Commodity Trading is the act of buying and selling commodities futures contracts on commodities such as crude oil, gold, silver, platinum, palladium, copper, corn, soybean and more.
A futures contract is a contractual agreement where one party agrees to buy a specified quantity of an asset at a specified price (the futures price) on a specified date (the expiration date).
The opposite side of the contract is sold by another party, who agrees to sell that same quantity at the same price and date.
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1) Moving Average for Trading Commodities
Moving average in commodity trading is one of the trendiest strategies for trading. Investors generally use moving averages to find, analyze the market trend along with the support and resistance level.
Supply and Demand Rule
Supply and demand play an important role in commodity trading. If the demand for any commodity increase, the value of that commodity will definitely increase which in turn increase its price in the commodity market.
But commodity businesses work completely differently. In any individual commodity industry, the product is largely the same. Wheat is wheat, cattle are cattle.
Because of this, producers are all price-takers and in normal times aren't able to dictate prices.
Many commodity trading industries are prime examples of what's called perfectly competitive industries, with many buyers demanding an undifferentiated product and suppliers unable to offer differentiated products.
So what causes prices to fluctuate are imbalances in supply and demand, which may occur for many reasons.
Prices may spike if demand rises or supply becomes constrained.
2) Lowest Cost Wins in Commodities
In commodities, companies are price-takers and compete on price alone. In general, the companies that win here produce at the lowest cost—they generate the most profit per unit and can maintain that profit even if commodity trading prices drop.
The most precarious companies are those that produce at high costs. If prices fall, they won’t be able to produce at a profit and will go out of business if the market doesn’t turn around soon enough.
Of course, if you’re trading the price of the commodity itself, you may be uncertain about any individual producer. However, if supply goes offline, it could help push prices higher.
3) Price spikes are often short-lived
Commodity prices are very volatile. This can be bad news for the companies that produce these commodities: they will sometimes see short-term price spikes or declines that make it impossible to remain profitable.
But this volatility is not permanent, and it is part of the way commodity markets work.
The over-corrections that occur as a result of price volatility are what keep commodity supply and demand in line with one another.
If producers don't respond rapidly to changes in prices, then supply will not increase enough to meet demand, and prices will rise too high for consumers.
Similarly, if producers react too quickly by flooding the market with products, then there will be far more supply than consumers need, which pushes prices down so low that production cannot be cost-effective.
So the swings in commodity prices are often short-lived and represent a "shaking out" of marginal suppliers, those without the capacity or willingness to produce at an efficient rate.
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4) Ways to Invest in Commodities
There are many ways you can invest in commodities. Here are five of the most common:
So far we have learned about commodities and strategies, and now we will discuss how to invest in commodities.
The foreign exchange market, also known as currency trading, is the largest financial market globally.
It's more significant than the stock and bond markets combined, making it a very attractive market for investors.
Currency trading has a lot of appeal to beginning investors who are open to learning about the inner workings of various financial markets.
Forex (short for "foreign exchange") is a market where traders from all over the world buy and sell currencies, like dollars, euros, yen and Swiss francs.
Because currency prices fluctuate so much every day, there are many opportunities for traders to make a profit by buying and selling currencies on the foreign exchange market.
Whether you're a beginner at currency trading or have had an account for a long time, it can be difficult to know what you need to do to make the most of your account.
While there are many different strategies for currency traders, not all are good for beginners.
If you're new to forex trading, you may find that there are several things about the market that you may not be familiar with.
In this blog, we are going to discuss the risk factors and strategies that will help you to invest in Foreign exchange market trading.
However, it requires certain skills and expertise to be able to do it well. Contact our Experts for more information about currency/forex trading - 0120 4400700
Foreign Exchange Risk is a risk involved in foreign exchange due to unexpected changes in the exchange rate. There are three types of Risk engaged in Forex trading, which is as follows:
Transaction Risk in Currency Trading:
Transaction risk arises due to unexpected exchange rates between two currencies. This type of Risk affects both importers and exporters doing international business.
For example, a company in the United States exporting goods to another country may quote prices for its product based on the current exchange rate between that country's currency and the U.S. dollar.
Suppose the U.S. dollar depreciates against that other country's currency before settlement. In that case, the company will receive less money than it had hoped for when it set its price.
As a result, its profit margin may suffer or become a loss if it has not planned accordingly.
Similarly, an importer who has agreed to pay in U.S. dollars for goods coming from another country will find itself paying more than expected if there is an appreciation of the other country's currency about the U.S. dollar before payment and settlement.
Learn More About: 6 Things to Keep in Mind About Currency Trading
Economic/Operating Risk in Currency Trading:
Economic/Operating risks arise due to the uncertainty in foreign economies that can affect all MNCs doing business in those countries. Thus, all MNCs operating globally face this kind of operational Risk.
Unemployment: a high unemployment rate generally means fewer people have jobs to spend money on goods and services. People with jobs will also be less likely to take risks, like starting a new business or buying a house.
Inflation: this is the general increase in prices and a fall in the purchasing value of money.
High inflation can deter investment because it reduces the likelihood of future profits, so businesses may be less willing to hire new employees or invest in new machinery.
Interest Rates: Higher interest rates make it more expensive for individuals and businesses to borrow money, so consumer spending and business investment decline.
Exchange Rate Fluctuations are changes in the value of one currency against another.
If the euro strengthens against the U.S. dollar, for example, then imported European goods will become more expensive for U.S. consumers than domestically produced ones, meaning domestic producers may lose sales.
Translation risk arises due to unexpected exchange rates between two currencies.
This type of risk is faced by all MNCs with subsidiaries located in different countries and denominated their accounts in a different currency than their home country's currency.
For example, a U.S.-based company has subsidiaries in China and Hong Kong. The subsidiaries' accounts are denominated in Chinese Yuan (CNY) and Hong Kong Dollar (HKD).
When this company prepares financial statements, it will need to convert the subsidiaries' books into American Dollars (USD), the home currency.
The translation process involves taking the subsidiaries' books' assets, liabilities, revenues, and expenses into another currency.
These converted values are then used to prepare financial statements for reporting purposes.
Translation risk is similar to transaction risk as both arise due to exposure to foreign currencies.
However, translation risk is also known as accounting risk because it relates to how financial statements are prepared and reported for internal and external users.
Translation exposure is an important consideration for businesses seeking new opportunities in emerging markets where currency movements can be volatile or unpredictable.
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Some of the most popular Forex trading strategies include:
Scalping is a popular trading technique in forex trading. It involves trading currencies in real time, which means that positions are held for very short periods.
In scalping trading, a trader usually opens and liquidates a position within minutes or seconds of each other. The traders aim to make small profits by taking advantage of the bid-ask spread.
Scalping is one of the more popular trading styles because it allows for potentially high risk-reward payouts, and because trades happen very quickly, it can be an exciting way to trade.
Day Trading Strategy for Currency Trading:
Day trading is a way to play the markets to make a profit. For example, if you're buying U.S. treasury bonds (T-bonds), you can buy them at a lower price and then sell them at a higher one.
Many people who trade forex day-to-day are doing it for fun. Others do it to take advantage of price movements in the market. Either way, it's an exciting way to make money.
The type of forex trading strategy you choose depends on how much time you have.
There are very few suitable strategies for beginners because they require extensive research and experience to evaluate market movements accurately.
Trend Trading Strategy in Currency Trading:
Trend trading is one of the most popular and common forex trading strategies.
It involves identifying an upward or downward trend in a currency price movement and choosing trade entry and exit points to position the currency's price within the trend and the trend's relative strength.
Uptrends consist of higher highs and higher lows, while downtrends have lower highs and lower lows.
Identifying a trend depends on the time frame you are looking at. Short-term traders may look at shorter time frames, such as five minutes, while long-term traders may look at four-hour or daily charts with candlesticks.
The strongest trends have both price and momentum moving in the same direction.
Momentum is created when a trader decides to place an order to buy or sell, which adds to market activity and generates more momentum.
Swing Trading Strategy in Currency Trading:
Swing trading is a concept in financial markets that tries to take advantage of short-term waves (or swings) in asset prices.
The trader attempts to benefit from small moves in the market rather than larger gains seen in trend trading or day trading.
Swing trading attempts to capture gains in an asset over a few days to several weeks.
Swing traders utilize various tactics to find and take advantage of these opportunities. By the nature of the strategy, swing traders often hold an asset through many days, weeks, and even months before closing it out for a profit.
Swing traders try to see the big picture without constantly monitoring their computer screens.
