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Tag: investing

  • All The Ways In Which You Can Use VIX

    VIX is a contract that you’ve likely heard of if you’ve ever traded futures or options. The NSE VIX futures contracts can be traded in the same way that index and equity futures and options are. To begin, what precisely is a VIX contract? The volatility index (VIX) is a metric for market volatility, thus its name. Since a high VIX implies a high amount of fear in the market and a low VIX suggests a high level of confidence, it is commonly referred to as the Fear Index.

    Examine some strategies for trading the VIX in India and some methods for trading the VIX in general. Do you realise that the India VIX and the Nifty are negatively correlated? What you should know about VIX is summarised below.

    Before we get started on how you can use VIX, it is important that you have the right tools to trade efficiently. That is why as an online trading company we have created a high-end online trading platform with the lowest brokerage for you to maximize your returns from the market.


    It’s important to keep in mind that the VIX measures market expectations for volatility.

    To compute the VIX, VIX typically employs options expiring in the current month and the following month. According to the VIX, it is assumed that the premium on important Nifty options indicates the market’s implied volatility. Because of this, you can get a fair sense of how volatile the options are by averaging them. Expectations of more volatility are typically reflected in the price of options (both calls and puts). Nifty option order books are used to construct the India VIX. When determining the best bid-ask prices, we look at both the near-month and next-month Nifty options. As an indicator of how volatile India’s stock market is projected to be in the following 30 days. This is how the India VIX is computed:

    NSE calculates and distributes the VIX on a real-time basis, hence the formula is only for educational reasons. In order to fully grasp the VIX, it is necessary to understand how it is interpreted and what it means.

    How to use VIX in practise is a more important subject than its simple depiction of projected volatility or risk. This is how you can accomplish it:

    For equities traders, the VIX is an excellent and reliable indicator of market risk
    Stock traders who trade intraday and for the short term might use this information to gauge whether the market’s volatility is rising or falling. They’ll be able to fine-tune their approach. Intraday traders, for instance, run the danger of stop losses being swiftly triggered when volatility is projected to go up sharply. Consequently, they have the option of either reducing their leverage or widening their stop losses.

    For long-term investors, the VIX is a great indicator. Most long-term investors are unconcerned by the volatility of the stock market. The risk and MTM losses of institutional investors and proprietary trading desks, however, are limited. To play the market both ways, they can boost their hedges in the form of put options when the VIX shows a rise in volatility.

    Traders of options can potentially benefit from VIX as an indicator. When deciding whether to buy or sell an option, volatility is typically taken into account. In times of high volatility, options become more valuable and buyers are likely to profit more. Option sellers stand to gain when the VIX declines since more time value will be wasted.

    Volatility trading is also important. Consider buying strangles or straddling if you think the market will be more volatile in the future. However, when volatility is expected to rise, these become extremely expensive. In order to reap the benefits of volatility without having to worry about the direction of the market, you should buy futures on the VIX index itself.

    This index’s volatility is well-captured by the VIX. You can clearly detect a negative link between VIX and the Nifty if you map their movements over the previous nine years from the beginning of VIX. The volatility index (VIX) tends to rise and fall in tandem with the market’s overall performance. Index traders can use this data as an input.

    Portfolio and mutual fund managers can greatly benefit from the VIX index. When the VIX reaches its all-time high, investors can aim to increase their exposure to high beta companies, and when the VIX reaches its all-time low, investors can increase their exposure to low beta stocks.

    Although the India VIX has only been around for a little over a decade, it has already become a reliable indicator of market risk and volatility.

    As we mentioned earlier it is important that you have the right tools to trade efficiently. That is why as an online trading company we have created a high-end online trading platform with the lowest brokerage for you to maximize your returns from the market.

  • 7 Things To Do At The Start Of Every Financial Year

    While it is natural for us to feel less bothered at the start of the financial year, reviewing your finances is an exercise you can conduct in April to ensure the remainder of the year is similarly stress-free. This analysis will help you in determining how well you handle your finances in the previous year and where you stand now. It will also assist you in taking the necessary actions to manage your finances properly in the short and long run.

    In this article, we’ll go over seven crucial things that should be included in your yearly start-of-financial-year assessment, as well as how to go about doing it. But before we get into that you need to understand that investment is also about choosing the right technologies. As one of the top brokers in share market, we at Zebu offer trading accounts with lowest brokerage, and an online trading platform to help you focus only on executing your strategies efficiently.

