A STUDY ON TRADING IN INDIAN STOCK MARKET AND

INTERNATIONAL CURRENCY MARKET

JMARATHON ADVISORY SERVICES PRIVATE LTD

A TRAINING REPORT

Submitted in partial fulfillment of the requirements for the award of degree of

MBA (FINANCIAL MARKETS)

Submitted to

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA, PUNJAB

From 05/14/20 to 07/14/20

SUBMITTED BY

Name of student:
Aastha Gupta
Registration Number:
11909837
Signature of the student:
Aastha Gupta

1
 DECLARATION
To whom so ever it may concern
I, AASTHA GUPTA, 11909837, hereby declare that the work done by me on “TRADING IN INDIAN
STOCK MARKET AND INTERNATIONAL CURRENCY MARKET” from MAY, 2020 to JULY,
2020, is a record of original work for the partial fulfillment of the requirements for the award of the degree,
MASTER OF BUSINESS ADMINISTRATION.

Aastha gupta (11909837)

Signature of the student: Aastha Gupta

Dated: 20/7/2020

2
 CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Aastha Gupta student of Lovely professional university, has successfully completed
her internship in our organization as Financial Analyst from 14th May, 2020 till 14th July, 2020. She has
completed the training on “Indian stock Market and International Currency Market”. She has shown
her passion towards learning about Financial Markets by being a hands-on intern during her time with us.
She managed to generate business worth Rs. 10000 by encouraging people to take online courses on stock
trading and opening demat accounts. We wish her all the very best in future endeavours.

(Signature of the Authorized Company Official)

Name: Megesh.M
Designation: Business Head
Date: 20-07-2020

3
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Dr. Mahesh Sarva, Assistant Professor, Lovely
Professional University, Phagwara, for his encouragement throughout the academic period.

I am thankful to my company guide “Mr. Gopal Krishna Business Head at JMARATHON” for
giving me such an opportunity.
I would like to specially thank my family members, friends and relatives for guiding me and consistently
supporting me in this endeavour.

With Gratitude,
Aastha Gupta
(11909837)

4
 INDEX

PARTICULARS PAGE NO.

1. CHAPTER:1
• INTRODUCTION OF THE PROJECT 6
6
• OBJECTIVES OF THE WORK
7
• SCOPE OF THE WORK
8
• IMPORTANCE AND APPLICABILITY
9
• ROLE AND PROFILE
2. CHAPTER: 2
• INTRODUCTION 10
• INVESTMENT OPPORTUNITIES IN STOCK MARKET 10
i. FOREX MARKET 11
ii. INDIAN STOCK MARKET 16
iii. MUTUAL FUNDS 18
3. CHAPTER: 3
• ANALYSIS OF INVESTMENT OPPORTUNITIES IN
STOCK MARKET 20
A. SWOT ANALYSIS OF INDIAN STOCK MARKET 22
B. SWOT ANALYSIS OF FOREX MARKET 23
C. SWOT ANALYSIS OF MUTUAL FUNDS 24
• IMPACT OF STOCK EXCHANGES IN INDIA 25
• STOCK INVESTMENT OPPORTUNITIES AND 26
CHALLENGES
• BASIC RULES OF INVESTMENT IN SHARE 28
MARKET
4. CHAPTER: 4
31
• INTRODUCTION OF THE COMPANY
35
• BRIEF DESCRIPTION OF WORK DONE
5. CONCLUSION 39
40
6. REFERENCES

5
 CHAPTER-1
INTRODUCTION OF THE PROJECT UNDERTAKEN

In the era of constantly changing and volatile Financial Market, investors need Qualified /Trained and an
unbiased professional to assist them in achieving their short term and long-term Investment goal. To achieve
my big dream of working in the finance industry as a professional trader at NSE, doing my summer project
on Trading in Indian stock Market and International Currency Market seemed to be the best idea.

The Project is about how to trade in shares, commodities and currencies in various markets on different
duration basis such as short-term trading (buy and sell within 365 days), long term trading (at least holding
the stocks which you trade for more than 4 years) and intraday trading (buy and sell the trade on the same
day).

➢ Objectives of the work undertaken

• Understanding the various activities of a Broking firm (JMarathon) which helps in advising their
clients where to invest and how to stop losses.
• I learned the reasons for investing in stocks.

• I learned the application of theoretical knowledge of trading practically in the stock market i.e.,
I have invested in forex market and started trading where I made both losses and profits in
intraday trading.
• I learned analysis of the financial market & the share movements in order to study the prospects
of investing in a particular stock.
• I learned how to analyse the market using technical analysis, fundamental analysis and
sentimental analysis which helps manage the risk while trading.
• I learned how to calculate pivot point and analyse candle stick patterns which plays an important
role in a buying and selling to stop losses.
• I have learned how to be patient while trading and control greed or bad leverage which leads to
losses.

