A

SUMMER INTERNSHIP PROJECT REPORT

ON

A STUDY AND ANALYSIS OF CONSUMERS PREFERENCE TO INVESTMENTS IN BANK STOCKS

SUBMITTED TO

L.J.Institute of management studies

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

Associate professor

PROF. RUTUJA BRAHMBHATT

Submitted by:

AAKASH .J. KHATRI(157290592058)

DILIP MALVIA(157290592031)

MBA SEMESTER II
Batch No.: 2015-2017

1
 Certificate

Certified that this summer internship project report titled “A STUDY AND
ANALYSIS OF WEALTH CREATION IN SHARE MARKET” is the bonafidework
of AAKASH .J. KHATRI(157290592058) AND DILIP
MALVIA(157290592031)
Who carried out the research under my supervision. I also certify further,
that to the best of my knowledge the work reported herein does not form
part of any other project report or dissertation on the basis of which a
degree or a work was conferred on an earlier occasion on this or any other
candidate.

Date:

Place: Signature of the student (s)

AAKASH .J. KHATRI(157290592058)

DILIP MALVIA(157290592031)

It is certified that the work mentioned above is carried out under my guidance.

Date:

Place: Signature of the faculty guide

2
Certificate is to be countersigned by the Director/HoD

3
 Student Declaration

We, AAKASH .J. KHATRI (157290592058) AND DILIP

MALVIA(157290592031)
hereby declare that the report for summer internship Project “A STUDY AND
ANALYSIS OF WEALTH CREATION IN SHARE MARKET” is a result of our
own work and our indebtedness to other work publications,
references, if any, have been duly acknowledged

Date: Student (s) Name:

Place:

AAKASH .J. KHATRI(157290592058)

DILIP MALVIA(157290592031)

4
 PREFACE
Being a student of MBA we feel glad to present this report on Religare
securities Ltd. According to the syllabus introduced by the university each
student opted for MBA course has to undergo training from any business
unit and has to prepare a detailed report of the company. The project so done
should contain information of various departments of the company. The
main purpose behind the preparation is to get the practical experience of the
subject.

Summer internship in MBA course helps students in practically applying

their theoretical knowledge.

We have tried to put in best of our effort in preparing this report on

“Religare securities Ltd” Errors and mistakes are part of human life and
some errors might have crept in this report.

5
 ACKNOWLEDGEMENT
It is our great pleasure to present this report before you. The presentation of
this report on religare Securities Ltd. depends on so many people who have
guided us kindly.

First of all we are thankful to Gujarat technological university who

introduced this subject as a part of our syllabus.

Secondly we express our deep sense of gratitude to our guides Mr. Siddhart
das sir and Rutuja ma’m for their help and guidance for the preparation of
this project.

Thirdly we are thankful to all person of Religare Securities Ltd. And a

special thanks to branch manager Mr. kamal thakkar for admitting us in his
well-managed company to complete our internship. We would also like to
thank Vikram sir and Sandip sir for providing us basic information about
Religare Securities Ltd.

Lastly we would like to thank each and every person who has helped us
directly or indirectly in completing the project work successfully.

6
 index

Sr. No. Particulars Page No.

1 Executive Summery
2 Introduction
3 Company Profile
4 Literature Review
5 Details About The Study
6 Research Methodology
a) Trend Analysis of Bank Stocks
b) Fundamental Analysis
7 Finding
8 Conclusion
9 Learning From The Project
10 Bibliography

7
 EXECUTIVE SUMMERY
The report encompasses the project undertaken with Religare Securities Ltd
under the guidance of Mr. kamal thakkar as part of summer Internship.

The project gives the details of what is National Stock Exchange (N. S. E)
and Bombay stock Exchange (B. S. E) actually means. It also gives a brief
about Religare Securities Ltd. The report contains the details of the work
performed at the Religare and some responsibilities under taken.

The report takes into consideration the following parameters i.e.:

 Equity Research
 Market Analysis Report

It provides with the basic of how online trading is done. It also gave a brief
introduction to Indian Stock Markets.

Through this project we also came to know about the comparison between
the sectors for example in this project comparison between Bank Nifty
sector have taken in to consideration. We also learned about option, futures,
forwards and swaps. This project also highlights the behavior of investors
towards a particular sector in BSE and NSE. This project gives us
information about the how volatile ours share market is and how the trend
ofa particular sector and Equity Stock Change in a given period. This project
also highlights different sectors.

Through this project we also came to known about portfolio management

services.

8
An Introduction to
the Indian Stock
Market

9
Mark twain once divided the world into two kinds of people: those who have
seen the famous Indian monument, taj mahal, and those who haven’t. The
same could be said about investors. There are two kinds of investors: those
who know about the investment opportunities in India and those who don’t.
India may look like a small dot to someone in the U. S., but upon closer
inspection, you will find the same things you would expect from promising
market. Here we’ll provide an overview of the Indian Stock Market and
how interested investors can gain exposure.

The BSE and NSE

Most of the trading in the Indian Stock Market takes place on its two stock
exchange: the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE). The BSE has been in existence since 1875. The NSE, on
the other hand, was founded in 1992 and started trading in 1994. However,
both exchanges follow the same trading mechanism, trading hours,
settlement process, etc. At the last count, the BSE had about 4,700 listed
firms, whereas the rival NSE had about 1,200. Out of all the listed firms on
the BSE, only about 500 firms constitute more than 90% of its market
capitalization; the rest of the crowd consists of highly illiquid shares.

Almost all the significant firms of India are listed on both the exchanges.
NSE enjoys a dominant share in spot trading, with about 70% of the market
share, as of 2009, and almost a complete monopoly in derivatives trading,
with about a 98% share in this market, also as of 2009. Both exchange
compete for the order flow that leads to reduced costs, market efficiency and
innovation. The presence of arbitrageurs keeps the prices on the two stock
exchange within a very tight range.

10
Trading Mechanism

Trading at both the exchanges takes place through an open electronic limit
order book in which order is done by the trading computer. There are no
market makers or specialists and the entire process is order driven, which
means that market orders paced by investors are automatically matched with
the best limit orders. As a result, buyers and sellers remain anonymous. The
advantage of an order driven market is that it brings more transparency, by
displaying all buy and sell orders in the trading system. However, in the
absence of market makers there is no guarantee that orders will be executed.

All orders in the trading system need to be placed through brokers, many of
which provide online trading facility to retail customers. Institutional
investors can also take advantage of the direct market access (DMA) option,
in which they use trading terminals provided by brokers for placing orders
directly into the stock market trading system.

Settlement Cycle and Trading Hours

Equity spot markets follow a T+2 rolling settlement. This means that any
trade taking place on Monday gets settle by Wednesday. All trading on stock
exchanges takes place between 9:15 am and 3:30 pm, Indian Standard time
(+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be
made in dematerialized form and each exchange has its own clearing hours,
which assumes all settlement risk, by serving as a central counterparty.

11
Market Indexes

The two prominent Indian market Indexes are Sensex and Nifty. Sensex is
the oldest market index for equities; it includes shares of 30 firms listed on
BSE, which represent about 45% of the index’s free-float market
capitalization. It was created in 1986 and provides time series data from
April 1979, onward.

