Indian Stock Market

Introduction
India has the largest volume in stock trading. It is very difficult to make money in India by investing in stock markets. With a total of more than 5000 companies listed in NSE and BSE, the most important choice of choosing the company whose shares are to be bought becomes increasingly difficult. Once decided on the stock, one need to time the market as or long term investment are done to get a good profit on the investment. A trader should always have the eye for the investment. He has to follow the valuations at which to buy or sell. When we talk about the Indian share market, we talk about two exchange points: 1) Bombay Stock Exchange (BSE): The BSE was set up in the year 1875 and is the oldest stock exchange in Asia. It is located on Dalal Street, Mumbai. It has around 3500 companies and has the most number of trading volume. There are over 5,085 listed Indian companies on the stock exchange as per the June data and the Bombay Stock Exchange has the most significant trading volume. The BSE SENSEX, also called BSE 30, is a widely used market index in India and Asia. 2) National stock exchange (NSE): It is Indias leading stock exchange covering various cities and towns. It was set up on 1956. It is operating on the wholesale debt market, the capital market segment and the derivative market. Following are the capital market segments NSE has undertaken: Equity Futures and Options Retail Debt Market Wholesale Debt Market

 Currency futures Mutual Fund Stocks lending and borrowing The NSEs key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities

Recent developments in Indian Stock Market:

1) New measures of risk management system: a) Reduction of price volatility: To reduce this, the derivatives products, index options, futures were introduced. b) Placement of circuit breakers c) Intraday trading limit d) Mark to market margin 2) Investigations in case a company violate any law. 3) Investor awareness campaign 4) Ban on insider trading Trading in Indian stock exchanges is limited to listed securities of public limited companies. They are forward list and cash list. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian stock exchanges in the very recent times.

Understanding the Stock Market

To understand the stock market one has to understand what a stock is? Simply put, a stock is a share in the overall ownership of the company. If you have a stock of a company, you have that much claim on the companys assets and earnings. Shares, stocks, equitys they all mean the same. Earlier, a stock was represented by a stock certificate which gave you the proof of your ownership. So to trade these stocks one had to go to the place himself and trade these which were very troublesome. In present day scenario, everything is kept electronically, so no physical certificate is issued. But, instead of knocking at every door to search for a mutual stock trade interest, the stock market came into being where all the trading is done at one location. A stock market is network of transactions to facilitate the exchange of a company stocks or derivatives at an agreed price. It is a centralized platform where all the buyers and sellers of a stock come together and trade on the basis of some agreement. When a company needs certain surplus amount of money, it sells a part of its ownership in the form of a stock. This helps the companies to expand financially by selling shares of ownership of the company. The money got in exchange is used by the company owners to expand. The stock market is one of the major indicators to know the growth of an economy. If the stock market rises, the economy is said to be growing and

vice-versa. Value stock investing is a method that involves purchasing stocks that are going at prices below their worth. Value investors search out stocks the market has under priced and selling them when they are at a higher price. There are certain fields that influence the stock market prices. These factors are change in economical fundamentals, sector changes and market swings. The other major factor could be the demand and supply balance. There are many theories formulated for the behavioral trend of the stock market but till this date it is highly irrational. To fully understand the stock market, you have to know the economical and financial trends of the companies and many other factors. But in the end it all depends on the how well an individual understands this.

Methods Used For Stock Analysis

There are two types of investors. One set those who do not understand what stock market is or think it just too risky and therefore remain satisfied by buying mutual fund or certificates of deposits. The second group understand what stock is and also to analyze them before investing on them. There are basically three ways in which stock analysis is done: 1. Fundamental analysis 2. Technical analysis and 3. Quantitative analysis n Fundamental analysis, the investors study the stock as a business. This is because they are buying a part of a business of that company. Therefore they try to find out the value of that business and try to find out what worth that stock is. This is done by assessing the financial per value share of the business.

The few things that an analyst has to look into this type of analysis are value, growth, income, GARP (Growth at reasonable price) and quality. In Technical analysis the investors look only at the all the financial details available in the market which are disclosed by the company and then try to figure out whether it is a good buy or not. To do this the use different tools such as point and figure charts, logarithmic chart, Japanese candlestick and so on. The technical analyst also tries to study the psychology of the investors at a particular time. Quantitative analysis as the name suggest is purely based on numbers. It does not believe in things like business, management expertise, competition, market potential etc. This is because analysts following this method think that these parameters are subjective and are inferred in varied manner by the investors. Their main concern is the company size. Investors might adopt screen base investing. In this method they apply some filters on the numbers, like company momentum which takes into account companies that are doing well for a few quarters or CANSLIM in which C and A stand for current and annual earning, N new product, S and L for small and large volumes, I for institutional ownership and M for market momentum. All these factors are used to decide the buy and sell of a company. A blending of all the above methods would work best for investors. To invest knowledge about the company and its business value is necessary. Use charts and graphs to buy and sell stocks.

