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What is share market and how it works ? : The share market has always been a popular investment avenue. In fact, it always catches the eyes of the investors because of the returns that can be made in the stock market. More and more people are investing in the market in the hope of making good returns. In addition, mutual funds and SIP mode investment have been first preference of the people to invest their savings. In this article, we shall discuss the about the basis of the share market of India and how it works.

The first and foremost question that strikes the mind of any investor is the difference between stock market and share market. Are the two terms same or different? In this segment, we will understand how similar or different are stock market and share market.

What is Share Market ?

Stock Market and its Difference from Share Market ? : Stock market is a place where the buyers and sellers come under one place on a single platform to trade in stocks. The stock market has grown over a period of time. In fact, in earlier times when BOLT facility was not there, people use to stand in a trading ring to purchase or sell a stock. But with time, the computer terminals took over and now trading happens at broker’s office using the internet. To sum up, it would not be wrong to say that share market and stock market are one and the same thing.

Now we shall understand the basics of the India stock market.

Stock Market Basics in India

The Indian stock market has two exchanges where trading of shares and securities is possible. They are National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The shares of different companies are traded on these exchanges. The investors aim to invest money in such avenues where they can deal with inflation, future needs, etc. The stock market is one investment avenue which has the potential to give high returns to the investors. The investors cannot start investing or trading in the stock market without proper information or knowledge. To become a successful investor or trader one needs to learn about the functioning of the stock market, develop right strategies, indulge in understanding the technical and fundamentals of a company and much more. Nifty Trading Academy helps the beginners in the stock market to learn and form good investment strategy.

Stock Market Basics

The Indian stock market has two types of markets. In this segment, we shall learn about the types of markets in the share market in India.

# You also Read : Stock Market Timings

Types of Markets

There are two types of markets: Primary market and Secondary market. The primary market is one where a new company decides to come out with an initial public offer (IPO).  The new companies can get itself listed on the stock exchange through the primary market. On the other hand, once the company get itself listed and starts trading normally, it is termed as a secondary market. The trader and investor can indulge in normal buying and selling of shares.

The next thing that the traders and investors in the Indian share market must know is how and who determines the price of shares?

How and Who Determines Share Price?

The stock market determines the price of the shares. The whole concept of share market is dependent on the demand and supply concept. To put it another way, the price of the shares increases when there is more buying. On the other hand, the price of the shares decreases when there is selling. Thus, the demand and supply concept helps in identifying the price of a stock.

What is stock market

The next important thing that every trader and investor must know is the meaning of the term stock indices. In fact, stock indices are the most common term in the India share market, so let us learn about it.

Meaning of Stock Indices

The Indian stock market has hundreds and thousands of companies listed on it. The companies belong to different sectors and fields. When such companies are combined or grouped together to form an index it is termed as stock indices. The companies forming part of stock indices are classified on the basis of size, market capitalization, etc. The NSE index comprises of 50 stocks and BSE Index comprises of 30 stocks. Apart from stock indices, the Indian share market has sector indices that include bank index, pharma index, IT index and so on, where similar companies are grouped together.

# Learn Must : What is Nifty and Sensex ?

stock-market-share-indices

Now the next important question is how any normal person can trade in the Indian stock market. Well, the answers to it is simple as anyone can trade in the stock market through online or offline mode. Let us learn more about it.

How can I buy a share?

Online trading is one where the shares and securities can be purchased or sold using the internet. In fact, the transaction can be carried out by the trader or investor by sitting at his home, office, or from anywhere in the world. In fact, the trader or investor just need to log in to the trading account and execute the transactions. On the other hand, offline trading is one where trading can be done by visiting the office of the broker or by calling him to give orders to execute the transaction.

Trading in shares in securities is possible only with the help demat account. To execute transaction via online or offline mode the user must have a demat account with the broker. However, it must be kept in mind that trading account and demat account are different.

What is Trading Account and Demat Account?

