All posts by Sriram

A Teacher trying to Learn new things and explore the world each day! Believe in Happiness by the virtue of sacrifice and forgiveness.

Bhagavadgita Chapter 17 Shraddha Traya Vibhaga Yoga Verse 14

Chapter 17 Shraddha Traya Vibhaga Yoga Verse 14

Devadwijagurupraajna poojanam shauchamaarjavam;
Brahmacharyamahimsaa cha shaareeram tapa uchyate.

Worship of the gods, the twice-born, the teachers and the wise, purity, straightforwardness, celibacy and non-injury—these are called the austerities of the body.

Interpretation

In this shloka, Lord Krishna is talking about the austerities that a person who is on the spiritual path should follow. These austerities are the guidelines for every individual who wants to lead a happy, spiritual and fulfilling life without any unnecessary desires and cravings. Belief in God and His worship is the primary thing prescribed here. Apart from that, one should worship people who are sages, teachers and other wise men who have a purity of thought and straightforwardness in their actions. Then Lord tells a person to be celibate and believes in Ahimsa or non-injury. These are the austerities that one needs to follow for one’s body. 

Extending Interpretation to Mankind’s Life!

We have already learnt from the previous chapters that there are 3 kinds of austerities, austerities of body, speech and mind. Lord in this shloka was talking about the austerities of the body. When we worship or admire or do service to good people, the goodness of them spreads to you. God created this universe and there is His element in every being. But some people are able to enhance it and bring it out and those people are called wise people and teachers. The second word in the shloka is “Jaguru” who is a teacher. According to Krishna, teaching is one activity that a person undertakes only when he has the supreme sense of sacrifice in him.

Why is a teacher so important in life?

Imparting knowledge selflessly is the purest thing that anyone can do. When you acquire a skill you would want to use that for your benefit with an intention to earn wealth or name and fame. But would you prefer imparting that knowledge selflessly for others and don’t use that knowledge for your own benefits?

Here I would like to give an example of a person who learnt stock markets and had the intention of earning some money from it, but at the same time, he also became a teacher. When he was selflessly teaching he was not able to trade or the trades that he took were not giving him any satisfaction. That is when he decided to stay away from trading and concentrate only on teaching. It happens to many teachers who selflessly undertake the activity of spreading knowledge.

When you set out on this path your thoughts become pure and your actions become selfless. Purity according to the Lord comes only when one is celibate and follows the tradition of non-injury. Celibate here means staying away from desires of lust. Non-injury is when you do not cause any kind of physical and mental harm to anyone, which includes staying away from physically abusing and hitting anyone. It also includes non-usage of derogatory and abusive language against people as well as staying strictly vegetarian. This, if practised by an individual then he would have achieved austerities of the body.

Weekly Expiry for Nifty – A New Chapter in Equity Derivatives for India

Weekly Expiry for Nifty – A New Chapter in Equity Derivatives for India

Today’s post I will take you back to the controversial aspect in the Stock Market for the majority of Indians. We have already seen in the previous posts of mine on what are derivatives and how they are traded and also how they help the investors to cut down the losses.

Though that’s the main reason for derivatives being introduced, the agenda has completely changed and we see more traders than investors in today’s market. But let me tell you that the number of traders that we see in our Indian Stock Market is much less when compared to Stock markets like America, Europe, China and Japan. For your easy understanding, India’s population contributes to almost 20% of world’s population whereas the Indian Stock Market derivatives trading contribution is at laughable 0.5% of 100%. That’s the fact which would hit us badly but that’s the reality.

