Today evening 5.30 pm IIP Data ~ So today we expected market seems some high volatile.
Nifty spot Range bound support seen at : 6503 - 6489 levels.
Nifty spot all time high base resistance : 6565 - 6573.
Nifty spot today if hold above the resistance then
small short covering rally (Aggressive traders) possible upto 6620.
(symmetrical-ascending-descending-triangles trendline).
In-case if not sustain or If couldn't hold above the all time high level
then we expect correction rally up to : 6363 (Rounded bottoms breakout point).
What is Index of Industrial Production (IIP)
Index of Industrial production is released monthly index which details out the growth of various sectors in an economy includes with three major sectors viz. Mining & Quarrying, Manufacturing & Electricity of State economy
IIP data is releases made by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation with the current series of all-India IIP (base 1993-94) was released in May 1998, using the data supplied by the 15 source agencies. It covers the Mining, Manufacturing and Electricity sectors with weights of 10.47%, 79.36% and 10.17% respectively.
Index of Industrial Production (IIP) is an abstract number, the magnitude of which represents the status of production in the industrial sector for a given period of time as compared to a reference period of time.
By the IIP data, we test out performance of industrial, its performance of industrial which affects to stock market.
A very original aspect of equity investing understands the company and sector in which you invest. There are a number of sectors, and equity investors require some particular knowledge to make knowledgeable investment decisions. One of those sectors is Index of Industrial production data for traders and investors
For Investors, through this statement, investors can choose top quality item from sectors, and try to know about your item of portfolio.
For Traders, on the date of declare of index of industrial data may get volatility. Volatility is crying for most of 85% traders as per our prediction.
Formula:
The index is a simple weighted arithmetic mean of production relatives calculated by using Laspeyre’s formula:
I = S(Wi Ri)/SWi
Where I is the Index, Ri is the production relative of the ith item for the month in question and Wi is the weight allotted to it.
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Want to play with ‘put options', futures, et al? Here are a few facets of Indian derivatives trading that could benefit you, the retail investor.
Derivatives are looked upon suspiciously by many. Mr Warren Buffett, with his comment comparing derivatives with weapons of mass destruction, has warded off the typical long-term investor from this segment. But is it necessary to give derivatives a wide berth?
The answer is no and here are a few reasons why. Derivatives help investors to hedge the risk of loss in their portfolios.
If you own stocks worth Rs 5 lakh and are worried about an imminent fall in stock prices, you could purchase Nifty put options. If the value of your portfolio declines, the profit in the Nifty put contracts will compensate for these losses.
These instruments let you leverage your capital. That is, you can take a position that is several times your outlay. For instance, with Rs 20,000, you can purchase Nifty future worth Rs 2 lakh. The leverage is much greater in options.
Regulators look askance at derivatives due to the speculative excesses that occur in this segment. But these instruments are needed for discovering the future price of an underlying.
They also help in transferring risk, from the risk-averse to the ones with more gumption. That said, the leverage in these instruments makes them risky and those who belong to the play-it-safe camp are better off staying away.