Equity/Share Market Downfall

Equity Market may wittness deep downfalls in near future, Market may be bearish upto 15700 scale. Small traders & investors need to be very carefull and think twice before putting money. Whereas normally study says that one must invest this time, but is this right time?? is a great question. We need to set target and invest carefuuly. Investing in Blue Chips rather than midcaps and smallcaps will be a better idea, and for a bit longer period only. So, think begore putting your precious money. 

TRADING TIP: Lunar Eclips/ Chandra Grahan and Share Market

Chandra Grahan / Lunar Eclips effect on Share Market

Trading Strategy / Tip after chandra grahan 16.05.2011

• Crude will show Good up and downs in next session. Chance to Move up by 6$. Further profit booking may down it upto some extent.
• Silver is also going to show upward move of app. 2.3$.
• Astrologically Gold looks weeks, if we donot look towards some market correction for short session, Gold will not show any good hold in its position. For Gold time is not Glittering.
• This Eclip is not good Share Market. Bad seesions can be seen in next so many days in continution.

Disclaimer: Please study market carefully before investing, it is subject to risk. Above tips are as per personal market research. One must study market carefuuly before investing.

gold may move at about $1,620 in Q4

Something about Gold
Gold should reach around USD 1,620 an ounce, and silver about USD 50 an ounce in the fourth quarter, metals consultancy GFMS research director Neil Meader said on Tuesday.
"After the summer lull we should start to see a firming in the price of gold and silver," Meader told Reuters on the sidelines of a conference in Milan. "The two (metals) should broadly follow one another."
Spot gold was bid at USD 1,518.60 an ounce at 0940 GMT compared with USD 1,514.73 late in New York on Monday. Silver was at USD 35.01 from USD 34.69.

Share Market Horoscope

Superstitions but some time anything or everything works:

For good results try some tips:

• Donot carry lather purse in pocket.
• Feed cows with green grass.
• Don't drink milk in night.

• Try to give water (arg) to Sun every morning.
• Donate oil and black tills for making happy to shani dev. will give some good results.

Market Moves....Prediction is not easy!!!!!

23.05.2011
Indian equities gained on Tuesday in a weak bounce, after skidding to a two-month low in Monday's trade. However, trading continued to be choppy as buyers lacked confidence about the global economy, uncertainty for foreign fund flows amid fresh concerns of euro zone debt.
The Sensex closed shop at 18011.97, up 18.64 points or 0.10% and the Nifty ended at 5398.70, higher by 12.15 points or 0.23%.

So, will the market pull itself ?
A fall below 5,400 levels on the 50-scrip broad based index is doubtful as the market may see mild recovery in the near-term. In fact, going forward, the nifty may claw back to 5,450 levels.
On the nifty, one needs to watch out the broad range of 5,100-5,600 levels; a fall below 5,100 would push the index to 4,700-4,780 mark.

Market is still unpredictable, we do no have strong pillars to be happy. Market is suppose to show some deep dips.

INTRADAY : BUY or SELL???

22.05.2011:  Nifty closed at 5386.55after a dip of 99.80 points. But question arise that what should a retail and small trader will do now? Is this the right time to buy or we will see some more dips in last week of May?

It is very clear that 5400 is going to break but we expected that level to break after the current settlement is over. In the new settlement it is difficult to buy those puts at that point of time the bears would strike. However as we have seen it has already broken, however I don’t expect it to fall substantially in the same manner till the settlement but there is no need to buy. We expect a substantial correction after the settlement. Hence, if at all you get some opportunity when you see higher levels, 30-50 points on the nifty, it is an opportunity to get out and not buy into the weakness.

Will 5300 will be new support level?

Usually, such kind of puts act as a support level. Also, owing to the new settlement one could expect weakness going there. The market doesn’t like pending follow up offer. Hence, if government is to divest 5% more, obviously it is going to go through the same route, unless the government finds a different kind of a market, doesn’t sell in this kind of market, however, goes out and issues stocks elsewhere. Hence it will also add to the overall weight.

Is resistance level of 5400 a place to go short or one should short at 5350 level in next trading session?

It is difficult to advice to short. If you are holding some stocks, get out of 60% app. and put 40% money on the side immediately and for that you don’t really have to wait for a particular level to happen as you are expecting the market to weaken. Hence, it would help you to sell at an early date. One can come back at more lower levels,if we found. As we are seeing some more pain in market.

Disclaimer: Investment in equity is subject to risk. Please consult your financial advisor before investing. This material is for learning and updation purpose only.

SILVER SHINNING IN OTHER'S FLUCTUATIONS.

With the phenomenal rise in the prices of silver over the last two years, especially the white metal touching the peak of Rs75,000 recently, it has caught the fancy of many an investor. Traditionally gold and silver are supposed to provide hedge against inflation.