Trading account is an account through which the user can execute only buy and sell orders. To execute transaction you need to open a trading account with the broker. The demat account is one which holds the shares and securities of the individual just like a bank account. In addition, when you purchase the shares in the trading account, the bank account gets debited and the demat account gets credited with shares. Upon selling of shares, vice versa happens.

# Learn Must : How to open Demat Account ?

Securities and Exchange Board of India (SEBI)

By now you must be very well knowing the basics of the Indian stock market. One more important thing that every investor in the market must know is that the Securities and Exchange Board of India (SEBI) regulates the Indian stock market. It has the authority to regulate and look after the welfare of the investors in the Indian stock market.

About Us

Nifty Trading Academy is the leader in providing stock market education to beginners and old investors. We provide free blogs and articles on the Indian stock market. Any beginner who wants to learn about the basics of the Indian stock market can visit our page and read the free blogs and articles. In addition, the reading material on our page is regularly updated. We ensure that the visitors on our page are well aware of the all the latest developments and information about the Indian stock market. By visiting our blogs and articles page you can become a successful investor and trader. We hope that’s you like our detail info blog on What is stock market.

The post What is Share Market and How it works ? appeared first on NTA.

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BSE and NSE are organised marketplace where investors and traders transact in shares and securities. We all have come across the word Sensex in the stock market. Sensex is the stock market index for Bombay Stock Exchange i.e. BSE. Similarly, Nifty is the stock market index of National Stock Exchange i.e. NSE. In this article, we shall list out the points that differentiate BSE and NSE with each other.

BSE vs. NSE

The key differences between Bombay Stock Exchange and National Stock Exchange are as follows:

  • BSE was established in the year 1875. On the other hand, NSE was set up in the year 1992.
  • BSE is one of the oldest stock exchange in India. While NSE is the largest stock exchange in India.
  • The daily turnover and trades are much higher in NSE in comparison to BSE.
  • NSE has a market capitalization of more than $1.65 trillion. While market capitalization of BSE is $1.7 trillion.
  • More than 1,700 companies are present on NSE. Meanwhile, BSE has over 5,500 companies on it.
  • NSE is present in all the cities of India. However, BSE is present only in around 400 cities of the country.
  • Sensex consists of 30 companies. On the other hand, Nifty comprises of 50 stocks from 22 sectors of the economy.

# NSE Website : https://www.nseindia.com/

# BSE Website : https://www.bseindia.com/

The above are the few points that differentiate NSE and BSE.

In this segment, we shall learn about the term Nifty 50.

What is Nifty 50?

Nifty 50 is a stock index that comprises of 50 stocks from 12 sectors of the economy. This is essential for bench marking of fund portfolios, index funds and index based funds.  The Nifty 50 index helps to measure the overall scenario of the equity market. The group of stocks that form part of the index represents the specific sector or specific segment.

[ Know More Detail About : Nifty and Sensex ]

Now you know the meaning of Nifty 50, let us now learn about BSE 30.

What is BSE 30?

BSE 30 comprises of 30 financially sound and well-established companies. These companies represent the different sectors of the economy. Each company has different weight on the exchange. On the basis of the performance of different stocks the index rises or falls.

Now an important point that must be known to an investor or trader is where they should trade. To put it another way, let us learn where most of the traders and investors trade in the stock exchange.

[ You also Like : What is SGX Nifty ]

Where do Investors and Traders Transact?

While selecting where to invest, it depends on the companies where one is looking to invest. Some companies may be listed on the BSE and not on NSE. Therefore, there is no option for such companies. However, if the companies are listed on both the exchanges, it totally depends on the choice of the investor. However, looking at the logical choice, many traders opt for trading and investing in shares on the NSE. The reason is high liquidity. The intraday traders opt for NSE as they find it easy to buy or sell any stock as the volume is high.

[ Learn About Stock Market Indices ]

Since BSE and NSE are an integral part of the Indian stock exchange, let us see the objectives of BSE and NSE.

