Banking Sector overview.

What is Bank:
A bank is an entity that is engaged in operations of depositing and lending the money. Channels used by a bank for conducting its business are Branch, Electronic (Netbanking), Phone, Mail, Direct sales and brokers and agents. Different lines of business (Engines) of banks are Core Banking, Insurance, Asset Finance, etc as shown below.

Source: http://www.howbankswork.com/images/framework1.gif

Primary operation of Bank:

1. Accept deposit
2. Lend money
3. Invest.

Secondary operation of Bank:

1. Demand Drafts.
2. Issuing Letter of Credit.
3. Bank Guarantees.
4. Forex Transactions.
5. Safe Deposit Lockers.
6. ATM Debit Cards.
7. Credit and other plastic cards.


Banking Sector:


Banking sector in India is growing and it is very well governed by RBI (Central Bank of India). In India there is lots of Mergers and Acquisitions happening in the banking sector. Small banks are taken over by the large banks to increase their business and use its operational efficiency for scaling the business.

Indian economy is growing and a growing economy requires strong banking system. In 2008 the Indian economy grew at 7.1%. We are expecting a growth of 6.8% in 2009. Our Banking system is very strong and well governed. It is because of this strong system, we were able to face the Global recession and Sub Prime issue in US in a much better way. Indian Banking sector is recognized across the world.

Data Source: World Bank.

If an economy is growing, it means that the Industries in the economy is also growing. Thus it will result in increase in Banking business as companies will require funding from Banks. Indian Banks are growing strongly every year. Banking firms are generating high profits every year and growing every year.

Competition is also growing in this sector as there are many companies who are targeting same customers. But this competition is required for the sector as it is keeping the interest rate low and at par with all other banks. If they increase the rate the customer has many other options, hence the business will go to other company. What customer wants from bank is personalized service. This factor has become the key for getting customers.

Key Points:

1. Supply: Liquidity is controlled by Reserve Bank of India (RBI).
2. Demand: India is a growing economy and the demand for the credit is high though it could be cyclical.
3. Barriers to entry: Licensing requirement, investment in technology and network.
4. Bargaining power of suppliers: High during the period of tight liquidity.
5. Bargaining power of customers: For good creditworthy customers bargaining power is high due to availability of large number of banks.
6. Competition: High between public sector banks, private sector banks and foreign banks along with Non Banking Finance Companies (NBFC).


Ratings and Balance Sheet size of Banks in India:


Overall Banking Sector size is approximately Rs. 52.519 lakh cr. Some of the fasted growing banks in India are SBI, ICIC, HDFC, Bank of Baroda, etc.
 
Important data on Banking Sector:


• Q3 GDP growth of Banking sector is 6.8% in 2009.
• RBI’s projection for credit and deposit growth for FY10at 18%.
• Strong capacity utilization in sectors like Auto, Steel, cement, real estate, etc.
• CRR: 5.75% as per RBI policy declared on 29th Jan 2010. Increased by 75 BPS.
• Repo Rate: 4.75%; Reverse Repo: 3.25%.

Inflation in India is increasing and its reaching 7%. Hence there were some changes expected in the Banking sector in order to curb the excess liquidity. Changes in the CRR (Cash Reserve Ratio) and Repo rate were expected. On 29th Jan 2010 the RBI increased the CRR rate by 75 BPS from 5% to 5.75%.


Indian banks enjoyed high level of money supply, credit and deposits as a percentage of GDP in FY09 as compared to FY08.

Thanks,
Nimesh.

Nimesh Marfatia in Sakaal Times - microSCOPE 2010.

Coverage of microSCOPE in Sakaal Times - 29th Jan 2010. In Picture from L-R Mr. Sunil Vitkar (Owner - Aditya Snacks), Nimesh Marfatia (Student - Europe Asia Business School), Ms. Uma Ganesh (CEO - Global Talent Track Pvt. Ltd.).

*Due to limitations of space the tables might cross the screen size, you can click on the table to view the complete table.

Thanks,

Nimesh

Micro Entrepreneurship Exercise - micro SCOPE 2010 @ EABS.