The position trading strategy is one of the most widely used strategies in the foreign exchange market.
It involves holding a currency pair over a long time, often weeks or months, instead of just minutes or hours.
The idea is to focus on the underlying trend in the market rather than short-term fluctuations.
Position traders are usually most interested in fundamental factors that may affect currency values.
They look for large moves that can last for weeks or months, and they tend to be less concerned about small day-to-day price fluctuations.
Position traders may also use technical analysis techniques such as trend lines and moving averages to help them determine when to take positions in currencies. Still, their main focus is on fundamental factors.
Our overall conclusion is Forex trading is the best way to go if you are looking for a Good Return on Your Investments. Once you get the hang of it, it can be simple, profitable, and fun.
कच्चे तेल की कीमतों में ऊपरी स्तरों से साप्ताहिक गिरावट दर्ज की गई है। क्योंकि ईरान से बाजार में अतिरिक्त आपूर्ति की संभावना ने यूक्रेन पर रूसी आक्रमण से उपजी संभावित आपूर्ति व्यवधान की आशंकाओं को कम कर दिया है।
ब्रेंट और अमेरिकी कच्चे तेल का वायदा पिछले सोमवार को सितंबर 2014 के बाद से अपने उच्चतम स्तर पर पहुंच गए, लेकिन विश्व शक्तियों के साथ ईरान के 2015 के परमाणु समझौते को लागू करने के लिए समझौते की रिपोर्ट के बीच, नौ सप्ताह में अपनी पहली साप्ताहिक गिरावट दर्ज की है। समझौते में उन कदमों की रूपरेखा है जो अंततः तेल प्रतिबंधों पर छूट देने की ओर ले जाएंगे।
इससे बाजार में प्रति दिन लगभग एक मिलियन बैरल कच्चा तेल वापस आ जाएगा, लेकिन इसका समय स्पष्ट नहीं है। अधिक ईरानी तेल बाज़ार में आने की संभावना के बावजूद , निकट भविष्य में कीमतों में अधिक गिरावट की उम्मीद तो नहीं है, क्योकि पेट्रोलियम निर्यातक देशों के संगठन (ओपेक) और सहयोगी दल, अपने उत्पादन लक्ष्यों को पूरा करने में असमर्थ रहे हैं। हवाई यात्रा और सड़क यातायात के रूप में तेल की मांग में भी सुधार है, लेकिन रूस और यूक्रेन के बीच तनाव बढ़ने पर कीमते 100 डॉलर के ऊपर भी जा सकती है।
अमेरिका ईरान में परमाणु सौदे पर हो रही बातचीत में अच्छी प्रगति रही है और इससे एमसीएक्स मार्च वायदा कच्चे तेल में बिकवाली का दबाव इस सप्ताह भी रहने की सम्भावना है। कच्चे तेल में 6400 रुपये के निचले स्तरों पर सपोर्ट है और 6800 रुपये पर इसका प्रतिरोध है।
Mutual fund houses are increasingly coming up with new fund offer (NFO) to attract stock market trading investors. In the last 5-6 months, we have seen multiple NFOs from mutual fund companies.
Mutual funds have become more popular with retail investors in the recent past, following their participation in the collections of non-fund operational (NFO) income by the mutual fund houses.
New Fund Offers (NFOs) are launching new mutual fund schemes.
Mutual fund houses keep coming up with new products, especially when there is an increased inflow into the equity markets.
In other words, New Fund Offer (NFOs) are mainly launched when the markets have shown good returns in the last six months to 1 year, and they rarely come in bear markets.
In the first quarter of March 2020, hardly any new financial instruments were issued, while equity markets were down more than 25% over the month.
If you want to invest in an NFO, you need to purchase units during its initial offering period.
After the initial offering period ends, you can buy/sell units on any business day from the mutual fund house that manages the scheme.
The investors may purchase the mutual fund scheme units during the pre-defined period and subscribe to the NFO at an offer price, which is usually fixed at ₹10.
Once the tenure expires, investors can purchase the fund units at the specified price.
NFO subscribers, overall, have been able to generate better gains post-listing.
Because in the case of an NFO, there are no historical data or performance metrics available for analysis by investors.
They have to rely on data about similar schemes offered by the same AMC or trust houses offering similar schemes.
Open-ended schemes are much more popular than NFOs as they allow investors to enter and exit at any point in time and trade their units on stock exchanges like any other equity share.
NFOs can be invested through SIP (systematic investment plan) or a lump sum amount.
It offers convenience and tax benefits through SIPs (under section 80C).
Investors can also choose between dividend and growth plans depending on their requirements and risk appetite.
Only a limited number of new funds are open to the public, so if you have any interest in getting one, we would suggest you apply now.
Investors must be aware that various new schemes are launched every year with a slight difference in investment objective than the existing schemes.
It would help if you did not fall prey to such schemes. Such schemes are known as old wine in new bottles, introduced with a slight change in name or investment objective to attract investors.
Every mutual fund scheme has a specific risk factor associated with it.
Investors should understand their risk appetite and then invest in mutual funds accordingly.
If they can’t understand whether the scheme is suitable for them or not, they must seek help from a financial advisor or SEBI-registered investment advisor.
The cost of an NFO will be high due to all expenses related to marketing and advertising.
The price is high because the AMC will also try to make money from these expenses rather than only from managing an investor’s portfolio assets.
All fund houses have different risk and return profiles. Investors should check their track record of the fund house by looking at the past performance of its schemes.
If a fund house has performed well in the equity market for an extended period, then it is considered that it has been able to create wealth for its investors.
पिछले सप्ताह अमेरिकी उपभोक्ता मूल्य सूचकांक (सीपीआई ) के आकड़ो में बढ़ोतरी दर्ज की गई है। फ़ूड, एनर्जी और औद्योगिक धातुओं की कीमतों में लगातार बढ़ोतरी होने से मुद्रास्फीति में बढ़ोतरी का अनुमान रहा जिसके कारण पिछले सप्ताह में सोने के भाव में लगातार तेज़ी देखि गई। गुरुवार को जारी अमेरिकी आंकड़ों से पता चला है कि जनवरी में उपभोक्ता मूल्य सूचकांक (सीपीआई) साल-दर-साल 7.5 प्रतिशत और महीने-दर-महीने 0.6 प्रतिशत बढ़ा है।
कोर सीपीआई महीने-दर-महीने 0.6 प्रतिशत और साल-दर-साल 6 प्रतिशत बढ़ा है। यह 40 वर्षों में मुद्रास्फीति में सबसे बड़ी वार्षिक वृद्धि है। घरेलु वायदा सोने में 1000 रुपये प्रति दस ग्राम तक की तेज़ी देखि गई, हालांकि, मुद्रास्फीति लगातार बढ़ने के कारण निवेशकों द्वारा 50 आधार अंक की बढ़ोतरी की अटकले लगाई जाने लगी है जो अभी 0.25 आधार अंक बढ़ने का अनुमान है। जिससे सोने के भाव में सप्ताह के अंत में मुनाफा वसूली भी देखि गई और भाव 48750 रुपये प्रति दस ग्राम के स्तरों पर रहे।
शुक्रवार को सेंट लुइस फेड के अध्यक्ष जेम्स बुलार्ड ने सीपीआई के आंकड़े जारी होने के बाद कहा कि वह अगली तीन नीति बैठकों में फेड से दरों में पूर्ण बढ़ोतरी की उम्मीद रखते हैं। रेट फ्यूचर सर्वे के मुताबिक 62 प्रतिशत संभावना का संकेत है कि केंद्रीय बैंक मार्च 2022 में जेम्स बुल्लार्ड की टिप्पणी के बाद ब्याज दरों में 50 आधार अंकों की वृद्धि करेगा, यह सम्भावना बुधवार तक 30 प्रतिशत पर थी। जिसके कारण 10 वर्षीय अमेरिकी बॉन्ड यील्ड 2 प्रतिशत के उच्च स्तरों पर पहुंच गई है।
पूर्वी यूरोप में भू-राजनीतिक तनाव भी जारी है क्योंकि रूस और यूक्रेन की फ्रांस और जर्मनी के साथ बातचीत में कोई सफलता हासिल करने में विफल रहे हैं। यूक्रेन के मामले पर रूस ने नाटो में शामिल देशो को कड़ी चेतावनी दी है। भू-राजनीतिक तनाव सोने और चांदी के भाव को लगातार सपोर्ट कर रहा है।
इस सप्ताह सोने और चांदी के भाव में तेज़ी रह सकती है। अप्रैल वायदा सोने में 48400 रुपये पर सपोर्ट है और 49000 रुपये पर प्रतिरोध है। मार्च वायदा चांदी में 61200 रुपये पर सपोर्ट और 65000 रुपये पर प्रतिरोध है।
Intraday trading refers to the buying and selling of stocks on the same day. It is done using online trading platforms.
