Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

All about Asset Allocation.

All about Asset Allocation.
by 5paisa Research Team 06/10/2021

Asset allocation decision involves deciding the percentage of investable funds to be placed in stocks, bonds and cash equivalents.

The crucial decision every investor is required to take while investing is on asset allocation. There are various asset classes such as equities, bonds, real estate, cash and also foreign investments, etc. available to resident Indian investors. It has been a well-established fact that asset allocation is primarily responsible for portfolio performance more than stock selection and timing issues. Asset allocation is the key to portfolio returns and hence it is of supreme importance.

The asset allocation decision involves deciding the percentage of investable funds to be placed in stocks, bonds and cash equivalents. It is the most important investment decision made by investors because it is the basic determinant of the return and risk taken. This is a result of a well-diversified portfolio, which we know is the primary lesson of portfolio management. Therefore, asset allocation serves the purpose of diversification among different asset classes.

According to analyses, asset allocation is closely related to the age of an investor. This involves the so-called life-cycle theory of asset allocation. This makes spontaneous sense because the needs and financial positions of workers in their 50s should differ, on average, from those who are starting their investment journey in their 20s.

Generally, individuals who approach retirement become more risk-averse and hence they should allocate fewer amounts in percentage terms to equity and equity-related instruments in their portfolio.

Types of Asset Allocation:

  1. Strategic Asset Allocation: It is essentially a long-term investment plan. It is the structuring of the individual asset classes within a portfolio to meet long-term investment objectives. No switches between securities or asset classes are normally done in the short term. Defined exposures are made to different assets providing for some minor adjustments within the asset class without shifting the focus of the portfolio. A right allocation among different classes of assets shall ensure that investors’ investment objectives are met.

  1. Tactical Asset Allocation: Tactical asset allocation is beneficial when strategic asset allocation fails i.e., in this type from time to time, asset allocation is changed when market conditions create opportunities for investors in order to gain extra returns. Tactical asset allocation is not static and rigid like strategic asset allocation. This allocation adopts the strategy by occasionally deviating from long term strategic asset allocation to take full advantage of market conditions.

  1. Dynamic Asset Allocation: This allocation technique seeks to take advantage of short-term movements and opportunities in the market. You continuously adjust your asset allocation mix depending upon market conditions.

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These stocks are likely to be in focus on October 7.

Stocks In Focus
by 5paisa Research Team 06/10/2021

The equity markets ended in red on Tuesday, trading flat in the first half of the trading session.

BSE's flagship index, Sensex, dipped 0.93% or 555.15 points to settle at 59,189.73 levels whereas NSE's benchmark index, Nifty, squeezed 0.99% or 176.30 points to end at 17,646 levels. All the sectoral indices ended the session in red with the BSE Metal index being the weakest sector, losing up to 2.98%. In the broader markets, BSE Smallcap and Midcap indices slipped 0.5-1.2 %.

Keep a watch on these stocks on Thursday.

Voltas - The announced its ‘Grand Mahotsav Offer 2021’ for the upcoming festive season for its customers across India. Encouraging people to upgrade to energy-efficient and technologically advanced air conditioners, Voltas has introduced a special Exchange offer during this festival.

TCS - The company announced that its long-standing partnership with State Bank of India (SBI) has been extended for another five years as the bank embarks on its next leg of growth based on the three pillars of technology, resilience and people. The extended partnership builds on a two-decades long relationship between the two partners, that began with the implementation of the TCS BaNCS™ core banking solution in 2001, the largest such transformational program of that era.

Bosch - The stock has caught investors' attention as huge spurt in volumes were witnessed in Wednesday's trading session. Breaking the current resistance level on charts, the stock has gained up to 12% while the benchmark indices were trading in red.

Reliance Industries - The stock has hit its previous 52-week high price and made a fresh high of Rs 2,623 per share. Despite of hitting a new 52-week high, the stock traded downward towards the end of Tuesday's trading session and ended 2.08% lower.

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These stocks see huge volume burst in the last leg of the trading session.

These stocks see huge volume burst in the last leg of the trading session.
by 5paisa Research Team 06/10/2021

Coromandel International, Cyient and Procter & Gamble Hygiene have witnessed volume burst in the last 75-minutes of trade.

