mba report

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A
PROJECT REPORT
ON
“INVESTOR PREFERENCE ON TRADING IN EQUITY MARKET”
Submitted to
SARDAR PATEL COLLEGE OF ADMINISTRATION &MANAGEMENT (SPCAM –
MBA)
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
IN
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide Company Guide
NAITIK RAIMI SONAL SHAH
Professor Assistant Manager Sales
Submitted by
(Karan rajendrabhai Patel)
Enrollment No: 157550592050
M.B.A – SEMESTER III
SARDAR PATEL COLLEGE OF ADMINISTRATION &MANAGEMENT (SPCAM –
MBA)
M.B.A PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
July 2016

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GUJARAT TECHNOLOGICAL UNIVERSITY Sardar Patel College of
Administration & Management (SPCAM-MBA)
Approved by All India Council for Technical Education (AICTE), New Delhi
AFFILIATED WITH GUJARAT TECHNOLOGICAL UNIVERSITY,
AHMEDABAD
SPEC Campus, Vidhyanagar-Vadtal Road Bakrol-388315, Anand (Gujarat)
Certificate
This is to certify that Mr. /Ms. “karan r. patel” a student of MBA: 2013-15 batch of
Sardar Patel College of Administration and Management (SPCAM-MBA), SPEC Campus-
Bakrol, Anand has Undergone the Summer Internship Training from “01/06/2016” to
“25/07/2016” at “SHAREKHAN (VV NAGAR BRANCH ANAND)”.
he has prepared detailed project report on “INVESTOR PREFERENCE ON
TRADING IN EQUITY MARKET”. The data and information used by “KARAN R.
PATEL” has been used exclusively for the purpose of Two years full time Master of
Business Administration (MBA) program of Gujarat Technological University-Ahmadabad.
Faculty Guide Dr. Vashisthadhar Dwivedi
Naitik raimi Director General
Asso. Professor SPCAM-MBA

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DECLARATION
I Karan Patel hereby declare that the project report entitled “sharekhan” being submitted
to GUJARAT TECHNOLOGICAL UNIVERSITY- AHMADABAD is my own piece of
work and it has not been submitted to any other institute or published at any time before.
Date: karan patel
Place: V.V.NAGAR

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PREFACE
For a management student training plays an important role during his/her study.
Training provides a corporate or real world platform to learn practically. MBA degree
without any training or corporate world experience is just like life without oxygen. So
industrial training provides a great learning experience about management concepts and its
applications.
This training provides us an opportunity to know the current market. To know
the current market situations, prevailing competitions, behavioral environment of different
people etc. It provides us a platform whereby we can apply our theoretical knowledge and we
can solve many practical problems. And hence it can help us to be a successful manager in
future.
Thanks to all those who directly or indirectly help me to complete this project
within a short time limit. For preparation of this report I would like to thanks to faculty
members of our college and staff members of SHARE KHAN LTD entire v.v nagar branch.

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ACKNOWLEDGEMENT
There is a fact that few people in this world is 100% perfect know about share market and in
order to gain some knowledge about share market in itself an individual surely needs a
helping hand. The same was with me with respect to the project that I was undergoing during
this session of 55days. As I too was illiterate with this research topic that I selected for my
research at the initial stages, I got acquainted with it slowly and steadily through efforts and
surely from various intelligent and helpful personalities. I would like to extend my heartily
thanks to all of them through this acknowledgement.
I am also thankful to sonal shah( Assistant manager sales) of Sharekhan Ltd., V.v
nagar branch anand for giving me an opportunity for getting in valuable experience in such
reputed organization and giving actual training and the required knowledge & guidance in
completing this training successfully. .
Finally, I would like to record my special thanks to my parents, friends, and
colleagues help me directly or indirectly in preparation of project work.

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INDEX
NUMBER Particular Page no.
1 Back ground of the project 11 to 29
2 a)Share market
b)stock firm in india
30 to 34
35
3 Company Study 36 t0 39
4 Detail of Marketing, Finance, HR & operation
department of the company
41 to 58
5 Research Work
Introduction of the Study
5.1 Literature Review
5.2 Rational of the Study
5.3 objective of the study
5.4 Hypothesis
60 to61
62
6 Research Methodology
6.1 Research Design
6.2 Sources of Data
6.3 Data Collection Method
6.4 Population
6.5 Sampling Method
6.6 Date Collection Instrument
6.7 Limitation of the Study
63
7 Data analysis & Interpretation 64 to 69
8 Hypothesis Testing 70 to 71
10 Findings & Suggestions 72 to 73
11 Conclusion 74
Bibliography 75
Annexure
(questionnaire)
76to 77
1)EXECUTIVE SUMMARY

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Conceptually the mechanism of stock market is very simple. People who are exposed to the
same risk come together and agree that if anyone of the person suffers a loss the other will
share the loss and make good to the person who lost.
We also here observe the Customer’s Perception trading in equity and its .
The Initial part of the project focuses on the sales of types of the products of the company,
and also focuses on the acquisition of the customer. The job profile is to create customer,
making good relationship with them to have references and motivating to trade for the
company benefit and their profit.
It also enlightens the strategies to acquire the customer base. Further the project tells us about
the profile of the company (SHAREKHAN). It provides knowledge about the company’s
history, mission, vision and customer base and about the company in detail and management
of the company. Also it gives special emphasis on the selling of products and management of
the company.
This is devoted to study the comparative analysis of the competitors and the SWOT analysis,
which tells about the Sharekhan edge over its competitors. This project leads us towards the
job descriptions and difficulties faced by me. The project throws light upon my finding and
analysis about the company and the suggestions for the company for better performance.
This project will help the people in getting lot of their answers related to investment options
and the ways to analysis the market. The data in the project can also help the company in
making the strategy for potential investor’s.

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Introduction about topic
Equity
equity is a share in the ownership of a company. Equity represents a claim on the company's
assets and earnings. As you acquire more equity, your ownership stake in the company
becomes greater. Whether you say shares, equity, it all means the same thing.
Being an Owner
Holding a company's equity means that you are one of the many owners (shareholders) of a
company and, as such, you have a claim (albeit usually very small) to everything the
company owns. Yes, this means that technically you own a tiny sliver of every piece of
furniture, every trademark, and every contract of the company. As an owner, you are entitled
to your share of the company's earnings as well as any voting rights attached to the equity.
A stock is represented by a stock certificate. This is a piece of paper that is proof of your
ownership. Today its in dematerialized form i.e. in electronic form shares have been kept
safe. This is done to make the shares easier to trade. In the past, when a person wanted to sell
his or her shares, that person physically took the certificates down to the brokerage. Now,
trading with a click of the mouse or a phone call makes life easier for everybody.
Being a shareholder of a public company does not mean you have a say in the day-to-day
running of the business. Instead, one vote per share to elect the board of directors at annual
meetings is the extent to which you have a say in the company. For instance, being a Reliance
shareholder doesn't mean you can call up Mukesh Ambani and tell him how you think the
company should be run.
The management of the company is supposed to increase the value of the firm for
shareholders. If this doesn't happen, the shareholders can vote to have the management
removed, at least in theory. In reality, individual investors like you and I don't own enough
shares to have a material influence on the company.
Debt vs. Equity
Why does a company issue stock? Why would the founders share the profits with thousands
of people when they could keep profits to themselves? The reason is that at some point every
company needs to raise money. To do this, companies can either borrow it from somebody or
raise it by selling part of the company, which is known as issuing stock. A company can
borrow by taking a loan from a bank or by issuing bonds. Both methods fit under the
umbrella of debt financing. On the other hand, issuing stock is called equity financing.
Issuing stock is advantageous for the company because it does not require the company to
pay back the money or make interest payments along the way. All that the shareholders get in
return for their money is the hope that the shares will someday be worth more than what they
paid for them. The first sale of a stock, which is issued by the private company itself, is called
the initial public offering (IPO).

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It is important that you understand the distinction between a company financing through debt
and financing through equity. When you buy a debt investment such as a bond, you are
guaranteed the return of your money (the principal) along with promised interest payments.
This isn't the case with an equity investment. By becoming an owner, you assume the risk of
the company not being successful - just as a small business owner isn't guaranteed a return,
neither is a shareholder. As an owner, your claim on assets is less than that of creditors. This
means that if a company goes bankrupt and liquidates, you, as a shareholder, don't get any
money until the banks and bondholders have been paid out; we call this absolute priority.
Shareholders earn a lot if a company is successful, but they also stand to lose their entire
investment if the company isn't successful.
Risk
It must be emphasized that there are no guarantees when it comes to individual stocks. Some
companies pay out dividends, but many others do not. And there is no obligation to pay out
dividends even for those firms that have traditionally given them. Without dividends, an
investor can make money on a stock only through its appreciation in the open market. On the
downside, any stock may go bankrupt, in which case your investment is worth nothing.
Although risk might sound all negative, there is also a bright side. Taking on greater risk
demands a greater return on your investment. This is the reason why stocks have historically
outperformed other investments such as bonds or savings accounts. Over the long term, an
investment in stocks has historically had an average return of around 10-12%.
Different types of Stocks
1. Common Stock
2. Preferred Stock
1) Common Stock
Common stock is, well, common. When people talk about stocks they are usually referring to
this type. In fact, the majority of stock is issued is in this form. We basically went over
features of common stock in the last section. Common shares represent ownership in a
company and a claim (dividends) on a portion of profits. Investors get one vote per share to
elect the board members, who oversee the major decisions made by management. Over the
long term, common stock, by means of capital growth, yields higher returns than almost
every other investment. This higher return comes at a cost since common stocks entail the
most risk. If a company goes bankrupt and liquidates, the common shareholders will not
receive money until the creditors, bondholders and preferred shareholders are paid.
2) Preferred Stock
Preferred stock represents some degree of ownership in a company but usually doesn't come
with the same voting rights. (This may vary depending on the company.) With preferred
shares, investors are usually guaranteed a fixed dividend forever. This is different than
common stock, which has variable dividends that are never guaranteed. Another advantage is
that in the event of liquidation, preferred shareholders are paid off before the common
shareholder (but still after debt holders). Preferred stock may also be callable, meaning that
the company has the option to purchase the shares from shareholders at anytime for any
reason (usually for a premium). Some people consider preferred stock to be more like debt

