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CHAWLA
DATE:-
1
DECLARATION
the best of my knowledge and has not been published elsewhere. This is
Badani Harshil M.
PREFACE
2
Today as we all know that share market is well-known field and
earn money . For this investment of money in market there are different
important. All the companies keep those charges as per the boundaries
given by SEBI.
ACKNOWLEDGEMENT
3
Training is major part of study in respect of MBA or any other
For this report I received full support from all quarters. Firstly I
who has advised me the right way for training and I am also thankful to
sharekhan who has given me the permission for my summer training and
thankful to Mr. Mihir Mehta, the assistant manager of sharekhan who has
4
I am also thankful to Mr. Piyush , the sales manager of
sharekhan under whom I have taken sales training. Last but not least I am
thankful to all other departmental head & staff of the company who have
5
INDEX
2) Development 12
3) BSE 14
4) NSE 15
5) NCDEX 17
6) MCX 17
6
8) SWOT Analysis 59
PART-C Derivative & its Strategies 62
1) The Indian Equity & Derivative Mkt. 63
2) Introduction 64
3) Types of Derivative 76
PART-C Research 81
1) Title of Study 82
2) Statement of Problem 83
3) Objective of Study 84
4) Universe of Study 85
5) Hypothesis 86
6) Sampling Decision 88
7) Data Collection Method 89
8) Research Results 91
9) Period of Study 110
10) Tools & Techniques 110
11) Limitations of the Study 111
12) Suggestions 112
13) Conclusion 113
14) Bibliography 114
15) Appendix 115
PART-A
7
INDUSTRY
ANALYSIS
8
1. HISTORY OF INDIAN
SHAREMARKET
is the oldest stock market in India. The history of Indian stock trading
starts with 318 persons taking membership in Native Share and Stock
Indian Stock Market. The history of Indian stock market is almost the
crossed the 1000 mark for first time. It crossed 4000 figure in 1992. The
reason for such huge surge in the stock market was the liberal financial
9
This bullish mode of stock market was suddenly lost with the
scam of Harshad Mehta. It came to the public knowledge that Mr. Mehta,
also known as the big bull of Indian stock market. He has diverted huge
funds from banks through fraudulent means. He played with 270 million
system and diminished interest rates from banks. The stockbrokers based
through an act in 1992. SEBI is the statutory body that controls and
Sensex crossed 5000 in 1999 and 6000 in year 2000. The 7000
mark was crossed in June and 8000 in September 2005. After that many
Due to
10
that the market has taken the bullish way and in 2008 it touched the limit
of 21000.
now divert their savings to stocks. They can invest their money in this
to the tips of expert. They do not invest only in giant companies. Good
monsoon is also taken as good sign for bullish market. If monsoon is not
good then it is taken as sign of bearish market. Thus one of the affected
11
2. DEVEPMENT
market in india was formation of the native share and stock broker’s
12
Mumbai (NSE, BSE, OTC exchange of India, Inter-connected stock
Exchange of India), Patna, Pune and Rajkot. Of course, the main stock
prior approval of the government. The Securities Contract Act vests the
13
3. BSE (BOMBAY STOCK
EXCHANGE)
and is closely followed around the world. Based on sensex, BSE equity
stock, the BSE has also a market in derivatives, which was the first to be
future and option, index future and option and weekly options.
debt market. The debt market is also one of the growing market and
institutions etc… But BSE believes that retail market will bring great
14
4. NSE (NATIONAL STOCK
EXCHANGE)
and most advanced exchange with 1016 companies listed and 726 trading
members.
divided into three segments: Wholesale Debt Market, Capital Market and
growth throughout a few years of their launch. All the three markets
15
The NSE provides its clients with a single, fully electronic
world exchanges, the NSE uses the satellite communication system that
16
5. NCDEX
(NATIONAL COMMODITIES AND
DERIVATIVES EXCHANGE)
ICICI Bank
IFFCO
CRISIL
17
Why NCDEX?
