An Analysis of Option Strategies and Investor

Perceptions in The Indian Stock Market

A dissertation submitted in May 2024 to the University of Hyderabad

in partial fulfilment of the requirements for the

Degree of Master of Arts in Financial Economics

By

KANDE VIDYA SAGAR

22SEMF39
 SCHOOL OF ECONOMICS
UNIVERSITY OF HYDERABAD
HYDERABAD – 500046
INDIA

May 2024
 DECLARATION

School of Economics,
University of Hyderabad,
Hyderabad – 500046 May 2024

I hereby declare that the work embodied in this dissertation entitled “AN ANALYSIS
OF OPTION STRATEGIES AND INVESTOR PERCEPTION IN THE INDIAN
STOCK MARKET” submitted to the University of Hyderabad in partial fulfilment of
requirements for the degree of Master of Arts in Financial Economics is original work carried by me
under the supervision of Prof. ALOK KUMAR MISHRA, School of Economics, University of
Hyderabad.

I declare that to the best of my knowledge, this dissertation is free from plagiarism
and no part of this thesis has previously formed the basis for award of any other degree,
diploma, fellowship or any other similar title of recognition of any other University.

(Signature of the Candidate)

Name: KANDE VIDYA SAGAR
Regd. No: 22SEMF39

i i
 SCHOOL OF ECONOMICS
UNIVERSITY OF HYDERABAD

CERTIFICATE

May 2024

This is to certify that the research work contained in this dissertation entitled “AN
ANALYSIS OF OPTION STRATEGIES AND INVESTOR PERCEPTION IN THE
INDIAN STOCK MARKET” by KANDE VIDYA SAGAR bearing Enrolment No.
22SEMF39 has been carried out under my supervision.

The thesis has not been submitted previously, in part or in full, to this or any other
University or Institution for a degree.

Prof. Alok Kumar Mishra

Professor Dean
Thesis Supervisor School of Economics
School of Economics University of Hyderabad
. University of Hyderabad

i ii
 ACKNOWLEDGEMENTS

I would like to express my deep gratitude to Professor Alok Kumar Mishra, my project guide,
for his patient guidance, enthusiastic encouragement and very useful critiques of this work.

I thank him for his time and efforts spent on making the completion of this project possible.

I also offer my sincere gratitude to Professor Debashis Acharya, Dr. Maneesha, for their time and
inputs, which have helped me improve my work significantly.

I am also very thankful to my parents, Kande Sydamma & Kande Bixapathi and friends for
their constant support through the duration of this project work. It has given me the necessary
confidence to see this work through.

I wish to express my thanks to all Teaching and Non- teaching staff members of the School
of Economics who were helpful in many ways for the completion of the project.

At last, I am very grateful for the University of Hyderabad and the amenities provided at the
Reading Room of the IGM library, which made work in a comfortable environment possible
for students.

KANDE VIDYA SAGAR

II

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 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO.

NO.
INTRODUCTION

1.1 Introduction

1.2 What is Option Trading

1.3 Different forms of Options

1
1.4 Structure of Indian Stock Market

1.5 Statement of Problem

1.6 Research Objective

REVIEW OF LITERATURE
2
2.1 Review of Literature

RESEARCH METHODOLOGY
3.1 Title

3.2 Methodology

3.3 Research Design

3
3.4 Sources of Data

3.5 Tools and Software Analysis

3.6 Locations

3.7 SCOPE

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 3.8 Tools for Analysis

3.9 Limitations

DATA ANALYSIS & INTERPRETATION

4.1 Data Analysis

4 4.2 Percentage Analysis

4.3 Statistical Analysis and Results

4.4 Statistical Analysis

Suggestions & Conclusion

5 5.1 Suggestion

5.2 Conclusion

REFERENCES

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 LIST OF TABLES Page No

Table 4.1: Average of past 3 Years……………………………………………………..14

Table 4.2: Analysis of TATA Consumer……………………………………………….15
Table 4.3: Analysis of BATA INDIA…………………………………………………..16
Table 4.3: Analysis of GODREJ………………………………………………………..17
Table 4.4: Analysis of HDFC BANK…………………………………………………..18
Table 4.5: Analysis of AXIS BANK……………………………………………………19
Table 4.6: Analysis of ICICI BANK……………………………………………………20
Table 4.7: Analysis of NIFTY 50……………………………………………………….21
Table 4.2 1- GENDER………………………………………………………………….22
Table 4.2.2- AGE OF THE RESPONDENT…………………………………………...23
Table 4.2.3 EDUCATIONAL QUALIFICATION……………………………………..24
Table 4.2.4 OCCUPATION…………………………………………………………….25
Table 4.2.5 KNOWLEDGE OF INVESTORS…………………………………………26
Table 4.2.6 RISK TAKEN BY INVESTORS………………………………………….227
Table 4.2.7 SERVICE AND GUIDENCE……………………………………………...28
Table 4.2.8 INVESTORS SATISFACTION……………………………………………29
Table 4.3.1 TATA Consumer…………………………………………………………...30
Table 4.3.3 GODREJ…………………………………………………………..………..31
Table 4.3.4 HDFC BANK………………………………………………………..……..31
Table 4.3.5 AXIS BANK………………………………………………………...……..32
Table 4.3.6 ICICI BANK………………………………………………………...……..32
Table 4.3.7 NIFTY 50…………………………………………………………...……...33
Table 4.3.8 FMCG………………………………………………………………………34
Table 4.3.9 Banking……………………………………………………………………..35
Table 4.4.1 – Service and Knowledge…………………………………………………..36
Table 4.4.2 – Service and Risk………………………………………………………….37
Table 4.4.3 – Service and Satisfaction………………………………………………….38
Table 4.4.4 – Knowledge and Service………………………………………………….39
Table 4.4.5 – Risk and Service………………………………………………………….40
Table 4.4.6 – Satisfaction and Service………………………………………...………..41
Table 4.4.3 – ANOVA………………………………………………………………….42

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I
 LIST OF FIGURES

Page No

Fig 1: Call Option……………………………………………………………………...….3

Fig 2: Put Option……………………………………………………………………..…...3
Figure 4.2.1- Gender of Respondents…………………………………………………....22
figure 4.2.2- Age of the respondent………………………………………………………23
Figure 4.2.3- Educational Qualification………………………………………………….24
Figure 4.2.4- Occupation of the respondents…………………………………………….25
Figure 4.2.5- Knowledge of investors…………………………………………………….26
Figure 4.2.6- Risk taken by Investors…………………………………………………….27
Figure 4.2.7- Service and Guidence………………………………………………………28
Figure 4.2.8 -Investors Satisfaction………………………………………………………29
Figure4.3.1-TATA Consumer……………………………………………………………30
Figure 4.3.3 – Godrej…………………………………………………………………….31
Figure 4.3.4-HDFC BANK………………………………………………………………31
Figure 4.3.5-AXIS BAN…………………………………………………………………32
Figure 4.3.6-ICICI BANK……………………………………………………………….32
figure 4.3.7-NIFTY 50…………………………………………………………………..33
Figure 4.3.8- FMCG SECTOR………………………………………………………….34
Figure 4.3.9- BANKING SECTOR…………………………………………………….35

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 EXECUTIVE SUMMARY

Name of the student: KANDE VIDYA SAGAR

Enrolment No: 22SEMF39
Degree for which submitted: Master of Arts in Financial Economics
School: Economics
Thesis title: ‘An Analysis of Option Strategies and Investor Perception in the
Indian Stock Market’.
Thesis supervisor: Prof. ALOK KUMAR MISHRA
Month and year of thesis submission: May 2024

ABSTRACT:

Options trading methods are an essential component of financial markets, utilized by traders and
investors all over the world to control risk and make profits. The Indian derivatives market’s most
significant section is Options. The fact that there is an option strategy for practically any circumstance
makes option trading one of the most powerful forms of investment. This research aims to examine some
of the basic yet noticeable aspects of options trading and identify strategies for increasing returns. It
examines 7 distinct equities, 3 of which are listed under the FMCG sector, 3 under the banking sector, and
one under the indices category. On the other hand, the stock market offers to the investors the chance to
park their savings in the hopes of obtaining a high rate of returns quickly. In the modern era of technology,
investors have access to stock market and company financial data, helping them to select stocks gradually
to reach their expectations. Therefore, the purpose of this research study is to identify a strategy using the
simple Average method, Timing Risk and speculation to provide clarity and a new range of analytical
tools. Scholarly investigations have been conducted to determine the variables impacting investors
investing choices. A systematic questionnaire is used to collect primary data. The study will include 200
respondents from Hyderabad and Warangal. In this investigation, data analysis was done with percentages
and statistical analysis.

KEYWORDS: Stock Market, Option pricing, Average Method, Timing Risk, Monthly Trend Analysis,
Seasonality, Investment, Equity Market.

