugar

10-Petroleum: RPL , MRPL, Petronet

11 -Media: Zee tele.,Raj TV ,TV

12-Power : REL , NTPC ,Torrent power

What is F&O?

What are Derivatives?
A derivative is a financial instrument whose value depends on the values of other underlying variables. As the name suggests it derives its value from an underlying asset. For Ex-a derivative, may be created for a share, or any material object. The most common underlying assets include stocks, bonds, commodities etc.Let us try and understand a Derivatives contract with an example:Amit buys a futures contract in the scrip "Ram Computers". He will make a profit of Rs.500 if the price of Ram Computers rises by Rs 500. If the price remains unchanged Anil will receive nothing. If the stock price of Ram Computers falls by Rs 800 he will lose Rs 800.As we can see, the above contract depends upon the price of the Ram Computers scrip, which is the underlying security. Similarly, futures trading can be done on the indices also. Nifty futures is a very commonly traded derivatives contract in the stock markets. The underlying security in the case of a Nifty Futures contract would be the Index-Nifty.

What are the different types of Derivatives?
Derivatives are basically classified into the following:Futures /ForwardsOptionsSwapsWhat are Futures?A futures contract is a type of derivative instrument, or financial contract where two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price.
The example stated below will simplify the concept:
Case1:Ram wants to buy a Laptop, which costs Rs 50,000 but owing to cash shortage at the moment, he decides to buy it at a later period say 2 months from today.However,he feels that after 2 months the prices of Lap tops may increase due to increase in input/Manufacturing costs .To be on the safer side, Ram enters into a contract with the Laptop Manufacturer stating that 2 months from now he will buy the Laptop for Rs 50,000. In other words he is being cautious and agrees to buy the Laptop at today's price 2 months from now.The forward contract thus entered into will be settled at maturity. The manufacturer will deliver the asset to Ravi at the end of two months and Ravi in turn will pay cash delivery.Thus a forward contract is the simplest mode of a derivative transaction. It is an agreement to buy or sell a specific quantity of an asset at a certain future time for a specified price. No cash is exchanged when the contract is entered into.

What are Index Futures?
As Stated above, Futures are derivatives where two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price. Index futures are futures contracts where the underlying is a stock index (Nifty or Sensex) and helps a trader to take a view on the market as a whole.

What is meant by Lot size?
Lot size refers to the quantity in which an investor in the markets can trade in a derivative of a particular scrip.For Ex-Nifty Futures have a lot size of 100 or multiples of 100.Hence if a person were to buy 1 lot of Nifty Futures , the value would be 100*Nifty Index Value at that point of time.Similarly lots of other scrips such as Infosys, reliance etc can be bought and each may have a different lot size. NSE has fixed the minimum value as two lakhs for an Futures and Options contract. Lot sizes are fixed accordingly which will be the minimum shares on which a trader can hold positions.

What is meant by expiry period in Futures?
Each contract entered into has an expiry period. This refers to the period within which the futures contract must be fulfilled. Futures contracts may have durations of 1 month,2 months or at the most 3 months. Each contract expires on the last Thursday of the expiry month and simultaneously a new contract is introduced for trading after expiry of a contract.

What are options?
Before you begin options trading it is critical to have a clear idea of what you hope to accomplish. Only then will you be able to narrow down on an options trading strategy. Let us first understand the concept of options.An option is part of a class of securities called derivatives.The concept of options can be explained with this example. For instance, when you are planning to buy some property you might have placed a nonrefundable deposit to hold it for a short time while you evaluate other options. That is an example of a type of option.Similarly, you have probably heard about Bollywood buying an option on a novel. In 'optioning the novel,' the director has bought the right to make the novel into a movie before a specified date. In both cases, with the house and the script, somebody put down some money for the right to buy a product at a specific price before a specific date.Buying a stock option is quite similar. Options are contracts that give the holder the right to buy or sell a fixed amount of a certain stock at a specified price within a specified time. A put option gives the holder the right to sell the security, a call option gives the right to buy the security. However, this type of contract gives the holder the right, but not the obligation to trade stock at a specific price before a specific date.Several individual investors find options useful tools because they can be used either as:
A) A type of leverage or
B) A type of insurance.
Trading in options lets you benefit from a change in the price of the share without having to pay the full price of the share. They provide you with limited control over the shares of a stock with substantially less capital than would be required to buy the shares outright.When used as insurance, options can partially protect you from the specific security's price fluctuations by granting you the right to buy or sell shares at a fixed price for a limited amount of time.Options are inherently risky investment vehicles and are suitable only for experienced and knowledgeable investors who are prepared to closely monitor market conditions and are financially prepared to assume potentially substantial losses.

