Preface

In today’s fast moving economy only theoretical knowledge is not sufficient for an

individual to perform sufficiently. To fill up the gap between theory and practical

we must have enough theoretical as well as practical knowledge regarding business

environment. And for this purpose this Summer Internship Project is carried out,

which has helped me to gain both practical as well as theoretical knowledge.

Practical training is one of the vital aspects of management field. Thus, practical

training enables students in understanding the administration and functions of a

corporate entity. Practical training helps an individual to develop managerial

abilities. Thus, training acts as a bridge between theoretical knowledge and

practical implementation of the knowledge. Hence, it helps an individual to know

the actual uses and implications of the theoretical knowledge acquired in the

classroom.

Acknowledgement

Every work in the world is done with the help of some or other. He or she may

directly or indirectly involve in that work. According to a famous saying we should

thank the one that have helped you in our work. So here in this part I am doing the

work of thanking all those people who helped me in making this report.

I am very much grateful to Prof. Falguni Shelani as she helped me throughout the

project and provided all the essential guidance for preparing a good project report.

I am also thankful to Mr. Sunil Shah (Vice President, Arcadia Shares) and all their

staff members for co-operating with me.

Declaration

I undersigned Dimple Rajvir the student of MBA, Semester 3 hereby declare that

the project presented is my own work and has been carried out under the guidance

of Prof. Falguni Shelani, MEFGI.

This report has not been previously submitted to any other university or any

institution for examination or any other purpose.

Date:

Place: Rajkot

Industry overviewHISTORY

Indian stock market is one of the oldest in Asia. Its history dates to nearly 200

years ago. The earliest records of security dealing in India are merged and obscure.

By 1830s business on corporate stocks & shares in bank and cotton presses took

place in Bombay. Though, the trading list was broader in 1839, there were only

half a dozen brokers recognized by banks and merchants during 1840 and 1850.

The 1850s witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the no. of brokers increased

into 60. In 1860-61 the American Civil War broke out and cotton supply from

United States and Europe was stopped; thus, the ‘share mania’ in India began. The

no. of brokers increased about 200 to 250. However, at the end of the American

Civil War, in 1865, a disastrous slump began (for e.g., Bank of Bombay share

which had touched Rs. 2850 could only be sold at Rs. 87). At the end of the

American Civil War the brokers who thrived out of civil war in 1874, found a

place in a street (now appropriately called as Dalal Street) where they would

conveniently assemble and transact business. In 1887, they formally established in

Bombay, the “Native Share and Stock Brokers’ Association” (which is

alternatively known as “The Stock Exchange”). In 1895, the Stock Exchange

acquired premise in the same street and it was inaugurated in 1899. Thus, the Stock

Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time no. of exchanges were

increased and at currently it reached to the figure of 24 stock exchanges.

1850 Shares of banks and securities of East India co. traded inn Mumbai under

a sprawling banyan tree in front of Town Hall

1875 Brokers organized an association known as the Native Share Brokers

Association and the country’s first stock exchange the Bombay Stock

exchange (BSE), set up in Mumbai with 318 members. The membership

free gradually increased from Rel in 1887 to Rs 1000 in 1896 and

Rs.48000 in 1920.

1956 Securities contract regulation act passed.

1957 The BSE and eight other stock exchanges registered under the Securities

Trading Contract act.

1982 The BSE classifies scripts into Group A for carry forward, Group B for

cash transaction.

1986 The BSE 30-share Sensitivity index (a.k.a. the Sensex) compiled updated

every two minutes.

1987 Stock Holding corporation of India set up.

1992 The National Stock Exchange incorporated. (NSE)

1995 The BSE computerized its trading operations, signaling the end of 120

years of floor-trading.

1996 NSE 50 indexed launched April 22. NSDL set up as the first depository in

India, and the NSE commences trading in dematerialized securities on

December 26.

2000 The SEBI approves the report on net trading brought out by the SEBI

committee on the Net based trading and services.

