reverse repo Definition:Arrangement where a dealer or broker agrees to buy a security and sell it to a customer (investor) at a higher price on a specified date. These agreement are in effect loans from dealers to investors, collateralized by the securitiesbought. See also repurchase agreement (repo).
KINDS OF MOVING AVERAGES: 1. Simple Moving Average, 2. Exponential Moving Average, 3. Weighted Moving average, 4.Trianglor Moving Averange, 5. Tirple Moving Average. Formulas:1. Simple Moving Average(SMA): Total value of closing prices for selected number of days/ Selected number of days. 2. Exponential Moving Average(EMA): Today's closing price (K+ Yesterday's EMA) (1-K). where K=2 / (N+1). N= the number of days in EMA chosen or selected. If previous day's or yesterday's EMA is not known then caliculate as under. Day Close 10 EMA 1 4900 2 4950 3 4980 4 4920 5 4910 6 4950 7 4985 8 5010 9 5035 10 5060 11 5115 12 5090 13 5132 14 5141 Above chart is Ten Day EMA work sheet : Start with caliculating a simple moving average. The first value in column 3 is a simple moving average. then caliculate an exponential moving average on each seubsequen day, according to the formla mentioned above.------------yet to upload
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STOPLOSS ORDER :
1) {traditional and most common method to place stoploss orders: Put stoploss 20 points below the support level for long positions and 20 points above the resistance level for short positions}
{In case the Trend is identified: Enter the Trend with protective stoploss below the previous sessions Low for Long positions, where as, on the other side Put protective stop loss above the previous sessions High for Short positions}
FORMULA FINDING RESISTANCE & SUPPORT LEVELS FOLLOWED BY MOST OF THE ANALYSTS AND BROKERS
Pivot Point[PP] = High+Low+Close/3; Resistance1[R1]=
(2*PP)-Low; Resistance2R2]= PP+(High-Low); Support1[S1]= (2*PP)-High;
Support2[S2]= PP-(High-Low)
I do not like to follow this formula, because it does worthless
----www.validisclosures.blogspot.com
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2) Here's how you can identify value picks - stocks and sectors that are favourably-placed and having strong fundamentals - in the current market conditions:-
Track market conditions:
The first step is to identify sectors that are expected to do well, based on the broader market and macroeconomic conditions. Once the sectors are identified, it becomes easier to identify stocks and invest in them. It is not necessary to invest in the bestperforming stocks to get handsome returns. It is important to identify some good stocks and create an equity portfolio by investing in many stocks from different sectors. This will ensure good returns along with limited downside risk.
An ideal equity portfolio should have 8-10 carefully-selected stocks. It is important to track market developments and keep shuffling your portfolio based on changes in the conditions.
Here are some ways to identify sectors/stocks for your portfolio:
Analyse
An analysis is one of the most basic methods of identifying stocks. However, it requires thorough understanding of the markets, economic conditions and finance. Therefore, it is mostly suitable for experienced investors or those who have expertise in stock market investments.
Nevertheless, every investor should make an analysis of the markets before investing in any stock. You can start with some basics such as comparison of current results with past results, outlook for sectors, management guidelines for the future on business and earnings visibility, price-to-earnings (PE) ratios etc.
Analysts’ views
Many investors rely on advice or tips from analysts and stock brokers to take investment decisions. You should understand the basis of the recommendations rather than follow the advice just like that.
Discussion group
Discussion is another medium to cross-examine and identify stocks to invest in. Due to the dynamic nature of the stock markets, it is very difficult for an individual to track and react to important market events. You can form a small group or participate in discussion forums of like-minded people to discuss equity investments. The discussion forum can be formed with friends, colleagues or even on the Internet.
It is a good platform to learn through interaction and be attentive to many market developments.
‘Buy at dips’ strategy advisable
Since the medium to long-term outlook for the domestic markets is good, you should stick to the strategy of 'accumulate at dips'. It is easier said than done as it is difficult to predict market directions, especially the tops and lows. Therefore, it is suggested that one should not wait for the markets to bottom out to invest, but rather start investing in small quantities every time the markets correct significantly (five percent or more).
Similarly, you should book profits in small quantities at regular intervals whenever your investments appreciate. Those who do not have a deep understanding of the markets or the time to track their investment portfolio regularly should go for investments through the equity mutual funds route.
-----------source:www.economictimes.com
MONEY FLOW INDEX
Money Flow Index (MFI) is similar to the Relative Strength Index (RSI). It is calculated as follows:
- Define a "Typical Price" (TP) for the specified period:
TP = ( HIGH + LOW + CLOSE ) / 3
- Calculate "Money Flow" value (MF):
MF = TP x VOLUME
If "Typical Price" is higher than the preceding one then "Money
Flow" is positive. If "Typical Price" is lower than the preceding
one then "Money Flow" is negative.
- Calculate "Positive Money Flow" and "Negative Money Flow":
"Positive Money Flow" is the total value of all positive money flows for the specified time period.
"Negative Money Flow" is the total value of all negative money flows for the specified time period.
- "Money Ratio" (MR) is calculated as follows:
MR = POSITIVE MONEY FLOW / NEGATIVE MONEY FLOW
- Then using "Money Ratio" calculate "Money Flow Index":
MFI = 100 - ( 100 / ( 1 + MR ) )
Where:
- HIGH - current bar top;
- LOW - current bar bottom;
- CLOSE - current bar close price;
- VOLUME - current bar volume.
Overbought territory: 80-100; oversold territory: 0-20.
Money Flow Index (MFI) signals:
- if a new price high is confirmed by a new indicator high it means that the bullish trend is strong;
- if a new price bottom is confirmed by an indicator bottom it means that the bearish trend is strong;
- bullish convergence warns of the weakness of the uptrend:
- bearish convergence warns of the weakness of the downtrend.
RBI CREDIT POLICY
WHAT IS SLR? What is CRR? What is BANK RATE?, What are REPO AND REVERSE REPOs? What is difference between CRR and SLR?
What is Bank rate? Bank
Rate is the rate at which central bank of the country (in India it is
RBI) allows finance to commercial banks. Bank Rate is a tool, which
central bank uses for short-term purposes. Any upward revision in Bank
Rate by central bank is an indication that banks should also increase
deposit rates as well as Prime Lending Rate. This any revision in the
Bank rate indicates could mean more or less interest on your deposits
and also an increase or decrease in your EMI.
What is Bank Rate ? (For Non Bankers) : This
is the rate at which central bank (RBI) lends money to other banks or
financial institutions. If the bank rate goes up, long-term interest
rates also tend to move up, and vice-versa. Thus, it can said that in
case bank rate is hiked, in all likelihood banks will hikes their own
lending rates to ensure and they continue to make a profit.
|
What is CRR? The
Reserve Bank of India (Amendment) Bill, 2006 has been enacted and has
come into force with its gazette notification. Consequent upon
amendment to sub-Section 42(1), the Reserve Bank, having regard to the
needs of securing the monetary stability in the country, can prescribe
Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or
ceiling rate. [Before
the enactment of this amendment, in terms of Section 42(1) of the RBI
Act, the Reserve Bank could prescribe CRR for scheduled banks between 3
per cent and 20 per cent of total of their demand and time
liabilities].
RBI
uses CRR either to drain excess liquidity or to release funds needed
for the economy from time to time. Increase in CRR means that banks
have less funds available and money is sucked out of circulation. Thus
we can say that this serves duel purposes i.e. it not only ensures
that a portion of bank deposits is totally risk-free, but also enables
RBI to control liquidity in the system, and thereby, inflation by
tying the hands of the banks in lending money.
