Upload
siddheshwari-sisodia
View
215
Download
0
Embed Size (px)
Citation preview
7/29/2019 Training Day-1 Stock Market
1/33
www.trueTrader.com Agile&Pure Systems
WELCOME TO THE
TRAINING WORKSHOP
By Sameer Vartak
.
7/29/2019 Training Day-1 Stock Market
2/33
DAY 1:-BASICS OF STOCK MARKET
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
3/33
What is Stock Market ?
Market of financial transactions. Just like a grocery market.
You get different types of companies.
Like financial/ Engineering/ Banking/ infrastructure/
consumer durable etc.
You get the ownership of the company.
As a company grow your value grow, i.e. share price
grow.
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
4/33
Types Market
Two types of Market.
1.Primary market- Through IPO (Initial Public Offering)
2.Secondary Market
- Largely traded on NSE/ BSE in India
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
5/33
No 1 market in the World at par with NASDAQ.
Totally virtual market.
Servers placed at Mumbai bandra / kurla complex
NSE building.
Entry only to restricted people.
Called brokers/ main brokers.
They appoint sub-brokers.
Also direct clients.
Operations of Virtual Stock Market
7/29/2019 Training Day-1 Stock Market
6/33
Payment Done Delivery
7/29/2019 Training Day-1 Stock Market
7/33
How Transactions Takes Pace?
StockExchange
DepositsMoney for100 RIL in
BR2 Account
Brokertransfer
money toclients
Account
Brokertransfer
shares poolto clients DP
Deposits 100RIL to BR1
Pool Account
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
8/33
Online/ Offline accounts with broker
Online Accounts:
No manual interface.
Back office and trading platform interconnected
through software.
Offline Accounts :
manual interface.
Back office and trading platform connected.
manually through RMS.
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
9/33
What is RMS ?
RMS = Risk Management System
A person observers individual trading account with
position taken.
7/29/2019 Training Day-1 Stock Market
10/33
Various trading platforms
www.trueTrader.com Agile&Pure Systems.
NEAT- Broker terminal.
ODIN- Offline/ Online NOW- NSE Based.
Customized platforms-
India bulls Share khan
Religare
5 paisa/ Indiainfoline etc.
7/29/2019 Training Day-1 Stock Market
11/33www.trueTrader.com Agile&Pure Systems.
ODIN Screen and Data available
Stock name
Open
High
Low
Close (Previous Close)
Volume
LTQ
ATP
52 weeks High/ Low.
7/29/2019 Training Day-1 Stock Market
12/33
DP Operations
DP = Depository Participant.
Like bank- DP is share bank.
Have to take license from SEBI.
Major two depository
CDSL
NSDL
All depositories are interconnected like banks. Every broker has his pool account.
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
13/33
DP Operations
Unlike bank cheque transferor is responsiblefor transaction.
Transaction takes place in two types.
1. Market transactions:-
- through broker/ settlement number.2. Off market transactions:-
- Between individual.
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
14/33
Fundamentals
EPS
PE
CRR
Rapo rate
SLR
IIP Data
GDP Data
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
15/33
What is EPS ?
EPS = Earnings Per Share.
EPS is calculated by the following formula:
EPS = Net Earnings / Number of Shares
7/29/2019 Training Day-1 Stock Market
16/33
What is P/E Ratio ?
P/E Ratio=
Price per Share/Annual Earnings per Share.
The price per share in the numerator is the marketprice of a single share of the stock. The earnings pershare in the denominator depends on the type ofP/E.
The P/E ratio can alternatively be calculated by dividingthe company's market capitalization by its totalannual earnings
7/29/2019 Training Day-1 Stock Market
17/33
What is CRR ?
CRR = Cash Reserve Ratio.
Banks in India are required to hold a certain
proportion of their deposits in the form
of cash. However, actually Banks dont hold theseas cash with themselves, but deposit such case with
Reserve Bank of India
This minimum ratio (that is the part of the total
deposits to be held as cash) is stipulated by the RBI
and is known as the CRR or Cash Reserve Ratio.
