GOI

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​ Yen Vs
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INR
Equity,
Commodity, E,F&O futures & options (F&O)
Currency (​ Only these four Currencies are
allowed for Trading)
↓​
Clearing Member + Broker
↓
Clients

NOTE :
1. 18% GST and Stamp duty are payable on all transactions.

2. Whether the Trade is in Profit or Loss, taxes have to be compulsorily paid

by the Trader.
 FUNDAMENTALS

1. Market Cap

2. IPO

3. Bonus shares

4. Stock split

5. Dividend

6. Face Value

7. Book Value

8. P/E Ratio ​[If P/E Ratio is above 20, it means that the Stock is expensive]

9. Financial Results [​Only Quarterly financial Results are to be analysed.

Analysis of Yearly Results may not give the correct
Results. Example : YES Bank]

DELIVERY PERCENTAGE :
If a Stock has a High Delivery Percentage, it is wise to invest in that Stock.
(i.e. if the percentage of Deliverable quantity to Traded Quantity is above
50%. That Stock is worth investing for Long Term. E.g. ICICI NIFTY.
This data can be checked from NSE.com]
 DIFFERENCE BETWEEN ETF AND MUTUAL FUNDS
Exchange Traded Funds (ETF) Mutual funds
Less expenses More expenses
No Lock-in-period Lock-in-period
No ECS (electronic clearing system) ECS
Examples : NIFTY is expected to grow
NIFTY Bees exponentially within 2 to 3 years
NIFTY (after US elections).
ICICI NIFTY
Gold Bees Advised for Long Term Investment of
ICICI gold about 3 years.
COMMODITIES

Commodity Lot Size Price per Lot Tick Size

Rs. 38,000 (10
Gold 1000 gm / 100 gm (Mini) Re. 1
gm)
30 kg / 5 kg (Mini) / Rs. 48,000 (1 kg) Re. 1
Silver
1 kg (Micro)
100 barrel Rs. 4,000
Crude Oil (1 barrel) Re. 1

1250 MMBTU Rs. 200

Natural Gas (Metric Million British (1 MMBTU) Re. 0.10
Thermal Unit)
Nickel 1500 kg Rs. 800 (1 kg) Re. 0.10
Copper 2500 kg Rs. 400 (1 kg) Re. 0.05
Zinc 1000 kg Rs. 200 (1kg) Re. 0.05
Lead 1000 kg Rs. 180 (1 kg) Re. 0.05
Aluminium 1000 kg Rs. 130 (1 kg) Re. 0.05

CATEGORY OF INVESTMENTS

1. ​LONG TERM INVESTMENTS :

Stocks held for more than 365 days (Tax @ 10% on Net Income in a year).
2. ​SHORT TERM INVESTMENTS :
Stocks held between 3 days to 365 days (Tax @ 15% on Net Income in a
year).
3. ​NON-SPECULATIVE :
 Futures & Options (Exempt from Tax up to Rs. 5 lakh on Net Income in a
year )
4. ​SPECULATIVE :
Intraday (Tax @ 30% on Net Income in a year)

NOTE :
Tax is payable on the Net Income only [i.e. total Profit in a year – Total loss
In a year]

FUTURES

Margin (10%) + buffer (5%) The Reserve has to be kept in the Bank
Account to realise in case the market goes
down.

A share of Rs. 100 can be bought by paying a

Premium of Rs. 10.
Can be bought in Bulk only.
If prices go up to Rs. 104, it can be sold.
The contract can also be extended without
Selling.
Contract / Expiry Expiry on the last Thursday of the Month.
Eg. ITC Futures oct 2019
LONG BUILD UP: LONG UNWINDING :
Eg. : A Shopkeeper buys a The shopkeeper sells the mobile at Rs. 2000
mobile at Rs. 15,000 for
sale.
SHORT BUILD UP : SHORT COVERING :
A Buyer orders a mobile in Amazon pays Rs. 15,000 to the seller and
Amazon paying the price of informs him to deliver the mobile to the Buyer.
Rs. 20000.
Amazon does not maintain
stock.
Thus, Amazon has realised
the price without having the
mobile, in its stock.
(i) NIFTY can be bought in 75 lots only.
(ii) Bank NIFTY can be bought in 20/40/60 lots only.
(iii) Equity futures will get Squared Off on the ​Last Thursday of the Month.
SQUARE OFF (RISK) :
If there is Loss of 80% in a particular trade, the Broker will automatically
Square Off any time.