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 CHAPTER -1
INTRODUCTION

1.1 Introduction
The art of finance involves identifying opportunities and implementing solutions to maximize
systemic benefits. The well-known scientific principle known as the Law of Conservation of Mass,
which asserts that "Matter is neither created nor destroyed," is where finance derives its existential
relevance. It is limited to transfers. When we substitute "money" for "matter," the sentence becomes
related to the idea of finance. The fundamental idea that money is a limited resource that can only be
transferred, not generated, is the foundation of all economies. Derivatives known as options provide
investors the choice to buying or selling the underlying asset at a fixed rate, but they aren’t required
to carry out the bond until it matures.

There are some risk and uncertainty associated with this, thus we are offering a straightforward yet
methodical way to figure out the price of the option by looking at the average price fluctuations in
the underlying segment. Investors can buy and sell equities in person at stock market. Due to
increased investor awareness, education, and interest protection during the previous few decades, the
average individual’s interest and perspective towards the stock market has increased drastically.
Industry, technical, viability, investors’ desire to create profit, etc. the two main and important stock
exchanges that investors in India may trade on are the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE). Using licensed stock brokers, investors can trade shares of firms
listed on these two exchanges.

In the current situation, the majority of individuals as seen to be capable of becoming investors if
they make enough money to save for the future, but they lack the necessary expertise to know where
to put their savings to get higher returns. They though investing is a dangerous activity, time is an
investor’s most valuable resource. If they begin investing at a young age, they will have the
foundation for future investments, financial gains, and entrepreneurial activities. Stock market
information and awareness are made available to help investors improve their knowledge, confidence
and awareness of financial markets, products, risk levels, etc. in the modern digital age improve
financial literacy period. However, investors still view the stock market investment as extremely
risky, and their negative behaviour discourages them from making such a move.

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Furthermore, there is a great deal of responsibility placed on potential investors when it comes to
stock market investments. If they make wise choices in the nation’s top companies, they could
benefit personally from dividends and capital gains, but more significantly, their investments will
either directly or indirectly support economic growth by creating jobs and improving employment
opportunities. India’s biggest challenges are unemployment and corporate risk-free capital. As more
individuals participate in the stock market, the risk-free capitalization of businesses rises, which in
turn creates more jobs and increases the flow of money.

The abstract qualities of investors are keenly studied with considerable attention because they have a
very important influence on investing behaviour along with their stock decisions. Investors’ attitudes
and impressions of the stock market fluctuate in this dynamic market. Thus, in order to better
understand investor performance and to identify their preferences, a study was carried out. Investors
with regard to different investment possibilities.

1.2 What is Option Trading

Options trading involves buying or selling the right to either buy or sell an underlying asset at a fixed
price within a given time limit. Options offer flexibility in risk management and profit generation
over a broad spectrum of market situations, which makes them preferred among traders and
investors. Options trading techniques have gained a lot of attention in recent years, and a lot of
investors and traders are utilizing these techniques to increase their financial results.

Options trading strategies have been around for a long time, but their popularity has raised in recent
decades due to their variety and adaptability. A vast range of underlying assets, including stocks,
bonds, commodities, and currencies, may be traded using options. Additionally, they may be
employed for a variety of objectives, including income generation, risk reduction, and futures market
speculation.

Options can be OTC or exchange traded. In India, the stock market offers exclusively exchange
traded options. By assuming the role of counterparty and so removing the default risk, the futures
and options division of the exchanges enables trading in option contracts.

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1.3 Different forms of Options
There are two primary categories of options:

 American Options: Options can be allocated on any day before their expiration date. All
assignments are resolved at the weighted closing price for that day. Every stock option in
India is an American one.
 European Options: the last day of expiration is the only day these options can be assigned.
Their settlement is based on the underlying weighted average price. Since they are all
European in nature, index options can only be assigned on the day of expiration within the
contract cycle.

1.3.1 Call Option:

An Options that grants the buyer the right, but not the responsibility, to buy the underlying
asset at a predetermined price at a later time is called a call option. A premium is paid by the
call option buyer to the call option seller, also known as the writer. He is only at risk up to the
amount of the premium that was paid. However, the seller’s risk is unlimited.

1.3.2 Put Option:

In a put Option, the buyer has the opportunity, but not the obligation, to sell the underlying
asset at a predetermined price at a later time. The put option seller also known as the writer,
receives a premium from the put option buyer. He is only at risk up to the amount of premium
that was paid. However, the seller’s risk is limitless.

Fig 1: Call Option Fig 2: Put Option

Buyer Seller Buyer Seller

Risk is limited to extent Receives premium Risk is limited to extent Receives premium
of the premium paid risk is unlimited of the premium paid risk is unlimited

3
1.4 Structure of the Indian stock market

Investors can trade shares, bonds, and derivatives on the stock market. Stock exchanges, which are
essentially marketplaces that link buyers and seller enable this trading. So, the term “Structure” or
“Organized market” refers to the stock exchange. Additionally, it offers services for the delivery and
remediation of securities and further financial tools. In India, there are two significant stock changes.
These are:

 National Stock Exchange:

The National Stock Exchange of India (NSE), located in Mumbai, Maharashtra, it’s the
foremost stock Exchange in the country. NSE became the first to be established in 1992.
Decreased electronic interchange inside the nation. NSE was the foremost exchange in the
nation to provide investors spread across every corner of the nation with easy trading
facilities using a modern and fully automated screen based electronic trading avenue.

In terms of trading volumes, market behaviours, and microstructure, NSE has been a catalyst
for the transformation of the Indian securities market. The modern information technology is
used by the market today to deliver fast and efficient trading, clearing and settlement
services.

A Mechanism has seen a number of achievements and inventions in goods and services,
which includes the following: the professionalization of trading members; the development
of clearing corporations to take on counterparty risks; screen-based exchange; the
compression of settlement cycles; the dematerialization and technological transfer of
securities; the market for debt and derivative instruments; and the extensive usage of
information technology.

The development of a wide range of products, including volatility indexes, exchange-traded

funds (ETFs), Internet trading, and others, was rapid from that point on. In August 2008, the
NSE launched currency futures, and on August 31, 2009, it offered interest rate derivatives.

 Bombay Stock Exchange:

The oldest trading post in Asia is the Bombay Post. It all began in 1855 when some five stock

4
 brokers would get together in front of Mumbai Town Hall, behind banyan trees. The group
finally shifted to Dalal Street in 1874, and in 1875 it was formally incorporated as “The
Native Share & Stock Brokers Association”. Under the Securities Contract Regulation Act of
1956, it was granted permanent recognition by the Government of India. Early on, trade took
place using open outcry method, which subsequently supplied in 1995, giving rise to the
online trading system (BOLT). As of right now, BSE is the top exchange globally in terms of
listed firms and ranks fifth globally in terms of transaction volume.

India’s first stock market index and platform is the SENSEX or BSE index. It is a 30-stock
index that covers 12 industries. The BSE offers 21 indexes, including 12 sectoral indices, in
addition to the SENSEX. BSE offers an accessible and efficient market for dealing in
derivatives, debt instruments, and stocks. Its reach is nationwide since it is present in over
359 and more Indian cities and villages. India’s most commonly followed stock market
benchmark index is the S&P BSE SENSEX, which is a quite popular equity index offered by
BSE. It is traded globally on major exchanges of the BRCS countries (Brazil, Russia, China,
and Africa) as well as the EUREX.

 Stocks and Index Options

There are two categories of options: Index options and Individual stock options. Stock
options’ fundamental asset is individual stock, although that the stock index is one type of
index option. An investor can purchase or sell options on the individual stocks of SBI, ACC,
AXIS and Infosys, for instance.

Likewise, he can purchase or sell options on the Nifty or Sensex, which also contain these
stocks. When it comes to stock options, the payoff is determined by the price of each share,
while with index options, the option price is determined by changes in the index value. This
dissertation contains further information regarding lot sizes, contract terminology used by
BSE and NSE, and stock and index options.

1.5 Statement of Problem

The process by which a derivatives market functions is predicated on the value of an underlying
assert being used to determine the derivative’s value. An impartial method of observing an
underlying value is required in this market since there are the components of risk and uncertainty
involved in this. In this research study, the average price changes in the prices of the underlying are
taken into consideration to establish the price of an option using a straightforward yet methodical

5
technique.
A thorough knowledge of investor perception and how it affects market dynamics is lacking, despite
the growing significance of the Indian stock market and its expanding connection with international
financial markets. The stock is perceived unenthusiastically by investors because of its high
volatility, fear of loss, low returns, lack of awareness, and knowledge.

Here I found some problems investors face when investor going start investing in the stock market.
Enhancing market participation, fostering a more efficient and knowledgeable market, and boosting
investor education may all be guided by the knowledge gap. Investors, particularly new investors are
not well informed on risk management, investing techniques, and other facts of the stock market.

1.6 Research Objectives

The following are the main objectives of this study:

 To study Option trading strategy from an Investor’s point of view

 To study how the seasonality of the underlying and option prices monthly trends, and
average stock prices are related

 To study the perception of investors in the Indian stock market with reference to
Hyderabad and Warangal cities

 To evaluate investor’s satisfaction with returns and investment in the stock market.

