World Of Finance

        World of Finance by M.Vijaya Sai As part of continuous endeavour on enhancing investors on stock market trading , here is a CNBC TV18 Classroom session from technical analyst on trading stocks . This session elaborates on stock technical analysis and it's use Share |

        World of Finance by M.Vijaya Sai We often hear market analysts or experienced traders talking about an equity price nearing a certain support or resistance level, each of which is important because it represents a point at which a major price movement is expected to occur. But how do these analysts and professional traders come up with these so-called levels? One of the most common methods is using pivot points, and here we take a look at how to calculate and interpret these technical tools. How to Calculate Pivot Points There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day's high, low and close, along with two support levels and two resistance levels (totaling five price points) to derive a pivot point. The equations are as follows: R2 = P + (H - L) = P + (R1 - S1) R1 = (P x 2) - L P = (H + L + C) / 3 S1 = (P x 2) - H S2 = P - (H - L) = P - (R1 - S1)

        World of Finance by M.Vijaya Sai Check buying volumes Before buying check out the buying and selling quantity (volumes).If buying volume started increasing then the stock may go up and if selling volumes start increasing the stock price may come down.   Check derivative status If possible try to check out the derivative of the stock which you want to trade.If derivative of that particular stock is going up with increasing buying volumes then you can immediately grab (buy) that share/stock. Most of the time it is seen that if the derivative price goes up, then its share price also goes up. Wait for the target price to buy For example, if buy is given at 150.5 then don’t buy below this price, only buy at 150.5 price or slightly higher then price.Because the given buy price may be the resistance price, if it breaks then share price goes up or else may not go up above 50.5. So plan to buy at given targeted price, don’t buy below target price. Strictly mai

          World Of Finance by Vijaya Sai.M The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai’s Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as ‘The Native Share & Stock Brokers Association’. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE’s trading platfor

        World of Finance by M.Vijaya Sai If you are a budding investor , got some spare money and thinking of investing in stock markets and for the first time you walk into broker’s office, tell your broker about your interest. The first thing that broker would be telling is “diversification or portfolio construction” . If you know the word its well and good, but if you don’t have any idea about it then you will be puzzled. You would have read that shares of your favorite company (e.g.: Infosys, Reliance or TCS) are trading well, so you tell your broker that you want to put all your money into stocks of that company. For a moment your stock broker will look at you as if you have fallen from sky, it’s because people living at the stock markets believe that if you don’t diversify then there are very less chances of you surviving in the market . Now, is it always necessary to have a diversified portfolio…..??? If yes then how much should an investor diversify? Ar

        World of Finance by M.Vijaya Sai Why does an investor put his money in the stock market? The answer would be to earn higher returns. Ask him if he is sure that he is going to earn money that he intends, we don’t think that there will be a confident answer from his side. This has been the story ever since the trading has started. There has been a continuous battle between the investors and the stock markets if you consider the history of stock market there have been some wins which have gone in favor of stock market and some in favor of investors. The investor, from the moment he invests tries to outperform the market , the billion dollar question is “Is it possible…..???”, but it cannot be said that it’s just impossible to outperform the market because there are some examples such as Warren Buffet.   The behavioral finance has proved that the tendency of investors is “to Buy the Stocks at Lower Price and Sell them at Higher Price” . How do they do th

        World of Finance by M.Vijaya Sai India is one of the favorite places for foreign investor to place their money. It is not only the money that trades in stock market but it is an indispensable amount which we can’t even think of neglecting. India has got a growing economy and is a safe heaven. The economy has successfully overcome the affects of the economic downturn. Recently Securities and Exchange Board of India (SEBI) has proposed new trading timings for Indian stock markets . In this article we will discuss the relevance of this proposal.   A Review on Increased trading hours Trading in Indian stock markets starts at 9:55 am and goes on till 3:30 pm, it goes on for around five and half hours. SEBI the regulator of Indian securities market has come up with new timings forstock markets . According to the new time table the markets will start trading from 9 am and will go on till 5 pm. SEBI has said that the new timings will be implemented only after