NCDEX is nationalized screen based system which is providing
information.
on the basis of the current national institutes. The exchange has been
etc…
18
To avail farmers from risk of fluctuation in prices NCDEX
19
6. MCX
(MULTI COMMODITYEXCHANGE)
20
7. BASIS OF STOCK
MARKET
and each certificates represents set number of shares. The total number of
shares will vary from one company to another, as each makes its own
may have only 2500 shares, while another such as IBM or the Ford
provide funding for the expansion and growth of the business. The
needed cash. The expectation is that even though the owners have
21
Commission(SEC). This transition from a privately held corporation to a
publicly traded one is called going publicand this first sale of stock to the
choose when to declare a dividend and how much to pay. Most older and
companies do not.
The average investor buys stock hoping that the stock’s price
will rise, so the shares can be sold at the profit. This will happen if more
investors want to buy stock in a company than wish to sell. The potential
22
What is usually responsible for increased interest in company’s
stock is the prospect of the company’s sales and profits going up. A
company who is a leader in a hot industry will usually see its share price
rise dramatically. Investors take the risk of the price falling because they
hope to make more money in the market than they can with safe
buying shares like you would a pair of shoes from a store. You are
at a bank.
Some brokers will allow you to open an account with very little
money. The firm will then hold this money in an interest earning cash
account, awaiting your orders to buy or sell stock or other securities such
as bonds or mutual funds. When you buy or sell, you pay a commission,
ownership of the shares may be listed in one of two ways. “listed” means
23
If you choose to have the stock listed in your name, you will
receive the actual stock certificates. Most investors choose to have the
ownership listed in the broker’s name, called “held in street name”, with
the broker keeping track of whose trading account the stock actually
and the ability to instantly sell and transfer the shares. Either way any
dividends are credited to your account. Stocks held in street name are
may just need the money. He or she may have watched the price go up
and have a hunch this is a good time to lock in their profit and sell some
and so sell his stock that aren’t moving up. But usually, investors sell
because
24
They have watched the price fall and just want to get out before they lose
even more.
helping both the seller and the buyer of the securities to enter into a
transaction.
material
Member of the stock exchange (broker) has orders to buy and to sell the
clients
concerned.
buy
25
or sell securities from his own account i.e. as principal or act as an agent.
broker has to obtain the consent of his client and the prices charged
26
Be fearful when others are greedy and be greedy when others
are fearful.
market.
4 or 5 year averages.
Always invest for the long term. Do the business have favorable
long-term prospects?
27
8. INDUSTRY ANALYSIS
WITH PORTER’S 5 FORCE
MODEL POTENTIAL
POTENTIAL ENTERANT
ENTERANT
Investmart
Investmart
Various
Various Banks
Banks
Geojit
Geojit
Cipher
Cipher
UTI
UTI Securities
Securities Ltd.
Ltd.
BUYERS
BUYERS
Refco
Refco Group
Group Ltd.
Ltd.
SUPPLIERS
SUPPLIERS Small
Small Investors
Investors
IDBI
IDBI Capital
Capital Mkt.
Mkt. Services
Services
Web
Web maintainers
maintainers COMPETITORS
COMPETITORS Ltd.
Ltd. Franchise/Business
Franchise/Business
NSCL
NSCL ICICI
ICICI Web
Web Trade
Trade Ltd
Ltd Partners
Partners
CSDL
CSDL 5paisa.com
5paisa.com HNI’s
HNI’s
NSE
NSE Kotak
Kotak Securities
Securities Ltd
Ltd MF
MF Companies
Companies
BSE
BSE India
India Bulls
Bulls HUF
HUF
MCX
MCX Motilal
Motilal Oswal
Oswal Securities
Securities Ltd
Ltd Institutional
Institutional
NCDEX HDFC
HDFC Securities
Securities Ltd
Ltd Investors
Investors
NCDEX
Marwadi
Marwadi Finance
Finance Ltd
Ltd
SUBSTITUTES
SUBSTITUTES
Mutual
Mutual Funds
Funds
Insurance
Insurance
Bank
Bank FD
FD
28
1. SUPPLIERS:
through stock broking houses, for which they have to take permission
from NSE/BSE.
