लगातार बिकवाली का दबाव झेल रहे कीमती धातुओं के भाव मे पिछले सप्ताह सुधार दर्ज किया गया। सोने के भाव 47600 रुपय प्रति दस ग्राम के निचले स्तरों से पलट गए और सप्ताह मे 1700 रुपय प्रति दस ग्राम से ज्यादा की तेज़ी देखि गई। घरेलु वायदा चाँदी के भाव भी 58880 रुपय प्रति किलो के निचले स्तरों से पलट गए और यह सप्ताह मे 4500 रुपय प्रति किलो तक तेज़ हुई। घरेलु बाजार मे शादियों के सीज़न के दौरान सोने के भाव भी कम हो गए थे जिससे मांग को सपोर्ट मिला और कीमती धातुओं के भाव मे वापस चमक लौट आई। ब्रिटैन द्वारा कोवीड के टिके को अप्रूवल देने के बाद भी सोने के भाव निचले स्तरों से बढ़ गए है।

निवेशकों को अमेरिका से मिलने वाले राहत पैकेज का इंतजार है जिसमे अभी तक अनिश्चिता बनी हुई है। 908 लाख करोड़ का द्विपक्षीय पार्टी के प्रस्ताव मे भी अनिश्चित होने से और 11 दिसंबर से होने वाले अवकाश के पहले निर्णय पर निवेशकों की नज़र रहेंगी जिससे सोने और चाँदी के भाव बढ़ रहे है। अमेरिकी कंपनी द्वारा निर्मित कोविड टिके पर भी इस सप्ताह होने वाली बैठक महत्वपूर्ण है।डॉलर सूचकांक मे 1.22 प्रतिशत की सप्ताह मे गिरावट दर्ज की गई है और यह ढाई साल के निचले स्तरों पर पहुंच गया है।

डॉलर मे गिरावट होने से अन्य मुद्रा के निवेशक कीमती धातुओं की तरफ आकर्षित हुए है। सोने में निवेश को राजकोषीय प्रोत्साहन योजनाओं के खिलाफ बचाव के रूप में देखा गया है जो मुद्रास्फीति को बढ़ाने के साथ ऋण और मुद्रा अवमूल्यन को बढ़ाने की क्षमता रखते हैं। अमेरिका से जारी होने वाले पैरोल के मासिक आंकड़े धीमी हुई अर्थव्यवस्था के कारण 6.1 लाख से घट कर 2.45 लाख पर पहुंच गए है जो कीमती धातुओं के भाव को सपोर्ट कर रहे है।

तकनिकी विश्लेषण

इस सप्ताह कीमती धातुओं के भाव को नीचले स्तरों सपोर्ट मिल सकता है। फरवरी वायदा सोने मे 48500 रुपय पर सपोर्ट और 49700 रुपय पर प्रतिरोध है। चाँदी के भाव भी इस सप्ताह सकारात्मक रह सकते है और इसमें 62000 रुपय पर सपोर्ट तथा 66000 रुपय पर प्रतिरोध है।

Share market is a place where everyone wants to make money through investments irrespective of terms. Many investors are masters in doing intraday trading, however, some of them want to play safe and often go for long term investments.

For beginners, it is always difficult to decide whether to invest or not to invest in the stock market as they think that stock trading is full of risks. Well, they are not wrong. Although the share market is full of risks, it offers a huge positive return to many investors.

Share Market Investment Tips

To successfully trade in the stock market, all you need is to learn some highly impactful stock market tips and tactics and you are ready to go.

Before you get a deep dive into stock market trading:

Let's understand the basics first.

Demat and Trading Account

This is the foremost step to enter into the stock market. Opening a Demat account is a must as without it you can't trade online. Demat account is a dematerialization where you can buy, sell and hold your shares in a dematerialized form. Once you open a Demat account, you can start to invest in the stock market.

Stock Market Research

Many beginners believe that stock research is not that important, they instead rely on futile stock tips and unreliable sources.

As you all know, financial markets are full of risks, inconsistencies and volatility. Therefore it is crucial to do a bit of research and planning before buying any stock.

Stock market research and analysis are crucial for any investor because it helps them to get the full insight of stocks such as stock’s history, its past performance, its share price and trends.

