A

PROJECT REPORT

ON

“INVESTOR PREFERENCE ON TRADING IN EQUITY MARKET”

Submitted to

SARDAR PATEL COLLEGE OF ADMINISTRATION &MANAGEMENT (SPCAM –

MBA)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

IN

Gujarat Technological University

UNDER THE GUIDANCE OF

Faculty Guide Company Guide

NAITIK RAIMI SONAL SHAH

Professor Assistant Manager Sales

Submitted by

(Karan rajendrabhai Patel)

Enrollment No: 157550592050

M.B.A – SEMESTER III

SARDAR PATEL COLLEGE OF ADMINISTRATION &MANAGEMENT (SPCAM –

MBA)

M.B.A PROGRAMME

Affiliated to Gujarat Technological University

Ahmadabad

July 2016

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GUJARAT TECHNOLOGICAL UNIVERSITY Sardar Patel College of Administration & Management (SPCAM-MBA)Approved by All India Council for Technical Education (AICTE), New DelhiAFFILIATED WITH GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD

SPEC Campus, Vidhyanagar-Vadtal Road Bakrol-388315, Anand (Gujarat)

Certificate

This is to certify that Mr. /Ms. “karan r. patel” a student of MBA: 2013-15 batch of Sardar Patel College of Administration and Management (SPCAM-MBA), SPEC Campus-Bakrol, Anand has Undergone the Summer Internship Training from “01/06/2016” to “25/07/2016” at “SHAREKHAN (VV NAGAR BRANCH ANAND)”.

he has prepared detailed project report on “INVESTOR PREFERENCE ON TRADING IN EQUITY MARKET”. The data and information used by “KARAN R. PATEL” has been used exclusively for the purpose of Two years full time Master of Business Administration (MBA) program of Gujarat Technological University-Ahmadabad.

Faculty Guide Dr. Vashisthadhar Dwivedi Naitik raimi Director GeneralAsso. Professor SPCAM-MBA

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DECLARATION

I Karan Patel hereby declare that the project report entitled “sharekhan” being submitted to GUJARAT TECHNOLOGICAL UNIVERSITY- AHMADABAD is my own piece of work and it has not been submitted to any other institute or published at any time before.

Date: karan patel

Place: V.V.NAGAR

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PREFACE

For a management student training plays an important role during his/her study. Training provides a corporate or real world platform to learn practically. MBA degree without any training or corporate world experience is just like life without oxygen. So industrial training provides a great learning experience about management concepts and its applications.

This training provides us an opportunity to know the current market. To know the current market situations, prevailing competitions, behavioral environment of different people etc. It provides us a platform whereby we can apply our theoretical knowledge and we can solve many practical problems. And hence it can help us to be a successful manager in future. Thanks to all those who directly or indirectly help me to complete this project within a short time limit. For preparation of this report I would like to thanks to faculty members of our college and staff members of SHARE KHAN LTD entire v.v nagar branch.

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ACKNOWLEDGEMENTThere is a fact that few people in this world is 100% perfect know about share market and in order to gain some knowledge about share market in itself an individual surely needs a helping hand. The same was with me with respect to the project that I was undergoing during this session of 55days. As I too was illiterate with this research topic that I selected for my research at the initial stages, I got acquainted with it slowly and steadily through efforts and surely from various intelligent and helpful personalities. I would like to extend my heartily thanks to all of them through this acknowledgement.

I am also thankful to sonal shah( Assistant manager sales) of Sharekhan Ltd., V.v nagar branch anand for giving me an opportunity for getting in valuable experience in such reputed organization and giving actual training and the required knowledge & guidance in completing this training successfully. .

Finally, I would like to record my special thanks to my parents, friends, and colleagues help me directly or indirectly in preparation of project work.

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INDEX

NUMBER Particular Page no.1 Back ground of the project 11 to 292 a)Share market

b)stock firm in india30 to 34 35

3 Company Study 36 t0 394 Detail of Marketing, Finance, HR & operation

department of the company 41 to 58

5 Research Work Introduction of the Study 5.1 Literature Review 5.2 Rational of the Study5.3 objective of the study5.4 Hypothesis

60 to61

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6 Research Methodology 6.1 Research Design 6.2 Sources of Data 6.3 Data Collection Method 6.4 Population 6.5 Sampling Method 6.6 Date Collection Instrument 6.7 Limitation of the Study

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7 Data analysis & Interpretation 64 to 698 Hypothesis Testing 70 to 7110 Findings & Suggestions 72 to 7311 Conclusion 74

Bibliography 75

Annexure (questionnaire)

76to 77

1)EXECUTIVE SUMMARY

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Conceptually the mechanism of stock market is very simple. People who are exposed to the same risk come together and agree that if anyone of the person suffers a loss the other will share the loss and make good to the person who lost. We also here observe the Customer’s Perception trading in equity and its .The Initial part of the project focuses on the sales of types of the products of the company, and also focuses on the acquisition of the customer. The job profile is to create customer, making good relationship with them to have references and motivating to trade for the company benefit and their profit.It also enlightens the strategies to acquire the customer base. Further the project tells us about the profile of the company (SHAREKHAN). It provides knowledge about the company’s history, mission, vision and customer base and about the company in detail and management of the company. Also it gives special emphasis on the selling of products and management of the company.This is devoted to study the comparative analysis of the competitors and the SWOT analysis, which tells about the Sharekhan edge over its competitors. This project leads us towards the job descriptions and difficulties faced by me. The project throws light upon my finding and analysis about the company and the suggestions for the company for better performance.This project will help the people in getting lot of their answers related to investment options and the ways to analysis the market. The data in the project can also help the company in making the strategy for potential investor’s.

Introduction about topic

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Equity equity is a share in the ownership of a company. Equity represents a claim on the company's assets and earnings. As you acquire more equity, your ownership stake in the company becomes greater. Whether you say shares, equity, it all means the same thing.

Being an Owner

Holding a company's equity means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (albeit usually very small) to everything the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the equity.

A stock is represented by a stock certificate. This is a piece of paper that is proof of your ownership. Today its in dematerialized form i.e. in electronic form shares have been kept safe. This is done to make the shares easier to trade. In the past, when a person wanted to sell his or her shares, that person physically took the certificates down to the brokerage. Now, trading with a click of the mouse or a phone call makes life easier for everybody.

Being a shareholder of a public company does not mean you have a say in the day-to-day running of the business. Instead, one vote per share to elect the board of directors at annual meetings is the extent to which you have a say in the company. For instance, being a Reliance shareholder doesn't mean you can call up Mukesh Ambani and tell him how you think the company should be run.

The management of the company is supposed to increase the value of the firm for shareholders. If this doesn't happen, the shareholders can vote to have the management removed, at least in theory. In reality, individual investors like you and I don't own enough shares to have a material influence on the company.

Debt vs. Equity

Why does a company issue stock? Why would the founders share the profits with thousands of people when they could keep profits to themselves? The reason is that at some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock. A company can borrow by taking a loan from a bank or by issuing bonds. Both methods fit under the umbrella of debt financing. On the other hand, issuing stock is called equity financing. Issuing stock is advantageous for the company because it does not require the company to pay back the money or make interest payments along the way. All that the shareholders get in return for their money is the hope that the shares will someday be worth more than what they paid for them. The first sale of a stock, which is issued by the private company itself, is called the initial public offering (IPO).

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It is important that you understand the distinction between a company financing through debt and financing through equity. When you buy a debt investment such as a bond, you are guaranteed the return of your money (the principal) along with promised interest payments. This isn't the case with an equity investment. By becoming an owner, you assume the risk of the company not being successful - just as a small business owner isn't guaranteed a return, neither is a shareholder. As an owner, your claim on assets is less than that of creditors. This means that if a company goes bankrupt and liquidates, you, as a shareholder, don't get any money until the banks and bondholders have been paid out; we call this absolute priority. Shareholders earn a lot if a company is successful, but they also stand to lose their entire investment if the company isn't successful.

Risk It must be emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not. And there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends, an investor can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing. Although risk might sound all negative, there is also a bright side. Taking on greater risk demands a greater return on your investment. This is the reason why stocks have historically outperformed other investments such as bonds or savings accounts. Over the long term, an investment in stocks has historically had an average return of around 10-12%.

Different types of Stocks1. Common Stock2. Preferred Stock1) Common Stock

Common stock is, well, common. When people talk about stocks they are usually referring to this type. In fact, the majority of stock is issued is in this form. We basically went over features of common stock in the last section. Common shares represent ownership in a company and a claim (dividends) on a portion of profits. Investors get one vote per share to elect the board members, who oversee the major decisions made by management. Over the long term, common stock, by means of capital growth, yields higher returns than almost every other investment. This higher return comes at a cost since common stocks entail the most risk. If a company goes bankrupt and liquidates, the common shareholders will not receive money until the creditors, bondholders and preferred shareholders are paid.

2) Preferred Stock Preferred stock represents some degree of ownership in a company but usually doesn't come with the same voting rights. (This may vary depending on the company.) With preferred shares, investors are usually guaranteed a fixed dividend forever. This is different than common stock, which has variable dividends that are never guaranteed. Another advantage is that in the event of liquidation, preferred shareholders are paid off before the common shareholder (but still after debt holders). Preferred stock may also be callable, meaning that the company has the option to purchase the shares from shareholders at anytime for any reason (usually for a premium). Some people consider preferred stock to be more like debt

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than equity. A good way to think of these kinds of shares is to see them as being in between bonds and common shares. How do Stock Price Change

Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own ideas and strategies. That being said, the principal theory is that the price movement of a stock indicates what investors feel a company is worth. Don't equate a company's value with the stock price. The value of a company is its market capitalization, which is the stock price multiplied by the number of shares outstanding. For example, a company that trades at Rs 100 per share and has 1 million shares outstanding has a lesser value than a company that trades at Rs 50 that has 5 million shares outstanding (Rs 100 x 1 million = Rs 100 million while Rs 50 x 5 million = Rs 250 million). To further complicate things, the price of a stock doesn't only reflect a company's current value, it also reflects the growth that investors expect in the future.