Reasons for not trading are many, some are technical while some are due to fear. There is no need to fear or worry, derivatives if learnt properly is very easy and very profitable indeed. Let me tell you the story of derivatives in just 3 simple points:

1. Unlike stocks, where one person’s loss is another person’s gain, derivatives trading is something where everyone can gain or everyone can lose. In simple terms, if you want to buy something you need not have a seller and vice versa. So, in derivatives, if you feel that you can make profits, everyone can buy and everyone will gain money. Thus wealth is created in Options contracts of derivatives. Otherwise also in equities, if we see the loss made by one person is the gain for another person. But the derivates markets are different, here both the traders can make profits at the same time. It’s because of this derivatives market that the world was able to fund the internet and technological revolutions.

2. In Indian till last month, there were monthly expiry Futures and Options contracts. And as we are in the European options methodology, a trader has to wait for the end of the month to close transactions and get the money into the bank account. This limits him from trading very frequently and you would also have to wait till the last day to get your money. But now from this week, Nifty weekly contracts were introduced and the first expiry will happen on 14th Feb. Now the trader can get the profit he made in his account every week and that is a major advantage of weekly expiry. This will surely increase the volume of the contracts traded.

3. The Last point we need to look at is why the derivatives are so low in India? It’s just 0.5% of the total volume of derivatives across the World. Even in that, 90% of derivatives volumes come from equities that mean other derivatives take just 10%. Whereas if we look at the USA derivatives markets, in the OTC category 77% of the derivatives volumes come from Fixed Income derivatives, 9.3% comes from Currency and 8.3% from Credit, 3.5% from equities and only 1.3% come from Commodity derivatives. So if we look at our derivatives it’s a complete monopoly, with no other instruments able to pitch in and increase the derivatives contribution.

India has a long way to go. First, the volumes in equity derivatives have to increase, then other instruments like debt, currencies should be tried. Derivatives are simple and easy if you really want to learn to multiply your money, make a small effort of learning it because the future for Indian Stock Markets is Derivatives Market!

Bhagavadgita Chapter 17 Shraddha Traya Vibhaga Yoga Verse 13

Chapter 17 Shraddha Traya Vibhaga Yoga Verse 13

Vidhiheenam asrishtaannam mantraheenam adakshinam;Shraddhaavirahitam yajnam taamasam parichakshate.

They declare that sacrifice to be Tamasic which is contrary to the ordinances of the scriptures, in which no food is distributed, which is devoid of Mantras and gifts, and which is devoid of faith.

Interpretation

This shloka is concentrating on the Tamasic sacrifices that a person commits. We have already seen the Sattwik and the Rajasic sacrifices in the previous two shlokas. Lord in this shloka says that Tamasic people usually undertake sacrifices which are exactly opposite to the rules and regulations specified in the Vedic scriptures. They misinterpret what is said in the scriptures and that is the reason why they do the opposite of what is mentioned. There are three points that Lord talks here. One is the absence of any kind of alms, second is the absence of any kind of offering and Vedic chants and third is the absence of any kind of faith or belief in the sacrifices being performed by Tamasic people. 

Extending Interpretation to Mankind’s Life!

The major difference between Rajasic and Tamasic people is, Rajasic people depend on their own worth and doesn’t get into any rituals for accomplishing anything, but Tamasic people resort of all sorts of rituals that are either twisted or taken out of context and perform them to get the results. Anything that gives an instant result or benefit, a tamasic person doesn’t hesitate to do. Many categories of pujas and rituals which are linked to tantra, Vashikaran and Shanti pooja that is done for the benefit of the person comes under this tamasic category. Another type of ritual that is observed in many of the households which are tamasic in nature is “drishti” or “nazar utaarna” or remedy for an “evil eye cast”.

Many people believe that we fall ill or a work that is supposed to happen does not happen or you develop a dislike or hate for a particular food or set of activities because of this “drishti” or “evil eye”. In reality, there is no such thing called an evil eye. Karma theory propounds that we reap what we sow and many of the results that come are due to the result of acts that we committed in the past. Forgetting that we blame it on evil eye cast and we do remedies for that and transfer it out so that it goes to someone else! Am sure you would have seen lemons and vermilion thrown on the roads and you get scared to cross them. How can you even think that there will be rituals for transferring your bad luck to some other person? All these are the ills that a Tamasic person follows and unless he gets out of all this, he can never understand the plan of God and the law of Karma and its effects in one’s life. 