6
 CHAPTER -2

REVIEW OF LITERATURE

2.1 Review of Literature

 S. Ashraf, Jamia Nagar, Mirza Allim Baig (2015) in this article titled “Investment and
Trading Strategies in Indian Stock Market” explains, That the study examines trading and
investing techniques in the Indian stock market, highlighting the significance of beta and the
debt-to-equity ratio. It also makes many recommendations for both short-term and long-term
investment strategies. The financial services industry is recognized for having unique return
patterns over both short and extended periods of time. For this study, data analysis techniques
were used in conjunction with daily data for CNX100 firms over a predetermined period.
Long-term investment in low-beta and debt to equity ratio equities generates better returns,
but short-term trading in high-beta and high debt to equity ratio stocks produces large gains
quickly. The financial services industry has great returns in short run but low return in long
run when measured against typical equities.

 K. Srinivasan, (2021) in this article titled “Trading Stocks or its Options – Analysis of
Publicly Traded Oil Companies in India.” The nature of the stock market is quite volatile.
Buying and selling high valued stocks, exercising options, and trading option contracts are
some of the ways that traders profit from this volatility. Only with knowledge of market
movement tendencies is this possible. The markets have changed because of recent
developments in neural networks and deep learning. The analysis of stock purchases, call
option exercises, and options exercises is the focus of this article.

 Raghavendra Acharya, Vidya Bai, G. Rajeev Matha (2022) in this article named “Are
Options Trading Strategies Relly Effective for Hedging in the Indian Derivatives
Market?.” Research shows that the covered call strategy offers little rewards in addition to
efficient hedging. Studies haven’t, however, contrasted the efficacy of collar, synthetic long
call, synthetic log call, covered put, and covered call hedging methods in the equity market.
The NSE sector indexes top six businesses are chosen for 12 th years, from 2009 to 2020,
when the market is neutral and volatile. This allows the study to assess the hedging efficiency

7
 of option trading techniques. For each strategy, the study takes into account 3745
observations and gathers data from 18,720 options contracts.

 P. Bangur, M. Kumar Singh, P. Singh, R. Bangur (2021) in this article titled “Properties
of Indian Stock Market: Evidence using strap option strategy” using strap option methods
and the trigonometric of options, this analysis attempts to quantify the volatility and dynamic
behaviour and movement attribute of the Nifty Index. Every month from 2007 to 2020, the
data from tactics has been examined. In this investigation, both log and short-strap techniques
have been applied. Any trader on the Nifty may regularly employ the short trap option for
profit making trading in the Nifty since the angle in both strap option methods sits more in
the negative volatility area and the range bound movement area.

 Deepika Krishnan, G. Raju (2018) name of the paper “Performance Analysis of Volatile
Strategy under Indian Option Market” By making money in both call and put directions,
options strategies help to reduce risk. To find the ideal technique that will not falter in the
volatile market, traders must analyze the market. The primary problem in the market
volatility, which leads to the formulation of new strategies to reduce risk. Exports in the
options market believe that the best volatility strategies are the strangle and straddle. Thus, it
becomes a matter of which technique, under volatile conditions, yields a bigger positive
return. Accordingly, utilizing Sharpe, Treynor, and Jensen’s alpha ratios, a performance
analysis is conducted depending on the individual quality and market circumstances. From
2010 to 2016, daily, data was gathered using European call and put options with near. Next,
and distant month maturities.

 Dr. G.C. Venkataiah, M. Naidu, Dr. M. Paparao (2021) in this article titled “Analysis of
Influencing Factors of Investors’s Perceptions on Indian Stock Markets.” Group investors
can combine their resources for a shared purpose by investing in the Indian stock market.
Companies funded by banks, financial institutions, private businesses, or foreign corporations
oversee stock market plans in India. The purpose of this survey was to find out more about
people’s perceptions on investing in the Indian stock market. The researcher conducted
interviews with 101 individuals who had participated in stock markets, including the BSE and
NSE, for this study. Hyderabad city Investors comprise the study’s universe, and easy
sampling is the method of choice for this empirical investigation. An organized questionnaire
was used to collect primary data for this investigation. The study conclusion implies that, in
addition to other factors that affect stock market prices at the BSE and NSE, investors should

8
 also be very aware of foreign relations, tax rates, political decisions, inflation rates, and
currency fluctuations. These factors also have impact on investor perceptions.

 Sahil Goyal, Saloni Jain (2020) name of the article is “Investor’s Perceptions Towards
Risk-Return in Indian Stock Market: An Empirical Analysis.” The study of investor’s
perceptions of their decisions is a developing area in the discipline of behavioural finance. A
person may be forced to make an illogical decision by a variety of circumstances and biases
when faced with an element of risk, or an unexpected chance of gain or loss. The market has
grown in size as a result of globalization and innovation, which has also complicated the
decision to invest. The study makes use of primary data to identify behavioural biases that
impact retail investor’s perceptions of risk and returns as well as the relationship between
investment decision-making and demographic variables.

The study component analysis identified 10 major factors, including overconfidence, herding,
and market variables. The Chi-square test also revealed a clear correlation between gender
and investment choice, but not with occupation. To find the important sources that investors
consider before investing, such as the company statement and EPS, a ranking test was
employed. These findings point to possible biases in investors decision-making. Because of
this, an investor has to be cognizant of their actively work to overcome them to make well-
informed decisions.

 Pooja Gupta, Anshu Bhardwaj (2020) in this article named “Perception and Behaviour on
Volatility in Indian Stock Market.” The investigation of how investor behaviour and
perception affect the volatility of the Indian Stock market is the main topic of this paper.
Three biases are employed as a stand in for perception and behaviour in the study to assess
investor perception. These are herding, disposition effect, and overconfidence. A total of 612
active investors in the Indian Stock Market made up the final sample size. The online
approach to conducted the survey was used.

According to the findings, the Indian Stock Market volatility is positively impacted by
herding and the overconfidence bias. However, disposition bias has statistically no significant
effect on the volatility of the Indian stock market. The article indicates that there is a
correlation between the volatility of the Indian stock market and the perceptions or actions of
investors.

9
 CHAPTER -3

RESEARCH METHODOLOGY

3.1 Title: “An Analysis of Options Strategies and Investor Perception in the Indian
Stock Market”
3.2 Methodology
The investor in this research, who has an INR 3 lack of investment capacity, is an options market
participant who thinks that the underlying performance would have a similar direct and indirect
impact on the related option. Consideration has been given to investing in European options with a
one-month duration. Data on the performance of every underlying stock in the equity market has
been gathered by the investor. Additionally, each stock or index average monthly performance has
been determined using the simple average method.
Total Investment =(3,00,000*90%)=2,70,000
(10% is set away as a backup plan)

Both analytical and descriptive research. Most people believe that descriptive studies are
straightforward and realistic. That might not always be the case. A high level of scientific expertise is
necessary for the researcher to conduct descriptive investigations due to their complexity.
Descriptive studies have a clear format. As a result, the researcher must carefully consider how to
formulate research questions, choose the kinds of data to be gathered, and choose the methodology to
be used.

3.3 Research Design

 Sampling Method:

Sampling is an essential statistical analysis technique that involves choosing a subset of a

prospective population to evaluate or get insights of a lower cost. The techniques I use for
sampling include a convenient sampling method that is non-probabilistic.

 Sample size -200

10
3.4 Sources of Data

 Primary Data:

Primary research describes the gathering of first-hand primary data by investigators. It is

frequently carried out after analysts have obtained some understanding of a problem through
the examination of primary data and analysis of previously gathered primary data. That can
be carried out by a variety of techniques, such as questionnaires for research.

 Primary data: Questionnaire was given to 200 investors ( Investors )

 Secondary Data

Since our research entails forecasting and speculating on future performance, it is only
dependent on historical data of the firms that are the subject of our examination. The
secondary data obtained from the sources listed below

 NSE (www.nseindia.com)

 Yahoo Finance (https://finance.yahoo.com/)

3.5 Tools and Software for Analysis

 The data was calculated and analyzed using Microsoft Excel and SPSS Software, an
application designed to be user-friendly for all types of investors.

3.6 Location
 HYDERABAD (TS)
 WARANGAL (TS)

3.7 Scope
The potential and scope of study in the subject of derivatives have not yet been fully realized. The
purpose of this analysis is to use speculation and the simple average method to develop a strategy
based on basic derivative factors such as monthly trends and seasonality.
S. No FMCG BANKING INDEX
1 TATA Consumer HDFC NIFTY 50
2 BATA India AXIS
3 Godrej ICICI

11
3.8 Tools for Analysis

 Percentage Analysis:

An analysis of percentages a descriptive statistic typically a mean or percentage is always

used to answer research questions. A percentage makes sense when it’s crucial to understand
the percentage of participants who provided a certain response. In cases when the replies fall
into different groups, a percentage is often explained.

3.9 Limitations
 This research ignores some of the fundamental components of an investing strategy in favour
of concentrating primarily on its technical features.

 It is assumed that the investor has a limited investment capacity of Rs 3 lakh.

 This research covers just 3 FMCG firms, 3 banking companies, and 1 index.

