Posts by Zero stock brokerage

SGX Nifty is an initiative derived from the National Stock Exchange Nifty index. The official trade is conducted on the Singapore Stock Exchange (SGX). A lot of traders keep up with it to predict the potential of the Indian Stock Market.

As of late, the Asian market has had a positive start. The Nifty futures on the Singapore Exchange were traded at 76.50 points or 0.75% higher at 10,323.50. Dalal Street seemingly headed on a positive note on 30^Th June 2020.

On Monday, Nifty50 closed at the same level at which it had opened. The analysis displays a Doji candle formed on the daily chart. The back to back formation suggests that the investors have been indecisive when trading. The swing low of 10,194 should act as a support system of Nifty.

Asian stocks have been valued at higher rates. The Hong Kong’s Hang Seng rose by 0.69% or 166.96 points to an approximate of 24468.24. China’s Shanghai Composite Index rose by 0.12% or 3.59 points to around 2965.11.

In the Japanese market, the benchmark of the Nikkei 225 index gained 1.55% or 340.37 points to around 22335.41. Broader Topix index increased by 1.34% or 20.69 points to 1569.91.

The US stocks closed down comparatively. This was due to the gains of the Boeing Airline shares. The Dow Jones Industrial Value Average advanced 580.25 points or 2.32% to approximately 25595.80. The S&P500 index rose by 44.19 points, 1.47% to about 3053.24. The Nasdaq Composite index surged by 116.93 points, 1.20% to 9874.15.

The Oil prices took a hit due to the weak Japanese Industrial production data. Tensions seemed too high as the fuel demand was steadily increasing. The Coronavirus pandemic restrictions are slowly easing up. The Brent Crude futures fell by 32 cents, 0.8%, which is approximate $41.53/ barrel.

Gold prices closed down at the best prices in over 4 years. The Covid-19 pandemic has increased demand for the metal in the market. The process held steady on Tuesday and it seemed to be entering its biggest quarterly rise. Spot gold was valued at $1770.77 per ounce by 0052 GMT. This is after the $8.29 hike in prices just last week valuing the metal at about $1779.06.

Currencies are holding a good footing in the market. The market on Tuesday has given investors hope of a recovering economy. This has also simultaneously boosted stock prices. The dollar surged at an all-time high over yen. The euro had an upper hand against the greenback. The haven currency, Swiss Franc went easy on the US currency. Sterling was under pressure as the UK government promised to help boost public spending. The rupee on Monday increased by 7 paise and closed at 75.58 against the US currency. This helped ease crude oil prices.

India’s 10-year bond yield declined by 0.17% to 5.90%. This was after trading in the 5.89-5.93 range.

• Geopolitical tensions between China and India have been hampering with the market. The Indian Government banned 59 Chinese Apps in the country, these include TikTok, UC Browser, Shareit, CamScanner, and others. This was taken in caution to the knowledge that the Chinese Government is possibly spying on Indian Citizens.
• Lockdown phase 2 has been put on a halt. It is mainly to introduce new guidelines that need to be strictly implemented in the country until July 31^st. The opening of schools, colleges, theatres, malls, international passenger flights, gymnasiums, social, political, religious congregations all remains banned till announced. Intra-state and inter-state restrictions have been lifted completely.
• Airlines have been canceling flight tickets which have caused confusion and chaos. The changing lockdown norms have been putting airline companies under pressure. Those who have purchased their tickets seem are not even getting their refunds.
• The biggest IT companies in the country, TCS, WIPRO, and Infosys are reconsidering their business with China. This is concerning the border tensions. The software service providers are subdued in China since the country mainly focuses on uplifting Western Company operations.

The SBI has written to the UK home secretary. This is in the query of Vijay Mallya seeking asylum in the UK. The letter has been written on the behalf of lenders and it urges the authorities to expedite the businessman to recover his dues from him.

With the ultimate rise of many prolific discount brokers. The Indian broking enterprises saw a massive depletion and disruption in other broking institutions. These discount brokers offer a cheaper brokerage plan, which is how they can build competition among others and manage their customer base.

