Stock Market Education

28.04.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: Both Sensex and Nifty have entered a Bullish consolidation phase post registering life-high levels. Both the indices are in a Trading Range and the boundaries are defined by the 20dma on the lower side which continues to act as strong Support and the Life-high levels which continue to act as Resistance or the upper boundary of the Trading Range. A bullish breakout will take the Nifty to achieve the target 12211-12232, whereas a bearish breakout is likely to take the indices to test the lower bottom at 11311. Interestingly, even as both the indices are enjoying life-high levels,mid-caps and small-caps are lagging way behind. Mid-cap 50 Index, is still more than 16% away from their life-high levels and a potential bullish breakout is round the corner, which can propel various mid-cap stocks to a more justifiable valuations. TECHNICALLY SPEAKING :- Sensex opened the week at 39158,made a high of 39262, low of 38518...

28.04.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: FAZE THREE LTD (CMP Rs.50) Target - 70 - 75, SL - 40 Time Frame 12 to 18 Months   Incorporated in 1985, Mumbai based Faze Three Limited manufactures and sells home furnishing products in India. It offers bathmats, doormats, blankets, rugs, cushions. throws, curtains, shower curtains, bedspreads and mate lasses, and carpets, as well as kid's line, and kitchen linen and kitchen products. The company also exports its products primarily to Europe and the United States. It has an equity base of just Rs.24.72 crore that is supported by huge reserve of around Rs.153.22 crore. The promoters hold 45.75%, FIIs hold 4.52% while the investing public holds 49.73% stake in the company. For Q3F19, FTL posted 72.03% higher PAT of Rs.4.49crore on 14.06% higher sales of Rs.68.95crore and an EPS of Rs.1.83. For 9MFY19, it posted 64.75% higher PAT of Rs.12.06crore on 13.78% higher sales of Rs.202.50crore and an EPS of Rs....

21.04.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 6 IMPLIED VOLATILITY (IV)   Ø   Volatility is calculated in a funny way – it is the annualized standard deviation of the daily returns. we measure volatilities over a period of one year (252d), but consider daily moves, so SQRT(252) = 15.9, you have to divide HV or IV by 16 to get daily expected movement. Ø   IV plays big role on premium, must not be ignored. 36% iv goes to 24% when news cool down. So your premium falls by 33% even underlying stays there. It's just news impact is absorb, so movement expected daily is back to normal. In may case, despite directionally right, u lose. Ø   This losses are due to lost value of options if you're buyer. So stock moves 2-3% as u expected but your CE/PE stays there or goes down, so it's IV who makes buyer lose the money first and then Time Value, as u tend to stay in long, after noticing stock moved in your direction. Ø   Next is to und...

20.04.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 5 Pivot Point • Pivot Point : It is a technical analysis indicator used to determine the overall trend of the market over different time frames. • The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. • On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment. A pivot point and the associated support and resistance levels are often turning points for the direction of price movement in a market. • In an up-trending market, the pivot point and the resistance levels may represent a resistance level in price above which the uptrend is no longer sustainable and a reversal may occur. • In a declining market, a pivot point and the support levels may represent a low price level of stability or a resistance to further decline ...

20.04.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: GOLDIAM INTERNATIONAL (CMP Rs. 77) Target - 105 - 115, SL - 65 Time Frame 12 to 18 Months Incorporated in 1986, Mumbai based Goldiam International Limited, together with its subsidiaries, manufactures, markets, and distributes diamond studded gold, platinum, and silver jewelry in India. The company operates in two segments, Jewellery Manufacturing and Investment Activity In investment segment company invest its surplus funds in MF, equities etc. Its products include engagement rings, wedding bands,anniversary rings, bridal sets, earrings, pendants,and necklaces. The company also exports its products. With an equity capital of Rs.24.62 crore and huge reserves Rs.351.16 crore, GIL's share book value works out to Rs.159.30. Its P/BV raito stands at just 0.46x. Promoters hold 62.69% while investing public hold 37.31% stake in the company. Company has recently completed buyback of 19,80,000 shares (Only from ...

20.04.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: Market is overbought Cautious approach needed in new buying The Volatility Index (India ViX @ 22) has seen a sharp increase of more than 10% in the past week. Despite such increase in Volatility, Nifty is showing no signs of abating. Nifty has given a bullish pattern breakout here and is likely to target 12211 as long as it remains above 11549. Mid-Cap and Small-Cap indices are showing good strength and are on the verge of delivering a strong bullish breakout. The frontline indices are testing the life-high levels and some sort of consolidation here, augurs well for the market. Till then any decline will be a good buying opportunity.   TECHNICALLY SPEAKING :-     Sensex opened the week at 38805, made a high of 39487, low of 38780 and closed the week at 39140. Thus it closed the week with a gain of 373 points. At the same time the Nifty opened the week at 11667, made a high of 11856, low of 11648 and closed th...

14.04.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW Just when it seemed that Nifty will correct its stupendous rise of the last few days, it did not. There was a hint of Correction finally happening but it seems Market is in no mood to oblige. At the most, we can have Nifty consolidating near the top.Once Consolidation is over, Nifty will be on its way to achieve its higher target of 11822-12232. Any decline should be treated as Buying Opportunity. One should have a strong inclination for the Mid-Caps and Small-Caps which finally have started playing catch-up. It is time to indulge in stock-picking; as Mid-Cap blast is not far away. TECHNICALLY SPEAKING :- Sensex opened the week at 38993,made a high of 39041, low of 38460 and closed the week at 38767. Thus it closed the week with a loss of 95 points. At the same time the Nifty opened the week at 11704, made a high of 11710, low of 11549 and closed the week at 11643. Thus the Nifty closed the week with a loss of 22 po...