INDIAN STOCK MARKET TIPS
The origination of the Indian securities market may be traced back to 1875, when 22 enterprising brokers under a Banyan tree established the Bombay Stock Exchange (BSE). Over the last 125 years, the Indian securities market has evolved continuously to become one of the most dynamic, modern and efficient securities markets in Asia. Today, Indian markets conform to international standards both in terms of structure and in terms of operating efficiency.
Today India has two national exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Each has fully electronic trading platforms with around 9400 participating broking outfits. Foreign brokers account for 29 of these.
There are some 9600 companies listed on the respective exchanges with a combined market capitalisation near $125.5bn.
Any market that has experienced this sort of growth has an equally substantial demand for highly efficient settlement procedures. In India 99.9% of the trades, according to the National Securities Depository, are settled in dematerialised form in a T+2 rolling settlement environment. In addition, trades are guaranteed by the National Clearing Corporation of India Ltd (NSCCL) and Bank of India Shareholding Ltd (BOISL), Clearing Corporation houses of NSE and BSE respectively. The main functions of the Clearing Corporation are to work out
(a) what counter parties owe and
(b) whatcounter parties are due to receive on the settlement date.
Furthermore, each exchange has a Settlement Guarantee Fund to meet with any unpredictable situation and a negligible trade failure of 0.003%. The Clearing Corporation of the exchanges assumes the counter-party risk of each member and guarantees settlement through a fine-tuned risk management system and an innovative method of online position monitoring. It also ensures the financial settlement of trades on the appointed day and time irrespective of default by members to deliver the required funds and/or securities with the help of a settlement guarantee fund.
1. Do not over trade - If your trading capacity is Rs. 2,00,000 then avoid using margin. Infact trade with 1.5 Lakhs only.
2. Diversify- One should diversify his portfolio, invest in different sectors.
3. Buy when vibes are not good that is when stocks are on decline in other words buy at bad news. Sell when prices are high that is when there is good news.
4. Have realistic targets - Dont thinks of making crores in one single day. Market will open daily have realistic targets in your mind and trade with patience.
5. Stoploss - Always follow stoploss. Dont be afraid of loosing sometime that is also learning experience.
6. Strategy - Dont cut positions in loss before stoploss and dont exit in minor profit before target. Always wait for target.
7. Dont always think of buying at low price and sell at higher price. Do not be afraid to buy at high price and sell at lower price.
8. Sell when everyone is buying and Buy when every one is selling.
9. Dont be a buyer or seller always, Work as per market trend. Always follow market trend.
10. Take Long positions only in companies having strong fundamentally. For short term position find some good stock from speculation point of view.
NSE STOCK TIPS
Market is place where exchange of goods and services takes place between buyer and seller, similarly stock exchange is a market where stock transaction (goods or services) are exchange between two individual.
The National Stock Exchange of India Limited (NSE), is a mumbai-based stock exchange.It 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.
It provide facilities which serve as a model for the securites industry in terms of trading system, practises and procedure. It has been set up as public limited company owned by the leading financial instituions, banks, insurance companies and other financial intermediaries of india, but its management and ownership are seprate entities. NSE is stock exchange in india where membership on an exchange also meant ownership of the exchange and management is under the control of Board of Directors.The day to day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff
NSE uses satellite communication technology to energies participation from around 400 cities in India
NSE the first exchange to trade ETFs(exchange traded funds) in India
NSE can handle up to 1 million trades per day.
It is one of the largest interactive VSAT based stock exchanges in the world.
The NSE- network is the largest private wide area network in India and the first extended C- Band VSAT network in the world.
Presently more than 9000 users are trading on the real time-online NSE application.
In ,march 2006,NSE had a market capitalization of 4,380,774 crore
It covers more than 1500 cities across India
NSE DEALS IN :
Equity
Futures and Options
Retail Debt Market
Wholesale Debt Market
NSE offers trading of a variety of types of securities, including equity, corporate debt, central and state government securities, commercial. NSE specializes in three market segments: wholesale debt, capital market (automated screen-based trading system), and futures and options (derivatives paper, and certificates of deposit).
Branches of NSE located throughout the country, which gives flexibility to its member to transact from place of their own choice trough on-line screen operation and electronic clearing and settlement. It because of this reason NSE becomes the third largest stock exchange in the world in terms of volume of transaction.
STOCKS TIPS
The word Stock simply means a share in the ownership of the company. Stock represents a claim on the companys assets and earning. When you own a share you own little bit of the company. The more shares you own the bigger your stake, and the more say you have. Once you hold the stock of the company you will become the shareholder of that particular company i.e. technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. Share bring money in to the company which they can invest for its growth, expansion and development
Market is a public place where things are bought and sold. Thus the term STOCK MARKET is simply the process by which company shares are bought and sold by anyone - from big institution such as pension companies, to ordinary investors like us. The place or mechanism through which they are bought and sold is called an exchange
COMMON STOCK : Common stock also referred to as common or ordinary shares. When people talk about stocks they are usually referring to this type. Common stock gives voting right to its shareholders, generally common stock shareholders receive one vote per share to elect the companys board of directors but one of the disadvantage of common share is that its shareholder will not receive money until the creditors, bondholders and preferred shareholders are paid.
PREFERRED STOCK : Preferred stock, sometimes called preferred shares, have priority over common stock in the distribution of dividends and assets Preferred stock represents some degree of ownership in a company but usually doesnt come with the same voting rights. (This may vary depending on the company.) With preferred shares, investors are usually guaranteed a fixed dividend forever.
NEED BEHIND ISSUING SHARE : Company to raise money so that they can invest in their businesses and help them grows. Once a company has issued the shares they can be bought and sold on the stock market. The company may decide to issue more shares in future to raise more money for expansion. This is called a rights issue.