6
➢ Scope of the Work

Various investment opportunities arise in stock market daily. We witness them but investment
opportunities depend on the duration you invest such as short term, long-term or intraday. As per
your choice of duration, the risk is will be calculated with the knowledge you acquire about the stock
market and analyze the market to trade. Investing money in FOREX market, Stock market, Mutual
Funds and other Asset Classes is difficult because we’re all burdened with the above emotional
challenges. It doesn’t matter how effective your strategy or statistically significant your testing,
every strategy will experience drawdown and losing runs. It’s how we respond to those inevitable
losses that determine whether or not we’ll be successful in the long-term or short term.

With right tools and techniques in hand, a huge part of this uncertainty can be overcome. This study
has helped me greatly in learning about both the past and present scenario of financial markets in
India which I aim to use while working in the industry professionally.

Although the big part of my internship revolved around finance but at the end of the day there is no
business without sales and hence, I actively participated in sales activities of the company too which
altogether added a separate set of skills to my personality.

7
➢ Importance and Applicability

During my study I realized that there are two ways of making money in stock markets i.e. Fundamental
Analysis and Technical Analysis. While the first one tells us ‘What To Buy,’ the latter tells us ‘When
To Buy’. I devoted a big part of my time in learning about these two which act as the essentials for
working in financial markets. Without good Fundamental analysis, you can end up in investing in wrong
stocks which will ultimately erode your capital completely. With big financial frauds and defaults
happening on the part of several big companies, an investor needs to be good at this. This is much more
important for professionals working in the industry as they hold the responsibility of making money or
we can say generating a minimum expected rate of return on funds invested by various investors.

Moving forward, if I talk about importance of technical analysis, it can’t be subdued. Technical analysis
helps in entering and exiting the markets at the right time. This requires studying various charts, patterns
and technical indicators. Day traders and swing traders depend on technical analysis heavily. Those who
are good at this can make great money on a good day and here lies its importance. Market gives you
limited opportunities, skills like these help you take advantage of it.

8
➢ Role and profile

I was appointed for the role of ‘Financial Analyst’ which included the following duties and
responsibilities:

• To undergo a training period of ten days where basics of technical analysis and fundamental
analysis was taught through online class mode.

• To practically apply the fundamental analysis on listed companies to find out two stocks worthy
of investing.

• To practically apply the technical analysis on the selected stocks to find the right time to invest
in.

• To trade live to get better understanding of the daily movement of stock market.

• To learn about the basics of forex market.

• To trade live to get better understanding of the daily movement of currency market.

• To encourage students to take on the online courses on stock market conducted by the company.

• To promote the company and encourage investors and traders to open demat accounts with the
company.

9
 CHAPTER 2

INTRODUCTION

The research is based on “Trading in Indian stock Market and International Currency Market”.
The scope of the the research is focused on different arenas of investment opportunities in the stock
market where people can gain knowledge about stock market and how to trade on shares, commodities
in various markets on duration basis such as short term trading (buy and sell within 365 days), long term
trading (at least holding the stocks which you trade for more than 4 years) and intraday trading (buy and
sell the trade on the same day).
The capital market (securities markets) is the market for securities, where companies and the government
can raise long-term funds. The capital market includes the stock market and the bond market.

A stock market is a market for the trading of company stock and derivatives. The aim of the project is
to understand the overall equity market, to get to know the trading, clearing & settlement aspect of the
equity market. As far as this project is concerned, it will help me to understand the overall working of
the equity market & its importance to the economy of the nation. A huge amount of money flows &
millions of shares exchange hands in a single market day. This exchange of shares enables the flow of
money in & out of a firm.

BENEFITS OF TRADING

i. Return you get on our investment

ii. Second source of income

Investment Opportunity in Stock Market

Different arenas of investment in the stock market which are as follows:

• FOREX Market
• Indian Stock Market
• Mutual Funds

10
FOREX MARKET:

Every country in the world has a currency that is legal tender in its territory and this currency does not
act as money outside its boundaries. So whenever a country buys or sells goods and services from
another country, the residents of two countries have to exchange currencies. So, we can imagine that if
all countries have the same currency then there is no need for foreign exchange. For example, India
exports goods to USA; in return USA pays in its home currency that is dollars. Whereas the exporter
has to exchange the currency into Indian rupee. From the above context we can infer that in case goods
are bought or sold outside the country, exchange of currency is necessary. Sometimes it also happens
that the transactions between two countries will be settled in the currency of third country. In that case
both the countries that are transacting will require converting their respective currencies in the currency
of third country. For that also the foreign exchange is required. Particularly for foreign exchange market
there is no market place called the foreign exchange market. It is mechanism through which one
country’s currency can be exchange i.e. bought or sold for the currency of another country. The foreign
exchange market does not have any geographic location. Foreign exchange market is described as an
OTC (over the counter) market as there is no physical place where the participants meet to execute the
deals, as we see in the case of stock exchange.
About Foreign Exchange Market: Foreign exchange market (forex or FX for short) is one of the most
fast-paced 24-hour markets around. Forex trading in the currency market had been the domain of large
financial institutions, corporations, central banks, hedge funds and extremely wealthy individuals. The
emergence of the lock in period has changed all of this, and now it is possible for average investors to
buy and sell currencies easily with the click of a mouse through online brokerage accounts.

