National Pension Scheme- NPS

NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings
account. Under the NPS, the individual contributes to his retirement account and also his
employer can also co-contribute for the social security/welfare of the individual. NPS is
designed on Defined contribution basis wherein the subscriber contributes to his account, there
is no defined benefit that would be available at the time of exit from the system and the
accumulated wealth depends on the contributions made and the income generated from
investment of such wealth.

The greater the value of the contributions made, the greater the investments achieved, the
longer the term over which the fund accumulates and the lower the charges deducted, the
larger would be the eventual benefit of the accumulated pension wealth likely to be.
Contributions + Investment Growth – Charges = Accumulated Pension Wealth
(Individual contribution as well as co-contribution from Employers)

Group of NSE / BSE stocks A / B / G / E / F / T / TS / S / Z / I /M

  

BSE /NSE Groups of Stocks

Scrips in the Equity Segment into 'A', ‘B’,'G','E', 'F','I','M','T', ‘S', ‘TS' and 'Z' groups on certain parameters.

Group A
Market capitalization is one key factor in deciding which scrip should be classified in Group A.A includes all stocks that are actively traded in the market.  More information on Group A can be found here.

Group G
G includes all governmental securities for retail investors

Group F
The "F" Group represents the Fixed Income Securities.

Group T
The "T" Group represents scrips which are settled on a trade-to-trade basis. Trade for Trade segment is a segment on which no intraday trading is allowed. All trades result in delivery.

Group TS
The "TS" Group consists of scrips in the "BSE-Indonext" segment, which are settled on a trade-to- trade basis as a surveillance measure.

Group S
S group consists of scripts from “B1” & “B2” group on BSE and companies listed on regional stock exchanges having capital between 3 cr. to 30 cr.. All trades in this segment are done through BOLT system under S group.

Group B:
All companies not included in group ‘A’, ‘S’ or ‘Z’ are clubbed under this category B. The B category includes stocks which don't form part of any of the above Equity groups.

Group F
F group which denotes the Debt market segment.

Group G
Trading in Government Securities by the retail investors is done under the "G" group.






Group M
M/MT group consist of stocks forming part of BSE's SME (Small & Medium enterprise)
 
Group I
I group consists of Interest rate underlying.

Group E
E group consisting of ETF's (Exchange Traded Funds)

Group Z
Z group  includes companies which have failed to comply with its listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with both the depositories, viz., Central Depository Services (I) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for dematerialization of their securities.

What does EQ, BE,BL,BT, GC,IL,IQ mean ?

These symbols denote various types of series traded on the NSE (National Stock Exchange).

EQ - This series allows trading in  Intra-day transactions for equity permissible. Normal trading is done in this category.
BE -  This series does not allow trading in  Intra-day transactions  Shares falling in the Trade for Trade or T segment are traded in this series.
BL -  This series is for facilitating block deals- Order should have at least 5,00,000 shares.
BT -  This series provides an exit route to small investors having shares in the physical form with a cap of maximum 500 shares.
GC -  This series allows Government Securities and Treasury Bills to be traded under this category.
IL -    This series allows only FIIs to trade among themselves. Permissible only in those securities where maximum permissible limit for FIIs is not breached.
IQ -   This series allows  Qualified Foreign Investors to trade in companies without the prior approval of the depositories.GC

These symbols denote various types of series traded on the NSE (National Stock Exchange). - See more at: http://www.iforp.in/2013/01/what-does-eq-be-bl-bt-gc-il-and-iq-mean.html#sthash.TKfZHNkE.dpuf

Swing Trading

What is Swing Trading?

Swing Trading is to ride the momentum in the direction of the trend.Swing traders hold stocks for days or weeks playing the general upward or downward trends.It is also called momentum trading. You can roll over your money after making short term gains. In a short span of time, you can build up  money.

How does Swing Trading work?

The basic strategy of Swing Trading is to select a strongly trending stock after its period of consolidation or correction. These stocks rebound back after correction. One can sell the stock after 3-10 days depending on the percentage profit bench marked between 3 to 5%. The money can be roll over again in new stocks and trends. One can build a pool of stocks , study their patterns and ranges.
   

What are the benefits of Swing Trading?

Swing Trading works best for part-time traders as it does not require that full time focus and attention like in day trading.  Swing trader focus on the momentum and trends of stocks. There are chances of bigger gains as they are bought after consolidation or correction. You also do not require a high speed connection to do swing trading. You can call your trader to just sell of stocks and even if you do not have high speed  connection , you can sell at a desired rate as you are not trading on day's momentum.You can place an order at the start of the day and it it can be executed in the day when desired price is reached.

NSE – Classification of Shares

(This is an excerpt from the Equity Research Module of National Stock Exchange)

  

NSE Classification of Shares:

NSE broadly classifies stocks in six categories namely A, B, T, S, TS and Z. The classification of stocks is done on the basis of their size, liquidity and exchange compliance and, in some cases, also the speculative interest in them.

Fixed Deposit

1. What are fixed deposits ?

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.  It allows you to invest money for a fixed period of time and most of the time at a fixed rate of interest.It may or may not require the creation of a separate account.

Support and Resistance Levels

Support and resistance are referred in technical analysis.

Support
A support level is a price level where the price stop further going down. The price then is more likely to go up from this level. 

Calculate PIVOT POINTS for Resistance and Support Level of a stock

This is high level way of calculating support and resistance level.

PIVOT POINT = P

H = PREVIOUS DAYS HIGH
L = PREVIOUS DAYS LOW
C = PREVIOUS DAYS CLOSE

Calculate Range for Stocks for Intraday Trading

There are different strategies for selecting stocks for intraday trading.  i use the historical data strategy method.  It will give you a fair idea of the range the stocks ranges for most of the days.