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  • Best Stocks For Long Term Investment

    Best Stocks For Long Term Investment

     

    Today we will discuss the best stocks for long term investment. These stocks can give you a better return. Don’t miss the chance just go & invest in these stocks. These stocks are fundamentally & technically strong stocks. Let’s analyze some best stocks for long term investment.

        1.RELAXO FOOTWEARS

    Relaxo share analysis for long term

    Relaxo Footwears Limited is an Indian multinational footwear manufacturer based in New Delhi. It is the largest footwear manufacturer in India in terms of volume and second-largest in terms of revenue.[4][5] The company makes products under 10 brands including Flite, Sparx, Bahamas and Schoolmate.

    Market Cap  ₹ 23,716 Cr.

    Debt  ₹ 174 Cr.

    ROE  14.0 %

    Sales growth  12.5 %

    Promoter holding  70.8 %

    Stock P/E  102

    Industry PE  55.1

    ROCE  18.0 %

             2.ALKYLAMINE

     

    ALKYL share analysis for long term

    Incorporated in 1979 by Mr Yogesh Kothari, Alkyl Amines is a leading manufacturer of aliphatic amines in India. Aliphatic amines are products derived from Ammonia (NH3) by displacement of H2 in the Ammonia molecule by other radicals (R) such as Methyl, Ethyl and Propyl.

    Market Cap  ₹ 13,531 Cr.

    Debt  ₹ 23.3 Cr.

    ROE  25.2 %

    Sales growth  24.2 %

    Promoter holding  72.0 %

    Stock P/E  60.2

    Industry PE  22.1

    ROCE  33.0 %

           3.ULTRACEMCO

     

    ULTRACEMCO Share analysis for long term

    UltraTech Cement Limited is an Indian cement company based in Mumbai, and a part of Aditya Birla Group. UltraTech is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India with an installed capacity of 116.75 million tonnes per annum. It is the only company in the world to have a capacity of over 100 million tonnes in a single country, outside of China.

    Market Cap  ₹ 151,047 Cr.

    Debt  ₹ 11,299 Cr.

    ROE  15.5 %

    Sales growth  17.6 %

    Promoter holding  60.0 %

    Stock P/E  20.6

    Industry PE  17.2

     

    Also Read | List Of Best MidCap Stocks To Buy Now In India

     

     

  • 10 things you should know about stock Market

    10 things you should know about stock Market

    1. Do Not Borrow Money to Invest in Stocks.

    One other mistake new investors make is utilizing borrowed funds to pay for shares. That is nearly at all times a horrible concept that may result in disaster. Once you borrow cash to spend money on shares, you might be inviting one other particular person or establishment which can not have your greatest curiosity at coronary heart into the decision-making course of. Cease the entire nonsense about “good debt” and “dangerous debt” and notice that threat discount is usually extra vital than your compound annual progress fee.

    2. Know What You Need, And What You’re Paying For.

    The evolving brokerage business is a beehive of competitors to supply the most recent and biggest buying and selling choices, however for many buyers the essential necessities could be discovered wherever.

    Ensure you know the kind of purchase or promote order you are coming into. A market order, as an illustration, will likely be executed as quickly as doable, regardless of the prevailing market value; a restrict order against this will solely full the transaction inside value parameters you have established.

    3. Different brokerages have different strengths and weaknesses.

    Naturally, totally different brokerages have very totally different strengths and weaknesses. Some have very excessive charges on transactions however will provide a ton of assist to particular person buyers. Others may provide decrease charges however be very hands-off. Some may cost nothing for sure sorts of transactions (often if you’re shopping for the corporate’s personal investments, which I’ll clarify beneath).

    What brokerage do I take advantage of? I take advantage of Motilal Oswal. That is largely as a result of I make investments my very own cash in it for which they don’t cost any excessive transaction charges. You’ll be able to examine Motilal Oswal brokerage companies in my subsequent weblog.

    4. The Chart

    Studying to learn a chart is a talent that takes time, however primary chart studying takes little or no talent. As famed investor Dennis Gartman says on a regular basis on CNBC, if an funding’s chart begins on the decrease left and ends on the higher proper, that is a very good factor. If the chart is heading down, keep away and do not attempt to determine why. There are literally thousands of shares to select from with out choosing one that’s shedding cash. If you happen to actually imagine on this inventory, put it in your watch checklist and are available again to it at a later time.

    There are lots of individuals who imagine in investing in shares which have scary wanting charts, however they’ve analysis time and sources that you simply most likely do not.

    5. Buy Low, Sell High.

    Sounds so easy proper? And but investing is a uncommon a part of our monetary lives the place issues getting cheaper seems like a nasty factor. Few shoppers are lamenting cheaper costs on the pump amid the collapse in oil costs over the past yr and a half, but a reasonable market fall is handled because the dying knell for the bull market.

    These are information that aren’t mutually unique: the present bull market will finish, and over nearly any long-term horizon shares have confirmed to be useful investments that usually grind increased.

