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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Saturday, October 04, 2008

Nifty’s level now and in 2004

Friends,

I have to tell some thing already told in other words. It is about Nifty’s level now and in 2004 when it was 2000 (Jan 04). At 2000 in 2004 the PE used to be around 20 and therefore the EPS worked out to 100. Now we know that during intervening five years there has been average compounded growth of 25 pc/year since then, it would therefore work out to be over 300 EPS now for the Nifty companies universe. Discounting 3820 Nifty ( 3rd Oct 08) at 300 EPS , the PE would be around 13 . This pretty reasonable even in wake of some slow down fears. The presently offical PE for nifty is 16 and is pretty close to our working as there are three month to go before the year is out.

In light of above, it is not for no reason that the Nifty has rebounded four times after touching around/below 3800 level in last four months (latest on 3rd Oct 08).

It is a good point for taking risk. The tranche of Rs 20,000 crs is going to be released in favour banks against farmer’s loan waiver. Further, the RBI may show some efforts at cheaper money availability as the corporates are experiencing fund crunch. The US govt has demonstrated that the monetary crunch should not make jobs disappear, inflation or no inflation. The historic bailout bill was passed with this in mind and ‘main street’ has been spared woes on account of ‘wall street demeaners’. Also, Russia has released one trillion Roubles in the system for this very purpose.

HariOm,
Krsna Khandelwal

BIRDINFO Stock Rx - A prescription for stock market
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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.