Best Online Trading platform: Share you experiences

Online stock market trading is gradually gaining ground in India with increased penetration of broadband services. These are more than 10 popular trading platforms are available for Investors.

But many investors are asking me this simple question "Which is the best online trading platform in India?" I am still unable to figure out the best trading platform among popular ones. I am using Reliancemoney and ICICIdirect but both are good only for investors but not for traders. According to my friends, Religare and Kotak are good ones for traders.

According to poll on my blog, more than 60% are recommending Reliancemoney and ICICIdirect with Reliancemoney is in top slot. But Reliance Money need some improvements before becoming best platform for Online Trading. They need to provide separate software for the convenience of small traders.

My request: Please share your experiences through comments which will help fellow readers in choosing good online trading platform. Please share your experiences with brokers especially in times of crisis periods like January melt down.

Please share your experiences by commenting below.

Volatile Stock Markets due to extreme uncertainty

I am closely monitoring Indian stock market volatile movements but not giving any guidance due to extreme uncertainty. I have not seen this range of uncertainty for the last 3-4 years. That’s why I am not posting in the last 4-5 sessions. I will watch for another 3-4 sessions from side lines to get clear picture on Indian share markets.

Global Economic crisis (Sub prime credit crisis):

Don’t be tempted by short Bull Run in US stock markets. This subprime crisis is the most severe one in the last 16 years. We are just watching the tip of ice berg. We will see real effects in the coming weeks/months. No one is giving clear guidance on the magnitude of this subprime crisis. Rate cut by fed reserve may not be sufficient to cool down this crisis. Dow will touch 11,500-12,000 in the coming months.

Local Political crisis:

Communist parties are doing their best to dampen the spirits of bulls. Before this political uncertainty, India is the last option for withdrawal of money by FIIs due to the strong fundamentals. But India is now the first choice for FIIs to withdraw money in case of crisis due to political uncertainty. Uncertainty is always more dangerous than real thing. Communists may not withdraw support to UPA Government but they will cause enough damage to the investors by their comments.

Indian Stock Market guide:

1. Sit on cash and invest money whenever BSE Sensex falls below 14,000.

2. Invest money in high growth stocks like Punj Lloyd, Crompton Greeves, Bharti Airtel, BHEL, L&T, PFC, SBI, Welspun Gujarat, Praj Industries etc. They will lead the next rally.

3. Foreign investors will invest in these stocks after the termination of credit concerns.

4. Don’t expect exceptionable returns in 2007. Invest up to 2009-10 in growth stocks for exceptional returns.

5. Banking and Finance, Capital Goods, Shipping, Power and Infrastructure stocks will lead future rallies. Telecom story will continue for some more time.

6. Speculators will rarely beat long term investors in the returns/earnings in Stock markets.

7. Pharma is the dark horse.

Starcom-Mediavest survey on Online Trading platforms in India:

1. Reliance Money is the most secured and cost effective platform while Motilal Oswal is the best research driven platform. ICICI Direct is the least cost effective platform.

2. 5 Paisa is the second best cost effective trading platform while ICICI Direct is the second best secured platform.

Please share your experience on online trading platforms in India.

Indian stock markets on Monday

Indian share markets may continue their volatile run with positive triggers from global markets and metal prices and negative triggers from profit booking and expiry of contracts.

Advice for traders: Stock specific action will be seen.

Market movement: Volatile/Bullish. Global markets and Asian markets are showing positive trends. Expiry of derivative contracts will be a major negative trigger. Be careful.

Significant News:

1. Decline in net profit of Indian companies compared to previous quarters.
Net profit in Q2 - 43%, Q3 – 76% and Q4 – 38.8%.
2. Metal prices and crude oil price rose again.
3. IOC and OIL set to pick up 50% stake in Nigerian block.
4. RBI diluted norms for outsourcing firms in India to draw foreign exchange.
5. SBI is on mega expansion plans.
6. Reliance Communication and Bharti Airtel are on overseas expansion plans while Idea cellular may acquire Spice telecom.

Stock Picks for Day Traders:

1. Mahindra and Mahindra:
CMP: 731.8
Target: 740 and 748
Stop Loss: 714
Results, increase in sales and news of inclusion in BSE-100.

2. Idea Cellular:
CMP: 125.8
Target: 128.3
Stop Loss:120
Idea and Spice Telecom may merger to emerge as the fifth largest telecom company.

3. Cipla:
CMP: 205
Target: 207.2 and 210.
Stop Loss: 201
Cipla got approval to sell Retrovir of Glaxo.

4. SAIL:
CMP: 148.1
Target: 150.6 and 152.5
Stop Loss: 143.7
SAIL will acquire Nilachal Ispat Nigam in Orissa for over 1,000crore.