Based on the research, you can get an idea when the stock will give you a positive return or not.

Difference Between Primary And Secondary Market

When a company first time lists its shares (IPO) in the share market, it is known as the primary market. Once the shares get listed on the stock exchange, the company gets an authority to trade in the market, which is termed as the secondary market.

Who determines the share price in the Stock Market?

The share market majorly depends on demand and supply. When a company is earning many profits, its share prices go up. As the demand for the stocks goes high, more investors want to buy those stocks which in turn increase the prices of stocks or vice versa.

Role of Broker in Share Market

A stockbroker assists you in buying and selling of shares. Apart from helping in buying and selling, they also provide tips and recommendations on stocks such as which stocks one should buy, how to successfully invest in the share market, which is the best time to sell a share and more.

The Bottom Line

The stock market is indeed a great way to achieve financial gains. Anyone who has done enough research and analysis can easily earn money from the stock market. Although there are many risks and uncertainty associated with the stock market, a smart investment will definitely give you positive returns. For beginners, there are numerous stock broking companies available in India. These companies assist beginners in selecting the right investment type while trading in the stock market.

Options Trading is becoming insanely popular among investors as it allows them to hedge risk while earning a good income. Also, options trading allows many traders to hedge risks, speculate high yield stocks, and earn income.

There are different strategies through which investors can diversify their portfolios and earn high returns. With options trading, you can buy or sell an asset at a set price at a certain date.

An option trader needs to determine the correct underlying asset as the value of options stock gets derived from the underlying asset. Hence to increase trading options, traders need to focus on selecting the right underlying stocks to trade.

As you add some options to your portfolio, you will get to realize that the method of buying and selling is really helpful. This is because options stocks add more leverage and protection as well as yield high earnings.

Apart from investing goals, options contracts help you to achieve what you are trying to do. For instance, you may add option contracts to hedge against stocks that are currently running in a downturn thus helps to lessen the losses.

How Traders Choose the Right Stocks for Options Trading

Do Some Research

It is important to do some research to find the best stocks for options trading. Do research related to review earning reports, monitor upcoming events, industry-related search, and check how these events impact the stock market.

Check out the management team of a company, go through their website and press releases, check out the products and services they provide and check if they provide any proven record of success or not.

Choose the Liquidity Factor

Before selecting any stocks in options trading, make sure that the stocks you choose are highly liquid. This is because liquidity allows you to enter the trade and exit from the trade more easily that too without paying heavy slippages.

The most liquid stocks with greater volumes indicate that the trading volume of a stock is ongoing and cannot be affected by any upcoming event. Many investors often get confused with the liquidity of stocks and the liquidity of their options. However, the case is somewhat different from what you think. If a stock is liquid that doesn't mean that its options are also liquid.

Keep a Track of Implied Volatility

Volatile options trading provides greater returns irrespective of underlying stocks moves up or down. Implied volatility is the most important factor to determine the options price as it tells you whether a market is expecting to move or not.

High volatility always comes with high premiums that help to determine that the volatility will not get increased which causes the option to get exercised.

In contrast to this, lower implied volatility means benefits to the buyer of the option as it gives cheaper priced options.

For greater gains, traders can also compare a stock’s historical volatility with its implied volatility. For options traders, it is crucial to keep an eye on upcoming events that could affect the implied volatility of an underlying asset.

Identify Upcoming Events that Impact Stock Prices

Traders who are interested in options trading, need to pay a little attention to stock-specific events. Economic data release, earning reports, election results, and product launches have a significant impact on stock prices.

Here, traders need to predict when a stock is likely to have a big price movement. Carefully notice that movement, get into it, and exit before the movement is over and starts to reverse.

Stick to Your Watchlist

It is feasible to create a watchlist of stocks with whom you are more familiar with the movements and behavior of stocks. For beginners, it is suggested to stick to those stocks on which you made correct predictions in the past. This is recommended for those, who are not much experienced.

Determine Your Investment Objective

If you are an options trader, you need to determine what your trading objectives are. Knowing investing objectives help traders to get a clear idea of what are the goals that help them to choose the best investment strategies.

