Renuka Sugars

Hey friends,

This is one swing trade which I took in recent times. The name of the stock is Shree Renuka Sugar. This stock has been in my radar for few days and was waiting for the perfect opportunity.

   

 

I have been following this stock for few days and was able to observe that the stock was giving a movement inside the channel which you could see from the above screenshot. The stock was travelling almost above the EMA 20 and 40 for most of the time inside the channel, although there was a downside seen which was due to the result of the crises between Russia and Ukraine. But the stock didn't break the channel which gave a clear indication that still this can be kept in my radar. Once when it crossed EMA 20 and 40, and also the volume was also huge I made my entry. 

This was a perfect entry I would say as it showed a clear bullish trend. I was aiming for nearly 10 points and made my setup in such a manner that I'll exit the trade once when the channel gets broken. During my holding time, to my surprise I could see that the stock was rocketing high and then came to know that this action was a result of the latest news that the Adani groups are planning to take over Renuka sugars in recent future. As a result I was able to hit my target at the earliest.

In this trade, the technical analysis was playing a huge role and also, like icing the cake, Adani group came into action due to which the stock gave a tremendous breakout.

TV18BRDCST SwingTrade..!!

 Hi Guys,

I've been an active investor and a trader in various financial instruments. One of my favorite instrument is stocks. 

Of late, I started actively involving in swing trading. (For newbies, swing trading is nothing but the act where you hold a particular stock for some days to few weeks thereby reducing your loss when compared to intraday trading). Today, I'll discuss one such swing trading where I was able to achieve my target.

The stock I'm mentioning here is TV18BRDCST. I've attached my technical analysis of this stock in the below screenshot.

I had my support ranges S1 at 69.55 and S2 at 63.15, and my resistance R at 76. When my stock crossed the S1 69.55 I entered somewhere around 69. Then there were some ups and downs seen as a result of the dispute between Russia and Ukraine. Finally after a complete trading week there was a strong bullish candle seen and this is the day where the stock price crossed the major resistance zone R at 76 and created a new 52W high. We could also see that the supply demand range was also giving a clear picture for this rally. 

Generally for swing trading my Risk to Reward ratio will be 1:2 or 1:3 and for this trade I was able to achieve 1:3 ratio.

Yeah, finally this was a good trade and got to know a lot of things.

(Note: The above view is completely based on personal experience and not recommended for any copy trading. If you are entering a trade kindly do your research and some ground works before entering.)

Post Office Monthly Income Scheme (POMIS)

 The one and only thing which we humans always fear to say enough is MONEY. Imagine a situation where you get paid every month aside your monthly income. Today I would like to introduce you to a monthly scheme called Post office Monthly Scheme (POMIS).

Though there are many investment schemes this post office monthly scheme is a wonderful scheme which is handy for many college students, senior citizens, a working profession who has started his career only a few years back and even a 10 years kid. 

The concept of POMIS is simple. You invest a lump sum money in the scheme, you are paid the interest on a monthly basis. People may think that this sounds quite similar to a Recurring deposit but the difference here is you invest a huge amount and the interest is provided on a monthly basis and the investment at the time of maturity whereas in recurring deposit, both the interest and the investment gets matured at the end of tenure.

The minimum investment here is Rs.1500 and you can invest in multiples of Rs.1500. The maximum investment is about Rs.4,50,000. A maximum of Rs.9,00,000 can be invested when it is a joint account.

An interest rate of 6.6% p.a is provided and this remains unchanged throughout your tenure period, irrespective of any changes made by the government. The interest can be directed to post office savings account or the bank savings account

A person who is above 10 years, an Indian citizen is eligible to enroll in this scheme. 

POMIS doesn't encourage premature withdrawal. The tenure period is around 5 years. Mandatorily you need to invest the amount for one year. After that if you wish to withdraw the money somewhere between 1 to 3 years a penalty 2% is levied, where as if you wish to withdraw the money after 3 years a penalty of 1% is levied on your investment.

The POMIS can be transferred from one Post Office to another.

This scheme has no tax benefit. Though the post office doesn't charge any taxes on the source, the interest is considered as a source of income and you will have to pay the tax if it falls under the taxable slab.

The above tabulation gives an idea on the Interest obtained per month for various investments.

An investment must be in such a way where the risk rate must be less and the interest rate must also be quite higher. POMIS is one such instrument which is guaranteed by the government and 100% safe.

So, think and grow your money.

Inflation

 Have you ever wondered why the cost of a Coconut has raised from Rs.20 to Rs.30 in a span of two months. Okay, don't think too much. Today I would like to bring in the concept of Inflation which acts as a main reason behind the price hike.

Inflation is nothing but continuous increase in price of goods and services in a country. With the increase in inflation, the power of the currency decreases. 

Inflation happens mainly due to two reasons.

• When the demand for the good or service is more than the supply.
• The cost of production increases with increase in wages, raw materials etc. which in turn increases the cost of goods and services.

Every individual's ultimate aim in life is to make huge money and have sufficient savings. What happens when this aim breaks down due to inflation factor. Generally, inflation grows at a rate of 6%-8%. Consider that you had invested 1 lakh rupee and it yields an interest of 6%, then you will be making around Rs1,06,000 during the end of the investment period. But if you keenly observe you would have been back to square one. Due to inflation all the goods and services cost would have been increased the same time when you thought you were making money from you investment. 

An investment should be in such a way that it gives you higher interest rate overcoming the inflation factor. So think wisely and make your investment in such a way where you are yielded with highest benefits.

What is Financial Year?

After graduation I started working in the year 2018. My salary credits every month on 25th. So whenever I receive the pop up message stating Rs XX has been credited into your account YY, I'll be in a transport of Joy. This continued for few months and one fine day there was a hustle amongst my colleagues and for the first time I heard a friend asking me "Have you filed your Income Tax  for the financial year ?" . I was in a clearly confused state and not sure what to answer. That evening I returned from my work and wanted to know what is Financial year and why everyone goes crazy on hearing the word.

Generally, the calendar year starts from January 1 and ends on December 31, where as the financial year starts on April 1 and ends on March 31. This year which spans two calendar year is called as financial year.

The financial year in which you earn the income is termed as Previous year where the following year on which your IT returns gets assessed is referred to as Assessment year. Consider that I file my IT returns for the financial year 2019-2020, this span of period is referred to as Previous year. Now the filing which I did will be assessed in the year 2020-2021. So on filing the Income Tax Return (ITR) form for the financial year 2019-2020, it will be mentioned as Assessment Year 2020-2021.