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KOTAL SECURITIES LTD.

16

A

PROJECT REPORT ON

STRATEGIES FOR TRADE IN CASH AND DELIVERY

AT

KOTAK SECURITIES LTD,

NAVSARI.

IN PARTIAL FULFILLMENT FOR BACHELORS DEGREE IN

BUSINESS ADMINISTRATION.

PREPARED BY: GUIDED BY:

MITAL.A.NAIK MS CHINTAL MODH

[T.Y.B.B.A.]

S.S.AGRAWAL COLLEGE OF ARTS, COMMERCE AND

MANAGEMENT, NAVSARI

VEER NARMAD SOUTH GUJARAT UNIVERSITY,

SURAT

[YEAR-2010-11]

DECLARATION


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This project report entitled THE WINTER TRANING

At KOTAK SECURITIES LTD. Submitted to S.S.Agrawal College of arts,

Commerce and management. Affiliated to veer Narmad South Gujarat

University, Surat.

BBA is being running by me under Guidance of all faculties

Members of S.S.Agrawal College Of arts, commerce and management,

Navsari.

The project report study is entirely an outcome of my efforts

And is not submitted in part or in any university or institute for any otherDegree.

Naik Mital ADate: 14/5/2010Place: Navsari.

ACKNOWLEDGEMENT

I am the student of T.Y.B.B.A. and I study in S.S.agrawal College of

Arts, commerce and management. I honestly feel that this report of my study


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Would not have been possible without the support, guidance and Direction of

Those who are associated with my academic and personal life.

It was a golden opportunity to carry out my training in prestigious

Company. KOTAK SECUREITIES LTD. has allowed me to study all the

Department of the company and has also enabled me together information

About knowledge in various fields. I also he is he artful thanks to All staff

Members as without their co-operation it would not have been possible to

Carry out my training successfully with all required information.

I also convey my thanks to all the executives, managers, officers,

Supervisor for parting their previous time for us. I also convey thanks to

Deputy Manager Mr. Jignesh Thakkar who gives me Guidence.

I also convey my thanks to my college and veer Narmad south

Gujarat University who arranged this training programme for us.

SYNOPSIS

The subject of the project work is strategies for trade in cash and delivery ofKOTAK SECURITIES LTD. At navsari. The objective of project is to StudyCompanys history in brief.

Methodology to be used to carry out the data is collection of data throughsecondary data and conclusion there of sources of information are companysannual report and other financial report.


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There are two parts in the project work. First part is general information i.e.profile, product profile and organizational structure. Second part is strategies fortrade in cash and delivery.

Project work period: 14th December to 7th February.

Mital.A.NaikStudent of T.Y.B.B.A.[6th semester] finance

TABLE OF CONTENT

NUMBER TOPIC PAGE NO.1. TITLE PAGE 12. COLLEGE CERTIFICATE 2.3. COMPANY CERTIFICATE 3.4. DECLARATION 4.5. ACKNOWLEDMENT 5.

6. SYNOPSIS 6.7. TABLE OF CONTENT 7.8. OBJECTIVES 8.9. COMPANY PROFILE 910. PRODUCT PROFILE 1511. RESEARCH METHOLOGY 17.12. DATA PRESENTATION 19


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13. STRATEGIES FOR TRADE IN CASHAND DELIEVERY

A.SCALPING TRADING

B.MOMENTUM TRADING

C. TECHNICAL TRADING

D.FUNDAMENTAL TRADING

E.SWING TRADING.

21

21

23

24

33

35

14. CONCLUSION 39.15. BIBLIOGRAPHY 40.

OBJECTIVES

To provide an opportunity to apply the concepts learnt in real-life situation.

To provide a platform to take up Executive Training and develop a networkwhich will be useful in enhancing career prospects

To gain a deeper understanding of the work, culture, deadlines, pressures,

etc.

To know how to interact effectively with different kinds of people andconvincing people

To learn different techniques of selling the product.

TO know the difference between theoretical and practical knowledge.


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ABOUT KOTAK MAHINDRA GROUP

*

Kotak Mahindra is one of Indias leading financial

organizations, offering a wide range of financial service that encompasses every

sphere of life. From commercial banking, to stock broking, to mutual funds, to life

insurance, to investment banking, the group caters to the diverse financial needsof individuals and corporate.

The group has a net worth of over Rs. 7100 Crore and has adistribution network of branches, franchisees, representative offices in New York,London, San Francisco, Dubai, Mauritius and Singapore. The group servicesaround 6.5 million customer accounts.

Kotak Mahindra Bank wins the prestigious Best Bank Award in ITFramework and Governance among Other Banks at the IDRBT Banking

Technology Excellence Awards 2009.Kotak Investment Bank has bagged two Awards at the Finance Asia Country

Awards 2010.

Best Investment Bank Best Equity House


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Kotak Investment Bank has been awarded the Best Domestic Equity House byAsia Money Best Domestic Bank Awards 2010.

ABOUT KOTAK SECURITIES:

Kotak Securities Ltd., a 100% subsidiary of Kotak Mahindra Bank, is one of theoldest and largest stock brokers in the Industry. Kotak Securities have been thefirst and only NBFC to receive the license to be converted industry standards.