Objective of BSE and NSE

The main objective of BSE and NSE is to facilitate trading service to the investors across the nation. The emphasis of both the exchanges is to reach the investors through a good telecommunication network. The stock exchanges not only serve in shares but also other securities like mutual funds, futures and options, debt market, etc. In fact, with the incredible reach of a telecommunication network, the investors can indulge in intraday trading too.

About Us :

Nifty Trading Academy is a pioneer in providing stock market education to the investors. With our expertise, the investors and traders can learn to understand the technical charts of the stocks. On the basis of the charts, the investors can take the right position in the stock market. Therefore, with the right knowledge and technical information the investors can become successful intraday traders. You can reach us via phone or email for any information or query. We will be glad to serve you.

The post Difference Between BSE and NSE appeared first on NTA.

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The stock market is full of different events that happen very frequently. The investors come across various terms and concepts every single day. Therefore, to survive long in the markets it is important to have the right set of knowledge of such terms. One term that is very common in the stock market is “Security Ban in F&O”. In this article, we shall understand what security ban is in future and options, and concepts related to it

Meaning of Security Ban

When the open interest of market wide position limit for a stock crosses 95%, the stock comes under the ban in the futures and options segment.  Moreover, the open interest is a combination of the entire future and options contract taken together for all the months.

Let us now see what happens in security ban.

[ Know First : 1. What is Nifty & Open Interest ]

What Happens in Security Ban

When a security enters in the ban, the only trade that the investors can take is to decrease their position. Furthermore, the investor can decrease his position by selling off his previous position. To put it another way, no new position in the security can be taken until it is in a ban. However, the traders may take intraday positions, as it does not have any effect on the open interest.

The important questions that cross our mind is when does the normal trading in securities in ban resumes?

When Normal Trading In Securities In Ban Resumes?

No trade other than a reduction in position of security can be initiated when the security is in a ban. The normal trading in stocks in ban resumes when the total open interest in all the exchanges comes down to 80% or below of the market wide position limit. To put in another way, when the open interest falls to 80% or below the security comes out of ban and normal trading resumes.

One important term the investor must know in the context of security ban is market wide position limit (MWPL). In this segment, we shall understand the meaning of market wide position limit (MWPL).

[ Know About Top 5 Screener for Indian Stocks  ]

Meaning of Market Wide Position Limit (MWPL)

The market wide position limit is not applicable to index derivatives. Furthermore, the concept of market wide position limit applies only to the stocks that are under futures and options segment. The stock exchange releases the data for MWPL of every stock in the f&o segment on monthly basis. The representation of MWPL is in the form of number of shares and it is lower of;

  • 20% of the free float i.e. non-promoter holding in terms of the number of shares.
  • 30 times the average number of shares traded daily, of the previous month in the cash segment of the exchange.

# Latest Security in Ban Period: 

https://www.nseindia.com/products/content/derivatives/equities/sec_ban.htm

About Us

Nifty Trading Academy provides blogs and articles on the stock market. Our motto is to educate the investors in stock market about the different terms and concepts. In fact, our blogs and articles comprise of important information and knowledge. Moreover, by applying the knowledge from our blogs and articles the investors can make more money. In stock market, knowledge is indeed the wealth as right positions in stock or index can be taken only on the basis of right information. Therefore, visit our blogs and articles regularly to always remain updated about different stock market concepts and information.

The post What is Security Ban in F&O? appeared first on NTA.

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What is Face Value? : The stock market has been getting a lot of attraction from the investors. In fact, the ability to generate higher returns in the stock market is a contributing factor. Moreover, to make good money in the stock market, the investors must know the important terms. One of the most common term that is heard by the investors is ‘face value of a share’. In this article, we shall understand the term ‘face value’ of a share in detail.

What is Face Value? [ Meaning of Face Value ]

The face value of a share is also the par value of a share. In fact, it is the legal value of the share. Since it is the legal value of a stock, the company must not pay it in form of dividends to the shareholders. Furthermore, the company fixes the face value of the stock at the time of its issuance. Thus, the investors in the stock market must understand the face value of a stock.

