Learning Series # Part 2 # Picking quality stocks # How Professionals Identify Potential Trade or Stock to trade, feel free to share your Thoughts and Inputs @ 99167-40909

Dear All,

In my last post I had discussed some of the detailed step by step process of selecting a quality stock,

Here I am presenting one more quick method of selecting a potential quality or momentum stock - 

Here we go !!

For this method we should have patience and we wait for a day when market falls abnormally, the reason is irrelevant {it may be elections :-) , cross border war, currency war anything}

1. Step 1 - After the market is closed, lets look for stocks which have closed 

                  -  (i)  in the positive

                  -  (ii) or Stocks that have made a new life time high or 52 week high

So the Idea is to select in the stocks which have strength and stand like a Wall against any bad news and they not only stay at same price but 

                  - (i)  will also close in the green that means investors are trying to use this opportunity to                             grab more shares from the market at these levels

                 -  (ii) They also make a new life time high or a 52 week high

2.  Hence end of the day after market is closed I see my existing portfolio to the analyze the strength        of my holdings .i.e is how many closed in the green or positive. Generally these are the stocks             which will lead your portfolio

  

3.  To include a new stock in my portfolio, I am interested in 2nd option that is -  (ii) Stocks that have       made a new life time high or 52 week high. 

      Why because these are stocks which are ready to make fresh highs and large money is trying to           chase this stock even at these levels, sensing there is still a lot of value left in this stock

So once you have identified stocks which have made new life time highs or 52 week high, Do your own fundamental analysis on these stocks and if you feel there is a value at the current price just go for it, keeping your risk and reward in mind 

4.  So lots of theory, lets do it practically, 

     Go to NSE website search for 52 week high stock  - so I found below list of stocks making 52              week high (excluded from the list is ETF ) - 

Security	New 52W/H	Prev. High	Prev. High Date	LTP	Prev. Close	Chng	% Chng
Accelya Kale Solutions Limited	1,575.00	1,478.00	21-Sep-16	1,465.00	1360.2	104.8	7.7
Delta Magnets Limited	40	38.55	7-Nov-16	40	38.55	1.45	3.76
Gujarat Industries Power Company Limited	105.5	103	1-Nov-16	103.75	98.9	4.85	4.9
Kotak Mahindra Bank Limited	829.4	826	30-Oct-16	822.1	811.8	10.3	1.27
Servalakshmi Paper Limited	4.6	4.4	8-Nov-16	4.2	4.4	-0.2	-4.55
Shreyans Industries Limited	103.55	92.9	3-Nov-16	103.4	86.5	16.9	19.54
SREI Infrastructure Finance Limited	91	90.2	8-Nov-16	86	87.2	-1.2	-1.38
Swan Energy Limited	130.6	128.4	8-Nov-16	128.75	113.1	15.65	13.84
VAKRANGEE LIMITED	262	261.7	8-Nov-16	260.1	260.75	-0.65	-0.25

After doing all my analysis, I zeroed into Shreyans Industries, buy around  Rs 103 Rs to 105 Rs-

Where I feel risk reward will be favorable, hence I will allocate small capital to this stock with a stop loss of previous days close i.e. 86.5 Rs

Target should be some where around 130 to 150 Rs. Risk reward of 1:3

Buy Water Base @ 106 to 100 target around 150 to 180, stop loss Rs. 90, Merger plans on the cards !

Buy Vedanta @ 178 to 175 target around 200 to 220, stop loss Rs. 170, good breakout in weekly and daily charts.

Learning Series # Part 1 # How Professionals Identify Potential Trade or Stock to trade, feel free to share your Thoughts and Inputs ! Will be happy to discuss the same.

Buy India Cements, current price 115.65, buy at current price and add between 110 to 116 for target of 150 to 200 stop loss of 90 **1st recommendation Jayant Agro has already delivered 35% return in just 1.5 month **2nd recommendation Manapuram Finance has already delivered 16% return 25 days njoy !! happy investing !! ‪#‎Mutibagger‬ ‪#‎ManapuramFinance‬ ‪#‎JayantAgro‬ # JayantAgro Multibagger stock # India Cements # India Cements Multibagger stock #ProfitTantra.com

# India Cements # India Cements Multibagger stock
Improving Fundamentals and good technical setup will help stock to move higher.

Buy Manapuram Finance, current price 65, buy at current price and add between 60 to 65 for target of 100 to 120 stop loss of 45

Manapuram Finance

#Multibagger #ManapuramFinance 

Buy Jayant Agro for a Target of 250/- and than 300/-

Dear All,

Buy Jayant Agro for a Traget of 250/- and 300/-, fundamentals are improving for the company, will get better in future, stop loss 150/- Technical setup is also good !

[profit-tantra] Stock market Red Flags ! (Series-1)

Must read..
Dear All,
...

To create awareness among investors, I am starting series of mail, to bring awareness in investment community at large to be aware of red flags while investing in any company.
Hope investors will consider these points before investing. I have named this Educational Series as "Stock Market Red Flags"

Today we will be discussing two stocks which I feel is a risky bet in terms of investments based on there current business...

