Market Outlook by Experts


Technical Analyst Vijay Bhambwani

Technical Analyst Vijay Bhambwani says the coming week looks to be consolidated with mix trading. He says if Nifty breaks down from 3420 levels then it may touch 3380 levels. He advises that one should remain long.

Technical Analyst Vijay Bhambwani says the coming week is looks to be consolidated with mix trading. He says that he has a positive outlook if the Nifty remains above 3420 levels. He also mentions that if the Nifty breaks down from 3420 levels then there is a possibility that it may touch 3380 levels. He adds that there could be a bull market pressure but it will be like a routine phase of ups and downs but more or less the market may remain steady. He advises that one should remain long.

Anil Manghnani, Modern Shares & Stock Brokers

If the Sensex fails to close above 12016 this week, then we could expect a correction in the near term. One should only buy midcap stocks on deeper corrections in the midcap index.

The Sensex and Nifty are both close to their respective major resistance levels placed at 12016 & 3495. Thus one must wait for these levels to be crossed before taking fresh long positions.

As mentioned last week, the next targets for the Sensex and Nifty are placed at 12016 & 3495 respectively. Both the indices came very close to these targets before correcting slightly. One could expect some selling pressure before these levels on the up side are breached. I do believe that the next move after these resistance levels are crossed could be quite explosive and would take the indices to new highs. However, since the next move could be a significant one, I do feel one should wait for a confirmed break out where the Sensex closes above 12016 for 2-3 trading sessions before one builds fresh long positions. I would rather you buy higher on a confirmed break out than now where you are not sure whether we would first see a correction or a continuation of this rally.

If the Sensex fails to close above 12016 this week, then we could expect a correction in the near term. The immediate supports for the Sensex are placed at 11721-11559-11523-11240 and for the Nifty the supports are placed at 3420-3375-3358-3275.

The midcap index is still in a corrective rally and thus should face stiff resistance at a level of 4567. One should use this rally up to 4567 to exit positions. One should only buy midcap stocks on deeper corrections in the midcap index.


Hitendra Vasudeo

For traders, trading will have to be undertaken with a well-defined stop loss and with well-defined risk per trade before executing any trade as the market can shock at times. Traders can continue to trade long till the weekly trend is up. Investors can look out to book profits and exit long positions as the market tries to hit the upper range of 12100+.

Higher levels prone to resistance

The Sensex shied away form the 12000-mark last week. The Sensex opened the week at 11824.49, attained a low at 11815.43 and moved up to a high of 11983.48 to finally close the week at 11918.65 and thereby showed a net rise of 140 points on a week-to-week basis.

The Sensex is now in the Flat pattern range. The price implication of Flat pattern is 75% to 100% of the preceding move, which in our case, is the falling move from 12671 to 8799. The 75%, 87.5% and 100% of the fall from 12671 to 8799 is placed at 11700, 12187 and 12671. We are above 11700 and knocking on the doors of 12000. In spite of some attempts to touch 12000 last week, the Sensex shied away from it. In anticipation and market consensus that 12000 plus will be difficult to sustain, we witnessed sustained profit booking at higher levels and change of hands last week. In short, we can call the band of 11700-12671 as a broad strong resistance zone. Long-term investors, who are willing to miss some upside moves, can look at the higher range of 12187-12671 as the range to book profits.

Support will be at 11815-11778 and 11651-11619. These support levels are the gaps on weekly and daily charts respectively.

The weekly trend is up since the weekly closing on 28/07/06 of 10680. Since this weekly buy signal, the Sensex has moved to a high of 11983. Traders who were able to follow our weekly update and initiated Nifty trades based on the Sensex movements as recommended would have benefited. The overall trend is the same. Therefore, an uptrend on the Sensex will also mean an uptrend for the Nifty. The difference is in price movements and the discount/premium situation will prevail. But the bottom-line is that the trend is up. Therefore, whatever the situation on the futures premium and discount situation, following the trend is more important.

As the Sensex gets sluggish at higher levels the broad market stocks have done well last week. The broad markets are doing the catching up act against the Sensex.


Let us look at the momentum-based parameters along with the Bollinger Bands. On Bollinger Bands, let us take the 21-day moving average and 2 standard deviation of the average. Along with the Bollinger Bands use ADX parameter to define the momentum. The Nifty gave a breakout and close above 3210 on 09/08/06 and since then the ADX is moving up and is above 20 which indicate that the rise was with momentum and the direction of the rise was up. Therefore, traders trading long had the opportunity to profit on long trades.

Overall on the Sensex, we found the ADX was moving up since the breakout and close above 10940. The Bollinger Bands are moving up but the width of the Upper and Lower Band has got reduced, which means that sooner or later we are going to have wide moves. The wide and strong moves will come in the direction of the price movement. If the support and stop loss of 3377 (NIFTY) and 11550 (SENSEX) get violated, then expect the bandwidth to widen and the fall can be sharper.

On a broader view, therefore, book profits and exit on spurt to higher levels. The Sensex 2 standard deviation upper band is placed at 12056 and is moving up by 30 points every day. The lower band is moving up fast by 65 points and the average is moving up by 30 points. The rising speed of the upper band is slower. Therefore, at higher levels investors need to be cautious.

Strategy for the Week

For traders, trading will have to be undertaken with a well-defined stop loss and with well-defined risk per trade before executing any trade as the market, though showing signs of an upward trend, can shock at times. Therefore, in order not to get caught off-guard by erratic market moves, money management is the key to regular success irrespective of a few failures from the trading point of view. Traders can continue to trade long till the weekly trend is up. Investors can look out to book profits and exit long positions as the market tries to hit the upper range of 12100+.





Amendments done by SEBI

Sebi has amended the fund regulations through its notification on August 3. The notification brings about two key changes. It lays the ground rule for launching 'capital protection-oriented scheme'. The other change is that regulator has hiked its fees for mutual funds.

The 'capital protection oriented schemes' will only try to protect the capital of the investors. These funds can only be closed-end funds and the asset management company will not repurchase units of capital protection-oriented scheme before end of the maturity period. Also these funds will have to be compulsorily rated by a credit rating agency for their ability to protect capital.

The other change is the hike in minimum fee for the fund houses filing offer document for the new fund offers (NFOs). They will now have to pay 0.03 per cent of the total amount raised subject to a minimum of Rs 1 lakh. This means that if a new scheme raises Rs 100 crore, it will have to give Rs 3 lakh as fee to Sebi. The application fee for launching new mutual fund scheme has been hiked from Rs 25,000 to Rs 1 lakh.

Besides these, the regulator has also doubled the registration fees for setting up new asset management company to Rs 50 lakh. The fund houses will now have to pay an annual fee of Rs 2.5 lakh. This means more revenue for the regulator.

Hike in fee is unlikely to have any significant bearing for most investors. However, this can have noticeable impact on low yielding fund categories like the cash, short-term bond funds and short duration FMPs.

Achieve your goals by managing the portfolio efficiently by HDFC Bank

Equity funds, if selected in the right manner and in the right proportion, have the ability to play an important role in achieving most long-term objectives of investors in different segments. Before you take a decision to invest in equity funds, it is important to assess your risk tolerance. It helps to understand different categories of overall risk tolerance i.e. conservative, moderate or aggressive. While a conservative investor will accept lower returns to minimise price volatility, a moderate investor would be all right with greater price volatility than conservative risk tolerances to pursue higher returns. An aggressive investor wouldn’t mind large swings in the NAVs to seek the highest returns.
While it is true that diversification helps in earning better returns with a lower level of fluctuations, it becomes counter productive when one has too many funds in the portfolio. To determine the right level of diversification, one has to consider factors like size of the portfolio, type of funds and allocation to different asset classes. Therefore, it is possible that a portfolio having 5 schemes may be adequately diversified whereas another one with 10 schemes may have very little diversification. To have a well-balanced equity portfolio, it is important to have the right level of exposure to different segments of the equity market like large cap, mid-cap and small cap. As an equity fund investor, you need to understand that volatility is an integral part of the stock market. However, if you remain focused on the long-term objectives and follow a disciplined approach to investing, you can not only handle volatility properly but also turn it to your advantage.
To analyse performance, one should consider returns as well as the risk taken to achieve those returns. Besides, consistency in terms of performance as well as portfolio selection is another factor that should play an important part while analysing the performance. Therefore, if an investment in a mutual fund scheme takes you past your risk tolerance while providing you decent returns, it cannot always be termed as good performance. You need to assess as to how much risk did the fund manger subject you to, and did he give you an adequate reward for taking that risk. Besides, you also need to consider whether own risk profile allows you to accept the revised level of risk.
There is no standard formula to determine the right time to sell an investment in mutual fund or for that matter any investment. You may consider selling a fund when your investment plan calls for a sale. You need to hold a fund long enough to evaluate its performance over a complete market cycle i.e. around three years or so. It is important to do a thorough analysis before taking a decision to sell. You should consider coming out of a fund if its performance has consistently lagged its peers for a period of one year or so. It doesn’t make sense to hold a fund when it no longer meets your needs. If you have made a proper selection, you would generally be required to make changes only if the fund changes its objective or investment style, or if your needs change.
It is always a good idea to review your portfolio periodically. While reviewing the portfolio, you must consider the following:
How is your portfolio performing from the viewpoint of your personal goals? Are you comfortable with the price fluctuations that may have occurred keeping in view your short term, medium term and long-term goals?
How are your investments performing compared with others in the same category? It is important as for example, a 15% growth in your fund may look great, but not if the average returns given by other funds in the same category is 25 percent. However, too much emphasis shouldn’t be put on the short-term performance.

Market Outlook By Experts


Anil Manghnani, Modern Shares and Stock Borkers

The Sensex has now closed beyond the 76% retracement level of 11753 and thus is likely to test the next levels of 11898 & 12016. The Sensex has closed the week above a major resistance range placed at 11735-11753 and thus should continue its upward journey to reach the next targets placed at 11898-12016. Though the Sensex is rising it is doing so with reduced volumes and this is a cause of concern. The Sensex should move to the next targets of 11898-12016 and then give into a correction. By closing beyond the 76% retracement level of 11753, the Sensex has exhibited strength and thus suggests that in the next fall the Sensex would make a higher bottom at about 10650-10600 levels. I would advise booking profits in the on going rally to enter at a lower range of 11410-11060 for trading buys and in the range of 10650-9950 for investment buys. The midcap index is still in a corrective rally and thus should face stiff resistance at a level of 4567. One should use this rally from 4326 upto 4567 to exit positions. One should only buy midcap stocks on deeper corrections in the midcap index. Although the Midcap Index closed higher this week, one clearly witnessed corrections in many midcap stocks. This is a clear indicator that most midcap stocks are in a corrective rally and are already showing early signs of fatigue. Thus my advice would be to continue exiting these stocks in every rally. Many of the pharma stocks have shown good movement in the past week with both price and volume break out. Thus one should focus on this sector in the near term as this sector could outperform the Sensex in the coming weeks.

