Business Type
Speculative Non Speculative
Where to Invest
Fixed Income
Real Estate
Commodity
Stock Market
Why Stock Market as a Career ?
What is Stock Market ?
Just like the way we go to the
neighborhood kirana store or
a super market to shop for our
daily needs
Similarly we go to
the stock market to shop Shares.
Source of income in
Stock Market based on Products
Mutual Fund
SIP
Exchange Traded Fund (ETF)
IPO Investing
Dividend
Capital Gain
Speculative Income
Source of income in
Stock Market based on Time Frame
Long Term
Shot Term
Swing Trading
Intraday Trading
Scalping
Source of income in
Stock Market based on Segments
Equity (Cash Market)
Derivative (Future & Option)
Currency
Commodity
Source of income in
Stock Market based on Market Cap
Large Cap
Mid Cap
Small Cap
Basic terms of
stock market ?
Stock Market Participants
FII - Foreign Institutional Investors
DII - Domestic Institutional Investors
DRP - Domestic Retail Participants
SEBI
The Securities and Exchange
board of India
(SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992)
CRA - Credit Rating Agency
CRISIL- Credit Rating Information Services of India Limited
ICRA - Investment Information and Credit Rating Agency
CARE - Credit Analysis and Research Limited
NSE
National stock exchange
NSE was incorporated in 1992. It was recognized as a stock exchange by SEBI in April 1993
and commenced operations in 1994
BSE
Bombey stock exchange
BSE, the first ever stock exchange in Asia established in 1875 and the first in the country to
be granted permanent recognition under the Securities Contract Regulation Act, 1956
Depositories
NSDL- National Securities Depository Limited
CDSL - Central Depository Services (India) Limited
What do we need to trade in
the stock market
Bank Account
Trading Account
Demate Account
(Dematerialization account)
How the trade is executed in
Stock Market
AMC - Asset Management Companies
1. SBI Mutual Fund
2. ICICI Prudential Mutual Fund
3. HDFC Mutual Fund
4. Nippon India Mutual Fund
5. Kotak Mahindra Mutual Fund
6. Aditya Birla Sun Life Mutual Fund
7. Axis Mutual Fund
8. UTI Mutual Fund
9. IDFC Mutual Fund
10. DSP Mutual Fund
Stock Brokers/Sub Brokers
Act as a intermediary between an investor and the stock exchange
Zerodha
Groww
Angel One
Upstox
ICICIdirect
HDFC Securities
Kotak Securities
Motilal Oswal
Sharekhan
5paisa
Market Capitalization - It simply means the value of a company according to the stock
market. That is the current value of all the shares of a company put together.
Spread - This is the difference between the bid and the ask prices of a stock
Bid & Ask/Offer
Corporate Action
Dividend
Bonus Issue
Stock Split
Right Issue
IPO- Initial Public Offer
OFS – Offer for Sell
FPO – Follow on Public Offer
Buy Back
Type of Order
Intraday Delivery
Market Order Limit Order
Cover Order Bracket Order
Stop loss Buy Order Stop loss Sell Order
IOC Order GTT Order
Circuit limits or Price bands
Circuit limits, or price bands, are safeguards set by the exchange to prevent large
movements in the price of stocks in a very short time. When the price of an instrument
hits the upper or lower circuit limit set by the exchange, orders will remain pending at that
circuit price for that particular stock or contract( EQ, FNO, CDS or MCX).
The price band determines the price range within which the stock can be traded for that
day. The circuit limits, which range from 2%, 5%, 10% and 20%, depend on the liquidity,
volume, and category of the stocks.
Short Selling
Index
Sectorial Index
Type Of Chart
Line Chart
Candlestick Chart
Volume
Volume in the stock market means the total number of shares traded in a specified
time frame. This would include every share that is bought and sold during the time
period in review. Say, 100 stocks of a company were purchased and sold again, in
one trading day, the trading volume for that stock will be 200
Relation between Price & Volume
Sl No Price Volume What is the expectation?
01 Increases Increases Bullish
02 Increases Decreases Caution – weak hands buying
03 Decreases Increases Bearish
04 Decreases Decreases Caution – weak hands selling
Delivery
Delivery trading is a type of trading in which traders buy shares and keep them
for a long time. This period can last for two days, a week, a month, or a year. In
this way of trading, there is no time limit on when the shares can be sold.
Block deal v/s Bulk deal
Block deals and bulk deals are two kinds of market transactions used by institutional investors,
large funds, and HNIs to transact large volumes in the stock market.
Each has its own set of features and advantages. Whereas bulk deals are visible to everyone as
they are transacted during regular market hours, block deals are transacted in a special trading
window
Block deal
A block deal is defined as a single trade in which shares greater than 5,00,000 in number or more than Rs. 10 crores in
value are traded.
Block deals are executed during a special trading window called the block deal window. Since block deals in the share
market happen during a separate trading window they are not visible to the retail investor. Block deals also do not show
up on the volume charts in trading platforms.
Block deals may not be executed during normal trading hours but only during a special trading window known as the
block deal window. This trading window operates in two shifts of 15 minutes each:
– Morning trading window from 8:45 AM to 9:00 AM.
– Afternoon trading window from 2:05 PM to 2:20 PM
2. Block deals are transacted in accordance with a Block Reference Price. Orders can be placed only with 1% ( + or -) of
the Block Reference Price. The Block Reference Price is calculated differently for each of the two trading windows. For
the morning trading window, it is the previous day’s closing price. For the afternoon trading window, it is the volume-
weighted average price of the stock concerned between 1:45 to 2:00 PM.
3. Unmatched orders in block deals are cancelled and not carried forward into the next trading window. This means that
if a block deal order placed in the morning window could not be matched, it is cancelled, and is not carried forward into
the afternoon trading window.
Bulk deals
Bulk deals are defined as a transaction involving at least 0.5% of the total listed shares of a
company.
Unlike block deals, bulk deals happen during normal trading hours and are visible to all market
participants. They show up on the volume charts in trading platforms and dynamically influence
stock prices in real-time.
The Impact of Bulk deals and Block deals on Prices
Bulk and block deals can be indicative of interest building up or waning in a particular stock.
However, these signals need to be processed meticulously and matched with other trends
and indicators to arrive at a trading decision. Mere execution of a bulk order does not
necessarily mean that a particular stock is likely to move in the direction of the bulk trade.
However, repeated bulk transactions in a particular direction – whether buy or sell – may be
indicative of interest in the stock in the direction of the bulk trade.
ETF (Exchange Traded Fund)
Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges
like stocks. Until the development of ETFs, this was not possible before. An ETF is a basket
of stocks that reflects the composition of an Index, like S&P CNX Nifty or BSE Sensex. The
ETFs trading value is based on the net asset value of the underlying stocks that it
represents.