 Here also collected primary data for analysing the investors perception in the Indian stock
market.

 There’s no index used for comparison in this study, hence it is unable to investigate the
seasonality effect of the NIFTY 50.

 A risk-free investment does not exist, despite the study efforts to minimize financial and
timely risk.

12
 CHAPTER -4

DATA ANALYSIS AND INTERPRETATION

4.1 Data Analysis

The investor then monitors the fluctuation of the option prices daily keeping in mind the previously
mentioned criteria. He sells the options regardless of when they mature as long as the selling price of
the option exceeds the stop loss of the predicted return, whichever comes first. He will wait for T+3
days, where T is the investment date and then apply the stop loss. This is how the timing risk and
stop loss strategies were mostly studied in this research.

Investors should take the following steps before analyzing the option strategies from investors point
of view:

1. The following websites provided the stock price for specific stocks
NSE (www.nseindia.com), Yahoo Finance (https://finance.yahoo.com/).

2. Using the data provided above, the following formula may be used to find the simple average
for every month.
Average Return (%) = (closing stock – opening stocks) *100

3. Next, we apply the following formula to determine the Expected stock return.
Expected stock return = Opening stock + Average return

4. After that, he decides on a strike price to sign the options contract using the following two
considerations:

a. The one that is closest to the strike price that will be predicted
b. The one that has the highest market liquidity
5. The final step of this analysis is to sell the option if any of the situations listed above come
into existence, i.e., if the option’s price approaches or surpasses the expected return or
approaches or drops below the stop loss. In this step our analysis, we have taken into
consideration a crucial factor of the Time value of Money, which is the investors’ waiting
before using the stop loss technique, also known as the Time Risk, which is at (T+3) days.
13
We may calculate the profit or loss obtained for each of the three previously mentioned categories
each month after the method described above has been completed. To determine how monthly
patterns and seasonality affect an investor’s total profitability, this process must be done for every
firm within each sector.

Table 4.1: Average of past 3 Years

Months TATA BATA GODREJ HDFC ICICI AXIS NIFTY 50

Apr-22 14.73% 3.49% -5.81% -0.34% 19.17% 1.22% -1.13%
May-22 -9.53% -8.88% 5.56% 4.66% -12.68% 6.33% 7.61%
Jun-22 -0.13% 8.76% -4.58% 0.69% 3.67% -0.70% 0.59%
Jul-22 -8.89% -9.82% -9.55% -8.32% -2.10% -5.48% 0.05%
Aug-22 -5.79% 18.76% 1.49% -0.05% 13.78% 10.00% 7.92%
Sep-22 -0.95% 11.70% 12.87% 10.19% -10.12% -3.95% 2.52%
Oct-22 -7.12% 4.76% 7.47% -0.09% 9.59% -2.80% 0.80%
Nov-22 0.30% -9.60% -2.28% 2.90% 13.51% -13.16% -4.50%
Dec-22 0.41% 7.78% -5.45% -0.15% 11.54% 2.05% 1.46%
Jan-23 -7.34% 2.87% -1.79% -3.90% 0.27% 13.64% -0.27%
Feb-23 -4.96% -8.30% -17.06% -3.47% 8.29% -4.59% -4.20%
Mar-23 5.13% -26.28% -9.26% -28.19% -4.19% 2.53% 5.25%
Apr-23 2.27% 10.20% 1.53% 15.97% 2.20% -4.13% -1.92%
May-23 16.63% -2.90% 16.68% -5.01% 11.85% -5.10% -2.01%
Jun-23 10.08% -2.52% 8.75% 9.32% -5.06% -6.76% -4.91%
Jul-23 -6.85% -3.35% -0.45% -3.10% 7.66% 14.49% 9.26%
Aug-23 10.52% 3.22% -6.42% 8.76% 5.12% 3.51% 2.99%
Sep-23 -0.90% 1.45% 11.02% -4.38% -3.68% -0.04% -2.24%
The 3year Average returns for every firm are shown in the above table.
(The average of 2018, 19, and 20 has been taken into consideration for April to December 2022 and
the average of 2019, 20, and 21 has been taken into consideration for January to September 2023.)

There were notable swings in TATA and BATA, including times of significant gains and losses. In
February 2023, GODREJ saw the worst decline of -17.07% over several months with negative
returns. HDFC experienced several remarkable months, with a positive percentage of 15.97% in
April 2023 and a negative percentage of -28.19% in March 2023. ICICI BANK had a range of
positive and negative monthly returns, with its largest gain of 19.17% occurring in April 2022.
AXIS’s performance was erratic; in July 2023, it displayed a 14.49% month, but in November 2022,
it had a -13.16% month. The NIFTY 50 index fluctuated very little with a maximum monthly gain of
9.26% in July 2023.
14
Table 4.2: Analysis of TATA Consumer

Expected strike Nearest Strick price of the

Months Spot price price price option
Apr-22 779.95 836.85 824 12.00
May-22 823.30 832.00 760 4.00
Jun-22 760.00 780.50 706 4.50
Jul-22 700.00 824.00 812 3.60
Aug-22 812.00 826.00 810 8.23
Sep-22 809.65 861.15 803 2.92
Oct-22 802.85 804.80 770 13.23
Nov-22 773.00 821.95 818 9.20
Dec-22 821.90 821.90 767 3.10
Jan-23 769.90 781.00 730 2.55
Feb-23 737.25 748.40 715 2.00
Mar-23 712.95 723.20 709 2.30
Apr-23 710.00 765.00 764 3.50
May-23 763.85 800.00 799 3.76
Jun-23 798.90 877.20 861 3.60
Jul-23 866.95 883.95 859 5.52
Aug-23 861.90 863.30 834 5.92
Sep-23 833.00 909.90 877 4.80
LOT SIZE 450

Key Findings:

 Spot price: there have been notable swings in the spot prices over time, ranging from a low of
700 in July 2022 to a high of 877,20 in June 2023.

 Expected Strike prices: Starting in September 2023, the maximum predicted strike price of
909.90 is expected, with a general trend that mirrors that of the spot prices.

 Nearest Strike Prices: while there may be occasional variations owing to rounding or
particular contract terms, the nearest strike prices are often very close to the anticipated strike
prices.

 Prices for Options: the prices for options fluctuate a lot; they start at 2.00 in February 2023
and go up 13.23 in October 2022variability, time to expiry, and the correlation between the
current price and other variables all affect these prices.

15
Table 4.3: Analysis of BATA INDIA

Expected strike Nearest Strike Price of the

Months Spot price price price option
Apr-22 1954.90 1954.93 1940 45.00
May-22 1940.00 1939.91 1870 70.00
Jun-22 1875.00 1875.09 1669 42.56
Jul-22 1665.00 1664.90 1971 14.00
Aug-22 1977.95 1978.14 1949 22.20
Sep-22 1939.95 1940.07 1822 26.24
Oct-22 1818.40 1818.45 1828 27.00
Nov-22 1831.00 1830.90 1718 84.05
Dec-22 1726.50 1726.58 1649 112.00
Jan-23 1650.00 1650.03 1529 118.00
Feb-23 1529.35 1529.27 1411 120.00
Mar-23 1410.00 1409.74 1418 65.00
Apr-23 1436.00 1436.10 1475 37.00
May-23 1474.65 1474.62 1584 73.68
Jun-23 1590.00 1589.97 1676 64.00
Jul-23 1678.95 1678.92 1736 42.60
Aug-23 1737.30 1737.33 1688 33.00
Sep-23 1687.95 1687.96 1668 90.00
LOT SIZE 375

Key Points:
 The spot prices show notable wings in the value of the underlying asset, ranging from a low
of 1410 in March 2023 to a high of 1977.95 in August 2022 there are not many differences
between the spot prices and the predicted strike pricing.

 The option prices have a broad range, indicating different levels of volatility and risk
premiums, from a low of 140 in July 2022 to a high of 120 in February 2023.

 Each deal specifies a lot size of 375 units.

 The data which spot prices, predicted strike prices, nearest strike prices, and option pricing
for various months between April 2022 and September 2023.

 Options prices vary greatly, and there are notable swings. These variations are probably
caused by several variables, including volatility and time to expiration.

16
Table 4.3: Analysis of GODREJ

Expected strike Nearest Strike Price of the

Months Spot price price price option
Apr-22 750.00 832.8 780 25.00
May-22 781.00 838.2 761 33.00
Jun-22 780.00 808.5 750 12.00
Jul-22 757.05 898.8 850 24.40
Aug-22 854.15 938.0 920 13.00
Sep-22 910.00 956.0 910 14.90
Oct-22 910.45 921.0 829 22.00
Nov-22 830.00 888.9 881 4.66
Dec-22 885.95 928.0 874 13.20
Jan-23 877.95 946.2 913 18.30
Feb-23 927.00 953.7 923 7.60
Mar-23 923.35 973.0 968 21.05
Apr-23 970.00 992.2 998 23.00
May-23 907.50 1065.0 1058 22.00
Jun-23 1068.30 1089.0 1081 21.00
Jul-23 1078.15 1102.1 1036 28.00
Aug-23 1036.00 1048.0 1000 4.70
Sep-23 1004.90 1047.2 992 12.00
LOT SIZE 500

Here are the key Findings:

 Spot prices: Since April 2022, when the spot price was 750, it has been rising steadily. In July
2023, it reached a peak of 1,078.15, and then it started to decline.

