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    What is Stock (Share) Market and How to Trade in Indian Stock Market?

    The meaning of what is Share Market and How to trade in Indian Share Market. Some Investor wants to invest in share market and also want to trade but they don’t understand the meaning of share market and what activates happen in share market. We try to give Knowledge to beginners in share market. In Indian Stock Market there is mainly two share market.

    NSE (National Stock Exchange) Established in 1992 NSE provides a modern, fully automated screen-based trading system in India. NSE has a huge market

    capitalization that makes the tops twenty's stock exchanges in the World. In India there are some other exchanges but, NSE and the Bombay Stock Exchange are the two most traded and reliable exchanges in India. NSE offers trading in the following segments Equities, Indices, Mutual Funds, IPO, Derivatives, Debt Funds etc

    BSE (Bombay Stock Exchange) Bombay Stock Exchange was established in India in the year 1875. Today it is considered the fastest stock exchange in Asia. The Pre-Open Trading Session starts at 09.00 AM and Ends at 09:15 AM. The Normal trading Session Resumes at 09:15 AM and Ends at 03:30 PM

    The NSE Share market where shares of companies held by public are issued and traded through intermediaries like brokers are called Stock Markets. This Stock market is very important for Economy, as everybody can track the growth of the economy by looking at the stock market of that country. Companies get money as capital from the general public to invest more in their companies to create more profits in the long run. Indian stock market is one of the best markets for stock trading in the world.

    Foreign Investors invest their money in India via these markets. We provide our all Stock tips in NSE market only. Our all calls opening call, Intraday cash call, F&O calls, Index Future and Index Option, Bull-Bear Stocks, Bull Gain Future Stocks, and Wealth Creator Stocks we give NSE rates.

    What is The Meaning Fundamentals Analysis?

    In Indian share Market mostly there two types of Traders who do buying and selling in NSE segment. One is called as a Intraday Trader and second one is Long & short term trader. Generally Intraday traders follow the Technical Analysis and long & short term trader, who can also be called as Investor use's the Fundamental Analysis to take his decisions to buy or sell.

    Fundamentals Analysis

    To Trade in NSE Market, there are two types of analysis, Technical analysis and Fundamental Analysis, which need to be done before a trader / investors put his hard earned money in NSE and BSE share market. In this part, Bull Gain has tried to explain the meaning of Fundamentals Analysis (FA). The analyst / or a Advisory that gives the tips on fundamentals basis is generally for short term or long term investment. The Stock tips give by doing research using Fundamentals Analysis will not work for intraday trading. Fundamental Analysis can be either top-down or bottom-up. An investor who follows the top-down approach starts the analysis with the consideration of the health of the overall economy. The bottom-up approach is primarily concentrated on various microeconomic factors such as a company's earnings and financial metrics. Fundamental Analysis (FA) is a method of measuring a price of the stock by examining the economic and financial factors at that particular time. A Conclusion is drawn that a Stock/security is undervalued or overvalued. Fundamental analysis evaluates certain securities to create forecasts about its price in the future. Fundamental analysis uses specific indicators like EPS, P/E ratios, beta and more. Fundamental analysis is a study of each and everything that can affect the price of value. An Analyst should study all the macroeconomic factors such as the state of the Indian economy, sector wise performance using Sector Analysis Industry conditions using Industrial Analysis and also the company's performance using Company Analysis. The management teams its experience etc., who take decisions for the company are also studied in this Analysis. The Study of the future Trend of market whether bullish or bearish etc., is also to be done in Fundamentals Analysis. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued.

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    What is The Meaning Fundamentals Analysis?

    In Indian share Market mostly there two types of Traders who do buying and selling in NSE segment. One is called as a Intraday Trader and second one is Long & short term trader. Generally Intraday traders follow the Technical Analysis and long & short term trader, who can also be called as Investor use's the Fundamental Analysis to take his decisions to buy or sell.

    Fundamentals Analysis

    To Trade in NSE Market, there are two types of analysis, Technical analysis and Fundamental Analysis, which need to be done before a trader / investors put his hard earned money in NSE and BSE share market. In this part, Bull Gain has tried to explain the meaning of Fundamentals Analysis (FA). The analyst / or a Advisory that gives the tips on fundamentals basis is generally for short term or long term investment. The Stock tips give by doing research using Fundamentals Analysis will not work for intraday trading. Fundamental Analysis can be either top-down or bottom-up. An investor who follows the top-down approach starts the analysis with the consideration of the health of the overall economy. The bottom-up approach is primarily concentrated on various microeconomic factors such as a company's earnings and financial metrics. Fundamental Analysis (FA) is a method of measuring a price of the stock by examining the economic and financial factors at that particular time. A Conclusion is drawn that a Stock/security is undervalued or overvalued. Fundamental analysis evaluates certain securities to create forecasts about its price in the future. Fundamental analysis uses specific indicators like EPS, P/E ratios, beta and more. Fundamental analysis is a study of each and everything that can affect the price of value. An Analyst should study all the macroeconomic factors such as the state of the Indian economy, sector wise performance using Sector Analysis Industry conditions using Industrial Analysis and also the company's performance using Company Analysis. The management teams its experience etc., who take decisions for the company are also studied in this Analysis. The Study of the future Trend of market whether bullish or bearish etc., is also to be done in Fundamentals Analysis. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued.

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    A Detailed study of Fundamental analysis

    • Fundamental analysis is the study to forecasts the future price of the stock using the current available data.
    • Fundamental analysis of the following things.
    • Study of Company financial statements. News / Press releases of Company. Political condition in the Economy.
    • Trade agreements and Global Events that could Impact.
    • Competitor analysis a Study of Other Companies in the Same Industry.