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than equity. A good way to think of these kinds of shares is to see them as being in between
bonds and common shares.
How do Stock Price Change
Stock prices change every day as a result of market forces. By this we mean that
share prices change because of supply and demand. If more people want to buy a stock
(demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to
sell a stock than buy it, there would be greater supply than demand, and the price would fall.
Understanding supply and demand is easy. What is difficult to comprehend is what makes
people like a particular stock and dislike another stock. This comes down to figuring out what
news is positive for a company and what news is negative. There are many answers to this
problem and just about any investor you ask has their own ideas and strategies.
That being said, the principal theory is that the price movement of a stock indicates what
investors feel a company is worth. Don't equate a company's value with the stock price. The
value of a company is its market capitalization, which is the stock price multiplied by the
number of shares outstanding. For example, a company that trades at Rs 100 per share and
has 1 million shares outstanding has a lesser value than a company that trades at Rs 50 that
has 5 million shares outstanding (Rs 100 x 1 million = Rs 100 million while Rs 50 x 5 million
= Rs 250 million).
To further complicate things, the price of a stock doesn't only reflect a company's current
value, it also reflects the growth that investors expect in the future.
The important things to grasp about this subject are the following:
1. At the most fundamental level, supply and demand in the market determines stock price.
2. Price times the number of shares outstanding (market capitalization) is the value of a
company. Comparing just the share price of two companies is meaningless.
3. Theoretically, earnings are what affect investors' valuation of a company, but there are
other indicators that investors use to predict stock price. Remember, it is investors'
sentiments, attitudes and expectations that ultimately affect stock prices.
4. There are many theories that try to explain the way stock prices move the way they do.
Unfortunately, there is no one theory that can explain everything.

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How to Read a Stock/ Quote
A stock quote will look like something be
Stock Symbol - This is the unique alphabetic name which identifies the stock. If you watch
financial TV, you have seen the ticker tape move across the screen, quoting the latest prices
alongside this symbol. If you are looking for stock quotes online, you always search for a
company by the ticker symbol. In above stock quote it’s Relcapital
52-Week High and Low - These are the highest and lowest prices at which a stock has
traded over the previous 52 weeks (one year). This typically does not include the previous
day's trading.

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Security Name & Type of Stock - This column lists the name of the company. If there are
no special symbols or letters following the name, it is common stock. Different symbols
imply different classes of shares.
For example, "eq" means the shares are equity.
Total Traded Quantity - This figure shows the total number of shares traded for the day.Its
the volume for the day.
Day High and Low - This indicates the price range at which the stock has traded at
throughout the day. In other words, these are the maximum and the minimum prices that
people have paid for the stock. Close - The close is the last trading price recorded when the
market closed on the day. Keep in mind, you are not guaranteed to get this price if you buy
the stock the next day because the price is constantly changing (even after the exchange is
closed for the day). The close is merely an indicator of past performance and except in
extreme circumstances serves as a ballpark of what you should expect to pay. Net Change -
This is the rupee value change in the stock price from the previous day's closing price. When
you hear about a stock being "up for the day," it means the net change was positive.
Order Book – On the right hand side you see “Buy Qty”, “Buy Price”. This shows the top 5
bid and asks figures at which the security is trading. This basically shows the demands and
supply of a particular stock. Its actually shows the market breadth which will give you the
number of buyers and sellers.
Bulls & Bears
The Bulls
A bull market is when everything in the economy is great, people are finding jobs, gross
domestic product (GDP) is growing, and stocks are rising. Picking stocks during a bull
market is easier because everything is going up. Bull markets cannot last forever though, and
sometimes they can lead to dangerous situations if stocks become overvalued. If a person is
optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a
"bullish outlook".
The Bears
A bear market is when the econo my is bad, recession is looming and stock prices are
falling. Bear markets make it tough for investors to pick profitable stocks. One solution to
this is to make money when stocks are falling using a technique called short selling. Another
strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only
starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks
are going to drop, he or she is called a "bear" and said to have a "bearish outlook".
After knowing about the stock basics. Let’s discuss now about the company research analysis
which can help you in deciding which particular stocks to choose.

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Types of Research
Fundamental Analysis:
Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't
really investing if you aren't performing fundamental analysis. Because the subject is so
broad, however, it's tough to know where to start. There are an endless number of investment
strategies that are very different from each other, yet almost all use the fundamentals.
The biggest part of fundamental analysis involves delving into the financial statements. Also
known as quantitative analysis, this involves looking at revenue, expenses, assets, liabilities
and all the other financial aspects of a company. Fundamental analysts look at this
information to gain insight on a company's future performance. A good part of this tutorial
will be spent learning about the balance sheet, income statement, cash flow statement and
how they all fit together.
Basics
When talking about stocks, fundamental analysis is a technique that attempts to determine a
security’s value by focusing on underlying factors that affect a company's actual business and
its future prospects. On a broader scope, you can perform fundamental analysis on industries
or the economy as a whole. The term simply refers to the analysis of the economic well-being
of a financial entity as opposed to only its price movements.
Fundamental analysis serves to answer questions, such as:
 Is the company’s revenue growing?
 Is it actually making a profit?
 Is it in a strong-enough position to beat out its competitors in the future?
 Is it able to repay its debts?
Note: The term fundamental analysis is used most often in the context of stocks, but you can
perform fundamental analysis on any security, from a bond to a derivative. As long as you
look at the economic fundamentals, you are doing fundamental analysis. For the purpose of
this tutorial, fundamental analysis always is referred to in the context of stocks.
Fundamentals: Quantitative and Qualitative
You could define fundamental analysis as “researching the fundamentals”, but that doesn’t
tell you a whole lot unless you know what fundamentals are. As we mentioned in the
introduction, the big problem with defining fundamentals is that it can include anything
related to the economic well-being of a company. Obvious items include things like revenue

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and profit, but fundamentals also include everything from a company’s market share to the
quality of its management.
The various fundamental factors can be grouped into two categories: quantitative and
qualitative. The financial meaning of these terms isn’t all that different from their regular
definitions. Here is how the MSN Encarta dictionary defines the terms:
 Quantitative – capable of being measured or expressed in numerical terms.
 Qualitative – related to or based on the quality or character of something, often as
opposed to its size or quantity.
In our context, quantitative fundamentals are numeric, measurable characteristics about a
business. It’s easy to see how the biggest source of quantitative data is the financial
statements. You can measure revenue, profit, assets and more with great precision.
Turning to qualitative fundamentals, these are the less tangible factors surrounding a
business - things such as the quality of a company’s board members and key executives, its
brand-name recognition, patents or proprietary technology.
Quantitative Meets Qualitative
Neither qualitative nor quantitative analysis is inherently better than the other. Instead, many
analysts consider qualitative factors in conjunction with the hard, quantitative factors. Take
the Coca-Cola Company, for example. When examining its stock, an analyst might look at
the stock’s annual dividend payout, earnings per share, P/E ratio and many other quantitative
factors. However, no analysis of Coca-Cola would be complete without taking into account
its brand recognition. Anybody can start a company that sells sugar and water, but few
companies on earth are recognized by billions of people. It’s tough to put your finger on
exactly what the Coke brand is worth, but you can be sure that it’s an essential ingredient
contributing to the company’s ongoing success.
The Concept of Intrinsic Value
Before we get any further, we have to address the subject of intrinsic value. One of the
primary assumptions of fundamental analysis is that the price on the stock market does not
fully reflect a stock’s “real” value. After all, why would you be doing price analysis if the
stock market were always correct? In financial jargon, this true value is known as the intrinsic
value.
For example, let’s say that a company’s stock was trading at Rs 20. After doing extensive
homework on the company, you determine that it really is worth Rs 25. In other words, you
determine the intrinsic value of the firm to be Rs 25. This is clearly relevant because an
investor wants to buy stocks that are trading at prices significantly below their estimated
intrinsic value. This leads us to one of the second major assumptions of fundamental analysis:
in the long run, the stock market will reflect the fundamentals. There is no point in buying a
stock based on intrinsic value if the price never reflected that value. Nobody knows how long

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“the long run” really is. It could be days or years. This is what fundamental analysis is all
about. By focusing on a particular business, an investor can estimate the intrinsic value of a
firm and thus find opportunities where he or she can buy at a discount. If all goes well, the
investment will pay off over time as the market catches up to the fundamentals.

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Technical Analysis:
Technical analysis really just studies supply and demand in a market in an attempt to
determine what direction, or trend, will continue in the future. In other words, technical
analysis attempts to understand the emotions in the market by studying the market itself, as
opposed to its components. If you understand the benefits and limitations of technical
analysis, it can give you a new set of tools or skills that will enable you to be a better trader or
investor.
Technical analysis is a method of evaluating securities by analyzing the statistics generated
by market activity, such as past prices and volume. Technical analysts do not attempt to
measure a security's intrinsic value, but instead use charts and other tools to identify patterns
that can suggest future activity.
Just as there are many investment styles on the fundamental side, there are also many
different types of technical traders. Some rely on chart patterns, others use technical
indicators and oscillators, and most use some combination of the two. In any case, technical
analysts' exclusive use of historical price and volume data is what separates them from their
fundamental counterparts. Unlike fundamental analysts, technical analysts don't care whether
a stock is undervalued - the only thing that matters is a security's past trading data and what
information this data can provide about where the security might move in the future.
The field of technical analysis is based on three assumptions:
1. The market discounts everything.
2. Price moves in trends.
3. History tends to repeat itself.
1. The Market Discounts Everything
A major criticism of technical analysis is that it only considers price movement, ignoring
the fundamental factors of the company. However, technical analysis assumes that, at any
given time, a stock's price reflects everything that has or could affect the company - including
fundamental factors. Technical analysts believe that the company's fundamentals, along with
broader economic factors and market psychology, are all priced into the stock, removing the
need to actually consider these factors separately. This only leaves the analysis of price
movement, which technical theory views as a product of the supply and demand for a
particular stock in the market.
2)Price Moves in Trends In technical analysis,
price movements are believed to follow trends. This means that after a trend has been
established, the future price movement is more likely to be in the same direction as the trend
than to be against it. Most technical trading strategies are based on this assumption.

