Markets end in red; Banks, Capital Goods & Metals drag :
It was a fourth consecutive session where indices consolidated and unable to close above their important resistance levels. It is evident that Nifty is facing stiff resistance of the 200 day SMA and is hovering around it. However, it managed to close the week on a strong note. Now, bulls may become active above 8430 while 8330 is seen as strong immediate support.
HEADLINES FOR THE DAY:
- Anant Geete,Minister of Heavy Industries and Public Enterprises stated that govt would consider further increases in Import duty on steel within a week.
- The aviation ministry approved the proposal to set up 2nd airport in NCR.
- IT stocks up as outsourcing company Accenture raised full year revenue guidance for the 3rd time.
- GVK Power & Infrastructure rose 11% to launch an IPO of Rs 3500 cr of its airport arm.
- National Buildings, Construction Corporation (NBCC) surged approx 6% on receiving project from the Delhi Development Authority (DDA).
KEY STOCKS FOR THE DAY:
- Shares of Sunil Hitech (SHEL) surged as it commissioned its 1st solar project of 5MW at Solapur.
- SRF hits lifetime high in an otherwise market and rallied after the Govt extension of anti dumping duty on Nylon tire cord fabric.
- Wespun Corp jumped for a second day to hit 52 week high after promoters increased their stakes through open market purchase.
- Mastek rallied up to 19% on merger of Majesco (US subsidiary of Mastek) with Coverall technologies.
- PVR down after report of 20-40% hike in entertainment tax on cinema halls in by Delhi Govt.
- India Cements rocketed on news of Fund buying by Derive Investments around 2 mn shares.
- Rcom jumped more than 6% on the back of the huge block deal.
- PC jeweler surged approx 4% on back of opening a new showroom in Haryana.
- Gail lost around 3% as Credit Suisse maintained its underperform rating on the stock.
- Tata Motors up with a block deal of around 2lakh shares.
- Nestle gained after report that that its R&D is working on product development and alternative options.
- PNC Infratech jumped after the announcement of its toll collection on a Gaziabad – Aligarh section of NH91.
- Alembic Pharma got approval for anti-inflammatory drug Celecoxib.
CALLS FOR NEXT TRADING SESSION:
- EVEREADY after reversal candlestick pattern on highs on daily charts showed bearishness in the previous session and is expected to continue if sustained below the lower consolidation of 327. Sell below 327 targets 323.70/320.50/317.30 sl 330.40.
- NBCC surged in the last two sessions and closed strongly near to the resistance levels on the daily charts and is expected to surpass it. Buy above 934.50 targets 943.50/953.50/963.50 sl 924.50.
- Chinese stocks posted their worst losses in 7 yrs and Shanghai lost 7.4% of high risk margin trading and uncertainty over monetary Policy also aided in negative sentiments.
- Hong Kong also traced weakness, Hang seng was down approx 2%, while Japan’s Nikkie ended flat losing 0.3%.
- European Shares opened on lower levels as uncertainty is prevailed in Greece to deal with its creditors to avoid the debt default which kept the investors cautious.
- Australian shares fell for the second straight session led by sell off in banks again due to Greece issue.
The Basic Rules of Stock Trading
If you’re going to participate in a stock trading, then you should follow some golden rules to assist you to maximize your success in the form of profits because before start trading you should have some strategies and discipline otherwise you can be wandering from your way.
- Don’t apply all your investment at once: The nature of the market is very fast-moving and fluctuating, here you must have some patience and wait for the right times because good opportunities come up all the points. Always keep in mind some cash should be on your hand to take benefit of those opportunities.
- Have a plan: Always try to become smart traders who have always a full proof plan or strategies to trading, if you have predetermined plan according your trade, then you cut losses or receive big profits because you understand your drawback point. Perfect strategies need proper knowledge and guidance. Sometimes traders need expert tips like as Stock Tips and Nifty Tips when they confused to choose the right one.
- Understand that got profits are not a sin: Sometimes, a bird in the hand is significant two in the bush. Stock markets can be turned around comparatively and rapidly. If you have a proper stock place which sitting there with a flat return, it can’t damage to obtain the income. This action provides you cash for the subsequently opportunity.
- Learn hedging techniques: This technique is very helpful when you’re bullish then it doesn’t show that you can’t put in a bearish position as well. Basically Hedging techniques secure your trading when the market fluctuates against you.
- An analysis, which events move markets: examine the market and determine what kind of events occurs to move it. Expert short-term traders always keep one eye on their trading position and the other eye on what’s going on in the financial market of the world. Always keep well-versed by frequently reading economic publications and websites.
- Verify the stock’s trading Record: Chart and Diagram related stock data indicate you how a specific stock has moved in recent time. Always search and observe any seasonality or consistent patterns that may assist you to analysis future movements?
- Apply stop-loss and limit orders: Always use the trading tolls, stop loss and limit order make help to you for restricting the loss, on the other hand trade orders is an essential part of the strategy. When you set your target, then you should set stop loss.
- Apply discipline and patience versus passion and fear: Elements of the human equation in the global financial markets are fear and greed that can become unreasonable. Instead of precipitating the group, watch and analysis them to provide you a benefit in evaluating the price of stock movements. Stick with your strategy and employ rule, regulation and patience.
- Reduce transaction costs: Always keep in mind that trading is normally activity and short-term, contract costs are considerable. The real meaning of active trading can be lots of brokerage costs, even in this fusion of Internet-based brokerage industries. Consequently, stock traders who trade normally should store around for brokerage companies that charge low costs.
Furthermore, short-term investors effort to short-term capital profits, which are paid at a maximum rate than long-term contract. In option trading, the trader puts their target with expert Option Tips so that they can make modified their trade.
Recognize the beta of a stock: The instability of a stock is a significant concern for stock traders. As more unstable a stock is, the higher its ups and downs are. Thus, investors should frequently verify the stock’s beta. Basically beta is a statistical calculation of how unstable a specific stock is compared to a market standard.
How is it calculated?
We take an example for better understanding. The S&P 5000 is provided a beta of 1. Beta of 2 in stock is measured twice as unstable as the index. Furthermore, if the index drops by 10%, the stock in query has the possible of dropping by 20%.
Smart traders searching for speedy movement look for high-beta opening. Generally a stock’s beta can be obtained on different financial websites.
Read and examination from the top traders: Learn from the great resources out there, such as major websites, news channels and magazines and books. You can read top class trading books and make own strategies for every type of trading segments like as Stock Tips, Currency Tips and Commodity Tips. “Reminiscences of a Stock Operator” by Edwin Lefèvre and Jon D. Markman is an example of trading book.
As we know trading can be very uncertain, you should update with the market and collect information as much as possible because knowledge is the main tool in the stock market, and you must be expert in use this tool. Always remember, don’t apply your loan money or retirement fund for trading. Trading should only be completed with risky assets.