Another index is the S&P CNX Nifty; it includes 50 shares listed on the
NSE , which represent about 62% of its free-float market capitalization. It
was created in 1996 and provides time series data from July 1990, onward.

Market regulation:

The overall responsibility of development, regulation and supervision of the

stock market rests with the securities & exchange board of india(SEBI),
which was formed in 1992 as an independent authority. Since then, SEBI
has consistently tried to lay doen market rules in line with the best market
practices. It enjoys vast powers of imposing penalties on market participants,
in case of a breach.

Who can invest in india

India started permitting outside investment only in the 1990s. foreign

investment are classified into two categories: foreign direct investment (FDI)
and foreign portfolio investment (FPI). All investments, in which an investor
takes part in the day to day management and operation of the company, are
treated as FDI, whereas investments in shares without any control over
management and operation are treated as FPI.

For making portfolio investment in india, one should be registered either

foreign institutional investor (FII) or as one of the sub accounts of one of the
registered FIIs. Both registrations are granted by the market regulator, SEBI.
Foreign institutional investors mainly consist of mutual funds, pension
funds, endowment, sovereign wealth funds, insurance companies, banks,
12
asset management companies etc. at present;India does not allow foreign
individuals to invest directly into its stock market. However, high net worth
individuals ( those whose net worth of at least $50 million) can be registered
as sub accounts of an FII.

Foreign institutional investors and their sub accounts can invest directly into
any of the stocks listed on any of the stock exchanges. Most portfolio
investments consists of investments in securities in the primary and
secondary markets including shares, debentures and warrants of companies
listed or to be listed on a recognized stock exchange in India. FIIs can also
invest in unlisted securities outside stock exchange, subject to approval of
the price by the reserve bank of india. Finally, they can invest in units of
mutual funds and derivatives traded on any stock exchange.

An FII registered as a debt only FII can invest 100% of its investments into
debt instrument. Others FIIs must invest a minimum of 70% of their
investment in equity. The balance of 30% can be invested in debt. FIIs must
use special nonresident rupee bank accounts, in order to move money in and
out of India. The balance held in such an account can be fully repatriated.

Restriction/investment ceilings

The government of india prescribes the FDI limit and different ceilings have
been prescribed for different sectors. Over a period of time, the government
has been progressively increasing the ceilings. FDI ceilings mostly fall in the
range of 26-100%.

By default, the maximum limit foe the portfolio investment in a particular

listed firm is decided by FDI limit prescribed for the sector to which the firm
belongs. However, there are two additional restriction on portfolio
investment. First, the aggregate limit of investment by all FIIs, inclusive of
their sud-accounts in any particular firm, has been fixed at 24% of the paid
up capital. However, the same can be raised up to the sector cap, with the
approval of the company’s boards and shareholders

13
Secondly, investment by any single FII in any particular firm should not
exceed 10%of the paid up capital of the company. Regulation permits a
separate 10% ceiling on investment for each of the sub accounts of an FII in
any particular firm. However, in case foreign corporation or individuals
investing as a sub accounts, the same ceiling is only 5%. Regulations also
impose limits for investments inequity based derivatives trading on stock
exchanges.

Investment opportunities for retail foreign investors

Foreign entities and individuals can gain exposure to Indian stocks through
institutional investors. Many India focused mutual funds are becoming
popular among retail investors. Investments could also be made through
some of the offshore instrument like, participatory notes (PNs) and
depository receipts such as American depository receipts (ADRs), global
depository (GDRs), and exchange traded notes (ETNs).

As per Indian regulations participatory notes representing underlying

Indianstocks can be issued offshore by FIIs only to regulated entities.
However, even small investors can invest in American depository receipts
representing the underlying stocks of some of the well-knownIndian firms,
listed on the regulations of the U.S. Securities and Exchange Commission
(SEC). Likewise, global depository receipts are listed on European stock
exchange. However, many promising Indian firms are not yet using ADRs or
GDRs to access offshore investors.

Retail investors also have the option of investing in ETFs and ETNs, based
on Indian stocks. India ETFs mostly make investments in indexes made up
of Indian stocks. Most of the stocks included in the index are the ones
already listed onNYSE and NASDAQ. As of 2009, the two most prominent
ETFs based on Indian stocks are the Wisdom Tree India Earnings
Funds(NYSE: EPI) and the power share India portfolio Fund (NYSE: PIN).
The most prominent ETN is the MSCI India Index Exchange Traded Note
(NYSE:INP). Both ETFs and ETNs provide good investment opportunity for
outside investors.

14
The bottom line:

The emerging markets like India are fast becomingengines for future growth.
Currently, only a very low percentage of the household savings of Indians
are invested in the domestic stock market, but with GDP growing at 7-8%
annually and a stable financial market, we might see more money joining the
race. Maybe it’s the right time for outside investors to seriously think about
joining the Indian bandwagon.

15
COMPANY PROFILE

16
Company Profile

Introduction:

Religare, a Ranbaxy promoter group company, is an integrated financial

services institution. The Company offers a diverse bouquet of services,
broadly clubbed across three key business verticals Retail, Wealth
Management and the Institutional Spectrums. The services range from
equities, commodities and insurance broking to wealth advisory, portfolio
management services, personal financial services, investment banking and
institutional broking services. Religare Enterprises Ltd. is the holding
company for all its businesses being operated and structured through its
various subsidiaries. Religare’s retail network spreads across the length and
breadth of the country with its presence directly, or through its business
associates, in 1,217 locations across 392 cities and towns.

Religare registered office at New Delhi. Religare is proud of being a truly

professional financial service provider managed by a highly skilled team,
who have proven track record in their respective domains. Religare
operations are managed by more than 2000 highly skilled professionals who
subscribe to Religare philosophy and are spread across its country wide
branches.

Religare has a growing network of more than150 branches and more than
300 business partners spread across more than180 cities in India and a fully
operational international office at London. However, the target is to have
350 branches and 1000 business partners in 300 cities of India and more than
7 International offices by the end of 2006.

17
Industry : Finance – General

BSE Code : 532915

Book Closure 11/08/2010

Group Religare

N.S.E. Code Religare

Market Capital 6393.90crore

Market lot 1

Face value 10

I.S.I.N. No. INE621Ho1010

Registered & Corporate Office D3, P3B, District Centre, Saket,

New Delhi, Delhi - 110017

Tel: +91 11 39125000

Fax: +91 11 39126050

Email: info@religare.com

Registrar & Share Transfer Agent D3, P3B, District Centre, Saket,

New Delhi, Delhi - 110017

Tel: +91 11 39125000

Fax: +91 11 39126050

Email: info@religare.com

Listings Incorporation Date 30/01/1984

BSE,NSE Public Issue Date 29/10/2007

18
Board of Directors - Religare Enterprises Limited

Mr. Sunil Godhwani

Mr.ShachindraNath

Mr. Anil Saxena

Mr. Harpal Singh

Mr. Deepak RamchandSabnani

Ms. Kathryn Matthews

Mr. PadamBahl

Mr. J. W. Balani

Ms. Sunita Naidoo

Mr. Stuart D Pearce

Mr. R. K. Shetty

Capt. G. P. S. Bhalla

19
Chief Executive officer:

Mr. Anuj Gulati (Religare Health Insurance Company Ltd.)

