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View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 219 32.02%
26 - 50% -- I have a few stocks. 302 44.15%
51 - 75% -- I'm an active trader. 113 16.52%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.31%
Voters: 684. You may not vote on this poll

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Old 9th August 2009, 10:33   #1246
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Actually I noticed that even though the market went down by 900 points there was not much of a difference in the dollar rate. Moreover the rate I feel works both ways. Things that shape the Indian Markets and then the same day in the US markets and world over.
Eg. By Friday it was something like 47.89. Then when the US markets woke up, at the end of their day it was 47.75 something.
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Old 9th August 2009, 12:14   #1247
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Originally Posted by prince_pervez View Post
So do we see the dollar value dropping during this time ? Indian markets are going downwards, already 900 points down since 16000 last week.
I believe this rally was due to the Corporate result. I think market will go down some more in near future ... As per my analysis things are not yet settled. In coming day it might go worst.
What ever avoid listening to this Bogus expertise from diff financial channel.
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Old 9th August 2009, 12:44   #1248
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Quote:
Originally Posted by penpavan View Post
You mean have both PUT and CALL running?

Anyways, good to know you vsh. 8 years is a long time in markets!
i know, it really takes some time to understand the rule "DONT PREDICT THE MARKET". But once you get the point behind it, you become a better trader. now coming to your question, you dont need to have both PUT and CALL, just be ready with some STRONG stocks to go long if market goes up and weak stocks to go short if it goes down. i prepare my list based on CHARTS. Actually my whole trading system is based on charts.
may i know how many years it has been since you entered the market?
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Old 9th August 2009, 14:29   #1249
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i know, it really takes some time to understand the rule "DONT PREDICT THE MARKET". But once you get the point behind it, you become a better trader. now coming to your question, you dont need to have both PUT and CALL, just be ready with some STRONG stocks to go long if market goes up and weak stocks to go short if it goes down. i prepare my list based on CHARTS. Actually my whole trading system is based on charts.
may i know how many years it has been since you entered the market?
It has not been as long. 4 years maybe? Used to be a dormant buyer till 2007 and then on trading whenever I get time. I still consider myself amateur. But yes, I can fairly understand and practice all the jargon associated with stock market!
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Old 12th August 2009, 22:48   #1250
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Shriram Transport Finance is offering Non Convertible Debentures with various interest rates per annum (between 11 & 11.5% annual yield). Is this a good option to invest?
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Old 13th August 2009, 11:22   #1251
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Shriram Transport Finance is offering Non Convertible Debentures with various interest rates per annum (between 11 & 11.5% annual yield). Is this a good option to invest?
Hi Team,

Any feedback / inputs on this query?
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Old 14th August 2009, 12:29   #1252
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Default Nifty Call Options

Hello,

This is my first post to this thread. I was wondering if someone can explain the following:

Buy Nifty Call Option 4700 between Rs. 70 and Rs. 60 for a target of Rs. 110 in 5 days - stop loss of Rs. 55 on closing basis.

This is my understanding:
You can buy a bet on the Nifty index reaching 4700 - the current premium to buy this would be 60/70 Rs. - a premium because there is probably a perception that it is going to hit 4700 bullish rather than bearish. There is a further assumption that bullishness will harden and the premium will rise further to 110 - so you could sell at 110 and make a profit of 40 odd Rs.

Should the assumption be wrong - sell if the premium comes down to 55.

Is my understanding correct? What do you mean by "closing basis"?

Thanks
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Old 14th August 2009, 14:40   #1253
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Quote:
Originally Posted by anand_saraf View Post
Hello,

This is my first post to this thread. I was wondering if someone can explain the following:

Buy Nifty Call Option 4700 between Rs. 70 and Rs. 60 for a target of Rs. 110 in 5 days - stop loss of Rs. 55 on closing basis.

This is my understanding:
You can buy a bet on the Nifty index reaching 4700 - the current premium to buy this would be 60/70 Rs. - a premium because there is probably a perception that it is going to hit 4700 bullish rather than bearish. There is a further assumption that bullishness will harden and the premium will rise further to 110 - so you could sell at 110 and make a profit of 40 odd Rs.

