Skip to main content

Market Strategy

marketstrategyGlobal markets sold off in May primarily over concerns on the ongoing developments in Eurozone. Over the past month, the DowJones and FTSE were down 8% and 7% respectively. There were significant losses on Asian indices as well with Sensex losing 3.5% . By and large, markets were not convinced that the bailout package was the end of the debt problem and feared that more Euro nations could face crisis similar to Greece.

Going by these developments how did India Inc fair?

The Indian corporate sector reported healthy numbers for the fourth quarter. 4QFY10 BSE-30 Index net profit grew a robust 25.9% yoy. The GDP growth for fourth quarter came at 8.6%, a significant improvement over corresponding quarter of the previous year.

So what's in store for Indian markets ?

From hereon, the markets would be focused on the developments on the monsoon front and of course global events. In the past ten months or so, markets have been largely range bound and have been consolidating between 15500-17600 levels. At this level, valuations are not demanding, but reasonable at 14.8X FY2011E EPS and 12.5X FY2012E EPS.

A full-blown, double-dip recession led by sovereign debt issues in Europe and the US may lead to rapid outflow of FII money from India as in 2008, which in turn could lead to a healthy correction. Currently markets are the higher band of 17000 levels and it could test the lower end of about 15500-16000 levels. Break of this lower band could take it lower to about 14000 levels.

Investors could use this global-led correction to invest in a staggered manner, with medium to long term view.


  1. One could wait for some clarity on Euro crisis, before investing.

  2. SIP is a better way to overcome this volatility.


Post a Comment

Popular Posts

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:

Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

NSE Level 3 Data

Before we get into details of NSE Level 3 Data, it is important to first understand the basic operations of the stock market.  All publicly traded equities have a bid price and an ask price when they are bought and sold. The bid is the highest price a trader( or an investor) is willing to purchase a stock. The ask is the lowest price in which he is willing to sell a stock.

Depth of the Market(DOM):Looking at a Level 1, Level 2 or Level 3 quotes can give a trader, a basic idea of how a stock is performing at any given time.

Level 1 Market Data provides the basic market data which includes Bid price, Bid size, Ask price and Ask size.

Level 2 Market Data provides more information than Level I data. Mainly, it doesn't just show the highest bid and offer, but also shows bids and offers at other prices. Now level 2 provides market depth data upto 5 best bid and ask prices.

Level 3 Market Data provides market depth data upto 20 best bid and ask prices .  This primarily used by brokers and ma…

Moneycontrol Terminal - Streaming Live Quotes

Moneycontrol has introduced a new feature Moneycontrol Terminal - an enhanced version of real time price updates. Though there were live quotes provided by the website previously, the present form  gives a better update of live quotes of indices and stocks.

This terminal provides live streaming quotes for both NSE and BSE free. It also provides quotes for most of the indices and also the constituents/stocks of the indices in BSE and NSE.  The terminal also provides live news and other market news, which might be useful for traders. The hardware recommended is minimum of 1 GB RAM.

It would be better if stock of any choice could be added ( market watch of a set of stocks ), which would be easier to track one's trading positions. Anyway, this is a better alternative for people who don't have access to any trading software, to view live action of the markets.

You could just try the same here at Moneycontrol Terminal