Stock Market Education

07.07.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 15 : PEG ratio The ' PEG  ratio' (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a  stock , the earnings generated per share (EPS), and the company's expected growth. ... Thus, using just the P/E ratio would make high-growth companies appear overvalued relative to others. ü     PEG ratio  value of 1 represents a perfect correlation between the company's market value and its projected earnings growth.  PEG ratios  higher than 1 are generally considered unfavorable, suggesting a  stock  is overvalued. ü     While a  lo w  P/E  rati o  may make a stock look like a  goo d  buy, factoring in the company's growth rate to get the stock's  PEG rati o  may tell a different story. ... When a company's  PE G  exceeds 1.0, it's considered o...

07.07.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: It was Finance Minister Nirmala Sitharaman  first Union Budget, and to say that she ticked majority of the boxes and tried to address key issues would not be wrong. Even though it may not be a visionary Budget but it is certainly accommodative. From the market point of view, addressing the NBFC issue was of paramount importance and a rescue package to that effect was announced." PSU banks gained during the day as Bank Recapitalisation to the extent of Rs. 70,000 crores was announced Proposal to increase Minimum Public Shareholding from 25% to 35% was a big negative for companies with high promoter holding. Rough estimates suggest that in order to meet the requirement,shares worth Rs.1 Lakh Crores would have to offloaded,which will eventually result in higher LTCG collection. This spooked the market and the market tanked." Fiscal Deficit target of 3.3% of the GDP was an unexpected surprise. The prospects of me...

07.07.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:  ASI Industries (CMP 13) Target -   40 SL – 7.50 Time Frame 12 to 18 Months Incorporated in 1945, ASI Industries Limited engages in mining and processing of Kotah and other natural stones in India and internationally.It operates through Stone, Wind Power, and Trading segments. The company also engages in the generation of wind power.It has an installed capacity of 3.625 MW comprising 1.125 MW capacity in Gadag District of Karnataka; and 2.50 MW capacity in Satara District of Maharashtra. In addition, it is involved in the trading of fabric, and steel and allied products. ASI holds the largest stone mining quarry in the world spread across 10 sq kms at Ramganjmandi, Kota District, Rajasthan; the home of impeccable quality Kotah Stone. The quarry produces over 12 million square meters of Kotah Stone every year. In 2014, the Company strengthened its global standing through the acquisition of Al-Rawasi Roc...

30.06.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 14  Fundamental v/s technical analysis Fundamental v/s technical analysis are the two different basic ways to analyze a   stock. ü   Fundamental analysis believe that market price of the stock doesn’t always   match with its true value of that represent. It may be overvalued or   undervalued by studding fundamentals we can come to conclusion that we   will bye it or to avoid it.if it is undervalue then we will buy (after discountling   time value and inflection) and if overvalue in market then avoid it. here we are   in a right track on investment decision. ü   Technical analysis believe that the fundamental elements of the stock value   the (true value) of that stock are already reflected or accounted for in stock   market trading price that prices are move in trends and their historical patterns   in the market and it’s stock prices te...

30.06.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: Pearl Global (CMP 168.55) Target -   210-220, SL – 142 Time Frame 12 to 18 Months Incorporated in 1989, Gurugram based Pearl Global Industries Limited,together with its subsidiaries,manufactures, sources, distributes,and exports readymade garments.The company offers knits, woven,and bottoms for men, women, and kids. It also provides supply chain solutions. The company offers its products through retailers in India, the United States, Europe, Bangladesh, Hong Kong, and internationally. It also offers products through its e-commerce portal SbuyS.in, as well as through other online retail platforms.With an equity capital of Rs.21.66crore and reserves of Rs.448.20crore,its share book value works out to Rs.222.21 and stock is trading at 0.76x price to book value. The promoters hold 66.58%, FIIs hold 6.01% while other investing public hold 24.83% stake in this company. Company has posted strong numbers for Q4...

30.06.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:  Nothing new happened this week; more the things tried to change, more they remained the same. Same Trading Range coupled with same high intraday fluctuations and Volatility. Market consistently before staging a bounce back right upto 20dma which acted as a strong resistance. Thus a smaller trading range defined by the 50dma (Support) and 20dma (Resistance) has the Nifty to test the weekly Bullish Gap Support between 11591-11426 Technically Speaking :- Sensex opened the week at 39160, made a high of 39817,low of 38946 and closed the week at 39394. Thus it closed the week with a gain of 200 points.At the same time the Nifty opened the week at 11725, made a high of 11911, low of 11651 and closed the week at 11788. Thus the Nifty closed the week with a gain of 64 points.On the daily charts, both Sensex and Nifty have formed a real lack body candle which when combined with previous two day's candle,nearly forms...

 23.06.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 13 : INTRODUCTION TO OPTIONS An option is a contract written by a seller that conveys to the buyer the right — but not the   obligation — to buy (in the case of a call option) or to sell (in the case of a put option) a   particular asset, at a particular price ( Strike price / Exercise price ) in future. In return for   granting the option, the seller collects a payment (the premium ) from the buyer. Exchange-   traded options form an important class of options which have standardized contract features   and trade on public exchanges, facilitating trading among large number of investors. They   provide settlement guarantee by the Clearing Corporation thereby reducing counterparty   risk. Options can be used for hedging, taking a view on the future direction of the market,   for arbitrage or for implementing strategies which can help in generating income ...