Mr. BasabMitra (Religare Enterprises Limited)

Mr. jayantmanglik (Religare Securities Limited)

Mr. KamleshDangi (Religare Enterprises Limited)

Mr. Kavi Arora (ReligareFinvest Limited)

Mr. PareshThakker

Mr. Raghuram Raju (Religare Enterprises Limited)

Mr. Rajiv Jamkhedkar(AEGON Religare Life Insurance Company Ltd)

Mr. SaurabhNanavati (ReligareAsset Management Company Ltd.)

MrTarunKataria (Religare Capital Markets India)

Bankers:

Axis Bank Ltd.

Bank of India

Citibank NA.

HDFC Bank Ltd.

ICICI Bank Ltd.

Oriental Bank of Commerce

Punjab National Bank

Standard Chartered Bank

Syndicate Bank

Yes Bank Ltd.

20
Vision:

"To be the leading emerging markets financial services group driven by

innovation, delivering superior value for all stakeholders globally”

Mission:

“Providing complete financial care driven by the core values of diligence

and transparency.”

21
Structure:

1. Religare Enterprises Limited

2. Religare AMC Limited
3. AEGON Religare Life Insurance Co. Ltd.
4. Religare Macquarie Wealth Mgmt. Ltd.
5. Religare Securities Limited
6. Religare Commodities Limited
7. Religare Capital Markets Limited
8. ReligareFinvest Limited
9. Religare Insurance Broking Limited
10.Religare Arts Initiative Limited
11.Religare Venture Capital Limited
12.VistaarReligare Capital Advisors Ltd.
13.Religare - Milestone
14.Religare Finance Ltd.

22
Our Brand Identity

Religare is a Latin word that means ''to bind together''. We chose this name
to reflect the integrated nature of our services. Our name is paired with the
symbol of a four-leaf clover. Traditionally, it is considered good fortune to
find a four-leaf clover as there is only one four-leaf clover for every 10,000
three-leaf clovers found.

Each leaf of the Religare clover has a special meaning. It is a symbol of

Hope, Trust, Care and Good Fortune.

The first leaf of the clover represents Hope

The aspirations to succeed. The dream of becoming. Of new possibilities. It
is the beginning of every step and the foundation on which a person reaches
for the stars.

The second leaf of the clover represents Trust

The ability to place one''s own faith in another. To have a relationship as
partners in a team. To accomplish a given goal with the balance that brings
satisfaction to all.

The third leaf of the clover represents Care

The secret ingredient that is the cement in every relationship. The truth of
feeling that underlines sincerity and the triumph of diligence in every aspect.

23
0From it springs true warmth of service and the ability to adapt to evolving
environments with consideration to all.

The fourth and final leaf of the clover represents Good Fortune
signifying that rare ability to meld opportunity and planning with
circumstance to generate those often looked for remunerative moments of
success.

Religare CSR
At Religare, we think beyond business. We are deeply committed to being
responsible contributors to society. As a global financial services group,
offering a wide array of products and services and serving over a million
clients, our mission is to "Empower the Investor". Our Investor Awareness
Programmes help investors navigate the financial markets better. We also
publish books and articles that demystify complex products and concepts for
the common man. Our latest publication, Investing in Commodities Made
Easy’ has been a runaway success.

We are also involved proactively in community building. Through initiatives

in the field of education, health, arts and women empowerment, we
contribute towards building a stronger society. We have partnered with the
Save Life Foundation, the AkshayaPatra movement and the SOS Children’s
Village to further our social objectives. The Religare Art Residency
programme identifies and mentors budding artists.

Initiatives:

24
Partnership with Save LIFE Foundation:
Partnered with the Save LIFE Foundation (SLF) a non- profit, non-
governmental organization that focuses on bystander care for road accident
victims in India. Our support will enable SLF to prepare professionally
designed training material for distribution and enhance their primary
research capabilities.

Sponsorship of Family Home at SOS Children''s Village:

Approximately 5000 children die every day in India, due to lack of amenities
or nutrition. To tackle this problem Religare has partnered with SOS
Children’s Villages of India which sets up ‘homes’ that look after orphaned
children. Each village has homes with 8-10 children who stay there till they
complete their education.

Association with Give India:

We''ve begun an employee initiative with the Give India Foundation, where
employees donate a part of their salaries to their pet causes.

Part of the AkshayaPatra Movement:

Joined hands with the AkshayaPatra movement, a pioneering school meal
program that provides unlimited, nutritious, hygienically cooked hot noon
meals in government schools and government run day-care centers
(anganwadis). Religare has agreed to sponsor 1,000 children for a period of
one year.

Events

25
Fund Raiser for Ladakh Flash Floods:
We had partnered with NDTV to raise funds for victims of flash floods in
Ladakh. The Religare Art Gallery hosted a charity photography exhibition to
show solidarity with families affected by the tragedy.

Save the Environment Week at SOS Children''s Village:

In August 2010, we organized a ''Save the Environment'' week for British
School children at the SOS Children''s Village. The week began with the 6
children attending an introductory session at Religare premises as part of
their community service week. From day 2, the children spent 2 hours a day
with over 20 children from the Village to spread awareness on
environmental issues. Activities undertaken by the children ranged from
poster making, quizzes and a skit.

The Delhi Half Marathon:

Ran the Airtel Delhi Half Marathon 2010 in the Corporate Challenge
segment, supporting Sukarya, an NGO that works in rural health care and
women empowerment in the Delhi NCR region.

Painting Competition for Children from SOS Village:

On Children''s Day 2009, we held a painting competition at the Religare Art
Gallery in Connaught Place for children from the SOS Village. The theme
was "I Aspire To Be" and the children warmed to the theme. Anjolie Ela
Menon, the acclaimed artist, judged the competition and presented a
certificate of participation to each child.

AWARDS

26
 2013

 The Indian Insurance Awards, has awarded AEGON Religare Life

Insurance (ARLI) as the ‘E-Business Leader’ under the category of
Overall Insurance Industry Awards.
 Religare Health Insurance has been awarded the ‘Technology
Innovation in Health Insurance Award’ at the prestigious ‘Indian
Insurance Awards - 2013’.

 2012

 ReligareFinvest Limited has been awarded the Finnoviti 2012

award in the “Innovation in Process” category.
 Religare Securities Limited has been awarded the "Best Investor
Education & Category Enhancement – Currency Broker" at the
Bloomberg UTV Financial Leadership Awards.
 Religare Commodities Limited has been awarded the "Best
Commodity Broker" at the Bloomberg UTV Financial Leadership
Awards.

