Delta One Stock Future | Stock Future Tips | Stock Future Nivesh Tips
                     Presented By :
Trade Nivesh
INDEX
Definition of Stock and Stock market
Types Of Stock Exchange
Stock exchange in World and India
Trading In Stock Market
Demat Account
Importance Of Stock Market in stock trading
Investment in various types of trading
Stock Market Conditions
Calculations Of Indices
Benefits of Investing in shares
Causes Of Price Fluctuation
STOCK MARKET OR SHARE 
 MARKET
• Stocks are issued by companies in order to raise capitals  
and are bought by investors in order to acquire a portion  
of the company.
• A Stock market is the place where buying and selling of  
stocks takes place. Nowadays due to internet and  
advanced technology buying and selling of stocks takes  
place anywhere in India and also from foreign country,  
there is no need to be physical present in exchanges like  
NSE and BSE. Stock markets are perfect competitive  
market.
Types of Market
1. Normal Market :
Order Traded in regular lot Size
For demat shares, lot size is 1 share
2. Odd Lot Market :
Used for limited physical Market
Order not traded in regular lot Size but both price &
quantity should tally with each other.
3. Spot Market :
Different settlement periods depends on normal 
 orders
Sell & Purchases takes place on same date.
4. Auction Market :
Initiated by exchange on behalf of members 
 for settlement related reasons
Reasons are shortage and bad deliveries 
 Loss is recovered from members
Big Stock Markets
NYSE ( New York Stock 
Exchange)
NASDAQ-America
Dow Jones
S&P‘ 500
Tokyo Stock Exchange
 London Stock Exchange
Bombay Stock Exchange, India
National Stock Exchange, India
Stock Exchanges in India
There are 22 stock exchanges in India. But, two of them 
 are biggest.
NSE (National stock exchange) - is the 9th largest stock 
 exchange in the world by market capitalization and  
largest in India by daily turnover and number of trades,  
for both equities and derivative trading.
BSE (Bombay stock exchange) - is the oldest stock  
exchange in Asia with a rich heritage of over 137 years  
of existence.

Bombay Stock Exchange
• Location: Mumbai
• Index: Sensex (SENSitve indEX)
• Consist of group of 30 Stock
• Members: 852
• Date of Launch: 03 January 1986
• Base period:1978-79
• Base Index Value:100
• Sectoral indices
• Timing: 09.30 AM – 03.30 PM
• Listed Co. : over 6000
National Stock 
 Exchange
• Location: Mumbai
• Index: Nifty (National Stock Exchange Fifty)
• Consist of group of 50 Stocks
• Date of Launch: April 1994
• Base period: 1993-94
• Base index value: 1000
• Members 726
Stock Broker
• A stockbroker is person who is licensed to trade 
 in shares.
• Brokers also have direct access to the share 
 market and can act as your agent in share  
transactions.
• For this service they charge a fee i.e. 
brokerage.
• They can also offer additional services like  
advice on shares, debentures, government  
bonds and listed property trusts and non-listed 
 investment options (cash management trusts, 
 property and equity trusts.
TRADING IN STOCK MARKET
• The market regulator, the Securities and  Exchange 
Board of India (SEBI), has made it  compulsory to 
open the demat account if you  want to buy and 
sell stocks.
• A person want to buy/sell stocks in the stock  
market has to first place his/her order with a  
broker or can do themselves using online trading  
systems.
• The stocks purchased will be sent to the your  
demat account. This process is called Rolling  
Settlement Cycle.
What is Demat account?
DEMAT stands for DEMATerialization. It is  
process in which physical paper shares are  
converted into paperless (computerized) form.
In India there are two Depository organizations  
called NSDL (National Securities Depository  
Ltd.) &CDSL (Central Depository Services India  
Ltd.)
Brokers and most of Banks provides facility to  
open demat account.
Important terms in stock market  
and in stock trading
Open- The stock price in beginning of Day(i.e. in 
 morning).
High - The stock price reached at the highest level in 
 a day.
Low - The stock price reached the lowest level in a 
 day.
Important terms in stock market and 
 in stock trading
Close - The stock price at which it remains after the end 
 of market timings or the final price of the stock when  
the market closes for a day.
