Can we really make money in Share market?

Discussion in 'Money Matters' started by Vemala, Mar 8, 2014.

  1. lavanya2000

    lavanya2000 Bronze IL'ite

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    To me whatever happens (whether its BJP=> NDA come to power) anyway its going to be a coalition government.... chances are very high that market correction will happen right after election results come out (19000 to 20000 levels) is what i am guessing
     
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  2. Vemala

    Vemala Gold IL'ite

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    May be....Many corporates are betting for Modi to be PM even though its coalition govt....If its UPA govt, then 100% chances it will touch below 20K levels....
     
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  3. Vemala

    Vemala Gold IL'ite

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    IT stocks will correct if Modi will become PM , because his one of the AIM to bring down the dollar value to ~45Rs from the current 60Rs levels.............IT stocks may correct 5-10%...........
     
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  4. Vemala

    Vemala Gold IL'ite

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    Lavanya, Nice view ..But, every indian want to see 28K sensex and 280MP seats for BJP....We will wait till 16th May............
     
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  5. Vemala

    Vemala Gold IL'ite

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    Share market is always connected with Central Govt. If NDA gets, 260+, market will boom in next one year.

    Found nice article in kotak regarding the challenges for new govt.

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    [TD="width: 87%"][h=1]5 challenges for India's new government[/h] Expectations are sky-high in the stock market if the recent rally is anything to go by. However, a lot needs to be done and it is easier said than done to fix India's economic problems.


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    • Here are five challenges that the new government will face once elected to power:
    • [h=2]Fiscal deficit and government spending:[/h]
      Fiscal deficit is when the government's expenditure exceeds its earnings. A high fiscal deficit leads to a higher borrowing by the government. When that happens, it competes with businesses for money in the market. This keeps interest rates high and stokes inflation. The government needs money to spend. However, it needs to spend more on infrastructure and less on food, fuel and fertilizer subsidies. "In terms of per person spending, the government only spent an incremental Rs 110 on productive spending, while it spent an additional Rs 1,900+ per person on other expenditure over fiscals 2013 and 2014," according to CRISIL, a credit rating agency. The new government has to reverse this trend. It will have to cut subsidies and increase productive spending.
    • [h=2]Centre-state relations:[/h]
      In the past few years, a major reason for the fall in investments and new project planning is because of lack of approvals. A new government can help clear the bottlenecks. However, a lot of this in the hands of the state governments. Even issues like land acquisition, labour laws fall under the purview of the state government, according to a report by Kotak Securities. Also, the implementation of the key Goods and Services Tax (GST) needs state cooperation. A new government could face obstacles in states ruled by the opposition. This limits the scope for economic reforms required for growth.
    • [h=2]Transparent approval system:[/h]
      The UPA government was hit by investigations in the allocation of natural resources like mobile spectrum and coal blocks. In such an environment, the new government will have to frame a transparent process of allocation. This, however, may take time, further delaying a long list of investment projects.
    • [h=2]Poor monsoon:[/h]
      The Indian meteorological department has indicated that this year's monsoon may be weaker than normal. A poor monsoon could impact agricultural output and reduce rural income. This can further hit rural consumption affecting corporate earnings.
    • [h=2]Inflation:[/h]
      A weak monsoon also fuels inflation. This is because it hits the supply of food grains. High demand and low supply leads to an increase in prices. This leaves the Reserve Bank of India not enough room to cut interest rates. A high interest rate increases cost of borrowing for companies. This eats into profits.
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  6. Vemala

    Vemala Gold IL'ite

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    • Housewife’s Guide to Share Markets
    • 1. A Housewife’s Guide to Share Markets
    • 2. The New Workforce: Housewives • There is a new workforce that is gearing up for recognition - The tribe of the Housewives. • They are independent, talented and multitasking women who: - groom the new generation of achievers, - support the current generation of workers & - take care of the earlier generation of been-there- done-that-and-know-it-allers.
    • 3. • While these women are pretty adept at playing many roles, the one thing they yearn for is financial knowledge and its inherent independence. • Funnily enough, at the end of every month and in almost every household in India the exact same scene is played in the kitchens or living rooms - women balancing payments and making decisions about what to spend on every month. Natural Multi-Taskers
    • 4. • So why don’t women then also decide where to park the extra money and make it grow? • The truth is usually ignorance and fear relating the stock market business. • The stock market is scary but armed with knowledge, it can transform into a hefty kitty of surplus money that will enable you to achieve whatever you dream of, not just for yourself, but also for your home, children and spouse. Why They Don’t Invest?
    • 5. Let’s Understand ‘Stock Market’ • Like your home, the Stock Market is in itself a complete universe, replete with its own language, rules and players. • Like with our families, many times, it is easy to make sense of how the Market will behave while at times, it is so unpredictable that even the experts are left confused on what will happen next. • One thing is for certain though, that in the long run, the Market is the most lucrative and the most effective at posting higher returns on investment than any other traditional avenues for financial wealth.
    • 6. Let’s learn how to conquer this complex world of trading & stock markets step-wise! Still Not Confident?
    • 7. Step 1: Educate Yourself • As with any profession or skill, understanding the markets is where you need to begin. • Watch news channels while preparing lunch and swap magazines for market reports. • Read, understand, question, then trust yourself to take a call
    • 8. Step 2: Experience The Market • Take small steps and invest slowly, first for your own self, then slowly expanding to family and friends.
    • 9. Step 3: Master The Business • The markets are volatile but with practice you will understand how they work, what sets them off and what will pacify them. Use that knowledge to reap dividends.
    • 10. Step 4: Lose Temptation & Keep The Money • Curb that impatient streak and ignore those tempting tips from well wishers. • Build a circle of trust with advisors like your brokerage firm or even your spouse and take your calls with calculated caution and risk.
    • 11. Step 5: Get There & Keep Walking • Enjoy the highs and ride out the lows but keep on moving no matter what. • There may be times when your judgement fails but still keep your eye out for when you will hit the pot of gold under the rainbow!
    • 12. Happy Investing
    Source : Kotak sec
     
