IPO Investing

  1. Evaluate an IPO from a long term investment perspective instead of getting very high listing gains
  2. Study the prospectus very closely – about the risk factors and the track record of promoters ( Seeing & reading IPO Advt. is not enough)
  3. Use peer-group valuations as benchmarks (Eg. Industry P/E ratio from Capital Market Magazine ) for pricing. Discount any sudden or abnormal improvement (Eg. By sale of asset, any one time income, etc.,) in the company’s operating performance.
  4. Be prepared to block your funds for about 25 days.
  5. Bid at cut-off price in order to maximize your chances of allotment . ( Read Sunday Business Line (investment world) for recommendations which are usually unbiased and very useful.
    Have a Great Weekend .

"Over the long term, trends are where the money is."

Dr. Gary Hirst of Hirst Investments says
"I had heard about technical analysis and chart patterns and, looking at this stuff I would say, what kind of voodoo is this? I was very, very skeptical that technical analysis had value. So I used the computers to check it out and what I learned was that there was, in fact, no useful reality there. Statistically and mathematically all these tools - stochastics, RSI chart patterns, Elliot Wave, and so on-just don't work. If you code any of these rigorously into a computer and test them they produce no statistical basis for making money; they're just wishful thinking. But I did find one thing that worked. In fact almost all technical analysis can be reduced to this one thing, though most people don't realize it: the distributions of returns are not normal; they are skewed and have "fat tails." In other words, markets do produce profitable trends. Sure I found things that work over the short term, systems that work for five or ten years, but then fail miserably. Everything you made, you gave back. Over the long term, trends are where the money is."

Great Scam!Mathew Easow told not to recommend on any investments

SEBI has directed Mr Mathew Easow, Chairman of Mathew Easow Research Securities Ltd, to "cease and desist" from recommending any investment in public media which amounts to violation of a key regulation embodied in SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
He is regarded as ‘Pro’ as many of his daily recommendations at a paid service of vastly popular “Business TV- Web site combine” were instant hit. Normally his recommended stocks would touch circuit filter next day. It seems ( According to SEBI) after creating good will, he used the gullible investors to offload his positions.
SEBI had as part of an ongoing initiative examined recommendations given by the analyst. These, when compared with the trading pattern of his associate companies (Mathew Easow Research Securities Ltd and Mathew Easow Fiscal Services Ltd) clearly indicated that he "took an opposite trading position" in a few stocks.
The stocks are: Kalpana Industries, CESC, Ahlcon Parenterals and Albert David. Mr Easow started selling after giving an opposite advice to the market. "This indicates an obvious attempt to mislead the investors through investment recommendations, in a striking posture of ambivalence coupled with interest", the order has mentioned.
With CESC, for instance, recommendations were made in mid September (giving the target price of around Rs 300 in three months). The stock rose to Rs 241.20 on the date of recommendation (September 14) as compared to the previous close price of Rs 239.05.
He sold 3,300 shares on the day of his recommendation. "Interestingly, he was also carrying short position of 4400 shares in futures and options segment prior to his recommendations which, he covered on September 28, 2005, at a lower price," SEBI has mentioned.

Strategies to Ride through Volatility

When equity markets turn volatile, they cause a lot of anxiety, tensions and even sleepless nights. In the volatile times many investors abandon a carefully made investment plan in a knee jerk reaction and pay the price for it..
In reality, there are different ways people react to the volatile conditions. While a seasoned investor, who has been in the market for a long time may take volatility in his stride; a novice will be tempted to pull out of the market. For a seasoned investor who has spent time in the stock market, he would know that volatility is normal in the stock market and investor has to bear it out.
In a volatile market, an existing investor might be tempted to think that the best course of action would be to try and anticipate the market movements and move his investments accordingly. It is a proven fact that even experts find it difficult to achieve this. Given this scenario, it is prudent (a) to invest in equity markets with a longer investment horizon and (b) to invest small amounts regularly than one-time lump-sum investment, which ensures that one is not fully exposed should the market fall soon after the investment is made.
It is also important to have a long-term investment horizon to handle volatility. Remember the longer the time horizon, the lesser is the risk. Therefore, it will not be wrong to say that the right approach to handle all kinds of markets, especially a volatile one, is to remain focused on your investment plan and objectives.
Courtesy : HDFC BANK INVESTMENT NEWS LETTER
For more click here

Advantages and Disadvantages of the Various Asset Classes

Cash
ADV
High security and liquid
Interest will always be paid if held in a bank
DISADV
Interest rate vary with institution and duration
Best rates often have restrictions
May not beat inflation

Bond
ADV
Fixed interest paid regularly
DISADV
Bond issuer may default on both principal and interest payments
Value of bond may fluctuate

Equity
ADV
Equities can increase significantly in value
Can outperform other asset classes over the long term
DISADV
Equities can also fall significantly in value
Very difficult to predict what will happen in short and very long term

