Master And Student - All About Stock Markets

Tips are pieces of information that come from questionable sources with no known way of tracing them. The issue of using tips for profit goes beyond the issue of right or wrong. The real issue is the need to function as an independent, self-contained trader.

Once traders relinquish their autonomy by relying on tips, they might well start to work for someone else. They become, in a sense, employees of the tip giver. As a trader with a vested interest in the markets, it is better to make money by correctly analyzing the markets yourself. Then you become the master of your own destiny.

On the other hand, if you learn to make money by relying on tips, you are no longer free to trade any market. You are dependent on your source, who in turn is dependent on his or her source, and so on.

The argument for using tips is that you can take one tip and ride it all the way to several thousand rupees of profits. However, in the process of making this gains, you forget about doing anything else. You no longer try to apply fundamental or technical analysis to market situations. You no longer treat the market as business.

Good tips are given to only a few, bad tips are given to everyone. The next time time you hear a tip, think again.

After a longtime, an IPO of reasonably good quality and size, has hit the Indian markets. Whether it is worth investing at the offer price, is debatable. Mahindra Holidays and Resorts India Limited (MHRIL) is India’s number one brand offering good family holidays.

The company’s brand Club Mahindra Holidays, has more than 75,000 members and 25 beautiful Resorts at some of the most exotic tourist spots in India and as well as abroad. Mahindra's some of the resorts at Coorg,Manali, Goa, Munnar and Dharmasala are winners of the RCI Gold Crown Award for the year 2008-2009.

Details of the issue:
The objects of the Issue are to raise capital for expansion of existing resorts and setting up new projects and ofcourse, to achieve the benefits of listing on the Stock Exchanges.

Issue Size is 92,65,275 Equity Shares of Rs. 10/-
Price Band: Rs 275/- to Rs 325/- of Face Value: Rs. 10/-
Market Lot of 20 Shares with a Minimum Order Quantity of 20 Shares.
The Issue is open from June 23 ,2009 to June 26, 2009.
The shares are to be listed at BSE and NSE.

The stock is offered at 25 times P/E of their current year's expected earnings, which is on the higher side. Since there are no comparables and it is the market leader at present, there is scope for some appreciation.

The National Stock Exchange NSE has announced some changes in Nifty Midcap 50 Index constituents. There have been 5 changes,which are effective from 26 June 2009.

The outgoing stocks are Bombay Dyeing, Mahindra Life, Peninsula Land, Kesoram Ind, TVS Motors. These stocks are replaced by Idbi bank, JSW steel, United Phosphorous, Cummins India, Educomp soultions.

The newly included midcap stocks have seen some momentum last week and have corrected since then. If the market stabilizes, some more action can be expected in these stocks.

The largest mutual fund in India, Reliance Mutual Fund, has launched the Reliance Infrastructure Fund. The scheme launched with intention to gain long-term capital appreciation by investing in infra companies and companies related the infrastructure sector.

Its list of sectors include construction, power and power equipments, metals and minerals,ports and other related areas in the segment. The fund intends to have 35 per cent of its assets in cash and fixed income investment.

Details of the Fund:
Type: Open-End Equity Fund
NFO Opens: May 25, 2009
NFO Closes: June 23, 2009
Minimum Application Amount: Retail Plan: Rs. 5,000/-

Minimum SIP Investment: Rs. 100/- per month
Plans: Retail Plans with Growth, Bonus and Dividend (Payout & Reinvestment) options.
Benchmark: BSE 100
Load Structure:
Entry Load: 2.25 per cent;
Exit Load: 1 per cent if investment is redeemed within 1 year.

Should an investor invest or not ?
Yes, but not now. Though the infra story is here to stay, investors could wait and buy later, when the fund is available on an ongoing basis. Investors can use the SIP method for investing in this fund, on declines.

National Stock Exchange NSE has introduced a new Technical Analysis Tool - NSE TAME (Technical Analysis Made Easy).

TAME is a technical analysis tool provided by NSE to its members. This tool shall provide users an exhilarating experience in carrying out technical analysis.

TAME offers to provide charts and popular technical indicators that have been carefully handpicked after elaborate analysis of the landscape of technical indicators. The simple and easy user interface provides users the flexibility to customize, view and analyze charts and indicators.

The key benefits of using TAME are :
An useful tool for carrying out technical analysis with the support of technical indicators.
A powerful tool for charting.
Reliability of an exchange provided solution.

Now this tool is being provided to all the NSE Members. It would be a good effort if this tool is provided to retail traders as well.

Bank of Baroda - Q4 Results Update.

The bank's net interest income (NII) grew 43.0% on back of strong growth in advances (34.9%), improvement in C/D ratio from 70.2% in Q4FY08 to 74.8% in Q4FY09 and improvement in liability mix.

Its net profit grew whopping 172.3% on back of robust NII growth (43.0%), strong traction in non-interest income (53.9%), lower growth in operating expenses (17.4%) and 35.5% decline in provisions & contingencies. Asset quality of the bank witnessed improvement both YoY as well as QoQ. Both gross and net NPA declined in absolute as well as in percentage terms.

The stock is a re-rating candidate due to improvement in its return profile; consequently, BoB remains one of preferred pick in the banking sector space.

Forbes, the international biz magazine, has launched its Indian edition. Forbes launches in India in collaboration with Network18 group. Forbes' Editor-in-Chief Steve Forbes said he was excited to be in India, especially after the outcome of the General Elections.

The magazine has been showcasing entrepreneurship across the world for several years and decades. According to the Chief Editor , India has been in the forefront of technology and India has been in the forefront of areas where entrepreneurship is needed.

He thinks India as a whole, as far as reforms continue to be made, obstacles continue to be removed towards commerce. The country is going to be clearly one of the world leaders especially when we come out of this temporary slump.

That's fantastic news for India !

After a long time some important updates from Entrecard.

1. Drops will count for 2 credits and no credits for the receiving blog, just for today. So credits will be given only if you drop. Quite interesting.

2. Another important change is the Ad Network is only for only Entrecard Blogs. So herein after ,only Active Entrecard Members can advertise through the ad network. This is in response to the feedback / backlash against the paid ads, during the initial run of the paid ads program.

These two changes definitely make things interesting at Entrecard. Meanwhile some of my Entrecard Market listings for advertising in this website - Market listings