The important things to grasp about this subject are the following: 1. At the most fundamental level, supply and demand in the market determines stock price. 2. Price times the number of shares outstanding (market capitalization) is the value of a company. Comparing just the share price of two companies is meaningless. 3. Theoretically, earnings are what affect investors' valuation of a company, but there are other indicators that investors use to predict stock price. Remember, it is investors' sentiments, attitudes and expectations that ultimately affect stock prices. 4. There are many theories that try to explain the way stock prices move the way they do. Unfortunately, there is no one theory that can explain everything.

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How to Read a Stock/ QuoteA stock quote will look like something be

Stock Symbol - This is the unique alphabetic name which identifies the stock. If you watch financial TV, you have seen the ticker tape move across the screen, quoting the latest prices alongside this symbol. If you are looking for stock quotes online, you always search for a company by the ticker symbol. In above stock quote it’s Relcapital 52-Week High and Low - These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day's trading.

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Security Name & Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares. For example, "eq" means the shares are equity. Total Traded Quantity - This figure shows the total number of shares traded for the day.Its the volume for the day. Day High and Low - This indicates the price range at which the stock has traded at throughout the day. In other words, these are the maximum and the minimum prices that people have paid for the stock. Close - The close is the last trading price recorded when the market closed on the day. Keep in mind, you are not guaranteed to get this price if you buy the stock the next day because the price is constantly changing (even after the exchange is closed for the day). The close is merely an indicator of past performance and except in extreme circumstances serves as a ballpark of what you should expect to pay. Net Change - This is the rupee value change in the stock price from the previous day's closing price. When you hear about a stock being "up for the day," it means the net change was positive. Order Book – On the right hand side you see “Buy Qty”, “Buy Price”. This shows the top 5 bid and asks figures at which the security is trading. This basically shows the demands and supply of a particular stock. Its actually shows the market breadth which will give you the number of buyers and sellers.

Bulls & Bears The Bulls A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising. Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook".

The Bears A bear market is when the econo my is bad, recession is looming and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook".

After knowing about the stock basics. Let’s discuss now about the company research analysis which can help you in deciding which particular stocks to choose.

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Types of Research

Fundamental Analysis: Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't really investing if you aren't performing fundamental analysis. Because the subject is so broad, however, it's tough to know where to start. There are an endless number of investment strategies that are very different from each other, yet almost all use the fundamentals.

The biggest part of fundamental analysis involves delving into the financial statements. Also known as quantitative analysis, this involves looking at revenue, expenses, assets, liabilities and all the other financial aspects of a company. Fundamental analysts look at this information to gain insight on a company's future performance. A good part of this tutorial will be spent learning about the balance sheet, income statement, cash flow statement and how they all fit together.Basics When talking about stocks, fundamental analysis is a technique that attempts to determine a security’s value by focusing on underlying factors that affect a company's actual business and its future prospects. On a broader scope, you can perform fundamental analysis on industries or the economy as a whole. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements. Fundamental analysis serves to answer questions, such as:

Is the company’s revenue growing?

Is it actually making a profit?

Is it in a strong-enough position to beat out its competitors in the future?

Is it able to repay its debts?

Note: The term fundamental analysis is used most often in the context of stocks, but you can perform fundamental analysis on any security, from a bond to a derivative. As long as you look at the economic fundamentals, you are doing fundamental analysis. For the purpose of this tutorial, fundamental analysis always is referred to in the context of stocks.

Fundamentals: Quantitative and Qualitative You could define fundamental analysis as “researching the fundamentals”, but that doesn’t tell you a whole lot unless you know what fundamentals are. As we mentioned in the introduction, the big problem with defining fundamentals is that it can include anything related to the economic well-being of a company. Obvious items include things like revenue

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and profit, but fundamentals also include everything from a company’s market share to the quality of its management. The various fundamental factors can be grouped into two categories: quantitative and qualitative. The financial meaning of these terms isn’t all that different from their regular definitions. Here is how the MSN Encarta dictionary defines the terms:

Quantitative – capable of being measured or expressed in numerical terms.

Qualitative – related to or based on the quality or character of something, often as opposed to its size or quantity.

In our context, quantitative fundamentals are numeric, measurable characteristics about a business. It’s easy to see how the biggest source of quantitative data is the financial statements. You can measure revenue, profit, assets and more with great precision.

Turning to qualitative fundamentals, these are the less tangible factors surrounding a business - things such as the quality of a company’s board members and key executives, its brand-name recognition, patents or proprietary technology.

Quantitative Meets Qualitative

Neither qualitative nor quantitative analysis is inherently better than the other. Instead, many analysts consider qualitative factors in conjunction with the hard, quantitative factors. Take the Coca-Cola Company, for example. When examining its stock, an analyst might look at the stock’s annual dividend payout, earnings per share, P/E ratio and many other quantitative factors. However, no analysis of Coca-Cola would be complete without taking into account its brand recognition. Anybody can start a company that sells sugar and water, but few companies on earth are recognized by billions of people. It’s tough to put your finger on exactly what the Coke brand is worth, but you can be sure that it’s an essential ingredient contributing to the company’s ongoing success.

The Concept of Intrinsic Value Before we get any further, we have to address the subject of intrinsic value. One of the primary assumptions of fundamental analysis is that the price on the stock market does not fully reflect a stock’s “real” value. After all, why would you be doing price analysis if the stock market were always correct? In financial jargon, this true value is known as the intrinsic value. For example, let’s say that a company’s stock was trading at Rs 20. After doing extensive homework on the company, you determine that it really is worth Rs 25. In other words, you determine the intrinsic value of the firm to be Rs 25. This is clearly relevant because an investor wants to buy stocks that are trading at prices significantly below their estimated intrinsic value. This leads us to one of the second major assumptions of fundamental analysis: in the long run, the stock market will reflect the fundamentals. There is no point in buying a stock based on intrinsic value if the price never reflected that value. Nobody knows how long

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“the long run” really is. It could be days or years. This is what fundamental analysis is all about. By focusing on a particular business, an investor can estimate the intrinsic value of a firm and thus find opportunities where he or she can buy at a discount. If all goes well, the investment will pay off over time as the market catches up to the fundamentals.

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Technical Analysis: Technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor. Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Just as there are many investment styles on the fundamental side, there are also many different types of technical traders. Some rely on chart patterns, others use technical indicators and oscillators, and most use some combination of the two. In any case, technical analysts' exclusive use of historical price and volume data is what separates them from their fundamental counterparts. Unlike fundamental analysts, technical analysts don't care whether a stock is undervalued - the only thing that matters is a security's past trading data and what information this data can provide about where the security might move in the future. The field of technical analysis is based on three assumptions:

1. The market discounts everything. 2. Price moves in trends. 3. History tends to repeat itself.

1. The Market Discounts Everything A major criticism of technical analysis is that it only considers price movement, ignoring

the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company - including fundamental factors. Technical analysts believe that the company's fundamentals, along with broader economic factors and market psychology, are all priced into the stock, removing the need to actually consider these factors separately. This only leaves the analysis of price movement, which technical theory views as a product of the supply and demand for a particular stock in the market.

2)Price Moves in Trends In technical analysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption.

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3. History Tends To Repeat Itself Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze market movements and understand trends. Although many of these charts have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves.A More Formal Definition Unfortunately, trends are not always easy to see. In other words, defining a trend goes well beyond the obvious. In any given chart, you will probably notice that prices do not tend to move in a straight line in any direction, but rather in a series of highs and lows. In technical analysis, it is the movement of the highs and lows that constitutes a trend. For example, an uptrend is classified as a series of higher highs and higher lows, while a downtrend is one of lower lows and lower highs.

Figure 1 is an example of an uptrend. Point 2 in the chart is the first high, which is determined after the price falls from this point. Point 3 is the low that is established as the price falls from the high. For this to remain an uptrend, each successive low must not fall below the previous lowest point or the trend is deemed a reversal.

Types of Trend There are three types of trend:

1) Uptrend

2) Downtrends

3) Sideways/Horizontal Trends

As the names imply, when each successive peak and trough is higher, it's referred to as an upward trend. If the peaks and troughs are getting lower, it's a downtrend. When there is little movement up or down in the peaks and troughs, it's a sideways or horizontal trend. If you want to get really technical, you might even say that a sideways trend is actually not a trend on its own, but a lack of a well-defined trend in either direction. In any case, the market can really only trend in these three ways: up, down or nowhere.

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Trend Lengths Along with these three trend directions, there are three trend classifications. A trend of any direction can be classified as a long-term trend, intermediate trend or a short-term trend. In terms of the stock market, a major trend is generally categorized as one lasting longer than a year. An intermediate trend is considered to last between one and three months and a near-term trend is anything less than a month. A long-term trend is composed of several intermediate trends, which often move against the direction of the major trend. If the major trend is upward and there is a downward correction in price movement followed by a continuation of the uptrend, the correction is considered to be an intermediate trend. The short-term trends are components of both major and intermediate trends. Take a look a Figure 2 to get a sense of how these three trend lengths might look.