NSE & BSE are under the purview of SEBI, that’s why stock
broking houses like SSKI, have low bargaining power. But here there
is one advantage that NSE/BSE have i.e. they cannot go for forward
integration.
technical aspects of the same. Here stock broking houses like SSKI can
maintaining companies.
29
Web maintainers are companies who make and maintain
software’s for stock broking houses. If say for example stock broking
switching cost.
2. BUYERS
investors.
are offering low brokerage and best services with added feature. So
switching
30
cost is pretty much less. So the buyer can easily switch over to
competitors product.
Entry Barriers
Huge capital:- Capital is necessary not only for fixed facilities but
also for customers credit and absorbing start up losses. To start a stock
broking house, one needs huge capital for technology up gradation and
skilled manpower.
device. Stock broking requires huge capital to make their products user
governing bodies like SEBI, NSDL, etc. For a stock broking houses to
plunge into the stock broking industry, it needs to have some kind of
be an entry barrier.
services which are provided to the end-users and the research based
31
activities which includes “TIPS”, fundamental as well as technical
Motilal Oswal, etc. this is very difficult for new companies to imitate.
ICICI is very efficient and spreaded all over India. It will take time for a
new entrant to establish such a huge network (e.g. Marwadi), which say
overcome.”
industry, the old companies have an option to reduce the prices of their
reduced account opening charges. E.g. before the entry of so many mew
trade speed trade plus, which were costing 1000 & 1500 account
up with only one account ie speed trade plus with the account charges
of Rs.1000.
32
3. COMPETITORS
national level players. The local players provide facility for off-line
There are also other big names like Indiabulls, Motilal Oswal,
5paisa and Marwadi encircles the company form both the sides by
4. POTENTIAL ENTRANT
Tew entrant which may take away the share of current players.
Nationalized banks are also thinking to enter in this field byb tieing
33
5. SUBSTITUTES
of investing in shares.
The instruments like Bank FD, insurance, mutual funds are the
substitutes.
The companies and banks which are having this instruments can
plunge into this industry.Banks are planning to jump while others may
come
34
PART-B
INTRODUCTION
TO
SHAREKHAN
35
Sharekhan is an equities focused organization tracing its lineage
the year 2000 & it is the first company who started online in 1984. They
more than 350 branches, 750 franchises and also having 900 shops in 213
cities. In Rajkot branch , daily dealing rs. 16 crore & 400 crore all over
for that matter the online trading facility. You will find a common thread
one that helps you make informed decisions and simplifies investing in
about! Sharekhan does not claim expertise in too many things. Share
khan’s expertise lies in stocks and that’s what he talks about with
36
the stock markets and these beliefs are reflected in everything sharekhan
trading facility, coupled with a wealth of content that will help you stalk
the right shares. Those of you feel comfortable dealing with a human
being and would rather visit a brick-and-mortar outlet than talk to a PC,
you’d be glad to know that Share khan offers you the facility to visit (or
In fact share khan runs india’s largest chain of share shops with
Over six hundred outlets in more than 100 cities! What’s a share shop?
How do you locate a share shop in your city? To find the answers of
these questions, you must visit share khan. Hi other words share khan is a
security market.
Asia money Polls’ 2004. Also SSKI is being rated as No. 1 Financial
Researcher
37
of Business Today, in survey conducted on Lead Managers of all Mutual
Funds.
case of Brokerage services and has top turnover in trading takes it at good
clients are managed with friendly corporate culture and to motivate them
different services are provided by the managers also. Managers also give
tips to the investors to invest and manage few scripts which are best so
trading products with it. If we see its progress than in future i.e. in next
year it is going to issue its own share capital in the market. It has now a
38
1. VISION
service to help him in taking better decisions. We believe that our growth
2. CORE VALUE
and efficiently.
39
3. SSKI GROUP – CORPORATE
STRUCTURE
40
SSKI investor service pvt.
Ltd.
Retail Broking arm of group
Share holding pattern
56% Morakhia Family
18.5% HSBC Pvt.
Management Mauritius
18.5% First Carlyle
Ventures.
Owns 56% of
Owns 44% of
SSKI Corporate Finance Pvt.
