Factors that move the Indian Markets

Well, I lost huge money when i was trading in stock market, which is very risky as the losers address it and it is too much risky when it comes to Indian stock markets (NSE.BSE).

But why I lost money is the easiest question that you can shoot at me reading the above poem..!!! yes, this question is equally valued with the Heading of this topic..!!!. When i began to trade 7 months back i was new comer, at least to the markets.More than this i am an engineering student, pursuing 2nd year.

Another thing that i would tell you is my parents never knew that i am trading in stock market and need not to say you that the whole money was mine, in the sense i dint borrow anything from my parents.

You may wonder knowing that i started trading with 4000 and not only this money was little but my knowledge as well was little too..! but it was must to ride the cycle to cover up my expenses and i did..:-)

Oh why i am telling you all this when the topic itself is different ..?? i am really sorry..!! back to market.

I lost lot of money (4000 was big for me..!!) in the beginning and reasons are as follows..

* I dint know what the FII (foreign investors) do here..                                                                                                                                           – They not only invest in crore’s  but also plays a vital role in moving our market up and also they can drag our market down if they sell what they had bought..!!! so you should keep in touch with this data daily to keep tracking the markets..!

*Global cues..

– it is very much important to know how US and Europe market did overnight to decide what Indian markets will do today. So always have a look at the Global economy daily. If US and Europe market is positive then ours will be next day..!!

* What does SGX NIFTY mean..??? i never worried in the beginning..!!                                                                                                             – It is Singapore exchange, which covers the Indian Nfty and it opens at daily 8 AM (IST). If it had opened in positive then our market will also open positive , which is at 9 AM..!! easy trick ..ain’t it..??

* How is Crude trading..??                                                                                                                                                                                                      -It is the commodity item, which will guide the oil and gas products in every country. if it low then you will enjoy spike in next day of the market..!! also market may fall if crude goes higher..

*Futures and Options and Open Interest..!!                                                                                                                                                                    – It is covered in the concept of Derivatives, which is another type of trading in market. It is volatile trade and you can double your money within hours if market moves up very well and also you can loose money ( like me) if market goes down very badly. So think twice before trading in Options..!

– Open interest , is the usual data that a trader can get from many resources like websites and Tv channels. This data tells us about the mood of the trader on the particular stock . If the OI is up then stock usually moves up..so you can bet on the stock which has got highest OI build up..

* Volumes traded..                                                                                                                                                                                                                   – These volumes indicate the trade interest of the trader. If the volumes are higher in particular stock then it is good to trade in that stock. movements in such stocks will also be high, maybe on the upside or downside.

* Board meeting and Dividend and Buy back and RBI meet and Monthly evaluations ..

– Board Meeting, if particular stock of the company is holding a board meeting, which you can easily know through stock market websites and you can see little spike in the movement of the stock, due to the board meeting anticipating an favorable action so.

-Dividend, it is the bonus value of the particular stock and it is mentioned by the authority of the companies. It is always good to hold the stocks which gives good dividend.

-Buy back, any company that is listed in stock market can offer a Buy back, where in comapny will buy the shares from holders for suitable price to re-launch the stock at the price they wish to.

-RBI meet, Reserve Bank of India will have a meeting every month to decide the Interest rate hikes to cool the rising Inflation, if. and if it rises the rate hike then banking sector will suffer a little and also indian markets.

-Monthly data, maybe Inflation data and Industrial data (IIP)  which will be revealed every month have impact on share market.

If Inflation is High then market will fall. If IIP  is High then it will boost Indian market..!!

These are the best financial portal you can grab lot of info

http://www.moneycontrol.com

-www.nseindia.com

I hope i have explained as much as possible cues for you to trade better and your feedback’s are welcome always..!!