WORK IN PROGRESS

HI THERE,ITS BEEN A MONTH SINCE I LAST POSTED AND THERES A GREAT REASON BEHIND IT TOO.

VERY SOON (WITHIN A MONTH OR TWO) I WOULD BE STARTING MY VERY OWN WEBSITE DEDICATED TO THE SAME TOPIC.IT WILL HAVE LOADS OF NEW FEATURES AND WILL CARRY LOT MORE INFORMATION.

HOPE TO BE BACK AT YOUR SERVICE WITH A BIGGER PLATFORM TO BOOT

REVERSING SWING

THE ONGOING INDIA-ENGLAND TEST SERIES MIGHT SEEM TO INFLUENCE THE MARKETS TOO. SIMILAR TO THE TEST MATCHES FORTUNES ARE SWINGING BY THE MINUTE.

THE SENSEX SEEMED TO BE IN PITS BY SHEDDING ALMOST OVER 600 POINTS IN A DAY,RESULTING IN FRANTIC ACTIVITY.MANY NEWBIES OR GREEN HORNS MAY HAVE ALREADY TAKEN A SHOCK OF THEIR LIFE ,BUT THE BULL IS AGAIN BACK IN THE RING WHICH MAY EASE MANY TENSE NERVES. AS MENTIONED EARLIER THE DWINDLING MARKET SHOULD BE SEEN AS AN EXCELLENT BUYING OPPORTUNITY AND THOSE WHO
EN CASHED IT WILL SEE THE PROFITS SOON.

A PERFECT EXAMPLE OF THIS CAN BE THE SHARE PRICES OF KOTHARI PRODUCTS (THE MAKERS OF PAN PARAG).IN JULY THE SHARE WAS HANDSOMELY PRICED AT ABOVE Rs 1100/- WHILE THE DELUGE HAS LEFT IT WITH A VALUE OF Rs 780/- ONLY.NOW THE JULY BULL RUN HAS GIVEN A FAIR IDEA ABOUT THE POTENTIAL OF THE SHARE AND IT WON'T BE ALL THAT A BAD IDEA TO TAKE THE PLUNGE RIGHT NOW .

I STILL INSIST THAT YOU USE THE INVEST LOGIC WE DISCUSSED BEFORE TO PICK YOUR SHARES.ONE MORE THING YOU SHOULD CONSIDER IS THE DURATION OF YOUR INVESTMENT . WHETHER YOU WISH TO HAVE A LONG TERM OR SHORT TERM INVESTMENT DOES AFFECT THE SHARES YOU BUY.

A COME-BACK ?

AFTER TWO DAYS OF DELUGE (LAST THURSDAY AND FRIDAY) THE MARKET WAS FINALLY IN THE GREEN YESTERDAY ,THOUGH BY JUST A FEW. MANY FEEL THAT THE CORRECTION WAS DUE AND WE MIGHT HAVE JUST SEEN OFF THE WORST.

THE MARKET WAS PULLED BACK BY MOSTLY TWO BIG EVENTS YESTERDAY
(30TH OF JUNE)

1.RELIANCE ENERGY BAGGED THE SASAN POWER PROJECT .
THE SASAN PROJECT WAS IN THE CENTRE OF CONTROVERSY THIS WEEK DUE TO THE DISQUALIFICATION OF LANCO WHO WAS THE LOWEST BIDDER FOR PER KILO WATT OF POWER.THE COMPANY WAS LEFT RED IN THE FACE AND SO SPLASHED THEIR BID FOR THE SAME ALL OVER THE NATIONAL NEWS-PAPERS.
RELIANCE ENERGY BEING FROM THE RELIANCE PACK IS PERFORMING QUITE WELL AND MAY BE THE STOCK TO LOOK OUT FOR.

2.THE SECOND MAJOR EVENT WAS HINDUSTAN UNILEVER LTD i:e HUL (FORMERLY HINDUSTAN LEVER LTD) DECLARING A BUY BACK OF ABOUT ONE CRORE SHARES.
THE BUY BACK PRICE WAS FIXED AT Rs 230/- PER SHARE,WHILE THE SHARE WAS AT AROUND Rs 198/- ON THE WEEKEND.
THE PROCEEDINGS GENERATED A HECTIC BUYING SCHEDULE FROM INVESTORS WHICH MADE THE STOCK GO UP BY ALMOST 6%

EVEN THOUGH YOUR SHARES MAY NOT GO FOR Rs 230/- THERES A FAIR CHANCE OF THEM TOUCHING RS 220/- THUS GENERATING YOU PROFITS.
SHORT SELLING HULs SHARES CAN PROVIDE YOU SOME QUICK BUCKS IN THE COMING WEEK OR SO.

