mcx

 

As on 2024-01-02 07:21

Symbol	Last	Change	Change %	Close	High	Low	Last Trade
MCX Gold	63,322.00	+2.00	+0.00%	63,320.00	63,379.00	63,181.00	02-Jan 07:21
MCX Gold Mini	63,310.00	+13.00	+0.02%	63,297.00	63,335.00	63,154.00	02-Jan 07:21
MCX Silver	74,435.00	+45.00	+0.06%	74,390.00	74,435.00	74,220.00	02-Jan 07:21
MCX Silver Mini	74,470.00	+63.00	+0.08%	74,407.00	74,529.00	74,163.00	02-Jan 07:21
MCX Silver Micro	74,450.00	+57.00	+0.08%	74,393.00	74,450.00	74,225.00	02-Jan 07:21
MCX Crude Oil	6,026.00	-1.00	-0.02%	6,027.00	6,036.00	5,967.00	02-Jan 07:21
MCX Natural Gas	214.20	+0.30	+0.14%	213.90	214.70	209.50	02-Jan 07:21
MCX Copper	731.35	+0.25	+0.03%	731.10	731.85	729.40	02-Jan 07:21
MCX Aluminium	212.00	-0.10	-0.05%	212.10	212.70	211.25	02-Jan 07:21
MCX Aluminium Mini	211.95	-0.10	-0.05%	212.05	212.60	211.40	02-Jan 07:21
MCX Lead	182.70	-0.05	-0.03%	182.75	183.05	182.60	02-Jan 07:21
MCX Lead Mini	183.25	+0.10	+0.05%	183.15	183.30	182.95	02-Jan 07:21
MCX Zinc	233.20	+0.05	+0.02%	233.15	233.85	232.60	02-Jan 07:21
MCX Zinc Mini	233.20	+0.15	+0.06%	233.05	233.70	232.55	02-Jan 07:21
MCX Mentha Oil	928.20	+0.20	+0.02%	928.00	935.90	927.00	02-Jan 07:21
Mcx Bullion Index	16,409.00	-1.00	-0.01%	16,410.00	16,430.00	16,371.00	02-Jan 07:21

Personal Finance Rules

Rule of 72 (Double Your Money)

Rule of 114 (Triple)

Rule of 144 (Quadruple) 

Rule of 70 (Inflation)

4% Withdrawal Rule

100 - Minus Age Rule

10, 5, 3 Rule

50-30-20 Rule

3X Emergency Rule

40℅ EMI Rule

Life Insurance Rule

*Rule of 72*

No. of yrs required to double your money at a given rate, U just divide 72 by interest rate

Eg, if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs

At 6% rate, it will take 12 yrs

At 9% rate, it will take 8 yrs

*Rule of 114*

No. of years required to triple your money at a given rate, U just divide 114 by interest rate.

For example, if you want to know how long it will take to triple your money at 12% interest, divide 114 by 12 and get 9.5 years

At 6% interest rate, it will take 19yrs

*Rule of 144*

No. of years required to quadruple your money at a given rate, U just divide 144 by interest rate.

For eg, if you want to know how long it will take to quadruple your money at 12% interest, divide 144 by 12 and get 12 yrs.

At 6% interest rate, it will take 24yrs

*Rule of 70*

Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value. 

Inflation rate of 7% will reduce the value of your money to half in 10 years.

*4% Rule for Financial Freedom*

Corpus Reqd- 25*Annual Expenses

Eg- annual expense is 500,000 then corpus required to retire is 1.25 cr.

Put 50% into fixed income & 50% into equity.

Withdraw 4% every yr, i.e.5 lac.

This rule works for 96% of time in 30 yr period

*100 minus your age rule*

This rule is used for asset allocation. Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities

Age 30

Equity : 70%

Debt : 30%

Age 60

Equity : 40%

Debt : 60%

*10-5-3 Rule*

One should have reasonable returns expectations

10℅ Rate of return - Equity / Mutual Funds

5℅ - Debts ( Fixed Deposits or Other Debt instruments) 

3℅ - Savings Account

*50-30-20 Rule - Allocation*

Divide your income into

50℅ - Needs - Groceries, rent, emi

30℅ - Wants - Entertainment, vacations, etc

20℅ - Savings - Equity, MFs, Debt, FD, etc

Atleast try to save 20℅ of your income.

You can definitely save more

*3X Emergency Rule*

Always put atleast 3 times your monthly income in Emergency funds for emergencies such as Loss of employment, medical emergency, etc. 

3 X Monthly Income

You can have around 6 X Monthly Income to be on a safer side

*40℅ EMI Rule*

Never go beyond 40℅ of your income into EMIs. 

