StockFundoo Methodology

Powered by Fundamental Deep Value Investing and Technical Analysis
Detailed Stock Analysis updated on a Daily Basis
Daily Nifty View and Market Trend Analysis

Tuesday, December 25, 2012

5 Ways to Financial Freedom in 2013!

“Whoever said money can’t buy happiness probably didn’t have enough money! “ 

This famous saying reminds us that getting our personal finance in order is probably up there along with career and health as one of the most important resolutions for 2013. It’s important to have financial freedom and flexibility to spend just that little extra amount, in case your daughter wants that new Barbie doll or wife asks for the upgrade for refrigerator. Having your personal finances in order, gives you the space, peace of mind and flexibility to make the most of your personal and family life and creates solid bedrock for your future wellbeing.

Here is a list of 5 Resolutions for your Financial Wellbeing in 2013:

Sunday, December 23, 2012

Finding MultiBagger Stocks!

One valued reader asks this question:

Question: I am in the search of finding multibagger stocks. Can these companies become multibagger : Karuturi Global Ltd., Green Earth Resources & Projects Ltd.(formerly Austral Coke), Moserbaer, Farmax India Ltd., Kwality Dairy Ltd.,Piramal Life Sciences Ltd.
From all these stocks mentioned above ,all are falling downwards except Piramal Life Sciences Ltd..I want to know about the future prospects of all these companies.

Saturday, December 22, 2012

Your question on Amtek Auto!

After my inane musings on TV Songs here, which continues to provide insane amount of Page-views and attention to this blog, I'm back to steady business doing stock analysis and staring at charts!

Question from our valued reader:
Question: Amtek Auto is a mid cap stock and at a 52 week low. It has a good history with good sales and pays regular dividend. This stock owns 61% in Amtek India.

I have done an initial investment at 76 and currently it is quoting around 70. I would like to take more exposure but am not sure why does it keep going down
Any info/analysis from your side would be appreciated.

Sunday, December 16, 2012

Your questions on BEML, Micro technologies and Future Ventures!

Valued readers have sent in these queries on BEML, Micro technologies and Future Ventures:

Question: It will be amazing if you can share your thoughts on BEML. The CMP is too low right now.

Answer: BEML Ltd is a PSU MiniRatna category-I Firm, and operates in three main divisions - Mining and Construction, Defence and Rail and Metro. The firm has a stable topline and bottomline numbers from past five years, and in recent three quarters in running in red due to Mining slowdown and ban. Firm was also embroiled in recent Great Indian scam season - BEML's flavor being Tantra trucks. Both topline and bottomline of BEML is affected because of these issues. 

Friday, December 14, 2012

Bottom Formation in Education Stocks - Educomp, Everonn and Edserv!

Education stocks have received tremendous beating after being toast of investors in previous Bull runs. Sample this, Educomp is languishing at Rs 150 odd, after reaching a high of Rs 1020 in late 2009. Since late 2009, the stock has only seen one side, which is downside. Now the scrip has lost 85% of its valuation since its highs, the charts of three of these Education scrips are giving signs of bottoming down.

Lets look at charts and figure out. Pls look at Educomp chart below:

Kyun darta hai tu yaar mujhpe Daav Laga - i.e. Trading for a Living!

We will try to keep the focus of this blog strictly to Trading and Investing. However, I noticed one song(!) on a recent TV commercial and its lyrics forced me to think, the critical ability of a Trader and inherent skills required in this profession!

We traders are born (or re-born) risk-takers. We assess risk, assess value and where others shun the stock in fear, we embrace it whole-heartedly! Ours is the most difficult skill and profession in the world!

Sample these lyrics, and if possible hear to the full song.

Thursday, December 13, 2012

The Elusive Indian Rupee (INR)!

Recent media reports talk about possibility of the Indian Rupee (INR) touching levels of 60 against USD. 57 is all time low level for INR and 60 is still 5% lower than the all time low levels. Is it really possible, and what are charts saying?

Lets take a quick look at USD/INR charts and figure out the short term and medium term trend, and whether the famous round number of 60 is just a elusive pipe dream for exporters!

Monday, December 10, 2012

What's Next for Nifty?

Nifty is currently facing resistance at technical levels of 5950. The current up move started from the lows of 4800, which was a intermediate bottom in May, 12. Since May of this year 2012, Nifty has traveled in a channel like formation, upto the current resistance levels of 5950 and formed a Doji like candle pattern three days ago.

Pls see the chart below:

Sunday, December 9, 2012

REI Agro: The demons it continues to fight!

A valued reader asks this question about REI Agro:

Question: I invested in REI Agro at around 9 Rs in July.. But its moving very very slow...
It does not participate in matter how much market goes up it sticks to 50 paise up down...

Promoter is constantly buying and delivery is always every day "70%" and around for this stock ... but still it trades in plus minus 1 rupee range daily not moving up at all...

What do you think would be the time frame for this stock to move to 20 levels ?? it is getting frustrating day by day... and i fear if market falls due to FIIs booking profit it would again go down below 10 levels...

I read your posts on REI but requesting you to Please share your views again on Rei ..if positive , it may instill some confidence & faith in me to hold for more time..

Answer: Thanks for your question. We reviewed REI Agro in April here. Pls see the latest updated EoD chart for REI below:

Thursday, December 6, 2012

What to do with PVR and Kingfisher and your questions on Harrisons Malayalam and Usher Agro!

Valued readers have sent these questions in past 2-3 days. Pls see the questions and our responses:

Question: It would be great if you could kindly share your views on PVR, it has risen sharply post Cinemax Deal. almost 44% up in 3-4 days.

Tara Jewels IPO: Closes below Listing price on Debut Day!

We wrote about Tara Jewels IPO here, a fortnight back, as to how the issue is not worth investing for a value investor and some questions that were lingering around the issue.

Tara Jewels made its debut today and although opened with a meager 5% premium to listing price of Rs 230, immediately started tanking without showing any upward momentum. With a volume of about 4.8 Lakh shares, the scrip closed below its IPO price of Rs 230 and closed at Rs 229.9 in first hour itself.

How and When to Book Profits!

A valued reader asks this question, which is on the top of the mind of every investor: How and When to Book Profits, when going is good and stocks are trading in your favor.

What approach do you take while selling stocks ?

A lot of times we find buying easy but selling difficult , we always think that price could go a notch higher and end up keeping that stock for a much longer period or seeing it through its peak as well as through its bottom on the chart and sell it somewhere in between due to frustration of waiting for the right moment.

Wednesday, December 5, 2012

Your Queries on Microcaps!

I have received a few queries regarding analysis on Microcaps. Microcaps are very small firms with Market Cap less than 100 crores or so and some of them even have annual revenues less than 50 crores.

It’s a trend within retail investor community to search and invest in Microcaps with unheard of names. Whereas, if you investigate a Mutual Fund portfolio, most of the names in their portfolio would be large caps, whatever the fund focus might be, and very few large midcaps in addition to large caps.

This is surprising and counter-intuitive behavior! Large funds and institutions have the muscle power, bandwidth and battery of experts to research small and upcoming companies and spot the next Infosys and Reliance. That kind of analysis would bring them super-returns on their portfolio. But they stick to larger, well known names only!