HEAVY DISCOUNTS !!!!!!!!!!!!

WELL , WELL, WELL AFTER DAYS AND DAYS OF THE BULL RUN WILL ARE FINALLY SEEING THE BEAR BACK IN ACTION.AND FOLKS IF YOUR HEART BEAT IS SKIPPING DUE TO THE DWINDLING PRICE OF YOUR SHARES THEN JUST LEAVE CAUTION TO THE WIND.

THE MARKET HAD SOARED QUITE HIGH AND WAS CERTAINLY EXPECTING A CORRECTION.THE WESTERN MARKETS TOO INFLUENCED HEAVILY AND SO WE ARE SEEING THE DECLINE.

BUT IF YOU HAVE THE INSTINCTS THEN YOU MAY REALIZE THAT THIS IS A GREAT OPPORTUNITY TO BUY MANY SHARES AND THAT TOO AT A DISCOUNTED PRICE .THE MARKET CERTAINLY WILL BOUNCE BACK VERY SOON. AS I HAVE MENTIONED PREVIOUSLY ALWAYS BUY AT LOWER PRICES , IT EARNS YOU GOOD MARGINS.

THE SENSEX IS EXPECTED TO TOUCH ATLEAST16500 BY THE FIRST QUARTER OF 2008 AND YOU CAN EASILY CASH ON . THE POINT LIES IN BUYING SHARES EVERY TIME THE MARKET DECLINES AND THEN SELL THEM WHENEVER IT SOARS.

*** A WORD OF CAUTION THOUGH, BUY THE SHARES WHEN THEY START SHOWING SIGNS OF BOUNCING BACK AGAIN,THIS REDUCES THE RISK INVOLVED ***

BLUE CHIP

TODAYS QUESTION IS "DO YOU HAVE A BLUE CHIP IN YOUR PROFILE ?"
BY BLUE CHIP I DON'T MEAN THE SHARE OF BLUE CHIP COMPANY , BUT A TRUMP CARD IN YOUR SLEEVE.DO YOU HAVE A SHARE WHICH IS AN ACE AND DELIVERS MOST OF THE TIMES GIVING YOU GREAT RETURNS.
IF THE ANSWER IS 'NO' THEN ITS TIME YOU TRACK DOWN ONE SUCH SHARE AND BUY IT AT THE EARLIEST.

WHAT QUALITIES SHOULD YOU LOOK IN TO GRAB YOUR OWN BLUE CHIP ?
1.THE SAFEST WAY WOULD BE TO SHORT-LIST THE BEST PERFORMERS IN VARIOUS SECTORS.
2.JOT DOWN THERE CURRENT PRICE RANGE , SEE HOW WELL THEY FIT YOUR BUDGET.
3.TRACK DOWN THEIR PERFORMANCE FOR AT LEAST THE PAST ONE YEAR.
4.RESEARCH ITS AREA OF OPERATIONS AND READ EVERY POSSIBLE DEVELOPMENT NEWS RELATED TO THEM.
5.JUST IN CASE ANY OF YOUR FRIEND/RELATIVE HAS INVESTED IN THESE SHARES,ASK THEM FOR THEIR FRANK OPINION.
6.CONSULT YOUR BROKER FOR THE SAME.

IN FACT I WOULD SUGGEST THAT ONE SHOULD TRY TO HAVE MORE THAN ONE BLUE CHIP SO THAT YOUR MAJOR INVESTMENT KEEPS ON GETTING YOU GREAT PROFITS.

FOR STARTERS I HAVE A LIST OF VARIOUS SECTORS AND THE RESPECTIVE BEST PERFORMERS.
1.INFORMATION TECHNOLOGY: INFOSYS , MINDTREE
2.INFRASTRUCTURE : DLF ,UNITECH, PARSHVANATH DEVELOPERS
3.ENGINEERING : L&T, PUNJJ LLYOD
4.AUTOMOBILE : MAHINDRA & MAHINDRA, BAJAJ, TELCO
5.ENTERTAINMENT : ADLABS, BALAJI TELEFILMS
6.BANKING : ICICI , SBI
7.TELECOMMUNICATION : BHARTI AIRTEL, RELIANCE TELECOM
8.FMGC : BRITANNIA , KOTHARI PRODUCTS
9.METALS : TATA STEEL, JINDAL GROUP
10. PHARMA : RANBAXY , ELDER

THE ABOVE LIST IS JUST THE TIP OF THE MOUNTAIN,AND ACCORDING TO YOUR RESEARCH THERE MAY BE MANY MORE SECTORS AND MANY DIFFERENT LEADERS FOR THE SAME.