Let us now see the importance of face value of a share.

[ Must to Know: What is Nifty ]

Importance of Face Value of Share

The face value of a share plays a significant role in a company. It is useful for calculations in relation to bonds and preferred stock. Further more, the calculation of interest on bonds or preference shares is on the basis of the face value of a stock. Moreover, calculations like discounts, premium, market values, yields, etc. are also on the basis of face value of a share.

Let us take an example to understand the importance of face value with more clarity.

[ Must to Know : Open Interest

How Face Value of Share Works

Suppose ABC Ltd. decides to raise capital by issuing bonds. The bond issue is to raise Rs. 10 crore. Suppose the face value is Rs. 100, the company shall issue 10 lakh bonds. Now, if the company will have to pay 5% interest on its bond, then it would mean that it would have to pay 5% interest on the face value of Rs. 100 every year. Therefore, the annual value of interest on the bond shall come to 10,00,000 * 5% i.e. Rs. 50,000 with Rs. 100 as the face value.

The investors in stock market often confuse the term market value and face value. Let us understand the difference between the two.

[ Must To Know : Stock Market Timing ]

Difference between Market Value and Face Value

The investor in the stock market must know that the face value and market value of share are different from each other. In fact, the market value is one that changes with the market conditions. On the other hand, the face value of a share is fixed. The face value of the share is the par value and remain the same as it is specified in the books of the company and share certificate.

Right-now , We hope that you understood our blog title of ” What is Face Value ? ”

About Us

Nifty Trading Academy helps in educating the investors through blogs and articles on the stock market. The reading material on our page is very informative and updated at regular intervals. In fact, new as well as old investors can gain knowledge and learn many things by reading them. Just visit our blogs and articles to earn higher returns with the right set of knowledge and information.

The post What is Face Value ? appeared first on NTA.

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Making money in the stock market is not an easy task. It requires right set of knowledge, information and skills to earn handsome returns. Furthermore, it is essential to know the meaning of right terms. The investors may come across different terms each day in relation to their holdings in the portfolio. In fact, one term is bonus shares. In this article, we shall understand about bonus shares.

Meaning of Bonus Shares

Bonus shares mean additional shares. In fact, the company issues these shares to the shareholders without incurring any additional cost. Moreover, bonus shares are given to the current shareholders based on the number of the shares held by them. Furthermore, the bonus shares are given out of the accumulated earnings of the company.  To put it another way, the company utilizes it’s accumulated earnings to issue bonus shares instead of distributing it as dividends.

The important question that arises is why companies issue bonus share. Let us understand it in this segment. 

[ Know About : Best Screener for Indian Stocks ]

Reason for Issuing Bonus Share

When the company issues bonus share the overall capital of the company remains the same. However, with the issue of bonus share, the price of shares decreases as the number of shares increases. Furthermore, with the decrease in the price of shares, it becomes easier for the retail investor to invest in the company if the price is low. Therefore, bonus share increase retail participation and equity base of the company.

Let us now see an example of how bonus share are issued to existing shareholders 

[ Must to know : What is Nifty and Sensex ]

Example of Issuing Bonus Shares

Suppose Ram holds 100 shares of Reliance Industries at Rs.1600. Now the company decides to issue bonus share to its existing shareholders. Furthermore, the company declares 2:1 bonus. To put it another way, the shareholders shall get 2 shares of Reliance Industries for every one share of the company. Therefore, the shareholding of Ram shall increase from 100 shares to 200 shares. Moreover, the price of shares shall fall from Rs. 1600 to Rs. 800.

Let us now look at the advantages and disadvantages of issuing bonus share. 

