ANALYSIS OF RADICO KHAITAN

ABOUT THE COMPANY

Radico Khaitan is one of India's oldest and largest liquor manufacturers. Formerly known as Rampur Distillery which was established in 1943. It was only in 1999, that Radico decided to launch and market its own brands, thereby embarking on a period of phenomenal growth. To further boost its production capacity of bottled and branded products, the company has tied up with bottling units in various parts of the country.

ABOUT THE FINANCIALS

The promoters have now hiked their stake in the company from 37.64% to 39.97%. The company has expanded its trade pattern to enhance the revenue generation by entering into premium liquors. Instead of getting into low margin-high volume business the company is opting for higher margins low volume. For Q3FY11, on a YoY, the company posted a 78% jump in net profit at Rs.20.48 crore on 17% rise in net sales.

NEWS FLASH

A marketing and distribution deal has been signed by the company with Suntory Liquors to launch Yamazaki 12 YO and Hibiki 17 YO in India. By July 2011, premium liquors with a price range of Rs.6500 and Rs.10,000 are to marketed across all the metros.

MY VIEW

We have a noticed a fancy among the traders regarding this stock. A short term trade could be done from time to time on account of any reliable news but any holding in this stock is not going to reward share holders, as they expect.

ANALYSIS OF MUNDRA PORT

ABOUT THE COMPANY

Mundra Port and Special Economic Zone Limited (MPSEZ), India’s largest private port and special economic zone, was incorporated as Gujarat Adani Port Limited (GAPL) in 1998 to develop a private port at Mundra, on the west coast of India. The company commenced commercial operations in October 2001. Mundra Special Economic Zone Limited (MSEZ) was incorporated in November 2003, to set up an SEZ at Mundra. MSEZ was merged with GAPL in April 2006. The company was renamed as Mundra Port and Special Economic Zone Limited, to reflect the nature of business.

ABOUT THE FINANCIAL RESULTS

The company has posted results for the 9m FY11 , Where the net sales has been recorded of Rs.1280 crore with net profit of Rs.651 crore though we have noticed in FY10 – Rs.1392 crore and Rs.701 crore respectively.Its topline at the end of FY11 would be around 1900 crore and bottomline at around Rs.920 crore. Exports showing a surge of 50% on a YoY in Feb 2011 is seen. In FY11 Cargo volume at over 50 million tonnes the port grew by a compounded annual rate of 34% in the past five years.The company expects to tackle 80 million metric tones and 100 million metric tonnes of cargo in FY 2012 & FY 2013 respectively.

MY VIEW ON STOCK

The company has been in my preferred stock list and I still wish to continue. The company has logical work field and its working is improving as the days pass on and a strong & stable growth could be expected in coming times. I would personally recommend to be with the stock for medium to long term period.

ANALYSIS OF VOLTAS LIMITED

ABOUT THE COMPANY

Voltas is one of the world's premier engineering solutions providers and project specialists. Founded in India in 1954, Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

Voltas, the second largest AC brand in India. The stock is fairly fancied among the investors and traders in the capital market.

ABOUT THE FINANCIALS

The company has posted results as per expectation for Q3FY11.On a YoY 5% rise in net sales, it reported a 10% drop in net profit. As these company have cylical and seasonal pattern so there results move on a defined pattern for all four quarters. It plans to penetrate the market with 70 new ACs in the market this season and hopes to increase its market share from the present 19%.

NEWS FLASH

1. A 50:50 JV with Riyadh based company for execution of electro mechanical projects in the country is expected to go on stream by April 2011. 2. The company has recently announced introduction of new ACs of 0.75 tonnes to 3 tonnes capacities, adding 5 new models with 20 variants to its existing line-up.

MY VIEW

The stock is a good investment option, for short term specially when the season is ahead. The 4th quarter results will be surely better then 3rd quarter and some benefit would also be shared with the shareholder with a hike in stock price.

