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The company is liquid, with a current ratio of over 4, and has been doing well for a few years now. With a sales drop in FY 15-16, Ashiana Ispat now seems to have turned the tables and has already achieved sales worth Rs 235 Cr in the current financial year.

Listed on the BSE, the stock is currently trading at 28.15 and seems to be a value pick for the near term. Financial metrics and performance metrics of the company reflect sound management policies and strategies which is a key pillar to the growth of a company.
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Listed on the BSE, and currently trading at 28.15, Dhanlaxmi Fabrics Ltd is our next value pick for the long term. The company has statistics which reveals that its fundamentals are strong and has demonstrated the potential of a turnaround with growing sales book and PBT figures.

True that the company has not been paying dividends for the last few years, but apparently it seems that the management is interested in a long-term view and is reinvesting he earings in order to cater to the larger picture. There has been a significant jump in sales figures in Mar 2017 at 10.82 Cr from 5.35 in the last fiscal. In line with this profit before tax has more than doubled during the same period.

Cash conversion cycle also stands at a figure below 90 days. With a current ratio of 2.93, the company seems to be cash rich. We recommend a buy with a long term view, with a minimum timeframe of a year.




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Value investing is something that we are delving into now and our first recommendation is here. Gujarat based textile manufacturer Sumeet Industries Limited (NSE: SUMEETINDS) is trading at 32.50 on the NSE at the time of writing this article. Let us discuss the metrics that we have been following.



Here is a snapshot of the annual performance of Sumeet Industries for the last few years. A careful look will reveal that YoY sales have been rising and so has PBT. This clearly signifies that the company is generating profits from its sales, which are also increasing in volume.


What we need to notice about this company is that its Cash Conversion Cycle is just 88.30 which means that its investments reap returns in a short span of time. This recommendation is a long-term investment and a typical holding period will be for more than a year.

It is advisable to invest in small quantities and include this stock in your portfolio and give it a time frame of a year.
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We discovered three fantastic trade opportunities on the NSE and here they are. Please note that these are trade opportunities in the FnO segment only. Since short selling opportunities are also considered to be good, only Futures traders will benefit. 

Bajaj Auto

Bajaj Auto


Having closed at 3109.4 the stock price is standing right below a very significant trend line that has its roots in January 2017. We can see from the chart that this line (shown in green) has been a very important resistance level. At this moment, the stock is lying above the H3 Camarilla level of 3102 and below this trend line. Once the trend line is crossed over, it will be a fantastic long opportunity for the short term. 



Amara Raja Batteries Ltd



Amara Raja Batteries Ltd is perfectly poised for a short sell. We can see on the chart that prices have closed below 722 (an important support level) and are currently at 709. The Wolfe pattern depicts that the trend is negative; prices have fallen below the 2 - 4 trend line (in yellow) and are in a bearish zone. The scenario is set for a short sell for a target of 673 or lower.

BEML



BEML is offering another short sell opportunity after having closed at 1585.95. It has entered the bearish zone after closing below the L3 level at 1626.8 and is likely to drop to 1490 or lower.

If you like what you just read, please feel free to comment below and raise your questions. We will be happy to share updates on these charts and track these opportunities.
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Right after our previous post How To Make A Killing With Nifty Futures This August was posted, the markets fringed upwards and must have left our readers confused about what I had written. Honestly speaking, I was scared too. I kept looking at the charts trying to figure out where I went wrong. But each time I looked at it, it said the same thing - SELL.

The levels that we spoke of in our earlier post have not changed and 9762 remains to be a major support for the Nifty 50 index. With the pressure of the Wolfe wave trend lines hovering on top, the index should find it difficult to keep its head high.

Having said that, sell side targets would be at around 9475 which is a bit difficult to achieve this month, given the not so many trading days left. However, futures traders could roll over to the next month and pocket some handsome profits as the index slides down.

