Showing posts with label equity trading. Show all posts
Showing posts with label equity trading. Show all posts

Derivative Strategy On Future And Options Daily Report By Mansukh 21st-April-2011

Nifty Sentiment Indicators
F & O HIGHLIGHTS
Nifty April 2011 futures closed at 5,874.00, at a premium of 22.35 over spot closing of 5,851.65, while Nifty May 2011 futures were at 5,894.60 at a premium of 42.95 points over spot closing. The near month April 2011 derivatives contract expires on Thursday, April 28, 2011. Nifty April futures saw an addition of 6.29% or 1.52 million (mn) units, taking the total outstanding open interest (OI) to 25.84 mn units.

From the most active underlying, SBI's April 2011 futures closed at a premium of 12.90 points at 2808.50 compared with spot closing of 2795.60. The number of contracts traded was 32,837.

Infosys April 2011 futures were at a premium of 10.50 points at 2913.50 compared with spot closing of 2903.00. The number of contracts traded was 23,141.

Tata Motors April 2011 futures were at a discount of 4.85 points at 1245.15 compared with spot closing of 1250.00. The number of contracts traded was 21,332.

Tata Steel April 2011 futures were at a premium of 2.30 points at 628.80 compared with spot closing of 626.50. The number of contracts traded was 18,683.

TCS April 2011 futures were at a premium of 3.20 points at 1224.95 compared with spot closing of 1221.75. The number of contracts traded was 18,566. .
Derivative Strategy

Nifty Option Open Interest Distribution
Nifty April 5900 call shed 5.69 lakh shares in OI; down 7.79% and 6000 call shed 4.30 lakh shares in OI, down 4.63%. On the put side nifty April 5800 put added 21.33 lakh shares in OI, up 43.39% and 5700 put added 7.97 lakh in OI, up 12.88%. The put-call ratio of stock option decreased from 0.36to 0.34 while put-call ratio of index option decreased from 0.94 to 0.93. On the whole the put call ratio was at 0.89.

NIFTY STRATEGY
The nifty future is likely to trade in the range of 5620-5930 level in short term as the OI is added. The trading strategy would be to create long positions if the nifty takes support around 5800 levels for the target of 5850 and 5900. On the other hand, one can also create short positions if the nifty resists around 5930 levels.

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Attention all Equity Trading Enthusiasts: Stop Dreaming-Get Real!!!

I can't understand that why people are always fantazing about doubling their hard earned money through online share trading in just two or three months. Without bothering about the credentials of a company, most small investors follow a herd mentality and invest blindly thereby adding to asset bubbles. Some people decide to invest in the stocks of a company just because they get to hear from some source that its stock price has doubled in the last two years. Don't play your hard earned money in a gamble like this. NIFTY & SENSEX are actually one of the biggest playgrounds of international speculation in the country (Although it's official). Every day, many people find their luck changing here. Some earn big and some loose even bigger. Indian stock market provides an excellent opportunity to those investors, who are ready to put time, money and energy in their investments. 

More interestingly, if you search Q&A on NIFTY & SENSEX over Google , you will find thousands of results for it. The thing which you will find common in most of the question is this ‘ Hi, I am pretty much interested in online share trading and wants to make huge money in it. Kindly tell me some scheme [Rather say it a shortcut] where I can make great amount of money quickly'. Maximum number of queries regarding online share trading display this type of tonality, which seems over optimistic. And they ask these type of questions on such public platforms where a lot of people answer as if they are the relatives of Warren Buffet. Being optimistic is not bad, but not having the patience to hold stocks for the long term is something which hurts a great majority of investors. 

NIFTY & SENSEX both require different attributes and investment strategies. No one must ever think in their wildest of dreams that their investment will double in a month or two (Okay! Until and unless something really big happens). It is always advisable for investors (Whether, novice or an expert) to direct their queries to market experts. It's not that they are far better than everyone but yes they are actually better than those, who don't have a genuine understanding of the market. Many people ask about investment schemes for reaping incredibly high returns in a short span of time through online share trading. All the media hype is just hog wash. There are no such schemes which can offer you increase in investments in just a month or two. 

