[manojas]

It works like this. Different people would have placed bids at different price points withing the band. Now when the issue is closed, they will decide the issue price by looking at the price (and greater) at which the entire stocks get subscribed.

Eg. Assume there are 100 stocks and the price band is 50-100 and the bids are like this

at 50 - 120 stocks
at 75 - 80 stocks
at 100 - 20 stocks

Now if the issue price is set to 75, then the entire stocks get subscribed . Now the people who bid at 100 also will get the allocation at 75 and people who bid at 50 gets no allocation

If there is enough subscription at the cut off (highest) price, then all the people who made price bids (lower than cut off) will not get any allocation.

For Coal India, where it is expected to have over subscription, I would recommend placing the bids at cut-off

[rkg]

Originally Posted by DCEite

Guys what is meant by "price band" of IPO ?

Coal india ipo has price band of 225-245 Rs.

ICICI Direct wants me to make three bids with different price and quantity. I have no clue.. please suggest !

Retail investor are allowed at bid at "cut off price".

Cut off price is the final price discovered in the bidding price at which shares are allotted.

If your bidding price does not match the final price arrived in the bidding process you will not be allowed any shares.

On the other hand if you bid at cut off price ( i.e; 245 in this case) you will be allotted shares at the final price and if there is any difference in price ( if final price is lower ) the balance will be refunded to you

For retail investors it is always better to bid at Cut off price

[dhuli]

Originally Posted by Altaf Petiwala

As far as recommendations by so called analysts is concerned, do take a look at he following link, that warned of the sensex falling to 12000.
Sensex may drop to 12K level: Shankar Sharma - The Economic Times

This interview is Feb 2010. Many of the predictions never came to pass, IMO. Isn't this Sharma who had a order against from SEBI last year? I will be counted among the happiest if the markets do correct so astoundingly!! I am not sure it will correct so much. The cues I followed are - most money is flowing into China, India, Brazil in vast amounts. Euro issues including PIGS debt seem to have been weathered with Germany being less vociferous about support. Until it happens we wont know if there is a double dip. So markets are moving in steam. But crash to 12000? Hmmm...

[Altaf Petiwala]

Originally Posted by dhuli

This interview is Feb 2010. Many of the predictions never came to pass, IMO. Isn't this Sharma who had a order against from SEBI last year? I will be counted among the happiest if the markets do correct so astoundingly!! I am not sure it will correct so much. The cues I followed are - most money is flowing into China, India, Brazil in vast amounts. Euro issues including PIGS debt seem to have been weathered with Germany being less vociferous about support. Until it happens we wont know if there is a double dip. So markets are moving in steam. But crash to 12000? Hmmm...

The markets can go anywhere they want, and defy fundamentals. When the markets are going up, they will discount the next 3 years earnings and when they go down, they will take into account the future defaults by many countries in their debts. So, its a case of extremes on both the sides.

My reference to the article was to show that even experts on CNBC cannot predict the markets. And to top it off, he now comes on channels and says " Continue to hold your longs "

What longs? hadnt he advised us to sell and run in feb?
I personally never try to predict where the markets will go, I just try to follow where they are currently going. Its easier on my small brain that way.

There is a saying " The markets can remain irrational for longer than you can remain solvent "

[BaCkSeAtDrIVeR]

Please refer to my post three days back. Today's hammering in morning, and the late rise shows just one thing - somebody is hammering the market to induce panic selling, and then buy. I may be wrong, I am no pundit. And access to market action is zilich.

Originally Posted by amitk26

I am totally at loss when it comes to technical analysis charts given by experts.s

Want ot learn technical analysis? Go learn astrology first. :-D

Where do you get the beta figures from? It is very difficult to find them, for me.

[quote]1. Are recommendations of the trade calls in public given by experts on sites such as moneycontrol.com , Icicidirect.com trustworthy ?[/quote

As trustworty as Bejan Daruwala's predictions on your next 7 days.

[quote2. How personalized trade recommendations differ from those in the public domain [/quote

Do they differ at all?? Why should they offer you personalised recommendations when they can always offer you portfolio management services?

On a serious note, I use some rudimentary technical analysis to time the market. Use fundamentals to short list stocks and keep track of them.

Use technical analysis - (moving average prices, volume information, opening and closing prices over several days, etc) to guage market's mood on a particular stock.

Please do not ask me how to do it. All this info is available on several sites. Just write them down on a day to day basis for a few stocks, and see how the prices move. You will get an idea of how things work.

Remember that technical analysis can be very misleading - high volumes may mean people buying up the stocks, in mass. It can also mean people selling off stocks at whatever they can. It also could mean speculative activity.


Edit - as an aside, P/E ratio used to be a tool to judge a stock based on its past financials. Surprising how frequently people recommend a stock based on its future P/E ratio. I always take such advice with a pinch of salt. Moral - even advice based on fundamentals can be flawed.

[Altaf Petiwala]

Volume is an eyewash. What is the meaning of the phrase, " The market went up on high volumes " ?????? For every buyer, there was a seller right? so?

There are a few sites that offer charts for free , and some simple indicators too, but let me set the record straight. Common normal indicators will whipsaw you to financial death in sideways movement.

As far as technical analysis is concerned, its the only thing that works in the markets.
When the market went down in the last few days, did the companies loose all their contracts and lay off the workers? And then re hire them by 2 pm today? The fundamentals were the same in the last 3 days, and other than charts, there was no fundamental way anyone could have taken advantage of this fall. Mind you people, I said take advantage of the fall, not predict the fall. Prediction is for astrologers, taking advantage of movement is for people who know how to keep in flow with the markets.