    6. Trade what you see, not what you Think.

    As a dealer, you could have most likely learn that you should management your feelings and give attention to logic and objectivity as an alternative of giving into the impulses of greed, hope, and concern. Nevertheless, it’s one factor to know you shouldn’t commerce emotionally and one other to truly know HOW to NOT commerce emotionally and how you can implement this information.

    Whereas “buying and selling what you see” describes the optimum state of affairs during which merchants make goal choices primarily based on sound value evaluation, “commerce what you assume” is the precise reverse and it’s how nearly all of merchants make their buying and selling choices – pushed by feelings, impulses and wishful considering.

    As a way to turn out to be a persistently worthwhile dealer it’s needed to plot a plan utilizing our extra logical and goal frontal lobe part of the mind, which is the latest space of the human mind and permits us to plan, motive, and comprehend sophisticated concepts.

    By studying to commerce what we see, and never what we expect, we will ensure that we’re working on logic and objectivity as an alternative of emotion.

    7. Watch out for red flags.

    There are a number of pink flags to look at for when selecting shares. Simply to call a number of, rookies ought to keep away from the next sorts of shares

    Corporations that do not earn any earnings

    Shares whose share costs appear to at all times drop (have a look at the three- or five-year chart)

    Corporations which are beneath investigation

    Corporations with a lot of debt

    Shares with current dividend cuts, or an unstable dividend historical past

    8.  Don’t put all Eggs in one basket.

    It is a piece of recommendation which signifies that one shouldn’t focus all efforts and sources in a single space as one may lose every part.

    Don’t pull all of your eggs in a single basket; means don’t threat every part . If you happen to maintain all of your egg in a single basket, if the basket will get stolen or somebody drop the basket then you find yourself shedding all of your eggs. However however in case you had stored your eggs on a number of baskets and if one had been dropped by somebody or received stolen. Then you definately would have free solely a few of your eggs not all.

    This proverb can be relevant in stock Market.

    If you happen to make investments your total cash on one shares, and if the share goes down, it can take you down. That’s the reason it’s suggested by no means totally depending on one share. As a substitute make investments on a number of shares. Thus if one goes down you lose few cash not all.

    9.  If you cannot control your emotions, you cannot be in share market.

    Unless you can watch your stock, holding decline by 50% without becoming panic, you should not be in stock market.

    Don’t let feelings cloud your judgement. Many buyers have been shedding cash in stock markets because of their lack of ability to manage feelings, significantly concern and greed.In a bear market, however, buyers panic and promote their shares at rock-bottom costs.

    Greed augments when buyers hear tales of fabulous returns being made within the stock market in a brief time frame. “This leads them to take a position, purchase shares of unknown corporations or create heavy positions within the futures phase with out actually understanding the dangers concerned.”

    As a substitute of making wealth, these buyers thus burn their fingers very badly the second the sentiment available in the market reverses. In a bear market, however, buyers panic and promote their shares at rock-bottom costs. Thus, concern and greed are the worst feelings to really feel when investing, and it’s higher to not be guided by them.

    10.  Buy right and hold tight.

    In share market before buying anything one should have a total knowledge about it, because right buying is one of the most important factor in share market. Before buying any share there are certain parameters one should look. Buying right in shares means you have to see the Fundamental Analysis should be strong.

    It should be technically strong and its should up trending. One should also see that the company must be listed at least from last 5-7 years. Also should check the dividend ratio of last few years.

    And once this all parameters are in favor, the shares are purchased the the role come of hold tight. Try to hold the shares for longer time to take the benefits of it. Just because the rates are falling or rising that dosen’t means it’s a right time to sell it. We should have a control on it and try to hold the shares. Selling of shares should be depend on it’s graphs, charts & company condition and not the price. Yes, price may also be one of the reason for selling the shares, but should not be the only factor.

  • How one can Retire with no less than $1 Million {Dollars}

    How one can Retire with no less than $1 Million {Dollars}

    Warren Buffett is acknowledged because the best investor of all-time due to his self-discipline and conservative method to investing.

    As an alternative of specializing in the quick time period, Warren Buffett focuses on the long run. He additionally has a low urge for food for threat, shopping for corporations that energetic merchants would discover boring past all perception.

    Buffett as soon as described his funding type as, “I’m 85% Benjamin Graham.” (Benjamin Graham is named the godfather of worth investing. His e book, The Intelligent Investor, is revered as a traditional on Wall Avenue. See additionally, 5 books Must Read for Investing ).

    To dive deeper and totally respect Warren Buffett, I like to recommend studying his annual shareholder letters alongside the e book, Buffett: The Making of an American Capitalist.

    This publish will deal with methods to construct a easy Warren Buffett portfolio, so let’s get to it.

    Passive Indexing Advantages

    There are 5 key advantages of setting up a Warren Buffett portfolio that’s passively managed:

    1. You may sleep properly figuring out you might be following the recommendation of the best investor of all-time, Warren Buffett.
    2. By shopping for and holding for many years whereas reinvesting dividends, the facility of compounded returns is realized.
    3. With passive indexing in low price index funds, you might be maintaining charges as little as humanly potential which maximizes returns.
    4. You’re maximizing tax effectivity by shopping for and holding for many years as a substitute of days (solely related when investing in a private portfolio versus a retirement account).
    5. The portfolio is straightforward to implement and straight-forward to comply with.

