Online Share Trading Solution

SNAPSHOT

Indian equity markets, which failed to extend the winning momentum last week, resumed the northward journey by settling with close to a percent gains in the week ended July 22. The enthralling week saw the frontline indices being buttressed not only by encouraging reports from the domestic front but also by easing concerns over global financial stability. The Bombay Stock Exchange (BSE) Sensex gained 160.38 points or 0.86% to 18722.30 during the week ended July 22, 2011. The BSE Mid-cap index was up by 39.37 points or 0.56% to 7046.12 and the Small-cap index was up by 100.27 points or 1.20% to 8463.49.  The S&P CNX Nifty gained 52.85 points or 0.95% to 5633.95. On the National Stock Exchange(NSE), Bank Nifty increased by 57.40 points or 0.51% to 11291.95, CNX IT surged 92.45 points or 1.46% to 6438.50 while CNX mid-cap lost 21.30 points or 0.26% to 8153.90 and CNX Nifty Junior slipped 111.70 points or 0.98% to 11278.45. India's food inflation has once again resumed its declining trajectory as the Food Articles group rose 7.58% in the week ended July 9 compared to 8.31% in the previous week. The Empowered Group of Minister (EGoM) on food headed by Finance Minister Pranab Mukherjee removed the four year ban from export export of wheat.

Meanwhile, Indian agriculture production registered a record increase of around 11% during the 2010-11 agriculture season while ministry of finance approved 31 foreign direct investment (FDI) proposals worth Rs 3844.70 core. The domestic indices were largely influenced by the encouraging developments from the Euro-zone where European Union leaders carved out a second bailout package worth 109 billion euros ($157 billion) for debt-stricken Greece in a desperate effort to contain the 18 month long debt crisis in Europe, which is threatening to spread to much larger economies.

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

Read more about Weekly Market Outlook
Related post about Equity Research Report by Mansukh 

Read more about Derivative Research Report By Mansukh
Related  Post Derivative Trading