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HAPPY NEW YEAR 2011

Friday, December 31, 2010 | | 0 Comments |

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Wish you happy new year to all my reader and family of Money Drives Life

Wish this year brings prosperity bigger than 2010. Your dream will fulfill in 2011.

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Dollar-Ruppes relationship in Indian Stock Market, How to use it for make profit?

Sunday, December 26, 2010 | | 0 Comments |

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Most of Investor when near to study Technical analysis, then the arises question about various currencies and their effect of Indian stock market. It obvious, we are cautious and want to know everything which affect to our home market. That is very clear that currencies are affect each other market. Currency of one country represent his market condition truely (There are some exception, some country appreciate their currency as well some dominant their own currency. Still I like to say that both of those artificial moves will prove as dangerous to their own currency. ) My point is that currency try to indicate economic health of that country. You can check out total global economic health with major currencies. Just list your desired and market leader currencies to make your own index.

Question arises in mind in Initial days of my study, " Are Dollar really affect to Indian stock market?" Dollar is powerful currency in world. You can say it global currency ( Even though big fall in global economies as well as U.S. economy, still Dollar retain it's position.) Yen is following dollar to dethroned, but it not possible. In coming future it will be possible. EURO also try to dethroned, it is not become truth due to Ireland, Spain are shaken EURO. DOLLAR is still global currency.

After lot on investigation and analysis I am try to put Dollar-Rupees relation ship in-front of you. So it will help you. This is not for only Dollar . You can apply this theory same way to other major currencies also. I take Dollar be because it is global currency in now days. In future you can use it for YEN also.

How foreign investor use currency as double weapon to invests and harvest double profit from emerging economies?

FII and FDI both makes their investment moves accordingly the Dollar-rupees relation. They are try to gain double profit in their moves. One in field where they invested money and second is at difference in their Dollar and Rupees difference. So they are able to draw profit on double end. That's not magic. It is real game of number. Don't believe on me. Just go through the following example.
example: (On real data)



 If FII had invested money in India year 2002 then average rate of Dollar-Rupees rate is near 47. SO if FII or FDI invested 1 Dollar, they had get 47 rupees for exchange. Now they invested 47 Rupees in Indian stock market, that time NIFTY is nearly 1000.

Now they are ready cut ripe fruits in 2008 where Nifty on 6000 mark.
How they get double profit opportunity;

1) FDI or FII get benefit of Indian stock market. Indian stock market increase five fold from 1000-6000.

2) Just look at USD-INR graph, you should surprise. In 2008 dollar is 40. That mean if FII or FDI want to withdraw their money
from Indian Stock market. Then they can buy 1 dollar by spending only 40 rupees in 2008. They get benefit of money exchange.
Simple math 47-40=7 shows profit for 1 dollar, beside they able to earn profit due to good growth in Indian stock market.

I think this illustration is enough. You can now understand how to analyse and use USD-INR relationship while you think for investment in our stock market. You should found it useful in long term as well as short term investment.

India now started currency exchange. You would like to checked detailed HERE.

If you have queries regarding this topic, feel free to ask me.

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What is auction system in stock market? How AUCTION works?

Wednesday, December 22, 2010 | | 0 Comments |

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In day-to-day life trader faces so many problem. They are not aware common words and an action of market. So they become cause of anxiety and worry. Also they have to run to ask someone other. Mostly they are preferred to ask to their broking house. I found that over time rather than ask to authority person they are asking to bolt operator. They deliver the answer as per their knowledge. Some answers are satisfying them, some not. I try to provide such term and action in detailed, not in technical manner but in understanding manner. So one can easily understood those terms, words, and actions while they are playing in market.

Auction System is one of the confusing terms for most of trader. Do you ever encounter problem of auction? Do you credit some money in your account instead of delivery of stock? Or you may face short sell on upper circuit, this may cause in unable to deliver stock to buyer of stock. If you are doesn’t know auction system, this will cause to run away for ask to broker. This could raise your heart rate high.

What is auction in stock market?
An ACUTION is procedure done after trader fail to delver stock or partially deliver stock to buyer. Suppose you sold 100 stocks CAIRN ENERGY, but you don’t have 100 stocks in your D-mat account. You have only 60 in your account. So there is auction of 40 or you may not have even 100 of CAIRN ENRGY. In such case there is auction of 100. This is protect interest of buyer of CARIN ENERGY

There is auction period in market. If the there is no buying of stock in auction period, then position will be square-off as per guideline of SEBI. So buyer/seller gets whether stock or benefit of stock from market. In auction transaction is squared-off at highest price of stipulated time or 20% above the last closing price. Difference between buying and selling deducted from defaulter trader and credited to beneficiaries. So in most cases you may observer that there is some money credited to your account when deliveries of stock not getting to you. There could be both BUY and SELL typed of auction are done in market.