Should the assumption be wrong - sell if the premium comes down to 55.

Is my understanding correct? What do you mean by "closing basis"?

Thanks
Hi Anand,

I see that you get tips from HDFC-sec. Yes, your understanding is substantially correct.

55 on closing basis means if the price at the end of the day is less than 55, you sell the option the next day. This 55 is called a stop loss. Stop loss can be either on 'end of day basis' or 'intra-day'. Intra day means you sell ASAP if the price touches or goes below the stop loss at any time. In case you are going short a stop loss is triggered if the price touches or goes above the stop loss.

Cheers,
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Old 14th August 2009, 16:12   #1254
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Hi Ravvee,

Yes, very much HDFC... :-)

Thanks for the info - I haven't really traded F&O before - just delivery based trades in the past. Do you buy and sell F&O in the same way as regular trades - other than the usual advice of "stay away from F&O" - any suggestions on a good approach for a beginner?
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Old 14th August 2009, 19:27   #1255
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Hi,

I'm a newbie in this field, I would like to invest in mutual funds of around 6K/month, planning to invest 2K in 3 MFs. Can you guys suggest me which MFs should i opt for(yielding good results) as i would like to invest for around 10 years from now.

Thanks,
Ramki.

Last edited by ramki067 : 14th August 2009 at 19:29.
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Old 14th August 2009, 20:57   #1256
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Originally Posted by prabhusati View Post
Hi Team,

Any feedback / inputs on this query?

From the individual investor's POV, if it is unsecured, it is no different from a company deposit. I think company deposits have a higher interest.
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Old 14th August 2009, 23:44   #1257
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Quote:
Originally Posted by anand_saraf View Post
Hi Ravvee,

Yes, very much HDFC... :-)

Thanks for the info - I haven't really traded F&O before - just delivery based trades in the past. Do you buy and sell F&O in the same way as regular trades - other than the usual advice of "stay away from F&O" - any suggestions on a good approach for a beginner?
On HDFC-sec online trading platform (no I do not work for them but am a customer and use it regularly), you can buy and sell shares in the regular settlement (CnC segment) which is investment in long term, shares you buy are credited to your demat account and debited from your demat account when you sell.

On the 'margin' trading you can buy shares (long) or sell them (shorting) intra-day i.e. all positions are squared off before 3.00 p.m. In the margin segment you can also buy &/or sell futures and options.

Futures are contracts for an underlying share (or index value) on a future date at a present price which may be at a discount or premium to the present value. For futures there is a margin deposited with the exchange via. the broker to cover this price and this varies with the reigning premium / discount so margin can be increased or decreased each day if the underlying moves.

Options are like shares of shares - a call option is a contract to buy the underlying share (or index value) at a fixed price on a future date. This contract is bought by paying a price much like a share price. For eg. you buy 50 Nifty 4700 Aug CE for Rs.70/-. This means you are buying 50 units of Nifty at (Rs.) 4700 for Rs. 70/- if the Nifty goes beyond 4700, say 4800 you will get the difference i.e. 4800-4700 = 100. If the Nifty stays below 4700 your option is worthless on the designated day i.e. the last Thursday of Aug 2009 and you would lose the Rs.70/- paid by you.

If you buy a put option say 50 Nifty 4700 Aug PE at Rs.70/-. If the Nifty goes below 4700, say to 4600 you get 4700 - 4600 = 100. If the Nifty goes above 4700 your Put option becomes worthless.

The price of put and call options varies throughout the day and from day to day depending on the current value of the underlying. So if you buy a 4700 call option for Rs.70/- when the present value is 4500
and the underlying value goes up to 4600, you might get Rs. 100/- so you sell your call option and make a profit of Rs.30/- likewise if you buy a 4700/- put option for Rs. 70/- when the underlying is at 4600 and the index drops to 4500 the price of the puts goes up and you make a profit.

