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What Percent of People in India Invest in Stock Market?
19% of Indians Invest in the Indian Stock Market As per the latest statistics, over 19% of Indians are investing in Indian Stock Market (Directly & Indirectly) It becomes more important to peep into the progress of other countries in aspects of risk-related investments. Equity markets are so sliRead more
19% of Indians Invest in the Indian Stock Market
As per the latest statistics, over 19% of Indians are investing in Indian Stock Market (Directly & Indirectly)
It becomes more important to peep into the progress of other countries in aspects of risk-related investments.
Equity markets are so slippery that a little negligence in a trade can wipe your built asset base of the underlying assets.
Indians have kept away from this trading business and for long they have been investing in savings, or in bank, bonds investments in public and in well-to-do private companies.
Are we Indians scared to put money into equities or do not intend to make more money? You will be surprised if I say, the current leading economies with whom we are competing, have their citizens’ participation in the stock market in this ratio. It is USA (55%), UK (33%), and China ( 13%).
Not surprisingly, over 19 percent of the Indian population participates in stock market trading directly and indirectly.
The statistical figures state that you will find 11 crore accounts in January 2023 and 8.4 crore when compared to the same time last year.
Remember, set aside the percentage of the population making their participation in the stock markets, you will find that more people participate.
They were retail investors, participating in selling their stocks rather than purchasing more stocks.
This business culture began and lasted until 2019, in which, a select category of retailers, institutional players, and foreign direct Investors, FDI began to increase their contribution in stock markets.
People (retail investors) began to make significant value investments in stock markets and it resulted in a net inflow of INR 15,200 crore.
In India’s two major stock exchanges NSE/BSE, it proved to manage 80 percent of the total trade value.
Moreover, Mumbai maintains a significant contribution of 67.8 %, Ahmedabad (11.4%) cash turnover in NSE.
In addition, you will notice Chennai being at 5.1%, and Delhi at 4.6.
See lessWhat is the Total Value of Indian Stock Market?
Market cap of the Indian Stock Market Indian stock market capitalisation is in the seventh position across the stock markets in a global scenario. Statistical figures affirm that India’s stock market capitalisation reached $3,739.930 billion in August 2023 and touched $2.7 trillion by the end of OcRead more
Market cap of the Indian Stock Market
Indian stock market capitalisation is in the seventh position across the stock markets in a global scenario.
Statistical figures affirm that India’s stock market capitalisation reached $3,739.930 billion in August 2023 and touched $2.7 trillion by the end of October 2023.
The Indian stock markets crossed three benchmarks and maintained a position within the first ten largest world’s stock markets when referred to their market value.
In 2021, local equities stood up to add a market value of 6.9 percent taking the nation’s market capital to $2.7 trillion and then onwards, India became forerunner to Canada, Germany, and Saudi Arabia.
You can observe a dip in the market capitalisation from August 2023 to September 2023 and it trailed from 3,739.930 USD bn to 3,728.885 USD bn.
CEIC has on record the database of market capitalisation from January 1993 to August 2023.
It was observed that the data had shown an all time high 3,739.930 USD bn in Month of August 2023 and a record low of 55.322 USD bn in the month of April 1993.
The graph above represents the market capitalisation of the equity for a period of one year, beginning from September 2022 to August 2023 in the Bombay Stock Exchange.
Usually CEIC does the currency conversion of the collected market capitalisation data from Rupee to the United States Dollar.
To conduct the rupee to dollar conversions, the period end market exchange rate of the Federal Reserve Board is taken into consideration.
What does Market Capitalisation Mean?
It is the total capital of all outstanding shares of a company rated at the existing stock market price.
Every company in the stock market is categorized that is dependent on the value of the market capitalisation. It can be large cap, mid cap or small cap.
Big companies with a large capital base are referred to as large or mega cap stocks and small companies depending on their market capitalisation are referred to as micro-caps.
Therefore, stock market capitalization is the sum total of all stocks capitalisations of the large cap, mid cap, or small cap.
