Introduction The stock market is a complex and unpredictable entity that can sometimes take unexpected turns, and one of the most significant of these turns is a crash. A stock market crash can be a catastrophic event that has far-reaching consequences, and it is important to understand the causes and effects of such an event. In this article, we will delve into the reasons for stock market crashes, the effects they have on investments, and how to protect your investments. What is a Stock Market Crash? A stock market crash occurs when there is a sudden and significant decline in the value of stocks traded on the stock market. It is usually accompanied by panic selling, which further drives down the value of the stocks. The term “crash” is used when the decline is particularly steep and sudden and can have a ripple effect on the economy as a whole. Causes of Stock Market Crashes Speculation and Overvaluation One of the primary causes of stock market crashes is speculation and overvaluation. When investors become overly optimistic about the prospects of a particular company or the stock market as a whole, they may begin to invest heavily, driving up the price of the stocks beyond their true value. When this bubble bursts, the value of the stocks can plummet. Economic Factors Economic factors can also contribute to a stock market crash. A recession, for example, can lead to a decline in consumer spending, which can negatively impact the earnings of companies and lead to a decline in their stock prices. Similarly, inflation can erode the value of investments and cause investors to panic and sell off their holdings. Political Factors Political factors can also play a role in stock market crashes. Changes in government policies, such as tax reform or trade tariffs, can cause uncertainty and volatility in the market. Geopolitical events such as wars, terrorist attacks, and natural disasters can also cause panic and instability in the market. Black Swan Events Black swan events are unpredictable and rare events that can have a significant impact on the market. For example, the COVID-19 pandemic caused a global economic downturn and a sharp decline in stock prices, as investors panicked and sold off their holdings. Effects of Stock Market Crashes Economic Impact Stock market crashes can have a significant impact on the economy as a whole. When stock prices decline, it can lead to a decrease in consumer spending and business investment, which can slow down economic growth. It can also lead to job losses and financial hardship for individuals and businesses that have invested heavily in the stock market. Psychological Impact Stock market crashes can also have a psychological impact on investors. The fear and uncertainty that accompany a crash can lead to panic selling, which can exacerbate the decline in stock prices. Investors who have lost a significant portion of their portfolio may become discouraged and may be reluctant to invest in the market again in the future. How to Protect Your Investments Diversify Your Portfolio One way to protect your investments from a stock market crash is to diversify your portfolio. By investing in a variety of stocks, bonds, and other assets, you can reduce your exposure to risk and mitigate the impact of a market downturn. Maintain a Long-Term Perspective It is important to maintain a long-term perspective when investing in the stock market. While a crash may cause short-term losses, the market has historically rebounded over the long term. By staying invested and avoiding panic selling, you can ride out the ups and downs of the market and potentially see long-term gains. Consider Professional Advice Finally, it may be helpful to seek professional advice from a financial advisor or investment manager. They can help you create a diversified portfolio and provide guidance on how to weather market downturns. They can also provide a valuable perspective on the current state of the market and help you make informed investment decisions. Conclusion A stock market crash can be a scary and unpredictable event, but by understanding the causes and effects, you can take steps to protect your investments. Diversifying your portfolio, maintaining a long-term perspective, and seeking professional advice can all help you weather market downturns and potentially see long-term gains. Remember to stay informed and keep a level head, and you can navigate the ups and downs of the stock market with confidence.
