How to Invest in Gold?
Thursday, December 12, 2013
How to trade USDINR currency pair? How it reflects the movements in NIFTY? Stock Market?
How to trade USDINR currency pair?
How it reflects the movements in NIFTY?
Stock Market?
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How to find best stocks in Indian Share Market?
How to find best stocks in Indian Share Market?
Gujarat Fluorochemicals
How to find best stocks in Indian Share Market? Gujarat Borosil
How to find best stocks in Indian Share Market? Gujarat Borosil
How to find best stocks in Indian Share Market? Gujarat Ambuja Exports
How to find best stocks in Indian Share Market? Gujarat Ambuja Exports
How to find best stocks in Indian Share Market? CESC Power
How to find best stocks in Indian Share Market? CESC Power
How to find best stocks in Indian Share Market? Kohinoor Foods
How to find best stocks in Indian Share Market? Kohinoor Foods
How to Identify Indian Stocks at lowest price? HBL Power Systems
How to Identify Indian Stocks at lowest price? HBL Power Systems
Wednesday, December 11, 2013
Tuesday, December 10, 2013
Cadila Health Care
Investing in Indian Stock Market?
New to Stock Market?
Fundamental Investment Ideas?
Stocks best for Longterm Investment
Stock Market Investment for Children
Direct investment in Indian Stocks – Recommendations.
Is Mutual Fund Investment is the best?
How to select good shares?
Fundamental Stock Recommendations?
Small shares to invest?
Stocks below Rs.100
Indian Penny Stocks - How to Double the capital ?
Bajaj Electricals
Investing in Indian Stock Market?
New to Stock Market?
Fundamental Investment Ideas?
Stocks best for Longterm Investment
Stock Market Investment for Children
Direct investment in Indian Stocks – Recommendations.
Is Mutual Fund Investment is the best?
How to select good shares?
Fundamental Stock Recommendations?
Small shares to invest?
Stocks below Rs.100
Indian Penny Stocks - How to Double the capital ?
Atul Auto
Investing in Indian Stock Market?
New to Stock Market?
Fundamental Investment Ideas?
Stocks best for Longterm Investment
Stock Market Investment for Children
Direct investment in Indian Stocks – Recommendations.
Is Mutual Fund Investment is the best?
How to select good shares?
Fundamental Stock Recommendations?
Small shares to invest?
Stocks below Rs.100
Indian Penny Stocks - How to Double the capital ?
Amar Raja Batteries
Indian Penny Stocks - How to Double the capital ? Amar Raja Batteries
Indian Penny Stocks - How to Double the capital ? Amar Raja Batteries
Indian Penny Stocks - How to Double the capital ? Alstom TD India
Indian Penny Stocks - How to Double the capital ? Alstom TD India
Indian Penny Stocks - How to Double the capital ?
Indian Penny Stocks - How to Double the capital ?
Rs. 7 to Rs.20/-?????????
Tuesday, December 3, 2013
Reasons for silver to fall?
Bargain hunting in Silver?
An Expert View...............
Silver has witnessed a steep deterioration in November, with prices receding from a high of $22 an ounce and to about $20, currently. Initially, the precious complex was underpinned by dovish stance from the incumbent US Federal Reserve Chairman, Ben Bernanke and Janet Yellen as well (who will replace Bernanke next year). Bernanke stated the US central bank remains committed in respect with persistence of accommodative monetary policy as long as the situation demands.
Akin to Bernanke, Yellen is considered to be dovish by the Street. In this respect, she has already backed persistence of the unconventional $85 billion monthly bond buying programme, as it seems to be the best way to restore the economy back to normal growth. The Fed has a lot of ground to cover in order to buoy fragile labour markets and the broader economy. One can remain lenient on rising prices, provided it increases output and in the process mitigates unemployment.
Prevalent inflation rate in the US remains well below two per cent and implies the government has a lot of cushion and will not mind any short-term spike in consumer prices. Markets were trying to build a perception that Fed probably would maintain the monetary stimulus during the first few quarters of 2014.
However, the minutes of the October 29-30 Federal Open Market Committee policy meeting revealed several Fed officials were looking for ways to scale down the quantitative easing in a short course of time. Reignited concern of tapering by the Fed is currently dominating the market action.
Our stand on this issue is: The central bank cannot afford to taper the monetary stimulus for at least two quarters, considering the fact that budget and debt ceiling deadlines are lingering in the minds of US legislators. Budget Bill needs to be submitted by January 15, 2014, while debt ceiling expires on February 7. High probability of a political deadlock between US Democrats and Republicans may compel the Fed to stand pat on the monetary policy for quite some time. However, one cannot throw caution to the wind as Yellen can turn hawkish, if the situation demands so.
On growth side, the world's largest economy has witnessed some stability during this year. The economy continues to grow at a slow and steady pace, with preliminary third quarter GDP growth quoted at 2.8 per cent. Labour markets have improved, with the unemployment rate declining from nine per cent during September 2011 to 7.3 per cent in October 2013.
