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Basics of Stock Selection. Be A Prudent Investor.

Indian Capital Market - Overview. Market Regulator SEBI Stocks and Commodities Derivative Exchanges Depositories Other Intermediaries.

Starting Investment in Capital Market. Image result for bank account.

Image result for 1st flag icon. Established in 1996, First Depository in India.

NSDL’s Progress. Dec. 2010. Dec. 2020. June 2021.

NSDL’s Progress. Aggregate Bank Deposits of All Scheduled Banks (in ₹ Lakh Crore) Mar. 31, 2017 Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2020 Mar. 31, 2021 110.48569999999999 117.2854 129.01579000000001 139.75550999999999 153 NSDL Demat Custody Value (in ₹ Lakh Crore) Mar. 31, 2017 Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2020 Mar. 31, 2021 146.49 172 186 160 244.

NSDL’s Progress. GDP at Market Price (in ₹ Lakh Crore) 2016-17 2017-18 2018-19 2019-20 2020-21 153.91668999999999 170.98303999999999 189.71236999999999 203.39849000000001 197.45670000000001 NSDL Demat Custody Value (in ₹ Lakh Crore) 2016-17 2017-18 2018-19 2019-20 2020-21 146.49 172 186 160 244.

Indian Capital Market - Depository System. Other Depository DP 1 DP 2 Clearing Corporation ( NSE Clearing Limited/ Indian Clearing Corporation Limited ) Stock Broker / Trading Member 1 Investor 1 Investor 2 Stock Broker / Clearing Member 2.

Services offered by Depository Participant. Account Opening.

NSDLs Investor Centric e-Services. NSDL Speed - Mobile App*.

Be a Prudent Investor. Accept the DIS only if serial number is pre printed and Client ID is pre stamped or pre printed. Keep DIS in safe custody. Keep record of documents signed, account statements, contract notes received and payments made. Save important emails and take periodic back up of data. Change password of your online accounts frequently. Never share OTP and PIN with any one. Read SMS, emails, letters, statements, bills sent by your broker, bank, DP and NSDL. These are sent to you to keep you updated..

Be a Prudent Investor. Schedule of Awareness Programs, Registration and Feedback facilities are available at www.nsdl.co.in Inform your DP about any change in your Personal Information such as address, bank account immediately. Always mention your Mobile Number and email ID in account opening form and keep them updated. Do not act on Unsolicited SMS and emails providing Tips, stock recommendations, assured returns etc . Our publications are available in Hindi, English and other languages at www.nsdl.co.in  Education.

NSDL Newsletter for Investors. www.nsdl.co.in Education Newsletter – The Financial Kaleidoscope.

Grievances Redressal. Image result for complaint.

Why Do We Invest?. By investing a portion of your income you allow money to grow and work for you. 3 parameters to assess suitability of any investment avenue are – Return potential Safety Liquidity Various avenues where money can be invested, are broadly classified into some groups, known as ‘Asset Class’. Stocks or Equity shares are most popular class of assets..

What is meant by Stock Selection?. Stock selection is the selection of one or more stock (or shares) based on certain set of criteria in order to maximise the probability of meeting the trading or investment objective..

Types of Analysis. Economic. Fundamental. Technical.

Fundamental Analysis. The current price of a stock may not reflect the actual value of the stock. The stock may be overvalued or undervalued in the market. Fundamental analysis helps investors to study the health of the company, and thus leading to the actual value of the stock . This is done by using various qualitative and quantitative factors. The main purpose of this method is to identify companies that that are fundamentally strong in order to invest in them for the long term..

Economic Analysis. It involves assessing or examining topics or issues from an economist’s perspective This allows investors to analyse the market from the big picture to all the way down to individual stocks. By examining the economic numbers one can determine the current market strength and have a better idea of what the future holds. Key Economic indicators investors must incorporate while selecting stocks: Indices (e.g . Nifty, Sensex) GDP Unemployment rate Inflation rate Consumer Confidence Purchase Managers' Index.

Types of Fundamental Analysis. It takes into account information that can’t be expressed in numbers. It relates to the company itself. Factors – examples – Management experience and performance Corporate governance Industry and competition etc..

Quantitative Analysis. Types of Fundamental Analysis.

Using Financial Ratios for Fundamental Analysis. 1. Price To Earnings Ratio It is one of the most widely used financial ratio analysis. Computation - Price Per Share / Earnings Per Share As a thumb rule, a low P/E ratio is preferred while buying a stock. 2 . Price To Book Value Computation - Current price of the stock / Book value per share. A lower P/BV ratio could mean that the stock is undervalued. However, the definition of lower varies from sector to sector..

Financial Ratios. 3. Return On Equity (ROE) It is the amount of net income returned as a percentage of shareholders equity. Computation - Return on Equity (Net Income) / Average Stockholder Equity 4. Debt To Equity Ratio It measures the relationship between the borrowed capital (i.e. debt) and the capital contributed by shareholders (i.e. equity). Computation - Total Liabilities / Total Shareholder Equity As a thumb of rule, companies with a debt-to equity ratio more than 1 are riskier..

Financial Ratios. 5. Current Ratio It is a key financial ratio for evaluating a company's liquidity. Computation - Current Assets / Current Liabilities As a thumb rule, a company with a current ratio greater than 1 is better..

Technical Analysis. It focuses on the stock market, rather the company..

Basic Terms Used in Study of Price Charts. Term Meaning Support Level A level below which the price will likely not fall Resistance Level A level above which the price will not likely rise Breakout When a stock rises above its resistance level or falls below its support level Trend line A regression line that predicts future prices based on past prices Relative strength Ratio of the percentage price change of a stock to the percentage price change of a broader index or another stock.

Price Charts. Line Charts This is one of the most familiar charts which plot the price of a share against a trading day. It usually depicts the closing price and the duration for which this is plotted could range from a few days to few years depending on the need. The line formed by joining the dots plotted on the graph shows the movements in stock price during the period..

Price Charts. Bar Chart It plots the intra-day high and low prices of a stock using a bar for each trading day for a specified time period . The top of the bar corresponds to the day’s high and the bottom, day’s low. Two additional horizontal lines indicate the opening and closing price. The length of the bar is proportional to the volatility in a stock. Colored coded - If the share price closes above the open price it is colored green, and if the close is below the open the bar is colored red..

Price Charts. Candlestick chart It displays the relationship between the high & low and opening & closing prices of a stock. The body of the candle represents the opening and closing prices during the period. Above and below the body are vertical lines called wicks or shadows that show the lows and highs of the traded prices. While an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles..

Difference between Fundamental & Technical Analysis.

5 Steps Approach For Great Stock Picking. Approach stock purchases as buying a business rather than just a stock purchase in the portfolio . Evaluate the true worth of the business considering the future earning potential . The margin of safety is the real risk containment measure, and not stop loss . Do not depend on turnaround as it seldom occurs . Invest for the long term to generate inflation-adjusted superior returns..

Remember. Always remember your financial goals and investment timeframe . Review your financial goals periodically, at-least once in 5 years . Risk and Return profile of various assets are not constant. Consider taking help from a registered and qualified Investment Advisor . No stock remain the best all the time. Market is dynamic and you need to review your portfolio periodically..

Why 'Impact Investing' Is The New Trend In Asian Markets | Business Insider India.

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