Indian Stock Market

Share or stock is a document issued by a company, which entitles its holder to be

one of the owners of the company. A share is issued by a company or can be

purchased from the stock market.

Share market where dealing of securities is done is known as share market. There

are two ways in which investors gets share from market:

Primary market: markets in which new securities are issued are known as

primary market. This is part of the financial market where enterprises issue their

new shares and bonds. It is characterized by being the only moment when the

enterprise received money in exchange for selling its financial assets.

Secondary Market: Market in which existing securities are dealt is known as

secondary market. The market where securities are traded after, they are initially

offered in the primary market. Most trading is done in the secondary market. The

Stock Market is an invisible market that trades in stocks of various companies

belonging to both the public and private sectors. The Indian Stock Market is often

referred to as the Share Market since it deals primarily with shares of various

companies Stock Exchange is a place where the stocks are listed and traded. Such

exchanges may be a corporation or mutual organization which specializes in the

business of introducing the sellers with the buyers of stocks and securities. The

Indian Stock Market in India comprises of two stock exchanges:

●Bombay Stock Exchange (BSE)

●National Stock Exchange (NSE)

The Bombay Stock Exchange

The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock

Exchange serves as the most important for companies to raise money. The

chief function of the Stock Market of India is to help raise money as capital for the

growth and expansion of various private and public sector enterprises. Besides, the

Stock Market of India provides able assistance to the individual investors through

daily updates on current position of the stocks of the respective companies that are

enlisted in the Stock Index in which the movement of prices in a section of the

market are captured in price indices. The popular acronym for Stock Index is

Sensitive index or sensex. Moreover, the liquidity provided by the exchange

enables the investors to sell securities owned by them easily and quickly. Hence a

person, who is subjected to sudden dearth of funds, can immediately sell his shares

for cash in India Stock Market.

The BSE Sensex, also known as “BSE 30” is a widely used market index not only

in India but across Asia. In terms of volume of transactions, it is ranked among the

top five stock exchanges in the world.

The National Stock Exchange of India Ltd

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today

the largest stock exchange in India and a preferred exchange for trading in equity,

debt and derivatives instruments by investors. NSE has set up a sophisticated

electronic trading, clearing and settlement platform and its infrastructure serves as

a role model for the securities industry. The standards set by NSE in terms of

market practices; products and technology have become industry benchmarks and

are being replicated by many other market participants.

NSE provides a screen-based automated trading system with

a high degree of transparency and equal access to investors

irrespective of geographical location. The high level of

information dissemination through the on-line system has

helped in integrating retail investors across the nation.

The exchange has a network in more than 350 cities and its trading members are

connected to the central servers of the exchange in Mumbai through a sophisticated

telecommunication network comprising of over 2500 VSATs.

NSE has around 850 trading members and provides trading in equity shares and

debt securities. Besides this, NSE provides trading in various derivative products

such as index futures, index options, stock futures, stock options and interest rate

futures. In addition to these organizations there are other organizations highlighting

on the share trading in the Indian Stock Market are:

●Securities and Exchange Board of India (SEBI)

●NSDL

●CDSL

The Nifty and the Sensex are the indicators which are the parameters denoting the

prices of the stocks of the major companies of the NSE and the BSE respectively.

The markets are closed on Saturdays and Sundays. Both the

exchanges have swi tched over f rom the open outcry trading

system to a fully automated computerized mode of  trading known as

BOLT (BSE On Line Trading) and NEAT(National Exchange Automated

Trading) system. It facilitates more efficient processing, automatic order

matching, faster execution of trades and transparency.

The scrip traded on the BSE has been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’,

and ‘Z’ groups. The ‘A’ group shares represent those, which are in the

carry forward system (Badla). The‘F’ group represents the dept market

(fixed income securities) segment. The ‘Z’ group scrip is the blacklisted

companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’, &

‘B2’groups and Rights renunciations. The key regulator governing Stock

Exchanges, Brokers, Depositories, Depository participants, Mutual

Funds, FIIs and other participants in Indian secondary and pr imary

market i s the Secur i t ies and Exchange Board of India (SEBI)

Limited.