It pays to learn technicals is all I am trying to make a point of. There are many resources on the net and it takes roughly a year to be able to put your money on the line, but its worth the work you put in, many many times over.

[JMaruru]

Originally Posted by Altaf Petiwala

There are a few sites that offer charts for free , and some simple indicators too, but let me set the record straight. Common normal indicators will whipsaw you to financial death in sideways movement.

Could you please tell me about some of these sites?

Originally Posted by Altaf Petiwala

As far as technical analysis is concerned, its the only thing that works in the markets. When the market went down in the last few days, did the companies loose all their contracts and lay off the workers? And then re hire them by 2 pm today? The fundamentals were the same in the last 3 days, and other than charts, there was no fundamental way anyone could have taken advantage of this fall. Mind you people, I said take advantage of the fall, not predict the fall. Prediction is for astrologers, taking advantage of movement is for people who know how to keep in flow with the markets.

It pays to learn technicals is all I am trying to make a point of. There are many resources on the net and it takes roughly a year to be able to put your money on the line, but its worth the work you put in, many many times over.

I feel it is better to shortlist the stocks based on fundamentals and buy/sell them based on technicals.

[Altaf Petiwala]

Originally Posted by JMaruru

Could you please tell me about some of these sites?



I feel it is better to shortlist the stocks based on fundamentals and buy/sell them based on technicals.

I am not in a position to comment on that, as I do not trade stocks, I only trade Nifty Futures.

Moneycontrol.com is one site where you can get charts of companies for free. Though its difficult not to be influenced by all the other useless stuff on that site.

[JMaruru]

Originally Posted by Altaf Petiwala

Moneycontrol.com is one site where you can get charts of companies for free. Though its difficult not to be influenced by all the other useless stuff on that site.

+1. But i feel the useless stuff overwhelms the useful stuff here. Is there any other better alternatives to moneycontrol for having one's investment portfolio? Simple, clean and neat interface are the features i would be interested in.

[amitk26]

Thanks for your response.. the brokerage which approached me also offered portfolio service but I am not interested in that.
@backseatdriver beta figure is available from Icicidirect.
Also when I said technical analysis I don't just mean moving averages, beta, alpha but kind of predection which is done using mathematical models that is seeing shape of current curve extrapolating how curve will progress, incidentally one of my college friend and ex co-worker who is engineer by education is now employed by a company to develop models.
@jmuraru moneycontrol charts are quite good and site is faster then icicidirect for drawing charts.

I find messageboards also useful,
One thing I hate is expert advice it is suffficent to male you bankrupt

[dhuli]

Originally Posted by BaCkSeAtDrIVeR

Where do you get the beta figures from? It is very difficult to find them, for me.

For company beta values you can try this link
NSE - Indices - Beta Values

Hope this helps.

[Altaf Petiwala]

The companies that have proprietary trading desks aim for returns in the 10 to 15 % per annum. Though they move huge money.

[BaCkSeAtDrIVeR]

Originally Posted by JMaruru

I feel it is better to shortlist the stocks based on fundamentals and buy/sell them based on technicals.

Fully agree there.

Originally Posted by Altaf Petiwala

Common normal indicators will whipsaw you to financial death in sideways movement.

A question I always wanted to ask - what is "sideways movement"?

As far as technical analysis is concerned, its the only thing that works in the markets.
When the market went down in the last few days, did the companies loose all their contracts and lay off the workers? And then re hire them by 2 pm today? The fundamentals were the same in the last 3 days, and other than charts, there was no fundamental way anyone could have taken advantage of this fall. Mind you people, I said take advantage of the fall, not predict the fall. Prediction is for astrologers, taking advantage of movement is for people who know how to keep in flow with the markets

Disagree with the "only thing that works part only.

It pays to learn technicals is all I am trying to make a point of. There are many resources on the net and it takes roughly a year to be able to put your money on the line, but its worth the work you put in, many many times over.

Agree here.

Originally Posted by JMaruru

+1. But i feel the useless stuff overwhelms the useful stuff here. Is there any other better alternatives to moneycontrol for having one's investment portfolio? Simple, clean and neat interface are the features i would be interested in.

in.finance.yahoo.com/

Look at the "portfolio" link.


finance.google.com too has a portfolio service, but it is very rough and rudimentary.

in.reuters.com too has a portfolio service, but not used it much.

[snaronikar]

I have a issue here...Need your inputs.

I have applied shares of Canara Bank during the IPO listing (around 4-5 years back). Unfortunately, I had not received the physical share certificate from Karvy Computershare (Unit: Canara Bank) as they are the brokers for this. I'am receiving the dividends every year. The latest being in July-10. I now want to transfer the shares to my online demat account. I had called up Karvy (Bangalore and Hyderabad) many times and they are not responding well. I even have sent the mails to their cutomer care services. But again no response.

Can anybody know the right person and the contact ph no so that I can get the physical shares certificate and can transfer the shares back to my demat account.

[rkg]

Originally Posted by snaronikar

I have a issue here...Need your inputs.

I have applied shares of Canara Bank during the IPO listing (around 4-5 years back). Unfortunately, I had not received the physical share certificate from Karvy Computershare (Unit: Canara Bank) as they are the brokers for this. I'am receiving the dividends every year. The latest being in July-10. I now want to transfer the shares to my online demat account. I had called up Karvy (Bangalore and Hyderabad) many times and they are not responding well. I even have sent the mails to their cutomer care services. But again no response.

Can anybody know the right person and the contact ph no so that I can get the physical shares certificate and can transfer the shares back to my demat account.

If you have all the details like application number, dividend warrant with number of shares etc, write to SEBI . Karvy does not listen to customers till it gets a rap from SEBI. it happened to me also long back in 2003-04. but you have waited too long for this . You should have done this immediately