Some credit goes to a league I have joined. Everyday I change my trump players, try to score more points than my league members, it’s totally fun.

If you have an account on cricinfo, you can see my team. The name is Pappa11, you know why . I think Chennai Super Kings and Mumbai Indians are strong contenders of IPL 2010.

The future of cricket is changing, it is becoming more glamorous, more interesting and more commercialized. IPL also gives platform to the players who might not be able to play internationally in their whole career. With Pune and Kochi joining the race from next year, it’ll be more fun.

Who do you think will win the cup? Share your thoughts in comments.

RPF is categorized as an equity diversified fund, The fund aims capital appreciation by investing in equity and equity related instruments of companies where the Central / State Government(s) has majority shareholding or management control or powers to appoint majority of directors.

As on 31st Jan 2010.

At 10:30 AM, one of my friend told me that there is some shoot out happening near Taj in Mumbai, I thought it might be some local gang war, I tried Google news but there was nothing. I called at my home back in India, they were not sure what’s going on.

By 12:30 PM I realized that Mumbai is caught in terrorist attack. Few terrorists came via boat to gateway of India and shooting randomly, took Taj hotel in hostage. I can never forget this day when terrorists shot people with cold blood with eyes full of evil. Mumbai was in their custody for 60 hours, they killed 170 people and more than 300 were wounded. Several brave officers of the Mumbai Police force like Joint Commissioner of Police, Anti-Terrorist Squad, Hemant Karkare, Police Inspector, Anti Extortion Cell, Vijay Salaskar and Additional Commissioner of Police Ashok Kamte fell prey to the bullets.

The National Security Guards (NSG) and Marine Commandos, summoned to bring the situation under control, also lost its two personnel, Major Sandeep Unnikrishnan and Commando Gajendra Singh.

I just want to request all politicians that terrorist’s bullets never asks a person’s identity or he speaks a particular language or he is from particular state before hitting him. Instead of blaming each other for the language we speak or where we live. We should learn a lesson from 26/11, invest in cutting edge technologies, be prepared, be alert all the time.

On this solemn day, I am saluting all the martyrs and victims of this horrible day in history of Mumbai.

Peace…

The decision was made to keep market in orderly manner by banning this type of companies. Seven employees, which were not actual “employees” applied when company came with IPO in 2006. They applied for 4,22,200 shares under employee category which was subscribed only 0.015 times and booked unlawful profit of Rs 2.31 crore within 3-4 months of listing.

After 3 years SEBI surfaced this scam and banned the company.
My question is who is at loss here? Person who did the fraud and gained crores of rupees or Investors who invested in this company and still holding their shares which will be worthless in near future.

How can a normal trader or investor identify these types of scams, it’s SEBI or regulator’s job to strengthen their rules, audits and make sure that all the necessary steps are followed.

Let me know what you think…

Volume in stock market is very important factor to look at while taking buy or sell position. Volume is like an early indicator for any changes in price movement.

First of all what is volume? Volume is traded quantity of a stock for a given day. Suppose person A sell 100 stocks of TISCO and Person B buys those 100 stocks in same day, that means total volume of TISCO for that day is 100.

Volume is used for determining the current trend of the stock.If the stock moves higher or lower with strong volumes, it justifies that day’s movement in the stock.

I know your next question is how to determine if the volume traded is strong or weak, it is usually decided by comparing current day’s volume with average volume of last two weeks (14 trading days). Am I being too technical, don’t worry I am not trying to explain any rocket science here. Let me explain with the example.

I’ll take the current scenario of reliance communication.

On 1st September price was up by Rs.3 to Rs.263 with 7,558,100 as Volume. Average Volume for that day was 5,788,958 so this movement is justifying the increase in price on that day. After that it went up all the way to Rs.317. During this there were time when volume was higher than average volume but not by significant amount.

On Oct 6, RCOM slided to 268 from 299 on that day traded volume was 31,398,500 whereas average volume was 10,535,551 on NSE. Traded volume was almost 3 times higher than the average volume. That justified the down trend started in RCOM, it is trading at Rs.228 right now. These data are readily available on NSE or yahoo charts.

Morale of the story is, volume helps you identify the short term trend but volume is not the only indicator to identify short term trend.

There can be certain exceptions, generally on FNO (Futures and Options) expiry day, volume have unexpected movements, wait for one or two trading days after expiry day to confirm the trend.

Hope I am putting all these in simple and easy terms. I tried to get the chart but i was unable to include it in this post. If you know how to insert a chart, please let me know.

Off for Dhan Teras puja..

Wishing you all a happy Diwali in advance !!

P.S. My Diwali Muhurat Picks

• Bharti Airtel
• TISCO
• Financial Technology
• Camlin Ltd.

Let me know what you’re buying on muhurat !!!

Malls, Cinema halls, Stock exchange and all the public-private offices were closed then where were you? I am writing this staying seven oceans away from Mumbai but still I feel that it’s our duty towards our nation.

I heard many people yelling, there is no future to this country, entire government is corrupt. Come on this is the opportunity to select your leaders. I know there is an argument that everybody is corrupt whom to select and that’s the reason we don’t vote. I have one one question to those people, how many of you know your local constituency candidates? Have you ever tried to know what they have done. First compare them and then if you feel nobody is eligible for your vote then it’s your choice.

