March 29, 2011
Commerce department in USA released their reports which are indicating the economical situation is improving with the time. This is the eighth month in the row when consumer spending has gone up. But due to increased food and energy cost, most part of that money went into covering them. Spending rose to 0.3 per cent after adjusting for the inflation. Another report suggested the sale in housing is picking up.
March 22, 2011
Technical Analysis refer to the process of analyzing a stock based upon its historical price movement. They are studied on a chart and various indicators are used in this study to judge the correct stock and its entry and exit points. Some of the popular indicators are MACD, Bollinger band etc. Technical Analyst believe that the markets or stock moves in a particular cycle and they pass through the same stages and cycles for numerous time. These cycles and stages are influenced by the fear,greed and emotional factor of the investors or traders.
March 22, 2011
Goods and Services Tax bill may miss the deadline of the 2012 implementation. It was introduced in the parliament on Tuesday but due to parliament adjournment, there wasn’t any discussion on it. It is one of the most important and ambitious project of the UPA in its second term. The bill is to amend the constitution and introduce a nationwide Goods and Services Tax. It will reduce the cost and boost the business in the country.
March 17, 2011
Reserve Bank of India has come up with quarterly monetary policy review. It has raised Repo and Reverse Repo rate by 25 basis points. Hike is not enough to trigger a immediate rake hikes by banks but what it said in the report is a matter of concern. Monthly inflation for the month of February have come at 8.30 per cent which is 50 basis points higher than expectations.
March 16, 2011
The Organization for Economic cooperation and development indicates a slow down for Indian economy in the coming period. The January composite leading indicator (CLI) grew at the whole and indicated a positive scenario for most of the Europe and the developed world. Italy is the only major economy in Europe which can witness down turn.
March 15, 2011
As news of nuclear radiation leakage in Japan is spreading across the globe, concerns related to socio-economical status of the country are also growing. Nuclear reactors in Japan were damaged by the massive earthquake and Tsunami which has hit the country last week. Initially picture was not clear about the damage which it has caused to the Japan but as now picture is getting clearer now; apprehensions are rising across the globe.
March 14, 2011
Stock markets ended on a high note after crude prices eased up and fallen to 100 dollars per barrel. BSE Sensex closed at 18439.48 up by 265.39 points and NSE Nifty closed at 5531.50 up by 86.05 points. Rise in stock market came as a breather for the investors who were having a tough time. Rally was mainly led and contributed by heavyweights like Reliance Industries, HDFC, TATA steel, Infosys and ICICI Bank.
March 11, 2011
IIP number for the month of January 2011 has been released. They stand at 3.5 per cent against 1.6 per cent of the December. They are better than expected. Manufacturing output which constitutes about 80 per cent to the total IIP data is increased to 3.3 per cent. Indian export has also increased to $20.6 billion as per data released by the government.
March 7, 2011
Middle East has been under the grip of turmoil for some time and here in India, country has been under the grip of political scams and scandals. Unrest in Middle East is triggering the crude price spurts and political instability in India is triggering economical instability.
March 6, 2011
India is set to join the elite club of economies in the world. Indian economy would grow to $2 trillion. There are only seven other countries in the world which are having economy over $2 trillion and they are USA, Japan, Germany, China, UK, France and Italy. As per the recent budget, indian economy would cross $2 trillion by March 2012. As per the budget, Indian economy is expected to grow at 8.75 per cent to 9.5 per cent. India is also expected to outpace China in being the world’s fastest growing nation.
So what does that mean for stock market? Indian growth story is result of its population and their consumption. In the last few years, Indian economy has been growing consistently around a rate of 8 per cent. It initially started with growth in the urban economical centre but gradually it expanded to the smaller cities. With the increased penetration, more and more people are getting benefit and consumption has been growing up. Most of the sectors are beneficiaries of this growth.
Their earnings are consistently increasing. This lead to the industrial development and creation of jobs for educated class. Now this growth story is further expanding to rural India. Though, penetration is still low and the expansion pace is not very fast but it doesn’t provide a huge space for the growth in future. Better economy will bring more people under the umbrella of economical growth and this will take the company’s earning.
It is very important to figure out the sectors which are getting most of it. For example, auto, pharmaceutical and health care industry. They have growing rapidly and auto companies are consistely posting greater sales numbers. They are not able to satisfy the demand and there are long waiting period for most of the successful models. This is a mere example of how a sector can gain from economical boom.
And this is the case with most of the sector which are directly related to the mass consumption by the people. It should not be hard enough to figure out the good companies in these sectors and invest in them.
March 5, 2011
Bollinger Bands
March 5, 2011
ADX was developed by Welles Wilder.The ADX is a indicator which indicates whether market is trending or moving in a range. ADX tell about a market’s strength. This can help in avoiding weak market and staying in market for longer when it is trending to enhance gains. It doesn’t tells anything about market prices. It just tells about the strength of the current trend. It indicates the directional strength rather than it strength.
March 4, 2011
If you are looking to make real good money in stock market then key is to learn the art yourself.