Archive for June, 2010

Weekly Update 28th June – 2nd July

China’s central bank move to increase flexibility in yuan against the dollar pushed global markets higher with the onset of the week. The optimism for the demand of commodities rose as the move is expected to increase Chinese consumers demand with the rise in purchasing power. Thereafter, the worrisome news flow from both U.S. & Europe only gave [...]

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MINIMUM SUPPORT PRICE…… “The Farmer’s Armor”

MSP is a part of agricultural pricing policy of the central government. It is considered as a form of market intervention and also as one of the supportive measures (safety nets) to the agricultural producers. In the phase of liberalization, MSP has a strong linkage to the market. In this situation, three important aspects deserve attention: . (i) [...]

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Weekly Update 21st – 25th June

Global markets saw synchronized gains of more than two percent this week except China’s Shanghai Composite Index which closed in the negative. The recent measures that were taken in China to cool down the economy like larger down payment for home buyers and increase in reserve requirements for banks seems to have started showing its effects as reflected [...]

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CHANGE IS FOR BETTER

With great pleasure we announce that we have changed our online trading portal to http://www.smctradeonline.com for better. Experience a new level of online trading with more information, better aesthetics, advanced technology, world class financial tools & user friendly console on our new broking site. . Come june 22nd and http://www.smcindiaonline.com , our corporate site will [...]

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RBI in Favour of Deregulating Savings Rate

Mr. K C Chakrabarty, Deputy Governor of Reserve Bank of India (RBI) has said that RBI is also in support of deregulating savings bank deposit rates of banks. . Mr. Chakrabarty said already a debate in this regard was held, but the decision will be taken after having adequate debate on the issue. . He [...]

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VOLATILITY IN OPTION TRADING Final Part

Volatility Skew . If we try to compute the volatility of an underlying by feeding in the required variables and the market prices of the options into the Black Scholes option pricing model, theoretically, options with same expiration date should have same implied volatility regardless of the strike prices we input. . But in reality, [...]

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VOLATILITY IN OPTION TRADING Part 1 :)

We calculate an option’s theoretical value by using option pricing models, two of the primary, well know models are the ‘Black-Scholes Model’ and the ‘Binomial Model’. To compute the value minimum five of the option and its underlying’s related variables are required to be fed in these models; these five necessary inputs are the option’s exercise price, [...]

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GOLD SILVER RATIO………. “PLAY SAFE”

If you are concerned about deflation, devaluation, global economies downturn, currency replacement, etc. – this tool of Gold/Silver ratio (GSR) will probably make sense to you. And that’s because precious metals have a proven record of holding their value in times of economic traumas.. . Note: For calculating the ratio, divide the price of gold by the price [...]

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Weekly Update 14th – 18th June

The global Markets reacted in a negative fashion with the onset of the week due to concerns arising from small increase in non-farm payrolls in U.S. & default risk from Hungarian Economy. The investors concerns subsided after Germany factory orders surged for a second consecutive month in April. . European debt crisis which has pushed down Euro 20 [...]

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Equity Market News 7th – 11th June

Economy . ·Food inflation rose to 16.55% for the week ended May 22 on account of high prices of pulses, fruits and vegetables. Inflation increased by 0.32 percentage point from 16.23% in the previous week. . Information Technology . ·Take Solutions entered into a strategic partnership with Reliance Life Sciences to supply its unique PharmaReady eCTD, SPL and [...]

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