There is an old saying about equity trading that ‘only those people will make money here who have the patience of seeing their money sinking and then again floating'. The idea is that one has to wait for a considerable time say at least one year for seeing the performance of their investments and to analyze the rate of returns. It is also advisable to invest the money in different set of investment options because it's very rarely happens that all options rise or crash simultaneously. Investing in different instruments not only diversifies the collective risk but it also helps in earning decent amount of money. 

So the main mantras for successful equity trading are as follows: 

1. Never dream about getting your money doubled in just one shot.
2. 3 things: money, efforts and patience will help you in achieving all you want.
3. Neither be over-confident, nor be over pessimistic.
4. Invest in diversified portfolio to mitigate the risk of any sudden slide in the market.
5. Always ask your stock related queries only to market experts.
6. Wait for sometime in order to get the fruits from your planted tree.
7. Always make a strategy before investing in any option. 

So, these are the seven golden rules for getting great returns on your investment. Follow these and you will certainly make good money in stock market. For more information on investing in stock markets visit http://www.moneysukh.com
 
Till then , Keep Playing! Good Luck!!
The author is an expert in financial markets and offers valuable tips on equity trading for small investors. Keep visiting this page regularly for more tips and tricks related to online share trading and see your portfolio double in a short time! 

Article source:http://www.ideamarketers.com/?articleid=1713056&CFID=62335624&CFTOKEN=74638055

Make Money With Online Commodity Trading

Making money is uppermost in the minds of most people; in fact, money makes the world go round. But how do we start making money? With no money minting machines or money plants around, what would be the best course of action to start making money in the market. Trading, to be more precise, online commodity trading  is a big hit, as more and more people are joining the posse of traders, who have made millions of dollars in the last few years.

Well, nothing is as simple as it sounds; the path to fame and fortune is lined with thorns. One has to slog and work hard as there are no fast solutions and shortcuts to success. You'll have to keep your eyes and ears open, always poised to notice the latest happenings and hear the recent most trends in the online commodity trading space. One should keep track of what commodity
is doing good business, what has done good business, and what will be the next big thing in the market. Here are a very few pointers passed on by the veterans in the trade to start making money and be a successful online commodity trader.

Trend following is the most basic, yet an important and vital link in the whole chain of commodity trading. You need to observe the market minutely, laying great emphasis on things that you want to trade and do business in. It is about real money, so it would be wise to research, study and analyse the market before you take the plunge. After a thorough study, deliberating on the pros and cons of it, you can finally devise an online trading strategy that meets all your financial requirements and conditions.

Then the next important thing before you open an online commodity trading account is selecting and choosing a commodity broker. These days you don't have to shell out exorbitant sum as commission for brokers, as there are many brokers specialized in online or e-trading who charge a lot less than the traditional brokers.However, it is important to zero down on an experienced and reputed broker, who can give you good commodity trading advice and guidance along with the general stuffs like charts, reports, quotes, strategy and all.

Once you get an online broker, the next step is opening an online trading account. Your broker will help you in the process, which will involve lots of forms to be filled and documents to be signed. It is very important for you to go through the documents thoroughly before signing them, reading between the lines to avoid any misgivings later.It will inform and explain to you about all the risks involved in trading. You would also need to reveal your financial statements before you open the account as there might be situations where you may lose more money than you have invested. It's for the broker to decide whether you can or cannot open an account after a thorough analysis of you financial information like your credit history, your annual earnings (income), previous experience in trading et al.

Well the most vital part comes last, i.e. the very act of trading. It is important for you to have a well thought-out commodity trading strategy or tactic in place. A lot of researches, valuable advice from old-timers, online tips, reading relevant books and doing your homework are some of the best ways to prepare yourself for the grind of  online commodity trading..


Read more: http://www.articlesbase.com/investing-articles/make-money-with-online-commodity-trading-2027395.html#ixzz0zTjLSGQe