    Passive Administration Portfolio Holdings

    Warren Buffett’s advisable passively listed inventory portfolio is definitely quite simple. The truth is, there are solely two holdings: the S&P 500 and a short-term US authorities bonds fund. Relying on how younger you might be whenever you begin investing, it might simply be the S&P 500 (extra on allocation under).

    What are the symbols for these two Vanguard funds? You should buy an ETF model or a mutual fund model. I personally use the ETF model, however both one works.

    1. S&P 500 index fund – ETF image VOO (no minimal), Mutual Fund symbols VFIAX($10,000 minimal), VFINX ($3,000 minimal)
    2. Brief-term authorities bonds fund – VFIRX ($10,000 minimal), VFISX ($3,000 minimal). For an ETF, take into account VGSH.

    Buffett, 85 years younger, revealed his easy portfolio mentality in his 2013 annual letter to firm shareholders (emphasis mine),

    My recommendation to the trustee couldn’t be extra easy: Put 10% of the money in short-term authorities bonds and 90% in a really low-cost S&P 500 index fund. (I recommend Vanguard’s.) I consider the belief’s long-term outcomes from this coverage shall be superior to these attained by most buyers — whether or not pension funds, establishments or people — who make use of high-fee managers.

    Buffett supplied comparable recommendation after Lebron James requested him what he ought to do together with his personal investments,

    “By way of the remainder of his profession and past, by way of incomes energy, [he should] simply make month-to-month investments within the low-cost index fund,”The rationale Buffett recommends Vanguard funds over different suppliers is as a result of the funds have the bottom prices respectively for the devices they’re designed to comply with.

    For instance, VOO and VFIAX have a yearly expense ratio of simply 0.05% (VFINX, with its decrease minimal, fees 0.17%). For each $10,000 invested, .05% is a whopping $5 per 12 months in administration charges.

    Right here’s a Buffett quote on low prices and maintaining investing easy,

    Each people and establishments will continuously be urged to be energetic by those that revenue from giving recommendation or effecting transactions. The ensuing frictional prices could be large and, for buyers in mixture, devoid of profit. So ignore the chatter, maintain your prices minimal, and spend money on shares as you’ll in a farm.

    What’s the S&P 500?

    The S&P 500 is probably the most broadly adopted index on the earth. From Wikipedia,

    The Normal & Poor’s 500, typically abbreviated because the S&P 500, or simply “the S&P”, is an American inventory market index based mostly in the marketplace capitalizations of 500 giant corporations having frequent inventory listed on the NYSE or NASDAQ. The S&P 500 index parts and their weightings are decided by S&P Dow Jones Indices.

    If you wish to spend money on the US as an entire, the best technique to do it’s to purchase a fund that replicates the S&P 500.

    The truth is, each Warren Buffett and Jack Bogle (founding father of indexing and Vanguard) consider the S&P 500 is all it’s worthwhile to have a worldwide publicity. It is because the S&P 500 generates simply over 50% of its revenues domestically. The remaining comes from abroad.

    SP 500 company sales worldwide 082715

    $1 Million in 31 Years Utilizing an IRA

    For instance simply how highly effective passive indexing is utilizing Warren Buffett’s easy portfolio, I constructed a primary spreadsheet that replicated somebody placing $5,500 into an Individual Retirement Account (IRA) right here in the US and investing your entire principal into Vanguard’s S&P 500 ETF, ticker image VOO.

    The Vanguard S&P 500 ETF (VOO) has an expense ratio of simply .04% per 12 months, as famous above, which implies the fee to carry the ETF fund can be solely $40 for each $10,000 invested.

    Traditionally talking, the S&P 500 has returned 9.6%, on common, per 12 months. So, make investments $5,500 annually in a tax-deferred IRA with VOO, and after 31 years you’ll have an estimated $1,000,000.

    Bear in mind, your $5,500 funding annually is pre-tax, which ought to make it even simpler to avoid wasting. The truth is, I at the moment worker this actual technique for my spouse’s Roth IRA (post-tax particular person retirement account).

    One last notice right here is that when you might be age 50 or older, you’ll be able to contribute an additional $1,000 per 12 months (generally known as “catch-up” contributions), so $6,500 as a substitute of $5,500.

    Greatest Dealer for Following Warren Buffett

    Which on-line inventory dealer must you use to construct your Warren Buffett portfolio? The reply is straightforward. It doesn’t actually matter which dealer you employ.

    Since you might be investing for the lengthy haul and shall be accumulating a big stake over a few years, dealer commerce commissions will rapidly turn into negligible, even when shopping for shares each month as Buffett recommends.

    The largest benefit of a Warren Buffett portfolio is what we mentioned earlier, the tremendous low prices. Bear in mind, for each $10,000 invested in Vanguard’s S&P 500 ETF VOO or mutual fund VFIAX, .05% is barely $5 per 12 months in administration charges.

