Predictions for indian stock market

Wish you could gauge equity market sentiments before investing in stocks?

Though predicting equity markets and stock movements are not easy, equity analysts use many methods and indicators to predict market movements. What to do with shares with no buyers? So, what does dividend yield tell about the future price of a stock?

If the dividend yield is low, the share price is relatively higher than the dividend paid and hence the stock may be overvalued.

This indicates a possible decline in the future. A high dividend yield, on the other hand, means subdued interest in the stock and that the company is trying to woo investors by paying higher dividends. It means the stock price is undervalued. Invest in realty stocks with care This can be extended to a stock index too. One can calculate the aggregate dividend yield of an index , compare it with past dividend yields and see if the current yield is low or high.

A low dividend yield indicates an overpriced market and vice versa. Let's demonstrate it by a simple calculation. According to the National Stock Exchange data, the average dividend yield of the Nifty in the last couple of months has been around 1.

When India Analysts Make Stock Predictions, Don’t Bank on Accuracy - WSJ

On 2 November , the Nifty closed at 5, The current dividend yield is Rs Stocks that held strong amid sell-off If analysts expect Nifty companies to increase their dividend payouts by 10 per cent every year for the next three years and investors expect at least a 4 percentage point premium According to Indian laws, an insider is a top official, director or shareholder who owns 10 per cent or more shares and has access to unpublished price-sensitive information about the company.

Tips to diversify commodities portfolio How to deal with share market rumours A member of the board, merchant banker, share transfer agent, debenture trustee, broker, portfolio manager, investment advisor, sub-broker or even a relative of any such individuals is also an insider.

Higher rates also hit demand in rate-sensitive sectors. An 'insider' can buy or sell shares provided they inform the stock exchanges on which the stock is listed if the transaction goes beyond a certain threshold.

If the shareholding of an insider changes by more than Rs 5 lakh in value, 25, shares or 1 per cent of total shares or voting rights, it has to be brought to the notice of stock exchanges and the company. Information on insider trading is available on websites of stock exchanges and can be used to predict future prices.

Studies suggest that while an insider may have many reasons to sell, the only reason for buying can be that he is bullish on the prospects of the company. Conventional wisdom says one must buy shares when short-term rates treasury bills are low and sell when they are high. Rajeev Thakkar, CEO, Parag Parikh Financial Advisory Services, says: Higher rates also hit demand in rate-sensitive sectors such as real estate and automobiles. However, when rates on short-term securities are higher than that on long-term ones, it hints at a possible recession.

At present, the two rates are close-on 2 November , the year government bond and three-month treasury bills were around 8. It tells if a particular price trend is supported by market players. If the price of a share is increasing with higher than normal volume, it indicates investors support the rally and that the stock would continue to move upwards.

However, a falling price trend with big volume signals a likely downward trend.

Market Outlook, Stock Market Outlook, Share Market Outlook - Moneycontrol - qoxoxoxiqel.web.fc2.com

A high trading volume can also indicate a reversal of trend. For example, a drop in the share price with very high trading volume is viewed as a sign that the stock has hit the bottom. The buyer of the put option has the right but no obligation to sell the asset stock, commodity at a specified price on or before a fixed date, while the seller has the obligation to buy at the pre-specified price if the buyer wishes to exercise the option.

A call option, on the other hand, gives the buyer of the option the right but no obligation to buy a particular asset from the seller of the call option at a fixed price on or before a particular date. The put-call ratio is calculated by dividing the number of traded put options by the number of traded call options. If the put-call ratio is increasing, it means the number of traded put options is increasing, signaling that either investors fear the market will fall or are hedging their portfolios foreseeing a decline.

Sahaj Agrawal, associate vice-president, derivatives, Kotak Securities, says, "A high ratio indicates an over-cautious stance by market participants and hence chances of the market falling are low.

Contrary to that, a low ratio indicates over-optimism, and hence caution should be exercised. You can use these together to arrive at a more credible conclusion. Previous Story How to use low-value power stocks. Next Story Tips for investing in bonus issues. Cut prices, pass GST benefits to customers: Govt tells telcos Tech Mahindra Q4 profit dives 33 per cent on weak margins Prabhas-starrer no longer a box office Baahubali, Aamir Khan's Dangal takes lead with record collections of Rs Luxury car prices drop ahead of GST implementation Audi cuts model prices by up to Rs 10 lakh for limited offer More.

Reliance Jio Prime vs Airtel, Vodafone, Idea 4G offers Reliance Jio plans to bring 5G internet to your smartphones Maruti Suzuki opens online booking for Baleno RS India Inc to get 9.

Hughes Optioneering

Micromax's Yu Yureka Black set to launch on June 1 OnePlus 5 brings OnePlus 3T production to an end, but sales will continue till stocks last Xiaomi's pre-order for Redmi Note 4, 4A to begin today Xiaomi launches Mi Max 2 in China OnePlus 5 to feature Snapdragon inside, says CEO Peter Lau More. News You Can Use. Dhoni's every single run cost Rs 4. Here's why Dhola-Sadiya bridge will be good for Indian economy What is WannaCry Ransomware and how it is different from other cyber attacks How to make your workstation fun and exciting More.

ECONOMY CORPORATE MARKETS MONEY INDUSTRY TECH OPINION PHOTOS VIDEOS MAGAZINE PROPERTY.