US housing industry has bottomed out and automobile markets remain robust. Consumer spending has also done reasonably well. These factors have convinced some Fed members that the time was apt to scale down the monetary aid. Nevertheless, jury is still out on the Fed's course of action.
Although there is ambiguity on the duration of the bond buying programme, we remain bearish on silver prices looking forward. The white metal is struggling amid uninspiring investment demand, whereby outflows remain consistent from the world's largest ETFs. On speculative front as well, non-commercials have decreased bullish bets on COMEX silver futures and options to a three-month low. Funds and money managers have clearly shown a nominal interest in most commodity investments, influenced by slower economic growth across the globe. In addition, subdued tone in the non-ferrous metals pack has added insult to the injury.
We have to understand that silver is more of an industrial metal rather than a precious metal. The newly proclaimed reforms from the just concluded Communist Party meeting in China imply tighter credit, higher interest rates, lower debt levels, strengthening yuan and reducing government aid for state owned enterprises. This will probably lead to slower Chinese economic growth over the short-term, which has negative connotations for the industrial metals pack as a whole. On price outlook, recent violation of $20.5-support level (on a two weekly closing basis) has paved the path for further weakness till $18 (a three-year low).
An Expert View...............
Silver has witnessed a steep deterioration in November, with prices receding from a high of $22 an ounce and to about $20, currently. Initially, the precious complex was underpinned by dovish stance from the incumbent US Federal Reserve Chairman, Ben Bernanke and Janet Yellen as well (who will replace Bernanke next year). Bernanke stated the US central bank remains committed in respect with persistence of accommodative monetary policy as long as the situation demands.
Akin to Bernanke, Yellen is considered to be dovish by the Street. In this respect, she has already backed persistence of the unconventional $85 billion monthly bond buying programme, as it seems to be the best way to restore the economy back to normal growth. The Fed has a lot of ground to cover in order to buoy fragile labour markets and the broader economy. One can remain lenient on rising prices, provided it increases output and in the process mitigates unemployment.
Prevalent inflation rate in the US remains well below two per cent and implies the government has a lot of cushion and will not mind any short-term spike in consumer prices. Markets were trying to build a perception that Fed probably would maintain the monetary stimulus during the first few quarters of 2014.
However, the minutes of the October 29-30 Federal Open Market Committee policy meeting revealed several Fed officials were looking for ways to scale down the quantitative easing in a short course of time. Reignited concern of tapering by the Fed is currently dominating the market action.
Our stand on this issue is: The central bank cannot afford to taper the monetary stimulus for at least two quarters, considering the fact that budget and debt ceiling deadlines are lingering in the minds of US legislators. Budget Bill needs to be submitted by January 15, 2014, while debt ceiling expires on February 7. High probability of a political deadlock between US Democrats and Republicans may compel the Fed to stand pat on the monetary policy for quite some time. However, one cannot throw caution to the wind as Yellen can turn hawkish, if the situation demands so.
On growth side, the world's largest economy has witnessed some stability during this year. The economy continues to grow at a slow and steady pace, with preliminary third quarter GDP growth quoted at 2.8 per cent. Labour markets have improved, with the unemployment rate declining from nine per cent during September 2011 to 7.3 per cent in October 2013.
US housing industry has bottomed out and automobile markets remain robust. Consumer spending has also done reasonably well. These factors have convinced some Fed members that the time was apt to scale down the monetary aid. Nevertheless, jury is still out on the Fed's course of action.
Although there is ambiguity on the duration of the bond buying programme, we remain bearish on silver prices looking forward. The white metal is struggling amid uninspiring investment demand, whereby outflows remain consistent from the world's largest ETFs. On speculative front as well, non-commercials have decreased bullish bets on COMEX silver futures and options to a three-month low. Funds and money managers have clearly shown a nominal interest in most commodity investments, influenced by slower economic growth across the globe. In addition, subdued tone in the non-ferrous metals pack has added insult to the injury.
We have to understand that silver is more of an industrial metal rather than a precious metal. The newly proclaimed reforms from the just concluded Communist Party meeting in China imply tighter credit, higher interest rates, lower debt levels, strengthening yuan and reducing government aid for state owned enterprises. This will probably lead to slower Chinese economic growth over the short-term, which has negative connotations for the industrial metals pack as a whole. On price outlook, recent violation of $20.5-support level (on a two weekly closing basis) has paved the path for further weakness till $18 (a three-year low).
Commodities Trading Strategies. How to trade MCX Futures? What is positional Trading? What is Trend Trade? How to trade Silver ?
Commodities Trading Strategies. How to trade MCX Futures? What is positional Trading? What is Trend Trade? How to trade Silver ?
Commodities Trading Strategies.
How to trade MCX Futures?
What is commodities positional Trading?
What is commodities Trend Trade?
How to trade Silver ?
How to make money in commodities?
What is the best time to enter in commodities?
Nifty Trading Strategies. How to trade Nifty Futures? What is positional Trading? What is Trend Trade?
Nifty Trading Strategies. How to trade Nifty Futures? What is positional Trading? What is Trend Trade?
