Wednesday, June 12, 2013

Markets Have Corrected - Time To Buy Again

Those who have been waiting for my post since 31st May, would realize that I have been quiet for a reason. There has been bloodletting in Indian markets and in such situations its better to witness from the sidelines. That is why I have been giving no recommendations for the last two weeks. I wanted the dust to settle down before we take up the fight again. Now the time has come to start buying in Indian stock market. You may well ask - why? There are many reasons which I shall elaborate in succeeding paragraphs, but the primary reason is technical in nature. You see, there is this Golden Ratio of 61.8% which is generally found in all aspects of nature. This has been expounded by an Italian mathematician named Fibonacci. Today Nifty has retraced exactly 61.8% of its earlier up-move  from 5477(10 April 2013) to 6229(20 May 2013). See it in the chart given below:-

That's the technical aspect for starting your buy tomorrow. The other reasons for buying which will have sentimental and fundamental effects on Indian markets are listed below :-
  1. Rating Agency Fitch has revised the outlook for India from Negative to Stable.
  2. Rupee has reversed its falling trend and has risen 1% against the US Dollar.
  3. Finance Minister will announce measures to rescue Rupee tomorrow.
  4. Globally Dollar is weakening as is evident from the Dollar Index
So there you are! Come tomorrow be mentally prepared to start shopping in Indian stocks of substance. Nifty is expected to open  with a gap up tomorrow and should cruise to level of 5850. Today Nifty closed at 5760. Happy Trading! 

Friday, May 31, 2013

Storm It Was - A Terrifying One At That!

It was not Nifty or Sensex falling today, but the manner in which they fell. Simply wiped out the species called bulls from the market. It was terrifying to say the least. It was a super storm. In my last blog-post I had a premonition that a storm was in the making. Check out this post here.

I was wondering why an expiry day was so dull. It was as I was contemplating - a lull before the storm. Bulls were being made to climb up the gum tree. It was a perfect setting for a Bull Trap. Well done Bears!.

That said, I am not fully convinced that the gruesome sell off had anything to do with GDP numbers as is being publicized. GDP numbers were in fact a tad better than market expectations. And if expected GDP numbers did not rattle the markets yesterday, then why the sell off today. It doesn't stand to reason. The combination of following can be the reason for such determined sell off:-
  1. RBI Governor hinted that rate cut is not likely. And since this rally was June rate cut driven, hence the sell off today.
  2. PM hints at cabinet reshuffle, so an air of uncertainty hangs in air. And markets loathe uncertainty.
  3. The relentless slide in Rupee against Dollar, indicating that tapering of QE-3 in US is on the cards. This will result in tightening of liquidity in markets for all asset classes. 
That said we had Chamblfert June Futures hitting its stop loss at 58. Hence we had to book loss of Rs 8000/- .Sadly there seems to be Policy Paralysis for Fertilizer Companies, even when the monsoons are approaching and clarity on subsidy is awaited from Govt. With non-Urea fertilizer prices being so high, farmers will adopt Urea as their preferred fertilizer. Let us see what Govt decides to do in an agrarian economy - further snuff out agri-based industries or give incentive to boost them. Time will tell!

I am planning to run a series through this blog on all profitable Indian industries that Govt has succeeded in butchering through its quaint policies. God knows what sadistic pleasure is being derived by the GovtOthrough such policies. We shall evaluate later, so keep checking out this space.

Thursday, May 30, 2013

Lackluster Expiry - Is It Calm Before Storm

An uninspiring expiry day!. Markets did nothing much throughout the day and very stock specific action ensured that markets closed in green. But the actual fact cannot be gauged by the green tick in Nifty or Sensex. The actual story of the broader market was that it sold off. There were more declines than advances. Metals and Infrastructure bore the brunt of selling, even as Indices rose from red.

But it was surprising that there was hardly any volatile movement on an expiry day. No mad surges to cover positions and hence it was overall a boring session for an expiry day. However the slide in the Indian markets was not as pronounced as the overnight global qualms. With Dow having closed 106 points on worries of tapering Quantitative Easing (QE-3), one could have got more jolt in Indian markets. By that standard there was calm in our markets today.

Be that as it may, we have a position on the buy side still standing. It is Chamblfert June Futures which closed down today at 56.1. In case you forgot, I had recommended its buy yesterday in this post.
Those holding this position should hold it till 50. All the best!.

Wednesday, May 29, 2013

Trading Tips For 29 May 2013

8.45 PM
Chamblfert June Futures was bought at 47.1 but that is sheer impatience which has cost us. I have to admit that I lost my patience as markets slid down in slow motion and gave an update at 10.07 AM to buy Chamblefert at current market price. This was despite the fact that as per my  calculations the buy price was between 46/ 46.5 which I had given at 7.18 AM today. Well the low of the day for Chamblfert June Futures was 46.15 and it closed at 46.45. What a bumble for losing patience. Anyhow, hold the scrip for target of 50 which should be achieved in 3/4 trading sessions.

As for GSPL June Futures I had asked those holding the lot to sell today between 61 and 62. Check it out here. GSPL made a day high of 61.4 . Even if you have sold at 61 you would have made a profit of Rs 12000/- flat.

Buy CHAMBLFERT June futures at 47.1/47.2. Intraday tgt 48.5. Current price 47.1

7.18 AM
Keep the following stock futures of June series on your trading screen and try and initiate any trade that reaches my recommended prices :-
  1. Sell LICHSGFIN at 292/295 for target of 260
  2. Sell SRTRANSFIN at 865/870 for target of 800
  3. Sell CESC at 352/355 for target of 330
  4. Sell HDFC at 955/960 for target of 910
  5. Buy CHAMBLFERT at 46/46.5 for target of 50. Stop Loss- 45

Tuesday, May 28, 2013

Profitable Trades Of June Series - Buy Was Mantra So Far

From 24th May onwards I have been recommending various stock futures of June series for buying. Check it out here.

Yesterday I had given call to buy Indiacem June Futures at 70 in this post. It was traded at 70. Last evening I had posted an update asking all who bought Indiacem to exit today above 72. In today's trade Indiacem closed at 73.05 after making a day high of 73.25. Since the lot size is 4000, one would have made  profit in the range of Rs 8000/- to Rs 12000/-.