ITC Share Market Cap vs HUL Share Target Price
If you’re an investor looking to put your money in the Indian stock market, you may have come across two of the biggest FMCG companies in the country – ITC share market and HUL. While both companies have a strong presence in the market, investors often face a dilemma as to which company to choose for investment. In this article, we will conduct a comprehensive analysis of target price, to help you make an informed decision. Introduction In this section, we will give a brief overview of ITC and HUL, including their history, products, and financial performance. ITC ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, West Bengal. It was established in 1910 as the Imperial Tobacco Company of India Limited. ITC has a diversified business portfolio which includes fast-moving consumer goods (FMCG), hotels, paperboards, and packaging, agri-business, and information technology. ITC’s FMCG portfolio includes cigarettes, cigars, tobacco, packaged food, personal care products, stationary, and safety matches. The company’s revenue for the year 2020 was Rs. 52,935 crores, and its market capitalization as of 21st April 2023 was Rs. 3.83 lakh crores. HUL Hindustan Unilever Limited (HUL) is an Indian consumer goods company headquartered in Mumbai, Maharashtra. It was established in 1933 as Lever Brothers India Limited. HUL is a subsidiary of the British-Dutch company, Unilever. HUL’s FMCG portfolio includes home care products, personal care products, food and beverages, and water purifiers. The company’s revenue for the year 2020 was Rs. 41,289 crores, and its market capitalization as of 21st April 2023 was Rs. 6.82 lakh crores. Financial Performance Comparison In this section, we will compare the financial performance of ITC and HUL, including their revenue, profit, and market capitalization. Revenue In terms of revenue, both ITC and HUL have shown steady growth over the years. However, HUL has a higher revenue as compared to ITC. In the financial year 2020, HUL’s revenue was Rs. 41,289 crores, while ITC’s revenue was Rs. 52,935 crores. Profit When it comes to profit, both companies have shown consistent growth. However, ITC has a higher profit margin as compared to HUL. In the financial year 2020, ITC’s profit after tax was Rs. 15,404 crores, while HUL’s profit after tax was Rs. 7,891 crores. Market Capitalization Market capitalization is an important metric to consider while investing in a company. In terms of market capitalization, HUL has a higher market capitalization as compared to ITC. As of 21st April 2023, HUL’s market capitalization was Rs. 6.82 lakh crores, while ITC’s market capitalization was Rs. 3.83 lakh crores. Conclusion In conclusion, both ITC and HUL are strong players in the FMCG market in India. While ITC has a more diversified business portfolio and higher profitability, HUL has a stronger brand image and higher market share. Investors should carefully consider their investment objectives and risk tolerance before making a decision.
Natco Pharma Mulls Share Buyback: What to Know
We are thrilled to announce that Natco Pharma is considering a buyback of shares in the upcoming week. This news has sparked the interest of investors and stakeholders alike, as it indicates the company’s confidence in its growth prospects and financial health. Natco Pharma Is a leading pharmaceutical company in India with a global presence, specializing in the development, manufacture, and marketing of pharmaceutical products. The company has a strong focus on research and development, and its products cater to various therapeutic categories, including oncology, gastroenterology, cardiology, and more. The announcement of the buyback is an excellent opportunity for investors to reap the benefits of the company’s success. A share buyback is a process where a company repurchases its shares from the market, thereby reducing the total number of outstanding shares. This move increases the earnings per share (EPS) and enhances shareholder value. Additionally, it indicates that the company has excess cash reserves and is willing to invest in its own growth. The buyback Decision comes on the back of Natco Pharma’s strong financial performance in recent years. The company reported a net profit of INR 164 crore in the second quarter of FY22, up by 56% YoY. The company’s revenue for the same quarter stood at INR 734 crore, up by 31% YoY. Furthermore, the company has a healthy balance sheet with a debt-to-equity ratio of 0.03, indicating a low level of debt. Investors should note that the share buyback decision is subject to approval from the board of directors. Once approved, the company will announce the details of the buyback, including the number of shares to be repurchased, the buyback price, and the timeline for the process. In conclusion Natco Pharma’s decision to consider a share buyback is a positive development for investors. It demonstrates the company’s confidence in its growth prospects and financial health. Investors should keep a close eye on the board’s decision and consider investing in the company to reap the benefits of the share buyback.
Risk Arbitrage trading – Risks involved in merger arbitrage.
