Stock Market timings.

Stock Market timings.

INDIAN MARKETS

Trading on the Indian equities segment takes place on all weekdays.

There is No trading on Saturday, Sunday and Published Indian Stock Market Holidays declared by the Indian Stock Exchange in advance.

• The Market Opens at: 09:15 hours and Closes at: 15:30 hours
• Pre open trade session will be from 09:00 ~ 09:15 hours

Pre-open trade session is a 15 minute trade session from 9:00AM to 9:15AM on the 50 stocks of NIFTY index .

Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15AM till 3:30PM.

WHY PRE MARKET SESSION?

In case a major event or announcement comes overnight before market opens, such events are likely to bring heavy volatility on the next day when the market opens. Special events include merger and acquisition announcements, open offers, delistings, debt-restructurings, credit-rating downgrades etc which may have a deep impact on investors wealth. In order to stabilize this, pre open call auction is conducted to discover the right price and to reduce volatility.

BREAK-UP OF 15 MINUTES

The 15 minutes of pre open session is broken into 8 + 4 + 3.

The first 8 minutes:  During this session investors can place/ modify /cancel orders on the basis of which the exchanges would determine the rates at which trading would happen. Orders are not accepted after this initial 8 minutes.

Limit orders will get priority over market orders at the time of execution of trades .All orders shall be disclosed in full quantity, i.e. orders where revealed quantity function is enabled, will not be allowed during the pre-open session

In the next four minutes, orders are matched, executable price is discovered and trades are confirmed. The next 3 minutes is just a buffer period for transmission from pre-market session to normal market session.

PRICE DISCOVERY

The equilibrium price shall be the price at which the maximum volume is executable. That is, the price at which there are maximum number of buy orders and sell orders.

In case of more than one price meets the said criteria, the equilibrium price shall be the price at which there is minimum order imbalance quantity (unmatched qty).

Further, in case more than one price has same minimum order imbalance quantity, the equilibrium price shall be the price closest to previous day’s closing price. In case the previous day’s closing price is the mid-value of a pair of prices which are closest to it, then the previous day’s closing price itself shall be taken as the equilibrium price. In case of corporate action, previous day’s closing price shall be the adjustable closing price or the base price.

• If the price is not discovered in pre-open session then the orders entered in the pre-open session will be shifted to the order book of the normal market following time priority. The price of the first trade in the normal market shall be the opening price.
• Price band of 20% shall be applicable on the securities during pre-open session.
• In case the index breaches the prescribed threshold limit upon the closure of pre-open session, the procedure as prescribed in SEBI Circular Ref. No.SMDRPD/Policy/Cir-37 /2001 dated June 28, 2001 shall be applicable from the time continuous normal market opens.
• what the circular says is about circuit limits. In case of 20% movement in the index, trading will be halted for reminder of the day.

There is also a 15  minute video on this topic by Dr. Sayee Srinivasan , Head Product Strategy, at BSE. Watch it here.

REGIONAL STOCK MARKETS

Apart from the BSE and NSE, there are 21 regional exchanges which open at normal hours 9:15  to 15:30 hrs.

WORLD MARKET TIMINGS

Apart from this, global trends in stocks also affect the Indian market when it opens. Here’s a list of opening time of stock markets around the world.

WORLD STOCK MARKET TIME ACCORDING TO IST.

• Shanghai stock exchange  – Opens at 7.30 Am
• Hong Kong stock exchange -  Opens at 7.55 Am
• Tokyo stock exchange  - Opens at 5.50 Am
• South Korea – Opens at 5.50 Am
• NYSE, New York  – Opens at 8.30 Pm
• NASDAQ  – Opens at 8.30 Pm
• BOVESPA , Brazil – Opens at 7 Pm
• Bogota,  Columbia – Opens at 7 Pm
• Dow Jones – Opens at 7.30 Pm

A sneakpeak on the stock market investment for the beginners

A sneakpeak on the stock market investment for the beginners

When you’re planning to invest in stock market for the first time, it can evoke a combined emotion of exhilaration and intimidation. After the recent economic meltdown, most of the young people are planning their investment to secure their financial future. If you’re planning to invest in stock market, then you need to follow the steps given below.