The other stock futures that got traded yesterday as per my recommendation was GSPL June Futures. It was bought at 58. I have given a target of 65 for this scrip. Today GSPL June Futures closed at 60.8 after hitting a day high of 61.25. Lot size of GSPL is also 4000. This means that those who have bought this tip are already sitting on a profit of Rs 11,200/- from one lot as per closing price. That is a decent profit return in two trading sessions by any stretch of imagination. Hence tomorrow I would advice all those who are holding this lot to take profit off the table by squaring off their position between 61 and 62.

Once again I am appealing to all those followers of this blog, who are still debating about trading stock futures, to get out of their shell and start profiting from my trading calls by trading them. I shall be posting my tips for trading by tomorrow morning before market opens. Till then, take care!

Monday, May 27, 2013

Tips For Trade - 27 May 2013

7 PM
Indiacem : I had given this call to buy Indiacem June Futures at 10.15 AM today during market hours. Those who bought this lot today at 70 should try and exit above 72 tomorrow. This will ensure that you make at least Rs 8000/- as profit. You should get price above 72 within 10 minutes of market opening.

GSPL I had given recommendation to buy GSPL June Futures at 8.35 AM today before markets opened. Those who bought at 58 should hold this lot for the given target of 65. But make sure that when the price moves above 62 you keep appropriate trailing stop loss to protect your profit.

10.15 AM
Buy Indiacem June Futures at 69/70. Current price 70. Target- 75

In today's trading, keep a sharp look out for following stock futures of June series for trade:-
  1. Buy Chamblfert June Futures at 43/44. Target -50.
  2. Buy Ranbaxy June Futures at 270/274. Target- 300
  3. Buy GSPL June Futures at 57/58. Target-65
  4. Buy Tatapower June Futures at 87/88.5. Target 92
  5. Sell LICHSGFIN Jun Futures at 290/294. Target 260
If there is any new development I shall be posting updates during market hours. Keep checking for updates. Good Luck!

Sunday, May 26, 2013

Short Term High Return Online Trading

I have been demonstrating since Apr 2013 the magical returns of online trading in short term. The game of high return can be achieved in short term through Stock Futures Trading, if we are a bit cautious, aware and can eliminate greed factor from our trading. These are essentials of Stock Futures trading, but only after having done a thorough and precise technical analysis to determine entry, exit points and to identify trades which are at low risk and high return point. Short term high return trades have been amply exhibited in the following blog-posts :-

Stock Markets Rally - But How Much Did We Profit?  
Time to Book Profit In Nifty   
Bloodbath on the Street : But Profit Time For My Followers
Tatapower and Hexaware Outperform - Market Flat  

So to make the long story short, you will profit from my recommendations only if you trade. Do not just read this blog, take appropriate action to trade as I suggest. You will never regret that decision. And let me tell you candidly that I have only interest of small retail investors in mind. I do not work for any organization or cartel and hence am not looking to inflate or depress prices. If you trade and make profit, it will make me feel good and happy. So take the plunge now.

I will post new recommendations to trade stock futures of June series tomorrow before market opens. Be ready then to take note and trade as per my suggestions. Download my toolbar for quick access to this blog and keep checking my blog-post at regular intervals for latest updates on ongoing trades. Good Luck!

Friday, May 24, 2013

Tatapower and Hexaware Outperform - Market Flat

Though most stocks advanced but there was hardly any action in the broader market to talk about. Out of the four stocks I had recommended for buy before markets opened today in this post here , two stock futures outperformed the market, eking out about 4% gain at the close. They were Tatapower June Futures and Hexaware June Futures. However the super safe buying prices I had recommended were not met in trade.

But as I had promised earlier, during market hours I gave a call to buy JPassociat May Futures for intra-day trade through this blog. Check here. Buy was at 66 and sell was at 67.5 within half an hour. In this manner profit of Rs 6000/- could be generated intraday from one lot.

From now on, as a matter of routine I will be posting recommendations for trade around  8 AM every morning of trading day. You need to check them out and trade to make profit. In case some very good opportunity presents itself during trading hours, I will send an update in this blog as I had done today. So keep visiting the latest blog page periodically to check out my updates. It will take half a minute of your time to check for updates in case you download my toolbar provided at the right sidebar. So go ahead, download my toolbar for free and stay connected to make profit from stock market. You will be immensely benefited since lots of opportunities will present itself in a volatile market in the month of May and June.

Trade Recommendations : Buy June Series

Target Achieved. JPassociat May Futures traded at 67.5. Profit : Rs 6000/-

Buy JPassociat May Futures at 66/66.5 for target of 67.5 for today
Presently trading at 66. Buy

In today's trading, we will keep a look out for some stock futures of June series for buying. These stocks and their buy levels are given below:-
  1. Buy Chamblfert June Futures at 43/44. Target -50.
  2. Buy Jindalstel June Futures at 260/265. Target- 300
  3. Buy Hexaware June Futures at 70/72. Target- 78
  4. Buy Tatapower June Futures at 85/86. Target 92
It may take a few trading sessions  for the given buy prices to be achieved. However track them by keeping them in your trading screen. With volatile market you never know; you can get these buy prices anytime. All the best for trading!

Thursday, May 23, 2013

Bloodbath on the Street : But Profit Time For My Followers

I hate to say this, but today markets witnessed some horrendous sell off. Crazy market move on the downside was expected but some sectors saw some serious sell off. I have been continuously warning the bulls to shift their stance to selling. Take a look at the list of blog-posts where I have been consistently pleading everyone to be on the sell side :-

Investors - Time To Consider Shifting To Buying Real Estate
Sell In May & Go Away - Should We This Time?
Selling in May Has Started - Nifty On Course To Target
Short Selling - Get Ready To Take Another Shot
Indian Markets Chug Along - But Bulls Beware of Trap
Markets Sell Off In Second Half - You Were Forewarned
Short Positions For 21st May : Stock Futures

 Ferocious selling today should not have harmed those who have been following this blog. However I am still sad that I got some of you to exit your sell positions earlier than you should have. This means that some of you would not have realized the full profit potential of your short positions - all because I got unnerved. My apologies. Instead of asking you to square off your short positions, I should have told you to keep a trailing stop loss. We live and learn I guess.

