News or Factors That Affect Stock Prices

Many People has always wondered how news or different factors has an effect on stock prices. Essentially, It has two parts

First- The type of News of Factor
Second- Its nature, i.e. positive or negative

One has to be smart enough to decode the news and take the position quickly in the stock. People who are adroit in this do make good short term gains even if we leave the insiders or fund houses that generally have good information much before the release of news (I presume so).

I was reading an article from some research paper that did a study on relationship of fund house investment and their holding in a particular stock. What they found out was most of the fund houses exit the stock much early than the release of numbers by the company.

Considering above I think there is little opportunity but then chances are that news is there in market and fund houses are smart enough to read the signs. What individual investors look for is immediate gains but if they play right on news than chances are sooner of later one might see the results.

As I write, I don’t see many clues about anything except that at times it does work. So if it does than why not try it through paper trade to start with.

Below are different types of news that affect stock price. Keep your eyes and ears open and try to come out with a pattern. Who knows it might work for you. Good Luck.


1. Crude Prices
2. Macroeconomic Data (IIP, Inflation, GDP, Industrial Growth, Consumer confidence,
Employment, Unemployment etc)
3. Government/Politics
4. Draught/Monsoon
5. Federal Policies (Interest Rates, Monetary Policies)
6. Company Results
7. Global Cues
8. FII activities
9. Stock Manipulations
10. Insider Trading
11. Mergers
12. Acquisitions
13. Money Markets
14. New Orders
15. Buy Back
16. Bonus
17. Split
18. Tax Benefits
19. Change in stock Group
20. Inclusion in an Index
21. Loss of customer
22. Short and Long Positions
23. Spinoff of arms
24. Lawsuits (win or loss)
25. Change in Demand
26. Change in Supply
27. Budget
28. Raw Materials
29. War
30. Terrorist Attacks
31. Management Changes
32. Dividend
33. Rights Issue
34. Joint Ventures
35. Business Expansion
36. New Invention
37. Rumors

If you know more than Leave a comment. I am very much interested to build this list further.

Visit GetRichAttitude for free Trading Calls




                                                             

Articles of Interest- View on Nifty by Various Analysts

Folks- Below are analysis which caught my interest. It would caught your ineterst too if you too concerned about hat will happen in stock market next. before i publish my view soon, read through the views published in reputed news-sites

The Hindu- Index Outlook
http://www.thehindubusinessline.com/iw/2007/07/29/stories/2007072950330900.htm

Business Standard-Weekly Tech Analysis: Support around 14930
http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=25970

Hindustan Times-Chartists see further fall
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=3b770bcf-eecd-44c6-a319-7552a2664a55&ParentID=108347f1-ff13-4f81-8a25-0f6ce19b9bf5&MatchID1=4501&TeamID1=2&TeamID2=6&MatchType1=1&SeriesID1=1122&PrimaryID=4501&Headline=Chartists+see+further+fall                                                              

Dont Be Scared- Nifty Outlook

Dont be scared folks. Even though this fall is third largest fall of Nifty but bulls still stands a chance. Post a comment if you stuck in Nifty and we will help you.

Also people holding stocks let us knowand we would tell you what analyst think of your stocks.

We are optimistic. though market may dwindle but the moement it will show sign of rise it can shoot like rocket.

Keep you finger crossed but never stop thinking.                                                              

View on Nifty

Yesterday action of Nifty confirmed our view that it has now eneterd into a zone of 4535 to 4650. Index is still in rising channel and despite minor correction yesterday the scenario is still up. Nifty can now travel in channel till 4650 before it faces any resistance.

On intraday basis the nifty has support at 4540 and resistance at 4628. between these the movement would be rangebound.                                                              

View on Nifty

As already written Nifty support has moved to 4525-4545. New target has now moved to 4640 to 4680.                                                              

Nifty View by top Analyst

Interested in report. Leave a comment with your email id.                                                              

View on Nifty

Dont expect nifty to correct fall too much before expiry. Nifty supports exists at 4530 zone and next argets are 4650 to 4680. stocks/Indices have tendency to stay long in an overbought zone. As i said earlier, historically all crashes has happeend between 1st to 18th of respective month. Wait for nifty to exhaust before you place your bids or ride the wave.                                                              

View on Nifty

Today- Use 4550 as SL and Target 4580 and 4600. If nifty finds pressure at 4580 then short nifty with sl of 4605 and target of 4550.