What is CRR (For Non Bankers) :
CRR means Cash Reserve Ratio. Banks in India are required to hold a
certain proportion of their deposits in the form of cash. However,
actually Banks don’t hold these as cash with themselves, but deposit
such case with Reserve Bank of India (RBI) / currency chests, which is
considered as equivlanet to holding cash with themselves.. This minimum
ratio (that is the part of the total deposits to be held as cash) is
stipulated by the RBI and is known as the CRR or Cash Reserve Ratio.
Thus, When a bank’s deposits increase by Rs100, and if the cash reserve
ratio is 9%, the banks will have to hold additional Rs 9 with RBI and
Bank will be able to use only Rs 91 for investments and lending /
credit purpose. Therefore, higher the ratio (i.e. CRR), the lower is
the amount that banks will be able to use for lending and investment.
This power of RBI to reduce the lendable amount by increasing the CRR,
makes it an instrument in the hands of a central bank through which it
can control the amount that banks lend. Thus, it is a tool used by
RBI to control liquidity in the banking system.
|
What is SLR? Every
bank is required to maintain at the close of business every day, a
minimum proportion of their Net Demand and Time Liabilities as liquid
assets in the form of cash, gold and un-encumbered approved securities.
The ratio of liquid assets to demand and time liabilities is known as
Statutory Liquidity Ratio (SLR). Present SLR is 24%. (reduced w.e.f.
8/11/208, from earlier 25%) RBI is empowered to increase this ratio up
to 40%. An increase in SLR also restrict the bank’s leverage position to pump more money into the economy.
What is SLR ? (For Non Bankers) : SLR
stands for Statutory Liquidity Ratio. This term is used by bankers and
indicates the minimum percentage of deposits that the bank has to
maintain in form of gold, cash or other approved securities. Thus, we
can say that it is ratio of cash and some other approved to liabilities
(deposits) It regulates the credit growth in India.
|
What are Repo rate and Reverse Repo rate?
Repo
(Repurchase) rate is the rate at which the RBI lends shot-term money
to the banks. When the repo rate increases borrowing from RBI becomes
more expensive. Therefore, we can say that in case,
RBI wants to make it more expensive for the banks to borrow money, it
increases the repo rate; similarly, if it wants to make it cheaper for
banks to borrow money, it reduces the repo rate
Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the RBI. The
RBI uses this tool when it feels there is too much money floating in
the banking system. An increase in the reverse repo rate means that
the RBI will borrow money from the banks at a higher rate of interest.
As a result, banks would prefer to keep their money with the RBI
Thus,
we can conclude that Repo Rate signifies the rate at which liquidity
is injected in the banking system by RBI, whereas Reverse repo rate
signifies the rate at which the central bank absorbs liquidity from the
banks. |
Continuation Wedge (Bullish) Behaviour
Continuation Wedge (Bullish) Behaviour
Implication
Continuation Wedge (bullish) is considered a bullish signal. This suggests the possibility of extending the current uptrend.Description
Continuation
Wedge (bullish) consists of two converging trend lines. The trend
lines are slanted downward. Unlike the triangle at the top where he
points to the right, on top of this pattern is slanted downwards angle.
This is because lower prices constantly on the verge of converging
pattern ie there are lower and lower lows Highs. A bullish signal
occurs when prices break above the upper trendline.
In
the course of several weeks or months that this pattern forms the
trend appears down, but long-term range is still upward. Volume should
decrease as the model forms.
Bullish Falling Wedge Pattern Trading Considerations
Validity of model
Considered
the duration of the model and its relationship to your trading time
horizons. The duration of the model is considered an indicator of the
duration of the impact of this model. The longer model will take longer
for the price to reach that goal. Shorter model before the price moves.
If you are considering a short-term trading opportunity, look for a
pattern of short duration. If you are considering long-term trading
opportunity, look for a scheme with a longer shelf life.
Target Price
Target
price provides an important indication of the potential price move
shows that this scheme. Consider whether the target price for this model
is sufficient to ensure adequate returns on your costs (such as
commissions) are ignored. A good rule is that the target price must
indicate a potential return of greater than 5% before the scheme should
be considered useful. Still need to consider this price and volume of
shares you intend to trade. Also, check that the initial price is no
longer made.
Criteria that Support
Volume
Volume should decrease as the model forms.
Criteria, which refutes
Moving Average
The penetration of 200 per day by Moving Average Price is Counterfeit carry signal.
Rising or Stable Volume
Volume should decrease as the model forms. If volume remains the same or increases this signal is less reliable.
Basic Behavior
In
this scheme employs lower prices in the pattern of convergence, ie
there are lower and lower Highs Lows indicates that bears are winning
over bulls. However, in Breakout point bulls emerge the winners and
prices.
Although
it seems things are changing and "Bull" is lurking, this model is
typically "corrective" in nature to a larger trend or pattern. These
Wedges to retrace usually 50-65% of the fall before it can proceed with
the primary trend.
Statistics
Percent
of successful formations - 81% Average rise of successful formations -
46% are likely to increase - 20% failure rate - 37% Average time to
throwback completion - 11 days
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3)
ICHIMOKU KINKO HYO
"ICHIMOKU KINKO HYO", a trend indicator developed by 'Ichimoku Sanjin' of Japan. Its a formation of 5 lines with 5 different measures. 1) TENKAN SEN (or) CONVERSION LINE= [Highest High + Lowest Low] /2 for 9 periods. 2) KIJUN SEN (or) BASEN LINE=[Highest High + Lowest Low] /2 for 26 periods. 3) CHIKOU SPAN (or) LAGGING SPAN= Today's Closing Price plotted 26 periods behind. 4) SENKOU SPAN-A (or) LEADING SPAN-A= (Tenken Sen+ Kijun Sen) /2, plotted 26 periods ahead. 5) SENKOU SPAN-B (or) LEADING SPAN-B= (Highest High + Lowest Low) /2, for the past 52 periods plotted 26 periods ahead. 6) The Area between SENKOU SPAN-A and SENKOU SPAN-B is called "KUMO" or "CLOUD".Interpretation:- When the TENKEN SEN crosses he KIJUN SEN from below called Bullish Cross Over, gives Bull signal. Conversely, when the TENKEN SEN crosses the KIJUN SEN from above called Bearish Cross Over.
a) at the time of Bearish Cross Over signal, if the price is trading below the KUMO, consider it as a strong Bear signal. In contrast, at the time of Bullish Cross Over, if the price is trading above the KUMO(cloud), will be treated as strong Bull signal. Conversely, a normal Bull or Bear signal will be considered, if the price is trading with in the KUMO and the Cross Over is taken place.
b) If the Bearish Cross Over taken place and the price is trading above the KUMO (cloud). then, it should be treated as Weak Bull Signal.
c) If the Bullish Cross Over taken place and the price is trading below the KUMO (cloud), then it should be treated as Weak Bear Signal.
The CHIKOU SPAN, which is useful to determine the strength of the Bull or Bear Signal. If it is moving below the closing price while Bear Signal was issued, then the issued signal would be treated as stronger signal. Conversely, if CHIMO SPAN is moving above the closing price, while the Bear Signal was issued, then the issued signal would be treated as stonger.
--- By www.validisclosures.blogspot.com
* * * * * * * * * * * * *
4) BAR CHARTS [OHLC]
Each bar on a bar chart represents price performance for a specific period. These periods could be as long as a month or as short as one minute, depending on the purpose for which the chart is to be used. Daily Bar Charts are most popular.