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  7. Vemala

    Vemala Gold IL'ite

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    [TABLE="width: 99%"]
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    [TD="width: 87%"][h=1]Resistance and support levels: What they mean[/h] If you tune in to a business news channel, you may hear stock market analysts talk of resistance and support levels for the Sensex or Nifty or individual stocks. A support level is where you could see the share price or the index gaining ground and a resistance level is where it could go the other way.


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    • Here are a few things to know:
    • [h=2]Support level:[/h]
      Prices fall when there is greater selling pressure than buying in the market. However, after prices fall by a certain amount, the stock becomes valuable as it is cheaply available. This price, below which the stock is unlike fall, is called the support level. The idea is that the market supports the stock from falling at level.
    • [h=2]Resistance level:[/h]
      A stock rallies because there is great demand to purchase it in anticipation of future profits. However, after a certain point of time, the share price shoots up so much that the stock starts looking costly. This is when, many traders sell to book profits. As a result, the stock stops gaining and starts to fall. This price level is called the resistance level.
    • [h=2]What if levels are breached?[/h]
      Often, we hear analysts use terms like a bear or bull market. The former means prices are falling in the market, while the later denotes a rise in prices. This is determined when the price either falls below the support level or rises above the resistant level. Once this happens, a new support/resistance level is created depending on the current market conditions. If the price exceeds the resistance level, then the old level acts as the new support level. Similarly, once the stock falls below a certain support level, the old level becomes the new resistance price.
    • [h=2]Why does this happen:[/h]
      The most active players in the market are traders, who look to make profits in the short term. For this reason, even in a very good market, there will be sellers. This causes the stock price to fall momentarily. The opposite also holds true. Therefore, prices of stock follow an up-trend for a small period, and then a down-trend. This continues until there is a new trigger in the market - a new event, change in the financial health of the underlying company, policy changes, corporate announcements, and so on. These may cause a support or resistance level to be breached.
    • [h=2]Importance of the levels:[/h]
      Technical analysts regularly identify support and resistance levels. These act as key levels for short-term investors, and help make trading decisions. They also help identify trends in the market. This is because prices keep fluctuating between the support and resistance levels until one of them is breached. This, then, indicates a change in the market trend, which will alert a smart investor of an opportunity to making profits or cut losses. Sometimes, round numbers are also considered as key price levels. Once a stock breaches this level, it may have a psychological effect on investor sentiment.
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  8. Vemala

    Vemala Gold IL'ite

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    What are the stocks which benefit if NAMO becomes PM .

    1. Adani group ..Already rose 15% from last 3 sessions.
    2. Gujarath Narmada , Welspun
    3. Arvind mills
    4. Nirma
    5. Gujarath gas
    6. Torrent power
    7. UPL and Atul Auto



    If YS Jagan comes to power (which is very unlikely) , Ramky infra, Aurobindo pharma, india cement and Nava bharath ventures will gain.

    Other stocks to look for short term gains are IDFC, Tata power, L&T , JP assoc and energy sectors.

    If Modi comes to power, DLF and unitech will be big loss...Square off 16th.

    Good luck. Have safe trading. Market will pluctutes +/-10% on 16th. Ready to loose 2000 pts or gain 2000pts...

    Thanks.
     
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  9. lucky2

    lucky2 Platinum IL'ite

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    how long does it take to open a dmat accnt.?
    whats the checklist required?
    anything like passport size photos and identity proofs?
     
  10. Rise

    Rise Platinum IL'ite

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    i also would like to get in this market... but very ignorant... now after reading posts here got some insight but still not able to decide
     
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