MAJOR PLAYERS OF INDUSTRY

1. Angel Broking Ltd.

2. ICICI Web Trade Ltd. (ICICI direct. com)

3. S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com)

4. India infoline Ltd. (5paisa.com)

5. Kotak Securities Ltd. (Kotakstreet.com)

6. India bulls

7. HDFC Securities (HDFC secs)

8. UTI Securities Ltd. (UTISEL)

9. Motilal Oswal Securities Ltd. (MOSt)

10. IDBI Capital Market Services Ltd.

11. Refco-Sify Securities India Pvt. Ltd

Company overview

INTRODUCTION TO ARCADIA SHARES AND STOCK BROKERS PVT

LTD.

Arcadia came to life in 1995, right on the wave of a post-liberalization market

economy. As financial services became a major contributor to economic growth,

Arcadia has steadily shaped into a leading financial service provider. In 1995, we

were a small company with just 5 employees. Today, we have a market presence

across the country, with over 275 branches & franchisee outlets. We have

established a strong retail network not only in metros but also in tier two and tier

three cities.

Traditionally, our operation was concentrated in fast-moving capital market of

Western India. But sensing great potential, we have launched strong expansion

plans in the North and the South. This systematic presence-building and efficient

delivery of service has put Arcadia among the fastest growing retail broking

houses in the country, with memberships in:

NATIONAL STOCK EXCHANGE OF INDIA (NSE)

BOMBAY STOCK EXCHANGE (BSE)

MULTI COMMODITY EXCHANGE (MCX)

NATIONAL COMMODITY & DERIVATIVES EXCHANGE (NCDEX)

DEPOSITORY PARTICIPANT OF CDSL.

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI).

Today Arcadia has accumulated acknowledged leadership in execution and

clearing services on exchange-traded derivatives and cash-market products.

Working with the leading stock exchanges and noted financial institutions has

drilled in us the importance of real-time information and use of analytical tools in

investment decisions.

Practicing this over the years has made us experts in understanding investor

requirements. Arcadia's integrated and innovative use of technology provides

clients with the ability to trade offline & online. Clients also have constant access

to their account information via internet.

TOP MANAGEMENT:

1. MR.ANTONY SEQUEIRA.(FOUNDER AND MANAGING DIRECTOR)

2. NITIN BRAHMBHATT.(DIRECTOR)

3. MR.SUNIL C.SHAH(VICE-PRESIDENT)

ADDRESS:

11, PANCHNATH PLOT CORNER,NR.PANCHNATH MANDIR,DR.RAJENDRA PRASAD ROAD,RAJKOT-360001

About us

Company information

Name: Arcadia Shares and Stock Brokers Pvt. LTD

Registered Office:

328, Ninad, Building no. 7,

Service road,

Nr Bhavishya Nidhi Bhavan

Bandra (East)

Mumbai – 400051

Head Office: As above

Regional Office: 11, Panchanath plot corner,

Nr. Panchnath mandir,

Dr. Rajendra Prasad road

Rajkot – 360001

Founder: Mr. Antony Sequera

Director: Mr. Nitin Brahmbhatt

Regional Head: Mr. Akhil Shah

Contact no.: +91 22 67739999

Dealing Room: +91 22 26478888

Toll free: 1800 22 1555

Fax: +91 22 26478988

E-mail: info@arcadiashare.com

Website: www.arcadiastock.com

Membership

NSE (Cash and Derivatives) : INB/F_230778238

BSE (Cash) : INB010778232

CDSL DP : IN225

MCX : 10950

NCDEX : 00374

Services

1. Equity Investment

Looking for an easy and convenient way to invest in equity and take

positions in the futures and options market using our research and tools. To

start trading in Equity, all you need to do is open an online trading account.