Intraday trading is considered riskier than investing in the regular stock market. It is important, especially for beginners, to understand the basics of such trading to avoid losses.
Let’s understand it with an example:
If you buy a stock at Rs. 500 and sell it at Rs. 550, you make an intraday profit of Rs. 50 per share (if all the shares were bought and sold).
So, Intraday Trading has its advantages and disadvantages. Intraday traders can make money when the market is volatile, but they can also lose a lot if they are not careful.
Hence, it is essential to know the factors that determine profits in intraday trading.
The concept behind Trade with the Trend is that most traders don't have time in their schedule to watch for news events, but they can watch for technical signals that can predict trends.
Traders can also watch for support and resistance levels that may be reached as a result of market movement.
Resistance and support are arguably some of the most widely discussed concepts in technical analysis.
In its most basic sense, resistance indicates a price level that is likely to act as a barrier to the price of an asset, preventing it from getting pushed in that direction.
If there's strong buying pressure at a certain level, it's likely that this resistance level will hold, meaning that the price will bounce off of it and move in the opposite direction.
On the other hand, if there's significant selling pressure at a certain level, it's likely that this resistance level will break, and the asset's price will continue moving in the same direction it was headed before hitting it.
When these levels are potentially going to be reached, a trader can take out a position before the level is reached, so they can profit from the reaction once it does.
Traders involved in Trade with the Trend may use technical analysis indicators like moving averages and support/resistance levels to determine when a currency pair has increased enough to enter into a trade position.
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When you plan to trade intraday, you need to be sure that you can buy and sell large volumes of stock without affecting the price.
The only way to be sure that a sudden move in the price does not impact you is to buy or sell very small amounts of stock at a time.
Tick-size trading depends on having liquid stocks to allow even tiny transactions to be executed swiftly.
Once you have been trading for a while, you will get to know the characteristics of various stocks.
Many stock trading investors know about charts, it is important to identify stocks that are likely to be the right stock to trade.
The most vital tool in your utility belt is a strong chart pattern recognition ability.
Once you gain proficiency at reading charts, you can spot the formation of stock patterns and trade accordingly.
It is essential as an intraday trader that you are familiar with chart patterns.
By default, every stock will move in an overall trend direction.
There is a bull trend, and there is a bear trend. In other words, the market will move in one direction or another for a long time at a stretch.
As an intraday trader, you need to know these trends so that you can make good decisions regarding the buying and selling of stocks.
The best way to spot market trends is by looking at charts of stocks for which there are historical records available for a long period.
This will give you an idea about how the stock has behaved over time and how it behaves during different phases of its life cycle.
There are two kinds of intraday breakouts.
The first one is when you see a stock breaking out in the early morning hours around 9:45 am and 10 am, and then it starts moving up or down in the regular trading hours and forms a top or bottom.
The second type is when a stock closes above or below its opening price in the first few minutes of opening the market.
The first type presents good entry points for long positions, while the second gives you good entry points.
The best way to identify breakout stocks is to keep an eye on your trading platform's Top Gainers and Losers list.
Once you have shortlisted stocks, keep an eye on their daily prices, especially in the first 10 minutes after the market opens.
If you find a stock that has broken out, then place an order to buy or sell as soon as possible so that you don't miss out on the opportunity to make some money from it.
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If you are a day trader, you need to have a stock list that is extremely sensitive to news.
These stocks are best for trading because they fluctuate rapidly with new information and thus offer traders numerous trading opportunities. They also allow a trader to capture profits quickly.
There are essentially two types of Intraday traders in India.
The first one is the one who trades on fundamentals and technicals.
The second type of trader watches the news for trading opportunities.
I mention this here because you need to be aware that your intraday trading strategy may not work if you are a technical trader and vice versa.
This strategy will work if you have a stock list of stocks that are sensitive to news. This strategy will not work in a stock that does not react to the news.
In the year 2021, we saw many companies launching their IPOs to make an entrance into the public market.
From January to December, a minimum of 3 companies have become public every month.
Following the last year, there are other companies too, who are looking forward to making their debut in the primary market.
The IPO information is crucial for every stock market trading investor.
In this blog, we will talk about all the upcoming IPOs in February 2022 so that you can take a call on investing or not.
Sr No Name of the Company Issue Size Opening Date Closing Date 1 Vedant Fashion Ltd₹3,149.19 Cr February 4, 2022February 8, 2022 2 Go Airlines Ltd ₹3,600 Cr*To be announced To be announced 3 Mobikwik Systems Ltd ₹1900 Cr* To be announced To be announced 4 Jana Small Finance Bank ₹2,000 Cr* To be announced To be announced 5 Arohan Financial Services Ltd ₹850 Cr* To be announced To be announced 6 Ixigo (Le Travenues Technology) Ltd₹1,600 Cr*To be announced To be announced
Vedant Fashions, India's largest private label apparel and lifestyle brand, will hit the primary markets on February 4 with an IPO that will be an offer for sale by the company's promoters.
The Rs 3,149 crore offer will give the existing shareholders and promoters of the company a chance to monetize their investment.
Vedant Fashion Ltd., an Indian clothing company, owns several brands such as Manyavar, Mohey, Mebaz, Manthan, and Twamev.
It operates through franchise-owned outlets (EBOs), as well as multi-brand outlets (MBOs) and large format stores (LFSs).
The company also has an online presence on its website and mobile application. As of September 30, 2021, it had over 1.2 Mn sq. ft of retail space in India and 11 EBOs overseas.
It has announced plans to go public on February 4, 2022, with a total issue size of ₹3149.19 crores for sale.
In 2009, MobiKwik Systems Limited began its operations with MobiKwik Wallet. This allowed users to load money into a mobile wallet and make payments with a single click.
Mobikwik is one of the largest mobile wallets and Buy Now Pay Later (BNPL) players in India. The company also offers payment gateway services to e-commerce merchants.
They aspire to provide credit to India's growing online population, and they offer a range of products to help with that goal, including peer-to-peer payments via UPI, MobiKwik Wallet, and MobiKwik Wallet to bank payments through their platform.
Their IPO has a valuation of INR 1900 crore. It involves a fresh share offering worth up to INR 1,500 crore, and 400 crores in an offer for sale.
One of the major players in the small financing scenario of the country, Jana Small Financing Bank (JSFB), will launch its initial public offering (IPO) with an issue size of Rs. 2,000 crores.
This IPO will include both an offer for sale (OFS) of Rs. 1,300 crores and fresh issue of shares worth Rs. 700 crores.
Finance bank Jana Small Finance Bank is raising funds through an initial share-sale worth Rs 700 crore, according to a draft red herring prospectus filed with the SEBI.
The company offered up to 92.53 lakh (9.25 million) shares to new investors in an issue of equity shares worth Rs 700 crore.
GoAir, India's 5th largest airline, filed its draft red herring prospectus with India's Securities and Exchange Board (SEBI) for an initial public offering worth ₹3600 crores.
The Wadia Group-owned the Mumbai-based airline, which began in 2005. The company name was GoAir, but they recently rebranded to GoFirst.
They fly 300 flights per day to 36 different domestic and international destinations; they have a market share of around 8.4%.
Go Airlines is India's ultra-low-cost airline that focuses on young Indians, leisure customers, and MSME business travellers.
The retail portion of the IPO is 10%, while QIB is 75% and NII is 15%. They will be listed on NSE and BSE, both indices.
Arohan, set up in 2006, is the largest non-banking financial company microfinance institution in the eastern Indian region with a gross loan portfolio of Rs. 4600 crore in FY21.
It raised Rs. 189 crore from ASK Financial Holding, Kiran Vyapar Ltd, and Arohan ESOP Trust at Rs. 210 per share between FY17 and FY20.
Its gross loan portfolio was Rs. 48.57 billion, the highest among all non-banking financial company microfinance institutions in eastern India. It is the fifth-largest NBFC-MFI in India based on the gross loan portfolio.
Between FY17 to FY20, it had the second-highest CAGR (which signifies compound annual growth rate) of 68% among the top five NBFC-MFIs in India and the highest customer growth among the top five NBFC-MFIs at 49% CAGR between FY18 to FY20.