THE BASIC IDEA IS TO HAVE A BEST PERFORMING SHARE IN OUR PROFILE.

SOME QUERIES

SOME ONE HAS POSTED A QUERY ON MY BLOG AND I AM NOT ABLE TO REACH HIM BY ANY MEANS SO I AM TRYING TO ANSWER HIM IN THIS POST,OBVIOUSLY IT WILL PROVE HELPFUL FOR OTHERS TOO.

THE QUESTION HE/SHE ASKED WAS " WHAT IS A CMP ? ".
HE HASN'T GIVEN THE EXACT REFERENCE BUT IN GENERAL CMP MEANS CURRENT MARKET PRICE, IN OTHER WORDS IT THE PRICE OF THE SHARE AT THAT PARTICULAR INSTANT. NORMALLY THE TERM LTP (LAST TRADING PRICE) IS USED IN THE SAME CONTEXT.

I AM USING THIS OPPORTUNITY TO ANSWER SOME QUERIES MY FRIENDS HAVE RAISED DURING OUR CONVERSATIONS.

1. ONE OF MY FRIEND ASKED WHETHER MONEY PAID WHILE APPLYING FOR AN IPO IS DULY RETURNED IN CASE OF NON-ALLOTMENT OF SHARES

THE ANSWER IS A DEFINITE 'YES'.
YOUR MONEY IS RETURNED CENT PERCENT,THE TRANSACTION BEING CARRIED OUT BY CHEQUE OR ECS IS A REGISTERED TRANSACTION AND SO NO ONE CAN DUPE YOU IN THE SAME.

2.IF I HAVE AN ONLINE ACCOUNT WILL I GET PHYSICAL COPIES OF THE CONTRACT NOTES ?
NO,YOU ARE MAILED THE CONTRACT NOTE NAD THERE ARE AVAILABLE LIFE LONG ON YOUR PORTAL FOR YOU TO COPY AND PRINT THEM ANYTIME.
THE BSE ANS NSE DOES POST YOU THE MONTHLY STATEMENT OF YOUR ACCOUNT.

3.DO I NEED TO PAY TAX ?
YOU SURELY COME UNDER TAX AND YOU CAN'T INVADE IT AS ALL TRANSACTIONS ARE THROUGH CHEQUE OR CASH ONLY.
INTRA-DAY ATTRACTS 30% TAX ON PROFIT , SHORT TERM DELIVERY 10% WHILE LONG TERM DELIVERY IS TAX FREE.
EVEN THE DIVIDENDS ARE TAX FREE.

BUT I WOULD LIKE TO SUGGEST YOU ALL TO KEEP THE THOUGHT OF INVADING TAX OUT OF MIND,BECAUSE IT IS CRIME.

4.WHICH ARE THE HOTTEST SECTORS CURRENTLY ?
CURRENTLY INFRASTRUCTURE,METAL,CEMENT,ENTERTAINMENT AND MEDIA SECTORS AS GOING VERY WELL.



FEEL FREE TO SEND YOUR QUERIES ON belose_sanket@yahoo.co.in

CHECK THIS OUT !!!!!!!!!

THE FOLLOWING MAKES A GREAT CASE STUDY TO PROVE MY POINT OF HOW GOOD AN INVESTMENT SHARES CAN BE

1.DLF IPO OPENED ON 11TH OF JUNE 2007 AND CLOSED ON 14TH JUNE.

2.THE PRICE BAND WAS Rs 500/- TO Rs 550/- PER SHARE.

3.THE SHARES WERE ALLOTED FINALLY AT Rs 525/- EACH.

4.SO 20 SHARES WOULD HAVE COST YOU Rs 10,500/-

5.THE ISSUE GOT LISTED ON THE BSE AND NSE ON 5TH OF JULY

6.AFTER SOME INITIAL VOLATILITY IT IS RISING BY THE DAY.

7.ITS PRICE ON 18TH OF JULY WAS Rs 645/- PER SHARE.

8.SO AVERAGE PROFIT PER SHARE HAS BEEN Rs 645 - 525 = Rs 120/-

9. THEREFORE YOUR TOTAL PROFIT WOULD BE 120 * 20 = Rs. 2400/-

10.SO JUST AN INVESTMENT FOR 40-45 DAYS HAS EARNED YOU ALMOST
20 -22% PROFIT.

NOTHING DRIVES THE POINT BETTER THAN THIS.