Buy list for Today

Here is my shopping list for today.
All these stocks can give a min of 30% return in a span of 6 months.

Basics of margin trade

We call it intraday trading as well. Either you buy first and sell later or you sell first and buy later.
In both ways if the price during the course of the settlement cycle moves in your favor (risen in case of purchase done earlier and fallen in case of a sale done earlier) you will make a profit and you receive the payment from the exchange. In case the price movement is adverse, you will make a loss and you will have to make the payment to the exchange.

Terms used during security transactions

These are some of the terms used during the buy or sell of shares.

CMP – Current market price of share

LTP – Last traded Price of share

52 WEEK HIGH & 52 WEEK LOW – Highest and lowest prices within 52 week period.

Exchange – NSE/BSE

Order Type - Limit/Market
· At Limit - An order to a broker to buy or sell by placing a limit price.
· At Market - An order to a broker to buy or sell at about the market price at the time that the order is given.

Bid Price- The price at which someone is prepared to buy shares.

Offer Price- The price at which someone is prepared to sell shares.

Brokerage - Charges made by a broker for acting as a agent in the buying and selling of shares.

Contract Note - Document sent to a buyer or seller confirming the transaction and showing details as to price, brokerage and any other charges involved.

---- Bulls Vs. Bears ----

Who is called a Bull?

Bull is a person who buys shares in the expectation that prices will rise and so giving him an opportunity to sell/resell at profit.

Who is called a Bear?

Bear is a person who expects prices to fall and sells shares hoping to make a profit by subsequently repurchasing at a lower price.

How would you know that a market is bullish or bearish?

Advance-Decline ratio is a useful tool for detecting bullish or bearish trend in the stock market. To get this ratio one divides the number of traded shares which have risen in price by those which have fallen. For example, if 200 shares have advanced and 100 declined on a particular day the A-D ratio is 2. Numbers more than 1 indicate a bullish trend and less than 1 a bearish trend.

All about Sensex!!!!!!!!!!!!!!!!!!!!!!!!

Q.1.What is SENSEX?

The SENSEX is a "Market Capitalization-Weighted" index of 30 stocks on Bombay stock exchange.

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE". The SENSEX is the benchmark index of the Indian Capital Markets with wide acceptance among individual investors, institutional investors, foreign investors and fund managers. Institutional investors, money managers and small investors all refer to the SENSEX for their specific purposes.

Q.2 How is SENSEX calculated?

SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per this methodology, the level of index at any point of time reflects the total market value of 30 component stocks relative to a base period. The base period of SENSEX is 1978-79. The actual total market value of the stocks in the Index during the base period has been set equal to an indexed value of 100. This is often indicated by the notation 1978-79=100.

The calculation of SENSEX involves dividing the total market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index maintenance adjustments.

During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.

Q.3 How is the closing Index calculated?

The closing SENSEX is computed taking the weighted average of all the trades on SENSEX constituents in the last 15 minutes of trading session. If a SENSEX constituent has not traded in the last 15 minutes, the last traded price is taken for computation of the Index closure. If a SENSEX constituent has not traded at all in a day, then its last day's closing price is taken for computation of Index closure. The use of Index Closure Algorithm prevents any intentional manipulation of the closing index value.

Q.4 How are adjustments for Bonus, Rights and newly issued Capital carried out in SENSEX?

I have come across this question many times and did some research to find out how it is done actually. The arithmetic calculation involved in calculating SENSEX is simple, but problem arises when one of the component stocks pays a bonus or issues rights shares. The Index Cell of the Exchange periodically adjusts the base value to take care of such corporate announcements.

Adjustments for Rights Issues:
------------------------------------

When a company, included in the compilation of the index, issues right shares, the market capitalisation of that company is increased by the number of additional shares issued based on the theoretical (ex-right) price. An offsetting or proportionate adjustment is then made to the Base Market Capitalisation (see ' Base Market Capitalisation Adjustment' below).

Adjustments for Bonus Issue:
------------------------------------

When a company, included in the compilation of the index, issues bonus shares, the market capitalisation of that company does not undergo any change. Therefore, there is no change in the Base Market Capitalisation, only the 'number of shares' in the formula is updated.

Other Issues:

--------------

Base Market Capitalisation Adjustment is required when new shares are issued by way of conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of buy-back of shares, corporate restructuring etc.

Base Market Capitalisation Adjustment:

-------------------------------------------

The formula for adjusting the Base Market Capitalisation is as follows:

New Base Market Capitalisation = Old Base Market Capitalisation * (New Market Capitalisation/Old Market Capitalisation)

To illustrate, suppose a company issues right shares which increases the market capitalisation of the shares of that company by say, Rs.100 crores. The existing Base Market Capitalisation (Old Base Market Capitalisation), say, is Rs.450 crores and the aggregate market capitalisation of all the shares included in the index before the right issue is made is, say Rs.4781 crores. The "New Base Market Capitalisation " will then be = 450 X (4781+100)/4781

This new figure will be used as the Base Market Capitalisation for calculating the index number from then onwards till the next base change becomes necessary.

Rico Auto geared up to take advantage of auto ancillaries boom.

The business model of the Gurgaon based company caters to Automotive and service segments. The automotive segments have three products namely Aluminum Foundry, Ferrous Foundry, Dies and Mould. Service segments deals in BPO and Engineering Services. RICO’s BPM division enables companies to generate value for their customers and employees through the application of its customer & employee-care services and Engineering Services division focuses on CAD, CAM, CAE, tool & product design.
There is a big amount of external demand coming in because lot of big OEMs worldwide are trying to save cost, so lot of that is likely to result into outsourcing of auto ancillaries to countries like India. India is quite geared up to become the next hub for manufacturing auto ancillaries as well as small cars.The good thing about Rico auto is that they are very well geared to take advantage of this coming boom. They have a very clear action plan to take advantage of this and a very good well managed company, with a very good focus on their products.
They also have lot of technical alliances already in place. Rico Auto Industries Limited & Continental Automotive Systems have decided to set up a Joint Venture Company to Manufacture Hydraulic Brake Systems in India. In this joint venture, it is having arrangement of preferred supplier of cast/machined components to the JV Company. In addition, the company has also FCC RICO Limited a 50-50 joint venture with FCC company of Japan, the world leader in two wheeler clutches, automobile clutches and fly wheel.


On 12-Jul-2007, prudential Icici Amc Ltd A/c Emerging Star Fund bought 3000000 shares of Rico auto @ 45.49.The mutual fund companies are taking keen interest in the stock. Refer below link for holding detail:
http://www.ricoauto.com/sharepattern-31march06.htm


CMP 42.5
Target1 51.90
Target2 57
52 week high: 88.95 (29.9.2006) 52 week low: 38.00 (8.6.2007)


It had touched an intraday high of 47.10 on 20th July. This is a stock which looks very attractive at current prices and deserves investment and becomes a case of strong buy on every decline. It is a very good point to enter for a long term investor because in two years time this has a potential to be a multi-bagger from here.

stocks for today

stocks for today:

Paradyne Infotech CMP 182 target 191
Bliss GVS Pharma CMP 121.85 target 127
Pritish Nandy Communications CMP 108 Target 113.80

all these 3 stocks should hit the upper circuit today.
happy trading:)