See lessWhy is Stock Market Falling Today?
Reasons Behind Today’s Market Fall In the early hours of the stock market opening bell, Dalal Street experienced a dip in the sensex by 500 points and nifty took a dive to a new low of 19,400 mark. The reasons can be stated in brief. The Reserve Bank of India has made some policy review additions thRead more
Reasons Behind Today’s Market Fall
In the early hours of the stock market opening bell, Dalal Street experienced a dip in the sensex by 500 points and nifty took a dive to a new low of 19,400 mark. The reasons can be stated in brief.
The Reserve Bank of India has made some policy review additions that lead to the investors anxiety.
Foreign Institutional Investors, FII, sold stocks heavily as the US interest rates spiraled. With the sale of shares aggregating to INR 2,034.14 crore the market is expected to take a bearish trend in the time to come.
As a result, the benchmark stock indices experienced a steep dive on Wednesday.
Experts say that for the existent downward trend, the primary drivers were weak global cues, and the offload of the shares by the FIIs.
The global financial markets rattled with the US interest rates and that led to a fall in the US stock markets indices.
Further in India, the new economic data release on interest rates by the Federal Reserve has triggered uncertainty and it caused a decline in Sensex/Nifty stock prices.
The global markets created instability and its effect entered into the NSE/BSE domestic markets making the stocks stumble.
With the fall in the Sensex/Nifty, many sectoral indices like Nifty Bank, Nifty IT, Nifty Auto encountered loss plummeting by 1.4 %.
In the broader context, an increase in the crude oil barrels, strengthening of the US dollar, and overall fragility of the global economy has created an atmosphere of caution.
Devan Mehata, a research analyst advises investors to make a greater selection of stocks in a selective manner before moving forward to make an investment.
See lessWhat are the Best Intraday Strategies for Expiry Day?
Best Intraday Strategies for Expiry Day Let me make it clear that Intraday strategies do not apply for expiry days. Intraday trading means you buy and sell the stocks on the same day. That means, you close the positions but if you extend it for the next day, then it is known to be delivery trade. InRead more
Best Intraday Strategies for Expiry Day
Let me make it clear that Intraday strategies do not apply for expiry days. Intraday trading means you buy and sell the stocks on the same day.
That means, you close the positions but if you extend it for the next day, then it is known to be delivery trade.
In both cases, the expiry day doesn’t exist. If you want to do expiry day trading, you will find the usage of the expiry day in futures and options trading.
In F&O, a day is fixed on which the F&O contract expires and the stock is intended to be sold before or on the day of expiry.
Best Strategies for Expiry Day Options Trading
On the expiry day, you can utilize the expiry day strategies to trade and minimize the losses that would arise otherwise.
You can adopt these strategies and they are:
For Instance,
In a bear call spread you will hold two positions, buying a call option and selling a call option with lower strike price. In this process, you will have to deal with the same underlying securities on the same expiry date.
On selling a call option, you will receive a premium from the buyer; on buying a call option, you will make a premium payment. The difference in both premiums ( receivable and payable) will lower the cost of investment. In this strategy the rewards and risks are limited.
You must utilize this strategy when you realize that the price of the underlying asset shall decline to a greater extent.
The strategy is also known to bear call credit spread as you shall gain a net credit when you enter into this trade.
Additional Information on Expiry Date @NSE/BSE
In NSE/BSE, your future and option contracts (NIFTY, NIFTY Banks, etc) will be assigned to trade expiry on specific days in a week.
If you set the expiry of the F & O contract for a week, then its expiry shall be on the assigned weekday in a week.
If you set the expiry of the F&O contract for a month/quarter then its expiry shall be on the assigned weekday of the last week in a month/quarter.
In NSE,
For NiftyBank, the expiry day will be Friday of the week.
For Financial Nifty (FINNIFTY), the expiry day will be Tuesday of the week.
NIFTY MidCap Select Index (focuses on the first 25 stocks under the Nifty Midcap 150 Index, the expiry day will be Wednesday of the week.
