Nifty Future Update on 21 August 2013

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(last close 5398.25)

My experience indicates that most people who’ve accumulated a great deal of wealth haven’t had that as their goal at all. Wealth is only a by-product, not the original motivation. – Michael Milken Yesterday we told buyer to enter at the  5368  and even deep buy at 5340.

Nifty future Today…?

Today NF may recover a bit as yesterday we saw a U turn in Nifty. 

Possible, a gap up may seem today. Nifty Future make up move  & may create  new high if cross 5471 and after that  5500  and still more is possible.

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Don’t Create Fresh Short Selling

“By the Law of Periodical Repetition, everything which has happened once must happen again, and again, and again — and not capriciously, but at regular periods, and each thing in its own period, not another’s, and each obeying its own law. The same Nature which delights in periodical repetition in the sky is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint.” ~ Mark Twain

overnight

1) 50% Retrenchment created at 5391.

2) Lower Trend line Channel is at 5360.

3) Possibility of  5188 after breaking Lower Trend-line Channel.

As shown in the chart below that you are seeing nifty weekly chart is just at lower channel support and 50% Retracement level is also placed around that zone. There are very low chances of bounce back yet, you should not create fresh short selling position. Look on chart (Buyer can enter 5340 to 5368 with stoploss of 5300)

nifty-future-short-position

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Money Market Vs. Stock Market

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An investor has always confusion regarding where to  investment in Stock market or Money market

There are two types of financial market’s viz. the money market and the capital market. The money market in that part of a financial market which deals in the borrowing and lending of short term loans, generally for a period of less than or equal to 365 days. It is a mechanism to clear short term monetary transactions in an economy. 

Definition of stock marketwhat is stock market?

Most of the reader or investor must be very well known with the term “stock market” and so we’re not discussing much of it and so just sharing a small introduction. 

The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy, as it provides companies with access to capital and investors with a slice of ownership in the company and the potential for gains based on the company’s future performance. 

what is money market?Definition of money market

The most of the investor is not aware of this market and fact regarding the same. you as a investor think are you aware of what is money market it advantages or more basic thing which instruments can be included  in this category today in this article i am going to share very basic thing of money market even we will compare the both financial market.

A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year.

Instrument of money market

This is a very short list of money market just to make you aware

  • Money Market Instruments
  • Treasury Bills (T-Bills)
  • Commercial Papers (CPs)
  • Repurchase Agreements (Repo)
  • Banker’s Acceptance

Advantages of money market instrument

Asset Preservation
In spite of the relatively low returns, the money market can be a great way for investors to preserve, and even make, a bit of money

Liquidity
The biggest advantage and the most attractive feature of the money market is liquidity.

Risks
There are risks in every investment, but the money market is probably one of the safest places for your capital. After all, the funds are invested in relatively secure government or other short-term, high-quality debt.

 Yield

Money market funds pay a yield based on the holdings of the underlying fund. The yield is generally automatically reinvested into the fund via purchase of additional shares in the fund. This yield makes money market funds an attractive alternative to the mattress.

Comparison of money market and stock market

Capital markets are perhaps the most widely followed markets. Both the stock and bond markets are closely followed, and their daily movements are analyzed as proxies for the general economic condition of the world markets. As a result,
the institutions operating in capital markets – stock exchanges, commercial banks and all types of corporations, including nonbank institutions such as insurance companies and mortgage banks – are carefully scrutinized.

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1. Maturity Period:

The money market deals in the lending and borrowing of short-term finance (i.e., for one year or less), while the capital market deals in the lending and borrowing of long-term finance (i.e., for more than one year).

2. Credit Instruments:

The main credit instruments of the money market are call money, collateral loans, acceptances, bills of exchange. On the other hand, the main instruments used in the capital market are stocks, shares, debentures, bonds, securities of the government.

3. Nature of Credit Instruments:

The credit instruments dealt with in the capital market are more heterogeneous than those in the money market. Some homogeneity of credit instruments is needed for the operation of financial markets. Too much diversity creates problems for the investors.

4. Institutions:

Important institutions operating in the’money market are central banks, commercial banks, acceptance houses, nonbank financial institutions, bill brokers, etc. Important institutions of the capital market are stock exchanges, commercial banks and nonbank institutions, such as insurance companies, mortgage banks, building societies, etc.

5. Purpose of Loan:

The money market meets the short-term credit needs of business; it provides working capital to the industrialists. The capital market, on the other hand, caters the long-term credit needs of the industrialists and provides fixed capital to buy land, machinery, etc.

6. Risk:

The degree of risk is small in the money market. The risk is much greater in capital market. The maturity of one year or less gives little time for a default to occur, so the risk is minimized. Risk varies both in degree and nature throughout the capital market.

7. Basic Role:

The basic role of money market is that of liquidity adjustment. The basic role of capital market is that of putting capital to work, preferably to long-term, secure and productive employment.

8. Relation with Central Bank:

The money market is closely and directly linked with central bank of the country. The capital market feels central bank’s influence, but mainly indirectly and through the money market.

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Nifty Future Update:Bear’s fight back?

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(last close 5748.30)

When I was young I thought that money was the most important thing in life; now that I am old I know that it is. ~Oscar Wilde

Nifty closed up 43 points at 5742.30 while Nifty future closed at 5748.30, a premium of 6 points. FIIs bought in Cash, net buy 247.96 Crore while DIIs bought in Cash, net buy 249.28 Crore. FIIs bought in Stock future, Index Option but sold in Index future, net buy 1555.56 Crore!

Yes we told!

On Wednesday we told Buying presser will be seen at  5717.

Nifty Future  we gave this level 5733-5748-5765

what we saw it check both first two level and made day high at, 5759.

Now! What for Today.?

Today  we feel that Nifty future will show level in favor of Bear.

If  it Fails to protect 5678 then we will see downside near 5661-5649 is possible.

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TATA STEEL: Hit’s all Target

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(last close:241.90)

There are two tragedies in life. One is to lose your heart’s desire. The other is to gain it.  – George Bernard Shaw

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Tata Steel yesterday achieved intraday target of.. 242.

Today achieved all  target of 245-247-250 and made day high of 264.

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Nifty Future update:forget worries Bull!

images-9(last closes:5714.05)

The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective. -Warren Buffett

What for today.?

 Nifty Future we said it will march to level of 5665 and if stay above

will make new high, and we saw high of… 5717 after 12 red  days .

Today Nifty Future we see buying pressure above 5717 at yesterday high. 

Quite possible  we see new level upside 5733-5748-5765.

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