Coal India is a cash rich company. India’s coal demand will keep accelerating over the years especially with the growth of the sectors like steel, cement, aluminum, power etc. The power ministry has a target of 80,000 MW in the 12th year plan (2012-17). So there is going to be huge demand for coal which is a low cost energy and Coal India with its huge reserves and the monopoly that it enjoys, is sure bound to benefit from it. By monopoly I mean that Coal India accounts for more than 80 % of the Coal Production in India.

Now let’s look at some of the financials
Coal India has grown at more than 20 % over the last 5 years which is excellent in itself...

Nifty finally closed above 5400, in the process also closed above the weekly trend line that we were mentioning as a 2 year old resistance in the previous posts. Now a weekly close above 5390 is the next to keep an eye on. Now Nifty looks all set to test its next major resistance at 5630. This is definitively not a market to be short in , its rather a buy on dips market for the traders at the moment. Nifty today might consolidate but no major correction is expected.Some negative divergence can be seen in the daily chart, a correction is due.

Nifty Open Interest is at 2,63,87,250 up by 7,78,150 with increase in price, probably long build-up.

* FII bought 141.37 Crore in cash
* FII bought in index future, stock future but sold in index option (Net buy 88.03 Crore)
* DII sold in 141...

As discussed in previous posts nifty was not able to close above the weekly resistance of 5380-5390. Nifty is looking bullish but need a daily close above 5400 for the bull to stamp their full authority. From the daily charts its evident that a small correction can happen , slight negative divergences etc. Nifty has support at 5340. Even if a big correction happens i don’t see nifty going below 5030. Last Thursday even after the CAG reports came out nifty bounced from 5340 , this clearly shows smart money is supporting nifty.Nifty today needs a close above 5400 for immediate bullishness to continue.

Nifty Open Interest is at 2,56,09,100 down by 2,30,400 with no change in price, probably long liquidation/short covering.

* FII bought 308.22 Crore in cash
* FII bought in index future, index ...

As mentioned in previous post ,nifty was not able to break the weekly trend line resistance and the weekly 100 sma at 5381 today. Most of the oscillators are in overbought condition and are due for a small correction. But having said this nifty is definitely bullish as is evident from the following Nifty daily chart.This is definitely a buy on dips market.Nifty has strong support at 5280-90 region. Most of the world markets are in green tonight so i guess nifty will open positive today.Nifty today is again going to face resistance around 5381-86 region.Good volumes are needed to break this because its a 2 year old trend line and is a good resistance.

Nifty Open Interest is at 2,58,39,500 down by 1,19,650 with decrease in price, most probably long liquidation. So no new shorts were added.
...

This is the first of a series of posts we are going to start on Nifty and stocks Technical Analysis for the next trading day.

Check the nifty weekly chart, which shows that we closed right below a major weekly support area 5385-90.Also the close was rigth below the weekly 100 sma which is 5381.So longs should be careful as a correction is due. Breaking of this weekly resistance can make nifty test 5600 + .So nifty today might face resistance around this area.

.Nifty Open Interest is at 2,59,59,150 up by 6,65,800 with increase in price,shows huge long build-up.FII bought  258.21 Crore in cash.FII bought in index future, index option but sold in stock future (Net buy 159.84 Crore).FII’S have been buying heavily from last month.

Lets look at the OI of a few stocks...

This article is for understanding the financial statements discussed earlier with an example. Also recently I got an email from a reader asking my opinion on whether JSW steel or Tata steel is a better stock for long term investment.Another reader wanted to know if  Tata Steel is a good buy for long term investments. So I thought I will try to do a basic fundamental analysis on both these stocks.

Please note that this is just a basic analysis.

So let’s consider the book value first. Tata Steel has a book value of 537 which is quite impressive; the current price being only 395.So the equity/book value of Tata steel is less than 1 which is quite good. But guess what ,so is JSW which has a book value of 816 and the current price is 643...

Here are a few Options Strategies  for the Neutral Market

1)      Long Straddle

This options strategy can be used when you are neutral on the market i.e. you are expecting  a big move in one direction but not sure of the direction.

Buy one put option and one call option at the same strike price. This can be used when there is a lot of volatility expected but one is not sure about the direction. Maximum loss is limited to the premium paid for the options .Maximum gain is unlimited even if market moves in either direction .This strategy is self explanatory and does not need an example.

2)      Short  Straddle

Sell one put option and one call option at the same strike price. This is to be used when not much volatility is expected i.e...

Here are a few options strategies that can be used in a bear market

1) Short Synthetic

This options strategy can be used in a strong bear market

Sell one call option and buy one put option at the same strike price.

Here the maximum gain and loss is unlimited. This strategy is used when one is extremely bearish on the market. It is basically the reverse of the long synthetic

2) Put Backspread

This options strategy can be used in a bear market which has volatility.

Buy two ‘Out of the money’ put options and sell one’ In the money’ put option

Maximum Loss: Limited to the difference between the two strikes less the premium received for the spread

Maximum Gain: Limited on the upside to the net premium received for the spread. Unlimited on the downside

This can be used generally wh...

A few option strategies for the Bull Market

1)      Long Synthetic:

This is one of the option strategies that can be used when one is very bullish on the market

Buy one call option and sell one put option at the same strike price.

Maximum gain: unlimited

Maximum loss: unlimited

This is a risky strategy and this option strategy should be used only if one is very bullish on the market.

2)      Call Bull Spread

This is one of the option strategies that can be used in a bull market when one has a predetermined target.

Buy one call option with a low strike price and sell one call option with a higher strike price

Maximum Loss: Limited to premium paid for the long option minus the premium received for the short option.

Maximum Gain: Limited to the difference between the two strik...

Its very important that one understands the option basics properly before trying his hand in it.

Options are nothing but a contract that gives the buyer the right but not the obligation to buy or sell an underlying asset at a predefined price on or before a certain date. The predefined or specific price here is called the strike price. The certain date is the ‘expiration date’. And there is a premium that needs to be paid to buy or sell an option called the premium price.

Let’s try to understand this with an example. The underlying asset can be a stock or can even be a land. Let’s assume that Mr. A likes a piece of land at a location belonging to X but A wants to take some more time before deciding on the deal...