    1. Review your asset allocation and, if necessary, rebalance

    The first step toward improved money management is to analyse your portfolio across multiple asset classes and rebalance if your asset allocation has changed significantly.

    Assume you started the year with a 70% allocation to equities, a 25% allocation to debt, and a 5% allocation to gold. Equities are up roughly 21% in FY22, debt is up 5.5%, and gold is up 15.4%. As a result, your portfolio is slightly more biased towards equity, with shares accounting for approximately 72.5% of your portfolio, 22.6% for debt, and 4.9% for gold.

    To get back to your original asset allocation, you’ll need to rebalance your portfolio. Because your equity allocation has increased, you will need to register profits in equities and reinvest the proceeds in Debt and Gold in this case. Alternately, you might restructure your monthly SIPs to include more Debt and Gold.

    This activity guarantees that your portfolio’s risk is balanced, allowing you to better manage drawdowns.

    2. Examine Your Objectives

    The beginning of the fiscal year is an excellent opportunity to assess your progress toward your objectives. It’s likely that the amount you’ll need has risen more than you expected when calculating the amount you’ll need. If you were planning to buy a car, for example, excessive input costs may have caused prices to rise above average. In this case, you’ll need to recalculate how much you’ll need to invest each month in order to have the money you’ll need when the time comes.

    3. Evaluate Your Portfolio

    While long-term investing is essential for wealth accumulation, this does not mean you should invest and forget. A portfolio review should be done on a regular basis, and the beginning of the financial year is an ideal time to do so.

    A review will show you which funds have outperformed, which have performed as expected, and which have underperformed. While it’s tempting to get rid of laggards, you should be cautious about how you go about doing so.

    You should ideally only evaluate funds that have been underperforming for a long period (say at least 1.5 years). If the entire segment has fallen, a fund with negative returns may not be underperforming. As a result, you must compare the fund’s performance to that of the category as a whole. For example, if the fund has declined but not as much as the category average, you may choose to continue with it due to its stronger downside protection qualities.

    When your goals change, it’s also a good idea to review your portfolio. For example, when you were 10 to 15 years away from retirement, you began investing in an Equity Fund. However, you’ve nearly reached your goal amount and are only two years away from retiring. In this case, you’ll need to devote a larger portion of your collected wealth to fixed-income investments.

    4. Examine Your Life Insurance Requirements

    Your obligations expand dramatically after major life events such as marriage, becoming a parent, purchasing a home, and so on. You must ensure that your life insurance policy is adequate to meet all of these new duties.

    So go back to the calculations you used to determine the correct coverage for yourself, add the amount you’ll need to cover the additional duties and get any additional coverage you require.

    Remember that your coverage should be sufficient to give a monthly income to your dependents, pay off any debts, and leave money aside for future one-time large needs such as your children’s education.

    5. Look over your health insurance policy

    Major life events such as marriage and becoming a parent requires a review of your health insurance coverage.

    If you purchased a policy before getting married, you most likely purchased an individual policy with an adequate quantity of coverage. With more family members, you’ll need not simply a larger policy, but you’ll also want to be sure they’re protected. Converting your health insurance policy to a family floater and boosting the coverage is the simplest way to accomplish this. This ensures that the coverage remains in effect and that you do not miss out on any advantages.

    6. Begin Your Tax Preparation

    It’s ideal to begin tax preparation early in the fiscal year. That’s because you’ll have enough time to figure out how much you’ll need to invest to save the most money on taxes and weigh all of your possibilities. Furthermore, because you have the entire year to invest the funds, you can spread them out.

    If you plan to invest in market-linked products like ELSS and NPS, tax planning at the start of the year is even more important. Having a SIP that helps you save tax throughout the course of the year ensures that you benefit from market ups and downs. If you wait until the last minute, though, you will be forced to invest even if the markets are at an all-time high and there is a chance that they will fall. Furthermore, the money you will invest will be substantial.

    7. Increase the amount of money you put aside each month

    With an increase in your salary, you should increase your SIP investment by 10% per year. This will assist you in achieving your financial objectives more quickly. Other investment options include the National Pension System (NPS), which provides an extra Rs. 50,000 deductions in addition to the Rs. 1.5 lakh deduction provided under Section 80C. You can register a Sukanya Samriddhi Yojana account for your daughter if she is under the age of 11. This plan will give you a better return than the PPF or other small savings plans.