 A peak of 1102.10 is anticipated for July 2023. The estimated strike prices closely track trend
of the current prices. The market expectations or particular contract requirements may be the
cause of some of the variations from the spot pricing.

 Nearest Strike prices: with a few exceptions, the nearest strike prices are often not too far
from the projected strike prices.

 The closest strike price of 1,036 is far lower than the anticipated strike price of 1,102.10 in
July 2023, which shows the biggest difference.

17
Table 4.4: Analysis of HDFC BANK

Expected strike Nearest Strike price of the

Months Spot price price price option
Apr-22 1476.40 1722.10 1400 8.00
May-22 1362.05 1420.50 1300 4.00
Jun-22 1380.00 1400.75 1350 1.40
Jul-22 1343.95 1438.60 1385 2.60
Aug-22 1439.00 1513.90 1389 14.80
Sep-22 1464.75 1540.95 1348 17.28
Oct-22 1409.95 1498.00 1434 24.20
Nov-22 1503.50 1642.00 1486 13.34
Dec-22 1622.00 1669.40 1421 32.40
Jan-23 1627.00 1702.40 1497 24.60
Feb-23 1624.00 1681.90 1608 12.22
Mar-23 1612.00 1645.95 1628 3.30
Apr-23 1607.55 1720.00 1604 5.44
May-23 1687.60 1734.45 1600 15.30
Jun-23 1619.90 1708.80 1610 2.76
Jul-23 1712.50 1757.50 1688 7.02
Aug-23 1654.45 1667.45 1611 11.00
Sep-23 1571.00 1670.00 1570 21.10
LOT SIZE 550

Key Points:

 Spot price: In April 2022 and September 2023, the spot price varied between around 1350
and 1720. May 2022 had the lowest spot price of 1362.05. April 2023 saw the highest spot
price of 1722.10.

 Expected strike prices: Generally speaking, predicated strike prices tracked the spot prices
pattern, peaking at 1757.50 in July 2023 and falling to1400.75 in June 2022.

 The Nearest strike prices were often less than the predicted strike prices. The biggest
discrepancy was noted in April 2022, when the nearest strike price of 1400 was far less than
the projected strike price of 1722.10.

 Price of the Options: The prices of the options changed greatly, from a June 2022 low of 1.40
to a December 2022 high of 32.40.

 Here we know that the lot size of the HDFC bank is 550
Table 4.5: Analysis of AXIS BANK

18
 Expected strike Nearest strike Price of the
Months Spot price price price option
Apr-22 760.00 760.01 760.0 12.00
May-22 722.00 738.20 730.0 2.50
Jun-22 683.00 698.00 690.0 14.50
Jul-22 633.00 738.80 730.0 11.00
Aug-22 726.00 776.00 770.0 10.92
Sep-22 733.50 816.20 800.0 8.10
Oct-22 731.00 919.95 900.0 3.30
Nov-22 904.00 905.10 910.0 35.00
Dec-22 909.50 958.90 950.0 22.40
Jan-23 932.25 970.00 970.0 11.40
Feb-23 876.30 899.15 850.0 25.32
Mar-23 846.05 874.25 870.0 10.22
Apr-23 864.00 895.80 890.0 8.50
May-23 860.00 939.90 930.0 12.40
Jun-23 922.00 989.85 990.0 14.45
Jul-23 990.00 990.00 1000.0 10.20
Aug-23 956.00 998.00 1050.0 15.10
Sep-23 974.25 978.25 980.0 24.10
LOT SIZE 650

Key Points:

 Spot prices: From April 2022 to July 2023, the spot prices showed a generally rising
tendency, peaking at 990 in July 2023. However, in the latter part of the period, the spot
prices showed a minor decline.

 Expected strike prices: these figures roughly corresponded to the spot price trend, with
August 2023 seeing the highest predicted strike price of 998.

 Nearest strike prices: in August 2023, the nearest strike price of 1050 exceeded the projected
strike price of 998, resulting in the biggest variance.

 Prices of options: the prices of options ranged greatly, from 2.50 in May to 35 in November
2022, at their lowest point.

Table 4.6: Analysis of ICICI BANK

19
 Expected strike Nearest strike price of the
Months Spot price price price option
Apr-22 725.00 725.19 740 15.50
May-22 732.00 756.70 750 18.15
Jun-22 748.00 757.00 740 14.50
Jul-22 703.45 823.40 700 14.35
Aug-22 820.70 890.75 820 17.34
Sep-22 863.00 936.65 862 1.50
Oct-22 859.70 943.25 850 0.88
Nov-22 921.00 958.20 920 12.79
Dec-22 956.00 957.00 950 10.05
Jan-23 894.00 907.90 890 1.30
Feb-23 843.45 877.80 850 4.20
Mar-23 864.00 881.00 860 1.55
Apr-23 880.20 920.45 880 10.23
May-23 917.65 958.85 910 5.36
Jun-23 954.25 954.25 930 2.10
Jul-23 937.00 1008.70 990 4.50
Aug-23 1001.65 1003.70 959 7.88
Sep-23 956.90 997.50 952 4.80
LOT SIZE 700

Key Points:

 Spot price: over time, spot price showed a general upward trend, peaking at 1001.65 in
August 2023 after beginning at 7250 in April 2022. There were some variations, with January
2023 (894) showing a particularly significant decrease.

 Expected strike prices: these figures roughly corresponded to the spot price trend with July
2023 seeing the highest projected strike price of 1008.70.

 The notable divergence was noted in July 2022, as the closest strike price of 700 was much
less than the anticipated strike price of 823.50.

 Option prices: there was a significant range in the option prices, which decreased to 0.88 in
October 2022 and increased to 18.15 in May 2024

Table 4.7: Analysis of NIFTY 50

20
 Expected strike Nearest strick price of the
Months Spot price price price option
Apr-22 17436.90 18114.65 1710 60.10
May-22 16924.45 17132.85 16580 2.05
Jun-22 16594.40 16793.85 15780 25.05
Jul-22 15703.70 17172.80 17158 18.01
Aug-22 17243.20 17992.20 17759 120.00
Sep-22 17485.70 18096.15 17094 48.00
Oct-22 17102.10 18022.80 18010 45.01
Nov-22 18130.70 18816.05 18750 65.04
Dec-22 18871.95 18887.60 18120 98.00
Jan-23 18131.70 18251.95 17660 38.90
Feb-23 17811.60 18134.75 17300 168.70
Mar-23 17360.10 17799.95 17360 32.97
Apr-23 17427.95 18089.15 18065 118.00
May-23 18124.80 18662.45 18534 18.32
Jun-23 18579.40 19201.70 19180 62.35
Jul-23 19246.50 19991.85 19750 13.08
Aug-23 19784.00 19795.60 19260 13.02
Sep-23 19258.15 20222.45 19680 100
LOT SIZE 25

Key Points:

 Spot price: From 17,436.90 in April 2022 to a high of 19,784 in August 2023, the spot prices
show a typically rising trend during the time.
 Expected strike prices: the maximum predicted strike price of 20,222.45 is anticipated in
September 2023, and they closely mirror the trend of the spot prices.
 The strike price of 15,780 in June 2022 is the closest to the predicted strike price of
16,793.85, which is much lower.
 Prices of the options: the prices of the options range greatly from 2.05 in May 2022 to 168.70
in February 2023, at their lower point.
 Lot size: The minimum transaction size for this lot size is 25 units, which is less than some of
the preceding lot sizes.

4.2 Percentage Analysis

Table 4.2 1- GENDER

21
 Number of
S. NO Particulars Respondents Percentage

01 Male 120 60%

02 Female 80 40%

TOTAL 200 100%

Figure 4.2.1- Gender of the Respondents

GENDER OF RESPONDENTS

Male

40% Female
60%

INTERPRETATION: Analysis the data shows the 200 respondents’ gender distribution. Out of 200
responders in total, 120 are men (or 60% of the total), while the remaining 80 are women (or 40% of
the total)
INFERENCE:

 The ratio of male to female respondents in the sample is 3:2, meaning that there are more
male respondents than female respondents.

 The sample’s gender distribution is unbalanced, with a greater proportion of men than
women.

 The male population is greater than the female population in that specific context if this
sample is indicative of the broader population.

Table 4.2.2- AGE OF THE RESPONDENT

22
 Number of
S.NO Particulars Respondents Percentage

01 20-30 115 58%

02 31-40 40 20%

03 41-50 25 13%

04 Above 50 20 10%

TOTAL 200 100%

figure 4.2.2- Age of the respondent

10% 20-30

13% 31-40

41-50
57%
20% Above 50

INTERPRETATION: Using the above four age groups 20-30 years, 32-40 years, 41-50 years,
and beyond 50 years, the data displays the age distribution of the 200 respondents. Out of all the
respondents, 58% are in the 20-30 age range, which has the most number of respondents 115. 20% of
the total respondents fall into the age category with the second highest number of respondents, which
is 31 to 40 years aged. Age 41 to 50 had the third highest number of respondents, with 25
respondents or 13% of all respondents in this age bracket.

