About market for newbies

 

Nifty = S&P CNX NIFTY is the benchmark Index of top 50 blue chip (good) listed companies on the National Stock Exchange of India
Sensex = Sensitive Index is the benchmark Index  of top 30 blue chip (good) listed companies on the Bombay Stock Exchange of India. Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asia’s first Stock Exchange and one of India’s leading exchange groups. More than 5000 companies are listed on BSE making it world's No. 1 exchange in terms of listed members

Useful Glossary for any trader/investor:

• Trade = A Buy order or a sell order
• Equity = Also known as shares, scrips, stock, cash market
• CMP = Current market price is the price of the particular stock at that instant of time.
• Market order = current price demanded by the buyer or seller
• Limit order = your specified price at which you want to trade the stock.
• Order quantity = the number of shares you want to buy or sell
• Disclosed quantity = the number of shares you want other people to know that you are trading. (not mandatory to be entered while placing an order)
• Limit = Money you have in your account to trade

Example:
Mr.Vinay wants sees price of Reliance Industries at 850. This is the CMP. He wants to buy 100 shares at 849.50 but he wants the other side of market participant (seller) to know that he wants only 25 shares. Then in this case:

1. CMP = 850
2. Limit price = 849.50
3. Order Qty = 100
4. Order Disclosed Qty = 25.

Thus, whenever Reliance reaches (touches) 849.50, Vinay's buy order will get executed in batch of 25 shares each time (at same price) until all 100 shares are bought!

• Period on chart to be referred  = Candles are of  2min, 5 min, 15min, 30min, Daily chart, weekly chart.
• Volume traded = Total number of shares bought + sold during the specific time period. High volume means good liquidity.
•  EPS = Earnings per share is the total net profit of a company in a year divided by total free float
• PE ratio = Price to earnings ratio is the CMP divided by EPS. Higher EPS means more demand for the shares in market. Lower EPS signifies more value hidden in share price and room to appreciate exists.

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NIFTY Composition:  
(Base date: Nov03, 1995; Base value: 1000) 
Current value: 6126. 
This means since Nov -1995 to Jan-2014, Nifty appreciated by 512.6%

 http://www.nseindia.com/products/content/equities/indices/cnx_nifty.htm