Have we ever imagined, how does a micro entrepreneur (Tea Stall, Wadapav, Sandwich, Dosa, etc . vendor) manages his business?? How does he plan his business activities?? How does he takes important decisions?? How he generates and manages profit, Etc.. Doing a business after learning Management is not an easy job. Just imagine what will the situation be, if one does a business without knowing management. To understand this situation, we got an assignment from our college to spend a day with a micro business. The background of the assignment is given below:

Background: The assignment requires each 1 year PGPM student to adopt a small or a micro business which they will be observing very closely in order to get an insight into the functioning of the business. The size of the business setup has been deliberately chosen to be small so that it is easier for the students to get overall knowledge of the end-to-end business. During the end of the process students can create a value proposition for the business to help him in moving up the value chain.

Duration of the Initiative: Four Months – 1st Jan – 30th April.
Day of Operation – 28th Jan, 2010 morning till closing hours.

I had selected a micro business (Aditya Snacks) located at Viman Nagar in Pune. I started my day at 8 am in morning. The stall opens at same time and we had a calculation of inventory that was brought over for the day. The team was ready and started preparing the food items. Items prepared were (Wada Pav, Idli, Poha, Upma, Tea, Dosa, Medu Wada, Dal Wada, Utapha).

The preparations were made in batches, so that they could stay for 1-2 hours and once it gets over the next batch of food was prepared. We started getting customers from 8:30 am. This stall is quite known for the breakfast and most of the customers come to the stall between 8am -11am in morning and 4pm – 7 pm in evening. The batches that were prepared during this time was in higher quantity.

I was surprised to see the system in which the things were take care at the stall. It was professionally managed and the service was quick which the customers were enjoying it. Goods more than Rs. 50 were sold on an average every minute during the peak hours.

I had collected some statistics from the owner and the details are given below:
 Average Daily Turnover of the stall was Rs. 10500. Below is the list of the item and its quantity that are sold on an average on daily basis.

 
 
 
 
 
 
 
 
  
 

 The stall is opened 6 days a week. And thus the monthly turnover approximate is Rs. 221520 (Rs. 8520*26 days).

 Stall was started in year 2005 by Mr. Sunil Vitkar taking into consideration the IT park developed (Giga Space). He was able to identify the potential of that area before taking this decision.
 He made an investment of Rs. 2.5 lakh (self financed) for beginning this stall. All the assets are owned by the owner and it is not leased.
 5 people are employed by the Snacks stall and salary of Rs. 30K is paid monthly.
 Return on Investment is 30-40 % annually.

The owner Mr. Sunil wants to expand his business and has a vision of starting his hotel one day. I liked the passion he has and also his vision. We management graduates are taught about this. Mr. Sunil has studied till Std 10th i.e. S.S.C. only. He still manages his business well with limited qualification due to some constraints. He also gets involved in the work if any employee is not available.

We calculated the inventory and cash collected at the end of the day. The details of inventory are as given:

 
 
 
 
 
I was surprised to see the accuracy of the inventory prepared. Materials worth Rs. 83 were only wasted at the end of day. The waste was only of 0.97%, which is great.





I did SWOT Analysis for the stall with the help of the owner and the result are as below:

Strength:
 Variety of Food items.
 Location of Stall.
 Competitive price.
 Quality of food items.

Weakness:
 The stall is on Road and some potential clients might underestimate the quality of food items.
 Capital required for opening a hotel is not available.

Opportunities:
 Start Canteen services (snacks) in companies.
 Tiffin services for companies.

Threat:
 Competition from other vendors on road.
 Competition from fast food hotel in the area.
 PMC Attacks.

Suggestions given by me:
 Clean the premises of the stall.
 Put plastic bag in the dustbin and dump the same at the end of day.
 Prepare a Menu Card and Display it on the stall and on the road where the stall is located.

 Start preparing Dosa’s in butter and charge the cost to the customer.
 Increase the variety of Dosa’s and Utapha’s. ( Mysore Dosa, Cheese Dosa, etc.)
 Play soft music (not songs) during the daytime and in evening.
 Start supplying the snacks to canteens in companies of IT park.

From my observation and learning, I found that there is a huge potential for the micro entrepreneurs to grow in this country. But this is not legal in our country and thus these people face problems and have to bribe the BMC’s to maintain their business. Overall, it was an interesting experience and great learning. I thank my college for giving me this opportunity to work with micro entrepreneur and understand their way of doing business with limited resources. They are still able to make profits out of these limited resources.

