LEARN STOCK MARKET

Everyone is asking and Every experts are talking that "this is the right time to invest in market" also says that "market discounted corona fear"and "this is bottom formation" and some are says "be greedy when there is a blood on street"  But Before investing You must ask these questions to yourself - Is our economy's growth will remain same as before this corona effect? At what rate our(global also) GDP will grow?  Is there are increase in demand ? B'coz our economy is largely depend on demand. Is there no bank default? (large/small scale)  Is this situation affect aviation, tourism? (if yes then ask yourself which sectors are  interconnected with) Who invested in stock market or Mutual Fund Before two or three year how return they get? Which expert says before 2020 that market will see 8000-9000 level? (That time Nifty PE was around 28-29 but no one says that market is overbought) How markets was recovered after earlie

For Fundamental analysis it is required to understanding balance sheet of company. So let's see how to read balance sheet of company. Let's see step by step 1. Go to  https://www.moneycontrol.com  (this website is free) 2. In search box type stock name. 3. Click on Financials. 4. Click on Balance Sheet As shown in Figure. 5. Balance sheet will open and as you can see there are two option on top of sheet are Standalone and Consolidated Consolidated: Consolidated statement reports all activities of company and its subsidiaries as a combined entity Standalone: Standalone financial statement report these as a separate entity. (It is depend on the company to which data should calculate for better analysis. but generally we calculate consolidated statement) So as you can see there are data for every 12 month or every year. let's understand what exactly these words mean one by one but first we have to understand two word. 1. Asset: Asset is that company owns tha

P/E ratio (price to earning ratio)  Formula for P/E is share price devide by EPS (earning per share) Let's know about EPS EPS(Earing Per Share) is total income divide by total outstanding share. You can find out total income in balance sheet of company. And total outstanding shares is equal to market cap divide by current share price. For Ex-If you want to calculate XYZ company's total outstanding shares which has a market cap of 5000 cr. and current share price is 120 Rs. then Total out standing shares=5000 crore/120= 41.66 crore You can find EPS on exchange site or other websites like money control and investing.com. But what EPS defines - what is total earning per every outstanding share of company. That means if company will distribute all the profits to shareholders then what is the earning per share. Now let's  back to P/E ratio : Let's take an example  If you buy a share of XYZ company at the price of 100 Rs and earning

As we know BSE and NSE are major exchanges of india. To know the trend of all listed shares we use indices which is nifty for NSE and sansex for BSE. 1. NIFTY - NATIONAL + FIFTY =NIFTY50 that means top 50 companies of nation listed on NSE in all sector make one index called Nifty. Allocations of sectors in nifty shown below: banking/finance, technology, oil and gas has a 50% allocations in nifty that means these sectors can more impact on index if buyers in these sector are heavy then nifty shows as bullish trend as shown in above pictures.  There are also key indices in NSE 1. BANKNIFTY 2. NIFTYMIDCAP 100 3. NIFTY NEXT 50 4. NIFTY 100 5. NIFTY 200 6. NIFTY 500 7. NIFTY SMALLCAP 100 8. NIFT MIDCAP 50 9. INIDA VIX (VOLATILITY INDEX) Sectoral indices  1. NIFTY AUTO 2. NIFTY IT 3. NIFTY PSU BANK 4. NIFTY FINANCE SERVICE  5. NIFTY FMCG 6. NIFTY PHARMA 7. NIFTY METAL 8. NIFTY MEDIA 9. NIFTY REALTY  10. NIFTY ENE

Selection of good stock is not that easy.  You should check the fundamentals of that company. Also see their debts, assets, liabilities, P/E ratio,Promoters,future potential, study of balance sheet of that company, this whole process is known as fundamental analysis.  Where you can get this information about these companies? You can checkout exchange website for details of companies and nowadays there are also available  many free applications and websites. https://www.nseindia.com https://www.moneycontrol.com https://www.investing.com For find a quality stock you should study some data given below: VALUATION: Here are some screenshot of RIL's Valuation data which i take from  https://www.moneycontrol.com we will discuss in brief about Consolidated and Standalone Valuation, Market Cap, P/E,Book Value,Dividend,EPS,Face Value. FINANCIALS: Here as you can see from dec 2018 to dec 2019 a Financial data of RIL.This will help you to track company

IPO (Initial Public Offering) What is IPO? This is a Process of listing of any company on exchange. Price of the share is decided by company management as per the guideline of SEBI.  (SEBI is the govt. body which regulate stock exchanges and companies listed on exchanges) people will apply in this IPO if they are interested and subscription of IPO will end in 3 days. after some days (previously decided date) listing of that company will done and then share will trade in secondary market after listing.again demand and supply theory will work here if demand of IPO is more then allotted shares than listed price will increase and if supply is more then demand then prise of share will decrease. we will discuss on IPO in detail separately.  How to apply in IPO? Simply you just have a Demat AC where your allotted stock will store and Trading AC with you can buy or sell a shares. You can open your Demat and  Trading AC with banks or brokerage companies. How to check quality of that company

Stock Market: Stock Market is the place where you can invest in a company which is listed on stock exchange. you can buy a stock (share) of a company and get some ownership in that company so if company make profit than your investment (share you bought) will increase and if company make loss then your  investment will decrease.  Lets see in simple way: if you bought a share of a XYZ company at 100 Rs and comckpany make some profit and demand of that particular stock is more then price of that stock will increase and you will earn the profit. why stock market needed? let me give you an example if you want to start a business but capital(money) required is  200000 and you have just 100000 so you go to your friend and try to convince his/her to join business and you promise him/hem to give 50% of partnership in your business. same thing but in big scale if any company wants a fund than they offers a partnership to public and give them some partnership in their company.