Here are some of the important tips before you plan to invest in stock market:

1. Research before investment: Make sure you extensively research the market in order to avoid complications in future. Stock trading can be a difficult job; therefore it is advisable to research extensively before investment. If you invest in wrong shares or bonds, then there is a risk of losing your hard earned money. So, the beginners are required to acquire more information before they start investing. If you’re looking for assistance, then you can check different online forums. The financial experts can guide and help you choose the right investment plan for you.

2. Look for an online broker: Make sure you look for a low cost online discount broker if you don’t have yet. In order to invest in stock market, you need a broker. You need to sign up for a traditional brokerage account and it can be cheap to trade online. A proficient broker can help to assist you through the process, especially while buying and selling securities.

3. Keep aside a portion of your savings: When you’re planning for your investment, make sure you set aside a portion of your income for investment purpose. Make sure you start your investment by depositing small amount of money when you’re a beginner. Remember, the money you use for investment is hard earned and you leverage to make more money. Make sure you avoid thinking of investment when you find it difficult to manage your monthly expenses.

4. Determine about different types of securities: Make sure you find about different types of securities you’re planning to trade. There are various types of stock market investment other than the stocks. You can opt for Mutual funds, ETFs and stock options when you’re looking for investment options. You need to search for different types of investment styles you’re interested in before investing.

5. Extensively search for various securities: Make sure you extensively search for different securities when you’re planning to invest in stock market. Once you have completed your first investment purchase, ensure that you look for different securities. Well, the stock market may fluctuate on the basis of the market conditions and over all financial scenario of the company. Make sure you keep a check on the sound investment purchase to monitor the security to review the growth of your investment.

Therefore, you need to keep the above mentioned points in mind when you plan to invest in stock market for the first time.

THEORY OF PRICE GAPS

THEORY OF PRICE GAPS

What is a ‘Gap’ in technical analysis?

A gap is an area on a price chart in which there were no trades. It is easy to see gaps if you take candle stick charts. Let us try to understand gaps in another way. The fluctuations in stock prices are coherent in nature. That means that the price rises or falls gradually.  Thus, in rising scrip, if on one day the low was Rs 100 and the high was Rs 135, on the next day the low would be Rs 130 and the high Rs 140. Here, the low for the next day falls within the high-low range of the previous day. But suppose for the second day, the low was Rs 145 and the high Rs 150. Then, the low for the next day has fallen above the previous day High-Low range, or it was higher than the previous day’s high. So, when one draws bar charts showing High-Lows every day, there would be a discontinuity, termed as a ‘Gap’ in technical theory. An interesting feature of Price gaps is that it gets filled within a short amount of time. That is, the price would come back to fill the price gap of Rs 140 – Rs145, where there was no trade in the previous days.

In simple terms-a gap occurs when the current bar opens above the high or below the low of the previous bar. On a price chart, a space appears between the bars indicating the gap.

Types of price gaps

Gaps can be subdivided into four basic categories:

• Common Gaps
• Breakaway Gaps
• Runaway Gaps and
• Exhaustion Gaps.

Common gaps:

Common gaps are ‘common’ and ‘uneventful’. If a Gap is formed when the markets are moving in a narrow range, it is called a Common Gap.

Breakaway Gaps:

A “breakaway” gap ends a consolidation pattern and happens as prices break out. Often, they would be accompanied by huge volumes. Break-out Gaps are generally not filled for a long time, i.e. in the case of an uptrend, the price does not fall back to wipe off the gains. They may be filled as and when the prices retrace after a substantial up move. If the breakout happens to be a downtrend, the prices may not rise soon to wipe off the loss.

