As with nature's five elements - namely earth, water, fire, air and sky - we look at five economic and financial aspects based on company's quarterly results to form our valuation. For this reason this technique is called the Pancha Tattva Stock Teknik. Each valuation is given in terms of a delta change from neutral value of 1000 points. Higher the value the better the stock is. 

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Tuesday, October 07, 2008

Market Matrix - May be there is some method in madness

Friends,

The t/o at NSE was at a low point for the fortnight at Rs 47 K crs (derivative) and Rs 10 K crs (cash). FIIs have pulled out Rs 39 K crs from market during 2008 so far. The FII t/o is on the higher side, meaning thereby that they have greater comparative share in trading volumes for the day. At a time of lower rates its implication is much greater. May be there is some method in madness.

Surprisingly, when the liquidity crunch is talked about the call rates have come down to 11 pc from high of 15 pc. Not only this the 1 year govt paper yield is now way lower at 8.10 pc. The negative rate of return for the purchaser of the dated security is now higher as the inflation is no less than 12 pc. A very stark situation is reflecting today ie there is no pocket where you could have positive returns, be it commodity futures, bullion, stocks, property or debt. Last year I had expressed my surprise at all asset classes moving up together and was certain that some tsunami type of situation will be faced by the world. I think it was due to last ditch attempt by the trapped investment bankers of US who hoped that rising prises will bring forward buyers. The reverse happened, it brought seller as usually happens. The situation is just the reverse today. All asset classes are losing values. This will not bring in new sellers but will bring in buyer. The best asset class in today's times would be, at least in India, to go for equity investment. It is any easy asset to hold, has productive use of assets, is immune to inflationary damage and gives post tax returns by way of dividend and capital gains. It has historically given best of returns too. Its cyclical behaviour makes making fortunes easy, if the entry is at low point, which is the case here. Its owner ship does not require any expenditure, its liquid enough asset and does not require redeployment of funds on maturity as is the case with debt instruments. The risk between debt and equity is only one step ahead or behind. When there is corporate failure.

HariOm,
Krsna Khandelwal

BIRDINFO Stock Rx - A prescription for stock market
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at 9:02 AM

1 comments:

Anonymous said...

""It is any easy asset to hold, has productive use of assets, is immune to inflationary damage and gives post tax returns by way of dividend and capital gains. ""

Really?

immune to inflationary demages?

Kuchh zyaada nahi ho gaya?

7:59 AM

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BIRDINFO Stock Rx
India
We are India based equity research group and BIRD stands for Business Information Research Dialectics. We have developed a unique system to do analysis of stock markets. The regular recommendations for stocks and industry sectors are available on the site. We also advice our customers for stock market investment based on our Pancha Tattva Analysis System tested for more than a decade. We provide paid advice for one year @ INR 1000 per stock. The advice at the time of volatility and quarterly result announcement by companies is extremely useful for taking Buy or Sell action. You have to make advance payment through our HDFC Bank Account to avail our services. Please send your request via E-mail. The Pancha Tattva analysis (study based on five basic parameters) of a portfolio can also be done on payment basis and investors are requested to contact via E-mail for a formal quote. The content and our recommendations are subject to disclaimer clause posted on this blog site. © Copyright 2006 BIRDINFO Stock Rx All rights reserved. We shall try to provide satisfaction on all our services. E-mail us at krsnakhandelwal@yahoo.com or birdinfo@gmail.com
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Pancha Tattava Stock Teknik - 5 dos & dont's

We give below the important points to remember for the new visitors of our site who venture out to trade/invest on the strength of Pancha Tattva Stock Teknik:

a) The Pancha Tattva (five basic elements described in Indian scriptures) points for a stock are computed at market price and indexed taking 1000 points for value neutral stock. The stock is weaker if it has points under ‘1000′ and is stronger if it has points over ‘1000′. The variation against 1000 level does not always denote the exact proportion in price strength.

b) The points and its resultant attributes are ascribed after careful derivation of certain ratios based on the most recent quarterly results, management strength, industry prospects, political climate, price history, interest rate scene etc. It actually takes care of every aspect effecting the price. This point level along with advice is posted on site after quarterly results for some stocks.

c) The trading/investment strategy given in each case should be followed.

d) Since there are always fresh developments effecting the price, a stop loss mechanism should be followed. You may sell off half the quantity upon slide in price to the extent of 3-5% and sell entire quantity upon 6-10% fall in price.

e) Once out of stock you should not look back at the same stock until fresh point level is given after announcement of next quarterly result. In case some unusual movement is seen in between result period, you should not forget to ask for fresh points level computation and advice. This should be made use of as much as possible.