Business Studies Journal (Print ISSN: 1944-656X; Online ISSN: 1944-6578)

Short communication: 2021 Vol: 13 Issue: 6

Stock Market Operations and Technical Analysis on It Sector Companies

Sikander Gurjar, Apeejay School of Management, Dwarka, Delhi

Citation: Sikander, G. (2021).Stock market operations and technical analysis on it sector companies: short  communication. Business Studies Journal, 13(6), 1-3.

Keywords

Stock Market, Sharekhan, BSE, NSE, India.

Background

Understanding stock market operation in the derivative market is also essential for an investor investing in the stock market. Futures and options are two main crucial parts of the derivative market. There are two types of risk in the stock market; one is systematic risk, and another is unsystematic risk. Unsystematic risk is associated with particular security or share, and this risk can be reduced by diversifying the portfolio. After hedging the unsystematic risk, the only systematic risk remains. This systematic risk can hedge with futures and options. So, by understanding the future and options, an investor will be able to evade the systematic risk as well.

Technical analysis is a tool to understand when to buy a particular security or share and when to sell a security or stake. The essential assumption of technical analysis is that “history repeats itself.” So, specific patterns are made on this assumption, which assumes that the market will react to the stimuli in the same way as it reacted to the same stimuli in the past. These patterns predict the direction of the price movement in the future. In this report, technical analysis is done on IT sector companies. Why IT sector companies. The answer to this question is simple because, in COVID-19 time when most of the companies are relying on work from home, they need a sound IT system for that. So, the IT sector has done great in this COVID-19 time.

Sharekhan is dealing in the broking business. It is the part of SSKI Group, which is running successfully since 1922 and has eight decades of experience in the stockbroking business. Sharekhan was founded in the year 2000. Sharekhan offers a wide range of equity-related services like trade execution in NSE and BSE, Derivatives, depository services, online trading, investment advice, etc. (Sharekhan, 2000).

Methodology

For stock market operation in capital market

For understanding stock market operation, Sharekhan webinars were attended

Sharekhan classroom webinars also participated.

Data has been collected from the Sharekhan website.

For understanding Stock market operations in the derivatives market

For understanding stock market operation in the derivative market, Sharekhan webinars were attended.

Sharekhan classroom webinars were also attended.

Data for the derivative market is taken from the Sharekhan website and the NSE website.

For Technical Analysis on IT Sector Companies

Sharekhan classroom has been attended for understanding tools used in technical analysis.

Data has been taken from the Sharekhan website as well as from in.tradingview.com.

Limitations

News influencing stock prices is not considered.

Commodity and Forex segments are not considered.

Candlesticks patterns and Indicators may generate false buy and sell calls.

Recommendations

Should invest in more promotional activities.

Should charge less brokerage on delivery trades.

Should reduce interest rate in EMF (Exchange margin funding) facility.

Should make Sharekhan website more user friendly.

References

Sharekhan, 2000. Sharekhan. [Online] Available at: https://www.sharekhan.com/

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