Equity

Video: Slump Sales and Safeguards

CNBC TV-18 has an interesting two part discussion on slump sales. They run through the three fundamental ideas I've had recently - Indo Asian Fusegear (sold chunk to Legrand), SmarkLink (sold 90% - they say - to Schneider) and Piramal Healthcare (sold approx 50% to Abbott).

Tech Talk: Chart Patterns of Interesting Stocks

We go through the five stocks we discussed last week and Deepak introduces four new stocks in a quick technical take. None of these are large caps, and this video is for education only, not advice.

(7 Min, Video)

Recap

Gravita: Exited with a stop loss hit after the stock went below the 20 day average.

What is VWAP?

Watch Deepak explain the concept of the Volume Weighted Average Price (VWAP) using an example. And in the usual style in MarketVision, we don't give you just the theory - a few practical applications where VWAP is commonly used and should be noted.

Would love your comments!

HDFC Bank EPS up 26%, Stock will split 5:1

HDFC Bank announced results for Q4 FY 2011 (March 2011) with the Year-end EPS at close to Rs. 84, which is about 26% higher than last year. The quarter itself saw a growth of 30% on EPS.

HDFC Bank Results

Strong EPS growth continues and even through the downturn the stock kept EPS going well. Even the Trailing 12 month (TTM) EPS growth has been spectacular.

Two New Short Takes

Two new short takes have been added, and in case you were only looking at the blog, here's the list:

Choose between Liquid and Ultra Short Term Funds?

A reader asked how he should decide between buying a Liquid fund or an Ultra Short Term fund. Deepak takes you through the differences, in a continuation from the Lesson on Liquid and Ultra Short Term Funds.

Five Stocks in Five Minutes: April 13, 2011

Deepak takes you through five stocks he's long right now: Gravita, Camlin, Gujarat Fluoro, REC and Firstlease.

Purely technical - just charts of price and volume.

(5 min)

Ramki on DLF's Sudden Rise, and My View

In a recent Conversations piece, I spoke with Ramki about a few stocks, and in them was DLF. The suggestion was to buy DLF only if it dipped to 185, but since then the stock tapered down and has rallied like crazy. Ramki has mentioned this on his blog -- and kudos to the fact that he's admitted that the stock didn't quite follow through!

A few days back, during my interview with Deepak Shenoy, I had suggested that one should wait for at least 185 to buy the stock as I continued to be bearish for that stock (it was trading around 210 at that time, in late Feb). I returned from my holidays and looked at the chart, and wow, this stock has rallied some 30% from a low of 208.50. So what happened there?

Put mildly, I was caught on the wrong foot. Let this serve as a reminder to all that no technique can assure a positive outcome, no matter how (supposedly) clever the analyst is! So how can one guard against serious losses, then? First of all, understand whether the recommendation is to BUY or SELL. When I speak of a preferred buy level, it is not a recommendation to sell. A buy or sell recommendation will come after considering various factors. It has to be a low-risk trade either way, but always bear in mind that there is still ‘some’ risk. To survive in the market, we need to ensure that the risk we take is affordable. So we decide both our position size and the stop-loss level when initiating a trade.

If you ask me what one should do in DLF now, I will probably be loathe to give you a straight answer, because the signals are still conflicting. Why chase something that already went wrong?

This is deeply humbling and one of the reasons why I keep stop losses is the fact that sometimes stocks misbehave. You can't obviously over analyze the stock to find reasons, but the entire market is up and has taken DLF with it.

DLF - After the Rise

In a Conversation with Ramki, we had spoken of the stock being bearish and that a good buy point was 185. The stock has since rallied to 275 - what should you do now?

Deepak takes you through what could have been a stop loss for the past trade, and what you could do now.

(6 min)

Indian Private Banks - Most Expensive in Asia

A CLSA report I got by email recently had this graph which stunned me:

CLSA P/E by country

 

What is "Short Delivery"?

What is "Short Delivery" and Auctions on the NSE?

Can you buy a share and still not get it, two days after you purchase? And if you sell it without actually having it, what happens?

Deepak Shenoy takes you through:

  • The concept of short delivery
  • Auctions on the NSE
  • Why you get your shares four days later instead of just two
  • How you might be penalized for selling what you don't own
  • Why this is important even if you are a "Buy Today, Sell Tomorrow" (BTST) trader.

(7 min)