Say you earn, 50,000 per month. So you should not have EMIs more than 20,000 .

This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances. 

*Life Insurance Rule *

Always have Sum Assured as 20 times of your Annual Income 

20 X Annual Income

Say you earn 5 Lacs annually, u shud atleast have 1 crore insurance by following this Rule

Are Buybacks really a good thing?

The premise is simple. When a company resorts to a buyback, it's taking out cash from its coffers and repatriating it to some of its shareholders. The shareholders, in turn, are expected to sell part of their holding back to the company. But the hope is that the compensation will serve them well in the short run. So in effect, a buyback is a “cash for shares” arrangement. And unlike a dividend, where the company repatriates its profits to all owners on a proportional basis, a buyback program is conditional. You can choose to tender your shares back to the company or you could simply choose to opt-out. The onus is on you as a shareholder.

And academics will tell you a company will resort to such a program when it has excess cash it can’t put to good use. For instance, TCS recently announced that it was planning to repurchase close to 5 crore shares (1.42% of the total outstanding shares) at ₹3,000 apiece. They made this offer when the stock price was trading at ₹2735, 8.5% lower than the offer price. And the story goes that the company was buying back shares in a bid to funnel money from the IT firm to Tata’s other cash strapped ventures. After all, if Tata Sons — majority shareholders in TCS, were to tender their shares during the buyback offer, they’d walk away with a lot of money — money they could use to help out other Tata companies that are bleeding cash right now. So, a buyback makes sense.

But sometimes there’s an ulterior motive. While in theory buybacks may be a neutral exercise, in the real world, they can have other implications. In 2012, Reliance Industries bought back shares worth ~₹3,900 crore from public shareholders through a year-long repurchase program. Now the original target was to buyback shares worth ₹10,000 crores. They didn’t quite get there. But the scheme was largely heralded as a success since the company’s shares were underperforming at the time. Just a few months earlier, Reliance was trading below ₹700. But when management decided they were going to buyback shares at ₹870, it was a tacit admission that they believed the stock was grossly undervalued. Eventually, the price breached ₹900 and analysts hypothesized that Reliance bought back shares from public investors as a show of confidence — implying that the promoters had faith in the company's long term business potential.

So in the end, Reliance got what it wanted. Shareholders were able to sell part of their holdings at a premium. And those that believed in Mukesh Ambani’s vision were handsomely rewarded.

But not all buybacks go according to plan. Think BHP Billiton, a company based in the UK and the world’s largest miner. Back in 2011, the company was riding a purple patch like no other — double-digit earnings growth, operating cash flows of $12 billion, a hefty return on capital employed. It had everything going for it. So when the company decided the best way to optimize value was to initiate a massive $10 billion buyback program, nobody thought much of it. Many shareholders were happy to walk away with the cash and existing shareholders — who now held a larger part of the company were excited about future prospects.

However, soon enough, the commodity cycle turned. Prices of iron, copper, and coal started tanking. And since BHP largely dealt with these commodities, their business prospects soured almost overnight. While those that had tendered their shares during the buyback had something to cheer about, existing shareholders who believed in the company's long term potential were left devastated. One year following the repurchase announcement, BHP’s Total Shareholder Return (TSR) had dropped to -22%. 4 years on, BHP’s TSR was still languishing at -26%.

But what if they hadn’t repatriated this money?

After all, in a downcycle, you really want to be preserving cash as opposed to binging on boatloads of debt. But since the company had already made its bed, it had to sleep in it. There was no way out.

But at least you could argue that BHP couldn’t see it coming. Some companies commit to buybacks even when they are fully aware there are better avenues to deploy cash.

For instance, consider Boeing. The company’s stock has been struggling for the past couple of years. And in a series of unfortunate events, two of its aircraft malfunctioned midair, sending hundreds of passengers plummeting to their death. When the second aircraft crashed, airlines the world over were forced to ground all Boeing 737 Max airplanes (the malfunctioning aircraft) pending an investigation. And when Boeing finally realized the fallout was too much to contain, they announced that the company would halt the production of all 737 Max airplanes.

An eventual investigation, however, would reveal that Boeing had cut several corners in a bid to get the aircraft flying on time. Technical drawings for the model were being churned out at double the pace, workers from other departments were pulled in for the Max project, and timely delivery took precedence over quality. The engineers were also instructed to not make any changes that would necessitate additional training for the pilots. The company wanted to keep the cost low and get it done ASAP.