The goal of risk arbitrage, also referred to as merger arbitrage, is to make money when the difference between the stock’s trading price and the acquirer’s estimated value in a planned takeover deal gets smaller. Risk arbitrage in a stock-for-stock merger entails purchasing shares of the target and shorting shares of the acquirer. If the deal is completed, this investment plan will be profitable. The investor will suffer financial loss if it is not. A takeover investment strategy is known as “risk arbitrage” enables an investor to benefit from the discrepancy between the stock’s trading price and the acquirer’s valuation. The stock price of the acquiring company typically drops after it announces its intention to acquire the target company, while the stock price of the target company typically increases. A risk arbitrage investor would purchase shares of the target company in an all-stock offer while simultaneously shorting shares of the acquirer. This strategy exposes the investor to the risk of the takeover deal failing, which could result in financial losses for the investor. Understanding Risk Arbitrage When an acquisition and merger (M&A) deal is revealed, the stock price of the target company soars towards the acquirer’s valuation. The three financing options the acquirer will suggest are all cash, all stock, or a mix of cash and stock forward. The target’s stock price will trade close to or at the acquirer’s valuation price in an all-cash transaction. In some cases, the target’s stock price will be higher than the offer price since the market may believe that the target will be sold to a higher bidder or that the target’s shareholders and board of directors won’t accept the cash offer price at its current level. However, there is typically a difference between the buyer’s offer price and the target’s trading price immediately following the deal announcement. If the market believes that the deal won’t close at the offer price or that it might not close at all, this spread will form. Since the investor is simply going long the target stock in the hopes or expectations that it will rise towards or meet the all-cash offer price, purists do not consider this to be risk arbitrage. Those who define “arbitrage” broadly would point out that the investor is attempting to profit from a momentary price difference. Risk Arbitrage and All-Stock Offers However, there is typically a difference between the buyer’s offer price and the target’s trading price immediately following the deal announcement. If the market believes that the deal won’t close at the offer price or that it might not close at all, this spread will form. Since the investor is simply going long the target stock with the hopes or expectations that it will rise towards or meet the all-cash offer price, purists do not consider this risk arbitrage. Those who define “arbitrage” broadly would point out that the investor is attempting to profit from a momentary price difference. The stock price of the target company, however, frequently stays below the announced acquisition valuation. A “risk arb” (as this type of investor is referred to colloquially) purchases shares of the target company in an all-stock offer while also short-selling shares of the acquirer. The risk arbitrator can use the converted stock to cover his short position if the deal is completed and the target company’s stock is converted into the stock of the acquiring company. For a deal involving cash and stock, the risk arb’s play becomes slightly more complex, but the basic principles remain the same. Options can also be used for risk arbitrage. The investor would put options on the stock of the acquiring company and buy shares of the target company’s stock. Criticism of Risk Arbitrage Risk arbitrage exposes the investor to the significant risk that the deal will be canceled or rejected by regulators. Other factors, such as either company’s financial instability or a tax situation that the acquiring company deems unfavorable, could cause the deal to fall through. The usual outcome if the deal falls through for any reason would be a drop—possibly sharp—in the target’s stock price and an increase in the prospective acquirer’s stock price. Losses will result for an investor who is long the shares of the target and short the shares of the acquirer. How to Make Money With Risk Arbitrage Trading Are you interested in making money by trading stocks that are in the news for mergers and acquisitions? The best strategy might be risk arbitrage. Risk arbitrage is an event-driven speculative trading strategy, also referred to as merger arbitrage trading. By taking a long position in the stock of a target firm and, if desired, combining it with a short position in the stock of the acquiring company to create a hedge, it aims to make money. Risk arbitrage is a sophisticated trading technique that is typically used by