Runaway Gaps:

Runaway gaps are best described as gaps that are caused by increased interest in the stock. For runaway gaps to the upside, it usually represents traders who did not get in during the initial move of the up trend and while waiting for a retracement in price, decided it was not going to happen. Increased buying interest happens all of a sudden, and the price gaps above the previous day’s close. This type of runaway gap represents an almost panic state in traders. Also, a good uptrend can have runaway gaps caused by significant news events that cause new interest in the stock. Runaway gaps can also happen in downtrends. This usually represents increased liquidation of that stock by traders and buyers who are standing on the sidelines. These can become very serious as those who are holding onto the stock will eventually panic and sell – but sell to whom? The price has to continue to drop and gap down to find buyers. So, in either case, runaway gaps form as a result of panic trading.

Exhaustion Gap:

An “exhaustion” gap occurs at the end of a price move. If there have been two or more gaps before it, then this kind of gap should be regarded very skeptically. A genuine “exhaustion” gap is filled within a few days to a week. It is generally not easy to distinguish between the Runaway and Exhaustion Gaps. Experience in reading charts will help in due course. The best clue available is that Exhaustion Gaps are not the first Gaps in the chart, i.e. they follow the Runaway Gaps and usually occur when the runaway Gap is nearing completion. Exhaustion Gaps do not indicate whether the trend will reverse, they only call for a halt in the price movement.
This completes our discussion on gaps. I hope it has filled in some gaps in your trading knowledge. Here are some additional hints :-

• A gap has relevance only to a daily or short term trader.
• On spotting a gap in a daily chart, immediately question yourself as to which of the four kinds of gaps it is.
• Generally, short-term trades should be in the direction of the gap. The larger the gap and the stronger the volume, the more likely it is prices will continue to trend in that direction.
• A “breakaway” gap provides an immediate buy point, particularly when it is confirmed by heavy volume.
• The third upside gap raises the possibility of an “exhaustion” gap. Traders should look for the gap to be filled in approximately one trading week. If the gap is filled and selling pressure persists, then that issue should be shorted. If the gap is the third one to the downside, then traders should be alert for a buy signal.
• Gaps are powerful signals to make profits if used intelligently. They should not be acted on in isolation. View the gap within the context of the other technical results.

Stock markets – risky; isn’t it?

Stock markets – risky; isn’t it? 

  You’ve probably lost lot of money in it and may be you have lot of friends who have also lost a couple of lakhs in it – right? But, think again -How did you lose money? You were afraid of venturing in it on your own; hence handed it over to “experts” or you took advice (a.k.a “tips”) from your broker, neighbor…Etc… Without learning the basics.

 The dangers of investing recklessly..

Investors should be aware of risks that accompany when you take uninformed decisions with your hard earned money. Share prices can rise and fall rapidly and it can even wipe off your capital in no time, directly affecting your wealth targets and indirectly-even your family and health. Most of the risks involved with stock investing stem from poor research on the part of the investor. Share trading advice from your friend or next door neighbor are unlikely to be properly researched, therefore if you blindly act on such tips you have only yourself to blame.

Value the shares and buy it at the right price.

You need to buy a stock at the right price. By paying close attention to the price you pay for a stock, you minimize your risk, which helps maximize your total returns. If you find great companies, value them carefully, and purchase them only at a discount to a reasonable valuation estimate, you’ll be fairly well insulated against the vicissitudes of market emotion.

Buying a stock at the wrong price leaves a very bitter aftertaste, so much so that one may vow never to enter the stock market ever again. If you look at the past data, you’ll see that the stock market has given many opportunities to buy wonderful shares at throw-away prices; it has also given opportunities to sell your holdings at unbelievably high prices.

Why valuation is the Key.

Knowingly or unknowingly, you’ve valued everything you bought. Your house, your car.. You bought it after considering whether it’s really worth at that price. Dint you put in your best efforts to see that you get it at the lowest price possible? Then why not investments?

Intelligent investment needs a lot of effort. If you want to invest in stocks, the first thing to look out for is its valuation (and not whether the Sensex is moving up or down!). Stock valuation is the tool for picking out stocks that will bring you good returns. Valuation of a stock means the price or `actual’ value it holds.