Ltd.
Investment Banking arm of
the group
Share holding pattern
50.5% SSKI Security Pvt.
Ltd.
49.5% Morakhia Family
SSKI Securities
and Pvt. Ltd.
41
4. ORGANISATIONAL
STRUCTURE
Head Office
Branch Head
42
43
5. PRODUCTS OF THE
SHAREKHAN
Sharekhan
Products
PMS
Classic Account or Speed Trade Mutual Funds
Fast Trade Account Account
44
1. Sharekhan Depository Services:
(DPs) who offer demat services and hold the securities in the electronic
45
Depository Issuer/ R&T
Agent
of each the beneficial owner and the securities of each other beneficial
owner shall be segregated and shall not be mixed up with the securities of
The participants are obliged to reconcile the records for a period of five
years. Records of all the transactions entered into with a depository and
46
2. Portfolio Management System:
you.
for you based on your risk appetite to monitoring their movements and
discussing them with you at special events. Click here to see how we
investing completely hassle-free for you. There are mainly three types of
47
3. Mutual Funds:
Everybody talks about mutual funds, but what exactly are they?
Are they like shares in a company, or are they like bonds and fixed
income or grow the money long term. Investors buy a scheme if it fits in
with their investment goals, like getting a regular income now or letting
the money accumulate over the long term. Investors pay a small fraction
fees.
1987. During that time mutual fund market refers the unit link schemes
like Master Share and Master Gain. Mutual fund provides varieties of
48
schemes for different kind of customers to suit their goals. Mutual fund
have open-ended
balanced fund, liquid fund, income fund, short term fund, sector fund,
Online IPO:
the application form of any company’s issue of shares just like the TCS
work and the fund transfer facility is also provided to the clients for
many system where every user has equal access to price quotes and
favoritism or control by a chosen few, where any user can view all quotes
49
Liquidity, or trade activity, is perhaps the best measure of
on.
trading system are live and firm. They can be acted on with full assurance
for trading is that just a click can be used to hit a bid or lift an offer.
the clock, 24 hours a day, seven days a week. This allows any user to
extend the trading day, and easily pass the trading objectives to others in
system in India is only emerging segment yet. This is because the internet
boom in Indian is on the rise only now. The internet charges are
becoming minimal and the internet is soon becoming a way of life in life
50
There are mainly two exchanges deals with commodity.
khan also provides broking in commodities and the brokerage charges are
exchanges are:
51
The off – Line account is trading account through which one
sharekhan shop. This account is for those who are not comfortable with
Offline a/c is the A/C for the investors who are not familiar
The A/c opening is free for first year, then for second year
charge is Rs. 400 and for the subsequent years, the charge is Rs. 360.
For first year Demat account is free, for second year charge is
Rs. 400, for the subsequent years the charge is Rs. 360.
52
9. Bank of Punjab 10.ICICI Bank
Any one who have A/C in either of above banks they can use
withdraw by cheque.
This account enables you to buy and sell shares through our
confirmation
e) Real time portfolio tracking with price alert and of course, the
f) Price alerts
53
II. Speed Trade Account
6. MARKET COVERAGE
122 Franchisees and 28
b
branches
Ground Network Largest in India
Covers 213 cities in 23 states
across India
a
Depository/Demat account
s
services
Personalized Sharekhan
rresearch advice
54
7. RESEARCH AND ADVISED
TOOLS
INVESTMENT ADVICE
Hedging ON EQUITY,
Sharekhan
DERIVATIVE,
Special
COMMODITY
Derivative Products
Commodities Trading
Derivative info Kit
Derivative Digest Commodities Buzz
Derivative Calculator Commodities Traders
Market Neutral Corner Sharekhan
Srategies Exclusive Bullion
Calculator
that one can take the the right investment decisions regardless of their
55
The R&D department Head Mr.Hemang jani forwards all the
details regarding all stocks and scripts to all the branches through
through which the R&D department Head MR.Hemang jani talks with
each Branch heads and discusses about each day’s closing position and
shows their predictions about next day’s opening position. The quarries
regarding stock position and other relevant matter of the branch heads of
In – depth analysis of the before, during ( live market updates) and after
56
1. Sharekhan Publication:
Stock ideas :
Stock ideas are aimed at Sharekhan’s trading client. It presents
into six clusters to help you identify the stock that fit your time horizons
and return objectives the best. Each cluster represents a certain profile in
Stock Clusters:
Sharekhan categories all the scripts that are under coverage into
fundamentals as well as the kind of returns you can expert over a certain
time horizon. This help in identifying the stocks that fit your time
horizons and return objectives best. The six clusters are: Evergreen,
Cannonball.