INTRADAY SQUARE OFF :

If the trade is not Squared off by 3.15 p.m., the System will auto Square Off
the trade.
If the Leverage amount is available in the demat account, Intraday can be
carried forward to the Next Day through Modification of the Order.
OPTIONS

Options
↓ ​

________________________
​↓ ↓
Call [Call European (CE)] Put [Put European(PE)]

Example for Options :

Present Value of a plot of land is Rs. 3 lakh.
There is a rumour that the National highway is going to come up touching the
plot of land.
A Buyer is ready to buy the land at a price of Rs. 5 lakh if National Highway
comes up. ​[Rs. 5 lakh is called the “STRIKE PRICE”]
The buyer will not buy the plot of land if the National Highway does not
come up.
This is an Agreement against the Seller.
The Seller puts a condition that if the Buyer pays an additional Agreement
amount of Rs. 1 lakh, he is willing to execute the Agreement.
If the Buyer does not buy the land in future, the additional Agreement
amount of Rs. 1 lakh paid by him will be forfeited [​Rs. 1 lakh is the
“Premium” or “Agreement amount]
CALL OPTION (To derive Profit from a Growing Market)

NIFTY Fut CE Oct Rs. 11700 (75) [​Rs. 11700 x lot size. 10% of the total
↓ ​amount ​should be available in the Bank A/c as
Buffer]
​[Call Option]
NIFTY Rs. 11800 CE Oct [Premium of Rs. 100 to be paid upfront.
↓ (Rs. 11800 – Rs. 11700). The Seller agrees to
[​ Strike Price] ​pay the Buyer any increase over Rs. 11800.

At the end of October, if NIFTY goes to Rs. 12500, the Buyer will get Rs. 700
(Rs. 12500 – Rs. 11800). i.e. there is a Net Profit of Rs. 600 to the Buyer (Rs.
700 – Rs. 100 Premium paid by him).
At the end of October, if NIFTY goes down to Rs. 11,300, the Buyer needs not
pay anything other than the Rs. 100 Premium already paid by him.

ACTUAL :
NIFTY Fut Oct 11700 (75)
Call Option chain :
NIFTY CE 11800 OCT 100 (75) ​[Out of the Money]
NIFTY CE 11700 OCT 175 (75) ​[At the Money]
NIFTY CE 11600 OCT 250 (75) ​[In the Money]
It is wiser to go to the Option at the Current Market Price (i.e. Rs. 11800) to
ensure sufficient Open Interest.
If agreement is made :
Above the Market Price : It is called Out of The Money
At the Market Price : It is called At the Money
Below the Market Price : It is called In the Money

Option Value = Intrinsic Value + time value

[Can be calculated​ [​ Difference between Market [If the market price goes to Rs. 12000 within 7 days,
only for​ Price and Strike Price . the difference i.e. Rs. 12,000 – Strike Price
In the Money] ​ Premium of Rs. 100] + [​Rs. 250 x 23]​ i.e. time Value for 23 days.
​Intrinsic Value must be​ ​30
​A Positive Value.
Stop Loss can be given only if one wants to get back part of the Premium
paid.

PUT OPTION : (To derive Profit from a Falling Market)

NIFTY FUT OCT 11700 (75)
(​ Sell)
Put Option Chain :
NIFTY PE 11800 OCT 250 ​[In the Money]
NIFTY PE 11700 OCT 175 ​[At the Money]
NIFTY PE 11600 OCT 100 [Premium Rs. 100 = Rs. 11700 – Rs. 11600]
​[out of the Money]
If agreement is made :
Above the Market Price : It is called In The Money
At the Market Price : It is called At the Money
Below the Market Price : It is called Out of the Money

Premium of Rs. 100 is paid for the Put option at Rs. 11600.