OHLC: stands for the 4 elements displayed on a typical price bar: i)Opening Price ii)Highest Price ii)Lowest Price and iv)Closing Price.
In general OHLC bars are coloured red and green/blue
If today's close is higher than yesterday's close - the bar is cloured green or blue
If today's close is lower than yesterday's close - the bar is coloured red.
If today's close is equal to yesterday's close - the bar is coloured the same as yesterday
INTERPRETING THE BAR CHARTS: First step in interpreting a bar chart is to identify the direction of the trend. Then look for signs that the trend is either strengthening or weakening.
IDENTIFYING THE TREND:The trend is determined in accordance with Dow Theory. An Up-Trend is a series of bars with Higher High and Higher Lows. A Down-Trend is a series of bars with Lower Highs and Lower Lows.
WHEN DOES A TREND START AND END? :-
An uptrend is started by a bar with a Higher High and Higher Low than the previous bar. Conversely, a down down trend is started by a bar with Lower High and Lower Low than the previous bar.
WHEN IS A TREND UNCERTAIN?:-
Inside days have a Lower High and Higher Low when compared to the preceding bar. Outside days have both a Higher High and a Lower Low than the previous day. Border line days are similar to Inside or Outside days, except that there is an Equal High or Equal Low .
5) FINDING REVERSAL DAYS OR REVERSAL SIGNALS BY "OHLC" BARS :-
Reversal signals may be formed by a single bar relative to the preceding bar. The signals vary greatly in strength, weak signals may only signal a peak or trough in the short cycle while extreme signals may indicate a change in the primary trend.
Signal strength: There are 4 major factors that affect signal strength,
a)Reversal signals that are most reliable, if they occur after a strong strength :-
a strong trend = a strong reversal signal (if the trend is weak, so is the signal)
b)Days that spike. c) Wide-ranging days. d) Unusually high volumes.
Signal Patterns: i)Open-Close Reversals are powerful signals. ii)Closing-Price Reversals are very strong. iii)Hook Reversals are weaker, formed on an inside day. iv)Key Reversals, which do not occur often, but are potent signals. v)Pivot Point Reversals and Complex Pivot Points are the most common signals. vi)Island Reversals and Island Clusters are powerful signals formed with gaps.
This is a potent signal when it follows after a strong trend.
After an up-trend a new high forms: a)with the open near the high, b)the close near the low and c)the close must be above yesterday's close.
After a down-trend, a new low forms: a)with the open near the low, b)the close near the high and c)the close must be below yesterday's close.
(the signals are most reliable if they occur after a strong trend, if the trend is weak, so is the signal.
ii) CLOSING -PRICE REVERSAL:
- The bar is the same as the Open-Close Reversal, but positioned differently relative to the preceding close -
In the above chart, after and up-trend, a new High forms:
a)with the open near the high, b)the close near the low, and c)the close is below yesterday's close.
After a down-trend a new low forms:
a)the open must be near the low, b)the close is near the high and c)the close is above yesterday's close.
(the signals are most reliable, if they occur after a strong trend. If the trend is weak, so is the signal)
iii)HOOK REVERSAL :-
- Highs an Lows on the signal day must be with in the trading range[high&low] of the previous day -
- The Hook Reversal has the same bar as the Open-Close Reversal and Closing-Price Reversals, but it is positioned differently in relation to the range of the previous day -
After an Up-Trend:
The Open must be near the High. The Close must be near the Low, and there is a Lower High and Higher Low compared to the previous day.
After a Down Trend:
The Open must be near the Low. The Close must be near the High, and there is a Lower High and Higher Low compared to the previous day.
[the signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal]
GOLD WEIGHT CONVERSION TABLE
to convert From To Multiply by
Troy Ounce Grams 31.1035
Grams Troy Ounce 0.0321507
Kilo Gram Troy Ounce 32.1507
Kilo Gram Tolas 87.755
:OPEN INTEREST:
Open Interest is the number of contracts held by buyers or owed by short sellers in a given market on a given day, which shows the number of existing contracts. Open Interest equals either total long or total short position.
1)If volume is relatively high while the market is going up and remains relatively low during corrections, the inference is that the market is in a strong uptrend, which should continue.
2)If volume is high while the market going down and relatively light during upward retracements, then the market is weak with a continuing downward trend likely.
3)If both Open Interest and Prices are increasing, then new buyers are being brought into the market with a strong technical picture unfolding, Expect the uptrend to continue.
4)In on the other hand, Open Interest is increasing while prices decline, short sellers have the upper hand in a technically weak market. As a Open Interest is growing while prices decline, buyers are obviously the more aggressive party.
5)In the event of Open Interest declining while prices are also slipping, liquidation by long positions in the implication (or profit booking), therefore suggesting a technically strong market overall. In the other words, the market is strong as the Open Interest declining suggests no new aggressive shorts, as this would entail an increase in Open Interest.
6)When Open Interest is declining and prices are increasing, short covering is the most likely cause, suggesting that overall the market is weak -i.e., attracting new buyers would be required for technically strong market and consequently Open Interest would rise.
ARMS INDEX (TRADERS INDEX [TRIN])
It is Breadth Indicator for short-term technical indication developed by-Roland Arms
Formula:
TRIN= (advancing issues / declining issues)/(volume of advancing issues/volume of declining issues)
Interpretation: If TRIN ration is 1, indicates the market in in balance; above 1 indicates that more volume is being moved to declining stocks, where as below 1 indicates that more volume is being moved to advancing stocks.
As a contrarian indicator it will help traders to find critical levels at which market become Overbought or Oversold.
Falling TRIN is Bullish signal, where as, Rising TRIN is bearish signal
Richard Arms Original Concept: According to Mr Richard Arms the indicator is for finding critical market levels. Accorded to him the market isoverbought when the 10-DMA of TRIN declined below 0.8. Conversely, he considered a market is Oversold when 10-DMA is rose above 1.20 .
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If you have been following financial
dailies, you surely would have read about the fall or rise in stock markets due
to the impact of GDP, inflation, interest rates or unemployment on a repeated
basis. The stock markets mood and movement displays different contours on news
and statistics related to macroeconomic variables.
Macroeconomics is a field in
economics that analyzes the behaviour of the economy as a whole. Macroeconomics
involves concepts such as unemployment, GDP, inflation and interest rates. Each
of the concepts above has an impact on the market. When properly used, these
indicators can be an invaluable resource for investors and traders. The
importance of macroeconomics in making investment decisions is very high.
Understanding macroeconomic variables will take investors a long way in making
better investment decisions.
Let us understand the relationships
between the stock markets and some key macroeconomic variables in brief and how
this knowledge can help an investor or trader.
-
Gross Domestic Product (GDP)
GDP though a lag indicator portrays
the economic picture of the economy. An example of this was during the recent
recession. As U.S. GDP fell and contracted, broad stock market indexes like the
500 S&P sank to decade lows. The expectations built around the likely
growth also results in anticipatory rallies and dips in the stock markets.
When the GDP is positive, the
overall stock market reacts positively as there is a lift in investor
confidence, encouraging them to invest more in stocks which in turn is good for
companies. When the GDP contracts, consumers would tread cautiously and reduce
their spending. Even foreign investors inflows are fickle. All this sets in
pessimism which cumulatively exerts a downward pressure on the stock markets.
-
Interest Rates
Technically interest rates do not
have a direct impact on stock markets but have a big psychological and ripple
effect!! The direct impact of the increase in say repo rate (in India’s case)
is that banks get to borrow from RBI at a higher rate and vice versa. But this
further affects individuals and corporates as the borrowing costs rise for
both. The debt factor for companies goes up and customers have a disincentive
to borrow at high rates. Overall companies and their margins are at loss and so
is the market performance!
