Monday, June 30, 2008

What is a Stock?

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

Also known as "shares" or "equity".

A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.

Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run.

Know the Nifty

NSE S&P CNX Nifty 50 is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialised company focussed upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services.

The Standard & Poor's CRISIL NSE Index 50 or S&P CNX Nifty nicknamed Nifty 50 or simply Nifty (NSE: ^NSEI), is the leading index for large companies on the National Stock Exchange of India. The Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index.

Know the Sensex

The BSE Sensex(SENSitive indEX) or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base April 1979 = 100. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around one-fifth of the market capitalization of the BSE.

Know the NSE

The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India . In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.

Know the BSE

The Bombay Stock Exchange Limited is the oldest stock exchange in Asia. It is also the biggest stock exchange in the world in terms of listed companies with 4,800 listed companies as of August 2007.[1] It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.

The Bombay Stock Exchange was established in 1875. Around 4,800 Indian companies list on the stock exchange. The BSE SENSEX(SENSitive indEX), also called the "BSE 30" is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.

stock_analyst_indian@yahoo.com

Any one who wants to comment on my blog, he or she is most welcome.

Time to buy selected stocks

Indexes , again fell today.Sensex fell 2.47% and standing on 13,461.60 and Nifty is on 4040.55.As all say...One should never catch a falling knife.It's time to believe in it.If one is eager to invest at this point of time...one should carefully select the undervalued stocks or the stocks which don't deserve the beating ,what we saw recently.
Indexes are coming down to my given level as i said in my May month blog.My studies say that indexes are near the bottom and it will be wise to buy those stocks ,which are on the supporting level on the charts for a technical bounce which can give the investors 15 to 20 % return in 2 months from now.

Saturday, June 28, 2008

Sensex will go past 40000 in next 5 years

When I used to say my friends ,that sensex has the potential to go past 40,000 mark,no one believed me.It was in 2005 winter.Once, that year,i asked famous technical analyst ,Vivek Patil ,at icici bank towers hall,about the similarity between nikkei graph(between 1960-90) and indian stock market chart pattern,and asked
whether the sensex will do a nikkei?He said he will have a look on that but I told him that i strongly believe that it can,when i studied and compared our economy to Japnese electronic boom from out IT boom and our major companies growth rate.it seemed on the card.
On 29 October 2007, Sensex had touched the peak of 20,000...then one of my friend came and congratulated me for my market reading.I was overwhelmed with joy.
Now sensex is in correction mode and i think that it will be a life time opportunity to buy stocks.
Sensex has still the potential to go past 40,000 mark in next 5 years.

CRR and Repo rate hike

The RBI hiked the repo rate, the rate at which banks borrow from RBI, by 50 basis points and the CRR by 50 basis points,(CRR), Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI.
Certainly ,it will do an adverse effect on the stock market.Indexes are goin down to my given levels of 3500(nifty)and 11,000(sensex).Currently, at the end of this week trade,nifty is on 4136 and sensex is on 13802.

Wednesday, June 4, 2008

Nifty Chart

Sharp Fall

As i cautioned you guys, before in my blogs earlier.Indexes are going down and down.The Government has increased the LPG,diesel,petrol prices.It will fuel the political battle and one must admit.., this can be a downfall for the UPA government.The Indexes are down 2.7 % today.Nifty is around 4585, and Sensex is at 15,514.But i can see some silver lining in the cloud.I can see some stocks which can be multibagger at this stage.So be prepared.

E-mail-stock_analyst_indian@yahoo.com