I will definitely use the important learning in my own venture. Its very important in today’s scenario to reduce the cost and generate the maximum profits with the limited resources.

Thanks,
Nimesh.

Stock Picks - Please read disclaimer in Earlier Posts

Dear All,

I know that the subject line reads “Play it safe” but that does not mean that you do not play at all in the markets. I write this because I know for a matter of fact that most of the traders & investors on this list stayed away from buying in the markets yesterday even after we suggesting a strategy to invest in this market. The strategy of 10%x10 was for the weak hearted and you should modify this strategy based on your risk taking abilities. Everyone who shied away from the market at 8000 or lower levels on the Sensex was repenting all through 2009 & finally when you came to the party by late October/November the prices had already sky rocketed. Remember that every dip in this market is actually a long term buying opportunity.

We have a major advise for you’ll i.e. first define if you want to be traders in the market or rather be investors in the market. Here are a few thoughts that will help you decide your stand in the market.

• Investors do not back out of stocks with just a 10% gain as against a trader who is happy with even a 1% gain off the stock
• Investors think long term (beyond 6 months at the very least) and are willing to average at lower levels if the stock falls in price as against a trader who get out of the stock if the price falls below his stop loss levels. A trader is mostly unwilling to average the stock he purchases.
• Investors play it safe and buy stocks with good fundamentals & research as against traders who are more than willing to buy anything that will show them the money.
• Traders play on small profits but multiply them with large number of buys & sells as against investors who generate fewer buys & sells but play it for larger profit %s. For e.g. a trader would have bought Reliance / Reliance Infra / SBI and several other stocks had at least a 1% gain opportunity within the day itself as against an investor who would have either averaged his stock or triggered a new buy.

Hope these points give you enough to decide your stance and in the market and make your life simpler in deciding when to enter as well as when to exit the market.

Getting back to our markets, we believe that there is heavy selling pressure hitting all the markets globally. Any company posting a bad result is getting badly sold off in the market; L&T being the case in study (10% wiped off in 2 days). Even companies that meet the analysts expectations are being sold off majorly; Google being the case in study(5% sell off in 1 day after results were announced). Money is being poured back into bonds after selling off in the equity & commodities markets making the dollar rise and everything else (crude, oil, base metals, shares, stocks) fall globally. Having said this the next question would be if the blood bath has ended. According to me, not yet. I believe that there is still some down side left in the market & we set the Nifty (CMP 5036) target at 5000 / 4972 & 4960. As far as our stock picks for the week go we have

·         Areva T&D – CMP 283.5

o   Target 1/2/3 – 286/293/297

o   Stop loss 272

·         Educomp – CMP 716.6

o   Target 1/2/3 – 725/730/738

o   Stop loss 700

·         Hindustan Uniliver – CMP 257.8

o   Target 1/2/3 – 260/263/267

o   Stop loss 251

These are all high risk calls since I am expecting almost every alternate stock in the BSE A group to fall by at least over 1% on or before 28^th of January 2010. I have a lot of short calls in the market if anyone is interested, then do drop me an email before 4pm. Also, I am heading out of town today at 7pm and will be back on the 27^th so till then I will not be available for your stock queries.

This week is going to be tough for all you bulls / long only players out there. For all you bears out there is a minimum of 30% on margin money to be made on every alternate stock in the BSE A Group segment so play it wise and enjoy minting money.

PS: One of you had asked me if they could buy ABAN at 1460+ levels where we had advised you to wait. We still advise you to wait before buying it even at 1330 levels.

Bank Rankings in 2009 as per the Size of their Balancesheet.

*Due to limitations of space the tables might cross the screen size, you can click on the table to view the complete table.

Source: Businessworld Magazine.

Pooja at Office - 20th January (Vasant Panchmi)

Vasant Panchmi is known as an auspecious day for starting a good deed. We decided to do a pooja in our office on the same day. As the decision was taken on short notice, the pooja was attended by only first family members of myself and Dewang.

With the help and support of all our well wishers we are able to reach at this level. We are on the verge of completion of our office infrastructure. We will be inaugurating the office soon and we will send out the invites to all of you.

Thanks again for your warm wishes and support.

IPO Pipeline - January.