[ Know About Related Article : Preference Shares ]

Advantages of Issuing Bonus Shares
  • Issuing bonus share increases the issued share capital of the company. This makes the company look much bigger than it is in reality.
  • Issuing bonus share make the stocks more affordable for the retail investors because of a decrease in share price. Therefore, the participation of retail investors increases. 
Disadvantages of Issuing Bonus Shares
  • Issuing of bonus share can result in a decline of dividend payment per share.
  • Shareholders sell their stake in the company after they receive the bonus shares to meet their liquidity needs. Consequently, their stake in the company decreases. 
About Us

Nifty Trading Academy aims to provide investors in the stock market with aright set of information and knowledge. In fact, to achieve our aim we provide blogs and articles. Furthermore, our articles and blogs are updated regularly. The investors can visit our blogs and articles for gaining relevant information and understanding the different concepts of the stock market.

The post What are Bonus Shares? appeared first on NTA.

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The Gujarat elections are over. BJP is all set to form the government again. More than anything, it is a victory for brand Modi over the opposition. In fact, the performance of the Congress party cannot be said to be bad. Yet they failed to reach the magical mark of 92 seats to form the government. Moreover, the Gujarat elections results have a direct impact on the stock market. For instance, the Sensex swung more than 1,000 points in a single session on election result date.

Stock Market and Elections

The global and domestic factors have a direct impacton the stock market. In fact, the investors experienced a roller coaster ride on the date of election results. Thus, the investors in the stock market can take good lessons from the election results. Therefore, in this article, we shall see the things that investors can learn from the Gujarat elections.

  1. Long-Term Focus

BJP came to power in recent state elections in Gujarat due to its long-term focus and planning. It is not a hidden fact that Gujarat is among the most developed states of India. It is so because of the long-term focus of the BJP government to grow and develop the state of Gujarat. Similarly, the stock market also demands long-term focus while investing. The compounding power of stocks is incredible. Thus, the investors should always have the patience to hold good stocks for long-term to reap its real benefits.

  1. Never Ignore

Even though BJP won the Gujarat elections, yet it has to pay the price for ignoring the rural voters. The urban-centric policies of the BJP government led to its downfall in the rural areas. Therefore, BJP received a massive set back in the rural seat share. Similarly, ignoring anything in the stock market can lead to losses. Thus, an investor needs to be always aware of the various factors and news flow that can have a significant impact on the portfolio.

[Read Top 5 Technical Analysis Books ]

  1. Planning

Planning in any area or aspect of life helps in achieving better results. BJP won the Gujarat elections with the help of good planning. In spite of many issues like Patidar agitation, demonization and GST impact, etc. it managed to overcome all the odds. This was possible only because of the well-planned election campaign and tapping the Modi brand rightly. Similarly, investment in the stock market requires good planning. Moreover, a portfolio that is built with good planning will always sustain and give good return even when the markets are not doing well.

[ For Planing Learn: Risk Management ]

  1. Strong Foundation

One reason why BJP won elections in Gujarat is its strong foundation. Over the last 22 years, it has ruled the state. Hence, it understands the state right from its grassroots. This gave them an edge over the Congress party. Similarly, in the stock market, investment should be made in companies that have a strong foundation. A company with a strong base can give the investors higher returns. In addition, the money invested in companies with a good foundation is relatively safer and has almost no risk of capital erosion.

[ For Strong Foundation Learn:  Demand & Supply Trading ]

  1. Visible Brand

The one major factor that contributed to the victory of BJP is brand Modi. Undoubtedly, Narendra Modi is the most popular brand in the country. The Gujarati voters showed their trust towards the brand Modi and gave votes to his party. In fact, Modi brand has been the major crowd puller in the elections rally and ultimately the votes. Conceding that, the investors in the stock market should also consider the brand value of a company before investing. The shares of companies that have strong brands surge at a rapid pace and generate good returns for the investors.

[ You also like Best Technical Analysis Software ]

Nifty Trading Academy aims to provide the investors in the stock market with right knowledge and information. To do so, we publish blogs and articles on our page. The reading material on our page is helpful not only to the new investors but also to the old ones. Furthermore, all the blogs and articles are freely available to read. Therefore, visit our blogs and articles regularly to grow your stock market-related information and knowledge.