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3. History Tends To Repeat Itself
Another important idea in technical analysis is that history tends to repeat itself, mainly in
terms of price movement. The repetitive nature of price movements is attributed to market
psychology; in other words, market participants tend to provide a consistent reaction to
similar market stimuli over time. Technical analysis uses chart patterns to analyze market
movements and understand trends. Although many of these charts have been used for more
than 100 years, they are still believed to be relevant because they illustrate patterns in price
movements that often repeat themselves.
A More Formal Definition
Unfortunately, trends are not always easy to see. In other words, defining a trend goes well
beyond the obvious. In any given chart, you will probably notice that prices do not tend to
move in a straight line in any direction, but rather in a series of highs and lows. In technical
analysis, it is the movement of the highs and lows that constitutes a trend. For example, an
uptrend is classified as a series of higher highs and higher lows, while a downtrend is one of
lower lows and lower highs.
Figure 1 is an example of an uptrend. Point 2 in the chart is the first high, which is
determined after the price falls from this point. Point 3 is the low that is established as the
price falls from the high. For this to remain an uptrend, each successive low must not fall
below the previous lowest point or the trend is deemed a reversal.
Types of Trend
There are three types of trend:
1) Uptrend
2) Downtrends
3) Sideways/Horizontal Trends
As the names imply, when each successive peak and trough is higher, it's referred to as an
upward trend. If the peaks and troughs are getting lower, it's a downtrend. When there is little
movement up or down in the peaks and troughs, it's a sideways or horizontal trend. If you
want to get really technical, you might even say that a sideways trend is actually not a trend
on its own, but a lack of a well-defined trend in either direction. In any case, the market can
really only trend in these three ways: up, down or nowhere.

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Trend Lengths
Along with these three trend directions, there are three trend classifications. A trend of any
direction can be classified as a long-term trend, intermediate trend or a short-term trend. In
terms of the stock market, a major trend is generally categorized as one lasting longer than a
year. An intermediate trend is considered to last between one and three months and a near-
term trend is anything less than a month. A long-term trend is composed of several
intermediate trends, which often move against the direction of the major trend. If the major
trend is upward and there is a downward correction in price movement followed by a
continuation of the uptrend, the correction is considered to be an intermediate trend. The
short-term trends are components of both major and intermediate trends. Take a look a Figure
2 to get a sense of how these three trend lengths might look.
When analyzing trends, it is important that the chart is constructed to best reflect the type of
trend being analyzed. To help identify long-term trends, weekly charts or daily charts
spanning a five-year period are used by chartists to get a better idea of the long-term trend.
Daily data charts are best used when analyzing both intermediate and short-term trends. It is
also important to remember that the longer the trend, the more important it is; for example, a
one-month trend is not as significant as a five-year trend.

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Trendlines
Trendline is a simple charting technique that adds a line to a chart to represent the trend in the
market or a stock. Drawing a trendline is as simple as drawing a straight line that follows a
general trend. These lines are used to clearly show the trend and are also used in the
identification of trend reversals.
As you can see in Figure 3, an upward trendline is drawn at the lows of an upward trend. This
line represents the support the stock has every time it moves from a high to a low. Notice
how the price is propped up by this support. This type of trendline helps traders to anticipate
the point at which a stock's price will begin moving upwards again. Similarly, a downward
trendline is drawn at the highs of the downward trend. This line represents the resistance level
that a stock faces every time the price moves from a low to a high.
Channels
A channel, or channel lines, is the addition of two parallel trendlines that act as strong areas
of support and resistance. The upper trendline connects a series of highs, while the lower
trendline connects a series of lows. A channel can slope upward, downward or sideways but,
regardless of the direction, the interpretation remains the same. Traders will expect a given
security to trade between the two levels of support and resistance until it breaks beyond one
of the levels, in which case traders can expect a sharp move in the direction of the break.
Along with clearly displaying the trend, channels are mainly used to illustrate important areas
of support and resistance.

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Figure 4 illustrates a descending channel on a stock chart; the upper trendline has been placed
on the highs and the lower trendline is on the lows. The price has bounced off of these lines
several times, and has remained range-bound for several months. As long as the price does
not fall below the lower line or move beyond the upper resistance, the range-bound
downtrend is expected to continue.
The Importance of Trend
It is important to be able to understand and identify trends so that you can trade with rather
than against them. Two important sayings in technical analysis are "the trend is your friend"
and "don't buck the trend," illustrating how important trend analysis is for technical traders.
Chart Types
Line Chart The most basic of the four charts is the line chart because it represents only the
closing prices over a set period of time. The line is formed by connecting the closing prices
over the time frame. Line charts do not provide visual information of the trading range for the
individual points such as the high, low and opening prices. However, the closing price is
often considered to be the most important price in stock data compared to the high and low
for the day and this is why it is the only value used in line charts.
Bar Charts
The bar chart expands on the line chart by adding several more key pieces of information to
each data point. The chart is made up of a series of vertical lines that represent each data
point. This vertical line represents the high and low for the trading period, along with the
closing price. The close and open are represented on the vertical line by a horizontal dash.
The opening price on a bar chart is illustrated by the dash that is located on the left side of the
vertical bar. Conversely, the close is represented by the dash on the right. Generally, if the
left dash (open) is lower than the right dash (close) then the bar will be shaded black,
representing an up period for the stock, which means it has gained value. A bar that is colored
red signals that the stock has gone down in value over that period. When this is the case, the
dash on the right (close) is lower than the dash on the left (open).

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Candlestick Charts
The candlestick chart is similar to a bar chart, but it differs in the way that it is visually
constructed. Similar to the bar chart, the candlestick also has a thin vertical line showing the
period's trading range. The difference comes in the formation of a wide bar on the vertical
line, which illustrates the difference between the open and close. And, like bar charts,
candlesticks also rely heavily on the use of colors to explain what has happened during the
trading period. A major problem with the candlestick color configuration, however, is that
different sites use different standards; therefore, it is important to understand the candlestick
configuration used at the chart site you are working with. There are two color constructs for
days up and one for days that the price falls. When the price of the stock is up and closes
above the opening trade, the candlestick will usually be white or clear. If the stock has traded
down for the period, then the candlestick will usually be red or black, depending on the site.
If the stock's price has closed above the previous day’s close but below the day's open, the
candlestick will be black or filled with the color that is used to indicate an up day

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Point and Figure Charts
The point and figure chart is not well known or used by the average investor but it has had a
long history of use dating back to the first technical traders. This type of chart reflects price
movements and is not as concerned about time and volume in the formulation of the points.
The point and figure chart removes the noise, or insignificant price movements, in the stock,
which can distort traders' views of the price trends. These types of charts also try to neutralize
the skewing effect that time has on chart analysis.
When first looking at a point and figure chart, you will notice a series of Xs and Os. The Xs
represent upward price trends and the Os represent downward price trends. There are also
numbers and letters in the chart; these represent months, and give investors an idea of the
date. Each box on the chart represents the price scale, which adjusts depending on the price of
the stock: the higher the stock's price the more each box represents. On most charts where the
price is between $20 and $100, a box represents $1, or 1 point for the stock. The other critical
point of a point and figure chart is the reversal criteria. This is usually set at three but it can
also be set according to the chartist's discretion. The reversal criteria set how much the price
has to move away from the high or low in the price trend to create a new trend or, in other
words, how much the price has to move in order for a column of Xs to become a column of
Os, or vice versa. When the price trend has moved from one trend to another, it shifts to the
right, signaling a trend change
Conclusion
Charts are one of the most fundamental aspects of technical analysis. It is important that you
clearly understand what is being shown on a chart and the information that it provides. Now
that we have an idea of how charts are constructed, we can move on to the different types of
chart patterns.