    These methods will assist you in improving your financial situation and ensuring a smooth financial journey in the future.

  • Monthly vs Yearly SIP Investing: Which is Better?

    Now that you’ve learned everything there is to know about SIP investing, the big issue is: what is the ideal investment tenure? Should you make a monthly or annual SIP investment?

    Though many individuals are familiar with monthly SIPs, they are less familiar with annual SIPs.

    Assume Mr. A sets aside a portion of his monthly salary for the SIP investment before paying any other costs. He doesn’t have to worry about the investment frequency as long as his cash flow and investment frequency are both the same. It gets tough when he does not have a consistent cash flow because his investments will suffer. In such cases, he may want to explore a yearly SIP investment.

    People who are unable to make decisions based on what suits them and what does not can use basic calculations before making a decision. There are a number of SIP calculators online that can help you compare returns based on whether you invest monthly or annually. The calculations are based on the mutual fund’s NAV history, and the results can be derived for any investment period if the NAV data for that period is available.

    Are you also interested in other investment opportunities that can give you high returns? Then consider Zebu to get started, as a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey.

    Which SIP Investment yields the highest returns?

    It is widely assumed that more disciplined SIP investment yields higher returns. Regular investing will help you stay on top of market volatility because you will be investing at both high and low points. The average outcome will be perfect. If the market rises on the date of the investment for a SIP investment with a large gap between investment times, you will lose out on the rewards.

    On the other hand, if you are investing on a daily basis, you do not need to be concerned with market movement or keep a close eye on it. This is because you invest on a regular basis and the market is available to you at all times.

    When it comes to returns, the longer the investment time, the less variation there will be in the return value, regardless of the tenure you choose. According to research, the difference between daily, monthly, and quarterly SIP investments is only 1 to 2 percentage points. Even while daily SIP investments have always yielded higher returns, they have always been marginal.

    Cash Flow and SIP Investment
    SIP investments should always be assigned to your cash flow and income, as we’ve said many times before. A monthly SIP should be the most convenient option for salaried folks because they receive their pay on a monthly basis and can invest on a regular basis. They can easily provide their banks an ECS command to ensure that money is deducted from their accounts on a specific date.

    It’s best to keep the debit for the first week of each month so that you can prepare for the rest of your expenses. They must ensure that they have sufficient finances to make the SIP investment on a daily basis and that the investment is not stopped.

    The key benefit of having a daily SIP investment is that it allows you to average your investment costs. However, daily SIP investments are generally not suggested for a variety of reasons.

    The most typical reason is that your bank may refuse to transfer funds from your account on a daily basis. Second, there is a danger that you will miss a payment, which will jeopardise your investment. The last and most essential one is that calculating the tax due to capital gains will be a major headache.

    Because quarterly SIPs are not adept at capturing market changes, it is best to stick to monthly SIPs. Having a daily SIP investment can also result in 25-30 bank transfer entries, which might be difficult to keep track of. As a result, the best time to invest in SIPs is on a monthly basis.

    Risk Factor

    When selecting a SIP investment option, it’s important to consider the risk factor as well as the cash flow factor. The lower the SIP investment frequency, the greater the danger, because the market will vary and you will be unable to keep track of it.

    The frequency with which you invest should be determined by your willingness to incur risks. In such cases, monthly SIP investment is usually recommended because it gives you an advantage over other tenures, as well as the benefit of averaging rupee cost and assisting with cash flow management. Even if you receive a large sum, stay organised and invest wisely. At the end of the day, the decision is yours to make, and you have a greater understanding of your wealth objectives.

    As a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey. Contact Zebu to know more on how to get started on your share market investment journey.

  • The What, How and Why of SIPs

    SIPs are simply the way in which you plan your investments. You can start investing little sums, one instalment at a time, over a period of years with the help of a SIP investment and develop your wealth.

    Compounding is at work here, and if you keep investing for a long time, it will pay off handsomely. It is the amount of time you spend investing that matters, and not when you start investing.

    When it comes to starting investments today, the first two things that come to mind are mutual fund investments and systematic investment plans (SIPs). Mutual funds can help you not only build wealth but also save money and achieve financial independence. SIP investments, like mutual fund investments, are becoming increasingly popular.

    SIP allows you to buy mutual fund units at your convenience and within your budget. To minimise any last-minute payment inconsistencies, investors usually strive to maintain the SIP debit date close to the salary date. The money is automatically deducted from your bank account based on the bank’s standing instructions. It also helps in the formation of financial discipline in investors.