What are the different types of Options? How can Options be used as a strategic measure to make profits/reduce losses?
Options may be classified into the following types:
a) Call Option
b) Put Option
As mentioned before, there are two types of options, calls and puts. A call option gives the holder the right to buy the underlying stock at the strike price anytime before the expiration date. Generally Call options increase in value as the value of the underlying instrument increases.By contrast, the put option gives the holder the right to sell shares of the underlying stock at the strike price on or before the expiry date. The put option gains in value as the value of the underlying instrument decreases. A put option is one where one can insure a stock against subsequent price fall. If the value of your stocks goes down, you can exercise your put option and sell it at the price level decided upon earlier. If in case the stock price moves higher, all you lose is just the premium amount that was paid.Note that in newspaper and online quotes you will see calls abbreviated as C and puts abbreviated as P.
The examples stated below will explain the use of Put options clearly:
Case 1:Ravi purchases 1 lot of TCS MAY 3000 Put and pays a premium of 250 This contract allows Ravi to sell 100 shares of TCS at Rs 3000 per share at any time between the current date and the end of May.Inorder to avail this privilege, all Ravi has to do is pay a premium of Rs 25,000 (Rs 250 a share for 100 shares).The buyer of a put has purchased a right to sell. The owner of a put option has the right to sell.
Case 2:If you are of the opinion that a particular stock say "Allsec Technologies" is currently overpriced in the month of February and hence expect that there will be price corrections in the future. However you don't want to take a chance , just in case the prices rise. So here your best option would be to take a Put option on the stock.Lets assume the quotes for the stock are as under:Spot Rs 1040May Put at 1050 Rs 10May Put at 1070 Rs 30So you purchase 1000 "Allsec Technologies" Put at strike price 1070 and Put price of Rs 30/-. You pay Rs 30,000/- as Put premium.Your position in two different scenarios have been discussed below:1. May Spot price of Allsec Technologies = 10202. May Spot price of Allsec Technologies = 1080In the first situation you have the right to sell 1000 "Allsec Technologies" shares at Rs 1,070/- the price of which is Rs 1020/-. By exercising the option you earn Rs (1070-1020) = Rs 50 per Put, which amounts to Rs 50,000/-. Your net income in this case is Rs (50000-30000) = Rs 20,000.In the second price situation, the price is more in the spot market, so you will not sell at a lower price by exercising the Put. You will have to allow the Put option to expire unexercised. In the process you only lose the premium paid which is Rs 30,000.

what is open interest?
The total number of option contracts and/or futures contracts that are not closed or delivered on a particular day and hence remain to be exercised, expired or fulfilled through delivery is called open interest.

What are Index Futures?
As Stated above, Futures are derivatives where two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price. Index futures are futures contracts where the underlying is a stock Index (Nifty or Sensex) and helps a trader to take a view on the market as a whole.

What is meant by the terms Option Premium, strike price and spot price?
The price that a person pays for a call option/Put Option is called the Option Premium. It secures the right to buy/sell that particular stock at a specified price called the strike price. In other words the strike price is the specified price at which the holder of a stock option may purchase the stock. If you decide not to use the option to buy the stock, and you are not obligated to, your only cost is the option premium. Premium of an option = Option's intrinsic value + Options time value The stated price per share for which underlying stock may be purchased (for a call) or sold (for a put) by the option holder upon exercise of the option contract is called the Strike price. Spot Price is the current price at which a particular commodity can be bought or sold at a specified time and place.

What is meant by settlement price?
The last price paid for a contract on any trading day. Settlement prices are used to determine open trade equity, margin calls and invoice prices for deliveries.

How does one determine the price of an option?
A variety of factors determine the price of an option.The behavior of the underlying stock considerably affects the value of an option. Investors have different opinions about how a particular stock will behave in the future and hence may disagree about the value of any given option.In addition, the value of an option decreases as its expiration date approaches. Thus, its value is also highly dependent on the amount of time left before the option expires.
Intrinsic & Time Value:
An options price is composed of its intrinsic value and time value.

