Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders

Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders
Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders
Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders 


 INTRADAY STOCK OPTION TIPS : TODAY

LIC 200 CALL GIVEN AT 1.1 TARGET 2, 5 LOTS
TARGET DONE AT 2
PROFIT RS. 4500/-

BHEL 140 CALL GIVEN 2 TARGET 3, 5 LOTS
TARGET DONE AT 3
PROFIT RS. 5,000/-

RCOM 155 CALL GIVEN AT 3.5 TARGET 7, 1 LOTS
TARGET DONE AT 7
PROFIT RS. 14,000/-

SESAGOA 185 CALL GIVEN 3, TARGET 6, 2 LOTS
TARGET DONE AT 6
PROFIT RS. 12,000/-

IDEA 165 CALL GIVEN AT 3, TARGET 4, 2 LOTS
TARGET DONE AT 4
PROFIT RS. 4,000/-

HINDALCO 115 CALL GIVEN AT 1, TARGET 2.5, 3 LOTS
TARGET DONE AT 2.5
PROFIT RS. 18,000/-

Does your financial adviser empathise?

Even if the initial outcomes on your investments are not as expected, you will continue to follow your financial adviser, if he shows empathy.

I recently had to consult a doctor, during which I failed to draw any empathy from him . Now, you may wonder if empathy is important at all in this context. After all, you are expected to follow your doctor’s advice and take the prescribed drugs. 

It turns out that empathy could be important not only for doctors, but also for a financial adviser, and anyone else from whom you may seek highest level of professional advice. 

Let me first clarify that I am referring to cognitive empathy and not affective empathy. 

The former refers to my adviser understanding how I feel while the latter refers to my adviser feeling the same way as I do. You should expect your financial advisers to have cognitive empathy, to understand your anxiety about a financial decision and allay such negative emotion.

 

Professional advice

Empathy is an essential part of professional advice, especially when two factors are present — delayed feedback and uncertain outcome. Take investments. Your financial adviser may recommend an equity mutual fund to achieve your professional advice. The suggested outcome is uncertain in that the fund can generate negative returns. Or the fund can generate positive returns and yet fall short of your desired objective. The feedback on your financial adviser's decision is not immediate. At best, your adviser may rebalance your portfolio annually to align with your objective. It is no different with health care. 

Your doctor may treat you for, say, persistent headache with certain prescription drugs, which may cause unintentional side-effects. Now, the doctor is not always sure about the side-effects or for that matter, the reasons for the side-effects. 

What does this all mean? When you have delayed feedback and uncertain outcomes, luck plays an important role in the process. In such cases, empathy becomes very important. Suppose the investment does not generate the required returns. Or suppose you do not respond as expected to your doctor’s treatment. You may be tempted to abandon the advice and, perhaps, make yourself worse-off. But if the doctor or the financial adviser shows empathy, you are bound to listen to her and importantly, not act in haste if the outcome is not as expected. 

This is because empathy has a positive neurophysiological response. Your brain releases oxytocin, a hormone that plays an active part in your social behaviour. Now, you are likely to release oxytocin when your adviser shows empathy towards you. And that could lead you to trust your adviser. 

The upside’s that you are more likely to follow your doctor’s advice or your financial adviser’s recommendations even if the initial outcomes are not as expected. 

(The author is the founder of Navera Consulting. Feedback may be sent to knowledge@thehindu.co.in)

(This article was published on September 14, 2013)

Trade and economic issues to dominate Manmohan-Obama meeting

Trade and economic issues to dominate Manmohan-Obama meeting

Apart from this, the issue of patents, especially in the pharmaceutical sector, is likely to be raised by the US officials during these meetings.

Increased US aggression on the issue of ``unfair trade practices’’ by India and concerns over India’s Intellectual Property Rights (IPR) regime, local content restrictions and the 26 per cent limit on foreign direct investment (FDI) in defence are likely to figure prominently in the talks between Prime Minister Manmohan Singh and President Barack Obama, concerning trade and economic engagement. 

The US administration has repeatedly pointed to the adoption of ‘’unfair trade practices’’ by India, regarding which the US International Trade Commission (USITC) launched investigations and is likely to release its report by November 2014. Dr. Singh will be visiting the US from September 25 to 30. 

Apart from this, the issue of patents, especially in the pharmaceutical sector, is likely to be raised by the US officials during these meetings. India is of the view that the country’s Patents Act is a comprehensive one and is being enforced rigorously. Dr. Singh is likely to reiterate that India’s IPR regime is based on comprehensive laws, detailed rules to back them up, and strong enforcement mechanisms, including for dispute resolution. 

‘’US nationals and corporations had got the highest share (about 20 to 30 per cent) of all patents granted in India. The award of patents is a transparent legal process, with decisions and processes subject to legal scrutiny,’’ a senior Commerce Ministry official remarked. 

The Prime Minister is also likely to take up India’s concerns over the proposed US Immigration Reforms Bill, with President Obama, pointing out that it would adversely impact domestic IT industry. 

