Golden Moments to Pick Valuable Gold Stocks ! Don't miss it!

Name of stocks to pick: 1. Radico Khaitan 2. Alok Industries 3. JP
Associates 4. Inox 5. Noida Toll Bridge 6. Aban Offshore

While the correction has been deep and painful, there is still room to
make money in select stocks. It has been a sharp knock for all the
midcap or smallcap stocks. But there are still some very interesting
stocks to pick up.

Radico Khaitan is one of them, with a current market price around Rs
130. The stock has corrected nearly 45%, from its all-time highs or
52-week high, of around Rs 220. Reliance Capital has bought nearly 37.67
lakh shares, which is around 4% stake, at a value of around Rs 150. So,
one is getting around 15% discount to the level, which Reliance Mutual
has bought into.

Alok Industries is another stock, where the stock has corrected nearly
25%, from its 52-week high of around Rs 110. The most interesting thing
is that the company has issued warrants to the promoters at Rs 102 per
share, which is again a 15% discount to the prevailing market price.

JP Associates is another stock, where the current market price is
hovering around Rs 400. The stock has corrected nearly 21%, from its
52-week high, of around Rs 510. There has been a bullish brokerage
report on the stock. Merrill Lynch's target is at Rs 530 per share.
Merrill Lynch reiterated buy on value creation via subsidiary JP
Infratech & Power.

Inox is another stock, which has seen correction. The stock has
corrected 30%, from a 52-week high, of around Rs 242. Again, Reliance
Capital has bought nearly 43 lakh shares or nearly 5% stake at Rs 143
per share on an average.

Noida Toll Bridge, where the stock had seen exceptional run up, has
corrected 28% from its 52-week of around Rs 85. India Infoline's price
target is at Rs 107.

Saregama is another very interesting stock, which it has corrected
nearly 34%, from its 52-week high of around Rs 388. It is now trading at
around Rs 250. Reliance MF had bought nearly 7% stake at Rs 250 per
share in September 2007.

Aban Offshore has corrected nearly 25%, from its 52-week high, of around
Rs 5,416. Goldman Sachs has reiterated buy with target of Rs 5,400.

CRITICAL LEVELS FOR INDEX ON 21 JAN 08

FOR INTRADAY TRADING ON  21 JAN  , NIFTY INDEX HAS INITIAL  SUPPORT AROUND 5705   LEVELS  BREACHING OF THIS SUPPORT MAY TAKE NIFTY  TO  MAJOR SUPPORT  LEVELS AT 5677. HOWEVER IF THIS IS BREACHED,  THEN   EXPECT  NIFTY  TO   SLIDE   TOWARDS   5595   &  THEN TO 5515  LEVELS   WHICH  IS   A VERY STRONG BOUNCE BACK POINT  . ON THE UPPER SIDE , IT MAY FIND  INITIAL  RESISTANCE  AT 5724   BREACH OF WHICH CAN TAKE NIFTY TO 5750  ABOVE  WHICH   NIFTY CAN TEST 5783  OR  EVEN 5909 LEVELS

Stock trading works how? Some Tips are

Trade = Buy or Sell

To “trade” means to buy and sell in the jargon of the financial markets. How a system that can accommodate one billion shares trading in a single day works is a mystery to most people. No doubt, our financial markets are marvels of technological efficiency.

Yet, they still must handle your order for 100 shares of Acme Kumquats with the same care and documentation as my order of 100,000 shares of MegaCorp.

You don’t need to know all of the technical details of how you buy and sell stocks, however it is important to have a basic understanding of how the markets work.
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If you want to dig deeper, there are links to articles explaining the technical side of the markets.

Two Basic Methods

There are two basic ways exchanges execute a trade:

    * On the exchange floor
    * Electronically

There is a strong push to move more trading to the networks and off the trading floors, however this push is meeting with some resistance. Most markets, most notably the NASDAQ, trade stocks electronically. The futures’ markets trade in person on the floor of several exchanges, but that’s a different topic.

Exchange Floor

Trading on the floor of the New York Stock Exchange (the NYSE) is the image most people have thanks to television and the movies of how the market works. When the market is open, you see hundreds of people rushing about shouting and gesturing to one another, talking on phones, watching monitors, and entering data into terminals. It could not look any more chaotic.

Yet, at the end of the day, the markets workout all the trades and get ready for the next day. Here is a step-by-step walk through the execution of a simple trade on the NYSE.

1. You tell your broker to buy 100 shares of Acme Kumquats at market.
   
   
2. Your broker’s order department sends the order to their floor clerk on the exchange.
   
   
3. The floor clerk alerts one of the firm’s floor traders who finds another floor trader willing to sell 100 shares of Acme Kumquats. This is easier than is sounds, because the floor trader knows which floor traders make markets in particular stocks.
   
   
4. The two agree on a price and complete the deal. The notification process goes back up the line and your broker calls you back with the final price. The process may take a few minutes or longer depending on the stock and the market. A few days later, you will receive the confirmation notice in the mail.

Of course, this example was a simple trade, complex trades and large blocks of stocks involve considerable more detail.