 2011

 Religare Capital Markets has been adjudged the "Most Improved

Brokerage in the Last 12 Months" by Asia Money Brokers Poll.
 Religare Broking TVC (archery creative)won Silver Abby in the
Sound and Design craft category at Goafest 2011.
 Religare Capital Markets Limited has been awarded the coveted
Starmine award for the "Best Brokerage Research House".
 Religare Commodities Ltd has been awarded the ''The Best
Commodity Broker of the year'' at the Bloomberg UTV''s financial
Leadership awards.
 Religare Enterprises Ltd presented the theBest Retail Marketing
Campaign of the Year 2010 at Asia Retail Congress.
 Religare Enterprises Ltd received the coveted Master Brand
Award for 2010 and Best Marketing Campaign of the year at
World Brand Congress 2010.
27
 2010

 Religare Securities Limited was awarded the "Best Broking House

with a Global Presence" by Dun and Bradstreet for 2010.
 Religare Tax Plan awarded the first runner up for NDTV mutual
fund awards in the Equity Tax plan Category.
 Religare Capital Markets Ltd was awarded Best Deal in the Health
Care Category for Acquisition of stake in Parkway Holdings Ltd by
Fortis Health Care Ltd in the HealthCare/ Life Sciences Category.
 Religare awarded Greentech HR Excellence Awards, 2010 in 2
categories - Innovation in Recruitment & Technology Excellence in
HR.
 Mr. Sunil Godhwani, conferred the ''Indian Business Leader of the
Year'' award at the Global Indian Business Meeting hosted by Horasis

 2009

1. Religare Capital Markets Ltd awarded for excellence in deal

making for the Ranbaxy Daiichi deal in the HealthCare/ Life
Sciences Category.
2. Brand excellence in the Banking and Financial services category at
''The World Brand Congress 2009''.
3. Religare Macquarie Private Wealth won the Private Banker
International (PBI) Global Wealth Awards 2009 for the ''Most
Exciting New Wealth Management Model''.
4. In Asia Money: Brokers Poll - 2009, Religare Capital Markets
Limited - Institutional equties division was ranked 7th in the ''Best
Local Brokerage'' category and 5th in the ''Most Improved
Brokerage'' category.
5. Religare Securities equity broking - subsidiary awarded by D & B
for the category "best broking house-with a global presence".

28
 6. CEO CLUBS INTERNATIONAL AWARDS, Mr. Sunil
Godhwaniwas conferred the "CEO of the year Award" for the year
2009
7. Religare Enterprises Limited wins "Amity Corporate Excellence
Award for Best Financial Services Firm"
8. Mr. Sunil Godhwani, was conferred the ''Udyog Rattan Award''
under the aegis of Institute of Economic Studies at Indian Habitat
Centre
9. Religare Enterprises Limited conferred the ''Excellence Award''
sponsored by Institute of Economic Studies at Indian Habitat Centre
10. At the Goafest 2009 Abby awards, AEGON Religare Life Insurance
was the only company to win an award in the "Best Integrated
Campaign in the Financial Services" category.
11. AEGON Religare Life Insurance''s debut campaign K.I.L.B.(Kum
Insurance LenekiBimari) was awarded Gold in the category ''Outdoor
Media Plan of the Year'' at the Outdoor Advertising Convention
(OAC) 2009.

 2008

 Religare Enterprises Ltd awarded by Outlook Money NDTV profit

for Best IPO listing.
 LIPPER-STARMINE Award for Excellence in Research organized
by Thomson Reuters awarded to Religare Securities Limited.

29
Technical Services

Intra-day Calls

For day tradersreligare provides intraday calls with entry, exit

and stop loss levels during the market hours and our calls are
flashed on our terminals. Our analysts continuously track the
calls and provide the recommendations according to the market
movements. Past performance of these calls in terms of profit/loss is also
available to our associates to enable them to judge the success rate.

Posting Trading Calls

Religare’s “Position Trading Calls” are based on a through

analysis of the price movements in selected scrips and provides
calls for taking positions with a 10 - 15 days time span with stop
losses and targets. These calls are also flashed on our terminals
during market hours.

Derivative strategies

Our analyst take a view on the NIFTY and selected scripts based
on derivatives and technical tools and devise suitable “Derivative
Strategies”, which are flashed on our terminals and published in
our derivative reports.

Daily Services

Market Outlook at 9:30 AM

A crisp pre-market report that arms our clients with sensitive information
before the opening bell. Key corporate developments, policy

30
announcements, geo-political news and views are analyzed for their impact
on the market.

Technical Report at 6:00 PM

This report analyses trading patterns, historical background, market position
of key stocks and offer short term (1 to 5 days) as well as medium term (10
to 20 days) views. Tracking individual scrips as well as the Sensex and
Nifty, its insight cuts through the market maze.

Derivative Analysis Report

The report provides FII activity in derivative segments, change in open
interest, put call ratio, cost of carry of stock and index based
derivativeproducts. Our derivative analysts use the above tolls to project the
movement during the next trading sessions.

Fundamental Services

The Sunday Weekly Report

This weekly report is ace of all the reports. It offers a comprehensive market
overview and likely trends in the week ahead. It also presents top picks
based on an in-depth analysis of technical and fundamental factors. It gives
short term and long term outlook on these scrips, their price targets and

31
advice trading strategies. Another unique feature of this report is that it
provides an updated view of about 70 prominent stocks on an ongoing basis

The Industrial Watch

This report provides an in-depth look at specific industries which are likely
to outperform others in the economy. It analyses their strength and
weaknesses and ascertains their future outlook. The final view is arrived at
after thorough interaction with industry experts.

Stock Analysis

Religare’s stock research has performed very well over the past few years
and religare model portfolio has consistently outperformed the benchmark
indices. The fundamentals of select scrips are thoroughly analyzed and
actionable advice is provided along with investment rationale for each scrip.

Flash News

Key developments and significant news announcement that are likely to

have an impact on market / scrips are flashed live on trading terminals. Flash
news keeps the market men updated on an online basis and helps them to
reshuffle their holdings.

32
E-broking Services

Trading in securities / commodities using the internet platform is a

convenient option. We provide you an opportunity to trade on BSE / NSE
(Cash and F&O), NCDEX and MCX from the comfort of your home or
office.

Our internet trading platform gives you state-of-the-art trading facility, order
and trade confirmation, e-contracts and 24X7 on-line web enabled back-
office system at the click of a button.

Salient features of religaretrade :

 Multiple exchanges on a single screen: Online trading on BSE /

NSE (Cash and F&O), MCX and NCDEX on a single screen.
 Speed: We use the latest technology to generate efficient uptime
and greater stability to give you high speed.
 Competitive brokerage rates: We believe in providing our
clients the best value added services at the most competitive
brokerage rates.
 Optimum margins:Religare gives you the trading exposure at
optimum margin level
 Online funds transfer: The clients enjoy the convenience of
online transfer of funds from their bank accounts, to the margin
account of Religare, online.
 Personalized service: HNI clients can avail of personalized
advisory services from our trained and experienced dealers,
regarding trading opportunities.
 Off line services: You are free to make a telephone call to any of
our 71 well equipped branches across the country.
 Technology:Religare provides the latest infrastructure tools to
support and integrate the backend and front office functionalities.
 Back office infrastructure: We provide an automated web

33
 enabled centralized back-office whereby the clients can have
access to their trade confirmation reports, holding statement, their
net position, the margins and the statement of accounts and
ledgers on a 24 X 7 basis.
 Technical support: We remove technical difficulties through an
online support system managed by qualified professionals.
 E - Contract notes cum bills: We provide contract notes cum
bills in electronic form resulting in ease of access to trades carried
out by the clients on any particular day.