These cases of auction are normally occurring in low volume stock, where volatility is very high due to higher speculation. If you are buyer and you don’t get delivery of stock, then just follow up of it. You should entitle to either get delivery of those stock or difference of buying or auction price. So don’t confuse. Call your broker and ask them relevant question.

I hope do you understand the concept. I think this is enough explanation for auction. If you have queries regarding that ask your broker or me. This is not actual procedure of auction. I try to provide you outer line,” How to auction works?” You can ask me any other term concept, which you didn’t understand or know. I will try to solve them my level of best. You should post your queries in comment section.

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How to place STOPLOSS order in Sharekhan

Tuesday, December 21, 2010 | Labels: | 0 Comments |

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Now mobile platform for trading is become common thing with passing days. This is key in hand of trader and investor, to place their order by their own hand. This is not always easy to good tools and first place. There are so many problem arises in front of new user. There may be simple problem, but when they stand in front of you, then those simple problems feel like climbing Mount Everest. I am not joking. I faced that problem in my initial days of market. Still daily I am encounter with various problem and try to solve them.

Stop-loss order is still become tedious problem for my-self. I was sitting on BOLT almost one month without remuneration to place order of trader in my friend’s office. Even those one-month are unable to teach me, how to place stop-loss order (Most of trader are against stop-loss order. They want to play order in naked.) So I was not familiar with stop-loss order online myself. Over time I feel ashamed to ask any other for explanation. Ignorance and hiding is hurdle in learning new thing.

Before you learn about, “How to place stop-loss order?” You should know what is stop-loss. If you are know this, then this is best thing. This explanation for other for who doesn’t know. This is short explanatory.

Stop-loss order:
    Stop-loss order is provision of trader against market odds. Suppose you Buy for e.g. Suzlon at 92 , you are sure that it will go upto 100. There may be chance to market is against you, so you should keep in mind that if Suzlon broke level of 90 it will weaken. So you can place stop loss of 90. To protect your capital you acquire marginal loss of 2.


You can also stop-order on buying side also. In short condition.
While you putting stop loss order;

Following are confusing term on order form;

Trigger Price: on online pallets of order form contain Trigger price.
    As above example of Suzlon you should place Trigger price as 90.50\

Limit Price: Limit is bottom of price where you want to exit. i.e 90 in our case.

In sharekhan order form;
  1.  You select sell order form.
  2.  Place your desired QUANTITY.
  3.  Place TRIGGER PRICE in our example it is 90.50
  4.  Place LIMIT PRICE in our example it is 90.

So it as Suzlon’s price touch to 90.50, then your order should trigger and it reached to 90 then it will executed. So your stop-loss order will executed in band of 90.50-90.

CAUTION:  In case of sudden fall in your stock can create big gap. Your stop-loss order should not execute. In our case Suzlon directly traded on 91 to 86  in this case your order should not executed. So avoid it place wide gap between TRIGGER PRICE and LIMIT PRICE in volatile market condition.

You can also check my another article on Portfolio and watch list provider for India.

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Chinese language MANDARIN must need for Indians

Saturday, December 18, 2010 | | 0 Comments |

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Chinese Premier Wen Jiabao to visit INDIA in last week. There are many opportunity for businesses of CHINA and INDIA to grow their businesses in their field of acting. I know you all knows about this things clearly. I don't want to repeat those things. I just want to remind you again before proceeding.

Mandarin is official language of China. This is main concern of today's topic of article. Chinese economy is one of the fastet of economy. In China Mandarin used for office use, English is not used. So if you want to set your business in China, you are seeking business opportunity in India with help of Chinese OEM, if you are seeking job in China in all those cases you need to be in touch with Mandarin. So it is always best to learn Mandarin.

Now CBSE board propose to learn Mandarin to schools from standard VI. So it is always face positively. If you want to help yourself to boost business and make India as next super power, then adopt new emerg global language with English. This help us to nourishing our culture also. I know Indian are very east to adopt changes and learning new things. It is better way to learn new thing with protecting our identity.

There are various online free courses available on net. Need not to say Google will help us to find right course for us. If you found any good online free course for Mandarin, then I am requesting you to share with our reader. Knowledge sharing develope the human.

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YOU are going to RICH in next 10 year, How?