Short Term- 4490 and 4500 is a strong support. the target has now moved to 5620                                                              

View of Brokerage House

A brokerage house has given FY08 target of sensex above 5200 and FY09 above 6400.

stay tuned for more views                                                              

India's Sensex Rises to Record on Profit; Ranbaxy, Larsen Gain

India's Sensex Rises to Record on Profit; Ranbaxy, Larsen Gain
By Gautam Chakravorthy and Pooja Thakur
July 19 (Bloomberg) -- India's Sensitive Index rose to a record, posting its biggest advance in three months, on speculation earnings reports this month will support higher share valuations.
Ranbaxy Laboratories Ltd. and Larsen & Toubro reported a doubling in quarterly profits today.
``The earnings momentum of top companies we believe will be in excess of 20 percent,'' said R. Rajagopal, who manages the equivalent of $68 million at DBS Chola Asset Management Co. in Mumbai. ``Liquidity and fundamentals are driving the market.''
The Bombay Stock Exchange's Sensex, rose 248.96, or 1.6 percent, to 15,550.13, its biggest advance since April 20. The S&P/CNX Nifty Index on the National Stock Exchange gained 62.55, or 1.4 percent, to 4,562.10.
Also helping drive gains were overseas investors who bought a net 9.46 billion rupees ($232.1 million) worth of Indian shares July 17, the Securities & Exchange Board of India said.
Ranbaxy, India's second-biggest drugmaker by sales, gained 4.7 rupees, or 1.4 percent, to 351.55. Group profit rose to 2.64 billion rupees ($65.5 million) in the three months ended June 30. Profit was higher than the 1.73 billion rupee median estimate of seven analysts surveyed by Bloomberg.
Larsen, India's top engineering company, rose 47.15 rupees, or 2 percent, to 2,376.7 after saying first-quarter profit climbed to 3.77 billion rupees as it secured more orders to build ships and power stations and made currency gains. Six analysts Bloomberg News surveyed estimated a median profit of 2.44 billion rupees.
Stake Sale
Reliance Communications Ltd., India's second-biggest wireless operator, rose 12.1 rupees, or 2.1 percent, to 579.3 after saying it will sell a stake in its infrastructure unit for about $338 million to seven global investors to raise funds for extending its network. The sale values the tower unit at 270 billion rupees, Chairman Anil Ambani told reporters in Mumbai today. The company will build 23,000 towers in the next six months to extend its network into rural India.
Hindalco Industries Ltd., India's biggest aluminum maker, added 1.65 rupees, or 0.9 percent, to 185.95 after it agreed to buy the remaining 45 percent stake it doesn't own in Utkal Alumina International Ltd. from its venture partner Alcan Inc. Hindalco will probably complete the stake purchase by the third quarter, Alcan, the world's third-largest aluminum company, said yesterday.
The following shares rose or fell. Stock symbols are in brackets after company names.
ACC Ltd. (ACC IN) rose 17.2 rupees, or 1.5 percent, to 1,150.3. The nation's biggest cement maker by capacity reported a net income of 3.51 billion rupees in the three months ended June 30. The median profit estimate was at 3.9 billion rupees, according to seven analysts surveyed by Bloomberg News.
Infosys Technologies Ltd. (INFO IN) gained 49.75 rupees, or 2.6 percent, to 1,996.85. The country's second-largest provider of computer services is in talks with at least four companies, including Cap Gemini SA, for a potential acquisition, the Times of India reported, citing industry officials and analysts it didn't identify.
Jindal Steel & Power Ltd. (JSP IN) spurted 194.15 rupees, or 5.1 percent, to 4,023.3. The local steel and power producer signed an agreement with Bolivia to invest $2.1 billion in a steel and iron-ore venture, the company said in a statement to the Bombay Stock Exchange.
Jindal Steel will invest the amount over eight years on a 10 million ton pellet plant, a 1.7 million ton steel mill and a 450-megawatt power plant.
Spice Communications Ltd. (SPCM IN) rose 14.65 rupees, or 32 percent, to 60.65 after the Indian mobile-phone unit of Telekom Malaysia Bhd., which raised 5.2 billion rupees selling shares at 46 rupees apiece, began trading today.                                                              

View on Nifty

Nifty tested the upper channel and hence met the target of our earlier posting at 4550. Thereafter it lost tthe gains and dip in negative before recovering to postive territory. If you study candlesticks it shows Doji formation which signifies indecisive ness. In order to rise further nifty needs to break the upper channel with volumes. If nifty goes on red today than it may retrace to 38% to 50% which comes out to the level of 4470 to 4445. Our long term target of 5000 on nifty is still intact

Today upside resistence are 4530 to 4550                                                              

HELP REQUIRED ON ANY STOCK-CLICK HERE AND POST A COMMENT

PLEASE POST A COMMENT-

ANY TIME YOU STUCK IN ANY STOCK AND NEED A VIEW POST A QUERY WITH YOUR EMAIL. WE WOULD TELL YOU WHAT INVESTMENT COMMUNITY THINK OF IT FROM SHORT OR LONG TERM PERSPECTIVE.

WISH YOU LUCK WITH STOCKS                                                              

Titan Industries- SHort term call- Buy

Buy Titan at around 1316
Target 1348,158,168.
SL-1285                                                              

Buy C&C Construction

C&C Construction Buy -273, SL - previous close below 258, Target- Immediate 281, short term 305.

