Book value

Positional trades:
Now let's another topic called as Book Value

Book value is nothing but the value of assets minus the value of liability

Let's say Assets are 1 lakh and liability is 60000 then book value is 40000 ( 1 lakh - 60000)

Now we compare the book value per share (BVPS)with the market price.

Book value per share is nothing but

[total book value ÷no of outstanding shares]

Let's take another example

Assets of 54 L
Liability of 32L
No of shares 1 L

Book value per share- (54L - 32L) ÷ 1L shares. So book value is 22

Book value is also called as enterprise value...It is the value of firms assets after deducting liability.

Usually Book value is compared with market value....

Market value means the current market price of the share...

So if BV(BOOK VALUE) is 30 and Market value is 20 then share may be considered undervalued

BOOK VALUE- Imp points

1) Book value is used for valuations of Non Banking Finance Cos (NBFC)

Something called as Price to Book value which we will discuss later.

2) Book Value should not be seen closely in companies like IT cos or non manufacturing companies as these companies don't have significant assets and the book value can be understated.

3) Price to Book value

This is a ratio also called as 
P/BV Ratio.

As the name suggests PBV is nothing but price of a share ÷ book value

Price of a share is 50
Book value is 20

So PBV is 2.5 or we can say that the share is trading at 2.5 times it's book value.

Just like PE we need to understand the P/BV of the industry in which the company is operating and compare it with the leaders of the industry or the top 5 companies to get a fair idea....

Written by - #Yash

Edited by  - #Raj

                    #ow

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Daily Update by Team Mumbai - Pro Traders - 06th July, 2017

Open Interest Data Analysis

FII closed index future longs and added shorts. Pro added long/short but more on short side. Except for FII, Pro, retail, DII are all short in net position in index futures. Massive unwinding of option positions today (not sure why). FII took bullish stand in index options. PCR went up today as well. Index touched 9700 and erased some gains towards close. FII turned net sellers in cash market, though little amount. DII continue to be net buyers . Nifty Option chain: On call side OI added at 9750/9900. On the rest of the strikes, OI added in small numbers. 9700 saw unwinding as index touched 9700 in intraday trading. On Put side OI got added to 9500/9600/9700 in good amount. Max OI: 9700CE-9500PE

                  

CORPORATE NEWS and ANNOUNCEMENTS:

• Bharat Forge expands joint venture with Israel Aerospace Industries to build new maintenance centre in India.

• Tata Motors cuts CV prices in the range of 0.3-8.2%.

• IDFC, Shriram Group to announce merger to create over $10 Bn Co on July 8, as per media reports.

• Godrej Properties acquires land parcel of 14.8 acre in Gurugram for residential project. Stock up 1%.

• Axis Bank cuts base rate by 10 bps to 9.05%. Stock down 1%.

• Govt of Singapore picks 6.2% in Gayatri Projects in today’s block deal, as per media reports. Stock jumps 11%.

• NIIT forms strategic relationship with Nasdaq-listed Co Cornerstone. Stock up 1%.

Securities in Ban For Trade Date 07-JUL-2017:

Volume Shockers with High Delivery %

Team Mumbai - Pro Traders: Yogini, Ram, Ankur and Shivarajkumar.

Source: Economic Times, Business Standard, Financial Express, Indian Express, Mint, IIFL Markets, Business Line, StockEdge, Bombay Stock Exchange, National Stock Exchange

Disclaimer: This is for Study purpose and is intended for Trading Terminology Closed Group.

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Charts by Dharmendar Singh

                  

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My Trades - July 2017

Click here to view my Trades - Equity - January 2017

  
Click here to view my Trades - Equity - February 2017

  
Click here to view my Trades - Equity - March 2017

Click here to view my Trades - Equity - April 2017

Click here to view my Trades - Equity - May 2017

Click here to view my Trades - Equity - June 2017

  

Click here to view my Performance Report

Date: 3rd July, 2017

Time: 09:02 IST

Dabur - I will buy when cash price hits 291.2 with a stoploss of 290.4. I will sell at 293.2 / 295.1

Time: 09:46 IST

Ashok Leyland - I sold at 2.5 which I bought at 0.9.On Investment of 6300 , I made Return Of 11200

Time: 20:46 IST

Making Money on

Ashokley

Jet Airways 

Indigo Airlines

Infratel

Axis Bank 

Keeping an eye on

HDIL

DLF

MCDOWELL 

UPL

RELCAPITAL 

RELINFRA

SIEMENS

CONCOR

Date: 6th July, 2017

Time: 11:10 IST

Just Dial - I will buy at 372.5 with a stoploss of 363. I am looking for a reversal and will sell at 428.

Time: 14:40 IST

Just Dial - I have exited at my stoploss level.

Date: 7th July, 2017

Time: 11:10 IST

Tata Global Beverages - I am buying July 160 CE at 2.7

Date: 10th July, 2017

Time: 15:10 IST

Tata Global Beverages - July 160 CE made a hight of 10 which I bought at 2.7

Time: 21:10 IST

Tata Global Beverages - It is in momentum now. I will buy at 164.4 / 162.4 And will sell at 168.7

Date: 11th July, 2017

Time: 08:57 IST

Bharat Financial - I will but at 760 with a stoploss of 750 and will sell at 780

Time: 10:06 IST

Just Dial - made a high of 380.95. I suppose it will hit 381 again today. Huge volume is traded in 380 CE. I will buy when hits 377.5 with volume. I feel it will hit 371 again to test the patience.