When analyzing trends, it is important that the chart is constructed to best reflect the type of trend being analyzed. To help identify long-term trends, weekly charts or daily charts spanning a five-year period are used by chartists to get a better idea of the long-term trend. Daily data charts are best used when analyzing both intermediate and short-term trends. It is also important to remember that the longer the trend, the more important it is; for example, a one-month trend is not as significant as a five-year trend.

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Trendlines

Trendline is a simple charting technique that adds a line to a chart to represent the trend in the market or a stock. Drawing a trendline is as simple as drawing a straight line that follows a general trend. These lines are used to clearly show the trend and are also used in the identification of trend reversals.

As you can see in Figure 3, an upward trendline is drawn at the lows of an upward trend. This line represents the support the stock has every time it moves from a high to a low. Notice how the price is propped up by this support. This type of trendline helps traders to anticipate the point at which a stock's price will begin moving upwards again. Similarly, a downward trendline is drawn at the highs of the downward trend. This line represents the resistance level that a stock faces every time the price moves from a low to a high.

Channels A channel, or channel lines, is the addition of two parallel trendlines that act as strong areas of support and resistance. The upper trendline connects a series of highs, while the lower trendline connects a series of lows. A channel can slope upward, downward or sideways but, regardless of the direction, the interpretation remains the same. Traders will expect a given security to trade between the two levels of support and resistance until it breaks beyond one of the levels, in which case traders can expect a sharp move in the direction of the break. Along with clearly displaying the trend, channels are mainly used to illustrate important areas of support and resistance.

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Figure 4 illustrates a descending channel on a stock chart; the upper trendline has been placed on the highs and the lower trendline is on the lows. The price has bounced off of these lines several times, and has remained range-bound for several months. As long as the price does not fall below the lower line or move beyond the upper resistance, the range-bound downtrend is expected to continue.

The Importance of TrendIt is important to be able to understand and identify trends so that you can trade with rather than against them. Two important sayings in technical analysis are "the trend is your friend" and "don't buck the trend," illustrating how important trend analysis is for technical traders.

Chart TypesLine Chart The most basic of the four charts is the line chart because it represents only the closing prices over a set period of time. The line is formed by connecting the closing prices over the time frame. Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices. However, the closing price is often considered to be the most important price in stock data compared to the high and low for the day and this is why it is the only value used in line charts.

Bar Charts The bar chart expands on the line chart by adding several more key pieces of information to each data point. The chart is made up of a series of vertical lines that represent each data point. This vertical line represents the high and low for the trading period, along with the closing price. The close and open are represented on the vertical line by a horizontal dash. The opening price on a bar chart is illustrated by the dash that is located on the left side of the vertical bar. Conversely, the close is represented by the dash on the right. Generally, if the left dash (open) is lower than the right dash (close) then the bar will be shaded black, representing an up period for the stock, which means it has gained value. A bar that is colored red signals that the stock has gone down in value over that period. When this is the case, the dash on the right (close) is lower than the dash on the left (open).

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Candlestick Charts The candlestick chart is similar to a bar chart, but it differs in the way that it is visually constructed. Similar to the bar chart, the candlestick also has a thin vertical line showing the period's trading range. The difference comes in the formation of a wide bar on the vertical line, which illustrates the difference between the open and close. And, like bar charts, candlesticks also rely heavily on the use of colors to explain what has happened during the trading period. A major problem with the candlestick color configuration, however, is that different sites use different standards; therefore, it is important to understand the candlestick configuration used at the chart site you are working with. There are two color constructs for days up and one for days that the price falls. When the price of the stock is up and closes above the opening trade, the candlestick will usually be white or clear. If the stock has traded down for the period, then the candlestick will usually be red or black, depending on the site. If the stock's price has closed above the previous day’s close but below the day's open, the candlestick will be black or filled with the color that is used to indicate an up day

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Point and Figure Charts The point and figure chart is not well known or used by the average investor but it has had a long history of use dating back to the first technical traders. This type of chart reflects price movements and is not as concerned about time and volume in the formulation of the points. The point and figure chart removes the noise, or insignificant price movements, in the stock, which can distort traders' views of the price trends. These types of charts also try to neutralize the skewing effect that time has on chart analysis.

When first looking at a point and figure chart, you will notice a series of Xs and Os. The Xs represent upward price trends and the Os represent downward price trends. There are also numbers and letters in the chart; these represent months, and give investors an idea of the date. Each box on the chart represents the price scale, which adjusts depending on the price of the stock: the higher the stock's price the more each box represents. On most charts where the price is between $20 and $100, a box represents $1, or 1 point for the stock. The other critical point of a point and figure chart is the reversal criteria. This is usually set at three but it can also be set according to the chartist's discretion. The reversal criteria set how much the price has to move away from the high or low in the price trend to create a new trend or, in other words, how much the price has to move in order for a column of Xs to become a column of Os, or vice versa. When the price trend has moved from one trend to another, it shifts to the right, signaling a trend change

Conclusion Charts are one of the most fundamental aspects of technical analysis. It is important that you clearly understand what is being shown on a chart and the information that it provides. Now that we have an idea of how charts are constructed, we can move on to the different types of chart patterns.

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Indicators & OscillatorsThere are two main types of indicators: leading and lagging. A leading indicator precedes price movements, giving them a predictive quality, while a lagging indicator is a confirmation tool because it follows price movement. A leading indicator is thought to be the strongest during periods of sideways or non-trending trading ranges, while the lagging indicators are still useful during trending periods.

There are also two types of indicator constructions: those that fall in a bounded range and those that do not. The ones that are bound within a range are called oscillators - these are the most common type of indicators. Oscillator indicators have a range, for example between zero and 100, and signal periods where the security is overbought (near 100) or oversold (near zero). Non-bounded indicators still form buy and sell signals along with displaying strength or weakness, but they vary in the way they do this.

The two main ways that indicators are used to form buy and sell signals in technical analysis is through crossovers and divergence. Crossovers are the most popular and are reflected when either the price moves through the moving average, or when two different moving averages cross over each other. The second way indicators are used is through divergence, which happens when the direction of the price trend and the direction of the indicator trend are moving in the opposite direction. This signals to indicator users that the direction of the price trend is weakening.Indicators that are used in technical analysis provide an extremely useful source of additional information. These indicators help identify momentum, trends, volatility and various other aspects in a security to aid in the technical analysis of trends. It is important to note that while some traders use a single indicator solely for buy and sell signals, they are best used in conjunction with price movement, chart patterns and other indicators.

Accumulation/Distribution Line The accumulation /distribution line is one of the more popular volume indicators that measures money flows in a security. This indicator attempts to measure the ratio of buying to selling by comparing the price movement of a period to the volume of that period.

Calculated: = ((Close - Low) - (High - Close)) / (High - Low) * Period's Volume

Aroon Oscillator An expansion of the Aroon is the Aroon oscillator, which simply plots the difference between the Aroon up and down lines by subtracting the two lines. This line is then plotted between a range of -100 and 100. The centerline at zero in the oscillator is considered to be a major signal line determining the trend. The higher the value of the oscillator from the centerline point, the more upward strength there is in the security; the lower the oscillator's value is from the centerline, the more downward pressure. A trend reversal is signaled when the oscillator crosses through the centerline. For example, when the oscillator goes from positive to negative, a downward trend is confirmed. Divergence is also used in the oscillator to

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predict trend reversals. A reversal warning is formed when the oscillator and the price trend are moving in an opposite direction.

The Aroon lines and Aroon oscillators are fairly simple concepts to understand but yield powerful information about trends. This is another great indicator to add to any technical trader's arsenal.

Moving Average Convergence

The moving average convergence divergence (MACD) is one of the most well known and used indicators in technical analysis. This indicator is comprised of two exponential moving averages, which help to measure momentum in the security. The MACD is simply the difference between these two moving averages plotted against a centerline. The centerline is the point at which the two moving averages are equal. Along with the MACD and the centerline, an exponential moving average of the MACD itself is plotted on the chart. The idea behind this momentum indicator is to measure short-term momentum compared to longer term momentum to help signal the current direction of momentum.

MACD= shorter term moving average - longer term moving average

When the MACD is positive, it signals that the shorter term moving average is above the longer term moving average and suggests upward momentum. The opposite holds true when the MACD is negative - this signals that the shorter term is below the longer and suggest downward momentum. When the MACD line crosses over the centerline, it signals a crossing in the moving averages. The most common moving average values used in the calculation are the 26-day and 12-day exponential moving averages. The signal line is commonly created by using a nine-day exponential moving average of the MACD values. These values can be adjusted to meet the needs of the technician and the security. For more volatile securities, shorter term averages are used while less volatile securities should have longer averages.

Another aspect to the MACD indicator that is often found on charts is the MACD histogram. The histogram is plotted on the centerline and represented by bars. Each bar is the difference between the MACD and the signal line or, in most cases, the nine-day exponential moving average. The higher the bars are in either direction, the more momentum behind the direction in which the bars point.