    However if you consider investing or trading in share market, we at Zebu a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market.

    How Do You Begin SIP Investing?

    You can purchase mutual funds directly from direct fund companies, either online or offline, or both. Depending on your option, you can open a SIP account by visiting your nearest bank or by going online. The funds can be purchased in a flat sum or over time through a systematic investment plan (SIP). Agents can also assist you in purchasing mutual funds. To begin trading, all you need to do is open a trading account and complete the mandatory KYC. And we at Zebu are here to help you with that. Please get in touch with us to know more about investing in SIPs and how you can build your wealth.

    How Do You Pick the Best Mutual Fund?

    There are so many investment options available today that deciding which one is best for you can be incredibly challenging.

    The various mutual fund plans are further classified as equity, debt, or hybrid funds. The mutual fund you’ve chosen should be a good fit for your long-term objectives. If your objective is to retire early, for example, you should choose a fund that will help you increase your money in the shortest amount of time. Make it a point to look at the fund’s long-term record, the fund manager’s performance, and the expense ratio. All of this information can be found on the fund’s website.

    Which Option Should You Pick?

    Almost all of the funds available these days provide you with the option of choosing between two options: dividend or growth. If you choose the dividend fund option, you will be paid on a regular basis according to the fund’s due date.

    The growth option, on the other hand, allows you to reinvest your dividends, resulting in higher returns and a higher net asset value. Depending on your needs and preferences, you can select one of the two possibilities.

    Which should you choose: Direct or Regular?

    Almost every fund on the market today has two options: direct or regular. There are no intermediaries in the direct one because it is sold straight by the fund houses. The traditional one has agents and mediators in the middle, resulting in a greater expense ratio and lesser profits. Direct funds are a superior option if you’re seeking long-term investment options.

    What should the quantity of investment be?

    The biggest advantage of SIP investing is that you can invest any amount you like, even as little as INR500 every month. Minimum values vary depending on the scheme. You can use a SIP calculator to figure out how much to invest in order to get the desired end result.

    For example, if you require Rs 1 crore in the next 20 years, you should invest INR.10000 every month in a scheme that will provide you with 12% annual returns.

    Returns

    All of the funds’ returns are calculated according to the specified dates, and they are also available on the fund’s website. Take your time to learn about the fund’s short and long-term returns to gain a clear picture of its performance.

    Risks

    There’s an old adage that great risks lead to great rewards. SIP investments work in a similar way. You can easily earn some decent profits if you are ready to take chances. The returns are primarily determined by the market’s volatility and how it operates.

    The equity funds are invested in stocks, and the returns are entirely contingent on the stock’s market success. Debt funds are low-risk investments that often invest in government bonds and treasury bills, among other things. However, due to the microeconomics involved, even these cannot be considered risk-free.

    Tax

    When you try to redeem your investment after the fund’s duration has ended, the units you invested are redeemed on a first-in, first-out basis. The units you bought, in the beginning, will be redeemed first, followed by the units you bought afterwards.

    Long-term capital gains tax exemption is available for equity funds that are considered long-term investments. If you opt to redeem stock units before the one-year period is through, you will be subject to a 14.5 per cent short-term capital gain tax. For an amount up to Rs 10 lakh each year, equity returns are tax-free.

    Debt fund investments are only deemed long-term investments until they have been successfully completed for three years, at which point you will be eligible for tax benefits. This money is taxed at a 38.45 per cent rate.

    How do you keep track of your SIP?

    SIPs, like any other investment, must be tracked. You just cannot leave them unattended, despite the fact that they are considered safe and reliable. The performance of mutual funds can be tracked using their statements. If you notice any discrepancies and the fund’s performance falls short of your expectations, you can switch it at any time or redeem the units you deposited.

    As we mentioned earlier if you are planning to invest or trade, we at Zebu a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market.

  • 10 Awesome Stock Market Movies To Binge This Long Weekend

    A picture is worth a thousand words, and a movie may express an entire tale in a single scene or even a single line of speech. There is so much to be learned from the media that we now have access to. Even issues like the economics, stock market, and trade have spawned a slew of critically acclaimed films over the last few decades.

    For those interested in learning how to make a living in the stock market, here is a list of some of the top stock market movies. Since it is a long weekend, the best time to binge them is now.