Tuesday, December 4, 2012

Bharti Infratel IPO!

Bharti Infratel is coming out with a Mega IPO on Dec, 10 worth 4500 crores of Stock Sale. This is the largest IPO in past two years and is generating quite a buzz! At StockFundoo, we are always careful about mega IPOs and their associated buzz, because it’s often like a twin edged sword. Some of these Mega IPOs in the past have worked out well for investors whereas vast majority of them have been Mega Flops! It’s rightly said about IPOs: It’s Probably Overpriced. Please see our older post on IPO here.

Bharti Infratel is an tower infrastructure arm of Bharti and there is quite a bit of history attached with this unit. 

Monday, December 3, 2012

Your questions on Sintex and Sterlite!

A valued reader asks this question:

Question: I have a question regarding Sintex and Sterlite.
I am interested in finding out if they are fundamentally strong companies worth holding.
I have been holding the stocks for around 3 months at prices below

Sterlite - Rs 100
Sintex - Rs 61

Sunday, December 2, 2012

Top 5 Online Trading Mistakes - Part II

We covered Top 2 Online Trading Mistakes in Part I of this article series here. Let’s look at the Next 3 Online Trading Mistakes in this closing part of the series. 

Online Mistake #3 - The Lure of Penny Stocks 

Retail investors like to invest in Penny stocks or stocks that trade below Rs 10 per share, based on someone’s recommendation or after receiving hot tips from subscription websites. Most of these Penny stocks remain illiquid round the year, and come into heavy trading volume action only after a synchronous effort on part of cartel of promoters and manipulators to suck in retail investors.

Saturday, December 1, 2012

What to do now with Zylog Systems?

A valued reader asks this question:

Question: Zylog is again drifting downwards towards it wise to buy now....
Fundamentally is it good ? Buyable ? or is it going down with point of no return ??

Top 5 Online Trading Mistakes - Part I

With the advent of Electronic Trading, almost all investors and traders now use Online Stock Trading websites to Invest and Trade in Stocks. Online Stock Trading Websites offer Do-It-Yourself options to Buy and Sell stocks and are very popular among retail investors. Few retail investors actually pick-up the phone to call the broker’s office to request trade on their behalf. It’s much easier to login into Broker’s online website, place the trade yourself, watch it getting executed and feel the excitement!

Friday, November 30, 2012

Your questions on Heritage Foods, L&T Financial Holding and Apcotex!

Question: What you have to say about L&T Fin Holdings ? It was trading near its IPO price in the 40s for a year. Suddenly during diwali it was spiked to 88 levels. There are rumours regarding banking licenses and everything but it still doesn't explain this sudden rise. the company also has sold stake in federal & plans 125Cr debentures hence total incoming cash is around 500Cr in short time...but what the company is going to do with such cash is not known. from monday it is going into T Segment ..hence i am seeing downfall.. What do you think about this scrip?

Thursday, November 29, 2012

The Great Indian Midcaps Sale!

Midcap stocks in Indian markets are currently available with heavy discounts in what is now known as "The Great Indian Midcap Sale" !! Not only Midcaps, but most Smallcaps and Microcaps, are available at a steep discount to their intrinsic Book Value and and in some cases, sale is as high as 50%, 60% or even more!

This is not the case in mainline Nifty50 stocks and BankNifty index, which are nearing their all time highs and will surpass that mark very soon. Lets look at some charts and compare...

Your question on Opto Circuits!

A valued reader asked this question:

Question: I hold 3000 shares of OPTO CIRCUIT @ Rs. 115, & want to know future about OPTO CIRCUIT.
Now-a-days it goes down & down.
As per my knowledge, it's a very nice stock, but FINAL IS YOUR VIEW.
If possible pls. suggest, what to do stay or quit.

Goldman Sachs Positive on India!

In case you have missed reading this from news reports:

Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead.

The investment bank pegged December 2013 Nifty target at 6,600 points.

Tuesday, November 27, 2012

Hindustan Copper OFS: The Art of Losing 9600 crores of market value to achieve 800 crores of stock sale!

Government is busy celebrating the good start of disinvestment program for 2012-13 with 5.5% stock sale in Hindustan Copper. Hindustan Copper is a marquee firm which is the only completely integrated Copper Producer in India. Copper, incidentally is a very valuable commodity and is the back-bone of all industrial and infrastructure growth world-over. Copper prices in international market often fluctuate with the slightest movement in economic data released by countries like China which are big consumers of this commodity.

Monday, November 26, 2012

Timbor Home Stock Analysis: Only listed Indian firm in Modular Kitchens!

Timbor Home is an Indian manufacturer and retailer of Modular Kitchens, Solid Wood Furniture and Doors. Timbor is the only listed Indian firm focused in Modular Kitchen space, which is an aggressively growing niche space in view of increased spending by Indians on their homes and kitchens. The modular kitchen space is expected to grow at about 50% YoY for the next few years. Timbor has about 20% market share in India in branded modular kitchens.

Sunday, November 25, 2012

How to Invest in Commodities like Platinum, Silver, Copper, Lead and Zinc!

Investors are often looking for alternative asset classes to invest their savings, other than the traditional options available to them like Mutual Funds, Insurance, LIC Schemes and Bank Fixed Deposits. The recent run away rally in Gold and craze for Gold in India and China is pointing to the fact that Investor’s trust in paper currencies and financial assets is at all time low. Investors believe that Stock markets are subject to manipulation and Currencies are subject to devaluation and rightly so. There is a substantial pent up desire to invest in newer asset class like commodities. Investors are lapping up precious metals like Gold Jewellery and Silver bars and coins from both hands. But because of this herd run, Gold is at all time high and Silver has become highly volatile, subject to sky high prices and sudden pullbacks. So are there any other commodity options to invest and how can Retail Investor benefit from them?

Your chart based query on Zicom and Shilpa Medicare!

A valued reader asks a query on charts for Zicom and Shilpa Medicare:

Question: Just wanted to cross check with you on chart patterns which I am looking at the charts correctly , please do reply:
1. Shilpa Medicare --- 310 breakout point of a inverse Hn s on weekly time frame with volume action target high 400 ish .
2. Zicom security ------ Rounding bottom on weekly at 90 with volume action , Target HIGH 149ish?

Saturday, November 24, 2012

Curious case of Money Matters Financials Services Ltd!

A valued reader asked this question on Money Matters Financials Services Ltd:

Question: There is this one counter that I'm very bullish on and bought at 97 it is at 130 odd....had made a peak of 787 in 2010...into financial sector...main business is lending has ZERO value at 232...networth of co is 824 cr...

Ya forgot to mention the stock is Money Matters Financial services....

Also with rate cuts from may be would get benefited, I believe...

Naren, can you kindly do some technical as well as fundamental analysis of the same and throw more light as to whether it can be a good long term investment.

(Naren, also note....there was a CBI raid in 2010...n it has crashed to 44...but then I learnt, that it has got a clean not confirmed about clean chit though)

Friday, November 23, 2012

Your questions on SpiceJet, RS Software and Zylog!

