CHAITANYA SHARE MARKET CLASSES.

Office no9, Somnath dairy building, sinhagad road, pune - 51

Contact No 9021 336 336, 8805560050.
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1. Share market advance course.

2. Share market technical analysis course.

 INDEX
• Investment concepts.
• Introduction to share market.
• Primary Market.
• Trading.
• Secondary Market.
• Securities Exchange board of India.
• Portfolio Management.
• Mutual Fund
Investment
concepts.
What is saving?

The money you earn is partly spent and

the rest saved for meeting future
expenses / Emergency.
 What is Investment?
Investment is a asset held by person for
earning income by way of dividends, rental
income.

• For Example.
Dividend from share
Rent from Property.
 When to start
Investing?
• Invest early

• Invest regularly

• Invest for long term and not short term

GOLDEN RULES OF INVESTING

1. Analyse Your Own Needs & Your

Investment Considerations.

2. Start Investing Early & Regularly.

GOLDEN RULES OF INVESTING

• Sanjay Is 31 And Invests Rs. 5,000 In a

Mutual Fund.

• He Adds Rs.1,000 Each Year To His

Investment Until He’s 65.
THE VALUE OF INVESTING EARLY
• Ajay Is 21 And Also Has Rs 5,000.

• He Invests His Money In The Same Mutual Fund

As Sanjay.

• Ajay Adds Rs 1,000 A Year Until He’s 30.

• He Does Not Make Any Additional Investments

in the fund after this.

• However, His Investment Continues To Earn For

Him Until Age 65.
THE VALUE OF INVESTING EARLY

Who Do You Think Is Better Off ?

 THE VALUE OF INVESTING EARLY
Ajay 11,54,000
Sanjay
Rs 11,00,000

5,33,000
Rs 5,00,000

21 31 65
Returns are calculated at 11 % per annum. Before making an
investment decision we suggest you take these factors into
consideration and recommend you consult a financial adviser.
Types of investment
Period.
• Short Term investment.
Period 1 day to 3 Months.
• Medium Term Investment.
Period 3 Months to 1 Years.
• Long Term Investment.
Period 1 Years to …………
Introduction to
share market.
 INTRODUCTION TO
bombay stock exchange
• BSE-
BSE- Bombay stock exchange.
• The oldest stock exchange in Asia.
• Established in 1875
• It was recognised by the Government of India on Aug
31 1957.
• In 2002, the name "The Stock Exchange, Mumbai" was
changed to Bombay Stock Exchange.
 INTRODUCTION TO
bombay stock exchange
• The BSE Computerized trading system by
introducing Bombay on line Trading ( BOLT )
on 14.3.1995.
• Bombay stock exchange index means Sensex.
• Sensitive
Sensitive Index
Index = Sensex.
• BSE 30.
 INTRODUCTION TO
bombay stock exchange
• Sensex calculate from 1979.

• Its Start from 100 and current its on 54000/-

 INTRODUCTION TO
NATIONAL STOCK EXCHANGE.
• NSE- National stock exchange.
• Recognised stock exchange from April 26,
1993.
• The NSE has a fully automated screen-based
trading system.
• NEAT = National Exchange for Automated
Trading.
 INTRODUCTION TO
NATIONAL STOCK EXCHANGE.
• National stock exchange index means Nifty.

• NSE 50.

• Its Start from 1000 and current its on 16000/-

 Market timing
• BSE-
BSE-: Bombay stock exchange

• NSE
NSE--: National stock Exchange

• Market time 9.15 am to 3.30 Pm

• Monday to Friday
Primary Market
PRIMARY MARKET - SAFEST WAY TO ENTER S.M.

 PUBLIC ISSUE NORMALY COMES

WHEN STOCK MARKT IS BOOMING
 BECAUSE IN BOOMING MARKET
COMPANY CAN GET PREMIUM HEAVIELY
What is an Initial Public Offer
(IPO)?
• An Initial Public Offer (IPO) is
the selling of securities to the
public in the primary market.
OBJECT OF THE PUBLIC ISSUE

