Market Weekly View- 25 August 2014

The markets witnessed fresh high last week on the back of positive global cues, decline in crude oil prices, better FIIs inflows and speculation of an upward revision of India's sovereign rating outlook by global rating agency S&P. The market logged gains in four out of five trading sessions in the week just gone by. The Bank Nifty ended at a record high of 15,819. Public sector banks were among the top gainers during the wee k.

In the week ended Friday, 22 August 2014, BSE Sensex gained 316.32 points or 1.2% to 26,419.55 and Nifty rose 121.50 points or 1.55% to 7,913.20 , a record closing high for the index. The S&P BSE Mid‐Cap index and BSE Small‐Cap index both these indices outperformed the Sensex.

Keeping in mind current index combinations and sectors, we feel that index top 10 high weitage companies are showing strong patterns. T op ten stocks basically belong to oil & Gas, Banking and Technology shares thus we could see buying in top three sectors. Now next target for Nifty seems around 8250 and for Bank nifty next target could be 17000 but stop loss for this rally should be 7840 for Nifty and 15550 for Bank Nifty. This time PSU banks are making good patterns and we could see better participation from PSU banks especially from SBI, BoB, PN B and Bank of India.

Going forward we expects market to remain volatile due to F&O August contract’s expiry on 28th August. Trend in investment by FIIs, trend in global markets, the movement of rupee against the dollar, crude oil price movement and monsoon will be also closely tracked by the investors. 

Crude oil view: Brent crude is trading near to its 18 months low but now it has strong support between $100‐$98 zones so we may see some bounce from current levels in short term . But in long run Brent crude is trading in a range of $120 to $98.

Key data to watch (Domestic):

•Q1 GDP & CPI data on 29th August 14

•HSBC PMI Manufacturing for August on 1st September

•HSBC PMI Services for August on 3rd September

•IIP (July) & CPI (Aug) on 12t h September

•WPI for August on 15th September 14

Key data to watch (World):

•New Home Sale s on 25th Aug’14

•Durable Goods order on 26th Aug’14

•GDP & Jobless Claims on 28th Aug’14

•Personal Income and Outlays on 29th Aug’14

Weekly View- Index should hold Friday's low

The key benchmark indices declined last week due to steep decline in value of rupee against the dollar and surge in crude oil prices dampened sentiment.  Weak global cues also dented the investors’ sentiment. Market breath was negative with high degree of volatility, Index dropped in three out of the five trading sessions during the week. The market surged in the first two sessions of the week, but witnessed selling pressure in the last three consecutive sessions.  Last week S&P BSE Sensex fell 151.70 points or 0.6% to 25,329.14 and CNX Nifty fell 34 points or 0.45% to 7,568.55 while Mid-cap and small-cap indices underperformed the broder index.

Among key corporate earnings this week are Divi's Laboratories, GAIL (India), HPCL, Indian Hotels Company, SAIL, Tata Motors, Aditya Birla Nuvo, Apollo Hospitals, BEML, BHEL, BPCL, Britannia Industries, Coal India, Engineers India, IOC, Jaiprakash Associates, NMDC, Oil India, Sun Pharmaceutical Industries, Tata Power, GMR Infrastructure, GMDC, IL&FS Transportation Networks, Max India, ONGC, Siemens, Tata Steel ,Voltas, Cipla, Hindalco Industries, Reliance Capital, Reliance Communications.

Last batch of Q1 earnings and key macroeconomic data will set the tone on the domestic bourses in the week ahead. Trading will be truncated next week as the market remains shut on Friday, 15 August 2014, on account of Independence Day. Trend in investment by FIIs, trend in global markets the movement of rupee against the dollar and crude oil price movements hold key.  

On technical front, Short term trend of the markets are down while medium and long term trend continue to remain up.  Pattern suggests that markets could head lower in the near term if it breaks Friday’s low.   But medium term support is around 7450 levels which is very stong support but a close below medium term support levels lead to a larger correction towards the 7100 levels.  As most of the sectors like Metal, Realty, Banks, Mid cap and small cap indices are showing downtrend so we might see some more correction in coming days.  Although there are some sectors are still looking strong and we could see some improvement in sectors like IT, Auto and FMCG.