At the end of October, if NIFTY goes to Rs. 11400, the Buyer will get Rs. 200
(Rs. 11600 – Rs. 11400). i.e. there is a Net Profit of Rs. 100 to the Buyer
(Rs. 200 – Rs. 100 Premium paid by him).
At the end of October, if NIFTY goes above Rs. 11,600, the Buyer needs not
pay anything other than the Rs. 100 Premium already paid by him.
He will not get anything from the Seller.
Option Buyer Option Seller
Only Premium is Required Margin 10% + Buffer required

Limited Loss, Unlimited Profit Unlimited Loss, Limited Profit

CE : Stock ​↑ ​ Profit CE : Stock ​↑ ​ Loss

Stock ​↓ ​Loss Stock ​↓ ​Profit

PE : Stock ​↑ ​ Loss PE : Stock ​↑ ​ Profit

Stock ​↓ ​Profit Stock ​↓ ​Loss
INVESTING.COM : LIVE
Go to investing.com → Market → Stocks → Stock Screener ​(sub Menu)
Click→ Change the Flag to Indian flag → All Exchanges → NSE
Click on 1 year Change → Type 0 in the box to see which stocks have not
performed Negative.
Click on P/e Ratio → Type 20

Click on Fundamentals to see the fundamental Data of the company.

Click on Technicals to get only a view ​[do not trade based on these indicators]

TYPE OF ORDERS
1. ​LIMIT ORDER :
(i) For Advance Buying Below the Current Market Price.
(ii) For advance Selling Above the Current Market Price.

2. ​SL ORDER (Stop Loss Order) :

(i) For Advance Buying Above the Current Market Price.
(ii) For Advance selling Below the Current market price.

E​ xample :
Current Market Price : Rs. 246.50
Buy Price : Rs. 250

3. ​STOP LOSS (M) : ​[BEST METHOD TO BUY]

​For Advance Buying above the Market Price.
​If Trigger Price is set at Rs. 247,
Order will get executed at any Best Price above Rs. 247.

​ RACKET ORDERS & COVER ORDERS :

4. B
BO & CO are only for Intraday.
Once BO or CO are exercised, the option can not be changed later.
Select SL(M) to Buy above the current Market Price.
TECHNICAL ANALYSIS
1. ​ADVANCED CAMARILLA TECHNIQUE ​[APPLICABLE ONLY FOR INTRADAY]

Yesterday’s High : B1 [Eg. Rs. 100] ; Yesterday’s Low : B2 [ Eg.Rs. 90]

Yesterday’s Close : B3 [Eg. Rs. 94]
Resistance Level Formula Value Remarks
(H = Resistance)

H6 = B3 + (B1 – B2) x 1.009 104.10

H5 = B3 + (B1 – B2) x 0.7795 101.80
H4 = B3 + (B1 – B2) x 0.55 99.50
H3 (↓) = B3 + (B1 – B2) x 0.275 96.75 ​↓ Sell 3 lots
(Go Short) (Go Short) (Short Sell)
i.e. Short sell i.e. Short sell
H2 = [B3 + (B1 – B2) x 1.1] ÷ 6 95.80 Sell 1 lot
H1 = [B3 + (B1 – B2) x 1.1] ÷ 94.90 Sell 1 lot
12

Support Level Formula Value Remarks

(L =Support)

L1 = [B3 - (B1 – B2) x 1.1] ÷ 12 83.90 Stop Loss

L2 = [B3 - (B1 – B2) x 1.1] ÷ 6 86.20 Stop Loss

Stop Loss
L3​ ​(↑)​ = B3 - (B1 – B2) x 0.275 88.50 ​(↑) Stop loss
(Go Long) (Go Long)
Buy 3 lots only
when the Market
price crosses L3

Buy only if Market

price had touched
L5 and went up
L4 = B3 - (B1 – B2) x 0.55 91.25

L5​ = B3 - (B1 – B2) x 0.7795 92.15 Market Price

should have
Important Level
touched L5 and
went up
L6 = B3 - (B1 – B2) x 1.009 93.10
Go Long (Buy) if Market Price crosses L3; Make the Targets at H1, H2 and
H3; Keep Stop loss at Day’s Low

Go Short (short Sell) if it crosses H3; Make the Targets at L1, L2 and L3; Keep
Stop Loss at Day’s High

2. ​FIBONACCI BASED TECHNIQUE :

​[This is an Excellent Strategy for​ Swing Trading & Positional Trading]

​Find out NIFTY High and NIFTY Low from Investing.com chart
[High means Previous High.
Low means Previous Low.
High – Low range should be at least 50% in size.
​[No need to check the dates of Low and High.

