Stock Market Basics

For Beginners
Stock Market for
Beginners
 Agenda
Share market basics
Terminology
How to Trade
Practice on virtual terminal
Doubt clearing
 Share market basics
Share market : Buying and selling of
shares is done
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.
Why to invest in
stock market?

Keep pace with

inflation.

Reach your
financial goals with
the right mix of
investments.
Why to invest in
stock market?

Reduce investing
risk with a solid
asset allocation
strategy.

Reduce risk with a

well-planned
strategy for buying
and selling stocks.
Why to invest in
stock market?

Use dollar-cost
averaging to stay in
the market when
stock valuations are
high.

High-frequency
traders aren't
hurting returns for
regular investors.
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 ACCOUNT
Theterm 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.
 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
 NIFTY 50 COMPANIES
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

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.
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Money
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