Stock Market Mastery – Zero Se Hero Stock Market Fundamentals

- August 13, 2025

📘 Title: Stock Market Mastery: Zero Se Hero

✍ Author: Haricharan Singh

Stock Market Kya Hai?

Stock market ek aisa organised platform hai jahan buyers aur sellers shares, bonds, aur other securities ka exchange karte hain. Simple shabdon me, yeh ek bazaar hai jahan companies apne ownership ke chhote-chhote hisson (shares) ko public ko bechti hain.

Purpose of Stock Market

Companies ko capital raise karne ka mauka milta hai (via IPO).
Investors ko apne paise ko multiply karne ka option milta hai.
Economy me liquidity ka flow bana rehta hai.

Example:
Agar Reliance Industries apne expansion ke liye ₹10,000 crore raise karna chahe, toh wo apne shares stock exchange par list karegi. Public in shares ko kharidegi, aur Reliance ko paisa milega.

Primary Market (IPO)

Primary market wo jagah hai jahan company pehli baar apne shares bechti hai. Is process ko Initial Public Offering (IPO) kehte hain.

IPO Process:

Company SEBI se approval leti hai.
Prospectus issue hota hai jisme business details hoti hain.
Investors IPO me apply karte hain.
Allotment ke baad shares stock exchange me trade hone lagte hain.

Example:
Zomato ne July 2021 me IPO launch kiya tha, jisme lakhon logon ne apply kiya. Listing ke baad, uska price IPO price se zyada gaya.

Secondary Market (Trading)

Primary market ke baad shares Secondary Market me aate hain — yeh wahi jagah hai jahan hum aur aap daily trading karte hain.

Features:

Trading NSE (National Stock Exchange) aur BSE (Bombay Stock Exchange) par hoti hai.
Price demand-supply ke hisaab se badhta-gharata hai.
Yahan par profit earn karne ke liye log short-term trading aur long-term investing dono karte hain.

Tip:
Aap secondary market me kabhi bhi buy/sell kar sakte ho — lekin successful hone ke liye strategy zaroori hai.

Types of Instruments

Stock market me sirf shares hi nahi, bahut tarah ke financial products hote hain:

Equity Shares – Ownership ka hissa.
Preference Shares – Fixed dividend ke saath special rights.
Bonds – Debt instrument, jisme fixed interest milta hai.
Mutual Funds – Professional portfolio management.
ETFs – Exchange Traded Funds, low-cost index tracking.
Derivatives – Futures & Options for hedging/trading.

Stock Exchanges in India

India me do main stock exchanges hain:

NSE (National Stock Exchange) – 1992 me shuru hua, index: Nifty 50.
BSE (Bombay Stock Exchange) – Asia ka sabse purana exchange (1875), index: Sensex.

MCX (Multi Commodity Exchange) – Commodities jaise gold, silver, crude oil ka trading hota hai.

Fact:
NSE ka daily turnover ₹80,000 crore se zyada hota hai.

Kaise Decide Hoti Hai Share Price?

Share ka price demand aur supply ke base par decide hota hai.

Zyada buyers → price up.
Zyada sellers → price down.

Price ko influence karne wale factors:

Company ka performance.
Economy ka situation (GDP, inflation).
Industry trends.
Global market movement.

Market Participants

Stock market me alag-alag type ke log trade/invest karte hain:

Retail Investors – Aap jaise individual log.
FIIs (Foreign Institutional Investors) – Foreign funds jo large scale me invest karte hain.
DIIs (Domestic Institutional Investors) – Indian mutual funds, insurance companies.
Market Makers – Liquidity provide karte hain.

Bull & Bear Market

Bull Market – Jab market continuously upar ja raha ho.
Bear Market – Jab market gir raha ho.

Example:

2020 ke lockdown ke baad market me bull run aaya tha, jisme Sensex 25,000 se 60,000+ chala gaya.

SEBI ka Role

SEBI (Securities and Exchange Board of India) market ka regulator hai.
Functions:

Investor protection.
Fraud rokna.
Fair trading ensure karna.

Fact:

SEBI bina license ke kisi ko bhi broker banne nahi deta.

Why People Lose Money

Stock market me loss ka main reason hota hai:

Without research trading.
Tips follow karna.
Overtrading.
Risk management ignore karna.

Golden Rule:
"Invest karo knowledge ke saath, gamble mat karo."