Question: What is your opinion on RS Software?  Enjoy reading your blog. Thanks.

Answer: RS Software - I had a quick look at financials, numbers look good. Price run-up has been strong till date. Now trading at 2.5X of book value. Can correct slightly from here. Need to analyze in depth, but overall looks good to me.

More questions:

Thursday, November 22, 2012

Shakti Pumps Stock Analysis: Growth Stocks!

Shakti Pumps is one of those growth stocks, for which the saying goes, Buy High and Sell Higher. The scrip has doubled from the lows of 29.75 where it was trading in the beginning of 2012 and there is a long way Shakti Pumps can travel from here.

Shakti Pumps manufactures submersible pumps, motors and application pumps for a wide range of industrial and agricultural applications. Shakti is among the few companies in the world to produce 100% stainless steel submersible pumps and motors. The firm differentiates itself by energy efficiency of their pumps and has 5-star energy ratings for several of their pump models.

Wednesday, November 21, 2012

Glodyne Technoserve: Destruction of Shareholder Value!

In response to my post on Zylog Systems here, I got a few comments to write about Glodyne Technoserve as well. Glodyne is not on my radar, hence I had a fresh look at charts and financials for this firm. Looking at the charts for Glodyne truly filled my heart with pangs of sadness, as this momentous crash has the footprints of thousands of investors trapped in the debris.

This is the same story for folks trapped in firms like Tulip, 3i Infotech etc. So a common theme across midcap IT firms in last 2 years, was to take huge debt and buy firms abroad at lofty valuations. When these arcane diverse businesses did not add up to a meaningful large picture, it created tremendous destruction of shareholder value. The process was to over-leverage the firm by taking up debt and as the interest rates moved up due to money supply tightening in past 2 years, these firms are now unable to pay debt, or to pay salaries on time and hence these erstwhile IT midcap names are reduced to 100-200 crore microcap stature.

Pl look at Glodyne chart below:

Tuesday, November 20, 2012

Tara Jewels IPO!

At StockFundoo, we are never super-excited about IPOs. This is because investors in most of the recent IPOs are in deep red and have lost significant money. Please see our post on recent IPOs here

From this post:
Out of the last twenty large/mid-sized IPO listing, only seven are in profit and thirteen stocks are in losses, six of which have lost more than 80% of their listing price. This phenomena is going on from quite some time, where promoters of companies go for IPOs listing at exorbitant prices and cash on quickly, thus leave investors holding worthless stocks which are down by 80% to 90%. The most common saying about IPO is rightly so: It's Probably Overpriced.

Lets look at available data for Tara Jewels IPO, which opens tomorrow 21st Nov:

Short term Bottom on Zylog Systems!

We wrote about Zylog Systems few days back here, on how stock was crashing to Lower circuit on daily basis, on the back of possible Bear Cartel and Rumor mongering. Today, there is a possibility of short term bottom on this scrip, with huge volumes of trading getting reported and stock moving 4% up in intra-day trade. As market is still not closed for the day, we don't know if this is for real, but Zylog is worth a close watch from today onwards for a possible short term revival.

Please see the volumes reported in this scrip:

Sunday, November 18, 2012

Are Commodities in Bear Grip? Not Really!

Sometimes I think financial analysts are really hired just for showing lot of worry and concern on TV every morning. Analysts world-over are worried about Commodity prices from 2011 onwards, citing recession in Europe, in USA and in China, which is a great guzzler of commodities like Copper. However, unlike 2008, where commodity markets fell off the cliff in just a few months, last two years of slowdown has almost done nothing to ease commodity prices. This is despite everyone being very bearish on commodities and commodity stocks. We see TV anchors talking about great impending slowdown in commodities from past two years on a daily basis. But is it really this bad, or this is another case of everyone being bearish, except the one who matters - Mr. Market. We need to look at data and figure out if commodity prices are indeed softening or this is just a consolidation phase for the next up-leg in commodity markets.

Friday, November 16, 2012

Nifty falls off the (US Fiscal) cliff today!

Nifty Index had a particularly bad day today, with US Fiscal worries weighing high on markets globally. The Nifty Index fell from a Intra-day high of 5662 to Day Close of 5566, which was Day's lowest point as well. Thus the intra-crash for Nifty was almost 2%, a significant crash. Similar was the case for other indices such as BankNifty and Midcap index. Midcap Index fell about 56 points, which is fall of almost 2.5% in Midcap index intraday. Day close for Nifty was about 1.2% lower than previous day close. Please see the EoD chart for Nifty-1M below:

Thursday, November 15, 2012

Modus Operandi of Bear Cartels: Zylog Systems Stock Crash!

Zylog Systems is in dramatic lower trend since past one month. For the whole of this November, Zylog Systems is crashing at market’s open and moving immediately to lower circuit limit with huge volumes. This has plunged the price to 75 Rupees at today’s market open, which is about 80% lower than 335 Rupees where Zylog was trading at just a few months back.

Wednesday, November 14, 2012

Top 5 All-Time Best Books on Investing!

Investing is one of those skills which take just a week to learn but a life time to perfect. And what’s better than reading classic investment books to learn and perfect this skill to nurture your life with returns and rewards. Here is a quick review of Top 5 All-time best books published in the world of Investing, which are simple and easy enough for a non-finance professional to read and understand the basics of investing. With hundreds of new investment books appearing on shelves each year, a Top-5 short list is very difficult to determine. But some books are just irreplaceable with the sheer genius of writer and their marquee content. Here is a quick insight into what is best at the investment book shelf:

Monday, November 12, 2012


We at wish all our readers a Very Happy and Prosperous Diwali!

Wishing you and your family loads of happiness and prosperity.

Check out our Model Portfolio here, which will guide you through Great Returns in the coming new Year 2013!

Saturday, November 10, 2012

Shree Ganesh Jewellery House Stock Analysis: Insight into Indian Jewellery Industry Business Model!

Although Gold and Diamond are shining at their pricier best currently, Jewellery companies listed on bourses are not at best of their price range. In this article, we look at business model of Jewellery companies, and how some firms are mitigating these issues. Also are some companies available at truly wonderful value prices now? How can value investors benefit from this mayhem, let’s have a look and decide.

Friday, November 9, 2012

Guide to Dividend Investing: How to Profit from Rich Dividend Paying Stocks!

Dividend is your share of the annual or quarterly profits that a company has declared over a period of time. Dividends are regular payments made by companies to their shareholders and are considered tax-free in the hand of shareholders in India. When you purchase stocks for investment and are shareholder of a given company, the company can either pay part of their annual profits to you in the form of regular dividends, or the profits can be reinvested in the company’s business. Typically, it is seen that companies willing to share their profits with their shareholders do well over a period of time, as their stock gets good visibility among investors and is traded at good premium over other stocks.

Sunday, November 4, 2012

How Obama v/s Romney Presidential Election can affect your Portfolio returns?