Please let us know what your views are on the Nifty by commenting below. We look forward to an engaging discussion.
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The NSE Nifty 50 has opened up an opportunity to make a killing this August. Here is how. After having scaled new lifetime highs, the index has reversed its direction. Let us refer to the chart below and take a deep look.

Nifty50


Take a look at the bar ended on 8th August 2017 (refer to the white arrow). It has closed below the trend line shown in orange which is practically a 1 - 3 - 5 trend line of a Wolfe Wave pattern. Having closed below this line establishes a resistance and going further, we find a second confirmation of the bearish trend.

The next bar ended on 9th August 2017 (refer to the yellow arrow), closed below the Camarilla support at 9919. This bar sealed the trend and has offered a short selling opportunity in the market.

Looking forward, we need to establish probable targets for this trend. 9473 is the next Camarilla support level which is also where the 1 - 4 target line (yellow diagonal line of the Wolfe Wave pattern) converges. For now, we will take this as our target for the Nifty50 index. A good trading opportunity is here. Grab your Puts or sell Nifty futures and ride the slide!
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If you’re someone looking for a secure and low-risk type of investment with potential in the long-run, the best thing that you can do is invest in real estate. As opposite to other forms of investment, real estate is not that volatile. Contrary to popular belief, property investment has helped lots of people make a fortune in a very short timeframe. However, you shouldn’t treat is as a short-term form of investment because you risk losing money rather than winning. 

Generally speaking, long-term real estate investments span over the course of 5+ years. These are carefully pre-planned and they feature crystal-clear objectives. Buying house of property at an affordable price with the goal to sell it after restoring it, is an excellent form of investing in real estate. However, you have to take things one step at the time, and really know what you’re doing for your initial investment to pay off. 

Tips for achieving good returns investing in real estate 

A property is considered an investment when it start offering a capital appreciation of 10% per year (at a minimum). This means that investing in real estate with the purpose to get sizable returns needs to focus on a fundamental factor – location. Your ROI (return on investment) is directly proportionate to your property’s location. Some things to consider: 
• Promising locations – it’s best to focus on investing in a location with potential to grow, not in an already popular area. If you want to buy in an area that’s already well-known, you may have to compromise and settle for a smaller-sized property. You may not be able to afford to buy a bigger property, because it may be well over your budget. 
• General amenities for added value – it’s best to invest in properties that have general amenities nearby. In time, this will increase its value; everyone wants to live in a house with parks and playgrounds nearby, supermarkets, schools, and more. In case your preferred property doesn’t have such facilities, check with the government officials to see if there’s an expansion plan pending for the next years. 
• Easy access to public transport –before even considering to buy a property for investment, you have to make sure that the area is well-connected to the public transportation system. Keep in mind that your buyers or renters will want to travel for daily needs; not everyone owns a car. 
• Easy access to school and hospitals – families, in particular, look to buy houses in areas with schools and hospitals nearby. They want to feel safe, and at the same time, they want to make sure that their kids are well-taken care of.


Reasonable cash-on-cash returns 

Buying property means that you’re taking money from a tangible financial asset – stocks or bonds – and then investing that money into an illiquid asset – property. With financial assets, your return on investment is roughly 5%. With real estate, you can make more provided that you can spend some time getting to know more about the industry, and really mastering its core strengths. It’s very important that you focus on properties that are cash-flow positive. These will render decent returns, and not those types of properties that only look good on the outside.

Sensible time management 

There are properties that demand too much of your time, and no matter how hard you try, you just can’t turn them into smart investments. The best examples are low quality properties in sketchy areas, vacation rentals, college rentals, and more. The least risky properties that those that you rent to tenants with a decent credit profile. But to make the most of your investment, you have to treat your tenants right. Show them respect and keep a good relationship with them.  
 
Real estate is one of the most privileged and profitable forms of investment because even if you fail, you still have a tangible property that you can either sell or rent later on. However, before doing anything you have to research, work really hard, read a lot, and eventually make reasonable, educated decisions in order make the most of your initial investment. Sure, kalkan villas for sale may seem extremely tempting, but then again you can’t really play with money, especially if you don’t have enough. 