Stock 1 : Quick Heal (There will be no quick healing for investors :-) )

1. Opening day price action, IPO price was 321, closed at 273 on the day of listing down 14%
2. Again price has come back to same levels, any one who is stuck can still get out of the stock
3. Company's product - antivirus software is a low margin product, in a highly competitive industry
4. 49 crores was paid as dividend just before IPO,The purpose of bringing IPO is to do expansion with the money  received through IPO, than why such a huge dividend is paid to the promoters,

A clear case of filling the pocket at the cost of share holders, a big red flag !

Since IPO is brought to fund future growth and exit of the equity investor, but in either case if money is minted through dividends before IPO its a red flag

Stock 2 : InfiBeam - E-commerce player

1. Generally I prefer to invest in stocks related to those industries which are doing good.
2. As we know these E commerce players are incurring heavy losses due to competition, discounts and heavy advertisement expenditure
Hence we should stay away from a stock which is
- facing intense competition from new players,
- loss making margin's
- the business can be started with much ease, unlike a manufacturing plant which will take a long gestation period to start production,
need to take environmental clearance, acquire land and many more compliance to be followed.

- Hence entry of new players is very often, recently we have Shop clues, Koovs.com, Rocknshop.com etc, also Chinese Alibaba pro actively is buying stakes in e-commerce companies. Small players will not be able stand in front of there deep pockets.

Infibeam is exposed to all such risk and is loss making like it counterparts... Hence ask yourself due want to put your money in loss making company with the risk mentioned above...Though the price has gone up after the IPO, hence just get out and put your hard earned money in certain stocks... with good profitability or some turnaround story's with good management.
Please find attached charts of Quick Heal and Infibeam ! along with summary of losses e-commerce company's have incurred.

Conclusion : Stay away from both the stock based on the reason stated above and put your money in some good companies
.
Disclaimer : I don't have vested interest in any of the companies discussed, above is pure my personal opinion.

Use your own judgment for buying or holding the stock.

 

Top Recommendation FCEL

FCEL : The Dark Horse, Medium risk : High return stock in long term, company is on the right direction, keep your stop loss in check before entering the stock. But may give very high return in long term.

Can I get good returns in "Mutual Funds". which sector to invest, Largec...

Best Investment Strategy in Current Stock Market volatility, Also find out is SIP the best tool for investment in current scenario

Link of post in Google Groups click here

Dear All,

Please find a note below on current market volatility and what can be done as an individual investor in current scenario.

I am addressing some common questions which every investor has in his mind in current scenario.

Que 1 : Can markets fall further, experts say India's fundamentals are strong it will not fall, what should we do?

 Ans   :  The answer is no one knows it may go up or it may go down :-),  

                but if country like China is falling which contributes 13% to world's GDP next to United States, its time to be cautious.

                {Please check excel sheet attached (world bank data) GDP growth country wise }

                Hence if it goes down mutual fund investors who are doing SIP are the biggest beneficiary of accumulating more units at lower levels.

                Those who are still sitting on the sidelines to invest, this is a good opportunity to start, reason been what happened in 2008, 

                 SIP Investors made good money, see details below :

                

                As it happened between Jan 2008 to Oct 2010, investors who started SIP at the peak of market fall and continued till 

                market reaching same level, got an average return of 29.21% for reference please see chart attached from 2008 till 2010, 

               and actual returns from a diversified fund Birla Sunlife top 100 fund growth  

               (Check attachment excel sheet SIP returns between 2008 and 2010 and Nifty 2008-2010)

                

                Please note :  Don't do lump sum investment which we never suggest to our clients reason is, imagine investor who has done a lump sum

                                          investment in 2008 peak, he will have no returns till 2010, where as SIP investor made 29% CAGR return.

                                     

                                           Hence plan your tax saving investment also in advance by bifurcating in equal installments, 

                                            year end lump sum investment is not suggested.

 Que 2 : Many investors are getting lured towards Real estate funds and infrastructure funds as they have fallen a lot, you often see 

                stock market Guru's talking about India's Infrastructure growth and opportunity  and there by suggesting these stocks and mutual funds ?

 Ans  :  Please consider points below why its not advisable to invest in infrastructure fund or real estate fund

               1. Thin Profit Margin and 

                   Net margin of infrastructure companies are between 4% to 7%, 

               2. Competitive bidding 

                    Projects are allotted through competitive bidding where each company tries to quote lower to get the project

                     and there by compromising on margins

               3. Long gestation period

                    Projects years to complete there by making them vulnerable to losses in future in case any of their projections 

                    go wrong while implementing the project    

                     

               4. The only beneficiary in infrastructure space is cement sector, healthy margins and basic component for any project

                    to be implemented. 

                     With good capacity available with cement  companies to ramp-up production  in case of any increase in demand 

                      without increase in capital expenditure to increase the production

                      (Please refer real estate index and infra index attached in sector analysis chart)

Ignorance may be bliss, but it certainly is not freedom, except in the minds of those who prefer darkness to light and chains to liberty. The more true information we can acquire, the better for our enfranchisement.