The post Important Lessons for Investors in Stock Market from Gujarat Elections appeared first on NTA.

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Bulk deals and block deals are very important for everyone dealing in the market. In fact, every investor in the market must have come across these terms.  Thus, it becomes essential to know the true meaning of bulk and block deals. The stock markets are reaching new heights. Consequently, the stocks are also making anew high. When stocks are doing well or falling badly, we often come across the term bulk deals and block deals. In this article, we shall understand what are bulk and block deals.

Let us first learn about the term block deal.

Meaning of Block Deal

When two parties agree to transact between themselves for a minimum of 5,00,000 shares or for a minimum amount of Rs. 5 crores, it is termed asa block deal.

Now let us understand the mechanism of how block deals take place.

Mechanism of Block Deals

The block deal between two parties takes place as per the rules and guidelines laid by the Securities and Exchange Board of India (SEBI). As per the rules, the price of the block deal cannot be more or less than 1% of the closing price of the previous day. Furthermore, the block deals take place through a separate trading window. In addition, the trading window is open for 35 minutes only from 9.15 a.m. to 9.50 a.m. The block deal takes place at an agreed price and always results in delivery.

[ Must Read : Stock Market Timings ]

Following the block deal, the disclosure about it is made on the stock exchange website on the same day after the market hours. The disclosure consists of important details like company’s name, the average price of the block deal, client name, number of shares, etc.

Next, we shall learn about the term bulk deal.

Meaning of Bulk Deal

When the total quantity of shares bought or sold is more than 0.5% of the total number of equity shares of the company, it is termed as a bulk deal.

Now let us understand the mechanism of how bulk deals take place.

[ You also read : What is nifty and sensex ]

Mechanism of Bulk Deals

Unlike block deals, the mechanism for bulk deals is simpler. For instance, the bulk deal can take place at any time during normal trading hours. In addition, the broker who conducts the bulk deal has to inform the exchange whenever bulk deals happen.

The next important question that crosses our minds when we hear bulk or block deals is who participate in them. Let us learn about participants of bulk and block deals in this segment.

Participants of Block and Bulk Deals

Now, we know that both, bulk and blocks deals involve huge sums of money. Naturally, the parties to the trade must be big investors. In fact, the participants to bulk and blocks deals include foreign institutional investors (FII) and domestic institutional investors (DII). The DII and FII include insurance firms, banks, HNIs, fund houses, etc.

The next most important question is how bulk and block deals affect the price of a stock. In this segment, we shall understand the impact of bulk and block deals on stock prices.

[ Know about : What is SGX Nifty ]

Impact of Block and Bulk Deals on Stock Price

The investors in the stock market are always attracted to the stocks where block or bulk deals happen. Following the path of big investors is often the rule of most of the small investors. Therefore, when a big fund buying takes place in any stock, the stock price rises. The bulk or block deals also gives the other investors a confidence to buy more or remain invested in such stocks. In fact, when the block deals are disclosed at the end of the day on the exchange, the retail investors indulge in heavy buying in such stocks on the next day. Thus, it will not be wrong to say that buying by big funds in bulk or block deals attract a huge number of buyers. However, if a fund sells its stake in a company, the retail investors follow the same leading to fall in the price of the stock.

About Us

Investors in the stock market need to be aware of important information and possess the right knowledge to make good returns. Nifty Trading Academy provides blogs and articles on stock markets to the investors. In addition, we regularly update them. They consist of all-important information. Furthermore, the blogs and articles are free of cost. Visit our blogs and articles to enhance your stock market knowledge.

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Screener play an important role in value investing in stock markets. The Indian stock markets have become a major investment avenue. In addition, after demonetization people have started to divert their savings into the stock market. Furthermore, the reason for higher attraction is very understandable i.e. the potential of stocks to generate higher returns. Therefore, it would not be wrong to say that the investors and traders are always looking at good stock investment opportunity.

