PSU Bank sector heaven or hell ?

PSU Bank sector heaven or hell ?

   March 20, 2018       prabhakardalvi

---

Note : Any blog OR content suggestion you have, please mail me on prabhakara.dalvi@gmail.com

buying what looks cheap can backfire sometimes

Before the financial crisis of 2008 Myla was a hero in fund manager community.

Fund manager bits benchmark simultaneously 15 years in a row.

Instead of making exist when the crisis first rare its head Myla jump into the Fire.

Loaded financial stock and give promise to investor dust will settle and he proved with handsome  gain.

Criticism and  dust On fund manager investment portfolio is not settle. as per miler,  he admitted He was completely blind by statistical data.

Wall Street  elated highlighted the mention provided a lesson for fund manager and other value investor istock local cheap but sometimes that's for good reason.

In this article we want to discuss  public sector utility banking space

valuation of the stock is not good for public Bank connected with government. some investor look banking sector for long-term purpose main dividend means the dividend,

Quote by Charlie all  I want to know where I am going to die so I will never go there

In 4 year history we have never ever recommended some  stock related Sector

Large number of investor staying away from short- term trading because they think risky option our ID strong fundamental offer.

Make a identification short term investment is good some of the best returns.

Stock  c o u l d Go all the way zero eliminating  possibility of making come back when business condition improve.

this doesn't mean you should  no matter how mouth watering the prospects offering king big return from specific sector this man think and go.

Happy investing from Money Guru on dated 20 March

Read More

What is derivative trading - Simplus Information Services

What is derivative trading - Simplus Information Services

   June 11, 2014       prabhakardalvi

---

Stock market and speculation are almost synonymous. Many believe that stock market trading is speculation. Some even call it a casino. Stock market prices today are a reflection of tomorrow’s prospects. They rise and fall in tandem with profits of businesses. Indians love to speculate.

The market was introduced to modern ‘derivatives’ trading recently. Stock futures and options or derivatives are used extensively in India for speculation.

Here are five things you need to know about derivatives trading:

1) What are they: A derivative is a security that derives value from an underlying asset. An underlying asset could be an equity share, debt instrument, a currency or a commodity. Derivatives deal with an agreement to trade at a future date or at a certain price.

2) Types of derivatives: There are two types of derivative instruments. Futures and options. Futures allow you to bet on future trends in prices of an underlying instrument at a fraction of the cost of that instrument. Options give you an option to buy or sell the stock, commodity or a debt instrument at a target price. If the price of a stock is Rs 100, you expect it to go up to Rs 110 in a month’s time, then you buy a contract at Rs 100 today and agree to sell it at Rs 110 at the end of the month.

3) Why derivatives: There are many advantages of derivatives trading. Most use it to hedge their losses or safeguarding their investments from fluctuations in the market. So if you have bought Reliance Industries shares and suddenly due to an external event not related to Reliance Industries its share price is likely to fall, you could use derivatives to sell Reliance stock futures and hedge your loss in the equity market. Importers and exporters often hedge their currency risk.

So when they import goods, they pay in foreign exchange. If the rupee value falls against the US dollar, imported goods get expensive. Hedging in currency derivatives helps in cutting these losses. Traders also use the secondary market for arbitrage – buy cheap in one market and sell at a higher price in another or vice versa. There is always a price difference in markets.

4) How do I start: Derivative instruments are available with registered trading members of stock exchanges like brokerage firms. You will have to fill the Know Your Client (KYC) form if you are a first time investor, along with other forms for purchasing the contract you wish. You are allotted a client identification number, after which you must deposit cash to initiate trade.

5) How it works: Trading is a simple ‘buy and sell’ process. 

The only difference is that you will not have to pay the entire sum, but just a margin. For example, if you are buying 100 contracts of Nifty 50 October futures with a value of 5000, and if the margin is 5%, then you don’t have to pay Rs 5,00,000, but just Rs 25,000. All such transactions are settled at the end of every trading day. Investors are not required to hold any stock of the underlying asset for trading in the derivatives market.

Read More

Need to Know US Market Before open - What Thinking Person

Need to Know US Market Before open - What Thinking Person

   May 28, 2014       prabhakardalvi

---

US markets are expected to open up today, with what’s a quiet day for economic data and a record close yesterday. Futures suggest this will be built on. - 28 may 2014

Weekly mortgage application numbers showed a 1.2 per cent fall last week, following three weeks of gains.

The economics calendar is busier tomorrow, with pending home sales and another GDP estimate out.

Corporate news

Goldman Sachs has slashed its number of fixed-income trading staff by 10 per cent since 2010, its president and chief operating officer, Gary Cohn, said today.

He added, speaking to a conference, that the most significant thing impacting the bank’s trading is the economic climate, not new regulation and capital requirements.

Meanwhile, Bob Steel, ex-deputy mayor of New York and vice-chairman of Goldman it to become chief executive of boutique investment bank Perella Weinberg.

Medical device company Stryker is working on a takeover bid for UK firm Smith & Nephew.

And Veleant’s improved its takeover proposition for Allergan, which says it’ll consider the proposal.

Read More