Trading! Finance, Economics

As % Gain is main purpose in the financial world with a common saying " High Risk, High Reward", Investors whose ' risk tolerance'   is low, dread the stock markets because of the inherent fear of losing their hard-earned money, so in order to reduce the risk of losing one's money mutual funds (also called an AMC) come into the picture. Type of Mutual Funds- Equity Fund -  An  equity fund  is a mutual  fund  that invests principally in stocks. Generally higher risk. Diversified Fund - Equity fund which invests across different industries and sectors. If one sector doesn't perform well, another sector would bail the fund out. Sector Fund -  A sector fund is an investment fund that invests solely in businesses that operate in a particular industry or sector of the economy. (example IT) Index Fund -  An Index Fund is a type of mutual fund with a portfolio constructed to match or track the components of an ...

On 24th July 2020,  RBI governor Shaktikanta Das in its 21st issue of the Financial Stability Report (FSR) warned against the cheerful stock market rally. Firstly, let's discuss what happened. In March 2020 panic selling in the stock market globally due to worldwide lockdown implement under the scenario of  Nobel Coronavirus originated from Bejing, China has dragged down the investor's wealth in a few days to over 50-60%. After that market started its V-Shape recovery leaving behind the fundamentals due to stimulus package provided across countries and surge in people investing eventually created immense liquidity stretched the market way behind. Nifty daily chart  But the financial sector remains under pressure and couldn't cope up with overall rally, the major contribution to pick up Nifty was from Reliance and IT sector. Reliance alone contributed approximately 2000 points in driving nifty so its not actually bull market rally. Nifty Bank Indices Now the question ...

ELCID INVESTMENT LIMITED Seeking huge interest of petty investors this stock has its own story. A Microcap company founded in 1981 at Mumbai. It eventually got listed over BSE. The company is making a decent profit over the years and capable of providing  Rs 10-15/- per share on an annual basis. It has a total quantity of  2 Lakh shares out of which 74.88% are held by promoters and remaining with the public. Now, this company is holding a 2.95% stake of leading paint company Asian Paints ( NSE :  ASIANPAINT ) which according to current market price means company is holding approx   4813 Crore  value in its asset column and cash reverse is also healthy. So calculating value of per  share  (i.e. - 4813 crore / 2 lakh ) is about Rs 2,40,667/- but irony is share of Elcid investment is trading at   Rs 10/-  which makes its market capitalization of just Rs 2 Crore. Due to this huge divergence in price, it attracted many investors but no s...

A stunning day was on, being a causal trader caught the channel breakout trade in the trendy stock of the Indian stock market. Yes, you are right I'm talking about RELIANCE (NSE: RIL)   a trend changer stock of the Indian Markets which gave a return of more than 100%, since March 2020 low after a deadly crash of the worldwide Capital markets. Reliance 5Min Candlestick Chart This stock is filled with immense positivity due to its future growth prospects as told by Chairman of the company Mr. Mukesh  Dhirubhai  Ambani in its 43rd AGM held on 15 July 2020. The company has already received a total of 14th investment by world-leading digital tycoons mainly Google and Facebook. I was pretty sure that once stock pick momentum it doesn't even retrace 10-20%, so the only option left was to buy at the low of small halt and hurry!... I got the exact low before next rally. Ya! I know its only 4 quantity but being 20 years old enthusiastic of engineering field it's damn good. As alrea...