Stock Market is nothing but an aggregate or sum total of daily activities of millions of investors, traders and institutions who buy or sell on a given day as per prevalent sentiment, political and economic realities. Political situation in any country affects the stock market morale due to economic policies of particular parties and general elections have the potential of changing the course of economy of a country. And when the country in question is United States of America, the policies affect not only the domestic economy of USA, but the whole world, and especially countries like India which have strong business ties with USA.

How Obama v/s Romney Presidential Race in USA will affect your portfolio? 

Thursday, November 1, 2012

Why High Frequency Trading (HFT) is not so profitable anymore!

High Frequency Trading, or popularly known as HFT, is a set of trading algorithms which aim to profit by lightning fast trade executions in electronic trading markets. More than 30% of currency trading in world markets and about 90% of stock trading in exchanges like NASDAQ is carried out by computers using HFT algorithms. These HFT algorithms buy and sell shares rapidly, typically in milliseconds or less, and their total share holding period is fraction of a second. Unlike the typical investor, which buys and holds the stock for a few months or so, HFT algorithms average stock-holding period is just about 11 seconds! And how do they make money in 11 seconds, let’s have a look:

Sunday, October 28, 2012

Hindustan Construction (HCC) Stock Analysis: Turnaround in offing!

India faces a chronic shortage of anything which remotely resembles Infrastructure. With more than 50% of India’s 1.3 Billion population squeezed in urban areas, this rapid urbanization of India creates a tremendous shortage of roads, highways, power supply, residential spaces, clean drinking water, sewage systems and  transportation to name a few. There are a few renowned private sector players which operate in these doomed sectors, doomed currently because of government apathy, high interest rates, shady practices and cloudy political ecosystem.

Hindustan Construction Company (HCC) is a 85 year old business conglomerate operating in Infrastructure space and have delivered marquee projects in engineering, construction, hydro power, nuclear power, expressways, water and social infrastructure to name a few. HCC has developed Lavasa, a new hill city, a huge project over 12,500 acres executed for the first time in the history of modern India. India, with rapid urbanization, needs dozens of new Lavasa’s to reduce and manage population pressure on top 5 metros.

Saturday, October 27, 2012

Did you make any Money this Week from StockFundoo Trading Signals!

Every weekend we will take stock of how the Trading Signals fared this week and did we make any money from the Trading Signals. Pls see the Profit/Loss from the Signals published this week. Gross Profit this week has been 12.12% for total of 8 trades, out of which 5 were new Swings initiated this week and 3 Swings continued from last trading day of past week.

Metals were shorted en masse on 19th Oct, with Hindalco, SesaGoa and TataSteel, all Shorted within 90 minutes on morning of 19th. These metals continued to trade lower this week, hence StockFundoo continued the Short swing for metals.
Out of 5 new trades this week, 3 were profitable and 2 were losers. Biggest winner was again DLF short and TCS Long, hence Shorts made considerable profit this week on a overall basis. Pls see the table below:

Did you make any money from Trading Signals this week? Pl see FAQ on top-right on how to make use of these signals.
Thanks for reading this article and keep writing in to us.

Wednesday, October 24, 2012

Camson Biotech: Technical Outlook and Fundamental Update!

We analyzed Camson Biotech about 6 months back and our fundamental analysis on Camson is available here. Camson is a gem of a scrip, and this indigenous biotech research firm has a rich portfolio of 22 biocides, 7 bio-fertilizer, and 17 hybrid seeds. Camson has a research infrastructure spread over 25 acres with modern labs and field testing facilities. Additionally firm has also developed a Proprietary Technology platform with microorganism database, screening technology and product compound library.

The results over last two quarters have been good with annual revenues now at 112.7 crores, which is about 13% growth over last year and EPS at Rs 12.49. Book Value is improved to Rs 69.27 per share and at current market price of 56.35, Camson is still available at decent discount to Book Price.

Saturday, October 20, 2012

Did you make any Money this Week from StockFundoo Trading Signals!

StockFundoo has started publishing Swing Trading Signals from last one week or so. Every weekend we will take stock of how the Trading Signals fared and did we make any money from the Trading Signals. Pls see the Profit/Loss from the Signals published this week. Gross Profit this week has been 10.03% for total of 17 trades, out of which 10 were profitable and 7 were losers. Biggest winner was DLF short, which was mired in controversy this week. Pls see the table below:

Did you make any money from Trading Signals this week? Pl see FAQ on top-right on how to make use of these signals.
Thanks for reading this post and keep writing in to us. 

Your questions on Nalco, Hexaware and Eros International and Our answers!

Dear Readers:
We have received few questions from you in past few days and here are they and our replies:

Q: I regularly visit your website and I think you are doing a good job with your analysis. Can you please write something about Eros international. I think its a good company in the media segment.

A: Technically, Eros is near to its support point of Rs 159 and 153, which will be very difficult to break. Eros has been in a downtrend for last one year and next support is also close which is about 137 and 125, which is all time lows. Upside, 185 to 215 range will be difficult to break, so that's the upside targets for short term.

Sunday, October 14, 2012

Ion Exchange Stock Analysis: Challenge of providing Pure Drinking Water to burgeoning population!

Pure Drinking Water is one of the most challenging and underrated issues for most emerging economies, India being one of them. We are already seeing states in India sparring over river water distribution issues and this problem is going to compound in days to come. Consumer is not willing to pay market rates for base commodities like Electricity, LPG, Petrol, Diesel and he will not pay anything for Water. This severely complicates the water cleaning and distribution ecosystem and economics of states and hence this problem will keep on compounding until it blasts in our face.

Shrewd investors like Private Equity realize this challenge in India and are already investing in several cutting edge companies which do research and implement waste water treatment, desalination and effluent treatment  etc. Several international players are aggressively entering Indian markets and today we talk about one of the few listed companies in this space - Ion Exchange.

Update on REI Agro Stock Analysis: Bumper Dividend Crop of 50%

We wrote on REI Agro about 6 months back here, on how the firm is severely undervalued and is available at deep discount valuations. Two quarterly results are out since our post. REI Agro has delivered bumper topline results of 1536 crores and 1508 crores in last two quarters, which is 50% higher than 1002 crores in Dec, 11 quarter. So the firm is clocking a revenue runrate of 6000 crores annually and even today is available at total market cap of just about 980 crores.

Not only this, promoter shareholding has gone up in last two quarters from 47.70% to 49.59%. Now, REI Agro has come up with a bumper 50% dividend which is highest ever dividend payout for the firm. There are  existing challenges for the stock like high debt and promoter pledging their stock, but is expected to deliver multi-bagger valuations for patient investors.

Meanwhile, keep enjoying the bumper dividend yields. 

Sunday, October 7, 2012

Liberty Shoes Stock Analysis: Leader in Shoe Manufacturing and Strong Brand!

Liberty Shoes is one of the top Shoe Manufacturing and Retailing company in India, and stands among top 5 Leather Manufacturing firms in the world. Liberty Shoes is a 50 year old firm and now boasts of top Indian Shoe brands such as Coolers, Gliders, Fortune, Senorita, Footfun etc. The firm produces more than 50,000 shoe pairs per day and retails them through 400 exclusive company showrooms.