 TO EXPAND BUSINESS

 TO DIVERSIFY BUSINESS

 TO FUND EXISTING PROJECT

 TO REDUCE DEBTS
TYPES OF PUBLIC ISSUE
 Initial Public Offering  Further Public Offering
 DEMAND
 On Public Issue & Listing  On Public Issue & Listing
Huge Demand Low Demand
 PRICE DISCOVERY
 No Price Idea  Already Price Discovered
 PROFIT GAPS
 Averagely 50 %  Averagely 15 %
IPO STUDY POINTS.
• Capital Structure
• Object of issue.
• Basis for issue price.
• Industries Overview.
• Our Business.
• Our Management.
• Financial statements.
 TYPES OF OFFERING
Public Ltd. Company Can Offer Their Share By Following Ways :
I. Offer Price At Fixed Premium :
Where Company Fixes His Offer Price By Taking
Additional Amount Over The Face Value.

 The Gap Between The Offer Price & Face

Value Called As A Premium.
 TYPES OF OFFERING
2) By Unfixed Offer Price : This Method Called
As A Price Discovery From Investors.
Where Company Gives Certain Price Band
To Investors and Investors Have To Quote
Their Bid Price Between The Price Band.
After Public Issue ,Company Fixes His Offer
Price. This Offer Type Called As A
Book Building Public Issue.
 What is a Price Band in a
book built IPO?
• The prospectus may contain either the
floor price for the securities or a price
band within which the investors can
bid. The spread between the floor and
the cap of the price band shall not be
more than 20%.
 Who decides the
Price Band?
• It may be understood that the
regulatory mechanism does not
play a role in setting the price for
issues. It is up to the company to
decide on the price or the price
band.
 SLIENT FEATURES OF
PUBLIC ISSUE
 Now Company Can Freely Fix His Offer Price .

 To Apply The Public Issue Each Investor Have To

His Own Demat A/c.
 You Have To Apply The Public Issue In Lot Mode &
Its Multiple.
 Through Single Name Multiple Application Are
Not Allowed.
 Minimum Application Is 1 Lot
 PRICE DISCOVERY
Bharti Shipyard = Price Band ( 55- 66 ) Size=150 Cr (100 %)
= Lot Size ( 100 )
Floor Price = 55 Cap Price = 66
55 56 57 58 59 60
40 % 80 % 100%
61 62 63 64 65 66
30% 55 % 40 % 35 %
Which Will Be Final Offer Price ? = 64
You Also Have Another Option Called “ Cut Off “
Where Bidder Agrees Offer Price Which Will Set By Company.
For how many days an issue
is required to be kept open?
• The period for which an issue is
required to be kept open is:
• For Fixed price public issues: 3-10
working days
• For Book built public issues: 3-7
working days extendable by 3 days in
case of a revision in the price band
 What is “ASBA”?
ASBA means “Application Supported by Blocked
Amount”. ASBA is an application containing an
authorization to block the application money in
the bank account, for subscribing to an issue. If
an investor is applying through ASBA, his
application money shall be debited from the bank
account only if his/her application is selected for
allotment after the basis of allotment is finalized.
 When will the shares
allotted to me get listed?
• The listing on the stock exchanges is done
within 7 days from the finalization of the issue.
• Ideally, it would be around 3 weeks after the
closure of the book built issue.
• In case of fixed price issue. It would be
around 37 days after closure of the issue.
Listing of share on
stock exchange.
• ABC company open ipo in market.
• Face value of company Rs 10/-
• Offer price between 50 to 60.
• Cut of price 60.
• Share list on exchange Rs 80 and close end of day Rs
90.
• First day price increase 50%
Listing of share on
stock exchange.
ABC company open ipo in market.
• Face value of company Rs 10/-
• Offer price between 50 to 60.
• Cut of price 55.
• Share list on exchange Rs 50 and close end of day Rs
44.
• First day price Decrease 20%.
 IPO Selection Criteria
• PAT = 20% or more

• Oversubscription More than 10 Time

 Check Oversubscription Link
• www.nseindia.com
• Product
• Ipo
• Current market report
• Book building current issue
• Click on name of company
• All exchange Demand Graph.
• No of time issue is oversubscribed.
• If ipo is oversubscribed more than 10 time
but less than 100 time so book profit
• Profit Booking % = oversubscription
__________________________________________

2
If oversubscription is 50 time so 25% is over
profit booking target.
• If oversubscription is more than 100 time
so you can hold share for long term…
Trading
TYPES OF DEMAT A/C
OPERATING

1. Single

2. Joint (Two or Three)

COMMON REQUIREMENTS
1. 18 Years Of Age
2. Address Proof
- Ration Card / Electricity Bill / Saving a/c Statement
3. Identity Proof
- Passport / Permanent Driving License / Election Card /
PAN Card
4. Information About Income Tax
- PAN NO.
5. 2 Passport Size Photos
HOW CAN YOU START TRADING ?

