Reliance Money launches financial mobile portal

Reliance Money, online trading platform of Reliance Capital, will soon launch a mobile financial portal in alliance with Webaroo Inc. to give complete financial information for 200 million mobile users without any fee. This facility will be available for free for both GSM and CDMA users. This is the first financial service to provide free information for all mobile users. Customers of Reliance Money can access portfolio, trade book and order book through this mobile financial portal. Mobile users now get free mobile alerts on key financial matters through this service. This will help Reliance Money to reach more users and may soon become No.1 online trading portal. Reliance Money wants to expand the current 3,237 outlets to more than 10,000 by the end of 2007-08.

Reliance Money earlier acquired “TravelMate”, to enter the money changing business. Reliance Money wants to become the largest vendor of gold coins in the country. It seems to have very big plans on the untapped retail category. It will be difficult for small companies to face this onslaught from Reliance Money in trading business. It is already very popular among customers due to its low brokerage charges. Reliance Money was selected as the safest and cost efficient trading platform in the recent survey.

Note: My sincere apologies to all the regular readers for not updating this blog. I will start regular postings from Monday onwards. I am happy as my favourite stocks like IFCI, TFCI, Ispat Industries, Praj Industries and R-com gave me very good returns. I missed Mercator Lines due to delay in taking quick decision. I have partially sold my shares in IFCI, TFCI and Reliance Communications. I will hold Ispat, Fortis and Dish TV shares for another 2 years. Short term outlook for markets is negative but long term view is very good. Book profits in BHEL and Reliance etc.

I will update with more detais on the Reliance Money Financial portal in the coming days.

Heavy selling in the initial session

Indian stocks will see heavy selling in the initial session due to fall down in global markets. If late buying is not seen in the late session, today will become black Wednesday. Capital goods will see heavy selling due to vertical rise in the recent days. This correction is good for markets and real investors who are waiting in the sidelines for fresh investments. New inexperienced investors should stay away from markets until RBI announced credit policy. Weakness in global markets, rising rupee, drop in earnings, derivative expiry, crude price will make the stock markets a dangerous territory in the coming days. I am always against CNBC analysts who change their words according to market moments. Long term investors need not worry about these short term fluctuations. Invest in good stocks with strong growth prospects.

Market sentiment: Bears will finally dominate. Indian markets will follow their global peers. Late buying may be seen in some stocks.

Global cues: All markets suffered heavy losses. Indian ADRs are in red with Sterlite lost 5%.

Stocks of the day:

Allied Digital - Will list around Rs 250 and may touch Rs 320. Bear market may spoil sentiment.

1. PNB and Reliance Capital– Results. With risk.
2. Reliance Energy – Lanco loss, Reliance gain.
3. JSW Steel – Wonderful results. With risk.

Rumours of the day:

1. NDTV may sell 26% stake to NBC.

Positive News:

1. BILT – Stock split from Rs 10 to Rs 2. Buyback of 40% equity after split at Rs 25.
2. RIL will setup 4,000 MW power plants for 10,000 crore.
3. Aditya Birla will raise stake in Hindalco to 40% from 31.4%.

Negative News:

1. Lanco bid for Sasan project is invalid. Investors are thinking that the project will be awarded to Reliance Energy. Government is yet to take the decision.
2. Cement companies under MRTPC lens.
3. Textile exports will fall short by 36% due to rupee appreciation in Q1.
4. Hero Honda posted unimpressive results. Future is bleak for this company. Management lacks the vision.
5. Novartis and Dr Reddys are in legal battle over Lotrel patent.

Results:

1. Hindustan Zinc announced 36% rise in net profit.
2. Britannia net profit increased by 19%.
3. Kotak Mahindra bank net profit rose by 99%.
4. Idea announced 540% rise in net profits.

Stock advice:

1. Accumulate Reliance Communications on declines. It will rebound at anytime.
2. Buy Hindustan Lever for short term gains. 15-20% returns within one week.
3. Accumulate Praj Industries in 150-180 range for long term investment. Praj is the back bone for Bio-Fuel industry equipment and Technologies.
4. Investors will book profits in BHEL, L&T, GMR Infra and DLF at any time. Keep strict trailing stop losses.
5. Long term investors should start accumulating fundamentally good stocks like Bharat Forge.
6. Companies sitting on land banks may surprise with their results in the coming quarters due to selling of land banks. Ex. VST Tillers, DCM Shriram, Atlas Cycles, Zandu Pharma, RPG Cables. RPG cables is the best stock for any patient investor. It will give 300% returns in 2 years. Low valuations, high growth, turnaround story, land bank make this a safe stock.
7. IFCI may not sell stake in the coming days. It is trying to create good business model to unlock its real value. It is a bad news for short term investors and very good news for real long term investors. It will give 200% returns within 12-15 months.
8. Raymond and Cipla are contrarian buys with limited downside but results are disappointing.