*Due to limitations of space the tables might cross the screen size, you can click on the table to view the complete table.

Stock Picks - Please read disclaimer in Earlier Posts

Following are the stock calls carried forward

·          Reliance Infra – Long since 1126 for a target of 1160 (2% return with a target of 1147 was achieved with the intraday high of 1153)

·          IFCI – Long since 53.9 for a target of 56 / 58 /68

·          Long Hero Honda – CMP 1694 for a target of 1710 / 1720 (2% return)

Following are the new recommendations

·          Godrej Industries – Long @ CMP of 169.7 for a target 173/175/178

·          HDFC Ltd. – Long @ CMP of 2510 for a target of 2540

·          Maruti Udyog – Long @ CMP of 1419 for a target of 1450 / 1463

Disinvestment in FY10 and FY11.

The disinvestment secretary Sunil Mitra said that the government was likely to mop up more than Rs 24,000 crore in fiscal 2010. The primary route for this fund raising will be through initial public offers, or the listing-led approach, rather than follow ons. "FPOs (folow on public offers) will happen only if companies need money.

The objective is to unlock greater shareholder value in the government’s public sector undertakings (PSU) and that is probably going to be the main thrust. if there are listed companies that wish to go to the market and raise money and go for FPOs, then nobody is going to stop them really.

IPO’s expected in FY11 – BSNL and Coal India. One of the most awaited ones in the Public sector. Divestment of Engineers India Ltd (EIL) should happen by FY11. SAIL (Steel Authority Of India), which is need of funds will also tap the equity market in FY11 by FPO (Follow On Public Offer).

Under the disinvestment policy, 50 unlisted companies with a positive net worth and profit for three years, and 18 listed companies that have less than 10% floating equity, would tap the market. With an ambitious government-backed line-up, the stock market could see 17-18 such issues in next fiscal year and an equal number the following year.

The government action plan for PSU disinvestment, which is expected to be in place by March, would aim for no more than a three-week gap between two PSU issues.

NTPC Ltd, National Mineral Development Corporation (NMDC), Satluj Jal Vidyut Nigam Ltd (SJVNL) and Rural Electrification Corporation (REC) would be going to the market before March 31, 2010. Steel Authority of India, MMTC Ltd, Coal India and BSNL are the next to see the dilution of government stake by 10% in 2010-11.

Disinvestment expected in 2010:

Companies with Government Holding of More than 90%:

Companies with Government Holding of 80 - 90%:

Thanks,

Nimesh.

Source: Moneycontrol.com, Articles.

Disclaimer The information contained in this report has been obtained from sources believed to be reliable. Investors who invest on the basis of recommendations mentioned in this report do so at their own risk.

Stock Picks - Please read disclaimer in Earlier Posts

Dear All,

Following are the stocks we have recommended

• Reliance Infra – Long since 1126 for a target of 1147/1160 (1% return with a target of 1137 was achieved with the intraday high of 1142)
• IFCI – Long since 53.9 for a target of 56 / 58 /68

Following are the stocks we recommend for this week

•       Short Aban Offshore – CMP 1487.3 for a target of 1472
• Target Achieved
•        Long Canara Bank – CMP 392 for a target of 400 (2% return)
• Target Achieved
•        Long Hero Honda – CMP 1694 for a target of 1710 / 1720 (2% return)

Rest all stock ideas would be closed as of today.

Mutual Fund Performance Report as on 8 Jan 2010.

Please find below Mutual Fund Performance Report as on 8 Jan 2010. Mutual Funds have performed well since last year and the returns given by them are also exceeptional. The funds have outperformed the Indices when we compare the returns of the Fund with the Indices in 1Yr, 2Yr, 3Yr and 5 Yr. We recommend Mutual Fund Investments as a part of your portfolio to diversify the risks and also generate good returns.

*Due to limitations of space the tables might cross the screen size, you can click on the table to view the complete table.

Thanks,

Nimesh

Stock Picks - Please read disclaimer in Earlier Posts

We have not had much time to post / update our blog since the market hours and other commitments have been pre-occupying us. However our mail service subscribers have been getting updates to our stock ideas on a regular basis with updates to the same.