Ashwani Gujral, Technical Analyst

Market gets ready to cross 3450 I had mentioned last time that the market is showing bull market tendencies. Now, please note that does not mean I am talking about new highs coming. I am talking about market action. Bull market action is one where ever consolidating days end positive. Corrections, when they come are either running corrections, or just one or two day minor dips, before the market recovers sharply. This market is showing all these tendencies. I think at 3000, the market was much more shaky and non trending than it is now. So today's market is a better market to be trading in, as this market is seeing good institutional flows and a strong trend to back. On chartical basis, the market has held 3400 on the Nifty very well, we believe once 3450 is taken out, the market should head to 3550-60. I can see consciously, most market gurus, are avoiding long range targets. The reason for that is the retail trader gets complacent when such targets are given. I think its more useful to plan the next 100 points on the Nifty at a time, rather than waiting on larger targets and trying to ride reactions, but that is my view as a swing trader. Sectors which look bullish at the moment are IT, autos, cement, banks. Sectors to avoid are sugar and metals. Some good breakouts I have seen over the week are Bajaj Auto, Siemens, ICICI Bank, HDFC Bank, Glaxo Smithkline, IPCL, Tata Motors, Cipla, Divi's Lab, Maruti. Overall I believe that the next week will be positive with a lot of strength in many heavyweights.

Jagdish Malkani, Member NSE

Jagdish Malkani, Member NSE says that the market has ended on a positive note today and we will carry the momentum into the next week by opening firm. Temporarily he sees the markets to be on an upswing, but maintains that we are likely to see atleast a 10% correction in the indices before the end of the year. He believes that the Nifty can touch the 3,500 levels, while the Sensex should touch 12,200 before correcting On the sectoral front, he likes the cement sector and advices buying in them. He believes that the rally in the indices will be lead by the heavyweights like RIL, ITC and Infosys Technologies. He advices staying away from the media, sugar and tea stocks, though they have seen good buying today.

Five-step guide to wealth creation.

INVEST BEFORE YOU SPEND
It is always easy to spend. Before you know it, all the money is gone. The end of the month sees you craving for the next pay. Very often, a portion of the next pay is alsospent before you actually see it. Saving for the future? You will say, “Forget it, I need the money today”. To avoid this situation, the easiest way to inculcate a discipline to save, is to invest about 10 per cent of your take-home salary right at the beginning of the month. You can then spend the balance 90 per cent without any feeling of guilt.

UNDERSTAND YOUR RISK PERSONALITY
Before undertaking any investment, it is imperative for you to know what your risk appetite is. There are two elements that define your risk personality. The first is ‘risk capacity’ which is about external factors such as the number of dependents, your age, etc. Usually, most of these elements are not in your hands. You can do little about them. The second is ‘risk tolerance’. This consists of internal and mostly controllable elements such as attitude towards investment decisions, ability to cope with losses etc. After listing out specific elements of your risk personality, you would know how much risk you can take. You might be able to take greater risks in exchange for higher returns or you might want to take little risk in exchange for low, but reasonably assured, returns. All this should help you decide if you are an aggressive, very aggressive, balanced or conservative investor.
CAUTION: Don't go by conventional ideas. They might mislead you. For example, according to accepted wisdom, a 30-year old person is supposed to be more aggressive compared to a 40-year old person. But if the 30-year old person has dependents, no accumulated wealth and is in an unsteady job, he should be more conservative in investing compared to a 40-year old person who has no dependents but has wealth and is in a rock-steady job. Your risk profile should take into account your unique situation.

ASSESS YOUR FINANCIAL NEEDS
Now that you have figured out your risk personality, you need to know what you want out of your investments. Do you want to save for a vacation next summer? Or is it for retirement? Perhaps you want to set aside some amount for your daughter's college admission that is coming up in the next five years. Each one of these needs calls for a different strategy to follow, even for persons who share similar risk profiles. The most important aspect that needs to be kept in mind is that prices will rise with time due to inflation. For instance, if your daughter is 10 years old today, her marriage at about 21 years of age, is 11 years away. If her marriage would cost you Rs 25 lakh today, it will cost you much more when she is ready for marriage. This is because of inflation. Taking a 5 per cent annual increase in inflation, the Rs 25 lakh cost today will rise to about Rs 42.5 lakh after 11 years
YOUR RISK PERONALITY
RISK CAPACITY (This includes your)
x Age
x Income
x Number of dependants
x Stability of job/career
x Financial literacy

RISK TOLERANCE (This includes your)
x Personality
x Attitude towards investment decisions
x Ability to cope with losses


Broadly, check if you need the money for recurring expenses or for a one-time event like buying a house, child's marriage, etc. Recurring expenses can be usually taken care of by generating returns from safe investments like RBI Relief bonds, debt oriented mutual funds and so on. Event-based expenses can be tackled by investing in equity for a long term and converting the investment into safer debt choices closer to the event.

DIVERSIFY TO REDUCE RISK
Risk management is the cornerstone of any financial planning effort. One of the basic principles of portfolio building is diversification. As the old saying goes, "Don't put all your eggs in one basket." This is imperative since no two investments behave exactly the same way. Investing in only one type of investment will make your portfolio lopsided and lead to higher risk. A mix of investments is the best way to bring down the portfolio risk.

MONITORING INVESTMENTS
We live in an era of dynamic investments. Risk and return profiles of investments are changing by the day. Couple of years ago, if you had been told that PPF was going to fetch a 8 per cent return you would have laughed at the statement. But that is exactly what has happened now. Investments have been changing since economies are in a flux and business cycles are shortening. Rock-solid investments may look wobbly a few years down the line. You have no choice but to monitor if possible on a quarterly basis, whether your investments are in line with your expectations, risk profile and needs.
REMEMBER
The key is to undertake all the above-mentioned steps together and not in isolation. Doing so will enable you to create wealth, achieve financial security and attain freedom.
Thanks to : http://idbipb.in

Benefits of Diversification by HDFC Bank


Diversification helps reduce risk. The benefits of diversifying one’s portfolio are, of course, known to all. It helps align our investment portfolio with our financial-cum-risk profile. It protects us from any downside in one particular asset class.
As each one of has a unique financial-cum-risk profile, each one of us must:
Build a suitable mix of investment across various assets classes viz. debt, equity, real estate, gold etc.
Even among the broad asset class like debt or equity, there are sub-classes. One must diversify suitably across these sub-classes too. For example in debt one must invest suitably in Bank FD, NSC/KVP and PPF etc. Or in equity one has to diversify across large-cap, mid-cap, small-cap, sector-specific.
Going further, even within particular sub-class say large-cap equity, one has to choose a mix of individual stocks.
The overall approach is a top-down one i.e. starting from the broad allocation across asset classes, you move down to choosing individual investment options. We could invest separately in each of the individual option as per our desired allocation strategy. This approach gives us the total flexibility to choose what we want. We have full control over our financial decisions. But this approach:
Can become a bit cumbersome
Requires one to have the time and the knowledge to identify and invest separately in individual opportunities.
A fairly large corpus is needed to achieve the desired diversification
The transaction costs could work out to be high
The tax efficiency is low
Mutual Funds offer some simplification and tax-efficiency, but this so far is limited to equity and debt. We may, however, shortly see real estate and gold funds too. Even within say debt all instruments are not included such as PPF, where we would still have to invest separately. Further, Mutual Funds also offer different routes to achieving the desired diversification. The choice of route usually does not affect the overall returns, which is more a result of the ultimate choice of funds that we make under a particular route. To make the portfolio more suited to our needs and invest across fund houses, we could go in mixed schemes such as MIP or balanced mutual funds. Herein the corpus gets invested in individual stocks and bonds based on the allocation percentage. You could, for example, invest in a balanced fund where 60-65% of the corpus gets invested in individual stocks and the balance 35-40% in different bonds.
In a step further to the previous route, we choose different dedicated equity and debt funds, instead of mixed funds. The benefit of course is higher degree of flexibility to construct a portfolio more in line with our needs. By choosing different funds covering different sectors in the market, we can achieve a high level of diversification across entire market – both debt & equity. But the drawback is a further increase in the number of individual funds we need to invest in and manage. Also, at the time of portfolio rebalancing, we could end-up with a higher tax-outgo.
Given these various routes available, we can choose the one, which suits us the most from the perspective of time, knowledge and efforts that we can devote to managing one’s finances.

Avoid making mistakes while investing - Advices HDFC Bank

Each one of us can win in the investing world if we focus on some basics and implement them diligently. It is important that you know what is important about money to you. Money is a means to an end and not an end in itself. Know what your values are about money. When you know what your values are, decision-making becomes far easier and focusing on your values can motivate you to achieve. When you ask people what their values are, a common answer is 'Security of their family', but yet when it comes to ensuring that you have done something in that area, people end up buying a Rs 5 -10 Lakh insurance policies as if this amount were to last a lifetime. A rough estimate, around 95 % of the people in India might be underinsured.
Concentrate on what returns you need to achieve your goals as this can help you to stay away from risk that is unnecessary. People often look at returns ignoring the risk component. Most of us want an investment with high returns and no risk or less risk. Investors tend to focus only on returns when investing in stocks and mutual funds.
While investing look at the following:
a. What kind of stocks is this fund invested in? b. Is this concentrated in a few stocks or few sectors? c. What is the Standard Deviation and Beta?
Asset Allocation is the most important decision that an investor must make to achieve his financial goals and effectively manage risk. This means you need to focus on what percentage of your money should go into Equity, Debt, Real Estate, Gold and Cash. A number of studies have shown that a portfolio’s asset strategy is the driving force behind portfolio performance and that over a period of time, it accounts for more than 90% of the variation in overall returns. In India there is an under ownership of equity and hence most of the portfolios are skewed towards Cash & Debt (RBI Bonds, Post Office Schemes, & Endowment Plans from LIC) or Real Estate (due to the ticket size) and Gold.
Every portfolio must have an exposure to equity to maintain purchasing power. Every equity portfolio should comprise essentially of rock steady large cap stocks. At the same time it could be helpful to have midcap stock, a stock, which has potential to become a large cap. Midcaps can provide that extra punch when the aggressive streak is needed.
One of the biggest mistakes that people commit is in their selection of insurance products. People spend Rs 20000 or more for their car insurance for a cover of 6-7 lakhs but when it comes to insuring their lives for around Rs 40 Lakhs-50 Lakhs for the same premium, they prefer an investment policy to a pure term plan on the pretext that “I will not get anything back if nothing happens to me”. Most of the endowment products cost you around 30-40%, which is reflected in the returns that you receive. Some other critical mistakes include, not recognizing the impact inflation has on one’s wealth, thinking that you can time the markets, delay in making a Will, and not having a written Investment Strategy and Plan.
You must do the right thing to get results and achieve goals while staying away from stupid and costly mistakes.
Thanks : HDFC Bank

In the hindsight


Hi, I am writing this after a very long gap I sold all my holdings much before the fall has started. This action was not a result of following a good trading plan. But mere gut feeling which can not be adored of . Recently I have the chance to read an well written editorial of THE FINAPOLIS , a monthly run by The Karvy.