Those who sold CESC May Futures at 330 as per my recommendations in 21st May post, would have squared off today at the given target price of 316. They would have earned profit of Rs 14000/- from one lot in CESC.

Those who are still to take action as per my recommendations, should start trading right from tomorrow. There will be plenty of earning opportunities in trading stock futures in May. However I will be giving recommendations for trading the June series from now onwards. And tomorrow morning by 8 AM you will, get recommendations of some stock futures to trade. So check here tomorrow to get your tips before market opens. Don't miss the trades.

Tuesday, May 21, 2013

Time to Book Profit In Nifty

Right since middle of April I have been harping on the fact that we should be on sell side. In fact I have advised against investing in stock market at present and instead only trade in stock futures. You can see it in this post here Execute Your Trading Plan Now

Also since May I have been asking traders to go short in the market. Last time I recommended selling Nifty June Futures was at 6230 in this post here Indian Markets Chug Along - But Bulls Beware of Trap

As you can see I had warned bulls in the market to be cautious. Today Nifty June Futures slipped and closed at 6127. Those who have shorted Nifty at 6230 level can think of booking profit as market opens tomorrow and Nifty is around today's closing price. This should give them a neat profit of Rs 5000/- per lot in two days of trading.

Those who still haven't executed any trade can do so tomorrow. If market opens positive look to execute trade recommendations that I had posted today before market opening. You can look them up here Short Positions For 21st May : Stock Futures

Keep trading since you will get umpteen opportunities this May to trade on the short side. All the best!

Short Positions For 21st May : Stock Futures

Short Sell the following stock futures of May series to make profit:-
  1. Sell CESC at  330/335 for target of 316
  2. Sell Maruti at 1780/1790 for target of 1725
  3. Sell Indusindbank at  520/525 for target of 490
  4. Sell Kotakbank at 790/795 for target of 760 
There are others which may or may not reach their sell levels today. But in case they do, then you can also sell the following at levels indicated below:-
  • Sell LICHSGFIN at 284/287 for target of  270
  • Sell Yesbank at 537/540 for target of  519
  • Sell Lupin at 800/805 for target of 750

Monday, May 20, 2013

Markets Sell Off In Second Half - You Were Forewarned

Today markets opened with a gap up. Nifty June Futures opened at 6215, gap up of 14 points. It went to a high of 6247 and closed at 6174. In my last blog-post of 17th May titled Indian Markets Chug Along - But Bulls Beware of Trap I had forewarned that selling will be witnessed in second half of trading session. And that is why I had recommended selling Nifty at 6230. Some of you have heeded my advice and are short in Nifty. But those who are still debating, this post is for them. Tomorrow initially Nifty should move up and so you can short Nifty June Futures at 6190/6200. Reason is simple. You can see Bearish Engulfing candlestick pattern in Nifty formed after today's trade.

Hence those who missed selling today can go right ahead and sell tomorrow at levels indicated above. In case you send me feedback on what your opinion is or what your queries are, then I can be of more help. There are times when I also feel  the need to update you when the market is in progress. There are times when I can tell you to exit or enter market as per the prevailing conditions of the market so as to maximize profit. 

To achieve that I will be updating very important points in this blog during market hours also. For you to easily access my blog-post, you should download my toolbar which is available at the right sidebar. This toolbar is a google powered Alexa toolbar and has the following advantages :-
  1. This toolbar will be positioned below your address bar when you open your browser.
  2. You can access my blog with just one click from this toolbar.
  3. You can access your facebook and twitter accounts from this toolbar.
  4. You can go to your gmail account from this toolbar.
  5. There is a Real Estate link in the toolbar where I will be adding great opportunities that present themselves in Property market.
Once you download the toolbar make sure that you enable it to show up in your browser screen by clicking on 'View' button at the top of your browser window and then enabling toolbar for "Archana's Blog". And yes, download of this toolbar is absolutely free. So just download my toolbar and keep visiting this blog intermittently during markets hours. It will take just a minute or so of your time. Happy Trading!

Friday, May 17, 2013

Indian Markets Chug Along - But Bulls Beware of Trap

Nifty closed today up 17 odd points. It seems that bulls are having a field day and there is relentless buying with no topping over in sight. But stop!. Before we conclude any such thing, I have a different take of the situation. Its a set-up for a Bull Trap. Not in the classical sense but the final effect is going to be the same. The newly converted Bulls are going to be trapped thinking that there is plenty of steam still left in the market to make profit on the upside. But just the opposite is going to happen latest by coming Tuesday i.e. 21st May. By the way, selling in Nifty could also begin on Monday in the later half of the trading session. If we look closely at daily chart of Nifty, we find 'Hanging Man' candlestick created in today's trading.

So on Monday (20 May 2013) as  markets open, we should sell Nifty June Futures. I am recommending June Futures because we should get better momentum on the downside with June series. On Monday I expect a gap to be created on opening. Whether it is gap down or gap up, we should sell Nifty June Futures. This means that your sell could be anywhere in the range of 6180 and 6230. First Target for your sell will be 6000 and 2nd Target will be 5900.

If you have any queries then do ask through the comments section.You can also write your thoughts and suggestions for improvements. Share your thoughts and we will all be that much more informed. All the best for trading on Monday!

Thursday, May 16, 2013

Short Selling - Get Ready To Take Another Shot

Markets are cruising along in overbought territory and we need to ready ourselves for another try at short selling. The last try was when I had given a call for shorting Nifty on 10th May. Check Here. And on 13th May Nifty had fallen 132 points intraday. But on 14th May I had warned of bizarre market movements with wild illogical swings and volatility in this post here. The very next day on 15th May Nifty rose 138 points intraday. Hope you can sense the true meaning of bizarre market movement. Lets look at the daily chart of Nifty.
What you see on a particular day in market is just some weird and calculated posturing by big players and not the true direction or trend of the market. So do not get carried away by these bizarre market movements. Selling is round the corner and if I am not mistaken it will start within next couple of trading sessions. I feel tomorrow's trading session will give us the final signal for selling. From that angle tomorrow is a very important trading day, which will define the market's direction in short term. Keep vigil!