    Whichever dealer you select, reinvesting the dividends by a DRIP (dividend reinvestment plan) needs to be a free possibility (that means the net dealer is not going to cost you to mechanically reinvest the dividends and purchase extra shares). Our sister web site StockBrokers.com offers a useful gizmo for evaluating brokers aspect by aspect.

    One last possibility, go direct to the fund supply and use Vanguard.

    I personally maintain VOO in ten totally different on-line dealer accounts at the moment (I do that as a result of I head analysis for our sister web site StockBrokers.com). Level is that this, it doesn’t matter the place you purchase. Simply purchase and maintain till retirement.

    Take into account a Robo-Advisor for Automated Investments

    Maybe you wish to comply with Warren Buffett’s core principals of taking a long run method, maintaining it easy, lowering charges, and embracing passive indexing, however don’t wish to really place the trades your self.

    If that is you, then it would be best to think about using a robo-advisor as a substitute of buying and selling by yourself. For extra on robo-advisors and automatic investing, read this information.

    Conventional Asset Allocation by Age

    Whereas Warren Buffett favors holding a easy 90/10 portfolio of the S&P 500 (shares) and short-term treasuries (bonds), this isn’t what a conventional advisor will advocate.

    To find out a conventional portfolio that’s “correctly diversified”, you first wish to take a look at your age and goal retirement date. For this part I’m referencing the biggest asset supervisor on the earth, Vanguard, which has a staggering $Four trillion underneath administration.

    If you’re younger, it is strongly recommended to take extra threat and make investments extra closely in shares vs bonds to maximise returns. As you age, you then wish to enhance your bond holdings whereas lowering your inventory holdings to decrease threat. In spite of everything, you might be on the brink of retire.

    Right here’s a superb cheat sheet from Vanguard on the totally different allocations and historic returns. (IMPORTANT: The bond returns used under are a mixture of each period whereas Warren Buffett makes use of short-term treasuries. That is equally true with the inventory returns. Thus, the returns estimations are NOT a real 1:1 illustration of Warren Buffett portfolio.)

    Vanguard allocation

    To find out allocation based mostly on age alone, Vanguard recommends beginning with a 90/10 (shares/bonds) combine and sustaining it till you might be 20 – 25 years out of your desired retirement age. From there, you slowly modify your allocation each few years till you attain retirement during which you ideally can be allotted 40/60 (shares/bonds).

    For instance, in case your goal retirement age is 65 and you might be 30 like me, then you definitely would theoretically desire a 90/10 combine. When you flip 40, you can scale back to say 80/20, or wait a number of years to start out transitioning. At age 60, you’d wish to be round 60/40 or 50/50.

    Formulation apart, Warren Buffett made it clear that for his property he has instructed a 90% S&P 500 / 10% short-term gov bonds combine allocation. This might be counter-intuitive to the above formulation and breakdowns of correct allocation, however that’s Warren Buffett for you.

    Ultimately, your plan for retirement must be distinctive to YOU. Your very best allocation combine might not match right into a broad, simplistic mildew.

    There are a slew of things that come into play: your present revenue, present financial savings fee, goal retirement age, and private objectives for retirement to call 4 huge ones.

    I’m not an expert advisor, nor do I’ve any curiosity in changing into one. That stated, hopefully the above can not less than assist to supply a easy information to make use of as a place to begin.

    Goal Date Funds are One other Winner

    If you wish to spend money on a historically diversified portfolio by age, the best answer is to purchase a Goal Date Fund (TDF).

    With a goal date fund (Vanguard calls them goal retirement funds), you merely purchase one low-cost mutual fund and all the things portfolio associated is completed for you mechanically by the years.

    Vanguard has a unbelievable free software to find out what fund it’s worthwhile to purchase based mostly in your present age and desired retirement age.

    Since I’m 30, Vanguard’s software advisable I purchase the Vanguard Goal Retirement 2050 Fund (VFIFX) which fees an annual expense ratio of solely 0.16%.

    In my 401okay portfolio held with our firm (so pre-tax retirement cash, not my private post-tax funding portfolio), that is the one fund that I maintain. I mechanically make investments 5% of my paycheck every month (which our firm matches 100%) and it mechanically buys this fund.

    The underside line is that Goal Date Funds are a unbelievable answer as properly for many who wish to merely set it and neglect it.

    Warren Buffett’s Guess In opposition to Wall Avenue

    Warren believes so strongly within the simplicity of shopping for the S&P 500 that he guess a handful of hedge funds $1,000,000 that they couldn’t outperform a low price index fund over a 10 12 months interval. Winner will get a donation to the charity of their selecting.

    Warren Buffett selected the Vanguard 500 Index Fund Admiral Shares (VFIAX) for his single place. The competitors Protege Companions, a New York Metropolis cash administration agency, chosen 5 unnamed funds of hedge funds.

    The guess was kicked off in 2008 and as of early 2017 Warren Buffett’s guess was crushing the competitors with a 85.4% return vs a 22% return for the hedge funds.