Following are the changes from our earlier post (http://denipconsultants.blogspot.com/2010/01/stock-picks-please-read-disclaimer-in_11.html)

• Amtek Auto – Long since 186 for a target of 196 (5% return)
•  DLF – Long since 390 waiting for best target of 412 (Target 3 of 400 met as mentioned in the Weekly Market Outlook) (3% return already met with, at best target we achieve a 6% return)
• Unitech – Long @ 90.4 for a target of 95 (5% return expected)
• Satyam – Long since 115.95 for a target 125 SL at 114
• IFCI – Long since 53.9 for a target of 56 /58 / 68

All other stock ideas were either closed / completed.

You can read the extract of the end of day update email sent to our subscribers at http://denipconsultants.blogspot.com/2010/01/email-extract-mail-service-subscribers.html

We still advise you to subscribe to these services to get efficient with our stock ideas by emailing us at dewang@denip.in / nimesh@denip.in (Free of charge service).

Email Extract - Mail Service Subscribers - Standard Disclaimer Applies

Following is an extract of the email sent to our subscribers for your reference. We advise you to subscribe to these services which are completely free by email us at dewang@denip.in / nimesh@denip.in

Email Extract:

Dear All,

The markets witnessed price decrease with heavy volumes as compared to the previous session so far. The screen saw much more RED than Green. The combination of price decrease along with a decrease in open interest for most stocks suggests that the markets witnessed “Winding up of long positions”. For the third consecutive session the markets witnessed more activity towards CALL rather than PUTs which also signals weakness in the markets.

As far as our stock ideas go, we are going to be carrying forward all our calls for the week and do not have any new calls since although the markets have witnessed a sell off the undertone remains positive. Following are the calls that are carried forward for the week.

·         Nifty – Long since 5244 for a target of 5300 (First target of 5270 met)

1.       Our stop loss at 5180 got violated with the Nifty testing 5176 but it looks like with the close above 5200 i.e. at 5243 Nifty will scale back again to 5300.

·         Amtek Auto – Long since 186 for a target of 196 (5% return)

1.       Closes at 183.64 and day low of 180.35. stop loss not yet triggered which is at 180

·         DLF – Long since 390 waiting for best target of 412 (Target 3 of 400 met as mentioned in the Weekly Market Outlook) (3% return already met with, at best target we achieve a 6% return)

1.       Closes at 387.85 with a high of 389.7. is a rate sensitive stock and hence got corrected.

·         HDFC Bank – Long since 1713 waiting for Target 3 (1750) & Best Target (1760) (Target 2 of 1732 met as mentioned in the Weekly Market Outlook) (Only 1% return with target 2 being hit but at best target we achieve a 3% return)

1.       Fell another 1% to 1689

·         Reliance Industries – Short for a target of 1050. CMP 1081 (3% return)(We are still bearish on Reliance Industries and hopefully the target will be achieved in a week’s time)

1.       Is finding major support at from 1060 – 1080. We advise you to close the short on this stock.

·         Unitech – Long @ 90.4 for a target of 95 (5% return expected)

1.       Rate sensitive stock and hence has been correcting since the past few days.

·         Satyam – Long since 115.95 for a target 125 SL at 114

1.       Closed at 116.7 with a day high of 117.4; on its way to 125

I have also attached the weekly market outlook we sent on Sunday night, in case some1 has misplaced/deleted it.

Thanks,

Dewang

Economic Times Awards 2009.

It was really good event for recognizing the contribution of great guns of India Inc. The selection for the awards were appropriate according to me all the winners deserved the award. I think this platform encourages them and also recognizes their contribution towards their company and the country. It is very difficult to compete with so many great CEO's and Top Executives to receive this award. Overall it was great Job by Economic Times, the organizer of event.

The Awards ceremony was attended by more than 400 CEO's which included all the big names of India Inc like Mukesh Ambani, Anil Ambani, Anand Mahindra, Kumar Birla, etc. Three top cabinet ministers, i,e.Pranab Mukherjee (Finance Minister), Anand Sharma (Minister of Commerce & Industry) and Kamal Nath (Minister of Road Transpost & Highways) also attended the awards. Bihar Chief Minister - Nitish Kumar, CEO coach Ram Charan, Aamir Khan and many other leading personality were preswent for the award at the Trident - Oberoi in Mumbai.

The winners of the awards are:

1. ET Life Time Achievement Award - Mr. Keshub Mahindra (Chairman Mahindra & Mahindra) receiving the award from Mr. Kamal Nath.

