Causes of Stock Prices Changes

30 March

END OF THE DAY REPORT (28 April 2015):

Nifty above 200-DMA ends at 8286.

In the early trades it was looking like that equity markets is heading for another day down but sudden buying seen in the last trading hours led by private banking stocks like ICICI Bank and auto major Maruti Suzuki. Nifty manage to close above 200 DMA at 8286 while Sensex ends at 27396.

HEADLINES FOR THE DAY:

  • ICICI Bank moved higher after rating agency upgrade stock rating to buy.
  • WockPharma dips after recalling drugs in US.
  • Reliance Power arm terminates 3960 MW in Jharkhand PPA (power purchase agreement).
  • Oil Marketing stocks were in limelight; BPCL gains 4 percent.

KEY STOCKS FOR THE DAY:

  • Kaveri seeds dips after RBI told that for purchasing new equity shares investors would require prior approval of the central bank.
  • Rcom (Reliance Communications) moved higher after the company raised 300 million dollar from overseas investors.
  • Tata Elxsi gains after rating agency i.e. Motilal start stock rating with buy as well as ahead of Q4 results.
  • Power Grid told that company has acquires Gadarwara SPVs in tariff based competitive bidding. Stock ends flat.
  • Shares of shree cements moved higher on the positive news that company acquisition of JP Associate’s Panipat cement unit has been consummated yesterday.
  • FMCG stocks were under pressure on forecasts regarding the monsoons having increased fears of further decline in rural demand.
  • Bank of India gains as it is planning to raise up to 750 million dollar by way of bond issue under MTN Programme.
  • Tata Global Beverages gains as god Calcutta HC nod for the Scheme of Amalgamation of Mount Everest Mineral Water.
  • Amtek Auto gains after told that the company entered into a Share Purchase Agreement with Japan-based group companies i.e. Asahi Tec Corporation to acquire its various. The transaction for this agreement will be completed through the overseas subsidiary of the Amtek Auto.

RESULTS BLOG:

  • Maruti extends its previous day gain and hits fresh high today on the back of better than expected quarter numbers.
  • Geometric falls as much as after reported 80 percent decline in Q4 net profit stood at Rs 3.29 crore on quarterly basis.
  • Godrej Consumer reported 12.4 percent decline in Q4 net profit which stood at Rs 2655.70 million while net sales for the quarter increase 8.13 percent.
  • Telecom stocks like Idea and Bharti Airtel gains ahead of their Q4 numbers scheduled to be announced post market hours.
  • Granules net profit for the Q4 rose to 9.5% to Rs. 28.52 crore when v/s Rs. 26.04 crore on yearly basis. Total income rise by 8.7% at Rs. 317.22 crore v/s Rs. 291.84 crore.

SOME STOCKS FOR NEXT TRADING SESSION:

  • Geometric dips on the negative news, as company reported weak Q4 number, More selling pressure could be seen further. Sell below 125.50 its next support is seen around 123-119 while resistance 131-135.
  • Tata Steel EQ is trading near around its important resistance of 374.80, above it more buying could be seen. Buy above 374.80 its next resistance is seen around 381.90 while support 361.50.

GLOBAL MARKET:

  • European shares were under pressure despite fresh hopes for a breakthrough on Greece’s debt negotiations.
  • China dips led by Oil Equipment Services & Distribution, Media and Retailers stocks.

NEWS TO WATCH OUT:

  • Watch out for the Quarterly numbers of Ambuja Cements, Biocon, Dewan Housing, Federal Bank, HDFC, Hexaware Tech, Kesoram, Raymond, TVS Motor and RPG Life on Wednesday i.e. on 29th April 2015.

News Update: Nifty is expected to trade ion lower range today because of the weakness seen in global markets. World markets have kept their focus on US Federal Reserve’s meeting. Nifty looking weak on technical charts too and is expected to trade with high volatility until RBI steps in and arrest the fall of INR. Power Grid Corp got new projects of power transmission. Infy bagged a big project of House of Fraser, a UK based retailer. Telecom companies could see some volatility as they have given assurance to the telecom ministry regarding bringing in transparency in the payment and billing system. Today’s earning data: Bharti Airtel and Idea Cellular are scheduled to announce Q4 results today.