The main objective of the Company is to capture the trends, similarities and patterns in the activities and
movements of the FOREX Market & Indian Stock market in comparison to its international counterparts.
The aim is to help the investors (Current & Potential) understand the impact of important happening on
the International Forex markets fluctuations. This is especially required in current scenario when the
financial markets across the globe getting integrated into one big market and the impact of one exchange
on the other exchanges.

Trading in forex requires no brokerage, no commission, no transaction costs with no hidden costs; this
makes foreign exchange one of the least volatile financial markets around. Therefore, many currency

11
speculators rely on the availability of enormous advantage to increase the value of potential movements.
Higher advantage can be extremely risky, but because of round-the-clock trading and deep liquidity,
foreign exchange brokers have been able to make high advantage an industry standard in order to make
the movements meaningful for currency traders.

Currency prices are based on objective considerations of supply and demand and cannot be manipulated
easily because the size of the market does not allow even the largest players, such as central banks, to
move prices at will.
There are several avenues for retail customers to make investments but the minimum investment to play
safe in forex requires investment of more than Rs. 1,00,000(1500$ approx.). Individuals can use
investments instruments in financial markets by using long-term goals or short-term trading i.e. shares,
options, derivatives, swaps, commodity, and real estate, gold, silver, bonds etc., some of these
instruments give an opportunity for people to make money.

Trading instruments are available in the market because of the online facility (one is provided by
GBCFX) and many folks are using the technology to make additional money by trading in futures or
cash market along with commodity.

The markets are situated throughout the different time zone of the globe in such a way that one market
is closing the other is beginning its operation. Therefore, it is stated that foreign exchange market is
functioning throughout 24 hours a day. For Indian we can conclude that foreign exchange refers to
foreign money, which includes notes, cheques, bills of exchange, bank balance and deposits in foreign
currencies

1. COSTUMER - The customers who are engaged in foreign trade participate in foreign
exchange market by availing of the services of banks.
2. COMMERCIAL BANK - They is most active players in the forex market. Commercial bank
dealing with international transaction offer services for conversion of one currency in to
another. They have wide network of branches. Typically, banks buy foreign exchange from
exporters and sells foreign exchange to the importers of goods. As every time the foreign
exchange bought or oversold position. The balance amount is sold or bought from the market.
3. CENTRAL BANK - National central banks play an important role in the foreign exchange
markets. They try to control the money supply, inflation, and/or interest rates and often have
official or unofficial target rates for their currencies.

12
4. EXCHANGE BROKERS - Forex brokers play very important role in the foreign exchange
market. However, the extent to which services of foreign brokers are utilized depends on the
tradition and practice prevailing at a particular forex market center. In India as per FEDAI
guideline the Ads are free to deal directly among themselves without going through brokers.
The brokers are not among too allowed to deal in their own account all over the world and also
in India.
5. OVERSEAS FOREX MARKET: Today the daily global turnover is estimated to be more
than US$ 1.5 trillion a day. The international trade however constitutes hardly 5 to 7 % of this
total turnover. The rest of trading in world forex market is constituted of financial transaction
and speculation. As we know that the forex market is 24-hour market, the day begins with
Tokyo and thereafter Singapore opens, thereafter India, followed by Bahrain, Frankfurt, Paris,
London, New York, Sydney, and back to Tokyo.
6. SPECULATORS: The speculators are the major players in the forex market. Bank dealing are
the major speculators in the forex market with a view to make profit on account of favorable
movement in exchange rate, take position i.e. if they feel that rate of particular currency is likely
to go up in short term. They buy that currency and sell it as soon as they are able to make quick
profit.

13
The platform used in trading in forex and commodity market is METATRADER 5:
Meta trader 5 or MT5 is a trading platform in order to access and to execute live forex trades. It is
designed for the active trader seeking comprehensive news and analytics, real-time charts and live
quotes. It also contains packed suite of management tools, expert advisors and indicators.

Features & Requirements:

• Full account management
• Market Watch Window
• Navigator Window
• Analysis & Charting Tools
• Automated trading (Expert Advisor)
• News feed & alerts
• Account history report center
• Order execution capabilities
• One Click Trading
• Requirements : Windows XP & Later

14
Advantages of using MT5
• It supports complete price charting system.
• It gives almost all technical tools require for analysis.
• It helps in locating the chart pattern and expected future price of currency.
• It helps to execute Buy and Sale call options with a support and resistance.
• It gives the opportunity to access trades through gadgets or smartphones with enable database.

15
INDIAN STOCK MARKET:
In India there are two stock exchanges where people in this country trade.
1. NSE (National Stock Exchange).
2. BSE (Bombay Stock Exchange).

BSE has been in existence since 1875 and on the other hand NSE was founded in 1992 and started
trading from 1994. They follow the same mechanism in trading and investment like trading hours and
settlement process etc. Until the last count BSE consists of 4700 listed firms where as NSE has about
1200. Out of all the listed firms in BSE only 500 firms constitute 90% of its market capitalization, the
rest of the crowd consists of highly liquid shares.