They listed some lessons that the fall of the market throws .

Every fall is not a buying opportunity

The market is about people, after all . When human sentiments take precedence over the compelling power of logic, any discussion on fundamental or technical factors would be an exercise in futility

Smart investors should use market peace to prepare for the war. – During consolidation, investors need to focus on critical functions like understanding the prospects of the companies they own, taking a serious relook at their portfolio mix and using the volatility in the market to appropriately shuffle their portfolios

In the hindsight


Hi, I am writing this after a very long gap I sold all my holdings much before the fall has started. This action was not a result of following a good trading plan. But mere gut feeling which can not be adored of . Recently I have the chance to read an well written editorial of THE FINAPOLIS , a monthly run by The Karvy.

They listed some lessons that the fall the market throws .

Every fall is not a buying opportunity

The market is about people, after all . When human sentiments take precedence over the compelling power of logic, any discussion on fundamental or technical factors would be an exercise in futility

Smart investors should use market peace to prepare for the war. – During consolidation, investors need to focus on critical functions like understanding the prospects of the companies they own, taking a serious relook at their portfolio mix and using the volatility in the market to appropriately shuffle their portfolios

INVESTMENT STRATEGY : Investors should have a Long-Term Horizon By HDFC Bank


While one continues to remain optimistic about the prospects of Indian Companies, one should believe that the re-rating of Indian equities over the last 3 years had led Nifty P/E to go from about 12 in 2003 to over 21 now. This level of P/E when compared with the historic average of about 17 is a result of large arrears from the past and partly an advance from the future. This gives a reason for one to participate in equity in a measured manner for incremental investments.
In other words, one has to appropriately adjust the time horizon returns to realize acceptable returns from equities. Moreover, the most crucial economic changes that has triggered a growth phase in India is a change in interest rates. The lower rate of interest has led corporates to go for "capital expansion" and encourage consumers to go for" consumption expansion", but the honeymoon period for the interest rates seems to be coming to an end.
Due to the concern of an asset bubble, RBI has outlined the possibility of hardening interest rate environment. If this happens, the pace of capital formation and ongoing consumption boom might be rationalized. Therefore, the equity investors would look forward to a greater risk premium, which would translate into a need for longer investment horizon. As we know, risk reduces with time in the market.
But the investor has to realize that to capture the upside of a going Indian economy; he needs to have a long-term horizon, more so at current valuations.
The almost meteoric rise in index over the last few months is also a result of liquidity flow in the market. Over a long period, it is expected to continue or even grow, as more household savings are allocated to equity asset class. One other interesting observation over the last few months is a negative flow from FIIs into the market getting counter balanced by the rise in mutual fund assets. This is very positive for the Indian markets. In short term, the liquidity flow may be volatile, hence, in an endeavor to participate in the upside of equity markets, investors also need to limit the downside risk of investment.
Moreover, investors need to focus on quality at this point of time and they should be selective in direct equity as well as in funds. Investors should realign their investments and move into funds, which can endeavor to preserve the capital on the downside.
Thanks to : HDFC Bank

Watch Dewan Housing. Only Buyers. Locked 20% upper circuit

Watch Dewan Housing. This scrip has touched 52w high also locked 20% upper filter today. Large no.of brokers come out with a Buy recommendation on Gitanjili gems. Also watch Adani export which locked 5% upper circuit for the 3rd consecutive day. It is said to be acquiring a real estate in Mumbai. Suryaroshani still looking good. It stays cool all through the market turbulence.
These are all not my buy recommendations. These stocks attracted my attention. That’s all.

Watch Suryaroshani and KIL.

Watch Suryaroshani and KIL. They are rising in the falling markets with good volume. KIL locked 10 % upper circuit for the asecond day in a row.

Watch Suryaroshani and KIL.

Watch Suryaroshani and KIL. They are rising in the falling markets with good volume. KIL locked 10 % upper circuit for the asecond day in a row.

Know your Risk & Stick to it

Risk vs Return
The first aspect of financial planning that an Investment Advisor considers is Risk-Return requirement. This is a key factor irrespective of the Wealth of the client. Risk is defined as money one is ready to loose in case of a downfall in the market. The amount of Risk that one takes, decides the kind of Returns / investment strategy and asset classes one needs to consider for investment. The First factor that one has to decide before making an investment decision should, therefore, be risk profile rather than return. For more please click here

Portfolio Re-Balancing – why is it important and how you can do it



Over the course of the year, the market value of each security within your portfolio earned a different return, resulting in a change in the allocation pie. This might change the investor's risk profile. While in the short term this may not have an adverse impact, such changes in risk profiles can have a far-reaching impact in the longer run. Portfolio rebalancing is a strategy that allows individuals to keep their risk level in check and minimize risk.

What is re-balancing?
Re-balancing is the process of buying and selling portions of your portfolio in order to set the weight of each asset class back to its original state. In addition, if an investor's investment strategy or tolerance for risk has changed, he or she can use rebalancing to readjust the weightages of each security or asset class in the portfolio to fulfill a newly devised asset allocation. Assume an investor's portfolio worth Rs 1,00,000 is invested in equity funds (40%), Bond Funds (40%) and liquid funds (20%). In other words, Rs 40,000 will be invested in equity funds, Rs 40,000 will be invested in bond funds and Rs 20,000 will be invested in liquid funds. Let's assume that in Year 1, equity funds deliver 50% return, bond funds loose 2% and liquid funds give a modest 4% return. Overall, the portfolio has returned 8%, but that's more due to the equities.
In year 2, assume equity markets fall. So assume, equity funds fall by 10%. Also assume that Bond funds on the other hand rebound and return 9%, while liquid funds continue with 4%.
Now assume two scenarios, viz. one where the above investor switches back to his original asset allocation, and the other where the investor doesn't reallocate his assets as per his original allocation and ignores the change.


while the rebalanced portfolio appreciates to Rs 1,20,480, the value of the ignored portfolio actually falls to Rs 1,18,360. As can be seen, the ignored portfolio got swayed by the equity return in Year 1 and therefore chose not to go back on the original asset allocation, not knowing that equities as an asset class can be quite volatile in the short run. A fall drop in the equities in Year 2 was enough to result in the ignored portfolio to under-perform the rebalanced portfolio. Re-balancing strategy is, therefore, the optimal strategy.

Benefits of portfolio rebalancing

Disciplined investingRe-balancing is a vital part of investment policy - there can be no asset allocation target without the discipline to preserve that target.
Reduces riskA plan may incur higher risk if no rebalancing policy exists. This is true particularly for equity allocations, which can rapidly rise in a bull market. For instance, portfolio rebalancing ensures that in rising equity markets, the asset allocation doesn't get skewed towards equities and the portfolio correctly reflects the investor's risk profile. It also ensures that the portfolio is adequately diversified.
Buy low, sell highRebalancing is a mechanism for sensible timing - the process naturally buys low and sells high. This strategy ensures that the portfolio returns are enhanced. A clear re-balancing policy avoids the risks of ad-hoc and costly portfolio revisions.
Balanced Funds – a better way to portfolio re-balancingOne way to rebalance the portfolio is to do it ourselves. In other words, investments can be made in equity and debt funds separately and then adequate re-balancing can be done depending on how the equity and debt markets perform.
Another simple way to ensure portfolio re-balancing is to invest in Balanced Funds. Here, the fund manager does the re-balancing and not the investor. Usually, all balanced funds invest around 65-70% in equity markets and the rest in debt and money market instruments as per their stated asset allocation mix.
So when equity markets keep rising consistently, Balanced Funds are mandated to book profits and bring their equity allocation back to their stated levels. This way, balanced funds carry a low downside risk as when equity markets fall, balanced funds take a lesser hit than diversified equity funds, as their exposure to equities is low.
Thanks to HDFC Bank

From Parag Parikh


Key to any good investment is discipline and the ability to control your emotions.
Don’t get in at peaks: Stock markets are not always the barometer of the economy, or even of a company. With globalization and hot fund flows, they have become glorified casinos and don’t always reflect the true worth of its constituents. Bear in mind that momentum works both ways – you could crash as easily as you soar.

BROKER CALLS


12:34:14 - Market is highly volatile, traders are advised to buy fundamentally sound cash scrips
12:17:01 - Our Relinace Industries SL triggered
11:29:30 - Buy Bharti Tele Ventures for 2 days at Rs407 with SL of Rs404 and tgt of Rs 416 - Deepak
11:29:29 - Buy Bharti Tele Ventures for 2 days at Rs407 with SL of Rs404 and tgt of Rs 416 - Deepak
11:20:15 - Our Dwarkesh sugar Sl triggered - Pritesh
11:20:14 - Our Dwarkesh sugar Sl triggered - Pritesh
11:14:02 - high risk trade buy apil cmp 381.5 with a sl of Rs 375 target 390 and 393 - Biren
11:14:01 - high risk trade buy apil cmp 381.5 with a sl of Rs 375 target 390 and 393 - Biren
11:10:00 - Buy Reliance Indus at Rs854 with SL of Rs849 and tgt of Rs863
10:45:22 - Rajesh Exports secures order worth Rs1.78bn from UAE
10:42:47 - Buy Srf at Rs360 with Sl of Rs355.50 and tgt of Rs368, 372 - Pritesh
10:17:13 - BUY JKCEMENT CMP 187.5 WITH A SL OF rS 183 TARGET 195 AND 198 - Biren
10:16:52 - Mphasis BFL cancels proposal to buy back shares
10:16:00 - Buy Dwarkesh Sugar at Rs273 with Sl of Rs269 and tgt of Rs281 - Pritesh
10:08:47 - BUY DHAMPUR SUG CMP 250.5 WITH A SL OF RS 245 TARGET 260 AND 263 - Biren
10:06:53 - Our BTST call of hindalco has gained by over 2% to Rs200
10:06:51 - Our BTST call of hindalco has gained by over 2% to Rs200

