Extending previous sessions, strength, market ended with a bang with great support from Realty, banks, auto, IT, Pharma and infra stocks which led Sensex reclaiming the 28,000 mark and the Nifty settling above 8,500, on expectations of a rate cut by the Reserve Bank of India.
ABOUT JULY WPI:
July WPI dips for the or ninth consecutive month in July to touch -4.05 per cent against a drop to -2.4 percent in June. For the first time in these many months, prices of food items also fell.
HEADLINES FOR THE DAY:
- Tata Shares were in focus as Tata sons to increase AirAsia India stake to 41%.
- Adani Port shares gains and hits fresh high on inclusion in Nifty.
- Indiabulls Housing Finance surged as stock will be added to MSCI ACWI Value Index.
- Sun Pharma moved higher on hopes paralysis drug may boost sales.
- Jindal Steel shares tanks and hits fresh low on MSCI exclusion.
- PC jeweler shares dip as much as in a positive market on the back of huge trading volumes.
- Natco Pharma share gains after the company said that FIPB (Foreign Investment Promotion Board) had given the nod for FDI (Foreign Direct Investment) related proposals.
- Glenmark shares rallied as stock will be added to the MSCI Emerging Markets Index.
- Ashok Leyland said that company to set up three or five assembling plants outside India.
- Tata Steel today reported that company's shareholder gives nod for raise Rs. 10,000 crore.
- Oriental Bank today cuts base rate to 9.90%, which will be effective from Aug 17 2015.
RESULTS BLOG:
- BPCL reported a 95 % rise in Q1 net profit, which stood at Rs 2376 crore, total income falls in Q1 by 22.2% at Rs 51966 crore against Rs 66794 crore for the same quarter last year.
- Jet Airways Q1 net profit stood at Rs 222 crore on the back of exceptional gain against the loss of Rs 218 crore, the company earned an exceptional gain of Rs 128 crore.
- GMR Infra's net shrinks to Rs 429 crore against loss of Rs 593 crore compared on a yearly basis, Net sales for the quarter, up 8.47% at Rs 2928.22 crore from Rs 2699.38 crore.
- PFC (Power Finance Corporation) Q1 profit up by 1576 crore reported as expected Q1 numbers. Profit for the first quarter impacted by higher other expenses and tax cost.
- SAIL reported loss for the first quarter, which stood at Rs 321.64 crore against the profit of Rs 321.64 crore on account of lower realization, higher royalty and power prices.
- Reliance Capital reported a 22.5 percent jump in the first quarter at Rs 201 crore. Total income also up at Rs 2144 crore.
- Hindalco hit fresh low on NSE after reported 67 percent fall in Q1 net profit, which stood at Rs 107 crore.
- Balaji Telefilms net profit tanks by 80.28percent on the back of poor sales, profit stood at Rs 2.08 crore.
- Rajesh Exports today reported robust Q1 numbers, net profit rise over-two fold to Rs 237 crore on the back of higher sales.
CALLS FOR NEXT TRADING SESSION:
- Marksans Pharma saw pull back from near around its support, more buying could be seen in the next trading session; Buy above 109 targets 110.10/111.20/112.30 SL 107.90.
- Chennpetro EQ gains in an early trade and consolidate for the whole trading session despite of Nifty gains 162 points, Buy above 246.50 targets 249/251.50/254 SL 243.90.
WEEKLY CALLS:
- LAOPALA EQ is consolidating near its fresh, high breakouts could be seen in next coming sessions. Buy above 546.50 targets 557.40/568.60 SL 535.50.
- SCI EQ is heading towards its fresh high, more buying could be seen if able to give breakouts and sustain above it. Buy above 80 targets 81.60/83.30 SL 78.
DAILY CALLS UPDATE:
- GLENMARK EQ BUY CALL FINAL TARGET ACHIEVED (Buy above 1068 targets 1078.60/1089.50/1100.40 SL 1057.)
- NUCLEUS EQ BUY CALL 2ND TARGET ACHIEVED. (Buy above 300 targets 303/306/309.10 SL 296.90.)
WEEKLY CALLS UPDATE:
- STAR EQ BUY CALL DIDN’T EXECUTED (Buy above 1349 targets 1376/1403.50 SL 1322.)