ANALYSIS OF CENTURY PLY

ABOUT THE COMPANY

Century Plyboards (I) Ltd., makers of the well-known ‘Centuryply’ brand of Plywood and decorative veneers, was set up in 1986 in Kolkata, a joint effort of Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal. The largest seller of plywood and decorative veneers in the Indian organized plywood market, Centuryply today is the leading brand and in its short duration of existence has created a special niche for itself in the industry.

ABOUT THE FINANCIALS

The company has posted results for Q3FY11, where YoY net profit slipped 13%. The promoters also plan to sell 10-15% stake to some PE investors. Promoter’s stake as at 31st Dec 2011 stood at 84.16%. NEWS FLASH 1. It is expanding the capacity of its Meghalaya from 1.2 mtpa by another 1.75 mtpa at a cost of Rs.1100 crore. (Rs.750 crore is to come as debt from financial institutions and rest from internal accruals). 2. There is expectation of demerger of its cement subsidiary to unlock value.

MY VIEW

No doubt that the stock is a good option for investment. The company has always fairly rewarded its shareholder in form of handsome dividend and bonus. There is great expectation of value unlocking in the stock. Medium to long term investment could be made in this stock.

ANALYSIS OF ING VYSA BANK

ABOUT THE STOCK

ING Vysya Bank Ltd. Was formed in the year 1930. ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse,

Though it seems to be very odd that in spite of it its 80 years of existence , the awareness among the public is still very low comparatively to the other Private sector bank , with whom the public is more familiar to alike ICICI Bank. HDFC Bank etc….

ING VYSA Bank had 896 outlets comprising of 491 branches and extension counters, 28 satellite offices and 377 ATMs.

ABOUT THE FINANCIALS

INg Vysa Bank has posted good results for Q3FY11. At a glance it could be noticed that YoY net profit rose 37% at Rs.83 crore. Return on Assets improved to 0.88% against 0.80%. The provision cover has gone up sharply from 45% to 76%. NII rose 12% and total income by 18%. The CASA ratio was at 33.5% against 32.2% . Deposits were up 16% of which CASA deposits were up 21%. Gross advances rose 24%.

NEWS FLASH

The bank is trying to have better network and has spread it operating branches and Atm’s
across the country slowly but steadily.During the quarter, the Bank opened 3 new Branches and 10 ATM outlets

MY VIEW

I am a bit unhappy the excessive low pace in growth of the company, which may due to slow or incompetent management. Unlike the other competitive bank the company is still far away from the ruling private bank , instead of its existence much beofre them. I am not sure , whether the investors could be awarded a much. Short to medium term trade on any news could be done.

ANALYSIS OF J K TYRES LTD.

ABOUT THE COMPANY

JK Tyre has five Modern plants in India which are strategically located at Mysore, Karnataka (3) ,Banmore, Madhya Pradesh and Kankroli, Rajasthan .

JK Tyre pioneered radial technology in India way back in 1977, and is the Radial Leader in the country being the only tyre manufacturer offering the entire range of 4 wheeler radials i.e. for Trucks & Buses, LCVs, Cars and Farm.

The company has operations in in 77 countries across 6 continents offering a wide range of products backed by world class technology. JK Tyre enjoys a premium brand status in various advanced markets, including the USA and Australia.

ABOUT THE FINANCIALS

Due to hike in basic raw material price , ie.e rubber the performance from the entire industry has been poor on account of reduction in margin levels.Though the com,The company has somnehow managed to show a better then expected results. For Q3FY11, the company’s NPM fell on a QoQ from 1.77% to 0.78%. At Rs.9.14 crore, the company posted it’s lowest ever quarterly net profit. The company hiked its prices by 2-4% in Jan 2011.

TOP STORIES IN THE COUNTER

1. With the ease in raw material prices (Rubber) hopes in this counter has been regained on account of rising margin levels.

2. The current fall is on account of the catastrophe in Japan and margins will ease only if prices remain low.

3. JK Tyre & Industries was up over 6% yesterday and during the day, it actually hit the three digit mark at Rs.100.80. Around 16,000 buyers remained on the counter compared to just around 4600 sellers.