34
Different Charges

Registration Charges Rs.500/-

Margin money Rs. 5000/- (minimum)

Brokerage As per Slab mentioned below*
Demat Maintenance Rs. 250/- p.a
Demat Transaction 20paisa on each buying or selling transaction
whichever is higher
Trade charges Rs. 16/- per script

*Brokerage

CASH MARKET-SQUARRING UP

VOLUMES PER MONTH BROKERAGE

>5 CRORE 0.04%BOTH SIDES

2 CRORES-5CRORES 0.05%BOTH SIDES

25 LAKHS-2CRORES 0.06%BOTH SIDES

10LAKHS-20LAKHS 0.08%BOTH SIDES

<10 LAKHS 0.10%BOTH SIDES

(subject to minimum brokerage of Rs. 0.05 per share)

35
CASH MARKET- DELIVERY VOLUME

VOLUMES PER MONTH

>1 CRORES 0.25%

60LAKHS-1CRORES 0.30%

20LAKHS-60LAKHS 0.35%

10LAKHS-20LAKHS 0.40%

<10 LAKH 0.50%

36
Outlook Of Indian Financial System

The economic development of a nation is reflected by the progress of the

various economic units, broadly classified into corporate sector, government
and household sector. While performing their activities these units will be
placed in a surplus/deficit/balanced budgetary situations.

There are areas or people with surplus funds and there are those with a
deficit. A financial system or financial sector functions as an intermediary
and facilitates the flow of funds from the areas of surplus to the areas of
deficit. A Financial System is a composition of various institutions,
markets, regulations and laws, practices, money manager, analysts,
transactions and claims and liabilities.

Flow Of Funds (Savings)

Flow Of Financial
Seekers Of Services
Suppliers Of
Funds (Mainly Funds (Mainly
Business firms Household)
Incomes, Financial
& Government)
Claims

The word "system", in the term "financial system", implies a set of complex
and closely connected or interlined institutions, agents, practices, markets,
transactions, claims, and liabilities in the economy. The financial system is
concerned about money, credit and finance-the three terms are intimately
related yet are somewhat different from each other. Indian financial system

37
consists of financial market, financial instruments and financial
intermediation. These are briefly discussed below;

FINANCIAL MARKETS

A Financial Market can be defined as the market in which financial assets

are created or transferred. As against a real transaction that involves
exchange of money for real goods or services, a financial transaction
involves creation or transfer of a financial asset. Financial Assets or
Financial Instruments represents a claim to the payment of a sum of money
sometime in the future and periodic payment in the form of interest or
dividend.

The Indian financial market is one of the fastest growing and emerging
market of the world, thanks to new economic policy- liberalization,
deregulation and measures of restructuring – which has dismantled entry
barriers in the financial markets allowed the entry of new players and
created an environment for efficient allocation of resources. The major
investors in the market are Individual Investors, Corporate Sector and
Charitable Trust etc. Financial markets have evolved significantly over
several hundred years and are undergoing constant innovation to improve
liquidity.

Money Market - The money market it is a wholesale debt market for low-
risk, highly-liquid, short-term instrument. Funds are available in this market
for periods ranging from a single day up to a year. This market is dominated
mostly by government, banks and financial institutions.

Capital Market - The capital market is designed to finance the long-term

investments. The transactions taking place in this market will be for periods
over a year.

38
Forex Market - The Forex market deals with the multicurrency
requirements which are met by the exchange of currencies. Depending on
the exchange rate that is applicable the transfer of funds takes place in this
market. This is one of the most developed and integrated market across the
globe.

Derivative Market - Derivative market provides instruments for the

management of financial risk which includes futures, forwards, option, swap
etc. In the financial markets stock prices, bond prices, currency rates, interest
rates and dividends go ups and downs creating Risk. Derivative products are
financial products which are used to control risk or paradoxically exploit
risk.

Credit Market- Credit market is a place where banks, FIs and NBFCs
purvey short, medium and long-term loans to corporate and individuals.

Financial System

Financial Assets Financial Financial

Market Intermedi-
aries

Forex Capital Money

Capital Hybrid Market Credit Market
Money Market Market Market
Market Market
Instrument Instrument Instrument

39
 LITERATURE REVIEW
As per grant cardon times review(2008)
Global growth did not recover as expected across most major developed and
rapid-growth economies in 2013-14. During the year gone by, the central
bankers across the globe took decisive steps to restore confidence in markets
and broader economy. In Europe, the banking situation improved in part due
to the long-term refinancing operations of the European Central Bank
(ECB), which helped ensure there was plenty of liquidity in the system. In
the US, the picture was more upbeat but still mixed. And although
businesses and consumers started to borrow again, credit growth remained
tepid. The global economic environment broadly strengthened, and is
expected to improve further, with much of the growth impetus emanating
from advanced economies. There was acute financial volatility in emerging
market economies, and increases in the cost of capital which dampened
investments and weighed on growth

The market sector, being the barometer of the economy, is reflective of the
macro-economic variables. While the Indian economy is yet to catch
strength, the Indian market system continues to deal with improvement in
asset quality, execution of prudent risk management practices and capital
adequacy.

The Reserve Bank of India (RBI) maintained a status quo in interest rate
since January 2014 with the help of market segment. However, despite the
retail inflation softening in recent periods, it'll be a little while before the
Central Bank would opt for rate cut.
40
Indian banking industry, with total asset size of Rs 81 trillion (USD 1.34
trillion), is expanding continuously but on a cautious note. The fact that the
industry is plagued by bad loans, the lenders have chosen to go slow in terms
of credit offtake because of down ma Fiscal 2014 saw a combination of
various external and internal events that kept markets turbulent, interest rates
high and investor confidence low, resulting in shrinking investment and
GDP growth.

What is wealth creation in share market…starts here.

Wealth is the abundance of valuable resources or valuable material
possessions. This includes the core meaning as held in the originating old
English word weal, which is from an Indo-European word stem.[1] An
individual, community, region or country that possesses an abundance of
such possessions or resources to the benefit of the common good is known
as wealthy.

The modern concept of wealth is of significance in all areas of economics,

and clearly so for growth economics and development economics yet the
meaning of wealth is context-dependent. At the most general level,
economists may define wealth as "anything of value" that captures both
the subjective nature of the idea and the idea that it is not a fixed or static
concept. Various definitions and concepts of wealth have been asserted by
various individuals and in different contexts.[2] Defining wealth can be a
normative process with various ethical implications, since often wealth
maximization is seen as a goal or is thought to be a normative principle of
its own.[

What Are 10 Tips for Creating Wealth in the Stock Market?

by Mike Parker, studioD

41
Making money is the stock market is easy if you can just follow one simple
piece of advice: Buy low, sell high. Of course, that advice is far easier said
than done. While fortunes can be made or lost overnight in the stock
market, creating wealth typically requires planning, patience and a long-
term commitment to sound investing principles.