NIFTY 50, the expiry day will be Thursday of the week.
In BSE,
Sensex Index, the expiry day will be Friday of the week.
Bankex Index, the expiry day will be Friday of the week.
Note:
If the date of expiry happens to be in the list of calendar holidays then a day before shall be considered as expiry day.
See lessHow Does IPO Allotment Process Work?
IPO Allotment Process: Everything You Need to Know The IPO allotment involves a 6-stage process starting from subscription to the final allotment. If you are planning to apply for an upcoming IPO in India, you must have some idea of how the IPO allotment process works: Here is a detailed explanationRead more
IPO Allotment Process: Everything You Need to Know
The IPO allotment involves a 6-stage process starting from subscription to the final allotment.
If you are planning to apply for an upcoming IPO in India, you must have some idea of how the IPO allotment process works:
Here is a detailed explanation of each stage of the IPO allotment process.
Subscription Period:
Before any company goes public, it announces an IPO and sets a subscription period during which investors can apply for shares.
This period usually lasts for a few days (mostly 7-10 days).
IPO Application:
Interested people will submit their application to purchase shares of the company.
During the IPO, applicants submit their applications through their respective brokers or online platforms.
In the application, investors specify the number of shares they wish to buy and at what price.
If you are not aware of how to apply for an IPO in your broker’s account, below guide will help you
How to Apply for an IPO in Zerodha
How to Apply for an IPO in Upstox Account
IPO Allotment:
Once the subscription period ends, the company, along with the investment banks, reviews the applications and determines how many shares will be allotted to each investor.
Allotment decisions are typically based on various factors such as the number of shares available, the demand for the shares, and any allocation criteria set by the company.
Lottery System Allotment:
In cases where the demand for shares exceeds the available shares (oversubscription), a lottery system may be used to allocate shares among investors.
In a lottery system, investors are randomly selected to receive shares.
Refunds:
Applicants who are not allotted any shares are typically refunded the amount they paid at the time of application.
These refunds are usually processed within a few days after completing the allotment process.
Listing:
After the allotment process is completed and shares are allocated to investors, the company lists its shares on the stock exchange for public trading.
Once listed, the shares can be bought and sold by investors on the secondary market.
Check the IPO Allotment Status Here
See lessCan We do Day Trading with 5000 Rupees?
Intraday Trading with just 5000 Rupees 5000 rupees is certainly enough to do intraday trading. I would further add that in a day trade when I could earn a profit of 5 percent consistently every week then why can’t you? Ever since I began to indulge in day trading, I concentrated on time frame chartsRead more
Intraday Trading with just 5000 Rupees
5000 rupees is certainly enough to do intraday trading. I would further add that in a day trade when I could earn a profit of 5 percent consistently every week then why can’t you?
Ever since I began to indulge in day trading, I concentrated on time frame charts to realize the stock price volatility and the possible trends like uptrend, downtrend, and sideways.
When I trade, these chart analyses enable me to cover the losses courageously when any.
You Do What I Did…
In the beginning, until you do not generate sufficient trading capital do not engage in trading on expensive stocks.
Try to conduct at least 3-day trades in a week which I did so.
Try to invest in low-value stocks, say, having a stock price of INR 50. It can be a penny stock, remember over time it shall generate decent money. Or, even turn into multi-bagger penny stocks.
Invest in larger volumes of low-priced stocks or a few stocks of high price by following the below-stated technique.
Techniques to Pool-in Funds in Trading Capital:
Initially, I entered with a limited trading capital of INR 5000.00 but the returns were relatively low like a 5 percent consistent return on investment every week.
For more capital investment, I managed to obtain more trading capital from my stock broker who covered my investments to a range of five times my trading capital. Here, for INR 5,000.00, I acquired a margin cover of INR 25,000.00, some call it margin trading too. Although it was a huge amount, it was manageable.
Your stock price must be about one percent of the trading capital.
I maintain a check of activities as per my trading plan and then run the flow of activity in the markets.