5. TCS: (Risk of rupee appreciation).
CMP: 1229
Target: 1238 and 1247.
Stop Loss: 1210
TCS bought Brazil partner’s stake.

6. HDFC: Safe bet.
CMP: 1816.6
Target: 1870
Stop loss: 1735
HDFC has broken technical resistance.

7. BHEL: Safe bet.
CMP: 2702.8
Target: 2724 and 2752
Stop Loss: 2668
Good results.

8. NTPC: Safe bet.
CMP: 163.7
Target: 165 and 167
Stop Loss: 160
Rumours on foreign joint venture.

9. Sterlite: (High risk)
CMP: 546.9
Target: 560
Stop Loss: 515
Rise in metal prices.

10. Dishman Pharma:
CMP: 241.5
Target: 246
Stop loss: 236
It will announce results may be good ones.

11. Fortis Healthcare, Ranbaxy and Jindal stainless.

12. Tata Tea and GMR infra are other good stocks.

Stocks to watch out for:

IVRCL Infra, Rolta, Bharti Airtel, NIIT Tech, HCL Tech, Tata Tea, GMR Infra, Moser Baer, IPCA labs, Ranbaxy and Voltas.

Stay away from following stocks:

1. Reliance energy will continue to face obstacles from Mayawati government.
2. Welspun group not to renew Tommy Hilfiger deal.
3. Book profits in Suzlon.

Stocks of the week (Economic Times):

Cairn India, GMR Infra and Thermax.

Stock pick by Economic Times: SAIL for Long term investors.

ICICIdirect.com pick of the week:

Finolex Industries.

Reliance Money stock of the week:

Punj Lloyd.

SEBI decisions:

1. Futures and Options trading in Nifty Junior stocks from June 1st.
2. New rules for short selling in equity markets for domestic and foreign investors from the 1st week of July.
3. M&M will replace Hero Honda in the Sensex. Other inclusions in the BSE-100 are Aban Offshore, Biocon, Cairn India, Dish TV, Tech Mahindra and Indiabulls Real Estate.
4. Karnataka Bank and Yes Bank are included in the BSE Banking Index.
5. Moserbaer and Rolta are new entrants into BSE IT Index.

Closely watch rupee Vs dollar, profit booking and impact of expiry of derivative contracts.
Please share your views on Indian stock markets.

Review- Reliance Money Online trading

Reliance capital entered into lucrative online trading business with Reliance money. There are mixed reports about this online trading platform. It shook up online trading business with cheap brokerage charge offer.

Reliance Money is selected as the most secure and best cost effective online trading platform in India in Starcom-Mediavest survey.

Why should you choose Reliance Money?

1. Because it is from Reliance. Reliance capital has big plans regarding this business. It may announce attractive offers to gain market share. Reliance will never enter into a business with small plans.

2. Its brokerage charges are lowest in the country among major providers. With Rs 2500 prepaid amount, you can trade for Rs 5 crore.

3. Site is simple in design, fast to access and easy to find required information.

4. Its daily reports on market trends and technical breakouts are very useful.

5. Website content is divided according to the requirements of experts and beginners.

6. You can trade in Forex, Derivatives, Mutual funds, IPO and buy Insurance.

Why should you stay away from reliance Money?

1. The trading platform is still in development stage. There are many bugs needs to be rectified.

2. Its “Insta trade” service is not up to the standard. Reliance Money software is a java based simple software. It should provide advanced software to meet the needs of advanced traders.

3. Its system is sometimes very slow and orders are not placed at the time.

4. Its market watch solution is a way behind its competitors like Money control and ICICIdirect.
5. Its service people are not as efficient as competitors.

6. It is still not providing options to buy Post office savings.

7. It is recommending few stocks even when stock markets are on roll.

Conclusion: Reliance Money still needs many improvements to its online trading platform. Reliance capital is spending big money to improve the service. It still needs to include more research reports like ICICIdirect website. It should include free mobile alerts for purchases.

It should make complete makeover to market watch page. It is too early to make final judgement on Reliance money.

My Rating: 4/5.

Advice: If brokerage charge is your major problem, switch to Reliance Money otherwise wait and watch. Reliance Money is gradually improving while ICICIdirect is gradually deterioting in creating wonderful trading experience.

Visit the Reliance Money website.

Moneycontrol.com is the best site for Indian Investors

PC World magazine selected MoneyControl.com as the best site for Indian stock market investors. According to PC world, Moneycontrol.com emerged as outright winner with clean and easy interface with up to date content. ICICI Direct.com emerged as winner in utilising technology to satisfy customer needs.