Buying PUTs are not advisable at this juncture, because they are trading at high premium. Better Short Nifty or Minifty................
Buying PUTs are not advisable at this juncture, because they are trading at high premium. Better Short Nifty or Minifty................
Tuesday, November 26, 2013
How to make profits in NIFTY and Currency Options?
How to make profits in NIFTY and Currency Options?
This is the exact strategy for making money in NIFTY futures and Currency Derivatives. I hope this trade has given you clear idea about the relation between NIFTY and USDINR currency derivatives. Please mail to me for making money.
Tuesday, November 19, 2013
NIFTY entry and USDINR Entry has been initiated
NIFTY entry and USDINR Entry has been initiated exactly at 6198 and currency long
Sunday, November 17, 2013
Friday, July 5, 2013
Tuesday, June 11, 2013
USDINR all time low- Currency Depreciation - Rupee Falling - What to do? Currency Futures Options Trading
USDINR all time low- Currency Depreciation - Rupee Falling - What to do? Currency Futures Options Trading
Why rupee is falling? Flow chart to understand. The causes, The results, Important to remember
Why rupee is falling? Flow chart to understand. The causes, The results, Important to remember
Why rupee is falling?
Rupee is at record low.
Everybody wants to know why this happens.
I would like to explain the facts in a flow chart, so that
it is very very simple to understand.
- FIIs started investing in India, because their jobs market was worst.
- US central bank proposed for Quantitative Easing 3 Process, means, printing more dollars ($) and bring into circulation.
- This results in increasing inflation in USA. Hence the real interest rate will be negative. That is why gold was also increased.
- Hence, they started investing in India where interest rates were attractive. They purchased Indian Government Bonds.
- Now, US jobs market is showing good improvement, new jobs are being added every week by week.
- This lessens the chance of implementing the QE. Means inflation will come down and interest rates will be high.
- Hence they resorted to selling in Indian Bond markets.
- Selling in domestic markets means they get sale proceeds in Indian rupee, they sell INR and purchase $Dollar. This selling pressure cause fall in INR value and appreciation in USD.
I hope this is clear. I would like to depict the same
information in charts so that its more easy to understand.
- FIIs started investing in India, because their jobs market was worst.
UNITED STATES NON
FARM PAYROLLS
Non
Farm Payrolls in the United States increased to 175 Thousand in May of 2013
from 149 Thousand in April of 2013. Non Farm Payrolls in the United States is
reported by the Bureau of Labor Statistics. Historically, from 1939 until
2013, the United States Non Farm Payrolls averaged 118.38 Thousand reaching
an all time high of 1114 Thousand in September of 1983 and a record low of
-1966 Thousand in September of 1945. Nonfarm payrolls is an employment report
released monthly, usually on the first Friday of every month, and heavily
affects the US dollar, the bond market and the stock market. Current
Employment Statistics (CES) program from the U.S. Department of Labor Bureau
of Labor Statistics, surveys about 141,000 businesses and government
agencies, representing approximately 486,000 individual work sites, in order
to provide detailed industry data on employment, hours, and earnings of
workers on nonfarm payrolls. This page includes a chart with historical data
for the United States Non Farm Payrolls
|
- US central bank proposed for Quantitative Easing 3 Process, means, printing more dollars ($) and bring into circulation. The more money in circulation, the less value for currency.
- This results in increasing inflation in USA. Hence the real interest rate will be negative. That is why gold was also increased. People consider investing gold is good hedge against inflation.
- Hence, they started investing in India where interest rates were attractive. They purchased Indian Government Bonds.
- Now, US jobs market is showing good improvement, new jobs are being added every week by week.
- This lessens the chance of implementing the QE. Means inflation will come down and interest rates will be high.
- Hence they resorted to selling in Indian Bond markets. Indian bond market rates were falling.
INDIA GOVERNMENT BOND
10Y
India's
Government Bond Yield for 10 Year Notes declined 35 basis points during the
last 30 days which means it became less expensive for India to borrow money
from investors. During the last 12 months, India government bond yield
declining 1.12 percent. Historically, from 1994 until 2013, India Government
Bond 10Y averaged 9.3 Percent reaching an all time high of 14.8 Percent in
April of 1996 and a record low of 5.0 Percent in October of 2003. Generally,
a government bond is issued by a national government and is denominated in
the country`s own currency. Bonds issued by national governments in foreign
currencies are normally referred to as sovereign bonds. The yield required by
investors to loan funds to governments reflects inflation expectations and
the likelihood that the debt will be repaid. This page includes a chart with
historical data for India Government Bond 10Y.
|
- Selling
in domestic markets means they get sale proceeds in Indian rupee, they
sell INR and purchase $Dollar. This
selling pressure cause fall in INR value and appreciation in USD. They started investing in thier own country. The following chart evidences the bond rates increasing in USA.
The global market for the rupee now clocks a turnover of $70 billion a day. To
make a significant dent in the price, RBI would need to trade at least $3-7
billion per day. These are large numbers that would quickly exhaust reserves or
distort reserve money.
Please write to indianinvestorswelfareclub@gmail.com
for further information.
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