hedge funds and quantitative specialists. Although it can be used by individual traders, experienced traders are advised to use it because of the high level of risk and unknowns it entails. The risk-return profile, likely scenarios for risk arbitrage opportunities, but also how traders can profit from risk arbitrage are all explained in this article with the help of a thorough example. A long position in the stock of a target company is taken as part of the event-driven speculative trading strategy known as risk arbitrage in an effort to make money. In order to create a hedge, risk arbitrage may also pair this long position with a short position in the stock of a target company. Due to its high level of risk & inherent uncertainty, risk arbitrage is only advised for seasoned traders. What is a Merger? In a merger, one business, the acquirer, offers to buy the stock of another business, the target. The target will be compensated with cash at a predetermined price, shares of the acquirer’s stock at a predetermined ratio, or a combination of the two. In a cash merger, the acquirer makes
Guide to using Technical Analysis
Technical analysis of stocks is an approach to evaluating securities that involves analyzing market activity statistics like past prices and volumes. Technical analysis is based on the idea that market dynamics, as shown by charts and some other technical indicators, could predict future activity. Charts and other methods are used by technical analysts to identify patterns and make investment choices. Technical analysis of stocks is really a trading practice that employs trends and patterns obtained from market activity, such as price action and volume, to evaluate investments but rather identify trading strategies. Apart from fundamental analysis, which aims to assess a security’s value based on the corporate result obtained such as revenue and earnings. Fundamental Analysis V/S Technical Analysis Fundamental analysis is a way of evaluating securities that attempts to calculate a stock’s intrinsic value. Fundamental analysts research everything from the overall economy and industry dynamics to a company’s financial condition and management. Revenues, expenditures, investments, and debts are all crucial to fundamental analysis. Technical analysis of stocks differs from fundamental analysis because the only inputs are the stock price and volume. The fundamental assumption is that all known fundamentals are priced in, so there is no need to pay particular attention to them. Analysts do not attempt to calculate a security’s intrinsic value, but rather use stock charts to recognize trends and patterns that indicate how a stock will perform in the future. Fundamental analysis is a method of evaluating securities that attempts to calculate a stock’s intrinsic value. The core assumption of technical indicators, on the other hand, is that all known fundamentals are factored into the price and thus do not require close attention. Technical analysts do not try to calculate a security’s intrinsic value; instead, they use charts to recognize trends and patterns that may indicate how the security will perform in the future. Why Technical analysis of stocks? Help you choose between the three options at any given time: 1. Create a new position 2. Exit a position 3. Take no action What are the 4 basics of technical analysis? Introduction to Technical analysis of stocks attempts to identify trading opportunities and identify entry and exit points based on price and volume data. The four core parts of technical analysis are as follows. Trend Analysis: entails determining the overall trend of the economy, whether up, down, or sideways, and then determining whether a specific security is moving in a similar direction. Chart Analysis: Technical analysts frequently use charts and graphs to visualize market trends and recognize potential trading opportunities. This includes the use of chart patterns like the head and shoulders, triangles, and flags. Indicator Analysis: Indicators are numerical calculations based on a security’s price and/or volume. Indicators include moving averages, momentum indicators, and oscillators used by technical analysts to help identify potential trading signals and trends. Volume analysis means analyzing the trading volumes in security to help verify trend direction and market strength. Volume indicators can also help technical analysts spot possible trend reversals. Technical analysts use these four basic elements to make trading decisions based on previous market data and also to forecast future trends in markets. Using Technical analysis Professional analysts frequently combine technical charts with other types of research. Retail traders may base their decisions solely on a security’s price charts and similar statistics, but practicing equity analysts rarely confine their research to fundamental or