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The pharmaceuticals sector is generally an evergreen sector and with new investments in public health, it is but expected that there shall be even more growth for healthcare facilities and pharma.

Arvind Remedies Ltd traded both on the NSE and the BSE is one stock which should be picked up now for medium term. Price Earnings ration is currently at 4.42 which is far away from the industry PE of 30.62, leaving a lot of room for growth. Apart from this, the company has seen steady growth in profits for the last five years. Sales have seen similar impetus with figures of 911.11 Cr in Mar 2014. 

A consistent dividend paying stock, Arvind is a good pick for the months to come. A peek into its technical charts will reveal why we insist that this is the right time to get in.


The chart above shows Wolfe Wave patterns for Arvind Remedies and as we can see that it has just bounced off the major support level at around 39. Going upwards, we do not see any resistance till we reach 64. That could be a turning point, but once overcome, prices could even move upto 100.


Here we see monthly Camarilla levels for the stock plotted on the chart. Levels are approximately the same as Wolfe waves depicted. Even here, we notice that above 69, which is the H5 level for October 2014, prices will end up in a bullish breakout zone.

With strong fundamentals and technical signals as well, we believe that this is a good opportunity for investors to dive in. Share your views about Arvind Remedies with us - leave in a few comments and let the discussion roll !

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Ever wondered what the impact of a few drops of wasted water could be ? Or what about a bit of wasted food ? We are talking about waste today – how these small bits of waste affect us and how we can help build a better environment.

We will take a close look at 5 common things we waste in our daily lives and attempt to assess the real worth of the waste, and what could possibly happen otherwise. While most of these things go unnoticed, we will see in a short while that a drop of concern from all of us could add up to a lot, both for our own selves and our surroundings as well.

Think Before You Buy

How often have you purchased something off the departmental store stands which you didn't need ? Stores these days are designed in a way so as to lure customers with objects that they do not really need. This concept is helpful in a way since we sometimes tend to forget what we need. But at the same time, we need to be careful. It is for this very reason that some consumables are even stacked at the payment counters – to tease your impulses and get more sales.

The best and the only way is to list out your requirements before you land up at the store. Make a detailed list along with the quantity required and once you are inside, let that list govern you. It is not that a bit of indulging is harmful, but try out this method and save significantly on each of your store visits.

Turning Off Your Engine

Wikipedia states that in the United States, about3.8 billion litres of fuel is consumed by idling heavy-duty truck and locomotive engines each year. That’s a significant amount of waste. So one can imagine how much those idle minutes at the next traffic signal could mean. If all vehicles could stop wasting fuel while idling, the following can be saved/reduced :

  • Fuel cost
  • Pollution
  • Engine depreciation
  • Countless man hours and industrial resources spent in drilling and refining


As a nation, all this could mean a huge saving in terms of resources. So the next time your engine idles, its not only your money that you are wasting – you are wasting everything that brought those drops of fuel to your tank. Time to think !!

Leaking Water Taps

For those who do not pay to use water, it is difficult to realize how much it costs to bring clean water to our homes. Water treatment is expensive and there is scarcity of clean water. If just 10,000 homes with one leaking tap each dripping at 1 drip per minute could be eliminated, we could save 3,600 litres of water everyday !! Time to think again. For many of us, it doesn’t cost money to use water, but imagine the plight of those countless unfortunate people, who have no access to potable water. There are millions of them in a country like ours and its time we cared this much about them.

Do you use RO water filters at home ? Have you ever cared to find out how much water they waste ? And then there is mineral water. Ever wondered how much fuel is consumed just to transport those bottles ? I hope you all know that water stored in plastic bottles is not really safe. So let us not buy health risks for ourselves and buy mineral water only in emergencies. 

