Archive for September, 2009

Bharti-MTN Deal failed again

The much-awaited deal between Bharti and South Africa’s MTN that expected to merge the two telecom giant has failed yet again. The doubtful issue of dual listing proved to be the deal breaker.

Bharti, in a statement, said, the company has decided to uncouple itself from the deal. “We hope the South African government will review its position in the future and allow both the companies an opportunity to re-engage.” The statement further said that the South African government had expressed its inability to accept it in the current form. Also, it stated, Bharti would continue to explore international expansion opportunity.

 

South African mobile phone operator MTN declined to comment on a statement by India’s Bharti Airtel that tie-up talks have been called off, saying it will issue a statement later. “We will send out a statement later on,” MTN spokeswoman Nozipho January-Bardill said.

 

While due to deal failure South African rand declined almost a half a percentage.

FII and DII Activity on Wednesday, September 30, 2009

FII and DII activity that was seen on Wednesday, September 30, 2009 is shown below. The report shows that FII were net buyers of Rs 1074.53 crore where as DII saw buying of Rs 159.75 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

30-Sep-2009

4281.06

3206.53

1074.53

 

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

30-Sep-2009

2109.93

1950.18

159.75

 

 

Advice for – Wednesday, September 30, 2009

Yesterday: Market opened with a bull gap n continuously consolidated around that level only. Not much movement in nifty but we have witnessed some stock specific buying in the market.

 

Today: Indian Stock Market would open flat to positive led by good global cues. Technically again overall structure of the market remains strong as bull has upper hand over bear unless 4950 to be break decisively. And if that support would gone than next target for the sensex is 4840.

 

Note: Stocks to trade for F&O, intraday, short-term delivery, long term delivery and short selling and when to exit those stocks would be sent to paid subscribers live during the market hours through SMS.

 

BSE Sensex: (16853) The support for the Sensex is 16800 and the resistance to the up move is at 17000.

 

NSE Nifty: (5007) The support for the Nifty is at 4950 and the resistance to the up move is at 5020 

F&O Cues: FII were net buyer of 158cr in index future & net buyers of 418cr in stock future

FII and DII Activity on Wednesday, September 30, 2009

FII and DII activity that was seen on Wednesday, September 30, 2009 is shown below. The report shows that FII were net buyers of Rs 714.5 crore where as DII saw buying of Rs 91.77 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

29-Sep-2009

3360.48

2645.98

714.5

              

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

29-Sep-2009

1151.69

1059.92

91.77

 

 

Advice for – Tuesday, September 29, 2009

Last trading Session: Nifty opened with a negative zone n we had witness highly volatility in the market but nifty still holding 4950

 

Today: Indian Stock Market would open with flat to positive as global cues are very much on the positive side. Now today we have the first day of expiry this day can be treated as trend setting day for this particular month. But overall market looks up.

 

Note: Stocks to trade for F&O, intraday, short-term delivery, long term delivery and short selling and when to exit those stocks would be sent to paid subscribers live during the market hours through SMS.

 

BSE Sensex: (16693) The support for the Sensex is 16500 and the resistance to the up move is at 17200.

 

NSE Nifty: (4959) The support for the Nifty is at 4950 and the resistance to the up move is at 5010 

 

F&O Cues: FII were net sellers of 359.15 cr in index future & sellers of 359.30 cr in stock future.

FII and DII Activity on Friday, September 25, 2009

FII and DII activity that was seen on Friday, September 25, 2009 is shown below. The report shows that FII were net sellers of Rs 37.72 crore where as DII saw buying of Rs 227.26 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

25-Sep-2009

2101.97

2139.69

-37.72

 

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

25-Sep-2009

1175.86

948.6

227.26

 

 

FII and DII Activity on Thursday, September 24, 2009

FII and DII activity that was seen on Thursday, September 24, 2009 is shown below. The report shows that FII were net buyers of Rs 1061.52 crore where as DII saw selling of Rs 616.77 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

24-Sep-2009

5772.87

4711.35

1061.52

 

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

24-Sep-2009

1593.65

2210.42

-616.77

 

 

Advice for – Thursday, September 24, 2009

Yesterday: Nifty opened flat n consolidating throughout the day and in the second half it corrected sharply n closed below 5000 mark.

 

Today: Indian Stock Market would open with negative note as global cues are very much on the negative side. Important thing is one should not be short in the market as this market is now in the bull run also yesterday what we have seen is just a profit booking not a shorting so the correct strategy is booked profit at correct level n sit a side wait for the correction & than start buying at correct level.  

