Global Weekly Equity News Update by Eqpulse 30th Jul – 5th Aug

Global Weekly Equity News Update

by Eqpulse

  1. International

  2. eqpulse
    LinkedIn shares set to gain on revenue beat, outlook raise: LinkedIn Corp shares were set to open around 9% high… http://bit.ly/RhfHAb


    Fri, Aug 03 2012 06:04:21
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  3. AEXjournaal
    #stock today Stocks surge on jobs data, Europe news to extend weekly winning streak: U.S. stocks surged Friday, … http://bit.ly/OTrQuc


    Sun, Aug 05 2012 00:17:42
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  4. eqpulse
    FIIs raise exposure to Indian aviation stocks like Jet Airways, Kingfisher Airlines and SpiceJet: Overseas inves… http://bit.ly/RCH5Er


    Sun, Aug 05 2012 00:12:11
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  5. How To Invest Like Warren Buffett


    Fri, Apr 27 2012 10:53:00
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  6. Sensex, Nifty, Movers & Shakers

  7. eqpulse
    Markets Live: Sensex dented by ECB’s Draghi, drought: The Sensex was dented in Friday’s trade by ECB’s Draghi a… http://bit.ly/QGWO7P


    Fri, Aug 03 2012 00:02:32
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  8. eqpulse
    Surprise package: Cummins India: Cummins India, which has underperformed other capital goods stocks since April … http://bit.ly/QGLwAm


    Thu, Aug 02 2012 22:49:10
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  9. eqpulse
    Symphony gains 20% after strong results in Q4: Shares of Symphony, evaporative air cooling solutions provider, … http://bit.ly/QdBGXd


    Wed, Aug 01 2012 03:44:22
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  10. eqpulse
    Small investors find merit in beaten-down mid-caps like KFA, Suzlon Energy, Lanco Infra and others: Beaten-down … http://bit.ly/Puviq7


    Wed, Aug 01 2012 13:27:11
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  11. abpnewstv
    Mumbai: Body of Raj Travels owner Lalit Sheth found at Dadar beach. He jumped from Bandra-Worli sea link. Police suspect a case of suicide.


    Wed, Aug 01 2012 05:37:48
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  12. eqpulse
    Buy selectively in the capital goods segment, stocks like BHEL, L&T down due to economic slowdown: Many stocks i… http://bit.ly/R7ZU6x


    Wed, Aug 01 2012 06:08:37
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  13. ReutersIndia
    Best pictures from the week http://reut.rs/NZsd3K


    Sat, Aug 04 2012 22:30:12
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  14. Nasdaq


    Sat, Jul 28 2012 17:00:00
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  15. WSJ
    New York has almost 50,000 theater and dance performances a year. How it compares to Paris, London, Tokyo: http://on.wsj.com/N8LMG3


    Sat, Aug 04 2012 20:10:43
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  16. eqpulse
    Sebi imposes Rs 4 lakh fine on two brokerage firms: Market watchdog Sebi has imposed penalties of Rs 2 lakh eac… http://bit.ly/QxNt29


    Thu, Aug 02 2012 02:22:51
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  17. Commodities

  18. GoldMarket
    Latest Commentary: In The News Today: Gold to Rally Above $1,900 by End 2012: HSBC Published: Friday, 3 Aug 20… http://bit.ly/OS98mG


    Sat, Aug 04 2012 15:08:20
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  19. ETCommodities
    Gold falls for third day, sheds Rs 100; silver recovers http://ecoti.ms/SZ4iOZ


    Sat, Aug 04 2012 02:55:25
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  20. ETCommodities
    Oil jumps on US jobs rise, Brent hits 10-week high http://ecoti.ms/x3b9nY

    Fri, Aug 03 2012 14:25:19
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  21. Forex News

  22. fxtradingnews
    Analyse de la paire GBP/USD suite à la sortie de la news GBP- Official Bank Rate du 02/08/12
    http://tinyurl.com/9uk4yyg http://pic.twitter.com/zPf51gqd


    Sun, Aug 05 2012 01:10:33
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  23. NASDAQUpdate
    Forex: USD/JPY trades at 78.57 after US data release http://sns.mx/CgjMy1


    Fri, Aug 03 2012 07:31:48
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    1. Tips

    2. Equity Research

      There is a lot of misunderstanding out there regarding the equity research experience at the bulge bracket investment banks in comparis…
    3. eqpulse
      Top 20 trading ideas from ET Now experts for Wednesday, August 1: According to dealers, the market seems to have… bit.ly/PpMQU6
    4. FINANCIALPORTAL
      Market Outlook Invest now to make best of next bull market: Experts dlvr.it/1y5Vwc
      18 hours ago
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Equity News Update from Eqpulse