technical analysis alone. Technical analysts believe that any security with historical trading data can be subjected to technical analysis tools. This includes stocks, futures, commodities, fixed-income securities, currencies, and other financial instruments. Indeed, analysis is far more common in commodities and forex markets, where traders are concerned with short-term price movements rather than the future price. What is Dow theory? Charles H. Dow, the co-founder of Dow Jones & Company and The Wall Street Journal, developed Dow Theory, a market analysis approach. It is regarded as one of the first forms of technical analysis, and it gives a framework for comprehending market patterns and making financial decisions. While the stock market and the economy have changed dramatically since the theory’s inception, its principles are still widely employed by technical analysts today. Nowadays, the technical analysis includes hundreds of patterns and signals developed over many years of research. Fundamental assumptions of Dow Theory Dow Theory’s fundamental assumptions are as follows: Dow Theory holds that the stock price discounts everything publicly available information, including economic, political, and financial data, in the prices of securities. This means that the market reflects all market participants’ collective opinions and expectations and that stock prices will move in anticipation of future events. There are three market trends: Dow Theory holds that there are three distinct trends in the stock market: primary, secondary, and minor. Volume Confirms Price Movement: According to Dow Theory, volume is an important tool for confirming the validity of market price move. Increased volume during an uptrend indicates market strength, while increased volume during a downward trend indicates market weakness. These Dow Theory fundamental assumptions provide a framework for understanding market trends and making investment decisions based on publicly available data. What is a Trend? Trend: An upper trend is a series of successively higher peaks and troughs; a the downtrend is just the opposite, while horizontal peaks and troughs would identify a sideways price trend (trendless). Remark: It is the direction of those peaks and troughs that constitute a market trend. What Are Technical Analysts’ Assumptions? Professional technical managers typically accept three broad assumptions about their field. The first is that the market, such as the efficient market hypothesis, discounts everything. Second, they anticipate that price levels, even in random market volatility, will exhibit trend lines regardless of the time frame. Finally, they believe that history has a habit of repeating itself. The repetitive nature of price changes is attributed largely to market psychology, which is based on emotions such as fear or excitement. What is meant by Support and Resistance? How can they be used to
FD interest rates increased by banks after RBI rate hike
Meta des – Here is a comparison of the FD interest rates offered by some large banks: PNB, SBI, and ICICI Bank. There is a chance that banks will raise the FD rate soon. On February 8, 2023, during its Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) raised the repo rate by 25 basis points (bps). While some banks take their time boosting the interest rates on fixed deposits, several banks have already increased the rates on loan lending, passing the expense on to customers. With effect from February 15, interest rates for fixed deposits under 2 crore have increased by 5 basis points to 25 basis points at India’s largest public sector lender, State Bank of India (SBI). Additionally, the bank offered a special 400-day tenure plan with a 7.10% rate. Senior citizens benefit most since they receive a higher premium than average rates. SBI increased FD rates from 6.75% to 7% in terms of two years to under three years, a 25 basis point increase. On tenures of three years to ten years, a further 25 bps increase was allowed, bringing the rate from 6.25% to 6.50%. The lowest hike of 5 bps was awarded on a term of less than 2 years, going from 6.75% to 6.80%. For FDs with tenures of less than a year, interest rates are constant. SBI is still offering 5.75% on terms of 211 days or less to less than a year, 5.25% on terms of 180 days to 210 days, 4.50% on terms of 46 days to 179 days, and a 3% rate on terms of 7 days to 45 days. Senior Citizens’ FD rates Similar to the general category, senior citizens’ interest rates on fixed-term deposits under Rs. 2 crore have increased for terms starting at 1 year and higher. However, compared to the general category, seniors typically receive greater interest rates on FDs. SBI increased the FD rates for senior persons by 25 bps annually during the course of two years, from 7.25% to 7.50%. On tenure of five years or more and up to ten years, a comparable increase was