Tuesday, May 14, 2013

Selling in May Has Started - Nifty On Course To Target

Selling in May has started as I had predicted on 10 May 2013. We are about to witness a bizarre game of Distribution. Those who are uninitiated to the term "Distribution", it is a technique of selling by big players wherein they try to mask their intention to sell large quantities by selling in small tranches. This ensures that the prices do not get depressed suddenly and they are able to get good average sell price of their overall quantity. In this process they also intermittently try to artificially spike up the prices by buying back portion of their sold quantity.

This is a normal process of selling that happens in the market as a precursor to Bear Run. Then why am I calling it bizarre? The other day I was telling a friend of mine about what I perceive would happen in the market looking ahead. I am of the firm opinion that in days ahead we are in for some serious selling in the market. In normal times, the distribution phase is meant to suck up the retail investors by tricking  them into buying when actually they should be selling. Conditions in market are so created which convince the retail investors to buy. But at the present moment there is hardly any retail participation and even the domestic institutions are well nigh non participants in the market. That leaves the very big fishes comprising of all shades of FIIs. It is these big players who will try to hoodwink each other to get the best selling prices. So in short you will witness some very complex market movements and illogically high volatility. One day it will seem as if the Bears have taken total control and the very next day you will inexplicably find Bulls racing ahead in full steam.

But don't worry. As long as you are with me through this blog, you will be guided to weather any storm in the market. You will recall that on 10 May 2013 I had advised to sell Nifty May Futures in a post titled Sell In May & Go Away - Should We This Time?   And in the very next trading session on 13 May 2013, Nifty May Futures dropped from intraday high of 6119 to intraday low of 5986. In today's session Nifty May Futures has made a Doji and closed at 6006.

However, in my recommendation I had given the first target of 5870 for Nifty. It seems we are on course to achieve this target. Those who have sold Nifty as per my recommendation, can hold on to their position till the given first target. But they should keep stop loss at 6090, owing to expected high volatility. And once the first target is achieved then they should hold their position for the second target, but with apt trailing stop loss so as to protect their profit till then.

So far so good in trading Nifty since we are sitting in profit. Lets see whether the coming sessions vindicate my stance. Happy trading!

Friday, May 10, 2013

Sell In May & Go Away - Should We This Time?

In Western markets there goes a saying "Sell in May and Go Away". And this adage has generally been holding its worth even in Indian markets most of the time. But this time around Dow Jones has been surprising everyone by making all time highs everyday in May. Does that mean that things will be different this May and the adage will be proven wrong? Will it be foolhardy to sell in this month of May 2013?

I do not think it is unwise to sell now in May 2013. Of course you will have to time your 'Sell' differently for different stock futures. As for record breaking streak of Dow Jones, it seems the bullish exuberance has already been overdone for the time being. I am not for once saying that Dow Jones has peaked. I am only saying that Dow has overstayed in the untrodden territory of All Time High for a bit too long. So for the present moment Dow will have to cool down somewhat in rest of May.

I have been reminding you in previous posts that we will be selling May series. And the time has come for some action tomorrow. The first 'Sell' candidate is Nifty itself.  Lets have a look at Nifty May Futures daily chart.:

 We can see that Nifty has the following weakness in daily charts:-
  • V-shape recovery which needs to correct so as to provide stability for further move up.
  • There is formation of Bearish Engulfing candlestick pattern, if we see the candles of the last two trading sessions.
  • Support for this V-shape up-move will be at 61.8% or 50% retracement. This means that  5800 and 5725 are the support areas for Nifty.
So we can sell Nifty between 6060 and 6090. Even if Nifty has to move up from here without correcting, it will still have to touch down to 5970 before going up, Hence selling Nifty now is low risk and high return proposition. Sell Nifty May Futures between 6060 / 6090 for first target of 5870 and second target of 5725.

There are other 'Sell' candidates also, but we can keep our exposure at low risk by selling only Nifty for the time being. But in case anyone needs to reconfirm a view on selling any other stock futures, he or she can do so by simply asking my opinion in the 'Comments' section. Remember its May and we can make merry by selling stock futures in May. So go right ahead and take action. All the very best!

Thursday, May 9, 2013

Note For Those Who Are New To Stock Futures Trading

Since my recommendations to make money from stock market will be for very short term, it is advisable that you leverage your profit by entering futures trade of the recommended stock. But those who are uninitiated to stock futures trade, will have lot of mental apprehensions. For newbies I would like to touch upon rudimentary issues regarding stock futures trade. Read on to know the details/nuances of stock futures trade:-
  1. Stock futures is traded almost in the same fashion as you trade that particular stock in the cash segment. Only difference is that when you buy a stock you get delivery of the stock in your Demat Account. But when you buy futures of that stock, you do not get physical delivery of that stock. Instead the buyer only enters into a contract with the seller.
  2. While placing 'Buy' order for stock futures, quantities  need to be filled as fixed by the Exchange for each stock, called Lot Size. So if you have to buy Relinfra futures, you have to buy minimum one lot and the size of the lot is 500 shares. That means you have to buy minimum 500 number of Relinfra futures or buy in multiples of 500.
  3. You can buy any of the three contracts of Relinfra-  May contract or June contract or July contract. Each contract expires on the last Thursday of that particular contract month. Thus May contract will expire on 30 May, June contract will expire on 27 Jun, and July contract will expire on 25 July. After you buy a particular month contract, you have the liberty to sell that contract anytime from that moment till expiry of the contract
  4. Let us see how much money you have to invest to buy one lot of Relinfra Futures, consisting of 500 shares. You will have to pay about  20% of the total value of one lot. If current price of Relinfra June Futures is say 400, then the total cost of one lot of 500 shares will be 400x500 = Rs 2,00,000/-. But while buying one lot of Relinfra June Futures, you will only pay 20% of Rs 2,00,000/- which works out to Rs 40,000/-. In other words you can buy one lot of 500 shares of Relinfra June Futures for Rs 40,000/-, and this is the leverage you are getting to trade in stock futures. Suppose after buying one lot of Relinfra June Futures at 400, you find that the price has shot up to 420. and you sell it. Since you have sold one lot of Relinfra June futures at 420, you will make a profit of 20x500= Rs 10,000/-.
That is how simple stock futures trading is. But initially if you are little hesitant in filling the 'Buy' order form, you may seek the help of relationship manager of your broking firm. The advantage of stock futures trading is not only in the leverage that you get in terms of capital requirement, but also in the following areas:-
  • You can quickly get into market and as quickly get out and yet make substantial return on investment. This means that for any position you take in the market, you can plan to have a very short exposure so as to cut down on risk of long exposure in uncertain times.
  • Even when the market is falling because of a downturn or Bear Run, you can make money in stock futures. This is possible because you can take a sell position even before you buy. So this means that you can first sell one lot of Relinfra June Futures and later when the prices drop sufficiently, you can buy back one lot of Relinfra June Futures. Suppose you 'SELL' one lot Relinfra June Futures today at 400, and after couple of trading sessions you find that Relinfra June Futures is trading at 380. You can buy back your sell position at 380 and thereby make a profit of 20x500= Rs 10,000/-. Thus you can actually make profit in Bear market through trading Stock Futures. You do not have to keep waiting for start of a Bull market to make profit.
There is always a catch in all rosy pictures and the catch here is MtoM (Mark to Market). After you take a position (either buy or sell any stock futures), you need to keep your trading account sufficiently funded for MtoM. Supposing you Sold one lot Relinfra June Futures for 400 today and at the end of trading session Relinfra June Futures closes at 410. That means at end of the day you have incurred a notional loss of 10x500= Rs 5000/-. This Rs 5000/- is the MtoM requirement for today for the Sell position you have taken in Relinfra June Futures. And this much amount should be there in your trading account for you to keep holding this Sell position in your account. You may contact your broker to get more details on MtoM.