Liberty Group compromises of three firms - Liberty Shoes, which is the listed entity, Liberty Retail Revolutions, which is a chain of high end showrooms across the country and Liberty Whiteware - manufacturer of sanitary-ware. The group boasts of combined turnover in excess of Rs 600 crores per annum, with Liberty Shoes turnover in the range of Rs 330 crores for year 2011-12. The firm   is also Marketing and Brand aware and has roped in top Bollywood star - Hrithik Roshan - as its brand ambassador. Branding is what differentiates a run of the mill Shoe company from another premium Shoe Brand with sustainable pricing power.

Friday, October 5, 2012

Another Flash Crash: 15% Down Spike in Nifty: Chart

At 9:55am this morning, there was a whooping 15% spike in Nifty for a brief second. This resulted in Nifty trading 2.5% lower for a while later. Pls see the 30 min chart and 1 min chart below.

What caused this Flash Crash? There might be several traders whose Stop Loss would have been damaged and tremendous loss caused because of this. Pls see below:

Update: Later in the Day NSE updated that "Fat Finger" trade by dealers at Emkay Global, sold 650 crores of equities below market price. This caused severe price correction in bluechip stocks and hence took Nifty down along with them.

Question to ask to Nifty is that: Why to allow primitive price discovery mechanism at bourses. Why can't you sniff for orders with error, i.e. punched price severely away from current market price and halt execution of such orders.

The sentiment was totally destroyed this morning, and Midcaps and Smallcaps took a heavy beating, all thanks to Emkay Global Fat Finger Broking Services. Cheers!

Sunday, September 30, 2012

GHCL: Market Leader in Industrial Products, Textiles and a Dividend Gem!

GHCL - Gujarat Heavy Chemicals Ltd - is from a category of stocks which makes me wonder that how many undervalued gems are lying around undiscovered in Indian Markets. GHCL is a crown jewel from the erstwhile Dalmia empire, which had its businesses in myriad of spheres such as Newspapers and Publishing Houses, Biscuits, Cement, Chemicals, Distilleries, Dairy Products, Sugar, Textiles and many others.

GHCL operates in two key business verticals which are Industrial Products - Soda Ash and Textiles.

Friday, September 28, 2012

Did you make any money from StockFundoo?

Did you make any money from StockFundoo Analysis?

At StockFundoo, we have analyzed about 17 stocks in past 6 months. Most of these stocks were undervalued gems, paying as high as 5% dividend from past many years. In the past 1.5 year Bear run on emerging markets, especially India,  Midcaps and Smallcaps were badly beaten up. So at StockFundoo, we analyzed several of these stock stories and presented their internal strength to you.

Lets see how our recommendations have done, and whether you have made any money in past 6 months:

Friday, September 21, 2012

Nifty: Key Level Breakout today and heading towards 5950!

With a marathon 2.5% rally in Indices today, Nifty broke a important resistance level 5630 comfortably and is heading towards the next resistance zone of 5950. Nifty's Mojo is definitely back, as liquidity is back in global system and India government is sending all right signals. Please see the chart below which shows key resistance levels for Nifty on a Daily chart. Current resistance level of 5630 is comfortably broken today and this breakout has also broken the upward price channel.

Saturday, September 15, 2012

India is Back on Growth Path! And which Midcap & Smallcap stocks can benefit from Reforms!

Congratulations! India is back on Reform path in a flurry of announcements - both domestic and global - in last two days. We at StockFundoo however pointed the bullish Golden Cross on Nifty five week back on August 8. Read that report here. Golden Cross is a reliable technical indicator which seldom fails. Please remember charts always move much earlier than the news items!

So FDI has opened up in Retail and Aviation, as well as Broadcast and Power Exchanges. Disinvestment in PSU is on its way. Rate cycle will most probably turn around this Monday and gradual rate cuts will happen throughout the next one year. Which all Stocks - Midcaps and Smallcaps stand to benefit out of this excitement. Lets look at charts and figure out!!

Nifty has broken out on charts, but what is happening on Midcaps. They are still lagging, hence the next flood of capital will enter the Midcap space, please see the two charts for comparison:

Pls see the Nifty chart below for Support and Resistance levels on EoD charts. Nifty has nearly reached the resistance zone of 5575-5600, where most of prior bear rallies in 2011 had failed. Pls see the history of this important level in much of later part of 2010. This zone gave a tremendous resistance in all of 2010 and once crossed, 5600 to 6300 happened in less than one month. All call option sellers, selling in September at this level were taken to cleaners and lot of high level resignations happened at PMS firms due to PMS traders losing a lot of client money selling call options, when 600 point rally suddenly happened after breaching 5600! Be afraid, be very afraid of this level!

Sunday, September 9, 2012

Ramky Infrastructure - Giant of a Infra firm!

I have a close friend who is in love with Ramky. Ramky Infrastructure's stock, that is. After a few luncheons where I overheard  the goodness of Ramky in detail, I decided to explore it myself. I am happy to disclose that Ramky Infra finds a good place in my portfolio as well now.

Ramky is a giant of a Infra firm, and has built Roads, Residential buildings, Dams, Barrages, Water Treatment plants, Sewage plants, SEZs, bridges, flyovers and Power transmission projects. With the Infra starved country that India is, Infra specialists firms have a good future ahead. All they can build, India can absorb, and will demand for more, atleast for the next decade or so. Also, Infra sector is out of favor currently, but with Interest Rate cycle reversing its path, monetary loosening on the anvil, capital hungry firms such as Infra will be back in favor. 

Sunday, August 19, 2012

Zee Learn - Benefit from rapidly growing Pre-school Education segment!

We all know the 4 P's of Marketing that we learnt in MBA class - Product, Promotion, Price and Place. A few years back, a CEO of Toy MFG firm taught me another P of marketing - the Fifth P. Its called Pester Power, the amazing pestering power of kids over parents, how they bargain for toys, clothes, candies and what not. Firms in this segment realize this pester power to target this fifth P and market their products with innovation!

In context of India though, pestering is critical, but more important is to understand the emotional makeup of parents, who maybe frugal when it comes to their own shopping but spend over the top for kid's education, clothes and whatever else they deem necessary for their ward. There is a established trend in most cities for toddlers to attend best Playschools which are often branded Playschool chains such as Kidzee. Kidzee is largest preschool chain in Asia, with more than 900 pre-schools in 330 cities across India. It caters to more than 40,000 students and boasts of proprietary teaching curriculum, content and methodology for children.

Zee Learn which operates Kidzee is a listed firm, and belongs to business house Essel group. Zee Learn is the only listed firm in India which operates in this unique segment catering to play-schools and pre-schools.

Wednesday, August 15, 2012

Happy Independence Day!!

Happy Independence Day to my Dear Friends!!

India or Bharat, as our great nation is called historically, is now in its 65th year of Independence, and what a progress we have made in this time!! From a poor country in shackles which seemingly had no future, we are now a reasonable strength economic power. Purchasing parity wise, we are third largest economy in the world, ahead of tremendous nations such as Japan, Germany, Russia, France, South Korea and our erstwhile rules, Britain. This is true freedom, where our country which was British slave for many centuries, surpassed the rulers in just half a century. This points to greatness of India, and speaks volumes of what we can achieve in next few centuries.