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GENERAL INFORMATION2(a)HISTORY OF STOCK MARKET1850 – Shares of banks and securities of east India Company traded in Mumbai under a sprawling banyan tree in front of town hall, which is now in the Hanuman Circle Park.1875 – Brokers organized an association known as the native share brokers association, and the country’s first stock exchange the Bombay Stock Exchange (BSE), set up in Mumbai with 318 members. The membership fee gradually increased from Re1 in 1887 to Rs1,000 in 1896, and Rs 48,000 in 1920.1956 – Securities Contract Regulation Act passed.1957 – The BSE and eight other stock exchange registered under the Securities Trading Contract Act. 1982 – The BSE classifies scripts into group A for carry forward, and group B for cash transaction.1986 – The BSE 30 – Share Sensitivity Index (a.k.a. the Sensex) compiled; updated every two minutes.1987 – Stock Holding Corporation of India set up.1992 – Ordinance promulgated for granting statutory powers to the SEBI. The Over the Counter Exchange of India begins operations. The National Stock Exchange incorporated.1994 – The NSE’s debt segment begins operation on June 30; and the capital market segment begins online script less trading on November 3.1995 – the BSE computerizes its trading operation , signaling the end of 120 years of floor trading with open outcry system of share trading and the beginning of screen – based trading on the BSE.1996 – NSE 50 index launched April 22. NSDL set up as the first depositary in India, and the NSE commences trading in dematerialized securities on December 26.2000 – The SEBI approves the reports on net trading brought out by the SEBI committee on net based trading and services. Pursuant to the circular , stock exchanges are require to give permission to members to start net based trading after ensuring fulfillment of the minimum condition

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INTRODUCTION OF STOCK MARKETStock market A stock market is a public market for the trading of company stock and derivatives at an agreed price these are securities listed on a stock exchange as well as those only traded privately. The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market.The size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy.

Stock exchanges are the perfect type of market for securities whether of government and semi-govt bodies or other public bodies as also for shares and debentures issued by the joint-stock companies. In the stock market, purchases and sales of shares are affected in conditions of free competition. Government securities are traded outside the trading ring in the form of over the counter sales or purchase. The bargains that are struck in the trading ring by the members of the stock exchanges at the fairest prices determined by the basic laws of supply and demand.

DEFINITION OF STOCK EXCHANGE:-“Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.” The securities include:

• Shares of public company.• Government securities.• Bonds

Functions of Stock Exchanges:Stock exchanges provide liquidity to the listed companies. By giving quotations tothe listed companies, they help trading and raise funds from the market. Over theHundred and twenty years during which the stock exchanges have existed in theCountry and through their medium, the central and state government have raisedCorers of Rupees by floating public loans. Municipal corporations, trust and localBodies have obtained from the public their financial requirements, and industry, tradeAnd commerce- the backbone of the country’s economy-have secured capital ofcrores or rupees through the issue of stocks, shares and debentures for financingTheir day-to-day activities, organizing new ventures and completing projects ofExpansion, diversification and modernization. By obtaining the listing and tradingFacilities, public investment is increased and companies were able to raise morefunds. The quoted companies with wide public interest have enjoyed some benefitsand assets valuation has become easier for tax and other purposes

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MAJOR STOCK EXCHANGE IN THE WORLD:• New York Stock Exchange (NYSE- USA)• Toronto Stock Exchange (Canada) • London Stock Exchange (England)• Singapore Stock Exchange(Singapore)• Tokyo Stock Exchange (Tokyo)• Hong Kong Stock Exchange (honkong)• Bombay Stock Exchange (BSE- India)

Stock markets in India

Stock exchanges are the perfect type of market for securities whether of governmentAnd semi-govt bodies or other public bodies as also for shares and debentures issuedBy the joint-stock companies. In the stock market, purchases and sales of shares areAffected in conditions of free competition. Government securities are traded outside theTrading ring in the form of over the counter sales or purchase. The bargains that areStruck in the trading ring by the members of the stock exchanges are at the fairestPrices determined by the basic laws of supply and demand.

THERE ARE SOME STOCKS EXCHANGE IN INDIA WHICH ARE AS FOLLOWS:

1. Bombay Stock Exchange of India (BSE)2. National Stock Exchange of India (NSE)3. Madras Stock Exchange (MSE)4. Coimbatore Stock Exchange (CSX)5. Ahmedabad Stock Exchange (ASE)6. Bhubaneshwar Stock Exchange (BhSE)7. Cochin Stock Exchange (CSE)8. Hyderabad Stock Exchange (HSE)9. Calcutta Stock Exchange (CSE)10. Delhi Stock Exchange (DSE)11. Bangalore Stock Exchange (BgSE)12. Madhya Pradesh Stock Exchange, Indore13. Jaipur Stock Exchange (JSE)14. Magadh Stock Exchange, Patna15. UP Stock Exchange (UPSE)16. Vadodara Stock Exchange,Vadodara (VSE)17. Guwahati Stock Exchange Ltd18. Ludhiana Stock Exchange Association LtdKanara Stock Exchange Ltd19. Mangalore Stock Exchange Ltd20. Pune Stock Exchange Ltd21. Saurashtra Kutch Stock Exchange Ltd

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22. Meerut Stock Exchange Ltd23. Intrex Trade Exchange Ltd24. United Stock Exchange of India25. Mahurat trading

INTRODUCTION:The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875

as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956.

The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs.A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of nine elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer (CEO) & a Chief Operating Officer (COO).The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and the Chief Operating Officer and other Heads of Departments assist him.

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Session TimingBeginning of the Day Session 8:30 - 9:00Pre-open trading session 9:00 - 9:15Trading Session 9:15 - 15:30Position Transfer Session 15:30 - 15:50Closing Session 15:50 - 16:05Option Exercise Session 16:05 -

The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief Operating Officer has been constituted. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority, matters regarding annulment of transactions, admission, continuance and suspension of member-brokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member-brokers to the Exchange, etc.

The Organization

The National Stock Exchange (NSE) of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of:

Establishing a nation-wide trading facility for equities, debt instruments and hybrids, Ensuring equal access to investors all over the country through an appropriate communication

network, Providing a fair, efficient and transparent securities market to investors using electronic

trading systems, Enabling shorter settlement cycles and book entry settlements systems, and Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology has become industry benchmarks and is being emulated by other market participants. NSE is more than a

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mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities.

2(c)STOCK BROKERS IN INDIA :1) Angel broking2) Icici direct3) Motilal oswal4) Sharekhan5) Hdfc security6) Kotak securities7) Reliance money8) India bull9) 5paisa.com10) Marwadi11) jk securities12) bajaj capital13) Religare

(3) INTRODUCTION OF SHAREKHAN LIMITED

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Introduction to SharekhanSharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock marketsSharekhan is also about focus. Sharekhan does not claim expertise in too many things. Share khan’s expertise lies in stocks and that’s what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for you!

To sum up, Sharekhan brings to a user-friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares.

Those of you who feel comfortable dealing with a human being and would rather visit a brick-and-mortar outlet than talk to a PC, you’d be glad to know that Sharekhan offers you the facility to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs India’s largest chain of share shops with over hundred outlets in more than 80 cities! What’s a share shop? How do you locate a share shop in your city?

To find the answers of these questions, you must visit Sharekhan. In other words Sharekhan is a company that provides you an outstanding trading facility with a wide variety of products and acts as an investment consultant to manage your portfolio and secure a high rate of return on your investments in the securities market.

Basically, the company is a market leader in providing broking services and has a top turnover in trading and the high turnover makes it the no. 1 in the market. The main difference is the services that they provide to the investors who really need it. the services are discussed in more detail in the marketing activities. The clients are managed with a friendly corporate culture to give him more benefited investment ideas and motivate him whenever he needs. The company is providing as many tips to the clients for more and more trading ideas and the manager helps each client to concentrate on a few scripts so that he can manage the profit/lose.

In short, Sharekhan is currently having a good position in the market with the highest no of transactions and also the highest turnover (buying & selling) in India and a leader in providing better services to the investors. Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities,

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derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. That’s why Sharekhan has the trading products which are having one of the highest success rate in the industry. Sharekhan is having 180 share shops in 90 cities, the largest chain of retail share shops in India is of Sharekhan.

Company profile Name of the company: Sharekhan ltd Year of establishment: 1922 Headquarter: Sharekhan sski a 206 phoenx house phenoix mills compound lower parel ,

Mumbai Maharashtra ,India Nature of business : service provider Service : depository service

Online service and Technical research

No. of employees : over 4000 website : www.sharekhan.com slogan : your guide to the financial jungle

AWARDS AND ACHIEVEMENTS1. A wired companies along with Reliance, Hll, Infosys, etc by ‘Business Today’, January 2004

edition. 2. It was awarded ‘Top Domestic Brokerage House’ four times by Euro and Asia money. 3. It was Winner of “Best Financial Website” award. 4. India’s most preferred brokers within 5 years. “ Awaaz customers Award 2005”.

