If you think that you have some problem in understanding terms related to stock market and that are very common then you must read this it is written here in very simple and interesting way.Your every doubt related to stock market will vanish.
Sensex
Sensex is benchmark index of india which was started in april 1984 it consists of 30 stocks of various sectors the base value of sensex is 100INR and these 30 stocks comprises of roughly 1/5th of the total market cap of BSE,these stocks also have very high trading volume on daily basis.Depending on the companies performance, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.So increase and decrease in the value of these stocks in the sensex leads to the increase or decrease in the value of sensex.List of 30 stocks is given(ACC,Ambuja Cements ,Bajaj Auto,Bharti Airtel,BHEL,Cipla,DLF Ltd,Grasim Industries,HDFC Bank,Hindalco Industries,Hindustan Lever Limited,ICICI Bank,Infosys,ITC Limited,Larsen & Toubro,Mahindra & Mahindra Limited,Maruti Udyog,NTPC,ONGC,Ranbaxy Laboratories,Reliance Communications,Reliance Energy,Reliance Industries,Satyam Computer Services,State Bank of India,Tata Consultancy Services ,Tata Motors, Tata Steel, Wipro)
NIFTY
The NSE Nifty functions exactly like(explained above) the BSE Sensex. The only difference between the two indices is that the Nifty comprises of 50 stocks.Nifty in a way is more broadbased and it consists of all the 30 stocks of sensex and 20 additional stocks, all these stocks are large cap stocks. The Nifty 50 is officially called as S&P CNX Nifty . List of Nifty 50 stocks (ABB Ltd,ACC Ltd,Ambuja Cements Ltd,Bharat Heavy Electricals Ltd,Bharat Petroleum Corporation Ltd,Bharti Airtel Ltd,Cairn India Ltd,Cipla Ltd,DLF Ltd,GAIL (India) Ltd,Grasim Industries Ltd,HCL Technologies Ltd,HDFC Bank Ltd,Hero Honda Motors Ltd,Hindalco Industries Ltd,Hindustan Unilever Ltd,Housing Development Finance Corporation Ltd,I T C Ltd,ICICI Bank Ltd,Idea Cellular Ltd,Infosys Technologies Ltd,Larsen & Toubro Ltd,Mahindra & Mahindra Ltd,Maruti Suzuki India Ltd,NTPC Ltd,National Aluminium Co. Ltd,Oil & Natural Gas Corporation Ltd,Power Grid Corporation of India Ltd,Punjab National Bank,Ranbaxy Laboratories Ltd,Reliance Communications Ltd,Reliance Industries Ltd,Reliance Infrastructure Ltd,Reliance Petroleum Ltd,Reliance Power Ltd,Satyam Computer Services Ltd,Siemens Ltd,State Bank of India,Steel Authority of India Ltd,Sterlite Industries (India) Ltd,Sun Pharmaceutical Industries Ltd,Suzlon Energy Ltd,Tata Communications Ltd,Tata Consultancy Services Ltd,Tata Motors Ltd,Tata Power Co. Ltd,Tata Steel Ltd,Unitech Ltd,Wipro Ltd,Zee Entertainment Enterprises Ltd.)
Bull
Bull in market is refered to a person who is optimistic about the market and buys a stock first at lower level and sells it at upper level , for instance if a bull buys a company's share at Rs 100, s/he would prefer selling the same stock at Rs 120 or any price higher than Rs 100 to make a profit so when ever the market goes up it is always said that it was a day of bulls in the market because a bull will buy stock and if their is a majority of buyers in the market then the market will go up.
Bear
Bear in market is refered to a person who is pessimistic about the market and sells a stock first at higher level and buys it at upper level so one can say it is entirely opposite to that of bull.The best way to invest in the stock market If a bear sells first, say 100 shares of Ranbaxy at Rs 400, and later purchases the same number of shares at Rs 375, then her/his profit is Rs 25 (400-375) per share. This way s/he has got back the 100 shares of Ranbaxy and simultaneously made a profit of Rs 2500.So when ever the market goes down it is always said that it was a day of bears in the market because a bear will sell stock and if their is a majority of sellers in the market then the market will go down.
Square off
Square off in the market means that you have completed your transaction i.e If you have bought shares in the morning during market oppening or after and have sold it before market closes or at close you have squared of your position for example If you purchase 50 shares of say Infosys and sell them later before the market closes then you have squared off your buy position.
Similarly, if you sell 100 shares of Maruti and purchase them later then you have squared off your sell position.Our indian market rules allow the investors to do day trading day trading is a mechanisim in which a person can buy a stock upto 8-10 times his capacity or the money he/she has and sell it before the market closes and vice-versa.
Opening and closing of our markets
Our markets remains open from 9:55 am to 3:30 pm and also their are some days called as sun outages when satellites fail to link with ground infrastructure of the two exchanges (the servers where buy and sell orders are matched). During these times the trading period is extended till 4:15 pm to compensate for the time lost in between.
Correction
Correction in the markets means that when ever a market has gone up continuously it needs to come down and it comes down with correction for example if market has gone up continuously from 10000 to 12000 in three days it will come down to 11600 on the next day and this shave off is called as correction It is considered good for markets according to the experts because in this phase the market goes from week hands to strong hands.Like human beings the market too needs to take rest after a smart rally.