My brokers calls on 20.01.2006

Fri 09:56:37 a Buy Mphasis BFL at CMP with SL of Rs 158 and tgt of Rs 169,172 - Biren
Fri 09:57:19 a Buy Bharat Forge at CMP with SL of Rs 389 and tgt of Rs 402,405 - Biren
Fri 10:03:45 a Our BTST call of Siemens has surged by 3.10%
Fri 10:04:26 a Buy SRF at Rs 299 buy with SL of Rs 296 and tgt Expected at Rs 307 - Deepak
Fri 10:09:22 a buy hexaware cmp 130.7 with a sl of Rs 127 target 136 and 138 - BIREN
Fri 10:19:50 a buy shasunchem cmp 98.45 with a sl of Rs 96 target 105 and 108 - biren
Fri 10:27:35 a Buy KCP Sugar Ind at Rs747 with SL of Rs737 and tgt of Rs772
Fri 10:29:01 a Buy Polaris Rs 136.50 with SL ofRs 134 and tgt Expected Rs 140 - Deepak
Fri 10:44:09 a Buy Rel Capital at Rs461 with SL of Rs454 and tgt of Rs472 - Pritesh
Fri 10:45:28 a buy kernex cmp 319. with a sl of Rs 315 target 327 and 329 - biren
Fri 11:01:46 a BUY LML at Rs 46.75 with SL of Rs 44 and Tgt of Rs 55 in 2-3 weeks time - Deepak
Fri 11:10:40 a Buy Century Textile at Rs 330 with SL Rs 326 and TGT of Rs 336 - Deepak
Fri 11:23:55 a Our KCP Sugar Ind SL triiggered
Fri 11:58:58 a Buy EKC at Rs345 with SL of Rs341 and tgt of Rs354
Fri 12:01:19 p Buy M&M at Rs529 with SL of Rs524 and tgt of Rs538 - Pritesh
Fri 12:03:58 p Our EKC call going strong, close to acheiving tgt
Fri 12:07:46 p Our KERNEX TARGET ACHIVED 327 - Biren
Fri 12:11:18 p our tgt acheived in EKC call
Fri 12:20:29 p high risk trade buy amtek auto cmp 290 sl 286 target 298 and 300 - Biren
Fri 12:22:42 p Buy ABB for delivery of 1 week at Rs 2155 with SL of Rs 2130 and TGT of Rs 2240 - Deepak
Fri 12:52:34 p buy krbl cmp 140 with a sl of rs 137 target 148 and 150 - biren
Fri 12:56:57 p High risk trader buy BHEL at Rs1549 with SL of Rs1540 and tgt of Rs1571 - Pritesh
Fri 01:10:42 p Our BHEL call is going strong at Rs1569.10 - Pritesh
Fri 01:11:28 p Our Tgt acheived in BHEL call -Pritesh
Fri 01:16:40 p All engineering scrips have recorded smart gains. Our calls of Siemens, ABB and BHEL have surged up smartly
Fri 01:23:50 p High risk traders buy Suzlon at Rs915 with SL of Rs907 and tgt of Rs928 - Pritesh
Fri 01:54:11 p Our SRF SL Triggered - Deepak
Fri 01:56:55 p Our BHEL call is on fire at Rs1599 - Pritesh
Fri 02:09:07 p Our RELiance Capital SL triggered - Pritesh
Fri 02:14:57 p Buy BPCL at Rs435 with SL of 431 and tgt 440, 444 - Deepak
Fri 02:15:30 p Buy Bajaj Auto at Rs 2074 with SL of 2050 and tgt of 2125 - Deepak
Fri 02:21:59 p Our first tgt acheived in BPCL call - Deepak
Fri 02:25:17 p Buy Maruti at Rs682 with SL of Rs676 and tgt of Rs689
Fri 02:30:19 p Our Maruti call going strong at Rs687.50
Fri 02:43:01 p Our tgt acheived in Maruti call
Fri 02:46:57 p Our first Tgt acheived in KRBL call: Biren
Fri 02:52:45 p Our second tgt acheived in KRBL call:Biren
Fri 03:01:33 p OUR MARUTI CALL MOVING IN TOP GEAR
Fri 03:06:57 p Our tgt acheived in ABB call - Deepak
Fri 03:08:04 p Hold ABB and revise with SL of Rs2230
Fri 03:09:13 p Our Suzlon call is going strong at Rs925, close to acheiving the tgt - Pritesh
Fri 03:11:35 p buy prithvi 368 with a sl of Rs 363 target 379 and381 - Biren
Fri 03:21:24 p Our BTST call: Buy Tata Motors at Rs662
Fri 03:23:48 p Our tgt acheived in Prithvi call: Biren
Fri 09:56:22 a Satyam Q3 profit at Rsat Rs4.3bn VS Rs1.65bn
Fri 09:58:20 a Satyam Q3 revenue at Rs15.15bn VS Rs 9.09bn
Fri 10:02:41 a Siemens Board to consider stock split on Jan 27
Fri 10:14:49 a Era Constructions wins order worth Rs475mn
Fri 10:45:43 a Aurobindo Pharma wins UK approval for Indian Plant
Fri 11:57:22 a India's Inflation was 4.24% in week ended Jan 7, against expectation of 4.29%
Fri 01:09:24 p Indian Hotels Q3 profit at Rs615.4mn (up 75%)
Fri 01:16:46 p All engineering scrips have recorded smart gains. Our calls of Siemens, ABB and BHEL have surged up smartly
Fri 01:36:23 p Maruti Q3 profit at Rs3.39bn (up 51%)
Fri 01:41:50 p Our Suzlon call is going strong at Rs922 - Pritesh
Fri 01:44:13 p ICICI Bank Q3 profit at Rs6.4bn (up 23.55%)
Fri 01:45:41 p ICICI Bank Q3 revenue at Rs47.63bn (up 45%)
Fri 02:36:28 p JSW Steel Q3 profit at Rs1.39bn (up 31%) and to sell 1 new share to shareholders for 8 held