Mission Statement1. To provide the best Customer Service and Product Innovation tuned to diverse needs of

individual and corporate clientele.2. Continuous up-gradation with changing technology, while maintaining human values.3. Respond to progressive globalization and achieving international standards.4. Efficiency and effectiveness built on ethical practices.

vision

1. Customer Satisfaction througha. Providing quality service effectively and efficientlyb. “Smile, it enhances customer face value” is a service quality stressed onc. Periodic Customer Service Audits2. Maximization of Stakeholder value3. Success through Teamwork, Integrity and People

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SHAREKHAN LIMITED’S MANAGEMENT TEAMDIRECTORS:

MR. TARUN SHAH CEO- SHARE KHAN

MR SHANKAR VAILAYA- DIRECTOR (OPERATION) OF THE COMPANY

MR. JAIDEEP ARORA– DIRECTOR (PRODUCT & TECHNOLOGY) OF THE COMPANY

OTHER DIRECTORS:• Mr. Baldev L Boolani • Mrs. Meena S Jain • Mr. Bhupendra T Shah • Mr. Hasmukh Sheth

HIERARCHY IN SHAREKHAN:

Sales Side Dealing Side

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Trainees Junior Dealer

Super Trainees Dealer

Sales Executives Relationship manager

Senior sales executives Senior Relationship manager

Business development executive Equity advisor

Assistant sales manager Assistant Branch Manager

Deputy manager Branch Manager

Territory manager Cluster Head

Area sales manager/ Cluster manager Directors

Regional sales manager CEO

Regional Head

Vice president

Directors

CEO

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The main aim or marketing activities at Sharekhan is that the customer should get enough guidance to join the company and how he can get the best service than any other stockbroker. There is an officer for handling the marketing activities followed by two executives and it is

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not limited to them but the other people are also having some responsibilities to increase the no. of clients and retain them by providing them the services needed by them. DEMAT ACCOUNT

i. The term demat account account refer to a dematerialized accountii. The security exchange board of india

iii. Share and securities are held in electronic form instead of taking actual possession certificateiv. Purchase and sale of securities on the demat account are automatically made once transaction

are executed and completed PROCESS OF ACCOUNT OPPENINGLEAD MANAGEMENT SYSTEM (LMS) / REFERENCESCONTACT TELEPHONE AND PRESONAL VISIT

APPOINTMENT

DEMONSTRATION

AGREE DISAGREE (CLOSE)

DOCUMANTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDING THE ACCOUNT OPENING KIT TO THE CUSTOMER FOR TRADING

As identity, proof &address proof produce the following things:

Voter ID card Driving license PAN card( in case of to trade more than 50000) Ration card Bank pass book Telephone bill

PRODUCT&SERVICE OF SHAREKHAN

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There are many services those are designed such that the specific target segments of the customers are covered and the products are positioned in the minds of customers as the best one in India. The services are as given below:Sharekhan is India’s leading national network of stock-broking outlets. It is having the largest retail distribution chain in India. Sharekhan is not only a share-broking firm, but it avails of various services and other financial products to its clients.

1. Offline Trading facility2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and NEAT, i.e.

National Exchange Automated Trading)3. Free access to investment advice from Share khan’s Research team.4. Depository services: Demat and Remat transactions (Sharekhan is registered with NSDL, i.e.

National Securities Depository Ltd., as a Depository Participant)5. Derivatives trading, i.e. Futures and Options (through NEAT F&O)6. Internet based online trading.7. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc

Online BSE and NSE TradingSharkhan is a registered Stock Broker with the Bombay Stock Exchange and National

Stock Exchange to trade on behalf of clients. The screen-based trading is done on BOLT-BSE Online Trading and NEAT – National Exchange Automated Trading, terminals. There are two types of transactions executed on these terminals viz.

i) intra-day transactionsii) Delivery based transactions.

Intraday transactions are those, in which the squaring up of deal is done on the same day, while in delivery based transaction the squaring up of deal is done on the same day The Brokerage of Intraday transaction is 0.10% single side.In delivery based transaction the squaring up is not done on the same day, but the stock is to be traded on the basis of rolling settlement i.e. T+2 while brokerage on delivery based transactions is 0.50% on both side, i.e. while purchasing as well as selling.

Free Access to Investment Advice through R&DThe Research and Development at Sharekhan is done at its Head office Mumbai. From there it forwards the relevant data and tips on particular shares and scripts at the relevant time. The R&D department Head Mr. Hemang Jani forwards all the details regarding all stocks and scripts to all the branches through internet. At the end of each trading day there is a Teleconference, through which the R&D department Head Mr. Hemang Jani talks with each Branch heads and discusses about each day’s closing position and shows their predictions about next days opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference. The various publications of Sharekhan viz. Commodities Buzz, Commodities Beat, Commodity Trader’s corner, Sharekhan Exclusive, etc. are being prepared by the research team of Sharekhan made up of highly experienced people from diverse field.

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DEPOSITORY ISSUER/R&T AGENT

CLEARING CORPORATION

CLEARING MEMBER

DEPOSITORY PARTICIPANT

STOCK EXCHANGE

TRADING MEMBER INVESTOR

Depository Participation

Sharekhan is a registered Depository Participant (DP) with National Securities Depository Ltd. (NSDL). The participants are required to enter into an agreement with beneficial owners. It is required that separate accounts shall be opened by every participant in the name of each of the beneficial owner and the securities of each beneficial owner shall be segregated and shall not be mixed up with the securities of other beneficial owners or with the participant’s own securities. The participants are obliged to reconcile the records with every depository on a daily basis. Participants are required to maintain the following records for a period of five years.

a. Records of all the transactions entered into with a depository and with a beneficial owner;b. Details of security dematerialized, rematerialized on behalf of beneficial owners with whom

it has entered into an agreement;c. Records of instructions received from beneficial owners and statements of account provided

to beneficial owners; andRecord of approval, notice, entry and cancellation of pledge or hypothecation as the case may be.

Products offered by Sharekhan Pvt. Ltd 1. Derivative Trading on BSE and NSE.

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2. Commodities Trading.3. IPO Services.4. Internet Based Online Trading5. Portfolio Management Services6. Future option1) Derivatives Trading

Sharekhan is a Trading Member registered with the Stock Exchange, according to the norms and Guidelines given by the SEBI. Two types of users access the NEAT F&O trading system. The Trading Members and the Clearing Members. The Trading Members (TM) has access to functions such as, order matching, order and trade management. The Clearing Member (CM) uses the trader workstation for the purpose of monitoring the trading member(s) for whom he clears the trades. Additionally, he can enter and set limits to position, which a trading member can take. Sharekhan provides the service of derivatives trading on NEAT F&O to its clients.

2) Commodities Trading : Sharekhan is providing the facility to trade with the commodities through MCX (Multi-Commodity Exchange) and NCDEX (National Commodities & Derivatives Exchange). The commodities market in India is an emerging market, which will become the largest market in the world within the next 5 years, as the trends in the commodities market shows its performance. The company also provides research reports on daily, weekly and monthly basis for the investors in the commodities. It is just like the futures and is having a fixed lot of goods with the margin for each commodity and the trading is based on the theory of futures and therefore, it is also called Veda Market. In short Sharekhan also provides brokering in commodities and the brokerage charges are 0.10% on total trade value and if carry forwarded an additional 0.02% charge on total trade.3)Online IPO: Online IPO (Initial Public Offering) is a new service started by Sharekhan for providing the application form of any company’s issues of just like the TCS issue can be subscribed by filling an online form to reduce the paper work and the fund transfer facility is also provided to the clients for transferring the funds online. It is given on its web-site for helping the clients who are not able to collect the forms manually and the speed of filling and reducing the risk of misplacing of forms, not reaching in time, etc.

5) PORTFOLIO MANAGEMENT : SSKI follow a multi disciplined approach incorporating quantitative analysis (use of models and statistical analysis), fundamental analysis (industry and company analysis, market and economic trends) and technical analysis (buying and selling patterns of stocks). The common attributes that can be found across all our equity portfolios are:

I. High-quality securities II. Holdings widely diversified among industry sectors

III. Stocks with adequate market capitalizations and free float Stock concentration as per client risk profile but generally to be kept at manageable levels.

IV. SSKI investment process involves three distinct steps:V. Screening

VI. Research

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VII. Model portfolio construction.

4) Internet Based Online TradingThe Online trading facilities provided by Sharekhan is basically divided into two

types of accounts, viz. Classic Account and Speed Trade and Speed Trade Plus.

(1) Classic Account:This account allows the client to trade through the website and is suitable for the retail

investor. The online trading through Sharekhan website also comes with Dial-n-Trade service that enables you to buy and sell shares by calling our dedicated toll-free number.

(2) Speed Trade and SpeedTradePlus:SPEEDTRADE is a next-generation online trading product that brings the power of

broker’s terminal to the client’s PC. Through SPEETTRADE PLUS the client is also allowed to trade on Derivatives.

The various benefits the client gets form the online trading are :I. Freedom from Paperwork: Integrated trading, bank and demat account (auto pay-in and

pay-out of securities) with digital contracts removes all paperwork.II. Instant Credit and Transfer: Instant transfer of funds from bank accounts of client’s

choice to his/her Sharekhan trading account.III. Trade Anywhere: Enjoy the ease of trading from any part of the world in a completely

secure environment.IV. Dial n Trade: Call Sharekhan on a toll free number to place orders through sharekhan’s

tele-brokers.V. Timely Advice: Make informed decisions with expert advice, investment calls and live

market commentary.VI. Real-Time Portfolio Tracking: Benefit from real-time information of your investment

and current portfolio value.VII. After-Hour Orders: The Client can place orders after the market hours, which get

executed as soon as markets open.

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5)FUTURE OPTION :. Future represent a contract note between a buyer and seller on a specific quantity of financial instrument like currency, stock market index, or even a commodity ,at a specific price with a defined delivery or settlement period .future are traded in “lots” of underlying assets like stocks buying a contract is known as long position and selling a contract is called a short position . Future contract have two type of settlement , one is a physical delivery and the other one is settling in cash . Physical delivery part may be exercised in a commodity future contract .last day Thursday of the month is due date for delivery or settlement of all f&o contracts.