Company offerings include stock broking services for stock trading through thebranch and Internet, Investment in IPO, Mutual funds and portfolio managementservice.

Kotak securities are a corporate member of both Bombay StockExchange (BSE) and National Stock Exchange (NSE). Kotak Securitiesdistributes a range of financial products, including company fixed deposits,mutual funds, initial public offerings, secondary debt, equity, and small savingsschemes.

Most of the services provided by the company are available through itsinternet portal. In early 2009 company launched Saxos global trading platform inIndia. This platform provide direct access to equities, ETFs and REITS spanning24 stock exchanges across the USA, Europe, Asia and Australia.

COMPANY ACCOLADES INCLUDE:

Kotak Securities has been adjudged as the Best Broker at theFinance Asia Country Awards 2010.

UTI MF- CNBC TV18 Financial Advisor Awards Best performing

Equity broker (National)for the year 2009

Best Brokerage Firm in India by Asia0money in 2009, 2008, 2007 &2006

Finance Asia Award (2009) Best Brokerage Firm in India


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CNBC Financial Advisor Awards (2008) - Best performing EquityBroker in India

Avaya Customer Responsiveness Awards (2007 & 2006) in FinancialServices Sector

The Leading Equity House in India in Thomson Extel Surveys Awardsfor the year 2007

Euro money Award (2007 & 2006) - Best Provider of PortfolioManagement : Equities

Euro money Award (2005) - Best Equities House in India

Finance Asia Award (2005) - Best Broker in India

Finance Asia Award(2004) - Indias best Equity House

Prime Ranking Award (2003 & 2004)

COMPETITORS OF KOTAK SECURITIES LTD.

ICICI direct,karvy,marfatia,india bulls,india infoline,religare,share

khan,motilal oswal securities,chola mandlam investment & finance company,citi

financial, Bajaj capital, reliance money etc

SERVICES OFFERED BY KOTAK GROUP

Bank

Life Insurance

Mutual fund

Car finance

Securities

Institutional Equities

Investment Banking

International Business


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Kotak Private Equity

Kotak Realty Fund

Why we should invest in kotak securities?

We have a million reasons for you to choose us. Listed below are a few:

Stability

Reliability

Value

Service

Centralized risk management system.

WHY INVEST:

Planning for your future relies on planning the right kinds of long term

investments. There are many different types of long term financial investments,

and everyone needs to have some sort of investments for their future.

Let's face it. You will not be able to work forever. No matter how healthy

you are, there will come a time when you will not be able to work, due to healthproblems or simply aging. What will you do for an income when the time comes

to retire? This is why planning your long term investments carefully is so

important.

There are many reasons to invest. You can create wealth, beat inflation,

achieve financial goals like buying a car or paying for college, and retirement.

You can choose from many investing options. You can invest in Market, Equities,

and IPOs, Mutual Funds, Insurance and other several asset classes.

TYPES OF ACCOUNTS AT KOTAKSECURITIES LTD.

Auto Invest

Kotak Flat


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Kotak Super Saver Flat

Kotak Gateway

Kotak Privilege Circle

Kotak High Trader

Portfolio Management Services

Kotak Assist

Kotak Freeway

Kotak Freedom

NRI Account


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PRODUCTS OF KOTAK SECURITIES:

Once you invest with Kotak Securities, you can enjoy access to a wide range of

products and services to help you make the most of your investments.

Easy Equity:
http://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyequity.html&sa=D&sntz=1&usg=AFQjCNG2bxnvAE8z-mOUk0BrhVTlvwmbyghttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyequity.html&sa=D&sntz=1&usg=AFQjCNG2bxnvAE8z-mOUk0BrhVTlvwmbyg


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Want your capital to appreciate fast? Invest in Easy Equity.

Easy Derivatives:

The higher your risk, the greater the returns on your investments.

Easy IPO:

Invest early for greater returns.

Easy Mutual Fund:

Looking to diversify your risk? Invest in Easy Mutual Fund.

Easy Insurance:

Secure your future and your familys. Theres more to insurance thanjust security.

Kotak Portfolio Management:

The Portfolio Management Service combines competent fund

management, dedicated research and technology.

RESEARCH METHODOLOGY:

Research always starts with a question or a problem. Its purpose is to questionthrough the application of scientific method. It is a systematic and intensive studydirected towards a more complete knowledge of the subject studied.

STATEMENT OF PROBLEM:

Analysis of cost & benefits of online shares trading is required to increaseinvestors profits and to reduce operational cost.