-
Inflation
Inflation and interest rates are
rather correlated as it’s usually to tame inflation that interest rates go up!
Rising inflation leads to increase in interest costs, which affects the
companies depending on debt finance as the cost of funds increases. This
negatively affects the bottom lines of the companies. Moreover, increase in
prices leads to decrease in demand, which again affects the corporate profits.
The purchasing power of people gets reduced. All these cumulatively have an
adverse effect on the corporates, and thereby on the markets. Inflation has
many forms. Just like high inflation is not good, even deflation is not a good
sign as it means the economy is not growing.
-
Unemployment
The labor market is a key economic
indicator which affects the stock markets. This essentially refers to the
unemployment rate. The percentage of unemployment rate in a country reflects a
country’s economic state. In essence, when a country experiences an economic meltdown,
many companies downsize their workforce and impose a hiring freeze. This leads
to a higher unemployment rate and hence a negative impact on the stock markets.
Extract!!
- Remember that no matter how strong
a company’s fundamental is, if the economy is down, the performance of a
company will inevitably be affected to a certain extent. Therefore a company’s
earnings and future prospects depend largely on the overall business and
economic climate.
- Cyclical stocks will probably face
a larger impact compared to non-cyclical or defensive stocks.
- Stronger companies will be able to
weather the harsh economic situation compared to the weaker ones.
- As an investor, it is important
for one to understand the macro picture of the economy, not just the sector or
stock that one has already or is interested in investing.
- Your investment decisions can be
better if this knowledge is combined with detailed research about the stock.
- Look for opportunities to spot
some good stocks at a bargain in a scenario when the economy slows down and the
market is on a downward trend.
About Prableen Bajpai
TRADING RULES
1) Knowledge is better than luck, but luck surely helps.
2) Don't try to guess where the market is headed - you will always be
wrong to some degree. Trade what you see, not what you want to see. 3)Let the market speak before you get in the correct mind set to trade.4)Eliminate greed and take your time. Be cool. 5)Always limit your downside and don't be afraid to go short. 6)Markets do and need corrections. 7)Trade in smaller positions when strategies fail to work as they have in the past. 8)Don,t just think about stop losses, but use them.9)Anything that "can never happen" can happen'.10)When the heat is on, you must stick to your plan and obey your trading rules.
Understanding
patterns and sequences in the stock market helps you to determine the
current demand and supply forces in the stock market. Patterns and
sequences in the stock market let you to find out accurately as what is
the present trend in the stock market business. At times, you can use
graphical representations to understand these patterns and sequences
in the stock market. Even today, numerous people use this kind of
graphical representation to understand ever-changing stock market
prices.
Trading
with practical analysis needs accurate identification of stock
market's patterns and sequences. Practical analysis is the scientific
study of stock price history. It helps you to determine future
opportunities in trading with stock market. Price history is normally
the visual depiction of several things such as what was the initial
price of stock, current price of the stock, future likelihood of
increase in the stock price, where sellers and buyers lurk, and the
trading psychology in the stock market.
Sequences in Stock Market Business:
Sequences
exist in all aspects of life. However, they range from short-term to
long-term such as, from life sequences of a June insect that lives for a
few days to the life sequences of a planet that takes millions of
years. No matter, which market you refer to, all will have same aspects
and go through same phases. All markets have same cyclical phases.
They go up, apex, come down, and then approach bottom.
The main problem is, many people and investors fail to understand the
market's sequence, or they overlook the end of present market phase.
Another important thing is, even when people admit the presence of
sequences, it is almost impossible to choose the bottom or top entity.
However, understanding of sequences is necessary, if you wish to
maximize trading or investment returns.
There are usually four major modules of the stock market sequences to understand:
Accumulation stage:
This phase takes place, once the market has faced failure. The early
adopters and innovators start purchasing, thinking that, the most
awful condition is over. At this stage, the valuations of stocks seem
to be very attractive. Hence, the overall market condition begins to
change from pessimistic to optimistic.
Mark-up Stage:
At this stage, the market slowly starts rising and picks up momentum.
The investors feel free and start trading, as the market supersedes
its failure. Valuations of the stocks mount well beyond their historic
norms. Thus, it is the perfect time to buy and sell shares.
Booming stage:
This is a stage, where the stock market attains its full prosperity.
There is a lot of happiness. Profit and good valuation exist in the
stock market business. Investors deal largely during this period. This
is a perfect time to sell shares, since you can expect high profit in
this phase.
Mark-Down Phase:
This is the final stage of the stock market, where everything seems
to be slip-up and failure. Prices of stock market come down and
investors suffer loss.
Overview:Often,
short-term traders study these chart patterns and sequences, to gauge
demand and supply forces in the stock market. These demand and supply
forces are the fundamentals of the stock market fluctuation, which
enable you to make profit. Patterns and sequences are the useful
estimations of support, resistance, momentum and other clues of
strength and weakness in the stock market business. Hence, if you
understand these patterns and sequences, you can able to determine the
market direction with time in and time out.Hence, it is necessary for
you to understand these patterns and sequences carefully and
accurately, only then you can benefit out of it.
IndiaVIX
About India VIX*
India VIX is a volatility index based on the index option prices of NIFTY. India VIX is
computed using the best bid and ask quotes of the out-of-the-money near and mid-month
NIFTY option contracts which are traded on the F&O segment of NSE. India VIX
indicates the investor’s perception of the market’s volatility in the near term. The index
depicts the expected market volatility over the next 30 calendar days. i.e. higher the India
VIX values, higher the expected volatility and vice-versa.
India VIX computation methodology
India VIX uses the computation methodology of CBOE, with suitable amendments to
adapt to the NIFTY options order book using cubic splines, etc
The factors considered in the computation of India VIX are mentioned below:
1) Time to expiry:
The time to expiry is computed in minutes instead of days in order to arrive at a level
of precision expected by professional traders.
2) Interest Rate:
The relevant tenure NSE MIBOR rate (i.e 30 days or 90 days) is being considered as
risk-free interest rate for the respective expiry months of the NIFTY option contracts
3) The forward index level:
India VIX is computed using out-of-the-money option contracts. Out-of-the-money
option contracts are identified using forward index level. The forward index level
helps in determining the at-the-money (ATM) strike which in turn helps in selecting
the option contracts which shall be used for computing India VIX. The forward index
level is taken as the latest available price of NIFTY future contract for the respective
expiry month.
*
“VIX” is a trademark of Chicago Board Options Exchange, Incorporated (“CBOE”) and Standard & Poor’s
has granted a license to NSE, with permission from CBOE, to use such mark in the name of the India VIX
and for purposes relating to the India VIX.
4) Bid-Ask Quotes
The strike price of NIFTY option contract available just below the forward index
level is taken as the ATM strike. NIFTY option Call contracts with strike price above
the ATM strike and NIFTY option Put contracts with strike price below the ATM
strike are identified as out-of-the-money options and best bid and ask quotes of such
option contracts are used for computation of India VIX. In respect of strikes for
which appropriate quotes are not available, values are arrived through interpolation
using a statistical method namely “Natural Cubic Spline”
After identification of the quotes, the variance (volatility squared) is computed
separately for near and mid month expiry. The variance is computed by providing
weightages to each of the NIFTY option contracts identified for the computation, as
per the CBOE method. The weightage of a single option contract is directly
proportional to the average of best bid-ask quotes of the option contract and inversely
proportional to the option contract’s strike price
Computation of India VIX
The variance for the near and mid month expiry computed separately are interpolated to
get a single variance value with a constant maturity of 30 days to expiration. The square
root of the computed variance value is multiplied by 100 to arrive at the India VIX value.