    Any bad news of the above is likely to negatively reflect in share price, same way a positive new can boost price of the said company.

    Key performance indicators in Fundamental Analysis

    A Careful study of the following Key Performance Indicators are used in Fundamental Analysis.

    • Fundamental analysis is the study to forecasts the future price of the stock using the current available data.
    • Earnings per share (EPS)
    • Price-to-earnings (P/E) ratio
    • Price-to-book (P/B) ratio
    • Return on equity
    • Beta
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    Earnings Per Share (EPS)

    EPS also known as Earning Per Share is a financial ratio, which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time. The EPS formula indicates a company’s ability to produce net profits for common shareholders. A Higher EPS is an indication of the company’s is doing well a good returns are expected in the future too. The higher the earnings per share, the better it is for the investor. A higher EPS is a symbol of a healthy company.

    Price to Earning Ratio (P/E Ratio)

    Our Technical Team at Bull Gain has given information about Price to Earning Ratio for day traders in NSE Market. The Price Earnings Ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share price to the company's earnings per share. This Ratio can be calculated for only listed companies. Its tell us how much we are paying for each Rupees of earnings. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.

    Price-to-Book Ratio (P/B Ratio)

    The Price-to-book ratio is an fundamental indicator that shows how much the stock is worth to the current book value of the company.

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    Return on Equity (ROE)

    Return on Equity (ROE) ROE is especially used for comparing the performance of companies in the same industry. As with return on capital, a ROE is a measure of management's ability to generate income from the equity available to it. ROEs of 15-20% are generally considered good. Return on Equity is an important indicator as we can compare the company with other companies in to same business. A Company that gives high return on its equity is can continued to give better results in the future. The Return on Equity is a measurement that determines how efficient a company is when using the share holder's equity. You calculate the ROE by dividing the share holder's equity by the company’s net income.

    Beta (β)

    Beta analysis can provide great insights into the movements of a particular stock relative to market movements. Before investing in a company’s stock, the beta analysis allows an investor to understand if the price of that security has been more or less volatile than the market itself. A beta that is greater than 1.0 indicates that the stock price is more volatile than the market. For example, if a stock's beta is 1.3, its 20% more volatile than the NSE stock market. Generally firms with more growth opportunities tend to have higher betas. Technology stocks and small caps tend to have higher betas than the market benchmark. High-beta stocks are supposed to be riskier but provide higher return potential, i.e. A company with a higher beta has greater risk and also greater expected returns. A Low-beta stock poses less risk but also lower returns. Taking decision based on a sound Beta Analysis will definitely enhance the portfolio performance.

    Simple steps to start trade.

    1

    Register account

    2

    Fund your account

    3

    Start your trade


    Day Trading in
    NSE Share Market

    Investment in share market is become a very attractive source of investment in these days. The sensex is growing very fastly and investers are getting a tremendous returns. The returns on Long term investments in the stock market are higher than those on invesments held in other markets and assets. The money will likely to grow more if it is invested in the stock market then gold or property. Day Trading in stock market is another way of Getting better returns on small investments. Day trading means not holding on to your stock positions beyond the current trading day. It also means taking a position in the markets with a view of squaring that position before the end of that day.

    Benefits of Day Trading for Traders in NSE market

    • The advantage of intraday trading is that it does not block your capital after the market is over. The stock traders can very easily analyze the trend of the stock market and thus trade accordingly.
    • Most of the traders who want to make money in short time or in a day, love intraday trading. The output of Day trading in the stock market can be evaluated within one day’s profit or loss.
    • Day traders can take benefit of both rising and falling market. Day traders can do short selling to make profit from falling stocks. An intraday Stock trader has to catch the market trend, either Bullish or Bearish and trade accordingly.
    • The can earn money in both the Bearish as well as bullish trends. Day trading Brokerage is very less comparing to the brokerage that is charge for delivery based trading. These days some of the trading companies even offer half & one Paisa.
    • The Stock market can come down by 5 to 10 percent overnight due to some news from Global Market after the market hours. Day trading is not affected by this news as day traders don’t keep their positions open.
    • Day Trading if done professionally can be taken as a home based business for House wives, Retired Persons, disabled persons. Day trading Just requires a Computer, Capital and Internet to the trading.
    • Day traders does not need to study fundamental or technical of the stock they trade, they just read the charts and trade accordingly. They can also take help of the stock tips provider like A1 Intraday Tips to trade in the markets.
    • Day Trading can get more returns on investment comparing with Bank FD, Postal Saving etc many a times the stock traders earn a profit within ten to sixty minutes. Thus, they do not have to sit for a very long time in front of the terminal of stock trading.
    • The sensex is growing very fastly and investors are getting a tremendous return so day trading as become more beneficial for traders.

    Disadvantage of Day trading
    for Stock Traders.

    If any form of stock trading it has advantages and it also has disadvantages. Day Trading is done for making money, but day trading involves higher risk too of losing the capital. Bull Gain needs to highlight the same so that stock traders have the knowledge before they trade in the Stock Market.

    • Day trading carries a high risk of losing the Capital.
    • A Day Trader has to do a lot of reading and analysis to make a decent profit.
    • A Day Trader makes several trades in a day.
    • Every time they trade, they have to pay brokerage. Even if they make losses, they have to pay the brokerage to the brokers.
    • Day trading is also a very stressful job. Day trading is a very risky form of trading, which can result in considerable financial losses over a short period of time.