My Brokers calls on 19th Jan 2006

Thu 09:59:10 a Book profit in our BTST call of Nifty Jan future
Thu 10:04:38 a Buy Mphasis BFL at 160 with SL Rs 157 and TGT of Rs 163 and Rs 166 - Deepak
Thu 10:13:57 a buy upperganges cmp 348 with a sl of Rs 343 target 356 and 358 - Biren
Thu 10:16:00 a Buy wockhart at Rs 459 with SL of Rs 455 and tgt execpted Rs 467 - Deepak
Thu 10:18:08 a Book profit in our BTST call of Titan, which has gained by over 3.50%
Thu 10:19:55 a Buy REL at Rs614 with SL of Rs609 and tgt of Rs627 - Pritesh
Thu 10:25:38 a buy ponni erode cmp 107.8 with a sl of Rs 104 target 113 and 115 - Biren
Thu 10:28:03 a upper ganges target achived (356) - Biren
Thu 10:35:35 a Buy Mcdowell at 509 with SL of Rs502 and tgt of Rs520
Thu 10:38:16 a high risk trade buy aia eng cmp 576.5 sl 572 target 584 and 586 - Biren
Thu 10:42:26 a Buy IVRCL Infra at Rs864 with SL of Rs857 and tgt of Rs874 - Pritesh
Thu 10:43:23 a Our upper ganges call on fire - Biren
Thu 10:45:03 a buy dwarkesh cmp 244.5 witha sl of rs 240 target 252 and 254 - biren
Thu 10:53:40 a buy apil cmp 253.5 with a sl of rs 249 target 262 and 264 - Biren
Thu 10:57:45 a Our aia eng target achived (586) - Biren
Thu 11:06:20 a Buy Oudh Sugar at Rs187 with SL of Rs182 and tgt of Rs197
Thu 11:06:37 a buy balramchini cmp 142.8 witha sl of Rs 138 target 150 and 152 - Biren
Thu 11:09:52 a Our tgt acheived in Oudh Sugar call
Thu 11:12:29 a Buy KCP Sugar at Rs724 with SL of Rs718 and tgt of Rs739 - Pritesh
Thu 11:16:53 a Our KCP Sugar call onFire - Pritesh
Thu 11:17:11 a Or Tgt acheived in KCP Sugar call - Pritesh
Thu 11:19:45 a Our tgt acheived in IVRCL Infra call - Pritesh
Thu 11:21:09 a buy pbainfra cmp 116.6 with a sl of rs 113 target 122 and 124 - Biren
Thu 11:23:32 a Buy Satyam Comp at Rs736 with SL of Rs731 and tgt of Rs745 - Deepak
Thu 11:36:02 a buy aptechtrain cmp 129 with a sl of rs 126 target 135 and 137 - Biren
Thu 12:35:41 p Buy Chambal Fertilizers at Rs 38.35 with SL of Rs37.75 and tgt of Rs 40 and Rs42 - Deepak
Thu 12:38:56 p Buy L&T at 1864 with SL of Rs1858 and tgt of Rs1887 - Pritesh
Thu 12:45:46 p high risk trade buy adlabs films cmp 337.5 with sl of Rs 334 target 346 and 349 - biren
Thu 01:06:08 p Our pba infra target completed - Biren
Thu 01:08:06 p Our IVRCL Infra call is on fire at Rs888 - Pritesh
Thu 01:08:56 p Our pba infra target two completed 125 - Biren
Thu 01:14:41 p buy msk project cmp 92.9 with a sl of rs 91 target 96 and 99 - biren
Thu 01:16:22 p Our tgt acheived in MSK proj call - Biren
Thu 01:20:23 p buy srei int fin cmp 63.5 sl 61 target 67 and 69 - biren
Thu 01:20:52 p Buy NALCO at Rs 237.50 with SL of Rs233 and tgt expected at Rs 244 + : Deepak
Thu 01:25:36 p Our call of msk proj on circuit - Biren
Thu 01:33:55 p Buy Tata Motors at Rs633 with SL of Rs627 and tgt of Rs639 - Pritesh
Thu 01:35:21 p buy deepak fert cmp 105.1 with a sl of rs 102 target 111 and 113 - Biren
Thu 01:44:35 p high risk trade buy ruchi soya cmp 285.25 with a sl of Rs 281 target 294 and 296 - biren
Thu 01:48:22 p Our L&T call has rebounded from lower levels and is going strong at Rs1877.60 - Pritesh
Thu 01:52:11 p Our balramchini target achived 150 - Biren
Thu 01:54:25 p buy bhushan steel cmp 145 with a sl of Rs 141 target 152 and 154 - Biren
Thu 01:56:11 p Our tgt acheived in L&T call (1887) - Pritesh
Thu 01:58:47 p Our L&T call is on fire at Rs1898.95 - Pritesh
Thu 02:03:19 p buy monnet ispat cmp 217.85 with al of Rs 213 target 224 and 227 - Biren
Thu 02:06:00 p buy tvtoday cmp 95. 25 with a sl of rs 93 target 100 and 102 - biren
Thu 02:18:35 p Buy ITC at 144 with SL of Rs 141 and tgt of Rs 149 - Deepak
Thu 02:25:35 p Our Tata Motors call has started moving and is at Rs636.50 - Pritesh
Thu 02:33:37 p Buy Amtek Auto at CMp of Rs284 for delivery of 2 weeks with SL of Rs277 and tgt of Rs305
Thu 02:51:12 p buy nahar indust cmp 151.5 with a sl of rs 148 target 158 and 160 - biren
Thu 02:52:30 p Our tgt acheived in Satyam Call: Deepak
Thu 02:53:59 p Our Tgt acheived in Tata Motors Call - Pritesh
Thu 02:56:08 p Buy Polaris Rs 132 with a SL of Rs130 and tgt expected Rs 136-138 - Deepak
Thu 03:00:58 p Our adlabfilm target....achived (346) - Biren
Thu 03:07:11 p Our BTST call: Buy HLL at Rs187.50 - Biren
Thu 03:07:29 p buy alps indus cmp 137 with a sl of rs 133 target 146 and 149 - BIren
Thu 03:11:21 p Our REL call is going strong at Rs622 - Pritesh
Thu 03:16:10 p Pur target two acheived in Adlabs Call 349 - Biren
Thu 03:21:37 p Our BTST Call : Buy Siemens at Rs3705
Thu 03:22:27 p Our Tata Motors call is moving in top gear at Rs642.90 - Pritesh
Thu 03:27:04 p Our BTST call: Buy Tulip at Rs194
Thu 03:28:53 p Our BTST call: Buy SBI at 909 - Pritesh
Thu 09:51:47 a HCL Tech signs accord with DSG International
Thu 09:52:24 a SHELL, ONGC may jointly explore oil, gas overseas
Thu 09:56:41 a Reliance Industries Ltd (RIL) is in No Delivery period from 18 Jan to 24 Jan. Please confirm the position in this scrip before selling the same. In some cases, position of RIL shares is not correctly shown.
Thu 10:02:00 a Results Today: EID Parry; Infotech Enterprises; IPCL; IPCA Labs; KPIT Cummins Infotech; L&T; Nicholas Piramal; Orchid Chemicals; Sasken Communications; Upper Ganges and Zensar Tech.
Thu 10:28:42 a ONGC may buy a stake in SHELL's Indian LNG Plant
Thu 11:39:37 a ONGC earned $42-$43 on each barrel of oil in Q3
Thu 11:51:29 a Jet Airways Board approves acquisition of Sahara Airlines, says it will pay all cash for Sahara
Thu 12:14:16 p Deccan Chronicle to spend Rs250mn on Bangalore expansion
Thu 12:33:28 p L&T Q3 profit at Rs2.59bn (up 96%) and total income at Rs37.83bn (up 12%)
Thu 12:54:32 p SRF open interest of F&O segment reaches to 96%. No fresh positions allowed
Thu 01:38:22 p L&T expects orders to grow 50% this year
Thu 01:46:43 p IPCL Q3 profit at Rs2.28bn (up 20%)
Thu 02:05:37 p Orchid Chemical Q3 profit at Rs289.6mn (up 402%) and sales at Rs2.38bn (up 37.5%)