For further details please refer to the white paper with the detailed methodology on
computation of India VIX at www.nseindia.com
INDIAN RUPEE vs US DOLLAR
Real story of American Dollar v/s Indian Rupee
An Advice to all who are worrying about fall of Indian Rupee
Throughout the
country please stop using cars except for emergency for only seven days
(Just 7 days).Definitely Dollar rate will come down. This is true. The
value to dollar is given by petrol only.This is called Derivative
Trading. America has stopped valuing its Dollar with Gold 70 years ago.
Americans understood that Petrol is equally valuable as Gold so they
made Agreement with all the Middle East countries to sell petrol in
Dollars only. That is why Americans print their Dollar as legal tender
for debts. This mean if you don't like their American Dollar and go to
their Governor and ask for repayment in form of Gold,as in India they
won't give you Gold. You observe Indian Rupee, " I promise to pay the
bearer..." is clearly printed along with the signature of Reserve Bank
Governor. This mean, if you don't like Indian Rupee and ask for
repayment,Reserve Bank of India will pay you back an equal value of
gold.(Actually there may be minor differences in the Transaction
dealing rules, but for easy comprehension I am explaining this). Let us
see an example. Indian petroleum minister goes to Middle East country
to purchase petrol, the Middle East petrol bunk people will say that
liter petrol is one Dollar. But Indians won't have dollars. They have
Indian Rupees. So what to do now? So That Indian Minister will ask
America to give Dollars. American Federal Reserve will take a white
paper , print Dollars on it and give it to the Indian Minister. Like
this we get dollars , pay it to petrol bunks and buy petrol. But there
is a fraud here. If you change your mind and want to give back the
Dollars to America we can't demand them to pay Gold in return for the
Dollars. They will say " Have we promised to return something back to
you? Haven't you checked the Dollar ? We clearly printed on the Dollar
that it is Debt" So, Americans don't need any Gold with them to print
Dollars. They will print Dollars on white papers as they like. But what
will Americans give to the Middle East countries for selling petrol in
Dollars only? Middle East kings pay rent to America for protecting their
kings and heirs. Similarly they are still paying back the Debt to
America for constructing Roads and Buildings in their countries. This
is the value of American Dollar. That is why Many say some day the
Dollar will be destroyed. At present the problem of India is the result
of buying those American Dollars. American white papers are equal to
Indian Gold. So if we reduce the consumption of petrol and cars, Dollar
will come down. Kindly share this and make everyone aware of the facts
of American Dollar V/s Indian Rupee. And here is a small thing other
than petrol , what we can do to our Indian Rupee
YOU CAN MAKE A HUGE DIFFERENCE TO THE INDIAN ECONOMY BY FOLLOWING FEW SIMPLE STEPS:-
Please spare a couple of minutes here for the sake of India.
Here's a small example:-
At 2008 August month 1 US $ = INR Rs 39.40
At 2013 August now 1 $ = INR Rs 62
Do
you think US Economy is booming? No, but Indian Economy is Going Down.
Our economy is in your hands.INDIAN economy is in a crisis. Our country
like many other ASIAN countries, is undergoing a severe economic
crunch. Many INDIAN industries are closing down. The INDIAN economy is
in a crisis and if we do not take proper steps to control those, we will
be in a critical situation. More than 30,000 crore rupees of foreign
exchange are being siphoned out of our country on products such as
cosmetics, snacks, tea, beverages, etc. which are grown, produced and
consumed here.A cold drink that costs only 70 / 80 paise to produce, is
sold for Rs.9 and a major chunk of profits from these are sent abroad.
This is a serious drain on INDIAN economy. We have nothing against
Multinational companies, but to protect our own interest we request
everybody to use INDIAN products only at least for the next two years.
With the rise in petrol prices, if we do not do this, the Rupee will
devalue further and we will end up paying much more for the same
products in the near future.
What you can do about it?
Buy only
products manufactured by WHOLLY INDIAN COMPANIES.Each individual should
become a leader for this awareness. This is the only way to save our
country from severe economic crisis. You don't need to give-up your
lifestyle. You just need to choose an alternate product.Daily products
which are COLD DRINKS,BATHING SOAP ,TOOTH PASTE,TOOTH BRUSH ,SHAVING
CREAM,BLADE, TALCUM POWDER ,MILK POWDER ,SHAMPOO , Food Items etc. all
you need to do is buy Indian Goods and Make sure Indian rupee is not
crossing outside India.Every INDIAN product you buy makes a big
difference. It saves INDIA. Let us take a firm decision today.
...we are not anti-multinational. we are trying to save our nation...
MACRO ECONOMICS & STOCK MARKET
MACRO
ECONOMICS AND STOCK MARKET:- If you have been following financial
dailies, you surely would have read about the fall or rise in stock
markets due to the impact of GDP, inflation, interest rates or
unemployment on a repeated basis. The stock markets mood and movement
displays different contours on news and statistics related to
macroeconomic variables.Macroeconomics
is a field in economics that analyzes the behaviour of the economy as a
whole. Macroeconomics involves concepts such as unemployment, GDP,
inflation and interest rates. Each of the concepts above has an impact
on the market. When properly used, these indicators can be an
invaluable resource for investors and traders. The importance of
macroeconomics in making investment decisions is very high.
Understanding macroeconomic variables will take investors a long way in
making better investment decisions.
Let us understand the relationships between the stock markets and some
key macroeconomic variables in brief and how this knowledge can help
an investor or trader.
Gross Domestic Product (GDP):GDP
though a lag indicator portrays the economic picture of the economy.
An example of this was during the recent recession. As U.S. GDP fell
and contracted, broad stock market indexes like the 500 S&P sank to
decade lows. The expectations built around the likely growth also
results in anticipatory rallies and dips in the stock markets.When
the GDP is positive, the overall stock market reacts positively as
there is a lift in investor confidence, encouraging them to invest more
in stocks which in turn is good for companies. When the GDP contracts,
consumers would tread cautiously and reduce their spending. Even
foreign investors inflows are fickle. All this sets in pessimism which
cumulatively exerts a downward pressure on the stock markets.
- Interest Rates:
Technically interest rates do not have a direct impact on stock
markets but have a big psychological and ripple effect!! The direct
impact of the increase in say repo rate (in India’s case) is that banks
get to borrow from RBI at a higher rate and vice versa. But this
further affects individuals and corporates as the borrowing costs rise
for both. The debt factor for companies goes up and customers have a
disincentive to borrow at high rates. Overall companies and their
margins are at loss and so is the market performance!
- Inflation:Inflation
and interest rates are rather correlated as it’s usually to tame
inflation that interest rates go up! Rising inflation leads to increase
in interest costs, which affects the companies depending on debt
finance as the cost of funds increases. This negatively affects the
bottom lines of the companies. Moreover, increase in prices leads to
decrease in demand, which again affects the corporate profits. The
purchasing power of people gets reduced. All these cumulatively have an
adverse effect on the corporates, and thereby on the markets.
Inflation has many forms. Just like high inflation is not good, even
deflation is not a good sign as it means the economy is not growing.
- Unemployment: The
labor market is a key economic indicator which affects the stock
markets. This essentially refers to the unemployment rate. The
percentage of unemployment rate in a country reflects a country’s
economic state. In essence, when a country experiences an economic
meltdown, many companies downsize their workforce and impose a hiring
freeze. This leads to a higher unemployment rate and hence a negative
impact on the stock markets
.Extract!!
