NIFTY AUGUST SERIES ACTION

INDIAN STOCK MARKETS = AUGUST MONTH STUDY REPORT

TODAY F&O AUGUST SERIES CLOSING DAY LAST ONE HOUR MADE A BIG DIFFERENCE FOR BULLS TO COVER THE LOST GROUND FROM A LOW 9857 TO 9925, A SERIOUS RISE OF 68 POINTS.

THE SERIES LOST 108 POINTS AND THE BANK NIFTY LOST 625 POINTS. MONTHLY AVERAGE OF NIFTY 9934 AND BANK NIFTY MONTHLY AVERAGE 24508. BANK-NIFTY LOST MORE THAN NIFTY.

THIS MONTH THE RESULTS SEASON INFLUENCED IN STOCK ACTION AND INFY BOARD AND PROMOTORS TUSSLE CAUGHT THE HEADLINES.

PSU BANKS TOOK A SERIOUS BEATING AT LARGE DESPITE OF THEIR OVERALL IMPROVED ASSET QUALITY, DUE TO WHICH PSU BANKS ARE SUFFERING FROM RBI’s LATEST DIRECTIONS ON BAD ASSETS THOSE ARE REFERRED TO NCLT.

JULY CLOSING TO AUGUST CLOSING:

PHARMA SECTOR LOST MORE THAN THE REST- DR REDDY (-22.3%), AJANTHA PHARMA (-15%), GLENMARK (-14.9%), SUN PHARMA (-16.0%), STAR (-16.0%), BIOCON (-15.5%), LUPIN (-11.1%), CADILA (-7.5%), APOLLO HOSPITALS (-16.5%)

PSU BANKS LOST MOST BANK OF BARODA (-15%) BANK OF INDIA (-7.25%) UNION BANK (-12.5%) CANARA (-3.75%), PNB (-6.5%) AND SBI (-7.25%).

THE RISE HAS BEEN VERY DECENT IN GEMS& JEWELLARY, METAL& MINING, OIL AND ENERGY SECTOR ESPECIALLY IN OMCs DEDPITE OF NIFTY FALL.

HIND PETRO (+33.3%), BPCL (+11.3%), IOC (+23.10%),  CHENNAI PETRO (15.5%), MRPL(+14.85%), PC JEWELLARIES (+44.5%), TITAN (+16.3%), CESC(+13.10%), CONCOR (+13.3%), VEDL (+10.3%), TATA STEEL (+10.3%), JSW STEEL (+18.1%),

TATA GLOBAL (+17.5%, RELCAPITAL (+21.75%), UJJIVAN (+10.5%), LT FINANCE (24.0%), GRASIM (+11.5%), PETRONET (+10.50%),

CHINA MARKETS TUMBLED...???

China stocks plummet as investors stampede out of the market

CSI300 index falls 7.9%, Shanghai Composite Index loses 7.4%

Reuters  |  Shanghai  

June 26, 2015 Last Updated at 12:59 IST

China stocks on Friday posted some of their worst losses in seven years, as investors stampeded out of a market amid increasing signs the country's eight-month-long bull run is running out of fuel.

The key CSI300 index fell 7.9%, to 4,336.19, while theShanghai Composite Index lost 7.4%, to 4,192.87 points.

For the SSEC, it was the worst one-day loss since Jan 19. For the CSI300, the drop was the biggest since June 2008.

Stocks fell across the board, with nearly 2,000 of the roughly 2,800 listed companies in Shanghai and Shenzhen slumping by their 10% daily limit.

After the CSI300 fell through several technical support levels, then there is "no technical buying support left following a massive rally over the last year or so," investment advisor Rivkin said in a note.

Further falls in China stocks "will send ripples throughout Asian markets," Rivkin said.

A more than doubling of China's stock market over the past year had been underpinned by rapidly-expanding margin financing, monetary easing and hopes of economic restructuring, but analysts said two of the three legs are now shaky.

Regulators have been cracking down on illegal margin financing and urging brokerages to tighten rules. Many investors have also faced increasingly expensive margin calls in the past week as share prices have retreated.