Volume - Volume is nothing but quantity.
Bid - The Buying price is called as Bid price.
Offer - The selling price is called offer price.
Investment in Short term, Mid 
 term and Long term trading
Short Term Trading -
Stock trading done from one week to couple of  
months is called short term.
Mid term Trading -
Stock trading done from one month to couple of  
months, say six to eight months is called mid term  
trading.
Investment in Short term, 
Mid  termand Long term 
trading
Long term trading -
Stock trading done form couple of months to  
couple of years is called long term trading.
Companies whose fundamentals are good and have  
good future plans then the stocks of these  
companies are used for long term trading.
Generally traders having good capital go for long  
term trading.
Stock Market Conditions
There are two ways to describe the general conditions of  
the stock market:
1)BULL MARKET
2)BEAR MARKET
Bull Market -
A Bull Market indicates the constant upward movement of  
the stock market. A particular stock that seems to be  
increasing in value is described to be bullish.
Stock Market Conditions
BEAR MARKET
A bear market indicates the continuous downward  
movement of the stock market. stock that seems to be  
decreasing in value is described to be bearish.
How Sensex Index is calculated
The formula for calculating the sensex =
(sum of Free Float Market capitalization of 30 benchmark
stocks)* Index Factor
Where;
Index Factor = 100/market cap value in 1978-79.
Example on Sensex Index 
 calculation
Assume sensex has only 2 stocks namely SBI and  
RELIANCE. Total shares in SBI are 500 out of 200 are  
held by government and only 300 are available for  
public trading. Reliance has 1000 shares out of which  
500 are held by promoters and 500 are available for  
trading. Assume price of SBI stock is Rs. 100 &  
Reliance is RS. 200.
Example on sensex  
calculation
Solution –
Then Free Float Cap of these two company
= (300*100+500*200)
= 30,000+1,00,000
= 1,30,000
Assume market cap during the year 1978-79
was  25000
Then SENSEX = 1,30,000*100/25000
= 520
How Nifty Index is calculated
The National Stock Exchange (NSE) is  
associated with Nifty
The calculation of Nifty is same as we  
calculated SENSEX. But with two key  
differences.
1. Base year is 1995 and base value is 1000
2. Nifty is calculation based on 50 stocks.  
everything else remaining the same in
nifty  index calculation as well.
Example of Nifty Calculation
• Assuming Base index=1000 , Market Cap index consist 
 of 5 stocks, then
Company Current Market  Base Market  
Capitalisation Capitalisation 
(Rs.  In Lakhs)  (Rs. In 
Lakhs)
Reliance 16,68,791.1 16,54,247.5
AB & U 8,72,686.3 8,60,018.25
INFOSYS 14,52,587.65 14,65,218.8
HLL 26,75,613.3 26,69,339.55
Tata Tea 6,60,887.75 6,62,559.3
Total 73,30,566.1 73,11,383.4
Cont……..
Index= ( Current Market Capitalisation ) 
 Base Market Capitalisation  
Multiply by Base Value
Index= 73,30,566.1 *1000
73,11,383.4
Index= 1002.62
Important Indices in the world
Name of Country Weight No. Pf Base Base  
 Index   Year Valu
Stock e
S & P CNX NSEIL, Market Capitalisation 50 1995 1000
Nifty India
SENSEX 30 BSE, Market Capitalisation 30 1978-79 100
India
NASDAQ NASDAQ Market Capitalisation 100 1985 125
100 , USA
FTSE 100 UK Market Capitalisation 100 1984 1000
Hang Seng Hong Market Capitalisation 33 1964 100
Kong
Dow Jones USA Price 30 1928
Nikkei 225 Tokyo Price 225 1949
Benefits of investing in shares
• Possibility of increase in 
 value of share
• Income from dividends
• Easy liquidity
• Tax benefits on income  
earned such as exemptions  
U/s 10(34) for dividends,  
Sec 54 for calculating STCG 
 & LTCG
CAUSES OF PRICE FLUCTUATION
1.DEMAND AND SUPPLY
2.BANK RATE
3.SPECULATIVE PRESSURE
4. ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL 
 INSTITUTIONS
5.CHANGE IN COMPANY’S BOARD OF DIRECTORS