 

Note: Stocks to trade for F&O, intraday, short-term delivery, long term delivery and short selling and when to exit those stocks would be sent to paid subscribers live during the market hours through SMS.

 

BSE Sensex: (16741) The support for the Sensex is 16500 and the resistance to the up move is at 17000.

 

NSE Nifty: (4976) The support for the Nifty is at 4900 and the resistance to the up move is at 5100 

 

F&O Cues: FII were net sellers of 527 cr in index future & sellers of 730 cr in stock future.

FII and DII Activity on Wednesday, September 23, 2009

FII and DII activity that was seen on Wednesday, September 23, 2009 is shown below. The report shows that FII were net buyers of Rs 1748.99 crore where as DII saw buying of Rs 500.47 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

23-Sep-2009

4331.49

2582.5

1748.99

 

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

23-Sep-2009

1637.48

1137.01

500.47

 

 

Advice for – Wednesday, September 23, 2009

Yesterday: Nifty opened with a positive note and crosses its psychological resistance level of 5000 n closed above that.

 

Today: Indian Stock Market would open with flat to negative as global cues are very much silent. Also we have last two days of F&O expiry so we would be out of the market till expiry. But history suggests that Bull always have upper hand during last week of Expiry so let’s hope for the 5100 on the nifty.  

 

Note: Stocks to trade for F&O, intraday, short-term delivery, long term delivery and short selling and when to exit those stocks would be sent to paid subscribers live during the market hours through SMS.

 

BSE Sensex: (16866) The support for the Sensex is 16500 and the resistance to the up move is at 17000.

 

NSE Nifty: (5020) The support for the Nifty is at 4800 and the resistance to the up move is at 5100 

 

F&O Cues: FII were net buyers of 200 cr in index future & sellers of 17 cr in stock future.

Nifty closes above 5000 mark, 16 months high

The NSE Nifty mange to maintain its uptrend for the fifth consecutive session and closed above the 5,000 mark for the first time since May 22, 2008 i.e. at 16-month high. The mark 5000 was a big resistance for Nifty. The benchmark indices gained over 4% in five days.  

Buying in financial, technology, power, pharma, auto and oil marketing companies’ shares helped the markets to stay on the higher side throughout the session. Over 0.9% gain in European markets and 0.6% upside in US index futures were also supportive to the indices. 

Now market is at the stage where some downtrend may be seen. But any how good quarterly results are expected from Indian companies. 

EquityPandit.com would suggest staying invested and book profits in small-small quantities till market is in uptrend. Those who are yet not invested, stay away for some time.

 

FII and DII Activity on Tuesday, September 22, 2009

FII and DII activity that was seen on Tuesday, September 22, 2009 is shown below. The report shows that FII were net buyers of Rs 852.73 crore where as DII saw selling of Rs 539.14 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

22-Sep-2009

2754.2

1901.47

852.73

 

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

22-Sep-2009

894.92

1434.06

-539.14

 

 

EP Analysis: Long Term Investment vs. Market Timing

If you ask several people what long-term investing meant to them, you might get different answers. Some may say 10 to 20 years, while others may consider five years to be a long-term investment. Individuals might have a shorter concept of long term, while institutions may recognize long term to mean a time far out in the future. This variation in interpretations can lead to variable investment styles.

For investors in the stock market, it is a general rule to assume that long-term assets should not be needed in the three- to five-year range. This provides a cushion of time to allow for markets to carry through their normal cycles.

However, what’s even more important than how you define long term is how you design the strategy you use to make long-term investments. This means deciding between Long Term and Extremely Long Term management.

Long-Term Strategies


Investors have different styles of investing, but they can basically be divided into two camps: Long Term management and Extremely Long Term management. Buy-and-hold strategies - in which the investor may use an Long Term strategy to select securities or funds and hold them for the period of Five to Eight year while Extremely Long Term strategy defines the period of Ten to Eleven years. Below table clearly shows that extremely long term strategy would be extremely profitable as compared to Long term strategy.  
 

 

Relcapital

Year

Month

Price

Yearly Return%

Two Year Return%

Five Year Return%

Ten Year Return%

Thirteen Year Return%

1997

Jan

57

12.28

-33.33

-7.02

987.72

894.74*

1998

64

1999

38

 

2000

123

 

 

2001

93

 

 

2002

53

 

 

2003

58

 

 

 

2004

136

 

 

 

2005

104

 

 

 

2006

405

 

 

 

2007

620

 

 

 

2008

2614

 

 

 

 

2009

567

 

 

 

 

                          * Bonus and stock splits are not calculated in this table


As shown in the above table Reliance Capital gave a negative return of 7% as in case of long term strategy while same script gave almost 987% in Extremely Long Term strategy and some where around 5000% return in 11 years.