    For the complete story, NPR’s Planet Cash podcast did a nice episode on the guess which additionally covers the advantages of passive, low-cost indexing which I’ve touched on on this publish.

    planet money brilliant vs boring

    Alongside the above podcast episode, I additionally extremely advocate Barry Ritholtz’s Masters in Enterprise interview with Jack Bogle (founding father of Vanguard, indexing).

    Closing Notes

    Warren Buffett likes to purchase corporations which have stood the check of time, have unbelievable managers, huge moats round their core companies, and shall be round for many years to return.

    Constructing a Warren Buffett portfolio is quite a bit simpler than many individuals suppose as a result of the most effective illustration of Buffett’s core beliefs falls underneath the S&P 500.

    Buffett additionally believes in maintaining prices as little as potential by persistently shopping for every month it doesn’t matter what the market setting after which holding for many years. Also called passive indexing, the opposite secret is choosing funds with the bottom expense ratios, which is why Buffett recommends Vanguard.

    All in all, you’ll be able to select any dealer to construct a Warren Buffett portfolio and comply with the recommendation of best investor on earth. Superior.

  • Impact Of Union Budget On Share Market

    Impact Of Union Budget On Share Market

     

    Definition of Budget:

    “A budget is a formal statement of estimated income & expenses based on future plans & objectives. In other words, a budget is a document that management makes to estimate the revenues & expenses for an upcoming period based on their goals for the business.”

    Meaning of Budget:

    “A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes & revenue, resource quantities, costs & expenses, assets, liabilities & cash flows.”

    Advantages of Budgeting

    1. Budgeting provides a systematic & disciplined approach to the solution of problems in the organization.
    2. However it helps in directing capital & other resources into the most profitable channels.
    3. Budgeting provides a valuable means of controlling income & expenditure of a business as it is a “Plan for spending”.
    4. It forces the management to study about the problems relating to the timely implementation. It generates a sense of caution & care among the line manages.
    5. Budget provides a means of controlling income & expenditure of a business. It gives a plan for spending.
    6. Budgeting helps in directing both capital & revenue resources in a profitable way.

    Responsibility can be easily fixed with the help of budgeting.

    1. Proper incentive system of wage payment can be introduced with the help of budgeting.
    2. National economy is improved by providing more employment opportunity, effective utilization of resources & avoiding wastage.
    3. A systematic & disciplined approach is followed to solve the problems in an organization through budgeters’ control.
    4. Budgeting encourage competitiveness among employees & provides incentive to those who perform efficiently.
    5. An efficient & economy in production control is achieved through budgeting.
    6. Budget provide an excellent record of organizational activities.
    7. The major strength of budgeting is that it co-ordinate activities across departments.
    8. Helps in defining strengths & weakness on which the entity can concentrate.

    Disadvantages of Budget

    1. Planning, budgeting or forecasting is not an exact science; it is uses approximations & judgement which may not by per cent accurate. At best a budget is an intimately no one knows precisely what will happen in the future.
    2. Budget can demotivate employees because of lack of participation. If the budgets are arbitrarily imposed top down, employees will not understand the reason for budgeted expenditures, & will not be committed to them.
    3. Budget can create competition for resources & politics.
    4. Budgeting exercise can be at time at very time-consuming exercise. It involves extra manpower to get the estimates as accurate as possible. Especially for a big company with various department, budgeting exercise takes a huge effort. The time consumed may be low in cases where the company uses budgeting software & the employees are well trained. If the company uses zero based budgeting technique, the time, cost & effort involved can be considerably large.
    5. Budgeting is based on a lot of assumptions in estimating the expenses & revenues. These are generally based on trend & the market scenario prevailing at the time of making the budget. Budgets can also be based on the predictions made for the coming year considering the date available at the time of budgeting.
    6. Staff may be demotivated, if the targets set are too difficult or too easy to achieve, they are made responsible for something outside their competence or does not identify themselves with targets.

    IMAPACT OF 2018 BUDGET ON SHARE MARKET

    Union Budget & stock market have a strong relation. To understand the effect of union budget on equity markets it is essential to track the policies that government proposes & its relations to each sector & major stock within that sector. 2018 Union budget is most affected the share market.

    The budget has played an important role in share market & the budget has traditionally been an important part of the financial year, with government announcing exactly what it wants to do for the next year, & how it has succeeded grandly at what it said it wanted to do last year.

    A budget is the government statement of policy for the next financial year. Budget announcement do affect the stock prices of those company who will be impacted favorably.

    Both the major indices in India has scaled record heights, the Sensex has crossed the 36000 mark whereas the nifty 11000 level. Generally, there are negative sentiment & expectations attached to the Budget this investor usually postpones buying decisions before the budgets is tabled.

    The B-Day Or Budget Day is proving to be the D-Day for a euphoric market. Jitters building up in the runup to  the budget have caused the BSE Senex lose 600 odd points from its record high of 36,443 hit.

    That’s what is giving Dalal Street all the scares. Analysts say the continuation of the ongoing bull run in the domestic stocks will depend on FIVE FACTORS in this budget.