7/29/2019 Training Day-1 Stock Market
18/33
What is CRR ?
Thus, When a banks deposits increase by
Rs100, and if the cash reserve ratio is 9%, the
banks will have to hold additional Rs 9
with RBI and Bank will be able to use only Rs91 for investments and lending / credit
purpose.
Thus, it is a tool used by RBI to controlliquidity in the banking system
7/29/2019 Training Day-1 Stock Market
19/33
What is SLR ?
SLR = Statutory Liquidity Ratio.
This term is used by bankers and indicates the
minimum percentage of deposits that the
bank has to maintain in form of gold, cash or
other approved securities.
Thus, we can say that it is ratio of cash and
some other approved to liabilities (deposits) It
regulates the credit growth in India
7/29/2019 Training Day-1 Stock Market
20/33
What is Repo rate ?
Repo (Repurchase) rate is the rate at which
the RBI lends shot-term money to the banks.
When the repo rate increases borrowing from
RBI becomes more expensive. Therefore, wecan say that in case, RBI wants to make it
more expensive for the banks to borrow
money, it increases the repo rate; similarly, if itwants to make it cheaper for banks to borrow
money, it reduces the repo rate
7/29/2019 Training Day-1 Stock Market
21/33
What is Reverse Repo rate?
Reverse Repo rate is the rate at which banks
park their short-term excess liquidity with the
RBI. The RBI uses this tool when it feels there
is too much money floating in the bankingsystem. An increase in the reverse repo
rate means that the RBI will borrow money
from the banks at a higher rate of interest. Asa result, banks would prefer to keep their
money with the RBI
7/29/2019 Training Day-1 Stock Market
22/33
Repo Rate and Reserve Repo Rate
Thus, we can conclude that Repo Rate
signifies the rate at which liquidity is injected
in the banking system by RBI, whereas
Reverse repo rate signifies the rate at which
the central bank absorbs liquidity from the
banks.
7/29/2019 Training Day-1 Stock Market
23/33
What is IIP & why is it so important
The products included for calculation of IIP
can be segregated into 3 major sectors
Manufacturing (79.36%),
Mining & Quarrying (10.47%) and
Electricity (10.17%).
7/29/2019 Training Day-1 Stock Market
24/33
What is IIP & why is it so important
Another way of categorizing the items used in
the calculation of IIP is a Use based
classification with categories like Basic Goods,
Capital goods, Intermediate goods, Consumerdurables and Non-consumer durables.
7/29/2019 Training Day-1 Stock Market
25/33
What Does GDP Mean?
GDP = Gross Domestic Product
The monetary value of all the finished goodsand services produced within a country's
borders in a specific time period, though GDPis usually calculated on an annual basis. Itincludes all of private and public consumption,government outlays, investments and exportsless imports that occur within a definedterritory.
7/29/2019 Training Day-1 Stock Market
26/33
What Does GDP Mean?
GDP = C + G + I + NX
where:
"C" is equal to all private consumption, or consumer
spending, in a nation's economy "G" is the sum of government spending
"I" is the sum of all the country's businessesspending on capital
"NX" is the nation's total net exports, calculated astotal exports minus total imports. (NX = Exports -Imports)
7/29/2019 Training Day-1 Stock Market
27/33
National Stock Exchange (NSE)
NSE
Nifty 50 - Nifty50 Companies list .
www.trueTrader.com Agile&Pure Systems.
ACC Ltd. Cipla Ltd.
Hindustan Unilever
Ltd.
Kotak Mahindra Bank
Ltd.
Ranbaxy Laboratories
Ltd. State Bank of India Tata Steel Ltd.
Ambuja Cements Ltd. DLF Ltd.
Housing
Development Finance
Corporation Ltd. Larsen & Toubro Ltd. Reliance Capital Ltd.
Steel Authority of
India Ltd. Wipro Ltd.
Axis Bank Ltd.
