Wise Investing

Hello friends I hope you all are doing well yet another interesting topic  How to save your portfolio against the falling rupee? The Indian rupee has depreciated nearly 4% this year. While the overall impact of a weaker rupee is negative on the equity market, some sectors stand to benefit from this fall  The Reserve Bank of India’s rate hike in May, in order to be in line with the global market sentiment, has pushed the domestic currency to record low levels. The rupee has skidded over 2 percent against the US dollar in May, seeing its worst monthly decline in 2022. In comparison, the S&P Sensex and Nifty 50 tanked over 3 percent each during the period. Weak economic data, rising interest rates, soaring inflation, and the exit of foreign investors are some of the key triggers behind the rupee’s meltdown.  That is because a depreciating rupee does not bode well for foreign investors as returns reduce from Indian investments, prompting their departure. According to data provided by J

Hello everyone it's important to  save when you have earned big  Tax loss harvesting is a tax-saving measure where taxpayers can reap benefit from underperforming stocks long-term capital gains are subject to tax, here I am with a huge tax burden this year. You might have some ‘dud’ stocks in your portfolio and these stocks can possibly never get back to the price at which you bought, let alone make money for you. Now is the time to use such loss-making stocks. So this year, when you’ve incurred capital gains, especially long-term capital gains, it will be a good idea to get rid of these dud scripts and utilise the capital loss to reduce the tax liability. This way of reaping benefit from underperforming stocks is called tax loss harvesting. when investors are able to estimate that even in the next assessment year, their capital gains may be high, it’s a common practice to buy back or repurchase the shares sold. This way you are creating a buffer for loss harvesting. Essentially, i

Hello everyone  Hear is something  that every trader wants to know that indicates reversal in trend A double top pattern is formed from two consecutive rounding tops. The first rounding top forms an upside-down ‘U’ pattern. Rounding tops can often be an indicator for a bearish reversal, as they often occur after an extended bullish rally. If a double top occurs, the second rounded top will usually be slightly below the first rounded tops peak indicating resistance and exhaustion. Their formation suggests that investors are seeking to obtain final profits from a longer bullish trend.  Below Image for more clear view  Double bottom patterns, on the other hand, are essentially the opposite of double top patterns. A double bottom is formed following a single rounding bottom pattern which can also be the first sign of a potential reversal. Rounding bottom patterns will typically occur at the end of an extended bearish trend. After a double bottom, common trading strategies include long po

 (Q1) How much crude does India consume? India is the 3rd largest consumer of Oil at 5.35 million barrels per day (MBPD) behind US (21.2mbpd) and China (15.1mbpd) India imports nearly 85% of its total Crude oil consumption every year.  India's own production has been below 700,000 barrels per day for a long time. (Q2) Where does India import the balance requirement from? India imports oil in the following share as per FY 21 numbers:  Iraq 17%,  Saudi Arabia 16%,  UAE 14%,  USA 9%,  Qatar 8%,  Others 38% India import share for Oil from Russia is under 2%, an insignificant number. (Q3) How does India's Oil trade deficit look like? Definition: Oil imports - Oil Exports = Oil trade deficit  India imports about 290 Million tones of Oil in a year.  Assuming that Oil prices are at $75 (last year), India's oil import bill is ~ $165bn (290m * $75) India exports refined petroleum products as well. At $75 oil price those exports would amount to $58bn Oil trade deficit at crude $75 (Im

Why gold price move It is said that gold is an Inflation hedge. Whenever Inflation goes up, Gold prices go up. But if you look at the historical data points, Gold has not really been able to live upto the expectations. (Q1) What really moves gold prices? It’s not just inflation but a combination of Inflation & Interest Rates that moves Gold prices. Real Rate of Return like we call it moves the gold prices. (Q2) What is a real rate of return? Real Rate of Return in simple language is, Interest Rate – Inflation. If bank FD is paying you 5% & inflation is 6%, your real return is 5% - 6% = -1% & if inflation is 3%, your real return is 5% - 3% = 2% (Q3) What’s the relationship between real rates & gold prices? (a) Negative Real Rates (-1% in the above example) is supportive of gold prices (b) Positive Real Rates (2% in the above example) works against gold prices (Q4) Why? (a) Gold is a non interest-baring instrument i.e. does not pay any fixed interest.  (b) Hence, whenever

 Six investment myths/mistakes you should ignore    When you are a new investor, you must ensure to avoid falling into the trap of investment myths that swirl all around us. Let us find out what those myths are    As a new investor, when you ask about good market strategies, the experts may give you several ‘truisms’, which may not actually be true. So, you should be quite careful as you begin your investment journey. In fact, what perhaps you believed to be the key tenets of the investment may turn out to be investment myths.    Let us shed light on the six investment myths that you must ignore:    1. Waiting for the market to fall before investing: It is often believed that investors should buy the stocks at the right time when they are trading lower. Although this is an ideal thing to do, sadly no one knows the right time. So, if the stock you want to buy is available at the right price, you may buy it. If you wait too long, you may not get it even at the current price.  2. You must

 What is US dollar index? The US dollar index is used to measure the value of US dollar against a basket of six major worth currencies of the US’ significant trading partners. These currencies are Euro, Swiss Franc, Japanese Yen, Canadian dollar, British pound, and Swedish Krona. The value of the index an indication of the dollar’s value in global markets. A higher reading means a stronger dollar.  The dollar index was established in 1973 after the Bretton Woods Agreement dissolved with a base of 100.  The Euro makes almost 57.6 percent of the basket and is the largest component of the index followed by Japanese Yen with 13.6 percent. GB Pound has 11.9 percent weightage, Canadian dollar 9.1 percent, Swedish Krona 4.2 percent and Swiss Franc has 3.6 percent weightage. How does it affect Indian markets? The Indian rupee (INR) is not included in the basket of currencies in the dollar index However, any change in the index has an impact on the rupee as well. The appreciation or depreciatio