INFERENCE: Majority of the respondent (57%) are age between 20-30.

4.2.3 EDUCATIONAL QUALIFICATION

Number of
S.NO Particulars Respondents Percentage (%)

23
 1 Diploma 70 35%

2 Graduates 90 45%

3 Post - Graduates 40 20%

TOTAL 200 100%

Figure 4.2.3- Educational Qualification

Graduate

Post- Graduate

35% Diploma
45%

20%

INTERPRETATION: The information displays the distribution of respondents’ educational

backgrounds into 3 groups: Graduate, Post- graduate, and Diploma. Graduating is the category with
the most number of responses, with 90 respondents (45%). With 35% responses of the total
respondents, Diploma is the category with the second highest number of respondents. 20% of the
total respondents, Post-Graduate is the group with fewest respondent.

INFERENCE: Majority of the respondents (45%) are Graduate only.

4.2.4 OCCUPATION

24
 S. NO Particulars Number of Respondents Percentage

1 Students 30 15%

2 Investors 60 30%

3 Employee 110 55%

TOTAL 200 100%

Figure 4.2.4- Occupation of the respondents

Occupation of Respondents
Students
Investors
Employee
15%

55% 30%

INTERPRETATION: Employee had the biggest number of replies with 110, accounting for
55% of the total. 30% of the total respondents, second- highest category of respondents. Investors,
Students accounted for 15% respondents of the total.

INFERENCE: Over 55% of sample’s respondents are employees, making up the majority of the
sample’s respondents.

25
Table 4.2.5 KNOWLEDGE OF INVESTORS

Knowledge of Investors Strongly Agree Agree Neutral Disagree

Knowledge of stocks and firms on the stock market

38 68 94 0

Stability is the reason for market returns on shares.

27 110 63 0

Prediction drives market returns from shares.

29 122 49 0

stock market returns with the use of a broker

24 90 70 16

Finding a Statement of Investment Policy

35 58 85 22

120
80
40
0
Strongly Agree
Agree
Neutral
Disagree

Figure 4.2.5- Knowledge of investors

INTERPRETATION: As seen by the large number of “Neutral” replies, many investors either have
no view or are neutral on their understanding of stock. There is lack of substantial agreement on
several areas of investing knowledge.

Table 4.2.6 RISK TAKEN BY INVESTORS

26
 RISK TAKEN BY INVESTORS Strongly Agree Agree Neutral Disagree

Investment entails gambling involves a lot of risk

25 55 110 10
The ideal investing level for investors is determined by the
broker 23 132 45 0
More money one has, the more investment risk one can
take 26 58 98 18

More money allows one to take on more investing risk

38 88 58 16

Senior citizens have lower investment risk

20 116 64 0

Figure 4.2.6- Risk taken by Investors

INTERPRETATION: Responses differed in some areas (49% were indifferent on wealth-risk

relationships), but there was strong agreement in others (77.5% acknowledged brokers' role).
Considering that there is no one-size-fits-all strategy for taking investment risk, this variability
emphasizes the need for more education and customized risk assessment.

140

120

100

80
Strongly
60 Agree

40 Agree

20 Neutral
Disagree
0
Investment entails The ideal investing More money one has, More money allows Senior citizens have
gambling involves a level for investors is the more investment one to take on more lower investment risk
lot of risk determined by the risk one can take investing risk
broker

Table 4.2.7 SERVICE AND GUIDENCE

27
 Strongly
SERVICE & GUIDENCE OF STOCK BROKING Agree Neutral Disagree
Agree

Received sufficient details from the Brokers

24 52 124 0

Staff are kind and helpful

20 128 52 0

Quality of the services provided

32 70 98 0

Available appointment times

30 60 90 20

Effective guidance is provided at the centre

32 75 80 13

140
120

100
Strongly
80 Agree
Agree
60
Neutral
40 Disagree
20

0
Received sufficient de- Staff are kind and Quality of the services Available appointment Effective guidance is
tails from the Brokers helpful provided times proided at the centre
Figure 4.2.7- Service and Guidence

INTERPRETATION: Investors were divided on whether brokers supplied enough information

(62%) and if the services were of a high enough calibre (49%). However, most were pleased with the
staff's helpfulness and politeness (74% agreed or strongly agreed).
There was a mixed reaction about available appointment times; 45% agreed or strongly agreed, 45%
were indifferent, and 10% disagreed.

Table 4.2.8 INVESTORS SATISFACTION

28
 INVESTOR SATISFACTION Strongly Agree Agree Neutral Disagree

Rate level of Investment experience

30 40 130 0

How likely would you recommend

20 100 67 13

The quality of the guidance and services offered

30 44 116 10

satisfaction with a option investing

17 86 33 64

probably advised, investor taxes

20 60 110 10

Figure 4.2.8 -Investors Satisfaction

140

120

100
Strongly
80 Agree
Agree
60
Neutral
40 Disagree

20

INTERPRETATION: A favorable overall experience was indicated by the fact that 60% of
investors Agreed they would likely suggest the service, while 65% of investors stayed neutral when
grading their investing experience. The results indicate that there is potential for improvement in the
quality of services provided, with 58% of respondents being neutral, 37% agreeing and 5% disagree.

4.3 Statistical Analysis and Results

29
 Table 4.3.1 TATA Consumer
MONTHS YEAR 2022 YEAR 2023
JANUARY 28.00% TATA
FEBRUARY 63.00% 1.5
MARCH 24.00%
1
APRIL 38.00% 134.00%
MAY 55.00% 32.00% 0.5
JUNE 34.00% 29.00%
JULY -42.00% -36.00% 0
Y L
AUGUST 55.00% 20.00%
Y
A R U AR AR C
H RI AY NE LY ST BE
R
BE
R
BE
R
BE
R
U AP M JU JU U
SEPTEMBER 8.00% -70.00% -0.5N BR M UG EM T O
VE
M
CE
M
JA FE
A PT OC DE
SE NO
OCTOBER -48.00% -1
NOVEMBER -46.00%
DECEMBER 53.00% YEAR 2022 YEAR 2023

figure4.3.1-TATA Consumer

1. Tata Consumer products: The results indicate an overall profitable of 20.82%, with the
largest profit of 134% recorded in April 2023 and the highest loss of -70% in September
2023.

Table 4.3.2 BATA INDIA

Figure 4.3.2- BATA INDIA
YEAR
MONTHS 2022 YEAR 2023 2. BATA
JANUARY -32.00% 0.8
FEBRUARY 9.09%
0.6
MARCH 50.00%
APRIL 55.00% 22.33% 0.4
MAY -38.00% -40.79% 0.2
JUNE 22.00% 62.02%
JULY 32.18% 18.82% 0
L
RY AR
Y
RC
H RI AY NE LY ST BE
R ER BE
R
BE
R
AUGUST 31.33% 42.86% -0.2 UA A AP M JU JU U B
N BR
U
M UG EM TO EM E M
SEPTEMBER 12.56% 8.29% JA FE
A PT OC V
DE
C
-0.4 SE NO
OCTOBER -25.32%
NOVEMBER 14.02% -0.6
DECEMBER -30.23% YEAR 2022 YEAR 2023

2. BATA INDIA Consumer product: The results shows that overall profit of 15.5%, with the
highest Profit of 63.02% recorded in June 2023 and the highest loss of -40.79% in May 2023.

Table 4.3.3 GODREJ

30
 YEAR YEAR
MONTHS 2022 2023 GODREJ
JANUARY 15.20% 3.5
FEBRUARY 63.88% 3
MARCH -33.10% 2.5
APRIL -37.87% -8.08% 2
MAY 208.11% -65.20% 1.5
JUNE 32.08% 18.90% 1
JULY -47.01% 19.28% 0.5
AUGUST 286.08% 28.05% 0
L
SEPTEMBER -82.20% 50.00% -0.5 AR
Y
AR
Y
RC
H RI AY NE LY ST BE
R
BE
R
BE
R
BE
R
U A AP M JU JU U
AN BR
U
M UG EM TO
VE
M
CE
M
OCTOBER 8.30% J-1 FE
A PT OC DE
SE NO
NOVEMBER -52.67% -1.5
DECEMBER 45.00% YEAR 2022 YEAR 2023
Figure 4.3.3 - Godrej

3. Godrej Products: The results indicate an overall profitable of 21.02%, with the largest profit
of 286.08% recorded in August 2022, and the highest loss of -65.30% in May 2023.