Electronic Trading

In this fast moving world, some are wondering how long a human-based system like the NYSE can continue to provide the level of service necessary. The NYSE handles a small percentage of its volume electronically, while the rival NASDAQ is completely electronic.

The electronic markets use vast computer networks to match buyers and sellers, rather than human brokers. While this system lacks the romantic and exciting images of the NYSE floor, it is efficient and fast. Many large institutional traders, such as pension funds, mutual funds, and so forth, prefer this method of trading.

For the individual investor, you frequently can get almost instant confirmations on your trades, if that is important to you. It also facilitates further control of online investing by putting you one step closer to the market.

You still need a broker to handle your trades - individuals don’t have access to the electronic markets. Your broker accesses the exchange network and the system finds a buyer or seller depending on your order.

Conclusion

What does this all mean to you? If the system works, and it does most of the time, all of this will be hidden from you, however if something goes wrong it’s important to have an idea of what’s going on behind the scenes.

Stock tips to buy stocks

It is very difficult to try and determine what company is going to do tomorrow or next week, even next month because you simply can’t account for the human condition. However, you can take a look at the future goals and aspirations of a company to determine where they’ll likely be in the next quarter or two or even the next year.

This is similar to the area of human psychology (the two areas, psychology and trading, are very much related) where psychologists can’t predict what one particular person will do tomorrow or the next day or maybe even next month. What they can do, however, is determine what a large group of people are likely to do in the future. They can also identify and distinguish certain patterns of human activity that are true in the general situation of a large group of people but that don’t necessarily apply to one particular person.

The same thing applies here, you can try to determine what a company is likely to do in the next year or two and then invest accordingly, even if you aren’t sure what they are going to do next week. Because of this there is no reason to be concerned about any small fluctuations in the stock that you are investing in as it is most likely going to even out in the future.

Short Term Stock Trading

Sometimes in trading, some people often experience 20% - 30% pullbacks but it doesn’t bother most of the professional traders since they know that the stock will come back and end up where they think it will in the next year or so.

This is a really important tip and is what separates the professionals from the amateurs because the professionals know to ride out the slight dips along the road while the amateurs get scared and pull out too early losing a ton of money.

What is normal stock market cycle

                               What is normal stock market cycle

Most bull (up) market cycles last two to four years and are followed by a recession or bear (down) market and eventually another bull market in common stocks.

In the beginning phase of a new bull market, growth stocks are usually the first sector to lead the market and make new price highs. Heavy basic industry groups such as steel, chemical, paper, rubber, and machinery are commonly more laggard followers. Young growth stocks will usually dominate for at least two bull market cycles. Then the emphasis may change for the next cycle, or a short period, to turnaround or cyclical stocks or newly improved sectors of the market, such as consumer growth stocks, over-the-counter growth issues, or defense stocks that sat on the sidelines in the previous cycle.

Last year's bloody bums become next year's heroes. Chrysler and Ford were two such spirited turnaround plays in 1982. Cyclical and turnaround opportunities led in the market waves of 1953-1955, 1963-1965, arid 1974-1975. Papers, aluminums, autos, chemicals, and plastics returned to the fore in 1987. Yet, even in these periods, there were some pretty dramatic young growth stocks available. Basic industry stocks in the United States frequently represent older, more inefficient industries, some of which are no longer internationally competitive and growing. This is perhaps not the area of America's future excellence.

Cyclical stocks' price moves tend to be more short-lived when they do occur, and these stocks are much more apt to suddenly falter and encounter disappointing quarterly earnings reports. Even in the stretch where you decide to buy strong turnaround situations, the annual compounded growth rate could, in many cases, be 5% to 10%.

Requiring a company to show two consecutive quarters of sharp earnings recovery should put the earnings for the latest twelve months into, or very near, new high ground. If the 12 months earnings line is shown on a chart, the sharper the upswing the better. This will make it possible in many cases for even the "old dog" about-face stock to show some annual growth rate for the prior five-year time period. Sometimes one quarter of earnings turnaround will suffice if the earnings upswing is so dramatic that it puts the 12 months ended earnings line into new highs.

How to Weed Out the Losers in a Group

When you investigate a specific industry group, using the five-year growth criteria will also help you weed out 80% of the stocks in an industry. This is because the majority of companies in an industry have lackluster growth rates or no growth at all.

When Xerox was having its super performance of 700% growth from March 1963 to June 1966, its earnings growth rate averaged 32% per year. Wal-Mart Stores, a discount retailer, sported an annual growth rate from 1977 to 1990 of 43% and boomed in price an incredible 11,200%. Cisco Systems growth rate in October 1990 was an enormous 257% per year and Microsoft's was 99% in October 1986, both before their long advances.

The fact that an investment possesses a good five-year growth record doesn't necessarily cause it to be labeled a growth stock. Ironically, in fact, some companies called growth stocks are producing a substantially slower rate of growth than they did in several earlier market eras. These should usually be avoided. Their record is more like a fully matured or nearly senile growth stock. Older and larger organizations frequently show slow growth.