My Broker's calls on 18.01.2006

Wed 09:59:36 a Buy Balram Chini at CMp with a SL 134 and tgt of Rs146, 148 - Biren
Wed 10:02:15 a Buy IVRCL Infra at Rs833 with SL of Rs827 and tgt of Rs847 - Pritesh
Wed 10:34:55 a high risk trade buy dchl cmp 337.35 with a sl of Rs 332 target 346 and 349 - Biren
Wed 10:51:05 a Our IVRCL Infra call going strong in a weak market at Rs843 - Pritesh
Wed 11:01:13 a high risk trade buy dchl cmp 337.35 with a sl of Rs 332 target 346 and 349 - biren
Wed 11:02:24 a Buy Satyam at Rs729 with SL of Rs724 and tgt of Rs739 - Pritesh
Wed 11:05:55 a high risk trade buy orchidchem cmp 253.6 with a sl of rs 249 target 261 and 263 - biren
Wed 11:08:21 a Our Satyam Call going strong at Rs738.40, close to acheiving the tgt - Pritesh
Wed 11:10:00 a Our tgt caheived in Satyam Call - Pritesh
Wed 11:27:09 a Buy Centuty Textile at Rs324 with SL of Rs319 and tgt of Rs332
Wed 12:10:02 p Buy BEL at 992 with SL of Rs 985 and tgt of Rs 1002 and 1008 - Deepak
Wed 12:22:06 p Sell ICICI Bank at Rs 555 with SL of Rs 562 and TGT of Rs548 - Deepak
Wed 12:43:23 p Our Century textile SL triggered
Wed 01:15:51 p Our tgt acheived in short call of ICICI Bank - Deepak
Wed 01:26:05 p Buy Hindalco at Rs 148 with SL Rs 145.5 and tgt of Rs 153 - Deepak
Wed 02:41:53 p Buy VSNL at Rs365 with SL of Rs361 and tgt of Rs372
Wed 02:57:56 p Buy Gail at Rs274.50 with SL of Rs270 and tgt of Rs280 - Pritesh
Wed 03:05:30 p Our BTST Call: Buy KEC International at Rs302 - Deepak
Wed 03:09:24 p Our tgt acheived in VSNL call
Wed 03:21:53 p Our tgt acheived in BEL Call: Deepak
Wed 03:27:39 p Our BTST Call: Buy Titan at CMP of Rs736 (dont buy in F&O, buy only in cash)
Wed 08:05:04 a In line with our expectations Reliance Shares have come down to Rs700 levels
Wed 08:45:18 a Both NSE and BSE have fixed January 18, 2006, to January 24, 2006 as the No-delivery period. Hence, billing for this scrip will be done on January 25, 2006.
Wed 08:50:19 a Wipro Q3 profit at Rs5.32bn (up 24.5%)
Wed 08:53:24 a Wipro Q3 revenue at Rs27.7bn (up 32.5%)
Wed 09:52:39 a Biocon Q3 profit at Rs327.9mn (down 28%) and sales at Rs1.72bn (up 7.5%)
Wed 10:04:08 a Aurobindo Pharma's two products included in WHO Pre-qualification list
Wed 10:07:37 a HCL Tech declares an interim dividend of Rs4 a share
Wed 10:16:42 a HCL Tech Q3 profit at Rs2.78bn (up 66%)
Wed 11:52:14 a REL Q3 profit at Rs1.65bn (up 23%)
Wed 11:54:00 a REL Q3 total income at Rs11.37bn (up 0.26%)
Wed 12:05:46 p BUY ZUARI AGRO CMP 140.5 WITH A SL OF RS 136 TARGET 148 AND 150 - biren
Wed 12:13:55 p Dena Bank Q3 profit at Rs831.8mn (up 262%) and total income at Rs4.78bn (up 25.9%)
Wed 12:26:06 p Syndicate Bank to pay mid year dividend of Rs1.50 a share
Wed 12:44:36 p Scandent Solutions unit wins order from UK
Wed 01:05:51 p HDFC Q3 profit at Rs2.84bn (up 20%) and total income at Rs10.55bn (up 24%)
Wed 02:35:30 p Crew BOS Board to consider interim dividend on Jan 28
Wed 02:40:35 p SBI, CLSA in Investment - Banking alliance
Wed 02:47:29 p Maharshtra Seamless Q3 profit at Rs417mn (152%) and revenue at Rs2.77bn (up 30%)
Wed 03:13:43 p Our BTST call: Buy Nifty Jan Future at CMP of Rs2802

My Brokers calls on 17.01.2006

Tue 09:55:23 a Buy Hind Cons at CMP with a SL of Rs 139 and tgt of Rs 150,152 - Biren
Tue 10:05:41 a Buy IVRCL Infra at 853 with SL of Rs845 and tgt of Rs866 - Pritesh
Tue 10:12:50 a Buy TCS at Rs1628 with SL of Rs1622 and tgt of Rs1644 - Pritesh
Tue 10:22:19 a Our TCS call is going strong at Rs1637 - Pritesh
Tue 10:25:20 a buy kakatiya cem cmp 108.1 with a sl of Rs 105 target 114 and 116 - Biren
Tue 10:33:18 a high risk trade buy andhra sug cmp 219.2 with sl of rs 214 target 226 and 229 - Biren
Tue 10:44:42 a buy zensartech cmp 195 with a sl of Rs 190 target 204 and 207 - Biren
Tue 11:01:41 a modify zensar tech sl from 190 to 194 now - Biren
Tue 11:04:40 a buy ind swift lab cmp 174 with a sl of rs 170 target 182 and 184 - Biren
Tue 11:11:29 a Buy ITI at Rs 81.70 with SL of Rs 79 and TGT of Rs 83 and Rs 85 - Deepak
Tue 11:14:43 a Buy Rel Cap at Rs 441 with a SL of Rs 435 and tgt of Rs 446 and Rs 450 - Deepak
Tue 11:21:18 a Buy SBI at Rs926 with SL of Rs921 tgt of Rs939 - Pritesh
Tue 11:27:42 a Our IVRCL Infra SL triggered - Pritesh
Tue 12:01:13 p Our SBI SL triggered - Pritesh
Tue 12:11:30 p Our TCS SL triggered - Pritesh
Tue 12:23:30 p Our andhra sugar sl triggered - Biren
Tue 12:31:34 p Buy Reliance Industries at Rs 905 with SL of Rs 899 and TGt of Rs 920 - Deepak
Tue 01:21:22 p buy m&m cmp 524.65 with a sl of Rs 520 target 532 and 534 - Biren
Tue 02:09:15 p Our Reliance Indus call bang on tgt - Deepak
Tue 02:23:42 p Our Reliance Cap SL triggered- Deepak