Stocks for day traders:

1. Sell ACC.
2. Sell BHEL.
3. Sell L&T.
4. Sell Lanco.
5. Sell Hero Honda.
6. Buy these stocks if sharp fall is seen – Reliance Communications, Reliance Energy and PNB.

Please share your views on Indian stocks.

Indian Stock Markets will rebound on Global cues

Indian stock markets will rebound today on positive cues from Global and Asian markets. Dollar appreciation and fall in crude oil will increase the positive sentiment. BSE Sensex may open with more than 100 points rise but short-medium term outlook remains negative while stock specific news based trading will continue in the next 2 months not an ideal environment for real investors. Nifty may touch 4200 and retreat back. Investors may closely watch DLF IPO subscriptions to get an idea about realty stocks. Nifty will trade between 4200-4170.

Positive News:

1. Reliance may get 5-year extension in KK basin.
2. Jet Lite may operate in international routes.

Stock of the Day: Glenmark Pharma.

Stock advice:
1. Invest in Vishal Retail IPO.
2. Vishal retail IPO will give better returns than DLF IPO on the listing day.
3. Short term sentiment is bad for markets. Serious investors should stay away from markets until markets give a clear signal.

Best stock picks for Long term investors: (Buy them on dips).

1. RNRL: Target is Rs 100 by 2008-09.
2. BHEL and L&T:
3. Dishman Pharma.
4. KSB Pumps.
5. Tamilnadu news Print.
6. Idea cellular: Target Rs 250-300 by 2008.
7. Wire and Wireless and Dish TV: Buy them immediately and hold them for 2-3 years for stunning returns.
8. Sun TV: Fundamentals are strong.
9. Gateway Distriparks.
10. Power is the best sector for Long-term investors.
11. Ispat Industries.

Best stock picks for this week:

1. Hindustan construction Company.
2. Idea cellular: It may touch Rs 129 again.
3. AIA Engineering: Good results.
4. Dr Reddys labs.
5. Unitech: depends on DLF IPO response.

Dangerous stock of the week:

1. Hindalco: I may never understand why some investors buy some stocks? Operators irrationally lifted Raj TV stock in May now they fall back on Hindalco. SEBI should monitor these activities. Hindalco may rise another Rs 5-10, it will return back to Rs 145-150 levels soon.

Hot stocks for Investors and Traders:

1. Glenmark Pharma: Stock split.
2. Reliance Capital: Market sentiment.
3. Reliance Communications: Market sentiment.
4. GAIL: Unexpected fall in the last week..
5. SAIL: JV with JAYPEE and recent fall. High Risk.
6. Kinetic Engineering: Order from Tata motors.
7. Mahindra and Mahindra: Chinese tractor company acquisition.
8. Dr Reddys: Steroid drug launch.

Indian markets will continue to follow Global markets in the coming days. Don’t take long position in any high value stock. Q1 results may increase the P/E valuations and spoil the mood.

Please share your views on my stock recommendations.

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.

Analysis on Indian Stock Markets

Indian stock markets may continue their volatile runs with investors are hoping for correction. My advice for long term investors is stay away from markets for another month. Day traders and short-term investors may gain if they concentrated on good stocks like Reliance Capital.

Though stocks like Reliance Industries, Welspun Gujarat, Jindal Saw, Sail and JSW Steel are good stocks with strong fundamentals, they are near lifetime high values. I don’t prefer such stocks as there is a scope for little rise and high fall.

Why Indian share Markets will move upward?

1. Political uncertainty was over. UPA Government will complete its full term.
2. Inflation is under control. There may be no change in interest rates.
3. There may not be noticeable slow down in Indian economy.
4. Telecom sector is continuing its dream run.
5. There will be huge investments in capital goods and power sector.

Why Indian stock markets may move downwards?

1. Investors may book profits on the upside.
2. Real estate bubble may burst at any time.
3. High P/E of many blue chip stocks. Companies may not continue their dream run.
4. Foreign investors may move away from Indian markets.
5. Metal prices may fall at any time.