Monday, December 13, 2010 | | 0 Comments |

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Today one news attract me most which is published in Economic Times. Heading of this news is, " India 's richest years: How to make them yours too". I think also like to read this news. Obviously as citizen of India, this news denotes that we are going to rich in next twenty years. Don 't be in hurry for conclusion. Read latter part of heading, "How to make them yours too". In other way India going to rich, How about you ? Indian government have specified plan to make India rich. They have fruitful policy to achieve the double digit GDP.

Do you have such policy in your mind to makeyou rich? What can you do to taste the fruit of growing economy? There is huge chances to be a rich in next 10 years as copmapre to last sixty years. You have to make yourself prepare for this event. It is better to say future than event. First thing should get more chances to be rich near surrounding of work area. Another sure way is that right way of investment. Growing in economy is require more investment. If you invest in right area, you should gain maximum benefit of your investment. This article even denote that Gold colud reach to level of 10000$ for ounce means 1.4 lac ruppes for 10 gm shocking!!! I am also agree with this value of gold in future. Now you can imagine, how big Indian economy will grow? They predicted that size of Indian economy will be four to five time of current.
If your not initiate to act , then you shoul found yourself on same place. where you stand now ? In future inflation also on higher side to curb your buying power. So value of money should depreciated with respective time.

This article also suggest that there may be some sector which could be not grow as in past. There should be new area for investment will be open. You should be more vigilant to recognise opportunity.

My self conclude that if you are vigilant and keep yourself updated with recent activities, you should able to rich . This is the motto of this article to make you aware. I am prepare for that. What about you?
Feel free to write about your ideas regarding this article.

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NIFTY weekly view

Sunday, December 12, 2010 | | 0 Comments |

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In last week Nifty enjoy roller-coaster. From level of 6000 it enjoy free fall til the level of 5750. Pushing out itself more on bearish side. If you had good memory, then you remember that is level Nifty checked twice in Indian Stock Market.

If we are think 5750 is support level and 6000 is resistance , then we got clear view of Nifty range. We can trade in this level both buy and short side. Just keep in mind, range of Nifty. Once one of the side broken clear the position, if it against market trend.

In lasrt session market comes in neutral zone. Bulls and bear push to each other. Let's see what comes in this week.

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M.R.P. is really practised?

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M.R.P. is known to all very well. Maximum Retail Price (M.R.P. ) is setting by manufatured to sold his product with his profit. M.R.P. is price on which manufacturer agree to sold his product, he included all expenses from manufacturing cost to retailer margin.

Government keep eyes on lawful practice of M.R.P. Selling of product more than M.R.P. is illegal activities. There should be punishment to guilty part of chain.

As per law all it is set to save customer interest. It is also duty of consumer to do not pay more than M.R.P.

Recently you may witnesses to product like colddrink, Mineral water, food items are common among those product which sell higher than M.R.P in the name storing charges. Recharge Coupans of mobile companies are also those product, which selll more 5 to 10 %. Recharge coupan as are example of mob exploitation. Most of retailer are sell with reason that company of their product do not allow them higher margin.

This article are intend to make you aware, for do not buy more than M.R.P. This is appeal to regarding agencies to keep keen watch of fair trade practise.

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SIVER shines more than GOLD glitter

Friday, December 10, 2010 | | 0 Comments |

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Gold prices are touching to the sky nowdays. In India demand for Gold greater. Indian's like me, are always mad fan of gold. Gold is precious element. It is best option for secure investment. It awlays attract to womens as well as men for ornament. In last five year their is hike in price of Gold 3.5 time from 2005 Approx. Pricey Gold is keep new buyer away. Marriages and ornaments are basic cause for Gold, beside industrial use of Gold.

As economictimes there is higher demand of Silver. Siver comes as new instrument for investment Silver growth is 5 times from price of 2005. There is higher growth in silver return than Gold. Silver become to substitue in industrial use. Common people also like to invest in Silver in form of coin. They are not use it for ornaments, but they purchase it for growth in their portfolio. In India demand of silver increases day by day.

You can also look Silver coin as investment instrument. There is good scope in Silver price to increases. Most of bullion importer belives that still Silver has to go further. What is your view about Silver? Feel free to share.

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How to COPYRIGHT your work in INDIA?

Thursday, December 9, 2010 | | 0 Comments |

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I am fond of wiritting. From my childhood, I had hobby of reading. I am always wishing, I would be great writer( I am dreamt for it. Don't be serious. You should not bear to me. Still I am not writer and author also.). So I early age of adult, I was always keen about that there was stolen of original work. So I was always in worry that how protect my work from theft?(still I am not writting anything. One grat philosopher says that we are creature of fear, that's why we are in progress in physical world. I am forgotting his name..). I know this fear is virtual because I didn't have anything to protect from theft( still that come to net, I didn't write anything. Thanks to net for protect my dream and Sorry for bear me..).

