FII/DII Futures Activity: What Retail Traders Must Know

वैश्विक बाजारों में, मजबूत अमेरिकी डॉलर और बढ़ती बॉन्ड उपज के बीच सोनाऔर चाँदी के भाव मे गिरावट दर्ज की गई है। लेकिन, अमेरिका के आने वाले राष्ट्रपति जो बिडेन प्रशासन के तहत अतिरिक्त अमेरिकी राजकोषीय प्रोत्साहन की उम्मीद से कीमती धातुओं को सपोर्ट मिला हुआ है।

अमेरिकी 10-वर्षीय बॉन्ड यील्ड 1% से ऊपर के स्तरों पर पहुंच गई है और डॉलर इंडेक्स मे निचले स्तरों से उछाल देखा गया है। एक मजबूत डॉलर अन्य मुद्राओं के धारकों के लिए सोने को अधिक महंगा बनाता है , जबकि उच्च बांड उपज गैर-ब्याज उपज वाले सोने को धारण करने की अवसर लागत को बढ़ाती है जिससे कीमती धातुओं के भाव मे गिरावट आई है।

अमेरिकी 10 साल की बॉन्ड यील्ड 1% को पार कर गई है, जो अमेरिकी अर्थव्यवस्था के लिए बेहतर आउटलुक के साथ-साथ उच्च मुद्रास्फीति और ब्याज दरों में सुधार को दर्शाती है। वैक्सीन आने से भी सोने के भाव पर दबाव जारी है। अमेरिकी राष्ट्रपति-चुनाव मे जीत के बाद, जो बाईडन के पास अब कांग्रेस का पूर्ण नियंत्रण है साथ ही, अमेरिकी सीनेट मे भी अपनी पार्टी की जगह बना ली है।

फेडरल रिजर्व बैंक ऑफ क्लीवलैंड के अध्यक्ष लोरेटा मेस्टर ने कहा कि उन्हें विश्वास नहीं है कि बिडेन के तहत राजकोषीय प्रोत्साहन का अर्थ 2021 में मौद्रिक नीति पर नियंत्रण होगा। शिकागो के फेड अध्यक्ष चार्ल्स इवांस और अटलांटा के राफेल बेस्टिक सहित अन्य फेड अधिकारियों ने कहा है कि वर्ष 2021 के अंत से पहले केंद्रीय बैंक की चल रही परिसंपत्ति खरीद की गति को कम करने में समर्थन करना चाहिए और अर्थव्यवस्था को मजबूती से वापस बढ़ना चाहिए।

तकनीकी विश्लेषण:

इस सप्ताह फ़रवरी वायदा सोने के भाव सीमित दायरे मे रह सकते है और इसमे 49600 रुपय के निचले स्तरों पर समर्थन तथा 51000 रुपय के ऊपरी स्तरों पर प्रतिरोध है। चाँदी मार्च वायदा के भाव सीमित दायरे मे रहने की सम्भावना है और इसमें 67000 रुपय पर समर्थन और 70000 रुपय पर प्रतिरोध है।

Introduction

Disinvestment, also known as divestment, refers to the process of selling off a company's assets or investments, often in the form of shares in state-owned enterprises. Governments or private entities may undertake disinvestment for various reasons, including reducing debt, improving efficiency, or focusing on core areas. In this blog, we’ll delve into what disinvestment means, why it occurs, and its impact on the economy and shareholders.

What is Disinvestment?

Disinvestment involves the reduction of an organization's stake in an asset or company. This can take several forms:

Selling Shares: The most common form of disinvestment is the sale of equity stakes in a company. Governments may sell shares in state-owned enterprises to private investors.

Asset Sales: Companies or governments may also sell specific assets, such as property or divisions of the business.

Privatization: In some cases, disinvestment can lead to the complete privatization of a previously state-owned enterprise.

Reasons for Disinvestment

Reducing Debt: Governments or companies may sell assets to reduce debt levels and improve their financial health.

Improving Efficiency: Disinvestment can lead to improved efficiency by transferring ownership to entities better equipped to manage the assets.

Focusing on Core Areas:  Selling non-core assets allows organizations to concentrate on their primary business activities.

Generating Revenue: Disinvestment can generate substantial revenue, which can be used for development projects or other purposes.

Privatization: Governments may privatize state-owned enterprises to enhance competitiveness and operational efficiency.

Impact on the Economy and Shareholders

Economic Growth: Disinvestment can stimulate economic growth by reallocating resources to more efficient private sector operations.

Market Efficiency: By transferring ownership to private entities, market efficiency can improve due to better management practices.

Shareholder Value: For companies undergoing disinvestment, shareholders might experience fluctuations in stock value based on the sale's impact.

Job Losses or Gains: Depending on the nature of the disinvestment, there might be job losses in the short term, but potential job creation in the long run.

Government Revenue: The revenue generated from selling assets can be used for public investments or debt reduction, benefiting the broader economy.