Hot stock picks and their movements:

1. Teledata:

Though it is a good long term bet, this stock is experiencing too many fluctuations. It may again touch 80-90 and then will fall to 50-60 mark within a short span.

2. Reliance Petro:

This is getting attention from institutional investors. It may touch 100-110 within 5-7 trading sessions and then fall back to 80-85 level.

3. IFCI:

This is a fundamentally sound stock with medium term bet. It may touch 60-65 and will return back to 50.

Sugar Stocks:

Stay away from this sector at least 4-6 months. Recent rise in these stocks lacks fundamental reason. Sugar prices are falling in open markets. This trend may continue in the upcoming 4-6 months.

Indian share Markets may range-bound

Indian share markets are continuing their volatile sessions. Stock Markets may range bound today due losses in the past trading sessions. Most of the stocks are seeing heavy selling/buying without any specific reason. Investors in these stocks may suffer the fate of Teledata investors. Oil refining stocks (BPCL, HPCL and IOC) may rise due to drop in crude prices.

NSE: 4111
Support: 4090 and 4070
Resistance: 4144 and 4178.

Warning News:

1. RBI may increase CRR but not Repo rates – JPMorgan.
2. Business confidence was down in Q4 – FICCI Survey.
3. RBI sent strong warning note to banks. Stay away from public sector bank stocks.
4. Copper price fell on ending of Peru strike and profit booking. Be careful with Hindalco and Sterlite.
5. Indian ADRs lost yesterday despite rise in DOW.

Stock Picks for Day Traders:

1. Reliance Capital
CMP: 742.9
Resistance: 757, 772 and 781.
Support: 734
Global investment firms eye stake in Reliance Capital. This is a best stock for Long term investors. It may touch 1200 within 2 years. Forget short term fluctuations in Reliance Capital.

2. Reliance Communications
CMP: 466.5
Resistance: 474 and 481
Support: 461

Stay away from following stocks:

1. Real estate stocks may see some selling due to DLF IPO clearance from SEBI.
2. Deccan Aviation will not sell stake to King Fisher.
3. Public sector bank stocks may lose heavily due to RBI letter.

Stock picks for Long term Investors:

1. Reliance Communications
Enter into this stock at 400-430 level. It has big plans for the future growth. It plans nationwide rollout of DTH and Metro IPTV. It will spend 2.5 billion US Dollar in network expansion.

2. Stay away from Auto and Real Estate stocks. Oversupply of office space is a concern.


Rupee impact on Stocks (Credit Suisse report):

1. Gainers: Engineering and Construction Stocks, Reliance Communications, Oil refining stocks like BPCL, HPCL, IOC, Container Corporation, HT Media, United Breweries, Sterlite, Titan, Zee, Exide and Adani Enterprises.

2. Losers: IT Stocks, Pharma Stocks, Hotel and Tourism Stocks and some oil stocks like Essar Oil.

Share your ideas on the movements of Indian stock markets.

Reliance Money – New online trading platform from reliance Capital

Reliance capital entered into online trading business through “Reliance Money”. Reliance Money is offering highly competitive brokerage fees with the option for “fixed flat fee structure”.

Reliance Money, promoted by Anil Dhirubhai Ambani Group firm Reliance Capital, would offer the brokerage services across 700 cities including Delhi and Mumbai through 3,000 outlets.

Reliance Money consumers can trade in equities, commodities and offshore investments, IPOs, mutual funds, insurance and money transfer.

Brokerage fee structure:

Delivery trades – 0.05%
Non- delivery trades – 0.005%

Fixed brokerage fee:

Rs. 500 for delivery trades up to 10 lakh
Rs. 500 for non-delivery trades up to 1 crore.

Pre-paid coupon brokerage charges:

Rs. 500 coupon is valid for 2 months.
Rs. 1300 coupon is valid for 6 months.
Rs. 2500 coupon is valid for 1 year

Reliance money website:

It is one of the best designed financial web sites in India. It will catch visitors’ attention with its neat interface, quality content, fast loading and research information. Content is divided into 3 sections – Beginners, Intermediate ones and Experts.

Highlight: Morning News letter from reliance Money is a must read for every investor.

Reliance money will definitely give tough competition to other brokerage houses like ICICI Direct and Sharekhan, India Bulls etc. If you want to enter in to online trading, opt for Reliance Money.

Please comment on this article.

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