Evergreen:
These stocks are steady compounders, churning out steady
growth rates year on year. They are typically significant players in their
57
markets, with sound strategies that will help them achieve and sustain
market
between 18- 20% per annum for the next five to ten years. Also called
portfolio.
Apple Green :
These are stocks that have the potential to be steady
They rank a shade below the Evergreen companies, only because their
potential in the five to ten years’ time is still not very clear, although they
might grow at rates faster than of the Evergreen stocks in the next year or
two. They could grow at 25-30% per annum over the next two to three
years.
Emerging Star:
These are typically young companies, often in niche businesses,
that have the potential to grow and dominate their niches. Even better ,
they might turn out to be real giants , if their niches explode into full-
58
blown markets in their own rights. These stocks are potential ten-baggers
Ugly Duckling:
These are companies that are trading below their fair value or at
values which are at a significant discount to that of their peer group, due
years’time.
Vulture’s Pick:
These are companies with valuable assets or brands that have
been trashed to ridiculously low prices. Buy a Vulture’s pick and wait for
a predator who finds its assets undervalued to come along. This could be
Cannonball:
market, which could give returns of 20-40% within three months. These
59
available fundamentals for investors which are having an appetite for
with relevant and updated information to help him make informed about
DP
60
thereafter the customer can view his updated account statement on
internet.
facilities at any of the share khan branches and business partners outlets.
61
8. SWOT ANALYSIS
During this training at Sharekhan, we had come to know the
very useful for a company to analyze them. Therefore, the SWOT analysis
Strengths:
11,00,000 + customer
Largest ground network in broking with 588+ retail outlets spanning 213
cities\
Wide product range to enable the clients to choose the best alternative.
62
One of the best DPs in India.
Weaknesses:
problems of the
Opportunities:
companies just like Kotak securities ltd. that runs the books of share
63
Attract the customers who are dissatisfied with other brokers &
bullishness.
Threats:
the customers. A threat of loosing clients for any kind of weakness of the
company. Indirect threat from instable stock market, i.e., low/no profit of
64
PART-C
DERIVATIVE
AND
ITS STRATEGIES
65
1. THE INDIAN EQUITY AND
DERIVATIVE MARKET
in the field of finance. While futures and options are now actively traded
66
The phenomenal growth of financial derivatives across the
67
2. INTRODUCTION
whether long or short and the entire risk of the transaction lies with
DERIVATIVES:
international market.
68
• Development of more sophisticated risk management
strategies.
the risks and returns over a large number of financial assets leading to
to financial assets.
commodities.
DERIVATIVE PRODUCTS
A. Forwards
B. Futures
C. Options
D. Swaps
69
DERIVATIVES
DERIVATIVES
Options
Options Futures
Futures Swaps
Swaps Forwards
Forwards
Put
Put Call
Call Interest
Interest
Currency
Currency
Rate
Rate
Commodit
Commodit
Security
Security
yy
1. Forwards:
quantity) at a certain
future time for a certain price. No cash is exchanged when the contract is
entered into.
has no cash to buy it outright. He can only buy it 3 months hence. He,
however, fears that prices of televisions will rise 3 months from now. So
in order to protect himself from the rise in prices Shyam enters into a
70
contract with the TV dealer that 3 months from now he will buy the TV
for Rs 10,000. What Shyam is doing is that he is locking the current price
maturity. The dealer will deliver the asset to Shyam at the end of three
months and Shyam in turn will pay cash equivalent to the TV price on
delivery.