In India exchanging at both the trades happens through an open electronic point of confinement arrange
book, in which arrange coordinating is finished by the exchanging PC. There are no market producers
or masters and the whole procedure is arranged driven, which implies that market orders put by
speculators are naturally coordinated with as far as possible requests.

Therefore, purchasers and merchants stay mysterious. The upside of a request driven market is that it
brings more straight forwardness, by showing all purchase and offer requests in the exchanging
framework. In any case, without showcase creators, there is no assurance that requests 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.

16
A BIRD'S EYE VIEW OF THE INDIAN STOCK MARKET
The securities market has two interdependent and inseparable segments.
PRIMARY MARKET
Primary market provides an opportunity to the issuers of securities, both Government and Corporations,
to raise resources to meet their requirements of Investments.
SECONDARY MARKET:
Secondary market refers to a market where securities is traded after being offered to the public in the
primary market or listed on the stock exchange.

STOCK EXCHANGE:
Stock exchange is privately organized markets, which used to facilitate trading in securities.
BSE (Bombay Stock Exchange):

The Bombay Stock Exchange (BSE) is one of the oldest exchanges across the world to provide
trading platform to investors.
NSE (National Stock Exchange):

The NSE is the 16th largest stock exchange in the world by market capitalization and largest in India
by daily turnover of trades.
17
MUTUAL FUNDS:

Mutual funds are basically financial intermediaries, which collect the savings of investors and invest
them in a large and well-diversified portfolio of securities such as money market instruments, corporate
and government bonds and equity shares of joint companies. A mutual fund is a pool of common funds
invested by different investors, who have no contact with each other.

Mutual funds are conceived as institutions for providing small investors with avenues of investments in
the capital market. Since small investors generally do not have adequate time, knowledge, experience
and resources for directly accessing the capital market, they have to rely on an intermediary, which
undertakes informed investment decisions and provides consequential benefits of professional expertise.

The reason of mutual funds is their ability to bring down the transaction costs. The advantages for the
investors are reduction in risk expert professional management, diversified portfolios, liquidity of
investment and tax benefits.

By pooling their assets in mutual funds, investors achieve economies of scale. The interests of the
investors are protected by the SEBI.

THE GOAL OF MUTUAL FUND

The goal of a mutual fund is to provide an individual to make money. There are several thousand mutual
funds with different investments strategies and goals to chosen from.

Choosing one can be overwhelming, even though it need not be different mutual funds have different
risks, which differ because of the fund’s goals fund manager, and investment style.

The fund itself will still increase in value, and in that way we may also make money therefore the value
of shares we hold in mutual fund will increase in value the holdings increases in value capital gains and
income or dividend payments are best reinvested for younger investors retires often seeks the income
from dividend distribution to augment their income with reinvestment of dividends and capital
distribution your money increase at an even greater rate. When you redeem your share what you receive
is the value of the share.

18
Benefits of stock markets

One of the obvious benefits is that they allow firms/corporations to secure long term finance that will
allow them to undertake new projects and grow. The bigger benefits however accrue to investors, who
can participate in the growth of these companies by investing in their shares.

1. The market allows investors easy entry and exit from the shares of any company at a price
determined by demand and supply.
2. Besides the ability to buy and sell, investors get access to all the relevant information about the
listed companies to make informed decisions. Stock exchanges and market regulators require
listed companies to meet strict disclosure and regulatory requirements.
3. Stock exchanges also assure investors with a reliable and secure clearing mechanism. This way,
investors are sure that the stocks they purchase will be delivered to them, even if the
counterparty to the transaction does not deliver.

19
 CHAPTER-3

ANALYSIS OF INVESTMENT OPPORTUNITIES IN STOCK MARKET

The significance of investment opportunities in stock market is very important. Everyone wants to invest
their money by the saving their expenditure for the betterment of future but don’t where to invest some
many invest in banks as deposits, some buy gold, silver, land etc. Many people don’t how to gain more
profits on short term, long term basis in stock market. This project is to study to invest in stock market
in order gain goods returns as traders in the market such as intraday (buying and selling the shares in the
same day), short term (buy and sell within365 days) and long term (at least holding for more than 4
years).

Objectives behind this study

The objectives of this project are as follows:

• Understanding the various activities in an E- Broking firm (JMarathon).

• To find the reasons, why to invest in stocks.
• To get acquainted with all the workings of online trading.
• To apply the theoretical knowledge acquired by me to the practical situation.
• To gain practical knowledge in share trading of stock market ·
• To analyse the financial market & the share movements in order to study the prospects of
investing in a particular stock or sector.
• To manage the risk while trading and analyse the market properly.

The main objective of the report is to find out the investment opportunities in stock market & challenges,
benefits of investment in stock market such as Indian stock market & Forex market, rules and strategies
to be followed while trading to gain positive profits. It focused on individual perspective/opinion
towards the market and the factors which influence them to invest.