Reason of Stock Price Fluctuation

Stock prices fluctuate on every movement by the essence of market position. Most of time changes in share price depend upon supply and demand, if demand of particular share more and selling also in good condition than its price will be high and vice versa. On the other hand, if many people sell a stock than buy it, here there would be bigger supply possible than requirement, and the stock price go down.

Stock terms are not difficult to understand, analysis of supply and demand is very easy process. The main queries arrives always in the trader’s mind that what is complex to know is why the people like a specific stock and sometimes they don’t want to select another stroke. Generally this comes down to analysis about what reports are good for a company and what reports is bad and can make a negative effect on share price. There are various solutions to this problem and you can ask to the investor for their own ideas and approach.

Price define Company’s Status

The price change of a stock show market value of the company, if price going to upper position that means company is on the growing position and price of stock going to down that mean company is in loss. Don’t associate company’s value with the stock value. The company’s value show market capitalization of the company, market capitalization is calculation in which is the stock numbers multiplied by the stock price. Market capitalization demotes the market report of the company, with the aid of this information we can make perfect strategies and apply for smart business trading.

The most important issues that influence the company’s value, which are company’s earnings, dealing with other companies, and supply or demands of the company’s products etc. Earning is main criterions on which company may be evaluated, we can also call it as the profit of the company, and without profits no one survive. When a company is on non active condition, it will be staying in business. Public sector companies submit their profit reports four times in a year this time is called a quarter. On Wall Street, both the bulls and bears are in a continuous effort. When you haven’t known about these stock terms already, you definitely will as you start to invest. At this time Wall Street watches, are referred to as profit period.

The Explanation about Bulls

A bull market is the situation which shows everything in the financial system is a great position, when people are searching jobs, gross domestic product (GDP) is raising state, and stocks are also rising. Sometimes choosing process of stocks throughout a bull market is very easy task because all things about stock are going up. Sometimes bull markets can’t last eternally though, and most of times they can lead to unsafe condition when stocks turn into overrated. When a trader is confident and considers that stocks will go positive, and then they are also known as “bull” and have a “bullish outlook”.

The Explanation about Bears

A bear market situation is totally opposite to the bull market position. A bear market condition is occurring when the economy is on a bad situation, a recession is coming and stocks prices continue down. Bear markets; build it harder for investors to select beneficial stocks. One resolution of these conditions is to make selling when stocks are going down using a method is called short selling. One more strategy is to stay on the subsidiary until you consider that the bear market is coming to its closing stages, only initiating to buy in expectation of a bull market. When a trader is distrustful, think that stocks are turning to drop, and then the trader is called a “bear” and supposed to have a “bearish view”.

Factors of the Price affecting

If a company’s outcome in surprise form that means they shows better performance than expected, the automatically share price jumps up. On the other hand, if the results make disappoint, that means report gives worse result than expected, then the price automatically will go down. Everything depends on the financial report, every share expert always makes a deep analysis of these quarterly, half yearly and annual reports, and make own concepts for profitable trading and we can apply these concepts as a tip, for stock trading, Stock Tips and for option trading, Option Tips.

So, why do prices of stock prices alter? The greatest reply to this question is that nobody actually knows certainly because here are many reasons may be possible for price change and analysis for total reason it not be possible. But some traders think that by past price movements, they can predict stock movement and sometimes their prediction is accurate. First of all traders should choose a particular segment and than a particular company, after that all the information as possible as related to the company should collect and make own database. Most of trader always takes a big investment after a loss that would be wrong attempt because they think they can cover their loss. For different market, different planning should be used, if you want to invest in Currency trading; you need a perfect Currency Tips so the level of risk will be down.

The essential things to know about this subject are as follows:

  1. On the primary level, stock price use to determine the supply and demands in the market, with the help of these we can analysis status of supply and demands of the products.
  2.  Practically, earnings are the valuation of a company and these valuations influences to the traders, however, there are many other factors by which investors predict stock price and its future price. Keep in mind; here it is investors’ emotion, thoughts,  and prospect that eventually influence the stock prices
  3. There are various premises available that attempt to indicate the way stock prices, progress the way they perform. Unluckily, there is no one theory be able to show everything. But in case of index trading, you need special Nifty Tips and Sensex Tips so that you will become profitable traders.

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