Table 4.3.4 HDFC BANK

YEAR YEAR
MONTHS 2022 2023 HDFC
JANUARY 23.08% 1.2
FEBRUARY 20.30% 1
MARCH 18.09% 0.8
APRIL 22.00% 108.08% 0.6
MAY -30.01% 18.06% 0.4
JUNE 20.80% -48.02% 0.2
JULY 24.98% 20.45% 0
L
AUGUST 22.09% 20.32% -0.2 AR
Y
AR
Y CH RI AY NE LY ST BE
R ER BE
R
BE
R
U AR AP M JU JU U OB
N R U
M UG E M T E M E M
SEPTEMBE JA
-0.4
FE
B A PT OC V
DE
C
SE NO
R 19.07% -65.05% -0.6
OCTOBER 19.96% -0.8
NOVEMBER -28.03%
Series1 Series2
DECEMBER 20.10%
Figure 4.3.4-HDFC BANK

4. HDFC BANK: Overall profit was 8.50%, according to the findings, with the highest profit
of 108.08% occurring in April 2023 and highest loss of -65.05% occurring in May 2023.

31
 Table 4.3.5 AXIS BANK
MONTHS YEAR 2022 YEAR 2023
JANUARY 28.58% AXIS
FEBRUARY -37.00% 1
MARCH 22.80% 0.8
0.6
APRIL 20.21% 63.27%
0.4
MAY -61.15% -47.09%
0.2
JUNE 38.30% 36.23% 0
L
JULY 0.10% 0.10% -0.2 AR
Y Y
AR AR C
H RI AY NE LY ST BE
R
BE
R
BE
R
BE
R
U AP M JU JU U
AUGUST -55.31% 76.00% -0.4 N BR
U
M UG EM T O
VE
M
CE
M
JA FE
A PT OC DE
SEPTEMBER -88.92% 25.08% -0.6 SE NO

OCTOBER 23.39% -0.8

-1
NOVEMBER -32.01%
DECEMBER 16.86% YEAR 2022 YEAR 2023
Figure 4.3.5-AXIS BANK

5. AXIS BANK: The results indicate an overall profitable of 2.05%, with the largest profit of
76% recorded in August 2023, and the highest loss of -88.92% in May 2022.

Table 4.3.6 ICICI BANK

MONTHS YEAR 2022 YEAR 2023
JANUARY 21.35% ICICI
FEBRUARY -82.20% 150.00%
MARCH 24.83%
APRIL -32.29% 32.00% 100.00%
MAY 92.29% 26.83%
50.00%
JUNE 58.22% 19.72%
JULY -37.07% -28.89% 0.00%
AUGUST -44.22% -61.48% Y Y H IL AY NE LY ST R R R R
U AR UAR ARC APR M JU JU U B E OB E BE BE
SEPTEMBER 27.82% 52.22% -50.00% N BR M UG E M T E M E M
JA FE
A PT OC V
DE
C
OCTOBER -58.44% SE NO
NOVEMBER 24.00% -100.00%
DECEMBER 38.00% Series1 Series2
Figure 4.3.6-ICICI BANK

6. ICICI BANK: The results indicate an overall profitable of 5.02%, with the largest profit of
92.29% recorded in May 2023 and the highest loss of -81% in February 2023

Table 4.3.7 NIFTY 50

32
 MONTH MONTHS TATA YEAR 2022 BATA YEAR 2023GODREJ
AprilJANUARY 14.72% 3.49% 24.29% -5.81%
May FEBRUARY 9.53% -8.88% -37.74% 5.56%
JuneMARCH -0.13% 8.76% 121.37% -4.58%
July APRIL -8.89% -33.65% -9.82% -62.92% -9.55%
August -5.79% 18.76% 1.49%
MAY 267.12% 47.89%
September -0.95% 11.70% 12.87%
JUNE -62.09% -57.04%
March 5.13% -26.28% -9.26%
April JULY 2.27% 22.88% 10.20% 25.11% 1.53%
MayAUGUST 16.63% -47.44% -2.90% 28.20% 16.68%
SEPTEMBER
June 10.08% 33.02% -2.52% 93.65% 8.75%
JulyOCTOBER -6.85% 43.20% -3.35% -0.45%
August
NOVEMBER 10.52% -65.55% 3.22% -6.42%
September
DECEMBER -0.90% 14.21% 1.45% 11.02%

MONTHLY TREND SEASONILTY EFFECT

figure 4.3.7-
NIFTY 50
NIFTY 50
3
2.5
7.
2
1.5
1
0.5
0
Y RY L
-0.5 AR CH RI AY NE LY ST BE
R ER BE
R
BE
R
A AR AP M JU JU U B
NU B RU M UG EM CTO EM E M
-1JA FE
A PT O V
DE
C
SE NO

YEAR 2022 YEAR 2023

NIFTY 50: Overall profit was 15.88%, according to the results, with the highest profit of
267.12% occurring in May 2022 and the highest loss of -65.55% occurring in November
2022.

Table 4.3.8 FMCG

33
 FMCG
30.00%

20.00%

10.00%

0.00%
April May June July AugustSeptember March April May June July AugustSeptember
-10.00%

-20.00%

-30.00%

FMCG SECTOR TATA FMCG SECTOR BATA FMCG SECTOR GODREJ

Figure 4.3.8- FMCG SECTOR

One key conclusion from our analysis, which we believe is shown in the above able, is the selection
of months under each sector that show monthly trends and seasonality. The majority of the profit was
realized within the time risk range, according to this study.
MONTHS HDFC ICICI AXIS
April -0.34% 19.17% 1.22%
May 4.66% -12.68% 6.33%
June 0.69% 3.67% -0.70% Table 4.3.9
Banking July -8.32% -2.10% -5.48%
October -0.09% 9.59% -2.80%
January -3.90% 0.27% 13.64%
March -28.19% -4.19% 2.53%
May -5.01% 11.85% -5.10%
July -3.10% 34 7.66% 14.49%
August 8.76% 5.12% 3.51%

MONTHLY TREND SEASONILTY EFFECT

 BANKING
30.00%

20.00%

10.00%

0.00%
April May June July October January March May July Auguest
-10.00%

-20.00%

-30.00%

-40.00%

BANK SECTOR HDFC BANK SECTOR ICICI BANK SECTOR AXIS

Figure 4.3.9- BANKING SECTOR

In other words, T+3 where T is the investment date and 3 days. When these three days were not met,
it was found that the investor lost money in the majority of the situations. We therefore conclude that
timing risk is a key factor in options trading profit margin.

4.4 Statistical Analysis of The Study

4.4.1 CORRELATION

35
Service and Knowledge

 H0-(Null Hypothesis): There’s a relationship between Service and Knowledge.

 H1-(Alternative Hypothesis): There’s no relationship between Service and Knowledge.

Table 4.4.1 – Service and Knowlege

Correlation

service Knowledge

Spearman’s Correlation Coefficient 1.00 .4045*

Service Sig.(2-tailed) .005

N 100 100

Correlation Coefficient .4045* 1.00

Knowledge Sig.(2-tailed) 0.005

N 500 500

At 0.05 level, the correlation is significant to the study (2-tailed)

INTERPRETATION: “From above table, interpretation can be drawn such that Significance value
is 1.00 which is less than 0.05 and less than the critical value 5, so Null hypothesis is rejected, and
the other alternative hypothesis is accepted. Thus, there’s a relationship between Service &
Knowledge.
If the significant value (p-value) is less than or equal to the significance level (0.05), we deny the
null hypothesis (H0) in favor of alternative hypothesis (H1).

Service and Risk

36
  H0: There’s a relationship between Service and Risks

 H1: There’s no relationship between Service and Risks

Table 4.4.2 – Service and Risk

Correlation

Service Risk

Spearman’s Correlation Coefficient 1.00 .508*

Service Sig.(2-tailed) .002

N 100 100

Correlation Coefficient .508* 1.00

Risk Sig.(2-tailed) 0.002

N 500 500

At the 0.02 level, the correlation is significant (2-tailed)

INTERPRETATION: According to the table, the significance value is 1.00, which is less than the
critical value of 1 and less than 0.05. Thus, the alternative hypothesis was rejected. Consequently, a
there is relationship between the service and risk.

Service and Satisfaction

 H0: There’s no relationship between Service and Investors Satisfaction

37
  H1: There’s a relationship between Service and Investors Satisfaction

Correlation

Service Satisfactio
n

Spearman’s Correlation Coefficient 1.00 .808*

Service Sig.(2-tailed) 0.00

N 100 100

Correlation Coefficient .808* 1.00

Satisfaction Sig.(2-tailed) 0.00

N 100 100

At the 0.00 level, the correlation is significant (2-tailed)

Table 4.4.3 – Service and Satisfaction

INTERPRETATION: The significant value of 0.00 is associated with Spearman’s rank correlation
coefficient of 0.808 between Service and Satisfaction. We may reject the null hypothesis (H0) in
behalf of the alternative hypothesis (H1) since the p-value (0.00) is less than the widely accepted
significance level of 0.05.