2. ET Business Leader of the Year - Mr. Anand Mahindra (Vice Chairman Mahindra & Mahindra) receiving the award from Mr. Pranab Mukherjee.

3. ET Company of the Year - Hero Honda. Mr. Pawan Munjal (MD Hero Honda) receiving the award from Mr. Kamal Nath.

4. ET Global Indian of the year - Mr. Ram Charan receiving the award from Mr. Pranab Mukherjee.

5. ET Business reformer of the year - Mr. Nitish Kumar (Chief Minister Bihar) receiving the award from Mr. Pranab Mukherjee.

6. ET Business Woman of the year - Ms. Vinita Bali (MD Britania Industries) receiving the award from Mr. Anand Sharma.

7. ET Emerging company of the year - Idea Cellular. Mr. Sanjeev Aga (MD Idea Cellular) receiving the award from Mr. Anand Sharma.

8. ET Entrepreneur of the year - Mr. GV Krishna Reddy (Chairman GVK Group) receiving the award from Mr. Kamal Nath.

9. ET Corporate citizen of the year - TERI. R.K. Pachauri (Director General) receiving the award from Mr. Kamal Nath.

Thanks,
Nimesh.

Stock Picks - Please read disclaimer in Earlier Posts

Following are the ideas we are carrying forward on stocks & indices:

•  Nifty – Long since 5244 for a target of 5300 (First target of 5270 met)
•  Amtek Auto – Long since 186 for a target of 196 (5% return)
•  DLF – Long since 390 waiting for best target of 412 (Target 3 of 400 met as mentioned in the Weekly Market Outlook) (3% return already met with, at best target we achieve a 6% return)
• HDFC Bank – Long since 1713 waiting for Target 3 (1750) & Best Target (1760) (Target 2 of 1732 met as mentioned in the Weekly Market Outlook) (Only 1% return with target 2 being hit but at best target we achieve a 3% return) 

Following are the new stock ideas for the week
·         Reliance Industries – Short for a target of 1050. CMP 1081 (3% return)
·         Unitech – Long @ 90.4 for a target of 95 (5% return expected)
·         Bharti Shipyard – Long @ 296.5 for a target of 311 (5% return expected)

Also, as one of my friends had asked me about Clutch auto which is currently trading @ 70.9 & my advice to him would be to book profits around 75 – 77 levels instead of betting for a target of 120. I believe that 75 – 77 levels would be hit because of a huge volume built up in this stock. However the stock has had too many gap up openings and is bound to fall and check those gap up openings starting from levels of close to 58.

Weekly Market Outlook - Sent to Email Subscription Clients

We also recommended buying the following stocks / index during the market hours to our email subscription clients:

• Nifty - Long Nifty @ 5244
• Target 5270 / 5300
• Stop loss 5180
• Target 1 of 5270 hit and 5300 almost completed with a day high of 5295
• Amtek Auto - Long @ 186
• Target 196
• Stop loss 190
• Amtek Auto had a day high of 193.5 & 196 was almost hit.

Subscribe to these services Free of Cost by sending an email to dewang@denip.in / nimesh@denip.in

New Standardized lot size for derivative contracts on individual securities.

SEBI has standardized the lot size for stock future. The revised lot size is given below:

The revised lot size will be effecice from 31 March 2010.

The Stock exchanges shall review the lot size once in every 6 months based on the average of the closing price of the last one month and whenever warrented, revise the lot size by giving an advance notice of atleast 2 weeks to the market.

If the revised lot size is higher than the existing one, it will be effective for only new contracts.

The circular is available on the SEBI website http://www.sebi.gov.in/ under Derivative-Circulars.

 

Stock Picks - Please read disclaimer in Earlier Posts

Following are the stock picks for tomorrow

• Aban Offshore - CMP 1443.9
• Target 1490 & Stop loss 1380 (3% gain)
• Target completed with a day high of 1517
• Abhishek Industries - CMP 15.5
• Target 16.1 & Stop loss 15 (4% gain)
• Target completed with a day high of 16.2

Nifty looks weak & so do most of the stocks. Still waiting for market to give us some direction.

As always updates to the post mentioned in green.