Eat Well Feed More

How do you dispose wasted food ? In the garbage bin ? Couldn't that feed a hungry animal ? I mean, we humans are supposed to take care of other living beings. That is one of our sole responsibilities. 

A group of friends were dining at a restaurant and when they finished, they were leaving behind a lot of food. Another guest came up to them and asked, “Why are you wasting so much food ?” One of them replied, “That is none of your business, we paid for it and can do whatever we want with it.” The other person replied, “Though you pay for it, you cannot waste it. The nation’s resources grow this food and no one can waste it. Your money gives you the right to use, not to waste.” When will all of us start thinking on these lines ? 

Light Up a Few Lives

While you read this article on your PC / laptop, just close your eyes and imagine a home where the sun is the only source of light. Yes, it is still true after 67 years of independence. There are countless homes which are yet to be electrified. Now think about all the comforts that electrical power gives you. They have none. And what would happen if we could save a bit ? The power thus saved could lighten up their lives. Switch to solar panels and reduce wastage wherever possible. Watch the world get nicer.

Share your views with us and let us know how you played your part. We love hearing from you.

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SM Energy Company stock prices have been tanking since early September and have left investors wondering. We will now delve into its charts and try and find out what promise the stock holds for the coming few weeks.



We can see a clear bearish butterfly formation on the stock chart which preceded the fall in prices from around 90 levels to its current closing price of 73.16. This was definitely one of the major technical factors causing the huge drop in the last month. What we now need to find out is what to expect from the chart at this juncture. Is it time to go long ? Or should we wait for prices to drop further. We take a look at another popular analysis technique, the Camarilla Pivots.


Take a close look at the last bar on the chart. The close at 73.16 is below the L3 pivot level of 74.41, which is a major support line for the entire month of October 2014. Though it is usual for stocks to bounce from these levels, it is likely that prices will tank further since it has already entered strong bearish territory. Depending on the strength of the downward move, SM Energy could drop till the next Camarilla support level of 70.82 or even further till 64.83.


Wolfe Wave patterns as depicted in the above chart also depict a gloomy picture. With stock prices clearly below a major trend line (shown in yellow), we can expect major drops in SM Energy stock prices in the coming trading sessions. It may also be noted that there are no major supports to hold the prices from dropping further.


On a larger scale, a look into weekly charts for SM Energy again depict that a Bearish bat formation is already in place and could be a major driving factor for pushing stock prices further down for the next few weeks.

Clearly, the days ahead are not very bright - it is definitely advisable to avoid long positions at the moment although one could keep accumulating the stock at various support levels. Lets keep a watch on SM Energy and wait for the right time to pick it up.

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Chart patterns are just right to dive into Tata Power now and reap some clean profits from the bullish moves that we are expecting very soon. A leader in the energy sector, let us take a look into what promise the stock holds for us and what we can expect from it in the near term.


In the EOD chart above, we can see a bullish bat formation and perhaps the first bullish move has already occurred on the last bar. Having opened at 83.1 and closing at 84.3, Tata Power is definitely up for a strong change.


To cross check our views, we take a look into what Camarilla levels have to say. Here again, we find that the energy giant is hovering just above 83.68, which is a very strong support level, better known as the L3. Breaking this level and pulling prices down requires some major change in market outlook. having said that, we can look forward to a first target of 89.8 which is the first major Camarilla resistance.


Wolfe Wave patterns are neutral though and with the current situation would not pose any difficulty in price movements in either direction. With a very suitable chart pattern in place, Tata Power is definitely up for a good move. Its time to get into our trading shoes and make the most of this opportunity.

Share with us how you made use of this move !!

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BSDA. Yes you heard that right - Basic Services Demat Account. Did your stock broker come up and tell you that something like this exists ? I don't think so. And why would they ? After all, they will not make money out of it. 