In India, the Disinvestment of BPCL (Bharat Petroleum Corporation Limited) is a notable instance. The Indian government decided to sell its stake in BPCL to private investors to reduce its fiscal deficit and focus on other critical areas. This move aimed to enhance the company's operational efficiency and competitiveness in the market.

Did you know that disinvestment is not limited to public sector enterprises? Private companies also engage in disinvestment to streamline operations or reallocate capital. For instance, Tata Motors has periodically sold off non-core assets to focus on its primary automotive business.

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To achieve high returns over a short period, many investors prefer to do trading over other investing strategies as it helps them to get maximum investment benefits. There is a lot of trading experience and guidance is required to achieve a high return and hence most investors prefer to take a stock broker’s advice before investing in any stock.

To trade successfully in equity trading, it is compulsory to open a trading account with any stockbroking firm. Well, when it comes to the top stockbrokers who offer subsequently low brokerage rates with quality advisory services, then Swastika comes second to none. Swastika not only provides regular follow up calls but also quality customer services that leave the user satisfied.

If you are a newbie who often gets confused with trading terminologies, you come to the right place. Swastika’s learning courses will help you to get a deep insight into stock’s and their investment methods.

Let's understand what an Equity Trading Account is and how we successfully create Demat accounts.

What is an Equity Trading Account?

Equity trading accounts are required to trade any financial securities. This account involves purchasing and selling of shares within a single account, which is known as Demat account or dematerialized account.

Equity trading account opening involves signing up for trading and Demat accounts. Both the accounts can be interlinked to your savings account for the transferring of funds.

Trading Account

A trading account lets you successfully trade in the Indian stock market. After opening a Demat account and trading account, you will get a unique identification number (UID).

Demat Account

A Demat account enables you to buy/sell and hold financial securities that too in a dematerialized form. Earlier, shares used to trade physically, however with the arrival of the Demat account, many problems have been resolved.

Benefits of Opening an Equity Trading Account

There are bountiful benefits of opening an Equity Trading Account:

Accessibility:

Accessibility is such an important concept here and therefore it is suggested to go for an equity trading account that has accessibility to all the stock exchanges across the country.

Seamless Transactions:

Imagine you are in the middle of trading and often face multiple transaction issues such as transferring amounts. It not only creates hurdles in your transactions but also decreases the mode of trading.

How to Open an Equity Account With Swastika

Step 1:

You are required to choose a DP for your account.

Step 2:

The next step is to fill the account opening form for Demat and trading accounts.

Step 3:

Photo Id proof is required such as PAN card/ Voter ID card/ Passport.

Step 4:

Financial proof is required such as ITR acknowledgment, a copy of annual accounts and more.

Step 5:

Once you cleared all the above steps, you will receive Demat and Trading Accounts.

Conclusion:

Stock trading is something that provides you with high returns too with a short period. Although there are multiple financial securities investors can invest their amount such as government bonds, debts, certificates of deposits. These securities give less return as compared to the stock market.

With Swastika’s equity trading account, you can seamlessly perform stock market operations. Swastika’s trading tips and recommendations will also help you to get the best stocks to invest in.

Finally, we are in 2021, the new year where we are seeing hopes of new opportunities and fast growth. 2020 was the mysterious year wherein the March, the entire world was in extreme pessimism mode but we witnessed a strong comeback whether it is economy, health system, humanity and the most important our market which surprised everyone by its stellar move.

Nifty & Sensex rallied almost 90% from March lows and they ended 2020 with a decent gain of 15%. The market begins 2021 with new heights where Nifty hits high of 14050 while Sensex hits a high of 47980. At the end of the week, Nifty and Sensex ended with a gain of about 2%.

What is Stored in the Data?

FIIs are continuing their buying trend however the momentum has slowed down due to the New Year holiday where they bought around 7493cr in the cash market last week while DIIs are still in the selling mood where they sold around 4171 Cr.

If we talk about F&O data then FIIs’ long exposure in index futures stands at 75% which is an overbought territory and it means if something negative comes then we may see sharp correction because the market is not perfectly hedged. PCR stands at 1.37 mark which is a comfortable level.

What Charts are saying?

Nifty is trading above the psychological mark of 14000 where 14200 is an immediate hurdle while 14350 will be the next hurdle. On the downside, 13950 is an immediate support level while 13800-13750 will be a critical demand zone because below 13750, we can expect any serious profit booking.

Banknifty is also trading above its important hurdle of 31000 while it is facing some resistance in the 31500-31650 zone. If it manages to cross the 13650 mark then we can expect a rally towards 32500/33000 levels. On the downside, 31000-30800 is an immediate demand zone while 30000 will be the critical support level.

Cues for the next week:

• Earning session will kick off by the results of TCS on 8th Jan, Friday.
• Service and Manufacturing PMIs numbers will come globally including India which could have some impact on the market.
• Budget will come on 1st February but a pre-budget may be seen in coming days.
• FIIs’ behaviour will be the key to the market direction.
• Progress of vaccines and Trend in covid19 cases will continue to impact the stock market.