Sensex
Sensex is benchmark index of india which was started in april 1984 it consists of 30 stocks of various sectors the base value of sensex is 100INR and these 30 stocks comprises of roughly 1/5th of the total market cap of BSE,these stocks also have very high trading volume on daily basis.Depending on the companies performance, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.So increase and decrease in the value of these stocks in the sensex leads to the increase or decrease in the value of sensex.List of 30 stocks is given(ACC,Ambuja Cements ,Bajaj Auto,Bharti Airtel,BHEL,Cipla,DLF Ltd,Grasim Industries,HDFC Bank,Hindalco Industries,Hindustan Lever Limited,ICICI Bank,Infosys,ITC Limited,Larsen & Toubro,Mahindra & Mahindra Limited,Maruti Udyog,NTPC,ONGC,Ranbaxy Laboratories,Reliance Communications,Reliance Energy,Reliance Industries,Satyam Computer Services,State Bank of India,Tata Consultancy Services ,Tata Motors, Tata Steel, Wipro)
NIFTY
The NSE Nifty functions exactly like(explained above) the BSE Sensex. The only difference between the two indices is that the Nifty comprises of 50 stocks.Nifty in a way is more broadbased and it consists of all the 30 stocks of sensex and 20 additional stocks, all these stocks are large cap stocks. The Nifty 50 is officially called as S&P CNX Nifty . List of Nifty 50 stocks (ABB Ltd,ACC Ltd,Ambuja Cements Ltd,Bharat Heavy Electricals Ltd,Bharat Petroleum Corporation Ltd,Bharti Airtel Ltd,Cairn India Ltd,Cipla Ltd,DLF Ltd,GAIL (India) Ltd,Grasim Industries Ltd,HCL Technologies Ltd,HDFC Bank Ltd,Hero Honda Motors Ltd,Hindalco Industries Ltd,Hindustan Unilever Ltd,Housing Development Finance Corporation Ltd,I T C Ltd,ICICI Bank Ltd,Idea Cellular Ltd,Infosys Technologies Ltd,Larsen & Toubro Ltd,Mahindra & Mahindra Ltd,Maruti Suzuki India Ltd,NTPC Ltd,National Aluminium Co. Ltd,Oil & Natural Gas Corporation Ltd,Power Grid Corporation of India Ltd,Punjab National Bank,Ranbaxy Laboratories Ltd,Reliance Communications Ltd,Reliance Industries Ltd,Reliance Infrastructure Ltd,Reliance Petroleum Ltd,Reliance Power Ltd,Satyam Computer Services Ltd,Siemens Ltd,State Bank of India,Steel Authority of India Ltd,Sterlite Industries (India) Ltd,Sun Pharmaceutical Industries Ltd,Suzlon Energy Ltd,Tata Communications Ltd,Tata Consultancy Services Ltd,Tata Motors Ltd,Tata Power Co. Ltd,Tata Steel Ltd,Unitech Ltd,Wipro Ltd,Zee Entertainment Enterprises Ltd.)
Bull
Bull in market is refered to a person who is optimistic about the market and buys a stock first at lower level and sells it at upper level , for instance if a bull buys a company's share at Rs 100, s/he would prefer selling the same stock at Rs 120 or any price higher than Rs 100 to make a profit so when ever the market goes up it is always said that it was a day of bulls in the market because a bull will buy stock and if their is a majority of buyers in the market then the market will go up.
Bear
Bear in market is refered to a person who is pessimistic about the market and sells a stock first at higher level and buys it at upper level so one can say it is entirely opposite to that of bull.The best way to invest in the stock market If a bear sells first, say 100 shares of Ranbaxy at Rs 400, and later purchases the same number of shares at Rs 375, then her/his profit is Rs 25 (400-375) per share. This way s/he has got back the 100 shares of Ranbaxy and simultaneously made a profit of Rs 2500.So when ever the market goes down it is always said that it was a day of bears in the market because a bear will sell stock and if their is a majority of sellers in the market then the market will go down.
Square off
Square off in the market means that you have completed your transaction i.e If you have bought shares in the morning during market oppening or after and have sold it before market closes or at close you have squared of your position for example If you purchase 50 shares of say Infosys and sell them later before the market closes then you have squared off your buy position.
Similarly, if you sell 100 shares of Maruti and purchase them later then you have squared off your sell position.Our indian market rules allow the investors to do day trading day trading is a mechanisim in which a person can buy a stock upto 8-10 times his capacity or the money he/she has and sell it before the market closes and vice-versa.
Opening and closing of our markets
Our markets remains open from 9:55 am to 3:30 pm and also their are some days called as sun outages when satellites fail to link with ground infrastructure of the two exchanges (the servers where buy and sell orders are matched). During these times the trading period is extended till 4:15 pm to compensate for the time lost in between.
Correction
Correction in the markets means that when ever a market has gone up continuously it needs to come down and it comes down with correction for example if market has gone up continuously from 10000 to 12000 in three days it will come down to 11600 on the next day and this shave off is called as correction It is considered good for markets according to the experts because in this phase the market goes from week hands to strong hands.Like human beings the market too needs to take rest after a smart rally.
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