For the multitude of investors who are not aware, here is a brief about BSDA. The Securities and Exchange Board of India, has introduced this facility for small scale investors to promote equity investments in the country, by providing demat services at nominal costs. No Depository Participant can charge a client any Annual Maintenance Charges if the value of his holdings are less that Rs 50,000/-. For investors whose net worth is above Rs 50,000/- but below Rs 2,00,000/- the AMC would be a maximum of Rs 100.

There are thousands of investors in our country who fall in this bracket, but how many actually know about this ? Here is how I handled this. I hold an account with a country renowned stock broker and have held this account for almost ten years now. I get loads of emails with "Investment Advice" every week, but not one did mention the introduction of BSDA facility which was introduced by SEBI on August 27, 2012; here is a link to the SEBI circular. As soon as I came to know about this, and since I fell in that bracket, I sent an email to my broker asking for a clarification as to why I am not getting this benefit.

To this, they replied that I would have to apply for this facility which would change my account type. In a few days, I asked them for an application form. The first surprise came when I was handed two forms, one for BSDA and the other was an ECS mandate, which would allow them to deduct fees automatically from my bank account as and when applicable. I said that I always paid all my fees on time, and the ECS mandate was not necessary. To my despair, I was told that it their "policy" that binds them to do this and unless I submitted the mandate, I could not avail BSDA facility. I studied the SEBI circular once again to find out if it ever mentioned anything about such a policy - obviously, it didn't.

I wrote to the broker asking for a clarification and they did not care to reply. What could they say ? They were doing something against the law !! I sent several reminders marking copies to top officials, and still no one replied. Then I got a call from the local office and I was told that I would not get any reply since they will not be allowing BSDA without the ECS mandate. And that's when I decided to give them a threat.

I wrote one final email, stating that if no one replied within 7 days and if I was not given a satisfactory justification for asking for the ECS mandate, I would complain to SEBI - since the SEBI circular never mentioned anything about BSDA. That risked their whole business, thanks to bodies like SEBI who protect investors like us.

Soon enough, I was allowed BSDA facility without any strings attached. They are cold towards me these days though, but I hardly care. The money wasn't much, but this was a matter of principle where the broker failed and that too one with a big big name in the industry.

So don't sit back, find out about the fees your broker is charging and apply for a BSDA today. It will save a bit of your money. And I am sure you will share this article all over so that many others like you and me can benefit from what our laws have to offer.

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Dividend Investing is a well known long term strategy that is employed by investors worldwide. With recurring tax free returns, this strategy can develop into a very safe method if used wisely and hold the potential for delivering higher returns on investment compared to traditional bank deposits.

Today we will look into the prospects of Oil India Limited and how investing in this stock can yield good returns over extended periods of time. Oil India Limited is traded on both the National Stock Exchange and Bombay Stock Exchange, India. Currently trading at 587.90, the dividend prospects of the stock look attractive. Here's why one should consider investing in this stock.

Current Ratio of 3.37 depicts excellent financial health of the company and goes a long way in saying that the company is virtually debt free. This obviously means that the company will be able to convert a larger portion of its profits into dividends for its investors. In the investment perspective, this could mean higher dividends and higher dividend yields for investors in the long run. A company with such good financial health is unlikely to ruin its stature and more so in any short time frame. This creates a safe haven for investors assuring them that their money is in safe hands.

When investing for dividends we generally do not think of bailing out since the ideal holding period of such investments is "forever". If for any reason the stock fails to meet its expectations, a bail out option is always available by selling the stock in the market.

The latest dividend yield for Oil India Ltd is 5.10 % which is simple fantastic. This goes a long way in speaking of the financial health of the company since it has been able to pay its investors a good return on investment. The company has also maintained a healthy dividend payout ratio of above 30 % for the last 10 years, which definitely means that they care for their investors. Not only are they sharing a healthy chunk of profits, they have been dong this for a decade. A firm dividend policy in the hands of good management can be the only route to such consistency.

A look into the progressive annual dividend yields will reveal an astounding feature of this stock in a moment.