Trust me, my real-time analysis by using time frames gives a cutting edge to make more money than usual.
It is a rare occurrence that the price movements run in opposite directions to my chosen stock price movements leading to losses.
You must not rush into investing in the markets when the opening bells ring immediately.
In the morning before you enter you must read the previous day’s opening and closing stock market trades. This study indicates the existence of buy option or sell option markets.
Your Day Trading Limitations:
In day trading, you need to enter (buy) and exit (sell) in a single trading session. It would help if you took countermeasures when the stock markets are hit with strong volatility.
Make steady use of stop-loss, breakouts to minimize the losses.
Employ time frame charts, from 1 to 4 minutes, and grasp the patterns effectively.
Wait for a couple of minutes, then check the trade patterns then decide whether to invest whether it is a buyer’s day or seller’s day.
Try to make a technical analysis and investigate the market movements, and sentiments.
You will find a deep impact of the company news in the markets, meaning stock prices fall or rise drastically. In the process, you can also find the stocks hitting the upper/lower circuit.
Recommend You to Do it Daily:
Day trading decides your winning and losing money in a single trading session. Therefore You follow this repetitive mannerism to reduce your level of profitability.
Using technical indicators like time frames of 1 to 4 minutes of chart patterns helps you decide on entering or keeping away from day trading on a specific day.
See lessIs 5% on a Swing Trade Good?
Is 5% on a swing trade good? Warren Buffet, the notable stock market guru, advises investors never to dream of more than a 30 percent return on their capital and it will double in 3 years. He is often referred to as the ‘Oracle of Ohama’ which means that he was born in Ohama and is coined as the besRead more
Is 5% on a swing trade good?
Warren Buffet, the notable stock market guru, advises investors never to dream of more than a 30 percent return on their capital and it will double in 3 years.
He is often referred to as the ‘Oracle of Ohama’ which means that he was born in Ohama and is coined as the best financial investor in the International Stock Markets.
Now the question is, can I earn 5 percent profit every month and the answer is yes.
If you trade carefully you can earn somewhere between 10 percent to 50 percent annually.
Note:
You must remember that your stocks will witness an involvement in several trading sessions, and for each trade you will be levied trading fees and other relevant fees.
Hence the level of profits at the end of a year automatically declines.
How to Earn 5% on Swing Trade
You can make profits on the price swings experienced by your underlying assets in the stock markets.
By utilizing the swing trading stategies you can make money on your assets, equity, commodities, and currencies.
Fundamentally, the swing trades are short-term. You can yield good returns by holding your positions for a short period, say, for days to a few weeks.
You can improve your profit levels by adding small amounts of returns in buying and selling trades.
You can enter into higher risk zones when trading, such as reversal against the last open markets then you need to act instantly and exit their positions.
Limitations in Swing Trading:
Although you cannot invest a small amount in swing trades and expect huge returns, still you must always follow the thumb rule.
Never trade stocks whose value is more than 1 percent of your trading capital. For instance,
If your trading capital is INR 1000.00 and you plan to buy a stock priced at INR 500.00 to INR 600.00 and after setting a stop loss of 10 percent below the entry price you will be risking 5 percent of your trading capital.
Since 10 percent of INR 500.00 is INR 50.00. Hence, the value of impending loss is more than 1 percent to 3 percent.
In such situations, you must buy stock of lower value, say, INR 100.00 to INR 200.00. Then on applying a stop loss of 10 percent, you will be losing 1 percent to 2 percent of your trading capital. Therefore, to buy a stock of higher value your trading capital must run high.
Ideally, if you are able to make a profit of five percent on your investment every week then in four working weeks you will have done 20 percent of business on your investment.
Risks Involved in Swing Trading:
You can witness price gaps when your bought stocks experience overnight and weekend market risks.
You may not be able to identify the right, accurate, and consistent performance of the stocks and hence the inability to set the right timing can lead to losses.