One thing I observed this morning, is that there is superb difference in country's focus now. Its just Money, Growth and GDP!! Just a decade back, our PM on Lal Quila used to talk inanely about Pakistan, Terrorism, China, Blah Blah, national security, more Blah, Naxalism, Blah, Corruption, Blah and endless Blah.

Today our PM in his second para of Independence Day Speech , jumped directly to GDP!!

Wednesday, August 8, 2012

Golden Cross on Nifty!

Another Golden Cross happened on Nifty on 27th July 2012. Golden Cross is a significant technical event, when 50 SMA crosses over 200 SMA on EoD charts. This often marks the start of Bull Run on most markets.

In past 10 years of Nifty history, only two Bullish Crossovers, i.e. Golden Cross have failed and one failed recently, when crossover in month of March, 2012 failed to sustain. This is second Golden Cross this year and hopefully strong Bull Run should start in next couple of months. Pls see the chart below:

Tuesday, August 7, 2012

SpiceJet Ltd - Indian Aviation Sector on a Roll!

Not many would be aware that SpiceJet has had its humble beginnings as ModiLuft in 1993. In fact, NSE ticker for SpiceJet stock is still listed as MODLUF. ModiLuft was an Indian JV with Lufthansa and maintained high standards and created many firsts for Indian aviation sector. However, ModiLuft brand ceased to exist by 1996 due to JV issues and was renamed as Royal Airlines. By 2004 it was renamed as SpiceJet with a low cost business operating model. By 2008, SpiceJet was India’s second largest low cost operator and still SpiceJet is among the four largest airlines in Indian skies.

Indian Aviation sector was in deep trouble since last couple of years due to government apathy, rising Jet fuel costs, cut-throat competition, abysmally low fares and absolute lack of pricing power for all carriers. There was little service differentiation among various carries, which caused price as the only determinant for a flyer to make a decision. Airlines competed solely on price, and fares were as low as INR 100 on some routes, thus driving airlines into deep losses. Spicejet had five straight quarters of losses. And then things turned around.

Saturday, August 4, 2012

Indian Bull in Shackles, or is it India in Shackles?

After centuries of stagnation and poverty, history has given our country a chance to grow and grow aggressively. The economy needs to strengthen and needs to lift millions out of poverty. We need to realize our potential. Will it happen in our lifetime?

I think it will. I can write on and on, but since single picture conveys a thousand words, here are my three thousand words:

Sunday, July 29, 2012

Brigade Enterprises –Gem in your Neighborhood!

Peter Lynch, the celebrated Mutual Fund Manager and Investor, used to believe that the best equity investments are made in the brand names you see everyday around you. Invest in what you know. So much so, once Peter went for a haircut in neighborhood saloon and came back and bought the stock of the listed Hair Saloon firm!

On similar lines, Brigade Enterprises is a known brand name in Bangalore, IT Capital of India. Owning a Brigade Apartment is a matter of prestige (Pardon the pun, Prestige is also a competitor). Other than Residential space, Brigade constructs commercial and retail property and leases them out. A noticeable aspect about Brigade which very few people are aware of is that Brigade outsources its construction activities to Infra players such as Ahluwalia, Simplex etc. 

Thursday, July 26, 2012

Thursday MidCap Stock Carnage on NSE...Short term Bottom is Near!

Stock Carnage is a strange phenomena.. It seems like the world is about to end for the small investor who is actually holding the stock. Investor thinks that this stock is falling like dead rock and probably the company is about to shut shop. He tries to sell at any price, but noone is buying and suddenly the lower circuit is hit and investor is left holding the hot potato till the market opens the next day. Investor resolves to sell the stock at any price tomorrow morning, but the saga goes on for next few days till the stock almost seems worthless and investor is left in deep pain holding a stock which is down by 70-80%...

Perversely, Stock crash are a Golden opportunity for Vultures  to own good companies at crazily low prices. Lets see the Carnage that happened today in Midcap select stocks on Thursday today.. Today was a F&O expiry session and it literally become a "Expiry" session where some of these Midcaps actually Died/Expired and went to Hell !! Lets look at the charts and good buying opportunities that will come in next few days...

Sunday, July 22, 2012

Beautiful pictorial depiction of Stock Markets.. Its not only about Bulls and Bears..

Markets are not only about Bears and Bulls.. Bulls win, Bears also win, there are other animals which get slaughtered..
Artist: Susan Slyman, 2000

Wednesday, July 18, 2012

The Plight of Moser Baer!

This morning I bought stocks of Moser Baer.

Now, Moser Baer is a glaring example of what all things can go wrong with a firm. Almost everything that can go wrong has already gone wrong. Moser has been consistently making losses every year from last 5 years. And most quarters of last 5 years have been bleeding in red ink. Moser Baer is the second largest manufacturers of optical media in the world, and manufactures floppy, CDs and DVDs. Great, only that world has moved on from DVD drives to flash drives and thumb drives. 

Sunday, July 15, 2012

Craze for Gold in India and China and possible Gold Crash!

The Craze for Gold in India and China has reached its Pinnacle. Billionaire trader and investor George Soros has warned investors several times that Gold is the Ultimate Bubble, but Gold continues to move higher. I personally witnessed yet one more proof of craziness & sentiment indicator of this ultimate Bubble. When Gold was lying flat at Rs 8000 per 10 Grams in 2007 timeframe, no one was interested in this precious metal. People used to think about Gold only during marriages when buying Gold becomes a cultural and social necessity. Few days back I was shocked to see a Television soap-opera when a TV vamp uses 2 gram Gold coin as a Bindi on her forehead. Utterly obscene and crazy! Such is the level of craziness that Gold has reached in our country.

Wednesday, July 4, 2012

Are Poor Monsoons good for Indian Stock Markets?

Poor Monsoons definitely are bad for overall economy of a country, especially India. Sale of 2-Wheelers, 4-Wheelers, rural spending on FMCG & Consumer products etc goes down after a Bad Monsoon. About 50% of Indian population still draws their livelihood from Agriculture, which is highly Monsoon dependent in India. Poor Monsoon results in poor crops, less cultivated area, cultivation of crops which need lesser water, and all these factors result in lesser spending by bulk of Indian population from rural India. Additionally, many firms top-line growth are dependent on Rural sales penetration as they have already penetrated urban areas, and their overall growth plans are affected as well. All in all, bad monsoon spells nothing but problems for Indian economy.

But what about Stock Markets? Do Bad Monsoon in an year necessarily mean crash in markets, or does it actually go bullish in years when monsoon has been bad? Is this as crazy as it sounds? We need to look at historical Monsoon data and derive our conclusions, which may be shocking to say the least!

Monday, July 2, 2012

Your Queries and Our Answers - Part 1

Its always a good feeling to receive an email from you. It can be a simple hello, or a critique of what I wrote, or a question or request for advice, but we love getting emails from you. Keep writing at

Amitabh from Kolkatta writes:

Saturday, June 30, 2012

Hanung Toys - (Indian) Success story in Toys Manufacturing and Exports!