I am always searchfreaking on the net. I had found, How to copyright in Indiq and where?

Why should you opt for copyright your

Copyright helps you to protrct your work from piracy. They are protect claims for rolyity which can be produced from your work. Copyright gives boost to new creation. They protect your work as
well as make aware to community that your work is copyrighted. Be serious about your work. It may rock the world in future.

Indian make available to copyright online. You can copyright your precious work here with simple process.

What should you can apply for copyright?

Your published or unpublished writting, photography, cinematogrpaphy, artistic work, you can apply for the copyrightin india. You can also apply you digital work like your web, only there is need to images and articles are to br applied seperately with proper fees.

How to copyrighy work?

You should get all information regarding copyright, it's fees, document requirment all things are avalilable on http://www.copyright.gov.in .

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Is it right time to buy in Indian Stock Market?

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This is common in investor that they are buying some stock or any other instrument to make profit by selling them on higher price. Normally as in market from last eight years I was observeing one common thing in loosing trade in most of investor's as well as trader. I know you know that very well. We want to buy on lower side and sell it on higher side to gain maximise . This is seem very easy, till you are not buying something in stock market. Once you are enter in buying position then you are realise, this is not easy to buy on low and sell it high. It checks your patience, your emotions. Market play one kind of game with inner soul. Most of time it become hunter of your hope. You feel the amazing fear as well as same time you keep light of hope in mind, in your heart. This war between fear and hope with respective time decide rewards in market that is profite.

You can feel tense as well as joy in market, as like physical life. That's why most of trader and investor are always engage in market. Stock market is not merely place of making trade in hope of profit. It is place of meditation, like temple. It is place to observe yourself. It is place of observe people, who are same creature like ourself. Our emotion in market gives meaing to market.

Most of time when there is buying opportunity in market. You are not dare to buy because opportunity always come with danger. Most of time when stock at low, economy as well market indes shows you havoc. Actually this is right time to catch fish. Everyone want to buy when oceain is quite, but it is not possible. You have to dare to buy in falling or bottomed market. In bottom market there always stock are on discount rate. Market will give you ample of time to buy. Just you have to understand that it's bottom. Just watch fisher man for right time. Don't make in hurry. When price on top, market maket want to sell their stock to you. So avoid being in trap in bullish phase.

If your are intelligient, you can easily understan what I say about Indian stock market. I think time for buying coming in near... Just give to setteled down market on it's bottom. There may be one deep in near future. Just allow market to go on with his own accelaration. Prepare yourself for buying.

I feel buying time come in near. What do you think about that? Tell me and my reader. There may be chance that you have diffrent view than mine. Don't hesitate to share your views.

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Top 4 stock watch list and portfolio provider for Indian Stock Market.

Wednesday, December 8, 2010 | | 0 Comments |

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Top 4 stock watch list and portfolio provide for Indian Stock Market.


In recent days mobile are become day to day gadget in India. Now Indian customer are shifting from chit-chatting to next generation of mobile use. They are started to follow market on mobile. They are now have market movement in there hand. This is possible due to mobile and GPRS technology, which is available on mobile. NSE also gives approval to trading from mobile. This is cause more and more investor are now attracted towards mobile to at-least watch stock ticker. They are more friendly to use mobile to watch stock quote on mobile. So one can handle and keep control on their portfolio, when he are away from market. Investor are invest their money in versatile stock group, so there are feeling worse to type stock name on financial website for get quote of desire stocks. This is cause so many financial website as well as official website of BSE (BSEINDIA) also provides facility to create portfolio as well as watch list for your stock.

My colleague was using Rediff Money portfolio service. Recently there was problem of that server to load watch list and portfolio on mobile. (There may be technical problem in server. I am not blame To REDIFF. I just indicate that there may be some critical condition occur on net.) This was becoming cause to make pressure of blood on high side on scale. So I feel neccity to have option for that. I gave him proper solution. Now he have option.
This is purpose of this article to give TOP 4 Portfolio provider for Indian Stock Market.

1.Rediff Money:

This is one of the fast and almost real-time portfolio and ticker display. I checked that there is only 4 sec. Delay in rediff's data transmission. Just you have to create account on rediff to access this service. This service attract me. This is very simple menu to add stock in watch list or in portfolio. There menu option are simple and easy for common investor.