20
This project has been divided into two phases.

PHASE –A: Collection of sources of information which is completely through secondary data such as
online internet and various investments advisory services regarding investment opportunities in stock
market which you helps you to analyse market so that you can knowledge regarding stock market where
you can gain more return on your investment and make positive profits in order to make second source of
income such as swot analysis of forex market, Indian stock market, mutual funds etc.

PHASE – B: In this phase by investing in any one of the market for trading such as forex market or Indian
stock market or mutual funds to study the practical application of trading by calculating pivot point and
using indicators such as relative strength index, moving average, Bollinger bands etc. and candle stick
patterns such as hammer, doji etc. as intraday trader in the forex market being the beginner to trade in the
stock market.

OBSERVATIONS: My observations of phase-1 in this project is first gain know knowledge regarding
investment opportunities in stock market and various market to invest your money and learn how to analyse
the market and gain theoretical knowledge. Follow the basic rules of investment in share market, challenges and
opportunities to be faced in the investment of stock market
Analysis of stock market tells us the strengths, weakness, opportunities and threats of stock market such as
Indian stock market, Forex market, mutual funds.

21
SWOT ANALYSIS OF INDIAN STOCK MARKET:

Strengths

• The first and for most thing of strength of Indian stock market is its ability to provide high
return.
• SEBI a regulatory body of Indian stock market who protects the interest of the investors.
• Large number of securities which provides medium for investment.
• Large number of Brokers who plays a role of facilitator for investment.

Weakness

• The weak point of Indian stock market is its volatility i.e. High risk.
• It is a kind of gambling where no guarantee of return and some time it depends on luck also.

Opportunities

• Stock market provides an opportunity to money lender and money seeker to Invest and use money
for their plan.
• It provides an opportunity to the investor to be the owner of the company and contribute in the
business decision of the company.
• Stock market is a kind of indicator of the economic growth of the country where it provides an
opportunity to gain according to the inflation of the country or more than that.

Threats

• There are many competitors of stock market such as post-office savings, public provident fund,
company fixed deposits, fixed deposits with bank etc. which provides fixed and assured returns.

22
SWOT ANALYSIS OF FOREX MARKET:
Strengths

• 3%-5% monthly return and 36% -60% annually which is 6 times higher as compared to
domestic market.
• 24-hour market from 3.30am to 2.30am whereas domestic market is a 6- hour market i.e.
9.15am to 3.30 pm.

Weakness

• Amount of investment to be made by an investor is higher as compared to domestic market.

• There is a risk of 30% of the total investment as per the company policies.

Opportunities

• With the times of high competition in the financial market reliability of investors
withdrawing capital is natural. In such cases companies have a great opportunity to work and
collaborate with competitor companies.
• Survey shows that only 2% of population in India invests in stocks and supplementary
market. Hence the company has an opportunity to create a market for the people who don’t
invest.

Threats

• Since any financial market are subjected to market risk, requires due guidelines with SEBI,
RBI& corresponding matters non-compliance of which welcomes criminal proceedings.
• Since company deals with FOREX currency market for which compliance with international
law.

23
SWOT ANALYSIS OF MUTUAL FUNDS:
Strengths
• Large numbers of potential customers are base.
• Government support by way of tax concession for MF investors Volatility of bank interest
rate.
• Better scope for accessing market information Offer liquidity to the investors at any time.
• Offers variety of products to the investors.
• The size of the market is large.

Weakness
• Distribution network is confines only to metro cities.
• Poor service conditions.
• Poor participation of retail investors.

Opportunities
• Huge untapped market in semi-urban and rural areas.
• Using on-line mode of trading systems.
• Investment opportunities abound in the international market.

Threats
• Increasing competition among the players.
• High level of volatility in the stock market.
• Possibility of more stringent regulations by SEBI, RBI, AMFI, etc., in future.

24
 Impact of Stock Exchanges in India

Following are the changes due to the existence of Stock Exchange:

Mobilization of savings: The savings of the individuals are easily mobilized in various types of industries.
Therefore, the amount of investments in the stock exchange increases.

Increases in rate of return: On the investment the investors get more rate of return i.e. the market rate and
not the normal bank rate, which is much lower.

Availability of funds for growth of industries. The amount of funds required for the growth of the
industries is easily available whereas there was always shortage of capital.

Diversification of industries: Due to the availability of funds the industry becomes financially strong and
has scope or diversification due to which they can become more strongly in the market.

Increase in employment: Growth and diversification of industries leads to increase in the amount of work
and thus increase job opportunities for the unemployed.

Increase in standard of living: The increased job opportunities and the availability of goods of higher
quality have increased the standard of living of people.

Increase in GDP: Increase in business in overall all industries has automatically leaded to the rise in GDP
of the country and thus its prosperity.

Decrease in Trade Deficit: Due to growth in industries the country is becoming self-sufficient leading to
decrease in trade deficit.

25
 INVESTMENT OPPORTUNITIES IN INDIAN STOCK
MARKET

The main reason for investors to enter the Share market is to make profits. Investors buy shares for the
specific reason of getting income. Though investing in shares brings with it a number of risks, it can
reap good returns over the long term. Investors receive dividends from the overall profit that the
company makes. Dividends can be given the form of cash, more stocks and securities. Investing in shares
also allows you to sell anytime you wish, thus providing easy access to your money, in case you need
cash for an urgent expense.