made to 7.50% from the prior 7.25%. The highest interest rate that SBI has ever provided to older persons is this one. Additionally, SBI increased rates from the prior 6.75% to 7% on 3 years to less than 5 years of tenure by another 25 basis points. The 1 year to less than 2 year rate is raised by 5 basis points to 7.30% from the previous 7.25%. Below a one-year term, rates remain the same. An elderly person will still be paid 6.25% on tenures of 211 days or fewer, 5.75% on tenures of 180 days to 210 days, 5% on tenures of 46 days to 179 days, and 3.50% on tenures of 7 days to 45 days. A new tenure structure SBI has also developed a unique “400 days” tenor arrangement, under which it would begin offering a 7.10% APR on February 15. The deadline for this programme is March 31, 2023. Currently, SBI offers a special “SBI Wecare” deposit programme for senior citizens in the retail TD segment. Under this programme, senior citizens will receive an additional premium of 50 basis points (bps) on top of the existing 50 bps, or 100 bps over the public card rate (as shown in the above table), on their retail TD for a “5 Years and Above” tenure only. The “SBI Wecare” deposit plan is still in effect till March 31, 2023. How much interest would you earn on SBI Fixed Deposits under Rs 2 crore? The bank increased the interest rate on deposits with maturities of one year or less to 6.80 percent from 6.75 percent, which is a 5 basis point increase for average people. SBI increased the interest rate on loans with a term of two years or less by 25 basis points, from 6.75 percent to 7 percent. The interest rate for FDs with maturities between three and fewer than ten years has increased from 6.25 to 6.50 percent. SBI raises the interest rates on house loans; find out how much your EMI will increase. The State Bank of India (SBI) is the most recent bank to boost the interest rates on house loans following the Reserve Bank of India’s (RBI) 25 basis point increase to 6.50 percent in the repo rate. With effect from February 15, 2023, SBI raised the interest rates on MCLR, EBLR, and RLLR loans. According to the SBI website, the MCLR for one month, three months, and six months has increased from 8% to 8.10%; the MCLR for one year has increased from 8.40% to 8.50%. The MCLR is a factor in the majority of consumer loans, including auto, home, and personal loans. The two-year MCLR was increased from 8.50% to 8.60%, and the three-year MCLR was also increased from 8.60% to 8.70% SBI EBLR From 8.90%+CRP+BSP to 9.15%+CRP+BSP, SBI’s external benchmark-based lending rate (EBLR) increased. SBI RLLR From 8.50%+CRP to 8.75%+CRP, SBI Repo Linked Loan Rate (RLLR). SBI home loan lending rates The regular house loan interest rate has a minimum of 9.15% (EBR+0%) for consumers with credit scores of 800 or higher, according to the SBI website. In this case, no risk premium is imposed. For borrowers with credit scores between 750 and 799, the risk premium in this situation is 10 basis points (EBR+0.10%), translating to an interest rate of 9.25%. The interest rate is 9.35% (EBR+0.20%) with a risk premium of 20 basis points for a CIBIL score between 700 and 749. The interest rate is 9.45% plus a risk premium of 30 basis points (EBR+0.30%) for scores between 650 and 699. Please take note that these loans will have a 0.05% decrease for female borrowers. SBI is extending its concession rates through March 31, 2023, it should be emphasised. When a concessional rate is used, the loan rates will be altered (lower). Axis Bank Increases FD Interest Rates In
How To Choose Stocks For Intraday Trade – Trading Stocks
Select stocks for Intraday trading is the practise of buying and selling a security on the same day in order to benefit. It is a market order in which you do not intend to take delivery to demat or fulfil it. In other words, if you place an intraday order to buy shares, you don’t want to buy them but are expecting for the share price to rise so that you can sell them before the trading day ends. These orders also allow you to sell shares even if you don’t possess them first and then buy them later in the day to complete the transaction. Because you only have a few hours before closing your position, success in intraday trading is strongly reliant on selecting the appropriate stocks. As a result, selecting the right stock is critical. This blog will teach you about Stock Selection for Intraday Trading. Let’s go over some ideas to assist you fine-tune your stock selection strategy. Please keep in mind that each person has their own profile and investing goals. You can use this blog as a starting point to further build your strategies. Before selecting a stock, please examine your risk tolerance and complete the appropriate due research. Before we get into how to choose a company for intraday trading, it’s crucial to remember that as a day trader, you don’t have the luxury