    1. Rogue Trader (1999)

    This film is based on a true story about a successful derivatives trader who took one too many risks, causing the bank where he worked to collapse. This film can help viewers comprehend how derivatives contracts work.

    2. Wall Street (1987)

    Wall Street is a film about a young stockbroker who uses insider knowledge to earn a promotion and becomes involved in stock price manipulation and insider trading, all while avoiding being caught by the authorities.

    3. Bazaar (2018)

    Bazaar is a thriller based on the life of a stock trader. Rizwan becomes caught in insider trading and shady networks after being hired for his trading expertise. It’s a good look into what it takes to work in the stock market as a movie about the subject.

    4. Inside Job (2010)

    It’s a five-part documentary that looks at the banking practices and policies that led up to the 2008 financial crisis. This critically praised documentary delves into the real-life causes and ramifications of such a tragic incident.

    5. The Big Short (2015)

    The Big Short is based on the real-life financial crisis of 2008, and it tells three stories: Michael Burry’s successful fund endeavour, Jared Venett’s entry into the CDS market, and how Geller and Shipley earn from shorting. It’s a fantastic stock market film, and while it concentrates mostly on debt securities, it covers a lot of fundamental trading principles and offers viewers an idea of how unanticipated occurrences can affect the market.

    6. Trading Places (1983)

    Trading Places is a lighter watch, a comedic stock market film about a con artist and commodity broker whose places are exchanged for the sake of a wager, and their revenge scheme on the two millionaires who placed the bet.

    7. Gafla (2006)

    The film portrays a middle-class man’s journey as he tries his luck in the stock market and becomes involved in a crime, which was inspired by a real-life swindle perpetrated by Harshad Mehta in 1992.

    8. The Wolf of Wall Street (2013)

    The life and career of Wall Street stockbroker Jordan Belfort were depicted in this Hollywood blockbuster, which received critical praise. The film traces Belfort’s journey from an entry-level position to massive losses due to Black Monday, to a pump-and-dump penny stock scheme, and finally to the launch of his new firm, which is probed by the US SEC and FBI. It is undoubtedly one of the best stock market movies, as it depicts the finance sector and its rotten underbelly.

    9. Too Big to Fail (2011)

    Another film about the 2008 financial crisis, Too Big To Fail, focuses on the necessity of financial institution stability and how hazardous their failure could be for the entire economy.

    10. Money Monster (2016)

    After Budwell loses all of his savings owing to the advice of a financial expert on a TV show, he pursues the expert and his team and holds them hostage in order to obtain information about the stock’s decline. The film is a fantastic stock market movie to see since it emphasises the importance of not blindly trusting so-called market experts.

    To sum it up

    Real-life and art continue to be influenced by one another. While many of these stock market films deal with subjects such as corruption and criminality, they nonetheless teach us a lot about the market. By watching these wonderful films that provide some insight into the workings of the global markets, you may combine education and fun. Prospective investors can register a brokerage account online right now to get started on their financial adventure.

  • An Overview of Volume vs. Open Interest

    Volume and open interest are two of the most important technical metrics for understanding options and the broader market. The amount of contracts exchanged in a given period is referred to as “volume,” whereas “open interest” refers to the number of contracts that are active, or not settled. We’ll look at these two variables and give you some pointers on how to utilise them to better understand trade activity in the derivatives markets. But before we get into that, there is one thing you will require: the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced.


    Volume

    In the stock market, volume refers to the number of times shares are traded between buyers and sellers. The volume metric for options markets gives the number of options contracts bought and sold in a given trading day, as well as the degree of activity for a specific contract.

    Every transaction counts against the daily volume, whether it’s an opening or closing transaction.

    The higher the volume, the more people are concerned about security. Volume is often used by investors to determine the strength of a price movement. More volume also suggests that the contract has more liquidity; this is advantageous in short-term trading because it means that there are more buyers and sellers in the market.

    Assume that the volume in call option ABC with a strike price of Rs 1000 and a three-week expiration date did not trade any contracts on a given day. As a result, the trade volume is zero. An investor buys 15 call option contracts the next session, and there are no other trades that day, thus the volume is now 15 contracts.

    The volume and open interest measurements reveal the amount of buying and selling that supports a prospective price change. In technical analysis, however, it is also necessary to determine whether the open interest is in calls or puts, as well as whether the contracts are being purchased or sold.

