How to Open a Demat Account| Documents Required For Demat and Trading Account| Online Demat account|

 

In this video, I have explained: What is Demat Account? - Demat Account kya hota hai? Why is a Demat Account required? What is Trading Account? Why is a Trading Account required? Where should we open Demat Account? - Demat Account kaise khole? How do demat accounts work? How do Trading Accounts work? What is Dematerialisation of Shares? Basic knowledge about Demat and trading account for beginners? Should we open Demat Account and Trading Account separately? Can we do Intraday trading without having Demat Account? Can we do long term investing in equities without having Demat Account? Can we do futures trading, options trading & commodity trading through discounted broker’s account like: Zerodha Demat Account or Upstox Demat account?

Weekly update on Nifty & Bank Nifty

From the last couple of weeks, Bank Nifty traded weak as compare to Nifty Index . IT, Pharma, Auto, and Metal may lead the market for the further upside rally but be cautious in banking stocks at lower levels or near to support level.

Last week, Nifty 50 closed 2.08 percent lower as financial stocks underperformed. Heavyweight Reliance too corrected a little bit and in results, Nifty Index settled lower on a weekly basis.

Weekly & Intraday Technical View on Nifty and Bank Nifty

 

Upcoming week Nifty 50 price may consolidate from 10856 on the downside to 11165 on the upside. 3^rd wave stands at 11030 will play immediate support. Any closing below 11000 may extend its correction to 10861 and medium-term support will lie on 10850 marks where stands on a 60-minute chart. An index is likely to follow all the above-mentioned levels in the upcoming week.

Nifty Implied Volatility also consolidated for most of the week and closed marginally lower. PCR shifted its support to 11000. Lower NIFTY IV and Higher PCR indicate supports for the market.

Technically, Index price has been trading in a range of 300 points from 11040-11350, either side move will give the next 200-250 points in the respective direction.

Trend: Support down at 11000, Closing below 11000 may extend its down move to 10920-10850. Above 11100 is may test 11200-11340.

Nifty strategy for the week

Support 11000, Resistance 11200

Either side of close will give the next 100-150 points in the respective direction.

Bank Nifty

Financial index Bank Nifty closed down 4.51% at a weekly level.

Technical View

Price has recovered with the “Double Bottom” bullish price pattern on a daily scale, which indicates a target of 23500 in upcoming trading sessions. Immediate resistance down at 23100. Trading above 23100 will lead it for 23300-23500, Else it may test 21300 marks. Trading below 21300 may correct it further for 20800-20100.

Bank Nifty strategy for the week

Support 21300, Resistance 23100

Likely to consolidate in a range.

What is IPO?

इनिशिअल पब्लिक ऑफरिंग (आयपीओ) ही प्रक्रिया म्हणून परिभाषित केली जाऊ शकते ज्यामध्ये खासगी कंपनी किंवा कॉर्पोरेशन त्याच्या भागभांडाराचा काही भाग गुंतवणूकदारांना विकून सार्वजनिक करू शकते. आयपीओ साधारणपणे नव्या इक्विटी भांडवलाची टणक कंपनीला मदत करण्यासाठी, अस्तित्त्वात असलेल्या मालमत्तेची सुलभ व्यापार सुलभ करण्यासाठी, भविष्यासाठी भांडवल उभे करण्यासाठी किंवा विद्यमान भागधारकांनी केलेल्या गुंतवणूकीवर कमाई करण्यासाठी सुरू केले जाते.

संस्थात्मक गुंतवणूकदार, उच्च निव्वळ किमतीचे व्यक्ती (एचएनआय) आणि जनता प्रॉस्पेक्टसमधील पहिल्या भागातील शेअर्सच्या तपशीलात प्रवेश करू शकते. प्रॉस्पेक्टस हा प्रदीर्घ दस्तऐवज आहे ज्यात प्रस्तावित प्रस्तावांचा तपशील आहे.

एकदा आयपीओ झाल्यावर फर्मचे समभाग सूचीबद्ध केले जातात आणि मुक्त बाजारात मुक्तपणे व्यापार केला जाऊ शकतो. शेअर बाजाराच्या निरपेक्ष दृष्टीने आणि एकूण भाग भांडवलाच्या प्रमाणात, समभागांवर कमीतकमी फ्री फ्लोट लागू होते.

आयपीओचे प्रकार

आयपीओचे दोन सामान्य प्रकार आहेत. ते आहेत:

निश्चित किंमत ऑफर

काही कंपन्यांनी त्यांच्या शेअर्सच्या सुरुवातीच्या विक्रीसाठी ठरवलेल्या इश्यू प्राइज म्हणून प्राइक्ड प्राइस आयपीओचा उल्लेख केला जाऊ शकतो. कंपनी सार्वजनिक केलेल्या शेअरच्या किंमतीविषयी गुंतवणूकदारांना समजते.