of holding on to the stock, so one bad pick can lead to big losses. If you wish to buy and sell a commodity in one day, it should have specific characteristics. In high demand (liquidity)Price changes allow you to buy low and sell high (volatility)Market TrendsTrends in the industryStocks on the riseTechnical Evaluation Here’s an example to help you understand: Assume you wish to buy and sell onions for a profit. You will succeed if there is continuous trading in onions throughout the day, with prices fluctuating according to supply and demand (onions). Furthermore, there should be sufficient facts to support the claim that the general market is doing well, that business and the onion sector are thriving. Furthermore, current trend should favour onion trade. If these conditions are met, you will be in a strong position to benefit. The similar method is used to select intraday stocks for trading. How to Select Right Stocks for Intraday Trading Here are some things to think about before picking stocks for intraday trading and figuring out how to pick stocks for intraday trading the day before. LiquidityAs stated in the preceding example, the liquidity of the said liquid stock should be high to ensure that you can buy and sell stocks at any time. Another essential component of purchasing high liquidity stocks is that they typically have large volumes. As a result, you can buy and sell big amounts without affecting the stock price. When selecting highly liquid equities, make careful to consider liquidity at various price levels. While some stocks may have significant liquidity at low prices, high volumes can drop dramatically once a particular level is reached. Understanding this can assist you in purchasing them at the appropriate moment. Volatility (Medium-to-High) Day traders profit only when the price moves in the direction they expect. Traders may incur losses if the price moves contrary to expectations. If the stock price is erratic, they can place more intraday orders and profit from price fluctuations. However, buying highly volatile stocks can be detrimental if the drop/rise is too rapid. While there are no hard and fast rules, most intraday traders prefer stocks that move between 3-5% on either side. Market TrendsMarkets tend to move higher or downward based on economic, political, social, and other reasons. Stocks and markets have a positive or negative association. This means that if the markets rise, stock prices will rise or fall. As a result, keeping this correlation in mind is critical when purchasing stocks for intraday trading. Trends in the IndustryThe market is separated into industries such as technology, pharmaceuticals, automobiles, oil and gas, FMCG, and banking. As an intraday trader, you must be aware of the performance of all areas of the economy. If you discover a sector or sectors that have been consolidating for months and are about to break out, you can hunt for companies in that area to invest in. In addition, if you identify any stocks that have achieved significant gains but you did not capitalize on the surge, you can look for peer stocks in the same sector that are in the possible-breakout zone. Stocks’ MomentumThe stock’s price movement is defined as the rate at which its price changes over time. This might assist you in determining the strength of an upward or negative trend in the stock’s price. If the stock price swings in tandem with the strength of the momentum, the stock is referred to be a momentum stock. These stocks are used by day traders to benefit by going long (upward trend) or short (downward trend). Technical AnalysisAside from stock momentum, there are several methodologies that can assist you in conducting technical analysis of stocks to find buy or sell signals. You might look for equities that have price gaps in either way. These gaps might be profitable for day traders. Technical analysis can also be used to identify equities that are breaching their support and resistance levels. Your Take to Choose Stock For Day Trading Remember that buying the appropriate stocks is critical to making money in intraday trading. While the following trading strategy can assist you in locating them, you will eventually learn how stock selection works best for you. To make money through intraday trading, stay objective and data-driven. Avoid making emotional decisions. Good luck with your investments!
What to look out for in a Draft Red Herring Prospectus (rhp)?
Red herring prospectus(rhp) is a document submitted by a securities company for investors of an public offering(IPO) to the securities and exchange board
Adani group companies cuts revenue growth target, capex amid rout.
The Adani group companies will aim for revenue growth of 15% to 20% for at least the upcoming fiscal year, down from the initial growth objective of 40%.
Foreign Exchange Reserves ( forex reserves ) reach 575.3 bn.