Time: 10:46 IST

Tata Motors - Well set to go

HDIL

Time: 13:06 IST

Bharat Financial - I am selling half of my postion at 766 and moving my stoploss to my buy price.

Date: 12th July, 2017

Time: 00:02 IST

Bharat Bijilee - I will buy at 1213 / 1080 and will sell at 1723

Time: 13:59 IST

Bharat Infratel - I am buying July 430 CE at 5.5 with a stoploss of 4.5 And will sell when cash hits 427

[6:24 PM, 7/29/2017]: Scrip - Vgaurd

Support - Fibo - 23 .6 ( Taken) 

Last two days showing sharp upsurge in price performance - 

Shows results are at Par to acceptance - 

Conclusion -

Price Sustainance above - 193 shall give participation to newer rally - for which we need daily close bar above the said point - 

Closing below - 193 - should cause Reversal and could resume downtrend - 

Try to exit - the rally - on momemtum - 

I feel should wait and buy only on closing above the point with Volume and suatainance

[6:24 PM, 7/29/2017]: 

SCRIP - DHFL

Conclusion - 

Format - Ascending Traingle .

Resistance - 463.50

Closing above should Trigger short term selling  stoploss - 

Confirmation only if it closes above - 

Chart structure showing as if it will hit few short sell stoploss which will lead to bit of short covering,  but eventually should come down - 

If results are bad then - it should cross the said level before and result will be after market - 

One should trade with Far PE - 420/ 30

To check 

But with SL based upon Reversal confirmation

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Daily Update by Team Mumbai - Pro Traders - 03rd July, 2017

Daily Update by Team Mumbai - Pro Traders - 03rd July, 2017

Participant wise Open Interest in Equity Derivatives as on 03rd July, 2017

Nifty Call Option

                                 

Nifty Put Option

   

Open Interest Data Analysis

Active option writing seen in 9600 and 9500 call options. Nifty has more chances of heading up to 9850 this series.

                  

CORPORATE NEWS and ANNOUNCEMENTS:

• ITC trades at record high. No additional excise duty on cigarettes. Market cap surpasses Rs 4 lakh crore. Stock jumps 6%.

• Idea Cellular stock up 1% after 50.4 lakh shares traded in a block deal on the BSE at Rs 85.50/sh.

• Intellect Design to consider rights issue price on July 6.

• Rolta promoter releases pledge on 55 lakh shares on June 30.

• Delhi HC directs SpiceJet to deposit Rs 250 cr in promoter Dispute With Marans. Stock slips 4%.

• Nandan Denim stock zooms 6% after promoter buys stakes in the company.

• Fertiliser stocks gain after the GST council reduced the tax rate on fertiliser to 5% from previously decided 12%. Chambal Fertilisers, Mangalore Chemical (+4%), Madras Fertilisers (+1%), Nagarjuna Fertiliser (+1.5%).

• Steel Strips Wheels posts weak sales in June. Stock up 1%.

• I-T Department conducting raids at Welspun Group's Mumbai office since Friday, as per media reports. Welspun Corp, Welspun  India (-2%).

• Srei Infra, Repco Home Finance stock at day's low after new inclusion in FNO. Stock down over 1%.

• Hero MotoCorp June total sales up 14% at 6.24 lakh units vs 5.49 lakh units YoY. Stock up 1%.

• D B Realty arm enter into a Development Agreement with Indo Global Soft Solution and Technologies Pvt Ltd. Stock soars 8%.

• Tata Steel Q1 crude steel production at 2.94 mn tn vs 2.52 mn tn YoY. Stock advances 1%.

• IFCI stock spikes on news NSE to refile IPO prospectus with fresh financial statements. IFCI holds 3.05% stake in NSE, intends to offload 0.8%.

• Avenue Supermarts continues to shimmer, up by 2.5% hits fresh lifetime highs. Stock spurts 2.5%.

• TVS Motors June total 2-wheeler sales up 11.8% at 2.68 lakh units vs 2.4 lakh units; 3-wheeler sales down 27.7% at 5153 units (YoY).

• Apollo Tyres has given a double bottom technical breakout and is trading at day's high. Rally in this stock to continue upto the resistance zone of 260 mark.

• Maruti Suzuki June Auto sales: Sales up 7.6% to 1,06,394 units.Domestic sales up 1.2% to 93,263 units. Stock up 1%.
• Raymond stock surges 5% ahead of investor meet tomorrow.

• HCC stock climbs 3% after JV bags contract of Rs 798 cr from Bangalore Metro Rail Corporation.

• V.S.T Tillers June auto tractor sales up 6% at 954 units vs 899 units (YoY). Stock climbs 7%.

• Ashok Leyland June total sales at 12,330 units versus 11,108 units up 11% (YoY). Stock rallies 4%.

Securities in Ban For Trade Date 04-JUL-2017:

Volume Shockers with High Delivery %

Team Mumbai - Pro Traders: Yogini, Ram, Ankur and Shivarajkumar.

Source: Economic Times, Business Standard, Financial Express, Indian Express, Mint, IIFL Markets, Business Line, StockEdge, Bombay Stock Exchange, National Stock Exchange

Disclaimer: This is for Study purpose and is intended for Trading Terminology Closed Group.

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