ROBERT HUGH BENSON, Intellectual Slavery

Please feel free to share your views or any query feel free to call or mail @ 99167-40560 or niraj@profittantra.com

Best home loan rates offered by banks

Best home loan rates offered by banks

I am considering here some of the best offers going on in Home Loans :
Rate of interest   Women applicant  Male applicant       State Bank of India : 9.70% 9.75%       ICICI Bank : 9.85% 9.90%       LIC Housing Finance Ltd :  9.90% 9.90%       HDFC  9.85% 9.90%       Axis   9.95% 9.95%       IDBI bank : 10% 10%

List of project approved by State Bank of India

To have a clear view for SBI APPROVED PROJECTS IN BANGALORE click link below :

https://docs.google.com/spreadsheets/d/1z6q4Ki4nybRRNi6Bmx342dPqYI0dogpA9uF8Lp5ab-I/edit?usp=sharing

Tax benefits on Home Loan as per Income Tax Act

Summary for easy reference, prepared for clients of Profit Tantra Financial Services

Frequently Asked questions on Home loan :

Income Tax sections applicable :

Sec 80C  : for principal amount

Sec 24    : for repayment of interest 

Q-1 What are Income tax benefits of taking  and repaying a housing loan under EMI Plan?

You will be eligible to claim both the interest and principal components of your repayment during the year. (You can claim this interest only when you are in possession of the house)

Sec 80 : Principal can be claimed up to the maximum of Rs. 150,000  (Rs. 100000/- up to A.Y. 2014-15) under Section 80C. This is subject to the maximum of Rs 150,000 (Rs. 100000/- up to A.Y. 2014-15) across all 80C investments.

 Obtain statement from lender/banker showing the repayment for the year with breakup of interest & principal component

Sec 24 : Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 200,000 (Rs. 150000/- up to A.Y. 2014-15) or the actual interest repaid whichever is lower.

Q-2 If I buy a house jointly with my wife and take a joint home loan, Can we both claim income tax deduction?

Ans:-Yes, if your wife is working and has a separate source of income, both of you can claim separate deductions in your income tax returns.

Repayment of principal amount up to :  1.5 lakhs

Interest on loan upto :  2 lakhs  

Both co-owners can claim deductions in the ratio of ownership.

Q- 3 I plan to buy a house by raising loans from friends and relatives. Will I be eligible for tax benefit from all sources?

Ans: – 

Principal payment:

Is not eligible for deduction as per income tax act if loan is taken from friends and relatives, deduction is allowed on principal payment only if loan is obtained from banks and notified institutions

 Interest payment:

 Is allowed on receipt of certificate confirming payment of interest from friends and relatives.

 Q- 4 .  Can I take advantage of tax benefits from a home loan as well as claim House Rent Allowance (HRA) ?

If you took a home loan and are still living in a rented place, you will be entitled to:

Tax benefit on principal repayment under Section 80C

 Tax benefit on interest payment under Section 24

 HRA benefit covered under section 10(13A) and rule 2A

For detailed analysis on HRA (please check write up on HRA)

Q- 5.  I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me. What is the total income tax exemption that I can avail of ?

Full tax exemption can be claimed if you are paying the EMI, provided you are the owner/co-owner of the property

Q- 6.  I have two housing loans on two different properties. Can I get tax rebate under sec 80 C of both the loans?

Yes, you can get the 80C benefit on both loans. However, the total amount that you will be entitled to will be a total of Rs 150,000 (Rs. 1 Lakh  up to A.Y. 2014-15) across both the homes.

As for Section 24 deduction, on your self occupied house you can take advantage of interest payments up to Rs.2,00,000  (for A.Y. 2015-16 ).  For the other property, you can claim actual interest repaid, there is no limit for the same.

Q- 7. I live in Bangalore in my own house. In Jan 2014, I took a housing loan to fund the purchase of an under-construction flat in Chennai. It is expected to be completed in FY 2017. I haven’t claimed any tax benefit so far. What happens to the loan installments I have paid so far? Can they also be claimed for tax benefit?

Please refer the diagram below :

 Q. 8 Is there any additional deduction which I can claim in respect of Interest on Housing loan in addition to interest Under Section 24(b)?

Ans. Yes, in section 80EE of income tax act.

 Benefit of this section can avail by Individual assessee.

 When all the following conditions are satisfied:

·         Purchaser should be first time buyer.

·         Value of the house should not be more than 40 lakh.

·         Loan taken by Individual for the purpose of buying a house should not be more than 25 lakh.

·         On the date of sanction of loan individual does not have any own residential house property.

·         Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company.

For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14

Any query feel free to mail at niraj@profittantra.com or call at 99167-40560

On MobileGlobal buy at current price of 87.7 with target price of 150, stop loss 65/- risk reward 1 : 3

Top most recommondation keeping elections in mind State Bank of India

Update on call given for May 2014 : 

   Return of 450%

One can buy State bank in cash or can buy options with a small risk as risk reward is very favourable
Current price	Close on expiry	No of shares	Price 2200 call	Profit	Maximum loss	Risk reward
2065	2551	125	71.7	51,787	8962.5	5.7
2065	2960	125	71.7	102,912	8962.5	11.4