Stock Picks - Please read disclaimer in Earlier Posts

Hope you’ve made money off the stock ideas we have been sending across.

1. http://denipconsultants.blogspot.com/2010/01/stock-picks-please-read-disclaimer-in_06.html
2. http://denipconsultants.blogspot.com/2010/01/stock-picks-please-read-disclaimer-in.html

For tomorrow there are not many picks and we are waiting for the market to give us a direction. Most of the stocks seem to be on the verge of break out or break down and are very close to their support levels as well. So we are going to follow a wait and watch strategy for tomorrow.

However here are a few stock for all you compulsive traders out there:

• Idea Cellular – CMP 61.3. Target 62.3 & Stop loss 60.4
• Day high of 61.8 but closed at 60.9 closer to our stop loss level
• IDFC - CMP 165.5. Target 168 & Stop loss 162
• Day high of 167.2 but then closed at 164.95.
• IVRCL Infra - CMP 369. Target 375 & Stop loss 365
• Target completed with a day high of 385.7

Have a safe trading session.

As always updates to the post mentioned in green. To know what to do with Idea & IDFC subscribe to our mail services by emailing us at dewang@denip.in / nimesh@denip.in

Gold Performance from 2000- 2009 and List of Auspicious days to Invest in Gold in 2010.

Performance of Gold 2000-2009.

Since 2000 we can see that the value of Gold has increased consistently. From the below table we can see that the value of gold has increased by almost 400% in last 9 years.

Demand for Gold has increased year by year and is still increasing. People in India buy Gold for purposes like investment, jewellery, hedging, etc. Following are the days that are considered to be auspicious for buying gold in India in 2010.
 
 

 
1. Pushya Nakshatra:

Pushya, or Pushyami or Pusya, is one among the 27 nakshatras and the day Pushya Nakshatra falls is considered highly auspicious for beginning new ventures, investments and purchases.

2. Gurupushyamrut:
Gurupushyamrut, or Guru Pushyamrit yoga, is the day when Pushya Nakshatra falls on a Thursday. Gurupushyamrut yog day is considered highly auspicious to pray to Goddess Lakshmi and seek her blessings.

3. Gudhi Padwa:
Gudhi Padwa is celebrated on the first day of the Chaitra month, and is celebrated as New Year's Day by Maharashtrians and Hindu Konkanis.

4. Akshaya Tritiya:
Akshaya Tritiya, also known as Akha Teej is a Hindu holy day, that falls on the third Tithi (Lunar day) of Bright Half (Shukla Paksha) of Hindu month of Vaishakha. This day is ruled by god Vishnu, the preserver-god in the Hindu Trinity. It is also traditionally celebrated as the birth day of the Hindu sage Parashurama, the sixth avatar (incarnation) of the god Vishnu. According to Hindu mythology, on this day the Treta Yuga began and the river Ganges, the most holy and sacred river of India, descended to the earth from the heaven. The day is particularly considered auspicious for buying long term assets like gold and silver, including ornaments made of the same; diamond and other precious stones; and the real estate.

5. Dussehra:
The tenth day after Navratri is called Dussehra, on which number of fairs are organized throughout the northern India, burning effigies of Ravana.It is also called “Vijayadashmi” as this day marks the victory of Lord Rama over Ravana. VijayaDashami is considered to be an auspicious day for the Indian householder, on which he worships, protects and preserves 'Shakti' (power).

6. Dhanteras:
Dhanteras is the first day of the five-day Diwali Festival. The festival, also known as "Dhantrayodashi" or "Dhanwantari Triodasi", falls on the auspicious thirteenth lunar day of Krishna Paksha in the Hindu month of Ashwin. The word Dhanteras, Dhan stands for wealth. On Dhanteras, the "Owl" form of the Goddess Laxmi is worshiped to provide prosperity and well being. Dhanteras holds special significance for the business community due to customary purchases of precious metals on this day.

7. Lakshmi-puja:
The third day of the festival of Diwali is the most important day of Lakshmi-puja and is entirely devoted to the propitiation of Goddess Lakshmi. On this very day sun enters his second course and passes Libra which is represented by the balance or scale. Hence, this design of Libra is believed to have suggested the balancing of account books and their closing. Despite the fact that this day falls on an amavasya day it is regarded as the most auspicious.



Source: moneycontrol.com