Owning stocks of a company  grants you claim on everything that the company owns. So, assessing the value of the company, the profit it is generating and how beneficial it can prove to you, is a worthwhile enterprise. Valuation can prove to be especially beneficial for middle class investors, as they have limited resources to overcome losses incurred in the stock market.

Hence, valuation can be considered the key factor in buying stocks. Just as one assesses the value of anything one buys on the basis of a specified standard, stocks too need to be valued to determine whether the investment will bring you returns or not..

Highest INTEREST RATES on FD(fixed deposite)

Highest INTEREST RATES on FD(fixed deposite)

Hi there,

This post is in response to a reader’s enquiry about the best interest rates for fixed deposits in India right now.

Here are the details-

BELOW 1 YEAR

• South Indian bank – 10% for 300 days. For senior citizens, 10.50%.

ABOVE 1 YEAR BUT LESS THAN 2 YEARS

• Lakshmi Vilas bank – 10.50%. For senior citizens, 10.75%
• Tamilnad Mercantile bank – 10.25%. For senior citizens, 10.50%
• The Ratnakar bank – 10%. For senior citizens , 10.50%
• Karur Vysya bank – 10%. , For senior citizens , 10.50%
• Catholic Syrian bank- 9.90%. For senior citizens , 10.40%
• City union bank -10%, For senior citizens, 10.25%

ABOVE 2 YEARS BUT LESS THAN 3 YEARS

• City Union bank – 10% , For senior citizens, 10.25%

• Catholic Syrian bank – 10.25%.For senior citizens,  10.75%

ABOVE 3 YEARS BUT LESS THAN 5 YEARS

• Dhanlakshmi bank – 10.10% , For senior citizens 10.60%
• Tamilnad mercantile bank – 10% , For senior citizens 10.25%

ABOVE 5 YEARS

• Tamilnad mercantile bank – 10% , For senior citizens 10.25%
• Catholic Syrian bank – 10%. For senior citizens , 10.50% ( For 91 months)

I hope the information is useful.

Have a nice day !!

SBI - SHOULD YOU INVEST IN THIS STOCK?

SBI - SHOULD YOU INVEST IN THIS STOCK?

There are lots of queries about the valuation of SBI – India’s largest bank by any parameter. The ‘SBI group’ which consists of many subsidiaries and joint ventures both from banking and non banking sectors is the largest loan provider for people and business in India.
According to the SBI’s website (which is not updated) the bank has 4713 branches in India, operates 21,000 ATMs and has 180 offices in 34 countries as on June 30^th 2011. Logically, the bank holds high amount of CASA (Current Account Savings Account) deposits which carries lower interest liability. This has helped the bank to give loans at the most competitive rates in India.

Two main drawbacks: With the deregulation of savings bank interest rates by the RBI, the bank will be under pressure to pay better rates of interest to keep its customers happy. Banks like Yes bank are already giving 4% or more for money deposited in savings bank account. To be in the race, SBI will also have to pay high interest for their CASA deposits. In short, from now on, what was considered as the greatest advantage of SBI would turn out to be It’s greatest disadvantage.
The second factor that may work against this huge bank is that the new banking license norms would bring in more players into the banking sector which would initiate cut throat competition in the banking sector (Something similar to the tariff war we saw between telecom companies). How far SBI is prepared to face this remains a big question.
More number of branches also means that there is a huge number of work force to be maintained and of course, high operating expenses. The last few years’ financials also show questionable asset quality.

Two main advantages: first, size. With many subsidiaries and a variety of financial services under its kitty (insurance, mutual funds, merchant banking, credit cards, factoring, stock broking, pension fund management etc) and with spreading business in every nook and corner of India, it would be hard to beat this bank in terms of revenues.
Second – Government of India’s holding of approximately 60% in the bank. SBI always stands in an advantageous position with the government being its main promoter.