NIFTY HIGH ​(B)​ : 11726.25

NIFTY LOW ​(C)​ : 11114.70

High ​(B)​ - Low ​(C)​ = ​D

STEP : 1

R1 = C + (D x 0.618)
[R = Resistance]​ = 11114.70 + (611.55 x 0.618)
= 11492.65

R4 = C + (D x 1.618)
= 11114.70 + (611.55 x 1.618)
= 12104.20

R5 = B+D
= 11726.25 + 611.55
= 12337.80
 S1 = B – (D x 0.618)
[S = Support ]​ = 11726.25 – (611.55 x 0.618)
= 11348.30

S4 = B – (D x 1.618)
= 11726.25 – (611.55 x 1.618)
= 10736.80
S5 = C–D
= 11114.70 - 611.55
= 10503.15

STEP : 2
Q = R5 – R1
= 12337.80 - 11492.65
= 845.85

R2 = R1 + (Q x 0.1)
= 11492.65 + (845.15 x 0.1)
= 11577.10

R3 = R1 + (Q x 0.382)
= 11492.65 + (845.15 x 0.382)
= 11815.50

S2 = S1 – (Q x 0.1)
= 11348.30 – (845.15 x 0.1)
= 11263.80

S3 = S1 – (Q x 0.382)
= 11348.30 - (845.15 x 0.382)
= 11024.30
STRATEGIES :
(R1) (R2) (R3)
11 492.65 11 577.10 11 815.50

​ (Pivot Point)
11 420.50 [P = ​R1 + S1]
2
(S1) (S2) (S3)
11 348.30 11 263.80 11 024.30
[Buy Here] [Buy Here]
Chances of Market Chances of Market
Going Up : ​75 % Going Up : ​66 %
But, Prices are High

It may not frequently touch R4, R5 and S4, S5.

Therefore, use R1, R2, R3 and S1, S2, S3

GO LONG ( DURING UP TREND IN THE MARKET)

(i) Buy 2 lots at S2.

Keep Stop Loss at Swing Low of Rs. 11 114.70

(ii) If Market Price crosses S1, Add 2 more lots.

Modify Stop Loss Quantity at Swing Low of Rs. 11 114.70 from 2 lots to 4
lots.

(iii) If the Trend goes in our favour and reaches Pivot Level,
Book Profit for 1 lot out of 4 lots.
Shift Trail Stop Loss from Swing Low (11 114.70) to S2 level (11 263.80)
for
The remaining 3 lots.

(iv) If the Trend reaches our Second Target (R1 level), Book Profit for 1 lot at
R1 level (11 492.65).
 Shift Trail Stop Loss from S2 level (11 263.80) to S1 level (11 348.30) for
The remaining 2 lots.

(v) if the Trend reaches our Third Target (R2 level), Book Profit for 1 lot at
R2 level.
Shift the Trail Stop Loss from S1 level (11 348.30) to pivot Level
(11420.50) for the remaining 1 lot.

(vi) Finally, if the Trend reaches R3 level, Book Profit for the last lot and
close
the trade.

GO SHORT ​(FOR SHORT SELLING DURING DOWNTREND IN THE MARKET)

(i) Sell 2 lots if it crosses R2 level.

Keep Stop Loss at Swing High of Rs. 11 726.25

(ii) If Market Price falls to R1 level, Sell 2 more lots.

Modify Stop Loss Quantity at Swing High of Rs. 11 726.25 from 2 lots to 4
lots.

(iii) If the Trend goes down and reaches Pivot Level,

Book Profit for 1 lot out of 4 lots ​[i.e. Buy 1 lot].
Shift Trail Stop Loss from Swing High (11726.25) to R2 level (11577.10)
for
The remaining 3 lots

(iv) If the Trend reaches goes down to S1 level, Book Profit for 1 lot at
S1 level (11348.30) ​[i.e. Buy 1 lot].
Shift Trail Stop Loss from R2 level (11577.10) to R1 level (11492.65) for
The remaining 2 lots.

