TRADING & INVESTMENT IN INDIAN STOCK MARKET

PRESENTED BY SK.NASIM ALINCFM REGN. NO.000000479439(NSE)

INTRODUCTIONCAPITAL MARKET,FNO MARKET,COMMODITY MARKET.SHARES,SCRIPS,STOCKS,BONDS,GOVT.SEC.,ETF’S,FNO

CONTRACTS IN STOCKS,BULLIONS,CRUDEOIL,BASE METALS,GROSSERY AND AGRO SCRIPS,CURRENCY, ETC. ARE TRADED.

PRIMARY MRKT.SECONDARY

MRKT.

INDIAN SECURITIES

MARKET

INDIA’S LEADING STOCK EXCHANGES WHAT ARE STOCK EXCHANGES? ORGANIZED MARKET PLACE OF SECURITIES FOR THE

TANSACTION OF ORDERS BY TM’S.

LEADING STOCK EXCHANGES IN INDIA NSE & BSE

APART FROM THESE THERE ARE MANY OTHER REGIONAL STOCK EXCHANGES:

KOLAKATA,CHENNAI,MAGADH,PUNE,BHUBANESWAR,AHMEDABAD,BANGLORE,COCHIN,COIMBATORE,DELHI,GUAHATI,HYDERABAD,JAIPUR,LUDHIANA,MP,MANGALORE,MEERUT,SAURASRTA KUTCH,UP,VADODARA.

THESE ARE CONNECTED THROUGH VSAT’S.

OTHER STOCK EXCHANGES: MCX,NCDEX,ICEX (COMMODITY FUTURES ARE TRADED HERE.EX.:BULLION

STOCKS,BASE METALS STOCKS,GROSERRY PRODUCTS,CRUDE OIL,CURRENCY,ETC.)

NSE & BSEPRIMARY INDICESNSE:NIFTY(COMPRISES OF 50 STOCKS)OTHER INDICES: S&P CNX IT,BANK NIFTY

BSE:SENSEX(COMPRISES OF 30 STOCKS)OTHER INDICES: METAL,POWER,REALTY,CG,FMCG,FMCD,AUTO

USES OF INDICES: MEASURING MARKET TRENDS DEPENDING UPON THE GENERAL

STOCK PRICE MOVEMENT.

LISTED STOCKS IN NSE:1500+LISTED STOCKS IN BSE:6000+(ONLINE TRADING COMMENCED ON JUNE 01,2000)

MARKET BASICS(ELECTRONIC TRADING)

INVESTORS TM FIRMS STOCK EXCHANGES DEPOSITORIES

TRADING IN CAP.MRKT.NEATTRADINGS ARE MDE THROUGH VSAT’S.ORDER DRIVEN MRKT.TRDING SYS. OPERATES ON A STRICT PRICE & TIME

PRIORITY

NORMAL MARKET; REGULAR LOT MRKT. ODDLOT MRKT. RETLDEBT MRKT. AUCTION MRKT.

SS SYS: SELL FIRST ,THEN BUY IT.(ON AN INTRADAY BASIS,IF NOT

SQARED OFF WITHIN THE DAY, TRADES ON THE PARTICULAR SCRIP WILL GO ON AUCTION,PENALTY UPTO 20% WILL BE CHARGED)

CIRCUITS: UPTO 5%,10%,20% ON STOCKS AND 10%,15%,20%, ON INDICES.)

TRADING SYS.MARKET OPENING:9:15 AM.MARKET CLOSING:3:30 P.M.OFF MARKET CONTINUES TILL 4:00 A.M.

TRADING CHART OF NIFTY

TRANSACTION CYCLEPLACING ORDERS

TRADE EXECUTION

CLEARING OF TRADES

SETTLEMENT OF TRADES

FUNDS/SEC.

CLEARING & SETTELMENT MECHANISMNSCCL CLEARING & SETTLEMENT MECHANISM INVOLVES; NSE,CM’S,CB’S,DEPOSITORIES. T+2 ROLLING SYSTEM FOR PAY IN/PAY OFF OF

FUNDS/SEC(WITH EFFECT FROM APRIL,2003). AUCTION & SHORT DELIVERY SETTLEMENT

DEPOSITORIES NSDL CDSL

ACCOUNT MAINTAINED BY CLIENTS: POOL A/C DEMAT A/C.

BROKERAGE(CALCULATED DEPENDING UPON INTRADAY & DELIVERY BASIS)

MAX. BROKERAGE 2.5%SUCH AS .0002% IN INTRADAY & .002% IN DELIVERY BASIS.

TRADING IN FNO SEGMENT ALL ARE IN THE FORM OF CONTRACTS. CONTRACT VALITY;3 MONTHS(N.M,M.M,F.M CONTRACT) EXPIRY DATE :LAST THURSDAY OF EVERY MONTH; NO PRICE BANDS/CIRCUITS. TRADED IN LOTS. LOT QUANTITY SPECIFIED BY THE EXCH. VALUE OF THE LOT QUANTITY MUST BE >RS.2,00,000. SS TRADES CAN BE KEPT UPTO 90 DAYS. AVAILABILITY OF SPAN MARGINS,SPECIFIED BY THE

EXCHANGE. SPECULATION,HEDGING,ARBITRAGE ARE DONE HERE. HEDGES ARE DONE WITH OPTIONS.

FNO SEGMENT TRADING OPTIONS ARE OF 2 TYPES;CALL OPTION & PUT OPTION. ITM,ATM,OTM OPTIONS NEED TO PAY THE FULL PREMIUM MONEY,NO CHANCE OF

GETTING LIMITS OR MARGINS.

NSCCL: CLEARING & SETTLEMENT ARE DONE ON T+1 BASIS

BROKERAGES: NO VARIATION OF BROKERAGES DEPENDING UPON INTRADAY

& POSITIONAL BASIS.BROKERAGE COMPUTED AS ON INTRADAY BASIS.

SEBI IPFREFERENCIAL WEBSITES1.NSEINDIA.COM2.BSEINDIA.COM3.MCXINDIA.COM4.NCDEXINDIA.COM5.NSDL.CO.IN6.CDSL.CO.IN7.SEBI.GOV.IN8.KANTILALCHAGANLAL.COM9.MARKETBHAVISHYA.COM10.NIFTYLIVECHART.BLOGSPOT.COM11.INDIABESTSHARES.COM12.SHAREINFOLINE.COM13.ICHARTS.COM14.MONEYCONTROL.COM

REFERENCIAL TV CHANNELS;CNBC TV 18,CNBC AWAZ,NDTV PROFIT,BLOOMBERG UTV,ZEE BUSINESS,ET NOW.

REFERENCIAL ANALYSTS:ASWINI GUJRAL,RAJAT BOSE,E.MATHEWS,TAMRE,D.CHAWHAN,

MY INVENTED FORMULATHIS FORMULA IS USED ON AN INTRADAY

BASIS:BUY ABV.={(H-L)/2}+L; SL={(H-L)/3}+LBUY ONLY WHEN:1.THE MRKT AND THE SCRIP BASED INDEX IS +VE.2.THE BUY LEVEL IS ABV. THE OPEN,CLOSE & AVRG.3.HEAVY VOLUMES ARE THERE

SELL BELOW={(H-L)/3}+L ; SL={(H-L)/2}+LSELL ONLY WHEN:1.THE MARKET & THE SCRIP BASED INDEX IS –VE.2.THE SELL LEVEL IS BELOW THE OPEN,CLOSE & AVRG.3.HEAVY VOLUMES ARE THERE

(N.B.:METASTOCK S/W IS USED FOR CHARTING)

THANK YOU