Ixigo (Le Travenues Technology Limited), a technology company, focuses on empowering Indian travelers.
We assist travellers in making better travel decisions by leveraging artificial intelligence, machine learning, and data science-led innovations on our OTA platforms.
Ixigo's vision is to become India's leading travel ecosystem for the following billion users driven by technology, cost-efficiency, and their culture of innovation.
They have OTA platforms that allow travelers to book train tickets, flight tickets, bus tickets, hotels, and cabs while providing travel utility tools and services.
They offer train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, flight status updates, bus running status, pricing, availability alerts, deal discovery, destination content, personalized recommendations, and instant fare alerts flights.
They also provide automated customer support services.
Everyone is waiting for the Upcoming IPOs in February, you can’t Trade when you do not have a Demat account.
सोने और चांदी की कीमतों के लिए पिछले सप्ताह अस्थिर रहा लेकिन अप्रैल वायदा सोने के भाव सप्ताह में 0.8 प्रतिशत तेज़ हुए और 47950 रुपये प्रति दस ग्राम के स्तरों पर कारोबार करते दिखे। रूस-यूक्रेन के तनाव से सोने के भाव को सपोर्ट मिल रहा है। सोने के विपरीत दिशा में चलने वाला, अमेरिकी डॉलर इंडेक्स में पिछले सप्ताह जबरदस्त बिकवाली का दबाव रहा और इसमें 2 प्रतिशत की साप्ताहिक गिरावट दर्ज की गई है। अमेरिकी डॉलर इंडेक्स में यह गिरावट मार्च 2020 के बाद सबसे अधिक रही है।
पिछले साप्ताहिक सत्र के दौरान कॉमेक्स वायदा सोना 1800 डॉलर प्रति औंस के निशान के ऊपर ही रहा क्योंकि कमजोर डॉलर और अमेरिकी ट्रेजरी यील्ड में उछाल से शेयर बाजारों में जोखिम बढ़ने लगा है जिससे सोने में निवेश बढ़ा है। गोल्ड एसपीडीआर गोल्ड ट्रस्ट की होल्डिंग में बढ़त दर्ज की गई है। बैंक ऑफ़ इंग्लैंड ने पिछले सप्ताह अपनी मौद्रिक नीति में ब्याज दरों को बढ़ा कर 0.5 प्रतिशत कर दिया और यूरोपियन सेंट्रल बैंक द्वारा जारी मौद्रिक नीति में ब्याज दरे यथावत रखी। यूरोप में बढ़ती हुई मुद्रास्फीति को लेकर यूरोपियन सेंट्रल बैंक का मानना है की यह इस साल के अंत तक कम हो जाएगी।
प्रमुख बैंक की मौद्रिक नीति होने से पिछले सप्ताह कीमती धातुओं के भाव में काफी उठा पटक देखि गई है। उधर, अंतर्राष्ट्रीय मुद्रा कोष ने चेतावनी दी कि यह कहना बहुत जल्दी होगा कि दुनिया "निरंतर मुद्रास्फीति" की अवधि का सामना कर रही है। इस बीच, यूक्रेन को लेकर अमेरिका-रूस के बीच तनाव लगातार बढ़ता जा रहा है। अमेरिका का मानना है कि रूस ने यूक्रेन पर आक्रमण करने के बहाने के रूप में कई विकल्प तैयार किए हैं, जिसमें एक प्रचार वीडियो का संभावित उपयोग शामिल है। जो सोने के भाव के लिए तेज़ी का संकेत कर रहे है।
सोने और चांदी के भाव में इस सप्ताह तेज़ी रह सकती है। सोने को 47400 रुपये पर सपोर्ट और 48300 रुपये पर प्रतिरोध है। चांदी को 59800 रुपये पर सपोर्ट और 62400 रुपये पर प्रतिरोध है।
According to SEBI requirements, all stock market trades must be placed through a Member of the Exchange - a stock brokerage company. A brokerage house, often known as a broker, is an institution that acts as an intermediary in transactions involving securities such as stocks, mutual funds, ETFs, and others. A top stockbroker will assist you with transactions, and provide investment advice, tax-saving ideas, retirement planning guidance, and asset management services. They will walk you through all the steps required to invest in the stock market.
A conventional stockbroker offers its clients a wide range of services, including trading (stocks, commodities, and currencies), advising, research, asset management, and retirement planning. A conventional broker often allows you to trade a wide range of financial instruments, including Forex trading online, mutual funds, pension plans, insurance, bonds, IPOs, and FDs. Because of these added features, if you wish to hire someone to manage your money and assets, a conventional or full-service broker.
Swastika Investmart is one of India's major full-service stock brokerage firms, serving individual and institutional clients across all capital market categories. Swastika has a strong research staff, a powerful digital online trading platforms Swastika 2.0, a huge branch network, and a franchisee base that helps it to conduct thousands of secondary market deals every day.
Swastika offers a wide range of services, including mutual funds, a wide range of choices for investing in stocks, and derivatives (stocks, commodities, and currencies). Additionally, it provides investment banking services, funding for margin trades, and third-party products like insurance.
Swastika has around 3 lakh accounts for customers and 80 + Branches located all over India. It is a SEBI-registered entity that is registered with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). We are also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
You will get the greatest trading experience possible thanks to the best-in-industry trading app mixed with cutting-edge technology. Swastika app is an Indian stock market trading app that is suitable for both traders and newbies. It is simple to use and free.
When you are ready to begin trading stocks, one of the most important decisions you have to make is selecting a stock broker. With over a dozen share brokers in India offering incredible brokerage services, it might be difficult to find the brokerage business that works best for you. Before you can begin investing, you must register with a brokerage firm that handles all of your transactions. If you are one of the traders looking for the top online brokerage business, then Swastika Investmart might be the right choice for you.
A top stock broker gives its clients the choice to invest in a wide range of securities, including stocks, bonds, ETFs, futures, options, and real estate investment trusts. Even if you simply want to trade stocks, for the time being, you should still think about the prospect of trading other assets in the future. Your brokerage business should be able to give you information on all of these options.
A top stockbroker in India would provide a wide range of recommendations, including investing and diversification suggestions, retirement plans, and tax-saving strategies. It is critical to select a broker that provides research advice that is valuable to you. When selecting an online stockbroker in India, This is one decision that must be made after careful consideration. The more time you are ready to devote to research, the easier it will be for you to trade in the share market.
Even experienced investors require assistance at times, therefore it is critical to select a stockbroker that provides the best customer support. Swastika Investmart support team is available 24/7. The helpdesk picks up your call in just 3 rings. This is one of the distinguishing features that make Swastika as an online stock broker stand apart from the best stockbrokers in India.
If you are a trader who prefers physical places, you should select a stockbroking firm with many branches throughout India. One of the best stock broker in India would is Swastika Investmart which has over 80+ branches throughout India.
A top stock broker in India would also provide you with a personalized relationship manager that will help you in guiding you through your trades.
