FinWizShare Market BasicsFor Beginners

Stock Market for Beginners

Agenda• Share market basics• Terminology• How to Trade• Practice on virtual terminal• Doubt clearing

Share market : Buying and selling of shares is done

Share market basics

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

A broker is a party that mediates between a buyer and

a seller. 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 accountThe term Demat, in India, refers to a dematerialized account.

In a Demat account shares and securities are held in electronic form instead of taking actual possession of certificates.

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

6:Buy Or Sell

8: Buy ,share moves to Demat

7:Sell, Shares moves out of

Demat

Flow chart

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

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

10 RPOWER 20 SAIL 30 TCS 40 SUNPHARMA 50 STER

NIFTY 50 COMPANIES

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

Thank you.

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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