In this article, we shall understand what does screener mean and few of the best screeners for the Indian stocks.

What is Screener?

A screener is a tool that identifies stocks based on the filters. The investors define the metrics to find the stocks for investment or trading. Therefore, if any stock fulfills the criteria laid down for the stocks, the investor can add the stock in the portfolio. The major function of the screener is to find stocks that are set to perform well over a period.

Let us have a look at top screeners for Indian stocks.

Best Screeners for Indian Stocks
  1. Screener.in

Screener.in is the most popular screener in India. It helps the users to do stock analysis and check all the company related information on a single page. What makes it a good website is that it shows peer comparison, cash flows, financial statement, major announcements, etc. of the company over a period of years. Thus, one can see all the necessary details at a single place. Email alerts can also be set for different stocks. If a certain stock meets the pre-defined criteria users will be notified.

Screener.in
  1. Stockflare

Stockflare provides information on different stock for self-directed investors. In fact, the information includes real-time pricing, closing price of the day, fundamentals and estimated price of a company in future, etc. In addition, the website provides data in the graphical form, making it easy to understand even for non-professionals. The website uses different metrics on the stock to determine whether they are good for investment or not.  Furthermore, the fundamental and technical analysis provided by the website help the investors to determine their future position in the stock.

Stockflare
  1. MoneyWorks4Me

MoneyWorks4Me provides suggestions for stocks. In fact, it recommends the right stock for the investors by analysis the past 10 years performance and its long-term prospects. In addition, it helps the investor in making a balanced portfolio. To put it another way, it helps the investors to become a sensible investor. The website provides the investors the tip to make a portfolio by managing different risks like asset allocation risk, sectoral exposure, valuation risk, etc. In addition, the user can get the detailed information about the companies past performances and many more aspects.

MoneyWork4Me
  1. CapitalCube

CapitalCube is another popular researcher for stocks. Analytic Insight powers it. The website provides its research on more than 40,000 equity shares. In addition, Capitalcube ensures that the investors invest lesser time on research and analysis of stock by suggesting them the stocks. In fact, the analysis of the stocks includes the study of past charts, fundamentals, dividend and equity quality, and much more. Therefore, if the investors intend to find good stocks for their portfolio, they can visit the website and check stock analysis.

CapitalCube
  1. Equity Boss

Equity Boss stock screener helps the investors to make quick financial decisions. The investors can pre-set their own criteria to find value stocks. In fact, the pre-set conditions can be laid for stocks of a particular sector. The website rates the stocks with different grades like excellent for potential out performer stocks, good for market performers and poor for under performers. Therefore, by carefully looking at the insights of stocks, the investors can arrive at a decision.

  1. Edelweiss

Edelweiss is one of the topmost brokerage house in India. The investor can do the screening of the stock on their website. The investors can add their own criteria to screen the stocks. The filter uses the criteria given by the investors and suggests the stocks. In addition, the investors can select any stock from the list to know more details about the stock. Furthermore, the website provides fundamental analysis and other details of the company. Therefore, by checking the past performances and data, the investor can easily take an investment decision.

Edelweiss

The above are the few of the popular screeners for the Indian stocks. An investor can visit any of the above websites to seek the right knowledge about any stock before investing in them. In addition, the investors who like to keep themselves updated about their portfolio holdings can also regularly visit the above websites.

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Nifty Trading Academy aims at imparting stock market education to the people. In fact, we post blogs and articles to achieve our aim. The blogs and articles are very informative and knowledgeable. Furthermore, new and old investors can learn a lot by reading from our website. In the stock market, you make higher returns if you know the different concepts and possess all the information. Therefore, do not stay behind and try to gain more knowledge every single day. Visit our blogs and articles for all the stock market related information and knowledge.

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Dabba trading (bucketing) has grown in popularity over the years. Dabba Trading also know as ” Bucketing or Box Trading “. People see stock market as a major investment avenue. In fact, the sensex and nifty are touching new highs very frequently these days. Consequently, it drives investors towards the stock markets to reap the benefits. Furthermore, to trade in the stock markets the investors needs to open a demat account with a broker. However, the investor often takes a different route of bucketing to carry out trades in the stock market.