15:11:27 - Sensex down by over 300 points
15:10:34 - Mastek reports Q3 profit of Rs173mn and sales in the quarter ended March 31 were Rs1.8bn
15:10:33 - Mastek reports Q3 profit of Rs173mn and sales in the quarter ended March 31 were Rs1.8bn
14:43:24 - Shree Renuka Sugars approves raising overseas investment limit to 49%
14:42:41 - Shree Renuka Sugars to buy Power plant for Rs397.2mn
14:41:38 - Asian markets end weak, Nikkei Index down 256 pts, Hang Seng Index down 165 points
14:34:16 - TCS to partner Deutsche Bank - Reports
14:05:59 - Reliance Petroluem in talks for stake sale to global companies
14:05:07 - Reliance Petroluem shares may list in 1st week of May
14:05:06 - Reliance Petroluem shares may list in 1st week of May
13:43:58 - Nifty has lost 58 pts at 3420, support for the Nifty is expected at around 3390 levels
13:35:16 - Aarti Drugs form venture to sell drug ingredients on China
13:23:29 - ACC Q1 other income at Rs537mn (up 28.7%)
13:23:28 - ACC Q1 other income at Rs537mn (up 28.7%)
13:07:53 - ACC results includes figures of Bargarh Cement Ltd, Damodhar Cement & Slag Ltd which are merged with the Company with effect from April 01, 2005,
12:58:28 - ACC Q1 revenue at Rs13.81bn (up 19.5%)
12:55:53 - ACC Q1 profit at Rs2.35bn (up 41.5%)
12:55:52 - ACC Q1 profit at Rs2.35bn (up 41.5%)
12:34:20 - Market is highly volatile, traders are advised to buy fundamentally sound cash scrips
12:14:41 - India's February Industrial production rises 8.8% on year
12:14:40 - India's February Industrial production rises 8.8% on year
12:06:15 - Apollo Tyres will sell shares to raise funds and buy rivals
12:04:44 - Apollo Tyres Board approves Rs4.5bn fundraising plan
12:00:56 - i-Flex secures order from 3 banks in Chile
12:00:55 - i-Flex secures order from 3 banks in Chile
11:57:16 - PVR to consider interim dividend on April 24
11:57:15 - PVR to consider interim dividend on April 24
11:50:00 - ORG Informatics bags order of Rs1700mn from Bharat Electronics
11:33:59 - Hindustan Zinc raises Zinc prices - Reports
11:33:58 - Hindustan Zinc raises Zinc prices - Reports
11:31:22 - Cipla raises $170mn selling shares overseas
11:15:36 - Satyam & Optimation in strategic partnership in New Zealand
11:13:06 - TV 18 Board to consider raising funds on April 18
10:45:31 - Rajesh Exports secures order worth Rs1.78bn from UAE
10:34:26 - Hero Honda says it expects solution to strike 'very soon'
10:23:36 - Subex Systems Board to recommend dividend on April 25
09:48:21 - Results Today: ACC, Mastek, Aztec Software, CCL Products, CRISIL and Shree Renuka Sugars.

"Sizzle with the Sensex!” By HDFC Bank


The Sensex is breaking new barriers, reaching historic highs and creating waves of enthusiasm in the minds of the one and all. The victory of the bulls over the bears has resulted in the Sensex racing to unprecedented highs. In the midst of such enthusiasm it is important for investors to plan out their investments with due care and caution. Investors should not get carried away by the booming Sensex. This is the time for introspection where investors should analyze their needs before taking any major investment decision.
So the questions that are require an answer at this point of time are: Firstly, is it the right time to enter equity markets for a new investor? Secondly, what should be the strategy for the existing investors? Thirdly, in case equity investments are not a viable option, what are the other avenues that a person can consider?
Any investment plan should always be a function of your needs, requirements and your profile. The most important factor should be one’s own individual needs and requirements and not the levels of Sensex. It is important for investors to adopt a disciplined approach to investment. Thus, for an existing investor it is important to revisit the portfolio at such levels and redeem his units to make his risk return proportion in sync with his profile. Generally it is always better to revisit your investment portfolio regularly so as to ensure that it is in sync with your requirements. When a person is in his early 20s he is advised significant exposure to equities as his obligations and commitments are quite less. As a result he can have a significant exposure to equity and equity related instruments. However, when the individual gets married and has children, it is felt that his risk appetite should be reduced as he has obligations to fulfill. The obligations can be towards his family or towards his child’s education, marriage etc. Suffice it to say that since his obligations have increased his exposure towards equities should be reduced proportionately. When the person is nearing his retirement, his exposure to equities should further decline.
Stock market is essentially a reflection of sentiments. Under the current scenario there are positive sentiments about the markets. In case the investor is interested in investing over a long time horizon then it is perfectly acceptable to invest at this time. Thus, while entering at this time it is always better to invest with a long-term horizon. Once the investor has decided to invest, there are two options that are available to the investor. He can either choose to invest regularly over a period or invest in lump sum amounts whenever he deems it fit to do so. While the first option of regular investing is all about disciplined investing, the second approach is about attempting to time the market. If one is lucky enough, his timing may prove right and he may gain more. However, such an approach is extremely risky as it is a well-known fact that markets cannot be timed. Under the current scenario it is advisable for investors to enter the market through regular investments. Systematic investment plan and value averaging are two techniques of approaching investments in a phased manner.
SIP is increasingly gaining popularity among the retail investors. SIP is a mode of investment in mutual funds wherein an investor can invest a fixed amount regularly irrespective of the market level (on monthly or quarterly basis). The fixed amount is either directly debited from the bank account or is paid using post-dated cheques. Through this regular investment routine, one is able to invest in a disciplined manner. When one invests over a period using SIP the cost of units acquired is not dependent upon the prices prevailing at a particular point, but over a period. This method reduces the risk of entering the market at the wrong time.
For those investors who are interested in entering the market for a shorter time frame, we advise to wait for a correction. It is a well-known and accepted principle that equity investments act as a shield against inflation. But investing blindly in equities may not be appropriate. Investors will have to carry out a close analysis and introspection before taking a final call relating to the investment decision. A careful investment decision made after due deliberation can in fact make you “sizzle with the Sensex!”

Confusing Risk with Volatility


Too often, people confuse risk with volatility. Risk and volatility are not synonymous!
Risk is usually defined as the potential for loss. But to us, risk is really unmanaged volatility. Volatilityarises from random price movements which occurs naturally in every market. Without volatility, there can be no profit opportunity. Volatility is what drives markets either up or down and helps form and sustain trends. The greater the volatility, the greater the profit opportunity. Conversely, when there is little or no volatility, there is little or no profit opportunity. Markets will tend to drift sideways. To us, harnessing volatility is managed risk.
Volatility is like electricity. It can be both dangerous and useful. For instance, a downed power line is dangerous. It frightens everyone except the repairman. He understands the risk because he's been trained to identify it and then manage and contain it. Once the downed power line is repaired, what was once dangerous becomes useful again. But because its dangerous, should electricity be avoided? Hardly. To be useful, electricity must be harnessed or managed. The same holds true for trading.
Entering a market without first identifying risk is foolish. And doing so without protecting against risk is as foolish as someone walking through a puddle of water with a downed power line across it. Like electricity, volatility should be respected, not feared. When properly harnessed, volatility becomes extremely useful because it fuels profits.
Each time you enter a market, you must identify the risk associated with that particular trade. Onceidentified, you need to limit the risk with a protective stop loss order. In the event that volatility forces the market to move against you, a stop loss order acts like an electrical fuse. It quickly and safely gets you out of the trade, thus preserving the lion's share of capital for the next opportunity.
An Illustration
Take Crude Oil. Crude is a very volatile market. Consequently, it tends to trend very well and often. And when it trends, the profit potential can be huge. Conversely, without managing volatility, it can be extremely dangerous. Because of the leverage used to trade Crude, each time it moves a penny, your account balance would change by $10.00 for each contract traded. Thus, a $1.00 move would represent a $1,000 change per contract. So, if you bought Crude Oil and it moved up by $1.00, your account balance would increase by $1,000. Conversely, if it moved down by 1.00, it would decrease it by $1,000. Suppose you bought 3 contracts when Crude Oil was trading at $63.00. Suppose you also set a stop loss order to sell it if it dropped back to $61.90. If it did, you'd exit with a loss of $1,100 per contract ($63.00 - $61.90 x $10.00) or $3,300 in total. That would be well within your risk tolerance of 3.5% for a $100,000 account.
If Crude moved up by $1.50, your account balance would increase $1,500 x 3 or $4,500. But suppose after it moved up $1.50, it moved down $2.00 a few hours later. Crude can frequently move $1.00 in an hour.
One moment, your account balance swelled by $4,500 only to turn negative by $1,500 within hours. To the uninitiated and inexperienced, that can be unnerving. Remember though, you set a protective stop at $61.90. You predetermined that, after you enter the trade, you were willing to let the market move as much as $1.49 against you before it moved back in your favor.
In this example, the trade moved $4,500 in your favor and then $3,297 against you. That $7,800 differential is volatility. It is not risk. It's completely normal and must be expected.
Now suppose Crude had momentarily moved up $4,500 only to later hit the protective stop which caused a loss. To the inexperienced, they might think they just lost $4,500 in profits. That's certainly easy to think after the trade ended. It also presupposes you knew Crude wouldn't move higher than $4,500 before falling back and hitting the stop. Both suggestions of course are equally ridiculous.
Reality tells us something else. First, all markets ebb and flow. Between the time a trade begins and ends, the market is going to move up and down. Second, its impossible to capture the entire range of a trade between entry and exit. If you are able to capture 50%, consider yourself fortunate. So, if you bought Crude at $63.00 and it traded to a high of $69.00 before you exited, you might capture only $3.00 of the move. And if you did, you'd net at least $9,000 ($1,000 x $3.00 x 3 contracts). That's a return of $9,000 having risked just $3,300.
There is considerable leverage trading commodity futures. That's why the profit potential is so
enormous. In the illustration above, you saw that a one penny move in Crude Oil represents a potential $10 gain or a $10 loss. Leverage can certainly magnify volatility. But it doesn't necessarily increase risk.
With a risk management strategy that caps risk at 3.5% for every market traded, the degree of volatility is no longer an issue. A 3.5% loss trading Crude Oil is just the same as a 3.5% loss trading Exxon stock. But where a one penny move in Exxon is worth only a penny, a one penny move in Crude is worth 1,000 times more. If you knew that your risk was limited to 3.5%, which would you rather trade? The answer should be obvious.
There is something else to keep in mind. As an account balance grows, as more markets are being traded, and the longer trends last, the fluctuations of an account's balance will become even more pronounced. But no matter how dramatic the volatility may be, it won't change risk.
Now take this one step further. Suppose you were trading Crude Oil plus the Swiss Franc and the Dow Index. Also suppose you capped risk at 3.5% for each market. Theoretically at least, if you were trading all 3 markets at the same time and each market moved against you by 3.4% without ever hitting your protective stop, your account balance would momentarily drop by over $10,000. And if those 3 markets later moved simultaneously in your favor by $4,500 each, your account balance would appear to skyrocket from a negative $10,000 to a positive $13,500. That $23,000 differential would not be unusual. It would be normal volatility.
And the risk never changed. Such fluctuations do not reflect trading performance and should not be used as a measurement. It would be foolish to judge the effectiveness of a trading methodology by fluctuations in an account balance. It would be even more foolish to draw any conclusions based on momentary spikes to an account balance. Trades can only be judged after they're closed. Hopefully, this illustration shows why volatility is not the same as risk. Risk, or more specifically unmanaged risk, arises when you fail to set protective stop loss orders that let a trade go more than a predetermined amount or percentage against you. Remember, volatility drives markets and fuels profit opportunity. Volatility is good. Unmanaged risk is bad.
In the final analysis, the only aspect of trading that you can control is risk. Nothing else. You can't control profits anymore than you can predict what a market is going to do or when. But risk always remains within your control and is the most important aspect of profitable trading. You might say that successful trading is much more a game of defense than of offense.
Once identified, protective stop loss orders limit risk to a small, predetermined percent of capital. That allow the market to perform naturally. If it moves in your favor, the stop order will be moot since you will probably exit the trade with a profit. And if the stop order is hit, you can reset assured that your loss was small and manageable and that your capital wasn't damaged.
Combining a trading methodology that has an expectancy of a positive outcome every time you enter a market with well conceived risk management, you will ultimately succeed because you will generate more profits from winning trades than loses from losing trades.