एकदा हा मुद्दा बंद झाल्यावर बाजारातील समभागांची मागणी काय आहे हे समजू शकते. जर गुंतवणूकदारांनी या आयपीओमध्ये भाग घेतला असेल तर त्यांनी अर्ज भरताना समभागांची संपूर्ण किंमत दिली आहे याची खात्री करुन घेतली पाहिजे.

बुक बिल्डिंग ऑफर

बुक बिल्डिंगच्या बाबतीत, आयपीओ सुरू करणारी कंपनी गुंतवणूकदारांना समभागांवर २०% प्राइस बँड देईल. इच्छुक गुंतवणूकदार अंतिम किंमतीच्या निर्णयापूर्वी शेअर्सवर बोली लावतात. येथे, गुंतवणूकदारांनी खरेदी करण्याचा आपला हेतू असलेल्या शेअर्सची संख्या आणि ते प्रति शेअर देण्यास इच्छुक असलेली रक्कम निर्दिष्ट करणे आवश्यक आहे.

सर्वात कमी शेअर्सला फ्लोर प्राइस म्हणून संबोधले जाते आणि सर्वाधिक स्टॉक किंमत कॅप प्राइस म्हणून ओळखली जाते. समभागांच्या किंमतीबाबत अंतिम निर्णय गुंतवणूकदारांच्या बोलींद्वारे निश्चित केला जातो.

Stock Market vs Mutual Fund

Differences between Stock Market to Mutual Fund

Volatility
When you invest in a single stock or bunch of stocks (3-5 scrips), the change in it’s value is very high. On a given day it can be extremely volatile. It can give you 20% return and sometimes -10% loss also depending on the environment. This can be very exciting and at the same time very disheartening and gives you a feeling that you need to “act fast”.

Mutual fund on the other hand is not that much volatile by nature, as the diversification is very large and at a time 50-100 stocks are covered. Different kinds of stocks from different sectors and market capitalization are involved in mutual fund and the overall change in value is thus less volatile (other than extreme days).

Return Potential
This is very much in line with the above point but still let’s look at it separately. There are lot of success stories where someone got quick rich by investing in equities directly and it can happen, but those are rare happenings and require lot of work and analysis, patience and belief in what you have picked. If you want superb returns in short time and you believe you can research well, you can go for stock investing directly but then risk is also more.

Mutual funds are known to deliver good returns (not in line with stocks, but still very good). So you can expect handsome returns from mutual funds but not unbelievable like stocks return. This is mainly because the money is diversified across different stocks (read ideas) and chances of all of them becoming a super success in short time is impossible.

Monitoring Required
Stock investing is a personal affair and you are doing it on your own the decision of what to sell and what to buy is on you. Even in case of long-term investing, you might have to keep an eye every quarter or yearly unless you have really spent some good time in picking the good stock. You need to also keep an eye on news and sector specific developments.

Monitoring in mutual funds is relatively low because the job of monitoring is anyways done by the fund manager who is paid SALARY to filter through the fluctuations. He constantly adds and removes the stocks from the portfolio. This can be a positive point, but sometimes it can be a negative point also if there is too much of churning.

SIP Investment
Mutual funds are known for possibility of SIP (monthly investment). SIP in mutual fund works and is recommended as a great way for a salaried person to invest in equity markets for long-term basis without understanding the working of equity markets.

However SIP in stocks do not work. Yes, some companies provide you the facility of SIP in stocks, but it’s a terrible concept. There is no diversification and SIP in a particular stock does not make sense because the risk is with single stock. A stock can be in a bad phase for years and decades, whereas in a mutual fund the bad performing stock is weeded out.

Asset Class Restriction
Stocks investing is restricted to Stocks only. You can choose a large cap stock, mid cap stock or small cap stock, but finally it will be equity asset class. However, mutual funds can invest in mix of asset classes. There are equity funds, debt funds, gold funds, Mix of Equity and debt also. To top up, even balanced funds are there which can adjust the asset allocation on its own, so in a way mutual funds are more superior in terms of features compared to a single or bunch or stocks.

So what is the difference?

First things first; the most obvious difference between a mutual fund and the stock market is that whereas the mutual fund is a low risk low profit form of investment, the stock market is a high risk high profit one. The returns in the stock market are much higher and quicker, and given the precondition that you are able to dedicate your full unbiased time to the stock market, there is no better option available. But at the same time, the risks are double. So, if you do not have the time, never invest in the stock market. As you know that stock market is full of risks but if you manage to overcome it, you can be successful.