For the first time in four weeks, India foreign exchange reserves decreased, falling to $575.27 billion during the week ending February 3, according to Reserve Bank of India data released on Friday. The reserve loss this time was 1.5%, which is the largest since October 2022 India foreign exchange holdings fell by $1.5 billion on February 3 to reach $575.3 billion. The week prior, which ended on January 27, saw reserves at $576.76 billion. The nation’s foreign exchange holdings fell by $1.3 billion to $507.7 billion in the same week. For the purpose of reducing exchange rate volatility, the central bank gets involved in the spot & forward markets. The RBI has declared in the past that variations in reserves are also a result of gains or losses in valuation. In the same week, the exchange rate of the rupee against the US dollar decreased by 0.7%, fluctuating widely between 81.49 and 82.31. On concerns that the better-than-expected U.S. jobs data may lead the Federal Reserve to act, the rupee experienced its largest weekly decline in two months this week, ending on February 10. What Are Foreign Exchange Reserves? A central bank’s holdings in foreign currencies are known as foreign exchange reserves. These reserves are employed to support obligations and affect monetary policy. Any foreign currency held by the a central bank, such as the Federal Reserve Bank of the United States, is included. A country’s central bank holds assets with a foreign currency value that are referred to as foreign exchange reserves. Foreign money, bonds, treasury bills, and many other government securities may be among them. China is the largest holder of foreign exchange reserves globally, with the majority of them being held in U.S. dollars. The best way to hold foreign exchange reserves, according to economists, is in a currency that is not pegged to the nation’s own currency. How Foreign Exchange Reserves Work ? Banknotes, deposits, bonds, treasury bills, and other types of government securities can all be included in foreign exchange reserves. These assets have many uses, but they are primarily kept as a safety net in case a central government agency’s home currency depreciates sharply or goes bankrupt. The practise of a central bank maintaining sizable reserves inside its foreign exchange is widespread throughout the world. Since the dollar is the most traded currency globally, the majority of such reserves are held in this currency. The British pound (GBP), the euro (EUR), the Chinese yuan (CNY), or the Japanese yen (JPY) are frequently used as the basis for foreign exchange reserves. In order to act as a buffer in the event of a market shock, economists contend that it is preferable to hold foreign exchange reserves in a currency that isn’t pegged to the nation’s own currency. However, as global trading has gotten simpler and currencies have gotten more intertwined, this practise has become more challenging. Purpose of keeping foreign exchange reserves To maintain a fixed exchange rate for their respective currencies. India foreign exchange, Forex reserves are used by nations with such a floating exchange rate system to maintain the value of their currencies below the US Dollar. To preserve liquidity in the event of a financial crisis. To maintain market stability, the central bank (RBI) provides foreign currency. to make certain that a nation fulfills its liabilities and obligations abroad. Why Forex reserves are important? Stronger foreign currency reserves will enable central banks in developing markets to “buffer their currencies against significant decline by supplying dollars to the market” during volatile times, claims a Goldman Sachs report. If the RBI is managing India’s external and internal financial issues at a time of significant contraction in economic growth (23.9%), the government will be in a comfortable position. It helps the government fulfil its obligations for both external debt and foreign exchange. Rupee appreciation – The rupee has gained strength against the dollar as a result of growing foreign exchange reserves. The India foreign exchange reserve peaked in October 2021 at USD 645 billion. As the central bank uses its funds to defend the rupee against pressures primarily brought on by global events, reserves have been declining. According to the RBI’s Weekly Statistical Supplement for the week ending February 3, the foreign currency assets, a significant part of the reserves, decreased by USD 1.323 billion to USD 507.695 billion. The value of non-US currencies like the euro, pound, and yen held in foreign exchange reserves is reflected in the foreign currency assets, which are expressed in dollar terms. The RBI reported that after increasing for several weeks, gold reserves fell by USD 246 million to USD 43.781 billion. To reach USD 18.544 billion in the week, the Special Drawing Rights (SDRs) increased by USD 66 million. According to data from the apex bank, the nation’s reserve position with the IMF increased by USD 9 million to USD 5.247 billion during the reporting week. The India foreign exchange reserves hit an all-time high of USD 645 billion in October 2021. The reserves have been dropping as the central bank uses its funds to defend the rupee against pressures primarily brought on by international events. To reach USD 18.544 billion, the Special Drawing Rights (SDRs) increased by USD 66 million. According to data from the apex bank, the nation’s reserve position with the IMF increased by USD 9 million to USD 5.247 billion during the reporting week. How are foreign exchange reserves used, and how does that affect the economy? As the central bank continued to respond to the depreciation of the rupee, the country’s foreign exchange reserves further decreased to a level not seen in over two years. While protecting the currency against decline, the central bank, however, appears to have been unaware of the declining foreign exchange reserves. The spot foreign exchange reserves have decreased from a high of $642.45 billion announced in September of last year, when they were at a record high of $607 billion, to a low of about $117.93 billion