ORCHID promoter pledge 80%

Orchid Chemicals and Pharmaceuticals have pledged about 80% of their holdings, as per the disclosure made to the stock exchanges. The move comes after the promoters increased their stake by 4.3% via the creeping acquisition route this year.

This stock is looking weak on charts and with many negative news flows this stock can be better avoided in my view. Bearish doesn’t mean one should short sell it would be better avoided as there are 3000 stocks listed and few stock can be avoided as previously we did caution of IVRCL & ABAN and market takes many months to readjust itself.

http://economictimes.indiatimes.com/features/investors-guide/Biocon-a-good-bet-for-mid-cap-space/articleshow/5710156.cms  Biocon a good bet for mid-cap space

Training seminar one day in Mumbai on 02/April/2010 Friday (Holiday) on Techno-Fundamental analysis by A.K.Prabhakar assisted by Mr. Tanmay Gopal and Mr. Miraj Vora. Previous response shows me that many who follow me wanted to meet and interact so that they get better feel of what to understand of my postings. http://akprabhakar.blogspot.com/2010/03/mumbai-techno-fundamnetal-training.html  

World’s richest man Mexico's Carlos Slim

Mexico's Carlos Slim 70years, named the world's richest man on Wednesday, has amassed a fortune of $53.5 billion, beating Microsoft founder Bill Gates to top the list of the world's richest people, according to a new ranking published by Forbes magazine.

Slim’s business empire includes some of Mexico's best-known department stores, its biggest telecoms operator, hotels, restaurants, oil drilling, building firms and Inbursa bank -- making it hard to go a day in Mexico without paying him some money. Outside Mexico Slim has holdings in such prestigious groups as retailer Saks and New York Times Co.

In 1987, when stocks nosedived during one of Mexico's many crises, Slim saw opportunities where others feared disaster, picking up low-priced shares and selling when they recovered.

"We know that crises are always temporary and there is no evil that lasts 100 years, there is always an overshoot," Slim once said. "When there is a crisis that provokes an adjustment, an overreaction comes along and things get undervalued."

Businessmen, he says, do more good by creating jobs and wealth through investment, "not by being Santa Claus."

http://in.reuters.com/article/businessNews/idINIndia-46816720100310?pageNumber=1&virtualBrandChannel=0

http://www.forbes.com/lists/2010/10/billionaires-2010_Carlos-Slim-Helu-family_WYDJ.html  Carlos Slim Helu & family

http://www.forbes.com/2010/03/10/worlds-richest-people-slim-gates-buffett-billionaires-2010_land.html?boxes=Homepagelighttop  The World's Billionaires

My View: Above data has been taken from various sources and the important lesson I learn from reading is People who can make use of crisis to best effect have made better fortune. But many common investors buy euphoria almost near top and sell in panic near bottom, bad or good time never last. There was a time when Legendary Warren Buffet was sitting on cash 2005-2008 for a major crisis and he was criticize for that and there were rumors that time that he applied for ONGC public issue he waited for 2009 panic to bailout big companies to make fortune for his investor. Today I am unhappy as majority of Indian investor here want quick money and they lose their hard earned money what is the use of banning lottery, racing and cricket betting now many in stock market want to do that. There is no secret to make money overnight. many time traders ask me, “Can you tell me best way to make money in Intraday without losing money” If I knew way of making money without investing money why I would spend 16hours daily on research travel to many town and cities to give seminars and do investor meet or why would I write a article like this. I would have come in Forbes rich list for my 22years experience in stock market; I have never seen a rich technical analyst said a visionary and u can never find one.

Impact of SEBI allowing physical delivery in derivatives

Seminar (Training programme) in Coimbatore on Techno-fundamental in Tamil by A.K.Prabhakar on 13/March/2010 Saturday 9.00-5.30 http://akprabhakar.blogspot.com/2010/03/seminar-in-coimbatore-on-techno.html

Currently Indian stock markets we follow cash settlement system where on the last day of the contract average closing price is the squaring-off value and based on that contract are squared. Where traders manipulate prices by taking large short positions in the futures market near contract expiry and then depress the formula-based settlement price, thus making a windfall on futures positions.

Physical settlement of equities is when an underlying stock is purchased from the cash market and delivered to the counter-party for a specified payment when the contract expires. Chances of manipulation are greater in cash settlement in the absence of physical settlement system. Once such a system is in place, manipulators would know that if they artificially increase or decrease stock prices, counter parties could impose delivery.

http://www.investopedia.com/terms/c/cashsettlement.asp

The Chicago Board of Trade, from where futures and options originated, has physical settlement of derivatives trade and most developed markets in the world follow the same practice. India introduced a system in phased manner so that market is mature enough to adapt to the changes.

Benefits: Volumes in Cash segment would improve, now situation is Cash to Derivative volumes are 1:8 ratio which is keeping Indian market most volatile. As we have mentioned before in one of our article Indian market saw extreme correction in 2008 and extreme recovery in 2009 years of contrasts and any move to link F&O to delivery is positive for market in long run.

Risk factors: Many traders in Indian market don’t understand the risk factor in present simple system and if delivery of option is introduced then immature option writers can face huge risk.

I A.K.Prabhakar has always been against derivative trade and if this system is introduced it is very healthy for Indian market as market would have more stability but small & immature traders would be eradicated if they don’t do their homework well http://akprabhakar.blogspot.com/2010/01/f-trading-futures-that-can-drains-your.html