RESARCH TYPES:
http://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyipo.html&sa=D&sntz=1&usg=AFQjCNE84Fj78_zsDsEdTsNvyYr0NCaBBwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyipo.html&sa=D&sntz=1&usg=AFQjCNE84Fj78_zsDsEdTsNvyYr0NCaBBwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasymutualfund.html&sa=D&sntz=1&usg=AFQjCNFQ3KBprWbzkuItXKECabX-S4DTpwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasymutualfund.html&sa=D&sntz=1&usg=AFQjCNFQ3KBprWbzkuItXKECabX-S4DTpwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyinsurance.html&sa=D&sntz=1&usg=AFQjCNE397i3f5EaLLED2JIzHa-HIYHptwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyinsurance.html&sa=D&sntz=1&usg=AFQjCNE397i3f5EaLLED2JIzHa-HIYHptwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fpms%2Fflg%26pm.html&sa=D&sntz=1&usg=AFQjCNE_EA_m8AMzCde4k_KK6KwtGk-GwQhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fpms%2Fflg%26pm.html&sa=D&sntz=1&usg=AFQjCNE_EA_m8AMzCde4k_KK6KwtGk-GwQhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fpms%2Fflg%26pm.html&sa=D&sntz=1&usg=AFQjCNE_EA_m8AMzCde4k_KK6KwtGk-GwQhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyinsurance.html&sa=D&sntz=1&usg=AFQjCNE397i3f5EaLLED2JIzHa-HIYHptwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasymutualfund.html&sa=D&sntz=1&usg=AFQjCNFQ3KBprWbzkuItXKECabX-S4DTpwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasymutualfund.html&sa=D&sntz=1&usg=AFQjCNFQ3KBprWbzkuItXKECabX-S4DTpwhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotaksecurities.com%2Fwhatweoffer%2Feasyipo.html&sa=D&sntz=1&usg=AFQjCNE84Fj78_zsDsEdTsNvyYr0NCaBBw


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Research design is the conceptual design with in which the research isconducted. It constitutes the blueprint for collection, measurement and analysisof data. For this study a descriptive research design was used in the researchtechnique used in the project is descriptive type. As descriptive research is a factfinding research. This research was aimed towards gathering descriptive

information and data was collected by using one or more appropriate methods.

SAMPLING TECHNIQUES:

Sample size has taken by convenience sampling convenience sampling is arandom non probability process in which the selection of a unit, form thepopulation is based on availability company sampling is sometimes knows asgrab or opportunity sample. It is a type of non probability sampling which involvesthe sample being drawn from that part of the population which is readily availableand convenient. The research using such a sample cannot scientifically makegeneralization about the total population from this sample because it would not

be representative enough.

SOURCES OF DATA:

The research methodology used was descriptive types. The research mechanismfor collection of primary data and secondary data collected of various sources.

PRIMARY DATA:

DISCUSSION WITH THE OFFICERS:Primary data was collected from discussion with the officers of various

companies as new customer so that officer was provided all the details of thecompany online product.

DISCUSSION WITH THE INVESTORS:Primary data was collected also from discussion with the

investors of the companies. Investors give me detail of the company

and their services.

SECONDARY DATA:

INTERNET:Secondary data was collected on internet by company website and

another website also. The company website gives good information about thecompany.


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RAFFLED OF COMPANIES:I used company raffled for taking some information. It helps a lot in my

project.

DATA PRESENTATION

A Kotak security limited is a corporate member of both Bombay Stock

Exchange (BSE) and National Stock Exchange (NSE). Kotak Securities

distributes a range of financial products, including company fixeddeposits, mutual funds, initial public offerings, secondary debt, equity,and small savings schemes.Most of the services provided by the company are available through itsinternet portal. In early 2009 company launched Saxos global trading

platform in India. This platform provide direct access to equities, ETFsand REITS spanning 24 stock exchanges across the USA, Europe, Asia

and Australia.


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TYPES OF ACCOUNT:

Kotak offers different account types according to users requirement:

SUPER DERIVATIVES:

Super Derivatives account is specially made for those investors who areaverse to taking risks and trade high volumes in futures and options.

Risk would be reduced in this account is mainly focused on derivativeinvestments. In Super Derivatives account an investor also will be able to useadvanced strategies. Kotaks experts suggest strategies to their investorsposition where the risk return ratio is much lower.

One can activate Kotak Securities Super Derivatives account with

minimum amount Rs.25 lakh as margin, by way of cash or stock. For DerivativeBrokerage-In Futures is 0.05% both sides and In Option s is 0.05% or Rs. 150per contract whichever is higher (both sides). For Delivery Brokerage is 0.45%.

Auto Invest:Auto Invest is a unique Online Trading Account which provides investmentplanning in Gold ETFs is mutual fund schemes that will invest the moneycollected from their investors in standard gold bullion. Kotaks advisor gives the recommendation according toinvestors 5000 required for Auto invest account.

KOTAK GATEWAY:

Kotak Gateway account opens the gateway to a world of investingopportunities for beginners. Kotak Gateway user can trade anywhere,anytime using internet. Kotak also offers call and trade facility.Kotak Securities provide SMS alert, research report, free news and marketupdates to the account holders. Best feature of kotak gateway is call andtrade facility. Anybody can activate Kotak Gateway account with anyamount between Rs.20, 000 to 5, 00,000. This can be in form of cashdeposit or the value of the shares you buy. Brokerage will be charged

based on the account type.For intraday trading brokerage is 0.06% both sides for less than 25 lakeand0.023% for more than 25 corers.]

KOTAK PRIVILEDGE CIRCLE:


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Kotak privilege Circle is the premium investment account offered by KotakSecurities. Along with Kotak Gateway account benefit kotak providesindependent market expertise and support through a dedicatedrelationship manager and a dedicated customer service desk whichprovides assistance in opening accounts, handling day-to-day problems,

and more. They provides KEAT premium which is an exclusive online toolthat lets you monitor what is happening in the market and view your gainsand losses in real-time.One can activate Kotak Privilege Circle account more than Rs.10, 00,000as margin, by way of cash or stock. For intraday trading brokerage is0.06% both sides for less than 25 lake and 0.03% for more than 25 corers.