Market Trade Setup 15th February 2019 #Nifty

A tough week is coming to an end with a very sad news coming from pulwama where 44 of our brave soldiers were martyred in a suicide attack of terrorists from across the border. India has promised a befitting reply at a place and time of its choosing. This brings a lot of uncertainty into the market which will be worried about the kind of reaction and its consequences. Globally also things are not looking good where growth fears are back again and Dow Jones lost 100 plus points last night. Asian markets are in red with Hong Kong down 400 points, Japan down 250 points, Shanghai and Korea in mild red and only Taiwan in flat to green. Brent crude is also a cause of worry which is now at 65 dollars which in a week gained 4 dollars. 

Domestically, Yes bank was a star performer yesterday with a largest ever intraday gain for itself of 31%. Imagine a stock going up 31% on a single day, that’s what one clean chit from RBI can do. Another positive we can look forward to is the Jet Airways restructuring plan. Finally a restructuring plan seems to have worked out where the majority of 51% of stake in Jet will be held by the promotors and Naresh Goyal whose stake is 51.5% now is like to come down to 25% and Etihad which has 24% stake is likely to come down to 12%. Q3 results seem to be mixed with Nestle disappointing again, for Nestle which follows calendar year its Q4 results. Pharma company Glenmark was a relief which reported 11% rise in sales while MTNL, Jet Airways, Voltas were a disappointment. 

On the derivatives front, yesterday was Nifty weekly expiry and there was so much selling yesterday even in the monthly series that the long positions which were at 55% came down to 49% by evening. This is something which is very rare. Contrary the Put call ratio went up to 1.35 from 1.29 on the back of short put positions that got created. The first weekly expiry on Nifty and Bank Nifty clocked 15.89 lakh Crore turnover which is almost equal to the monthly expiries. So, the expectations that volumes will go up has actually come true. 10600 put added 3.8 lakh contracts and 10700 put added 3.5 lakh positions and 10700 put now has the highest open interest which means 10630-10650 is the support for this month. On the call side 10800 call added 8.2 lakh positions and 11000 call has the maximum open interest. 

What is the Nifty call for the day?

Today is Friday and the cues across the globe are not that good. Even the domestic situation is challenging with market worrying what kind of retaliatory action India will come up with in pulwama. Brent crude also is at 65 dollars and all that means we will open in 10740-10760 range and we need to see if 10750 holds or not. If 10720-10750 doesnt hold and Nifty slips below that before 12 then its a warning sign to stay off. I know that you have not traded for almost a week but these are testing times and we need to hold on and wait for the right opportunity. If by 3PM also Nifty manages to hold 10720-10750 then you can venture into taking a long position, but remember that a lot can happen over the weekend in Kashmir which will have an impact when we open again on Monday. So, its all looking very risky indeed.

Bhagavadgita Chapter 17 Shraddha Traya Vibhaga Yoga Verse 12

Chapter 17 Shraddha Traya Vibhaga Yoga Verse 12

Abhisandhaaya tu phalam dambhaarthamapi chaiva yat; Ijyate bharatashreshtha tam yajnam viddhi raajasam.

The sacrifice which is offered, O Arjuna, seeking a reward and for ostentation, know thou that to be a Rajasic Yajna!

Interpretation

The previous shloka talked about the desire-less work that people with a Sattvik mind would do. This shloka is talking about the offering that a person with a Rajasic mindset would undertake. We already know that Rajasic people are usually goal driven and are extremely ambitious. Lord Krishna says that if a Rajasic person performs any sacrifice with an intention of getting any reward or benefit out of it, it is considered to be a Rajasic Yajna. Here Lord also uses the word Ostentation, which means a blatant display of one’s wealth. Even the sacrifice that’s done displays one’s wealth is also considered to be a Rajasic act. 

