Stock trading basics ppt
If the company's profits go up, you "share" in those profits. If the company's profits fall, so does the price of your stock. If you sold your stock on a day when the price of that stock falls below the price you paid for it, you would lose money.
In the stock market, prices rise and fall every day. When you invest in the stock market, you are hoping that over the years, the stock will become much more valuable than the price you paid for it.
What is the Stock Market? Stocks are units of ownership in a company. Companies sell stock to get money to — Research better ways to make things Create new products Improve the products they have Hire more employees Enlarge or modernize their buildings So just as the federal government sells bonds to raise money, businesses raise money by selling stock.
How it works When you buy stock, you become a shareholder , which means you now own a "part" of the company. Stock prices can rise and fall In the stock market, prices rise and fall every day.
The March month auto sales numbers and the rupee and crude oil price movement are also important. Although the indices reacted positively last week , the short term trend still remains down.
Whats important to watch is whether the indices can break the key resistance conclusively. The key resistance points or the Nifty and the Sensex are poised at 10, and 33, These are key hurdles and as long as the indices trade below these levels , it would be difficult to judge whether there is a confirmed uptrend or not.
As expected, the markets were influenced by global cues last week. The week that passed by witnessed the global markets skidding on the prospects of a trade war. Another factor that contributed to the downfall of the markets was the resultant rise in crude oil and gold prices.
It is to be remembered that both the Nifty and the Sensex had registered a 4. Going ahead, the short term trend continues to be down. The Nifty closed below 10, for the first time since last October and it has breached the day moving average which was poised at 10, The Sensex too, has breached all the immediate support levels including the day DMA. It would be unrealistic to expect any strong positive movement this week considering that the March derivatives expiry is coming up.
A further fall in the indices will reinforce the downtrend and bearish sentiments will become more and more prominent. The equity markets will be shut down on Thursday and Friday on account of Mahavir jayanthi and Good Friday.
Going ahead, the US fed meeting is the big event coming up. Experts say that a rate hike is possible. The crude oil price movement is also important to watch. As far as the Nifty is concerned, it is hovering just above the day moving average at 10, Multiple closing below the moving average can drag the index down to 9,, levels in no time. So traders need to be extra cautious in taking positions. For the week ahead, we expect the Sensex to trade in a range of 32,, and Nifty in a range of — A bullish momentum is hard to come in the present scenario.