  

Key data to watch (Domestic):

·         IIP for the month of June and CPI for July on 12^th August 14

·         WPI for July on 14^th August 14

Key data to watch (World):

·         Retail Sales data on 13^th August 14

·         China IIP data on 13^th August 14

·         Jobless claims on 14^th August 14

·         PPI-FD & IIP on 15^th August 14

Benefits of Intraday Trading

Intraday trading, often called "day trading," is the practice of opening and closing a position in any financial market on the same day. Day traders profit from small and quick fluctuations in stock prices. This contrasts with long-term investing, where a position may be held for months or years. The risks in day trading are extremely high, but the potential rewards are also great.

It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind while doing day trading in Indian stock market or in any stock exchange.

Day trading is characterized by multiple intra-day trades executed to take advantage of small price movements in stock. stocks are generally held for minutes or hours and generally positions are closed out overnight for small profits or losses. In the day trading study, a day trader is described as "an individual who conducts inta-day trading in a focused and consistent manner with a primary goal of earning a living through the profits derived from trading strategy".
     
ADVANTAGES:

• Trading opportunities are  more frequent, if you can trade with daily chart, you will see similar trades more often on intraday chart
• You can cut losses very quickly.
• There is no overnight risk if a major piece of news hits your market after the close.
• Day traders who have developed a successful trading strategy can rely on it for their primary income. 
  
  
  

HELPFUL POINTS FOR INTRA DAY TRADING:

• Keep your volume constant e.g.: if you trade in five lots of nifty future then trade in five lots only.
• Being contrarians is very important while trading intraday.
• Stop loss is a must while trading intraday.
• Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.
• It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow

There are lot many tools and indicators available for intraday trade. But it is advisable let professionals do all these study.

How Reliance Behaves, A quick Look by Elite Wealth Advisors Ltd.

Reliance Industries (RELI.NS) will spend about $680 million to buy a majority stake in Network18 Media and Investments (NEFI.NS), as a potential content provider for its planned 4G internet services.

Reliance had first invested an undisclosed amount in Network18 and its subsidiary TV18 Broadcast (TVEB.NS) in 2012, marking its entry to the media sector.

Reliance Behavior

TENDER OFFER

Independent Media Trust (IMT), set up by Reliance, will use the funds to acquire ownership of about 78 percent in Network18 and 9 percent in TV18.

IMT will also make a mandatory tender offer to minority shareholders for acquisition of more shares in Network18, TV18 and group company Infomedia Press Ltd

The Reliance entity will make the tender offer to buy the remaining 21.96 percent in Network18 for 9.4 billion rupees ($159.28 million), while it will offer to buy up to 26 percent each in TV18 and Infomedia for a combined 17.4 billion rupees.

For More Reports you can visit all Research Reports By Elite Wealth Advisors Ltd., Click Here 

Share Market Research

In this era of intense competition, both world-wide and domestic, business firms of all sizes and varieties have become more and more concerned with the market share figures they achieve in the market place. When you think about stock market investment, you open yourself to a huge world of related questions such as how to invest, where to start from and many more. Thus, it is highly recommended to perform basic research before investing in stocks and companies. 

On starting with step-by-step process about researching stocks the first thing to do is to check live market and analyze the market share research, market potential research, stock prices and companies you want to invest in. This can be done through newspapers or stock tickers where the stock quotes are offered. Also Analyze forecasting trend research. On reading, the prices allocated to per share signify that how many shares one could afford to buy with the given financial account.

But that’s not all. For better results you must look out for the details of the company you want to buy shares of, since you buy a partial ownership of the company after making investment. The company's status, commercial phenomenon, and consistency can radically impinge on your investment portfolio and your profits. And fortunately, the detailed study about the company and its reputation in the market can save you from these issues. The size of the company is an unavoidable feature to be focused.

General Market Advice:

1. Never chase a stock.

2. Buy when markets are in the grip of panic.

3. Only buy fundamentally strong stocks, which are undervalued.

4. Buy stocks grown in top line and bottom line over the past years.

5. Invest in companies with proven management.

6. Avoid loss-making companies.

7. PE Ratio and Growth in earnings per share are the key.

8. Look for the dividend paying record.

9. Invest in stocks for sure returns.

10. Stocks have been the high yielding asset class over the past.

11. Stocks are an asset class.

12. The basic property of any asset class is to grow.

13. Buy when everyone is selling and sell when everyone buys.

14. Invest a fixed amount each month.

Last But not least Trust our tips and then invest to earn huge profit