I just want to say,”WE – employees” are the highest tax payers in entire country. If we elect a responsible person, it may do good for us, think BIG and WIDE.

I know the routine of 5 week days of every one and I know how precious “ONE HOLIDAY” means for me. Consider this as your duty, one vote can make a difference. I am not making any political statement or getting emotional here. Imagine Yuva movie or Shreyas Talpade in Airtel Ad. The person you voted might be one of like their character.

The city that never sleeps, the city which is famous for its high spirits. It has to win a title of highest voting city and set example for other states.

Please please caste your vote in every election.

After all if a company has 100 shares in issue and has a market cap of 100, it is worth 1 per share. Double the shares to 200 and all that happens is that shares become worth 0.50 each.

So what this news means to you, should you buy more right now or wait till bonus shares are allocated. Will the prices go up? There are lot of questions one can have.

Let me share my 20 cents on this one.

First of all lets look at the Reliance Industries (RIL) past performance. In mid june RIL was trading at 2025 and right now it’s 2167, only 7% increase while nifty was at 4250 in mid june and right now it’s 5054, that’s 20% increase. Bombay high court judgement related to the company’s gas supply to Reliance Natural Resources Ltd (RNRL) and this year’s union budget impacted RIL prices very much.

This bonus issue is to boost the sentiments of investors. One more time following Dhirubhai’s ideology. RIL will see some temporary boost by bonus issue announcement and Ani’s proactive approach to resolve the gas dispute. One have to remember that bonus issue will not add anything to valuation of the company. Valuation will still remain the same.

In India, normally the dividend per share is not cut following a bonus issue; which means the yield doubles. Suppose the Pre Bonus Share value is Rs 2,000 with a dividend of Rs 13. Post bonus you have 2 shares worth Rs 1,000 each with a total dividend of Rs 26. So thats an advantage.

Long term outlook for RIL is very attractive, company is expecting large amount of cash flows from it’s operations. If you want to enter in this, enter by 1850-1950 which I think is a fair value for RIL or 900-950 (Post bonus price).

Happy Trading!!!Don’t forget to give your vote today for Maharashtra elections.

Appreciate your feedback on this.

My first rule with which I started trading ” Start with the risk capital which you can lose it, losing this capital should not affect your regular life and your goals”. Don’t invest all your savings in stock market.

Let’s get our basics clear.

• How to start trading : Select your broker. There are plenty of options available these days like icicidirect, Reliance Money, SBI, KOTAK etc. all are almost same. I would prefer online trading which gives more control and understanding of what’s going on with your trading.
• Settlement types: When you buy a stock, it’s called transaction day=t. Amount will be deducted on t+1st business day and stock will be available in your account on t+3rd day. Same thing with sell, stocks will be deducted from your account on t+1st day and amount will be deposited on t+3rd day. This is applicable for cash (delivery) trades.
  There are some variations available like spot sell: with little bit extra brokerage you can get the selling amount on the same day.
• Buy today sell tomorrow (BTST): Some stocks qualify in this category. You need to check your broker for which stocks qualify for this. Generally almost all A group shares fall in this category. Suppose you bought 100 bharti airtel at 340 today and it shoots to 380 in next trading day you can sell your 300 bharti and book your profit even though shares are not arrived in your account. There might be some extra brokerage for this, it depends on each broker.

With this you can start buying and selling stocks. For all non traders, you can start trading this Diwali.

All existing traders, what are your picks for muhurat trading??

Finished putting up lights in balcony in freezing 8 Celsius temperature but it was worth it, Now Its looking like Diwali is coming.

Happy Trading!!

Every investor has gone through a question while investing, is this the right time to buy? The answer is you cannot time the market. It’s beyond our capability. Now with internet speed increasing day by day, information is readily available through blogs, news channels, web sites, iphone applications etc. Markets have become very volatile these days because of that. Whenever you invest your hard earned money, you should be very careful.

Systematic Investment / Withdrawal plans are the ways to invest in mutual funds. It’s like a recurring plan in bank where you have to deposit a particular amount every month for designated number of months.

SIP’s are very good investment options for people with limited financial knowledge, people who are very busy with their regular job, and housewives to save their regular income in MF. If you be systematic in your investment it’ll average the investment amount over number of months. This technique will eliminate the skill required to time the market. Also SIPs make you save particular amount every month so it’s like a disciplined way of investing. I like these plans very much for this reason.

MFs give growth as well as dividend option while choosing these types of plans.I saw people getting confused about which option to choose and finally land up choosing whatever their broker or bank suggests. It’s your money, you should be the one who makes the decision and not somebody else.

As I mentioned above, if you are very busy and don’t have time to look at your investments for months or you don’t know when to sell your MF units – go for dividend option. If you track your portfolio on a regular basis and have knowledge about market movements go for growth option. Growth option will accumulate the gains in NAV whereas dividend option will distribute the gain at regular intervals.

Some tips to choose mutual funds!!

• Check the average market capital, prefer > Rs.10,000 cr.
• There are different types of funds available like equity – high risk, balanced – moderate risk and debt – low risk.
• Check past performance.
• Check dividend history
• Don’t fascinate with big names, after all MFs are also doing a business. Do your homework and invest.
• Very good website for researching MFs : Value Research

In the next post, i’ll try to write something on advanced trading. Appreciate your comments about how the posts are coming.