Stock market works on the basic principle of market i.e. matching buyer and seller and is governed by the laws of supply and demand and all the companies listed on the stock market are grouped together into categories, according to what they do.
For example, HDFC bank and ICICI bank are in the BANK sector. This is to help investors compare similar companies more efficiently.
HOW STOCK TRADE : Stock are traded in exchange, some of the exchanges are physical located where transactions are carried out on trading floor while the other type of exchange is virtual, composed of a network of computers where trades are made electronically. It is important to understand that the trading of a company's stock does not directly involve that company.
BEARS : Bears are cautious animals who dont like to move too fast. An investor is said to be bearish if he or she believes the stock market will go down. A bearish investor will buy stock cautiously. The term bear market describes a time when stock prices have been falling on the whole.
BULLS : Bulls are bold animals who might charge right ahead. A bullish investor believes the market will go up. He or she will charge ahead and put more money into the market. A bull market is a period when stock prices are generally rising.
SURE SHOT TIPS
Doctor Nifty gives the best STOCK MARKET TIPS / Sure Shot Tips. This statement is not a statement given by us but its something which our clients say on a daily basis when they get continuous profits whether the market is going bear or bull. And why will it not be so? Here we have got the best analysts of the market to analyze and predict the market.
STOCK MARKET RECOMMENDATIONS
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STOCK MARKET TIPS
Doctor Nifty is a leading Stock market call Provider Company based in India. We are a professionally managed company with focusing on high quality deliverables and client satisfaction , we analyzing Indian Stock Market daily. Our customers have realized some important benefits with us apart from high quality deliverables such as:-
1. We Provide less but best calls.
2. We excel in Mid Market calls.
3. We Analyze calls of both cash or eqity market also weak, strong future calls.
4. We work as per our customer requirements. We take care of individuals requirements.
Basic Rule of Indian Stock market
1. Whenever market is high it will fall soon.
2. Whenever market is low, if there is no external factor then it will rise.
3. Same rules applies to stocks scripts also.
Everyone says that when market is high we will invest in shares , as doing intraday trading is risky. However we say that when market is going high investment is not that safe as it doesnt make any point blocking your money when SENSEX and NIFTY are already zooming high. Wait for correction to come and then buy at lower price. Till the time stick to intraday stock trading.
Best time for investment - when market is down, though by keeping fundamentals in mind.
Best time for intraday trading - Everyday is best day for it. Condition being some professionals are assisting you with there analyzes of stock market.
How to earn in Bullish Indian stock market.
1. Always remember this is your hard earned money not anyones. So you have to take care of it and be cautious at every level, if you are taking calls from processionals then also.
2. Always follow Indian stock market.
3. When market falls, dont panic, when market zooming dont be overjoyed as you can earn and loose both ways around.
4. If market goes up you first buy and then sell and if Indian stock market goes down, you first short and then buy.
5. Never hesitate to ask for professionals advice.
SHARE MARKET TIPS
Average daily share volume is an important criterion to determine the potential of a particular stock.
Average daily share volume is the volume of a specific stock that is traded in a day over a period of time. Average daily share volume is calculated to determine the liquidity a particular stock in a market.
It is assumed that when a stock is having greater average daily share volume the stock has got maximum chance to gain in future as maximum number of investor is showing interest in the stock. With greater average daily share volume a stock is relatively easier to buy from the market and hence as an investor you have greater chance to gain from a stock with better average daily share volume.
On the other hand when a stock is having lower average daily share volume, it indicates that the stock is not a preferred one at the market and there is minimum number of buyers for the stock at the market. But one positive side of the stock with lower average daily share volume is that, in most cases the price of the stock tends to be lower than the usual. So, if you are absolutely confident about the future of the stock and ready to make a long term investment, even a stock with lower average daily share volume can be a viable stock option for you. But you need to consider other factors that will let your know bout the financial condition of the company before you take the decision to buy a stock with lower average daily share volume.
When the average daily share volume of a particular stock changes dramatically, it can be assumed that there is certain news about the company of that particular stock. You need to do your research really well before you invest in such a volatile stock. You need to study the financial standing of the company, price fluctuation of the stock for the last one year and even study the profit posted by the company in the past one year and so many other things that will help you understand the potential of the stock.
Though the average daily share volume is an instrumental part for determining the price of a particular stock you must not forget that it is not the only criteria for taking buying or selling decision of that particular stock.
NIFTY TIPS
As INDIA is getting more globalised- and may be more complex, people are constantly seeking new answer.
How much has the country progressed?
How well is the economy doing?
The NIFTY is the platform on which India finds these answer. NIFTY is an indicator of all the major companies of the NSE and also represents NSE top stock.
Nifty is a well diversified 50 stock index accounting for 22 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index fund. It is owned and managed by India index service and product ltd. (IISL) it is a joint venture between NSE and CRISIL
STRONG POINTS :
The traded value for the last six months of all Nifty stocks is approximately 43.72% of the traded value of all stocks on the NSE
Nifty stocks represent about 55.78% of the total market capitalization as on June 29, 2007.
But during the last correction in October, the Nifty declined by 11.3% (open values to monthly lows), the NSE 500 lost 11.7 per cent and the Midcap 200 lost 11 per cent.
It is a simplified tool ,which help investors and ordinary people alike , understand what happen in the stock market and by extension, the economy . if the index performs well , it is a signal that companies in India are performing well and consequently that the country is doing well.
The Nifty index is based upon solid economic research and is internationally respected and recognized as a pioneering effort in providing simpler understanding of market complexities
The Nifty index is computed and disseminated by NSE, the 4th largest stock exchange in the world in terms of trades in the capital market. |