Markets tanks more than one percent today on global cues;
Extending its slide for the fourth straight session Markets ended lower as rupee slumped to nearly two-year lows in the wake of Yuan devaluation and logjam in Parliament continued investors were nervous. Nifty, Sensex tanks more than one percent in today’s trading session and both the index ends below their crucial mark that is of 8350 and 28000.
Indian Currency rupee thanks to a 2 year low following China’s devaluation of the Yuan for a second time this week. Weakness in the local equities fueled the decline.
HEADLINES FOR THE DAY:
- Shares of Coal India tanks on government stake sale plan.
- CNX IT Index moved higher in an negative market as rupee hits 2-year low.
- KEC International today reported that the company wins new order for Rs 8.38 Billion.
- Government claims Rs 6.4 billion from Nestle India in the class action suit.
- IndusInd Bank today said that the bank had raised Rs 50.81 billion from preferential issuances and QIP.
KEY STOCKS FOR THE DAY:
- Rajesh Exports hit fresh high today in an negative market as Gold gained for a fifth session in a row. stock opened at 545 and made a fresh high of 593.90 on NSE.
- Nestle India shares dips on the negative news of Maggi that it has exceeded lead content, violated labeling rules.
- Metal shares dips as China’s yuan hit a four-year low, Hindalco, Vedanta and Coal India plunged between 5-8%.
- IDBI net profit for the first quarter up by 27 pct stood at Rs 135 crore from Rs 106 crore on yearly basis on the back of rise in NII.
- India cement Q1 net profit at Rs 40.10 crore against net los of Rs 2.96 crore compared on yearly basis.
- Ashok Leyland hits fresh high on NSE after company reported profit in this quarter against loss in previous quarter.
- Oil India reported 9 percent fall in Q1 net profit which stood at Rs 775 crore on the back of cr lower crude prices.
- Aditya Birla Nuvo net up by 50.42 percent at Rs 396.66 crore company had posted net profit of Rs 263.7 crore for the same quarter last year.
- GE Shipping reported robust Q1 numbers; profit for the last quarter up by 45 percent which stood at Rs 323.6 crore led by strong operational performance on low fuel cost despite lower other income.
CALLS FOR NEXT TRADING SESSION:
- LAOPALA EQ is consolidating on daily charts heading towards fresh high, More buying could be seen if able to give breakouts as well as sustain above it. Buy above 546.50 targets 552/557.50/563 SL 540.90.
- DEEPIND EQ tanks for the fourth straight day after hitting new high, More selling pressure could be seen in the stock. Sell below 138.30 targets 136.90/135.60/134.20 SL 139.70.
DAILY CALLS UPDATE:
- NIIT Tech EQ BUY CALL 1ST TARGET ACHIEVED (Buy above 530 targets 535.30/540.65/546 SL 524.50)
- GATI EQ BUY CALL DIDN’T EXECUTED (Buy above 188.50 targets 190.40/192.30/194.20 SL 186.50.)
NEWS TO WATCH OUT:
- Watch out for the Quarterly Ajnata Pharma, DLF, Essar Ports, Guj Gas, IOC, IRB, Jubilant, KSCL, NBCC, La opala,MMTC, ONGC, PC Jeweller, Tata Power, Rajesh Exports etc on Thursday i.e. on 13th Aug 15.
INR has weakened because of Yuan’s devaluation that happened yesterday. China has depreciated its currency value to support its exporters; China is still an export oriented economy. China’s action will make our product expensive and Chinese products cheap which is going to hurt India’s economy too. In a response to China’s action everyone is expecting that the central banks like RBI, US Fed, Etc, across the world will devalue their currency to fight with the Chinese action in the forex market. This anticipated action has made the USD more expensive for us at present, as a result everyone wants to buy USD at current rates leading to fall in the value of INR and markets. Export oriented sectors will shine including IT and Pharma.
China wants to strengthen its economy which is led by its exporters. And every time domestic currency loses against the foreign ones, local producers gains as their sale proceeds goes up without increasing the actual exports in terms of demand or volume. This eventually puts pressure on the exporters of other countries as their products becomes relatively expensive and as a result of that they get thrown out of the market because of the availability of the cheap Chinese products in the same globalized market.