1. Trading Account : For Buying & Selling Of

Shares With Any SEBI Registered Main Broker
Or Sub Broker
2. Demat Account : To Hold & Transfer Of Shares
With Any Authorized Depositary Participant Of
NSDL / CDSL
3. Saving Account : With Any Bank To Pay & Receive
Funds.
  To Do Real Time Online
Trading
1)Trading Account
2)Demat Account
3)Saving Account
4)Trading Terminal
5)( Web / Software Based )
3 IN 1 2 IN 1
ICICI UPSTOX
HDFC ZERODHA
IDBI RELIGARE
UTI
SBI ANGEL
CHARGES OF DEPOSITORY
SERVICES
1. Account Opening / Closing Charges – NIL

2. Stamp Paper Charges – Rs. 300 /-

3. Account Maintenance Charge – Rs.500 /- Per Year

 What is Bid and
Ask price?
• The ‘Bid’ is the buyer’s price.

• The Ask is the sell Price.

 What is opening
price
• First Traded price at the time of market
opening .
• For eg.
• In reliance Ind. First traded price was
1120.20 time 9.15 am.
• Means 1120.20 its open price of reliance
industries for that day.
 What is HIGH
price

• This is the highest trading price

of the day
What is LOW price

• This is the lowest trading price

of the day
 What is closing
price
• Closing price means last 15 min average of
any securities in share market.
• Market closing time 3.30 pm and reliance
industries last 15 min average price is
1150.60
• Means 1150.60 its closing price of reliance
industries for that day.
 Types of TRADING
1. Intraday trading -: Buy and sell same day.
2. Delivery trading -: Buy and sell not for same
day
INTRADAY TRADING.
A. Long -: First Buy then sell.
B. Short -: First sell then Buy.
INTRADAY TRADING
• Mr. A have Rs 20,000/- in his Trading
Account.

• Broker give 5 times intraday trading limit.

• Mr. A can purchase Rs 1,00,000/- Share for

Intraday trading.
INTRADAY TRADING
• Mr. A Purchase 100 Share of reliance @ Rs
1000 Per share. Date 01/01/2010 time morning
10 am.
• Sell 100 share of reliance @ Rs 1020 per share
for same day time 2 pm.
• Profit 100 X 20 = 2000/-
• Buying and Selling same day.
DELIVERY TRADING
• Mr. A Purchase 100 Share of reliance @ Rs
1000 Per share. Date 01/01/2010 time morning
10 am.
• Sell 100 share of reliance @ Rs 1500 per share
for next day, week, month, year etc
• Profit 100 X 500 = 50,000/-
• Buying and Selling not for same day.
DELIVERY TRADING
• Mr. A have Rs 20,000/- in his bank account.

• Broker give 1 times limit for delivery Trading.

• Mr. A can purchase Rs 20,000/- Share for

Delivery trading.
 TYPES OF ORDERS
1. LIMIT ORDER :
Instruction To The Broker Limiting Him To Buying At A Stated Maximum
Price Or Selling At A Stated Minimum Price .

You Want To Buy UPL Offer Price 565.00

So You Tells Your Broker To Buy UPL @ 561.50

 Thus It Becomes, Your Limit Order To Buy

 This Order Will Be Executed If Offer Price Reaches To Your Price

 If It Doesn't Reach To That Price In That Day,Then End Of The Day Order Will Be
Automatic Cancelled.
 TYPES OF ORDERS

If you want to sell ITC Bid price 185.00

So you tells your broker to sell ITC @ 189.50

Thus it becomes your LIMIT SELL order

At which BID PRICE your order will be executed ?

 SILENT FEATURES OF LIMIT
ORDER
 Limit order gives buyer & seller certainty about
price.
 Limit order takes uncertain time for execution.