Extending Interpretation to Mankind’s Life!

If you do a survey on what people want from their jobs, the answer which 99% of the time you get is career growth and better salary package. We all work for growth and all our efforts are in that direction. But there will be a very small section of people, less than 1% who say that they work for the company’s growth which is more important for them than their growth. They won’t come under the Rajasic category. Rajasic people seek reward for everything that they do and the reward sought here is career promotion and growth. The work that you do is like your yajna and it is completely reward oriented and directed at your own benefits. But is it wrong?

When you are looking at growth of your senses and not your soul, then it is not wrong. People want to earn because they want to show off. They want to wear branded products and display their wealth in public. Another point one needs to understand here is there is nothing called pure Sattvik or pure Rajasic person existing. A sattvik person also might have some desires towards wealth and enjoyment. That is what is described in this journey towards moksha. Slowly he needs to get over them and start working towards desire-less tasks and goals. This is a very difficult process and Lord Krishna is telling Rajasic way of life so that the person can understand it and live it and slowly come out of it because the only sattvik way of life can give the salvation that he is looking for.

Market Trade Setup 14th February #Nifty

Market Trade Setup 14th February

Today is the expiry day for the first weekly series of Nifty. That apart there is nothing positive to talk about this market. The market fell for the 4th consecutive day yesterday and now we are below 10800 mark on Nifty. Last Thursday when monetary policy was announced we touched 11100 on Nifty. From there we lost more than 300 points in just 4 trading sessions. The global markets are positive with Dow Jones closing again in positive last night gaining almost 120 points but that has not rubbed off on Asian markets. Most of the Asia is down except Japan which is flat. Hong Kong is down more than 120 points. The big worry for us however is the Brent crude which is almost touching 64 dollars now.

On the domestic front, yesterday was the last day of the Parliament for the 16th Lok Sabha and now the election season has started and we all await the Election Commission to announce the dates, which can happen in next 2-3 weeks officially kicking in the elections. In stock specific news RBI has said that Yes bank has zero divergence from FY 18 year book and that will come as a huge relief and today Yes bank will lead bank Nifty weekly expiry. The rating agencies also might go for a re-rating of Yes bank.  Q3 results are still pouring in and today we will have Ashok Leyland, GSK Pharma, Glenmark Pharma, Jet Airways, JK tyres, Kaveri seeds, Nestle India, ONGC, Page Industries, United Breweries and Voltas are going to come up with their results. 

On the derivatives front, today is the weekly expiry for Nifty and yesterday we have again seen long positions build on Nifty futures. The long positions in Nifty now stands at an all time high of 55%. On the options front, Nifty monthly series has a put call ratio of 1.29 down from 1.35 seen at the beginning of the day. 10600 put added 2 lakh positions while all other strikes saw unwinding of positions. 10400 put still has maximum open interest followed by 10700 put but the gap is widening. On the call side 10900 call added 4.4 lakh positions and 11000 call has highest open interest. For today’s expiry, 10800 put has the highest open interest of 7.2 lakh contracts and on call side 10900 call has the highest open interest at 21.6 lakh contracts So, 10785 to 10900 might be the contours for the expiry today. 

What is the Nifty call for the day?

Yesterday opening took Nifty past 10890 and if you have exited positions, you would have made a decent profit. After that it was a downhill and Nifty is below 10800 now. Today Nifty will open in the range of 10760-10790 and 10735-10750 is a strong support that might hold today, as it is a expiry day. We need to see what kind of 3PM move will happen on Nifty today. Just for the expiry reasons and understanding the weekly expiry patterns, I advice you to observe today and not to engage in any trade. We also need to see if Nifty holds 10750 or goes below that towards 10600 mark.