During his meeting with Mr. Obama, the Prime Minister is likely to point out the recent spate of reforms undertaken by the country in the financial sector as well as the liberalisation of foreign direct investment (FDI) in multi brand retail and defence. This would allow US retail majors and defence manufacturing companies to set up base in India to tap the huge investment potential. 

In July 2012, President Obama had expressed concern over restrictions on FDI inflow in too many sectors in India. He had also stated that US companies had been finding it too hard to invest in India.

Stock futures flat before data that could clarify Fed's plans

By Rodrigo Campos

NEW YORK | Tue Sep 24, 2013 8:21am EDT
 

(Reuters) - U.S. stock index futures were little changed on Tuesday before housing and consumer data that could help investors interpret Federal Reserve officials' comments about the short-term plans for the Fed's stimulus program.


New York Fed President William Dudley said Tuesday he "certainly wouldn't want to rule out" a reduction in the U.S. central bank's bond-buying program later this year.

The Fed's $85 billion a month in asset purchases has been instrumental for a rally that has lifted the S&P 500 .SPX nearly 20 percent so far this year. Bernanke's plan was to reduce quantitative easing later this year and to end it by about mid-2014 as long as the economy keeps improving as expected.

"There are conflicting reports on the internal discussion in the Fed," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"There's a lot of information and that makes the Fed look confused," she said.

Standard & Poor's releases its S&P/Case Shiller Home Price Index for July at 9 a.m. (1300 GMT) and the Conference Board releases its September consumer confidence index at 10 a.m. (1400 GMT).

The data, said Fort Pitt's Forrest, is key for market participants to gauge if housing demand will continue to fuel the economic pickup as it did in the first half of the year, even as mortgage rates have jumped.

S&P 500 futures fell 2 points and were little changed in terms of fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 7 points, and Nasdaq 100 futures added 2 points.

Facebook (FB.O) shares rose 2 percent to $48.11 in premarket trading after the South China Morning Post reported the online social media giant and other websites deemed sensitive and blocked by the Chinese government will be accessible in a planned free-trade zone in Shanghai.

Shares of Applied Materials (AMAT.O) rose 4.4 percent in premarket trading after the chipmaker and Tokyo Electron Ltd (8035.T) said they will merge in an all-stock deal, creating a $29 billion company.

German business morale improved for a fifth consecutive month in September in a further sign that Europe's largest economy is staging a recovery, although the data came in slightly below expectations.


(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama and Kenneth Barry)

FIIs gung-ho on exports, consumption themes, prefer IT and pharma

By ET Bureau | 24 Sep, 2013, 09.15AM IST

 

MUMBAI: Foreign institutional investors (FII) are attracted by the twin themes of exports and domestic consumption. An ET poll of 12 top foreign money managers indicates their preference for IT  and
 pharma firms, whose fortunes have been boosted by the cheaper rupee, as well as consumer goods and retail companies, despite the rich valuations in both the sectors.


The possible election of Narendra Modi as prime minister in the 2014 elections will have a positive impact on the economy and markets, 64% of the poll participants said. Modi, the chief minister of Gujarat, is the BJP's prime ministerial candidate for the 2014 elections.
All those polled believe the US Fed will start tapering from December. A majority of those polled say the tapering, worsening of non-performing accounts (NPA), a rise in the current account deficit (CAD) and sovereign downgrade are the biggest threats for FII flows.
Most participants expect the RBI not to cut interest rates at least till December because of high inflation. Close to 55% of the poll participants said that inflation would remain between 6% and 6.5% in FY14, and 70% said the repo rate would continue at 7.5%.
The only relief to the Indian economy, according to the FIIs polled, was the stabilising rupee. A tad less than half expect the Indian currency to stabilise at 60 against the dollar by December. If this were to happen, FIIs would be more positive on India and they may increase their stake in Indian companies.

RBI now against 0% EMIs for consumer goods, banks withdraw finance schemes; festive sales likely to be hit

RBI now against 0% EMIs for consumer goods, banks withdraw finance schemes; festive sales likely to be hit

KOLKATA: Planning to buy a phone or a television during the upcoming festive season? Don't bet on paying off the bill in interest-free instalments. These schemes are being withdrawn as the Reserve Bank has frowned on the practice of banks tempting consumers to make big-ticket purchases by offering to break up credit card payments into EMIs.





 
RBI feels consumers have been fooled by zero per cent or discounted interest rate schemes into believing that bank funding comes for free, and wants them stopped. Consumer durable manufacturers offer the zero per cent facility mostly on high-value products such as smartphones, LED TVs and premium home appliances.

"Such schemes only serve the purpose of (luring) and exploiting vulnerable customers," the central bank said in a confidential note to banks on September 17. "These were found to be impinging on customer protection, accounting integrity and thereby the fair market practices which banks should epitomise."

ET has a copy of the note. There was no response from the central bank to queries regarding the note.

Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders

Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders
Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders
Call Option Tips-Put Option Tips-Stock Option Tips-Nifty Option Tips-Call and Put Tips-Option Traders 

 

Analysis: Fed's underlying message a bad signal for U.S. profit growth

 

By Caroline Valetkevitch

NEW YORK | Mon Sep 23, 2013 1:10am EDT
 

(Reuters) - The euphoria with which investors in the U.S. stock market greeted the Federal Reserve's decision to stick with its easy-money policy has begun to evaporate, as the message the Fed was sending about a less-than-stellar economy sinks in.

An economy still in need of a safety net may be too weak to produce robust earnings growth, meaning that the Standard & Poor's 500 valuation, now at its most expensive on a price-to-earnings basis since 2010, becomes harder to justify.

The Standard & Poor's 500 is up 20 percent so far this year and hit new highs last week, boosting the index's forward p/e ratio to 14.94, its highest since early 2010. At that time, though, company earnings were improving more rapidly than now as business activity rebounded from the depths of the recession and financial crisis in 2007-2009.

Profit growth for 2013 is expected at about 6 percent, a far cry from the 31 percent achieved in 2010. That undermines the case for further gains in stock prices and has led some investors to consider reducing their earnings forecasts.

"The Fed's no-confidence vote in the economy really causes us to revisit our profit estimates for the rest of this year and next," said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York. "I would not be surprised to see consensus numbers get adjusted."

Investors are more likely to be prepared to pay higher prices for shares if they think earnings are expected to rise, so if current profit expectations fail to materialize, valuations could be stretched.

Markets had expected the Fed last Wednesday to cut back on its $85 billion a month in bond purchases, which have been behind its efforts to spur economic growth, and have injected money into the financial system. Instead, the Fed kept its stimulus in place and cut its projections for economic growth in 2013 and 2014.

Despite the weaker forecast, stocks jumped, but on Thursday and Friday the markets largely gave back the gains, partly amid fears of a government shutdown or debt default because of political gridlock in Washington but also because of concerns that prices had got over-extended.

Now, investors' focus in the next few weeks is going to be on both Congress and third-quarter results, both of which will help show whether the Fed's prudence was warranted.

If stocks hold up it may be because of a rally in the bond market since the Fed announcement makes Treasuries less attractive. The 10-year Treasury yield rose to around 3 percent in recent weeks, bringing in asset allocation investors who found that yield more appealing. Now, it is back down to 2.74 percent.

PROFIT CYCLE WELL OFF PEAKS
Growth has slowed substantially since the peaks of this earnings cycle. For the second quarter, earnings increased 4.8 percent, the 15th straight quarter of S&P 500 profit growth.

The S&P 500's big gains in 2013 have caused the forward price-to-earnings ratio to rise to 14.94 from 12.7 at the end of 2012. Multiple expansion has come as investors bet on improved growth that would in turn allow the Fed to reduce its extraordinary support for the U.S. economy.

That ratio is about the same as the 14.8 level it was at the start of 2010, when year-over-year profit growth was much higher.

While that's not considered expensive by historical standards - the average forward p/e is estimated at about 17 by S&P - it does fuel concerns about valuations. Earnings growth is now expected at 6.3 percent for 2013, and estimates for the year have fallen about one percentage point in the past 90 days, according to Thomson Reuters StarMine data. The concern is that earnings growth will continue to slip as the economy's path remains mediocre.

"If the Fed needs to continue to keep their foot on the gas pedal, it implies that we're not gaining the momentum that current stock prices have priced into their valuations," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

The sunny outlook has also meant that the best performing stocks have been growth-oriented names. After a weak August, companies with already high p/e ratios and high short interest rebounded, and have outperformed for the balance of the year.
Netflix, the S&P's best performer with a 239 percent gain for the year so far, has a very high forward p/e ratio of about 106, according to Reuters data. Electric car maker Tesla, up more than 400 percent for the year so far and a long-time favorite of short-sellers, is trading at about 112 times earnings forecasts.
In a sign of how frothy the market may have become, shares of cybersecurity company FireEye Inc and digital advertising company Rocket Fuel Inc, soared on their stock trading debuts on Friday, both more than doubling in price at one stage.

"There's not a lot of room for error," Meckler said.

Companies have also become less able to rely on cost cutting to boost their bottom lines, with sales growth anemic. 

Year-over-year revenue growth has ranged from a decline of 0.8 percent to a gain of 3.6 percent over the past four quarters, according to Thomson Reuters data.

Third-quarter earnings are expected to have increased 4.8 percent, while fourth-quarter growth is estimated at 11.1 percent, according to Thomson Reuters data. But such estimates can be quickly pared back - third-quarter growth was estimated at 8.5 percent on July 1, less than three months ago.

If earnings estimates continue to fall, that's going to raise the market's p/e, or force investors to pull stocks lower in response to what they see as overinflated valuations.

"Either the continued policies will lead to an actual pickup in growth which would justify these prices, or I think the market will begin to come down from these levels," Meckler said.

(Reporting by Caroline Valetkevitch; Editing by Martin Howell and James Dalgleish)