    Open Interest

    The quantity of options or futures contracts owned by active traders and investors is known as open interest. These positions have been created, but they haven’t been filled, expired, or exercised yet. When buyers and sellers (or writers) of contracts close off more positions than were opened that day, open interest declines.

    A trader must take an offsetting position or exercise their option to close out a position. When investors and traders open additional new long positions or sellers take on new short positions in an amount bigger than the number of contracts that were closed that day, open interest rises once more.


    Assume that the open interest in the ABC call option is 0 for example. The next day, an investor opens a new position by purchasing 10 option contracts. The number of people who have expressed interest in this particular call option has now reached ten. Five contracts were closed the next day, ten were opened, and open interest grew by five to 15.

    Open interest, along with other variables, is used by technical analysts to determine the strength of a market trend. Increased open interest signals the entry of new traders into the market and can be used to corroborate a current market trend. The current trend may be deteriorating as open interest declines, indicating that traders are closing their positions.

    Particular Points to Consider

    We’ve listed a few situations that include the volume and open interest indicators, as well as some possible interpretations.

    Rising prices during an uptrend, combined with rising open interest, can indicate that new money is entering the market (reflecting new positions). If long positions are fueling the growth in open interest, this might be an indication of a bullish mood.
    If, on the other hand, open interest falls while prices rise during an advance, this could imply that money is leaving the market, which is a bearish indicator.
    If, on the other hand, open interest falls while prices rise during an advance, this could imply that money is leaving the market, which is a bearish indicator.
    Prices falling in a downtrend while open interest rises could indicate that new money is entering the market on the short side. This scenario is negative since it is consistent with a continuous downtrend. However, falling prices in a downtrend with declining open interest may imply that holders are being compelled to liquidate their positions, which is a bearish indicator.

    If open interest is high as prices are falling sharply during a market peak, it could be a bearish indicator if those who bought near the top are suddenly losing money; this could also create a panic selling scenario.

    Option Chain And Its Working

    An option chain is a table that lists all of the available options for a certain security. An option chain displays all of the published calls and puts for a given expiry date, organised by characteristics such as strike price, expiration date, volume, and pricing.

    How much open interest and volume should an option have?
    In general, a high volume and open interest both indicate a liquid market with a large number of buyers and sellers for a specific option. Market mood can also be confirmed by changes in open interest and volume. A rising price with increasing volume and open interest, for example, indicates a robust market, whereas a rising price with declining volume and open interest indicates a weak market.

    When the Volume Exceeds the Open Interest, What Does It Mean?

    If an option has a high volume but a low open interest, it has a limited secondary market, which means it may have low liquidity. A trader trying to sell that option might have trouble finding a buyer, or they might face a wider bid-ask spread than usual.

    What Does a High Open Interest Indicator Indicate?

    A huge number of traders have taken active positions in an options or futures contract with a high open interest. If open interest rises over time, it indicates that new traders are taking positions in the market and that money is flowing in. When open interest decreases over time, it indicates that traders are beginning to close positions.

  • The Difference Between Large-Cap Stocks And Blue Chip Stocks

    The market capitalization of a company helps in determining its worth. It’s computed by multiplying the number of existing shares by each share unit.

    The market capitalization of large-cap firms exceeds Rs.20,000 crores. The NIFTY 50 index contains the top 50 large-cap firms in India. This index includes the most actively traded companies on the stock market.

    Large-cap firms’ stock prices cannot appreciate as much as mid-cap and small-cap companies’ stock prices. This is due to the fact that large-cap company valuations have attained financial maturity. Dividend payouts account for the majority of such equities’ returns. Because there is always someone willing to purchase such well-known and popular stocks, large-cap businesses provide significant liquidity to their investors.

    On the stock exchange, blue-chip stocks are highly valued. They have a strong market reputation and a solid financial track record. Blue-chip stocks are frequently referred to as the stocks of the largest corporations in the economy. However, before you start investing, it is important that you do so with one of the best share brokers in the country. At Zebu, we have the lowest brokerage for investments and also support you with a highly advanced online trading platform to help you analyse stocks and execute your trades.


    The primary distinction between large-cap and blue-chip firms is that the latter is the market leader. Blue-chip stocks are well-known in addition to having a significant market capitalization. Large-cap corporations can be well-known or not, whereas blue-chip companies must be well-known. Blue-chip enterprises are well-known in the marketplace and hence have a high brand value. A blue-chip company’s stock has reached its maximum growth potential. As a result, blue-chip investors see a slow but consistent increase in their invested capital over time.

