Duration Amount (INR) Subscribe You Save Monthly Rs. 13000 0 % 3 Months Rs. 33150 15 % 6 Months Rs. 62400 20 % 12 Months Rs. 124800 25 %

INDIAN STOCK MARKET TIPS

The origination of the Indian securities market may be traced back to 1875, when 22 enterprising brokers under a Banyan tree established the Bombay Stock Exchange (BSE). Over the last 125 years, the Indian securities market has evolved continuously to become one of the most dynamic, modern and efficient securities markets in Asia. Today, Indian markets conform to international standards both in terms of structure and in terms of operating efficiency.

Today India has two national exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Each has fully electronic trading platforms with around 9400 participating broking outfits. Foreign brokers account for 29 of these.

There are some 9600 companies listed on the respective exchanges with a combined market capitalisation near $125.5bn.

Any market that has experienced this sort of growth has an equally substantial demand for highly efficient settlement procedures. In India 99.9% of the trades, according to the National Securities Depository, are settled in dematerialised form in a T+2 rolling settlement environment. In addition, trades are guaranteed by the National Clearing Corporation of India Ltd (NSCCL) and Bank of India Shareholding Ltd (BOISL), Clearing Corporation houses of NSE and BSE respectively. The main functions of the Clearing Corporation are to work out

(a) what counter parties owe and
(b) whatcounter parties are due to receive on the settlement date.

Furthermore, each exchange has a Settlement Guarantee Fund to meet with any unpredictable situation and a negligible trade failure of 0.003%. The Clearing Corporation of the exchanges assumes the counter-party risk of each member and guarantees settlement through a fine-tuned risk management system and an innovative method of online position monitoring. It also ensures the financial settlement of trades on the appointed day and time irrespective of default by members to deliver the required funds and/or securities with the help of a settlement guarantee fund.

1. Do not over trade - If your trading capacity is Rs. 2,00,000 then avoid using margin. Infact trade with 1.5 Lakhs only.

2. Diversify- One should diversify his portfolio, invest in different sectors.

3. Buy when vibes are not good that is when stocks are on decline in other words buy at bad news. Sell when prices are high that is when there is good news.

4. Have realistic targets - Dont thinks of making crores in one single day. Market will open daily have realistic targets in your mind and trade with patience.

5. Stoploss - Always follow stoploss. Dont be afraid of loosing sometime that is also learning experience.

6. Strategy - Dont cut positions in loss before stoploss and dont exit in minor profit before target. Always wait for target.

7. Dont always think of buying at low price and sell at higher price. Do not be afraid to buy at high price and sell at lower price.

8. Sell when everyone is buying and Buy when every one is selling.

9. Dont be a buyer or seller always, Work as per market trend. Always follow market trend.

10. Take Long positions only in companies having strong fundamentally. For short term position find some good stock from speculation point of view.