A PROJECT REPORT ON STUDY ON THE COMMODITIES

TRADING (GOLD&SILVER) WITH REFERENCE OF

SHAREKHAN LTD

SYNOPSIS
ABSTRACT

A study has been conducted on the “STUDY ON THE COMMODITIES TRADING” in the
SHAREKHAN LTD, Hyderabad Branch.
Share Khan provides financial and advisory services including wealth management, investment
banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds
and insurance - all of which are supported by powerful research teams.

The basic objective of the study is the how much investors are preferred to invest in the
commodities trading (gold& silver) and to understand what are the reasons behind investing in
the commodities market.
This project report includes profile of the Share Khan securities ltd, it contains brief introduction,
nature of the business, and product profile.
This report includes the findings and conclusions of the study done in order to give the better
suggestions.
This study has done by conducting and analyzing the survey of the target clients in the
Hyderabad city.
For the analysis of data the gold & sliver package(14 Days) is used and using the simple bar, line
graphs shows the data.
Finally the study is helped to me in many ways to acquire the knowledge about the trading in the
stock exchanges and also customer behavior in doing the survey.
INTRODUCTION

INTRODUCTION TO THE COMMODITY MARKET

In modern day investing commodity trading has emerged as an important element in the way
people invest and speculate. It was developed as a reaction to the way business is conducted, and
it continues today in the form of online commodity trading. Many people know how to turn their
business into a profitable venture, and it is commodities and futures trading that help them get
there. Simply put, commodities are items like wheat, corn, gold, Silver, and crude oil. When
farmers take their crop to the “market”, they are selling commodities.

The upside potential of trading in commodities is unlimited, and you can control the downside.
You can trade in commodities on a part-time basis or on a fill-time basis. You can spend as little
as an hour or two a day, yet earn a full-time income.

Commodities are fascinating. Most of those who become traders, even with a very small account,
never stop following the markets. Many of those who trade in commodities are average, hard-
working people who are trying to supplement their income and trade on a part-time basis.

In the recent past, investors have shown increasing interest in commodities, which as an asset
class can offer opportunities to fine tune a portfolio’s risk and return characteristics. As of
March, 31,2009, nearly $75billon is invested in allocations tracking commodity indexes. The low
correlation to financial assets, equity-type return, and risk diversification characteristics provide
investors an opportunity to diversify their portfolio with commodity derivatives.
 Need for the Study:

 To know the fluctuations of Bullion market in India.

 To get overview of commodity trade of bullion markets in india
 To know on line trading of commodity exchanges

Objectives of the study:

 To study the Multi Commodity Exchange of India ltd.

 Comparison the analysis between “Gold & Silver”.
 To identify the Risk & Return analysis.
 To find the relative importance of gold & silver
 To get insight knowledge about commodity market.


Scope:

 Study includes introduction to commodity market, in India with specific to measure the
exchanges in Gold & Silver.
 Study also includes the understanding of how the “MCX” market are traded on the on
line basis.
 METHODOLOGY OF STUDY

The methodology of data collection pertains to information to how the data is

collected i.e. either from primary sources or secondary sources. It explains the methods
utilized and the instruments used in data collection.

SOURCES OF DATA

The sources of data can be classified in two categories:

 Primary sources
 Secondary sources

PRIMARY SOURCES

The primary data are collected by the detailed discussion was conducted with the Branch
Manager of Share Khan and Intractions was carried with the Commodities investors
(customers).
And the discussion was carried out with the college internal guide, who helped in
developing the objectives and validating their conformance to the ethical framework of the
project.

SECONDARY SOURCES

I used secondary sources also for collecting the data. They are:
 Information from the text sources
 Information form the internet sources
 Information from the materials provided by the concern
 SCOPE OF THE STUDY

 The Scope of the Project is Limited to bullion market on the basis of Gold Price using
Exponential Smoothing and Holt winter model only. There are other analytical models
existing but they are not considered during the course of study
 The study mainly focuses on Indian bullion market, its history and latest
Developments in the country in bullion market very fastly.
 The study also keeps a birds eye view on global bullion market and its mainly
Developed in London
 The study vastly covered the aspects of bullion trading, clearing and settlement by
Various exchanges
 Mechanisms in Indian bullion exchanges.
 The study also provides regulatory framework for commodities market in India.

LIMITATIONS

1. The data collected was basically confined to secondary sources with very little amount of
primary data associated with the project.
2. The detailed study of the topic way not possible due to the limited size of the project.
3. The availability of information in the form reports and price fluxtions of the company
was a big constraint to the study.
4. The time period taken for doing the data analysis has been taken To September 2013 to
November 2013.
5. The data for doing this report has been collected from internet, company websites boo

The date for payment in the case of purchase of commodities by the Constituent will be viewed
on the day to day basis by the member and the same shall be intimated by the member to the
Constituent either telephonically or otherwise as required for maintaining