Other then above 4 accounts, Kotak Securities also provide followingaccounts:

1 Kotak Freedom for Mutual Fund Investment2 Kotak Super Saver, a Flat Brokerage and a Low Margin account. 3

PMS (Portfolio Management Service), an account for people who need anexpert to help to manage their investment.4 NRI Account, an online trading an investment account for NRI Investors.

WHAT DOESCASH SETTLEMENT MEAN?

A settlement method used in certain future and option contracts whereby,

upon expiry or exercise, the seller of the financial instrument does not deliver the

actual but transfers the associated cash position.

STRATEGIES FOR DOING TRADING:

SCALPING TRADING MOMENTUM TRADING TECHNICAL TRADING FUNDAMENTAL TRADING

SWING TRADING

SCALPING:-

The investment practice of holding a position for a very short period oftime and selling it for a small gain. That is, a trader who buys and instantly sells asecurity hoping to profit from the bid-ask spread is said to scalp that security. A


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scalper hopes that the series of small gains over the course of the trading daywill result in a much larger gain.

Scalping is Technical Analysis

Scalpers are always technical analysis traders (as opposed to fundamentals

traders), but they can be either discretionary or system traders. Discretionary

scalpers will make each trading decision in real time (albeit very quickly),

whereas system scalpers will follow a scalping system without making any

individual trading decisions. Scalpers primarily use the market's prices to make

their trading decisions, but some scalpers also use one or more technical

indicators (e.g. moving averages)

Scalping Psychology

Scalping is most suitable for a specific type of trading personality.

Scalpers must be much disciplined, especially in the case of system scalpers, as

they must be capable of following their trading system precisely no matter what.

Scalpers must be able to make decisions without any hesitation, and without

questioning their decisions once they have been made. However, scalpers must

also be flexible enough to recognize when a trade is not proceeding as expected

(or hoped), and take action to rectify the situation (i.e. exit the trade).

FACTOR AFFECTING SCALPING TRADING:

LIQUIDITY - The liquidity of a market affects the performance of scalping.Each product within the market receives different spread, due to popularitydifferentials. The more liquid the markets and the products are, the tighterthe spreads are. Scalpers like to trade in a more liquid market since they canmake thousands of trades a day to add up their small profits offered on each

trade. If they are to trade in less liquid markets, they will try to cover theirrisks by widening their bid and ask prices.

VOLATILITY - Unlike momentum traders, scalpers like stable or silentproducts. Imagine if its price does not move all day, scalpers can profit allday simply by placing their orders on the same bid and ask, making
http://www.google.com/url?q=http%3A%2F%2Fliquidity&sa=D&sntz=1&usg=AFQjCNGlmsFUJmG2ZhZfOSRhM188-LuS_Qhttp://www.google.com/url?q=http%3A%2F%2Fliquidity&sa=D&sntz=1&usg=AFQjCNGlmsFUJmG2ZhZfOSRhM188-LuS_Q


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hundreds or thousands of trades. They do not need to worry about suddenprice changes.

TIME FRAME - Scalpers operate on a very short time frame, looking toprofit from market waves that are sometimes too small to be seen even on

the one minute chart. This maximizes the number of moves during the daythat the scalper can use to make a profit.

RISK MANAGEMENT - Rather than looking for one big trade, theway a trend trader might, the scalper looks for hundreds of small profitsthroughout the day. In this process the scalper might also take hundreds ofsmall losses during the same time period. For this reason a scalper musthave very strict risk management never allowing a loss to accumulate.

MOMENTUM TRADING:-

WHAT DOESMOMENTUM MEAN?

The rate of acceleration of a security's price or volume

Once a momentum trader sees an acceleration in a stock's price, earnings, or

revenues, the trader will often take a long or short position in the stock with the

hope that its momentum will continue in either an upwards or downwards

direction. This strategy relies more on short-term movements in price rather then

fundamental particulars of companies, and is not recommended for novices.

Momentum traders are truly a unique group of individuals. Unlike other traders

or analysts who dissect a company's financial statements or chart patterns, a

momentum trader is only concerned with stocks in the news. These stocks will be

the high percentage and volume movers of the day .
http://www.google.com/url?q=http%3A%2F%2Fframe&sa=D&sntz=1&usg=AFQjCNFVwMB8520WAB-HdCYOh_nxEMgIJwhttp://www.google.com/url?q=http%3A%2F%2Ffollowing&sa=D&sntz=1&usg=AFQjCNHqDq2N0YiXQo6fyXymMX3COPSqpwhttp://www.google.com/url?q=http%3A%2F%2Fmanagement&sa=D&sntz=1&usg=AFQjCNFVNA0ToUmXOxIYtTsUjXcWi8m_Kghttp://www.google.com/url?q=http%3A%2F%2Fmanagement&sa=D&sntz=1&usg=AFQjCNFVNA0ToUmXOxIYtTsUjXcWi8m_Kghttp://www.google.com/url?q=http%3A%2F%2Ffollowing&sa=D&sntz=1&usg=AFQjCNHqDq2N0YiXQo6fyXymMX3COPSqpwhttp://www.google.com/url?q=http%3A%2F%2Fframe&sa=D&sntz=1&usg=AFQjCNFVwMB8520WAB-HdCYOh_nxEMgIJw


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Momentum day trading can be extremely profitable when done correctly.-

Day trading momentum stocks can be a very risky adventure. You can lose a lot

of money when you pick the wrong opportunities.

