criteria to buy and sell shares...

[N.R.Ranganathan]

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criteria to buy and sell shares

Dear Sriniranga,

Have you noticed how sensex has been behaving today ? It is now 19865
gaining around 800 points today uptil now. All the stocks have moved up.
The main reason , they say, is the communists' turn around thus ensuring
the safe continuance of the central government. Now, everyone is saying
we have strong fundamentals !

 

[navy-eswaran]

dear sir,
i told you that IT stocks can be cherry picked .wipro was 440 yesterday today-476.still it is good buy. other than IT all else are way above the reasonable p/e. before xmas FIIs normally liquidate their holdings. wait an watch for an opportunity for reasonable prices.

regards
eswaran

 

[N.R.Ranganathan]

criteria to buy.....

Dear Mr.Eswaran,

Yes, its true. Sensex soared to 19929, a gain of 893 pts, the biggest
gain in a single day. BANKEX, oil, IT and metal gained substantially.
Among other reasons for this upsurge are SEBI's decision to register
more FIIs and rally round of global market. We can expect more
foreign inflows !

 

[lotus]

Sir ,

At least in short term sensex is expected to pull back not withstanding this high level of volatility. Can any body suggest some good company deposits which will pay around atleast 15 %.

Thanks

 

[navy-eswaran]

dear sir,
as of now i do not know of any company offering 15% on deposits. with banks flush with funds and private banks pulling out of sub-prime lending industry is getting cash credit around 10-12%. so they dont have to solicit private funds. if you have enough money to play around buy and sell intraday on wipro/icicibank/suzlon.
as for the market one innocous statement from sebi/fm can send the FIIs scurrying for cover,then the common investor will be left holding the can.(remember the long forgotten CBDT circular
for the present wait and watch.
regards
eswaran

 

[sriniranga]

dear sir,
i told you that IT stocks can be cherry picked .wipro was 440 yesterday today-476.still it is good buy. other than IT all else are way above the reasonable p/e. before xmas FIIs normally liquidate their holdings. wait an watch for an opportunity for reasonable prices.

regards
eswaran

i think in this share trading lot of factors we need to consider and need to more and more... if i am seeing ur points and conversations... every thing is new for me...

 

[navy-eswaran]

dear snr(short for sriniranga)
this is a game. there are rules you have to frame for yourself before embarking in this venture.
for starters:
DOs:
1 study the market daily.
2 notionally buy some scrip and see its future next couple of weeks.
3 fundamentally strong companies never disappoint so look for strong leaders.
4 set a limit for your market exposure.(say10000)
5 when you buy set the limit price for purchase and dont be disappointed if you dont get
6 when you buy then and there set the target for sale. (it is like you know where to get in a bus and when to get off) any return above 10% in 15 days(i.e.,240%pa) should be ok.
7 buy when others sell and sell when others buy(million dollar ???)
.
.(ur own rules)
DONTs
never take a loan to play in market
only 10-20% of your saving should be in shares.
better invest in MF(never inUTIMF)like SBI/pru icici/franklin/lic
watch udayan in CNBC18/www.moneycontrol.cometc.,
dont listen to people like me(market is gut feeling mostly)
regards
eswaran

 

[sriniranga]

dear snr(short for sriniranga)
this is a game. there are rules you have to frame for yourself before embarking in this venture.
for starters:
DOs:
1 study the market daily.
2 notionally buy some scrip and see its future next couple of weeks.
3 fundamentally strong companies never disappoint so look for strong leaders.
4 set a limit for your market exposure.(say10000)
5 when you buy set the limit price for purchase and dont be disappointed if you dont get
6 when you buy then and there set the target for sale. (it is like you know where to get in a bus and when to get off) any return above 10% in 15 days(i.e.,240%pa) should be ok.
7 buy when others sell and sell when others buy(million dollar ???)
.
.(ur own rules)
DONTs
never take a loan to play in market
only 10-20% of your saving should be in shares.
better invest in MF(never inUTIMF)like SBI/pru icici/franklin/lic
watch udayan in CNBC18/www.moneycontrol.cometc.,
dont listen to people like me(market is gut feeling mostly)
regards
eswaran

Thank u Eswaran... i am kind of u

 

[lotus]

Sir ,

dear sir,
as of now i do not know of any company offering 15% on deposits. with banks flush with funds and private banks pulling out of sub-prime lending industry is getting cash credit around 10-12%. so they dont have to solicit private funds. if you have enough money to play around buy and sell intraday on wipro/icicibank/suzlon.
as for the market one innocous statement from sebi/fm can send the FIIs scurrying for cover,then the common investor will be left holding the can.(remember the long forgotten CBDT circular
for the present wait and watch.
regards
eswaran

Sir ,

Actually I have not done daytrading though am thinking of doing for some time now. In daytrade I guess volume is important....may be I have to try now.
Thanks for your advice.
Lotus

 

[navy-eswaran]

dear sir,
daytrading is risky. pl pick your scrips carefully.
regards
eswaran

 

[N.R.Ranganathan]

Criteria to ......