Remember that no matter how strong a company’s fundamental is, if the
economy is down, the performance of a company will inevitably be
affected to a certain extent. Therefore a company’s earnings and future
prospects depend largely on the overall business and economic climate.- Cyclical stocks will probably face a larger impact compared to non-cyclical or defensive stocks.- Stronger companies will be able to weather the harsh economic situation compared to the weaker ones.-
As an investor, it is important for one to understand the macro
picture of the economy, not just the sector or stock that one has
already or is interested in investing.- Your investment decisions can be better if this knowledge is combined with detailed research about the stock.-
Look for opportunities to spot some good stocks at a bargain in a
scenario when the economy slows down and the market is on a downward
trend.
About Prableen Bajpai
Difference between Economics and Commerce
DIFFERENCE BETWEEN ECONOMICS AND COMMERCE:
Economics :
Economics is the branch of social science
that studies the production, distribution, and consumption of goods
and services. The term economics comes from the Greek for oikos (house)
and nomos (custom or law), hence "rules of the house(hold). "Modern economics
developed out of the broader field of political economy in the late
19th century, owing to a desire to use an empirical approach more akin
to the physical sciences. A definition that captures much of modern
economics is that of Lionel Robbins in a 1932 essay: "the science which
studies human behaviour as a relationship between ends and scarce means
which have alternative uses." Scarcity means that available resources
are insufficient to satisfy all wants and needs. Absent scarcity and
alternative uses of available resources, there is no economic problem.
The subject thus defined involves the study of choices as they are
affected by incentives and resources.
Commerce :
Commerce
is a division of trade or production which deals with the exchange of
goods and services from producer to final consumer. It comprises the
trading of something of economic value such as goods, services,
information or money between two or more entities. Commerce functions
as the central mechanism which drives capitalism and certain other
economic systems (but compare command economy, for example).
Commercialization or commercialisation consists of the process of
transforming something into a product, service or activity which one may
then use in commerce. Commerce primarily expresses the fairly abstract
notions of buying and selling, whereas trade may refer to the exchange
of a specific class of goods ("the sugar trade", for example), or to a
specific act of exchange (as in "a trade on the stock-exchange").
Business can refer to an organization set up for the purpose of engaging
in manufacturing or exchange, as well as serving as a loose synonym of
the abstract collective "commerce and industry". Compare with
retailing.
differnce between commerce and business
Difference between Commerce and Business
The
words commerce and business have similar connotations and there is a
tendency of people to talk about these terms in the same breath as if
both were same. However, there are differences in the two concepts
which will be highlighted in this article. Commerce is an abstract idea
that refers to activities of buying and selling of goods and services
whereas business is more physical in the sense that it can be owned by a
person. A person can own a business but he certainly doesn’t own
commerce. Similarly a company does business with its clients and not
commerce though the activities of the company come within the purview
of the broader term commerce. Commerce is much closer in meaning to
trade and trade related activities such as communication,
transportation, insurance, and so on. On the other hand, business is an
activity that is undertaken with the sole motive of making profits. If
one tries to represent trade, commerce and business through Venn
diagrams, trade and commerce appear to be subsets of business which is
the largest circle containing both trade and commerce. Commerce is thus a
part of all the activities that are carried out in the name of
business such as planning, advertising, selling, buying, marketing,
accounting and supervising manufacturing etc. Commerce is just the
buying and selling part of business thus being smaller in scope than
business. The difference between these two terms is also reflected in
the relative importance of the courses of commerce and business.
Whereas a student studying commerce is just a simple arts graduate, a
student studying business holds a professional degree that opens doors
of many more opportunities.
NEURO TRADING
Neural Trading: Biological Keys To Profit
The human brain is one of the most complex objects in the
known universe. It is not its superior processing speed and storage
space that make it extraordinary, but its ability to learn and adapt.
Recently, computer scientists have focused their efforts on writing
software that allows computers to mimic this learning ability. Such
efforts are accomplished through what is now known as neural networking.
This technology has several applications, particularly in sales
forecasting and trading. This article looks at how neural networks work
and how they can be applied to trading.
Neural Network Basics
Neural
networks are essentially a collection of interconnected neurons, each
containing several inputs and outputs. These inputs vary in terms of
their weight (importance) and frequency. Meanwhile, outputs are a
function of net inputs. The image below of biological neurons
demonstrates the interaction of neurons:
 |
| Image from ANNEvolve.Sourceforge.Net |
Here
we see the blue neuron sending an impulse to the yellow neuron. The
yellow neuron may be receiving other inputs (varying in strength) from
other neurons, yet it sends out only one signal (a function of all the
inputs).
Now, here's how we can apply this input-output process to a computer:
 |
The diagram above shows a series of inputs with varying strength being
entered into a function that produces an output. The building of
artificial neural networks gets far more complicated from here; it
involves neural models and mathematics that are beyond the scope of this
article. However, if you'd like to learn more about how they function,
click here.
Although
not nearly as complex as their biological counterparts, these
components will eventually mimic the way our brain works, in order to
make quicker and more accurate decisions.
Trading with Neural Networks
So, what makes these networks so special when applied to trading? Well, many factors go into making a trade: fundamental analysis, technical analysis, market sentiment,
economic factors and even (arguably) randomness itself. Making sense
of all of this can become a problem. Many trading applications are
capable of considering one or two of these factors, but none can take
all of them into account. Neural networks are used to fill that void.
What Do Neural Networks Do?
Neural
networks used in trading vary greatly. They range from those that rely
purely on genetic concepts to those that involve complex neural
network models.
The
neural models that use pure genetic programming utilize historical
data (inputs) and randomly generated equations (functions) to create
effective buy/sell rules. The process starts with the creation of an
"individual" by running the inputs through a given function. Then
random individuals (of which the better performers are given
preference) are taken to create a second-generation hybrid. This
process continues through several generations, each perfecting the
equation. The result, in theory, is a perfect equation that will be able
to generate profitable buy/sell signals.
Fortunately, much of this can be accomplished via an easy-to-use graphic-user-interface (GUI) program. Here is an example from Merchant of Venice, which is a free project on equity analysis:
 |
Here
you can simply input the number of generations the program is to run,
the number of individuals in each generation, the number of random
individuals that should be selected from each generation to create the
hybrid, and so forth.
The other types of neural trading
applications let you create actual neural networks as opposed to simply
using the genetic concepts. One such application is Joone, another freely available program. They offer plug-ins that get input from sources such as Yahoo! Finance, and allow you to create your own neural networks. Here is what this application looks like:
 |
Here
we can see the input plug-in from Yahoo! Finance, the function being
applied and a chart showing correlations being printed out. Simplified
versions of this type of application are also available commercially.
Who Uses Neural Trading?
There are various financial areas in which financial professionals use neural-based applications: in various bond
trading to determine the probability that a given company will default
on its debt, in sales forecasting to predict future sales based on a
series of inputs and in equity trading to predict future price
movements. Many professionals and institutions are testing and even
using this technology to help predict events and profit.
Why Doesn't Everyone Use It?
The
application of neural networks to trading is relatively new. As such,
it is neither perfected nor proven. The genetic programming example
above yields large equations that become impractical or too biased to
the past. Meanwhile, regardless of their GUI environment, programs like
the one above often involve complex mathematics and NN models. Factors
like these can limit the usefulness of neural networks.
Also, many
critics say that the idea of software being able to "learn" the
markets is flawed. If humans can't predict markets with certainty, how
is it possible to create software that can accomplish something we don't
even fully understand?
