INTELLECTUAL TRADING

                Post Demonetization Sector  Report : It is always darkest before the dawn!         by IDBI DIRECT                                                DOWNLOAD

Conspiracy theories normally accompany all big-game changing events. The decision of the Modi government to demonetise Rs 500 and Rs 1,000 notes, from the midnight of November 8, 2016, is one such event. It is now being said that a section of the population knew in advance that demonetisation was coming and high value notes of Rs 500 and Rs 1,000, would no longer have any value. Anecdotal evidence in the form of WhatsApp forwards showing massive deposits made into banks before the demonetisation move was carried out, has been offered on this front. This suspicion becomes even more pronounced when one looks at the jump in deposits held by banks as of end September 2016, in contrast to earlier periods. Look at Figure 1, which plots out the quarterly increase in bank deposits, over nearly 15 years. Figure 1 This Figure 1 clearly shows that the increase in bank deposits between end of June 2016 and end of September 2016, was the maximum, in absolute terms, since March 2002.

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The se days people are much more fascinated towards Mechanical Models aka Auto Buy/Sell Signal Softwares and Autotrading Softwares. However at some point of time they do find themselves still loosing in this markets even after adopting various strategies. Here are some points which explains why a trader fails by adopting a trading system with half baked knowledge 1)You think Buy Sell Indicators are predictive in nature. However in reality the mathematical indicators aka Auto Buy or Sell Signals dont have brain to predict the randomness. And eventually you will fail at some point of time. 2)You want a Buy/Sell Indicator that makes money 3)You want a Best Intraday Buy/Sell Indicator and you dont know how to gauge a Buy/Sell Indicator. 4)You are still trading with subjective bias like Trading Patterns, Elliot Wave,Gann, Fibonnaci, Divergence etc along with your buy/sell indicators. 5)You are jumping from one stock to another stock randomly while following the Buy/Sell Trading

On November 8, 2016,  Modi announced the decision of the government to demonetise notes of Rs 500 an Rs 1,000 . Several economists have made suggestions since then on what the prime minister Narendra Modi, should be doing next to  tackle the huge amount of black money in the country . One suggestion has been made by Soumya Kanti Ghosh, the group chief economic adviser of the State Bank of India (SBI), the largest bank in the country. In a column in the Business Standard titled  Demonetisation and Note Burning  and dated November 15, 2016, Ghosh wrote:  "We suggest that this demonetisation may be carried out over periodic intervals with the surprise element and the government makes its intention clear on that. In such an eventuality, people will be discouraged to hold cash." What Ghosh is essentially saying here is that the government should carry out regular demonetisation of currency in the years to come. This basically means that the government should regularly make o

How the Move Towards a Cashless Economy will Impact Your Stocks — As the demonetisation initiative encourages the use of plastic and electronic money, cash transactions will become less and less common. This, analysts reckon, will have its share of benefits for the economy, apart from boosting tax coffers. The transition to a cashless economy will also improve savings in financial assets which will benefit intermediaries such as banks, NBFCs, microfinance and digital money operators. Here’s a low-down on the impact of demonetisation on the top 10 sectors of the economy, according to ICICI Securities. AUTO Demand is likely to dip for a couple of months for two-wheelers, but passenger vehicles and tractors will be less impacted. In the two-wheeler industry, around 35-45% purchases are made via financing, while the rest are though banked cash, or are simply “unaccounted“. But in the passenger vehicles segment, close to 75%-80% of sales are either through financing, or even down

Bogus Loan Entry Popular method people use to convert black money to white is by showing bogus loan entry. Modus operandi under this case will be people give black money to friend or relative and take a cheque from them. This is kind of bogus loan entry to convert black money to white. In some cases people give repayment of this loan by giving back cheque. People doing this must understand that Income tax department is watching every transaction and tax payer have to prove genuineness of every transaction. Formulation of Trust & doing Charity Another popular way used by people to convert black money to white is by formulating trust for social cause. They make executive bodies of own people in trust sometimes illiterate people like driver cook etc. They donate black money to this trust as charity to convert black money. On paper it is charity but off the shelf it is conversion of black money to white. Showing Income as Agriculture Income Another popular way of co

Monthly Income Plans (MIPs) are debt oriented mutual funds, which invest a small part of the fund (15-25 %) in equities. MIPs offers regular income in the form of periodic (monthly, quarterly, half-yearly) dividend payouts. Investors can invest in MIPs with two options – [1] Monthly Income Plans with Growth Option:  Here, the money is not paid out to you in forms of dividends; instead it keeps growing in mutual funds. Investor will get accumulated amount with all the profits at the time of redeeming the fund.  [2] Monthly Income Plans with Dividend Option:   – Suitable for Monthly Tax Free Income Dividend Option is typically availablewith  monthly dividend  or  quarterly dividend payout option . Mutual funds with each option is separately listed on the stock exchange.This option is suitable for investors seeking periodic income in the form of dividend. The distribution of dividend by AMC is decided based on net surplus. Practically what this means is that if the NAV of the fu