26
Indicators & Oscillators
There are two main types of indicators: leading and lagging. A leading indicator precedes
price movements, giving them a predictive quality, while a lagging indicator is a
confirmation tool because it follows price movement. A leading indicator is thought to be the
strongest during periods of sideways or non-trending trading ranges, while the lagging
indicators are still useful during trending periods.
There are also two types of indicator constructions: those that fall in a bounded range and
those that do not. The ones that are bound within a range are called oscillators - these are the
most common type of indicators. Oscillator indicators have a range, for example between
zero and 100, and signal periods where the security is overbought (near 100) or oversold
(near zero). Non-bounded indicators still form buy and sell signals along with displaying
strength or weakness, but they vary in the way they do this.
The two main ways that indicators are used to form buy and sell signals in technical analysis
is through crossovers and divergence. Crossovers are the most popular and are reflected when
either the price moves through the moving average, or when two different moving averages
cross over each other. The second way indicators are used is through divergence, which
happens when the direction of the price trend and the direction of the indicator trend are
moving in the opposite direction. This signals to indicator users that the direction of the price
trend is weakening.
Indicators that are used in technical analysis provide an extremely useful source of additional
information. These indicators help identify momentum, trends, volatility and various other
aspects in a security to aid in the technical analysis of trends. It is important to note that while
some traders use a single indicator solely for buy and sell signals, they are best used in
conjunction with price movement, chart patterns and other indicators.
Accumulation/Distribution Line
The accumulation /distribution line is one of the more popular volume indicators that
measures money flows in a security. This indicator attempts to measure the ratio of buying to
selling by comparing the price movement of a period to the volume of that period.
Calculated: = ((Close - Low) - (High - Close)) / (High - Low) * Period's Volume
Aroon Oscillator
An expansion of the Aroon is the Aroon oscillator, which simply plots the difference between
the Aroon up and down lines by subtracting the two lines. This line is then plotted between a
range of -100 and 100. The centerline at zero in the oscillator is considered to be a major
signal line determining the trend. The higher the value of the oscillator from the centerline
point, the more upward strength there is in the security; the lower the oscillator's value is
from the centerline, the more downward pressure. A trend reversal is signaled when the
oscillator crosses through the centerline. For example, when the oscillator goes from positive
to negative, a downward trend is confirmed. Divergence is also used in the oscillator to

27
predict trend reversals. A reversal warning is formed when the oscillator and the price trend
are moving in an opposite direction.
The Aroon lines and Aroon oscillators are fairly simple concepts to understand but yield
powerful information about trends. This is another great indicator to add to any technical
trader's arsenal.
Moving Average Convergence
The moving average convergence divergence (MACD) is one of the most well known and
used indicators in technical analysis. This indicator is comprised of two exponential moving
averages, which help to measure momentum in the security. The MACD is simply the
difference between these two moving averages plotted against a centerline. The centerline is
the point at which the two moving averages are equal. Along with the MACD and the
centerline, an exponential moving average of the MACD itself is plotted on the chart. The
idea behind this momentum indicator is to measure short-term momentum compared to
longer term momentum to help signal the current direction of momentum.
MACD= shorter term moving average - longer term moving average
When the MACD is positive, it signals that the shorter term moving average is above the
longer term moving average and suggests upward momentum. The opposite holds true
when the MACD is negative - this signals that the shorter term is below the longer and
suggest downward momentum. When the MACD line crosses over the centerline, it signals
a crossing in the moving averages. The most common moving average values used in the
calculation are the 26-day and 12-day exponential moving averages. The signal line is
commonly created by using a nine-day exponential moving average of the MACD values.
These values can be adjusted to meet the needs of the technician and the security. For more
volatile securities, shorter term averages are used while less volatile securities should have
longer averages.
Another aspect to the MACD indicator that is often found on charts is the MACD histogram.
The histogram is plotted on the centerline and represented by bars. Each bar is the
difference between the MACD and the signal line or, in most cases, the nine-day
exponential moving average. The higher the bars are in either direction, the more
momentum behind the direction in which the bars point.

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GENERAL INFORMATION
2(a)
HISTORY OF STOCK MARKET
1850 – Shares of banks and securities of east India Company traded in Mumbai under a
sprawling banyan tree in front of town hall, which is now in the Hanuman Circle Park.
1875 – Brokers organized an association known as the native share brokers association, and
the country’s first stock exchange the Bombay Stock Exchange (BSE), set up in Mumbai
with 318 members. The membership fee gradually increased from Re1 in 1887 to Rs1,000 in
1896, and Rs 48,000 in 1920.
1956 – Securities Contract Regulation Act passed.
1957 – The BSE and eight other stock exchange registered under the Securities Trading
Contract Act.
1982 – The BSE classifies scripts into group A for carry forward, and group B for cash
transaction.
1986 – The BSE 30 – Share Sensitivity Index (a.k.a. the Sensex) compiled; updated every
two minutes.
1987 – Stock Holding Corporation of India set up.
1992 – Ordinance promulgated for granting statutory powers to the SEBI. The Over the
Counter Exchange of India begins operations. The National Stock Exchange incorporated.
1994 – The NSE’s debt segment begins operation on June 30; and the capital market segment
begins online script less trading on November 3.
1995 – the BSE computerizes its trading operation , signaling the end of 120 years of floor
trading with open outcry system of share trading and the beginning of screen – based trading
on the BSE.
1996 – NSE 50 index launched April 22. NSDL set up as the first depositary in India, and the
NSE commences trading in dematerialized securities on December 26.
2000 – The SEBI approves the reports on net trading brought out by the SEBI committee on
net based trading and services. Pursuant to the circular , stock exchanges are require to give
permission to members to start net based trading after ensuring fulfillment of the minimum
condition

29
INTRODUCTION OF STOCK MARKET
Stock market
A stock market is a public market for the trading of company stock and derivatives at an
agreed price these are securities listed on a stock exchange as well as those only traded
privately. The stock market is one of the most important sources for companies to raise
money. This allows businesses to be publicly traded, or raise additional capital for expansion
by selling shares of ownership of the company in a public market.
The size of the world stock market was estimated at about $36.6 trillion US at the beginning
of October 2008. The total world derivatives market has been estimated at about $791 trillion
face or nominal value, 11 times the size of the entire world economy.
Stock exchanges are the perfect type of market for securities whether of government and
semi-govt bodies or other public bodies as also for shares and debentures issued by the joint-
stock companies. In the stock market, purchases and sales of shares are affected in conditions
of free competition. Government securities are traded outside the trading ring in the form of
over the counter sales or purchase. The bargains that are struck in the trading ring by the
members of the stock exchanges at the fairest prices determined by the basic laws of supply
and demand.
DEFINITION OF STOCK EXCHANGE:-
“Stock exchange means anybody or individuals whether incorporated or not, constituted for
the purpose of assisting, regulating or controlling the business of buying, selling or dealing in
securities.”
The securities include:
• Shares of public company.
• Government securities.
• Bonds
Functions of Stock Exchanges:
Stock exchanges provide liquidity to the listed companies. By giving quotations to
the listed companies, they help trading and raise funds from the market. Over the
Hundred and twenty years during which the stock exchanges have existed in the
Country and through their medium, the central and state government have raised
Corers of Rupees by floating public loans. Municipal corporations, trust and local
Bodies have obtained from the public their financial requirements, and industry, trade
And commerce- the backbone of the country’s economy-have secured capital of
crores or rupees through the issue of stocks, shares and debentures for financing
Their day-to-day activities, organizing new ventures and completing projects of
Expansion, diversification and modernization. By obtaining the listing and trading
Facilities, public investment is increased and companies were able to raise more
funds. The quoted companies with wide public interest have enjoyed some benefits
and assets valuation has become easier for tax and other purposes

30
MAJOR STOCK EXCHANGE IN THE WORLD:
• New York Stock Exchange (NYSE- USA)
• Toronto Stock Exchange (Canada)
• London Stock Exchange (England)
• Singapore Stock Exchange(Singapore)
• Tokyo Stock Exchange (Tokyo)
• Hong Kong Stock Exchange (honkong)
• Bombay Stock Exchange (BSE- India)
Stock markets in India
Stock exchanges are the perfect type of market for securities whether of government
And semi-govt bodies or other public bodies as also for shares and debentures issued
By the joint-stock companies. In the stock market, purchases and sales of shares are
Affected in conditions of free competition. Government securities are traded outside the
Trading ring in the form of over the counter sales or purchase. The bargains that are
Struck in the trading ring by the members of the stock exchanges are at the fairest
Prices determined by the basic laws of supply and demand.
THERE ARE SOME STOCKS EXCHANGE IN INDIA WHICH ARE AS FOLLOWS:
1. Bombay Stock Exchange of India (BSE)
2. National Stock Exchange of India (NSE)
3. Madras Stock Exchange (MSE)
4. Coimbatore Stock Exchange (CSX)
5. Ahmedabad Stock Exchange (ASE)
6. Bhubaneshwar Stock Exchange (BhSE)
7. Cochin Stock Exchange (CSE)
8. Hyderabad Stock Exchange (HSE)
9. Calcutta Stock Exchange (CSE)
10. Delhi Stock Exchange (DSE)
11. Bangalore Stock Exchange (BgSE)
12. Madhya Pradesh Stock Exchange, Indore
13. Jaipur Stock Exchange (JSE)
14. Magadh Stock Exchange, Patna
15. UP Stock Exchange (UPSE)
16. Vadodara Stock Exchange,Vadodara (VSE)
17. Guwahati Stock Exchange Ltd
18. Ludhiana Stock Exchange Association LtdKanara Stock Exchange Ltd
19. Mangalore Stock Exchange Ltd
20. Pune Stock Exchange Ltd
21. Saurashtra Kutch Stock Exchange Ltd

31
22. Meerut Stock Exchange Ltd
23. Intrex Trade Exchange Ltd
24. United Stock Exchange of India
25. Mahurat trading
INTRODUCTION:
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875
as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even
older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-
profit making Association of Persons (AOP) and is currently engaged in the process of
converting itself into demutualised and corporate entity. It has evolved over the years into its
present status as the premier Stock Exchange in the country. It is the first Stock Exchange in
the Country to have obtained permanent
recognition in 1956 from the Govt. of India
under the Securities Contracts (Regulation) Act,
1956.
The Exchange, while providing an
efficient and transparent market for trading in
securities, debt and derivatives upholds the
interests of the investors and ensures redresses
of their grievances whether against the
companies or its own member-brokers. It also strives to educate and enlighten the investors
by conducting investor education programmers and making available to them necessary
informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies and
regulates the affairs of the Exchange. The Governing Board consists of nine elected directors,
who are from the broking community (one third of them retire ever year by rotation), three
SEBI nominees, six public representatives and an Executive Director & Chief Executive
Officer (CEO) & a Chief Operating Officer (COO).
Session Timing
Beginning of the Day Session 8:30 - 9:00
Pre-open trading session 9:00 - 9:15
Trading Session 9:15 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Option Exercise Session 16:05 -