Copyright 2006 * Wildwood Partners, LLC

My Broker Call

15:19:01 - Our Buy Today Sell Tomorrow call: Buy Bajaj Auto at Rs2855
15:10:56 - Our Buy Today Sell Tomorrow call: Buy Escorts at Rs101
15:06:50 - Our Buy Today Sell Tomorrow call: Buy ACC at Rs832
14:52:16 - Our Buy Today Sell Tomorrow call: Buy Colgate at Rs449
14:47:29 - Our SL triggered Dr Reddy's Lab call - Pritesh
14:45:31 - Our 1-month delivery call of ACC given on March 27 has achieved the tgt of Rs820 - Pritesh
14:34:21 - Buy dr Reddy's Lab at Rs1476 with SL of Rs1464 and tgt of Rs1497 - Pritesh
14:32:19 - buy srei infra cmp 61 with a sl of Rs 59 target 65 and 67 - Biren
14:32:18 - buy srei infra cmp 61 with a sl of Rs 59 target 65 and 67 - Biren
14:25:58 - Buy Divis Lab at Rs1990 with SL of Rs1977 and tgt of Rs2024
14:08:00 - buy nicholas pir cmp 278.5 with a sl of R 274 target 286 and 289 - Biren
14:07:24 - Our l&t call bang on tgt
13:56:44 - Correction: update Alok Ind sl from 75 to 77 now trade is safe - Biren
13:55:34 - update also ind sl from 75 to 77 now trade is safe - Biren
13:38:10 - update pratibha sl from 259 to 262 now - Biren
13:17:58 - Buy Mphasis BFL at Rs220 with Sl of Rs216 and tgt of Rs228 - Pritesh
12:56:18 - Our BTST call of VSNL has gained by 2%, book profit in the scrip
12:46:04 - Buy Aptech at CMP Rs140 for delivery of 2 weeks with tgt of Rs162
12:05:15 - High risk traders buy L&T at Rs2602 with SL of Rs2589 and tgt of Rs2637
12:05:14 - High risk traders buy L&T at Rs2602 with SL of Rs2589 and tgt of Rs2637
11:42:57 - Holdings & limits updated so check positions now and take fresh positions
11:42:56 - Holdings & limits updated so check positions now and take fresh positions
11:37:25 - our nagar cons bang on target (393) - Biren
11:35:01 - our nagar cons bang on target (390) - Biren
11:35:00 - our nagar cons bang on target (390) - Biren
11:28:39 - BUY NAGAR CONS CMP 382 WITH A SL OF RS 378 TARGET 390 AND 393 - Biren
11:13:50 - Buy Inox at Rs216 with SL of Rs212 and tgt of Rs221, 224 - Pritesh
11:13:08 - BUY SEAMECLTD CMP 115. WITH A SL OF RS 112 TARGET 121 AND 123- biren
11:01:04 - Our BTST call of APIL has surged by over 3.50 %, book profit in the scrip
10:58:57 - Our BTST call of STER has gained by over 2% to Rs2006, book profit in the scrip
10:58:56 - Our BTST call of STER has gained by over 2% to Rs2006, book profit in the scrip
10:47:49 - Buy Indian cement at 175 SL 172 and TGT 182 - Deepak
10:47:48 - Buy Indian cement at 175 SL 172 and TGT 182 - Deepak
10:23:42 - buy pratibha cmp 264.2 with a sl of Rs 259 target 275 and 277 - Biren
10:22:45 - buy pratibha cmp 264.2 with a sl of Rs 259 target 275 and 277 - Biren
10:18:15 - buy alok ind cmp 77.1 sl 75 target 82 and 84 - Biren
10:13:14 - TT5- Mesg-Rates refresh will delay for login ID A to M. For next 5 minutes
10:06:36 - buy indswfitlab cmp 121.5 with a sl of Rs 118 target 127 and 129 - Biren
10:05:05 - Our BTST call of APIL has gained by over 3%

My Broker's Calls


15:24:06 - Our Buy Today sell Tomorrow call: Buy divis Lab at Rs1870
15:21:07 - Our Buy Today sell Tomorrow call: Buy BRFL at Rs132.80
15:21:06 - Our Buy Today sell Tomorrow call: Buy BRFL at Rs132.80
15:10:47 - Our Buy Today sell Tomorrow call: Buy Maharashtra Seamless at Rs674
15:10:46 - Our Buy Today sell Tomorrow call: Buy Maharashtra Seamless at Rs674
15:03:41 - Markets are witnessing profit booking, traders be cautious
15:03:40 - Markets are witnessing profit booking, traders be cautious
14:57:44 - Our Buy Today sell Tomorrow call: Buy Colgate at Rs426
14:57:43 - Our Buy Today sell Tomorrow call: Buy Colgate at Rs426
14:56:13 - our second tgt acheived in colgate call - Pritesh
14:48:45 - Our tgt acheived in Tata Chem call - Deepak
14:23:51 - our Titan call given in the morning is on fire at Rs847
14:15:27 - Our tgt acheived in Maharashtra Seamless call
14:15:26 - Our tgt acheived in Maharashtra Seamless call
14:09:27 - our satyam Comp sl Triggered - Pritesh
14:07:38 - Buy Maharashtra Seamless at Rs661 with SL of Rs655 and tgt of Rs671
13:59:53 - HIGH RISK TRADE BUY BAJAJHIND CMP 509 WITH A SL OF RS 504 TARGET 519 AND 522 - Biren
13:59:52 - HIGH RISK TRADE BUY BAJAJHIND CMP 509 WITH A SL OF RS 504 TARGET 519 AND 522 - Biren
13:27:26 - Buy Satyam Computer at Rs861 with SL of Rs855 and tgt of Rs870 - pritesh
13:27:25 - Buy Satyam Computer at Rs861 with SL of Rs855 and tgt of Rs870 - pritesh
13:17:03 - Our mukandltd bang on target 118 - Biren
13:04:40 - NDTV Rs 251 buy sl Rs 249 tgt Rs 258 - deepak
11:57:40 - Buy J & K bank at Rs 454.50 with SL of Rs 447 and tgt Rs 460 and Rs 465 - Deepak
11:47:16 - Our BTST call of SRF has gained by over 4%
11:37:48 - buy kesoram cmp 216.8 with a sl of Rs 214 target 224 and 227 - biren
11:31:37 - Our first tgt acheived in Colgate call, book profit partially in the scrip - Pritesh
11:20:05 - Buy Siemens for delivery of 2 weeks around leevls of Rs5700 with SL of Rs5625 and tgt of Rs6100
11:20:04 - Buy Siemens for delivery of 2 weeks around leevls of Rs5700 with SL of Rs5625 and tgt of Rs6100
11:08:19 - buy pnb cmp 484 with a sl of Rs 479 target 492 and 495 - Biren
11:08:18 - buy pnb cmp 484 with a sl of Rs 479 target 492 and 495 - Biren
11:07:46 - Buy Jain Irrigation around 246 levels with SL of 240 convert in short-term investment above 251 for price target of 274 within 4 weeks - Deepak
10:56:51 - Our Punj Lloyd call is going strong at Rs1098, close to acheiving the tgt
10:56:50 - Our Punj Lloyd call is going strong at Rs1098, close to acheiving the tgt
10:54:00 - Buy Colgate at Rs419 with Sl of Rs414 and tgt of Rs426, 428 - Pritesh
10:52:33 - Buy Punj Lloyd at Rs1086 with SL of Rs1074 and tgt of Rs1105
10:52:32 - Buy Punj Lloyd at Rs1086 with SL of Rs1074 and tgt of Rs1105
10:42:14 - buy mukandltd cmp 111.25 with a sl of Rs 108 target 117 and 119 - biren
10:18:56 - Our fundamental delivery call of RPG transmission given on March 27 has gained by over 6% to Rs240
10:14:15 - Buy VSNL at Rs 475 with SL of Rs 466 and tgt Rs 485+: Deepak
10:14:14 - Buy VSNL at Rs 475 with SL of Rs 466 and tgt Rs 485+: Deepak
10:12:41 - Our Titan Call bang on tgt
10:09:17 - buy Titan at Rs814 with SL of Rs806 and tgt of Rs824
10:02:50 - Buy Tata chem at Rs 253.50 SL of Rs 250 and tgt Rs 258 - Deepak

Fidelity India Special Situations Fund

Fidelity Mutual Fund is going to launch today a new category of equity funds in India - with the launch of Fidelity India Special Situations Fund. The product brochure, KIM and offer document are available in the links provided below :
1. KIM and Application Form : http://www.fidelity.co.in/downloads/FIDELITY-INDIA-SPECIAL-SITU-KIM--INTERNET-FULL.pdf
3. Product Brochure : http://www.fidelity.co.in/downloads/Product%208pg.pdf
The new fund offer opens for subscription on March 28, 2006 and will close for subscription on April 26, 2006. The fund will re-open for ongoing subscription on May 25, 2006.
The load structures for NFO and ongoing offer of Fidelity India Special Situations Fund (FISS)are as under :
Load Structure Entry load (lump sum investments) : Applications <>= Rs. 5 crores : Nil Entry load (SIP) : 1.25% for a SIP where a single instalment is less than or equal to Rs. 1 lakh Nil for a SIP where a single instalment is greater than or equal to Rs. 5 crores 2.25% for a SIP where single instalment of more than Rs. 1 lakh and less than Rs. 5 crores Exit load (lump sum investments) : 1.00% if redeemed within 6 months from the date of allotment Exit load (SIP) : 1.00% if redeemed within 2 years from the date of allotment and the entry load applicable at the time of SIP was 1.25%

Forthcoming Dividend List

Scheme Name Rate* Record Date

Birla sunlife Basic Industries Fund
100.00%
24-Mar-06


Birla Sunlife Buy India Fund
75.00%
28-Mar-06


Birla Sunlife Tax Relief 96 Fund
500.00%
30-Apr-06


Chola Growth Fund
20.00%
27-Mar-06


Chola MIDCAP Fund
20.00%
27-Mar-06


DSPML TIGER Fund
45.00%
27-Mar-06


Escort Balanced Fund
40.00%
24-Mar-06


HSBC Equity Fund
20.00%
24-Mar-06


ING Domestic Opportunity Fund
20.00%
21-Apr-06


JM Equity Fund
40.00%
27-Mar-06


Principal Dividend Yield Fund
10.00%
05-Apr-06


Principal Resurgent India Fund
65.00%
23-Mar-06


Pru ICICI Discovery Fund
20.00%
23-Mar-06


Pru ICICI FMCG Fund
50.00%
23-Mar-06


Pru ICICI Growth Fund
20.00%
23-Mar-06


Pru ICICI Income Multiplier Fund
10.00%
23-Mar-06


Reliance Banking Fund
50.00%
30-Mar-06


Reliance Growth Fund
75.00%
29-Mar-06


Reliance Vision Fund
75.00%
28-Mar-06


SBI Magnum Contra Fund
40.00%
03-Apr-06

What to be done in case of theft of ur mobile?