घरेलु वायदा बाजार में सोना पिछले सप्ताह में 1000 रुपये और चांदी 3400 रुपये टूट गई जिससे सोने के भाव 47800 रुपये प्रति दस ग्राम और चांदी 61600 रुपये प्रति किलो के स्तरों पर पहुंच गए। फेड द्वारा ब्याज दरे जल्दी बढ़ाने के संकेत से सोने के विपरीत दिशा में चलने वाला डॉलर, पिछले सप्ताह करीब 2 प्रतिशत तेज़ हुआ और अमेरिकी बॉन्ड यील्ड भी 1.82 प्रतिशत के ऊपर निकल गई। हालांकि, वर्ल्ड गोल्ड कॉउंसिल ( डब्ल्यूजीसी ) के मुताबिक 2021 में सोने की मांग अच्छी रहने के बावजूद 2022 में इसकी मांग में और भी इजाफा होने का अनुमान लगाया है।
डब्ल्यूजीसी के भारतीय ऑपरेशन के क्षेत्रीय मुख्य कार्यकारी अधिकारी ने कहा कि इस साल सोने की खपत छह साल के उच्चतम स्तर 800 से 850 टन तक पहुंचने की संभावना है, जबकि 2021 में 797.3 टन थी और पांच साल की औसत खपत 667 टन है। भारत की सोने की खपत में पिछले साल 79 प्रतिशत की बढ़ोतरी दर्ज की गई है। डब्ल्यूजीसी की दिसंबर रिपोर्ट के मुताबिक भारत में उच्च आयात शुल्क होने के बावजूद सोने का आयात बढ़ा है और ज्वेलरी की मांग एक दशक में दोगुना हो चुकी है।
भारत में कीमती धातुओं को लेकर नई नीति का निर्धारण और उन्नत तकनीक लाने से इनमे पारदर्शिता बढ़ेगी जो एसेट क्लास के रूप में सोने के लिए महत्वपूर्ण होगी। कच्चे तेल में आपूर्ति पहले से बाधित है साथ ही रूस और यूक्रेन के बीच तनाव बढ़ने से तेल और गैस की आपुर्ती में आगे भी बाधा उत्पन्न होने की सम्भावना के चलते इनके भाव में लगातार बढ़ोतरी हो रही है जिससे मुद्रास्फीति भी बढ़ने के अनुमान है। भूराजनितिक तनाव में आगे भी बढ़ोतरी हुई तो यह सोने और चांदी को निचले स्तरों पर सपोर्ट कर सकता है।
चीन में इस सप्ताह स्प्रिंग फेस्टिवल होने से बाजार बंद रहेंगे। बुधवार को ओपेक-नॉन ओपेक देशो की बैठक, गुरुवार को बैंक ऑफ़ इंग्लैंड और यूरोपियन सेंट्रल बैंक की मौद्रिक नीति और शुक्रवार को अमेरिकी पैरोल के आंकड़े महत्वपूर्ण है।
सोने और चांदी के भाव इस सप्ताह अस्थिरता के साथ दबाव में रह सकते है। सोने को 47300 रुपये पर सपोर्ट और 48300 रुपये पर प्रतिरोध है। चांदी को 60000 रुपये पर सपोर्ट और 63000 रुपये पर प्रतिरोध है।
When a company makes net profits, a portion of the net profits is paid out to the shareholders in dividends.
This is usually referred to as paying some or all of your profits back to shareholders.
Paying out dividends to shareholders of a company will normally receive a portion of those dividends as cash income.
Ploughing back profits is the opposite of paying out dividends. When a company makes net profits, a portion of the net profits is paid out to the shareholders in dividends.
On the other hand, ploughing back profits involves investing its money into its operations rather than distributing it to the shareholders.
Example of Plough Back Ratio of X Ltd and Y Ltd
X Ltd Amount Y Ltd Amount Total Equity Rs.10,00,00,000Total EquityRs.10,00,00,000Net Profits 2017-18Rs.3,30,00,000Net Profits 2017-18Rs.3,30,00,000Dividend PaidRs.66,00,000Dividend PaidRs.33,00,000Dividend Ratio20%Dividend Ratio10%Plough Back Ratio80%Plough Back Ratio90%Market CapitalizationRs.52.80 Crore Market CapitalizationRs.85.80 Crore P/E Ratio16XP/E Ratio26X
In the above example, we can see that both companies X and Y have the same equity base, and we considered that they earned the same profit in the last financial year 2020-2021.
This means both X and Y have the same return on Equity (ROE).
Return on Equity(ROE) = Net Profit of Business / Total Equity of Business.
ROE of X = 3.30 Cr(Net Profit) / 10 Cr(Total Equity) = 33%
ROE of Y = 3.30 Cr(Net Profit) / 10 Cr(Total Equity) = 33%
We have seen both X and Y companies have the same ROE and similar net profits.
But they both differ in the way they pay out dividends.
For example, X pays out 20% of its profits as dividends and ploughs back 80% of profits. On the other hand, we see Y pays out just 10% of its profits as dividends and ploughs back 90% of its profits into its reserves.
What is significant is that X quotes at a P/E ratio of 16X while Y quotes at a P/E Ratio of 26X.
Because Y invests more profits to buy assets and grow as a company and make profit accordingly rather than giving money to shareholders.
To know more about investment in high dividend-paying companies - click here
Both companies have the same ROE in the above example, but the Y’s P/E ratio is much higher than X.
Why is it so? Some people like it if the company pays a high dividend, but many don't like dividend-paying companies.
The reason behind that is that when a company gives a high percentage of dividend to shareholders as X did, traders stop investing in that stock because they think that the company should invest the profit into their growth rather than giving high dividend shareholders.
Company Y gives only 10% of its shareholders and invests more of its profit into their growth. That's the reason the Y P/E ratio is 26X
Some people like that they should get the bonus money from the company, i.e., dividend, but these people are very less. The majority of long-term investors don't like dividend-paying companies.
X pays out 20% dividends compared to Y's 10% payout. Hence, if you are looking for dividend income, you would prefer investing in X.
But suppose you are a long-term investor who is willing to remain invested for at least ten years and does not mind volatility in the stock price.
Then you would prefer investing in Y because Y invests 90% of profits back into the business, and hence Y will have much more money to grow at a faster rate than X. Thus, your long-term expected return from Y is higher than that of X.
Plough back profits is a term used in the corporate world. The number of net profits (or net profit available to shareholders) that a company reinvests back into the business, rather than paying out as dividends.
The reinvestment back into the business is generally done in two ways:
1) Increasing working capital by buying additional inventory and raw materials, paying off debt, and increasing short-term investments.
2) Investing in long-term assets such as new facilities, machinery, and equipment.
The advantage of ploughing back profits into the business, as opposed to paying out dividends to shareholders, is that it allows for the creation of long-term value for the company.
This ultimately helps the share price at some stage in the future.
So the plough back ratio can be beneficial for both short-term traders and long-term traders accordingly. If you are a short-term trader, you should invest in a high dividend-paying company, and if you are a long-term trader, you should invest in a no dividend-paying company or less dividend-paying company.
If you are new to stock trading, you may be wondering what the P/E ratio is. And why it is considered while purchasing stocks. This blog is intended to give you a brief understanding of the P/E ratio.
As a stock market trading investor, you always want to buy undervalued or low P/E ratio stocks.
Trying to understand the reason behind this concept will be helpful to get an idea of what the P/E ratio is and how it works.
As defined, the "Price to Earnings Ratio" or P/E ratio is a valuation indicator that measures the number of money investors pay for each dollar of a corporation's earnings.
It is calculated by dividing the current market price by its earnings per share (EPS).
The P/E ratio can also be stated as "how much an investor pays for one Rupee of earnings".
It gives valuation multiple times higher or lower than the market average. The lower the number, the better the bargain.
So why should you prefer low P/E ratio stocks? To answer this question, we need first to understand how it works.
Low P/E ratio stocks can be considered as blue-chip companies. These are the companies considered to be leaders in their respective fields. They are well established, have a long history and reputation, and have a loyal customer base.
To answer this question, we need first to understand how it works.
P/E = Price/Earnings Ratio
The P/E ratio is the most commonly used metric for valuing stocks. It's calculated by dividing the market price per share by earnings per share (EPS).
The lower the P/E ratio, the better it is for investors because it means you get more earnings per Rupee spent.
For example, if a company has a P/E ratio of 10, it means you have paid Rs 10 to buy Rs 1 worth of profits (earnings).
Whereas if a company has a P/E ratio of 20, you will have to pay Rs 20 to buy Rs 1 worth of profit. 20 is higher than 10, and hence the former company offers lower value.
Low P/E Stocks = Low-Risk Investment
Now that we know how the P/E ratio works, let's quickly jump into the factors to invest in Low P/E stocks.
A low P/E ratio could well be a valuation call; it could be a call on the quality of the business.
It is essential to know the reasons for a low P/E ratio before investing in such companies.
If the company is bad, avoiding such companies would be a smart move.
On the other hand, if it is because the market has doubts regarding the future performance of the company, then you must make an independent analysis based on facts before you decide to avoid them or not.
Another example is of Nifty midcap stocks. If you look at the P/E ratios of the NSE Midcap Index and Nifty Smallcap index, you will find that the NSE Midcap index has consistently traded at a lower P/E ratio than the small caps.
The reason for this is straightforward – it is because investors perceive that midcaps are riskier than small caps.
So, a low P/E ratio can be a warning sign, but the P/E ratio cannot use it in isolation to judge companies.
Before forming an opinion on a company, you need to look at other factors like return on equity, interest coverage ratio, debt levels and more.
(Read more about - Factors to be Considered While Choosing Ideal Stocks )
There are things you can look at. You can look at the return on equity, which measures profitability. You can look at book value, which measures assets relative to debt.
You can look at the profit margin, which is how much profit you're making relative to sales. And you can look at growth rates.