How to Start Investing

Page 11: Demat & Trading Account – Kya Aur Kaise?

Stock market me invest/trade karne ke liye aapko do accounts ki zaroorat hoti hai:

Demat Account – Jisme aapke shares electronically store hote hain.
Trading Account – Jiske through aap shares buy/sell karte ho.

Step-by-step Process:

Broker choose karo (Zerodha, Upstox, Angel One, ICICI Direct, etc.)
PAN Card, Aadhaar, Bank proof submit karo.
KYC complete karo (online ya offline).

Tip:
Always low brokerage + good platform select karo.

Broker Kaise Choose Karein?

Brokers do type ke hote hain:

Full-Service Brokers – Research + Advisory + High brokerage (e.g., ICICI Direct, Kotak).
Discount Brokers – Low brokerage, DIY trading (e.g., Zerodha, Upstox).

Important Points Before Choosing:

Brokerage charges.
Mobile app speed & reliability.
Customer support.

Market Orders Ka Basic Gyaan

Trading me 4 main order types hote hain:

Market Order – Immediate buy/sell at current price.
Limit Order – Aap set price decide karte ho.
Stop-Loss Order – Loss limit set karna.
Bracket Order / Cover Order – Pre-defined profit & loss exit.

Example:
Aapko Reliance ₹2500 me buy karna hai, lekin abhi ₹2520 chal raha hai → Limit Order lagao ₹2500 par.

Fundamental Analysis Basics

Fundamental analysis ka matlab hai company ke financial health ko samajhna.
Key Ratios:

EPS (Earnings Per Share) – Higher is better.
P/E Ratio – Price to earnings; lower means undervalued.
ROE (Return on Equity) – Company kitna return de rahi hai.
Debt to Equity Ratio – Debt kam ho toh safe hai.

Tip:
Long-term investing me fundamental analysis king hai.

Technical Analysis Basics

Technical analysis charts aur price movements par based hota hai.
Key Tools:

Candlestick Patterns – Doji, Hammer, Engulfing.
Moving Averages (MA) – 50-day, 200-day.
Support & Resistance – Price levels jahan trend rukta hai.
Indicators – RSI, MACD, Bollinger Bands.

Example:
Agar RSI 30 se niche hai → stock oversold, bounce possible.

Investing Vs Trading

Investing – Long-term hold, wealth creation.
Trading – Short-term profit making.

Difference:

Feature	Investing	Trading
Duration	Years	Minutes/Days
Risk	Low	High
Skill Need	Research	Speed & analysis

Capital Allocation

Aapke total investment ka hamesha diversification karo:

50% Equity (Shares, Mutual Funds).
30% Debt (Bonds, FD).
20% Other assets (Gold, REITs, etc.).

Golden Rule:
Never invest all money in one stock.

Taxation in Stock Market

India me share profit par 2 tarah ka tax lagta hai:

Short-Term Capital Gains (STCG) – 15% if holding < 1 year.
Long-Term Capital Gains (LTCG) – 10% if holding > 1 year (above ₹1 lakh profit).

Tip:
Tax planning bhi profit ka hissa hai.

Trading Hours & Settlement

Trading Time – 9:15 AM to 3:30 PM (Mon–Fri).
Settlement Cycle – T+1 (Trade date + 1 day).
Pre-Open Market – 9:00 AM to 9:15 AM.

Fact:
Saturday-Sunday market closed rehta hai, lekin global news Monday ko impact karti hai.

First Step Before Real Trading

Minimum 1–2 months paper trading karo.
Daily market news follow karo.
Ek journal banao jisme har trade ka reason likho.

Tip:
Market me pehla goal profit nahi, capital preservation hona chahiye.

Investment Strategies

Long-Term Investing (Wealth Creation)

Long-term investing ka matlab hai shares ko years tak hold karna taaki compounding ka magic kaam kare.
Benefits:

Dividend income.
Market volatility ka effect kam.
Wealth growth with time.

Example:
Agar aapne 2010 me ₹1 lakh Reliance me invest kiya hota, toh 2024 me yeh ₹10 lakh+ hota (bonus & split ke saath).

Tip:
Strong fundamentals wali company choose karo, jiska debt kam ho aur profit growth consistent ho.

