SUMMARY OF INTERNSHIP

Every day starts with current affairs and news discussions.

17/05/2018
Around 26 stock exchanges in India
2 major are NSE and BSE having Nifty and Sensex indices respectively.
Primary market and secondary market.
FACTORS AFFECTING STOCK MARKET
1. Positive or negative news
2. Sector specific news
3. Political stability
4. Interest rate
5. Economic outlook
6. GDP and inflation
7. Economic and political shock
8. Currency fluctuation

18/05/2018
Market related information
Initially market had different timings.
Stock market started with 11.30 to 2.30, later on changing to 9.55 to 3.30 then
to 9.00 to 3.30 now currently the exact stock market timing is 9.15 to 3.30
There are two markets. Equity market and derivative market.
Initially discussed about equity market
Equity market
Equity market begins at 9.15 and ends at 3.30
Pre-market time and post market time –
9.00 – 9.07 Order bidding process
9.08 – 9.12 Order matching and executing time
3 mins of buffer time where in nothing happens
9.15 regular market begins.
Post market after closing from 3.30-3.40 is blank time
3.40 to 4.00 again market opens and all the orders which are pending or left out
are executed at the last have an hour average closing price.
There is no guarantee of both buyer and seller being available. There is no
fluctuation in prices.
Currency market begins from 10.00 to 5.00pm
Commodity market begins at 10.00 to 11.30 and 10.00 11.55 for rest 6 months
In commodity one type market i.e. METAL: deals with bullions, gold, silver,
lead copper etc and energy market with Natural gas, crude oil etc.

After market our order

This is the facility given to the customer where in customer can give order
in advance at 11.00 pm next day at 9.15 it will get executed if at that price
its availed
Types of trading
- Intra Trading: Same day we buy and same day we sell.
- Delivery: buy today sell it tomorrow or future
- Short selling: if equity Is sold without buying it first, you need to cover
that day only

Trading cycle
Equity Trading day
T + 2 days
If anyone wants to buy share at least 1/4th amount should be available in
account.
As a broker more leverage so it can be T+2+5 days also.
If the shares are at risk and account shows negative balance this rule is not
applicable
5 days or the extra period given by broker, interest is charged at 18% annually
Exposure
For delivery 1:4 ratio and for intraday 1:10 ratio
Big trade in that intra day 10 times margin and in delivery day 4 times margin.
This means an individual if he has in his account 10000 he can buy stock upto
4 times that is 40000 and intra day the individual can buy 10 times that is if
10000 in his account he can buy stock upto 100000.
In big trade by 3.15 if a person has purchased shares he has to sell or vice versa.
If he is unable to do it then the system will automatically square off
DP to Margin facility:
Shares can be mortgaged at haircut value or exchange to buy other shares after
that T +2 days also can be applied.
Also for this EMF i.e. Exchange margin fund form has to be signed.
Note: Good shares can give you margin but you need to clear your position
within t+2 days and this position can be prolonged. We can say this is kind of
loan only if profit cn go long
For my understanding example from google
(Example you have 10000 rs in account and 5 different companies large cap
stocks in your demat account (market term DP for demat )
Now assume that you want to buy new share worth of 5 lacs, since your balance
is 10000 you cannot buy .

But what broker do , against your shares in Dp he will give you 40% to 50%
depend on excahnge haircut, limit . To get this limit you need to transfer shares
from demat or dp account to Margin account . This is known as DP TO
MARGIN
Once you transfer share your balnce will increase and you will able to buy
additional shares .

but pls understand risk , since you hv not put your money and you have transfer
shares matket gose down broker risk system can sell this stocks . Second your
actual account will go in debit so broker can charge small intrest on it after 2
days of settlement .)