You can get help opening the account and get guidance on how to trade in

Equity

2. Commodity Trading (MCX - NCDEX)

Enter the new world of commodity futures. Investors looking for a fast

paced dynamic market with excellent liquidity can NOW trade in

Commodity Futures Market. The Commodity Exchange is a Public market

forum and anyone can play in these vital Commodity Markets. ARCADIA

COMMODITIES AND TRADING can certainly be your point of entry to

the commodity markets. ARCADIA is registered trading – cum – clearing

member of NCDEX and MCX. Participation is not difficult.All you need is

to open an account with us. We shall offer you advice and research on

investments.

3. Derivatives Trading

Futures and options are derivatives, which use equity as their underlying.

Hence their Equity Advisory Group (EAG), which is highly qualified, will

also act as your advisors and help you take informed decisions while trading

in these derivative instruments.

4. Internet Trading

Making the right trade at the right time! Welcome tour E-Broking service

which brings you an experience of online buying and selling of shares with

just a click.

5. Mutual Fund Advisory

Transact in a wide range of Mutual Funds. Mutual funds are an attractive

means of saving taxes and diversifying your investment portfolio. So if you

are looking to invest in mutual funds, ARCADIA offers you a host of mutual

fund choices under one roof; backed by in-depth information and research to

help you invest smartly

6. IPO Distribution

IPO or Initial Public Offer presents good opportunities for netting high

returns on your investments in a relatively short period of time – if you

invest early. Get information on IPO news, forthcoming IPOs and lot more.

7. Demat Services (CDSL)

In the times of T+2 having a Demat account linked to your trading account

becomes more convenient. The no-trading members can also avail of our

Depository services. You receive regular account reports and an efficient

service at all times. ARCADIA is a member of CDSL.

DEPARTMENTS

KYC

Risk Management

Admin

Banking

DP

Back-office

Relationship Management

Billing

IT

Sales

Feedback

Compliance & Legal

SWOT – ANALYSIS

During my training at Arcadia shares and stock, I came to know the strengths,

weaknesses, opportunities and threats for the company. It will be very useful for

the company to analyze them and for that purpose the SWOT analysis of the

company is presented here.

STRENGTHS

Well maintained infrastructure

Dedicated, intelligent and loyal staff

Competitive brokerage

The best investment advice through dedicated research and reports.

Wide product range to enable the clients to choose the best alternative

One of the best DPs in India

A positive image in existing clients

WEAKNESSES

Time consuming process for account opening, resolving the problems of the

customers, etc.

Company is present in only one business, i.e. Stock Broking, so there is no

scope for cross-selling

OPPORTUNITIES

Slope of stock market towards delivery based transactions

Open interest of the people to enter in stock market for investing

Attract the customer who are dissatisfied with other brokers

An indirect opportunity generated by the stock market due to its current

situation

Online trading a/c market has vast potential

Derivatives and Commodities markets are growing so, there is enormous

potential for these market

THREATS

Increasing competition from existing as well as new players

A threat of losing clients for any kind of weakness of the company

Indirect threat from instable stock market, i.e. low/no profit of Angel’s

clients would lead them to go for other broker

New multinational and national players are coming with competitive

products

Research methodology

MEANING OF RESEARCH

Research is the process of gathering, recording and analyzing of critical and relevant facts about

IMPORTANCE OF RESEARCH

In this modern era, for every organization service quality is having great

importance. Therefore every organization it is necessary to study the rate of

satisfaction of their clients. The basic need for studying the satisfaction of the

clients is to find out their view about the services provide by Arcadia Shares

and Stock PVT. LTD

The research study on satisfaction provides necessary information to the

company. Which helps the company to take action to improve the service

quality.

Study of “Service Quality” helps the company to maintain a standard and

increase productivity by improving service.

This study tells us how much the employees are capable and their interest at

work place.

They will care about the quality of their work.

They will create and deliver superior value to the client.

They are more committed to the organization.

Their works are more productive.