Taking cognizance of investors’ mood and the market favouring precious metals, nowadays, financial planners are advising their clients to allocate around 10%-15% of their portfolio in bullion. It not only gives diversification to the portfolio but also helps in reducing volatility in portfolio.

As you know, returns on equity and currencies are linked to stability in the financial markets and geo-political stability. However, the prices of equity and bullion are normally inversely correlated with the above. This implies that the prices of silver and gold go up when there is volatility in equity and currencies of developed markets or if there is some political unrest in any corner of the world.

Only two major metals, gold and silver, are available as far as investment in bullion is concerned. Gold has various modes available for investment. You can invest in gold through jewellery or gold bars. You can also purchase gold coins from banks or jewellers. In addition to purchase of gold in physical mode you can also make your investments in electronic mode through gold ETF, Gold fund units or E-gold. However, compared to gold you do not have these many options available as far as investment in silver is concerned.

In the physical sphere you can invest in silver through silver utensils, silver coins or silver bars. Currently, banks do not provide the option of investing in silver, whereas you can invest in gold through your bank.

Till date not a single silver ETF or silver fund scheme has been approved by the Securities and Exchange Board of India (SEBI). So you do not have the option of investing in silver either through exchange traded funds or silver fund schemes of mutual funds. Presently, there is only one method available for you to invest in silver electronically i.e. through investments in E-silver products of National Spot Exchange (NSEL).

Investment in physical mode has various concerns like purity, safety and storage cost. You can avoid these concerns if you invest in silver through E-silver units of NSEL. This product is useful for those who want to benefit from volatility in the prices of silver as the purchase and sale of silver in this mode do not require physical handling of silver.

The objective of this article is to create awareness about methods of investment in silver and their pros and cons, and not to advice you on timing of making the investment.

Basic requisite

For making investment in silver through E-silver units of NSEL, you need to have a broking account with a broker registered with NSEL. In addition to this you also need to open a demat account for parking these electronic units. Please note that the existing broking account and demat account opened by you for the purpose of making transactions in equity, bonds, etc are not useful for making investments in E-silver units.

Units of trading

Silver can be purchased in a lot of 100 units of E-silver which is equivalent to 100 grams of silver. The payment and delivery mechanism is similar to the one followed in making investments in shares and securities on stock exchanges. The broker will charge brokerage fee for carrying out purchase and sale on your behalf, which is generally similar to what is being charged by your stock broker. Once you have paid for the units of E-silver purchased as per the payment settlement schedule, the electronic units of E-silver are credited to your demat account. The depository participant will charge you an annual charge for your demat account like your equity account.

Taxation

Since electronic units of E-silver are nothing but silver held by you in electronic format, you will be liable to pay capital gains tax in respect of any profits earned by you on sale of E-silver units. The capital gain will be treated as short-term in case you have sold the units after having held them for 36 months. In case these are sold after 36 months the long-term capital gains is taxable at the rate of 20%. Please note that there is difference between tax treatment of units of mutual funds and units of E-silver. The units in mutual funds become long-term on completion of 12 months whereas the E-silver units have to be held for a period of more than 36 months for being treated as long-term.

The applicable tax rate is also different. In case these E-silver units are sold within 36 months, the gain is short-term and will be included in your other incomes and taxed at the slab rate applicable to you.

If you purchase and sell silver in physical mode, you have to pay sales tax every time you buy or sell silver. However, sales tax is not charged on purchase and sale in electronic mode, thus you save on sales tax component also if you deal in E-silver instead of physical silver.

Physical delivery

You can take physical delivery of the units of E-silver lying in your account as and when you want. The physical delivery can be taken in specified denomination of silver bars only. For taking physical delivery of silver against your units you have to pay an amount of ¤150 per delivery irrespective of the quantity of silver involved in each delivery. In addition to delivery charges you also have to pay making charges for silver coins or bars. Presently, the exchange charges an amount of ¤100 for each coin of 100 grams and ¤200 for each bar of 1 kg or 5 kg.

In addition to the above charges, you will have to pay sales tax at the rate of 1% on the value of the silver.

BASIC TO ENTER IN WORLD OF EQUITY

If you are new and want to get start or try your hand in equity, it is higly advisable to learn some basic about it. People initially attract to equity market just because of extreemely good results, they found it a shortcut to earn higher rate of return on their investments, or a toll to became a millioner in a day, which unfortunately is NOT TRUE. It may happen with one out million people, in this case it is blindly a jackpot, which totally depends on destiny. So it is better to learn before earn. Its very important to know that it involves a great ratio of risk as well alongwith good returns. For good returns and to became a winning player you need to do alot of hard work as sports persons do before coming to actual game.

Research is the basic key in this; one who research more about market, industry or scrips earn more and stablize profits with lesser degree of risk invloved.