This action has also made gold go up. However, gold still does not looks like holding its current levels for a very long time and is most likely to take a sharp dip. This spike in gold is a sudden reaction seen because of the action taken by the China. Crude on the other hand is in continuous downside because of over supply. Iran has also started producing and joined the “already over supplying group” i.e. OPEC.
To control the depreciation in INR, RBI started selling USDs in the market. This again is a temporary action as RBI could not resort to such action on a permanent basis; USD sell off reduce the Forex Reserve of the country which otherwise acts as a buffer in terms of Current Account Deficit scenario.
When you are investing in the stock market, a general question arises in your mind that were from we should begin? More importantly, how should we choose the stocks for correct invest? Selecting stocks can be startling, but as long as you should have proper information and instrument, so that you can self-confidently pick right stocks. Obtain information from the stock companies themselves and stockbrokers, the SEC or the Bureau of Labor Statistics. Either way, you have many techniques and options for selecting stocks and make effective on Stock Tips and Equity Tips. By which this technique we can choose a correct stock, we are describing below.
1 Understand how macro analysis works.
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2 Collect data or access a graph.
The most significant macro pointer contains: GDP (gross domestic product), PPI (producer price indices), CPI (consumer price indices), interest rates (Fed Funds, prime rate, etc.), Unemployment rate, inflation rate, and balance of trade. You can either collect the history of data into Excel or entrance an interactive graph using online in.
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Observe for the broad direction that the numbers and data are moving in and any model that may come out. Collect into account and use it, the historical data, current updates, and news they are very beneficial for our content when we take the first step in trading. There are many websites will have a different series of data already transformed to percent for either time over time. If not, you can analyze the percentage of transform for a pointer. For instant, divide the supposed GDP (in numbers) of one year by the charge from the earlier year. This provides you the GDP enlargement ratio for Year over Year.
4 Select your stocks.
Trade in a broad based stock or stock different might be the most suitable with this technique of analysis. Choose an effective group of stocks that influence the development of the broader economy and observe an index like SENSEX and Nifty, convert information into index tips such as Nifty Tips and SENSEX Tips. This method guides you to utilize the growth of stocks in the Indian market naturally without any risk about your money on exciting stocks. Recognize that macro technique doesn’t particularly assist you in deciding which single stocks you have to buy. Although, you must understands the performance and effects of the economy. If you may want to purchase stocks when you guess the economy will be getting better and sell when you consider it will get worse.
5 Fundamental Studies.
To utilize fundamental study, you need to a special study about what you consider the stock is actually worth, or its expected value, this prospect also applied for forex trading and with the help of fundamental analysis we can make a profitable Forex Tips. This won’t essentially be what the stock is at present being dealt. When your analysis the value is higher than the current price, then buy. If you consider the value is lesser than the current stock price then sell. Don’t be supposing to clear results. The future value is subjective and other traders often imagine to different results.
2 Examine at the variables.
To estimate the current and future position of a company, here are a necessary few variables to look into, so that you make a right decision in selecting. Before taking any step, traders should evaluate all the criteria.
P/E (Price to Earnings Ratio) -> it is a negative ratio may propose that the company isn’t beneficial
EBIDTA (Earnings before interest, depreciation, tax and amortization) -> this is a representation to a net income with much of the accounting previously taken into consideration.
Free Cash Flow -> these shows, special money that a company has to pursue for opportunities so that stock’s value could be increased.
Debt Ratio -> This is a ratio of the total debts of requiring assets for a company. This ratio helps in trading; we can check all the debt of the company and guess its future state.
3 Collect the required information from the Securities and Exchange Commission (SEC).
You can get the necessary information in the company’s SEC filings or earnings report. Regulate a company data by contacting the Investor Relations area of the company. Information of all the contract of the company will be accessible on their website, so that investors may collect all the require data and information of all dealings of the company with companies, which also may permit a link to download the company reports.