What a particular option contract is worth to a buyer or seller is measured by how likely it is to meet their expectations.In the language of options, that's determined by whether or not the option is, or is likely to be, in the money or out-of-the-money at expiration. Intrinsic value is how far an option is 'in-the-money.' Thus, the phrase is an adjective used to describe an option with an intrinsic value. A call option is in- the-money if the spot price is above the strike price. A put option is in the money if the spot price is below the strike price.It is calculated by subtracting the options strike price from the spot price. An out-of-the-money option has an intrinsic value of zero.For example if XYZ is trading at Rs 58 and the June 55 call is trading at Rs 4, to calculate the intrinsic value subtract Rs 55 from 58, leaving you with Rs 3 of intrinsic value. The remaining Rs 1 is known as extrinsic or time value.Time value is the amount over intrinsic value that a buyer pays for the option. While buying time value, an options purchaser assumes that the option will increase in value before it expires. As the option nears expiration, its time value starts decreasing toward zero.
Theoretical Value:
Theoretical value is the objective value of an option. It shows how much time-value is left in an option. The most commonly used formula to calculate the theoretical value of an option is known as the Black-Scholes model.This model considers the price of the stock, the options strike price, the time remaining before expiration, the volatility of the underlying stock, the stock's dividends and the current interest rate while arriving at the theoretical value of the option.Although an option may trade for more or less than its theoretical value, the market views the theoretical value as the objective standard of an option's value. This makes the price of all options tilt toward their theoretical value over time.
The Components of Theoretical Value-
Volatility:
The volatility of the underlying stock is one of the key factors in determining the value of an option. Often, the options price increases as the volatility of the stock increases. The difficulty in predicting the behavior of a volatile stock permits the option seller to command a higher price for the additional risk.There are two types of volatility, historical and implied. As the term suggests, historical volatility is a measurement of the stocks movement based on its past behavior.By contrast, implied volatility is calculated using option prices. It is a measurement of the stocks movement as implied by how the market is currently valuing options.
Dividends:
As an owner of a call option you can always exercise your right to the stock and receive any dividend it might pay.
Interest Rate:
If you buy an option rather than a stock, you invest less money upfront.
Days Until Expiration:
An option, being a wasted asset; wastes a little as each day lapses. Thus its value is calculated in accordance to the amount of days left in its life.

What Is Hedging?

The best way to understand hedging is to think of it as insurance. When people decide to hedge, they are insuring themselves against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced. So, hedging occurs almost everywhere, and we see it everyday.

In other words, investors hedge one investment by making another. Technically, to hedge you would invest in two securities with negative correlations. Of course, nothing in this world is free, so you still have to pay for this type of insurance in one form or another. Although some of us may fantasize about a world where profit potentials are limitless but also risk free, hedging can't help us escape the hard reality of the risk-return tradeoff.A reduction in risk will always mean a reduction in potential profits. So, hedging, for the most part, is a technique not by which you will make money but by which you can reduce potential loss.

Types of Trading

Short selling:
An investor sells short when he anticipates that the price of the shorted stock will fall from the existing price. He borrows a share and sells it. As the share price dips, he buys the same share at a lower price and returns it back, while pocketing a profit in the bargain. An adage that describes short selling is ("selling high and buying low'.) Short selling(Shorting) is an effective tool for traders as it allows us to profit from declining stock and index prices.A definition of "Short Selling" short implies establishing a market position by selling a security one does not own, in anticipation that the price of the security will fall.For eg. Trader anticipates stock ABC will declineTrader enters order to SELL 2000 shares of XYZ at market price and later buys the 2000 shares of XYZ at a much-reduced price. The difference in the prices of the selling and buying is his profit. However if the share prices increase after he has sold at a reduced price earlier, then he ends up with a loss. Hence Shortselling is something that is speculatory to a certain extent and is done in anticipation of quick profits.


Insider Trading:
In your dealings with the stock world, you will often come across the term 'insider trading'. In simple words, the meaning of insider trading is 'the trading of shares based on knowledge not available to the rest of the world.Insider trading has 2 connotations.Corporate personnel of a company buying and selling stock in their own company. When corporate insiders trade in their own securities, they must report their trades to the exchange. Illegal insider trading refers to buying or selling a security after receiving 'tips' of confidential securities information. Thus it is considered as a breach of confidence while in possession of non-public information about the company.Examples of insider trading·Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;·Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;·Government employees who learned of such information because of their employment by the government; and·Other persons who misappropriated, and took advantage of, confidential information from their employers.


Margin trading:
Margin trading is trading with borrowed funds/securities. It is almost like buying securities on credit.Margin trading can lead to greater returns, but can also be very risky. While it lets you actively seize market opportunities it also subjects you to a number of unique risks such as interest payments charged for the borrowed money.