In a rush, to obtain the short-term market moves in the swing trade, you may unintentionally skip the long-term trends or exceptions stocks.
See lessWho is the Best Swing Trader in India?
Best Swing Traders in India Your question is tricky and quite tough to net swing traders who are exclusively brilliant in short-term trade returns and still hold a low-risk profile. The best stock trainers in the Indian market, who can mold you to become the best swing traders are CA Rachana PhadkeRead more
Best Swing Traders in India
Your question is tricky and quite tough to net swing traders who are exclusively brilliant in short-term trade returns and still hold a low-risk profile.
The best stock trainers in the Indian market, who can mold you to become the best swing traders are
CA Rachana Phadke Ranade, and Pranjal Kamra.
In addition, you can consider experts like Asset Yogi, Sidharth Bhanushali, Sunil Minglani, Nitin Bhatia, Sahil Bhadviya, and Shariqaue Samsudheen.
Most of the top traders across all the stock exchanges in a global scenario, make use of intraday, futures, and options on their underlying assets to make huge trade returns.
Making a mention of a single swing trader to excel in the stock market isn’t possible but there are wonderful stock brokerage companies supporting their clients’ interests with multiple trading strategies.
Still, if you are inclined to find an answer that speaks about the best swing traders then the best way to search for reviews on brokerage companies that are providing swing guidance.
Best YouTube Channels for Swing Trading
Another area where you can find the best swing experts delivering their experiences to traders is YouTube channels. Over the Youtube social media, you can research for the best options applicable for the swing businesses.
If you have patience, you can identify several scintillating trainers daring to encourage you to absorb swing techniques that are suitable in a given scenario.
I can reveal the stock swing experts continually driving their strategic ideas so that you can equip yourself to wrestle the markets better in the real-time stock markets.
Tradersmith is one of the best stock market software providers that helps you analyze and strategize the best stocks in the given context. They do recommend the best stocks when you are essentially craving for.
Angel One, Zerodha, and Upstox, all are discounting brokerage firms that run their stock market business by not hurting the financial interests of their clients.
You can understand the best performer in swing stock trading and even find the leading stock trader exclusively working on stock market swings.
Moreover, in the Indian context, you will come across trainers who can give you the best insight into the swing short-term trades and you can seek knowledge gainfully.
See lessCan we Swing Trade Daily?
Is it a Good Idea to Swing Trade Daily? You must be a silent spectator of the daily trading and when you find a conducive moment you must apply for entry/exit positions. This should be your daily action plan and hence swing traders need to be attentive through the trading sessions. You must be involRead more
Is it a Good Idea to Swing Trade Daily?
You must be a silent spectator of the daily trading and when you find a conducive moment you must apply for entry/exit positions. This should be your daily action plan and hence swing traders need to be attentive through the trading sessions.
You must be involved in the stock market trading during pre-market hours, market hours, and after the market hours.
Through the process, you are advised to analyze the market trends rather than diving in to participate in stock trading.
Best Time Frame for Swing Trading
You are advised to begin your day a few hours before the actual trading day sessions that begin at 09:30 am.
Ideally, swing traders should gather voluminous information on the stock news, and financial information from government agencies like RBI, SEBI, etc
In the pre-market watch,
You must catch the latest news, developments and a few important things you must review are the market sentiments that reflect the probable bullish/bearish markets.
Make a craftful analysis of the inflation, overseas trading, foreign exchange, and commodity markets.
Make a guess of the sectors that are most likely to gear up in the day trades, and the financial positions of the companies in news.
Swing traders generally utilize the information obtained from fundamental catalysts to make an entry, and manage or exit by seeking information after conducting technical analysis.
To make an entry you must seek information on the stock opportunities, such as info on the company’s initial public offerings, IPO, insider buying, buyouts, mergers, acquisitions, or some other events that can catalyze the company’s performance.
A sector plays a predominant role, say, for instance, an energy sector, and progressive information on the energy forefront can boost the sector’s related stocks.