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@eqpulse Volatile Nifty extends gain; banks, oil gas, FMCG gain: The BSE Sensex and NSE Nifty continued to trade higher… http://t.co/es6SGWaJ
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CNBC DuPont Beats EPS Estimates, Revs. Light $DD QUOTE: http://t.co/4lRtkNI4 #earningscentral Tue 07/24 11:26 AM
moneycontrolcom #Latest: Injured Messi out of Barcelona’s friendly against Hamburg http://t.co/GUc3j2pP Tue 07/24 11:24 AM
moneycontrolcom #Markets: Volatile Nifty extends gain; banks, oil gas, FMCG gain http://t.co/kK2UQkue Tue 07/24 11:24 AM
moneycontrolcom #BusinessNews: Diesel price hike? Not before vice-prez polls, say sources http://t.co/Bk4XhSZC Tue 07/24 11:24 AM
eFinancialNews In Pictures: Rothschild’s New Court headquarters, shortlisted for the prestigious 2012 Stirling Prize http://t.co/TcABnxNl Tue 07/24 11:23 AM
FinancialTimes Madrid in duel with regions for aid http://t.co/NHzejaw3 Tue 07/24 11:23 AM
FT Madrid in duel with regions for aid http://t.co/19ls58Gb Tue 07/24 11:23 AM
ReutersIndia #UK to charge Coulson, #Brooks over phone hacking http://t.co/3a9z1Lbs Tue 07/24 11:19 AM
USATODAYmoney Goodyear soybean tires cut oil use http://t.co/XRwaNbSI Tue 07/24 11:14 AM
FinancialTimes German private sector woes mount http://t.co/sg94XcJr Tue 07/24 11:12 AM
WSJ Libor probe expands to bank traders – groups from at least nine institutions allegedly banded together to rig rates. http://t.co/Wqd1bQqm Tue 07/24 11:12 AM
FT German private sector woes mount http://t.co/avbXQPyI Tue 07/24 11:12 AM
MarketWatch DuPont beats quarterly profit estimates, sees full-year profit toward lower end of outlook http://t.co/44ACVwGS Tue 07/24 11:12 AM
Reuters_Biz New Bank of Japan board members doubt CPI to rise quickly http://t.co/q2COe2p7 Tue 07/24 11:10 AM
USEquityMarkets JC Penney Is Not a Good Deal http://t.co/yGr4oei6 Tue 07/24 11:10 AM
IIFLCommodities Walk confidently in the direction of your dreams. Share it with us and we could help you jumpstart it for you. http://t.co/DDxe5Wr6 #Contest Tue 07/24 11:07 AM
IndiaStock eClerx Q1 net profit up 62% at Rs 49.3 cr, stock up 12%… http://t.co/hSRXCj6L Tue 07/24 11:07 AM
ETIndustryNews Wipro gives 8% salary increase to offshore employees and 3% to onsite employees http://t.co/5wuK4vFJ Tue 07/24 11:06 AM
EconomicTimes Wipro gives 8% salary increase to offshore employees and 3% to onsite employees http://t.co/dxGk9eXh Tue 07/24 11:06 AM
WSJ Breaking: Rebekah Brooks and Andy Coulson among eight people to be charged in U.K. phone hacking probe. http://t.co/CJYb4XHu Tue 07/24 11:06 AM

Open Interest Explained.

WHAT IS OPEN INTEREST?

In derivatives trading, open interest, or OI, is the total number of outstanding futures or options contracts in a market at a given point of time. It is measured throughout trading hours and displayed real time on exchange websites and trading terminals. For example, at the end of market hours on Thursday, Nifty May futures on NSE had an open interest of 2.08 crore, up 3.87 lakh from the previous session. As opposed to trading volumes, which capture total buying and selling activity, open interest counts how many positions were created; that is, how many are still ‘open’.
HOW DOES OPEN INTEREST CHANGE?

Every futures or option trade has a buyer and a seller. The buyer can hold the contract till expiry or sell it to another buyer or liquidate it before expiry. Each action changes open interest differently. For example, if trader A buys 10 futures contracts from trader B, then open interest is 10. If another trader X buys 20 futures from trader Y, then the open interest accordingly adds to 30. But, if A unwinds his position of 10 futures, then open interest will decrease by 10, because these contracts cease to exist. Instead, if A sells these to another trader C, then the open interest remains unchanged since it is C who holds the contracts now.
HOW IS THIS DIFFERENT FROM TRADING VOLUMES?

In the above example, while open interest increased or decreased depending on the type of trade, trading volume only increased. When A bought 10 futures, trading volume was 10 and when X bought 20 contracts, volume rose to 30. But, when A unwound his position, open interest declined by 10, but trading volume increased to 40.
HOW TO INTERPRET OPEN INTEREST?

Analysts and traders commonly track open interest to observe unusual buildup of positions in a contract.However, open interest positions should be cross-checked with other parameters such as price.For instance, a rise in contract price along with increase in OI means long positions are being created, which are inflating the contract’s price. But if OI has reduced, then it means the inflation is caused by traders covering their short positions. Conversely, if price falls along with a rise in OI, then it means more traders are building short positions and pushing the price down. If OI falls along with the price, then it means long positions are being unwound. For futures contracts, savvy traders further look at changes in the discount or premium to the spot price to get a clearer picture of the market. So, if premiums contract, or discounts widen, along with an increase in OI, it means short positions are being added, and if OI is reducing, then it means long positions are being closed. Conversely, an expansion in premium or contraction in discount along with rise in OI means long positions are being added. In the options segment, such a direct relationship between option prices and open interest doesn’t exist. However, open interest is used to calculate an indicator called putcall ratio or PCR-OI. It is the ratio of total open interest in put options to that of call options. Traders use this to determine if a market is oversold, or overbought, thus predicting medium-term trends in the market.