However there is no need to wait till the last day of the settlement of the future contract the contract can be squared off even before the expiry date

In f&o segment, both the buyer and seller face equal risk .so we can say that the risk factor is symmetrical .the operators or investor of f&o segment can be classified as hedgers who have position in long run and short in f&o segment, so that any market fluctuation will not affect them. Speculators- risk savvy people, who speculate and take their position in f&o and the leave the rest to the market. The speculator gets in to highest degree of exposure to risks, same time speculator make big profit, if the market condition is in favour to them. Third category is known as arbitrageur operates in various markets simultaneously to protect their interest, they may be taking a short position in f&o and long position in cash segment.

F&o trading is also known as. The major difference between equity trading and derivative trading is in derivative case of future, the short position can be carried forward until the expiry of the contract, were as in cash segment the short positions have to be squared on the same day, falling which the investor has to pay the penalty charges f&o segment is actively traded by the foreign institutional investor and the turnover is 4 times higher than cash segment

SERVICE (Product)Service is an act or performance that one party offers to another for sell and it is not a

physical product that you can touch but it is that one can feel. It is not likely to result into the ownership of anything. A service can be a fully service or a mixture of service and physical product.

The trading products of Sharekhan are such a mixture of services like DP service (managing the demat account), providing reports for investment advice etc. and thus we can define its service mix as a hybrid product mix of different physical products with accompanying services.

Therefore, the two types of accounts offered by Sharekhan i.e., Offline and Online are the two main product lines in the product mix of the company. The offline a/c with Sharekhan is defined as the account having which you can trade anywhere in the share shop of Sharekhan and the online a/c is that you can trade on your PC through the software provided by Sharekhan and it also offers tele-trading in both the cases but the major difference is of the service and prices for opening an account. The product mix is as shown below:

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Services provided by Sharekhan• Online Services• Offline Services• Depository Services• Equity and Derivatives Trading• Fundamental Research• Technical Research• Portfolio Management• Commodities Trading• Dial-n-trade• Share shops

Online services

• Mutual Funds• Commodity Futures• PMS• Technical PMS• Demat Services• Share shops•

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Offline Services:

• Trading with the help of Dealer• Trading without credit• By calling to the Share shops• Credit facility (Only in Delivery-based)• T+2 facility• Special website for Offline Clients: www.mysharekhan.com • Physical contract notes

Dial’n’Trade:- You can now use our ‘Dial’n’Trade’ back up option. Sharekhan team will help you place a trade after a security check right over the phone! Your account statement will get updated with this information automatically. This service is available both in Hindi and English. You can even use this service to place After-Market Hour Orders.

FEATURES OF Dial’n’Trade:- Dedicated Toll-Free number for order placements. Automatic fund transfer with phone banking. Simple and secure IVR based system for authentication. No waiting time. Enter your TPIN to be transferred to our telebrokers. Trusted, professional advice from our telebrokers. After-hours order placement facility between 8 am & 9:30 am. Reliable services wherever you are.

INVESTMENT IDEAS:- For investment, the application of the bottom-up approach of investing with a dear focus on stock picking has resulted in investment ideas that have withstood the storm to deliver returns to patient investors. Effective money management with appropriate risk rewards, the relentless use of stop losses, and our clear-cut focus on the importance of timing the market accurately has contributed to this success. Sharekhan investment philosophy is “given the clients risk profile, maximize performance by adhering to a disciplined investment approach backed by quality research”.Key elements of our investment philosophy and approach are:

Bottom-up stock selection. In-depth, independent fundamental research. Selecting high-quality companies with sustainable competitive advantages. Disciplined valuation approach applying multiple valuation measures. Long-term vision, resulting in low portfolio turnover

CHARGE STRUCTURE

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1)- PRE PAID OR AMC A/C: -• Advance Amount which will be fully adjsted against your brokerage you paid in One year.

Following Schemes Are Available: - Brokerage will be chagred - 1) - 750/- Scheme:- 0.05 / 0.50 %

2) - 1000/- Scheme 0.045 / 0.45 %3) – 2,000/- Scheme: - 0.035 / 0.40 %4) – 6,000/- Scheme: - 0.025 / 0.25 %5) – 18,000/- Scheme: - 0.020 / 0.20 %6) – 30,000/- Scheme: - 0.015 / 0.18 %7) – 60,000/- Scheme: - 0.010 / 0.15 %8) – 1, 00,000/- Scheme: - 0.0075 / 0.10 %

Minimum Margine of Rs. 10000/- is Required for Account Opening.Annual Maintenance Charges will NIL for 1st year and Rs. 400/- from 2nd year.

- EXPOSURE: 4 TIMES (ON MARGINE MONEY)- EXPOSURE: 10 TIMES (ON MAX TRADING)- ONLINE IPO'S AND MUTUAL FUNDS ADVISORY IS AVAILABLE. We are having tie-up with Eleven banks for online fund transfering i.e. HDFC, ICICI, IDBI, CITI, Union Bank of India, Oriental Bank of Commerce, INDUSIND, AXIS, Centurion Bank of Punjab, Bank of India and Yes Bank. Company Provide 4-6 E-mail to there customers per day.Online Trade in ShareSharekhan customers can online trade through there computers, through internet during the market timings.

Online Fund TransferWe have tie up with Eleven Banks for online fund transferring i.e. HDFC, IDBI, CITI, UBI, OBC, INDSLANDAND and UTI BANK, Yes bank, Bank of India for Online Money Transfer.

• Research based investment advice• Investment and trading services• Trading and seminars• Technology based investment tools• Integrated demat facility• CUSTOMER CAN TRADE IN• Equities• Derivatives• Commodities

• Promotion

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• Promotional activities at Sharekhan are done by web, e-mails and personal contact. Sharekhan is also organizing seminars and presentations and promotes its services to the clients. As explained earlier, Sharekhan is having the largest distribution chain of retail outlets of share shops. And it can be seen also because there are 180 share shops in 90 cities, which gives the maximum awareness to Sharekhan. The distribution of Sharekhan is also proved by its turnover and awareness among the investors in the stock market• Promotion• Promotional activities at Sharekhan are done by web, e-mails and personal contact. Sharekhan is also organizing seminars and presentations and promotes its services to the clients.

The given flow chart clearly explains the process of online trading

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STEP BY STEP PROCEDURE IN ONLINE TRADING:-

Following steps explain the step by step approach to on-line trading: Log on to the stock broker's website Register as client/investor Fill the application form and client broker agreement form on the requisite value stamp paper Obtain user ID and pass word Log on to the broker's site using secure user ID and password Market watch page will show real time on-line market data

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Trade shares directly yourself by entering the symbol or number of the security Brokers server will check your limit in the on-line accountant Demat account for the number of shares and execute the trade

Order is executed instantly (10-30 seconds) and confirmation can be obtained. Confirmation is e-mailed to investor by broker Contract note is printed and mailed in 24 hours Settlement will take place automatically on the settlement day Demat account and the bank account will get debited and credited by electronic means

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C DP (Sharekhan) E DP (anyone) C

Like blood is the most important factor in our body, Finance is the blood of any business. Finance is needed for all the activities like production or services as well as their distribution. The finance department directly influences all the functions of the other departments. Also finance has to give equal importance to all departments. Finance is that administrative area or set of administrative function in an organization may have the means to carry out its objective as satisfactorily as possible. Sharekhan has special accounts department for separate calculation of pay-in and pay-out of funds according to the client’s Proft/Loss. Finance management is done at Sharekhan is done by managing the stocks in the demat accounts and funds in the margin & trading accounts

Finance is the lifeblood of an organization to continue its activities and the finance management at Sharekhan can be divided into two major parts viz. DP (Depository Participation) and Accounts management, which are shown in the figure given above.DP means providing the facility to the clients for managing the stock bought/sold by them. DP covers two major terminologies viz. settlements and the auctions which is a part of managing demat account. Settlements as defined by SEBI are T+2, currently and it means that the demat account of the clients are prone to be sufficient for selling a script with no debit at all, i.e., the account must have the sold amount of stock to fulfill the settlement after 2 days from trade-day. Generally, the timings are 9:30 and 3:30 as a deadline for the client and he must provide the stock for giving a delivery to the buyer. The chart shows the total transaction between two clients:

The chart shows the process that the request for selling and buying passes through the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange) becomes the controlling intermediary for the delivery of stocks and this process is done in two days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to make the financial market of India to have a maximum speed of transactions just like the other nations in the world and proposing for T+1 settlement scheme but the system is not enough competent for that thing. But soon or later we will have such a settlement system in India, as said by Mr. J. N. Bajpai, chairman of SEBI.The client, if not capable of providing the delivery of say, 1000 shares of SAIL then the Auctions are initiated by the exchanges and the client has to pay for the price prevailing in

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DP Accounts

Finance

Dp Accounts

the market with 4-5% penalty. The penalty can go on maximum to 20% more than the market price of the sold stock. Generally, it is known as a buying auction and a same kind of auction is for selling the stock for which the buyer was proved unable to pay the price is carried out by exchange, known as the selling auction. And a debit or credit note is provided in the respective case of auction to the clients, i.e., for buying auction debit note is given on the T+4 basis and in case of selling auction the credit note is given on T+5 basis. There are two types of auctions called as Internal auctions & Market auctions, the internal auctions are defines as the auctions carried out between the other shops of Sharekhan and market auctions are those as explained earlier, the auction carried out in the market.

This is all about settlements but now switch to funds management or accounts management at Sharekhan. The accounts are different that is the margin a/c for deposits of the client and trading a/c for which Profit/Loss are settled. The collection of funds from the clients who had a debit balance or made a loss are made on the next day of trading and the payments to the profiting traders are made after two days of trading because the cheques are received from H/O and then pay-out is done and Pay-in is as explained that amounts to be taken from the clients. In this way, accounts are managed but in case if the client is unable to pay, the deposit from the margin a/c is cut down to the payments and in case if a client is having a credit balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a JV request is sent to H/O for totaling the three balances. The main aim for accounts management is that the clients must have a credit or no debit on the next day.