All this would imply that Boeing had its finances stretched. But one stark statistic has come to demolish this claim and symbolize the company’s priorities: Over the past six years, Boeing spent $43.4 billion on stock buybacks, compared with $15.7 billion on research and development for commercial airplanes. The board even approved an additional $20 billion buyback in December 2018, only two months after the first crash — although they were forced to scrap the idea later.

Today, the company’s stock price languishes at $169, half its price last year.

And so, sometimes you have to introspect and ask yourself —Do buybacks create value for shareholders or do they destroy value?

What do you think?

Market and Your Ego

During trading most of the newbie traders and part time traders face fear and greed. So why do we get fear and greed ? The origin of fear and greed is ego. The need to be right always trigger our ego, once we take the trade. Then ego makes sure that we wont book profit/loss in time. Mostly "type A" personalities face this problem often. They want to come first in everything they do and have a big ego. Most of them are unaware of their own ego.

How to handle it? Start doing small activities with out ego. It will reduce ego level slowly. When is the last time you played with a kid and let them wn with out hurting your ego? Also whenever fear/greed comes remind yourself, your ego is trying to take control of you. One emotion triggers another emotion always and at the end you only have to face the consequence. To become a profitable trader, the very first emotion you have to take charge is "ego". Please note there so many other parameters which decides the trader's success.

Special - Virtues Of Managing Wealth Smartly

Vighnaharta, the name says it all – Remover of the obstacle. To initiate a new beginning, we always first remember the Elephant God – Lord Ganesh. Lord Ganesh is known as the God of intellect and wisdom.

To make you understand the importance of financial management, let us remember a well-known story of Lord Kubera – who is known as the God of Wealth as per Hindu Mythology. They say a combination of money and power is most dangerous, as it corrupts the mind and ego of a person. Something similar happened in case of Lord Kubera, he was too proud of his wealth and wanted to show it off to the world. So, to teach him a lesson, Lord Shiva asked Lord Ganesh, to mild down his pride and ego. Lord Ganesh is also known as Lambodara – Huge bellied lord, ate everything and anything in no time at Kubera’s palace till the time he had nothing left to serve to his guest. This incident came as a shock to Kubera, and he understood that money can’t buy everything and hence, his perspective towards money changed.

 

With money, don’t lose perspective

 

Create wealth to create value, and not to satisfy your ego.

Always remember that wealth creation should come with a pre-determined objective.

Warren Buffett – one of the world’s most respected investor, lives a modest lifestyle despite his net worth of around $85 billion. He purchased a five-bedroom house in Omaha in 1958 for $31,500 and has lived there ever since. Buffett doesn't spend his money on electronics and reportedly doesn't carry a cell phone or have a computer at his desk.

Hence, if you dream of having load of riches to have a splashy lifestyle, use this festive season as an opportunity to think again. Look at those who have not only created wealth but also maintained it. Find out what drives them, their passions and by taking a cue or two use it to imbibe it in your own value system.

 

You define your wealth; your wealth does not define you

 

Be a more evolved person than just the money you own. Your wealth should not be the only one driving you. Just like Warren Buffet several billionaires around the world are known for their drive, their passion, their thinking and their innovation than just the zeros in their bank account.

Your value system should define how you can add value to others life rather than just earning money. Build on that – focus on a more evolved thinking and money will follow. There is a famous dialogue in the much-acclaimed Hindi movie – 3 Idiots, which roughly translates to “be capable and competent person and success and wealth will follow you no matter what”.

So, this Ganesh Charturthi, let go off the Kubera within you, focus on you capabilities and absorb these virtues to enlighten your wealth management techniques.

Top buy and sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitesh Thakkar for short term

Mitessh Thakkar of mitesshthakkar.com suggests buying Bajaj Auto with a stop loss of Rs 3,080, target at Rs 3,200 and Coal India with a stop loss of Rs 133, target at Rs 144.

The Indian stock market is expected to open flat after Nasdaq closed at record high. Asian markets were poised to track Wall Street’s tech fueled rally. Trends on SGX Nifty indicate a flat opening for the index in India with a 5 points loss.