CORPORATE ACTION (IN ADDITION TO TRADE)

 ● Sometimes companys declare bonus. So if I’m holding 100 shares and
company declares 1:1 ratio bonus then my shares will be 200 but price of
each share will drop by 50%
So value remains same but no of shares raise.
Faevalue wont change but the proportion gets higher!
( bonus is issues if the company wants to gain liquidity)

● Dividend is given by company to shareholders when they gain more

profits
● Right to issue: When company wants to raise funds shareholders are
given first preference to issue shares

MARKET TREND
● Upward trend: when the stocks are gaining more profits and moving
upwards
● Downward trend: when the stocks go down to negative
● Consolidation trend: rest phase where in you can predict what will
happen in market so you wait or it is also called as rest phase.
● Range bound: where in the stocks are fluctuating in a particular range
they remain in a particular range ( EX: 1020 – 1022)

SUPPORT AND RESISTANCE LINE

MARKET CAPITILISATION: Company’s O/s shares * Price of each share
STOP LOSS It is very important. This saves you from extreme risk.
CIRCUIT: Sebi has applied circuit where a stock cannot rise beyond 20% or
drop below 20% in a day.
BROKERAGE: intra day = 0.03% and delivery = 0.3%

19-05-2018
Trade tiger- online platform of sharekhan
( Link: https://www.sharekhan.com/sharekhan-products/trade-tiger )
Brief description about how sharekhan customers can use their online site to
have check on their portfolio.
Each and every customer is given his/her own login id and password.
This site is very helpful as it gives many facilities to the customer
● If a customer has to see any order status (whether order is pending or
settled) they can see on ORDER REPORT option.
● NET POSITION shows the profit or loss earned by the customer on the
settlement of the stocks according to the market position.
● LIMIT STATEMENT this will show customer limit to trade or will show
margin up to which a customer can trade.
● SCRIPT SUMMARY this will show the summary of customers dealing
in different types of shares.
● BILL SUMMARY will give them bill accordance with the particular date

Annual maintenance charges , charged by sharekhan is 450 Rs

3 PRODUCTS OFFERED BY SHAREKHAN TO CUSTOMERS

READY TO INVEST EXCESS CAPITAL TO GAIN RETURNS!
There are individuals who hold large amount of capital but do not have
enough time to invest or deal in stock exchange and gain returns.
Sharekhan offers 3 products to such customers who can gain returns and
sharekhan research team handles the portfolio as these investors do not
have enough time to take care of their portfolio

1. Topic Portfolio: This is a portfolio scheme offered to customer

where in minimum ticket size is 5lakh.
The characteristics of this portfolio is:
▪ Minimum of ticket size of investment amount must be 5lakh
▪ 0.5% brokerage charges + statutory cost
▪ 18% GST
▪ 12 scripts filtered by expert research team of sharekhan.
▪ They switch to other script when the share value falls by 20% as
It affects the return of the portfolio
▪ Separate d-mat account is supposed to be opened where
investors can see their topic holdings
▪ Controlled and monitored by head office and experts, absolute
no role of broker.
▪ Basket of 160 sound companies is considered out of which 12
stocks or scripts are chosen or considered.
▪ Balance and diversified portfolio by expert team of sharekhan
 ▪ Capital is invested in 80:20 ratio.
80% in large cap companies and 20% in mid cap companies
▪ No lock in period
▪ Account opening charges D-mat 499
▪ AMC takes 1% of 5lakh also as fees
▪ If a customer is in need of money and wants an amount like
10000 or 20000 he can withdraw only when the account
reaches minimum of 550000.
▪ Withdrawal of money has to be done in multiple of 10K
▪ Frequency of review report is monthly
▪ BLAKE OUT DATES: account Is considered to be starting fro
1st of every month

2. Power portfolio:

Characteristics:

▪ 10 best scripts of the day.

▪ The capital totally is invested in large cap companies
▪ 30% investment in each sector not more than that
▪ Tolerance is 20%
▪ Ticket size is again 5lakh
▪ Other charges being same
▪ Client involvement is little more as churning is more

3. Star portfolio:

Characteristics

▪ 15-20 scripts
▪ Multicap investment
▪ 10% weightage on each script
▪ Benchmark is done with both nifty and sensex