Tue 09:53:21 a BILT Board to meet on Jan 24 to consider purchase of unit
Tue 10:08:27 a SSI India Board approves raising Rs750mn
Tue 10:26:43 a 3i Infotech wins order from Kazakhstan Bank
Tue 11:08:44 a Federal Bank Q3 profit at Rs716mn (up 496%) and revenue at Rs4.11bn (up 23%)
Tue 12:16:44 p Please note that NSE and BSE have decided to conduct a special trading session in Reliance Industries Limited (RIL) on January 18, 2006 between 8am and 9am. Normal trading hours remain unchanged (between 9.55am and 3.30pm).
Tue 01:50:41 p Satyam says stake sale not in interest of its shareholders
Tue 02:43:35 p Zensar to announce accord with Singapore's Nomura on Jan 18

Emotion, Neuroscience and Investing - Investors as Dopamine Addicts

By James Montier of Dresdner Kleinwort Wasserstein in London
An excerpt:
Under emotional distress, people shift toward favouring high-risk, high payoff options, even if these are objectively poor choices. This appears based on a failure to think things through, caused by emotional distress...When self-esteem is threatened, people become upset and lose their capacity to regulate themselves. In particular, people who hold a high opinion of themselves often get quite upset in response to a blow to pride, and the rush to prove something great about themselves overrides their normal rational way of dealing with life...Self-regulation is required for many forms of self-interest behaviour. When self- regulation fails, people may become self-defeating in various ways, such as taking immediate pleasures instead of delayed rewards. Self-regulation appears to depend on limited resources that operate like strength or energy, and so people can only regulate themselves to a limited extent...Making choices and decisions depletes this same resource. Once the resource is depleted, such as after making a series of important decisions, the self becomes tired and depleted, and its subsequent decisions may well be costly or foolish...The need to belong is a central feature of human motivation, and when this need is thwarted such as by interpersonal rejection, the human being somehow ceases to function properly. Irrational and self-defeating acts become more common in the wake of rejection

Happy Pongal


Dear Friends,
I wish you all Happy Pongal. As I am going to my native place for Pongal, there will not be any postings till 16.01.2006.

Are You A Smart Trader?

The following excerpt from Futures magazine (Copyright © 2001 Futures Magazine)

Here are the some mistakes of the best and brightest Traders. Hope you are a really very smart.
1. Not diversifying because they know they're right.
Smart people know they're smart. They've made good grades all their academic lives and maybe collected a few scholarships along the way. They've got multiple degrees. They can recall obscure pieces of information on many topics. People tell them they're smart. All of this can go to these people's heads if they're not careful. Eventually, they get taught a lesson in trading: They cannot outsmart the market.
2. Not using a sell strategy.
Smart people know they've stacked the odds in their favor and they have done their homework. They don't believe they can fail. Maybe they've never failed at anything significant before in their lives. Who needs a sell strategy when you know you're right? The market has ways of proving people wrong.
3. Averaging down in a losing position.
Smart people know the investment idea was good before, so it's an even better deal now if you can buy in cheaper, right? Wrong. The market can continue lower. Investing further in a losing position can severely beat up a portfolio and sometimes put investors out of the game.
4. Thinking that exhaustive, long-term studies of a strategy can predict the future.
Like the disclaimer says, past performance does not predict future results. This is actually true and backed up by countless studies of traders across many markets, across many strategies and across many time periods. Smart people sometimes think that, by taking vast sums of data and analyzing it to death, they have an edge in predicting what the market will do next. Blowups can and will occur when the market does somthing it has never done before.
5. Over-optimizing a strategy using historical data.
Because smart traders have the mental ability to think up all sorts of ways of trading, they can come up with countless parameter sets in their strategies to trade a historical database with wonderful results. The problem generally becomes that they are fighting the last battle in the markets in their simulations, not necessarily the next one that they should be concentrating on. They don't give themselves sufficient what-if scenarios that might occur and don't prepare for the what-ifs properly.
6. Searching for perfection.
Intelligent traders can come up with so many potentially better ways to trade that they sometimes spend most of their lives searching for perfection. Often the better approach is trading the best strategy they have at the moment and realizing they can work at making it better over the long run. You'll never have the perfect trading strategy. Just give it the best shot you can each day and never stop trying to make it better.
7. Frequently changing an existing losing trading strategy to a better strategy.
Smart people often have very active minds that can dream up all sorts of new, better ways to trade. Some ways even can be quite complicated to satisfy their intellectual firepower. But, if you make the assumption that all strategies have their day in the sun and their day in the doghouse, then moving away from a losing strategy may be foolish. The strategy that looks hot right now may become cold down the road and this year's mediocre strategy may become next year's star performer.

Copyright © 2001 Futures Magazine

NSDL's Guide to Demat - Part II


Dematerialisation
1.
What do you mean by dematerialisation?
Ans.
Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with its DP. In order to dematerialise certificates; an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF], which is available with the DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates.
2.
Can I dematerialise any share certificate?
Ans.
You can dematerialise only those certificates that are already registered in your name and are in the list of securities admitted for dematerialisation at NSDL. All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 4,300 companies and is steadily growing. You can get an updated list of these companies from your DP or from NSDL's office or from NSDL website at www.nsdl.co.in.
3.
What precautions should I take before defacing a share certificate?
Ans.
Before defacing the share certificate, you must ensure that it is available for dematerialisation. You must therefore check with your Depository Participant (DP) whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking "Surrendered for Dematerialisation" on the face of the certificate.
4.
How long does the dematerialisation process take?
Ans.
Dematerialisation will normally take about 30 days.
5.
What if it takes more than 30 days for dematerialisation of the shares?
Ans.
If the process of dematerialisation takes more than 30 days, please contact your DP. If he is unable to help you, then you may send your grievance to:
The Officer in ChargeInvestor Grievance CellNational Securities Depository Limited4th Floor, Trade WorldKamala Mills CompoundSenapati Bapat MargLower Parel, Mumbai - 400 013Email: relations@nsdl.co.in

IX. Rematerialisation
1.
Can my electronic holdings be converted back into certificates?
Ans.
Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for rematerialisation of the same. 'Rematerialisation' is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL, after verifying that you have the necessary balance. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you.

