How To Invest In Stock Market Wisely – Basic Steps

Strategic planning helps to enrich your portfolio but you might be wondering how to invest in Indian stock market wisely. You should remember that if you aim to make profit, you will have to pursue the share market seriously doing intensive research and devoting your time. Actually, this is far more necessary for good investment practices instead of a large amount of money.

You need money. For that you require steady source of income. Necessarily, it doesn’t need to be a large income; however it should serve as a fall back option. So, save well before you can invest wisely. If you want your investments to prosper, extensive study and research is essential. Follow national and international news; stick to reputed journals, TV channels and newspapers so that you aren’t misguided. Stock investment is a continuous learning process. As you manage the share market with international events, you will be naturally growing to have an insight into future trends. It’s also recommended that you read couple of books for understanding how exactly the share market operates.

Once you are well informed, you need to open a demat account. If you have little money, you can also consider direct action plan. In this, the fractional share of stock can be purchased. Or else you can opt for a discount broking firm. If you want a better deal, consult an agent personally. Choose your stock well and if they perform well, keep holding on to them. Nonetheless, you need to sell the shares at a correct time; or else it is just a piece of paper. Judge how far the prices are likely to increase and sell the profit. You should always reinvest at least a part of your dividends so that your portfolio increases gradually.

Easy Steps to Start Investing in Indian Share Market

Investing in knowledge – As we always remind everyone, take time to study by watching latest share market news, reading books and attending seminars. Research. Understand how it works and decide whether the Indian share market would best fit your purpose.

Choosing a stock broking firm – You need a stockbroker for facilitating all your transactions in the market. You can select from online or conventional stock broking companies. If you did your research, you will know which broker will be best for you.

Opening an account – Opening an account with the stock broking company is as easy as opening a bank account. You just have to fill out the necessary forms, submit the required documents and fund your account.

Placing an order – Once you have chosen a company, it is time to purchase! Just contact your stockbroker to facilitate your purchase. The amount you are willing to invest depends on you.

Monitoring your investments – Keep yourself informed about the shares you purchased. It is wise to research online or read the business section of newspaper to see if the company is doing well or not.

That is it! Just follow these simple steps to invest in the Indian share market and profit from its growth. Keep in mind, TIME is your most valuable asset when it comes to investing. START NOW so your money can start growing too!

Nifty likely to scale new highs on strong fund flows

Betting in the options market indicates that the broader S&P CNX Nifty is poised to scale new highs soon, as global fund flows accelerate to get higher returns.

Maximum open interest in Call options has been in 6500 Calls, which has added more than 7.2 million units, also suggests that it could be a resistance level. The Nifty’s all-time high was 6357.10 on January 8, 2008.

“We expect the Nifty to trade in the range of 6200-6450 in the short term, with futures maintaining a premium of 15-20 points consistently ,” said Manoj Murlidharan, AVP-derivatives , IIFL PReMIA.

Trading has been in the range of the 6,000-6200 level and may move up even as those sceptical of sharp gains raise their bets. Over 4.5 million units in open interest were built in the past one week at 6300 Put options. This is despite options concentration in Puts continues to be highest at 6000 levels, adding around 7.3 million units in open interest.

“On Tuesday, 6300 Put options added more than 1.59 million units in open interest, which is reasonable enough to suggest that the trading range is expected to move higher ,” said Shshank Mehta, derivatives strategist, Nirmal Bang. If the Nifty manages to breach 6325 on the upside, 6300 will act as a very strong support zone, he said.

Foreign institutional investors have been buying options-based hedging in at-the-money Puts (equal to current market price) to prevent losses in their physical holdings of Nifty constituents.

Analysts say that this strategy is expected to give handsome returns to institutional investors as the delta of 6300 Put is currently around 0.7. This indicates that for every 100-point fall in the Nifty, the premium of the options will increase by 70 points.

Implied volatilities are expected to decline in the absence of any major significant development. The India–VIX , a traders measure of immediate volatility, closed at 18.75%, down 4.39% from a day earlier. It has been moving in lower end of the range at 19-23 .