Value Investing

Value investing ka idea Warren Buffett se popular hua.
Concept simple hai — underpriced stocks kharidna aur unhe long-term hold karna.

Identify Value Stocks:

Low P/E ratio compared to industry average.
High ROE, Low Debt.
Future growth potential.

Example:
Infosys ka stock 2008 me undervalued tha; long-term investors ne 10x return kamaya.

Growth Investing

Growth investing me aap aisi companies me invest karte ho jo high earnings growth dikhati hain.
Features:

Revenue growth 15%+
Market share expanding
Innovative products/services

Risk:
Valuation high hone ki wajah se correction aa sakta hai.

Swing Trading

Swing trading ka focus 2–15 din ke trades par hota hai.
Steps:

Chart analysis karo (Daily & Hourly).
Entry point identify karo.
Stop-loss set karo.

Example:
ITC ka stock ₹420 se ₹460 10 din me gaya; swing traders ne 8–10% profit liya.

Day Trading (Intraday)

Intraday trading me shares same day buy & sell hote hain.
Rules:

1–2% stop-loss mandatory.
High liquidity wale stocks trade karo.
News-based volatility ka faida uthao.

Warning:
Intraday high risk hai; bina discipline ke paisa jaldi lose hota hai.

Sector Investing

Sector investing me aap specific industry choose karte ho.
Popular Sectors:

Banking (HDFC Bank, ICICI Bank)
IT (TCS, Infosys)
Pharma (Sun Pharma, Cipla)
FMCG (HUL, ITC)

Tip:
Sector ka growth cycle samajh ke invest karo.

Thematic & Index Investing

Thematic Investing – E.g., Electric Vehicles, Renewable Energy.
Index Investing – Nifty 50 ya Sensex ko track karne wale ETFs me paisa lagana.

Benefit:
Low cost, diversification, easy for beginners.

Portfolio Diversification

Diversification ka matlab hai alag-alag sectors aur asset classes me invest karna.
Example Allocation:

40% Large-cap stocks
30% Mid-cap stocks
20% Debt & Bonds
10% Gold/REITs

SIP (Systematic Investment Plan)

SIP mutual funds me monthly fixed amount invest karne ka method hai.
Benefits:

Rupee cost averaging.
Long-term wealth creation.
Easy & disciplined investing.

Golden Rules of Investing

Invest only surplus money.
Research before investing.
Avoid herd mentality.
Stick to your strategy.

Futures & Options

Derivatives Kya Hote Hain?

Derivatives aise financial contracts hote hain jinka value kisi underlying asset (stock, index, commodity, currency) par based hota hai.

Types:

Futures – Fixed date par pre-decided price me buy/sell ka contract.
Options – Right to buy/sell, but obligation nahi.

Example:
Aap Nifty ka January Futures ₹22,000 par buy karte ho — expiry ke din price ₹22,500 hua toh profit.

Futures Trading Basics

Lot Size: Fixed quantity hoti hai (e.g., Nifty ka 50 shares ka lot).
Margin Requirement: Pure lot ka paisa nahi, sirf margin (10–20%) lagta hai.
Leverage: Small capital me large position control karna.

Risk:
Leverage double-edged sword hai — profit bhi multiply, loss bhi.

Options Basics

Options 2 type ke hote hain:

Call Option – Buy ka right. (Price badhne ki expectation)
Put Option – Sell ka right. (Price girne ki expectation)

Terms to Know:

Strike Price: Fixed price jahan buy/sell ka right hai.
Premium: Option kharidne ki cost.

Option Buying vs Option Selling

Option Buying:

Low capital
Limited risk
Unlimited profit
Low success rate (time decay ka effect)

Option Selling:

High capital (margin needed)
Limited profit
High success rate (seller ke favour me time decay)

Tip:
Beginner buyers hote hain, pro traders sellers.

Option Greeks Simplified

Option pricing samajhne ke liye Greeks important hain:

Delta: Price movement ka impact.
Theta: Time decay ka effect (expiry ke kareeb option value girta hai).
Gamma: Delta ka change rate.
Vega: Volatility ka impact.

Shortcut:
Sellers Theta se profit karte hain, Buyers Delta se.

Popular F&O Strategies

Covered Call: Stock hold karke Call sell karna.
Straddle: Same strike par Call + Put buy karna.
Iron Condor: Low volatility me limited profit strategy.