X. Trading / Settlement
1.
What is the procedure for selling dematerialised securities?
Ans.
The procedure for selling dematerialised securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to you by your DP at the time of opening the account. Procedure for selling securities is given here below:
You sell securities in any of the stock exchanges linked to NSDL through a broker;
You give instruction to your DP to debit your account and credit the broker's [clearing member pool] account;
Before the pay-in day, your broker gives instruction to its DP for delivery to clearing corporation;
Your broker receives payment from the stock exchange [clearing corporation] ;
You receive payment from the broker for the sale of securities.
2.
How can I purchase dematerialised securities?
Ans.
For receiving demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later. Alternatively, you may choose to give separate receipt instruction every time some securities are to be received. The transactions relating to purchase of securities are summarised below:
You purchase securities through a broker ;
You make payment to your broker who arranges payment to clearing corporation on the pay-in day ;
Your broker receives credit of securities in its clearing account (clearing member pool account) on the pay-out day;
Your broker gives instructions to its DP to debit clearing account and credit your account;
You receive shares into your account. However, if standing instructions are not given at the time of opening the account, you will have to give 'Receipt Instructions' to your DP for receiving credit,.
You should ensure that your broker transfers the securities from its clearing account to your depository account, before the book closure. If the securities remain in the clearing account of the broker, the company will give corporate benefits (dividend or bonus) to the broker. In that case, you will have to collect the benefits from your broker.
3.
What do you mean by 'Market Trades' and 'Off Market Trades'?
Ans.
Any trade settled through a clearing corporation is termed as a 'Market Trade'. These trades are done through stock brokers on a stock exchange. 'Off Market Trade' is one which is settled directly between two parties without the involvement of clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.
4.
If I sell securities through a sub-broker, which part of the delivery instruction slip should be filled?
Ans.
If you are delivering securities to your sub-broker you would need to fill-in the off-market trade portion of the delivery instruction slip.
5.
What settlement details are required on the delivery instruction slip?
Ans.
On every stock exchange, various settlements are effected every day such as daily settlement , auction settlement etc. Each of these settlements is identified by combination of a market type and a settlement number. You are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to your broker's account. These settlement details are available on the contract note issued by the broker.
6.
What is T+3 rolling settlement cycle and when delivery is to be given to a broker ?
Ans.
In case of T+3 rolling settlements , the trades taking place on each trading day are required to be settled on the third day following the date of trade. For example trades of Monday will be settled on Thursday morning. In this example, if you have sold securities, you need to make sure that the securities reach the account of clearing member of the stock exchange latest by Wednesday.
7.
In case of T+3 rolling settlement cycle if I am trading (selling) through a sub-broker when do I need to give delivery instruction to my DP?
Ans.
In this case also the settlement deadlines will remain the same (i.e. Thursday morning for a Monday trade). However, there is an additional transfer involved. You will transfer securities to the sub-broker's account and the sub-broker will further transfer the securities to the account of clearing member. Therefore, in this case you should give delivery instructions to your DP immediately after confirmation of sale transaction.
8.
How do I come to know about the settlement deadlines?
Ans.
The depository participant with whom you have your demat account will prescribe the deadlines to be followed by you for submission of delivery instruction slips. You should deliver instructions to your DP as per these deadlines.
9.
When I buy shares, in what time should I receive the securities from my broker?
Ans.
The broker is expected to transfer the securities to you within two working days or four calendar days after securities are received in his pool account, provided you have made the requisite payment to the broker.
10.
What precautions do I need to observe with respect to Delivery Instruction Slips [DIS]?
Ans.
The following precautions are to be taken :-
Ensure and insist with your DP to issue DIS book; do not accept loose slips.
Ensure that DIS numbers are pre-printed and DP takes acknowledgment from you for the DIS booklet issued to you.
Ensure that your account number [client id] is pre-stamped.
If your account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed.
Avoid using loose slips
Do not leave signed blank DIS with anyone viz. broker/sub-broker.
Keep the DIS book under lock and key when not in use.
If only one entry is made in the DIS , strike out remaining space to prevent misuse by any one.
Please fill in target account -Id and all details in the DIS, yourself.
11.
What is 'execution date' given in the delivery instruction form?
Ans.
Execution date is the date on which securities will be actually debited from your account. The execution date written on the delivery instruction has to be entered by the DP, in the DPM system [computer]. DPM system will record the date and will debit your account only on that date. You may issue the instruction well in advance of the date on which you want the securities to be debited from your account but your account will be debited only on the execution date. This facility is called future execution date facility.
12.
What benefit do I get by giving delivery instruction with a future execution date?
Ans.
By giving a future dated instruction the risk of non-execution of instruction due to lack of time or last minute rush is covered.
13.
What is the importance of record dates to me?
Ans.
In case the securities bought by you are yet to be transferred into your account by your broker before the book closure / record date, you will not be entitled to receive corporate benefits such as dividend or bonus since your name will not figure in the list of beneficial owners. Hence, you must ensure that securities bought by you are transferred into your account before the book closure / record date announced by the company.

XVII. Safety Features
1.
How will I know that my DP has updated my account after each transaction?
Ans.
Your DP will give you a Transaction Statement periodically, which will detail your current balances and the various transactions you have done through the depository account. If you so desire, your DP may provide Transaction Statement at intervals shorter than the stipulated ones, probably at a cost.
2.
At what frequency will I receive my Transaction Statement from my DP?
Ans.
You will receive a Transaction Statement from your DP once in a quarter. If you have done any transaction during the quarter, you will receive the statement within fifteen days of the transaction.
3.
What is to be done if there are any discrepancies in my transaction statement?
Ans.
In case of any discrepancy in the transaction statement, you can contact your DP. If the discrepancy cannot be resolved at the DP level, you should approach NSDL. NSDL also sends out a statement of holdings to a few clients of DPs, picked at random. In case the balance in your account as indicated by your DP does not tally with the balance as indicated by NSDL, you can contact your DP/ NSDL for clarification.
4.
What happens if I lose my Transaction Statement?
Ans.
You should inform your DP and obtain a duplicate Transaction Statement.
5.
What security do I have if the only proof of my holdings in the depository is merely a piece of paper indicating my account balance?
Ans.
No transaction can be effected in your account without your written authorisation. Further, if you are away for a long time, you have the facility of freezing your account wherein only credits into your account will be allowed and no debit will be possible.
6.
What will happen if my DP goes bankrupt or stops operation?
Ans.
In a rare event of your DP going bankrupt or closing the operations, the interests of the investors will be fully protected. In such a situation, the investors will be given an option of either transferring the securities to a new DP or they may rematerialise the securities.
7.
What precautions does NSDL take to protect the data in its depository system?
Ans.
The data carries a high importance in the NSDL depository system. NSDL has taken necessary steps to protect the transmission and storage of data. The data is protected from unauthorised access, manipulation and destruction. The following back up practices are adopted to protect the data:
Local Back up
Remote Back up
Disaster Recovery Site
In addition to this, every DP is required to take daily back up, at the end of each day of operation.
8.
Can I freeze my account?
Ans.
NSDL system provides the facility to freeze the depository accounts for any debits or for both, debits and credits. In an account which is "freezed for debits", no debits will be permitted from the account, till the time it is unfreezed.
9.
What should I do if my DP is unable to resolve my problem?
Ans.
In case of failure of a DP to resolve your grievance, you can write to the investor grievance cell of NSDL at the following address:
The Officer in ChargeInvestor Grievance CellNational Securities Depository Limited4th Floor, Trade WorldKamala Mills CompoundSenapati Bapat MargLower Parel, Mumbai - 400 013Email : relations@nsdl.co.in