Mail Received from one friend
Hi All,

Now Chennai Police is able to track down lost cell phones with the special software they have if you give the IMEI number. They can track the cell even if they change the SIM to any other one. So here are the tips. Please make a note of your IMEI number now itself. you can find it in the battery compartment or by keying in *#06# (for nokia) . And if your cell is lost please contact "CYBER CRIME CELL" with the IMEI number at the following Email addresses. (Please don't save the number in same mobile) cyberac@rediffmail.com baluac@vsnl.net Here is the address. S. BALU, Assistant Commissioner of Police, CYBER CRIME CELL, Central Crime Branch, Egmore, Chennai - 8.

Regards,
Sureshkumar

My Broker call

Mon 09:55:20 a Buy M&M at CMP with a SL of Rs 622 and tgt of Rs636, Rs 639 - Biren
Mon 10:32:51 a Buy ACC at Rs 766 with SL of Rs 762 and tgt Rs 775 - Deepak
Mon 10:33:29 a Buy HDFC Bank Rs 770 with SL of Rs 765 and tgt of Rs 780 - Deepak
Mon 10:43:13 a high risk trade buy cesc cmp 340.8 with a sl of Rs 335 target 349 and 352 - Biren
Mon 11:13:12 a Buy Wipro at Rs529 with SL of Rs524 and tgt of Rs 539 - Pritesh
Mon 11:19:59 a Buy Indo Tech at 229 with SL of Rs224 and tgt of Rs242
Mon 11:35:37 a Tech stocks have recorded smart gains, Our Wipro call is going strong at Rs535 - Pritesh
Mon 11:49:21 a buy marksans cmp 242 with a sl of Rs 238 target 250 and 252 - Biren
Mon 12:10:31 p buy balramchin cmp 164.85 with a sl of Rs 160 target 172 and 175 - Biren
Mon 12:11:09 p Buy PBA Infra at Rs 157 with SL of Rs 153 and tgt of Rs 165 - Deepak
Mon 12:58:12 p Buy Rel Capital at Rs539 with Sl of Rs532 and tgt of Rs548 - Pritesh
Mon 01:09:51 p Buy Cipla at Rs586 with SL of Rs581 and tgt of Rs595 - Pritesh
Mon 01:17:02 p Buy Jind Steel at Rs 1717 with SL of Rs 1710 and tgt Rs 1735 - Deepak
Mon 01:29:46 p Market is witnessing profit booking, traders are advised to book profits wherever applicable
Mon 01:37:08 p our Jindal Steel SL Triggered - Deepak
Mon 02:13:53 p Buy BRFL at Rs131 with SL of Rs127 and tgt of Rs136, 139 - Pritesh
Mon 02:38:37 p Our Wipro call bang on tgt - Pritesh
Mon 02:44:46 p Our PBA Infra call has locked 10% upper circuit - Deepak
Mon 02:47:26 p Our BTST call of Pratibha has locked 20% upper circuit
Mon 02:51:26 p Buy 3i Infotech at Rs 184.70 with SL of Rs 180 and tgt Rs 200 - Deepak
Mon 02:59:02 p Our Buy Today Sell Tomorrow call: Buy MTNL at Rs172.85
Mon 03:00:04 p Buy Tulip at Rs 268 with SL of Rs 264 and tgt Rs 278+ : Deepak
Mon 03:06:55 p Buy Satyam at Rs820 with Sl of Rs815 with tgt of Rs828 - Pritesh
Mon 03:10:19 p Our Buy Today Sell Tomorrow call: Buy STER at Rs1467
Mon 03:14:51 p Our Buy Today Sell Tomorrow call: Buy Prithvi at Rs421.50

Mon 09:53:08 a Visualsoft withdraws proposal to absorb Applabs, E-Solutions
Mon 09:53:23 a Cadila buys 15% in Carnation Nutra-Analogue Foods Ltd
Mon 10:05:56 a Our BTST call of Pratibha has gained by over 4% to Rs214
Mon 10:16:59 a Our BTST call of Pratibha has surged by over 9% to Rs225, book profit in the scrip
Mon 10:23:46 a Century Textile is running in ban period, no fresh positions is allowed in the scrip in F&O segment
Mon 10:27:08 a Chidambaram says Agriculture is also a focus of FY07 Budget
Mon 11:05:07 a SBI to sell up to 49% of units on Parliament approval
Mon 11:20:30 a Bharti Group considering entry into retail business
Mon 11:28:05 a SBI may raise Rs40bn selling bonds
Mon 11:32:33 a Goldman Sachs to invest $1bn in India in next 2-3 years, it favours IT Services, auto, Infrastructure
Mon 11:40:41 a Pratibha Industries gets Mall project worth Rs700mn, to build mall for Nirmal Lifestyles
Mon 12:14:15 p Lyka Labs sells 49% stake in Lyka Hetero JV unit
Mon 12:17:30 p IVRCL Infrastructures is setting up Steel Fabrication & Galvanization Unit in Maharashtra
Mon 12:44:18 p Kotak Mahindra plans to expand in far East, Middle East
Mon 12:55:07 p Infotech Enterprises wins Mapping contract from US
Mon 12:57:10 p Rel Cap names Amitabh Jhunjhunwala as vice Chairman
Mon 01:18:31 p DCW Ltd to meet on Mar 27 to discuss fundraising plans
Mon 01:41:37 p Cadila plans to start phase two clinical trials on its ZYH1 molecule
Mon 02:11:02 p India'a Lower House approves Budget for FY07
Mon 03:27:16 p Hexaware Tech to raise Rs3bn from General Atlantic

INSURANCE INSIGHT: LIVE LIFE THE INSURANCE WAY.

From HDFC Bank News Letter

A company in a western city conducted a survey on the employees who had been with the company for five years or more. Two questions were asked to all the employees and their replies summed to unanimous answers.
First question: What is your greatest hope in life?The answers were: To be financially secure To have happiness and security To be carefree in old age To be sure that my family will be secureTo retain my health and my job To have the respect of my family and friends To sum it up- the greatest hope in life is the hope for security.
Second question: What is your greatest fear in life? The answers were: Fear of financial insecurity Not being able to support for self and family.Sickness and unemployment DeathDependence in old age To sum it up – the greatest fear in life is – insecurity
Life insurance is the most efficient way of furnishing security and for many people it is the only way that can provide security. It offers people methods of achieving economic security.
Family Protection The very thought of protecting family, to shield them against the hazards of being financially unsecured in the event of death of the bread winner, leads to only one conclusion of purchasing a life insurance policy by paying small amounts periodically. The life insurer assures to the family in the event of death a much lager sum of money fulfilling the family needs.
Wealth Creation And Transfer Life insurance is also recognized as an effective financial tool for wealth creation. One can pay a fixed amount at regular intervals and build a corpus. Unit linked life insurance plans also give you the flexibility of adding more in case of any cash- flows over and above the regular premiums. A unique feature of life insurance is that, the wealth in the form of the corpus is transferable to anyone by assigning beneficiaries in the policy. Beneficiaries could be wife, children or both. When policy matures or even in case of any eventuality the entire corpus accumulated in the policy is given only to the beneficiaries.
Security With Dignity And Freedom Security for an individual can be defined as dignity. Not knowing how long you will live makes it extremely difficult to determine how much money it will take to live in the fashion to which we are accustomed. Life insurance not only insures life, it insures way of life. A life insurance pension contract assures life income every year during old age. This income gives the freedom to live life comfortably and proudly.
Life insurance is the only instrument that offers security against threats of death, disability and old age. Just a signature on the application form creates an immediate asset for you and your family

Personal Traits of a successful entrepreneur By Robert T. Kiyosaki

Vision : the ability to see what others could not see

Courage : the ability to act despite tremendous doubt

Creativity : the ability to think outside the box

The ability to withstand criticism

The ability to delay gratification : It can be very difficult to learn to deny short-term immediate self-gratification in favor of a greater long-term reward.