2. Futures:
It is an agreement between two parties to buy or sell an asset at
71
of the underlying asset. Parties to a Futures contract may buy or write
Options on Futures.
3. Options:
An option is a contract, which gives the buyer the right, but not
not to walk away from the contract. There are two kinds of options: Call
or before a certain date. When you buy a Call option, the price you pay
for it, called the option premium, secures your right to buy that certain
stock at a specified price called the strike price. If you decide not to use
the option to
buy the stock, and you are not obligated to, your only cost is the option
premium.
before a certain date. In this way, Put options are like insurance policies.
With a Put Option, you can "insure" a stock by fixing a selling price. If
72
something happens which causes the stock price to fall, and thus,
"damages" your asset, you can exercise your option and sell it at its
"insured" price level. If the price of your stock goes up, and there is no
"damage," then you do not need to use the insurance, and, once again,
CALL OPTIONS
Call options give the taker the right, but not the obligation, to
predetermined date.
Call --Premium 8
150 per share at any time between the current date and the end of next
August. For this privilege, Raj pays a fee of Rs 800 (Rs eight a share for
73
100 shares). The buyer of a call has purchased the right to buy and for
Now let us see how one can profit from buying an option;
December. If the stock rises above Rs 55 (40+15) he will break even and
he will start making a profit. Suppose the stock does not rise and instead
falls he will choose not to exercise the option and forego the premium of
Call
When you expect prices to rise, then you take a long position by
When you expect prices to fall, then you take a short position by
74
PUT OPTIONS
time.
Illustration:- Raj is of the view that the a stock is overpriced and will
fall in future, but he does not want to take the risk in the event of price
option Raj has the right to sell the stock at Rs 70 but he has to pay a fee
Rs 55 (70-15) and will start making profit if the stock falls below Rs 55.
75
Put Options-Long & Short Positions :
When you expect prices to fall, then you take a long position by
When you expect prices to rise, then you take a short position by
CALL
PUT OPTIONS
OPTIONS
If you expect a fall in
Short Long
price(Bearish)
If you expect a rise in price
Long Short
(Bullish)
4. Swaps:
period of time.
76
Interest rate swaps and currency swaps are the most popular.
CURRENCY SWAPS:
These entails swapping only the interest related cash flows
CURRENCY SWAPS:
These entail swapping both principal and interest between the
parties, with the cash flows in one direction being in a different currency
77
Currently, the derivative contract have maximum of 3 month
expiration cycles.
the index like index futures, index options and index funds.
(b) Stocks considered the S & P CNX Nifty must be liquid by the
(c) The largest 50 stocks that meet the criterion go into the index.
78
S & P CNX Nifty is a contrast to the adhoc methods that have
derivatives market owing to its (a) low market impact cost and (b)
derivatives.
3. TYPES OF DERIVATIVES
trader’s tools. They can be used for two purposes, namely Speculation
and Hedging.
79
SPECULATION:-
can’t say that trading is about predicting the direction of the stock
No one can predict the stock market, the key to making money
sizes enable you to stay in the game for the longest possible time and
80
Trading in fact, is a skill that can be learnt and, once learnt you
HEDGING:-
currency markets.
Often people think that they will be fully protected if they take
direction.
hedging comes at a cost, for while hedging can reduce losses but it
positions.
81
Instead , when a trade starts moving contrary to the expected
This strategy sounds great but the put comes at a cost which is
deductible from the profits that you earn on your futures, assuming
that the profit on your futures position is higher than the cost of the
put.
Buy futures
Sell call
Buy put
82
Sell futures
Buy call
Sell put
we will buy call with strike price @180 and sell put with strike price
@ 170.
In-the-money:
A call option whose strike price is below the current price of the
underlying : or
For example: If the ACC stock is trading at Rs. 200, the ACC call
options with strike 190, 180, 170 and below are all in the money.
83
Out-of –the-money:
A call option whose strike price is above the current price of the
underlying stock or
For example: When ACC is trading at Rs. 200, the ACC call options
with strikes 210, 220, 230 and upwards are out-of –the-money.