Outstanding margin loans shrank for the third straight day on Wednesday to 2.2 trillion yuan ($354.35 billion), as investors slashed 61.5 billion yuan worth of leverage during the period, the latest data shows.

Jiang Chao, strategist at Haitong Securities, said that further monetary easing - long another pillar of investor optimism - is also in question.

"Recent bond market performance reflects institutional investors' view that the rate cut cycle is coming to an end," he said.

Morgan Stanley sees Shanghai's benchmark index falling between 2 and 30% from current levels over the next 12 months, citing heavy equity issuance, weak corporate earnings, demanding valuations and excessive levels of margin financing. 

http://www.business-standard.com/article/reuters/china-stocks-plummet-as-investors-stampede-out-of-the-market-115062600322_1.html

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CHINA MARKETS BUTCHERED...???

MY SIMPLE QUESTION IS WHO IGNITED THE FIRE IN THE RALLY TO A STUPENDOUS LEVELS OF 87 P/E RATIOs,...AND WHO RECOGNISED THE VALUATIONS MIS-MATCH & MISTAKES AND OFCOURSE FINALLY WHO LOST?

WINNING TRENDS IN STOCK MARKETS

“PEOPLE ARE NOT DISTURBED BY THINGS RATHER BY THE VIEW OF THINGS” –ALBERT ELLIS, AN AMERICAN PSYCHOLOGIST WHO DEVELOPEDRATIONAL EMOTIVE BEHAVIOUR THERAPY.

THIS PSYCHOLOGICAL APPROACH IS APT TO MANY BUSINESS HOUSE DECISIONS BUT VERY TRUE IN STOCK MARKETS AS VIEWS BECOME PALE & FEARFUL DURING THE TIMES OF DEPRESSIVE NEGATIVE ENVIRONMENTS, JUSTLIKE NIGHTMARES IN  THICK FORESTS OF ABUNDANT DESOLATION.

THE STOCK-MARKETS CLEARLY REPRESENT A FRIGHTENING CLUMSY PICTURE AT TIMES WHEN VOLITITIY AT ITS PEAK & FALL CONTINUES!!, NO MATTER HOW SEASONED SOMEBODY BUT TO OVERCOME THE NERVE WRENCHING FEAR AND FORESEE THE FUTURE BECOMES DREADFUL.

TO AVOID UNCERTAINTIES IN STOCK MARKETS ARE NOT AT ANYBODY'S COMMAND OR CAPACITY BUT EVERY PARTICIPANT'S WISH....

TO MITIGATE THE FEAR AND UNDERSTAND THE EMERGING OPPORTUNITIES IN CHAOS, THE FOLLOWING APPROACHES CAN BE ADOPTED FOR BETTER RESULTS AND TO KEEP PACE WITH THE MARKET TRENDS...!!

A) CONVERGENT PROCESS:

THIS APPROACH IS MORE WIDELY ACCEPTED AND FOLLOWED BY THE FIIs, DIIs AND ESPECIALLY FOR THAT MATTER MORE PRECISELY BY HEDGE FUNDS. THESE HIGH RISK SEASONED CUTTING EDGE SMART PEOPLE PLACE HIGH BETS WITH AN ANTICIPATION OF HIGH RETURNS. THE BLOOM AND GLOOM CO-EXIST MANY A TIMES BUT THEIR SPIRITS ARE VERY HIGH.

HERE, STOCK PURCHASE CONCENTRATION IS SO HIGH THAT HUGE MONEY PUMPED AND LARGE CHUNK ACQUIRED AT A REASONABLE PRICE. THE COMPANY FUNDAMENTALS, ECONOMIC &BUSINESS TRENDS AND OTHER IMPORTANT PARAMETERS ARE LITTLE KNOWN TO OTHER RETAIL PARTICIPANTS BUT GET SURPRISED WHY AND HOW THESE COUNTERS ARE HOLDING ON TO THE TOP. 

