Thursday, March 25, 2010

MUTUAL FUNDS TRADING???

Well i have promised to discuss on some serious topic to my viewers, this MUTUAL FUNDS trading is a very new concept in India. NSE has the credit to launch this model first in India and its a very new addition to their portfolio as well.

The idea behind setting up a mutual fund trading platform on the stock exchange is to spread equity cult across the country. “Many new investors are using the MF route to invest in the stock market. As a retail investor all we know very well how to invest or trading in listed company's shares through secondary market dealings. In this very similar way we can put a trade in MF also. One more interesting parts of this model is you don't need to open a fresh DEMAT A/C to keep your holdings. you can use your existing demat for this purpose also.
similarly BSE is also preparing for a trading platform like this. This would not be wrong if i say another trading platform like this would give the competitive edge to investors only.

Workings of this model is really fantastic as i can certify it from my previous and current association with big giants in the industry. Some of the big names like kotak securities, indiabulls securities, religare has approached this model with their own trading platform, a absolutely new one. Where someone can put his/her bids and we are at corporate office sitting at a highest hierarchy on these, collectively put these bids safely on our corporate IDs for the execution purpose through a different platform. After getting executed, we update trade details on investor's platform to make him/her aware.

UTI is the first funds house india is eligible of NSEs mutual funds trading. There are currently 39 mutual funds in the country.

In order to compensate distributors (after abolishing the entry load), the Sebi has asked mutual funds to use the exit load proceeds diligently. “Of the exit load charged to the investors, a maximum of 1 of the redemption proceeds shall be maintained in a separate account which can be used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses,” the Sebi had said.

Wednesday, March 17, 2010

Nifty likely to consolidate at 5150-5300

Nifty ATM IVs have fallen drastically since the Budget and are now trading at sub-18 levels, after trading at close to 30% on the Budget day.
Global equities rally and increased risk-appetite amongst investors led to US VIX making a new 52-week low on March 5, 2010. Traders are facing risk-return dilemma in shorting volatility, as volatility is already trading at exceptionally low levels and there is not much further downside while at same time there is no apparent trigger to induce a spike in volatility.

Nifty VIX is at the lowest level since inception which has led investors to take directional bets through buying of options. Global equities markets could be heading towards a low volatility regime whereby equity indices continue to move higher or consolidate at current levels.

PCR for March series is above 1.7 indicating extreme bullishness in the market. PCR at the 5000 strike for current series is higher than 3.5, while PCR for 5100 strike is less than 1.0 and PCR for higher strikes is well below 0.5. With more unwinding of Call options at 5100 strike and 5200 strike, the Nifty is expected to consolidate at 5150-5300 levels.

IT, metals and oil & gas are witnessing a long build-up, while realty is seeing selling pressure at higher levels. Banking is seeing unwinding of long positions and upside seems to be capped in the short-term.

A NEW LIFE IS ALWAYS STARTS WITH A REVOLUTION

its seems to me after long days hard works i am feeling nice to be with me. its only a new creative step that can makes the difference.


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