Trading with PT style

[praveen taneja]

Avoiding Japan II
The voter backlash is likely to restrict the Fed's ability to pursue further quantitative easing. Re-election of Ben Bernanke as Fed Chairman is going to be a close-fought affair with even Democrat senators, like Barbara Boxer of California, whose seat is under threat, calling for a new candidate who represents "a clean break from the failed policies of the past". Also, expect increased reluctance from Congress to fund further deficits by increasing public debt — curtailing government spending and increasing pressure to raise taxes.




Watch your thoughts, for they become words. Choose your words, for they become actions. Understand your actions, for they become habits. Study your habits, for they become your character. Develop your character, for it becomes your destiny.

 

[praveen taneja]

FII trading activity on NSE and BSE on Capital Market Segment

The following is combined FII trading data across NSE and BSE collated on the basis of trades executed by FIIs on 22-Jan-2010.



FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
FII 22-Jan-2010 3068.98 5484.47 -2415.49




Domestic Institutional Investors trading activity on NSE and BSE on Capital Market Segment

The following is combined Domestic Institutional Investors trading data across NSE and BSE collated on the basis of trades executed by Banks, DFIs, Insurance, MFs and New Pension System on 22-Jan-2010.



DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
DII 22-Jan-2010 3336.17 1382.2 1953.97

 

[praveen taneja]

Nifty has broken crucial support line in daily as well as in weekly chart. Nifty witnessed huge selling pressure from last two trading sessions & also made closing below the support line. Analysts are expecting that this downtrend will continue in nifty & we could see the level of 4900. Closing below 4900 could lead nifty towards 4750 level. Now nifty has major support around 4750 level.until it makes closing above 5060.

 

[satyendra.finance]

DEAR PT

WHERE DO YOU EXPECTING JAN EXPIRY ???

thanks

Satyendra

 

[praveen taneja]

DEAR PT

WHERE DO YOU EXPECTING JAN EXPIRY ???

thanks

Satyendra

In next week we can see 4750 or 5300 or both:thumb:
I on friday close at 3.25 took 5000 put and call at 105 for a tgt of 300+ lets see god will surely bless us all

 

[praveen taneja]

Derivatives Summary

•Nifty (January) future discount has increased from 9.60 points to 16.35 points and 23.50 lakh shares were added in open interest.
•Total open interest in the market was Rs125,663 crore and Rs2,823 crore were added in open interest.
•Nifty call option added 61.20 lakh shares in open interest, whereas put option shed 11.60 lakh shares in open interest...

 

[praveen taneja]

Happy moments, praise God.
Difficult moments, seek God.
Quiet moments, worship God.
Painful moments, trust God.
Every moment, thank God.

 

[praveen taneja]

Preventing Investment Mistakes: Ten Risk Minimizers.

Most investment mistakes are caused by basic misunderstandings of the securities markets and by invalid performance expectations. The markets move in totally unpredictable cyclical patterns of varying duration and amplitude. Evaluating the performance of the two major classes of investment securities needs to be done separately because they are owned for differing purposes. Stock market equity investments are expected to produce realized capital gains; income-producing investments are expected to generate cash flow.

Losing money on an investment may not be the result of an investment mistake, and not all mistakes result in monetary losses. But errors occur most frequently when judgment is unduly influenced by emotions such as fear and greed, insightful observations, and short-term market value comparisons with unrelated numbers. Your own misconceptions about how securities react to varying economic, political, and hysterical circumstances are your most vicious enemy.

Master these ten risk-minimizers to improve your long-term investment performance:-

1. Develop an investment plan. Identify realistic goals that include considerations of time, risk-tolerance, and future income requirements--- think about where you are going before you start moving in the wrong direction. A well thought out plan will not need frequent adjustments. A well-managed plan will not be susceptible to the addition of trendy speculations.

2. Learn to distinguish between asset allocation and diversification decisions. Asset allocation divides the portfolio between equity and income securities. Diversification is a strategy that limits the size of individual portfolio holdings in at least three different ways. Neither activity is a hedge, or a market timing devices. Neither can be done precisely with mutual funds, and both are handled most efficiently by using a cost basis approach like the Working Capital Model.

3. Be patient with your plan. Although investing is always referred to as long- term, it is rarely dealt with as such by investors, the media, or financial advisors. Never change direction frequently, and always make gradual rather than drastic adjustments. Short-term market value movements must not be compared with un-portfolio related indices and averages. There is no index that compares with your portfolio, and calendar sub-divisions have no relationship whatever to market, interest rate, or economic cycles.

4. Never fall in love with a security, particularly when the company was once your employer. It's alarming how often accounting and other professionals refuse to fix the resultant single-issue portfolios. Aside from the love issue, this becomes an unwilling-to-pay-the-taxes problem that often brings the unrealized gain to the Schedule D as a realized loss. No profit, in either class of securities, should ever go unrealized. A target profit must be established as part of your plan.

