WELCOME TO THE

TRAINING WORKSHOP
By Sameer Vartak

.
www.trueTrader.com Agile & Pure Systems

DAY 1:BASICS OF STOCK MARKET

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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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Operations of Virtual Stock Market

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.

Payment Done

Delivery

How Transactions Takes Pace?

Stock Exchange

Deposits 100 RIL to BR1 Pool Account

Deposits Money for 100 RIL in BR2 Account

Broker transfer shares pool to clients DP

Broker transfer money to clients 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.

Various trading platforms

NEAT- Broker terminal. ODIN- Offline/ Online NOW- NSE Based. Customized platformsIndia 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 responsible for 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

What is P/E Ratio ?

P/E Ratio= Price per Share/Annual Earnings per Share. The price per share in the numerator is the market price of a single share of the stock. The earnings per share in the denominator depends on the type of P/E. The P/E ratio can alternatively be calculated by dividing the company's market capitalization by its total annual earnings

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 these as 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.

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 Rs 91 for investments and lending / credit purpose. Thus, it is a tool used by RBI to control liquidity in the banking system

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

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, we can say that in case, RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate

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 banking system. An increase in the reverse repo rate means that the RBI will borrow money from the banks at a higher rate of interest. As a result, banks would prefer to keep their money with the RBI

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.

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%).

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, Consumer durables and Non-consumer durables.

What Does GDP Mean?

GDP = Gross Domestic Product The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

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 businesses spending on capital "NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports Imports)

National Stock Exchange (NSE)

NSE Nifty 50 - Nifty50 Companies list .
ACC Ltd. Cipla Ltd. Hindustan Unilever Kotak Mahindra Bank Ranbaxy Laboratories Ltd. Ltd. Ltd. State Bank of India Housing Development Finance Steel Authority of Corporation Ltd. Larsen & Toubro Ltd. Reliance Capital Ltd. India Ltd. I T C Ltd. ICICI Bank Ltd. Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd. Reliance Sterlite Industries Communications Ltd. (India) Ltd. Reliance Industries Ltd. Reliance Infrastructure Ltd. Sun Pharmaceutical Industries Ltd. Suzlon Energy Ltd. Tata Consultancy Services Ltd. Tata Steel Ltd.

Ambuja Cements Ltd. DLF Ltd. Axis Bank Ltd. Bajaj Auto Ltd. Bharat Heavy Electricals Ltd. Bharat Petroleum Corporation Ltd. Dr. Reddy's Laboratories Ltd. GAIL (India) Ltd.

Wipro Ltd.

Bharti Airtel Ltd. Cairn India Ltd.

Infosys Technologies HCL Technologies Ltd. Ltd. NTPC Ltd. Infrastructure Development Finance Oil & Natural Gas HDFC Bank Ltd. Co. Ltd. Corporation Ltd. Power Grid Hero Honda Motors Jaiprakash Associates Corporation of India Ltd. Ltd. Ltd. Hindalco Industries Ltd.

Reliance Power Ltd.

Sesa Goa Ltd.

Tata Motors Ltd. Tata Power Co. Ltd.

Jindal Steel & Power Ltd. Punjab National Bank Siemens 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. Bharat Heavy Electricals Bharati Airtel Hero Honda Motors Ltd. Hidalgo Industries Ltd. Reliance Tata Steel Ltd. Infrastructure Ltd. Infosys Maruti Suzuki State Bank Of Wipro Ltd Technologies Ltd. India Ltd. India ITC Ltd. NTPC Ltd. Sterlite Industries (India) Ltd. Jayprakash Oil & Natural Gas TCS Ltd. Associates Ltd Corporation Ltd. Jindal Steel & Reliance Tata Motors Ltd. Power Ltd. Communication Ltd. Reliance Industries Ltd. Tata Power Company Ltd Mahindra & Mahindra

Cipla Ltd. DLF Ltd.

Bajaj Auto Ltd.

Hindustan Unilever Ltd. Housing Development Finance Corporation Ltd. HDFC Bank Ltd. Larsen & Turbo 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.Banking 5.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 !

By Agile & Pure Systems.

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