The local price of the benchmark grade, RSS-4, fall down to Rs.185 a kg in the spot market from the closing rate of Rs.201 on Friday though a month ago it was priced at Rs.240/kg,(Highest ever).

MY VIEW

As it could be summarized from the above discussion that the margin level of the company is suppose to grow on account of reduction in basic raw material prices , so we hope a better results in coming quarters. Short term trade with stop loss could be done in this stock.

ANALYSIS OF GATI LIMITED

ABOUT THE COMPANY

GATI Limited is engaged in express cargo delivery, and distribution and supply chain management solutions in India. The Company has a fleet of over 4000 vehicles on road. The Company has a nationwide reach, delivering to 603 out of 611 districts. The Company has four vessels providing liner and break bulk services between Chennai, Andaman, Vishakhapatnam, Yangon and Ranong (Thailand). Gati International provides freight forwarding-Air fright and Ocean freight (Inbound and Outbound), Custom Clearance-Imports and Exports (Air and Ocean), International Courier, Road movement to the SAARC nations, express distribution and Supply Chain Management. Gati has launched Café Deliver, a retail logistics store in Hyderabad, Pune, Kolkata, Bangalore and Ahmedabad. On December 14, 2007, the Company acquired 73.72% outstanding Equity Share Capital of Kausar India Ltd (KIL).

ABOUT THE FINANCIALS

The company has recorded during the last quarter, a rise of approx 24 % in total revenue. Express distribution and supply chain business grew 24%, its coast-to-coast (Shipping) division was sluggish with just 17% growth.

NEWS FLASH

The company is planning to sell its shipping business for around Rs 200-250 crore and these funds are likely to be used to re-pay debts of its current debt burden of Rs 400 crore.

ABOUT THE STOCK

After a positive announcement in last budget of the cold storage and warehousing sector getting recognized under infra sector the stock has been in lime light.The company , management and performance record has been good and a fairly good company for investment.

ANALYSIS OF SHOPPER'S STOP

ABOUT THE COMPANY

Shoppers Stop is a well known departmental store in India. A chain promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991. Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award". Shoppers Shoppers Stop has 34 stores in 15 cities in India.

ABOUT THE FINANCIALS

The company has posted fairly good resul;t for the third quarter of financial year 2010-11. The company has shown a 24% rise in gross revenue, it net profit rose by 45%. With a 30% rise in the number of footfalls, volumes have gone up 10%. Margins in third quarter had shown pressure mainly on account of the 30bps rise in VAT. Cyclically, Q2 and Q3 have always been the best while Q4 gets weaker.

NEWS FLASH

In the budget for 2011-12 a 10% excise duty has been proposed to be imposed on branded garments. This is expected to affect sales of such branded apparel shops as it will not any option but to hike the prices.

ABOUT THE STOCK & MY VIEW

The company along with other stores has opposed the imposition of excise duty on branded garment. If the excise duty is finally imposed , we would see some pressure in the margin and sales of the company in coming quarters. It would be better to wait for the ripe time to arrive for any fresh investment in retail sector.

ANALYSIS OF ENERGY DEVELOPMENT CORPORATION

ABOUT THE COMPANY

The Company is a pioneer in the geothermal energy industry with more than three decades of proven business viability. It has helped discover new ways of developing and commercializing renewable energy right at the heart of the resource – wherever the location and whatever the condition.

From exploration and production of water-based steam power to generation of electricity for commercial use, we build some of the world’s pioneering and most complex steam fields banking on our highly skilled manpower and homegrown technology that are fast becoming benchmarks in the industry. EDC has more than 1,400 megawatts under its green power portfolio diversified by the acquisition of a hydropower project and wind power projects in the pipeline.

The company has a total capacity of 270 MW currently, which it will increase to 373 MW. In addition, the company has projects underway to develop 143 MW of power in the state. Thus total capacity of 516 MW is being built in the state.

NEWS FLASH

1. The company has recently signed agreements with the government of Arunachal Pradesh to start work on seven hydroelectric power projects in the state.

2. From 2013 till 2016, every year the company will add 100 MW. Of this 13% is to be sold
free to the state, rest the company will sell as merchant.