 We have seen that trading stock futures is simple enough. So get ready to enter into 'Sell' positions in May series to make profit. I will be giving you 'Sell' recommendations very shortly.

Saturday, May 4, 2013

Vigneshwara Developers' Acquarius Business Park At Gurgaon

Got hold of this Walk Through Presentation on Aquarius Business Park, Sector 74, Gurgaon which is being developed by Vigneshwara Developers. Watch it critically and do let me know your thoughts.

If you recall, in my 21 Apr 2013 post on Real Estate Investing  I had discussed why we should invest in Property now and had recommended Vigneshwara Developers as my trusted builder. Disclosure is that I am a very happy and satisfied investor in projects of Vigneshwara Developers. Further in a post on 03 May 2013 I had put forward strategies for investment in real estate. Click Here to access post. Vigneshwara Developers offer 12 % Assured Return Plan and pay you  from the day you invest in their property. To get their Sales Presentation and other details you may contact their General Manager Marketing at this number : 09359210404

Friday, May 3, 2013

Reality Check For Investing In Real Estate

Time has come for looking towards Real Estate as an investment destination. But investment in stock markets at the present juncture is fraught with dangers and may give investors sleepless nights. I would like to qualify my statement here. I am only saying that stock markets will be difficult for investors, and not traders. Traders in stock market can still make money, but the same cannot be said for stock market investors.

While stock market investing can be an exercise in futility, investing now in real estate can turn out to be quite rewarding. At this point there is an overhang in stock markets, whereas real estate market is poised to gather steam. The only problem with investment in real estate is that the requirement of initial capital is dauntingly high. So in the succeeding paragraphs I am going to discuss strategies which can help investors to surmount this high barrier of capital requirement in property purchases.

Scenario # 1.
Let us consider options for those who do not have adequate capital for investment in real estate but have a residential property/flat which they have rented out. It is generally seen that a residential property/flat worth Rs 1,00,00,000/- (Rupees one crore) will fetch them a rent of about Rs 30,000/- (Rupees thirty thousand) per month. Now if they were to sell this residential property they would have Rs 1 crore in hand. They should invest this 1 crore in 12% assured return scheme in a commercial property. Then they will get a monthly return of 1% which works out to Rs 1,00,000/- (Rupees one lakh) per month. This means by shifting over from their residential property to commercial property they stand to gain Rs 70,000/- thousand per month as income. And if they judiciously choose their commercial property ( preferably IT Space) as per guidelines I had earlier given in this blog-post , then they will also get an exponential appreciation of their property over time. Hence we find that through the strategy outlined above, they will substantially increase their monthly income and also enhance chances of improved appreciation of their property.

Scenario # 2. 
Now  I will consider a strategy for those who do not have adequate capital for real estate investment and are staying in their own house without any other property. They can sell their house and invest the proceeds in a similar manner as in Scenario # 1 above. Supposing their house sells for Rs 1 crore. By investing this amount in assured return commercial property, they will have a monthly income of Rs 1 lakh as outlined in Scenario #1 above. They can shift to a rented house of similar status as their original house for which they will need to pay Rs 30,000/- as rent. That means after paying the rent, they will be left with Rs 70,000/- as spare income per month. Now they can go for buying a new residential flat under construction from a reputed builder by taking loan. EMIs for this loan can be easily met with the extra Rs 70,000/-. in hand, with lots of money to spare. I am saying this because till completion of  the flat, they will only be paying only the interest component of money disbursed by bank so far, called Pre-EMIs. And once the new residential property is ready for possession, they can move into their new flat, thereby saving the rent amount of  Rs 30,000/- they paid per month. So when the EMIs actually start, they will have Rs 1 lakh as income coming to them per month which will easily cater for these monthly EMIs. With this strategy they will have two properties(commercial plus residential) to appreciate in time, instead of just one residential property. Of course here they will have to initially pay 20% of the basic sale price (BSP) of the flat before sanction of  loan from a bank.

A reputed builder in Gurgaon who is selling commercial property(IT Space) with 12% assured return and whom I can vouch for is Vigneshwara Developers. For complete details you may contact their General Manager(Marketing) at this number : 09359210404

And yes, be ready for my next set of trading calls of May series which will be on the sell side. You will get my recommendations in this blog one day prior to entering the trades. Take care!!!

Thursday, April 25, 2013

Stock Markets Rally - But How Much Did We Profit?