Self-Assessment

Nobody else in the world is just like you, so it follows that there is no one-
size-fits-all investment plan that works for everyone. Before you make your
first investment in the stock market, sit down and do an honest self-
assessment. Determine how you relate to money and how much risk you
feel comfortable taking. The best stock market investment in the world
does you no good if you can't sleep at night worrying whether it will lose
money.

Investment Objective

If you don't care where you end up, any road will get you there. It's the
same with your investments. You must know where you want to end up
financially before you can make a decision about the proper investment to
achieve that end. It doesn't matter if your investment objective is to create
current income, to preserve your capital or to generate tax-free interest, as
long as you know what your investment objective is.

Determine Your Starting Point

You can't get to Point B from Point A if you don't know where Point A is.
Where your investments are concerned, Point A is your current financial
situation, or your starting point. Determine your financial starting point by
creating a net worth statement. A net worth statement is a two-column
form with all of your assets, the things you own, in one column and all of
your debts, the things you owe, in the other. Total each column, then
subtract your debts from your assets. Whatever is left is net worth.

Determine Your Resources

42
If you have a positive net worth, you might have assets that you can use to
invest in the stock market, but many of your assets might be tied up in your
home or other investments that are not readily accessible. Other resources
for investing might come from your regular cash flow. Determine your cash
flow by creating a cash flow statement. This is a two-column form with all
of your monthly income from all sources in one column, and all of your
monthly expenses in the other. Total both columns, then subtract your
expenses from your income. Whatever is left is your cash flow. If the result
is a positive number, you have disposable income that you can use to invest
in the stock market.

Find a Broker

Most stocks are traded through major investment exchanges or over-the-

counter. In either case, you need an investments broker to handle your
stock transactions. If you don't feel confident in your ability to make your
own investment decisions, you might need the services of a full-service
broker. This is the most expensive way of trading stocks. If you want to go it
alone, you can trade through an online brokerage firm. Some companies
allow you to bypass a broker altogether by investing in their direct stock
purchase plans. A number of mutual fund companies offer their shares
directly to the investing public as well. This is the least expensive option. In
between are discount brokerage firms that provide limited services and
charge discounted fees and commissions.

Know Your Investments

Whether you do your own research or rely on the services of an

investments professional, you should have a clear understanding of how
the investment you are buying works. Never invest in anything that you
don't understand.

Diversify Your Investments

The bedrock of investment advice is, "Don't put all your eggs in one
basket." In other words, diversify your stock holdings, so if one stock
43
craters you don't lose all your money. There is no better long-term risk
management strategy than diversification of your stocks, says the U.S.
Securities and Exchange Commission.

Don't Marry Your Stocks

It can be

Wealth creation refers to the amassing of assets and property that is a

surplus to the requirement for survival. This surplus, or wealth, may be
used to amass an even greater surplus to the requirement via the further
acquisition of resources andmeans of production.

Wealth is the abundance of valuable resources or valuable material

possessions. This includes the core meaning as held in the originating old
English word weal, which is from an Indo-European word stem.[1] An
individual, community, region or country that possesses an abundance of
such possessions or resources to the benefit of the common good is known
as wealthy.

The modern concept of wealth is of significance in all areas of economics,

and clearly so for growth economics and development economics yet the
meaning of wealth is context-dependent. At the most general level,
economists may define wealth as "anything of value" that captures both
the subjective nature of the idea and the idea that it is not a fixed or static
concept. Various definitions and concepts of wealth have been asserted by
various individuals and in different contexts.[2] Defining wealth can be a
normative process with various ethical implications, since often wealth
maximization is seen as a goal or is thought to be a normative principle of
its own.[

uilding wealth - it's a topic that sparks heated debate, promotes quirky
"get rich quick" schemes and drives people to pursue transactions they
might otherwise never consider. "Three Simple Steps To Building Wealth"

44
may seem like a misleading title, but it isn't. While these steps are simple to
understand, they're not easy to follow.

The Steps

Basically, building wealth boils down to this: To accumulate wealth over

time, you need to do three things:

You need to make it. This means that before you can begin to save or
invest, you need to have a long-term source of income that's sufficient
enough to have some left over after you've covered your necessities.

You need to save it. Once you have an income that's enough to cover your
basics, you need to develop a proactive savings plan.

You need to invest it. Once you've set aside a monthly savings goal, you
need to invest it prudently.

Getting on Track

Step1: Making Enough Money

This step may seem elementary, but for those who are just starting out, or
are in transition, this is the most fundamental step. Most of us have seen
tables showing that a small amount regularly saved and compounded over
time can eventually add up to substantial wealth. But those tables never
cover the other sides of the story - that is, are you making enough to save
in the first place? And are you good enough at what you do and do you
enjoy it enough that you can do it for 40 or 50 years in order to save that
money? (For related reading, see Understanding The Time Value Of Money
and Delay In Savings Raises Payments Later On.)

45
To begin, there are two types of income - earned and passive. Earned
income comes from what you "do for a living," while passive income is
derived from investments. This section deals with earned income.

Those beginning their careers or in the midst of a career change can think
about the following four considerations to decide how to derive their
"earned income":

Consider what you enjoy. You will perform better and be more likely to
succeed financially doing something you enjoy.

Consider what you're good at. Look at what you do well and how you can
use those talents to earn a living.

Consider what will pay well. Look at careers using what you enjoy and do
well that will meet your financial expectations.

Consider how to get there (educational requirements, etc.). Determine the

education requirements, if any, needed to pursue your options.

Taking these considerations into account will put you on the right path. The
key is to be open-minded and proactive. You should also evaluate your
income situation annually.

Step 2: Saving Enough of It

You make enough money, you live pretty well, but you're not saving
enough. What's wrong? There's only one reason why this occurs: your
wants exceed your budget. To develop a budget or to get your existing
budget on track, try these steps:

46
Track your spending for at least a month. You may want to use a financial
software package to help you do this. If not, your checkbook is the best
place to start. Either way, make sure you categorize your expenditures.
Sometimes just being aware of how much you are spending will help you
control your spending habits. (For more insight, see The Beauty Of
Budgeting and The Indiana Jones Guide To Getting Ahead.)

Trim the fat. Break down your wants and needs. The need for food, shelter
and clothing are obvious, but you also need to address less obvious needs.
For instance, you may realize you're eating lunch at a restaurant every day.
Bringing your own lunch to work two or more days a week will help you
save money.

Adjust according to your changing needs. As you go along, you probably will
find that you've over- or under-budgeted a particular item and need to
adjust your budget accordingly.

Build your cushion - you never really know what's around the corner. You
should aim to save around three to six months' worth of living expenses.
This savings prepares you for financial setbacks, such as job loss or hea:
Step 3: Investing It Appropriately

You're making enough money and you're saving enough, but you're putting
it all in conservative investments. That's fine, right? Wrong! If you want to
build a sizable portfolio, you have to take on risk, which means you'll have
to invest in equities. So how do you determine what's the right exposure
for you? (Confused about risk? Read Determining Risk And The Risk
Pyramid.)