5. Prevent "analysis paralysis" from short-circuiting your decision-making powers. An overdose of information will cause confusion, hindsight, and an inability to distinguish between research and sales materials--- quite often the same document. A somewhat narrow focus on information that supports a logical and well-documented investment strategy will be more productive in the long run. Avoid future predictors.

6. Burn, delete, toss out the window any short cuts or gimmicks that are supposed to provide instant stock picking success with minimum effort. Don't allow your portfolio to become a hodgepodge of mutual funds, index ETFs, partnerships, pennies, hedges, shorts, strips, metals, grains, options, currencies, etc. Consumers' obsession with products underlines how Wall Street has made it impossible for financial professionals to survive without them. Remember: consumers buy products; investors select securities.

7. Attend a workshop on interest rate expectation (IRE) sensitive securities and learn how to deal appropriately with changes in their market value--- in either direction. The income portion of your portfolio must be looked at separately from the growth portion. Bottom line market value changes must be expected and understood, not reacted to with either fear or greed. Fixed income does not mean fixed price. Few investors ever realize (in either sense) the full power of this portion of their portfolio.

8. Ignore Mother Nature's evil twin daughters, speculation and pessimism. They'll con you into buying at market peaks and panicking when prices fall, ignoring the cyclical opportunities provided by Momma. Never buy at all time high prices or overload the portfolio with current story stocks. Buy good companies, little by little, at lower prices and avoid the typical investor's buy high, sell low frustration.

9. Step away from calendar year, market value thinking. Most investment errors involve unrealistic time horizon, and/or "apples to oranges" performance comparisons. The get rich slowly path is a more reliable investment road that Wall Street has allowed to become overgrown, if not abandoned. Portfolio growth is rarely a straight-up arrow and short-term comparisons with unrelated indices, averages or strategies simply produce detours that speed progress away from original portfolio goals.

10. Avoid the cheap, the easy, the confusing, the most popular, the future knowing, and the one-size-fits-all. There are no freebies or sure things on Wall Street, and the further you stray from conventional stocks and bonds, the more risk you are adding to your portfolio. When cheap is an investor's primary concern, what he gets will generally be worth the price.

 

[praveen taneja]

Indian markets witnessed its first weekly losses of the year on account of disappointing earnings by L&T and US President Obama’s proposal to put new limits on the size and trading practices of big banks weighed heavily on Dalal Street. Moreover, key indices had largely been consolidating after last year's stupendous rebound, so a correction was long overdue. Finally, the BSE Sensex closed the week lower by 4% and NSE Nifty lost 4.1%.BSE Sensex hit an intra-week high of 17,712 and low of 16,608 while, NSE Nifty hit an intra-week high of 5,293 and low of 4,955.

The top gainers: The top gainers in the Sensex were Maruti Suzuki (up 2.2%), Bharti Airtel (up 1.5%), Hero Honda (up 1.5%), Hindustan Unilever (up 0.6%) and BHEL (up 0.4%).

The Top Losers: The top losers in the Sensex were L&T (down 10.9%), Ranbaxy Labs (down 9.5%), DLF (down 8.7%), Tata Power (down 8.4%) and Grasim (down 8%). The BSE IT Index (down 4%): The top losers in the IT sector were Oracle Financial (down 8.1%), Mahindra Satyam (down 8%), Patni Computer (down 6.1%) and Sasken Communication (down 4.3%).Wipro fell 5% during the week TCS slipped 4.2% during the week.HCL Tech rose over 3.5% during the week.

The BSE Consumer Index: The top losers in the Consumer Durables were Samtel Color (down 15.3%), Su-Raj Diamonds (down 7.1%) and Videocon Industries (down 3%).

The BSE Healthcare Index (down 6%): The top losers in the Pharma space were Morepen Labs (down 9.8%), Ranbaxy Labs (down 9.5%), Divi’s Labs (down 9.4%), Zandu Pharma (down 8.9%) and Suven Life Science (down 8.7%).

The top gainer was Strides Arcolab; the stock rose 14.4% during the week after the company announced collaboration with Pfizer, USA where Pfizer will commercialese the latter's off-patent sterile injectables and oral products in the US.Among the other major gainers were Panacea Biotec (up 5%), Ipca Labs (up 1.1%), Lupin (up 0.6%) and Aurobindo Pharma (up 0.5%).

The BSE Banking Index (down 1.1%): The top loser in the banking space was Axis Bank, the stock slipped 4.3% during the week. Yes Bank fell 3% during the week. Among the other notable gainers were OBC (down 4.1%), IOB (down 3.4%) and SBI (down 2.6%).The top gainers were Federal Bank (up 3.2%), Bank of Baroda (up 1.5%), Bank of India (up 1.4%), Canara Bank (up 1.3%) and Allahabad Bank (up 0.7%).