Today again there is a drop of 352 points in Sensex. So, one must
be careful in dealing with the stock market. You will have to keep
watching.

Sensex is very sensitive - if US President sneezes it will fall or it
will shoot up if PC laughs !

 

[Fehu]

I totally agree with Mr.Ranganathan.As an investment Banker who was managing several IPOs and a broker dabbling in the market economy I have some clarifications to offer.
The share market money is Euphoric money.It booms and falls by manipulation of individuals and perception of the investors.
Please follow the following to gain in share market.

1.Marketing is "cosmetic cheating in the environment" MBA definition Kotler.
2.Unless you have a quick exit route under your control don't buy shares.
3.IPOs can see some growth always in 60% of the cases.
4.Allotment time eats the premium. Exit quickly before manipulation occurs.
5.Even SEBI cannot stop before it occurs in some cases.
6.If you see the Warren Buffet analysis there are less than 10% of the investors over along period who have gained.
7.Indian market is different because of its weakness of the small investors.
8.Big fish like bankers new entities and even some old ones adopt a link with brokers and salvage their mutual investments by lot of dealings which cannot be made public.
9.One tilt in the subsidiary account will send the market in tail spin.Big fish will gain by "contango" Small investors lose their wealth.
10.If have hard earned money allocate for enjoyment substantial portion.Help the kith and kin and then others.
11.Save a portion in FDs and Post office and the if have surplus that my be a portion for your risk taking games or gamble as Mr.Ranganathan says.
Further advices will be provided if you consult me privately.
Let Tamil Brahmins thrive by my advice.
Fehu

 

[sriniranga]

I totally agree with Mr.Ranganathan.As an investment Banker who was managing several IPOs and a broker dabbling in the market economy I have some clarifications to offer.
The share market money is Euphoric money.It booms and falls by manipulation of individuals and perception of the investors.
Please follow the following to gain in share market.

1.Marketing is "cosmetic cheating in the environment" MBA definition Kotler.
2.Unless you have a quick exit route under your control don't buy shares.
3.IPOs can see some growth always in 60% of the cases.
4.Allotment time eats the premium. Exit quickly before manipulation occurs.
5.Even SEBI cannot stop before it occurs in some cases.
6.If you see the Warren Buffet analysis there are less than 10% of the investors over along period who have gained.
7.Indian market is different because of its weakness of the small investors.
8.Big fish like bankers new entities and even some old ones adopt a link with brokers and salvage their mutual investments by lot of dealings which cannot be made public.
9.One tilt in the subsidiary account will send the market in tail spin.Big fish will gain by "contango" Small investors lose their wealth.
10.If have hard earned money allocate for enjoyment substantial portion.Help the kith and kin and then others.
11.Save a portion in FDs and Post office and the if have surplus that my be a portion for your risk taking games or gamble as Mr.Ranganathan says.
Further advices will be provided if you consult me privately.
Let Tamil Brahmins thrive by my advice.
Fehu

Thanks fehu... it is quite interesting of investment in shares

 

[Fehu]

No mention please What I have written are hard facts stated in a general way.Pitfalls are more than pedestals to claim any gain in share market. One important thing is to have EXIT route with plans to offload quickly before you invest.Don't get emotional about possessions of shares of some companies.Treat all companies as ruthless profiteers with "marketing ideas" to get your money.This caution will help you if you play cautiously in the market.
Fehu
"Down to earth prosperity"

 

[N.R.Ranganathan]

Criteria to buy and sell.....

The day at the bourses began well, but the last hour trading, mainly
profit booking, turned the tables and the sensex closed at 18939, a drop
of 189 points. All intra-day gains are washed away !. Hence the need
for constant vigil of the movements, govt's announcements, FIIs' moves
and the like.

 

[Fehu]

Even if you watch you will be watching.the slide will occur.small investors may not have time to offload.Even the NSE operators and the those maitain the protal don,t have time to prevent the slide or hedge by quick offloading.There are many more issues.These are contango traders. all mof you study what is contango is and then enter with exit route.

