training day-1 stock market

7/29/2019 Training Day-1 Stock Market

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www.trueTrader.com Agile&Pure Systems

WELCOME TO THE

TRAINING WORKSHOP

By Sameer Vartak

.


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DAY 1:-BASICS OF STOCK MARKET

www.trueTrader.com Agile&Pure Systems.


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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.



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Types Market

Two types of Market.

1.Primary market- Through IPO (Initial Public Offering)

2.Secondary Market

- Largely traded on NSE/ BSE in India



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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


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Payment Done Delivery


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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



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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.



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What is RMS ?

RMS = Risk Management System

A person observers individual trading account with

position taken.


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Various trading platforms


NEAT- Broker terminal.

ODIN- Offline/ Online NOW- NSE Based.

Customized platforms-

India bulls Share khan

Religare

5 paisa/ Indiainfoline etc.


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ODIN Screen and Data available

Stock name

Open

High

Low

Close (Previous Close)

Volume

LTQ

ATP

52 weeks High/ Low.


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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.



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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.



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Fundamentals

EPS

PE

CRR

Rapo rate

SLR

IIP Data

GDP Data



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What is EPS ?

EPS = Earnings Per Share.

EPS is calculated by the following formula:

EPS = Net Earnings / Number of Shares


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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


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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.


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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


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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


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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


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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


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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.


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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%).


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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.


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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.


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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)


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National Stock Exchange (NSE)

NSE

Nifty 50 - Nifty50 Companies list .


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.


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Bombey Stock Exchange (BSE)

Sensex

BSE 30- BSE 30 Company list.


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


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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.



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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.

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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.

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Global Market

Europe:-

CAC 40. FTSE 100.

DAX.

BEL-20.



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Thank you !

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