Sensex Target : Elliot Wave Analysis

The Sensex has been moving sideways since the March 18 trough at 14677. There are three possible counts for this move. (a) This could be the second minor of the third wave of the correction that began in January. As per this count, the index will witness another steep and vertical fall to 14198 or 12805. (b) The second possibility is that the move since March 18 is a more sustainable corrective pull-back (B Wave) that can take Sensex to 17200 or 17500. (c) The more ambivalent count is that the B wave could result in a move between 14500 and 16500 for a few months.For the near term, it is best to be ready for sudden moves in either direction."Hope this helps.----------- By Paresh (Dstreetdirect.com member username: pkapadia)

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Stop loss Buy/Sell Order

Stop loss Order: An order placed with a broker to sell a security when it reaches a certain price. It is just to limit an investor's loss on a security position. A simple example... u bought 10 shares of RIL @ 2400 and expected to reach 2450 the same day but instead of rising it started falling down 2390.... 2380.... 2370.... and more.... what to do in this situation would u book the loss at 2360 or hold the stock for some more days. A smart trader would keep a stop loss of Rs 15 in his mind (Ofcourse he knows that if the stock fell beyond Rs 15 it could fell further down)So when the trader buy 10 RIL @ 2400 at the same time he puts a stop loss order of to sell all the 10 shares @ 2385. It means if the stock start falling and reaches 2385 mark all the shares will be sold @ market price. Whats the benefit of doing that... he can now buy the same stock @ 2370 again.Now if the stock start rising then again u can use this stretegy... like if the stock rises to 2430 and you are unsure that whether it will rise or fall, u can place or modify ur earlier stop loss order to 2425 ... so that it should be sold automatically if tries to fall beyond that point....Its just a like a boundry line u have placed because u want to limit ur losses upto a certain extent....Same is the case with stop loss buy order... if the share at Rs 100 is rising to 101, 102 .... and u know that if it crosses 103 it will zoom to 106, 107 and u want grab it at any cost put a stop loss buy order at 103.... if it remains below 103 or further fall below then no harm as u wont get the shares and u r safe. and if it reaches 103 and u got the shares and it reaches 105,106 u r in profit...But u have to be determined about support and resistence levels of the shares in both cases

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What is Short Sell

When an investor goes long on an investment, it means he has bought a stock believing its price will rise in the future. Conversely, when an investor goes short, he is selling a stock (ofcourse he's not holding the same) anticipating a decrease in share price.Its just like you are short of money in a casino but are sure that you would win the next game and you lend some money from your friend to play and return the same after the game (you have to).The only difference is that in stocks you have to return the stock back that has been sold without holding it and thats too before the market close (there are some cases in which you can't buy back, any guessess.)However in derivatives trading you have the time buy back until its expiry...Confused? Ok simple when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. You must "close" the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money"

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Companies to watch out for or not?

Hopefully these stocks took advantage of the market correction to increase their stake in this companies.Just give some comments, advice or information about this companies, so that we can also take part in earning some bucks.Click on http://www.dstreetdirect.com/blogs/nawab/207-companies-watch-out-not.html to see

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Short Term Stocks/Buys - IT Sector

Although the IT sector at year ending is near its bottom, some of them have turned SBs.With Rupee slated to go down to 41/42 levels, SBs shld show price hikes in the short term.SB means one can buy in small quantities of 25% to 50% of what they want to buy in that script.Visit http://www.dstreetdirect.com/equity-market/1919-sector-revisited.html#post4669 to see the short term stocks buys in IT Sector

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US Markets First Quarter 2008 Performance at a Glance