Final Thoughts

Needless to say, options trading helps traders to hedge risks when the stock market goes down. However, there are multiple points you need to consider while investing in the stock market. Traders need to do a bit of research, review historical data and charts to identify trends before investing in options trading.

Many of you have often wondered about stock trading and its movements. If you closely monitor the stock market movements, you may get noticed that stock market trends do not move in a single direction.

Sometimes they are up, sometimes they are down. Indeed, it's a big challenge to predict the fluctuations of prices in the Indian stock market as it is difficult to get the exact catch of stock market trends and position.

Needless to say, stock markets are highly volatile in nature. Therefore, stock prices are affected by several factors.

Before taking a dig deep into the stock market trends, let's understand the demand-supply chain first.

Stock market trading works like any other market and mainly focuses on demand-supply chains. For instance, the price of a product is determined by the demand and supply of that product. Let’s understand it with a suitable example:

Many people buy watermelon during the summer as it helps them to stay dehydrated and healthy. As the summer comes, the price of watermelon suddenly increases, which makes retailers purchase watermelon at a higher price than the normal rate.

The above example defines the mechanism of stock prices. The stock market mainly works on demand and supply. Demand and supply play a significant role in determining share prices. If the demand for a particular stock rises, the stock prices start to increase which in turn attract more bidders to bid the maximum to buy the share.

If the demand for a stock increases, the price increases or vice versa.

Here, we will uncover some crucial factors that affect the stock market prices:

Company Related Factors

Any changes in the company whether it is positive factors or negative factors can directly affect a stock’s price. Such factors are increased sales revenue, debt repayment, upliftment in the cash flow statements. Positive factors are:

Company’s dividends - If a company declares dividends to its shareholders, it can directly affect the price of a stock.

Any new changes regarding the present profit or future growth of a company.

Launch of a New Product - If a company first time launches its new product such as IPO, it highly affects that company’s share price.

Negative Factors are:

Any product failure of a company can highly affect the share’s price.

If a company merges with another company, that too affects the share price.

Company’s total employee turnover and high manufacturing costs can also influence the share’s price. Other factors include the scams or scandals involving a company.

Exchange Rates

Indian stock market heavily depends on exchange rates. This is because the value of Indian rupee directly affects the share prices. As the Indian rupee hardens with respect to other currencies, the goods sold by Indian companies become expensive in foreign markets. On the other hand, softening of Indian rupee decreases the value of goods sold in foreign markets.

A strong Indian rupee is the main cause behind the upliftment of stock prices in the Indian stock market.

Stock Market Trends

You must be aware of the terms bull market and the bear market if you are experienced investors. The bull market and bear market trends cause a great stock market fluctuation.

Bull Market Trends

In the Bull market trend, investors are keenly interested in the future of the stock market. Hence they invest more money in the stock market which in turn leads to an overall increase in the stock market prices.

Bear Market Trends

In bear market trends, investors are worried about the money that they have invested in the stock market. They are uncertain about unpredictable market trends which in turn makes the stock prices fall.

Government Policies

The policies controlled by the government have a high impact on stock market trends as the policies directly affect the investor’s sentiments and the economy. If the policies deemed in the favor of investors, share price gain. On the other hand, if the policies fail to comply with investor’s investments, it negatively affects the stock market.

Demonetization in India was the best example of government policy that affected the entire stock market. When demonetization was firstly foisted in India, the stock market crashed due to lack of liquidity.

Natural Disasters

Any natural calamity such as drought, earthquakes, floods badly affect the stock price of a company. These disasters not only impact on human displacement but also lead to asset destruction which in turn reduce the stock market price. For instance, a share trading company faces many difficulties during the natural disasters which in turn lead to depreciation of revenue. Hence it is advisable to check the weather forecast before investing in any share of the company.

Political Situation

Politics can heavily influence the Indian stock market. Before the election, there is huge volatility in the stock market. The rise or fall of share price mainly depends on the expectations of voters. The movements in stock prices were observed when the NDA government was formed led by prime minister Narendra Modi.