At the money(ATM):
This is an option that has a strike price equal to the current price
For example: The ACC option with a strike price of Rs-200 is at-
Expiration date:
84
Technically speaking, options contracts are available for the
near month ( current ), mid month (next), and far month (the month
after next).
Currently, how ever, only the near month options usually have
tradable liquidity and only towards the last week of the near month
comfortably.
85
PART-D
RESEARCH
86
1. TITLE OF THE STUDY
reach each and every place. In present days, service sectors are growing
very fast and the competition is also very healthy. People want very fast
be said as latest so it will take some time to develop in the mind of the
people.
87
2. STATEMENT OF THE
PROBLEM
In India many people are investing in stock market but they are
not aware by all the services provided by the broker. In this when the
broker is not effective, the customer is not satisfied with his services, at
this time the problem arises and the people feel that they are denied of
their rights.
“Derivative & Its Strategies” provided by broker. There are many brokers
who are very efficient & effective in research on this point and providing
tips and knowledge to the investors and customers. I have taken sample
stock market.
88
3. OBJECTIVE OF THE STUDY
broker.
better way
89
4. UNIVERSE OF THE STUDY
the stock market through on line trading. There are many investors in the
stock market but out of whole universe of the investors I have selected a
small population from the Junagadh city only. There are mainly two
types of universe such as finite universe & infinite universe. Finite study
research study I have selected finite study to know about the awareness in
90
5. HYPOTHESIS
Therefore, H0 : u = 50%
H1: u ≠ 50%
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1.000 (1-0.025) = 0.975
1.9+ 0.6 = 1.96 & - 1.96 (the result will be between two)
σx =5 / root of 100 - 1
= 5/9
= 0.5556
Z= 55 – 50 / 0.5556
= 8.999
5.) Draw a statistical conclusion
The absolute value of the computerized Z statistic (8.999) is larger than
1.96, therefore null hypothesis is rejected.
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6. SAMPLING DESIGN
in Junagadh city. All the respondents are stratified on the basis of their
profession and savings. We have selected the selected the samples as per
random.
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7. DATA COLLECTION
METHOD
• Primary Data:
base of knowledge and belief of the research, are called primary data.
sense of how people feel about the Derivatives in stock market. So far as
respondent.
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Primary method includes many types such as:
• Secondary Data:
There are mainly three points which he should consider while using that
data :
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8. RESEARCH RESULTS
Q.-2 Gender
OPTION NO. OF PERCENTAGE
RESPONDENT
Male 80 80%
Female 20 20%
TOTAL 100 100%
Gender
20%
Male
Female
80%
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Q.-3 AGE (YEARS)
Age
8%
17%
40% 21-35
36-50
51-65
ABOVE
66
35%
From above diagram we can see that respondents are from the
age group 21 to 35 years are about 40% of total who deals with stock
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Q.-4 EDUCATION
EDUCATION
15%
25%
Undergraduate
Graduate
Post graduate
60%
This result shows that most of graduate persons are doing trade
with stock-market i.e. 60% of the persons are graduate who are trading.
This result shows that educated persons are trading in stock market.
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Q.- 5 OCCUPATION
employee who can earn more are trading with stock-market to invest their
99
Q.- 6 DO YOU TRADE IN DERIVATIVES?
Response
35%
Y es
No
65%
preferred by investor.
100
Q.- 7 CURRENTLY, THROUGH WHICH BROKING HOUSE ARE
YOU DEALING?
Broking house
3% 6% 18% ICICI Direct.com
4%
2% Kotak security
3% Sharekhan
5% motilal Oswal
Angle Broking
Marwadi
28% India Bulls
23% HDFC
India Infoline
Anagram
11% 5% Karvy
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Q.- 8 WHICH TYPES OF FACILITIES ARE GIVEN BY YOUR
102
Facilities by Broking House
8% 13% Single screen tradind terminal
Above research says that most of brokers
Onlineprovides real
orders on the time
phone
19% online IPO
online IPO, research report and online 15%
orders on phone.