- IBULHSGFIN EQ EQ BUY SL TRIGGERED. (Buy above 810 targets 826.20/842.70 SL 793.50.)
Many thought arises in the mind when a new trader comes in the field of trading, many questions such as what is stock?. How will take the first step in this market? How much should I invest in marketing? Here we are explaining all the queries related to trading by which trader will have a clear view about stock trading.
A stock option is an agreement between two parties where one is the stock option buyer (i.e. Holder) have the right to buy (but not the compulsion) to buy/sell definite numbers of shares of a basic stock on a fixed price value from/to the stock option seller (writer) within a definite period of time of the contract with expert Stock Tips. Price value deference makes profits or loss of the traders. Below the basic stock related terms are shown.
Option Type & Option Contract Specifications:-
The option in the trading makes a very supportive role to the traders; it provides variation in trading and makes lot of profits with the help of superior Option Tips. There are two types of stock options available puts and calls. Call options mean the buyer has the right to buy the basic stock, whereas stock put options provide the facilities to sell them. The given terms are explained in an option contract.
Strike Price:-
It is the price at which the basic underlying asset is to be purchased or sold if the option contract is terminated. It is related to the market value of the underlying asset concern the value of the option and its main role is in the evaluation of the option's premium.
Premium:-
In exchange for the accurate granted by the option, the stock option buyer has to compensate the stock option seller an amount (i.e. Premium) for holding on the risk that arises with the compulsion. The option premium calculated with the help of the strike price, instability of the underlying, as well as the time remaining to termination.
Expiration Date:-
Option agreements are ineffective assets and every option, terminate after a definite period of time. Whenever the stock option terminates, the facility to process no longer be live and the stock option than to valueless. The termination month is particular for every option agreement. The fixed date on which termination performs based on the types of option. For example, stock options indexed in the Indian market (Nifty, Sensex) expire on the last Friday of the termination month. To make huge profits in index trading we need Nifty Tips and a deep analysis on all the index companies. Nifty index contains 50 top companies which perform well in the market.
Option Style:-
An option trade can be either Indian market style or USA market style. The approaches on which options can be processed also based on the style of the option. USA style options can be processed any time before termination while Indian market options can only be processed before the expiration date. The entire stock options presently traded in the market are USA market style options.
Underlying Asset:-
IT is the protection where the option trader has the responsibility to sell to or buy from the option holder in the condition of the option, when is exercised. In the condition of stock options, the primary asset to the shares of a definite company stock. Options are also obtainable for other kinds of securities such as currencies and commodities.
Agreement Multiplier:-
The agreement multiplier show the total amount of the underlying asset that requires to be processed in the case of the option is exercised, like as each agreement covers 100 shares.
The Options Marketplace:-
Traders in the options market make a trade with buy and sell through call and put options. Traders who purchase options are called stock holders. On the other hand sellers of options are known as writers. Option holders have long positions, whereas writers are known as short positions. To take the first step in option trading, you should have a trading account and an options brokerage. Just the once you have open your trading account, then you can put options trades by yourself or your broker who will help in executing it.
Opening a Stock Trading Account:-
Whenever you open a trading account through a brokerage company, you should inform that whether you are to open a cash account or a margin account.
Cash Account vs. Margin Account:-
Both accounts are necessary to perform an option trading. The basic difference between in both accounts is that a margin account permits you to utilize your obtainable holdings that mean stocks or long-term options as collateral to take loan funds by the brokerage to finance supplementary buy. In the case of cash accounts, you can only employ the obtainable cash in your trading account to spend for all your stock and options trades.
Smallest Deposit:-
There is normally a minimum deposit needed to open an account. The required amount based on the trading approach and account type that you are starting as well as the brokerage company. No deposit is needed to open a cash account, though the federal system needs a deposit of at least 5000 Rs to start a margin-enabled account.
Online vs. Offline Brokerage
To deal options more reliably and effectively, trader can use online brokerage account as there are basically too various variables in a usual options trade, as measure to a simple stock trade. To perform offline trading we need a broker, who performs trade in place of trader. Online trading is more beneficial for forex trading if we have proper Forex Tips and current updates about foreign currencies.