 

[N.R.Ranganathan]

criteria to buy and sell shares

Dear Mr.Fehu,

That info is to Mr.Sriniranga, who is new to share market. I do not want
him to plunge into this because the market is volatile now. Since you are
an experienced person, you can ignore my earlier info. I must admit that
I am a novice compared to you.

 

[N.R.Ranganathan]

criteria to buy and sell shares

Dear Sri Hariharan,
Have you witnessed the debacle in Dalal street ? Oh !. what a fall !
More than 2000 points in a day and a partial recovery. This morning
Nikkei is already down by more than 500 pts at 1 PM. What is in store
for Dalal street is anybody's guess as of now.

 

[hariharan1972]

Dear Sri Hariharan,
Have you witnessed the debacle in Dalal street ? Oh !. what a fall !
More than 2000 points in a day and a partial recovery. This morning
Nikkei is already down by more than 500 pts at 1 PM.What is in store
for Dalal street is anybody's guess as of now.

Yes Sir,

Monday Mayhem, Tuesday Turmoil, what does Wednesday hold ?

I pulled some money out for Reliance Power IPO with the hope of making a quick buck when the issue opens in Feb.

With the huge oversubscription and the market tumbling, i guess, Rel IPO may not see a significant high opening.

With the Tech stock results not very inspiring, i dont know what will pull the market out of rut.

Will the hemorrhage continue despite the Fed cut ?

Hard times ahead for the Retail investor.

 

[fire]

A complete carnage

I guess its truly a knowledge & bravery and taking 'valu'able lessons. I guess many people are made to believe what many of others believe.If it goes up , they stay patient for certain extent.Then they take partial exposures.Certainly they change mind and convinced that it would go up only after seeing it going up for some months or year. They take the same negative stance when it goes down.

I see many of the high-fliers like parsvanath, gmr,many psus,neyveli ,refineries are halved or more than halved now in stock prices from their recent peaks.

Some people now speak of a sharp correction in real estate prices in suburbs of the city which are sold at crazy levels.Overall its tough time for investors and speculators. May be someone who knows the reality well should educate facts to all. There was an article some time back from Gurumurthy that stocks were at unsustainable levels......Though in reality every price is justified giving some reasons.

Take some valuations .....parsvanath has pe about 12 now. DLF has 8800.For an EPS of 10 paise its trading at 880Rs.Still DLF is considered more valuable than the previous.It may be good thing if the stock brokers come with the facts about the company in pure numbers and business information rather than just saying 'Buy this.It will go to this level...It wil get doubled in three years' etc.


Whats ur take on the reasoning that rel power ipo allocation may ease the liquidity around the Globe?The tremendous faith put by all to reliance is amazing.It will start generating revenues in 2010.Many will not know the number its going to deliver including myself.Still we invest for listing gains.

 

[fire]

Fed rate cut

Its .75% seems to be the highest in recent years.Hope this will infuse liquidity in the system and create new problems for India.India also has to cut rates which may boost growth but shoot up inflation.No one says US in recession now.Subprime market seems to be a small percentage of whole US economy.If that creates this much panic, I wonder what would happen to the market if a war or a real recession happens??One more thing is something like recession be avoided by just the rate cuts alone?? How much pain in the subprime market is left?? Do they have any other problems?

Why people esp FIIs pull out money with so ease? Are they not worried abt making a huge loss.Or are they not getting proper advice? Or is the situation making them doing so? (Its based on the assumption that every sharp fall may be a gud recovery after it).

One more thing is I guess recession is required in India in one sense to give some value to the money. A sony headphone is selling at 5k rupees!!! No one respects money now a days. People purchase dresses for Rs 5k or more where in many families the income level itself is much lower than that. Real estate is just crazy. 1 crore these guys would not have heard 10 years back....Now in metros independant houses cannot be obtained below that price.Some hotels charge 12k/day for a single day stay in Blore.Sure people are earning more now.But the affordability has definitely beaten their earnings. I guess we have to think twice about the value before we purchase anything.Be it a small screw or be it gold.

 

[N.R.Ranganathan]

criteria to buy and sell shares

Mr. Hariharan,
Just now Tokyo is looking up, thanks to interest rate cut by US. We may
witness FII's buying in Dalal street today, hopefully.

If the gap between the break-up value, eps and the market price is very
very wide, this is the result. I am not surprised at this fall, because price
rose up sharply during the past two months , other things remaining the
same.