ABOUT THE FINANCIALS

The company performance has been improved quarter wise in a sequence. Net revenue rose four times to Rs.20 crore on QoQ but higher operating expenses pushed down the net profit, which was actually down 47% despite such a huge surge in topline.

During the quarter, it sold 32 million units and realization was at Rs.11.71 crore. 6 MW Harangi Stage II Tail race project was commissioned on August 30, 2010 and that has contributed (sale of 1.09 million units @Rs.33.44 lakh) to the earnings in Q3. In the current fiscal, existing projects are expected to generate around 55 million units as against 53.12 million units sold in FY10

MY VIEW ON THE STOCK

The company has improved but we shall give some more time to the management and circumstances to have safe investment.

ANALYSIS OF ENGLISH INDIA CLAY

ABOUT THE COMPANY


English Indian Clays Ltd., a Company incorporated in India, was part of the erstwhile Thapar Group. The Company was incorporated in 1963 in technical & financial collaboration with English China Clays Ltd., U.K, the pioneer and the then world leader in Kaolin processing.This collaboration with ECC ceased in the year 1992.


EICL has two key Divisions, viz., Clay & Starch Divisions. The Clay Division, having three manufacturing locations in Kerala, specialises in mining and processing of high end kaolins.

ABOUT THE FINANCIALS

English Indian Clay has posted a good result for Q2FY11 and Q3FY11 was more about maintaining, with flat net sales at Rs.87 crore (YoY) and almost identical net profit at Rs.7 crore.

NEWS FLASH

in view of improved economic conditions , Its speciality starch project at Shimoga in Karnataka, which was put on hold in FY 2010 due to the global economic recession, is under continuous review.

Till end of FY10 the company had incurred an expenditure of about Rs.10.83 crores on 66 acres of land at Shimoga , whose possession has been taken.


Post the stock split and bonus, annualized EPS for FY11 is around Rs.6 which discounts the current price by around 8 times.

ABOUT THE STOCK


The company has already sub divided its 1 equity share of Rs.10/- each into 5 equity Shares of Rs.2/- each in the first quarter. It also issued bonus in the ratio of 5:4. Post all this, its equity now stands at Rs.10.05 crore.

MY VIEW ON THE STOCK

I hope shareholders will take time to forgtet the incidence of few years back , when the stock price was reduced by multiple times suddenly with equivalent subdivision or bonus issue and shareholder has to suffer a huge loss. The capital invested in this stock was almost ruined. I strictly recommend to make NO fresh investment in this stock.

ANALYSIS OF MARICO

ABOUT THE COMPANY

Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods. Marico's branded products are present in Bangladesh, other SAARC countries, the Middle East, Egypt, Malaysia and South Africa.Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic.


ABOUT THE FINANCIALS

Marico had posted fairly a good results for the third quarter of 2010-11 despite the raging food inflation.It has an volume growth of 15%. YoY revenue grew 22%.OPM going up by 257 bps at 12.2% (due to rising raw material prices). Net profit was up 12%.

NEWS FLASH

1. 4th quarter of financial year 2010-11 is expected to be stable.
2. The company does not plan any more aggressive price hikes but use control costs to keep a tab on margins.

ABOUT THE STOCK

The news of the company being in the process of restructuring its business and is planning to sell its edible oil brand ;Sweekar’. News of probability of other brands also being put on the block has emerged were the reasons that the stock has been in lime light and a quick move was noticed in the price of the stock in past few sessions.

ANALYSIS OF NEYVELI LIGNITE

ABOUT THE STOCK

Neyveli Lignite Corporation Limited (NLC) is a government of India enterprise. A Mini Rathna lignite mining company.The company wholly owned by the Union Government about 49% and administered by Ministry of Coal.

NLC operates the largest lignite mines in India and mines some 24 million tonnes of lignite per year for fuel , with an installed capacity of 2490 MW of electricity per year. The company's operations are in Neyveli.The company operates thermal power plants, three large mines.