4.4.2 CHI SQUARE

Knowledge and Service

38
  H0: There’s no relationship between Knowledge and Service

 H1: There’s a relationship between Knowledge and Service

Table 4.4.4 – Knowledge and Service

Chi-square df Fishers Exact Test Total

Service Pearson Sig 2 sided

Knowledge Strongly Agree 8.5 & 7.5 0.002 70

8.5 & 7.5 0.002 130
Total Agree 200

INTERPRETATION: It looks like a Fisher’s exact test or a chi- square test was used to evaluate
these possibilities. The outcomes demonstrate: 8.5 and 7.5, which are probably the actual and
predicted values respectively, for the chi-square value. A p- value of 0.002 (Sig 2- sided).

We may reject the null hypothesis (H0) and conclude that there is enough evidence to support the
alternative hypothesis (H1) because the p- value of 0.02 is less than the generally accepted
significance level of 0.5.

39
Risk and Service

 H0: There’s no relationship between the Risk and Service.

 H1: There’s a relationship between the Risk and Service.

Table 4.4.5 – Risk and Service

Chi-square df Fishers Exact Test Total

Service Pearson Sig 2 sided

Risk Strongly Agree 6.8 & 4.3 0.004 90

6.8 & 4.3 0.004 110
Total Agree 200

INTERPRETATION: It appears that a Fisher’s exact test appears to have been conducted. The
results show: A chi-square value of 6.8, which is probably the predicted value and the actual value,
respectively. A p-value of 0.004 (Sig 2-sided). We may reject the null hypothesis (H0) since the p-
value of 0.004 is less than the widely accepted significance level of 0.05, meaning that there is
enough data to back the alternative hypothesis (H1).

Satisfaction and Service

40
  H0: There’s no relationship between Satisfaction and Service

 H1: There’s a relationship between Satisfaction and Service

Table 4.4.6 – Satisfaction and Service

Chi-square df Fishers Exact Test Total

Service Pearson Sig 2 sided

Satisfaction Strongly Agree 8.2& 7.8 0.03 60

8.2 & 7.8 0.03 140
Total Agree 200

INTERPRETATION: According to the table, the null hypothesis was rejected and the alternative
hypothesis, with a chi-square value of 8.2, was accepted since the significance value was less than
0.5, or 0.003. This indicates that there is a correlation between investor satisfaction and service.

We can rule out the null hypothesis (H0) because the p-value of 0.03 smaller than the generally
accepted significance level of 0.05, and we can infer that the alternative hypothesis (H1) is
sufficiently supported by the available data.

4.4.3 ANOVA
Table 4.4.3 - ANOVA

Sum of the Squares df Mean F Sig

41
 Square
0.002
Between Groups 2.837 70 0.549 4.213
Service
Within Groups 56.202 130 0.118

Total 59.039 200

Knowledge 1.937 90 0.560 5.118 0.001

Between Groups
Within Groups 53.382 110 0.115

Total 55.319 200

Risk 2.837 60 0.549 4.312 0.002

Between Groups
Within Groups 53.879 140 0.118

Total 56.716 200

Satisfaction 1.786 120 0.568 4.213 0.002

Between Groups
Within Groups 52.657 80 0.114

Total 54.443 200

 The results indicate that there is a significant link between the independent variables, as
indicated by the high F value above the significance value.
 Service 4.213> 0.002, knowing 5.118>0.001, Hazards 4.213> 0.00, satisfaction of investors
4.213>0.002.
 Hence the null hypothesis was rejected, whereas the alternative case was accepted.

CHAPTER -5
SUGGESTIONS & CONCLUSION

5.1 Suggestions

42
 In contrast to how the real market operates, this research primarily considers technical
features of stock performance while holding all other factors constant. Therefore, we would
advise a more thorough investigation of options trading that is grounded on both fundamental
and technical research.

 Since our study only looks at two industries and one index, there may be need for more
research in this area, such as an investigation into portfolio diversification through options
trading.

 The analysis and interpretation of the data reveal that current investors in Hyderabad and
Warangal have a very good view of the stock market and are happy with their investments,
returns, brokers services.

 However, the market is not drawing in new investors because of a lack of resources.

 Risk of volatility, alertness, and dread of loss. As a result, the study concludes that systematic
awareness raising is necessary to persuade potential investors to undertake stock market
investments.

 Investment related options and practices vary from person to person. The several elements
that may motivate an individual to make investments in the stock market include risk-raking
capacity, current and future financial objectives, anticipated return, investor demands and
requirements, etc.

 The informal conversations with individual investors have led to the suggestion that the
portfolio information be included in the quarterly statement so that investors may get a sense
of how effective their investments is varied.

 Based on the current investigation, it was determined that the low return on the schemes was
caused by the found manager’s inadequate ability to take on risk, timing, stock selection, and
diversification. As a result, to boost the fund return the all of these abilities need to be
improved by concerned fund managers.

 Knowledge is Power, thus investors should be encouraged to keep learning about financial
concepts, investing methods, and the stock market. Understanding the market’s intricacies
and making educated judgments about it facilitates investors’ ability to traverse it more
skillfully.

 It is advised that investors who do not have the necessary time, interest, or experience to
manage their assets actively seek the advice of qualified financial adviser. For their clients,
43
 these exports may handle investment management and offer customized guidance.

5.2 CONCLUSION

 When an investor waits for options to mature, they typically miss out on the profit in the
options market. This study aims to address these disadvantages of option trading for smaller
investors with tight budgets.

 According to the study’s finding, a investor decision-making process in the options market is
significantly influenced by the following factors:

 Intrinsic value: Risk related to intrinsic value is absent since we are investing outside
of the money market.

 Value intrinsic is zero

 Time Risk: We assume timing risk without taking financial value risk into account,
waiting three days after the investment date to accomplish our profit margin.

 Volatility: If the profit margin is not reached within the time risk, we aske the
investors to maintain a financial risk circuit break, which is typically 30% but may be
depending on the investors’ capacity for risk.

 Investors are regarded as the foundation of the stock market and the Indian economy. Many
real and financial investment options exist, but Indian investors have a strong preference for
the stock market because of its ability to yield good returns quickly.

 According to the results, youthful stock market investors are extremely happy with their
investments, returns, knowledge level, access to current information, and intermediaries
assistance.

 This study aims to comprehend investors’ behaviour, awareness level, and investment
decisions in the stock market. It also includes a discussion with investors, a survey using
questions, and method to get further information from investors.

 From person to person, options and practices around investments frequently vary. Several
factors might influence an individual’s decision to participate in the future financial goals, the
expected return, their wants and requirements etc.

 Due to their expertise, awareness of the market, access to up-to-date information, and prompt

44
 assistance from intermediaries, stock market investors are quite satisfied. The results make it
abundantly evident that youthful stock market investors are quite happy with their
investments, returns, awareness level.

 Since there are relatively few investors in the stock market, the Indian govt and regulatory
bodies SEBI must devise innovative ways to leverage social media and modern technology to
increase the number of people who learn about the stock market.

 These strategies should also have to entertain in order to attract the youngest investors.

REFERENCES

1) National Stock Exchange: https://www.nseindia.com/

2) Yahoo website: https://www.yahoo.com/

45
3) Awais M, Laber F,et.al. Impact of Financial Literacy and Investment
Experience on Risk Tolerance and Investment Decisions: Empirical Evidence
from Pakistan, International Journal of Economics and Financial, vol.6.
(2016)pp. 73-79.
4) Boram Lee.et.al, “Stock market expectations and risk aversion of individual
investors”, International Review of Financial Analysis 40 (2015) 122–131
5) An empirical analysis of influential factors on investment behaviour of retail
investors’ in Indian stock market: a behavioural perspective” E. Vijaya 2014.
6) Analysis of Influencing Factors of Investor’s Perceptions on Indian Stock
Markets Dr.G.C. Venkataiah, M. Naidu, Dr.M. Paparao Revista Gestão
Inovação e Tecnologias 2021
7) International Journal of Business and Management Invention (IJBMI) ISSN
(Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 8
Issue 01 Ver. V || January 2019 || PP 18-29
8) Dr. N.S.V.N Raju, Dr. Anita Patra: An Analysis on Investor’s Perception
towards Investment Decision with reference to Indian Scenario (Andhra
Pradesh) -- Palarch’s Journal Of Archaeology Of Egypt/Egyptology 17(9).
ISSN 1567-214x
9) GaganKukreja (2012), Investors’ Perception for Stock Market: Evidences from
National Capital Region of India, Interdisciplinary Journal of Contemporary
Research in Business, December 2012 VOL 4, NO 8, 712-726.
10) Renuka (2017), A Study on Investors Attitudes towards Stock Market
Investment, International Journal Of Advancement In Engineering Technology,
Management and Applied Science (IJAETMAS), Jan-2017, Volume 04 - Issue
01, PP. 118-126.
11) Bоdа, J. R., & аmр; Sunithа, G. (2018). Investоr‟s рsyсhоlоgy in
investment deсisiоn mаking: А behаviоrаl finаnсe аррrоасh. Internаtiоnаl
Jоurnаl оf Рure аnd Аррlied Mаthemаtiсs, 119(7), 1253-1261.
12) International Journal of Science and Research (IJSR) ISSN: 2319-7064
SJIF (2019): 7.583.

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47