Point And Figure Charts

A point and figure chart is a charting technique used in technical analysis. Unlike plotting price against time in other techniques, it plots price against change in direction by plotting a column of Xs as the price rise and a column of Os as the price falls. The technique is hundred years old and was first written and showed by Hoyle in his book in 1898. The first book/manual dedicated to point and figure was written by Victor Devilliers in 1933. There was a time when traders kept track of price rise by writing them in columns and later referred to them as figure charts. They also used Xs instead of numbers and these charts came to be known as point charts. Traders started using both figure and point charts and therefore the technique came to be known as figure and point chart. It is difficult to draw a figure and point chart for a large number of stocks. chartists Therefore use the

summary prices at the end of each day. Some prefer to use the days closing price and some use the days high or low depending on the direction of the last column. The charts are prepared by deciding on the value of Xs and Os. Any change below the decided value is ignored. So figure and point chart act as filters to filter smaller price change. The chart changes columns when the price changes

direction by the value of a certain number of Xs or Os. The most commonly used is the 3 box reversal chart. Figure and point charts are drawn on squared papers and therefore 45 degree lines may be used to indicate up trends and down trends from important highs and lows in the chart allowing objective analysis of the trend. It is used to study price target, both vertical and horizontal. The vertical method measures the length of the thrust and horizontal method measures the width of a congestion pattern for price target.

Day Trading Secrets

Millions of people involve in day trading every day and it has become like horse-racing now. Since a trader has only few hours of time to book his profit or loss, the day trading is too sensitive to play Day Trading Secrets reviews the patterns which are better captured with the human imagination. The imagination can better integrate research results from proven trading systems and patterns to improvise optimal trades. Some of the day trading secrets has been listed as below: 1. Markets will react to each other: World markets will react to each other every day. That means, if the U.S Markets fell yesterday night, as a chain reaction, the Asian Markets may also fall today, and vice versa. So, before your market opens, you have to check how the markets on the other side of the globe closed last night. Though your Market indicators are good, always check what happened last night in the globe.

2. Market bounces after every fall. There is a 80% chance that the fallen market may bounce on the very next day. Suppose, if you buy a stock item today and it went down so worse, and then dont sell it by booking loss. If your stock is listed under BTST (Buy Today Sell Tomorrow) or ATST (Acquire Today and Sell Tomorrow) in BSE or NSE (India), then you can sell your stock the next day, instead of selling on the same day. 2. Short-sell at big Market Fall Usually, traders stay away at Market falls. Actually, it is the great time for Day Traders. If you are very sure that the Market will start falling throughout the trading session, then go for short selling. That is, in the morning, you sell your stocks (without actually holding them) and in the evening, you buy them. The difference is your profit. 3. Use very less % of your portfolio for Day Trading. To say the truth, the market experts advise not to do Day Trading. Because, they leaned that there are always huge number of losers in Day trading than beneficiaries. Even, Portfolio Experts advise that 50% of your portfolio money should be allotted for long term investment. 25% of the money should be invested for short term. Rest, 25% money should go for very short term trading like Day Trading. Because, the risk in short term and day trading is higher than that of long term investment.

Advantages of Online Trading

Online trading have always attracted dealers who incline towards investments with higher returns. Although threat aspect is high, the returns are relatively a lot more than other investment opportunities. As the investment technology is advance and new, investor can put orders to purchase and sell the stocks in the comfort of his home and workplace. Trading online is the best thing to do when you have invested a lot of money because you need to have the right information in order to be able to trade properly. There are so many advantages of online trading let us have a look: You can buy or sell the shares anytime, according to your convenience. It is far better than long term investment that includes property and gold business. You can make changes any time in online trading. You can always log in to your account anytime and view how your shares are fairing in the market anytime you want. This enables you to be aware of the performance of your investment instead of having to wait for reports in the mail that may not come as often as you would like. If you are associated with a firm, then they will also give you the details of all your binary options and the rates of shares updates on all the status of the market within an hour. You are also free to make your own decisions about buying or selling stocks instead of relying on your broker to execute a certain trade you might be interested in.

When you do transactions online, all it takes to be able to buy or sell stocks is a single click of the mouse. Through this, a quicker exchange can be made, which may also ensure faster earnings. The stock market is not for the weak hearted. There is definite amount of risk involved while dealing with any venture but the stock market is quite different. Both the profit and loss is unpredictable. But if you have ample of knowledge, you will definitely avoid loss to be a big extend. With the many benefits of online stock trading, buying or selling the stocks through the Internet can certainly be a great way to participate in the stock market. Keeping in view the advantages and disadvantages, only then one should start the online trading. As knowledge about the trade is a key factor to achieve success.

Indian Stock Market Research

5-Yr Factsheets & Analysis Of India's Leading Companies

STATE BANK OF INDIA Price History Price Mkt Cap Vol P/E P/CF EPS (TTM) Rs Rs m '000 210.5 X X Rs 10.1 1.6 163.0 % ch week % ch 1-mth % mth 52 H/L week Rs 2,469.3/1,452.9 ch % % 4.5 7.3 -25.3 1,644.8 1,125,058 No. shares % ch % -1.8 of m 684.03

12- %

Compare & Find The Better Stock

Recent Stock Market Reviews