LAST BUT NOT LEAST, THE VERY IMPORTANT MARKET MANAGEMENT MECHANISMS ARE PUT IN PLACE TO SEE THE PRICES RISE STEADILY AND GRADUALLY TO A LIMIT AND THEN A FINAL SHOOT UP …?. UNFORTUNATELY THE GREEDY POOR TRADERS AND RETAIL INVESTORS GET TRAPPED WHEN PARTICIPATE HEAVILY AND OFCOURSE THE WELL INFORMED SEEK AN EXIT…???

B) DIVERGENT PROCESS:

MAINLY FOLLOWED BY HNIs AND SMALL FUND HOUSES. THE PHILOSOPHY IS TO PROTECT THE CAPITAL AND INCREASE PROFITS IN BABY STEPS. THESE INVESTORS NEVER KEEP ALL EGGS IN ONE BASKET BUT PREFER DIFFERENT SECTORS. THIS DIVERGENT MEANS OF MAKING MONEY CAN OFFER SOLACE THAN ANY OTHER MODEL AS THE MARKET WAGGERIES ARE WELL TAKEN CARE. 

THESE PLAYERS ARE MODERATE IN RISK TAKING APPROACH, HAVE GOOD CONFIDENCE IN MARKETS BUT FEARFUL IN APPROACH. THEY ADOPT LONG-TERM PLAY WITH AN EYE ON SHORT-TERM GAINS, PLACE THEM IN GOOD POSITION AS THEY OFTEN TAKE-OUT PROFITS AT HIGHER LEVELS AND RE-ENTER AT LOWER LEVELS. SO, SAFE AND SECURE ALL THE TIME.

C) CHANNELLED PROCESS:

THE LADDER LIKE APPROACH IS ADOPTED BY SMART INDIVIDUALS TO ENSURE SUCCESS AT EVERY MOVE  WITH A LIMITED RESOURCE/MONEY. THEY KEEP MAINTAIN A WINNING STEAK ON BOTH THE DIRECTIONAL MOVES, SAIL ALONG WITH BULLS AND BEARS AS THEIR ADAPTABILITY & LIQUIDITY AT HAND ALLOWS SUCH FACILITY. THEY KEEP INCREASE VERY CALCULATED BETS, ALSO MAKE SUCCESS, A COMMON PHENOMENA LIKE CLIMBING A LADDER.

THESE PLAYERS ARE KNOWLEDGEABLE AND QUITE SMART IN CATCHING TRENDS IN THE MARKETS AND PLACE THEIR BETS SAFELY, ALSO MAKE SOME GOOD MONEY. THE PLAYERS SUCK EACH EMERGING OPPORTUNITIES IN STOCK MOVEMENTS BUT THEIR WELL ESTABLISHED APPROACH IS NOT KNOWN IN THE MARKET CIRCLES BUT MAKE DECENT COOL MONEY.

D) ZIG-ZAG JUMPING PROCESS: 

THIS APPROACH IS MOSTLY ADOPTED BY THE DAY TRADERS AND SWING TRADERS, ENJOY BUYING AND SELLING MANY A TIMES DURING THE DAY.THESE ENTHUSIASTIC TRADING PLAYERS ARE BACK-BONE TO MARKET LIQUIDITY AND FOR STOCK-TIPS ADVISORS. THEY KEEP ENGAGED EVERY TIME AND EACH TIME THEY TAKE A CALL AS THEIR GAME IS HIGHLY VOLATILE AND NO-BODY UNDERSTANDS WHY A BUYING IS MADE AND INSTANTLY A SELLING IS INITIATED. MANY A TIMES THEY BUY AT ONE COUNTER AND ALSO SELL ANOTHER SCRIP. ULTIMATELY, THEY ENJOY PARTICIPATION RATHER THAN MAKING MONEY.

THESE SMALL TIME RATHER INSTANT PLAYERS NEVER MAKE HUGE MONEY STORED IN THE MARKETS BUT LOSE MONEY FOR SURE, BECAUSE OF BUNDLE OF CONFUSIONS!. THE MORE THEY PLAY THE MORE THEY PAY. THEY HARDLY MAINTAIN ANY ORDER/METHOD, FIND NO TIME TO STUDY, PREFER EXTERNAL DEPENDENCY, MAINTAIN ADAMANT BEHAVIOUR TO A LOSING DEALS, RELY ON IRRATIONAL MEDIA COVERAGES & LIVE IN RUMORS AND PLACE HUGE BETS, BELIEVE IN CARRY ALONG WITH THE MOB IN THE MARKETS...ETC. ALL THE MORE, TAKE VERY FRAGILE DECISIONS AND UN-MINDFULLY INVITE HIGH-RISKS, UNFORTUNATELY GO INTO DUST...UN-NOTICED!!!!