The DP services provided by Sharekhan are falling under the regulation of NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited), organizations governed by SEBI to regulate the depository services in the interest of the investors. So, the financial market in India is governed by Ministry of finance under which two major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP service providers with the brokers to the investors.

In this way we have gained a meaningful knowledge about India’s financial market and its structure from this training at Sharekan. In this way, the finance function is carried out at Sharekhan by following the guidelines given by SEBI. And the company is a private limited one with its own policies for disclosing its financial statements.

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Human resource is the crucial resource that a company can use to grow with the work of the employees. HRM activities at Sharekhan start form induction to the specific job training and

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are done by H/O at Mumbai. H/O takes a written test and selection interview for filling up vacancies in branches but the recruitment is done by the branch itself and the selection is performed by H/O from the screened applicants.

Any new recruit is firstly inducted to the company and sent to T & D department that is covered under HRD and T & D programmes makes employees aware about all the activities/jobs within the department he/she is to be recruited. Suppose if, I would be recruited for finance department then the finance related employees are known to me with their work profiles, that is, what they really do?

Then the specific job training is provided at H/O and the person has to keep in touch with the concerned department at H/O on internet because he/she has t solve many conflicts arising in the investor’s mind and to have an up-to-date information regarding the procedures and any new facilities or policies to resolve the problems of the clients. It is a must for each employee because the employee is the people by whom the company gets its customers and retains them.

HRP (Human Resource Planning), HRIS (Human Resource Information System), Recruitment & Selection, Career planning and development, Assessment & development of employees for Performance appraisal, etc. activities of managing the HR at Sharekhan is maintained in a way to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the people are helpful to each other and eager to get the work done as soon as possible with a co-operative thinking. An additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees by performance appraisal and also the heads of each departments and branches has to go through a 3606 performance appraisal for maintaining the consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best managed and used for the continuous growth and development of the company for its future plans to be achieved time-to-time.

Facilities provided by Company :

Provident fund facility 12 % (12 + 12) Yearly BONUS 30 days Leaves per year (18 PL + 12 CL) 05 days medical leaves Incentive given to employee when employee achieve higher target, give higher brokerage to

the company Gift voucher Dearness allowance Tea allowance Medical allowance

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Attendance bonus Training in-house. Training at out side for specific employees. Get together (Lunch) programme with family in a year

SWOT ANALYSISDuring this training at Sharekhan, we had come to know the Strengths – Weaknesses – Opportunities – Threats for the company and it is very useful for a company to analyze them. Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.

Strengths:

1. Well-maintained infrastructure.2. Dedicated, Intelligent and Loyal staff.3. On-line Trading products.4. Lowest brokerage and other charges.5. The best investment advice correct up to 70-90% through dedicated research and reports.6. Wide product range to enable the clients to choose the best alternative.7. One of the best DPs in India.8. A positive image in the existing clients.

Weaknesses:

a. Less awareness in the market.b. Time consuming process for account opening, resolving the problems of the customers, etc.c. Service quality is not maintained accordingly how they are promoted.

Opportunities:

a) Large primary market to sit as a book runner for the other companies just like Kotak Securities Ltd. that runs the books of share holdings for many companies.

a) Slope of stock market towards delivery based transactions.b) Large potential market for delivery and intra-day transactions.c) Open interest of the people to enter in stock market for investing.d) Attract the customers who are dissatisfied with other brokers & DPs.e) An indirect opportunity generated by the market from its bullishness.f) When market condition is good than company launch new service and raise the customerg) Market at rural and semi urban areash) As interest on fixed deposit with post office and bank are aii time low , more and more small

investor are entering into stock market

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Threats:

a) Decreasing rates of brokerage in the market.b) Increasing competition against other brokers & DPs.c) Poor marketing activities for making the company known among the customers.d) A threat of losing clients for any kind of weakness of the company.e) Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s clients would

lead them to go for other broker/DP.

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INTRODUCTION OF THE STUDYINTRODUCTION OF THE STUDY

LITRATURE REVIEW

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1) Mittal M. and A. Dhade (2007) in their research paper “Gender Difference In Investment Risk-Taking: An Empirical Study” published in The ICFAI Journal of Behavioral Finance, 2007

Observed that risk-taking involves the selection of options that might result in negative outcomes. While present is certain, future is uncertain. Hence, all investment involves risk. Decourt (2007) indicated that the process of making investment decisions is based on the ‘behavioral economies’ theory which uses the fundamental aspects of the ‘Prospect Theory’ developed by Kahneman and Tversky (1979).

2) Saptarshi Purkayastha (2008) in his article “Investor Profiling and Investment Planning: An Empirical Study” published in The Icfaian journal of Management Research, Dec 2008 concluded that

Younger investors and those with high income are willing to take more risk. According to him people do not take much risk when the question of investment of their hard-earned money comes

3) S. Saravana Kumar (2010) in his article “An Analysis of Investor Preference towards Equity and Derivatives” published in The Indian journal of commerce, July-September 2010

Concluded that the most of the investor are aware of high risk involved in the derivative market. To reduce the risk in the market, the investors should strictly follow the stop loss method. The study reveals that most of the investor prefers cash market where the script can be held for long term and the risk is less and it is transferable to others with minimal time period. Even though risk is higher, some investors prefer derivative market where return is also higher. The investors are suggested that before going for investment proper study about the script is essential. The study has highlighted a few suggestions for removing constrain in the crucial variables which directly affect the investor and company. The investors are highly satisfied with equity shares because of many reasons, i.e., liquidity, low investment, capital appreciation etc4). Deepa Mangala and R.K.Mittal (2005) in their article, “Anomalous Price behavior – An Evidence of Monthly effect in Indian Stock Market”, published in the Indian Journal of Commerce, April-June, 2005,

concluded that the mean return for the first half of a trading month is significantly higher than the mean returns for the second half. The increased liquidity might induce the demand for equities resulting in the monthly effect.

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5)Mittal M. and R. K. Vyas (2008) in their article “Personality Type and Investment Choice: An Empirical Study” published in The ICFAI UNIVERSITY Journal of Behavioral Finance, 2008. Observed that investors have certain cognitive and emotional weaknesses which come in the way of their investment decisions. According to them, over the past few years, behavioral finance researchers have scientifically shown that investors do not always act rationally. They have behavioral biases that lead to systematic errors in the way they process information for investment decision. Many researchers have tried to classify the investors on the basis of their relative risk taking capacity and the type of investment they make. Empirical evidence also suggests that factors such as age, income, education and marital status affect an individual’s investment decision.AjmiJy.A. (2008) used a questionnaire to know determinants of risk tolerance of individualinvestors and collected responses from 1500 respondents. He concluded that the men are less risk averse than women, less educated investors are less likely to take risk and age factor is also important in risk tolerance and also investors are more risk tolerance than the less wealthy investors.

6)Rakesh h m International journal in management in social scienceThe study reveals that the respondents assimilate the objectives of saving, the factors influencing the saving and the sources of information for decision making. The annual income and the annual saving are given importance of consideration by the respondents, because the level of income decides the level of savings. The investors are fully aware about the stock market and they feel that market movements affect the investment pattern of investors in the stock market.7) Manoj Kumar International Journal of Education and Psychological Research (IJEPR) ISSN: 2279-0179 Volume 2, Issue 2, pp: 95-100, April 2013Conclusion This study revealed that real estate and gold are most preferred investment alternatives among various investment alternatives. Respondents are not much inclined towards post office investments; NSC, KVP etc. Lock in period works negatively for investors because premature withdrawal is not allowed. The investors cannot get the money during emergency situations. Investors prefer liquidity and return as an important criteria for investment consideration. Hence mutual fund and equity share are also considered as good investment alternatives8)Fisher K. L. and Statman M. (2003) in their article “Consumer Confidence and Stock Returns” published in The Journal of portfolio management, 2003 concluded that increase in consumer confidence about the economy are accompanied by statistically significant increases in the bullishness of individual investors about the stock market, as if individual investors are unaware that the stock market is a leading indicator of the economy. Institutional investors however, seem aware of the role of the stock market as a leading indicator of the economy. They find no statistically significant relationship between changes in consumer confidence and changes in the sentiment of institutional investors. They find that consumer confidence goes up and down with stock returns; high stock returns

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RATIONAL OF THE STUDYOver the last few decades, the average person's interest in the equity market has grown exponentially. This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody can own equity. Despite their popularity, however, most people don't fully understand equity. Chances are you've already heard people say things like "Watch out with equity--you can lose your shirt in a matter of days!” People thought that equity were the magic answer to instant wealth with no risk. Equity can (and do) create massive amounts of wealth, but they aren't without risks. The only solution to this is education. The key to protecting me in the equity market is to understand where i put my money. It is for this reason I choose this topic.OBJECTIVE OF THE STUDY

1) To know Customers preference towards investment in equity market2) To analyze and conclude customer’s investing pattern in capital market3) To study frequency through trading in equity4) To study investment decision making in trading in equity5) To find out objectives of investment.

Hypothesis1) Null Hypothesis Ho= 70% respondents say that return is the basic important factor in selecting the stocks.