As you might guess, there are several
commercial alternatives available. However, approach with caution, as
many of these signal services and applications can be misleading. After
all, if somebody developed a system that made guaranteed profits
without any work on the part of the trader, why would that person sell
it to the public? Be sure to do your research before purchasing a
system that makes guarantees. Or, if you are ambitious, try creating
one for yourself using one of the tools mentioned above.
The Bottom Line
Neural
networks operate by taking a series of weighted inputs and putting
them through a function to provide an output. These outputs are in turn
applied to subsequent generations to effectively "learn" how to
predict events more accurately. Many companies offer applications that
allow you to create neural networks, and even more companies that sell
you neural networks. The theory is slowly being improved and even
adopted by some in the trading community. Time will tell the extent to
which neural networks will change markets in the future. ...source: www.investopedia.com
About Brokers
PENALTY TO STOCK BROKERS
S E B I:-Penalty for failure in case of stock brokers.- If any person, who is registered as a stock broker under this Act, -
(a)
fails to issue contract notes in the form and in the manner specified
by the stock exchange of which such broker is a member, he shall be
liable to a penalty not exceeding five times the amount for which the
contract note was required to be issued by that broker;
(b)
fails to deliver any security or fails to make payment of the amount due
to the investor in the manner within the period specified in the
regulations, he shall be liable to [48][a penalty of one lakh rupees for
each day during which such failure continues or one crore rupees,
whichever is less.]
(c) charges an amount of brokerage which is
in excess of the brokerage specified in the regulations, he shall be
liable to [49][a penalty of one lakh rupees] or five times the amount of
brokerage charged in excess of the specified brokerage, whichever is
higher.
Basic Instructions
Power of Attorney (PoA) Instructions
(the market is designed to fool most of the time. Sometimes market will
go contrary to what Speculator have predicted. At these times,
speculator must abandon their predictions and follow the actions of the
market. Never argue, as the markets are never wrong, but opinions often
are. I only try to react to what the market is telling me by its
behaviour - By Mr Jesse Livermore) -
Investor Rights - Right To
· Get Unique Client Code (UCC) allotted· Get a copy of KYC and other documents executed· Get trades executed in only his/her UCC· Place order on meeting the norms agreed to with the Member· Get best price· Contract note for trades executed· Details of charges levied· Receive funds and securities on time· Receive statement of accounts from trading member· Ask for settlement of accounts
Investor Obligations - Under Obligation To
· Execute Know Your Client (KYC) documents and provide supporting documents· Understand the voluntary conditions being agreed with the member· Understand the rights given to the Members· Read Risk Disclosure Document· Understand the product and operational framework and deadlines· Pay margins· Pay funds and securities for settlement on time· Verify details of trades· Verify bank account and DP account for funds and securities movement· Review contract notes and statement of account
Rights to Remedies
· Take up a complaint against member with the Exchange· Take up a complaint against listed company· File arbitration against member if there is dispute· Challenge the arbitration award before court of law
Obligation Towards Remedies
· Take up complaint within reasonable time· Complaint to be supported by appropriate documents· When additional information is called for provide the same· To participate in resolution meetings
Complaints taken up at the Exchange
Investor
Services Cell of the Exchange deals with the complaints of investors
against the Trading Members of the Exchange or against the listed
companies. Investors could lodge their complaints in the format
prescribed by the Exchange along with the supporting documents either by
registering their complaints in electronic mode through our website www.nseindia.com or may send in their complaints to the nearest investor service centre.
Generally, the complaints of following nature are taken up for resolution by the Exchange.
Complaints against Exchange Members:
Capital Markets/ Futures & Options Segment:
· Non-Issuance of the Documents by the Trading Member
· Non-receipt of funds / securities
· Non-receipt of margin/security deposit given to the Trading Member (TM)
· Non-Receipt of Corporate Benefit (dividend / interest / bonus etc.)
· Auction value / close out value received or paid
· Execution of Trades without Consent
· Excess Brokerage charged by Trading Member / Sub-broker
· Non-receipt of credit balance as per the statement of account
· Non-Receipt of Funds / Securities kept as margin
· Excess Brokerage Charged (other than on Option Premium)
Regional Investor Complaint Resolution Committees (RICRC):
Complaints
against trading members which remain unresolved despite Exchange
intervention are referred to the RICRC at Mumbai, Delhi, Kolkata and
Chennai.
The members on the Committee are as follows:
Region
|
Name
|
Mumbai
|
Mr. K.S.Shah, Mr. Kamal Kumar Jalan or Mr. Nandkishore Gupta
|
Delhi
|
Mr.R.K.Ahooja, Col. G.S.Gujral (Retd.) or Mr. Ajay Bahadur
|
Kolkata
|
Mr. P.K.Bhattacharjee, Mr. Rishi Nathany or Mr. Prashant Khandelwal
|
Chennai
|
Mr. S. Subramanian, Mr. Arunkumar C.N. or Mr. Narendranath
|
Complaints against Listed Companies:
· Public / Further offerings: Complaint regarding non-receipt of…
i. Allotment Advice, securities allotted, refund order
ii. Interest on delay in Redemption / Refund Amount
iii. Sale Proceeds of Fractional Entitlement
iv. Composite Application Form (CAF) for Rights offer Rights for (CAF) Application
v. Securities purchased through a Rights Offer
vi. Letter of offer for Buyback
Corporate Actions: Complaint regarding non-receipt of…
. Dividend
i. Interest on Debentures, Bonds or other Debt Instruments
ii. Securities on account of a Bonus / De-merger / Merger / Stock Split
iii. Redemption Amount
Transfer of Securities: Complaint regarding non-receipt of…
. Securities after Dematerialization
i. Securities after Transfer/Transmission
ii. Duplicate Certificate relating to Securities
Miscellaneous:
Complaint regarding non-receipt of copy of the Annual Reports
* * *
About Arbitration
Introduction
Arbitration
is a quasi judicial process of settlement of disputes between Trading
Member, investor, clearing member, sub-brokers etc. Arbitration aims at
quicker legal resolution for the disputes. When one of the parties
feels that the complaint has not been resolved satisfactorily either by
the other party or through the complaint resolution process of the
Exchange, the parties may choose the route of arbitration.
Contact Regional Arbitration Centres (RACs)
MUMBAI:
National Stock Exchange of India Ltd. 'Exchange Plaza', C-1, Block G, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051
|
DELHI:
National Stock Exchange of India Ltd. 4th Floor, Jeevan Vihar Building, Parliament Street, New Delhi-110 001
Tel No : (011) 2334 4313
Fax No : (011) 2336 6658
|
KOLKATA:
National Stock Exchange of India Ltd. 1st Floor, Park View Apartments, 99, Rash Behari Avenue, Kolkata - 700 029.
Tel No : (033) 24631802 1805 / 24631809 1812
Fax No : (033) 24631791 / 1806
|
CHENNAI:
National Stock Exchange of India Ltd. 2nd floor, Ispahani Centre, Door No 123-124, Nungambakkam High Road, Chennai - 600 034
Tel No : (044) 2833 2500
Fax No : (044) 2833 2510 / 2521
|
E-COMPLAINT
PARTICIPATORY NOTES[PN]
Participatory notes (PNs / P-Notes) are instruments used by investors
or hedge funds that are not registered with the SEBI (Securities &
Exchange Board of India) to invest in Indian securities. Participatory
notes are instruments that derive their value from an underlying
financial instrument such as an equity share and, hence, the word,
'derivative instruments'. SEBI permitted FIIs to register and
participate in the Indian stock market in 1992.