    LTCG tax:

    Long-term capital gains tax is one think that comes to haunt the market before the Union Budget every year. But this time is different. The Sensex gained 6 per cent in January alone. Except for 2017, Sensex has never given this much return in the pre-Budget month in last one decade.

    Fear gauge India VIX, though, has spiked all through one month. Market veteran Madhusudhan Kela believes the market so far has not priced in an LTCG tax. Any change in status quo, he believes, could trigger a correction in the market.

    As per Section 10(38) of the I-T Act, gains on equity investment beyond 12 months are exempted from taxes if the securities transaction tax (STT) is paid on the sale transaction. In case of non-equity mutual fund schemes, the duration to qualify for LTCG is 36 months. The long-term capital gains tax (LCGT) in this case is 20 per cent after indexation. There are fears that either the LTCG would be levied on equity or the duration will be raised from one to two or three years.

    Fiscal deficit:

    While there are signs that the government might meet its fiscal deficit target of 3.2 per cent of FY18 due to huge disinvestment receipts and dividends, the FY19 target of 3 per cent looks tough. A fiscal deficit target above 3.2 per cent of GDP in FY19 would be a negative surprise for markets, as it would imply a slower pace of fiscal consolidation, says Nomura India. This could be the result of either higher-than-expected spending or lower-than-expected revenue, if the government goes for cuts in corporate or income-tax rates, along with excise duty cuts on petroleum products.

    Revenue & expenditure:

    It remains to be seen what the FM’s plans are for FY19: Whether the government would go for improving the quality of spending with a rise in the share of capital expenditure and a gradual moderation in revenue expenditure. Will there be doleouts with an eye on 2019 general elections? Will there be any announcement of a universal basic income transfer scheme on a pilot basis that can add to the future fiscal burden? These are the questions the market will be focusing on.

    “In the Gujarat elections, the BJP got very few votes from the hinterland. In that sense, there is a big political need to increase rural spending and in general increase government spending to keep supporting the economy. However, uncertainty around GST revenues and higher oil prices will constrain the government in terms of how much it can spend without deviating from the fiscal consolidation path,” BofA-ML said in a note.

    Bank recapitalisation: Banking stocks do have a significant say on the benchmark equity indices. The government has announced a mega recap plan worth some Rs 2.1 lakh crore. But the market did not look much enthused by the recent Rs 88,000 crore recap bond announcement. One headline risk in FY18 is the accounting treatment of the recap bonds issued to the banks, as previous indications from government officials have been that these bonds will only affect debt and not the deficit, noted Nomura India.

    Divestment programme:

    FY18 will be the first year when the government will be able to hit the divestment target. In his Budget speech on February 1 last year, Jaitley had pegged the divestment target at Rs 72,500 crore, which included Rs 46,500 crore worth of minority stake sales, Rs 15,000 crore worth of strategic sales and Rs 11,000 crore from listing of insurance companies. With total disinvestment proceeding of Rs 54,338 crore so far, the Rs 37,000 crore ONGC-HPCL deal is all set to push the divestment proceeds in FY18 to a record Rs 91,253 crore. Dalal Street veterans believe Finance Minister Arun Jaitley might raise the divestment target for FY19 by 15-20 per cent (over actual target), aggregating close to Rs 90,000 crore.

     STOCKS THAT TANKED UP TO 50% ON 2018 BUDGET PAIN:

    Finance minister Arun Jaitely Union Budget that seeks to rob Peter to pay Paul appears to have killed all the excitement on dalal street, where the benchmark Equity Indices were climbing new record highs every second day till Thursday.

    Select stocks have slumped as much as 50per cent in response to some duty rejig or other sector specific policy decisions announced in the budget.

      PC JEWELLER –

    Shares of PC Jeweller plunged over 50% in morning trade on Friday, as the broader market nosedived.

    JUST DIAL DOWN 17 PER CENT

    JAIN IRRIGATION SYSTEM DOWN 16.57 PER CEN

     

    TRIBHOVANDAS BHIMJI ZAVERI DOWN 16.11 PER CENT

    S P APPARELS 14.50 PER CENT

    DLF DOWN 14.41 PER CENT

    GENUS POWER INFRASTRUCTURE DOWN 10.87 PER CENT

     

  • TECHNICAL ANALYSIS

    TECHNICAL ANALYSIS

    Technical analysis is the forecasting of future financial price movement based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute prediction about the future. Instead, technical analysis can help investors anticipate what is “likely” to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time.

    Long-Term-View

     

    Short-Term-View

    Technical analysis is a study of a particular script by historic Rate, volume & quantity. By studying technical analysis we can predict the price movement in market & a particular share. By studying charts we can easily understand the price movement happened in history & we can understand the trend in market. Share price movement at what price the share will move when will it move and when will it fall can be studies through chart analysis. Therefore, chart is the foundation of this market & it will always be there.