Takeaway

Needless to say, stock prices of a company may rise or fall due to certain factors that even the best analysts sometimes fail to recognize the actual reasons behind the fluctuation of a share price. Do remember that each stock price is unique and so its price variations. It is impossible to predict the actual reasons behind the stock’s price. If you are seeking investment in the long run, these factors help you to make the best investment decisions.

“FII” is commonly used amongst investors in the stock market. This is because FII is such entities that pool large amounts of money and invest in financial securities such as real estates, investment assets and the stock market and more. As they invest the bulk of their money in the stock market, the inflow and outflow of money highly affect the stock market movement significantly. There are many headlines you see in the news when the stock market drops. For instance, Sensex falls 500 points on FII selling. Such incidents happen when FIIs pull their money from various investment sectors. Nowadays Indian stock market has become the best destination for FII. Foreign institutional investors poured more money into the stock market than other investment sectors. They have to buy and selling powers in their hands and hence they can change the course of the market within minutes. In India, FII are bound to not invest in equity issued by Asset Reconstruction Company. Also, they are not allowed to invest in any organization who is involved in chit fund, Nidhi company, agricultural activities and real estate business. Before we take a dig deep into getting benefits from FIIs, let's understand about FII and how do they affect the Indian stock market:FII are those institutional investors who invest in a country outside on one where the organizations are based. For example, US Mutual funds invest in the Indian stock market. FII pools large amounts of money and invests in those securities that highly impact the stock market movements.

Why do FIIs enter the Stock Market?

Like any other investors, FIIs look for the investment opportunities which provide them better return against their investments. Keeping in mind, they primarily focus on emerging markets like India, China, Brazil and more. The main reason behind the selection of emerging countries is that these countries have been growing at a greater pace as compared to other developed countries and offer better investment opportunities for FII. India’s high GDP rate over the few years forced FIIs to invest in Indian stock market. Apart from growth, there are other important parameters such as liquidity, political influence and geographical conditions. Although any stock market easily welcomes FIIs to invest their money, however, they have the potential to create chaos in the stock market.

Why is FII important for developing an economy like India?

FIIs are good for developing economies such as India as FII investment strengthens the global confidence in an economy and stock market. For countries like India, the investment amount brought in by foreign institutions generally adds to foreign reserves which can be used by the government to import oil, machinery and more.FII investment in a country boosts the economy of that country which in turn makes FDI follow suit. With the significant increase of foreign investments in any country makes FDI take part in management such as joint venture, merger, investments in technology-oriented products and more. FII always purchases stocks by doing fundamental analysis of each stock such as evaluation, research of those stocks that lead to increased demand on companies to become transparent to retail investors. Secondly, FII cash inflow brings a large capital which is the main cause of the opening of the stock market. Needless to say, FIIs invest huge foreign capital in the Indian stock market which strengthens the confidence of local investors of Indian stock market. Also, FIIs cash inflow not only uplifts the stock price movements in financial markets but also improves the alignment of asset prices to fundamentals. Another crucial benefit of FIIs is that they increase the competition and efficiency of financial markets.

FII’s Effect on the Indian Stock Market

FII holding percentage is considered as an important factor while analyzing a stock. When a percentage of holding increases in stocks, the stock price goes high or vice versa. If an FII invests in any company, the growth of the company automatically increases. A financially stable company that has a stable FII percentage of holdings would be considered as a safer investment option. Hence, when FII removes its part of stocks from a company, the price of stock actually falls.

Conclusion

FIIs hold a great contribution to the Indian stock market, however, their investment percentage is fluctuating from time to time. Besides, FIIs investment in the Indian stock market is considered as a major factor that influences the stock price of a company. Hence, FIIs are a crucial economic indicator that helps investors to analyze a single stock and the whole stock market in an effective way.

Equity trading involves buying and selling shares or stocks of companies on the stock market. It's a way for investors to own a part of a company and benefit from its growth. Equity trading has a long history in India, dating back to the establishment of the Bombay Stock Exchange in Mumbai. Over the years, it has grown in popularity, especially among young investors, due to the potential for positive returns with minimal hassle.

The Evolution of Trading in India

Trading in India started with manual processes and lengthy documentation, which was tedious. However, with the advent of online trading, the process has become much more straightforward. Now, investors can easily trade shares online by opening a Demat account, which holds their shares in an electronic format.