Some companies have very high P/E's and are also doing extremely well in profitability, asset turnover, and financial risk.
Those things tend to be overlooked as people focus on the P/E ratio alone.
The best way to figure out what's going on with a company is to go through that exercise of looking at all the different factors and then coming up with an overall assessment.
Now, we don't want to say there's no place for the P/E ratio because it tells you something about how expensive stocks are in general.
Still, it doesn't tell you anything about whether a company is cheap or expensive relative to its history or its competitors or its growth rate or its prospects."
Wrapping up, we conclude that you should consider P/E with the combination of factors before buying a Stock, like Return on equity, Asset relative to debt, profit margin etc.
The country's largest power generator, NTPC, is seeking a partner to help it plan the initial public offering (IPO) of its renewable energy subsidiary National Renewable Energy Lab (NREL).
According to officials aware of the developments. It will start looking for a partner from April 2022, which would help increase the value of its IPO. Although other SME-IPOs are lined up in 2022, the spark of issuing NTPC’s IPO is different from other IPOs.
The reason could be the popularity of NTPC as it is counted as India’s dominant power major with a presence in the entire value chain of power generating business.
If we look into the stock market research, India is the third-largest country that emits greenhouse gases (GHG) globally.
That affects its climate and threatens to reverse the development gains made in recent years. NTPC Seeks renewable units to produce 40 per cent of its total power from non-fossil fuels by 2030.
NREL has doubled its target for clean power generation to 60 gigawatts by 2032.
Experts recommend that NREL bear significant equity money to meet the target, and bringing investors on board would be beneficial.
NTPC is India's most significant power utility with an introduced limit of 67,907.5 MW. It plans to turn into a 130 GW company by 2032. NTPC was established in 1975. NTPC aims to be the world's biggest and best power major.
NTPC has exhaustive Rehabilitation and Resettlement and CSR arrangements incorporated with its core business of setting up power projects and generating power.
NTPC focuses on creating dependable power at cutthroat costs in a supportable way by upgrading the utilization of various energy sources with imaginative eco-accommodating advancements.
Subsequently, NTPC adds to the country's monetary improvement and upliftment of the general public.
NTPC is very much situated to benefit from the predictable incomes generated by thermal assets and the development of sustainable power.
An AP/BV proportion of 1.5x for warm ventures brings about a valuation of Rs. 133,000 crore (close to current market capitalization) and no incentive for huge renewable energy (RE) growth plans.
Aside from settling ESG issues, NTPC hopes to market >5GW each year to deliver an 11 per cent CAGR in independent directed values.
RE limit focuses of 15GW/60GW by FY24E/FY32E (NTPC won 15% of RE offers in FY21) would make extensive worth.
The current installed capacity of NTPC?
The company's installed capacity is 67,907.5 MW (which includes JVs) 7 gas-based, own stations include 24 coal-based, 1 Wind 13 Solar, 1 Hydro, and 1 Small hydro plant.
Under the Joint Venture, NTPC has 9 coal-based, 13 renewable energy projects, and 4 gas-based Projects.
Is it reasonable to buy NTPC stock in 2022?
We are happy to say that the Indian stock market is currently trading at a very low price to its intrinsic value. Sooner or later, people will realize the fact that power stocks like NTPC are like annuity income for a long-term investor.
If one buys PNB or Bank of Baroda with a one-year time horizon, the investors will make a lot of money. I would still advise people to hold on to their stocks until the market comes down and then buy some more for the long term.
What is the Market Cap of NTPC?
NTPC, composed in the year 1975, is a large-cap company with a market cap of Rs 117475.11 Crore and is operating in the power sector.
Several well-known global companies, including energy companies, public companies and pension funds, have made significant contributions to India's renewable energy sector. The government wants more international companies to participate in achieving the clean energy goal.
प्रमुख केंद्रीय बैंकों द्वारा इस सप्ताह अपनी संबंधित बैठकों में अपनी मौद्रिक नीतियों को सख्त करने के बाद कीमती धातुओं में तेज़ी रही और सोने के भाव एक महीने की उचाई पर पहुंच गए। डॉलर जो आम तौर पर सोने के विपरीत चलता है, अमेरिकी फेड और यूरोपियन सेंट्रल बैंक द्वारा अपने कोविड-19 आर्थिक प्रोत्साहन को वापस लेने के बाद फिसल गया।
पिछले सप्ताह सोना 1 प्रतिशत और चांदी 1.7 प्रतिशत तेज़ हुई है। प्रमुख केंद्रीय बैंक उच्च मुद्रास्फीति को नियंत्रित करने के लिए मौद्रिक नीतियों को सख्त कर रहे हैं, साथ ही ओमीक्रॉन कोवीड-19 संस्करण के प्रभाव पर भी नजर रख रहे हैं।
मौद्रिक नीति में सख्ती सोने और चांदी के भाव के लिए नकारात्मक प्रभाव देता है, लेकिन बाज़ारो ने इस खबर को पहले ही भुना लिया था जिसके कारण कीमती धातुओं में तेज़ी रही और डॉलर इंडेक्स में दबाव बना। अमेरिकी फेड के साथ यूरोपियन सेंट्रल बैंक ने भी कोवीड राहत पैकेज में मार्च तक कटौती करने को कहा है।
इस बीच, यूरोपीय सेंट्रल बैंक ने 6 महीनो के लिए नियमित मासिक बांड-खरीद को बढ़ावा दिया जिससे कीमती धातुओं में तेज़ी रही। जबकि फेड द्वारा मार्च 2022 मे 0.75 प्रतिशत ब्याज दर बढ़ाने की योजना है। बैंक ऑफ़ इंग्लैंड ने अपनी ब्याज दरों में 0. 25 प्रतिशत की वृद्धि कर दी है।
जबकि बैंक ऑफ़ जापान ने सरल मौद्रिक नीति रखने के साथ आपातकालीन कोवीड -19 फण्ड को घटाने के सन्देश दिए है। केंद्रीय बैंकों के सख्त मौद्रिक नीति के आत्मविश्वाश से कच्चे तेल का रुझान पिछले सप्ताह तेज़ी का रहा और अमेरिका से बेरोज़गारी दावे के आकड़ो में बढ़ोतरी दर्ज की गई जिसके कारण सोने और चांदी के भाव को सपोर्ट रहा है।
इस सप्ताह सोने और चांदी के भाव पर बुधवार को अमेरिका से जारी होने वाले कंस्यूमर कॉन्फिडेंस और गुरुवार को कोर पीसीई प्राइस इंडेक्स के आकड़ो का प्रभाव रहेगा।
इस सप्ताह सोने और चांदी के भाव में निचले स्तरों पर सपोर्ट रह सकता है। सोने में 48200 रुपये पर सपोर्ट और 49000 रुपये पर प्रतिरोध है। चांदी में 61400 रुपये पर सपोर्ट और 63000 रुपये पर प्रतिरोध है।
The stock market and the economy have been in discussion for the past few years. Seeing the market indexes decline by over 30% within a month, an obvious question among people is to understand how the stock market affects the economy.
In this blog, we are going to discuss the effect of rising or falling stock markets on the economy.
Here, you will get to know the impact of the stock market on the economy. Let's get started:
Rising and falling stock prices can affect many economic factors, such as consumer and corporate confidence, which can have a positive or negative impact on the economy as a whole. Alternatively, various economic conditions can also affect the stock market.
Here are some ways the stock market can affect a country's economy:
The movement of individual stock prices gives the stock market an unstable character. When stock prices rise or fall, their volatility can have a positive or negative impact on consumers and businesses.
In the event of a bullish or stock price surge, general confidence in the economy increases. People's spending also increases when they are more optimistic about the market.
More investors are also entering the market, which contributes to the country's greater economic development.
A long-term decline in the price of stocks, also known as the bear market, has a negative impact on the economy.
People are pessimistic about the economy, and news of falling stock prices can often cause panic.
Few investors enter the market and people tend to invest in low-risk assets, which puts even more pressure on the economy.
When stock prices rise and a bull market exists, people are confident in market conditions and invest more. They tend to spend more on expensive items like homes and cars. This is also known as the asset effect, where changes in individual income affect their spending behavior and ultimately lead to economic growth.
In a bear market or a fall in stock prices, the asset effect will be negative. When the market is in bear mode, investors notice that their value of investment portfolio goes down and hence it decreases their spending on goods and services.
Needless to say, the decrease of spending of consumers marks a major impact on the economic growth which is a major component of Gross Domestic Product.