As the saying goes, the first and the last hour of each trading session is the most important and active in terms of price and volume. More so, the activity in the last hour is said to be of utmost importance because most of the pro traders and institutions are active at this time. Hence, when a stock sees a good spike in volume in the last leg of trade along with price rise it is said to be the pro and institutions have a keen interest in the stock. Market participants should keep a close watch on these stocks as they can witness good momentum in the short-medium term.

So, based on this principle we have shortlisted three stocks, which have witnessed volume burst in the last leg of trade along with price rise.

Coromandel International: The stock of Coromandel jumped nearly 4.5% and settled near the day’s high. However, the most striking fact is that the stock has witnessed a majority of the volume activity in the last 75-minutes of the trading session. Total traded volume for the session was over 12 lakh shares and 40% of the volume activity was seen in the last 75-minutes. Furthermore, the price too witnessed a sharp spike in the last 75-minutes, which indicates that there was a lot of interest seen in the stock. Hence, market participants can keep a close watch on this stock.

Cyient: The stock of Cyient was seen outperforming the markets as it has advanced 1.92%. The stock witnessed volume burst in the last 75-minutes of trade along with price rise. The stock has witnessed nearly 43% volume of the day in the last 75-minutes. Keep a watch on this stock.

Procter & Gamble Hygiene and Health Care: The stock closed near its day high and outperformed the benchmark indices on Wednesday. The stock witnessed a price and volume spurt in the last 75-minutes of the trading session, where more than 80% of the volume was traded. Considering the robust volume and price activity witnessed in the last 75-minutes of trade, don’t miss out on this stock.

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Closing Bell: Market snaps two-day winning streak; Sensex slumps by 555 points, Nifty ends below 17,700.

Closing Bell: Market snaps two-day winning streak; Sensex slumps by 555 points, Nifty ends below 17,700.
by 5paisa Research Team 06/10/2021

At the closing bell, Sensex closed down by 555.15 points or 0.93% at 59,189.73, and the Nifty 50 slumped by 176.30 points or 0.99% at 17,646.

Domestic equity benchmarks snapped the two-day winning momentum on Wednesday, October 6, 2021, due to loss incurred in global markets as oil prices hit the highest level in seven years, and concerns about rising inflation.

At the closing bell, Sensex closed down 555.15 points or 0.93% at 59,189.73, and the Nifty 50 slumped by 176.30 points or 0.99% at 17,646. On the bourses today, around 1291 shares have advanced, 1754 shares declined, and 115 shares are unchanged.

Most of the sectoral indices ended in the red with capital goods, metal, IT, pharma, realty, auto and PSU Bank indices falling by 1-3%. BSE midcap and smallcap indices shredded 0.5-1.2% in Wednesday's trading session.

Top losers in Wednesday's trading session include Hindalco Industries, SBI Life Insurance, IndusInd Bank, JSW Steel and Tata Steel. Among the top gainers were, Tata Consumer Products, ONGC, UPL, Britannia Industries and HDFC Bank.

According to markets experts, weak global markets which resulted in profit booking in IT and metals stocks led domestic benchmark indices to trade in red, cutting their early gains. Also, the rise in crude prices is spooking the market, while inflation is affecting US bond yields.

On the major events of the day, the RBI commenced its three-day MPC meeting in which the central bank is expected to keep rates unchanged. But will it announce measures to gradually pump out liquidity from the economy, is the topic of discussion from an investment point of view.

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Top swing trading ideas you should not miss.

Top swing trading ideas you should not miss.
by 5paisa Research Team 06/10/2021

Best Swing Trading ideas based on price and volume percentage surge. Just Dial, Radico Khaitan and Symphony.  

Price and volume are two of the most prominent inputs used by traders across the world while swing trading. When used in isolation, they reveal very little but when used in conjunction, they help us to sort the wheat from the chaff. So, this swing trading system is based on the deadly combination of price and volume percentage surge, which helps us to discover high probability swing-trading candidates.

So, here is the list of stocks that fulfil the criteria of volume and price surge and as a result, they flash in our swing-trading system:

  1. Just Dial: The stock gained 2.77% on Wednesday, as a result, it not only outperformed the frontline gauge but also the broader markets. The stock’s daily range was thrice its 10-day average range. In addition to this, the volume for the day was greater than its previous trading session and in fact, were the highest since September 03. As a result, the stock met the norms of the swing trading system. In the near term, the stock has the potential to touch levels of Rs 1050, while on the downside the support is seen around levels of Rs 985.