OBJECTIVE OF STUDY

The broad objective of this study is to know the satisfaction level of clients for

services provide by Arcadia. The specific purposes of this study are:

RESEARCH OBJECTIVES:

- To study the trading strategies of investors in volatile market

- To study the factors influencing investors in their investment

- To study the behavior of investors in different market situation.

- To study stock market and understand its market segment.

- To know the awareness level regarding cash & derivatives segment in stock

market.

- To study the annual investment level of investors in stock market.

- To know investment behavior of people in stock market.

- To study the indicators that investors take into consideration while

trading in cash and derivative market.

SCOPE OF THE STUDY

The study has the scope of including the most important organ of the

organization that is the client. The study is to provide information to better

understand how client think and feel as member of the organization.

The study is limited to the 100 investors trading in stock market who are

above the age of 20 trading in various brokerage houses of Rajkot. Our study

finds the risk level and their strategies while dealing in the stock market

when it is showing volatility.

RESEARCH DESIGN

What is Research Design?

Research design can be thought of as the structure of research – it is the “glue” that

holds all of the elements in a research project together. “A research design is the

arrangement of conditions for collection and analysis of data in a manner that aims

to combined relevance to the research purpose with economy in procedure.”

Generally there are mainly four type of research design:

1. Sampling

2. Observation

3. Statistical

4. Operational

As per this research sampling design method is very useful for the survey on the

service quality of the Arcadia.

SOURCES OF DATA

As we all know that there are mainly two sources of data i.e.

Primary

Secondary

Primary Data:

The data, which is collected directly from the respondents, is called primary data.

The normal procedure is to interview some people individually to get a sense of

how people feel about the derivatives & commodities segment.

So far as our research is concerned, primary data is the main source of information.

We have collected data through Questionnaire.

Secondary Data:

Data collected for some purpose other than the problem at hand are called as

secondary data.

We have used following secondary data sources.

1. Library Research

I have searched many books and materials like Philip kotler to understand the

research methodology.

2. Business Magazines

Many business magazines are referred to gather data about various trading

strategies.

3. Internet Surfing

There are many search engines which provides us the data for variety of topics

such as Google Search, Yahoo Search etc. we have used both of the search engines

for gathering the data. We have also used various financial portals such as

moneycontrol.com, bseindia.com, nseindia.com, etc. we have also taken the help of

arcadiastock.com in order to fulfill our requirement.

RESEARCH INSTRUMENT

The research instrument used for primary data collection is questionnaire. The

questionnaire has close ended questions. (Questionnaire is attached as

Annexure) The questionnaire is supposed to be given to an individual to fill up on

his own.

Importance and Benefits:

The research would help to understand the trading behavior of people in various

market situations and it would also help to find out the various trading strategies in

cash as well as derivative market segment. This research would also help to find

out various indicators that people take into consideration while trading in different

market segments.

Method of Data Collection

Primary data-in order to collect direct information from investors we have

designed a questionnaire. We have approached investors of different broking

houses and income groups.

LIMITATIONs OF THE STUDY

The limitations of this study are as follows:

Personal Bias:

People may have personal bias towards particular investment option so they may

not give correct information and due to which conclusion may be derived.

Time Limit:

The time duration of the research is short that’s why the information is not covered

fully.

Sample Area:

The area was limited to Rajkot city only.

Sample Size:

The last limitation is Sample size, taken by us is of 100 only; due to which we

might not get the proper results.

Trading Segment

8%9%

83%

Cash

Derivative

Both

Investor’s trading strategy in volatile stock market

1. Name of Trading Segment

Out of 100 respondents, 83 trades in both segment while 8 respondents

trades in only cash segment and 9 respondents trades in only derivatives

market.

2. Age group of the respondents

53%

47%20 - 40beyond 40

3. Annual Investment in share market

52%

34%

14%

Investment

below 1 lakh100000 - 500000beyond 500000

4. What factors do you consider while investing in cash & Future market?

55%

5%

12%

20%

7% 1%

Factors

Fundamenta analysisTechnical AnanlysisTipsGlobal MarketsBrokerOthers

Majority of the respondents follow Fundamental Analysis while some of the

respondents also follow the global cues and minor numbers of respondents follow

Tips, Brokers, and Technical Analysis. So we can conclude that people are still

unaware about the Technical analysis which can be termed as new trend in market.