ABOUT THE FINANCIALS

Excessive rains, affecting production at its mines and downstream thermal units this PSU has posted bad results for Q3FY11. QoQ, topline fell 18% and net profit slipped 65% and YoY, there was a 30% fall in net revenue and 74% fall in net profit. Margins also indicate this pressure, OPM which was around levels of 49% has now slipped to 28% and NPM from over 25% levels fell to 11%.

TOPS NEWS

1. Commissioning of its downstream thermal power station TPS – II is now expected to be completed by end of the year.

2. Expansion at Barsingsar is scheduled to be completed within next 2-3 months.

3. No major firework numbers are expected in QUARTER IV

ABOUT THE STOCKS

The company is holding a significant share in the field of power generation. Though the company is facing tough times and as better options are available in the market so buying should be avoided at present times.

ANALYSIS OF POWER GRID

ABOUT THE STOCK

The company incorporated in the year 1989 is the Government of India Enterprise and a Navratana status company. The giant in the power sector in Indian market has entered in to the capital market a few years back. It currently is the market leader in transmission lines, commanding 50% market share and if it is able to put up the targeted 38,000 kilometer line, its market share will go up to around 58%.

ABOUT THE FINANCIALS

Results for the Q3FY11, on a QoQ basis the company has reported net sales down 35% and consequently net profit has been reduced by 9%.The decline in sale could be justified on account of its stagnant and falling sales in its verticals.

In the coming next 14 months, the company has set up the target to put up 38,030 kilometer lines, 65,000 megavolt ampere (MVA) capacity and it has to energise 45 service stations. Of this, it has till date added 35,000 mva capacity, raised 24,000 circuit kilometers transmission lines and energized 31 service stations.

MY VIEW ON STOCK

The stock is no doubt a good and safe investment in power sector but an immediate breakout of the range of the stock is not seen.The stock is no doubt a good and safe investment in power sector but an immediate breakout of the range of the stock is not seen.

ANALYSIS OF DUNCAN INDUSTRIES

About The Company

Duncans Industries Limited is almost synonymous with the tea production in India. It has made a profound impact in the tea industry since 1951. Apart from that, the company began focusing on 4 more areas viz., power generation, chemicals, petrochemicals, and fertilizers.

About The Financials

The company did not have a very encouraging Q3FY11. In the business of tea and fertilizers which has been suspended, it has been declared a BIFR case. For Q3FY11, QoQ, net sales fell 9% and net profit by 17%. 45% of its net sales gets eaten away by employee cost, its biggest cost component.

News Flash In the Counter

The BIFR has approved the demerger of its fertilizer business to the Jaypree Fertiliser but it was expected to be completed by Jan and now is expected to be done by March as a result the entire debt of Duncans is getting transferred to this hived off fertiliser company, which is to the tune of around Rs.550 crore.

About The Stock

The stock is range bound between Rs.16 and Rs.20. Its 52-week is at Rs.24.35 (As on 10th Nov’10). In short term shareholders have kept there fingers crossed for short term +ve movement in stock on account of completion in announcement of fertilsier unit hive off.

ANALYSIS OF MAHINDRA SATYAM

About The Company

Mahindra Satyam is one of the leading global IT business consulting services company. Headquartered in India , they offer IT business consulting services across the world and also have development and delivery centres in the US, Canada , Brazil , the UK , Hungary , Egypt , UAE , India.

About The Financials

The company has reported a net profit before exceptional items at Rs 61.24 crore for the quarter ended December 2010 as against Rs 31.7 crore in previous quarter.Revenues are seen going up to USD 278 million versus USD 272 million and in rupee terms, revenues are likely to go up to Rs 1,257 crore from Rs 1,242.4 crore (QoQ).Earning before interest, depreciation, tax and amortisation (EBIDTA) is expected to go up to Rs 88 crore from Rs 73.5 crore (QoQ).

My View

The company has seen a very bad phase few years back and the share holder interest has been badly ruined. The company after being taken over Mahindra group is progressing but large scale investment in this stock is not recommended.