Indian based
brokerages buy Indian-based securities and then issue PNs to foreign
investors. Any dividends or capital gains collected from the underlying
securities go back to the investors.
Participatory
notes are instruments used for making investments in the stock
markets. However, they are not used within the country. They are used
outside India for making investments in shares listed in that country.
That is why they are also called offshore derivative instruments.
In
the Indian context, foreign institutional investors (FIIs) and their
sub-accounts mostly use these instruments for facilitating the
participation of their overseas clients, who are not interested in
participating directly in the Indian stock market.
For example,
Indian-based brokerages buy India-based securities and then issue
participatory notes to foreign investors. Any dividends or capital gains
collected from the underlying securities go back to the investors.
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|
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COLOURS
What Wavelength Goes With a Color?
Our
eyes are sensitive to light which lies in a very small region of the
electromagnetic spectrum labeled "visible light". This "visible light"
corresponds to a wavelength range of 400 - 700 nanometers (nm) and a
color range of violet through red. The human eye is not capable of
"seeing" radiation with wavelengths outside the visible spectrum. The
visible colors from shortest to longest wavelength are: violet, blue,
green, yellow, orange, and red. Ultraviolet radiation has a shorter
wavelength than the visible violet light. Infrared radiation has a
longer wavelength than visible red light. The white light is a mixture
of the colors of the visible spectrum. Black is a total absence of
light.
Earth's most important energy source is the Sun. Sunlight consists of the entire electromagnetic spectrum.
Learn more:
|  (Wavelength image from Universe by Freedman and Kaufmann.) |
|
The visible violet light has a wavelength of about 400 nm. Within the
visible wavelength spectrum, violet and blue wavelengths are scattered
more efficiently than other wavelengths. The sky looks blue, not violet,
because our eyes are more sensitive to blue light (the sun also emits
more energy as blue light than as violet). | |
|
The visible indigo light has a wavelength of about 445 nm. | |
|
The visible blue light has a wavelength of about 475 nm. Because the
blue wavelengths are shorter in the visible spectrum, they are scattered
more efficiently by the molecules in the atmosphere. This causes the
sky to appear blue. |  |
|
The visible green light has a wavelength of about 510 nm. Grass, for
example, appears green because all of the colors in the visible part of
the spectrum are absorbed into the leaves of the grass except green.
Green is reflected, therefore grass appears green. |  |
|
The visible yellow light has a wavelength of about 570 nm. Low-pressure
sodium lamps, like those used in some parking lots, emit a yellow
(wavelength 589 nm) light. |  |
|
The visible orange light has a wavelength of about 590 nm. | |
|
The visible red light has a wavelength of about 650 nm. At sunrise and
sunset, red or orange colors are present because the wavelengths
associated with these colors are less efficiently scattered by the
atmosphere than the shorter wavelength colors (e.g., blue and purple). A
large amount of blue and violet light has been removed as a result of
scattering and the longwave colors, such as red and orange, are more
readily seen. |  |
There are many wavelengths in the electromagnetic spectrum the human eye cannot detect.
Energy with wavelengths too short for humans to see
Energy
with wavelengths too short to see is "bluer than blue". Light with
such short wavelengths is called "Ultraviolet" light.
How
do we know this light exists? One way is that this kind of light causes
sunburns. Our skin is sensitive to this kind of light. If we stay out
in this light without sunblock protection, our skin absorbs this energy.
After the energy is absorbed, it can make our skin change color ("tan")
or it can break down the cells and cause other damage. Energy with wavelengths too long for humans to see
Energy whose wavelength is too long to see is "redder than red". Light
with such long wavelengths is called "Infrared" light. The term
"Infra-" means "lower than". How do
we know this kind of light exists? One way is that we can feel energy
with these wavelengths such as when we sit in front of a campfire or
when we get close to a stove burner. Scientists like Samuel Pierpont Langley
passed light through a prism and discovered that the infrared light the
scientists could not see beyond red could make other things hot. Very
long wavelengths of infrared light radiate heat to outer space. This
radiation is important to the Earth's energy budget. If this energy did
not escape to space, the solar energy that the Earth absorbs would
continue to heat the Earth.
...source: www.science-edu.larc.nasa.gov
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జనుల బలహీనతలే ఒకరి నాయకత్వం. అంటే, నాయకుని యొక్క నాయకత్వపు అస్థిత్వము ప్రజల బలహీనత పైనే ఆధార పడుతుంది.ప్రకృతిలో బలహీనత అనునది ఉంటే, బలము కూడా ఉంటుంది. ప్రజ నిరంతరం అభద్రతా భావము పొందుతూ ఉంటాడు. అన్ని విధాలా అతనికి రక్షణ అవసరము. ఆ రక్షణ తనకు తాను స్వతంత్రముగా కల్పించు కొన జాలడు, అందుకని తనకు అన్నివిధాల రక్షణ కల్పించే సామర్థ్యం ఉన్న అతనిని నాయకునిగా అంగీకరిస్తాడు. నాయకినికి ఉన్న ఆ యొక్క సామర్థ్యమే బలము, నాయకత్వపు లక్షణాలు. ప్రజా కు రక్షణ కల్పించాలి అంటే నాయకుడు భాద్యత గా స్వీకరిస్తాడు. ఆ భాద్యత తోనే తన రాచరికపు జీవనానికి మిట్లు నిర్మిస్తాడు. తన భాద్యత నిర్వర్తించడానికి ప్రజా పై కొన్ని ఆంక్షలు విధిస్తాడు. ఆంక్షలు రాజరికానికి మూలస్థంబాలు.ప్రజా వాటిని ఎత్తి పరిస్థితులలోనూ ఉల్లంఘించడానికి వీలు లేదు. అల్లా ఏ స్వాతంత్రము కొరకు ప్రజా అతని నాయకత్వాన్ని అంగీకరించాడో ఆ స్వాతంత్రం కోల్పోతాడు. కాని ఆశ్చర్యకరమైన ధీ ఏమిటి అంటే ప్రజా స్వతంత్రముగా ఉన్నట్లుగానే భావిస్తాడు. ఐతే అతని జీవనానికి రక్షణ ఉంటుంది. నాయకత్వం అంగీకరించిన తరువాత అతను పొందే ఏకైక లబ్ది రక్షణ మాత్రమే. తన రక్షణ తాను చేసుకోలీని దుర్బలుడు, అందుకే నాయకుని ద్వారా రక్షణ పొందుతాడు. తన రక్షణ తాను చేసుకో గలిగిన వాడు బలవంతుడు. తన రక్షణ ఏ కాకుండా ఇతరుల రక్షణ కూడా చేయగలిగిన వాడు నాయకుడు. ఇక్కడ దుర్బలుడు మరియు నాయకుని అస్తిత్వం దీర్ఘకాలం మన్నుతుంది. బలవంతుడి అస్తిత్వం గాలిలో దీపం లాంటిది. అందుకే బలముతో బాటు నాయకత్వ లక్షణాలు ఉండాలి, అలా కాని పక్షంలో అతని జీవన రక్షణకు నాయకుని ఆశ్రయించక తప్పదు.అయితే సాధారణ ప్రజా కంటే బలవంతునికి ఉన్నత స్థానం ఉంటుంది. ఇలా బలవంతుడికి, సమర్తుడికి అతని యోగ్యతని గుర్తించి తగిన స్థానం కల్పించడం నాయకత్వపు లక్షణం. నాయకుడను వాడు అన్నివిధాల ఉన్నతుడై ఉండాలి. బలమైన వ్యక్తిత్వమున్న వాడు నాయకుడి అవుతాడు...vali,15-1-1998; 12.55pm
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