5. Which T.V. channels do you watch regularly for getting updates about the

stock market?

82%

4%

7%1%

7%

TV Channels

CNBC TV 18Times nowZee BusinessCNN IBNOthers

From the above data we can analyze that majority of the respondents regularly

watch CNBC TV18 as CNBC Awaaz while few of the investors prefer the other

news channels like Zee Business, Times Now, etc.

Analysis of Cash Market Segment

1. What is your motive while trading in cash market?

90%

2%8%

Intra-day

Delivery Based

Depends

From the above data we can analyze that majority of the respondents goes with

market conditions while few respondents trades specifically Intra-day or Delivery

Based.

2. Which of the following trading strategies you generally prefer?

1. Trading with stop loss

2. Trading without stop loss

3. Hedging with target price

4. Trading without target price

5. Hedging in options market

6. Buy at lower price / sell at higher price

Out of 100 respondents, 31 respondents prefer stop loss and target price. 28

respondents follow only target price without any stop loss. 21 respondents prefer to

buy on dips while 9 respondents prefer to sell on hike. 26 respondents prefer

trading with target price while 16 respondents doesn’t follow any fixed target

price.

3. What are the indicators you refer while trading in cash market?

(Give ranks)

Volume Average trade price

Fundamentals of Company

Circuit filter Percentage change in

price

Top Gainers/

losers

Technical levels

0

1

2

3

4

5

6

7

8

Indicators

From 100 respondents, majority of respondents prefer to go with Fundamentals of

company, Volume and percentage change in price as an important indicator in

order to trade in cash market, while they give less importance to other indicators

like Technical Levels, Circuit Filters, Average Trade price. Hence they consider

Fundamental of company and volume as ideal indicator.

4. What percentage of change in BSE and NSE do you consider while taking

decision to set your position in cash markets?

% change BSE NSE

5% - 10% 25% 17%

10% - 15% 48% 35%

15% and beyond 27% 48%

Analysis of Derivative Market Segment

1. Name of Trading Segment in Derivative Market

22%

2%

76%

Future Market Segment

Option Market Segment

Both of above

From the above chart we analyze that about 76% of the respondents deals in both

the segment while 22% respondents prefer only Future Market and the rest of

respondents deals in only Option Market Segment. Hence we can conclude that

people are not much aware about Option Market Segment.

2. What is your motive while trading in Derivative Market?

39%

48%

13%

Intra-day trading

Position Trading

Depends

From the above data, we analyze that 48% of respondents prefer Position Trading

that means they are ready to take risk and they also prefer more profit/loss. While

39% of respondent like to have Intra-day trading which shows that they are ready

to carry forward their position and they prefer small gain/loss, while 13%of

respondents are indecisive about their trading strategy.

3. You are dealing in derivatives market as a…

89%

9%2%

speculatorhedgerarbitrator

From the above data, we can conclude that most of respondents are speculators

which mean that they are willing to enormous risk. While only 9 % of the

respondents are hedgers who likes to hedge their positions in the option markets

and only 2 % of the respondents are arbitragers. So we can say that most of the

respondents are risk takers in the markets.

4. Which of the following trading strategy you generally prefer?

a) Trading with stop loss

b) Trading without stop loss

c) Trading with target price

d) Trading without target price

e) Hedging n options market

f) Buy at lower price/sell at higher price

g) Others (please specify) _____________________

Out of 100 respondents, 56 respondents prefer to have stop loss and target price

while 62 respondents prefer to trade with out stop loss and without target price

and 49 respondents prefer to trade with stop loss and without target price. 42

respondents prefer to hedge in Option Market while 38 respondents prefer to

buy on dips/sell on hike. So we can conclude that majority of respondents gives

importance to stop loss and target price.