Like consumer spending, business investment also plays a major role in economic growth. A hike in the stock market also makes a positive impact on the businesses as with the aid of it, they make more capital investment because of the high market values.
Many companies issue SME IPO as they find it easy to raise capital which can be useful for further expansion.
This can be done through the sale of shares. There are more mergers and acquisitions during bull markets as they can use the value of their shares to purchase the other companies.
Most people who do not own stock are largely unaffected by short-term movements in the stock market. But even ordinary workers are not completely unaffected by the stock market.
1) Pension Funds:
Many private pension funds invest in the stock market. A significant and sustained decline in stock market trading prices can reduce the value of pension funds and reduce retirement pension payments. Similarly, if the stock market is strong, the value of pension funds can increase.
Even if you don't own the stock, someone with a private retirement plan is likely influencing the stock market.
However, most stocks are owned by the wealthiest 10% of income earners. According to this paper on middle-class wealth, the poorest 90% of income earners own only 7% of total capital. Falling stock prices primarily affect the top 10% of the wealthy.
2) Business Investment:
The stock market can be a source of business investment, such as companies that offer new stock to raise investment funds. This can lead to more work and growth. If banks have limited funding, the stock market can be a source of private funding.
However, the stock market is usually not the first source of funding. Most investments are usually funded through bank loans rather than stock options. The stock market plays a limited role in making investment and employment decisions.
3) Short Term:
Workers and consumers can argue that they may be affected by the short-term nature encouraged by the stock market. Shareholders usually want higher dividends. As a result, listed companies may feel pressured to grow short-term profits.
This can result in cost savings that affect workers (for example, zero contract hours). Alternatively, businesses may want to start collusion that pushes up consumer prices.
UK companies have been argued to be vulnerable in the short term as the stock market plays a larger role in raising companies. Banks are usually interested in the long-term success of a company and actively encourage more investment than maximizing short-term profits.
Today in this blog we will discuss what is Open-high and Open-low Strategies in Intraday Trading.
In India, people often choose to trade in the stock market trading whether it is long term or short term. This is because it allows them to uplift their wealth to an upper level.
As per the new economic survey, it has been found that the participation of the retail sector in the stock market is rising as the number of investors in the stock market has grown up by a whopping 142 Lakh in FY 21. It has also been recorded that new accounts have opened up with 122. 5 Lakh new accounts in CDSL and 19.7 Lakh in NSDL.
If we talk about trading in India, then Intraday trading is something that is considered one of the most challenging yet electrifying forms of share market trading. Also, many traders prefer intraday trading over others because they find it the best way to achieve profit within one trading day.
To book profits within a single day, traders use numerous tools such as charts and patterns to measure stock’s performance and make decisions based on them. In addition, they also grasp some strategies to gauge the performance of their scripts.
Although traders use different strategies to book profit from day trading, open high and open-low strategy is often used by intraday traders. In this blog, we will uncover the pivotal points of intraday trading:
When any stock or index has the same value, then Open-High Open-low Strategy is the one wherein a buy signal is generated. This indicates that traders buy stocks in large quantities. Contrary to this, a selling signal is generated when the value of a stock or index remains the same for open and high. Here, a selling signal indicates that it's high time traders should sell their stocks.
Intraday trading makes sure that all the positions are squared off before the market closes and hence no changes in the management of shares. This indicates that the money flows throughout the market in the form of shares and when the market closes, the shares are withdrawn.
Open-High, Open-Low Strategy isn’t simple as it seems to be.
The NIFTY 50 Index reflects approximately 10% of the free-float market capitalization of NSE-listed stocks. This will help you choose the best sector to invest in and pull stocks out of the market at the right time.
Stock Chart Analysis (Long-Term)
The OHL feature helps traders to analyze the stock charts. With a detailed analysis of the stock charts, traders get an idea of where to buy or sell a stock. Many traders do trading against the trend of a stock. Hence it is recommended that the newbies should avoid trading against a stock’s trend.
To get a detailed insight into stock chart analysis, go for stock market learning.
In general, the risk/reward ratio of OHL strategies is high and traders use this intraday trading method to set a "stop-loss"; near the strike price. If the stock's opening price is low, traders usually set the stop loss to the low of the opening candle for 15 minutes.
Traders who choose the Open Hi-Lo strategy can more accurately assess equity trends. This allows you to make investment decisions more efficiently. Traders can put specific stocks on their watchlists and decide when to invest. This allows them to choose the best sector to invest their money in.
During intraday trading, traders are required to trade in the shares that have high trading volume. Stocks that have high trading volume uplift traders’ confidence to an upper level.
Individuals find it easy to trade in the stock only if the closing price of the first candle is lower than the closing price of the second candle.
While trading in stocks, intraday traders need to ensure that the risk-reward ratio should be minimum. Trade analysts consider that 1:2 is the optimal ratio as risk-reward.
Traders who are seeking the OHL strategy find entering long or short positions can make a range breakout.
Open-high and Open-low strategies are some of the favored strategies that many experienced traders regularly use.
On the other hand, if you are a beginner who wants to trade intraday, should opt for a reputed stockbroking firm with masterful stock market research and advisory services.
“Inflation” in simple words is the progressive increase in the price of general goods and services, in the economy.
The purchasing power of money is the number of goods and services that can be bought with a monetary unit. Inflation further leads to a decrease in the purchasing power of money.
Lets understand this with an example: Rs.100 was put away on a shelf, what would happen to the money after a year? Yes! It would be the same. But it would buy lesser goods and services than what it would have a year back as all goods and services would have become more expensive after a year.
It means that in comparison today to that of last year is a function of how expensive goods and services have become over the period. Which in turn is a function of inducing inflation rate in the economy.
Wholesale Price Index (WPI) and Consumer Price Index (CPI) are indexes used to calculate the inflation in the country.
In order to calculate inflation India uses the WPI index.
WPI is defined as the average change in prices of commodities at the wholesale level. It is used to measure prices of Goods only and usually measured at the first stage of the transaction. It is only used in few countries including India. Which is usually paid by manufacturers and sellers.
CPI is defined as the average change in the prices of commodities, at the retail level. It is used to measure prices of Goods and Services both. Measurement of Inflation. It is usually measured at the final stage of the transaction. This is usually paid for by consumers. It is used by 157 countries.
If the inflation rate is 3-5%. It is beneficial to the economy. If it is outside this range, it is harmful to the country's manufacturing industry, further limiting employment and other opportunities.
It is considered that moderate inflation is usually good for economic growth.
Hyperinflation has reduced people's real income, reduced savings and investment, further reduced exports, and negatively impacted the balance of payments. Therefore, the economy as a whole is adversely affected by hyperinflation.
A class of society gets fixed income, these are pensioners, daily wage earners, salary receiving persons, etc. Inflation reduces the purchasing power of these people, which further reduces aggregate demand in the economy.
As per the RBI MPC meeting in Dec 2021, The repo rate remains unchanged at 4% while The reverse repo rate remains unchanged at 3.35%. The marginal standing facility (MSF) stands at 4.25%.
CPI-based inflation is retained at 5,3% for the financial year 2022 while the policy rate remains unchanged, The Inflation projection has been increased to 4.5% to 5.1% in Q3 and reduced from 5.8% to 5.7% in Q4 of 2021-2022
Firstly, the Bank of England (BoE) became the first major central bank to raise major interest rates on December 15 to combat inflation. The BoE's key interest rate rose 0.15 percentage points to 0.25% percentage points.
Secondly, Their monetary policy-centric inflation target was 2%, and the UK CPI inflation in November was 5.1%. Levels are not the only ones that have implemented monetary policy measures.
The rise in inflation was strong. Between September and November, inflation rose by 2 percentage points.
BoE expects the inflation rate to be on the rise early next year and peak at around 6% in April 2022.
At last, The COVID-induced disruption of supply chains is responsible for the increased up costs. On the demand side, inflation is rising due to the fiscal stimulus measures introduced in the United States.