  1. Radico Khaitan: The stock jumped 5% on Wednesday. The stocks' daily range on Wednesday was almost twice its 10-day average range. Additionally, the volume for the day was greater than its previous trading session and was higher than the 10 and 20-day average volume. With price and volume criteria met, this stock looks ripe for a good up-move in the coming days, hence, swing traders can keep this on the radar for up-move towards the four-digit mark, while immediate support is seen around Rs 925.   

  1. Symphony: The stock had gained nearly 2.5% on Wednesday. Interestingly, the stock has met the criteria of volume and price surge on Wednesday. The stock has witnessed a breakout of six-days consolidation pattern along with a huge spike in the volumes. The volumes were higher than its previous trading session and it was higher than 10 and 30-days average volume. In addition to this, the daily range of the stock was greater than its 10-days average range. As a result, the stock has met the criteria of our trading system, Swing traders should not miss this stock as it can touch levels of Rs 1130 in the near term followed by Rs 1165 in the medium term. On the downside, support is seen around Rs 1055 levels.

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Zee says open to rival offers as founder Chandra questions Invesco’s intent

by 5paisa Research Team 06/10/2021

Could the bitter battle between Zee Entertainment Enterprises Ltd and some of its minority shareholders get any worse? Well, if the latest news reports are any indication, it possibly could. 

A Bloomberg report says that Zee would be open to rival offers even though it thinks that the planned merger with the Indian unit of Sony Corp is the best deal on the table. 

“This is the best deal for shareholders at this point in time as we are interested in maximization of values for all our stakeholders including shareholders, the company and consuming public," Zee chairman R. Gopalan said in a Bloomberg Television interview, adding that the company is open to “consider if there is another deal on the table”. 

What have Zee’s minority investors done to thwart the merger with Sony?

US asset manager Invesco, through its funds Invesco Developing Markets Fund and OFI China Global LLC, has called for a meeting of the company’s shareholders. After Zee refused to hold the meeting, the two shareholders approached the Bombay High Court, where the entertainment company, in turn, filed a suit, asking that the notice for a meeting be declared illegal. 

So, do Gopalan’s latest comments indicate Zee is climbing down?

That may appear to be the case, at least prima facie. But in fact, Zee is unlikely to back away from the deal with Sony, as the debt-laden company is not likely to find any other suitor of a comparable size, at least in the foreseeable future. 

Moreover, Zee Group founder Subhash Chandra has questioned the minority shareholders on their stand. “No matter who runs Zee but the company, to which I’ve and many of my friends have given their blood and sweat for the past 30 years, should be in the hands of someone under whose leadership the organisation should prosper and shareholders should be benefitted since I don’t have any profit or loss associated with this,” Chandra has said.  

Chandra also raised doubts over Invesco’s intentions. “Invesco is a good investor but in this case they are not revealing that what they will do after taking Zee, and in whose hands management will go?”

“You want to remove Punit Goenka? Okay, fine but what next? Have you done any deal with someone? The six directors given by them - what's their background? Do they have any relation with any particular company that wants to take over? Hence, Invesco should come out transparently and openly, and let the shareholders decide - whether they want to take the deal of Invesco or want to go with Sony's deal,” he said. 

What really are the demands by the minority shareholders?

The Invesco funds want the ouster of Zee board members including chief executive officer Punit Goenka, who is leading the talks with Sony. About 53% of the merged entity would be owned by Sony and the rest by Zee’s holders, according to the non-binding agreement signed last month.

What are the contours of the deal?

As part of the deal, unanimously agreed to, in principle, by the Zee board, Sony Pictures Networks India will effectively hold a 52.93% stake in the merged entity, while the remaining 47.07% will remain with Zee shareholders. 

Why is Sony the majority owner here?

This is because SPN India, Sony’s India entertainment arm, is investing an additional $1.5 billion, or Rs 11,615 crore, to capitalise the merged entity. This money will allow the new entity to grow its business further. Had Sony not infused more cash, Zee shareholders would have held a 61.25% stake. 

The merged entity will effectively own the biggest suite of entertainment content services in India, bypassing Disney India and Star India. It will also be bigger than Viacom 18, the joint venture of billionaire Mukesh Ambani’s Network 18 Group and US-based ViacomCBS.

Interestingly, Sony and Viacom18 were engaged in merger discussions but scrapped the talks last year as the Ambani-led group reportedly wanted a majority stake in the combined entity.

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