    Because the firms that issue these stocks have many sources of income and have spread their operations to multiple industries, blue-chip stocks can help you diversify your portfolio rather well. As a result, they are less vulnerable to market volatility, making them a low-risk investment alternative. By diversifying your investments even more, you can further lower your risk exposure.

    During peak business cycles, large-cap corporations are often blue-chip companies because they generate consistent revenue. When compared to blue-chip corporations, large-cap companies are a riskier investment alternative. Despite having a huge market capitalization and good revenue, large-cap corporations have yet to stabilise on such business peaks and maintain them in the long run.
    Two of the most important checklists for first-time traders and investors are the right online trading platform and the lowest brokerage for investments. As one of the best share brokers in the country, we at Zebu will give you all of this and more. To know more about our services and products, please get in touch with us now.

  • A Quick Commentary On India’s Sovereign Green Bonds Worth $3.3 Billion

    There’s an interesting backstory behind India’s sovereign bond issuance. The idea was approved in the Union Budget around two years ago, with a goal of raising up to $10 billion through sovereign bonds. Internal opposition grew, and the proposal was eventually scrapped after the PMO interfered.

    In this context, the Indian government’s recent plan to issue $3.3 billion in sovereign green bonds is significant.

    Sovereign green bonds are similar to any other government-issued sovereign bond. The only difference is the use of the cash raised, which can only be used for activities and initiatives that reduce carbon emissions, such as renewable energy, green hydrogen, and rechargeable batteries.

    These green bonds have a reduced cost of capital because they provide carbon neutrality benefits to their buyers.

    The problem is likely to debut in the market in the first or second quarter of FY23, with the finer specifics to be revealed later. This will be the first tranche, and if there is sufficient demand for green bonds, the centre may consider selling more than $3.3 billion in green bonds.

    This problem represents a significant shift in the Indian economy’s commitment to a low-carbon future. Costs and other details are still being worked out.

    To some extent, India’s venture into green bonds mitigates the risk of sovereign bonds. Because sovereign bonds are usually denominated in hard currencies like the US Dollar or the Euro, they tend to increase the issuer’s liabilities if the native currency falls.

    This step will also help India achieve its objective of becoming carbon neutral and net-zero emissions by the year 2070.

    While the 10-year benchmark sovereign bond yield is currently about 6.85 percent, the government expects to be able to borrow at a lower rate through green bonds.

    That will be the key draw, because it may not make sense for India to take on the risk of national debt unless the difference is large enough. This is in line with the global surge in renewable energy, sustainable business models, and sustainable strategy.

    Indian conglomerates such as Reliance and Adani have committed billions of dollars to green projects such as renewable energy, green hydrogen, electric vehicle batteries, and electric vehicle ecosystems.

    India, the world’s third-largest emitter of greenhouse emissions, wants to double its renewable energy producing capacity by 2030. The timing is right for the launch, with global investor and lender enthusiasm for green firms at an all-time high.

  • The 200 Day Moving Average And Everything You Need To Know About It

    The 200-day moving average, a simple line that is displayed across a chart, is considered an important tool for traders and investors to determine the trend of the market. The indicator shows as a line on a chart that rises and falls in sync with the stock, commodity, or other instrument being charted as longer-term price movements.

    Before you start investing or trading, always consider going with one of the best brokerage firms in the country like Zebu. As a top broker in share market we have created one of the best stock trading platforms, for you to use and invest.

    When the price is above the moving average, the 200-day SMA appears to act as an incredible support level, and when the price is below it, it appears to serve as a resistance level.

    The 200-Day SMA

    The 200-day SMA is often used in stock trading to detect the broad market trend. It covers around 40 weeks of trade. A company is generally regarded to be in an overall uptrend if its price continues above the 200-day SMA on a daily time period. A 255-day moving average, which covers the preceding year’s trade, is a popular alternative to the 200-day SMA.

    The 200-day SMA is a very long-term moving average that is frequently used in conjunction with other, shorter-term moving averages to display not only the market trend but also the strength of the trend as measured by the distance between moving average lines. Comparing the 50-day and 200-day SMAs, for example, is rather frequent.

    When moving average lines converge, it can imply a lack of clear market momentum, but increasing the distance between shorter-term and longer-term moving averages usually implies increased trend strength and market momentum.

