Nifty Flat

The Nifty was quiet in opening trade today, with a positive bias. Asian markets too were trading with marginal gains. Metal, oil & gas and select financials were on buyers' radar while ADAG, realty and private bank stocks were under pressure.

Tata Steel gained 2% after 1.5% fall in initial trade, as the company's Q3 consolidated net profit was up by 122% at Rs 1,003 crore on year-on-year basis but EBITDA margin was at 11.6% as against 13% in same quarter the last year. Raw material costs increased at Rs 10,270 crore versus Rs 8,030 crore, YoY.

Among frontliners, DLF, SAIL, Reliance Capital, Reliance Power, Reliance Infrastructure, IDFC, Tata Motors, Axis Bank, HDFC and ICICI Bank were witnessing selling pressure.

However, L&T, Tata Power, BPCL, Infosys, TCS, ITC and HUL were supporting the markets.

At 9:17 hours IST, the 30-share BSE Sensex was trading at 18,314, up 40 points and the 50-share NSE Nifty rose 8 points to 5,489.

However, the Nifty February futures were trading at 9 points discount. The CNX Midcap fell just 10 points at 7,730.

Midcap & Smallcap space:

Hexaware shot up 5% as its adjusted net profit increased 135.7% at Rs 39.6 crore in fourth quarter of CY10 versus Rs 16.8 crore in previous quarter.

MIC Electronics and Thomas Cook were up 5% each. Escorts was up 2.5%.

M&M Financial up 1% as the compnay launched QIP worth Rs 426 crore, according to sources.

Intraday Trading

What Is Intraday Trading?
Intraday trading, often just "day trading" buy and sell financial products on the same day practice. It is often mentioned in relation to the stock market, but you can make many other types of day trading the financial vehicles. This is a high energy field, which is quite vulnerable, but also offers significant profit opportunities. Successful day trader can make a life good and consistent.

First of all, every morning the Indian always SGX Nifty on Singapore Stock Exchange on news of the investors will be opened before Indian market for trading business. SGX Nifty is trading at what level the Indian stock market giving a likely development if they are open for business on some information.

Secondly, the technical analysts to watch and to hear their views on the Nifty intraday market and finally, if the financial advisors through telephone or Internet or SMS alerts are checking with your spare time may be. Nifty movement to the whole thing sums up how important markets. Intraday Trading Strategies India.

Choose your Stocks
Intraday trading can be done only after you choose your stocks carefully. It is important that you follow the basic rules of day trading while choosing your stocks. As a beginner, you should avoid day trading in risky stocks. You can concentrate on stocks of sectors such as banking, automobiles or information technology, as these stocks have the capacity to bounce back even after a steep fall. Many knowledgeable people will advise you to stay away from penny stocks for day trading, since a lot of volatility is seen in their price movements without any fundamental reasons.

Book Profits in Time
We enter the stock market to make profits and not to lose our money. So, when you think that you are getting good returns in the day's trade, you should immediately quit your position. Don't have over ambitious targets for your stocks and be aware of the reality for your own benefit.

Importance of Stop Losses
Stop losses are an important part of intraday trading. Stop losses help you to protect any unwanted losses in the day trading procedure. They are the best ways to book profits at the right levels and emerge as a winner even in fluctuating stock markets. For a trader going short on weak stocks, the stop loss point would be above his purchase price.

Nifty Down after 2-day rally

The benchmark Nifty was flat with a positive bias in opening trade amid a choppy trade. The index was consolidating at around previous closing value after a rally seen in previous two days.

Equities are likely to be the best performing asset in the coming decade, says Ridham Desai of Morgan Stanley. "We expect the Sensex to deliver annual returns of 15.3% over the next 10 years. Our view is that the risk-reward ratio for Indian equities will make it the most attractive asset class in the coming decade. We believe that Indian equity returns are likely to be less volatile in the coming decade than in the previous 10 years," he explained.

Among frontliners, ACC, Ambuja Cements, Tata Motors, Bajaj Auto, GAIL, Tata Steel (ahead of numbers), L&T and BHEL were on buyers' radar.

However, Reliance Communications, M&M, HDFC, Jaiprakash Associates, Dr Reddy's Labs, ONGC, Infosys, TCS, Bharti Airtel and Reliance Communications were witnessing selling pressure.

At 9:17 hours IST, the 30-share BSE Sensex was trading at 18,266, up 65 points and the 50-share NSE Nifty rose 14 points to 5,470.

