Stock Market Overview

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1 Stock Markets

Transcript of Stock Market Overview

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Stock Markets

What to expect?What is Stock?How trading happens?How to trade in stocks?Kinds of TradesBasic Terms and terminologies

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What to expect?What is Stock?How trading happens?How to trade in stocks?Kinds of TradesBasic Terms and terminologies

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What not to ExpectTechnical indicatorsStrategiesFutures and options

What is a Stock It’s a means to own a company. It is a kind of security.

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Prerequisites for Trading

We need to have DP (DEPOSITORY PARTICIPANT) account.

We need to have a Trading account.

And of course money

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How Trading Happens?

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Stock ExchangeEx : NSE,BSE

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Intra-Day Trading

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Delivery Based Trading

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What is short selling?

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How to select stocks?

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What is fundamental Analysis?Analyzing a stock based on the fundaments

of the country, the sector, and the company individually.

It includes going through balance sheet and profit-loss statement of the individual company and checking various ratios.

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3 Important RatiosEPS : PAT – Dividend/ No of shares

PE : Present share Price / EPS

P/BV Present share price / Book value

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What is Technical analysisForecasting the future direction of prices

through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument.

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Basic definitions in Technical analysis

Support : Where one buys

Resistance : Where one sells

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A Brief into Primary MarketPE Firms

QIP, HNI, Retail

Fixed Price and Book Building Process

Lower band and Upper Band and Cut off price

Lot size

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Tips for primary marketPlease Read

DRHPRead about the

promoter's group.Understand their

business, and compare with others

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ADRGDRMarket CapDividendBuy BackBonusSplitRights issueRecord DateNon Delivery Period

What is an Index

What is NIFTY, SENSEX

How are they Calculated?

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Tips:Always follow strict entry and exit pointsAlways execute a limit orderNever buy and sell for full amount in one go,Never average a losing trade

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HAPPY TRADING

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