    Death Crosses and Golden Crosses

    The 200-day simple moving average is regarded as such an essential trend indicator that a “death cross” occurs when the 50-day SMA crosses below the 200-day SMA, indicating a downtrend for the stock.

    In a similar vein, the crossing of the 50-day SMA to the upside of the 200-day SMA is known as a “golden cross,” and the stock is regarded as “golden,” or almost certain to gain in price, once this occurs.

    SMAs vs. EMAs Simple Moving Averages vs. Exponential Moving Averages
    It’s likely that the 200-day SMA has a self-fulfilling prophecy quality to it; markets respond strongly in response to it partly because so many traders and analysts value it so highly.

    However, some traders prefer to use the exponential moving average (EMA). An EMA provides a higher weight to the most recent trading days than a simple moving average, which is calculated as the average price over the selected time range. For example, the exponential moving average provides current prices a higher weighting than the basic moving average, which gives all values equal weighting. Technical analysts use EMAs and SMAs in comparable ways to recognise trends and identify overbought or oversold markets, despite the differences in methodology.

    How is the SMA calculated?

    The average closing prices of a security over a period of time are used to calculate a simple moving average (SMA). It’s used to smooth out price swings and provide traders a better understanding of trends and reversals.

    How do I find a stock’s 200-day moving average?

    With Zebull Smart Trader from Zebu, you simply have to change the time frame to 1 day and add the moving average indicator. In the settings, you can change the period to 200. This will overlay the 200 day moving average over your chart.

    As one of the top brokers in share market, we have created the best stock trading platform for you to invest in wisely. Our tool is designed to help investors and traders alike to analyse a company with a wide range of indicators and screeners as per your strategy. As one of the best brokerage firms in the country, we invite you to open a trading and investment account with us.

  • Why You Should Trade In Commodities During A Global Crisis

    Commodity trading has a long history in India. The Bombay Cotton Trade was established in 1875, marking the first significant milestone. Then, in 1991, came the liberation policy, which boosted commodities trading. Futures were reintroduced in 1994 after being discontinued owing to war and food shortages. Agricultural goods were included as a result of the reintroduction.

    Before we get into the benefits of trading in commodities we would like you to know that at Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading.

    Commodities are traded on six markets in India.

    They are as follows:
    MCX stands for Multi Commodity Exchange.
    NCDEX stands for National Commodity and Derivatives Exchange.
    NMCE stands for National Multi Commodity Exchange.
    ICEX stands for Indian Commodity Exchange.
    ACE stands for Ace Derivatives Exchange.
    UCX stands for Universal Commodity Exchange.
    When it comes to market share, MCX has a 70 percent stake, NCDEX has a 25 percent share, and NMCE has a 5 percent share.

    Here are a few benefits of commodity trading in India:

    1. A Reliable Option in a Crisis
    There aren’t many people interested in trading commodities. A trader, on the other hand, may consider investing in metals such as gold, silver, platinum, and other precious metals. In times of inflation and economic uncertainty, these provide security.

    2. Diversification of your portfolio
    If you’re an investor who already invests in equities and bonds, you might want to examine commodities as well. You can diversify your portfolio and develop a risk-adjusted strategy this way.

    3. Transparent
    Commodity trade has become more transparent in India because to online commodity trading. Price discovery is fair, and it is regulated by large-scale involvement. When there is such a large degree of engagement, it also aids in gauging the perception and outlook of commodity traders.

    4. Possibility of High Returns
    When it comes to commodities trading, there’s always the possibility that a trader will strike it rich. However, this is only achievable if a sound trading plan is in place.

    5. Hedging
    Hedging is the practice of managing price risks in the futures market by taking an equal and opposite position. Certain factors in commodity trading, such as natural disasters, economic crises, or war, might cause commodity prices to rise. These commodities can be used as a risk hedge.

    6. Anti-inflationary protection
    Commodity prices typically rise during periods of inflation. Investing in the right commodities will not only help you beat inflation but also help you make excellent profits.

    7. Trading with a Smaller Margin
    Commodity trading allows you to trade with a reduced margin of 5% -10%. You can take bigger positions with less capital if you have a lower margin.

    8. There will be no cut-offs
    Time decay is a constraint while trading Options. As the expiration date approaches, there is less time to cash in on the option financially. Time decay is not an issue in commodities futures because there is no expectation of a strike price at expiration.

    As we mentioned before, trading strangles requires thebest Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes analysis easy for you. To know more about its features, please get in touch with us now.