My brokers calls


Fri 09:58:59 a Buy NDTV at CMP with a SL of Rs 224 and Tgt of Rs 238, Rs 241 - Biren
Fri 10:14:50 a buy m&m cmp 626.25 with a sl of Rs 622 target 634 and 637 - Biren
Fri 10:16:17 a Buy Tata Chem Rs 258.90 with SL RS 255 and tgt of Rs 266 - Deepak
Fri 10:25:39 a Buy suzlon Rs 1316 with SL of Rs 1310 and tgt of Rs 1335 - Deepak
Fri 10:37:00 a Buy M&M Financial (newly listed ) at Rs241 with SL of Rs236 and tgt of Rs250
Fri 10:39:02 a buy mphasisbfl cmp 201.75 with a sl of Rs 198 target 207 and 209 - Biren
Fri 10:40:51 a Buy Rel Capital at Rs537.50 with SL of Rs531 and tgt of Rs547 - Pritesh
Fri 10:52:23 a Buy Jindal Steel and Power March Future at CMP 1720 with SL 1690 and tgt of 1860 - Deepak
Fri 10:53:31 a buy ACC at Rs767.50 with Sl of Rs761 and tgt of Rs778- Pritesh
Fri 11:02:41 a buy harr malaya cmp 157.5 with a sl of Rs 154 target 164 and 167- Biren
Fri 11:07:46 a please ignore harr malaya 5 % circuit only - biren
Fri 11:10:14 a Our M&M financial SL triggered
Fri 11:16:43 a Buy PNB at Rs465 with SL of Rs461 and tgt of Rs472 - Pritesh
Fri 11:20:09 a update mphasisbfl sl from 198 to 201 trade is safe now - Biren
Fri 11:36:32 a buy aptech training cmp 136.4 with a sl of Rs 133 target 142 and 145 - Biren
Fri 12:39:29 p mphasis bfl bang on target - Biren
Fri 12:52:59 p Buy Satyam Comp at Rs 830 with SL of Rs 824 and tgt of 840+ : Deepak
Fri 12:55:35 p Buy Tata Motors at Rs928 with a SL of Rs921 and tgt of Rs939 - Pritesh
Fri 01:18:55 p Auto stocks have recorded smart gains, one can buy Maruti at Rs889 with a SL of Rs882 and tgt of Rs899 - Pritesh
Fri 01:35:34 p Our Tata Motors call is going strong at Rs936.30, close to acheiving the tgt - Pritesh
Fri 01:43:16 p High risk trader buy BL Kashyap (newly listed )at Rs1018 with SL of Rs1003 and tgt of Rs1045
Fri 01:52:21 p Buy ONGC at Rs 1227 with SL of 1220 and tgt of Rs1240 : Deepak
Fri 01:58:15 p our Tgt acheived in Tata Motors call - Pritesh
Fri 02:19:31 p our risky call of BL Kashyap has started moving ( 1029)
Fri 02:23:46 p Our PNB call has rebounded from lower levels and is going strong at Rs471 - Pritesh
Fri 02:41:23 p Markets are facing stiff resistance at higher levels, traders be cautious
Fri 02:42:36 p Keep booking profits partially, as market is unable to sustain at higher levels
Fri 03:03:19 p Buy IPCL at Rs248 for delivery of 2 weeks with SL of 241 and tgt of Rs270
Fri 03:11:55 p Buy Pratibha Rs 183.20 with SL of Rs 178 and tgt Rs 192 - Deepak
Fri 03:12:37 p Our BL Kashyap SL triggered
Fri 03:13:49 p Our Satyam Comp SL triggered - Deepak
Fri 03:19:03 p Book profit in our BTST call of KEC at Rs500 given yesterday
Fri 03:36:09 p Market is highly volatile, traders are advised to remain alert
Fri 03:38:32 p Our Pratibha call bang on tgt - Deepak
Fri 03:46:15 p our ACC Sl triggered - Pritesh
Fri 03:51:34 p Our Buy Today Sell Tomorrow call: Buy Pratibha at Rs200
Fri 03:56:04 p buy prithvi cmp 417.3 with a sl of Rs 413 target 425 and 428 - Biren
Fri 03:57:21 p Our BTSt call of Pratibha is going strong at Rs212.25

Always have a stop-loss and an exit price clearly defined

Never try to fight a trend by taking positions against the prevailing trend.

Though it may be always tempting to buy a stock that is falling with an intention to lower the average cost of acquisition, such a practice should be avoided. This will be tantamount to throwing good money after bad.

Always have a stop-loss and an exit price clearly defined before making a trading decision.

There are several methods to arrive at stop-loss levels. If you are unable to identify a logical or reliable stop-loss level, use a fixed money-based stop method, which fits into your psychological comfort zone.

Never hold on to a trading or investment position that has moved past your psychological zone of comfort.

If you are not disciplined to cut positions on the breach of stop-loss, it could turn out to be a psychologically arduous task to cut those loss-making positions when prices keep moving against you.

Always take care of your losses and profit would take care of themselves.

Periodical profit booking and re-entry on fresh "buy" triggers are crucial aspects of success in stock market investing. There is nothing wrong or inconsistent in buying a stock at slightly higher levels after having booked profit earlier.

The key aspect is to ensure that the long-term trend is intact and there is a valid reason to take fresh exposures.

Keep track of stocks you find are in a long-term upward trend and take positions on fresh "buy" triggers.

Even after the stop-loss is hit, investors should not ignore the stock they have been tracking. It may well turn out that the stock could reverse trend and get back to the target zone envisaged earlier.

The stop-loss might have been hit owing to either an incorrect stop loss or a change in the short-term trend. The stock price may reverse at lower levels and manage to move to the earlier determined target zone.

MY BROKER'S CALLS


Fri 09:57:14 a Our BTST call of ABB has gained by 3.70%
Fri 09:57:48 a Our BTST call ofJagran has gained by 2%
Fri 10:17:30 a Buy ACC at Rs764 with SL of Rs759 and tgt of Rs773 - Pritesh
Fri 10:22:39 a our ACC calll bang on tgt - Pritesh
Fri 10:47:05 a Buy KEC International (listed today) at Rs434 with SL of rs428 and tgt of Rs446 - Pritesh
Fri 11:03:57 a Our KEC International SL triggered
Fri 11:28:46 a banking stocks are in limelight
Fri 11:32:43 a Buy IVRCL Infra at Rs1217 with SL of Rs1203 and tgt of Rs1242
Fri 11:41:45 a Our IVRCL Infra call is going strong at Rs1237
Fri 12:39:05 p Buy Satyam Comp at Rs795 with SL of Rs791 and tgt of Rs803 - Pritesh
Fri 12:40:57 p buy Aks at Rs72.15 with SL of Rs69 and tgt of Rs80 -Biren
Fri 12:43:44 p our Aks call is likely to hit upper circuit - Biren
Fri 12:44:42 p Our IVRCL Infra call bang on tgt
Fri 01:20:15 p BUY USHAMART CMP 192.6 WITH A SL OF RS 189 TARGET 198 AND 200 - Biren
Fri 01:23:51 p Buy Suzlon at Rs1252 with SL of Rs1242 and tgt of Rs1272
Fri 01:24:59 p our USHAMART BANG ON TARGET 198 - Biren
Fri 01:26:31 p Tech stocks have recorded smart gains, our Satyam Comp call is going strong at Rs803.30 - Pritesh
Fri 01:28:03 p Our USHAMART call bang on tgt 2 - Biren
Fri 01:30:25 p BUY RADICO CMP 153 WITH A SL OF RS 149 TARGET 160 AND 163 - Biren
Fri 01:32:04 p Our satyam Com call bang on tgt - Pritesh
Fri 01:43:09 p Buy Cipla at Rs591 with SL of Rs586 and tgt of Rs601 - Pritesh
Fri 01:49:02 p BUY MPHASISBFL CMP 184.25 WITH A SL OF RS 181 TARGET 190 AND 192 - Biren
Fri 02:05:50 p our Suzlon call bang on tgt
Fri 02:21:35 p Our Cipla SL triggered - Pritesh
Fri 02:28:00 p Markets are trading at life time high, traders are advised to keep booking profits, wherever applicable
Fri 02:44:30 p Our Satyam Call is on fire at Rs815 - Pritesh
Fri 02:51:50 p BUY PUNTRAC cmp 243 with a sl of Rs 239 target 252 and 254 - Biren
Fri 03:15:12 p fire works in our punjab tractor call - Biren
Fri 03:17:19 p our tgt acheived in Punjab Tractor - Biren
Fri 03:22:08 p buy Bajaj Auto at Rs2757 with SL of Rs2747 and tgt of Rs2778
Fri 03:23:41 p Our Bajaj Auto call on tgt
Fri 03:26:46 p buy sundramfas cmp 160.5 with a sl of Rs 157 target 168 and 170 - Biren
Fri 03:48:44 p OUR Suzlon call on Fire at Rs1300
Fri 03:50:28 p Our Buy Today Sell Tomorrow call: Buy GNFC at Rs121.85
Fri 04:13:26 p Our Buy Today Sell Tomorrow call of GNFC is going strong at Rs126.60 - Pritesh

Impact of ‘Union Budget 2006-07’ – March 2006 By HDFC Bank

HDFC Bank's view on the Union Budget 2006-07’ – March 2006 can be read from http://www.hdfcbank.com/newsletter/foresight/vol017/topstory.htm

A review on 5paisa

Dear Friends,
Before reviewing their three offering viz., Investor Terminal, Trader Terminal and Trader Terminal 2005, I wish to say something about pre-requisite for online trading.To start trading online in Indian share markets you need following accounts.1. Broker Account to place your buy and sell orders in the stock exchange (5paisa, sharekhan, HDFC Sec, ICICI Direct, India Bulls, Motilal Oswal,envestmentz etc.,)2. Demat A/c to hold your shares in electronic form ( Most of the online brokers are offering this service for a fee. This fees is lowest at India Infoline Sec. Which is a subsidiary of 5paisa and account opening charge Rs500 is waived for 5 paisa customers)3. Net enabled Bank A/c to transfer funds to your broker and receive funds from your broker. ( 5 paisa needs net enabled A/c in any of the following banks – ICICI Bank, HDFC Bank, UTI Bank, Citi Bank and Centurion Bank)
Review of 5 paisa products
1. Investor TerminalTo know the general information about this product, please visit http://www.5paisa.com/products/5pit.html . You can place orders even from browsing centers. Brokerage is about 0.5% for delivery trades and about 0.25% for square-off trades(it means buying 100 shares of ACC in the morning and selling them in the same day itself. It is called as intra day trading). Fastness of execution of your orders depends on net speed. This product suits for buy and hold type of investors. Brokerage will be charged as and when your orders are executed. No other fixed charge except demat charge. Offline orders are not possible. ( Off line order means is placing orders after market time). Orders can also be placed through phone but the will charge you Rs25 for each telephone order.
2. Trader TerminalTo know the general information about this product, please visit http://www.5paisa.com/products/5ptt.html . You need to download a small software from their website (Trader Terminal approx 1.8 MB in size from www.5paisa.com/download). You can’t place orders from browsing centers as this software is necessary to place orders. Brokerage is about 0.25 % for delivery trades and 0.05% (5pasia for Rs100) for square-off trades on each leg. Very fast. Orders will be executed at fraction of a second. You can trade in NSE Cash and NSE Derivatives. You also get trading ideas free of cost, which are highly useful and regarded as best of the best. For this product you need to pay Rs 4999 or Rs 7999 as advance brokerage for a year. No separate fee for this product. This advance brokerage will be set-off against your trade brokerages. Both intra day and historic charting facility is available. Offline orders are not possible. Orders can also be placed through phone (30 telephone orders per month free- no additional charge)3. Trader Terminal 2005Most of the features are same as Trader Terminal. Fee also same. Fastest. Here you can place order in BSE cash also (apart from NSE cash and Derivatives). Off line order is allowed. So you can place order at any time even at mid night. . You need to download a small software from their website (Trader Terminal 2005 approx 1.8 MB in size from www.5paisa.com/download). Disadvantage is only intra day charting is available. No historic charting facility. Orders can also be placed through phone. (30 telephone orders per month free- no additional charge)
Back OfficeThey have one the best online back office facilities. Your limits are updated every 180 seconds. If you transfer funds online it will be reflected in your ledger with in 2 hours during market time. If you request fund, it will be credited directly into your bank A/c within 2 days. One the best customer care through email and phone. If you give power of Attorney to handle your demat A/c , trading through 5paisa is really a pleasant experience with no paper work or courier charge.
Happy investing.