Bhagavadgita Chapter 17 Shraddha Traya Vibhaga Yoga Verse 11

Chapter 17 Shraddha Traya Vibhaga Yoga Verse 11

Aphalaakaangkshibhiryajno vidhidrishto ya ijyate;Yashtavyameveti manah samaadhaaya sa saattwikah.

That sacrifice which is offered by men without desire for reward as enjoined by the ordinance, with a firm faith that to do so is a duty, is Sattwik.

Interpretation

After talking about the food that a person in Sattvik, Rajasic and Tamasic state of mind eat, Lord Krishna in this shloka is talking about the sacrifices that a person who has the sattvik characteristics offers or performs. He says that a person when he is offering sacrifices should do it without any kind of a desire for any reward. He also has to do things that are prescribed in the scriptures with total and complete faith in God. The most important thing here is, he should believe that performing a particular sacrifice is his duty and that has been mandated by God, hence he has to perform it without a reward attached to it. Such kind of people are said to be of sattwik nature, tells Lord Krishna. 

Extending Interpretation to Mankind’s Life!

We usually hear these phrases like “I have sacrificed my whole life for the sake of family”, “I have done so many sacrifices for you, is this what you give me in return”, “Life is full of sacrifices” etc etc. What is the meaning of sacrifice? English dictionary gives two meanings. In the noun form, it is “An act of surrendering a possession as an offering to a deity”, in verb form it is “giving up something valued for the sake of other considerations”. What Lord Krishna said in this shloka is the combination of both. Thus the meaning of sacrifice is “Any work/activity done for the sake of only God and giving up things that come in the way of performing such activities is considered to be sacrificed”.

Sacrifice is not a religious ritual alone. It is done for the sake of God by which the entire humanity gets benefited. Anybody who sacrifices his wealth for the sake of the poor is actually serving God. Anybody who sacrifices his own urges and wishes to work for the larger benefit of the people around him sacrifices in the name of God. Order of importance of looking at things plays a very important role in deciding for whom we are sacrificing what.  For a Tamasic and Rajasic person, the order of importance is I, we, my family, my relatives, my community, my religion, my motherland and last comes the entire humanity. 

But for a sattwik person it’s exactly the opposite. For him the entire humanity comes first, country comes next, followed by that religion, community, relatives, family, we and last comes “I”. A sattwik person gives more importance to humanity than to himself or his family. All his activities and rituals are centered around this concept only. Thus when a person works for the humanity, he never expects any reward for himself, but if he works for himself or his family, he always expects rewards and when those rewards don’t come he gets disheartened and abandons the sattwik path. But the person who is sattwik rewards for his work is never a criterion. 

Market Trade Setup 13th February #Nifty

Market Setup 13th February

As we approach the middle of the week we are looking at a 125, 56 and 57 point cut in the last three trading sessions and that is a total 238 point cut. If we look at the Nifty on 1st Feb, which was also a Friday, we started from exactly the same level of 10831 and went up 238 points before correcting. So, from 1st Feb to 7th Feb we went up 238 points and from 8th to 12th Feb we fell 238 points. That puts us at a very interesting position of what is going to happen today. Global markets are positive with the US gaining nearly 400 points yesterday on the news that US Govt shut down is finally coming to an end. The feeling has rubbed off to Asian markets also today as they all are in a positive zone with Japan up 350 points and Hong Kong up 150 points. Brent crude is a worry as it’s at 62.8 dollars almost touching 63 dollars. 

On the domestic front, we had the IIP and CPI data that has come yesterday evening and everything came in the range I gave. I said IIP will be between 2.2 to 2.7% and we got a 2.4% IIP for December. On the Inflation front, I gave a 2.0 to 2.4% range and we got 2.05% inflation for January. In that also I gave 5.4 to 5.7% on services inflation and we got 5.4% for the services sector. This is 19-month low inflation and food inflation is still worse at -2.17% and that is something we need to look at. On the Q3 front, finally, some good has come from Bata which declared a fantastic set of numbers. For the last 2 years, I was bullish on Bata and it continues to deliver. Coal India also surprised with good numbers and looks like some good news coming on Q3 front. 