Share trading gives investors an opportunity to own the company. The extent of ownership of a company
is in relation to the percentage of stocks you own. As an owner, you are bound to receive company
performance reports, news and latest updates.

26
 Know the Best Investment Opportunities in Shares

Shares offer tremendous investment opportunities. There are two ways of earning money through
shares—one is you get a part of the company’s profit every year, which is known as the dividend. This
acts as a source of regular income. Secondly, if the company expands, your shares become more
valuable, which gives your investment an additional worth. You can trade shares through a traditional
stockbroker, an online broker or an investment manager.

Shares also offer divisibility where you sell a part of your shares in case you need cash for some purpose.
People also buy shares to have a stake in companies which are likely to perform well, thus giving them
a sense of ownership. It also helps to create a diverse investment portfolio. Buying shares also allows
easy access to your money as you can easily buy and trade shares without having to cough up a penalty.

Earn Profits by Investing in the Share Market

The ultimate goal of investing in share markets is to earn profits. You can make quick bucks from long-
term investments by keeping abreast of the latest happenings in the share market, and the economic and
commercial scenario of the country. Above all, you have to identify the current competitive and best -
performing industry and sectors. Choosing the best and right shares is another important aspect. In order
to identify which stock to invest in, an investor needs to judge the financial strength of the company by
analysing the sales revenue, EPS, liquidity of the company, debt and valuation of the company. Once
you’ve identified which shares you want to invest in, you can earn profits through dividends and long-
term investments. Dividends are paid to the investor as part of the company’s profits and act as a source
of regular income. If the company expands, your shares become more valuable, which gives your
investment an additional worth.

27
 Basic Rules Of Investment in Share Market
The stock market has fascinated people for over a century now. Stocks are even seen by many as the
quickest way to get rich. However, there are indeed very few investors who see the stock market and
stocks in the right perspective. To most, these are just tickers of prices going up and down. If your ticker
goes up, you make money. If it goes down, you lose. That's both the start and the end of the story.
But the thoughtful investor is more discerning than that. He looks at stocks not just as quotes going up
and down, but as real, live businesses in action. Go one step further and one realizes that stocks can be
one of the most fabulous asset classes to invest in. They are a vehicle and mechanism that provides
ordinary individual investors with some amazing advantages and opportunities. Advantages that are
unparalleled by any other asset class.

Reasons to invest in stocks:

Here are the reasons why to invest in stocks, if you've not invested in stocks yet, you will definitely find
the reason below and want to start investing in stocks.

1. Opportunity to own an existing business: When you buy a stock, you get to buy a stake
in an already existing business with the huge advantage that business already has all its employees
and infrastructure in place, and is already up and running. You straightaway get a claim on the
business’s future profits (in your proportion of ownership) without any of the headache or effort
involved in running it.
2. Liquidity: Buying stocks, you instantly rid yourself of all the above problems. You can instantly
buy and sell your stake in the business with a single phone call or a few clicks of your mouse.
3. An astounding number of choices: You can buy only if you really like something. It would
be a true to say that you will try to find the most profitable business being sold at the cheapest price.
But the point is that the stock market puts you in a position where it enables you to make such a
choice.
4. Little money required: Think about this. Even if you plan to start a small grocery store in your
neighborhood, you will have to stake a substantial amount of money on the success of just one
venture that may or may not take off as planned. Compare this to buying a stake in a business in
the stock market. You can get a piece of the action with even just a few hundred rupees, let alone
lakhs and crores.

28
5. No hassles of negotiations and brokerage: With stocks, the price is right there for you to
see. No hassles of negotiating with the opposite party. The brokerage is usually pretty low too
(usually a maximum of 0.5%). This helps ensure that a substantial part of your investment is not
eaten up by frictional costs.
6. The prospect of a higher return: One thing at the very core of choosing to run a business
instead of investing your money in a bank fixed deposits the expectation of higher returns on your
investment. Thus, businesses usually strive to earn returns much higher than your run-of-the- mill
investments. The trick is to buy a stock that has shown that it can accomplish the above with
reasonable certainty, and to buy it at a good price.

29
Factors to be considered by longer-term investors:

1. Business model
Undoubtedly, the very first thing that any investor must look at is the business/sector that the
company operates in.

2. Management

The management is another extremely important factor to consider before investing in any
company. At the end of the day, it is the management that will be the driving force behind the future
direction and success (or failure) of the company.
3. Competition in the industry

The company's competition is another major factor that you as an investor should look at before
deciding to buy (or not to buy) that company's stock.

4. Financial analysis

This, of course, is one of the major factors that most investors already look at. It includes doing a
detailed study about the company's financial position and performance over a reasonably long
period of time. Such a study is commonly known as 'fundamental analysis'.

5. Dividend yield

Dividends are a form of income from shares and regular dividend -paying companies do provide
some comfort that their profits and cash flows are stable enough for them to keep paying dividends
each year.

