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P/E Ratio analysis

  Here lets talk about some myths, some facts about P/E ratio (Price-to-Earnings ratio) which is one of the most important fundamental tool to invest in stocks. Investors track this to look out for which stock is overvalued or undervalued compared to its earnings. Formula of P/E ratio = Share Price ÷ Earnings Per Share (EPS). A higher P/E usually means the stock is expensive relative to its earnings. But this is something taught theoretically, when used in practical markets it can be different. 🚨 So what should an investor do when a Stock's P/E is Too High? Taking an eg, if a stock in a sector has a very high P/E (say above 100) like infrastructure or energy.This is a very overvalued stock for investors, but the same time smart investors start looking for other valuable stocks in the same sector. If any other company in the same sector has a strong fundamental values but lower P/E Ratio they might be better for investments at that time. If other companies in that industry have str...
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Beta Analysis In stocks

In Stock Market Beginners must understand financial metrics that move the market prices. One such metric that often gets overlooked by new traders is Beta. If you're enrolled in a good Stock Market Course in Dehradun or are planning to join a Stock Market Training Institute in Dehradun , understanding Beta will give you a solid analytical edge. Lets discuss what is beta ? In very simple terms Beta measures a stock's volatility in relation to the broader market. For Indian investors, this broader market is often represented by the Nifty 50 index. Here's what different Beta values generally mean: Beta = 1: The stock moves in line with the Nifty 50. If Beta > 1, Stock reacts more strongly to Nifty 50 movement, Eg: if stocks beta is 1.5% and Nifty moves up 1% then the stock rises up by 1.5% If Beta < 1: The stock reacts less to market movements. Why is Beta compared with the Nifty 50? The Nifty 50 is a benchmark index comprising 50 of the largest, most actively traded I...
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Elliott wave

  In charting techniques, a widely famous technique The Elliott Wave Theory helps you predict market both short term and long term in form of wave analysis. At MHV Education, Stock Market Classes includes this strategy in detail. If you're looking to dive deep into this powerful concept, it’s crucial to first understand what Elliott Wave Theory is, why it matters, and where you can learn it the right way. Elliott wave theory: Ralph Nelson Elliott developed this in the 1930s, which helps predict market waves which are driven by investor psychology. According to Elliott, market prices move in repetitive cycles—five waves in the direction of the trend (impulse waves), followed by three corrective waves in the opposite direction. Formed in every trend these waves can be observed in intraday charts as well as long-term cycles in stock market. Why Elliott Wave Theory Matters for Traders Many traders rely solely on price action or indicators, but Elliott Wave Theory adds a psychological...
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How the Global Markets Impact the Indian Stock Market

The Indian stock market is highly influenced by the global market news, particularly from the United States . Investment market is interconnected, where every countries policy impacts the global markets in some or the other way. That is the reason why a trader or an investor should always stay updated with international news. Looking for the   Best Share Market Institute in Dehradun  here at  MHV EDUCATIONS  you will find all the answers you need. 1. How US Stock Market impacts India The US stock market, which is led by indices like the Dow Jones, NASDAQ, and S&P 500, reflects the overall economic conditions of the USA market, which is closely tracked by investors worldwide. Sharp movements in the these indices mostly leads to sharp moves in Indian indices like NIFTY and Sensex due to the increased demand created by buyers globally. 2. Dollar-Rupee Dynamics Global market movements often lead to fluctuations in the USD-INR exchange rate. A strong dollar generally...
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Currency rates and its impact on Stock Market

  Lets discuss here how can Indian Rupee can change the price valuations of different stocks in different sectors. A weakening rupee against dollar has its own pros and cons for different businesses in india especially those tied to imports and exports. Export Sectors : Sectors like IT and Pharma, which earn highly through exports mostly USD often benefit when the rupee falls. Why? Because they get more rupees per dollar earned, increasing their revenue and profit margins. At MHV Education, the Stock Market Trading Course for Beginners covers all these topics in detail both theoretically and practically. Investors look for these sectors as IT giants and pharmaceutical exporters experience higher earnings without increasing output due to these currency movements. Import Dependent sectors: On the other side the sectors which are highly dependent on imports such as oil, aviation, chemicals, and fertilizers — take a hit. A weaker rupee makes raw materials costlier for them decreasing...
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Future contracts and its valuation

Index Futures or stock future are financial instruments on which traders speculate or hedge on price movements. But have you ever wondered why futures and spot prices converge on expiry? The answer lies in something called the carry cost. Lets discuss about future contracts : An agreement to buy or sell an asset at a predetermined price at a future date. It is widely used in derivative market by speculators to gain on stocks. indices and commodities. What Is Carry Cost? Carry cost refers to the cost of holding a position until the expiry date. It includes: Financing cost (interest if borrowed capital is used) Storage cost (for physical commodities) Dividends foregone (if trading futures instead of holding stocks) These costs (or sometimes benefits) are factored into the pricing of futures. That means futures mostly trade at a premium or discount to the current (spot) price depending on the carry cost. Why Do Futures Match Spot Price on Expiry? On the expiry date, the futures contract ...
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Options Hedging

  Options trading name is directly co-related to quick profits, very high risk, and low probability bets by most people.But this is not what it is actually best for, Option selling and Hedging is what makes options market profitable. This strategy is not about gambling, but about discipline, risk management, and understanding market behavior. MHV Education's Stock Market Courses cover these hedging strategies in detail and with practical execution by beginners in live markets. Option selling or Option writers are traders that are involved in selling option contracts to buyers and collecting the premium. The seller of these contract profits if the option expires worthless i.e zero, which happens if the market stays within a certain range or consolidates. For example, if you sell a NIFTY 23000 Call Option at ₹100, and the index stays below 23000 at expiry, you keep the full premium as profit. But it is not that simple, highly risky as it comes with unlimited losses if markets move...
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