"If you need a financial advisor or counselor look for someone with the heart of a teacher".

Financial Planning is a key aspect in today's world of inflation every one wishes to maintain a healthy situation of wealth in his life. With regular earnings, one can maintain the household expenses & other necessities. But there are some other charges also which need to be met out of the same earning itself.

But there are some unexpected expenses like medical expenses any other casualty which requires a large sum of money and which is totally unplanned. How all this can be done? A small question arises in the mind of every salaried person because these all need to be planned with the current earning which can meet all the requirements.

Financial planning refers to the process of streamlining the income, expenses, assets & liabilities of a household to take care of both current & future needs for the funds. It is thus a process that enables better management of the personal financial situation of a household.

It works primarily through the identification of key goals and putting in place an action plan to realign the finances to meet those goals. It is a holistic approach that considers the existing financial position, evaluates the future needs, puts a process to fund the needs, and reviews the progress.

Financial Advisory Services

The main task of an advisor is to ascertain the needs of his clients to understand his requirements and link them to various financial products available. As we know everyone having a different approach towards life, so an advisor needs to plan all the factors & suggest them the instruments accordingly. An advisor is a person who understands the importance of all financial products on one hand & the needs of the client on the other side.

Reasons Why Financial Advisers are Needed

The following are the primary reasons why financial advisers are needed:

To maintain personal finance many people due to there busy schedule not having time to maintain there own finance due to lack of time & there other professional tasks, As financial planning requires time &  attention, to meet the future needs. As many verities of asset classes are available a person needs to understand them first as per the future objective.

Estimating financial goals, finding suitable products, and arriving at suitable allocations to various assets require specific expertise and skills which may not be available in most households.

Asset allocation is a vast approach one should first understand the needs and requirements of the client then plan to manage it as per the requirement of the client. A professional adviser with capabilities to compare, evaluate, and analyze various products enables making efficient choices from competing products.

Financial planning is a dynamic process it requires proper attention, market situations kept on changing an advisor needs to reallocate the sum as per the situation demands.

Financial planning covers all areas of the client's financial needs and will result in the achievement of each of its objectives. A financial advisor effectively manages its finance with its short and long-term outlook towards it.

With the analysis of objective and advisor make sure about the desire of the client there perspective and objectives of investments. A salaried individual always wishes to have a secure retirement which cannot be done without proper planning and which also requires correct execution of it. A financial advisor is a person who observes the risk capacity and after understanding that he delivers as per the requirements.

Major Elements of Financial Planning & Advisory Services:

Analysis of Personal Finance

An adviser assesses the financial position of the person by bringing up together its income & expenses, his source of income, stability, and growth determine how he may be able to manage current household expenses. His income should be apportioned to expenses and saving for the future.

His income should be allocated in such a manner that it should meet the household aspirations and would lead to a secure lifestyle saving and live comfortably. If expenses are higher then income, his future earning will get affected as to meet the current requirements he needs to borrow funds which seems an easy way to full fill current desires.

This repayment of the borrowing over a period in the future reduces a part of the future income and apportions it to funding the asset that has been bought with a loan. Financial advisers collect information about the household's finances and analyze them in various ways to draw various inferences about their financial position.

Debt Counseling:

Financial advisers help households plan their liabilities efficiently. Evaluating which assets or expenses can be funded by borrowings is a function adviser can perform.

They can advise households about how to finance their assets, how much to borrow, how to provide for repayment, how to ensure that credit scores are not unfavorably impacted. Advisers help households to deal with their borrowings taking into account their need and ability to repay debt.

Insurance Planning:

Insurance is a risk transfer mechanism where a small premium payment can result in payments from the insurance company to tide over risks from unexpected events. The temporary loss of income from disabilities and permanent loss of income from death can be covered with life insurance products.

Health and accident insurance covers help in dealing with unexpected events that can impair the income of a household while increasing its expenses on health care and recuperation. General insurance can provide covers for loss and damage to property and other valuables from fire, theft, and such events. Insurance planning involves estimating the losses to the household from unexpected events and choosing the right products and amounts to cover such losses.

Investment Planning and Asset Allocation:

A crucial component in financial planning and advisory is the funding of the financial goals of a household. Investment planning involves estimating the ability of the household to save and choosing the right assets in which such saving should be invested.

Investment planning considers the purpose or financial goals for which money is being put aside. The focus is on how much money is invested in which particular asset class to deliver the expected return within the risk preference of the investor.

Tax Planning:

A financial advisor should be able to assess the impact of taxes on the finances of the household and advice appropriate saving and investment options. The post-tax return of financial products will have to be considered while choosing products and estimating holding periods.

The Taxability of various heads of income such as dividends, rents, and interest differ. The treatment of return if accumulated, rather than paid out periodically, varies. The taxability of gains differs based on the holding period. A financial adviser should bring in these aspects while constructing a plan for an individual.