6. Value

The last step in deciding whether or not to buy a stock - the valuation phase. While the business
model, management, fundamentals, and market positioning of the company may be the best, if the
stock is trading at valuations that are unwarranted, then it is not worth buying the stock.

At the end of the day, we believe that investing in shares is all about conviction - if you are not
convinced about the company, then do not stake your hard -earned money.

30
 CHAPTER-4
INTRODUCTION OF THE COMPANY/WORK

After 8 years in the financial services industry, in 2016, JMarathon, a boutique advisory firm based on the
principles of independence, transparency and client advocacy came into existence. JMarathon’s utmost aim
is to assist clients with dedication and integrity so that we exceed their expectations and build enduring
relationships. It provides comprehensive financial planning, intense training, overall wealth management,
and strategic investment advice to individuals, entrepreneurs, and families who seek unbiased, intelligent
advice and counsel. It offers technology-based services to its clients to effectively monitor their portfolio
and help them in reaching their financial goals. It focuses at being the most reliable, prompt and efficient
provider of financial services. It has become a trusted and credible source of unbiased objective financial
adviser and counsel to help individuals and families properly manage their wealth and other financial
matters.

➢ Company’s Vision and Mission

To be the most trusted & respected professional services firm recognized by our clients
delivering excellent services, which is value for money & more than their expectations.

To develop meaningful & life long relationship with the clients by providing them the highest
quality services & address every aspect of their financial related issues.

➢ Origin and growth of company

After 8 years in the financial services industry, in 2016, JMarathon, a boutique advisory firm
based on the principles of independence, transparency and client advocacy came into existence.

Company core values:

• Passion: "To learn & earn"

• Integrity: There is no shortage of analysis interested in investing.

• Pursuit of Excellence: To provide training and education to create awareness programs on

investment by experienced personalities.

• Accountability: Compliance & Due diligence with Regulators is on top priority.

• Collaboration: Have tie-ups with various trading agencies domestic & International.

31
 ➢ Various departments and their functions

ADVISORY SERVICES
A person can't be expert in every field and hence there are certain points in life where we need to seek
advices. There are many pros and cons of investing in stock market, so we have a team of qualified
professionals who are available for clearing every single doubt and query you have regarding your
investment. Even though you are into trading since long there is always scope for improvement. Since
not everyone is good in trading so investing without experience and knowledge is a Herculean task. We
make it easier for you by offering our best guidance and sharing our best experience because the
company believes in retaining our existing customers and always providing them more than promised.

FINANCIAL SERVICES

In today's rapid scenario we often come across things that postulates that "MONEY TALKS". Stock
market is always uncertain in nature, the higher the return the greater risk of losing money. Handling
customized portfolios, ensuring better and profitable returns and maintaining good customer relations is
something that company focuses on. The company offers you to make stock market as a secondary
source of income so that you never run out of funds. We strongly believe that "Making money is a hobby
that will complement any other hobbies you have beautifully". We have a number of proficient,
experienced and knowledgeable professionals who helps you in matching your income with your desires.

32
 RISK MANAGEMENT

When we talk about stock market everyone wants to hit the jackpot but as we know it's not everyone's
cup of tea. Things might nervous you since the market's fluctuations are uncontrollable. Risk
management is basically concerned with evaluation of financial risks along with identification of
solutions to abstain or lessen their impact. JMarathon Advisory Services Pvt. Ltd. offers you to
diversify your investments by creating an investment portfolio. It goes in a saying "Higher the risk,
higher is the profit", but only calculative risk ensures your survival in market. The company creates
portfolios using various risk analysis tools in order to safeguard the interest of investors.

ii. What amount you bet for the market and what return you expect in the market is very
important
iii. People play greed or bad leverage they lose money very badly. So, risk management tells
how to use the leverage by giving the broker.
iv. You have to trade accordingly to risk management.

TRAINING & DEVELOPMENT

The moment we enter our adulthood we look for sources of making money. A favourable and profitable
outcome can't be expected by relying on luck, as fortune doesn't smile on everyone and investing
randomly would be injudicious. If we talk about quick and easy way one thing that pops out of every
mind is "Stock Market". Training and Education is something that is mandatory in every field. A training
and education program is something that will ensure your weaknesses are converted into your strengths.
The company offers your various courses related to stock market and trading so that along with the
basics you gain expertise knowledge, experience and growth in the same.

33
 ➢ Organization chart of the company

Jmarathon Advisory Services Private Limited has two directors - Gopal Krishna and Megesh Marappa.

The registered office of Jmarathon Advisory Services Private Limited is at NO 960/1, DM COMPLEX,
5TH B CROSS, HRBR LAYOUT,1ST BLOCK, KALYAN NAGAR POST, BANGALORE, Belgaum,
Karnataka.

The Corporate Identification Number (CIN) of Jmarathon Advisory Services Private Limited is
U74999KA2018PTC116216. It's authorized share capital is INR 5.00 lac and the total paid -up capital is
INR 1.00 lac.