Year Divident Yield(EoY) % Growth
2010 2.8 -
2011 2.7 -3.57142857
2012 3.8 40.74074074
2012 5.7 50

The last two years have seen excellent growth in dividend yields which could mean even higher returns on investment with progression in time. A cumulative growth in dividend yield, which is basically a measure of how much return the investment is earning could mean exponential growth in earnings. Such growth can only be expected from companies which have firm policies on dividends and for whom investor interest is of prime interest.

Oil India Limited looks like a good choice for dividend investors - a firm payout history and strong financial health hold the promise of a bright financial future for dedicated long term investors.

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The internet is flooded with information about the stock market and I will add no more. Whatever be your investment objective and approach, there is more information on the web that you can possibly digest. in this post, I will point out to you one simple question and its answer. A question that all investors and traders need to ask themselves, and answer. One cannot do without this. Of course many seasoned traders already know this, but this is for anyone who has not yet realized the true trick to making money in the markets.

The General Belief - Back Testing Works 

A very popular term used by marketers for technical analysis software, trading strategies, trading algorithms, Expert Advisor systems and what not - back testing. This term is so widely used, rather misused, that we generally tend to believe that if something has been back tested and it has given satisfactory results, there is good reason to get our hands on the system. False.

Why False ?

It is true that history repeats itself but it is not only history that keeps repeating. New things do happen, right ? Even so in the financial markets. New research leading to new products, new products creating newer customer profiles, newer needs, newer diseases, newer medicines, new laws, new policies, new environmental issues and new ideas - everything is evolving and so are the markets. Believe it or not, that stock market is virtually a living being that breathes. Doesn't it react to news, just like you and me ? So some strategy that works well today, may not necessarily work well forever. So evidently, back test results do not really validate any strategy.

I remember using a software that scanned years of historical stock market data and claimed to find seasonal patterns in stock price movements. Apparently, it looked brilliant and using the filters built in, I could get myself a list of stocks that have been either moving up or down in a particular month every year for the last 10 years !! I thought I could depend on this; but alas. What i just described in my previous paragraph happened almost with each stock I tracked. I did not trade any thankfully. History did not repeat and back testing with more that 10 years of data bore no fruit.

What Qualifies As A Good Strategy ?

Plain and simple - One that generates profits consistently. And the most important part is in the last word, "consistently". There are hundreds of strategies and systems available, but one that is not sustainably profitable is worthless. We don't invest with a month in view. We think of a lifetime, and that is long term. Hence a strategy must be able to generate profits over and over for a very long time.

The 15 Second Test

Did your strategy turn profitable for 10 consecutive trades ? The answer to this question and this question alone is the sole determinant of the acceptability of any trading system. Whatever be the time frame and the instruments traded, if several consecutive trades have not meant profit for you, of course with minimum draw down, then rest assured that in the long run, your system will not stand. I am yet to come across a short term strategy that meets this requirement. Marketers claim that consecutive profits are not practically possible, but it is possible. Usually in long term strategies. They say it is not possible because if they don't, themselves and brokers don't make money off you and me.

I have personally traded stocks with good long term strategies that have given me good profits on every trade. Put your hard earned money only after you have taken the 30 second test and rest assured, you will be happy that you read this post.

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  • Value Pick : Ashiana Ispat Ltd
    The company is liquid, with a current ratio of over 4, and has been doing well for a few years now. With a sales drop in FY 15-16, Ash...
  • Is real estate really the most privileged way for higher returns?
    If you’re someone looking for a secure and low-risk type of investment with potential in the long-run, the best thing that you can ...
  • Value Pick : Sumeet Industries Limited
    Value investing is something that we are delving into now and our first recommendation is here. Gujarat based textile manufacturer Sumeet In...
  • 3 Super Trade Opportunities on the NSE
    We discovered three fantastic trade opportunities on the NSE and here they are. Please note that these are trade opportunities in the FnO s...
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