Today has been the day of reckoning. For today was expiry day for stock futures and if you would recall we entered into trade on 15 Apr 2013 on my recommendations given for 12 stocks on 14 Apr 2013 in a blog-post which you can access here

Now let us evaluate how much each of the 12 stock recommendations were worth. Out of the 12 stocks, only 11 could be traded as Ibrealest buy price was not achieved. Since the recommendations were for stock futures of April contract all the trades got closed, today being expiry day. Read on below to find out the score of each buy recommendation of 11 stock futures :- 

1. UNITECH (Lot size - 10000)   
Bought at 24.25
Sold at 30 
Profit = 5.75 (30-24.25) x 10000 = Rs 57,500/-

2. JPASSOCIAT (Lot size - 4000)   
Bought at 70
Sold at 80 
Profit = 10 (80-70) x 4000 = Rs 40,000/-

3. AMBUJACEM (Lot size - 2000)   
Bought at 173
Sold at 190 
Profit = 17 (190-173) x 2000 = Rs 34,000/-

4. LT (Lot size - 250)   
Bought at 1355
Sold at 1490
Profit = 135 (1490-1355) x 250 = Rs 33,750/-

5. JSWENERGY (Lot size - 4000)   
Bought at 56.5
Sold at 64 
Profit = 7.5 (64-56.5) x 4000 = Rs 30,000/-

6. ACC (Lot size - 250)   
Bought at 1140
Sold at 1260
Profit = 120 (1260-1140) x 250 = Rs 30,000/-

7. JPPOWER (Lot size - 8000)   
Bought at 24.5
Sold at 27.5
Profit = 3 (27.5-24.5) x 8000 = Rs 24,000/-

8. RELINFRA (Lot size - 500)   
Bought at 340
Sold at 380 
Profit = 40 (380-340) x 500 = Rs 20,000/-
9. BHEL(Lot size - 1000)   
Bought at 178
Sold at 192
Profit = 14 (192-178) x 1000 = Rs 14,000/-

10. VOLTAS (Lot size - 2000)   
Bought at 79
Sold at 85
Profit = 6 (85-79) x 2000 = Rs 12,000/-

11. DLF (Lot size - 1000)   
Bought at 243
Sold at 253
Profit = 10 (253-243) x 1000 = Rs 10,000/-

Keep a lookout for the next set of recommendations for the May series in this blog.

Wednesday, April 24, 2013

Feeds Through Feedburner Not timely - Will Be Terminated Henceforth

I have realized that feeds that you get through Feedburner in your mailbox are delivered to you quite late. This is creating problems for some of you to access market information from this blog in a timely fashion. Not getting timely actionable information is detrimental to entering market in a profitable manner as per my recommendations.

Hence from now onwards, I am going to switch off feeds from Feedburner to your mailbox, so that you stop getting delayed market information for trading. Those who want to take action in stock market as per tips provided in this blog, will now have to directly access the blog. For ease in accessing the blog you may download for Free my toolbar which is provided on the right hand side of the blog. This is Alexa toolbar (powered by Google) and is quite handy. You may also download my toolbar from the link provided below:-

So go right ahead and download my toolbar in order to directly access this blog. I will keep giving you timely recommendations with precise entry and exit points of selected stocks so that you can make smart profits on a weekly basis. The present recommendations of 12 stocks, which I had given on 14 Apr 2013 in this blog-post, will  expire tomorrow i.e. on 25 Apr 2013. I will give you an update/result sheet of my present recommendations after market hours tomorrow.

I firmly believe that the present market conditions are going to provide immense profit making opportunities for short term traders. Hence you will be greatly benefited to enter trade in stock/index futures. Those who have realized the profit making potential of my recommendations can look forward to many more of my recommendations in this blog to make money out of stock market.

Sunday, April 21, 2013

Investors - Time To Consider Shifting To Buying Real Estate

Investors in Stock Market will have a tough time with fierce volatility expected in 2013-2014. What we are witnessing today is not correction, but beginning of a deep correction, if not a long term Bear Run. Frankly speaking, a deep correction or a cyclical Bear Run have almost the same devastating effect on investor money. Such market conditions are beneficial only to smart traders and that too in the futures market, because when the market is trending down then the futures trader can go along-with the market and sell  futures position. As the market slides lower, such a trader can make profit by buying (squaring off his position) at lower level. In this manner a trader can make profit when the stock market is correcting/ in the grips of a bear hug.

In second paragraph of my blog-post on 14 Apr 2013, I had emphasized this fact that the present time is not conducive for Investors in stock market. This time in the stock market is only for traders. You can access that post here :

Commodities Market
If it is not stocks, then can you invest in commodities? The answer is 'No'. The commodity prices also have nose dived and they are just precursor to even worst things to emerge in the commodities front. Gold which was considered by investors as safe haven, is no longer so. We can expect 2013-2014 as very bad years for investors in Gold. Single day historical drop in gold prices of more than Rs 1500/- is just telling us that Bear Phase in Gold has started. After a Bull Phase of nearly 12 years, one can easily conclude that the Bear Phase will last at least two years.

Property Market
The only place left in India to invest now is the property market. That too in select places where the growth potential is maximum. With lot of policy easing lined up by the Govt (as Finance Minister is making us believe) to attract foreign capital, property market is set to boom. What will help is softening of commodity prices, which in turn will lower inflation and that will give impetus to RBI Governor to lower rates. On the sidelines, the current account deficit (CAD) in India will improve with price of oil cooling off and gold losing its luster with investors thereby lowering demand and import bill. All said and done, real estate market is ready to take off and that is the place to park your money, if you are an investor.

For investing in real estate, three most important things to be kept in mind are as follows:-
  1. Your property investment  should be in a place with high potential of economic activities.
  2. The location of the property should be such that it has very high connectivity, by Road, Rail and Air.
  3. If you are looking at a property purely from investment angle, then it makes more economic sense to buy a commercial property, since the returns will be mush higher than residential property.
Besides what is given above, in places where you know Metro Rail is going to expand in a couple of years, such locations have an exponential potential of  giving you high returns. Place like the new Commercial Business District(CBD) of Gurgaon towards Manesar is one such sweet spot for investors and lot of builders have started executing their grandiose plans there. After a detailed survey and analysis, I would recommend one such builder and his not to be missed offer of Assured Return of 12% till completion of the project or five years whichever is later.