 

 

Unitech

Year

Month

Price

Yearly Return%

Two Year Return%

Five Year Return%

Eight Year Return%

Ten Year Return%

Eleven Year Return%

1998

Jan

45

0.00

-2.22

-4.44

31340.00

988.89*

-8.89*

1999

45

2000

44

 

2001

38

 

 

2002

42

 

 

2003

43

 

 

2004

122

 

 

 

2005

335

 

 

 

2006

Jun

14148

 

 

 

2007

Jan

464

 

 

 

 

2008

490

 

 

 

 

2009

41

 

 

 

 

 

                 * Bonus and stock splits are not calculated in this table

 

 

While Unitech gave a negative return of 4.5% in Long Term strategy as compared to 31340% in Eight year and a return of 988% in Extremely Long term strategy. In these returns we have not calculated bonus, dividends and stock split prices. Also when you invest in stock market for more than one year in particular scripts you would get Tax benefit.

 

Here EquityPandit.com shows some compelling data to convince investors to stay in for the extremely long run.

Active Management


One of the most important aspects of the investment is Active Management. It’s a bit difficult to understand the meaning of this term. But active management means you should actively manage your portfolio in such a manner that you should gain in a secure manner. That means there are so many risks involved when you have invested it for long term. Like just think the investor who had invested in Year 2007 his value is almost half or may be lower than that. But here the point is you should be very patient as you all know the recession we faced in year 2008 when most of us lost our hope & most investor sold their shares and booked huge loss. Mr. Warren Buffet the great investor guru predicted green shoot in the coming year & he starts buying & also holding the shares which he had. Just see the results of that he gained the biggest amount in Equity than any other Hedge fund in the world. So the conclusion is be patient, diversified your portfolio so you won’t suffer much in case of Satyam saga.

Timing


When it comes to market timing, there are many people for it and many people against it. The biggest proponents of market timing are the companies that claim to be able to successfully time the market. However, while there are firms that have proved to be successful at timing the market, they tend to move in and out of the spotlight. This is very much clear from above tables. What this data suggests that timing the market successfully is very difficult because returns are often concentrated in very short time frames. Also, if you haven’t invested in the market on its top days, it can ruin your returns because a large portion of gains for the entire year might occur in one day. Means say we have two investors. One who invested in Unitech in year 1998 he may have fed up in 2003 when there was no movement in the script. Possibly he may booked loss or still he believe in his decision and stayed invested he gained almost 31000% in next three year but that’s a extremely difficult to take a call whether he remain invested or not. But we have second investor who continuously study the market condition, who keep the script record including it’s financial performance & when he got clues of bull condition he bought the script In year 2003. He got the same return in small time span what first investor got within a big time span. So you should be in continues touch with the market, Economy & in the script in which you have invested.    

 

Conclusion


If volatility and investors’ emotions were removed completely from the investment process, it is clear that passive, long-term (8 years or more) investing without any attempts to time the market would be the superior choice. In reality, however, just like with a garden, a portfolio can be refined without compromising its passive nature. Historically, there have been some obvious dramatic turns in the markets that have provided opportunities for investors to cash in or buy in. Taking cues from large updrafts and downdrafts, one could have significantly increased overall returns, and as with all opportunities in the past.

 

Advice for – Friday, September 18, 2009

Yesterday: As we said Nifty opened with a good positive note but as it reaches to its psychological resistance level of 5000 it came under pressure but still it manages to close above 4958.

 

Today: Indian Stock Market would open with flat to negative gap as global markets are quite. As a trader I would be very caution as F&O expiry week is very near so try to avoid big trading do it in small qty only   

 

Note: Stocks to trade for F&O, intraday, short-term delivery, long term delivery and short selling and when to exit those stocks would be sent to paid subscribers live during the market hours through SMS.

 

BSE Sensex: (16711) The support for the Sensex is 16500 and the resistance to the up move is at 17000.

 

NSE Nifty: (4966) The support for the Nifty is at 4800 and the resistance to the up move is at 5014 

 

F&O Cues: FII were net sellers of 471 cr in index future & sellers of 617 cr in stock future.

Huge buying seen by FII on Thursday, September 17, 2009

FII and DII activity that was seen on Thursday, September 17, 2009 is shown below. The report shows that FII were net buyers of Rs 2759.46 crore where as DII saw buying of Rs 186.24 crore.

 

 

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

FII

17-Sep-2009

6122.95

3363.49

2759.46

 

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)

Category

Date

Buy Value

Sell Value

Net Value

DII

17-Sep-2009

1820.48

1634.24

186.24