Begin with an assessment of your situation. The CFA Institute advises

investors to build an Investment Policy Statement. To begin, determine
your return and risk objectives. Quantify all of the elements affecting your
financial life including household income, your time horizon, tax

47
considerations, cash flow/liquidity needs and any other factors that are
unique to you.

I love the concept of wealth creation, but it can be interpreted in so many

different ways. Some people think about making money, others about
collecting assets and more still about their health and life wealth. I spend a
lot of time thinking about it myself and while I feel that all of these things
contribute to my overall wealth I’ve never really been able to define an
approach to what is wealth creation.

Wikipedia defines wealth as the abundance of valuable resources or

material possessions, basically this means that you are considered wealthy
if you have a lot of something that others value. What Wikipedia and many
other sites don’t tend to tell you about wealth creation is how to get these
things.

How to create wealth

I really like describing things in simple terms, I also like to see things instead
of just having them explained to me. For this reason I’ve come up with a
very basic equation to describe wealth creation as I see it.

OK, so the term ‘equation’ is probably a little too grand in this case, if you
don’t like it call it something else. What I’m trying to demonstrate is an
approach to having anything you want using a method that will never fail.

This is not as simple as it sounds and while it might not look too sexy, if you
approach wealth creation in this way you can not miss.

Let’s take a look at some examples

Earning money

Everyone is interested in money to a certain extent and the way most of us

make it is by working for someone else. If you are really clever you may
find a way to do it for yourself, but fundamentally you still rely on other
48
people to pay you. In order to create more financial wealth you need to get
better at what you do, learn new skills and offer something that others are
willing to pay for. It takes time to develop these skills and there are
generally few shortcuts, however if you stay focused on your goal and work
towards it with a consistent approach your chance of success over time is
pretty high.

Saving money

My wife and I have saving accounts for just about everything and we stash
away small amounts with every pay. Individually these amounts aren’t very
impressive, but over time they can make a huge difference. This is the
most basic and absolutely the most effective way to grow your financial
wealth and have the things you want without getting into trouble.
Consistency is the key, not just in saving, but also in watching what you
spend as well.

Making money

You may disagree, but I feel that earning money is quite different to making
money. Making money tends to suggest it is just appearing without the
need to earn it first, it probably comes as no surprise that I’m a huge fan of
this theory too. I think that this is completely possible to realise, you can
see it through compound interest on your savings, where the interest on
the money you have saved begins to make money all by itself. Sometimes
it is easier to see (and can happen faster) through the returns you receive
through various investments. Once this begins to happen, you are well on
your way to a comfortable retirement.

Maintaining your health

Ask anyone that does regular exercise an they will tell you tha

49
 DETAILS ABOUT THE STUDIES
RATIONALE FOR THE STUDIES
In an industry plagued with skepticism and a stock market increasingly
difficult to predict and contend with, if one looks enough there may still be a
genuine aid for the day trader and short term investors.

The price of a security represents a consensus. It is the price at which one

person agrees to buy and another agrees to sell. The price at which an
investor is willing to buy or sell depends primarily on his expectations. If he
expects the security’s price to rise, he will buy it; if the investor expects the
price to fall, he will sell it. These simple statements are the cause of a major
challenge in forecasting security prices, because they refer to human
expectation. As we all know human expectations are neither easily
quantifiable nor predictable.

If the prices are based on investors’ expectations, then knowing what a

security should sell for (i.e. fundamental analysis) becomes less important
than knowing what other investors expect it to sell for. That’s not to say that
knowing what the security should sell for isn’t important, but there is usually
a fairly strong consensus of a stock’s future earnings that the average
investors cannot disapprove.

Fundamental analysis and technical analysis can co-exist in peace and

complement each other. Since all the investors in the stock market wants to
make maximum profit possible, they just cannot afford to ignore either
fundamental analysis or technical analysis.

50
 OBJECTIVE OF THE STUDY
Primary objective:

To study and analyze consumers preference to investments in market stocks.

Sub- objective:

 To understand the movement and performance of stocks

 To compare historical prices of stocks.
 To identify stocks in which majority of consumer invest and to study
their strategy.

51
 SECTOR INTRODUCTION
what is a sector ?
An industry or market sharing common characteristics. Investors use sectors
to place stocks and other investments into categories like technology, health
care, energy, utilities and telecommunications. Each sector has unique
characteristics and a different risk profile.

What’s the point of investing in a sector fund?

Sector funds concentrate their investments in a single sector, such as FMCG,

financial services, healthcare, and technology. These are sectors which an
investor would find represented in a diversified equity fund.

An issue with sector funds is that investors rarely act on a well thought out
strategy. They simply gravitate towards the flavor of the year, which means
that they are already behind.

An essential characteristic of sector funds is that they can shoot out the lights
one year and be a loser the next because they essentially lack the
diversification to ride out trouble. One should never commit the grave error
of investing in a sector fund simply because it has had a great run that year.

What can learn from specific sector performance?

Over the long haul, you can expect sectors to move based upon the strength
of the revenue growth and the demand for the products and services sold by
the companies within sectors.

52
How do you determine which sectors will advance in the future?

The investor would go about choosing a sector in which to invest in a

similar way to choosing an individual stocks. First, start with a particular
sector of interest. Let’s do a quick case study to see how you would go
about analyzing and choosing a sector fund.

What are the potential risks of investing in this sector?

Morningstar analyst Robert Goldsborough doesn’t expect banks to rev up

growth any time soon. High unemployment to tepid growth might sink this
industry. If interest rates rise, the investment banks may suffer from a
slowdown in underwriting growth. The continuing European sovereign debt
problems could also hurt the U.S. banking sector.

What sector should I invest in now?

As the previous analysis illustrates, choosing a sector is just as

challenging as researching an individual stocks. It requires economic and
valuation analysis. If you are interested in tilting your portfolio towards a
particular sector, do your homework first. Be an informed consumer and
educate yourself about the factors influencing the growth and future profits
of a sector.

SCOPE OF STUDY:

The scope of this project is limited only one sector i.e., Bank stocks. This
project is concern with only one sector of company in the stock market. The
project does not extend to any other sector of the company.

53
54
 RESEARCH METHODOLOGY AND DESIGN

 The type of study:

The research has been on primary as well as secondary data analysis. The
study has been exploratory as it aims at examining the secondary data for
analysing the previous researches that have been done in the area of
technical and fundamental analysis of the stocks. The knowledge thus
gained the from this preliminary study, the various technical indicators
that are important for analysing stock were actually identified and
important ones short listed.

 Sample decision:
The sample of the stocks for the purpose of collecting secondary data has
been selected on the basis of judgement and convenience. The stock are
chosen in an unbiased manner and each stock is chosen independent of
the other stocks chose. The stocks are chosen from the different secto.

 Sample size:
The sample size for the number of stocks is taken as top 15 market
stocks for analysis. And have surveyed 100 respondents to know their
preference for investing in stocks

55
 1. Do you invest in stock market?

