Online Share Trading Solution

HOW TO START?

1) In order to buy / sell a share, you need to first become a client of one of the stock market members who are commonly known as stock brokers.
2) Open Demat A/c
3) Open Trading A/c

MARKET MECHANISM

1) A stock market has many members who co ordinate for various activities in the process of placing orders, their execution and settlement etc. A person who desires to buy / sell shares in the stock market, can place his order through the broker either in the traditional manner or can place an online order himself through the terminal provided by the broker.

2) Two trading days are considered for settlement where Saturday, Sunday, Bank Holidays and trading holidays are not considered as working days for settlement. Hence, a trade done on Monday will get settled on Wednesday.

DO AND DON'TS

1) Always consult a professional. In order to avoid any mistakes in your investment decisions, you should always consult a professional to plan out your investments and to get qualified investment advice.

2) Keep yourself updated with latest market news If you are investing in equity, it is advised that you keep yourself updated about the latest market news as there are a lot of announcements that take place from day to day such as mergers, acquisition, dividends, Annual Meetings etc. This helps you to get a clue as to what is the effect of such news on your investments and what is the expected return from your investment.

3) Don't put blind faith in a stock tip from unofficial sources it is important to do some homework on the investment that you are planning to make. Don't just believe everything that is said about any stock tip from your friends or near n dear ones. If you come across any such tips, you should first verify it for its authenticity and then take your investment decision.

4) Don't put all your money in one sector or stock In equity investment, there are shares available for companies that cover almost every sector of the commercial sphere and thus provide you the opportunity to invest into a wide variety of sectors. Every sector or stock is affected by some or the other factors of the economy and as a result of it affect your investment in these stocks / sector.
About Author: MANSUKH investment & Trading services is an Online Trading Solution provider giving you ideas about latest stock market happenings, Online Share Trading, investment services, mutual funds and other offerings with advice to both fledgling investors and experienced day traders. For Best Stock Market updates visit their site http://moneysukh.com 




Always consult a stock market broker. In order to avoid any mistakes in your investment decisions, you should always consult a professional to plan out your investments and to get qualified investment advice.

WHAT IS STOCK MARKET?

Different business in India are having their expansion plans, all together they can't manage to have such big amount to use, so they are calling people to participate in their companies and get profit out of that in form of dividend, stock split, bonus share etc. Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor. The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing.


WHY COMPANIES ISSUE STOCK?

1. When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities.
2. It is popular because:
I. The company does not have to repay the money
II. Paying dividends is optional
* Dividends are distributions of earnings paid to stockholders


STOCK MARKET BASICS

1. A stock is a tradable security that a firm issues to certify that the stockholder owns a share of the firm.
2. A share represents an investor's ownership in a "share" of the profits, losses, and assets of a company. It is created when a business carves itself into pieces and sells them to investors in exchange for cash.
3. In order to buy / sell a share, you need to first become a client of one of the stock market members who are commonly known as stock brokers.


STOCK EXCHANGE IN INDIA
1. The Bombay Stock Exchange (BSE)
2. National Stock Exchange of India Ltd (NSE)

FACTORS AFFECTING STOCK MARKET
1. Inflation
2. GDP
3. Global Markets
4. Govt policies
5. Market trends
6. Financial statements
7. News

FACTORS AFFECTING STOCK PRICE
1. Financial statement
2. Order book
3. Management
4. Land bank
5. Future plans
6. Growth
7. Commodity prices





About Author: MANSUKH investment & Trading services is an Online Trading Solution provider giving you ideas about latest stock market happenings, Online Share Trading, investment services, mutual funds and other offerings with advice to both fledgling investors and experienced day traders. For Best Online Commodity Services visit their site http://moneysukh.com

SNAPSHOT
Indian stocks markets finally succeeded in salvaging a close in the positive territory, snapping the two week downtrend, as the enthralling close to 700 points rally in the last two trading session of the week for the Sensex helped it to overturn the massive losses incurred on the initial day of the week. The benchmark indices went on to re-capture the important psychological 5,450 and 18,200 levels and end the week with close to two percent gains amid encouraging global cues including a resolution over Greece debt trouble after it gained EU and IMF's approval of its latest five-year austerity plan and also after a decision by International Energy Agency to increase oil supplies. However, what followed in the last two sessions was healthy short covering rally as it seemed like investors keenly awaited for a catalyst to buy in India since they were of the belief that domestic markets have bottomed out and a lot of headwinds have been factored in. The BSE Sensex surged by 370.15 points or 2.07% to 18240.68 during the week ended June 24, 2011. The S&P CNX Nifty heaved by 104.85 points or 1.95% to 5471.25.

Food inflation numbers have ricocheted a week after showing some signs of moderation. According to the data released by Ministry of Commerce and Industry, the index for Food Articles group rose to 9.13 percent for the week-ended June 11, from 8.96 percent for the previous week. The Consumer Price Index (CPI) stood at 107 points in May 2011, higher by 7% as compared to the base of 100 in 2010 and marginally up by 0.1% from the month of April. Foreign Institutional Investors (FIIs) were net sellers in the equity segment in the week with gross purchases of Rs 10400.60 crore and gross sales of 11526.70 crore, leading to a net outflow of Rs 1126.10 crore.

