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Stock Market Terms to Become Successful Trader And Fundamental Market Report

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Sensex ends below 27000; Nifty ends below 8150.

Markets fall for the second consecutive day as weak monsoon forecast raised fears of draught while the delay in further rate cuts and slow pace of recovery in the economy dampened sentiments.  Market again falls more than 1.5 percent today, Sensex ends below 27000 mark at 26837 tanks 351 points while Nifty falls 101 points to end at 8135.

HEADLINES FOR THE DAY:

  • JP Associates tanks 20% today deny repayment default rumors.
  • Adani Enterprises tanks 83 percent on news of demerger.
  • Emami gains in an otherwise market with acquisition plans.
  • Shares of Nestle plunged after Delhi govt action against Maggi.
  • ALL index closed in a red zone except IT index; Infosys gains.
  • ITC falls as stock turns ex-dividend today.
  • APLLTD (Alembic Pharma) hits fresh high on the back of huge trading volumes.

KEY STOCKS FOR THE DAY:

  • FMCG shares like HUL, ITC falls on concerns over weak monsoons as it will impact the rural economy leading to lower volume growth.
  • Financial shares dip after the cautious stance by the RBI (Reserve Bank of India) which further indicated that the rate cuts could be delayed.
  • Realty index dips over 6% on concerns of rising inventory levels while high debt levels of some companies also weighed on the sector; Unitech falls 41 percent.
  • Coal India gains as a company and its subsidiaries secured 98% of targeted production for the month Of May at 40.97 million.
  • Bharti Airtel moved higher in an otherwise market as the company approached investors for issuance of 10-year US dollar bonds.
  • SBI (State Bank of India) falls as much as after the bank announced reduction with effect from 08 June 2015 in its base rate by 15 basis points to 9.7 percent from 9.85 percent.
  • ITC dips for the second consecutive day on reports of a likely ban on the sale of loose cigarettes in Maharashtra.

SOME STOCKS FOR NEXT TRADING SESSION:

  • Take EQ is trading near around its important support of 96.50, more selling could be seen in coming trading session. Sell below 96.50 targets 95.50/954.60/93.60 maintain SL of 94.50.
  • FRL falls and trading below 100 DMA, more selling pressure could be seen in the next trading session. Sell below 111.40 targets 111.30/109.20/108.10 maintain SL of 112.60.

GLOBAL MARKET:

  • European shares moved higher after the release of upbeat German and French service sector data and as hopes for progress on the Greek debt front supported.
  • Asian shares dip on mixed regional data, including upbeat Gross domestic Product (GDP) in Australia and as investors looked ahead for new about Greece’s talks with creditors to resolve a crisis in sovereign debt payments.

Stock Market Terms

There are many different kinds of trading terms hanging around on economic websites that various traders do not strictly recognize, so I am showing some basic terms like as stop loss, option, stock and Stock Tips which are very beneficial to all traders.  Let’s concentrate on the basic trading terms.

1. Buy – It represents a procedure in which trader is buying stocks. When you want for the price will increase then you buy the stock. There is no need to obtain a stock certificate in the mail. Your broker maintains your all trading records

2. Sell – It represents a procedure in which stock trader is selling stock. When you want for the price will go down, and then the trader sells the stock. There is no need to maintain a certificate with new technologies and brokers maintain all the records electronically.

3. Short sell explains that the trader is to sell and do not currently hold shares. This is the parallel process as selling a stock apart from you have no shares. You need to borrow the shares from your broker.

4. Buy to cover denoted that you are very near to your short position by purchasing the shares.  When you sell the share at very high price then you will get huge profits and purchase them back at a minor price.

5. Revenues are basically the money obtained by a company when they process their product or services for selling Constant revenue increase denote a bullish sign for a company, as companies desire enough profits to pay cost and then a great progress in their business.

6. Profits/Losses are the positive or negative achieve from the process after operating cost. If trader applies bid for particular shares with expert Stock Future Tips and get income, then this condition called profits condition. On the other hand, if a trader bears loss of money, then this situation is called loss condition. This number is found by the given equation “revenues – cost.” For example, a company XYZ has revenues of $200,000 and operating cost of $100,000. The profit would be $100,000. If a company XYZ has profits of $100,000 but operating cost of $200,000, there would be a loss of $100,000.

7. EPS (Earnings per Share) is the earning (loss) divided by the total number of outstanding shares.  For example XYZ has a earning of $200,000 and 2,000,000 shares outstanding; this represents $0.10 profits per Share.

8. P/E ratio (Price to Earnings Ratio) is the calculation where the stock’s price divided by EPS (earnings per share). For Example Company XYZ has a share of the price of $10 when it applies to EPS for $0.50 this would show a P/E ratio of 20.  According to Tim’s opinion, this term shows how the stock is costly.

9. Moving averages are the calculation in which average of the stock price over a specified time period

10. Resistance is the position of a stock’s price where sellers frequently come out, therefore preventing a price amplifying.  This is usually an excellent time to buy if a stock finds resistance, By these resistances and support report you can make own trading tips such as Nifty Tips, Stock Tips etc.

11. Support is the position of a stock’s price where buyers come out and preventing a price for reduction. Look out below if a stock find support,

12. Breakouts/Breakdowns are movement between key resistance and support. This is the important topic of stock trading terms.

13. Market valuation is the calculation where an outstanding shares’ total number multiplies by the stock price. For example, company XYZ has 2,000,000 shares outstanding and the monetary value of a stock is $10 a share, then market valuation is about of $20,000,000 of company XYZ.

14. Shares outstanding are basically the total number of shares which provided by the company. After primary offering companies can provide or repurchase shares. For better understanding we take an example company XYZ has 500,000 shares outstanding for trading, here doesn’t show that they will always have that amount.

15. Float is the digit of shares that are freely held and accessible for trading.  The shares which held by traders do not contain this type of number. And the important thing about these kinds of shares is that a general trader can trade in shares.

16. Restricted shares are basically the shares that participate in trading and held by insiders. This kind of sharing involved in shares outstanding and not available for public investors to trade.

17. Unrestricted shares are basically the shares that participate as freely tradable in trading and these are available for public shareholders.

18 Stop loss – It is stock trading tools which are used to prevent the loss. Without apply the stop loss trader can bear huge loss. It works like as insurance.

19. Bull Market– This is opposite to the bear market. When market grows fast and stock prices increase then the market is known as Bull market.

20. Brokers– They are the intermediate person between you and exchange that helps to the trader in making trades. Most of the broker charge for their services in different ways, much broker charge on a percentage basis and some are on a monthly basis.

21. Volume: The total number of shares of stock processed during an exacting time, generally it calculated on standard daily trading volume.

22.  Bear Market: It is opposite to the bull market. When market being down position and prices of stock falling, this is called a bear market.

24. Dividend: this is a percentage of a company’s earnings, which is paid to shareholders in the different ways, sometimes company provide dividend as returns or sometimes they offer shares.

25. Exchange: An exchange is a platform where different investor with different investments performs trade. All trading process is completed with the help of this exchange. There are two most important exchanges available which are NSE (National Stock Exchange) and BSE (Bombay Stock Exchange)

26. Execution: Here execution means complete the process of barter. When a trader places an order to trading and trading process completely, this is sent for execution.

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