 Limit order can be changed any numbers of times

before order execution.
 Limit order can be cancelled before order execution.
 TYPES OF ORDER
2.MARKET TYPE : when you decides to buy or sell by
market type you never tell the price, you agrees the terms.
 when you decides to buy by market type, you agrees the
best seller price .
 when you decides to sell by market type, you agrees the
best buyer price .
 for buyer best seller is lowest price seller .
 for seller best buyer is highest price buyer .
 ORDER BOOK
IT BECOMES FROM YOUR UNEXECUTED LIMIT ORDERS.(
RELIANCE )
BUY PRICE BUY QAN SELL PRICE SELL QAN

752.OO 1000 756.00 1000

750.00 3000 758.00 2000
748.00 2000 760.00 2000
746.00 2000 762.00 3000
744.00 2000 764.00 2000
T.B.Q. 1,92,000 T.S.Q. 2,24,000
 HOW PRICES RISES ?
IF SOME ONE PLACES ORDER BUY REL@ 752 10,000 QUANTITY.

BUY PRICE BUY QAN SELL PRICE SELL QAN

752.OO 10000 752.00 1000

750.00 3000 754.00 2000
748.00 2000 756.00 2000
746.00 2000 758.00 3000
744.00 2000 760.00 2000
T.B.Q. 1,92,000 T.S.Q. 2,24,000
 HOW PRICES DECREASES ?
IF SOME ONE PLACES ORDER SELL REL@ 752 10,000 QUANTITY.

BUY PRICE BUY QAN SELL PRICE SELL QAN

752.OO 1000 752.00 10000

750.00 3000 754.00 2000
748.00 2000 756.00 2000
746.00 2000 758.00 3000
744.00 2000 760.00 2000
T.B.Q. 1,92,000 T.S.Q. 2,24,000
 UPSTOX
• Adhar card link with Mobile no
• Pan card
• Saving account cheque book with printed
name
• Id size photo
• 6 month bank Statement.
 Brokerage Charges
XYZ Broker Charge
0.05% for Intraday and 0.5% for Delivery Trading
If you buy 10 Lac share for intraday so brokerage is Rs
500
If you buy 10 Lac share for Delivery so brokerage is
5000
Upstox Charge Intraday = 0.05% or Rs 20 whichever is
low
If you buy 10 Lac share for intraday so brokerage is Rs
20
 Brokerage Charges
Delivery Brokerage = 0 No brokerage for Delivery

Three trading terminal web software and mobile app free

of cost
 FOR TRADINIG YOU HAVE TO
GENRATE VIEW
 YOUR TRADING VIEW CAN BE BULLISH OR BEARISH.

 YOU CAN GENRATE YOUR TRADING VIEW WITH HELP

OF & FUNDAMENTAL ANALYSIS & TECHNICAL ANALYSIS
 FOR SHORTER TERM TRADING , YOU HAVE TO
GENRATE YOUR TRADING VIEW WITH HELP OF TECHNICAL
ANALYSIS .
 FOR LONGER TERM TRADING , GIVE HIGHER WEIGHTAGE ON
FUDAMENTAL ANALYSIS & LESSER WEIGHTAGE ON TECHNICAL
ANALYSIS .
IF YOUR VIEW ON ANY STOCK IS
BULLISH
 LIKE TODAY IS 24 FEB 07 , YOU ARE BULLISH ON RELIANCE IND.
 INITIAL MARGIN : RS 20000  TRADING LIMIT : RS 1 LAC
YOU GIVE YOUR BROKER ORDER ………

100 710

ON 11:10:09 LONG ( TEJI ) ( + )

 IF YOU SQURE OFF YOUR
POSITIN LIKE………

BUY : REL EQ @ 710.00 SELL : REL EQ @ 735.00

100 Q 100 Q + 2500
3.00
3.30.
ON 11:10:09 3.00
SELL : REL EQ @ 695.00
100 Q -- 1500
 BY SQURING YOUR POSITON LIKE THIS ,U TAKE HOME
ONLY PROFIT OR LOSS WHICHEVER U HAVE MADE !
IF YOU TAKE POSITION LIKE………
BUY : REL EQ @ 710.00 UNLIMITED PROFIT
100 Q
PROFILE BECOMES
ON 11:10:09
UNLIMITED LOSSES
 U CAN RSTRICT LOSSES BY PUTTIG TRIGGER PRICE
 IF YOU WANT TO MAXIMUM LOSS OF RS 7 PER SHARE

100 700 703