TECHNICAL TRADING:-

What is Technical Trading?Those new to the world of investing and trading quickly get

confused when introduced to technical trading. The confusion is easilyunderstood. With terms like Fibonacci number, candlestick charts, Bollingerbands, stochastic oscillator and Elliottwave, how could a newcomer not betotally bewildered?

THE THEORY BEHIND TECHNICAL ANALYSIS

The general theory among technical analysts, sometimes called chartists ortechnicians, is that future price movements in a stock can be predicted fromhistorical prices and volume data. While no one knows for certain when, or evenif, history will repeat itself, there are traders who have used technical analysis to

amass fortunes trading stocks and commodities. Pioneer traders like Paul TudorJones and Ed Seykota have utilized technical analysis to reveal patterns fromwhich they have traded, yielding millions of dollars in profits.

But can you identify these patterns and trade them profitably? Thats somethingyoull need to decide for yourself. But the following information will provide anintroduction to the potentially profitable world of technical trading.


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WHAT IS A TECHNICAL TRADING SYSTEM AND WHY USE

ONE?

A technical trading system is a set of rules that, using market price data,

defines when to enter a trade (entries), when to exit a trade (stop losses, profit

targets, etc) and how much to risk on any trade (money management). If you are

trading without a good trading system, then your odds of failure skyrocket.

10 LAWS OF TECHNICAL TRADING:If technical stock analysis looks complicated to you and you are asking yourselfwhere you should start, this is the right place to be. In this article, we willsummarize John Murphy's 10 Laws of technical trading, which is very informativeand every beginner on the stock market should read it.

The most important rules of technical trading are:

1. DETERMINE LONG-TERM PERSPECTIVE OF THE MARKET

By studying long-term monthly and weekly charts, spanning over several years,will provide you more general overview of the direction where the markets aregoing. Do not start and limit your research to analyzing short-term charts only,even if you are trading shorter periods.

2. DETERMINE THE TREND YOU TRADE

As you read in Stock Market Trend article, trend comes in many sizes: long-term,intermediate-term and short-term. What you should do is to focus on the trend
http://www.google.com/url?q=http%3A%2F%2Fwww.stocks-for-beginners.com%2Fstock-market-trend.html&sa=D&sntz=1&usg=AFQjCNHffj3D5i_S2-GoHeJfYc2L91GDtAhttp://www.google.com/url?q=http%3A%2F%2Fwww.stocks-for-beginners.com%2Fstock-market-trend.html&sa=D&sntz=1&usg=AFQjCNHffj3D5i_S2-GoHeJfYc2L91GDtA


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you trade and make sure to trade in its direction. In the uptrend, you should buydips and sell rallies. Shorter chart periods are use for timing, while long-termcharts research will help you determine the trend.

3. DETERMINE LOW AND HIGH OF THE TREND YOU TRADE

Look at the chart and determine support and resistance levels as explained inSupport and Resistance article. Buying should occur near support levels andselling near resistance levels. Once the resistance (support) is broken, it willusually provide support (resistance) to future pullbacks. Determining support and

resistance levels form basis of technical stock analysis.

4. WATCH THE RETRACEMENTS

Markets usually correct significant portion of previous trend. The retracement can

be minimally one-third, half or maximally two thirds of the prior trend. Helpyourself with Fibonacci levels. Retracement levels should be marked as buyingpoints. We have written a detailed article about how retracement levels oftechnical stock analysis can be useful in forming successful trading strategy.

5. DRAW THE TREND LINES

Simple trend lines are one of the most effective charting tools. Connect twosuccessive lows to get up trend line or two successive tops to get down trendline. Stock prices often pull back to trend lines before they continue in thedirection of the trend. The more times the trend line is touched and not broken,the more important it is. Once broken, it signals a change in the trend.
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6. MOVING AVERAGES CROSSOVERS CONFIRM CHANGES

Moving averages tell you if the trend is still in motion, however, they provide aconfirmation of trend change, they do not tell you anything in advance. Twomoving averages crossovers can provide you objective buy and sell signals.Traders often use 4/9, 9/18 and 5/20 crossovers, the crossing of 40-day MA alsoprovides good signals. Since moving averages are trend following indicators,they provide best results in trending markets.

7. USE OSCILLATORS TO DETECT THE TURNS

Oscillators are helpful when determining overbought and oversold situations.They are popular indicators since they warn you of possible trend change inadvance. Most often used oscillators are RSI and Stochastic, both plotted on ascale of 0 to 100. Crossing the 70 (80) RSI (Stochastic) reading signalsoverbought conditions and 30 (20) RSI (Stochastic) signals oversold conditions.

Oscillators perform best in trading market range, when there is an absence ofmarket trend.