Types of stocks

SMALL-CAP STOCKS:
The stocks of small companies that have the potential to grow rapidly are classified as small-cap stocks. These stocks are the best option for an investor who wishes to generate significant gains in the long run; as long he does not require current dividends and can withstand price volatility. Generally companies that have a market Capitalization in the range of upto 250 Corores are small cap stocks.As many of these companies are relatively new, it is difficult to predict how they will perform in the market. Being small enterprises, growth spurts dramatically affect their values and revenues, sending prices soaring.On the other hand, the stocks of these companies tend to be volatile and may decline dramatically.Most Initial Public Offerings are for small-cap companies, although these days large companies do tend to source the capital markets for expansion plans. Aggressive mutual funds are also enthusiastic about adding small-cap stocks in their portfolios. Because they have the advantage of being highly growth oriented, small-cap stocks can forego paying dividends to investors, which enables the profits earned to be reinvested for future growth.

MID-CAP STOCKS:
Mid-cap stocks are typically stocks of medium-sized companies. These are stocks of well-known companies, recognized as seasoned players in the market. They offer you the twin advantages of acquiring stocks with good growth potential as well as the stability of a larger company. Generally companies that have a market Capitalization in the range of 250-4000 crores are mid cap stocks.Mid-cap stocks also include baby blue chips; companies that show steady growth backed by a good track record. They are like blue-chip stocks (which are large-cap stocks) but lack their size. These stocks tend to grow well over the long term.

LARGE-CAP STOCKS:
Stocks of the largest companies (many being blue chip firms) in the market such as Tata, Reliance, ICICI are classified as large-cap stocks. Being established enterprises, they have at their disposal large reserves of cash to exploit new business opportunities.The sheer volume of large-cap stocks does not let them grow as rapidly as smaller capitalized companies and the smaller stocks tend to outperform them over time. Investors, however gain the advantages of reaping relatively higher dividends compared to small- and mid-cap stocks while also ensuring the long-term preservation of their capital.

Sensex calculation methodology

Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.The base period of Sensex is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of Sensex involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor.The Divisor is the only link to the original base period value of the Sensex. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate Sensex every 15 seconds and disseminated in real time.


Understanding Free-float Methodology-
Free-float Methodology refers to an index construction methodology that takes into consideration only the free-float market capitalisation of a company for the purpose of index calculation and assigning weight to stocks in Index. Free-float market capitalization is defined as that proportion of total shares issued by the company that are readily available for trading in the market.It generally excludes promoters' holding, government holding, strategic holding and other locked-in shares that will not come to the market for trading in the normal course. In other words, the market capitalization of each company in a Free-float index is reduced to the extent of its readily available shares in the market.In India, BSE pioneered the concept of Free-float by launching BSE TECk in July 2001 and Bankex in June 2003. While BSE TECk Index is a TMT benchmark, Bankex is positioned as a benchmark for the banking sector stocks. Sensex becomes the third index in India to be based on the globally accepted Free-float Methodology.

What is share market?

The stock market is a reliable indicator of the actual value of companies which issue stock. Values of stocks are based on verifiable financial data such as sales figures, assets and growth. This reliability makes the stock market a good choice for long term investing – well-run companies should continue to grow and provide dividends for their stockholders.The stock market also provides opportunities for short-term investors. Market skittishness can cause prices to fluctuate quite rapidly and investor psychology can cause prices to fall or rise – even if there is no financial basis for these variations.How does this happen? News reports, government announcements about the economy, and even rumors can cause investors to become nervous or to suspect that a company will increase in value.When the price starts to fall or rise, other investors will jump on the bandwagon, causing an even faster acceleration in price. Eventually the market will correct itself, but for savvy short-term investors who watch the market closely, these price changes can offer opportunities for profitable trading.


Sensex Stocks-
ACC, Ambuja Cements, Bajaj Auto, BHEL, Bharti Airtel , Cipla, DLF, Grasim Industries, HDFC , HDFC Bank, Hindalco Industries , Hindustan Lever , ICICI Bank , Infosys, ITC, Larsen & Toubro, Mahindra & Mahindra, Maruti Udyog , NTPC, ONGC , Ranbaxy Laboratories, Reliance Communications , Reliance Energy, Reliance Industries , Satyam Computer Services , State Bank of India, Tata Consultancy Services , Tata Motors , Tata Steel , and Wipro .