(v) if the Trend S2 level, Book Profit for 1 lot at S2 level ​[i.e. Buy 1 lot].
Shift the Trail Stop Loss from R1 level (11492.65) to pivot Level
(11420.50) for the remaining 1 lot.
(vi) Finally, if the Trend goes down to S3 level, Book Profit for the last lot
and close the trade ​[i.e. Buy 1 lot].

3. ​INDICATORS :

(i) ​SUPER TREND :

Go to investing.com → Search NIFTY Futures → Streaming Chart (i.e. Live
chart) → Indicators → super Trend

Candles above the Green Line indicate Positive Trend.

If candles touch the Green Line, the line colour changes to Red which
indicates Negative Trend [​i.e. change in Trend form Positive to negative]

If candles touch the Red line, the Market trend will change from Negative to
Positive.

Up Arrow in the Chart indicates Buy Signal

Down Arrow in the chart indicates Sell Signal.

If the next candle breaks the Low of the Sell Candle, go for a Short Sell.
If the next candle breaks the High of the Buy Candle, go for a Buy.

(ii) ​MOVING AVERAGE :

Investing.com → Indicators → Moving Average.
Change the Input Length to 200
A Blue Line will appear.

If the Candles are above this Blue Line, it means the market is Positive [i.e.
the Market is in Buy Sentiment]

If the Candles are below this Blue Line, it means the market is Negative [i.e.
the Market is in Sell Sentiment]

(iii) ​VOLUME WEIGHTED AVERAGE PRICE (VWAP) :

Investing.com → Volume Weighted Average Price [Colour the line manually].

If the Candles are above this Blue Line, it means the market is Positive [i.e.
the Market is in Buy Sentiment]

If the Candles are below this Blue Line, it means the market is Negative [i.e.
the Market is in Sell Sentiment]
(iv) ​AWESOME OSCILLATOR :
Investing.com → Awesome Oscillator

If the bars are above the BaseLine, it means the market is Positive [i.e. the
Market is in Buy Trend]. Colour of the Candles [Blue or Red] does not matter.

If the Candles are below the BaseLine, it means the market is Negative [i.e.
the Market is in Sell Trend].

SUPPORT INDICATORS

(i) ADX (Average Directional Index) :

ADX indicates only direction of the other indicators.

(ii) ​BOLLINGER BANDS [THIS IS USED FOR COMMODITY SHORT SELL] :

Best Time Frame for using Bollinger Bands is 30 minutes ​[This time Frame is
applicable only for Bollinger Bands].

If the Candles are above the Median Line, it means the market is Positive [i.e.
the Market is in Buy Sentiment]

If the Candles are below the Median Line, it means the market is Negative
[i.e. the Market is in Sell Sentiment]

(i) ​ELLIOTT WAVE THEORY (FOR LONG TERM INVESTMENT) :

*Elliott Wave Theory states that there will be Impulsive Waves for 5 ways
and
Corrections Wave for 3 ways.
*Any Stock may have Strong Up Trend for 10 to 12 years and
Down Trend for 6 to 8 years.

(ii) ​TREND LINES :

For the Trend Lines to be valid :
* Connect three Highs and connect three Lows

(iii) ​HEIKIN ASHI :

Heikinashi is a Colour Based Strategy. Continuous Green Candles means
Positive Trend in the Market.
Continuous Red Candles means Negative Trend in the Market

SELF ANALYSIS

CAPITAL SAFETY:

● To make money need capital

● Never risk your capital foolishly
● Be a smart and safe player

KNOWLEDGE:

● Right Time, Right Decision

● Do research before investing
● Always know when to book your losses

GREEDY:

● Greedy Traders will never make money

PSYCHOLOGY:

● Traders should go against human nature

● Buy - When others are Selling ; Sell - When others are Buying
● Minimize your losses and maximize your profit
● Losses are part of the stock , always be prepare to take your losses

EMOTIONAL/PATIENCE:

● If you purchase a stock for a long-term prospective, never get

emotional by ups and downs of the market
● Controlling Emotions and keeping patience is extremely important in
stock market