All ten economic sectors are set to post a loss. Technology is the worst performing sector with a 15.4% decline, with financials close behind with a 14.8% slide. Consumer staples and industrials are relative outperformers with losses of 2.7% and 4.5%, respectively.The weakness in the dollar has captured the market's attention, some arguing it is bad, and some arguing it is good. The DXY Index--a basket of major currencies compared against the dollar--is down 6.5%, which is its largest quarterly decline since 2004. Of the ten major currencies, the Swiss Franc has posted the largest gain of 14.3%. The only major currency to post a loss against the dollar is the Canadian dollar (-3.3%). In emerging currencies, the largest gainer is the Chilean Peso (+14.3%) and the largest decliner is the Iceland Krona (-16.9%). The S&P 400 Mid Cap Index is down 9.4%. Its best performing stock is homebuilder Hovnanian (HOV), up 48.0%. PMI Group (PMI) is down 56.1%, making it the worst performing stock.Seven of the 30 Dow components have posted a gain. Wal-Mart (WMT) is up 11.6%, making it the best performing component. Merck (MRK) is the worst performing component with a 35.0% decline.The small-cap Russell 2000 Index (-9.6%) is performing on par with its large-cap counterparts. Encysive Pharmaceuticals (ENCY) is its best performing stock, with a 175.3% advance. Keryx Biopharmaceuticals (KERX) saw the steepest drop of 92.9%.The Nasdaq 100 is down 14.7%. Its best performing component is biopharm company Celgene (CELG), with a 31.9% gain. The worst performing stock is GPS maker Garmin (GRMN) with a 44.3% drop.The CRB Commodity Index is posting a gain of 8.2%, which is its largest in 2.5 years. However, the index is well off its best levels of the quarter when it was up 17.7%. Natural gas has seen the largest gain of 31.9%, while cattle are posting the largest loss of 15.7%. Crude oil is up 7.7%, but was up as much as 16.5% when it hit its all-time high of $111.80 per barrel.The U.S. stock market’s weakness has garnered a lot of negative press, although it is actually outperforming most of the major world stock markets. The S&P 500’s 9.8% drop is better than returns on France’s CAC (-16.2%), Germany’s DAX (-19.0%), London’s FTSE (-11.7%), Japan’s Nikkei (-18.2%), China's CSI 300 (-29.0%) and Hong Kong’s Hang Seng (-17.8%). Of the 90 primary world stock market indices, 21 have posted a gain. Ghana is leading the way with a 15.4% advance. The Vietnam Stock Index is the worst performing with a 44.2% drop.The best performing S&P 500 industry group has been trucking (+29%)--its only component is Ryder System (R).Of the S&P 500's 130 industry groups, 109 have posted a loss. The worst performing group is education services (-41%), which got clipped after traders were displeased with results from for-profit education provider Apollo (APOL).The S&P 500 is down 10.2%. The worst performing stock is Bear Stearns (BSC) with a 88% decline. Rumors of liquidity problems caused a run on the bank, causing it to sell itself to JPMorgan for $2 per share to avoid bankruptcy. The offer was later raised to $10 per share.Only 110 S&P 500 stocks are in the green. The best performing S&P 500 stock has been Big Lots (BIG) with a 40.2% gain."The end result is that the S&P 500 extended its losing streak to five consecutive months - the longest such losing streak since 1990."

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Emerging stock markets .... good or bad?

Emerging Markets equities recovered somewhat from their steep losses suffered in January and thus were able to survive the current crisis in capital markets better than their big brothers in the developed countries like US, Japan, China...To the best of my knowledge and collective info from other resources...The MSCI (Morgan Stanley Capital International, An index publisher best known for its emerging market indices) Emerging Markets World Total Return Index (December 1988=100) advanced 7.4 % in US dollars and 4.7 % in euros.Year-to-date, the global emerging markets benchmark is down 6 % in US dollars and 9.5 % in euros.During the last fourteen months, the MSCI EM Index gained 31 % in US dollars and 13.8 % in euros.By regions, Latin America gained 8.8 % in February, Asia was up 7.4 %, and Europe, Middle East and Africa (EMEA) advanced 6.2 %.Over the last fourteen months, Latin America was the best performer with a gain of 53.5 %, Asia came in with a total return of 29.8 % and EMEA gained 17.9 %.Performance numbers are in US dollars unless mentioned otherwise.Twenty-one markets in the MSCI Emerging Markets universe rose in February and four declined. Peru (+16.2 %), Taiwan (+14.8 %) and Thailand (+13.4 %) delivered the best performance.The Philippines (-4.2 %), India (-2.4 %) and Malaysia (-0.3 %) provided the lowest monthly returns.Over the previous fourteen months all but one of the twenty-five markets covered here rose.The best performing countries were Peru (+115.7 %), Brazil (+84.5 %) and Egypt (+69.4 %).There was only one losing market over the past fourteen months: Argentina declined by 3 %. Other relatively poor performers were Hungary (+2.4 %), Colombia (+7.7 %) and South Africa (+8.6 %).

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