8. MACD WARNS YOU OF TREND CHANGES

MACD (Moving Average Convergence Divergence) indicator combines movingaverages with overbought/oversold conditions of oscillators. You should buy(sell) when faster line crosses above (bellow) the slower line and both are bellow(above) zero. If you plot a MACD histogram on your chart, you can get evenearlier warnings of possible changes in the trend.

9. TRADING OR TRENDING?
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ADX (Average Directional Movement Index) measures the degree of markettrend and tells you, which set of indicators are best to follow. A raising ADXsignals a strong trend, while a falling ADX signals no-trend or trading conditions.When ADX is raising, you should favor moving averages, when it is falling, youshould favor oscillators.

10. VOLUME AND OPEN INTEREST CONFIRMATION

Volume is often preceding the price change. Heavier volume is confirming uptrend on up days and vice versa. Another important factor to watch is openinterest in the futures market. Raising open interest (fresh money coming in) issupporting uptrend, while declining open interest is a warning of trendcompletion.

TECHNICAL ANALYSIS: CHART TYPES:There are four main types of charts that are used by investors and traders

depending on the information that they are seeking and their individual skill

levels. The chart types are: the line chart, the bar chart, the candlestick chart and

the point and figure chart. In the following sections, we will focus on the S&P 500

Index during the period of January 2006 through May 2006. Notice how the data

used to create the charts is the same, but the way the data is plotted and shown

in the charts is different.

LINE 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
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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.

Figure 1: A line chart

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 gainedvalue. 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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Figure 2: A bar chart

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 differencebetween 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 days close but below the day's open, thecandlestick will be black or filled with the color that is used to indicate an up day.
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Figure 3: A candlestick chart

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.
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Figure 4: A point and figure chart

When first looking at a point and figure chart, you will notice a series of Xs andOs. The Xs represent upward price trends and the Os represent downward pricetrends. 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 theprice scale, which adjusts depending on the price of the stock: the higher thestock'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 othercritical point of a point and figure chart is the reversal criteria. This is usually setat three but it can also be set according to the chartist's discretion. The reversalcriteria set how much the price has to move away from the high or low in theprice trend to create a new trend or, in other words, how much the price has tomove in order for a column of Xs to become a column of Os, or vice versa. Whenthe price trend has moved from one trend to another, it shifts to the right,signaling a trend change.

FUNDAMENTAL TRADING:-


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FUNDAMENTAL ANALYSIS

Fundamental analysis is about using real data to evaluate a security's value.Although most analysts use fundamental analysis to value stocks, this method ofvaluation can be used for just about any type of security.

For example, an investor can perform fundamental analysis on a bond's value bylooking at economic factors, such as interest rates and the overall state of the

economy, and information about the bond issuer, such as potential changes incredit ratings. For assessing stocks, this method uses revenues, earnings, futuregrowth, return on equity, profit margins and other data to determine a company'sunderlying value and potential for future growth. In terms of stocks, fundamentalanalysis focuses on the financial statements of the company being evaluated.

One of the most famous and successful fundamental analysts is the Oracle ofOmaha, Warren Buffett, who is well known for successfullyemploying fundamental analysis to pick securities. His abilities have turned himinto a billionaire

Fundamental analysis of a business involves analyzing its financial statements

and health, its management and competitive advantages, and its competitors and

markets. When applied to futures and forex, it focuses on the overall state of the

economy, interest rates, production, earnings, and management. When

analyzing a stock, futures contract, or currency using fundamental analysis there

are two basic approaches one can use; bottom up analysis and top down

analysis. The term is used to distinguish such analysis from other types of

investment analysis, such as quantitative analysis and technical analysis.

Fundamental analysis is performed on historical and present data, but with thegoal of making financial forecasts. There are several possible objectives:

To conduct a company stock valuation and predict its probable priceevolution,

To make a projection on its business performance,

To evaluate its management and make internal business decisions,
http://www.google.com/url?q=http%3A%2F%2Fstatements&sa=D&sntz=1&usg=AFQjCNGzTJeD-x589KcDj_P3isRB4B2ZLQhttp://www.google.com/url?q=http%3A%2F%2Fcompetitors&sa=D&sntz=1&usg=AFQjCNGBX8hm0EkI2o3ZG0bAgR5gNmfusAhttp://www.google.com/url?q=http%3A%2F%2Fmarkets&sa=D&sntz=1&usg=AFQjCNHdowAtaBCZO9FNY5oEWh2vj88Jtwhttp://www.google.com/url?q=http%3A%2F%2Fcontract&sa=D&sntz=1&usg=AFQjCNEolBCUAFY7fc-shZOsMpnBlSliJAhttp://www.google.com/url?q=http%3A%2F%2Fmarket&sa=D&sntz=1&usg=AFQjCNF2CREVFPfXqR9uXX989LGdas0R5whttp://www.google.com/url?q=http%3A%2F%2Fanalysis&sa=D&sntz=1&usg=AFQjCNHSHYcqMSDIJmu98GlWjt1OCu_h2whttp://www.google.com/url?q=http%3A%2F%2Fanalysis&sa=D&sntz=1&usg=AFQjCNHSHYcqMSDIJmu98GlWjt1OCu_h2whttp://www.google.com/url?q=http%3A%2F%2Fanalysis&sa=D&sntz=1&usg=AFQjCNHSHYcqMSDIJmu98GlWjt1OCu_h2whttp://www.google.com/url?q=http%3A%2F%2Fforecasts&sa=D&sntz=1&usg=AFQjCNG662EjqGRQP6iarvxLdkgjqI4Rnghttp://www.google.com/url?q=http%3A%2F%2Fvaluation&sa=D&sntz=1&usg=AFQjCNER_ZCzRVnOdkB38MjmYNxrZ7TtOAhttp://www.google.com/url?q=http%3A%2F%2Fvaluation&sa=D&sntz=1&usg=AFQjCNER_ZCzRVnOdkB38MjmYNxrZ7TtOAhttp://www.google.com/url?q=http%3A%2F%2Fforecasts&sa=D&sntz=1&usg=AFQjCNG662EjqGRQP6iarvxLdkgjqI4Rnghttp://www.google.com/url?q=http%3A%2F%2Fanalysis&sa=D&sntz=1&usg=AFQjCNHSHYcqMSDIJmu98GlWjt1OCu_h2whttp://www.google.com/url?q=http%3A%2F%2Fanalysis&sa=D&sntz=1&usg=AFQjCNHSHYcqMSDIJmu98GlWjt1OCu_h2whttp://www.google.com/url?q=http%3A%2F%2Fanalysis&sa=D&sntz=1&usg=AFQjCNHSHYcqMSDIJmu98GlWjt1OCu_h2whttp://www.google.com/url?q=http%3A%2F%2Fmarket&sa=D&sntz=1&usg=AFQjCNF2CREVFPfXqR9uXX989LGdas0R5whttp://www.google.com/url?q=http%3A%2F%2Fcontract&sa=D&sntz=1&usg=AFQjCNEolBCUAFY7fc-shZOsMpnBlSliJAhttp://www.google.com/url?q=http%3A%2F%2Fmarkets&sa=D&sntz=1&usg=AFQjCNHdowAtaBCZO9FNY5oEWh2vj88Jtwhttp://www.google.com/url?q=http%3A%2F%2Fcompetitors&sa=D&sntz=1&usg=AFQjCNGBX8hm0EkI2o3ZG0bAgR5gNmfusAhttp://www.google.com/url?q=http%3A%2F%2Fstatements&sa=D&sntz=1&usg=AFQjCNGzTJeD-x589KcDj_P3isRB4B2ZLQ


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To calculate its credit risk.

STRENGTHS OF FUNDAMENTAL ANALYSIS:

LONG-TERM TRENDS

Fundamental analysis is good for long-term investments based on long-term

trends, very long-term. The ability to identify and predict long-term economic,

demographic, technological or consumer trends can benefit patient investors who

pick the right industry groups or companies.

VALUE SPOTTING

Sound fundamental analysis will help identify companies that represent a good

value. Some of the most legendary investors think long-term and value. Grahamand Dodd, Warren Buffett and John Neff are seen as the champions of value

investing. Fundamental analysis can help uncover companies with valuable

assets, a strong balance sheet, stable earnings, and staying power.

SWING TRADING:-Swing trading is commonly defined as a speculative activity in financial markets

whereby instruments such as stocks, indexes, bonds, currencies, or commodities
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are repeatedly bought or sold at or near the end of up or down price swings

caused by price volatility. A swing trading position is typically held longer than a

day, but shorter than trend following trades orbuy and hold investment strategies

that can be held for weeks or months. Profits can be sought by engaging in either

long or short trading.

SWING TRADIND TECHNIQUE:

Swing trading is learning how to enter trades with minimal risk and managepositions according to the markets' subsequent behavior. It does not try topredict an outcome in the same way pattern recognition does. The last piece ofinformation the market gives us is the one from which we are going to make ournext decision. Here is the type of information we are interested in:

1) Is the market is making a higher low or lower low? A higher low confirms

support.2) How much higher or lower is the next low? The distance between these twopoints indicates your degree of trend.

3) What is the length of the last swing relative to the previous swing? A shortswing precedes a reversal. Longer swings signal to enter on retracements.

These same rules apply to all time frames. The classic rule on volume and openinterest also apply as increasing volume/open interest confirms a swing anddecreasing volume/open interest signals a reversal. Swing trading is following themarket's most probable course of action and sticking to the rules. The firstobjectives are trading on tests of previous highs/lows. When buying a lower low,

exit more quickly. There is no confirmed support. Conversely, when selling ahigher high in a uptrend, buy the retracement. In an uptrend, expect tests of thelows to be higher tests and for the highs to penetrate. Just as we enter on testsof lows/highs, we look to exit on the tests in the other direction. We look to exit inthe direction of our swing, before the price reverses. If the market does not dowhat is expected, exit on the first opportunity. This is important. Risk should bedefined by the last swing point. Always define your risk before entering amarket. Never average a losing position. Never add a second position the shortside. Downtrend swings tend to sharper and faster than uptrend swings. Lastly, ifthe market loses its swings or if they are small, don't trade.