No Yes
50% 50%

This graph shows number of people who invest in stock market.

According to this survey, majority i.e. 50 of the respondents invested in

stock market. And 50 respondents never invested directly in stock market
due to risk involved, they preferred to invest in other instruments like mutual
funds, systematic investment plan (SIPs) etc

2. Do you invest in Future & option stocks?

No Yes
50% 50%

56
This graph shows that no. of people who are invest in future stock and
option stock this graph suggest that 50% people are investing and 50%
people are not investing that’s all.

3. Age group:

35

30

25

20

15

10

0
18 – 24 years 25 – 34years 35 – 44 years Above 45
old old old

This graph shows that 25% people of 18-24 years are and 35% people
of age group 25-34years and 15% people of age group 35-44 years
and 25% people of age group above 45 are investing in share market.
4. Income:

1 lakh to 4.99 lakh 5 lakh to 9.99 lakh

10 lakh to 14.99 lakh Above 15 lakh

24%
32%

17%

27%

57
this graph of income suggest that 32% people of having income between
1lakh to 4.99 lakh and 17% of people having income of 10lakh to 14.99 lakh
and 27% people are having incime of 5lakh to 9.99 lakh.

5. How many percentage of average monthly income you invest in

stocks?

Below 15% 15% to 25% 25% to 40% more than 40%

25% 25%

15%

35%

This graph represent that how many monthly income people are invest in
stock below 15% income are investing in monthly stock and 15% to 25%
peope are investing and 25% to 40% are investing and more than 40%
income are 35% using their income.

58
 6. Average return you earn with wealth creation in share market?

Chart Title
Less than 10% 10% to 30% 30% to 50% Above 50%

26% 22%

18%
34%

22% people are earning less than 10% while 34% people are earning 10 to
30% and 18% people are earning 30% to 50% and 26% people are earning
above 50%.

7. While creating a wealth in share market which option you like the
most?

25

20

15

10

0
Nifty Public sector Metal FMCG Others
Unit (PSU)

59
This graph suggest that in creating wealth which option is people using mor
are as under..18% people are preffer nifty and 22% people preffer psu and
25% people preffer metal sector and 12% people preffer FMCG and 13%
people preffer other sector

8. Are you satisfied with the returns provided by your preferred sector in
wealth creation in share market?

90

80

70

60

50

40

30

20

10

0
Yes No

This graph suggest that 77% people say yes because they are satisfy with the
return they are getting .And 23% people say no because they are not satisfy
with return.

60
 9. How frequently you trade in Future & option stocks to create a good
wealth in share market?

Daily Monthly Weekly According to market situation

25%
33%

18%

24%

This graph represent that 33% people are trade daily and 24% people are
monthly and 18% people are weekly and 25% Are trading according to
market situation.

10. Are you satisfied with the current performance of the Future & option
Stock of expected returns?

30

25

20

15

10

0
Fully Satisfied Neutral Unsatisfied Fully
satisfied unsatisfied

61
This graph suggest that 17% people are fully satisfied and 13% people are
satisfied while 25% people are neutral and 30% unsatisfied and 15% people
are fully unsatisfied with the performance.

11.What is the purpose in wealth creation to use of to option trading ?

40
35
30
25
20
15
10
5
0
To reduce Risk To Speculation For hedging Other

This graph suggest that 25% people use it for to reduce risk and 35% people
use it for to speculation and 15% people are use it for hedging and 25% are
using for others

62
12.In wealth creation What is the best price to invest?
In the money At the money Out of money other

25%
30%

20%
25%

This graph suggest that 30% are for in the money and 25% at the money
and 20% out of money and 30% others is the best price to invest in share
market.

63
 FINDINGS

 After doing research we were able to knowthat making a portfolio of

different stocks in different sector is important in everybody’s life. That
will help to secure our future. Also help to invest properly in the market.

 From the above secondary data we found that stocks gave good returns in
short as well as long term investment.

 Presently from the analyses we found that icici bank, hdfc bank, axis
bank, and kotak Mahindra bank are very good bank stocks to invest in.

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 CONCLUSION
 As per secondary data and the past records of market trends, bank stocks has provided
better returns to its short run as well as its long run investors.

 Equity stocks indices of the bank stocks are much stable. Further the primary data of
survey shows that 65 of the total investors prefer to invest in the market stocks for
better returns.

 Current scenario suggests, markets are on a bullish run, especially in case of bank
stocks. Analysis suggests that all the chosen stocks i.e., reliance huf dlf HDFC
Bank, SBI Bank, Axis Bank, Punjab National Bank, Kotak Mahindra Bank Ltd,Bank
of Baroda,Yes Bank Ltd,IndusInd Bank Ltd,Federal Bank Ltd. And SBI are going to
well perform well, with huge potential of earning for equity holders, both in short-
term and long term investment.

 Bank stocks give good returns in short term as well as in long terms to its equity
holders.

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 Learning from the project

 Summer Internship helped us to learn how equity works, how trades are done and
how market works.

 We understood the equity market and the movement of the different scripts.

 Working on Religare trading software-ODIN, helped us to improve our analytical

skills.

 Customer interaction helped us to learn how to communicate and deal with them and
helped us in improving our communication skills.

 The pre and post budget market movements were studied and understood.

 Our SIP exposure helped us in relating to the theoretical knowledge to practical

aspects that govern how things work in the financial markets.

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 Bibliography
Newspaper, journal, periodical

 The Economic Times

Websites Referred
 www.moneycontol.com
 www.economictimes.com
 www.wikipedia.com
 www.morningstar.in
 www.religare.com
 www.businesstoday.com
 http://finance.yahoo.com

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 QUESTIONNAIRE

A STUDY IN OPTION TRADING IN SHARE MARKET

1. Do you invest in stock market?

Yes No

2. Do you invest in Future & option stocks?

Yes No

3. Age group:
18 – 24 years old 25 – 34years old
35 – 44 years old Above 45

4. Income:

1 lakh to 4.99 lakh 5 lakh to 9.99 lakh

10 lakh to 14.99 lakh Above 15 lakh

5. How many percentage of average monthly income you invest in

stocks?
Below 15% 15% to 25%
25% to 40% more than 40%

6. Average return you earn with wealth creation in share market?

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 Less than 10% 10% to 30%
30% to 50% Above 50%

7. While creating a wealth in share market which option you like the
most?
Nifty
Public sector Unit (PSU)
Metal
FMCG
Others (specify)
_____________________________________________

8. Are you satisfied with the returns provided by your preferred sector
in wealth creation in share market?
Yes No

9. How frequently you trade in Future & option stocks to create a good
wealth in share market?
Daily Monthly
Weekly According to market
situation
10. Are you satisfied with the current performance of the Future & option
Stock of expected returns?
Fully satisfied Satisfied
Neutral Unsatisfied
Fully unsatisfied
11. What is the purpose in wealth creation to use of to option trading ?

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 To reduce Risk To Speculation
For hedging Other
12. In wealth creation What is the best price to invest?

In the money At the money

Out of money other

THANK YOU..!!!

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