June is coming to an end and it has been good month as far as FII flows are concerned…

FII flows in cash market

The inflows of Rs. 1966 crores in cash market looks impressive but what is disturbing is recent outflows. Yesterday, FIIs sold quite aggressively. So, on an overall basis for the month – the data looks impressive but the near term trend still seems indecisive.

FII flows in Index Futures

FIIs aggressively net bought index futures this month.

Courtesy : stateofthemarket.net/

P/E Ratio : P/E ratio is a reflection of the market’s opinion of the earnings capacity and future business prospects of a company. Companies which enjoy the confidence of investors and have a higher market standing usually command high P/E ratios. This ratio indicates the extent to which earnings of a share are covered by its price. If P/E is 5, it means that the price of a share is 5 times its earnings. In other words, the company’s EPS remaining constant, it will take you approximately five years through dividends plus capital appreciation to recover the cost of buying the share. The lower the P/E, lesser the time it will take for you to recover your investment. Its one of the most imortant Ratios you can look at. 

BUY Signal : Once PE goes below 14.
When NIFTY PE goes below level of 14, start accumulating the stocks and invest your money in 4-5 installment over some months. Make sure that markets are going up and down and moving in a range. If PE goes below 11, its a must BUY!!

SELL Signal : Once PE crosses above 22.
Part book the profit once NIFTY PE crosses above 22, PE crossing above 22 does not mean markets has to fall, its only an indication that markets may be overbought and now smart people will start selling there shares to mad public. If PE crosses above 25, its a must SELL!!

What Does Price-To-Book Ratio - P/B Ratio Mean?
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

What Does Dividend Yield Mean?
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.


courtesy : marketpulse-snp.blogspot

Reality of the Market

Reality of the Market

Majority of the traders fail because they do not understand the reality of the market.
Most of us are not even playing the right game.
Materials available over the net and the books written by failed traders teach technical analysis patterns
and indicator based signals and we assume this is the reality.

The indicator based TA signals and price patterns are illusions.
These are only effects. Cause is something else. Then what is the cause ? Price .Indicators
and  patterns are derivatives of price. Then price is the cause and TA patterns the effect.
So we need to focus on price.

Do not reach a conclusion so fast. Price is another effect
and there is something that makes prices move in markets.
What it is ? It is the order flow. Orders make the market move.
 If the net order flow is on the buy side market will go up .
 If net order flow is on the sell side market will drift down.

Then order flow is the real thing  that moves the market. Oh No .
Dig a little more deeper. Yeah. got it . It is the people who act in the market by feeding their orders.
When people start bidding higher,price will move up
when they start lowering their offers price will start moving down.

A little more deeper. When people are going to bid or offer aggressively ?.
 It is when they feel the urgency and desperation to transact. This is when they become emotional..
So it all comes down to the emotion of  the market participants.
Fear and greed are the most powerful emotions that can force people to act.

If you are able to identify the price levels where a large enough group of traders succumb to these emotions 
and  able to act there without hesitation , you will win in this game. 
Trading is nothing but engaging the other party. Encashing  their fear and greed.

Suppose you are in a shopping mall. People will  be moving  around in a random manner.
 Then you hear an announcement that the first ten purchasers of  a particular item will get another free.
 You can see  so many people rushing to that counter .That is greed in action.
Then you go and press the fire alarm button.Everybody except you will rush to the exit. Fear in action.
Now you know it. Fear is much more powerful emotion than greed.

Courtesy :  NIFTYNIRVANA.BLOGSPOT.IN

Nifty is between 5200-5050.Today it broke 5150,
but in overbought zone.can see some -ve by tmrw.
Until 5200 stands on closing basis mkt will not be BULL.
They will make all shorts to be covered & will let mkt Down

RANGE BOUND

nifty will be in the range of 5050-5190
intermediate sup @ 5100-5070-5050
& Res @ 5150-5190

Bearish Pattern

BEARISH EVENING STAR Type: Reversal Relevance: Bearish Prior Trend: Bullish Reliability: High Confirmation: Suggested No. of Sticks: 3