In this article, we shall understand the dabba trading in detail. Let us first understand its meaning.

What Is Algo Trading

⇒ Meaning of Dabba Trading

Dabba trading is a proxy illegal market that has its own set of rules and regulations. In addition, the bucketing is driven by changes in the price of shares and commodities of the stock market. To put it another way, bucketing is a parallel illegal stock market.

Next, we shall learn how dabba trading works.

⇒ How Dabba Trading Works?

Dabba trading is a process through which the broker routes the client to trade outside the stock exchange. The bucketing acts as an operator who functions away from the crowded business areas. In real trade, the investors place the order with the broker and the transaction takes place in the demat account. However, in case of dabba trade, the investor places the order with the operator. Following the order, the operator records the transaction in his book or register. In addition, the operator takes money from the investor for the trade. This transaction is executed outside the exchange and the operator acts as the counter party to the trade.

What is Nifty

In case of bucketing, the operator bears the loss and profits. The operator in dabba trading works on the assumption that some clients will have to bear the loss while some will make a profit. Thus,bucketing involves counter party risk and action by the respective authorities as it is an illegal trade.

Let us see a dabba trading example to understand about it in a better way.

⇒ Dabba Trading Example

Suppose an investor buy a nifty call option with a lot of 50 at Rs.80. In this case, the investor shall pay Rs. 4000 to the operator. However, if the nifty goes down and the investor sells the call option bought earlier for Rs. 50. Therefore, the operator here shall return the investor Rs. 1500. Thus, the profit earned by the operator here is Rs. 4,000 – Rs. 2,500 i.e. Rs. 1,500. The risk with bucketing is that if the operator is suffering continuous losses, it will force him to close his shop. Consequently, there are high chances that he will run away with whatever money he is possessing. Thus, leading to heavy losses to the investors.

Intraday trading Rules and Regulations

From the above example, it must be clear how bucketing takes place. Let us now understand dabba trading in MCX.

Market Pulse- SEBI Ups Ante On Dabba Trading - YouTube

⇒ Dabba Trading MCX

The dabba operators are involved in trading of stocks and commodities. The stocks relate to the Indian stock exchange. However, the commodity trading is carried out based on the pricing of Multi Commodity Exchange i.e. MCX. MCX is a platform for trading in different types of commodities. The operators charge a minimal fee from the investors and carry out trading of different commodities that are listed on the MCX.

By now, you must be aware of the bucketing. Next, we shall learn about dabba trading software

Stock Market Timing in India

⇒ Dabba Trading Software

The bucketing business has reached to such levels that the operators now use dabba trading software. The operators use automated software system that carries out the transaction of different clients. The dabba trading software was developed to lessen the human costs. In addition, with the continuous growth in the market, the number of clients for dabba operators increased drastically. Thus, to serve various client from different parts of the country the bucketing software came into existence. Now the operators transact through the software that is connected to the stock market and commodities market to track the live prices.

Must to Know ⇒ Best Technical Analysis Software

The major cities were dabba trading is famous are Rajkot, Jamnagar, Surat, Ahmedabad, Delhi, Nagpur, Pune, Mumbai, Lucknow, etc. However, different authorities and personnel have launched dabba trading complaints in the recent times but the illegal market continues to conduct its operations.

# Know More About Dabba Trading Scam : https://goo.gl/H67YJW

About Us

Nifty Trading Academy aims to provide stock market information and knowledge to the clients. Therefore, to achieve the aim, we have blogs and articles for the investors and traders in the stock market. We regularly update our blogs and articles. We post reading material that is relevant for the readers. Furthermore, the information and knowledge can help the investors to make higher returns in the market. Visit our blogs and articles to remain updated on all the parameters of the stock market.

The post What is Dabba Trading? Box Trading appeared first on NTA.

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