Why Moneycontrol is the best site?

1. It is the best all in one site for Indian investors. This site has comprehensive information on Indian stocks, Mutual Funds, Commodities and IPOs.

2. Best portfolio manager among Indian websites. It sends daily email about your portfolio gains/losses.

3. Free experts opinions. But recommendations from these experts are not up to the mark.

4. Best message forums with active participation of experienced users.

5. This site has comprehensive tools for investors with complete information about Day’s highs/lows and volumes etc.

6. Its sister sites i.e. Indiaearnings.com, Commoditiescontrol.com and EasyMF.com are best sites in their respective categories.

Why Money Control Sucks?

1. Site is very slow especially during trading times. Its loading time is worst among major Indian sites.

2. Too many ads with too much optimisation. It is difficult for ordinary user to differentiate between content and ads.

3. Site design is outdated which needs complete makeover like Indiatimes.com.

ICICIdirect.com scores over Moneycontrol.com in design, speed and recommendations.

Please share your opinion.

Stock Markets are in the grip of operators

Indian Share markets are experiencing huge swings due to buying and selling by smart operators. Ordinary investors may have lost big money in these wild swings. Retail investors and day traders should tread cautiously in volatile times. Crude oil price rose again on supply concerns.

Market Movement: Bullish.

Warning News: Central banks may tighten liquidity. It is not a good sign for medium term investors.

Best Stock Picks for Day Traders:

1. JK Cement
274% jump in Q4 net profit. Net turnover was increased by 49%.

2. Shree Cement
CMP: 1037.7
Target: 1067
Stop Loss: 1007
It will announce good results today.

3. NTPC
CMP: 154.9
Target: 157
Stop Loss: 150

4. Novartis India

5. Lanco Infratech
CMP: 157.3
Target: 159.3 and 162
Stop Loss: 154

6. Reliance Communications
CMP: 478
Target: 486
Stop Loss: 458
It will likely get additional spectrum.

Positive News:

1. Inflation is under control.
2. Asian Markets are trading positively.
3. ONGC subsidiary Mangalore Refinery posted 41% jump in the last financial year.

Negative News:

1. Reliance Energy’s ambitious plans may be halted due to change of guard in Uttar Pradesh.
2. Stay away from Arvind mills.
3. ICICI Bank will be investigated by MRTPC for making false promises to its credit card customers.
4. Stay away from Hero Honda due to poor results.
5. Stay away from Dr Reddys due to American court ruling.

ICICI Direct stock of the Week:

Apollo Tyres

Economic Times Stocks of the Week:

1. Reliance Petro- Safe Bet.
2. SAIL- Somewhat risky.
3. Global Tele – Safe Bet.
4. Jain Irrigation – Long term bet.

Reliance Money stocks of the week:

1. Tech Mahindra
2. Polaris

Stocks for Medium term:

1. Philips Carbon Black
2. Pioneer Embroideries

10 Best Stock picks for Long term investors (1 year- 2 years):

1. Jyothi Structures
2. Alok Industries
3. Reliance Petro
4. Reliance Capital – Best stock for long term investors.
5. Larsen and Toubro
6. Idea Cellular
7. Reliance Communications
8. RNRL
9. Cipla – It is fundamentally strong stock.
10. Tata Tele

Enter into these 10 stocks at lower price:

1. Tata Motors – Growth story lies ahead.
2. Reliance Industries
3. ABB
4. BHEL
5. Kalpataru Power Transmission
6. Tata Steel
7. Bharti
8. HT Media
9. Shipping corporation of India
10. Tata Power

Please share your opinion on my stock picks.

How to select best online trading broker?

1. Read the documents carefully before sign them. Check for any hidden clauses.
2. Assess the reliability, speed and robustness of your broker’s system.

3. Check the response time on the trading screen. The lag between the prices on the market watch screen and on the exchange should be less than 20 seconds.

4. Conformation of the execution of your order should reach you in less than 30 seconds. Most of the online trading platforms are providing best service to the special customers neglecting ordinary customers. Ex. ICICI Direct active trader account.

5. Trading website should be up, active and fast especially during trading hours.

6. These days most of the financial websites have high standard security features.

7. Enquire about the brokerage charges, annual payments and hidden penalties. Currently Reliance Money is offering lowest brokerage charges.

8. You should able to check your orders and payments during trading and non trading hours. ICICI Direct does not allow the customers to check them during trading hours.

9. Check with your broker whether there are providing phone trading and offline trading.

10. Verify about the reliability of broker recommendations. Never trade just based on the broker recommendations.

Courtesy: Business Today