The last reported AGM (Annual General Meeting) of Jmarathon Advisory Services Private Limited, per
our records, was held on 30 December, 2019. Also, as per our records, its last balance sheet was prepared
for the period ending on 31 March, 2019.

• 10 September, 2018
Director
• GOPAL KRISHNA

• 10 September, 2018
Director
• MEGESH MARAPPA

34
 Brief description of the work done

➢ Position of Internship and roles

As the final part of summer internship at Jmarathon Advisory Services, analysis of market was carried out
by all the interns in a specific area assigned to them. I was assigned the area of technical analysis of
Cash/Equity segment in NSE.

➢ Activities/ equipment handled

For this purpose, stocks of banking sector companies were taken into account and with the help of candle
stick chart, different patterns in these stocks were explored and the future expected trend in these stocks was
recommended. Also, BANKNIFTY index of NSE was also studied. Bank Nifty represents the 12 most liquid
and large capitalized stocks from the banking sector which trade on the National Stock Exchange (NSE). It
provides investors and market intermediaries a benchmark that captures the capital market performance of
Indian banking sector.

35
Weekly trend on Nifty 50
Nifty price has been trading above all major averages, leaves 200 DMA only. The 200 DMA is laid down
at 10580 which may be a crucial resistance for the market in the immediate term.
Nifty immediate target is 10270-10320, closing above 10320 will lead it for the next target of 10550-10580.
Else, it may test its downside support of 10000-9940.

36
F&O analysis
According to open interest data, maximum call open interest stands at 10500 followed by 10300, and put at
10000 followed by 9800 suggests a narrow trading range for the index. PCR stands at 10000 validate it as
a strong support level.
Weekly trend of Bank Nifty

37
 ➢ Challenges faced and how those were tackled

After being trained in theoretical aspects of market, each intern was assigned a job which was focused to
expose them into the corporate world. Now, Sales work was assigned with an objective of converting clients
for various finance market services offered by the company. All the calls were forwarded through CRM. All
interns were assigned a job to call various individuals and try to persuade them into “subscribing to online
courses”. Following challenges were faced during this time:

• Looking for right segment of people: This challenge is the most basic one which I handled by being
smart. I first of all approached the people who are pursuing finance within my university.

• Understanding client requirements: Everyone has their own set of preferences with regards to the
time they can give to the course and any specific thing they want to learn which was handled by me
by providing them the flexibility of accessing the course anytime, along with live sessions which
specifically cater to the doubts and other questions.

➢ Giving the talk on how the program will benefit them: As people had taken up other courses too,
providing them with the benefits of this course was the only way to get them on board which was
done by me successfully by listening to their side and just not me talking, making a conversation.

38
 ➢ Learning outcomes

In the duration of the project I learnt about investment in stock market and also achieved various objectives
of the study such as

• Understanding the various activities in a Broking firm (JMarathon) which helps in advising
their clients where to invest and how to stop losses.
• I learned the reasons, why to invest in stocks.
• I learned the application of theoretical knowledge of trading to the practically in the stock
market i.e., I have invested in forex market and started trading where I face losses and also
profits in intraday trading
• I learned analysis the financial market & the share movements in order to study the prospects
of investing in a particular stock such as gold, currency etc.
• I learned how to analyse the market using technical analysis, fundamental analysis and
sentimental analysis which helps manage the risk while trading.
• I learned how calculate pivot point and analyse candle patterns which plays a important role
in a buying and selling to stop losses.
• I have learned how to be patience while trading and control greed or bad leverage which
leads to losses which faced practically.

➢ Data analysis
Following is a statistical study of the work done by me on job.

In the first week of job, 65 leads were registered by me in the company out of which 20 became
clients for services offered. Presented below is a detailed view of the statistical study.

39
 CONCLUSION

This internship program has provided valuable exposure and ample opportunity to explore the exciting
world of Stock Markets. Started right from the theoretical stage, it went through a variety of work
involving ascertaining the possible fluctuations and trends in market; technical and fundamental analysis
of market; marketing various services offered by the company; and providing live market updates to
customers.

It has not only provided me a learning opportunity, but it also has provided me with an inspiration to
proceed in the chosen path and delivered a sense of purpose and will to achieve my long-term goals and
a clear sense of direction as to my future course of action.

Many things remain unspoken and many tasks are tedious and require hard work and persistence, but it
actually is the amount of involvement and dedication thrown up during the project. Eventually, I had a
great time working with Jmarathon Advisory Services as this was, as I felt, the perfect platform for
having an insight on the structure of Indian Stock Market. It also has provided theoretical and practical
knowledge about online trading.

40
 REFERENCES

https://www.jmarathonservices.in (Accessed on 18th June 2020).

https://gbcfx.com/metatrader-5-trading-platform/#windows (Accessed on 19th June 2020).

www.google.co.in (Accessed on 20th June 2020).

www.wikipedia.com (Accessed on 21st June 2020).

https://www.equitymaster.com/timeless-reading/31/investing-in-share-market (Accessed on 22nd June

2020).

https://www.angelbroking.com/knowledge-center (Accessed on 23rd June 2020).

41
42