SInce it has shown sharp movement it can go high up.                                                              

Fortis, Geometric, Larsen, Lupin, Merck: India Stock Preview

Fortis, Geometric, Larsen, Lupin, Merck: India Stock Preview
By Cherian Thomas and Pooja Thakur
July 17 (Bloomberg) -- The following stocks may rise or fall in Mumbai today. Prices refer to yesterday's close unless otherwise stated. The preview includes news that broke after the markets shut. Stock symbols are in brackets after company names.
The Bombay Stock Exchange's Sensitive Index rose 0.3 percent to 15,311.22. The S&P/CNX Nifty Index on the National Stock Exchange gained 0.2 percent to 4,512.15.
Overseas investors bought a net 23.46 billion rupees ($575.5 million) worth of Indian shares on July 13, according to the latest information on the Securities & Exchange Board of India's Web site.
Overseas funds have bought a net $9.08 billion worth of stocks and bonds this year. That surpassed the net $8.87 billion in stocks and bonds bought in 2006. They purchased a record $9.46 billion in 2005.
Fortis Healthcare Holding Ltd. (FORH IN): Fortis and Apollo Hospitals Group are in talks with hospitals in the U.S. and the U.K. to win contracts for radiology operations, the Economic Times reported, citing company officials.
Fortis added 1.7 rupees, or 1.9 percent, to 92.95. Apollo Hospitals Enterprise Ltd. (APHS IN) slid 3.35 rupees, or 0.7 percent, to 492.
Geometric Software Solutions Co. (GMSS IN): The Indian software services company said fiscal first-quarter group profit climbed 84 percent to 116.5 million rupees. The shares gained 1.45 rupees, or 1.2 percent, to 125.55.
Larsen & Toubro Ltd. (LT IN): India's biggest engineering company secured orders worth $177.75 million for projects in the hydrocarbon industry in the Gulf region, it said in a statement to the Bombay Stock Exchange yesterday. Larsen rose 13.15 rupees, or 0.6 percent, to 2413.15.
Lupin Ltd. (LPC IN): The Indian drugmaker received regulatory approval to sell its version of Pfizer Inc.'s blood pressure-lowering drug Norvasc in the U.S. Lupin got permission from the Food and Drug Administration to sell tablets of amlodipine besylate, or generic Norvasc, in multiple dosages, the drug regulator said on its Web site. Lupin added 4.7 rupees, or 0.7 percent, to 713.85.
Merck Ltd. (EMER IN): India's biggest vitamin-E maker and a unit of Germany's Merck KgaA said second-quarter profit declined 81 percent to 163.1 million rupees. Sales climbed 4.8 percent to 911.9 million rupees. Merck added 0.75 rupee, or 0.2 percent, to 409.1.
Subros Ltd. (SUBR IN) The Indian vehicle air-conditioning company partly owned by Suzuki Motor Corp., plans to invest 2 billion rupees to double capacity. Subros gained 18.7 rupees, or 8.4 percent, to 240.65.
Tata Consultancy Services Ltd. (TCS IN): India's largest computer-services provider said first-quarter profit gained 37 percent after it won orders and raised fees for managing networks and call centers. Net income rose to 11.8 billion rupees in the three months ended June 30. That beat the 10.8 billion rupee median estimate of nine analysts surveyed by Bloomberg. Revenue climbed almost 26 percent to 52 billion rupees. The shares fell 8.95 rupees, or 0.8 percent, to 1127.9.                                                              

Reliance strikes gas in Cauvery basin

NEW DELHI (Reuters) - India's top private exploration firm Reliance Industries Ltd. has struck gas in a deep water block in the Cauvery Basin, off the east coast of India, the upstream regulator said on Monday.
"This morning they informed us about discovery of gas and condensate in their Cauvery basin block. The discovery is on the basis of one well drilled by the firm," V. K. Sibal, head of the Directorate General of Hydrocarbons, told Reuters.
This is Reliance Industries' first discovery in the deepwater block CY-DWN-2001/2 off Tamil Nadu.
Reliance was initially holding 90 per cent participating interest, with Hardy Exploration & Production (India) Inc holding the rest.
The block was awarded in the third round of New Exploration and Licensing round. Subsequently, Hardy pulled out and RIL now holds 100 per cent interest in the block.
Sibal said the company has to undertake further appraisal and testing to ascertain the scale of the reserves.
Reliance Industries has convened a news conference for Tuesday and is expected to detail the gas discovery.                                                              

Buy Voltal - Future Cash

Buy Voltas -130, SL- 125 (Previous Close)
Target - 134, 138                                                              

E- Book on swing trading

I am going to forward an ebook on Swing Trading (one of the best). I keep forwarding such to my Google Group.

Join the group http://groups.google.com/group/niftynseoptions and leave a comment with your email id.

One book is forwarded based on demand received. If you have some special request do leave it in comment.                                                              

Results This Week

                                                             

New Google Group launched

MAket is on New High. People have now started to predict TOPs and have started to speculate more than ever. To help you tide the unpredictable nature of Markets we have come out with a Group

http://groups.google.com/group/niftynseoptions

The mail motive of this group is to give well researchd calls and to help members with special advice in case they get struck in any stock. One answer can solve query of many which is our main Motive.

Join the group from above link and in case anyone have any questions than please leave a comment here.