5. What are the indicators you refer while trading in derivative market?

Volume Percentage change in

price

Global Market Top Gainer/Loser

Open Interest Technical Levels

Other0

1

2

3

4

5

6

7

8

Indicators

From the above data, we analyze that people considers open interest, Volume,

Global Markets as the most important indicators while trading in derivative

market. Here Open Interest indicates net outstanding contracts in derivative market

which people consider most important. While people prefer to give less priority to

technical level, top gainer/loser, percentage changes in price. Hence we conclude

that global market, open interest, volume are the major indicators which people

prefer.

6. What percentage of change in BSE and NSE do you consider while taking

decision to set your position in derivative markets?

% change BSE NSE

5% - 10% 18% 12%

10% - 15% 42% 35%

15% and beyond 40% 53%

7. What will be your trading strategy on the happening of any major events like Union Budget, Election, Natural Calamities, etc.?

33%

15%11%

39%

2%

Square-up your position

Holding your position

Reverse your overallposition

Wait and watch

Other

From the above data, we analyze that 39% of respondents prefer wait and

watch strategy because they expect the market to be very volatile in the

Coming days so they wait for market to stabilize and thus will enter after the

happening of the event. While 33% of respondents prefer to square-up their

position as they does not want to take risk.15 % of respondents prefer to hold

their position and want to take further risk and 11% of respondents like to

reverse up their overall position according to their prediction.

8. What will be your reaction in panic situation in the stock market?

34%

13%17%

36%

Follow rumors

Follow ExpertOpinion

Follow Media

Other (pleasespecify).

From the above data, we analyze that 34% of respondents follow market rumors

which shows that they are very sensitive in their trading while 17% of respondents

follow media such as CNBC TV18, Zee business, etc and takes their decision

accordingly. 13% of respondents follow expert opinions and behave accordingly.

Majority of respondents behaves in different ways like some of them rely on their

own experience, some remains neutral while some of them are ready to take further

risk.

FINDINGS

Majority of respondents trades in both cash as well as derivative market

segment.

Majority of respondents gives more importance to fundamental analysis and

global market while investing in cash and derivative market segment.

Majority of respondents prefer to watch CNBC TV18 as their market guide.

Majority of respondents like to trade with stop loss and with target price in

cash market segment.

Majority of respondents like to book partial profit if the trade goes in their

favor in cash market segment.

Majority of respondents prefer to make an average if the trade goes against

their favor in cash market segment.

Majority of respondents give more importance to fundamental of company

and volume in cash market segment.

Majority of respondents prefer to trade in both Future and Option Market

Segment.

Majority of respondents prefer to have position trading in Derivative Market

Segment with an intention to speculate in the market.

Majority of respondents like to book partial profit if the trade goes in their

favor in case of derivative market segment.

Majority of respondents prefer to make an average if the trade goes against

their favor in case of derivative market segment.

Majority of respondents give more priority to open interest, volume, global

market in order to trade in derivative market segment.

Majority of respondents like to sell on hike if the market opens in a positive

zone.

Majority of respondents like to buy at current market price if the market

opens in a negative zone.

Majority of respondents prefer wait and watch strategy on the happening of

any major event.

Majority of respondents follow rumors as well as uses their own experience

in case of any panic situation in stock market.

HYPOTHESIS

CONCLUSION

In case of Cash Market Segment, we can conclude that people generally

trade with stop loss and with target price. So in case of Cash Market Segment

people are not more risk takers. And they give more priority to the Fundamentals,

Volume and Percentage change in price in cash market segment and there is a

mixed pattern of trading between intra-day and delivery based trading.

In case of Derivative Market Segment, we can conclude that people

generally use both the segment but they generally use the Option Segment for

hedging purpose and not for trading purpose. So we can conclude that people are

less aware about the Option Segment as compared to Future Market Segment.

People generally trade with stop loss and uses hedging option in derivative market

segment and they give more priority to Open Interest, Volume and Global Market

for trading purpose.