32
The Executive Director as the Chief Executive Officer is responsible for the day-to-day
administration of the Exchange and the Chief Operating Officer and other Heads of
Departments assist him.
The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to
constitution of the Executive Committee of the Exchange. Accordingly, an Executive
Committee, consisting of three elected directors, three SEBI nominees or public
representatives, Executive Director & CEO and Chief Operating Officer has been constituted.
The Committee considers judicial & quasi matters in which the Governing Board has powers
as an Appellate Authority, matters regarding annulment of transactions, admission,
continuance and suspension of member-brokers, declaration of a member-broker as defaulter,
norms, procedures and other matters relating to arbitration, fees, deposits, margins and other
monies payable by the member-brokers to the Exchange, etc.
The Organization
The National Stock Exchange (NSE) of India Limited has genesis in the report of the High
Powered Study Group on Establishment of New Stock Exchanges, which recommended
promotion of a National Stock Exchange by financial institutions (FIs) to provide access to
investors from all across the country on an equal footing. Based on the recommendations,
NSE was promoted by leading Financial Institutions at the behest of the Government of India
and was incorporated in November 1992 as a tax-paying company unlike other stock
exchanges in the country.
On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956
in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment
in June 1994. The Capital Market (Equities) segment commenced operations in November
1994 and operations in Derivatives segment commenced in June 2000.
NSE's mission is setting the agenda for change in the securities markets in India. The NSE
was set-up with the main objectives of:
 Establishing a nation-wide trading facility for equities, debt instruments and hybrids,
 Ensuring equal access to investors all over the country through an appropriate communication
network,
 Providing a fair, efficient and transparent securities market to investors using electronic
trading systems,
 Enabling shorter settlement cycles and book entry settlements systems, and
 Meeting the current international standards of securities markets.

33
The standards set by NSE in terms of market practices and technology has become
industry benchmarks and is being emulated by other market participants. NSE is more than a
mere market facilitator. It's that force which is guiding the industry towards new horizons and
greater opportunities.
2(c)STOCK BROKERS IN INDIA :
1) Angel broking
2) Icici direct
3) Motilal oswal
4) Sharekhan
5) Hdfc security
6) Kotak securities
7) Reliance money
8) India bull
9) 5paisa.com
10) Marwadi
11) jk securities
12) bajaj capital
13) Religare

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(3) INTRODUCTION OF SHAREKHAN LIMITED
Introduction to Sharekhan
Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities
solutions company with over 8 decades of experience in the Indian stock markets
Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.
Share khan’s expertise lies in stocks and that’s what he talks about with authority. So when
he says that investing in stocks should not be confused with trading in stocks or a portfolio-
based strategy is better than betting on a single horse, it is something that is spoken with
years of focused learning and experience in the stock markets. And these beliefs are reflected
in everything Sharekhan does for you!
To sum up, Sharekhan brings to a user-friendly online trading facility, coupled with a
wealth of content that will help you stalk the right shares.
Those of you who 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 Sharekhan offers you
the facility to visit (or talk to) any of our share shops across the country. In fact Sharekhan
runs India’s largest chain of share shops with over hundred outlets in more than 80 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 Sharekhan. In other words Sharekhan
is a company that provides you an outstanding trading facility with a wide variety of products
and acts as an investment consultant to manage your portfolio and secure a high rate of return
on your investments in the securities market.
Basically, the company is a market leader in providing broking services and has a top
turnover in trading and the high turnover makes it the no. 1 in the market.
The main difference is the services that they provide to the investors who really need it. the
services are discussed in more detail in the marketing activities. The clients are managed with
a friendly corporate culture to give him more benefited investment ideas and motivate him
whenever he needs. The company is providing as many tips to the clients for more and more
trading ideas and the manager helps each client to concentrate on a few scripts so that he can
manage the profit/lose.
In short, Sharekhan is currently having a good position in the market with the highest no of
transactions and also the highest turnover (buying & selling) in India and a leader in

35
providing better services to the investors. Sharekhan, India’s leading stock broker is the retail
arm of SSKI, and offers you depository services and trade execution facilities for equities,
derivatives and commodities backed with investment advice tempered by decades of broking
experience. A research and analysis team is constantly working to track performance and
trends. That’s why Sharekhan has the trading products which are having one of the highest
success rate in the industry. Sharekhan is having 180 share shops in 90 cities, the largest
chain of retail share shops in India is of Sharekhan.
Company profile
 Name of the company: Sharekhan ltd
 Year of establishment: 1922
 Headquarter: Sharekhan sski a 206 phoenx house phenoix mills compound lower parel ,
Mumbai Maharashtra ,India
 Nature of business : service provider
 Service : depository service
Online service and
Technical research
 No. of employees : over 4000
 website : www.sharekhan.com
 slogan : your guide to the financial jungle
AWARDS AND ACHIEVEMENTS
1. A wired companies along with Reliance, Hll, Infosys, etc by ‘Business Today’, January 2004
edition.
2. It was awarded ‘Top Domestic Brokerage House’ four times by Euro and Asia money.
3. It was Winner of “Best Financial Website” award.
4. India’s most preferred brokers within 5 years. “ Awaaz customers Award 2005”.
MissionStatement
1. To provide the best Customer Service and Product Innovation tuned to diverse needs of
individual and corporate clientele.
2. Continuous up-gradation with changing technology, while maintaining human values.
3. Respond to progressive globalization and achieving international standards.
4. Efficiency and effectiveness built on ethical practices.
vision
1. Customer Satisfaction through
a. Providing quality service effectively and efficiently
b. “Smile, it enhances customer face value” is a service quality stressed on
c. Periodic Customer Service Audits

36
2. Maximization of Stakeholder value
3. Success through Teamwork, Integrity and People
SHAREKHAN LIMITED’S MANAGEMENT TEAM
DIRECTORS:
MR. TARUN SHAH CEO- SHARE KHAN
MR SHANKAR VAILAYA- DIRECTOR (OPERATION) OF
THE CO
MPANY
MR. JAIDEEP ARORA– DIRECTOR (PRODUCT &
TECHNOLOGY) OF THE COMPANY
OTHER DIRECTORS:
• Mr. Baldev L Boolani
• Mrs. Meena S Jain
• Mr. Bhupendra T Shah
• Mr. Hasmukh Sheth

37
HIERARCHY IN SHAREKHAN:
Sales Side Dealing Side
• Trainees • Junior Dealer
• Super Trainees • Dealer
• Sales Executives • Relationship manager
• Senior sales executives • Senior Relationship manager
• Business development executive • Equity advisor
• Assistant sales manager • Assistant Branch Manager
• Deputy manager • Branch Manager
• Territory manager • Cluster Head
• Area sales manager/ Cluster manager • Directors
• Regional sales manager • CEO
• Regional Head
• Vice president
• Directors
• CEO

39
The main aim or marketing activities at Sharekhan is that the customer should get enough
guidance to join the company and how he can get the best service than any other stockbroker.
There is an officer for handling the marketing activities followed by two executives and it is
not limited to them but the other people are also having some responsibilities to increase the
no. of clients and retain them by providing them the services needed by them.
DEMAT ACCOUNT
i. The term demat account account refer to a dematerialized account
ii. The security exchange board of india
iii. Share and securities are held in electronic form instead of taking actual possession certificate
iv. Purchase and sale of securities on the demat account are automatically made once transaction
are executed and completed
PROCESS OF ACCOUNT OPPENING
LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES
CONTACT
TELEPHONE AND PRESONAL VISIT
APPOINTMENT
DEMONSTRATION
AGREE DISAGREE (CLOSE)
DOCUMANTATION
FILLING THE FORM
SUBMISSION THE FORM
LOGIN OF THE FORM
SENDING THE ACCOUNT OPENING KIT TO THE CUSTOMER FOR TRADING
As identity, proof &address proof produce the following things:
 Voter ID card
 Driving license
 PAN card( in case of to trade more than 50000)
 Ration card
 Bank pass book
 Telephone bill

40
PRODUCT&SERVICE OF SHAREKHAN
There are many services those are designed such that the specific target segments of the
customers are covered and the products are positioned in the minds of customers as the best
one in India. The services are as given below:
Sharekhan is India’s leading national network of stock-broking outlets. It is having the largest
retail distribution chain in India. Sharekhan is not only a share-broking firm, but it avails of
various services and other financial products to its clients.
1. Offline Trading facility
2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and NEAT, i.e.
National Exchange Automated Trading)
3. Free access to investment advice from Share khan’s Research team.
4. Depository services: Demat and Remat transactions (Sharekhan is registered with NSDL, i.e.
National Securities Depository Ltd., as a Depository Participant)
5. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
6. Internet based online trading.
7. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc
Online BSE and NSE Trading
Sharkhan is a registered Stock Broker with the Bombay Stock Exchange and National
Stock Exchange to trade on behalf of clients. The screen-based trading is done on BOLT-
BSE Online Trading and NEAT – National Exchange Automated Trading, terminals. There
are two types of transactions executed on these terminals viz.
i) intra-day transactions
ii) Delivery based transactions.
Intraday transactions are those, in which the squaring up of deal is done on the same day,
while in delivery based transaction the squaring up of deal is done on the same day The
Brokerage of Intraday transaction is 0.10% single side.
In delivery based transaction the squaring up is not done on the same day, but the stock is to
be traded on the basis of rolling settlement i.e. T+2 while brokerage on delivery based
transactions is 0.50% on both side, i.e. while purchasing as well as selling.
Free Access to Investment Advice through R&D
The Research and Development at Sharekhan is done at its Head office Mumbai.
From there it forwards the relevant data and tips on particular shares and scripts at the
relevant time. The R&D department Head Mr. Hemang Jani forwards all the details regarding
all stocks and scripts to all the branches through internet. At the end of each trading day there
is a Teleconference, 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 days opening position. The quarries regarding stock positions and
other relevant matter of the branch heads of each branch is being solved through
teleconference. The various publications of Sharekhan viz. Commodities Buzz, Commodities
Beat, Commodity Trader’s corner, Sharekhan Exclusive, etc. are being prepared by the
research team of Sharekhan made up of highly experienced people from diverse field.