In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:

Ashwani Gujral of ashwanigujral.com

Buy Zee Entertainment with a stop loss of Rs 164, target at Rs 178

Buy Bajaj Auto with a stop loss of Rs 3,100, target at Rs 3,220

Buy Tech Mahindra with a stop loss of Rs 718, target at Rs 745

Buy Eicher Motors with a stop loss of Rs 20,900, target at Rs 21,500

Buy Hindalco Industries with a stop loss of Rs 189, target at Rs 203

Sudarshan Sukhani of s2analytics.com

Buy UPL with a stop loss of Rs 487, target at Rs 497

Buy Divi's Labs with a stop loss of Rs 3,070, target at Rs 3,200

Buy Mindtree with a stop loss of Rs 1,150, target at Rs 1,185

Sell HDFC Life with a stop loss of Rs 600, target at Rs 580

Mitessh Thakkar of mitesshthakkar.com

Buy Bajaj Auto with a stop loss of Rs 3,080, target at Rs 3,200

Buy Coal India with a stop loss of Rs 133, target at Rs 144

Buy Escorts with a stop loss of Rs 1,140, target at Rs 1,185

Sell Tata Chemicals with a stop loss of Rs 298, target at Rs 280

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​ 

10 points to create wealth

By Vijay Kedia who turned Rs 10 lakh to 650 crore in 20 years* of investments at componding rate of 55% pa.He explained the same in this video https://www.youtube.com/watch?v=b53nE7tN0zE

In his talk he said 10 points that have helped him to avoid defeat in the market.

*1. Create a fixed income outside the market for your livelihood*: Never be dependent on the income from the stock market because it is volatile. He is applying margin of safety logic even before entering the market.

*2. Be informed and read a lot*: The market rewards you as per your perception. If you think investing is a gamble, then it is a gamble. If you think it is a business, then it is a business. Read a lot and be a maniac when it comes to reading; it will help you connect the dots.  Warren Buffett once held up stacks of paper and said he read "500 pages like this every day. That's how knowledge builds up, like compound interest."

*3.  Invest a part of your savings, not the earnings, into stocks*: So if you have decided to invest 25% of your savings in stocks, invest 12% to 15% as it is a risky business. Also you should only invest a certain amount based on your risk-taking capacity.

*4.  Don't trade and don't leverage*: Trading is a 24-hour business. Don't invest from borrowed money.Don't trade just because you see someone making money by trading.

*5. Invest only for five to 10 years; minimum time frame is five years*: rome was not built in a day. It takes time for a story to mature. I always invest in small caps that go on to become mid to large caps.Whenever I bought a small cap, people discouraged me. No one liked the stock. For two years the company went nowhere; after that it gave multibagger returns.

*6. Invest only with the best management and let it worry about the company*: If you invest with the best management, you don't have to worry. Management is playing golf, and we investors are worrying 24 hours about what will happen to the company, looking at the dollar, macro, etc. What is the use of being an investor? Let management worry because management has its prestige and its name at stake.
Good management in bad business is better than bad management in good business. Example: Indigo Airlines.

*7. Your investment belongs to the market and the profits belong to you*: As long as you are invested, the profits belong to the market. Don't spend just because the stock has risen because tomorrow stock prices can collapse.

*8. Book profits periodically*: Invest profits in buying a house which is very important.

*9. Keep a balanced mind*: Don't be happy in an up market, and don't be sad in a down market. Be physically, financially and mentally sound.He explains how one should avoid regret. He says a stock can go up after you sell it. Don't regret. The stock market is a place of regret. You make money, you regret. You lose money, you regret. You make less money, you regret. That is why it is very important to keep a balanced mind.

*10. Luck plays a crucial role. Do good karma*: Be a good human being. The stock market is a mind game. If you are doing good karma, it will come back to you.

How India Will be Impacted if US Hikes Rate for First Time

If the Fed hikes rates, some foreign investors are expected to book profit in their holdings in Indian shares and bonds; they will likely repatriate funds back to the US, where buying high interest rate bearing bonds will become an attractive bet.
The next two weeks will see a lot of high-volatility trading across financial markets. The ECB (European Central Bank) has come through with an easy money policy, which has, however, disappointed markets, which were hoping for even easier terms. The US Federal Reserve is expected to raise its policy rate for the first time in many years.
This divergent set of actions will impact forex rates. In turn that will alter trading patterns between countries, as the relative value of goods and services change. It might change the assessments of global GDP growth through the next financial year. The markets are already discounting such expectations.
The interest rate parity equation will also change in favour of a stronger dollar if the Fed does hike. The dollar (or any currency) plus interest yield in that currency should equal the euro (or any other currency) plus interest yield for a comparable instrument in the same time period. The interest yield rises on the dollar and it falls on the euro due to central bank actions. So, the dollar should get stronger to compensate.

In the last two weeks of December and early January as well, we often see reduced trading volumes. People go on holiday and this is financial year-ending for many FIIs. Volume reductions often leads to higher volatility. In this instance, the volumes are likely to be higher but the volatility will also be higher.
The dollar/rupee movements and the impact on Indian stocks will probably be in line with moves in other markets. If the Fed hikes the rate, the rupee will fall. There will also be accelerated selling of Indian stocks (the FIIs are already net sellers of Indian equity in this financial year). If the Fed doesn’t hike, the dollar will harden and there will be some bullish impact on Indian stocks.