E- Auctions for Imported Industrial and Consumer Goods By Indian Customs

Indian Customs Department has started to offer confiscated Imported Industrial and Consumer Goods to Indian Public through E- Auctions. You require to deposit Rs.5000 ( of which Rs.4900 is refundable, if you wish to cancel your registration) to the authorities for registration. For more information click here.
Chennai

The Trend is your Friend

Do not focus too much on markets where the trend is not strong enough or the market is choppy. Commit your forces to the stronger trend. It is highly important that a trader be aware of a strong force in the market, either bullish or bearish. When this force is at its strength, it would be foolish to buck it. However, one must learn to recognize when a trend is about to run its course or is near a period of exhaustion so that he can protect himself from staying in the market too long. The trend is usually right. The crossing over of long and short period moving average is a very simple indication of a trend change. Be patient and wait for a trend to emerge. In a bull market, one can only be long or on the sidelines. Remember. not having a position is a position.

NSDL's Guide to Demat - Part I


1. What is a depository?
Ans.
A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.
2. How can I avail the service of a depository?
Ans.
A depository interfaces with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilise the bank's services. Suggestions on how to select a DP are given in Section IV.
II. Benefits


1. What are the benefits of participation in a depository?
Ans. The benefits of participation in a depository are:
1. Immediate transfer of securities;
2. no stamp duty on transfer of securities;
3. elimination of risks associated with physical certificates such as bad delivery , fake securities , etc.;
4. reduction in paperwork involved in transfer of securities;
5. reduction in transaction cost;
6. nomination facility;
7. change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately;
8. transmission of securities is done by DP eliminating correspondence with companies;
9. convenient method of consolidation of folios/accounts ;
10. holding investments in equity, debt instruments and Government securities in a single account;
11. automatic credit into demat account, of shares, arising out of split/consolidation/merger etc.

III. Services
1.
What are the facilities offered by NSDL?
Ans.
NSDL offers following facilities: -
dematerialisation i.e., converting physical certificates to electronic form;
rematerialisation i.e., conversion of securities in demat form into physical certificates;
facilitating repurchase / redemption of units of mutual funds;
electronic settlement of trades in stock exchanges connected to NSDL;
pledging/hypothecation of dematerialised securities against loan;
electronic credit of securities allotted in public issues, rights issue;
receipt of non-cash corporate benefits such as bonus, in electronic form;
freezing of demat accounts, so that the debits from the account are not permitted;
nomination facility for demat accounts;
services related to change of address;
effecting transmission of securities;
instructions to your DP over Internet through SPEED-e facility. (Please check with your DP for availing the facility);
account monitoring facility over Internet for clearing members through SPEED facility;
other facilities viz. holding debt instruments in the same account, availing stock lending/borrowing facility, etc.

IV. Account Opening
1.
You mentioned that I would have to open an account with a DP if I want to participate in the depository. Who is a DP?
Ans.
NSDL provides its services to investors through its agents called depository participants (DPs). These agents are appointed by NSDL with the approval of SEBI. According to SEBI regulations, amongst others, three categories of entities i.e. Banks, Financial Institutions and Members of Stock Exchanges [brokers] registered with SEBI can become DPs. You can get a list of DPs from NSDL's office or from our website at www.nsdl.co.in.
2.
How do I select a DP?
Ans.
You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be:
Convenience - Proximity to your office/residence, business hours.
Comfort - Reputation of the DP, past association with the organisation, whether the DP is in a position to give the specific service you may need?
Cost - The service charges levied by DP and the service standards.
In order to obtain the complete list of DP locations and their comparative charge structure, you may log on to www.nsdl.co.in or else you may write to NSDL for the same.
3.
Whether all the DPs are same?
Ans.
All the DPs are appointed subject to fulfilment of uniform requirements of SEBI ( Depositories and Participants) Regulations, 1996 and requirements of NSDL. However, the type of services offered and the service standards may differ among various DPs. For example, a DP branch having direct connectivity with the main office having depository set-up may be in a position to execute instructions faster.
4.
What should I do when I want to open an account with a DP?
Ans.
You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with DP in a NSDL prescribed standard agreement, which details your and your DPs rights and duties. All investors have to submit following proof of identity and proof of address along with the prescribed account opening form
Proof of Identity : Your signature and photograph must be authenticated by an existing demat account holder with the same DP or by your bank . Alternatively, you can submit a copy of Passport, Voters Id Card, Driving License or PAN card with photograph.
Proof of Address : You can submit a copy of Passport, Voters Id Card, Driving License or PAN card with photograph, ration card or bank passbook as proof of address.
Passport-size photograph.
You must remember to take original documents to the DP for verification. You should remember to obtain a copy of the agreement and schedule of charges for your future reference.
5.
Can I open more than one account with the same DP?
Ans.
Yes. You can open more than one account with the same DP. There is no restriction on the number of accounts you can open with a DP.
6.
Am I restricted to having account with only one DP?
Ans.
No. There are no restrictions on the number of DPs you can open accounts with. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP.
7.
Do I have to keep any minimum balance of securities in my account with my DP?
Ans.
No. The depository has not prescribed any minimum balance. You can have zero balance in your account.
8.
Can I open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along-with my wife ?
Ans.
No. The demat account must be opened in the same ownership pattern in which the securities are held in the physical form. e. g. if one share certificate is in your individual name and another certificate is jointly held in your and your wife's name , two different accounts would have to be opened.
9.
What do I do if I have physical certificates with the same combination of names, but the sequence of names is different. i.e. some certificates with husband as first holder and wife as second holder and other set of certificates with wife as first holder and husband as the second holder?
Ans.
In this case you may open only one account with husband and wife as the account holders and lodge the security certificates with different order of names for dematerialisation in the same account. You will fill-up an additional form called " Transposition cum Demat" form. This would help you to effect change in the order of names as well as dematerialise the securities.
10.
Can someone else operate my account on my behalf on the basis of a power of attorney ?
Ans.
Yes. If you authorise any person to operate your account by executing a power of attorney and submit it to your DP, that person can operate the account on your behalf.
11.
Why should I give my bank account details at the time of account opening?
Ans.
It is for protection of your interest. Your bank account number will be mentioned on the interest or dividend warrant, you are entitled to, so that such warrant cannot be encashed by any one else. Further, a DP cannot open the account if bank account number is not given.
12.
Can I change details of my bank account?
Ans.
Yes. Since in the depository system monetary benefits on your security balances are paid as per the bank account details provided by you at the time of account opening , you must ensure that any subsequent change in bank account details is informed to your depository participant.
13.
What is 'Standing Instruction' given in the account opening form?
Ans.
In a bank account, credit to the account is given only when a 'paying in' slip is submitted together with cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of 'standing instruction' is given. If you say 'Yes' for standing instruction, you need not submit 'Receipt in' slip everytime you buy securities.
14.
Can I operate a joint account on "either or survivor" basis just like a bank account?
Ans.
No. The demat account cannot be operated on "either or survivor" basis like the bank account.
15.
Can I add or delete names of accountholders (second or third accountholder) after opening the account ?
Ans.
No. Names of the accountholders for a depository account cannot be changed. If you want to change name or add / delete an accountholder, you need to open a new account in the desired holding pattern (names) and transfer the securities to the newly opened account. The old account may be closed.
16.
What should I do if my address is changed? Do I need to write to each company separately?
Ans.
In case your address is changed, you only need to inform the new address to your DP(s). When DP enters the new address in the depository computer system, it will be automatically conveyed to all companies in which you hold shares.
17.
Can I close my demat account with one DP and transfer all securities to my account with another DP ?
Ans.
Yes. You can submit account closure request to your DP in prescribed form. Your DP will transfer all your securities, as per your instruction, and close your demat account.
18.
What would be the charges for account closure and securities transfer due to account closing?
Ans.
The charges would be as per the schedule of charges of your DP, agreed by you at the time of account opening or any subsequent changes therein.