We all firmly believe that Manufacturing is Chinese Forte and that Toys manufacturing is best done by Chinese companies. It would come as a pleasant shock that Hanung Toys and Textiles is a Indian listed firm which exports Toys and Furnishing to Global Firms such as IKEA, Wal-mart, JC Penny, Target, Sears and Metro Group. Hanung Toys is one of the world's leading companies in the soft toys category and exports globally to US, Canada, Germany, France, the UK, Sweden, Belgium, Russia, Austria, Poland, and Chile.

Sunday, June 24, 2012

The curious case of Natural Gas Revisited...

Eight weeks back, I wrote about Natural Gas and the fundamental tectonic shift that had caused 80% crash in NatGas prices over the past few years. The post is available here  

At the time of writing the above post, Natural Gas was a sinking ship, but I had bravely and foolishly pointed towards a possible double bottom and possibility of recovery of prices. Guess what, Natural Gas continued to crash by another 10 Rs after my post and has recovered whooping 50% since then.

Saturday, June 16, 2012

Indian Markets at Cusp of new Bull Run!

This weekend is full of negative news elements and possible surprises. Coming Sunday may spell disaster for Greece, as they await repeat elections and may pull out of Euro zone. India eagerly awaits monsoons, experts have already given a 50-50 chances towards poor monsoons and hence a blow to rural spending and food inflation (which is already at 10% as we speak). Presidential elections in India have been nothing short of dramatic mess at highest levels. So a sweet mix of political, global and climatic shocks awaits us as we write this.

Amidst all this drama, what do stock charts convey? India is standing at a cusp of huge Bull run as per Indian stock market charts!!

Sunday, May 6, 2012

Venky's India: Profiting from changing Indian Food Habits

Traditional Vegetarian fare lover Indians are transforming their Foods habits, and at what pace! India has had a strong culture of vegetarianism, but is seeing a sharp rise in consumption of meat. Per capita consumption of meat is now at 5.5 kilograms a year, and is growing year on year. There are several reasons for this growth in meat consumption: strong domestic economic growth, increasingly affluent consumers, affinity for protein rich diets and variety in offerings.  Eating non-vegetarian food is no longer a luxury for affluent middle class Indians. 

Thursday, May 3, 2012

Is Facebook IPO signalling end of S&P Bull?

Large IPOs are decidedly bearish. We just need to go back a few years in 2008, when Reliance Power IPO hit Indian markets and was overly hyped as the largest IPO ever to hit Indian markets. The 11,600 crore IPO was subscribed in under a minute! Within one day, it was oversubscribed by over 10 times. And most of this was on margin money and borrowed money that investors borrowed to cash on the hype! And what was the end result?

Tuesday, May 1, 2012

The Irrelevance of S&P Ratings

India’s sovereign credit rating was downgraded recently to BBB- by elite rating agency S&P. S&P also threatened to move India to category of junk rated countries. The stock bourses pretty much ignored this threat and continued with business as usual without any anxiety or crash whatsoever. Market and Price are best rating judges of a country or a business, and do not need an external agency to certify its credit or solvency status. In this article we try to look deeper within S&P’s ratings and its history and figure out if such rating agencies are relevant at all or they have reached a permanent state of irrelevance and obsolescence for investors and traders.

Sunday, April 22, 2012

SRF Ltd: Dividend Gem and Midcap Star

SRF is a multi-business group, global entity with manufacturing plants in four countries and is market leader in most of its businesses in its home market in India. SRF is also the world's 2nd largest manufacturer of both the Nylon 6 tyre cord as well as the belting fabrics.

SRF began in 1970 when its parent company DCM decided to set up a separate entity to manufacture nylon tyre cord fibres. SRF became one of the first companies in India to start manufacturing nylon tyre cords. Over the years, the company expanded its product line in technical textiles and also diversified into other businesses like Chemicals, Packaging Films and Engineering Plastics. Its one of the few manufacturing successes emerging out of India and is winning globally over the years.

Saturday, April 21, 2012

Freak Trades or Flash Crash on NSE: What is it and Why?

With the complete automation of Stock Exchanges and 100% computerization of markets, there comes a added risk in form of large, unexpected Freak trades which often crashes a specific Stock, or group of Stocks or even Index for a short while, thus causing tremendous loss to market participants and dampening  the sentiments, not to mention damaging the faith of common man in stock markets.

Thursday, April 19, 2012

Nifty - Breakout on the Cards!

Nifty has quietly, without telling anyone, has broken out of the wedge it was forming from past 2 months. However, it remains to be seen whether this breakout is credible and strong and give you another 1000 point move in Nifty, taking it to 6200?

Wednesday, April 18, 2012

REI Agro: World Leader in Basmati

As Amitabh Bachchan said in one of his old blockbuster, three key elements for survival for a human being are Roti, Kapda and Makan (Food, Clothing and Shelter). REI Agro, the company we are looking at today, is India’s biggest Basmati rice processing and marketing firm, and is the biggest company in the whole world in this humble space.

Monday, April 16, 2012

Why are FIIs stocking up on Infosys shares?

Amidst all the negative news flows and talks of changed sentiments toward bellwether IT Largecap stock Infosys Ltd, it’s a difficult statistics to believe that FII holding in this particular scrip has actually gone up from 36.66% two quarters ago, to 37.36% one quarter ago to a whooping 39.02% in the quarter gone by. 

Thus FIIs own greater pie of Infosys stock than any other entity taken individually. In the same time-period, Indian public shareholding in Infosys has continuously fallen, from 13.53% to 13.08% to 12.97%. Now, FIIs are a bunch of real pros, whose job is to analyze the market, and take buy/sell decisions after much in-depth analysis, whereas common public often buys or sells stocks based on sentiments or what’s published in broker stock reports or newspapers, which is again primarily sentiment driven.

So what’s the real story behind the scenes? Why are FIIs so bullish, whereas rest of world is negatively reacting to Infosys? Let’s look at data and analyze.

Sunday, April 15, 2012

Dividend and Deep Value Gem: Shipping Corporation of India (SCI)

Shipping Corporation of India (SCI) is a dividend gem, trading at very reasonable valuations and is a Deep Value pick at today’s market prices. SCI has paid dividend twice in last financial year 2011, totaling up to 55% on its face value of Rs 10, thus delivering dividend income of Rs 5.5 on share price which is hovering around Rs 62 per share as we write this. This comes to a decent 9% annual income from dividends alone. 

Saturday, April 14, 2012

IPO: It's Probably Over-priced!

Performance of recent IPO's in the Indian Stock Market has been dismal to say the least. Sample this, out of the last twenty IPO listing, only seven are in profit and thirteen stocks are in losses, six of which have lost more than 80% of their listing price.

This phenomena is going on from quite some time, where promoters of companies going for IPOs list at exorbitant prices and cash on quickly, thus leave investors holding worthless stocks which are down by 80% to 90%. The most common saying about IPO is rightly so: It's Probably Overpriced.

Thursday, April 12, 2012

Camson Biotech - Bringing life Back to Mother Earth

Often it is believed that Value investing stands for analyzing boring sectors such as manufacturing, textiles etc where market is discounting good companies and you get bargains. Well, not true! Today, we cover a truly innovative Indian biotech firm which is bringing life back into earth by eco-friendly bio-products such as biocides, bio-fertilizers and hybrid seeds. 

