Let’s begin by defining average true range(ATR). A particular stock’s range can be measured in terms of the difference between its highest and lowest price on a particular day. It shows the stock’s volatility. A large ranges indicates high volatility while a small range indicates low volatility. This range also applies to both commodities and options – the high …
As per disclosure norms set by SEBI, companies have to report their financial performance on a quarterly and annual basis. Apart from financial data, the annual report also contains valuable information such as information about the company’s products and services, management vision and guidance, major recent accomplishments, changes in leadership, mergers and acquisition related activity, …
HOW DO I KNOW ABOUT THE POTENTIAL INCREASE IN THE VALUE OF MY SECURITIES (SHARES, BONDS, ETC.)? You can use the method of Fundamental Research to find the potential increase in the value of your securities. What is Fundamental Research? Fundamental Research is a method of valuing securities based on the growth prospects and attractiveness …
On the morning of 29th September, the Indian Army carried out selective surgical strikes on terror establishments along the border in Pakistan Occupied Kashmir (POK). While the surgical strikes were on the cards after the terrorist attack at Uri, the timing and speed with which the Indian army and the political establishment acted took a lot …
The PMI (Purchase Manager Index) is a classic measure of whether the particular segment is seeing an expansion or a contraction. Markit Economics calculates this PMI for manufacturing and services separately for all major countries on a monthly basis and announces it in the first week of the next month. For the month of December …
Did you know that globally nearly 80-85% of the options expire worthless. That means; the buyer of the option loses money on the option while the seller actually takes the premium. There could be two reasons for the same. Firstly, the option buyers are normally the smaller trades while the option sellers are normally large …
When TCS announced its second round of buyback of shares worth Rs.16,000 crore, it has once again raised the debate on how should companies in India reward shareholders. Broadly, there are two ways of rewarding shareholders viz. dividends and share buybacks. After the Union Budget 2016 made dividends above Rs.1 million taxable at 10% in …
Over the last 10 years you have painstakingly created a solid equity portfolio consisting of a mix of blue chip stocks and quality mid cap stocks. Your portfolio value has multiplied and you realize that you have made big gains over the years. Your friends advise you to just take the profits and walk out, …
When we talk of company evaluation, most of us tend to get caught up in the big picture. Capital structure, fixed assets investment, borrowings, net worth, ROE, ROCE; these are the issues we normally consider most relevant to valuation. But did you know that most of these big picture items cannot really be of any …
If you have seen investors getting confused between risk and uncertainty then they are not the only ones. Most people are unable to appreciate the difference between risk and uncertainty. When you invest in the markets or in any other asset class, there is an element of risk and also an element of uncertainty. In …