Our suggestion: Looking at the financials of the bank for the last 6 years, we estimate the bank’s share value at Rs 2450. So, to buy the stock for long term the stock must be bought only at 30% discount or below. That means, at Rs 1700 and below. At the current market rate (Rs 2205) the stock is in midway between the value zone and over priced zone and hence, we do not suggest exposure in this stock for the long term. The current momentum many take the stock beyond Rs 2450 which means that the stock has the capacity to generate approximately 10% to 15% return.

This is our suggestion. Readers are welcome to share their thoughts for the benefit of others

stock picks for MARCH

Stock picks for MARCH

Now that the finance minister has made his move, the stock markets have responded with a crash in prices.  Now, it’s time for us to see if there are any good stock picks in the market.

Large caps:

Punjab national bank: We had recommended to buy PNB at Rs 770 and below in November 2012. The stock then rose to Rs 922.10 on 31^st January 2013, giving a profit of approximately 20% in 3 months. The stock is now trading at Rs 788 and can be considered for accumulation again.

BHEL: Another stock that we recommended last time was BHEL. At the current market price of Rs 201, we strongly recommend to buy this stock which is trading at an attractive price for investors who are targeting a high return in the long term.

Sesagoa: This iron ore extracting company is going to be merged with sterlite industries and will widen it’s portfolio to include iron ore, oil, zinc, lead, silver, aluminimum, copper etc. The details of this meger are already known in the market circles. At Rs 153.80, we estimate that the stock is trading at a 60% discount compared to the value it’s going to create when the merger formalities will be completed.

NMDC: the giant iron ore extracting company currently trades at Rs 138.00. The iron ore industry is cyclic in nature and reduced demand for iron ore especially from huge markets like china has resulted in this stock trading well below its actual worth. At the current rate, we estimate that NMDC trades at 55% discount and can be considered for long term investments. The cash rich, zero debt company has also made several overseas acquisitions. As the demand for iron will definitely increase in the coming years, this stock is all set to scale highs. We recommend long term investment in NMDC at Rs 138nd below.

GAIL: Another large cap that can be recommended for long term investment is GAIL. There is steady demand for natural gas and the company is a major player in this segment. Looking at the past datas, we observe that the company has been growing at a steady pace although there is some decline in the net profits over that last few years due to debts. At the current market rate of Rs 332, long term investors can start accumulating this stock in declines. The company also aims to carry out heavy expansion plan in the coming years which means that it may resort to more debt funds for financing its capital requirements. This, if done, can further bring down the net profit of the company in the coming years. Another factor to be considered is that this stock is ideal only for long term investment since all it’s projects are long term in nature and the success of such projects may take time to reflect in it’s bottom line.

Midcaps:

Crompton greaves: we had recommended this stock earlier at Rs 113 or below. The stock now trades at Rs 94.25 and can be recommended for investment with a long term point of view.

Indian bank: Indian bank is a public sector bank which falls in the mid cap segment. It has more than 2000 branches and has major presence in south India. It also has overseas branches in Sri Lanka and Singapore. However, the revenues from overseas branches are nothing much to talk about as it represents only approximately 2% of its total revenues. The bank, which is more conservative in nature of operations, has been growing steadily in the past. At Rs 174, the stock is an attractive investment. Further declines are possible but will not be a use of worry since it’s trading at an estimated discount of 40%. The stock has the potential to move up to Rs 290 in the medium term.

Small cap:

JBF industries: JBF is the market leader in polyester chip manufacturing and supply. It manufactures a wide variety of polyester chips used in textiles, bottle, films etc. the company has so far grown at a fast pace and is poised to become the only company with a diversified portfolio in polyester chip manufacturing. Apart from its manufacturing facilities in India, it also has a manufacturing unit in UAE and it has also plans to setup a unit in Belgium by the end of 2014. When all these come together, the future of the company looks bright. However, since a lot of capital expenditure is being incurred, the company meets these requirements by raising huge debts. Increasing debts will affect the bottom line of the company and it may take some time for the company to pay off its debts. At the current market rate of Rs 105.50, the stock looks attractive for long term investment. It’s a small cap and hence, all those risks that come attached to small caps are applicable here too.

ALL THE BEST FOR THE COMING MONTH!