State of the Art commercial property is Aquarius IT Park at Sector 74 Gurgaon, being developed by Vigneshwara Builders and the only builder in this commercial business district of Gurgaon who has been given the permit to build a rooftop helipad. Those investors who are interested to get the exact details should contact their General Manager (marketing), Mobile No : 09359210404.

Best of Investing!!!

Market Stock Trading Trend

In case you are getting frustrated with trading a market which seems illogically volatile, then you should be reading this. It will give you insights to Market Stock Trading Trends that you can easily identify and make quick profit. But then in doing so you need to be nimble footed, you need to quickly take decision to enter the market with a stock futures trade, and without getting too emotional you should as quickly move out of the way of taking profit off the table. That is easy said than done, until you learn to identify such market stock trading trend. So here I am going to help you identify such trading trends in the ensuing paragraphs. Here we go!

Market Stock Trading Trend

Even when the market is not showing any long term or medium term trend, that is when the market is not trending, you will find smaller trends in the short term. Basically these trends are due to Wave nature of the market movement and can be profited from in near term trading. Let us first understand few basic principles of Market Stock Trading Trends :-
  1. Any market movement will take place in the form of Waves.
  2. These waves move up in five steps in Bull Run, and conversely move down in five steps in Bear Run.
  3. Movement of waves in five steps upwards means that the first step will go up, second step will come down but not below the low of first step, third step will go up higher than the high of first step, fourth step will come down but not lower than the high of first step and fifth step will either go higher than third step high or equal to that high.
  4. This means that for a market trending upwards, there will be three steps taking prices upwards and there will be two steps taking prices lower. Same will be the opposite case for markets trending lower.
  5. The three steps which take the prices upwards will again move in five-step waves, and the two steps taking prices lower will move down with three-step waves.
If we have assimilated this preliminary information about market movement, then we can apply this for short term trading. For identifying Market Stock Trading Trends in the short/near term in a daily stock chart, follow the instructions given below :-
  • See the daily chart of a stock and try and identify whether the short term trend is up or down.
  • If it is up then identify whether the third step of the wave has started or not.
  • Catch the third step of the wave as it begins and buy the stock. Remember the third step of the wave is generally the most profitable with minimum risk. This step will take the prices higher than the high of first step as discussed earlier.
  • As the prices go higher than the high of first step, keep a trailing stop loss and go with the price movement. As the price moves higher, move your trailing stop loss higher, till you are stopped out. This your your exit.
  • Since you are looking for very short term profit, trade with stock futures so that you can get a leveraged profit, which can be substantial. In terms of Return on Investment, your profit should be averaging 25% in 4/5 trading sessions.
Hope you have got some useful insights into Market Stock Trading Trends and can use this information to profit in this market. Always use your stop loss after entering any trade. In later posts I will be giving you tips on Swing Trading Indicators so that you can enhance your prowess in Market Stock Trading Trends.

Wednesday, April 17, 2013

Trading Plan : Stocks Hit Target on Third Day

Those who are trading with my Trading Plan as given on 14 Apr 2013 here would have realized how powerfully some of the recommended stocks have responded in a market that was lackluster today. In fact the market closed absolutely flat with no clear direction. Even then some of stocks which achieved their first target are discussed below :-

1. JSWENERGY. Bought at 56.5 for 1st tgt of 60. Closed at 61.1. Lot size : 4000. Capital Invested : Rs 38500/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 14000/-. Profit percentage : 36.3% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 64, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

2. UNITECH. Bought at 24.5 for 1st tgt of 26.5. Closed at 27.25. Lot size: 10000. Capital Invested : Rs 53500/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 20000/-. Profit percentage: 37.3% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 30, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

3. JPASSOCIAT. Bought at 70 for 1st tgt of 75. Today's High at 75.8. Lot size : 4000. Capital Invested : Rs 56000/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 20000/-. Profit percentage : 35.7% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 81, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

4. AMBUJACEM. Bought at 173 for 1st tgt of 185. Closed at 186.9. Lot size: 2000. Capital Invested : Rs 55400/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 24000/-. Profit percentage: 43.3% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 194, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

In yesterday's trading two stocks had achieved their first targets and in today's trading four stock have achieved their first targets. In other words in three days of trading as per my recommendations, six stocks have achieved their first targets. And one could say that the profits attained are reasonably sufficient. Let us now see how all my recommendations fare till the expiry of April contract, which is on 25 Apr 2013. Best of trading!!!

Tuesday, April 16, 2013

Trading Plan - Sitting On Cusp Of Profit Bonanza

Those who are following this series of my Trading Plan, would recall that day before yesterday i.e. 14 Apr 2013, I had implored my readers to jump into the stock market and buy stock futures ( or even stocks) according to their Trading Plan for some smart and quick profits. Those who didn't have their own Trading Plan could use my Trading Plan as I had given in that blog-post, which you can access here :

Well today has been the second trading day and already couple of the stock futures I had recommended for buying have already achieved their first targets. Let us now analyze those stocks which have hit their first target in two trading sessions:-

1. JPPOWER. Bought at 24.5 for 1st tgt of 26. Closed at 26.25. Lot size : 8000. Capital Invested : Rs 33500/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 14000/-. Profit percentage : 41.8% in 2 days. In case you have not booked profit at 1st target and are playing for 2nd target of 28.5, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

2. LT. Bought at 1355 for 1st tgt of 1435. Day High at 1435. Lot size: 250. Capital Invested : Rs 54200/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 20000/-. Profit percentage: 36.9% in 2 days. In case you have not booked profit at 1st target and are playing for 2nd target of 1490, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

Even Ibrealest  has achieved my first target of 59 and closed at 59.15 today, but remember it had  failed to come down to my buy price day before yesterday. So we take it as a great missed opportunity. Rest of my recommendations are at the cusp of reaching their first target and some are also poised to achieve their second target soon. So keep faith and hold on to your positions for some astronomical gains within a week.

One last thing. In case you have any queries then do use the 'Comments' section of this blog-post and I shall be happy to answer to the best of my abilities. You may or may not have entered trade as per my Trading Plan, but by commenting you will ensure that I keep getting motivated to provide you with such recommendations in future also. Happy Trading!!!