The CNX Midcap went up 11 points to 7,727 and the Nifty Junior gained 24 points at 10,823. About 638 shares advanced as against 253 shares declined on National Stock Exchange.

Midcap & Smallcap space:

Results reaction: Amtek Auto was up 3% while Ispat, Jubilant Life, Deccan Chronicle and Unitech lost 2-4%.

Escorts rose 3% and TVS Motors was up 0.8%. IOB gained 5%.

Reliance Broadcast and Videocon Industries were up 2.5% each.

However, Sun TV lost 3%. HDIL, Reliance Capital and Ashok Leyland fell 0.5%.

Share Market Tips

What is Nifty and how trading ?

1. Nifty (S&P CNX Nifty) Sensex on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), the Indian stock market index
2. Trading is done on Nifty contract which is also called as Nifty future derivative. Nifty derivative movement is based on Nifty index.
3. Nifty Lot Size - Nifty derivative consist of a lot of 50 quantities of Nifty. So if you want to buy Nifty contract then you have to buy at least one lot. The trading in Nifty contract is done in lots. Small traders can even buy Mini lot of Nifty contract which consist of 20 quantities of Nifty.
4. Nifty Expiry - The Nifty derivative expires every last Thursday of the month. In India we have three month future derivatives for trading. For example - In the month of October, we have October, November and December month Nifty derivative for trading. Current month derivative will have more liquidity (more volumes) as compared to other two months derivatives. A new contract is introduced on the trading day following the expiry of the current month contract. If the last Thursday is a holiday then contracts expire on the previous trading day.
5. Based on your trading position your account will get adjusted on daily basis as per the closing price of Nifty derivative contract. For Example - If you buy one lot of Nifty at 4950 and Nifty closes at 4500 then Rs 50 as profit (total profit will become 50 qty x Rs 50 = Rs 2500) will get credited in your account. On the other hand if Nifty went down Rs 50 then Rs 2500 will be debited from your account. If you do not have balance in your trading account then very next day your position will be squared off by your broker. Some brokers provides some extra days to transfer money in your trading account.
6. If you buy and sell on a same day then the profit and loss will be adjusted in your trading account accordingly.
7. Trader has to square off the positions before or on expiry. If you does not square off then the contract expires on the expiry date and the money gets adjusted in your account.
8. You can buy and sell Nifty derivative contract in your trading account/terminal. Separate account is not required.

Advantages of trading in Nifty

•  Trader get margin to trade on Nifty.
•  Small traders can even buy Mini lot of Nifty contract which consist of 20 quantities of  Nifty. To buy one lot of Nifty mini lot, you need approximately Rs 13,000.
• You can do day trading (Intraday trading) as well as carry forward (hold your nifty positions) till the expiry period of your contract (minimum one month expiry and maximum three month expiry)
• You can trade both sides of the Nifty means if you feel market is going up then you can buy Nifty contract and if you feel market is going to fall then you can short sell Nifty and later buy it to cover up your positions.
• Very Low brokerage rates. Low brokerage rates increases your profit percentage. We are offering 0.03% for buying and 0.03% for selling.
• High liquidity - Very high volumes are traded in Nifty future contract which will make the trader to square off at any time and at any price.

Risk Involved in Nifty trading

Trading in Nifty future is a risky, heavy loss can occur. Basically trading involves big risk either you trade in Nifty future or in any other future contract or in stocks. Trading requires lot of experience and market knowledge. Investing and trading are two different factors in share market. Investing is not as risky as trading.

Buy Mahindra & Mahindra

Buy Mahindra & Mahindra Ltd CMP: Rs. 665 Target Price: Rs. 775

Mahindra & Mahindra Ltd is the flagship company of the Mahindra Group, present in diverse business areas. It is the leader in UVs (56%) and tractors (41%), and is growing significantly in financial services, tourism, infrastructure development, trade and logistics through its various subsidiaries and associate company. Besides thriving in UV and tractor businesses, the company has a sizeable market share in the LCV market (~30%), three wheelers (7%) and two wheelers (~5%). To venture into the MHCV space, M&M would be launching trucks ranging between 16MT and 49MT, in collaboration with Navistar International USA Inc.

Mahindra & Mahindra dominates the domestic tractors market, commanding 41% market share. Three key structural factors—higher farm product prices, firmer labour wages (notably NREGA), and greater commercial usage of tractors—have significantly increased rural incomes and brought smaller farmers (owning <4 hectares of land) into the "tractor purchasing" ambit. These factors are likely to drive long-term tractor demand, which Mahindra & Mahindra (M&M) is well-positioned to capitalize on.