FinWiz Share Market Basics
For Beginners
Stock Market for Beginners
Agenda • Share market basics • Terminology • How to Trade • Practice on virtual terminal • Doubt clearing
Share market basics Share market : Buying and selling of shares is done
Major Stock exchanges In India NSE(National Stock Exchange) It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading NSE.(9:00 to 3:30)NIFTY BSE( Bombay Stock Exchange) It is the oldest stock exchange in Asia and has the largest number of listed stocks. It is located at Dalal Street, Mumbai.(9:00 to 3:30)SENSEX MCX(Multi Commodity Exchange of India Ltd.) Silver ,Gold, Copper & Natural Gas and Crude Oil (10:00 to 11:30) MCX
Why to invest in stock market? • You want to maximise your returns. • You want to beat inflation.
How to invest in stock market?
Brokers ď ś A broker is a party that mediates between a buyer and a seller. ď ś A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through agency firms on behalf of investors.
Renowned online stock brokers in India
Demat account ď śThe term Demat, in India, refers to a dematerialized account. ď śIn a Demat account shares and securities are held in electronic form instead of taking actual possession of certificates.
Flow chart 1:Open a Demat account
2:Attach with Broker or sub-broker
3:A computer terminal with ODIN software
4:Get User name and password
5:Login and trade shares
8: Buy ,share moves to Demat
6:Buy Or Sell
7:Sell, Shares moves out of Demat
Index • Mirror of the market • How the top companies are performing • Calculated by assigning weights to specific securities. Examples: Nifty 50 , Sensex , Bank Nifty, etc
NIFTY 50 COMPANIES 1 MARUTI
11 RCOM
21 DRREDDY
31 CAIRN
41 HDFCBANK
2 BHEL
12 HINDUNILVR
22 JINDALSTEL
32 SIEMENS
42 TATASTEEL
3 DLF
13 ACC
23 SBIN
33 POWERGRID
43 RELINFRA
4 BHARTIARTL
14 WIPRO
24 AMBUJACEM
34 TATAPOWER
44 RELIANCE
5 ITC
15 HCLTECH
25 ONGC
35 IDFC
45 BPCL
6 GRASIM
16 M&M
26 TATAMOTORS
36 SESAGOA
46 COALINDIA
7 ICICIBANK
17 BAJAJ-AUTO
27 LT
37 GAIL
47 KOTAKBANK
8 PNB
18 HDFC
28 JPASSOCIAT
38 RANBAXY
48 HEROMOTOCO
9 CIPLA
19 INFY
29 NTPC
39 AXISBANK
49 HINDALCO
20 SAIL
30 TCS
40 SUNPHARMA
50 STER
10 RPOWER
Bull Market
Bear Market
How Does Trading Terminal Look Like ?
Trading Terminologies
Delivery Vs Day Trading • When you purchase stocks with the purpose to hold them for more than a day is termed as Delivery trading. • When you buy or sell stocks for intraday with an obligation to square off your position in the market on the same day is known as Day trading.
Price • Last trading price • Open price • Close price • Day high • Day low • 52 week high/low
Order & Trade • Order: Bids you are putting into terminal. • Trade: Bids which are executed.
Important Terms • Market Price • Limit Price • Margin • Short Selling • Short Covering • Stop Loss
Basis of Trading • Fundamental basis: Analysing company accounts, business profitability by using ratios like EPS, PE, Book value to PE etc.
• Technical basis: Analyzing the historical price movements on the charts for identifying patterns in share prices.
`Questions & Answers
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5 Ways Of Growing Money • Business • Real Estate • Give Loan To Some One • Invest In Bank, Post Office
• Invest In Securities ( Share Market)
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