The BSE Auto Index (down 0.5%): The top losers in the auto space were Hindustan Motors (down 8.8%), Ashok Leyland (down 4.6%), Eicher Motors (down 4%), Swaraj Mazda (down 4%) and Tata Motors (down 2.4%). The top gainers in the auto space were Bajaj Auto (up 3.5%), Maruti Suzuki (up 2.2%) and Hero Honda (up 1.5%). The BSE Oil & Gas Index (down 6.1%): The top losers in the oil & gas space were Gujarat NRE Coke (down 11.5%), Hindustan Oil (down 11.3%), HPCL (down 9%), Cairn India (down 8.5%) and ONGC (down 7.9%).

The BSE Capital Goods Index (down 6.5%): The top losers in the Capital Goods were Jyoti Structures (down 12.2%), Aban Offshore (down 11.9%), Praj Industries (down 10.6%) and HEG Ltd (down 7.7%).L&T declined 11% during the week. The top gainers were Carborundum Universal (up 8.7%), Astra Microwave (up 8.5%), Gammon India (up 6.4%), Dredging Corp (up 5.1%) and Kirloskar Bros (up 2.7%).

The Cement Sector: The top loser in the cement sector was Ultratech Cement. The stock slipped 12% during the week. India Cements (down 10%), Madras Cements (down 9.5%), Dalmia Cement (down 9.2%) and Grasim Inds (down 8%) were among the other major losers.

The Telecom Sector: The top losers in the telecom space were Himachal Futuristic (down 10.4%), WWIL (down 8.8%), Gemini Comm (down 8.8%), Shyam Telecom (down 8.7%), Tata Communication (down 6.8%), MTNL (down 6.1%) and Reliance Com L (down 5.2%).The top gainer in the telecom space was Idea Cellular (up 4.6%). Bharti Airtel rose 1.5% during the week after the company posted a net profit of Rs22.36bn for the quarter ended December 31, 2009 as compared to Rs19.76bn for the quarter ended December 31, 2008. Total Income has increased from Rs96.88bn for the quarter ended December 31, 2008 to Rs103.27bn for the quarter ended December 31, 2009.

The Realty Sector (down 8%): The top losers in the realty space were Peninsula Land (down 11.3%), Unitech (down 10.5%), Omaxe (down 9.2%), Ansal Props (down 8.8%) and DLF (down 8.7%),

The Metals sector (down 3.6%): The top losers in the metals sector were Jindal Stainless (down 9.6%), Tata Metaliks (down 9.4%), Ispat Industries (down 8.7%) and Tata Sponge (down 8.1%).JSW Steel slipped 7% during the week.

Core sector output for December up 6%
India’s core sector, which comprises six key infrastructure industries, grew 6 per cent in December, compared with 5.3 per cent growth in the previous month. The growth, signifying a recovery in industrial manufacturing, was primarily led by an increase in the production of finished steel, cement and electricity last month. The core sector growth stood at 0.7 per cent in December 2008, due to the economic slowdown

The sector, which accounts for 26.7 per cent of the Index of Industrial Production (IIP), grew 4.8 per cent in April-December period in the current financial year, against 3.2 per cent in the corresponding period of 2008-09, showed official data released by the commerce and industry ministry .“The data are on expected lines. We can expect double-digit growth in IIP numbers… The core data alone do not signify much and the recovery in the economy is more visible in IIP and other data,” said D K Joshi, principal economist at Crisil, a ratings agency.

Finished steel output and electricity grew 9.6 per cent and 5.4 per cent respectively, against a drop of 8 per cent and growth of 1.5 per cent, respectively, in the same month last year. Crude oil production grew by 1.1 per cent, against a fall of 0.3 per cent in December 2008. Coal and cement output grew 2.5 per cent and 11 per cent, respectively. In the corresponding month of 2008, coal and cement recorded growth of 11.2 and 11.6 per cent, respectively. Only petroleum refinery products grew marginally by 0.9 per cent in December 2009, against 3 per cent growth in the same month last financial year .In the April-December period, the output of crude oil and petroleum refinery products fell by 1 per cent each, compared with a 0.5 per cent decline in the year-ago period. While coal and cement rose by 8.3 per cent and 11 per cent, respectively, electricity and finished steel also posted moderate growth of 6 per cent and 3.6 per cent, respectively, in the nine-month period.

 

[praveen taneja]

Nifty Fut Closed 5013
Nifty Fut Support 4900- 4980
Nifty Fut Resistance 5050-5110
one can Sell Nifty if Breaks 4980 TGT 4915 SL 5018