Swing traders after the purchase of the catalyzed stocks can also exit from, by obtaining technical analysis through charts, and patterns, to identify the breakouts/ breakdowns, such as Fibonacci levels, Gann levels, triangles, channels, Wolfe Waves, etc.
You must check for the possible entry/exit positions and also check for the stop-loss options on your stocks.
In case, you observe an overnight trading of your stocks then you must be prepared for the probable shifting of the stock positions if necessary.
Stock Market Hours:
You must begin with one-day timeframes, to 4-hour time frames to understand the trading trends.
You must combine the fundamentals, and technical indicators to identify the momentous price movements.
You are recommended to watch the market during the market hours including trading moves like uptrend, downtrend, and sideways.
In the market hours, the swing traders must take notice of level 11 quotes, that reflect the value of stocks bought and sold in the trades.
You may identify the trading levels that look bullish, but you are recommended to adjust profit-taking levels. Otherwise, you should adjust the stop-loss levels in the upward direction to lock in profits.
After Market Hours:
You must indulge in performance evaluation that keeps track of your stock trade, which enables you to bring about an overall improvement of the stock positions.
A trader must review the open position of the stocks, announcements, material events like acquisitions, mergers, etc., and after-trading hours earnings.
You are advised to evaluate and review the market trends of the day rather than involving market trades.
See lessHow Long Should I Hold a Swing Trade?
How Long Should I Hold a Swing Trade? You can hold swing trade and the corresponding positions of entry and exit by utilizing the strategies mentioned below. 1. Buy low, sell high (stocks) 2. Support & Resistance Levels (Price Action) 3. Counter-trend Trading 4. Pullback trading (shifting to preRead more
How Long Should I Hold a Swing Trade?
You can hold swing trade and the corresponding positions of entry and exit by utilizing the strategies mentioned below.
1. Buy low, sell high (stocks)
2. Support & Resistance Levels (Price Action)
3. Counter-trend Trading
4. Pullback trading (shifting to previous resistance/support levels)
Buy low, sell high (stocks)
In stock markets, the volatility which is known as the price fluctuations of stocks form different trends on the charts. These charts are uptrends, downtrends, and sideways movements.
Uptrends:
The stock prices in the uptrend specifically move higher highs and higher lows.
Downtrends:
The stock prices in the downtrend specifically move lower lows and lower highs.
Sideways:
In this scenario, there will not be any trend set and shall be called a ranging market.
Conclusion:
An important portion of the swing charts that are to be identified for buying (entry) and selling (exit) of the stocks.
To sell your stocks, you must identify the highs of the lower highs when the stock market is experiencing a downtrend, and to buy stocks you must identify the lows of higher lows when the stock market is experiencing an uptrend.
Price Action Trading
When the stock prices in the stock markets move sideways, they form support and resistance zones and at a stage, they bounce off from these zones.
When a stock price does reach the resistance range it means it has attained the highest price and likewise, when it reaches the support zone, it means it has attained the lowest price.
At the support/resistance levels, a large number of orders do create huge pressure in the process of buying/selling.
When traders slowly stop selling their stocks to make profits it creates selling pressure and the stock prices begin to fall.
Similarly, when traders reduce their participation in the buying of the stock activity, it creates a buying pressure and the stock prices begin to rise in the stock markets.
Counter-trend Trading:
In the stock markets, traders conduct trading in a momentum, either they buy or sell prices as per the trading signals.
In case of a trend set that goes against the momentum that means the trading signals movement is in the opposite direction of a current trend what should be a trader’s action plan?
In such a situation, you must make use of momentum indicators, reversal patterns, and trading ranges to identify the best executable trades.
Traders must also utilize risk management techniques like stop-loss to limit the losses if trading signals cause them.
Pullback Trading:
In the stock market, when the trading signal levels break, the broken support level becomes the resistance level, and similarly, the broken resistance level turns to the support level.
The traders take advantage of this stock market phenomenon, they will have already placed selling orders around the previously-broken support level, and buyers will place buy orders at the previously-broken resistance level.
See less