Friday, May 31, 2013

India GDP Growth Rate in last 10 years: 2003 - 2013

In last 10 years India GDP grew at a compounded annual growth rate of around 7% with growth rate as high as 9.5% in FY 2006 and 9.3% in more recent year 2011 to as low as 4% in 2003 to 5% in the latest year 2013. 

FII Inflow Data in India since 1993: Debt and Equity

Since the Indian economy was liberalized in 1991 and Foreign institutional investors were allowed to participate in Indian Stock Markets, flood of money has come to Indian equities and debt instruments since then. Though it remained a bit sluggish in initial years but has picked up pace since 2004 when we received around 40000 crores from FIIs. 

In 20 year period between FY-1993 and FY-2013 we had only two years FY-1999 and FY-2008 when FII were net sellers and taken money out. FY-2013 witnessed record inflows of 140000 crores or $26 billion USD which is more than the inflows of first 10 years put together. 

Friday, May 24, 2013

MQL 5 Market: The Best Marketplace for Trading Robots and Software

Trading Robots or Automated trading system / software has gained huge importance in the last few years specially in forex environment, and slowly the automated trading or algorithm trading is catching up in the stock markets as well. 

As far as trading robots are concerned there are plenty with some absolutely free and some very expensive depending upon the popularity and track record. The dis-advantage of trading forex through trading robots is that there is no human intervention and the software does everything according to what's there in the algorithm, however this is it's biggest strength as well as it works on strict rules written for profit maximization and loss minimization. 

Thursday, May 23, 2013

Make 1.25% return in 5 days

Japanese Stock Market fall of more than 7% and quick appreciation of Yen vs USD on the back of fear of inflation in Japan has led to a very high conviction trade that can generate more than 1.2% return in 5 days.

The trade is to sell 1750 May call option of Maruti at current market premium of 3.2 expecting that Maruti should not cross 1750 levels in next 5 days.The recent month closing high for the stock was around 1742.

Total return from the strategy

Monday, May 20, 2013

Just Dial Valuation Very Expensive - Avoid

Just Dial provides search services on the information and user reviews from its local business, product and services database across India. Its search service is available to users through multiple platforms: Internet, mobile, telephone (voice) and text (SMS). 

In fiscal 2012, the company addressed over 254.3 million search requests across its platforms. As of December 31, 2012, the company was conducting approximately 195,100 campaigns for the paid advertisers.

Momentum Trading - Is it a good trading strategy?

The answer depends on what kind of risk return profile this strategy has and whether your temperament matches up to the temperament required in this strategy. So it's important to understand the contours of the Momentum trading style first to make a decision.

Technically momentum is mass times velocity and Physics says that if an object's velocity of movement is accompanied by large mass it will have very high tendency to continue to move in it's direction until and unless a massive force try to stop it or change it's direction. It has been witnessed that the same physics applies to stocks and markets as well. Whatever be the direction, if the movement of the stock is accompanied by larger volume it will have natural tendency to continue to move in that direction. 

Friday, May 17, 2013

Sell ITC 360 Call Option at 1.60 premium

With ITC Q4 result out which was largely inline with market expectations, the stock has shown muted reaction. The stock offcourse is very expensive trading at 35 times forward year EPS and is having huge market valuation of 2.66 lakh crores.

Considering the recent price action and overall valuation of the stock once can easily sell May series ITC's 360 call option at the current market premium of Rs 1.30.

Total Return from the trade:

Considering one is able to sell the May Call option of ITC 360 strike price at current market premium of 1.30 he/she can generate following return from this trade:

Tuesday, May 14, 2013

ROE: Return on Equity or Return on Ego?

ROE is off-course Return on Equity that measures returns generated on shareholders wealth and companies across sectors try hard to maximize it. But as far as Hotel Industry in India is concerned it seems ROE is certainly Return on Ego as the promoters of most of the hotel companies in India went on to expand on leverage and at any cost without considering the return economics in mind. This is primarily due to the fact that there is a certain aspiration and glamour around hotels, especially in the high-end luxury segment, and many developers get in the race to build grand properties rather than one that will give them the best financial return.

Tuesday, May 7, 2013

Best Software for Trading Signals on Forex and Stocks

Metatrader 5 has taken trading based on Trading Signal to an altogether new level. Now beside having technical charts providing you trading signals for your trades in forex and stock markets now you can subscribe trading signals from the most successful traders and copy their trades for maximum profits. As far as trading platform is concerned, Metatrader is undoubtedly the best as it offers highest number of functions among all competitors and has been in existence for over a decade now. It also commands over 80% market share.

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...