ANALYSIS OF TATA STEEL

ABOUT THE COMPANY

Tata steel managed by the well known Tata Group needs no introduction for itself.The steel giant of the nation is backed by excellent management with wide network across the country and overseas with well experienced promoters. The company has croosed the Indian frontier and expanded the business in large extent in overseas making the company one of the biggest shareholder in the field of Steel.

ABOUT THE FINANCIALS

The company has announced its third quarter results. The company's Q3 consolidated net profit was up 122% at Rs 1,003 crore versus Rs 473 crore, year-on-year, YoY.Its consolidated net sales were up 9.74% at Rs 28,610 crore versus Rs 26,070 crore, YoY.

Raw Material costs for the quarter came in at Rs Rs 10,270 crore versus Rs 8,030 crore, YoY.
The company reported EBITDA margins of 11.6% this quarter versus 13% in the same quarter last year.Its total expenditure stood at Rs 26,790 crore versus Rs 24,410 crore, YoY.European sales were up to Rs 17,940 crore versus Rs 16,755 crore, YoY, while EBITDA from the region came in at Rs 395 crore versus Rs 660 crore, YoY.

Its saleable steel output was up 3.8% at 1.75 million tonne as compared to the same period last year.The company's consolidated net debt stands at Rs 52,836 crore as on December 31. Consolidated operating margin for Q3 came in at 11.6%.

NEWS FLASH

1.The management of Tata Steel said that margins from Europe were under pressure on the back of inflated raw material costs. Managing raw material costs was one of the key challenges in the short-term, the management said.

2. The company expects construction sector in Europe to remain weak in 2011. It however sees demand in Europe rising 3-5% in the calendar year.

3.The management also said that work had started at the Orissa steel plant.

MY VIEW

The stock has been a good performer and could be titled as safe stock because of its well established corporate backing. The stock holder will be rewarded in the coming days as the company’s profit extend with rise in steel prices. The company has actual field work and could perform better in coming days.

ANALYSIS OF NOIDA TOLL BRIDGE

About the Company

The Noida Toll Bridge Company Ltd. (NTBCL) has been promoted by Infrastructure Leasing and Financial Services Ltd. (IL&FS) as a special purpose vehicle (SPV) to develop construct, operate and maintain the DND Flyway on a Build Own Operate Transfer (BOOT) basis. NTBCL is a public listed company, incorporated in Uttar Pradesh, India, in 1996 and operates only in India.

About the Stock

The stock has been in focus few days back on account of its announcement of hike in its toll rates on the DND Flyway, linking Delhi and Noida. The average rate hike for all vehicles has been hiked sharply by around 130%, effective from February 15. The average daily traffic on DND Flyway is around one lakh vehicles, of which approx 70- 75% of them are cars.

About The Financials

The Rs.10 paid up share’s annualized EPS currently stands at Rs.2.54.The financial performance of the company in Q3FY11 was more or less stable, no fireworks, nothing to get excited about. Infact on a YoY, its net sales dropped 5% but deft management of operating expenses, which was down 17% led to a 11% rise in net profit at Rs.9.52 crore. Its equity is huge at Rs.186.19 crore.

My View on the Stock

As per my view the company has actual business work field and could perform better as the days pass on. The stock could be bought by following average buying process at all significant dips.

ALL ABOUT DAY TRADING.

What is the general meaning of Day Trading?

Day Trading means taking a position in the markets with a view of squaring that position before the end of that trading day (Within the trading hours). The goal of a day trader is to capitalize on price movement within one trading day. Unlike investors, a day trader may hold positions for only a few seconds or minutes, and never overnight.

What does Day Trading do really mean?

The term "day trading" is a widely misused and misunderstood term. Real day trading means not holding on to your stock positions beyond the current trading day; in other words, not holding any position overnight. This is really the safest way to do day trading because you are not exposed to the potential losses that can occur when the stock market is closed due to news that can affect the prices of your stocks.Unfortunately, many people who claim to be "day trading," hold stocks overnight because of fear or greed, thus setting themselves up for the catastrophic elimination of their capital. When day trading currencies, the term "day trading" changes slightly. Since currencies can be traded 24-hours-a-day, there is no such thing as "overnight" trading. Thus, you can have open positions for longer than a day with active stop losses that can be activated at any time.