Live tic-by-tic intra day
charting
Instant order/Trade
confirmation in same windows
8% Real time streaming quotes
Research Report
8% 21%
Online mutual Fund
7%
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Q.- 9 DOES YOUR FIRM PROVIDE THE SPECIAL SOFTWARE
Response
11%
YES
NO
89%
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Q.- 10 IF YOU TRADE IN DERIVATIVES, IN WHICH
15%
F utures
calls
56% P uts
arbitrage
25%
they think that it is safer than call & put & they have not so more tips
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Q.- 11 IN WHICH INSTRUMENT OF DERIVATIVES SEGMENT DO
YOU TRADE?
37%
Indices futures
Indices options
Stock futures
Stock options
43%
5%
derivative than they will invest in stock future first and then in indices
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Q.- 12 WHICH TYPE OF TRADER YOU ARE?
Type of Trader
25%
Bullish trader
Bearish trader
75%
picture than it says same thing that most of the traders in the market are
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OPTION NO. OF RESPONDENT PERCENTAGE
YES 20 20%
NO 80 80%
TOTAL 100 100%
Response
20%
yes
no
80%
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Q.- 14 IF YOU ARE BULLISH THEN WHAT STRATEGY DO YOU
SUGGEST IN HEDGING?
Strategy
10%
25%
65%
from above research it can be known that they most of advice for buy
future, buy put only. Then says to sell call if necessary after 1st strategy.
109
Q.- 15 DO YOU BELIEVE THAT ONE CAN EARN IN
DERIVATIVES?
Response
YES
NO
110
Q.- 16 DO YOU BELIEVE THAT ONE CAN EARN IN CALLS &
Response
Yes
No
so the response for positive and negative is nearer. But they believe that
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Q-17 A) Are you satisfied with the facilities given by your company?
Response
29%
Yes
No
71%
not given than they are not satisfied. Above research shows that investors
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Q-17 B) If no then which segments they should try to improve?
Sales
43%
Brokerage Rate
Rate/Tips
57%
which are created by brokers. But they want mainly low brokerage
services.
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Q-18 According to you trading is,
Response
34%
Advisable
Not Advisable
66%
of the people are saying that trading is not advisable. Which is due to
9. PERIOD OF STUDY
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This research study is to be prepared in certain time limit and
after certain time limit have to submit it to the company, university and
my college too. The time period is allowed for this research study is
study.
(1) Gathering the relevant data from different sites and literature
115
11. LIMITATIONS OF THE
STUDY
Personal Bias:
option so they may not give correct information and due to which
Time Limit:
Area:
The area was limited to Rajkot city only, so we can not know
Sample Size:
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12. SUGGETIONS
• Sharekhan needs to make its marketing team strong and also it should
increase marketing activities such as promotional campaigns.
• Sharekhan may also use its helpline number for giving education on
stock market.
• Company may appoint special team for giving education & attracting
people towards trading in stock market.
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13. CONCLUSION
person who performs all the activities on behalf of the client and
therefore most of the people prefer it. Now a days Internet is the newer
medium for trading but still people do not know how to do transaction
dual benefit for the company. Therefore the company has also marketed
its various services to the people and the benefits of it if they use.
brokers.
brokerage charges of their broker. They say that firm have to take
delivery base.
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Most of people believe that derivative is not advisable for the
investors.
14. BIBLIOGRAPHY
Websites:
1. www.Google.com
2. www.bseindia.com
3. www.nseindia.com
4. www.sharekhan.com
5. www.ncdex.com.
6. www.mcx.com
7. www.icicidirect.com
8. www.moneycontrol.com
9. www.NDTVindia.com
NEWSPAPERS:
1. ECONOMIC TIMES
2. TIMES OF INDIA
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15. APPENDIX
QUESTIONAIRE
1. Name:
120
8.Which types of facilities are given by your broking house for
derivatives?
Indiabulls
Yes No
Yes No
14.If you are Bullish trader then which strategy do you suggest for
hedging?
121
Buy Future, Buy Put Only
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15.Do you believe that one can earn from Derivatives?
Yes No
16.Do you believe that one can earn from calls and puts than from
future?
Yes No
Yes No
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