Example:
Nifty 22000 par hai, aapne Call 22200 sell + Put 21800 sell kiya → dono premium ka profit.

Risk Management in F&O

Always stop-loss lagao.
Position size control karo.
Avoid over-leverage.
News events me trading avoid karo (Budget, RBI policy).

F&O Trading Tips

Market direction samajhne ke liye Open Interest (OI) dekho.
High volatility me option selling avoid karo.
Paper trading se start karo, phir real capital lagao.

Risk & Psychology

Risk Management – The Lifeline

Stock market me profit se zyada important hai loss control.
Key Principles:

Position Sizing: Ek trade me total capital ka 2–5% se zyada risk mat lo.
Stop-Loss: Pre-decided price jahan trade exit karoge.
Risk/Reward Ratio: Minimum 1:2 rakhna (₹1 risk → ₹2 reward).

Example:
₹1,00,000 capital hai → per trade max ₹2,000 ka risk.

Capital Preservation First

Market me sabse pehla rule: Paisa bachao, profit baad me aayega.

Avoid revenge trading.
Don’t average in losing positions.
Avoid “All-in” trades.

Quote:
"You can come back from a loss of profit, but not from a loss of capital."

Trading Psychology – The Real Game

Trading me success ka 80% mindset aur 20% strategy hota hai.
Common emotions:

Fear: Stop-loss lagane se dar.
Greed: Extra profit ke chakkar me risk badha dena.
Overconfidence: 2–3 profit ke baad rules todna.

Tip:
Discipline > Emotion.

Common Mistakes by Beginners

Tips follow karke trading.
Over-leverage.
Bina plan ke entry/exit.
Every small move me trade lena.

Fix:
Trading journal rakho, har galti note karo, improve karo.

Building a Trading Routine

Morning me global market check karo.
Important news calendar dekho.
Only 2–3 high-quality trades lo.
End of day analysis karo.

Tip:
Routine bana ke chalo, impulsive mat bano.

Patience & Consistency

Market me overnight millionaire banne ka sapna mat dekho.

Small, consistent gains target karo.
Loss ko accept karo, revenge mat lo.
Long-term me compounding ka magic kaam karega.

Quote:
"Stock market me sabse bada profit un logon ko hota hai jo zinda rehte hain."

Advanced Insights & Case Studies

FII & DII Ka Impact

FII (Foreign Institutional Investors) aur DII (Domestic Institutional Investors) market ke sabse bade players hote hain.

FII Buying: Market me strong bullish momentum laata hai.
FII Selling: Market pressure me aa jata hai.
DII Activity: Local support provide karti hai jab FII sell karte hain.

Example:
2020 lockdown ke baad FIIs ne heavy buying ki, jisse Sensex 25,000 se 60,000+ chala gaya.

Economic News Ka Asar

Market kaafi sensitive hota hai economic events par:

RBI Interest Rate Changes – Rate cut → Market bullish.
GDP Data – Strong GDP → Investor confidence badhta hai.
Budget Announcements – Sector-specific rallies create hoti hain.
Global Cues – US Fed policy, crude oil prices, dollar index.

Tip:
News ka impact sector-wise samajho.

Case Study – Reliance Industries

Reliance ek perfect example hai diversification ka.

Petrochemical se start karke telecom (Jio) aur retail me expand.
2016 me Jio launch ke baad stock ₹1,000 se ₹2,500+ chala gaya.
Strong leadership + innovation = consistent growth.

Lesson:
Strong management aur diversification kaafi important hai.

Case Study – Infosys

1981 me ₹10,000 investment → Aaj ₹2+ crore (dividends & splits included).
Consistent revenue growth aur IT demand ka fayda.

Lesson:
Patience + quality company = Wealth creation.

Case Study – ITC Ltd.

FMCG + Hotels + Paper + Agribusiness ka unique mix.
Long time sideways stock tha, lekin 2022–2023 me breakout diya.
Dividend yield bhi high, safe for conservative investors.

Lesson:
Safe dividend-paying stocks bhi patience se multi-bagger ban sakte hain.

Final Words – Your Next Steps

Education pe invest karo.
Small capital se start karo.
Clear goals rakho (Wealth creation / Trading income).
Market ko daily observe karo, lekin overtrade mat karo.

Final Quote:
"Market ek teacher hai — fees hamesha lagti hai, lekin seekhne wale ko reward milta hai."