2.Moneycontrol:

Moneycontrol is one of leading financial website on Indian horizon to provide portfolio creator or watch-list for investor's sake. Here also require account to use this services. On money control watch list little more delay in quote refreshment almost of 1 to 2 min. Money control provide simple and easy way to add and remove stock name in list of watch list. They are also one good feature is available, you can watch view of investor's on on particular stock. You can also post your queries for moneycontrol board.

3.BSEINDIA

BSE provide this facility for investor well being. There is also need to create account for using this portfolio tracker. Only I feel little cumbersome to create account on BSE. BSE only add stock which are available on BSE. This service not for NSE stock.

4.Yahoo finance:

You can create your portfolio on Yahoo also. There is to much more than 15 minutes delay for stock quote refreshment. Only value of Nifty spot is refresh on 4 sec. Delay. They also have other good features. You can watch stock price graph with various available tools to analysis.

I am not give any link of those portfolio's website. You can easily find on Google. Just search in google and go on the way to use ticker on live.

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NSE Introduced USD-INR Currency trading in INDIA

Saturday, December 4, 2010 | | 0 Comments |

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National Stock Exchange intoduced new instrument for trading for trader, it will be proved as new way to earn money for trader in India. This gift of Currency trading is announced by National Stock Exchange. This option trading done on hedging against currency fluctuations. This become alternative for secuity or equity trading in future. As per my view it will not alternative ,but become more supportive to all other type of instrument like equity, secuity option, future and also commodity.

Some important points are write by econmics times given below for your understanding without detoriote it's word and meaning;

A derivative instrument, currency option gives the owner the right, but not the obligation, to exchange money denominated in one currency into another at a pre-agreed exchange rate on a specified date. "To begin with the exchanges shall offer three consecutive monthly contracts and 1 quarterly contract. New contracts shall be issued on expiration of an existing month contract," the NSE added. According to the bourse, USD-INR options contracts shall expire at 12 noon, two working days prior to the last business day of the expiry month. The Reserve Bank of India and Sebi jointly regulate these products. While RBI approves the products, Sebi decides on the trading platforms. Worldwide, the currency derivatives market is bigger than the equities market. Earlier this month, Sebi gave its nod to the NSE and the BSE- backed United Stock Exchange for starting trade in currency options, but another bourse MCX-SX blamed the market regulator for discrimination against it, saying thet it was yet to get the approval. At present, futures trading in four currency pairs is being offered through the exchanges. These pairs are Dollar- Rupee, Euro- Rupee, Yen-Rupee and Pound-Rupee. In July this year, Sebi allowed bourses to introduce currency options on the US dollar pairing with the rupee. Two year ago, the market regulator allowed exchanges to introduce currency futures, a forex derivative contract to buy or sell one currency against other on a specified future date, at a price decided in the contract. Initially, currency futures were limited to rupee-dollar only. But in January 2010, it was extended to three more currencies--the euro, the British pound sterling and the Japanese yen--pairing with the rupee.

I am happy wiyh this new product offered by NSE. I think this is step of our financial sector as well as our economy to go on globe with strength. This helps Indian industry to hedge currency on local exchange. This will help big institute as well as small industry.

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NIFTY Prediction for 3 DECEMBER 2010

Thursday, December 2, 2010 | Labels: , , , | 0 Comments |

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Today NIFTY close on support level of 6000 level. Inthe last three session Nifty continously advances. This shows that there is strong buying in Nifty. If you want to go buy buying in Nifty use stoploss 5975. There is good buy to show Nifty 6150 level again. Nifty to convert in new phase.

On stock counter Rcom, HDIL, Pantaloon, SUZLON those stock shows good movments in intraday. On short term perspetive they will perform good return.

In this level of market it always better to ise stoploss in any stock. Do not trade with whole capital, use only 10% of your capital for trading purpose. Do not test or challenge to market. All this are not free advice, those sentences, I able to learn after active trading of eight year. It is upto you how you define your trading style. I feel those setences will help you to define trading style.

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NIFTY prediction for 2 DEC 2010

Wednesday, December 1, 2010 | Labels: , , , , | 0 Comments |

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First day of December is give new boost to Nifty. Dust of financial institute is settle down in local market of India. Nifty today advances with 98.2 point. Still there is some uncertinity on global scenario.

Nifty increase hope to go test 6000 level. If Nifty crosses 6000 level, there is chance to start new rally in Indian stock market. In last to session Nifty advances with good spirit. Tommorrow there is chance of some profit booking. So be cautious about that.

There is good movment in Orbit Corp., ITC,IDBI, SCI. One can use those stock for intraday. SBI still looking for short sell

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