पिछले सप्ताह फेड के मिनट्स जारी किये गए जिसके बाद सोने और चांदी के भाव में भारी गिरावट दर्ज की गई। अमेरिकी बॉन्ड यील्ड और डॉलर बढ़त के साथ अपने उच्च स्तरों पर बने हुए है। कॉमेक्स वायदा में सोने के भाव पिछले सप्ताह 2 प्रतिशत से ज्यादा टूट गए और इसकी कीमते 1790 डॉलर प्रति औंस पर रही।
कॉमेक्स वायदा चांदी में 5 प्रतिशत से अधिक की गिरावट रही और इसकी कीमते 22 डॉलर के निचले स्तरों पर पहुंच गई। फेड अधिकारियों मुताबिक दर वृद्धि जल्द हो सकती है और संभवत: तेज गति से हो सकती है, जैसा कि उन्होंने पहले उम्मीद की थी क्योंकि अमेरिकी मुद्रास्फीति पिछले 40 वर्षो में बहुत तेज़ी बढ़ रही है।
फेड ने संकेत दिया कि नीति निर्माता, केंद्रीय बैंक की 8.9 ट्रिलियन डॉलर की बैलेंस शीट को पिछली बार कम करने की तुलना में अधिकआक्रामक तरह से घटाने पर विचार कर रहे हैं। कीमती धातुओं में बड़ी गिरावट को देखते हुए, ऐसा प्रतीत होता है कि सोना और चांदी अभी भी उच्च बॉन्ड यील्ड और डॉलर की तेज़ी के चपेट में आ गए है।
कच्चे तेल की कीमतों में लगातार तेज़ी और ओमीक्रॉन के मामलो में बढ़ोतरी के बावजूद सोने और चांदी की कीमतों को सपोर्ट नहीं मिला है जिससे दबाव बना रहने की सम्भावना बढ़ गई है। अमेरिकी साप्ताहिक बेरोजगार दावे, जो एक सप्ताह में 7000 से 207000 तक चढ़ गए और अमेरिकी व्यापार घाटे पर आकड़ा नवंबर में बढ़कर 80.2 बिलियन डॉलर हो गया, जो इससे पहले के महीने में 67.2 बिलियन डॉलर था। नॉन फार्म एम्प्लॉयमेंट चेंज से सोने और चांदी के भाव को सपोर्ट रहा।
कॉमेक्स डिवीजन में, सोने में 1780 डॉलर का समर्थन है, इसके निचे यह बिकवाली की गति को 1750 के स्तर तक बढ़ा सकता है। ऊपर की ओर 1835 डॉलर पर प्रतिरोध है। चांदी को 22 डॉलर पर सपोर्ट मिला है और इस स्तर से नीचे बिकवाली का दबाव बढ़ने की संभावना है। इसका 23 डॉलर पर रेजिस्टेंस है। एमसीएक्स में सोने को 46800 पर सपोर्ट और 49000 पर प्रतिरोध है। चांदी को 58800 पर सपोर्ट और 61000 पर प्रतिरोध है।
2021 की शुरुआत के बाद, वायदा बाजार में सोने की कीमतें मार्च में एक साल के निचले स्तर 43320 रुपये पर आ गई, जो जून में 49700 रुपये के वार्षिक उच्च स्तर पर पहुंच गईं। शेष वर्ष के लिए, सोना 45500 रुपये से 48000 रुपये के बीच एक सीमित दायरे में कारोबार करता रहा।
बढ़ती मुद्रास्फीति, और अनिश्चितता से 2021 में सोने और चांदी के भाव को सपोर्ट रहा लेकिन, 2021 में, निवेशकों की जोखिम लेने की क्षमता बढ़ने से सोने की मांग में 9 प्रतिशत की गिरावट आई, मुख्य रूप से एक्सचेंज-ट्रेडेड फंड (ईटीएफ) श्रेणी से निवेश कम हुआ।
पहली तीन तिमाहियों में, केंद्रीय बैंक की खरीद दोगुनी रही और आभूषण की मांग में 50 प्रतिशत की वृद्धि से ईटीएफ मांग में गिरावट की भरपाई हुई। भारत में सोने के निवेश और आभूषणों की मांग शानदार रही है। भारतीय गोल्ड ईटीएफ सोने में निवेश को आकर्षित करता रहा।
भारतीय सोने का आयात भी बहुत मजबूत है और 2021 में प्रतिबंधों में ढील, विवाह की सबसे अधिक संख्या आदि के कारण 900 टन के आंकड़े को पार करने की उम्मीद है। यूके, यूएस यूरोप और एशिया में ओमीक्रॉन के मामले लगातार बढ़ रहे है।
2021 में फिर उच्च स्तर पर मुद्रा की छपाई ने खर्च को बढ़ावा दिया जिससे मुद्रास्फीति बढ़ी। 2022 के लिए सोने की तस्वीर आशाजनक प्रतीत होती है, अगले साल की पहली छमाही में सोने के लिए अच्छा माहौल रह सकता है। निवेशकों की रुचि सोने और चांदी में बढ़ सकती हैं, क्योकि आगामी अमेरिकी मध्यावधि चुनावों से संबंधित राजनीतिक अनिश्चितताएं, अमेरिकी बजटीय खींचतान, अपेक्षाकृत लगातार केंद्रीय बैंको की सोने में खरीद, और धीमी होती वैश्विक विकास दर और सुधार शामिल हैं।
रुपये में पिछले सप्ताह भी 1 प्रतिशत की मजबूती दर्ज की गई जिसके कारण घरेलु वायदा बाजार में सोने और चांदी के भाव में गिरावट रही लेकिन कीमतों में निचले स्तरों से सुधार देखने को मिला। सोना पिछले सप्ताह 0.41 प्रतिशत की गिरावट के साथ 47900 रुपये प्रति दस ग्राम जबकि चांदी के भाव में हल्की तेज़ी रही और यह 62300 रुपये प्रति किलो के करीब रहे।
इस सप्ताह सोने और चांदी के भाव सकारात्मक दायरे में रह सकते है। सोने में 47500 रुपये पर सपोर्ट और 48300 रुपये पर प्रतिरोध है। चांदी में 61000 रुपये पर सपोर्ट और 63000 रुपये पर प्रतिरोध है।
Sobha Ltd. was founded in 1995 and is a medium-sized enterprise (market capitalization 8,492.97 rupees) operated in the real estate sector.
Sobha Ltd's most important product/sales segment.
It includes real estate development, construction income, glazing income, interior construction income, financial services income, concrete blocks, land development rights, rental income, and scraps for the year ended March 31, 2021.
According to the company's report for the quarter ending at 30092021, consolidated total revenue was 832.30 lakh crore, an increase of 58.53% from total revenue of 525.00 rupees in the previous quarter and a 52.46% increase from last year's total revenue of 545.90 rupees.
The company reported a net income after tax of 48.30 rupees for the most recent quarter. The company's top management includes Ravi PNC Menon, J C Sharma, TP Seetharam, R V S Rao, Anup Shah, K N Srivathsala and Sumeet Jagdish Puri.
The company is BSR & Co as an auditor. I have an LLP. As of 30092021, the company has issued a total of 9.48 lakh crore shares. Founded in 1975, Balrampur Chini Mills Ltd. is a small business (market capitalization 7,498.47 rupees) operating in the sugar sector. 2.2.
Balrampur Chini Mills Ltd's most important product/sales segment. Includes sugar, alcohol (industrial), export incentives, electricity, bagasse and other operating income for the fiscal year ended March 31, 2021.
According to the company's report for the quarter ending at 30092021, total consolidated revenue was Rs. 121.823 billion, up 6.33% from Rs. 114.568 billion in the previous quarter and down Rs. 129.437 billion by 5.88% in the same period last year.
The company reported a net income after tax of Rs 81.11 for the most recent quarter.
The company's top management includes Sumito Mazmda, Vivek Saraogi and PhD. Arvind Krishna Saxena, Mr. Naresh Dayal, Mr DK Mittal, Mr. Krishnava Dutt, Ms. VeenaHingarh, Ms. Mamta Binani The company's auditor is Lodha & Co. is. As of 29102021, the company has issued a total of 20.40 lakh shares.
Founded in 1995, KNR Constructions Ltd. is a mid-sized company (market capitalization: Rs 8,432.82) operating in the infrastructure sector.
KNR Constructions Ltd's most important product/sales segment. Includes contract revenue and other operating income for the fiscal year ending March 2021.
According to the company's report for the quarter ending at 30092021, the consolidated total revenue was 853.23 rupees, 5.07% higher than the total revenue of 812.09 rupees in the previous quarter and 28.52% higher than the total revenue of 812.09 rupees 663.89 rupees last year.
The company reported a net income after tax of Rs 70.27 for the most recent quarter.
The company's top management includes B V Rama Rao, K Narasimha Reddy, K Jalandhar Reddy, K Yashoda, LB Reddy and G Chandra Rekha. The company's auditor is KP Rao & Co. As of 30092021
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