Sensex Technical View :
Nothing much to say as index has done nothing to give a further signal...More updates frm Monday
Stocks to watchout for :
As of now there is no major follow up buying or selling giving a major move would prefer not to give many stock trades.
Majority of the trades now taken are extreme short term with small stops which are sent to clients in the day and cant update such views on the blog ....
RELIANCE BONUS ISSUE !!!
Whenever a bonus announced i end up getting lot of queries from people/friends about how much should i BUY !!! ....My reply is go sell or just avoid ...
There is a section of people who believes that when Reliance gives a bonus the invested money would double .......Free shares Free Profit !!!!!!!!!!!!! God damnit why wasnt making money so simple ......
Guess what people also argue that it happens only split !!! For the record Bonus is just an accounting stuff and it doesnot impact the prices apart from a small 5% sentimental pull on announcement and 5% on ex date !!
If you buy 100 Reliance at 2200 and it goes ex bonus some months later and the price is at 2200. Bonus issue is 1:1
On ex bonus the price will fall to 1100 ( + 5% ) and no of shares increases to 200.
Although i dont need to state the above for readers of the blog who are very knowledgeable. Its just the amount of queries which made me do this.
Thanks for all the birthday wishes and blessings!