Dr. Reddy's
Laboratories Ltd. I T C Ltd.
Mahindra &
Mahindra Ltd.
Reliance
Communications Ltd.
Sterlite Industries
(India) Ltd.
Bajaj Auto Ltd. GAIL (India) Ltd. ICICI Bank Ltd.
Maruti Suzuki India
Ltd.
Reliance Industries
Ltd.
Sun Pharmaceutical
Industries Ltd.
Bharat Heavy
Electricals Ltd. HCL Technologies Ltd.
Infosys Technologies
Ltd. NTPC Ltd.
Reliance
Infrastructure Ltd. Suzlon Energy Ltd.
Bharat Petroleum
Corporation Ltd. HDFC Bank Ltd.
Infrastructure
Development Finance
Co. Ltd.
Oil & Natural Gas
Corporation Ltd. Reliance Power Ltd.
Tata Consultancy
Services Ltd.
Bharti Airtel Ltd.
Hero Honda Motors
Ltd.
Jaiprakash Associates
Ltd.
Power Grid
Corporation of India
Ltd. Sesa Goa Ltd. Tata Motors Ltd.
Cairn India Ltd.
Hindalco Industries
Ltd.
Jindal Steel & Power
Ltd. Punjab National Bank Siemens Ltd. Tata Power Co. Ltd.
7/29/2019 Training Day-1 Stock Market
28/33
Bombey Stock Exchange (BSE)
Sensex
BSE 30- BSE 30 Company list.
www.trueTrader.com Agile&Pure Systems.
Bajaj Auto Ltd. HDFC Bank Ltd. ICICI Bank Ltd. Mahindra &
Mahindra
Reliance
Infrastructure
Ltd.
Tata Steel Ltd.
Bharat HeavyElectricals
Hero HondaMotors Ltd.
InfosysTechnologies Ltd.
Maruti SuzukiIndia Ltd.
State Bank OfIndia
Wipro Ltd
Bharati Airtel Hidalgo
Industries Ltd.
ITC Ltd. NTPC Ltd. Sterlite
Industries (India)
Ltd.
Cipla Ltd. Hindustan
Unilever Ltd.
Jayprakash
Associates Ltd
Oil & Natural Gas
Corporation Ltd.
TCS Ltd.
DLF Ltd. Housing
Development
Finance
Corporation Ltd.
Jindal Steel &
Power Ltd.
Reliance
Communication
Ltd.
Tata Motors Ltd.
Bajaj Auto Ltd. HDFC Bank Ltd. Larsen & Turbo
Ltd.
Reliance
Industries Ltd.
Tata Power
Company Ltd
7/29/2019 Training Day-1 Stock Market
29/33
Mutual Funds
What is Mutual Fund?
AMC
How Mutual Fund Operates.
Types of Mutual Fund:-
1.Large Cap
2.Small Cap
3.Mid Cap
4.Banking5.Real Estate & Intra.
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
30/33
Futures
Types of Future:-
Index Future. Stock Future.
Contract available for Trading:-
Near
Mid
Far
Futures Expiry:-
- Last Thursday of every Month.
- With Cash Price.
www.trueTrader.com Agile&Pure
7/29/2019 Training Day-1 Stock Market
31/33
Global Market
World Market Indices of Asia, America & Europe,
Asia:- Straits Times.
Hang Seng.
SSE Composite Index (Shanghai)
Nikkei 225
America:-
NASDAQ.
S&P500.
Dow Jones Ind. Avg.
www.trueTrader.com Agile&Pure
7/29/2019 Training Day-1 Stock Market
32/33
Global Market
Europe:-
CAC 40. FTSE 100.
DAX.
BEL-20.
www.trueTrader.com Agile&Pure Systems.
7/29/2019 Training Day-1 Stock Market
33/33
Thank you !
By Agile&Pure Systems.www.agileandpure.com
www.truetrader.com
T d A il & P S t
http://www.agileandpure.com/http://www.truetrader.com/http://www.truetrader.com/http://www.agileandpure.com/