With constant abuse of soil with pesticides, chemicals and seeds, earth loses its fertility and poison from these chemicals seeps into human bodies. Camson Biotech is innovating since 1993, to create residue free farming and have portfolio of products which have brought life back into even infertile soil and happiness into thousands of farmer families.

Wednesday, April 11, 2012

Elliot Waves applied on cracks in S&P 500 charts - Is this the end of US Bull?

Elliott Wave is a esoteric branch of technical analysis. Not to say that it didn't see its glory days. The theory was developed by R.N. Elliott and taken to its pinnacle by Doom Guru Robert Prechter. Using Elliott waves, Doom gurus have correctly predicted 15 of last 5 market downturns!

Today is our moment in the sun to predict one more downturn when we apply basics of Elliott Wave to S&P500 which has suddenly started cracking up. Pls look at the S&P 5 year chart below:

Tuesday, April 10, 2012

Short Video on Difference Between Fundamental and Technical Analysis

I am sharing a short video on the two key methodologies of analyzing Capital Markets.

Market Direction - Nifty Trend - Apr 10th

Nifty has been behaving as expected and like a very obedient child from past couple of days. Today, in addition to today's commentary, I am posting a interesting long term chart, which shows the strength of long term Trend Lines and how they give direction to prices. First lets look at the short term story below:

Sunday, April 8, 2012

Dividend Warriors – Best Dividend paying Stock - HCL Infosystems

HCL Infosystems has always prospered in shadow of its more aggressive and famous sibling – HCL Technologies. But there is a hidden fact about HCL Infosystems, which most investors have no clue on. It’s simply the best Dividend paying stock on NSE and BSE. Sample this, in 2011, HCL Infosystems has paid dividend after each quarterly result – probably the only company to pay four dividends in one year. It has paid dividends to its stock holders three times a year from last eight years, every year. Not only this, HCL Infosystems is a regular dividend paying company from last 15 years. But you may ask, What is the big deal in a dividend payment, don’t we buy stocks for capital appreciation or price rise, not for paltry yearly dividends.

Thursday, April 5, 2012

The Curious Case of Natural Gas!

Natural Gas is a commodity which intrigues me to no end. It is one of the commodities actively traded world-over, also at MCX Commodity Exchange, India and has good liquidity to trade. Natural Gas is perhaps the only commodity, that too from the Energy segment, that is in a strong multi-year Bear Grip. In case you bothered by Petrol prices that are going up every month, you will be shocked to know that NatGas prices have been declining from past 4 years, almost on a monthly basis. So what has gone so wrong for Natural Gas?

Wednesday, April 4, 2012

Market Direction - Nifty Trend - Apr 4th

Markets lost as expected after touching the upper trend line and as we mentioned in our last post yesterday . European markets are bleeding and down by 2-3% today as we write this.

However if we look at the Nifty charts today, the candle today is again forming a cross or a doji as its called in technical analysis. Two consecutive doji like formations, signal only one thing, that the market is unsure about its direction. Pl see the chart below:

Tuesday, April 3, 2012

Market Direction - Nifty Trend 3rd Apr

Today we had another good bullish day on Nifty, where the Nifty opened with a gap and continued with strength, only to lose some of the strength later in the day. This created a typical commonly seen candle in the form of a cross. This candle when combined with a gap opening often signals a exhaustion gap, which means that temporarily the uptrend may pause. Pls look at chart below:

Monday, April 2, 2012

Market Direction - Nifty Trend Analysis - 2 Apr

Today was a comparatively quiet day for Nifty, after the mammoth up-day on Friday, and Nifty ended the day 22 points or about 0.4% higher. Although the broader market was doing much better in comparison with several smallcaps and midcaps showing good strength.
Pl see the Nifty chart below:

Sunday, April 1, 2012

Book Review – ‘The High Beta Rich’ by Robert Frank

In this blog, we would occasionally review a set of interesting books which talk about new concepts in capital markets, stock analysis or wealth creation. Robert Frank, who is also the author of Richistan, a book published in 2008 on excess wealth floating around in this new economy and spending habits of manic wealthy.

Wednesday, March 28, 2012

Technical Analysis of Markets - Direction of Nifty

Technical Analysis is a key tool in the hands of market analysts. It’s a marked deviation from the Fundamental Analysis approach of Scrips which we were applying in past few posts. Technical Analysis simply looks at price and volume for a given Stock or an Index and deploys mathematical insights from price and volume derivatives such as moving averages, momentum, oscillators and so on and so forth.

Tuesday, March 27, 2012

Reliance Industries - Fundamental View of the King!

As discussed in the previous post, Reliance Industries or RIL, has fallen out of favor with investors. In this post, we look at the fundamental picture of RIL and try to ascertain if there are any gaps in the fundamental view of RIL.

Attached is the company performance on a yearly basis and on a quarterly basis:

Saturday, March 24, 2012

Gitanjali Gems - Glittering Gem of a Firm, but at what price you should get in - Part 2

We looked at some of the key parameters for Gitanjali in our last post. We looked at Revenue growth, Net margins growth, Market Cap, Book Value and their comparison. But the question remains for you the investor – At what price one should own Gitanjali Gems.

Wednesday, March 14, 2012

Gitanjali Gems!! - Glittering Gem of a Firm, but at what price you should get in?

Gitanjali Gems is among the pioneers in diamond and jewellery businesses in India and boasts of powerful brands like Gili, Nakshatra, D’Damas, Sangini, Asmi and Diya to name just a few. It’s amazing for most investors to see such plethora of successful brands under one name and business group.

Monday, March 12, 2012

Reliance Industries - The forgotten King!

This is the first detailed analysis of a stock that we are publishing here, so we take the opportunity to debrief our analysis pattern and methodology. Our analysis will compromise of three steps:

A. Technical View of Stock

Birth of StockFundoo!

How common is to start discussing Stock Markets with your friends, family and boss, when someone chips in with a horrible tale of plunder:

  • I bought this Hot concept company IPO - Microfinance, Media or Telecom - and its down by about 80% now. I am scared to even touch IPOs now.

  • The telecom company scrip I bought in 2007-end, I'm averaging it since then but my investments are down by about 60%.

  • Options - Aaaagh. I have lost thousands on advice of my broker and they always turn out to be worthless by Month-end Expiry.

  • Stocks - Beta, don't touch them, even with a tad pole. Invest in Gold instead, they dont make it anymore.

These are common tales of Ignorant and Not-so-ignorant folks playing in markets and learning the lessons the hard way. Is there a way at all to make money, or is it just a bunch of whiz-kids making hay at the expense of common public.

At StockFundoo, we are eager to share our opinion, backed by Technical and robust Fundamental analysis to help you learn the ways of the Capital Markets. We will help unveil each of the situations above, how not in get there, how to spot opportunities and make money. Yes, its possible. We have done it, and will enable you to be successful too. Let's start the journey, with a proverbial small step.

Related Posts Plugin for WordPress, Blogger...