Futures and options are not credited or debited to your demat account but are shown seperately under 'outstanding position' in history tab.

Options trading is better as the losses are limited to the premium or price you pay while returns can be high. In futures the losses and profits can both be huge and theoritically unlimited. Remember though that both Options and Futures have a short life and expire on the stated date which may be at the end of the current month, end of the next month or the end of the month after the next. Prices of options are not always linear or proportional to the value of the underlying.

If you intend to start trading in F&O segment, first start maintaining a shadow portfolio in both cash segment (regular shares) as well as options. See how well you are able to predict and time market movements. Only after you fine tune your skills by practicing for a few months should you get into options trading. Options trading is not for the faint hearted. Be prepared for losses, that too huge losses. Put in only as much money as you can comfortably afford to lose. After you master options you can consider futures trading as IMHO that is for real professionals.

The right way of doing F&O trading is to use the options and futures as a hedge against your cash scrips. i.e. if you buy X shares expecting them to go up but want to be safe, you buy put options of X shares so that if the price goes down, your loss is minimised.



Quote:
Originally Posted by ramki067 View Post
Hi,

I'm a newbie in this field, I would like to invest in mutual funds of around 6K/month, planning to invest 2K in 3 MFs. Can you guys suggest me which MFs should i opt for(yielding good results) as i would like to invest for around 10 years from now.

Thanks,
Ramki.
There are as many kinds of Mutual funds as there are stars in the sky. If you have an opinion on the market or economy invest in MFs that seem to reflect your opinion. Do not go by the mumbo jumbo they give out in the brochures, look at the kind of shares the MF owns, if you like their portfolio buy the MF units. For a 10 year SIP most people would recommend a mix of large cap, mid cap and debt. talk to your bankers they are trained to do this investment advice and most of them are pretty good at it. Remember that past performance is not an indication of future returns.


Quote:
Originally Posted by prabhusati View Post
Hi Team,

Any feedback / inputs on this query?
Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
From the individual investor's POV, if it is unsecured, it is no different from a company deposit. I think company deposits have a higher interest.
Debentures are normally secured by a lien on the company's assets. NCD would stand for Non-convertible debentures i.e. debentures that will not be converted into equity shares. Debentures are safer than company deposits as the holder of the debenture is a secured creditor while a depositor is an unsecured creditor.

Cheers,
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Old 15th August 2009, 14:49   #1258
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For SIP 6000/- per month I recommand Reliance Vision Fund, ICICI Infrastructure fund, Fidelity Equity Fund, any of SBI Magnum fund.

In last 3 years I have made good profits in SIP while I lost huge money in direct share trading.

Right now according to me Market might find intermediate bottom at Nifty 4200 levels in 2 weeks time before it starts journey to 5000 which is possible in 3 months. Expect very strong ressistance around 4650 and 4730. So in next 3 months everyone will get chance to enter (4300 levels) and exit (5000 levels)

Ravi.
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Old 16th August 2009, 13:04   #1259
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Quote:
Originally Posted by ramki067 View Post
Hi,

I'm a newbie in this field, I would like to invest in mutual funds of around 6K/month, planning to invest 2K in 3 MFs. Can you guys suggest me which MFs should i opt for(yielding good results) as i would like to invest for around 10 years from now.

Thanks,
Ramki.
hi
i am in the market since 8 years and am in all categories ie in mf, intraday trading and f&o. i think it would be better if you invest 3000 in mf and rest in stocks directly. the returns from investing in stocks are far better than mf, provided you have to hold the stock for really long term. many lose money in trading their investment portfolio in hope of buying them at declines. just keep an eye on overall economy, find some fundamentally sound stocks with good management, and you are in. dont look at prices on daily basis. if you want more insights please mail me.
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Old 17th August 2009, 11:57   #1260
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I feel August is month of consolidation (4300-4700) and by September end Market would fly high and by year end come out from recession. So my suggestion is to keep investing in August month on every good correction.

Ravi.
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