              TREND:

    1. While trading in stock market understanding trend through technical analysis is important.
    2. Trend is a way or a direction which helps in change of rate of shares.
    3. There are 3 important parts of trend
    4. UP trend
    5. DOWN trend
    6. SIDEWAYS trend

    a.  UP TREND:

    • If a particular share is on the verge to go up then it is known as up trend.
    • There is huge volume build up in starting. So everyone starts buying so many times scripts intends to have upper circuit.

    In this trend, script moves higher high means its beats last high price & higher low means it breaks the low of last low.

    b.  DOWN TREND:

    • If the price of the a particular script goes down day by day then its called as down trend.
    • There is huge selling volume in done trend.
    • Lot of traders do short selling in this trend so there are chances of lower circuit.
    • In this trend scripts starts making lower rate of high & lower low means last low rate less low.

    c.   SIDE WAYS TREND:

    • Investors get bored in this trend.
    • The stock way is not clear in this trend.
    • Volume during sideways market is very less.
    • Intraday traders get very less chance to participate there are more possibilities of Stoploss to hit.

    VOLUME:

    • Volume means in a particular time how much buy-sell happened which produced turnover.
    • Volume means number of traded quantity of shares in specified time.
    • In share market more volume means the stock is more active & liquid.
    • Understanding volume is very important in technical analysis.
    • By seeing volume we can easily understand the market trend in advance.
    • To see whether the volume is up or down you can see those details at the downside of the chart which is started as volume bars.
    • Volume gives signal before the rate, this is the reason that volume plays a very important role in technical analysis.
    • In uptrend is the volume starts drying then the understanding become that it is end of uptrend.
    • In downtrend is the volume starts drying then the understanding becomes that it is end of downtrend.

    SUPPORT:

    • Support means, at what rate we can place an idea that the rate will not go down below this rate & there will be an upside from this rate, this particular part is known as support.
    • You can draw a support line by joining support point join.
    • In support line if we get maximum support points the line becomes stronger.
    • At support point huge quantity of shares buying happens & rate starts increasing.
    • But if rate falls below support line then the price starts decreasing & then a new support is formed.
    • That’s why its suggested that if support is breached then we have to short sell & if rate is above support line then we have to place stop loss.

    RESISTANCE:

    • Resistance means its that rate where we feel that price will not move above this point & it will fall further this point is known as resistance.
    • We can join any 2 Resistance Points & draw Resistance line.
    • In resistance line more resistance points means the resistance line becomes stronger.
    • Huge selling comes is the rate of stock falls below the resistance point & price starts decreasing.
    • But is in situation the rate breaks resistance point & goes up, then the rate starts increasing & new resistance point happens.
    • Therefore, if resistance line if breached you have to buy & if you have to keep a stop loss below resistance line.

     

    INDICATOR:

    1.MOVING AVERAGES:

    • Moving average is the value derived from the particular closing rate for that particular time frame.
    • Example if we are discussing on the moving average of 10 days then price is the average of this 10 days.
    • Thus, we derive the average price & join points & prepare average lines.
    • Now let’s draw moving average lines practically.

    a.   SHORT TERM TREND:

    • To understand Short term trend we need to understand 10 to 20 days moving average.
    • Therefore, is you need to take position for 1-2 days then we need to check moving averages of 10-20 days.
    • If price is above moving average of 10 days then it’s a buy & if it is below then it we have to place stop loss.
    • Lets see example on chart.

    b.  MIDDLE TERM TREND:

    • To check middle term trend we study 50 days moving average.
    • So if you need to buy a particular shares for 5-6 months then we use 50 days moving average.
    • If price is above moving average of 50 days then it’s a buy & if it is below then it we have to place stop loss.
    • Similarly if the price is below 50 days moving average then we need to short sell & above the moving average should be our stop loss.

    c.   LONG TERM TREND:

    • To check long term trend we study 100 days moving average.
    • If we need to invest for one year or more than that then we need to study 100 days moving average.
    • If the rate is above 100 days moving average then we can buy & below 100 days moving average then we need to put stop loss order or we can create a short sell position.

    MACD:

    • MACD is an acronym for Moving Average Convergence Divergence.
    • MACD is created by Gerald Apple in the late 1970’s.
    • This tool is used to identify moving averages that are indicating a new trend, whether its bullish or bearish.
    • With an MACD chart, you will usually see three numbers that are used for its setting.
    • The first is the number of periods that is used to calculate the faster moving average.
    • The second is the number of periods that is used in the slower moving average.
    • And the third is the number of bars that is used to calculate the moving average of the difference between the faster & slower moving average.
    • Red line is slow moving average & Blue line is fast moving average.
    • Blue is a MACD line & Red is a SIGNAL line; vertical line is MACD HISTOGRAM.
    • Divergence occurs when the moving averages move away from each other. This is called divergence because the faster moving average is “diverging” or moving away from the slower moving average.
    • Convergence occurs when the moving averages move towards each other. This is called convergence because the faster moving average is “converging” or getting closer to the slower moving average.
    • CALCULATION:
    • MACD = (12day EMA – 26day EMA)
    • SIGNAL = 9 days EMA of MACD line
    • HISTOGRAM = MACD line – SIGNAL line
    • If blue line & red line cross each other above the zero line it’s generate selling call & if blue line or red line cross each other below the zero line that mean’s this indicator show buying call.