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Depository Participation
Sharekhan is a registered Depository Participant (DP) with National Securities Depository
Ltd. (NSDL). The participants are required to enter into an agreement with beneficial owners.
It is required that separate accounts shall be opened by every participant in the name of each
of the beneficial owner and the securities of each beneficial owner shall be segregated and
shall not be mixed up with the securities of other beneficial owners or with the participant’s
own securities. The participants are obliged to reconcile the records with every depository on
a daily basis. Participants are required to maintain the following records for a period of five
years.
a. Records of all the transactions entered into with a depository and with a beneficial owner;
b. Details of security dematerialized, rematerialized on behalf of beneficial owners with whom
it has entered into an agreement;
c. Records of instructions received from beneficial owners and statements of account provided
to beneficial owners; and
Record of approval, notice, entry and cancellation of pledge or hypothecation as the case may
be.
DEPOSITORY ISSUER/R&T
AGENT
CLEARING
CORPORATION
CLEARING
MEMBER
DEPOSITORY
PARTICIPANT
TOCK EXCHANGE TRADING
MEMBER
INVESTOR

42
Products offered by Sharekhan Pvt. Ltd
1. Derivative Trading on BSE and NSE.
2. Commodities Trading.
3. IPO Services.
4. Internet Based Online Trading
5. Portfolio Management Services
6. Future option
1) Derivatives Trading
Sharekhan is a Trading Member registered with the Stock Exchange, according to the norms
and Guidelines given by the SEBI. Two types of users access the NEAT F&O trading system.
The Trading Members and the Clearing Members. The Trading Members (TM) has access to
functions such as, order matching, order and trade management. The Clearing Member (CM)
uses the trader workstation for the purpose of monitoring the trading member(s) for whom he
clears the trades. Additionally, he can enter and set limits to position, which a trading
member can take. Sharekhan provides the service of derivatives trading on NEAT F&O to its
clients.
2) Commodities Trading:
Sharekhan is providing the facility to trade with the commodities through MCX (Multi-
Commodity Exchange) and NCDEX (National Commodities & Derivatives Exchange).
The commodities market in India is an emerging market, which will become the largest
market in the world within the next 5 years, as the trends in the commodities market shows its
performance. The company also provides research reports on daily, weekly and monthly basis
for the investors in the commodities. It is just like the futures and is having a fixed lot of
goods with the margin for each commodity and the trading is based on the theory of futures
and therefore, it is also called Veda Market. In short Sharekhan also provides brokering in
commodities and the brokerage charges are 0.10% on total trade value and if carry forwarded
an additional 0.02% charge on total trade.
3)Online IPO: Online IPO (Initial Public Offering) is a new service started by Sharekhan
for providing the application form of any company’s issues of just like the TCS issue can be
subscribed by filling an online form to reduce the paper work and the fund transfer facility is
also provided to the clients for transferring the funds online. It is given on its web-site for
helping the clients who are not able to collect the forms manually and the speed of filling and
reducing the risk of misplacing of forms, not reaching in time, etc.
5) PORTFOLIO MANAGEMENT:
SSKI follow a multi disciplined approach incorporating quantitative analysis (use of models
and statistical analysis), fundamental analysis (industry and company analysis, market and
economic trends) and technical analysis (buying and selling patterns of stocks). The common
attributes that can be found across all our equity portfolios are:
I. High-quality securities
II. Holdings widely diversified among industry sectors
III. Stocks with adequate market capitalizations and free float Stock concentration as per client
risk profile but generally to be kept at manageable levels.
IV. SSKI investment process involves three distinct steps:

43
V. Screening
VI. Research
VII. Model portfolio construction.
4) Internet BasedOnline Trading
The Online trading facilities provided by Sharekhan is basically divided into two
types of accounts, viz. Classic Account and Speed Trade and Speed Trade Plus.
(1) Classic Account:
This account allows the client to trade through the website and is suitable for the retail
investor. The online trading through Sharekhan website also comes with Dial-n-Trade service
that enables you to buy and sell shares by calling our dedicated toll-free number.
(2) Speed Trade and SpeedTradePlus:
SPEEDTRADE is a next-generation online trading product that brings the power of
broker’s terminal to the client’s PC. Through SPEETTRADE PLUS the client is also allowed
to trade on Derivatives.
 The various benefits the client gets form the online trading are:
I. Freedom from Paperwork: Integrated trading, bank and demat account (auto pay-in and
pay-out of securities) with digital contracts removes all paperwork.
II. Instant Credit and Transfer: Instant transfer of funds from bank accounts of client’s
choice to his/her Sharekhan trading account.
III. Trade Anywhere: Enjoy the ease of trading from any part of the world in a completely
secure environment.
IV. Dial n Trade: Call Sharekhan on a toll free number to place orders through sharekhan’s
tele-brokers.
V. Timely Advice: Make informed decisions with expert advice, investment calls and live
market commentary.
VI. Real-Time Portfolio Tracking: Benefit from real-time information of your investment
and current portfolio value.
VII. After-Hour Orders: The Client can place orders after the market hours, which get
executed as soon as markets open.

44
5)FUTURE OPTION :. Future represent a contract note between a buyer and seller
on a specific quantity of financial instrument like currency, stock market index, or even a
commodity ,at a specific price with a defined delivery or settlement period .future are traded
in “lots” of underlying assets like stocks buying a contract is known as long position and
selling a contract is called a short position . Future contract have two type of settlement , one
is a physical delivery and the other one is settling in cash . Physical delivery part may be
exercised in a commodity future contract .last day Thursday of the month is due date for
delivery or settlement of all f&o contracts.
However there is no need to wait till the last day of the
settlement of the future contract the contract can be squared off even before the expiry date
In f&o segment, both the buyer and seller face equal risk .so we can say that the risk
factor is symmetrical .the operators or investor of f&o segment can be classified as hedgers
who have position in long run and short in f&o segment, so that any market fluctuation will
not affect them. Speculators- risk savvy people, who speculate and take their position in f&o
and the leave the rest to the market. The speculator gets in to highest degree of exposure to
risks, same time speculator make big profit, if the market condition is in favour to them.
Third category is known as arbitrageur operates in various markets simultaneously to protect
their interest, they may be taking a short position in f&o and long position in cash segment.
F&o trading is also known as. The major difference between equity trading and
derivative trading is in derivative case of future, the short position can be carried forward
until the expiry of the contract, were as in cash segment the short positions have to be squared
on the same day, falling which the investor has to pay the penalty charges f&o segment is
actively traded by the foreign institutional investor and the turnover is 4 times higher than
cash segment
SERVICE (Product)
Service is an act or performance that one party offers to another for sell and it is not a
physical product that you can touch but it is that one can feel. It is not likely to result into the
ownership of anything. A service can be a fully service or a mixture of service and physical
product.
The trading products of Sharekhan are such a mixture of services like DP service
(managing the demat account), providing reports for investment advice etc. and thus we can
define its service mix as a hybrid product mix of different physical products with
accompanying services.
Therefore, the two types of accounts offered by Sharekhan i.e., Offline and Online are
the two main product lines in the product mix of the company. The offline a/c with
Sharekhan is defined as the account having which you can trade anywhere in the share shop
of Sharekhan and the online a/c is that you can trade on your PC through the software
provided by Sharekhan and it also offers tele-trading in both the cases but the major
difference is of the service and prices for opening an account. The product mix is as shown
below:

45
Services provided by Sharekhan
• Online Services
• Offline Services
• Depository Services
• Equity and Derivatives Trading
• Fundamental Research
• Technical Research
• Portfolio Management
• Commodities Trading
• Dial-n-trade
• Share shops
Online services
• Mutual Funds
• Commodity Futures
• PMS
• Technical PMS
• Demat Services
• Share shops
•

46
Offline Services:
• Trading with the help of Dealer
• Trading without credit
• By calling to the Share shops
• Credit facility (Only in Delivery-based)
• T+2 facility
• Special website for Offline Clients: www.mysharekhan.com
• Physical contract notes
Dial’n’Trade:-
You can now use our ‘Dial’n’Trade’ back up option. Sharekhan team will help you
place a trade after a security check right over the phone! Your account statement will get
updated with this information automatically. This service is available both in Hindi and
English. You can even use this service to place After-Market Hour Orders.
FEATURES OF Dial’n’Trade:-
 Dedicated Toll-Free number for order placements.
 Automatic fund transfer with phone banking.
 Simple and secure IVR based system for authentication.
 No waiting time. Enter your TPIN to be transferred to our telebrokers.
 Trusted, professional advice from our telebrokers.
 After-hours order placement facility between 8 am & 9:30 am.
 Reliable services wherever you are.
INVESTMENT IDEAS:-
For investment, the application of the bottom-up approach of investing
with a dear focus on stock picking has resulted in investment ideas that have withstood the
storm to deliver returns to patient investors. Effective money management with appropriate
risk rewards, the relentless use of stop losses, and our clear-cut focus on the importance of
timing the market accurately has contributed to this success. Sharekhan investment
philosophy is “given the clients risk profile, maximize performance by adhering to a
disciplined investment approach backed by quality research”.
Key elements of our investment philosophy and approach are:
 Bottom-up stock selection.
 In-depth, independent fundamental research.
 Selecting high-quality companies with sustainable competitive advantages.
 Disciplined valuation approach applying multiple valuation measures.
 Long-term vision, resulting in low portfolio turnover