ELSS – Guide

If you are looking at investing some money ( to save tax) that you won’t need in near future, and are willing to ride the ups and downs of the market, you may find ELSS an ideal tax saving option. Please Click here for Fidelity's Guide to ELSS.

http://www.fidelity.co.in/learnplan/learning/investor_guides/ELSS-Guide.pdf

Get very good at the basics of trend and chart analysis

Applying good old fashioned charting analysis will get you at least 95% of where you wish to go. Identifying trends in different timescales (in daily, weekly and monthly charts), support and resistance and reversal days are all the seasoned trader requires for successful analysis.

One thousand indicators cannot tell the novice as much as simply looking at the chart with a little well practiced knowledge on your side.

Have a written Plan for Trade : Plan your trade, Trade your Plan

Be disciplined, create a game plan then stick to it. A trade does not simply consist of a position. It consists of a position plus reasons for having the position plus a stop loss level plus profit taking levels all wrapped up in a simple risk management strategy.

A written plan will assist in removing the temptation to make things up as you go along. You should have only one approach to tracking and keep this as simple and clean as possible. It is important you periodically evaluate your plan in light of changing market conditions.

For Daily Market Calls Click here.

Daily Market Calls

Daily Market calls received from various sources will be published at www.invest-care.com/daily . This page will be updated daily as I don’t want to cluster my blog with buy and sell advices.
Daily Market Calls

Investment Hazards


In the past one decade, lakhs of gullible investors have lost crores of money, chasing rainbows ( IPOs, teak plantation, chit funds, etc.) sold to them by unscrupulous operators.

Some points to avoid the biggest pitfalls:

Control your greed
High return implies high risk. Ask questions : how can they offer such high rate of return?

Look at the track record
Good name in the industry, interest or dividend track record, promoter holding, intuitional holdings, credit ratings, bonus issue just before IPO, Big order news or big oil field found news, etc.,
Consistency in profitability
Good company should have been growing steadily with no inconsistent spurts in the profits.

The company should be regularly tax and dividend paying one
Any company that has paid out cash must have earned it

Look for credit rating
For company deposits and debentures , choose only companies which gave good ratings. Look for a government-vetted scheme or SEBI stamp.

Don’t get taken in by high incentives
Gifts or incentives that cost Rs100 or Rs 1000 could be the bait for lakhs.

Be wary of hard sell
Be wary of high promises, huge muli media advertisements disproportionate to project size, gifts, posh office, etc., Security sops like post dated cheques mean nothing when the idea is to defraud.
Avoid chain schemes
Remember history repeats

Most Profitable Questions ByRosalene Glickman, Ph.D.

"The quality of the questions you ask determines the quality of your life. When you ask the best questions of yourself and others, you invite the best answers. You can discover what "the best" means in whichever context you choose. You simply create the best path to your most desired outcomes."
Rosalene Glickman, Ph.D.

Most Profitable Questions:
* What's my most profitable activity?
* How can I maximize the profitability of this activity?
* What's the most profitable use of my time right now?

Optimal WHAT Questions
* What is my most important goal right now?
* What is the best action I can take toward it now?
* What is the best use of my time now/next week?
* What can I do to bring out the best in you?

Optimal WHY Questions
* Why is this my greatest asset?
* Why is this my most important goal?
* Why is this our most profitable product?
* Why is this the best solution?
Optimal HOW Questions
* How can I bring out the best in myself and others?
* How can I best utilize my greatest talents and abilities?
* How can we be of greatest service to our customers?
* How can we maximize profits?
Optimal WHEN Questions
* When is the best time to take this action?
* When am I most productive?
* When am I at my best?
Optimal WHERE Questions
* Where is your favorite city/beach/ski resort/location?
* Where is the best place for us to talk privately?
* Where is my best source of inspiration?* Where is the best location to work?
Imagine yourself starting each day with five Optimal questions, such as:
1. What is supremely important to me?
2. What are my most important goals today?
3. Which actions will be most beneficial for my self-confidence and self-respect today?
4. What will make each task today most profitable/beneficial/enjoyable?
5. What is the most constructive use of my time right now?

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