Monday, April 15, 2013

Trading Plan - For Those Who Did Execute

In my last blog-post on 14 Apr 2013, I had requested my readers to enter trade today(15 Apr 2013) with some Trading Plan. Entering the market today was important with Stock Futures trade for capturing smart gains. Also in that blog-post I had suggested my own Trading Plans to enter the Futures market. One could enter the cash segment also with those Trading Plans, but they would be rewarded with a smaller profit percentage.You can check out  my last blog-post here

Let us now check how each of my recommendations have fared on the first day of trade. In other words, those who acted on my Trading Plan should be witnessing the following status in their trading accounts :-

Trading Plan # 1
1. Relinfra : Bought at 340. Closed at 356. Lot size 500. Notional Profit= 16x500= Rs 8000/-.against capital investment of Rs 38500/-(Cost of one lot). Hold for 1st target of 380
2. Ibrealest.  No trade since buy price not achieved
3. DLF. Bought at 243. Closed at 242. Lot size 1000. Notional Loss= 1x1000= Rs 1000/-.against capital investment of Rs 48500/-(Cost of one lot). Hold for 1st target of 275
4.Unitech  Bought at 24.25. Closed at 24.65. Lot size 10000. Notional Profit= 0.40x10000= Rs 4000/-. against capital investment of Rs 53500/-(Cost of one lot). Hold for 1st target of 26.5
5. JSWEnergy  Bought at 56.5. Closed at 56.8. Lot size 4000. Notional Profit= 0.30x4000= Rs 1200/-. against capital investment of Rs 38500/-(Cost of one lot). Hold for 1st target of 60
6. JPPower  Bought at 24.5. Closed at 25.25. Lot size 8000. Notional Profit= 0.75x8000= Rs 6000/-. against capital investment of Rs 33500/-(Cost of one lot). Hold for 1st target of 26

My Trading Plan #2 is also in somewhat similar situation in the first day of trading. Let us see how these stock futures fare in the coming trading sessions. Do remember to keep appropriate trailing stop loss once the first target is achieved and you are gunning for the second target. Happy Hunting!!!

Sunday, April 14, 2013

Execute Your Trading Plan Now

Be fearful when others are greedy, and be greedy when others are cautious. So goes the saying, and I think this quote is attributed to Warren Buffett. 
Simmering Crisis in Global Financial Markets, gloom in Earnings Forecast of Indian companies, instability in  Indian political system - you name a negative scenario and it is present right now to scare investors in the Indian markets. No wonder Nifty is looking as if it is going to fall off the precipice. More than Nifty, big names in midcap companies are presently trading at their multi year lows and some are even at their historical lows. Fear is rampant in the markets and you can hear voices all around asking you to be cautious. It's a perfect setting for you to be greedy, because everyone else is cautious. And that is the reason why I am exhorting you today to take out your Trading Plan and go about executing it in the next trading session. In the succeeding paras I will be giving you some Trading Plans which you can execute for quick gains. But if you have your own Trading plan then do execute that with proper stops or whatever your safety mechanism is.

Trading Plan # 1.
You need to realize that I am talking about Trading and not Investing. I believe that Investing climate has still not come in any market. So investors are better advised to watch the play in global markets from the sidelines. So if we are on the same grid regarding trading, then make up your mind to deftly enter and exit a trade. No trade should be held for more than a fortnight. And yes, the only efficient way to trade is to enter the stock or index futures trade. Of course you may also enter trade in the cash segment which will be less risky, but it will be less paying.

Now for the Trading Plan proper. I am recommending that you should enter the Infrastructure space including the Power sector to pick some fundamentally strong companies to execute  futures trade. Some of the stock futures(Apr) you could consider trading for handsome gain, before expiry, are listed below:-

(a)  RELINFRA: Buy between 336/340, 1st tgt 380 & 2nd tgt 422. Stop Loss- 326. Lot size-500
(b)  IBREALEST: Buy between 52/53, 1st tgt 59 & 2nd tgt 65. Stop Loss- 50.5. Lot size-4000
(c)  DLF: Buy between 243/247, 1st tgt 275 & 2nd tgt 285. Stop Loss- 236. Lot size-1000
(d)  UNITECH: Buy between 23.5/24.5, 1st tgt 26.5 & 2nd tgt 30. Stop Loss- 22.5. Lot size-10000
(e)  JSWENERGY: Buy between 56/57, 1st tgt 60 & 2nd tgt 64. Stop Loss- 54. Lot size-4000
(f)  JPPOWER: Buy between 24.25/24.75, 1st tgt 26 & 2nd tgt 28.5. Stop Loss- 23.75. Lot size-8000

Trading Plan # 2.
The other basket you could consider trading is Cement and Capital Goods. Both the sectors are showing signs of good up-move from their multi-year lows. Reason could be anything from impending Fitch and other rating agencies' India rating upgrade to a sudden spurt in economic activities in the infrastructure sector owing to some firm policy decisions. Given below are some of the stock futures(Apr) you can pick up for smart gains before expiry:-

(a)  JPASSOCIAT: Buy between 68.15/70.15, 1st tgt 75 & 2nd tgt 81. Stop Loss- 66.5. Lot size-4000
(b)  AMBUJACEM: Buy between 173/175, 1st tgt 185 & 2nd tgt 194. Stop Loss- 170. Lot size-2000
(c)  ACC: Buy between 1140/1150, 1st tgt 1225 & 2nd tgt 1270. Stop Loss- 1130. Lot size-250
(d)  BHEL: Buy between 176/180, 1st tgt 195 & 2nd tgt 205. Stop Loss- 174. Lot size-1000
(e)  LT: Buy between 1355/1370, 1st tgt 1435 & 2nd tgt 1490. Stop Loss- 1340. Lot size-250
(f)  VOLTAS: Buy between 77/79, 1st tgt 85 & 2nd tgt 90. Stop Loss- 75. Lot size-2000

So now go ahead and execute your Trading Plan tomorrow. In case you have any queries, you can ask me through the comments section in this blogpost. I shall appreciate if you could give your trading feedback after having executed your trade. Any input from your side will be valuable in providing me with motivation to give you more Trading Plans in future.