Stock Market Update - 7th Feb 2012

7th Feb 2012,Tuesday

Nifty (5334.10) (-27.55 points) as at 3.30pm
Sensex (17622.45) (-84.86)

As per my yesterday's prediction,Nifty opened up and came down but stood still on its support of 5322.Tommorow in the early session if this level of 5322 is maintained,Nifty can end up positive or else if this level is breached on the downside,beware of a Fall till it again tests 5219.

The Nifty support levels for tommorow are 5300 and 5266
The Nifty Resistance levels for tommorow are 5390 and 5447

Kotak bank (2.53%) and Cairn (2.45%) were the top Gainers
Bhel (-4.66%),JP Associates (-4.38%) and Tata Steel (-3.73%) were the top losers

M&M was down by -3.27% due to poor results.

Other Updates
Gold (MCX): 27894
USD/INR: 48.98

KD

Facebook - Amazing Facts

7th Feb,2012,Tuesday

Facebook, the biggest social-networking site, is seeking to raise $5 billion from its initial public offering, which would give it an estimated market capitalisation of $80-100 billion.
Let's have a look at Facebook's numbers, according to The Economist.

Active monthly users (December 2011): 840 million
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc.

India
Total population: 1.22 billion
Users must register before using the site, after which they may create a personal profile, add other users as friends, and exchange messages, including automatic notifications when they update their profile.

The United States
Total population: 310 million
The name of the service stems from the colloquial name for the book given to students at the start of the academic year by some university administrations in the United States to help students get to know each other.

Indonesia
Total population: 240 million
Facebook allows any users who declare themselves to be at least 13 years old to become registered users of the site.

Brazil
Total population: 200 million
Facebook was founded by Mark Zuckerberg with his college roommates and fellow students Eduardo Saverin, Dustin Moskovitz and Chris Hughes.

Russia
Total population: 140 million
The Web site's membership was initially limited by the founders to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League and Stanford University.

Facebook
Market capitalisation: $90 billion
It gradually added support for students at various other universities before opening to high school students, and eventually to anyone aged 13 and over.

Algorithmic Trading

7th Feb 2012,Tuesday

In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black-box trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention.

Algorithmic trading is widely used by pension funds, mutual funds, and other buy side (investor driven) institutional traders, to divide large trades into several smaller trades in order to manage market impact, and risk. Sell side traders, such as market makers and some hedge funds, provide liquidity to the market, generating and executing orders automatically.

A special class of algorithmic trading is "high-frequency trading" (HFT), in which computers make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. This has resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided.

Algorithmic trading may be used in any investment strategy, including market making, inter-market spreading, arbitrage, or pure speculation (including trend following). The investment decision and implementation may be augmented at any stage with algorithmic support or may operate completely automatically.

A third of all European Union and United States stock trades in 2006 were driven by automatic programs, or algorithms, according to Boston-based financial services industry research and consulting firm Aite Group. As of 2009, HFT firms account for 73% of all US equity trading volume.

Algorithmic Trading

7th Feb,2012,Tuesday

In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black-box trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention.

Algorithmic trading is widely used by pension funds, mutual funds, and other buy side (investor driven) institutional traders, to divide large trades into several smaller trades in order to manage market impact, and risk. Sell side traders, such as market makers and some hedge funds, provide liquidity to the market, generating and executing orders automatically.

A special class of algorithmic trading is "high-frequency trading" (HFT), in which computers make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. This has resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided

Algorithmic trading may be used in any investment strategy, including market making, inter-market spreading, arbitrage, or pure speculation (including trend following). The investment decision and implementation may be augmented at any stage with algorithmic support or may operate completely automatically 

A third of all European Union and United States stock trades in 2006 were driven by automatic programs, or algorithms, according to Boston-based financial services industry research and consulting firm Aite Group. As of 2009, HFT firms account for 73% of all US equity trading volume.

Regards
KD

Stock Market Update: 6th Feb 2012

6th Feb 2012,Monday

Nifty closed at 5356.45 at 3.30pm,As I had predicted yesterday,Nifty closed above 5322 indicating  its strength The nearest Support,now stands at 5322.
The support levels for tommorow are 5325 and 5295.The Resistance levels for tommorow are 5388 and 5420.

The major gainers in Nifty today were ACC (5.74%),Ambuja Cement (5.22%) and Siemens (4.01%).
The losers were Tata Power (-4.61%),HindUnilever (-3.20%) and SunPharma (-2.03%)

Buy Ambuja Cement Tommorow for Intraday.target is 185.

Regards
KD

Telecom Scam - Analyzing the after effects Technically

Date:6th Feb 2012

The Telecom Scam and the Supreme court verdict is a past now.What we as investors now need is to analyze the present and future of the listed telecom companies Technically.So lets start with some of the major telecom Stocks

Rcom (95.90): This stock currently is flat but looks as if it would move in the upward direction and touch the level of 117 in the coming weeks.109 can act as a resistance

Idea (95.95):Idea has a strong resistance at 100.I am not so bullish on Idea.If it close below 93 on the weekly chart go short.What an Idea sirji!.

Hathway (149):Looks good as long it is above the level of 143.Stay Invested!

Mtnl (30.15):Avoid for next 3-4 days.

Tata Comm(231.10): Looks Bearish.Go short below 229.

TTML (15.95): Start Accumulating this stock at this level.

Bharti Airtel(387.90):Start Profit Booking.The good news os already over for Bharti Airtel.

Regards
KD

THE MARKET THIS WEEK - Kedar Murdeshwar

Hi,Guys

After a long  break I am back!

The markets this week!(4th Feb,2012)

This week,the market witnessed lots of happening news,the Supreme Court Verdict about the Cancellation of telecom licences being at the top.Some scrips gained in the Telecom sector while others were crushed badly.Hathway and Bharti Airtel were up by 9% and 3.47% respectively.The Stocks that fell were Rcom (-2.75%),Tata Comm (-1.19%),Idea (-0.64%) and TTML (-0.31%)

The Rupee which appreciated 7% in the month of January,is still positive with Fridays close at 48.70.
Nifty has slightly closed above its very strong resistance of 5322 at 5325.85.It has to be seen whether Nifty can maintain this level and move upwards further.After this 5422 is a major level of concern for Nifty.On the downside,Nifty has a strong support at 5219.Nifty on 1st feb crossed above the 200 day simple moving average indicating bullishness.

On the banking Front last week,Union Bank(6.74%),Kotak Bank (5.22%) and HDFC Bank (4.55%) were the top gainers.

Sensex,with its current close at 17604.96 is looking ahead to take resistance at 17671.It has to be noted that this week's Sensex candle has given a close above last week's Doji Star pattern indicating bullishness.

Nifty Support levels for next week are 5156 and 4987 (not to forget 5219)
Sensex Support levels for next week are 17078 and 16552
Nifty resistance levels for next week are 5414 and 5503
Sensex resistance levels for next week are 17880 and 18156