47
CHARGE STRUCTURE
1)- PRE PAID OR AMC A/C: -
• Advance Amount which will be fully adjsted against your brokerage you paid in One year.
Following Schemes Are Available: - Brokerage will be chagred -
1) - 750/- Scheme:- 0.05 / 0.50 %
2) - 1000/- Scheme 0.045 / 0.45 %
3) – 2,000/- Scheme: - 0.035 / 0.40 %
4) – 6,000/- Scheme: - 0.025 / 0.25 %
5) – 18,000/- Scheme: - 0.020 / 0.20 %
6) – 30,000/- Scheme: - 0.015 / 0.18 %
7) – 60,000/- Scheme: - 0.010 / 0.15 %
8) – 1, 00,000/- Scheme: - 0.0075 / 0.10 %
Minimum Margine of Rs. 10000/- is Required for Account Opening.
Annual Maintenance Charges will NIL for 1st year and Rs. 400/- from 2nd year.
- EXPOSURE: 4 TIMES (ON MARGINE MONEY)
- EXPOSURE: 10 TIMES (ON MAX TRADING)
- ONLINE IPO'S AND MUTUAL FUNDS ADVISORY IS AVAILABLE.
We are having tie-up with Eleven banks for online fund transfering i.e. HDFC, ICICI,
IDBI, CITI, Union Bank of India, Oriental Bank of Commerce, INDUSIND, AXIS,
Centurion Bank of Punjab, Bank of India and Yes Bank.
Company Provide 4-6 E-mail to there customers per day.
Online Trade in Share
Sharekhan customers can online trade through there computers, through internet during the
market timings.
Online Fund Transfer
We have tie up with Eleven Banks for online fund transferring i.e. HDFC, IDBI, CITI, UBI,
OBC, INDSLANDAND and UTI BANK, Yes bank, Bank of India for Online Money
Transfer.
• Research based investment advice
• Investment and trading services
• Trading and seminars
• Technology based investment tools
• Integrated demat facility
• CUSTOMER CAN TRADE IN
• Equities
• Derivatives
• Commodities

48
• Promotion
• Promotional activities at Sharekhan are done by web, e-mails and personal contact.
Sharekhan is also organizing seminars and presentations and promotes its services to the
clients.
As explained earlier, Sharekhan is having the largest distribution chain of retail outlets of
share shops. And it can be seen also because there are 180 share shops in 90 cities, which
gives the maximum awareness to Sharekhan. The distribution of Sharekhan is also proved by
its turnover and awareness among the investors in the stock market
• Promotion
• Promotional activities at Sharekhan are done by web, e-mails and personal contact.
Sharekhan is also organizing seminars and presentations and promotes its services to the
clients.
The given flow chart clearly explains the process of online trading

49
Login
Buy transcation Sell transcation
The system will check buying
limits
The system will check your
dp account quantity
Orders accepted Rejected orders would be
communicated along with reasons
orders accepted
contract note would
be sent to by mail
or hand delivery
flashed on your
screen immediately
on execution
conformationcoul
d be send to your
e-mail and mobile
you may edit your
pending order
you may delete your
pending order
your order is transmitted to exchange for execution
pending sell orders
would be displayed
on your screen
pending buy orders
would be displayed
on your screen
on execution
of your orders
you may edit your
pending order
you may delete
your pending order
STEP BY STEP PROCEDURE IN ONLINE TRADING:-
Following steps explain the step by step approach to on-line trading:
Log on to the stock broker's website
Register as client/investor
Fill the application form and client broker agreement form on the requisite value stamp
paper
Obtain user ID and pass word
Log on to the broker's site using secure user ID and password

50
Market watch page will show real time on-line market data
Trade shares directly yourself by entering the symbol or number of the security
Brokers server will check your limit in the on-line accountant Demat account for the number
of shares and execute the trade
Order is executed instantly (10-30 seconds) and confirmation can be obtained.
Confirmation is e-mailed to investor by broker
Contract note is printed and mailed in 24 hours
Settlement will take place automatically on the settlement day
Demat account and the bank account will get debited and credited by electronic means

51
Like blood is the most important factor in our body, Finance is the blood of any business.
Finance is needed for all the activities like production or services as well as their distribution.
The finance department directly influences all the functions of the other departments. Also
finance has to give equal importance to all departments. Finance is that administrative area or
set of administrative function in an organization may have the means to carry out its objective
as satisfactorily as possible. Sharekhan has special accounts department for separate
calculation of pay-in and pay-out of funds according to the client’s Proft/Loss. Finance
management is done at Sharekhan is done by managing the stocks in the demat accounts and
funds in the margin & trading accounts
Finance is the lifeblood of an organization to continue its activities and the finance
management at Sharekhan can be divided into two major parts viz. DP (Depository
Participation) and Accounts management, which are shown in the figure given above.
DP means providing the facility to the clients for managing the stock bought/sold by them.
DP covers two major terminologies viz. settlements and the auctions which is a part of
managing demat account. Settlements as defined by SEBI are T+2, currently and it means
that the demat account of the clients are prone to be sufficient for selling a script with no
debit at all, i.e., the account must have the sold amount of stock to fulfill the settlement after
2 days from trade-day. Generally, the timings are 9:30 and 3:30 as a deadline for the client
and he must provide the stock for giving a delivery to the buyer. The chart shows the total
transaction between two clients:
The chart shows the process that the request for selling and buying passes through the DPs of
the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock
Exchange) becomes the controlling intermediary for the delivery of stocks and this process is
done in two days. Nowadays, as banks are becoming fast
for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking
to make the financial market of India to have a maximum speed of transactions just like the
other nations in the world and proposing for T+1 settlement scheme but the system is not
enough competent for that thing. But soon or later we will have such a settlement system in
India, as said by Mr. J. N. Bajpai, chairman of SEBI.
The client, if not capable of providing the delivery of say, 1000 shares of SAIL then the
Auctions are initiated by the exchanges and the client has to pay for the price prevailing in
DP Accounts
C DP (Sharekhan) E DP (anyone) C
Finance
Dp Accounts

52
the market with 4-5% penalty. The penalty can go on maximum to 20% more than the market
price of the sold stock. Generally, it is known as a buying auction and a same kind of auction
is for selling the stock for which the buyer was proved unable to pay the price is carried out
by exchange, known as the selling auction. And a debit or credit note is provided in the
respective case of auction to the clients, i.e., for buying auction debit note is given on the T+4
basis and in case of selling auction the credit note is given on T+5 basis. There are two types
of auctions called as Internal auctions & Market auctions, the internal auctions are defines
as the auctions carried out between the other shops of Sharekhan and market auctions are
those as explained earlier, the auction carried out in the market.
This is all about settlements but now switch to funds management or accounts management at
Sharekhan. The accounts are different that is the margin a/c for deposits of the client and
trading a/c for which Profit/Loss are settled. The collection of funds from the clients who had
a debit balance or made a loss are made on the next day of trading and the payments to the
profiting traders are made after two days of trading because the cheques are received from
H/O and then pay-out is done and Pay-in is as explained that amounts to be taken from the
clients. In this way, accounts are managed but in case if the client is unable to pay, the
deposit from the margin a/c is cut down to the payments and in case if a client is having a
credit balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a
JV request is sent to H/O for totaling the three balances. The main aim for accounts
management is that the clients must have a credit or no debit on the next day.
The DP services provided by Sharekhan are falling under the regulation of NSDL (National
Securities Depository Limited) and CDSL (Central Depository Services Limited),
organizations governed by SEBI to regulate the depository services in the interest of the
investors. So, the financial market in India is governed by Ministry of finance under which
two major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial
institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP
service providers with the brokers to the investors.
In this way we have gained a meaningful knowledge about India’s financial market and its
structure from this training at Sharekan. In this way, the finance function is carried out at
Sharekhan by following the guidelines given by SEBI. And the company is a private limited
one with its own policies for disclosing its financial statements.

54
Human resource is the crucial resource that a company can use to grow with the work of the
employees. HRM activities at Sharekhan start form induction to the specific job training and
are done by H/O at Mumbai. H/O takes a written test and selection interview for filling up
vacancies in branches but the recruitment is done by the branch itself and the selection is
performed by H/O from the screened applicants.
Any new recruit is firstly inducted to the company and sent to T & D department that is
covered under HRD and T & D programmes makes employees aware about all the
activities/jobs within the department he/she is to be recruited. Suppose if, I would be
recruited for finance department then the finance related employees are known to me with
their work profiles, that is, what they really do?
Then the specific job training is provided at H/O and the person has to keep in touch with the
concerned department at H/O on internet because he/she has t solve many conflicts arising in
the investor’s mind and to have an up-to-date information regarding the procedures and any
new facilities or policies to resolve the problems of the clients. It is a must for each employee
because the employee is the people by whom the company gets its customers and retains
them.
HRP (Human Resource Planning), HRIS (Human Resource Information System),
Recruitment & Selection, Career planning and development, Assessment & development of
employees for Performance appraisal, etc. activities of managing the HR at Sharekhan is
maintained in a way to meet the requirements.
The corporate culture at Sharekhan is maintained in such a way that the people are helpful to
each other and eager to get the work done as soon as possible with a co-operative thinking.
An additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees by
performance appraisal and also the heads of each departments and branches has to go through
a 3606 performance appraisal for maintaining the consistency in growth of the company.
In the end we can say that the human resource of Sharekhan is a best managed and used for
the continuous growth and development of the company for its future plans to be achieved
time-to-time.
Facilities provided by Company :
 Provident fund facility 12 % (12 + 12)
 Yearly BONUS
 30 days Leaves per year (18 PL + 12 CL)
 05 days medical leaves
 Incentive given to employee when employee achieve higher target, give higher brokerage to
the company
 Gift voucher
 Dearness allowance

55
 Tea allowance
 Medical allowance
 Attendance bonus
 Training in-house.
 Training at out side for specific employees.
 Get together (Lunch) programme with family in a year
SWOT ANALYSIS
During this training at Sharekhan, we had come to know the Strengths – Weaknesses –
Opportunities – Threats for the company and it is very useful for a company to analyze them.
Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths
and removing weaknesses are explained.
Strengths:
1. Well-maintained infrastructure.
2. Dedicated, Intelligent and Loyal staff.
3. On-line Trading products.
4. Lowest brokerage and other charges.
5. The best investment advice correct up to 70-90% through dedicated research and reports.
6. Wide product range to enable the clients to choose the best alternative.
7. One of the best DPs in India.
8. A positive image in the existing clients.
Weaknesses:
a. Less awareness in the market.
b. Time consuming process for account opening, resolving the problems of the customers, etc.
c. Service quality is not maintained accordingly how they are promoted.
Opportunities:
a) Large primary market to sit as a book runner for the other companies just like Kotak
Securities Ltd. that runs the books of share holdings for many companies.
a) Slope of stock market towards delivery based transactions.
b) Large potential market for delivery and intra-day transactions.
c) Open interest of the people to enter in stock market for investing.
d) Attract the customers who are dissatisfied with other brokers & DPs.
e) An indirect opportunity generated by the market from its bullishness.
f) When market condition is good than company launch new service and raise the customer
g) Market at rural and semi urban areas

56
h) As interest on fixed deposit with post office and bank are aii time low , more and more small
investor are entering into stock market
Threats:
a) Decreasing rates of brokerage in the market.
b) Increasing competition against other brokers & DPs.
c) Poor marketing activities for making the company known among the customers.
d) A threat of losing clients for any kind of weakness of the company.
e) Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s clients would
lead them to go for other broker/DP.