Due to such disruptions, many existing brokers and firms started to duplicate the concept and offer cheaper plans than traditional brokers. Almost after decades since such brokers started getting attention, and the concept of discount brokers became extremely popular.

Discount brokers offer low brokerage, they possess high speed and has a faster platform for trading in stocks, commodities and currency derivatives. The brokerage charges implemented while trading with some of the most esteemed discount brokers is less as compared to the conventional once.

Many such traditional companies in India include HDFC Securities, ICICI direct, SBI cap, and more. Besides the traditional business model, the discount brokerage business model is way simpler and transparent. They offer a flat brokerage rate for every trade which is made by their client. This is oblivious to the size of trades, and the rate differs between Rs. 10 to 20 per trade.

On the other hand, full-service brokers charge some fraction of fees on the transaction volume. This commission rate can be as high as 0.3 to 0.7% of the total transaction volume. Hence, as the transaction volume increases, you have to pay more brokerage.

Any discount brokerage is a company that executes your buying and selling orders at a very low trading fee.  There is a difference between full-service brokers and discount brokers is a matter of services, and hence a good discount broker makes the charges lower than conventional once.

However, discount brokers do provide some benefits like research, personal investment advice, tax planning, or Robo-advisories. This makes discount brokers most attractive in the trading field and these traits make a reliable and good discount broker.

Many discount brokers are capable of outranking the giant and well-determined and traditional trading firms due to their customer-oriented offerings. Some of the big names that come into considerations when speaking of discount brokerage are,

• Angle broking
• Trade smart
• 5paisa
• SAMCO
• Wisdom capital
• Zerodha
• Upstox
• Tradeiin

These are known to be the best discount brokers. Moreover, evaluating the best discount brokers is not daunting, and can be done with a few comparisons. The key features which are included in the comparisons include brokerage charges, account opening charges, maintenance charges, services offered, trading platforms, and more.

Many brokers claim to be best in class, however, only a few discount brokers can be relied on and trusted. The difference between such discount brokers and full-service brokers is a matter of few services. Some genuine discount brokers do offer extra services and charge service compensations much lower as compared to full-service brokers. Hence comparing from discount brokers become easier with this guide, if followed diligently.

Bank Nifty holds and represents 12 most liquid and large capitalized stocks from the banking sector which trade on the National Stock Exchange (NSE). It also provides investors and market intermediaries a benchmark that captures the capital market performance of the country’s banking sector.

However, the market rallied 40 percent in March, which was backed largely by liquidity and the hope of re-opening of economies globally after stringent lockdowns. The Nifty Auto index gained 45 percent from its lows.

On Thursday, 25^th June 2020, the shares closed slightly lower. The International Monetary Fund predicted the Indian economy may shrink by 4.5% this year. The NSEI ended at 0.16% to 10,288.90.  The BSESN dropped 0.1% to 34,842.10.

The Nifty 50 index has risen to about 37% after 4 years of hitting low. The economy saw foreign investment in the country, despite the continuing pandemic. The world stocks notably hit their lowest in a week by Thursday.

The IMF has predicted the possibility of a global recession in the economy. Investors have been closely monitoring Coronavirus cases across the globe. Mayuresh Joshi, Head of equity research at William O’Neil, Mumbai expresses that liquidity is what is compensating for the growth downgrades and increasing coronavirus cases in the economy. The hope remains that central bankers will continue putting liquidity infusing policies into action.

However, Gautam Shah has a different view.”The action of last one week looks like the Nifty 50 is in a transition phase and the technical setup got weaker now,” said the founder and chief strategist at Goldilocks Premium Research in an interview with CNBC-TV18.

He expressed that 10,500-10,700 looks like a wall of resistance.”Now indicate on the chart that the market probably is setting up for a breakdown. If the index closed below 10,280 levels, then it could see 9,950 and then eventually 9,600 in coming weeks. The risk reward to go long is not justified now,” he further said.

He also said that the leadership was not going to come to too many sectors.” it is the time to be conservative and cautious as there are conditions that the breakdown may be seen in the coming sessions.”

Shah believes the bigger rally in pharma, chemical, insurance, Midcap IT, gold, and silver is yet to happen, whereas the rest is looking toppish now. Bank Nifty rallied 28 percent from its March lows, continuing to underperform not only to Nifty50 but also other major indices and global markets.