Highlights of Union Budget 2006-07


ECONOMY

Savings up 21.9% of GDP
FY05 GDP growth was 7.5%
Having best of times and worst of times
GDP growth likely to be 8.1% in 2006-07
Govt has met first aim of high growth rate
Growth is best antidote to poverty
Govt determined to take country to 10% growth rate

FISC

Gross capital formation up 30% in 2004-05
Non-food credit growing over 25%
Investment rate up from 25.3% in FY03 to 30.1% in FY05
1.727 trln rupee budget support for plan, up 20.4% in FY07
1.312-trln-rupee budget support for central plan
FY07 budgetary support for North East 120.41 bln rupees
Outcome Budget to be presented on Mar 17
Provide 169.01 bln rupees equity support to central PSUs
1.227 trln rupees outlay in FY07 for public sector
100 bln rupees corpus for RIDF-XII in FY07
Separate window for rural roads under RIDF
To unwind special securities by converting to SLR papers
Defense allocation raised to 890 bln rupees FY07
To provide 30 bln rupees as VAT compensation to states
States' revenue share up at 944 billion rupees FY07
Tax-GDP ratio 10.5% in FY06 vs 9.8% yr ago
FY06 fiscal deficit revised to 4.1% of GDP vs 4.3%
FY06 revenue deficit revised to 2.6% of GDP vs 2.7%
FY07 non-plan expenditure seen at 3.91 trln rupees
FY07 fiscal deficit pegged at 3.8% of GDP
FY07 total expenditure pegged at 5.639 trln rupees

AGRICULTURE

Foodgrain output 209.3 mln tns, up 5 mln tns over last yr
Farm credit to be raised to 1.75 trillion rupees in FY07
Banks asked to add 5 mln more farmers to credit portfolio
Interest subsidy of 200 bps for farm loans taken 05-06
To provide 17 bln rupees for farmers' relief
Banks asked to add 5 mln more farmers to credit portfolio
Short-term credit to farmers at 7%
Special new NABARD credit line for self-help groups
Central institute of Horticulture to be set up in Nagaland
Food processing to be priority sector for bank credit
NABARD to set up 10 bln rupee centre for food processing

INDUSTRY

Manufacturing sector to grow at 9.4% in 2006-07
Barring mining, all sectors performing satisfactorily
Set up special purpose tea fund with 1-bln-rupee corpus
National Fisheries Board to be constituted soon
5.35 bln rupees in FY07 for textile upgradation scheme
Jute Technology Mission, National Jute Board to be set up
Govt proposes Handloom Mark
To develop 3 investment regions for oil sector in FY07
180 SSI items identified for de-reservation
To recognise small, medium enterprises in services sector
For cut in SSI credit guarantee fee to 1.5% vs 2.5%

INFRASTRUCTURE

Highway schemes progressing at 4.4 km/day
5,083 MW capacity to be added in 2005-06
96% of Golden Quadrilateral will be completed by Jun
870,000 rural houses built under Bharat Nirman
71,182 villages got telephones under Bharat Nirman
870,000 rural houses built in Apr-Jan
Budget support of 186.96 bln rupees for Bharat Nirman FY07
Education allocation up in FY07 to 241.54 bln rupees
Sarva Siksha Abhyan outlay for FY07 at 100.41 bln rupees
FY07 mid-day meal allocation 48.13 bln rupees
Rural employment to cost 117 bln rupees in FY07
FY07 drinking water outlay 46.8 bln rupees vs 36.45 bln
143 bln rupee outlay in FY07 for Rural Employment Scheme
45.95 bln rupee outlay for National Urban Mission in FY07
20,000 water bodies to covered under renewal plan
Indian Infrastructure Investment Co to be established
Tourism ministry to develop 15 tourist centres
Set up empowered ministers' group on cluster development
FY07 allocation for tourist sector 8.30 bln rupees
15 bln rupees in FY07 to boost telephone connectivity
To electrify 40,000 more villages in FY07
82 new power projects underway
To electrify 40,000 more villages in FY07
4.75% rise in power generation so far; govt not happy
5.97 bln rupee for non-conventional energy resources FY07
99.45 bln rupees budget support for NHDP in FY07
To build 1,000 Kms of access controlled expressways
7.35 bln rupees for development of sea ports in FY07
1,000 Kms of new expressways on BOT basis
Defense allocation includes 374.58 bln rupees for capex

SECTORS

Committed to strong, efficient public sector
Expert body to look into gems, jewellery sector taxation
20 bln tn coal to be deblocked for power sector by 2012
45 coal blocks allocated for power, coal, steel sectors
220 bln rupee investment expected in refinery sector
Introduce comprehensive bill on insurance in FY07

DEBT MARKETS

Cap on FII in gilts raised to $2 bln
Cap on FII investment in corp debt raised to $1.5 bln
To remove 10% cap on overseas investment by mutual funds
NDS-OM to be extended to some MFS, PFs, pension funds
To create unified exchange traded mkt for corporate bonds

SOCIAL SECTOR

To eliminate polio by December 2007
Leprosy to be eliminated by December 2006
45.95 bln rupee outlay for National Urban Mission in FY07
To raise old age pension to 200 rupees/mo vs 75 rupees
Allocation for SC/STs raised 14.5% to 29.02 bln rupees
20,000 merit scholarships for minority students
164 mln rupees for National Minorities Development Corp
To grant 1 bln rupees each to 3 universities
New grants to Calcutta, Madras, Mumbai universities
To allocate 970 mln rupees for upgrading ITIs in FY07
50 bln rupees for new fund under Panchayati Raj in FY07
13 bln rupees special aid to J&K for power reforms

EXTERNAL SECTOR

FDI estimated at $4 bln till Nov 2005
Confident of more FDI, especially in infrastructure
To double world export share to 1.5% by FY09

CUSTOMS DUTY

Non-farm imports customs peak rate cut to 12.5% from 15%
Duty on alloy steel cut to 7.5% from 10%
Customs on steel melting scrap raised to 5%
Import duty on ores, concentrates cut to 2% from 5%
BUDGET: Customs duty on inorganic chemicals cut to 10% from 15%
Customs on steel melting scrap raised to 5%
Import duty on ores, concentrates cut to 2% from 5%
Customs on mineral products cut to 5% vs 15%
Duty on catalysts cut to 7% from 7.5%
Customs duty on inorganic chemicals cut to 10% from 15%
Customs duty on anti-AIDS, anti-cancer drugs cut to 5%
Customs on packaging machines cut to 5% vs 15%
To impose countervailing duty of 4% on oil imports
Customs duty on vanaspati raised to 18%
Import duty on man-made fibre yarn cut to 8% vs 18%

EXCISE DUTY

All excise rates to converge at CENVAT rate at 16%
Excise duty on small cars cut to 16%
Condensed milk, ice-creams exempted from excise duty
8% excise on packaged software in FY07
Excise on idly, dose premixes cut to 16%
Excise duty on aerated drinks cut to 16%
Excise on glassware will be 16%
DVD, Flash, Combo drives exempted from excise duty
Duty on naphtha on plastics to be nil
Petroleum pdts duty measures to be retail price neutral
Excise duty on printing paper, ink cut to 12% from 16%
Excise on cigarettes hiked by 5%

SERVICE TAX

More services brought under service tax net
Registrars, share transfer agents under service tax net
Service tax to be extended to PR firms
ATM operation, maintenance to come under service tax
Services industry seen contributing 54% of GDP
Service tax raised to 12% from 10%
Apr 1, 2010 deadline for national level goods, svcs tax

DIRECT TAX


No change in personal, corporate income tax rates
Minimum Alternate Tax rate up to 10% from 7.5%
To abolish 1/6 income tax norm
MAT cos' credit period extended to 7 years
Rate for STT increased by 25%
Bank deposits of over 5 year under section 80C of IT Act
10,000 rupee ceiling on pension contribution removed
Open, close-end equity MFs on par for div distribution tax
PAN needed for more transactions
To continue with cash withdrawal tax
Hopes debate on FBT ends; FBT is justified
Announce changes in computation of fringe benefit tax
Lauds cash withdrawal tax role in curbing money laundering
Retirement contribution cap of 100,000 rupees for FBT
To issue statement of revenue foregone
Include LPG under declared goods for CST
States taxing LPG at high rates
BUDGET: Direct tax proposals to yield 40 bln rupees more FY07
Thanks to Mr.Anup Bhaiya , Indiainfoline.

Preliminaries of Online Share Trading in India



Some of you intend to invest online in shares and mutual funds. This write-up would throw some light on charges involved with online investing.

If you wish to invest in shares you need the following three apart from money.

Broking A/c with brokers registered with BSE(Bombay Stock Exchange), NSE (National Stock Exchange)

Demat A/c with Depository Participants ( Now a days most of the brokers themselves offer Demat services )

Bank A/c preferably with net banking facility to transfer and receive money.

Each one of the above three would involve some direct and indirect costs. Before contemplating to invest online, Please make sure to learn about these things.

Some of the reputed online broking houses are www.5paisa.com, www.sharekhan.com and www.motilaloswal.com. Before starting relationship with any of the broking firm, please do contact their existing customers and get feedback. This one step itself avoids you of later disappointment.
Charges involved in opening an online trading A/c

One time charges
This may be around Rs.500 – Rs 750. They term this as A/c opening charges or registration charges or documentation charges. This is negotiable for most of the brokers.

Recurring charges
It includes annual maintenance charges, brokerage commission, Security turnover tax, service tax, regulatory charges.
For broking A/c, none of the brokers charge annual maintenance charge. Brokerage commission varies with broker and type of transaction. For intra day trade, the range is 0.05% to 0.25% of total value of trade. For delivery trade, the range is 0.25% to 1.00%. Most of the brokers give concession ( or charge lower brokerage ) based on your volume of trade and deposit money. The Security turnover tax, service tax and regulatory charges are same for all brokers as it is imposed by the Union Govt.

Deposit
You need keep a minimum amount of Rs.10000 with your broker as deposit. Your exposure limit will be based on this deposit.

Charges involved with opening a Demat A/c

One time Charges
This is A/c opening charges typically involve Rs.500 to Rs.1000. If you register for demat A/c with your broker himself, most of the brokers waive this charge completely. It is advisable to open demat A/c with your broker as it is not only economical, also convenient.

Recurring charges
It includes annual maintenance charges ( Rs.250 to Rs.750), transaction costs and monthly holding charges. For every buy and sell transaction, you will be charged 0.01% of the value of your transaction with minimum of Rs. 20 to Rs.50 ( This is over and above brokerage). Some demat participants charge only sell transactions and offer you free buy transactions (Eg. Indiainfoline or 5paisa). Previously you are charged Re.1 /month/company held in your demat A/c. Now a days this holding charges were withdrawn. But check all charges before opening an A/c.

Bank A/c
To transfer and receive funds, you need net enabled bank A/c. Each broker has tie-up with different banks. Please make sure that your broker has tie-up with your existing bank else you need to open an new A/c.

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