On the derivatives front, there was a lot of positive action on the Nifty futures front, where there was a lot of buying as the markets were correcting in the last hour of trade. The overall long positions now stand at 54% vs 41% at the beginning of the series. On the options front, however, there is a lot of demand for calls than puts. 9 calls were sold yesterday for every put sold and that took the Nifty put-call ratio to 1.35 from 1.47. For tomorrow’s Nifty expiry 10850 put added 1.1 lakh positions and 10800 put added 1 lakh positions. 10800 put now has the highest open interest now. On the call side, 10900 call added 8.2 lakh positions while 11000 call added 4.6 lakh positions and 10950 call added 4.1 lakh positions. 10900 call has the highest open interest. 

What is the Nifty call for the day?

Yesterday, I advised you to take a long position only if Nifty goes below 10850 and holds 10820. This has happened only in the last hour of the trade so very few people would have taken positions. Nifty will open around 10840-10870 zone and the positivity might take Nifty to 10900-10920 zone. If it goes there, exit your long positions. You will still get a 60-80 point profit. If you have not taken any positions yesterday, today you might not get enough room to take long positions and make profits. So, I advise you to wait and watch if Nifty breaks the 10920 resistance or not and where the close happens. For today there is no trade in Futures.

Bhagavadgita Chapter 17 Shraddha Traya Vibhaga Yoga Verse 10

Chapter 17 Shraddha Traya Vibhaga Yoga Verse 10

Yaatayaamam gatarasam pooti paryushitam cha yat; Ucchishtamapi chaamedhyam bhojanam taamasapriyam.

That which is stale, tasteless, putrid, rotten and impure refuse, is the food liked by the Tamasic.

Interpretation

After talking about the Sattvik and Rajasic foods, Lord Krishna in this shloka is narrating the characteristic of the Tamasic foods. He starts by saying that all the stale foods which we keep in deep freezers and frozen foods that stay for a longer time are the Tamasic foods. Apart from that He also says that the foods which are tasteless, which decompose and decay over the period of time and become rotten are also classified as Tamasic foods. Also, the impure refuse of any fruit or an animal is classified as the tamasic food. 

Extending Interpretation to Mankind’s Life!

By the time you finish reading the interpretation, you would have already concluded that most of the foods that were mentioned here are so disgusting that you would never ever eat them. But to your surprise more than 50% of the food that many people living in cities and urban areas in the country actually consume this food. Let’s take, for example, cow’s milk which is stored in the tetra pack and which is 2-3 months old, is it a sattvik food? Definitely not. Tetra pack prevents it from decaying but the positive and vibrant energy that fresh milk used within one day can never be obtained from the milk consumed from tetra packs.

Let’s take the fruit juices that you drink from Tropicana or Real or any other brand, they are all 3-6 months old and are considered to be Tamasic as they can never substitute a fresh fruit juice extracted and consumed within 24 hours. The preservatives used in those juices prevent it from decaying but the benefits you get from them, are totally absent. Wine and Alcohol are the natural examples of Tamasic food as the wine gets tastier as it gets older. Apart from that we also have the examples of frozen foods that are stored for days together under sub-zero temperature conditions also come under Tamasic foods, just look at them when you visit a supermarket next.

These Tamasic foods by nature lose all their taste and become tasteless. We add artificial tasters to it to make it tasty. Such kind of foods will only serve your taste buds but it never does any good to the kind of energy you get. We should here recollect what Lord Krishna said at that the beginning of this yoga, that eats food to live but not lives to eat. Foods give us energy and eating Sattvik food gives sattvik energy, Rajasic food gives you Rajasic energy and consuming Tamasic food gives you Tamasic energy. All our actions are dependent on these energies.