Alternate Hypothesis H1= < 70% respondents say that return is the not basic important factor in selecting the stocks

2)Null Hypothesis Ho= 50% respondents say that pattern of investing Invest in variety of stocksAlternate Hypothesis H1= < 50% respondents say that pattern of investing Invest in variety of stocks

Research MethodologyThe word methodology is the combination of two words “method” which implies a particular way of doing something plus “logos” the Latin word which implies “study”. Thus methodology implies „ a systematic way of studying something. The research method include all those methods and techniques that are used for conducting research .

Research DesignDescriptive Research Design has been used, which clearly indicates that the study is all about a certain characteristic of individuals (investors) towards investment.SOURCES OF THE DATA

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Data is the reliable Information which has been derived from the information collected by the company through various way to use for the future purpose, there two of the data collection methods are available:

Primary data Secondary data

From these two data collection method we can use primary data collection method Primary Data for this research work has been collected through Structured, Multiple-choice Questionnaire containing mostly Closed-ended QuestionsSample DesignA sample design is a definite plan for obtaining a sample from a given population. Sample design consists of a number of items such as, Sampling technique, Size of the sample, sampling unit, sampling area.Research design-Descriptive research Sampling Technique - Simple random samplingPopulation- 4000 customer of SharekhanSample Size- Sample size of 100 has been undertaken in this research.Sampling Area- customer of Sharekhan Sampling Unit- Individuals indulging investment in equity shares with different backgrounds have been selected. Statistical tools The statistical tools used for the purpose of analysis of this study are pie chart and bar diagram, ranking method SPSS and EXCELLimitations of the study1. There might be errors in the expression of opinion of respondents due to there personal bias.2. The study was restricted to urban areas in Anand &customer of Sharekhan &some people of chikhodra villge.3. Due to Time constraints sample size was restricted to 100.

Analysis And Interpretation

GenderMale 86

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Female 14

OccupationGovt. sector 46Pvt. Sector 24Business 10Others 10

IncomeBelow 200000 14200000-500000 50Above 500000 36

1) How long have you been investing in equity?

Less than 1 year 11%1-2years 41%3-5 years 26%More than 5 years 22%

how long you invest

Less than 1 year1-2years3-5 yearsMore than 5 years

The above analysis shows since how long the respondents have been investing in the stock market. Most of the respondents were investing since 1-2 years.

2). How do you like to do your trading?Directly 76%Indirectly 24%

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How do you like to do your trading?

directlyindirectly

In stock market, investors can trade directly or indirectly. Directly i.e. online trading, 76% of the respondents prefer online trading. In indirectly trading, mediator is involved for trading in market.3) What is the important factor for you in investment?Risk 14%Return 60%liquidity 26%

important factor for investment?

riskreturnliquidity

When any people invest in any sector than people want something in return people get preference on 14% on risk, 60% return and 26% on liquidity.

4) What is your frequency of trading in equity?Occasionally 29%Daily 26%Monthly 41%

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Yearly 4%

frequency of trading in equity?

OccasionallyDailyMonthlyYearly

The above analysis represents the frequency of trading in equity stock market of respondents. Most of them trade on monthly basis, for taking benefit of high returns.5. What are the advantages of equity?High Return 27%High Liquidity 21%Low Investment 28%Transferability of risk 24%

advantages of equity?High ReturnHigh LiquidityLow InvestmentTransferability of risk

The above analysis represents the advantages of investing in equity. Respondents get the most advantage from the Low Investment. Other advantages are High Return, High Liquidity, and Transferability of Risk.

6). what is your pattern of investing?Repeatedly invest in same stocks 29%Invest in variety of stocks 44%Invest in other than stocks 27%

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pattern of investing?

Repeatedly invest in same stocksInvest in variety of stocksDepends on other factors

The above analysis shows the pattern of investing. Most of the respondents i.e. 44% of them invest in variety of stocks. And others either repeatedly invest in same stocks or others see factors affecting the stock

7) What factor you consider the most while purchasing share of the company?Promoter background 8%Financial statement 22%Performance of the company 44%Sector performance 26%

factor consider the most while purchasing share of the company

Promoter backgroundFinancial statementPerformance of the companyPerformance of the company

The above analysis shows factor consider while purchasing the share of the company. Most of the respondents i.e. 44% performance of the company other are22%finacial statement8%are promoter back ground26%Sector performance

8) HOW MUCH RISK CAN YOU TAKE AT A TIME?

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Whole money 16Half money 14Depends on market 42On particular brand only 28

HOW MUCH RISK CAN YOU TAKE AT A TIME

Whole moneyHalf moneyDepends on marketOn particular brand only

The above analysis shows 42%of the people take risk according to the depend on the market,16% say they take the risk whole money, 14%say half money 28% says on particular brand only

9) Level of Satisfaction with various aspects of trading in equity market

Services Highly dissatisfied Dissatisfied Neutral Satisfied

Highly satisfied

Return earned 3 5 30 54 8

Level of Risk 3 12 59 19 7Information provided by brokers 6 23 43 18 10

Brokerage rate 4 26 43 19 8

Satisfaction level

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return earned level of risk information provided by

broker

brokeragr rate0

10

20

30

40

50

60

70

highly dissatisfieddissatifiedneutralsatisfiedhighly satisfied

The chart shows the satisfaction level of the customer. Customer are neutral about the services and satisfied with brokerage rate

Hypothesis testing

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1) Null Hypothesis Ho= 70% respondents say that return is the basic important factor in selecting the stocks.

Alternate Hypothesis H1= < 70% respondents say that return is the basic important factor in selecting the stocks factor for in the investment another Risk 14 14%

Return 60 60%

Liquidity 26 26%

Total 100 100%

Null Hypothesis Ho= 70% respondents say that return is the basic important factor in selecting the stocks.

Alternate Hypothesis H1= < 70% respondents say that return is the not basic important factor in selecting the stocksTest and CI for One Proportion Test of p = 0.7 v s p < 0.7

ExactSample X N Sample p 95% Upper Bound P-Value1 60 100 0.600000 0.682474 0.021Conclusion: as the p-value is less than 0.05, I reject H0.Alternate Hypothesis H1 is selected risk and return is also the basic factor while purchasing the share of company

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2). what is your pattern of investing?Repeatedly invest in same stocks 29% 29Invest in variety of stocks 44% 44Invest in other than share 27% 27Total 100% 100

2)Null Hypothesis Ho= 50% respondents say that pattern of investing Invest in variety of stocksAlternate Hypothesis H1= < 50% respondents say that pattern of investing Invest in variety of stocks

Test and CI for One Proportion

Test of p = 0.5 vs p < 0.5

ExactSample X N Sample p 95% Upper Bound P-Value1 44 100 0.440000 0.527159 0.136

Conclusion: as the p-value is more than 0.05, I accept H0

FINDING

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Findingsi. More investor are younger and middle aged people.

ii. Investors prefer to invest amount between Rs.50, 001 to Rs.1, 00,000.iii. Most of the investors were investing since last 1-2 years.iv. Most of the people like directly trading.v. Return is the basic factor while invest in share market.

vi. Performance of the company kept in mind while purchasing the share company.vii. The investors invest occasionally or monthly in equity stock

Suggestion• Open the new branch for ex. In nadiad , etc . • Company should focus on increasing satisfaction level of investors. • Company should focus more on youngsters so that youngsters can take higher risk.

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• Company should doing the seminar more and more give the knowledge about the Share market to the people so people can increase their investment in share market.

Give regular information via sms when market goes up&down. Stock exchange must update their technologies so that the settlement of cash doing

faster.

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Conclusion1) Most of the people like directly trading.2) Investors prefer liquidity and return as an important criteria for investment consideration.3) From above survey we got that youngster and middle aged people invest in share market are high which better sign is for the company.4) Performance of the company kept in mind while purchasing the share of any company. 5) Investment in equity get better return than fixed deposit& post office.6) From the above survey & conclusion we conclude that people preference on trading in equity

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BIBILOGRAPHY Cooper business research method fifth edition Investment writer zvi bodie eidth study www.Share Khan.com www.bseindia.com www.sebi.com www.moneycontrol.com www.nseindia.com Wikipedia Old report ,old research, reports ,articles

ANNEXUREQUESTIONNAIRE:-

NOTE:. This questionnaire is the part of my summer internship programme. It is only for

educational purpose. The information provided by you will be kept secure and confidential.

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NAME-………………………………..

GENDER-

(a) Male (b) Female

What is your occupation?

A) Student b) govt. sector

c) Private sector d) others

1) How long have you been investing in equity?

a) Less than 1 year b) 1-2years

c) 3-5 years d) More than 5 years

2). How do you like to do your trading?

a) Directly b) Indirectly

3) What is the important factor for you in investment?

a) Risk

b) Return

c) Liquidity

4) What is your frequency of trading in equity?

a) Occasionally b) Daily

c) Monthly d) Yearly

5). What are the advantages of equity?

a) High Return b) High Liquidity

c) Low Investment d) Transferability of risk

6). what is your pattern of investing?

a) Repeatedly invest in same stocks b) Invest in variety of stocks

c) invest in other than shares

7) What factor you consider the most while purchasing share of the company?

a) Promoter background b) Financial statement

c) Performance of the company d) Sector performance

8) HOW MUCH RISK CAN YOU TAKE AT A TIME?

a) Whole money b) Half money

c) Depends on market d) on particular brand only

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9) Level of Satisfaction with various aspects of trading in equity market

Services Highly dissatisfied Dissatisfied Neutral Satisfied

Highly Dissatisfied

Return earned

Level of Risk

Information provided by brokers

Brokerage rate

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