58
IINNTTRROODDUUCCTTIIOONN OOFF TTHHEE SSTTUUDDYY
LITRATURE REVIEW
1) Mittal M. and A. Dhade (2007) in their research paper “Gender Difference In Investment
Risk-Taking: An Empirical Study” published in The ICFAI Journal of Behavioral Finance,
2007
Observed that risk-taking involves the selection of options that might result in
negative outcomes. While present is certain, future is uncertain. Hence, all investment
involves risk. Decourt (2007) indicated that the process of making investment decisions is
based on the ‘behavioral economies’ theory which uses the fundamental aspects of the
‘Prospect Theory’ developed by Kahneman and Tversky (1979).
2) Saptarshi Purkayastha (2008) in his article “Investor Profiling and Investment Planning:
An Empirical Study” published in The Icfaian journal of Management Research, Dec 2008
concluded that
Younger investors and those with high income are willing to take more risk. According to
him people do not take much risk when the question of investment of their hard-earned
money comes
3) S. Saravana Kumar (2010) in his article “An Analysis of Investor Preference towards
Equity and Derivatives” published in The Indian journal of commerce, July-September 2010
Concluded that the most of the investor are aware of high risk involved in
the derivative market. To reduce the risk in the market, the investors should strictly follow
the stop loss method. The study reveals that most of the investor prefers cash market where
the script can be held for long term and the risk is less and it is transferable to others with
minimal time period. Even though risk is higher, some investors prefer derivative market
where return is also higher. The investors are suggested that before going for investment
proper study about the script is essential. The study has highlighted a few suggestions for
removing constrain in the crucial variables which directly affect the investor and company.
The investors are highly satisfied with equity shares because of many reasons, i.e., liquidity,
low investment, capital appreciation etc
4). Deepa Mangala and R.K.Mittal (2005) in their article, “Anomalous Price behavior – An
Evidence of Monthly effect in Indian Stock Market”, published in the Indian Journal of
Commerce, April-June, 2005,

59
concluded that the mean return for the first half of a trading month is significantly higher
than the mean returns for the second half. The increased liquidity might induce the demand
for equities resulting in the monthly effect.
5)Mittal M. and R. K. Vyas (2008) in their article “Personality Type and Investment
Choice: An Empirical Study” published in The ICFAI UNIVERSITY Journal of Behavioral
Finance, 2008.
Observed that investors have certain cognitive
and emotional weaknesses which come in the way of their investment decisions. According
to them, over the past few years, behavioral finance researchers have scientifically shown that
investors do not always act rationally. They have behavioral biases that lead to systematic
errors in the way they process information for investment decision. Many researchers have
tried to classify the investors on the basis of their relative risk taking capacity and the type of
investment they make. Empirical evidence also suggests that factors such as age, income,
education and marital status affect an individual’s investment decision.
AjmiJy.A. (2008) used a questionnaire to know determinants of risk tolerance of individual
investors and collected responses from 1500 respondents.
He concluded that the men are less risk averse than women, less educated investors are less
likely to take risk and age factor is also important in risk tolerance and also investors are
more risk tolerance than the less wealthy investors.
6)Rakeshh m International journal in management in social science
The study reveals that the respondents assimilate the objectives of saving, the factors
influencing the saving and the sources of information for decision making. The annual
income and the annual saving are given importance of consideration by the respondents,
because the level of income decides the level of savings. The investors are fully aware about
the stock market and they feel that market movements affect the investment pattern of
investors in the stock market.
7) Manoj Kumar International Journal of Education and Psychological Research (IJEPR)
ISSN: 2279-0179 Volume 2, Issue 2, pp: 95-100, April 2013
Conclusion This study revealed that real estate and gold are most preferred investment
alternatives among various investment alternatives. Respondents are not much inclined
towards post office investments; NSC, KVP etc. Lock in period works negatively for
investors because premature withdrawal is not allowed. The investors cannot get the money
during emergency situations. Investors prefer liquidity and return as an important criteria for
investment consideration. Hence mutual fund and equity share are also considered as good
investment alternatives
8)Fisher K. L. and Statman M. (2003) in their article “Consumer Confidence and Stock
Returns” published in The Journal of portfolio management, 2003
concluded that increase in consumer confidence about the economy are
accompanied by statistically significant increases in the bullishness of individual investors
about the stock market, as if individual investors are unaware that the stock market is a
leading indicator of the economy. Institutional investors however, seem aware of the role of
the stock market as a leading indicator of the economy. They find no statistically significant

60
relationship between changes in consumer confidence and changes in the sentiment of
institutional investors. They find that consumer confidence goes up and down with stock
returns; high stock returns
RATIONAL OF THE STUDY
Over the last few decades, the average person's interest in the equity market has grown
exponentially. This demand coupled with advances in trading technology has opened up the
markets so that nowadays nearly anybody can own equity. Despite their popularity, however,
most people don't fully understand equity. Chances are you've already heard people say
things like "Watch out with equity--you can lose your shirt in a matter of days!” People
thought that equity were the magic answer to instant wealth with no risk. Equity can (and do)
create massive amounts of wealth, but they aren't without risks. The only solution to this is
education. The key to protecting me in the equity market is to understand where i put my
money. It is for this reason I choose this topic.
OBJECTIVE OF THE STUDY
1) To know Customers preference towards investment in equity market
2) To analyze and conclude customer’s investing pattern in capital market
3) To study frequency through trading in equity
4) To study investment decision making in trading in equity
5) To find out objectives of investment.
Hypothesis
1) Null Hypothesis Ho= 70% respondents say that return is the basic important factor in
selecting the stocks.
Alternate Hypothesis H1= < 70% respondents say that return is the not basic important
factor in selecting the stocks
2)Null Hypothesis Ho= 50% respondents say that pattern of investing Invest in variety of
stocks
Alternate Hypothesis H1= < 50% respondents say that pattern of investing Invest in variety
of stocks
ResearchMethodology
The word methodology is the combination of two words “method” which implies a particular
way of doing something plus “logos” the Latin word which implies “study”. Thus
methodology implies „ a systematic way of studying something. The research method include
all those methods and techniques that are used for conducting research .

61
ResearchDesign
Descriptive Research Design has been used, which clearly indicates that the study is all about
a certain characteristic of individuals (investors) towards investment.
SOURCES OF THE DATA
Data is the reliable Information which has been derived from the information collected by the
company through various way to use for the future purpose, there two of the data collection
methods are available:
 Primary data
 Secondary data
From these two data collection method we can use primary data collection method
Primary Data for this research work has been collected through Structured, Multiple-choice
Questionnaire containing mostly Closed-ended Questions
Sample Design
A sample design is a definite plan for obtaining a sample from a given population. Sample
design consists of a number of items such as, Sampling technique, Size of the sample,
sampling unit, sampling area.
Researchdesign-Descriptive research
Sampling Technique - Simple random sampling
Population- 4000 customer of Sharekhan
Sample Size- Sample size of 100 has been undertaken in this research.
Sampling Area- customer of Sharekhan
Sampling Unit- Individuals indulging investment in equity shares with different backgrounds
have been selected.
Statistical tools The statistical tools used for the purpose of analysis of this study are pie
chart and bar diagram, ranking method SPSS and EXCEL
Limitations of the study
1. There might be errors in the expression of opinion of respondents due to there personal
bias.
2. The study was restricted to urban areas in Anand &customer of Sharekhan &some people
of chikhodra villge.
3. Due to Time constraints sample size was restricted to 100.

62
Analysis And Interpretation
Gender
Male 86
Female 14
Occupation
Govt. sector 46
Pvt. Sector 24
Business 10
Others 10
Income
Below 200000 14
200000-500000 50
Above 500000 36
1) How long have you been investing in equity?
Less than 1 year 11%
1-2years 41%
3-5 years 26%
More than 5 years 22%
The above analysis shows since how long the respondents have been investing in the stock
market. Most of the respondents were investing since 1-2 years.
how long you invest
Less than 1 year
1-2years
3-5 years
More than 5 years

63
2). How do you like to do your trading?
Directly 76%
Indirectly 24%
In stock market, investors can trade directly or indirectly. Directly i.e. online trading, 76% of
the respondents prefer online trading. In indirectly trading, mediator is involved for trading in
market.
3) What is the important factor for you in investment?
Risk 14%
Return 60%
liquidity 26%
When any people invest in any sector than people want something in return people get
preference on 14% on risk, 60% return and 26% on liquidity.
How do you like to do your trading?
directly
indirectly
important factor for investment?
risk
return
liquidity

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