Types of Trading in the Indian Stock Market

There are two main types of trading in India:

1. Intraday Trading: In this type, you buy and sell shares within the same day. You must square off your position before the market closes.
2. Delivery Trading: This type allows you to hold shares for more than one day, possibly even weeks, months, or years. Though the brokerage for delivery trading is higher, it carries less risk compared to intraday trading.

How to Start Equity Trading in India

Equity trading in India has become increasingly accessible and popular, especially with the rise of online trading platforms. Here's a step-by-step guide to help you get started:

1. Understand the Basics

• What is Equity Trading? Equity trading involves buying and selling shares of companies listed on stock exchanges. When you buy shares, you become a part-owner of the company and can benefit from its growth and profits.
• Types of Trading: Familiarize yourself with the two main types of trading:some text
  • Intraday Trading: Buying and selling shares on the same day.
  • Delivery Trading: Holding shares for more than one day, allowing for long-term investment.

2. Open a Demat and Trading Account

• Demat Account: This account holds your shares in an electronic format. It's essential for trading in the stock market.
• Trading Account: Linked to your Demat account, this is where you execute buy and sell orders.
• How to Open: You can open these accounts through a brokerage firm. Many firms offer the convenience of opening accounts online.

3. Link Your Bank Account

Your trading account needs to be linked to your bank account for seamless transactions. This ensures that you can easily transfer funds when buying or selling shares.

4. Choose the Right Broker

• Registered with SEBI: Ensure that the brokerage firm you choose is registered with the Securities and Exchange Board of India (SEBI).
• Brokerage Fees: Compare fees across different brokers to find one that suits your trading style.
• Platform Features: Look for a trading platform that is user-friendly and offers tools like research reports, technical analysis, and customer support.

5. Start with Low-Risk Stocks

As a beginner, it's wise to start with stocks that have lower risk. Blue-chip stocks or stocks from well-established companies are often more stable and less volatile.

6. Manage Your Risk

• Set a Stop Loss: A stop loss helps you limit potential losses by automatically selling a stock when it reaches a certain price.
• Diversify Your Portfolio: Spread your investments across different sectors to reduce risk.

7. Learn to Analyze Stocks

• Fundamental Analysis: Focuses on a company’s financial health, including earnings, assets, and liabilities.
• Technical Analysis: Involves studying charts and price patterns to predict future stock movements.

8. Monitor the Market

Stay updated with market news, trends, and economic indicators that can affect stock prices. Many trading platforms offer real-time updates and analysis.

9. Start Trading

With your accounts set up and some basic knowledge, you can start trading. Begin with small investments, and as you gain experience and confidence, you can increase your investment amounts.

10. Continuous Learning

The stock market is dynamic, and continuous learning is essential. Keep up with market trends, financial news, and advanced trading strategies to refine your approach.

Methods to Invest in the Stock Market

Selecting the right online stock broker is crucial. Here are some strategies:

• Investment Strategies: Start with a small amount and define your risk tolerance.
• Financial Analysis: Research is key. Understanding the past and present performance of stocks will help you make informed decisions.
• Charts and Indicators: Use fundamental and technical analysis to predict stock price movements.

Advantages of Equity Trading

• Higher Returns Over Time: While equities can be volatile in the short term, they tend to outperform other investments over the long term.
• Protection Against Inflation: Equities are a good hedge against inflation, helping you maintain your purchasing power.
• Potential for Dividends: Established companies often pay regular dividends, providing a steady income.
• Wealth Creation: Equities can be a key component of a long-term financial plan.

How to Get Into Equity Trading

There are several ways to start trading equities:

1. Day Trading: Involves analyzing stock price movements and closing positions by the end of the trading day.
2. Options vs. Equity Trading: Options are contracts for future transactions at a set price, while equities can be held indefinitely and offer dividends.
3. Social Trading: This involves copying the strategies of successful traders, making it a good option for beginners.

Conclusion

Equity trading is a great way to invest and grow your wealth, but it comes with risks. It's important to do your research and understand the basics before you start. Open a live trading account, utilize the tools and resources available, and begin your journey in the stock market. With the right strategies, equity trading can be a profitable venture.

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