HAPPY NEW YEAR-2015

HAPPINESS, BLISSFUL LIFE BE A WAY OF LIFE WITH WONDERFUL SWEET MEMORIES EVERY DAY IN THE NEW YEAR-2015.

WISH YOU A HAPPY SUCCESSFUL AND PROSPEROUS NEW YEAR-2015

BIOSIMILARS -NEXT...!!!

Biosimilars are the next big thing for Indian pharma
By: Pallavi Ail | Mumbai | December 27, 2014 1:31 amWhile the US is still ironing out its rules governing generic equivalents of biologic drugs, also known as biosimilars, the Indian market has witnessed nearly 20% annual growth for the year ending November 2014 in the segment.Biologics are drugs whose active ingredients are sourced from living organisms so these products are based on proteins, genes, etc, unlike normal small-molecule drugs where the active ingredient is a chemical.Due to this complex base, biologics are not as easily copied as other drugs and companies that are leading such research in India are the top pharmaceutical firms such as Biocon, Dr Reddy’s,  Lupin and Cadila Healthcare.A recent HSBC report says that biosimilar sales grew 20% annually to Rs 2,000 crore or approximately 2.5% of overall market sales at the end of November 2014. Sales margins on biosimilar drugs range from 20% to 80%, according to analysts. On the other hand, almost 90% to 95% of the innovator price of a drug is eroded when a generic version of a small-molecule drug is launched.With the US drug patent pipeline drying up, it is the high-margin biologics that will sustain sales for Indian companies,  analysts.On December 9, the BSE-listed Cadila announced the launch of a copycat version of AbbVie’s blockbuster biologic, Humira, which targets autoimmune disorders such as rheumatoid arthritis. The drug is touted as world’s top-selling drug with global sales exceeding Rs 1,000 crore in CY13, according to the HSBC report. The biosimilar, named Exemptia, will be marketed as a 40 mg injection administered once every alternate week and launched at one-fifth of Humira’s price of approximately $1,000 per injection.Similarly, in April 2013, Cipla started selling a biosimilar of the rheumatoid arthritis drug Enbrel with a launch price of $100. The price of the drug from the innovator, Amgen, was $133.Biocon’s CANMab, a breast cancer therapy that is a generic of Roche’s Herceptin, was launched in February 2014 with a 25% discount to the innovator price.“While we are excited with novel launches even in emerging markets given better pricing, we believe a significant contribution is far away as the market is still at nascent stage in accepting newer better forms of treatments coming at higher costs,” HSBC analysts wrote.Dr Reddy’s, especially, has the most exposure to biosimilars with approximately 7% or Rs 110 crore of its FY14 India sales originating from biosimilars compared with 3.7% for Cadila and less than 1% for Lupin and Cipla, according to HSBC analysts. “Dr Reddy’s is upping the ante on investing in complex generics as well as more risky areas involving biosimilars and proprietary products,” IDFC analysts wrote in a note dated October 29. “While limited visibility on value unlocking from the aggressive R&D investments in these spaces is a challenge, we see significant value creation possibilities given Dr Reddy’s proven capabilities in these high potential areas.”The European Medicines Agency has approved seven types of biosimilars from 2009 till date, according to data available on its website. None of the companies listed are Indian. In 2014, it approved the a single biosimilar: Sanofi’s insulin glargine therapy for diabetics named Lantus. The US Food and Drug Administration is yet to approve any biosimilar. “Material entry in regulated markets (US, EU) is still 4-5 years away as per our understanding,” HSBC analysts wrote.http://www.financialexpress.com/article/economy/biosimilars-are-the-next-big-thing-for-indian-pharma/23516/