 SNAPSHOT

Indian equity indices extended the downtrend for the second consecutive week as investors at large continued to avoid long positions amid an increasingly vulnerable global as well as domestic setup. The hefty position squaring in last three session of the week proved very costly for the benchmark indices as it plunged over two percent on week on week basis. Foreign institutional investors (FII) restlessly attempted to plough back their hot money from the domestic markets because of confluence of worrying economic trends like accelerating inflation, declining foreign investment and slower growth and domestic investment, that policy inertia is only making worse. The BSE Sensex lost 398.01 points or 2.18% to 17870.53 during the week ended June 17, 2011. The BSE Mid-cap index plunged by 83.49 points or 1.21% to 6814.79 and the Small-cap index declined by 113.97 points or 1.38% to 8174.49.The S&P CNX Nifty slipped by 119.40 points or 2.18% to 5366.40. On the NSE, Bank Nifty lost 116.00 points or 1.08% to 10598.25, CNX IT sank 296.35 points or 4.45% to 6357.10 while CNX mid-cap declined 70.90 points or
0.89% to 7921.15 and CNX Nifty Junior dropped 227.20 points or 2.01% to 11051.25.

The annual rate of inflation, based on monthly WPI, came much higher than the expectation at 9.06% (Provisional) for the month of May, 2011 (over May, 2010) as compared to 8.66% (Provisional) for the previous month and 10.48% during the corresponding month of the previous year. RBI furthered its aggressive stance against the rampant inflation and hiked repo rate and reverse repo rate by 25 basis points each to 7.50% and 6.50% respectively, in its mid-quarter policy review, which was in line with broader market expectations. 


     

Read More: Equity Research Weekly Report

SNAPSHOT

Despite concluding three out of the five trading session of the week in the negative zone, Indian benchmarks still negotiated a close in the green territory with gains of well over half a percent on the week on week basis. In their journey, the key indices also went on to break the two week downtrend but failed to hold on to the psychological 5,600 and 18,650 levels. Investors went through a hectic week as an assortment of reports popped through the period keeping investors in a dilemma and frontline indices in a sticky situation. Bullishness seemed to be returning to the markets which were evident from the fact that the frontline indices showed some resilience and did not capitulate despite an assortment of disappointing economic reports. To start with it was the GDP data released on Tuesday which showed that nation's economy grew by 7.8% in the fourth quarter ending March this year, mainly due to poor performance of the manufacturing sector. On Wednesday, the HSBC PMI figures based on a survey of around 500 companies were released which showed manufacturing activity in India in May slowed from a month earlier, yet output remained robust, reflecting the underlying strength in business conditions.

Furthermore an official data released by the Ministry of Commerce showed that India's six core industries grew by 5.2% in April 2011 as compared to 7.4% in the previous month and 7.5% in the same month of last year. Another data released by the commerce ministry showed that India's trade deficit in April narrowed to $8.98 billion from $11.03 billion in the same period a year earlier, however, the trade deficit rose (month on month) to $8.98 billion in April from $5.6 billion in March.

Read More: Equity Research Weekly Report

F & O HIGHLIGHTS
Nifty April 2011 futures closed at 5,877.00, at a premium of 2.50 over spot closing of 5,874.50, while Nifty May 2011 futures were at 5,902.00 at a premium of 27.50 points over spot closing. The near month April 2011 derivatives contract expires on Thursday, April 28, 2011. Nifty April futures saw an addition of 6.01% or 1.36 million (mn) units, taking the total outstanding open interest (OI) to 24.17 mn units.
From the most active underlying, SBI's April 2011 futures closed at a premium of 11.80 points at 2926.90 compared with spot closing of 2915.10. The number of contracts traded was 20,255.
Infosys April 2011 futures were at a premium of 3.40 point at 2943.40 compared with spot closing of 2940.00. The number of contracts traded was 19,950.
Sterlite Industries April 2011 futures were at a premium of 0.95 points at 184.80 compared with spot closing of 183.85. The number of contracts traded was 19,317.
Axis Bank April 2011 futures were at a premium of 4.40 points at 1382.00 compared with spot closing of 1377.60. The number of contracts traded was 20,321.
RIL April 2011 futures were at a premium of 3.00 points at 1012.00 compared with spot closing of 1009.00. The number of contracts traded was 27,240.

Read More about Derivative Strategy Report

Read more about Equity Research morning report.

To know more about Derivative Future Level morning report by Mansukh.

 


  



TREND LINE CONJECTURE:-

We have drawn trend line joining two significant bottom 3918 and 4786. According to trend line theory next levels of support could be around 5400. Any closing below this trend line may further dampens the current scenario and possibility of getting new lows near to 5200-5250 could be more justified. On the upper side any bounce back from 5400 may leap indices towards 5640-5650 where we might see some profit booking
Same in the Sensex , channel line drawn from the lows of 13219 and 15960 may provide crucial support around 17900-18000. Below this flood gates may open and we might see some drastic fall near to 16000 in a short span of time. On the flip side 20500 could be the key resistance level to watch.

MOVING AVERAGES AND THE CANDLE STICK PATTERN:-

The short term moving average is an indicator of the trend in the near future. The value for the short term moving average (20 DMA) is at 5470 and medium term moving average (50 DMA) is at 5740. Presently, the Nifty trading below20 , 50 and 2000 dma, which would be treated as bearish si signal coupled with oversold territory. Hence possibility of bounce back couldn’t be rule out at any stage though5640-5650 (200 dma) might be the key resistance zone.

FIBONACCI RETRACEMENT:-

Entire rally from the lows of 4786 to 6335 took 25 trading weeks without any substantial correction. If we applying Fibonacci theory and took retracement of this current rally, 50% and 80% retracement stood at 5555 and 5375 respectively. Any break down above this level could open the flood gates and possibility of losing another 100-200 pts should be on higher side. Moreover spot index created some gap on 14/02/211 of more than 30pts which has not been filled yet. Hence we are expecting this gap should be filled in the upcoming week however possibility of bounce back couldn’t be rule out at any stage.