     

    RSI:

    • Relative Strength Index, or RAI is a popular indicator developed by a technical analyst named Welles Wilder.
    • RSI is similar to the Stochastic in that it identifies overbought & oversold conditions in the market.
    • It is also scaled from 0 to 100.
    • Typically, reading below 30 indicate oversold market conditions.
    • Readings over 70 indicate overbought conditions.
    • In RSI, line below 50 indicate down trend & line over 50 indicate up trend.
    • If RSI line moves downword after crossing or touching 70 then it indicates profit booking time.

    TYPES OF CHARTS:

    a.  LINE CHART:

    • Line chart is a simple methodology of technical analysis.
    • Depending upon time & price line is drawn on the chart.
    • Line chart will only tell us at what the rate was & we could not see open, close high & low of a particular share.

    b.  BAR CHARTS:

    • Bar chart is very famous in Technical Analysis.
    • We get more detailed information in Bar Chart then line chart.
    • We understand time frame, open, close, high & low in bar charts.
    • Horizontal line on left indicates open & horizontal line on the right indicates close.
    • Upper point of the straight line indicates high & lower point of the straight line indicates low.

     

    c.   CANDLESTICK CHART:

    • Candlestick chart plays an very important role in technical analysis. Maximum countries in the world use candlestick chart for studying technical analysis.
    • The invention of this chart was done in JAPAN therefore it is also known as JAPANESE CANDLESTICK CHARTS.
    • This chart is denoted by various colors.
    • The day when the close rate of a particular script is low then the open rate then it is displayed by red color.
    • The day when the close rate of a particular script is high then the open rate then it is displayed by green color.
    • In candle stick chart above stick shows high & below stick shows us low.

     

    • Now we will take a small test on how candle stick is formed.
    • We will share a data with you & you have to draw a candle & show whether it is bullish or bearish.
    • Lets note the procedure to draw the candle first.

    Step 1 -> Check open rate first & draw a horizontal line.

    Step 2 -> Now see the close rate & if close is above then draw horizontal line above the open line & if close is less then open then draw horizontal line below open line.

    Step 3 -> Get the candle body ready.

    Step 4 -> Is candle bullish (Green) or bearish (Red) write it down.

    Step 5 -> If it has shown high then draw stick of high & if it has shown low then draw stick of low.

     

    • This way we can understand how the candle is down which is useful to study chart.

     

     

     

  • TYPES OF EQUITY MARKET

    TYPES OF EQUITY MARKET

     

    TYPES OF EQUITY MARKET:

    types-of-equity-market

     

    A.          PRIMARY MAKET:

     

    Primary-market

                                              The primary market is also known as new issues market. Here, the transaction is conducted between the issuer & buyer. The primary market is the part of the capital market that deals with issuing of new securities. Primary market creat long term instruments through which corporate entities raise funds from the capital market. In short, the primary market creates new securities & offers them to the public. It is a public issue, if anybody & everybody can subscribe, for it. If the issue is made to select group of people then it is termed as private placement.

    Capital & Equity can be raised in the primary market by any of the following four ways:

    1. Public Issue

    As the name suggests, public issue means selling securities to the public at large, such as IPO. It is the most vital method to sell financial securities.

    2. Rights Issue

    Whenever a company needs to raise supplementary equity capital, the shares have to be offered to present shareholders on a pro-rata basis, which is known as the Rights Issue.

    3. Private Placement

    This is about selling securities to a restricted number of classy investors like frequent investors, venture capital funds, mutual funds, and banks comes under Private Placement.

    4. Preferential Allotment

    When a listed company issues equity shares to a selected number of investors at a price that may or may not be pertaining to the market price is known as Preferential Allotment.

     

    B.           SECONDARY MARKET:

     

    secondary-market

    The secondary market also called the after market & follow on public offering is the financial market in which previously issued financial instruments such as bonds, stock options, & futures are bought & sold.

     

    THE SECONDARY MARKET IS FURTHER DIVIDED INTO 2 KINDS OF MARKET:

    1.  AUCTION MARKET

    An auction market is a place where buyers & sellers convene at a place & announce the rate at which they are willing to sell or buy securities. They offer either the ‘BID’ or ‘ ASK’ prices, publicly. Everything is announced publicly & interested investors can make their choice easily. Where trading & settlement is done through the stock exchange & the buyers & sellers don’t know each other.

    2.  OTC

    OVER THE COUNTER/ OFF EXCHANGE TRADING is done directly between two parties, without the supervision of on exchange. Is based in Mumbai, Maharashtra.It does not take place, however, on the stock exchanges.OTC MARKETS are the informal types of market where trades are negotiated.

    DIFFERENCE BETWEEN PRIMARY MARKET & SECONDARY MARKET

    Difference-between-Primary-market-&-Secondary-market

     

    Also Read | Option Market

     

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