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Fundamental Vs Technical Analysis

Posted on 03 Feb 2015

There are two general schools of stock analysis: fundamental and technical. This feature describes the two schools and the key differences between them. Fundamental Analysis Fundamental stock analysis requires among other things a close examination of the financial statements for the company to determine its current financial strength future growth and profitability prospects and current management skills in order to estimate whether the stock s price is undervalued or overvalued. A good deal o...

Futures In Indian Financial Markets

Posted on 24 Nov 2014

Futures are financial contracts that obligate buyers to purchase an asset or the sellers to sell an asset such as a physical commodity or a financial instrument at a pre-determined future date and price. In futures contract details pertaining to the quality and quantity of the underlying asset are clearly mentioned. Further futures are standardized in order to facilitate trading on a futures exchange. It must be noted that a few futures contracts may ask for physical delivery of the asset while...

Common mistakes to avoid while investing in Equities

Posted on 17 Nov 2014

Looking at the markets performance we all dream of beating the markets and building super equity portfolios. Despite our best efforts most of us fail in our attempts. It means that we cannot achieve equivalent or higher returns on our equity portfolio. There are some gross errors that investors make while building their equity portfolio. Common investors are generally surrounded by many factors which lead them to make wrong decisions while building their equity portfolio. Let us analyze some of...

Rising Index – Hidden Divergence

Posted on 08 May 2014

Results season starts in the month of April with Infy results. It is also assumed that Infy results are a trend decider. Markets had a rip-roaring rally towards new highs in the month of April. However some profit booking was seen at new highs and a small healthy correction started. A negative divergence was also witnessed on Daily charts giving early indications that an intermediate top was formed. A falling advance decline ratio also gave early indications of Top formation. VIX has started ri...

And history repeats itself…

Posted on 31 Mar 2014

In early march we had highlighted historical behavior of the stock market. We had also highlighted how important it is to track reaction of markets to the events occurring at periodic intervals. Events trigger the momentum in equity markets. Moreover one such major event that India is tracking currently is election 2014 . We had briefed you in our last article (given below again for your reference) on how the markets move up or down in line with consensus on future results from an anticipated e...

High volatility expected amidst geo political tension

Posted on 10 Mar 2014

Market Outlook for March 2014 The month of February which begun on a negative note with short rollovers was a classic bear trap month when we saw buying in the cash and index futures by the FII s in the 2nd half of Feb resulting in hectic short covering by bears towards close of expiry pushing up the index by 200 points over the settlement. The month of March has begun on a volatile note with global markets spooked on the back of tension in Ukraine .While an early resolution to the tension coul...

Will history repeat itself?

Posted on 07 Mar 2014

Events trigger the momentum in equity markets. Any big event such as budget or RBI policy could make or break the stock market. You may gain or lose on your investments post such events. One such upcoming event is the Elections 2014. Equity markets work on expectations and it could turn out to be positive or negative. Markets try to position themselves as per the general consensus and at times much before an actual event. They try to achieve valuations in relation to future expectations. Curren...

Volatile times ahead – ride it and do not get swayed!!!

Posted on 28 Feb 2014

Market outlook for February 2014: January saw some cautious trading particularly from the FII s who decided to hedge some of their positions by selling into index futures as well as some selling in cash which was more pronounced towards the end-Jan. Tech results were greeted with a muted response and some profit-taking was visible at higher levels. The current month has begun on an ominous note and global sell off in equities has taken its toll on the Indian markets as well. Even as we move int...