“If the 21,200 levels get violated then 20,500-19,500 can be seen and eventually it can break 18,000 as well. It provides the best shorting opportunities. Medium and long term charts also do not indicate that one can be a buyer in the index at these levels. Hence, be careful in Nifty as well as Bank Nifty,” he said in a statement.

“It suggests that the index discounted too much, this rally is not likely to sustain. These are not levels to enter, better lighten up positions as over the next couple of weeks, there could be reversal not only in auto but also capital goods and oil & gas sectors…We have 10,700 targets for the Nifty Pharma index, and eventually it may hit 12,000 marks. We continue to be positive on the sector. If Nifty50 and Bank Nifty break down, the focus would shift to pharma only,” Shah said.

The country’s equity benchmark is said to a possibility of furthering and extending their gains after rising 11.4 percent in the past six trading sessions. On Wednesday, Nifty reclaimed the psychologically crucial 10,000-mark for the first time since March 13. Most technical and derivatives analysts expect that the index will touch 10,500 in June. The index ended up 82.45 points, or 0.8 percent, at 10,061.55 on Wednesday and analysts expect the Bank Nifty to continue rising and touch 22,000-22,500.

Amit Gupta, Head of derivatives, of ICICI direct, said in a statement, “We believe the Nifty will hit 10,300 in June and the support is expected around 9,500. The 9,500 call option has seen the closure of positions and positions are being built in 10,300 and 10,500. This rally will be led by banking, metals, and consumer stocks.

We expect the Bank Nifty to touch 22,500. People should build a stock-specific portfolio particularly in beaten-down stocks.”  While Rohit Srivastava, the Founder of Indiacharts.com expressed “We may see the 10,550-mark soon which is a 61 percent retracement of entire fall we have seen from January. Gains will sustain given the macro outlook on the dollar — which has started to weaken and is reducing pressure on emerging markets.

The Bank Nifty has fallen more than the Nifty and it will continue to play catch-up.”

Zerodha is India’s first-ever and most popular discount broker, with regards to volume and growth. It offers concessions for demat as well as trading accounts to its customers. A demat account is used to uphold stocks and scripts with investors. In other words, a Demat account allows the investor to store shares in a digital form. The process to open a demat account is seamless and requires a few documents to be kept handy.

The process of opening an online demat account is a 10 step process, listed below:

• Visit the Zerodha website and navigate over the Zerodha demat account opening page.
• Enter mobile number for signing up, an OTP will be sent to the phone number provided. The phone number should be registered with your Aadhar Card.
• Enter the OTP to verify the details.
• Once logged in, enter PAN number and Date of Birth to start the application.
• For online payments company gives two options to choose between, Only equity and other is for Derivatives, commodities and forex,, both with varying rates. A user can choose to open either an equity account or a commodity account. The rates for the two are: Equity Account: Rs. 200 Commodity account: Rs 100 Payment can be done via net banking, UPI, credit card, or debit card, as per the convenience. The purchase receipt will be sent to the registered email id.
• Provide bank information- the following bank information needs to be provided, Branch IFSC Code Bank account number. The information can be found on the user’s cheque.
• Once financial information is provided, some background information, including personal information like occupation, father’s name, and mother’s name is required.
• Once all the information is fed in, IPV  Verification takes place. The In-person verification is a guideline for opening a demat account, set up by SEBI. All traders must follow the IPV step. If PAN card is verified by KRA, this step can be skipped. The user will see an OTP on the screen and is required to note down the OTP on a piece of paper and hold it in front of the webcam or mobile front cam, as per convenience. Don’t forget to save the picture!
• The next step requires details of Aadhar card and verification of OTP.
• Once Aadhaar card e-sign is done, upload all the documents for online verification.
• The e-sign process requires OTP verification through Aadhar card with Registered phone number.
• For the final step, the sales team at Zerodha authenticate the documents and the user receives an email along with a demat Power of Attorney (POA). according to mandatory SEBI norms, POA needs to be downloaded, printed, and physically signed by the user and sent to Zerodha office via post/courier.