Advantages & Disadvantages of Day Trading:

Though it’s a very tactful game and need to be played with full strategy to avoid any confusion and miscalculation. Any simple mistake could stuck you in such a mess that there is chance of great destruction of the capital.

Though the main two advantages of the same could be summarized as below:-

1. Zero Overnight Risk: Since positions are closed prior to the end of the trading day, news and events that affect the next trading day's opening prices do not effect your portfolio.

2. Increased Leverage: Day Traders have a greater leverage on their trading capital because of low margin requirements as their trades that are closed in the same market day. This increased leverage can increase your profits if used wisely.

MOST COMMON MISTAKES IN EQUITY

1. TRYING TO PICK TOPS AND BOTTOMS

Trying to pinpoint tops and bottoms is a risky business where the possibility of taking a loss far outweighs the potential gain. By exercising patience and waiting for a definite high or low to appear, you’ll increase your odds for making a profit while reducing your risk and stress.

2. AVOIDING STOP ORDERS

Using stop Orders is easy discipline, but remember to use discretion when using them. When placed too tightly, stops can take you out of the action before the market has made a significant move.

3. BEING GREEDY

You need to decide first that What you want ?Then a trade goes in your favor and you’ve already made a handsome profit, it’s sometimes a good idea to take the money and run. One of the biggest mistakes some traders make is staying in the market for too long hoping for a windfall that will make them rich all at once. Of all the emotions that can affect trading results, greed is the most destructive.

4. TRADING TOO MANY MARKETS AT ONCE

You would have lack of concentration if you spread yourself too thin by trying to trade too many different markets at once, you won't have the information and "feel" you need to make good decisions. Most expert traders recommend that you limit your trading to one or two markets. If you do choose to trade several different futures, it’s best to trade groups that move in relation to one another.

5. NOT DOING YOUR HOMEWORK

Do you home work on regular basis as you should know where are you investing ? Why had you chosen that? and whats your target?. Best traders are the ones who have made a commitment to do what it takes to become a success. They’re willing to study charts or learn new trading methods so they’re always ready for what the market throws their way. Once you’ve made that commitment yourself, you’ve taken your first step toward trading success.

6. LETTING LOSSES RUN

Don’t ever be afraid to accept defeat.If you had played wrong due to unceratin causes or lack of information or simply due to bad luck try to accept the loss and get out of it instead making the trap more severe in order to recover your losses instantly.

7.REVERSING YOUR POSITION

If your position is wrong, avoid the temptation of making a 180-degree turn. Instead, get out and give your trading a rest before taking another position. Ignore this advice, and you run the risk of being whipsawed—losing as the market moves against you, then losing more when the market turns and goes against you again.

8. FOLLOWING THE MAJORITY

Successful traders know that it’s better to "lead the pack" than it is to blindly "follow the herd." Because the biggest profits are made by catching moves before the crowd has a chance to react.

INVESTMENT RULES IN EQUITY MARKET

Not only the small investors but also institutional investor has the challenge to find the right opportunity to invest in stock market and at right time (To enter/exit). Generally investor are happy to make heavy gains during rally but with agreed doesn't book profit but on other hand when market scenario get reverse they are scared faster and sell out the holding even at loss.

In short, investing in equities can be a difficult proposition for retail investors. However, equity must form a part of every investor’s portfolio. The proportion could vary, depending on the investor’s age, monetary requirements, risk appetite, etc.

It is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them strictly.

A long-term monetary commitment, adherence to discipline in investment and decisions based on company fundamentals are essential ingredients for successful equity investment.

Golden rules for investment

1. To be a long term investor

2. Do Your home work Regularly

3. Try to average Price at both buying and selling time

4. Diversification of portfolio

5. Always focus on fundamentals

6. Don’t sell in panic

7. Don’t take loan to invest

8. Invest regularly & gradually

9. Have targets & exit at those level strictly.