Swing trading strategiescan be formed so as to increase your chances of getting

some profits in your trades. Not everybody follow a particular strategy, allsuccessful traders have made their own strategies from experience they havegained over years. It is highly suggested that you should start practicing swingtrade at a slow pace so as to make your foundations strong. Once you are ableto speculate well, you can think of expanding and get your hands on morestocks. This way, you are going to make good swing trading strategies at the endof the year, when you have already gained a lot experience and have seen somany ups and downs in the market with your stocks.
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SWING TRADING STRATEGIES:The goal of swing trading strategies is to enter high probability trades in thedirection of the major trend. Swing traders typically do not counter-trend trade, or

go against the flow. By going with the major trend, you are following the smartmoney. Following the smart money greatly increases your chances of placingwinning trades. There are three main processes of any swing tradingstrategy.

STEP 1: IDENTIFY THE TREND

Trades should ideally only be placed in the direction of the main trend. Trendscan be identified using a variety of different tools from price action to indicators).

STEP 2: WAIT FOR A PULLBACK

Once the main trend has been identified, you should be waiting or looking forsome kind of pullback. Swing traders want value; they are looking to enter a

trade when they believe the market has dropped down in price to a level that theysee as good value before entering. By trading pullbacks to an area that offersbetter value, swing traders once again increase their odds of entering a profitabletrade by making sure they get in at a good price.

STEP 3: PLACE THE TRADE

With the trend correctly identified price at a level which is in your favour, you cannow place your trade.

It may sound simple, but this is exactly what the major banks and market moversdo. This is how they manage to stack the odds in their favour and survive longerin the markets and make more money than 90% of other traders.

THE SWING TRADE ADVANTAGE:

Here's an example of what a swing trade is and how this method could help

enhance your trading success:
http://www.google.com/url?q=http%3A%2F%2Fwww.swingcurrency.com%2Fswing-trading-strategy%2Fpullback-trading-entries%2F&sa=D&sntz=1&usg=AFQjCNG0Z8KfiZFLepKoo67Blz3wPm4L9ghttp://www.google.com/url?q=http%3A%2F%2Fwww.swingcurrency.com%2Fswing-trading-strategy%2Fpullback-trading-entries%2F&sa=D&sntz=1&usg=AFQjCNG0Z8KfiZFLepKoo67Blz3wPm4L9g


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A SWING TRADING EXAMPLE: A swing trader looking at this chart

might have made the following analysis and ended up with a 20% profit in 20

days.

The chart above is a swing trader's map to making money. Swing traders use

charts like this one to manage their entry and exit points and maximize theirchances for the highest profits. The trick is to buy in one of three places: At the

bottom of the channel, within narrow bars at the top of the channel, or right above

the channel if the stock breaks through.

See how a late September rally pushed Microsoft through its 50-day moving

average (MA) into resistance at the 200-day MA.

A swing trader might plan an exit near the 200-day MA, and if it works, he may

come away with good profits that wouldn't necessarily be found by other trading

strategies. In this example, an alert swing trader could have bought at channel

bottom, just around 52, and sold when the stock reached the 200-day MA, just

above 62, for a 20% profit in just 20 days.

Charts like these are familiar to veteran swing traders. What may not be so

familiar to you is Alan Farley's brilliance in finding where he believes the profits

are hidden in those charts before they play out. But then, he's been doing it

awhile...


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CONCLUSION

According to my topic strategies for trade in cash and delivery, the

best strategies are technical and fundamental trading. And these strategies are

very useful in near future.

T.Y.B.B.A. practical training is essential part of circular the importance

and usefulness. The importance of such training is very needed by us to get andpractical expose to real and working firm.

KOTAK SECURITIES LTD. is the perfect firm for me to undertake the

task of training. The atmosphere was nice and pleasant.presense of such people

who are ready to sacrifice their precious time in order to assist me and to meet


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our work simple. The staff of Kotak securities ltd. was very supportive and co-

operative which provided to be boon for us.

At the end of my practical training at Kotak securities I feel

accomplish of real essence which had to be maintained for my practical training.

I was greatly delighted while visiting this company. The rapid growth

and that development are due to the dedication and hard work of the

subordinates of this organization.

BIBLIOGRAPHY

WWW.KOTAK.COM

WWW.KOTAK SECURITIES.COM

Icharts

Times of India

Securities and portfolio management
http://www.google.com/url?q=http%3A%2F%2Fwww.kotak.com&sa=D&sntz=1&usg=AFQjCNEBuasIbk2nL30FNIpzlQevwGfmIghttp://www.google.com/url?q=http%3A%2F%2Fwww.kotak.com&sa=D&sntz=1&usg=AFQjCNEBuasIbk2nL30FNIpzlQevwGfmIghttp://www.google.com/url?q=http%3A%2F%2Fwww.kotak&sa=D&sntz=1&usg=AFQjCNGmxefQMj5SycBGq8mfnCHxMgwWtQhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotak&sa=D&sntz=1&usg=AFQjCNGmxefQMj5SycBGq8mfnCHxMgwWtQhttp://www.google.com/url?q=http%3A%2F%2Fwww.kotak.com&sa=D&sntz=1&usg=AFQjCNEBuasIbk2nL30FNIpzlQevwGfmIg


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APPENDIX