The impact of a rate hike in the US on India will be limited because of strong fundamentals, In 2013, India saw $12 billion in outflows from May to September due to US rate hike worries. A record high current account deficit, double-digit inflation and record-low rupee led to large-scale destruction of shareholders’ wealth back then.
If Fed maintains status quo
If the Fed succumbs to market pressure and decides to not raise rates, global equity markets might rebound. If the Fed does not give a clear deadline or indication of when it wants to raise rates, we could see a bigger rally.

What are Interest Rate Futures ?

Just like any other Future instrument, an interest rate future is a financial derivative product. The way equity future price is based on stock price of that equity, an IRF price is also based on some underlying. In IRF, the underlying is an interest-bearing asset. The interest rate derivatives market is the largest derivatives market in the world. As an individual, when you take any sort of loan (be it housing loan or educational loan or investing your money in some Government or company fixed deposit), you are part of such interest bearing instruments. As a corporate whenever you raise money from the market by issuing bonds you are linked to these interest bearing instruments. Even institutions like Banks, Insurances etc have their portfolio invested in a money market which are impacted by these interest rate changes. Currently, Interest Rate Futures segment offers two instruments i.e. Futures on 10-Year Government of India Security and 91-day Government of India Treasury Bill.

- Bond Prices and how they move:

A Bond when issued for the first time by GOI, has a face value to it, which is basically the amount of money the issuer pays the holder of the Bond when the Bond matures. The face value of both the Bonds which are underlying in case of the IRF’s  (8.83% GOI 2023 and 8.40% GOI 2024)  is Rs.100.

Along with the face value, the other component is the coupon or interest amount that the holder of the Bond gets paid either annually or semi-annually. So, if you have invested Rs 100 at face value in an 8 % GOI Bond, maturing 10 years from now with a semi-annual coupon, you get Rs 4 (Rs 8/2, Rs 8 is 8% of Rs 100 invested) every 6 months for the next 10 years, and get back the Rs.100 on maturity after 10 years.

In summary, Bond prices are inversely related to interest rates in the economy, so:

--- If your view is that interest rates are going up, “Short” Interest rate futures (you profit because when interest rates go up, Bond prices come down).

--- If your view is that interest rates are going down, “Buy” Interest rate futures (you profit because when interest rates go down, Bond prices go up).

- Interest Rate Futures in India

IRF has been launched twice in India, first in the year 2003 and then in 2009. Both versions had few drawbacks like:
- physical settlement of contracts, - short term underlying
- the calculation of closing price on Zero coupon bond.
All of these shortcomings led the product to failure.  In December 2013, SEBI redesigned the product and had advised the exchanges to launch them after meeting the required constraints. IRF was thus again launched in January, 2014.

Three Biggest Trading Misakes

There's an important reason you need to know what
these mistakes are... which... I can explain by
telling you about this...

Did you know there's a toilet paper shortage in
Venezuela?

According to the gov't, the shortage is due to a
media campaign to undermine the country.

Sounds kinda silly, doesn't it?

In reality, the shortage is due to a big mistake
the Venezuelan gov't is making. The reason for the
shortage is due to state-controlled prices.

Economics experts agree that prices set below market
clearing price always result in shortages.

By not knowing (or admitting) this mistake, the gov't
of Venezuela is causing a rather unnecessary
inconvenience to its people.

Here are the trading mistakes you need to recognize
and correct...

Mistake #1:
-----------
The first trading mistake is not knowing how to
pick the right stocks.

Success in trading stocks starts with research.

Picking the right stocks is half the battle.

You wouldn't get in a car and drive around
aimlessly. You'd have a destination in mind and
a route to follow.

Before you can trade, you need to know WHAT to
trade. You need a list of hot stocks that are
ready to go up in value.

And you can't guess.

Otherwise, you might decimate your account.

Mistake #2:
-----------
Not knowing HOW to trade the stocks you pick.

Countless formulas and trading methods exist.
The big question is...

"What is the best way to turn each pick into
actual gains as fast as possible?"

You can't guess here either.

The wrong trading method can turn a winner into
a loser in no time flat. No two trades are alike.
So you need a flexible formula that works in any
situation.

Mistake #3:
-----------
Getting creamed by your emotions.

Emotional trading is the death of success in the
markets. The reason so many traders get anxious
is because they lack confidence in their plays.
And they lack confidence in their trading method.

Take care of Mistakes #1 and #2 and the third one
almost takes care of itself.