Preface

In todays fast moving economy only theoretical knowledge is not sufficient for an individual to perform sufficiently. To fill up the gap between theory and practical we must have enough theoretical as well as practical knowledge regarding business environment. And for this purpose this Summer Internship Project is carried out, which has helped me to gain both practical as well as theoretical knowledge.

Practical training is one of the vital aspects of management field. Thus, practical training enables students in understanding the administration and functions of a corporate entity. Practical training helps an individual to develop managerial abilities. Thus, training acts as a bridge between theoretical knowledge and practical implementation of the knowledge. Hence, it helps an individual to know the actual uses and implications of the theoretical knowledge acquired in the classroom.

Acknowledgement

Every work in the world is done with the help of some or other. He or she may directly or indirectly involve in that work. According to a famous saying we should thank the one that have helped you in our work. So here in this part I am doing the work of thanking all those people who helped me in making this report.

I am very much grateful to Prof. Falguni Shelani as she helped me throughout the project and provided all the essential guidance for preparing a good project report.

I am also thankful to Mr. Sunil Shah (Vice President, Arcadia Shares) and all their staff members for co-operating with me.

Declaration

I undersigned Dimple Rajvir the student of MBA, Semester 3 hereby declare that the project presented is my own work and has been carried out under the guidance of Prof. Falguni Shelani, MEFGI.

This report has not been previously submitted to any other university or any institution for examination or any other purpose.

Date: Place: Rajkot

Industry overview HISTORY Indian stock market is one of the oldest in Asia. Its history dates to nearly 200 years ago. The earliest records of security dealing in India are merged and obscure. By 1830s business on corporate stocks & shares in bank and cotton presses took place in Bombay. Though, the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the no. of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States and Europe was stopped; thus, the share mania in India began. The no. of brokers increased about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for e.g., Bank of Bombay share which had touched Rs. 2850 could only be sold at Rs. 87). At the end of the American Civil War the brokers who thrived out of civil war in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the Native Share and Stock Brokers Association (which is alternatively known as The Stock Exchange). In 1895, the Stock Exchange acquired premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time no. of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

1850

Shares of banks and securities of East India co. traded inn Mumbai under a sprawling banyan tree in front of Town Hall

1875

Brokers organized an association known as the Native Share Brokers Association and the countrys first stock exchange the Bombay Stock exchange (BSE), set up in Mumbai with 318 members. The membership free gradually increased from Rel in 1887 to Rs 1000 in 1896 and Rs.48000 in 1920.

1956 1957

Securities contract regulation act passed. The BSE and eight other stock exchanges registered under the Securities Trading Contract act.

1982

The BSE classifies scripts into Group A for carry forward, Group B for cash transaction.

1986

The BSE 30-share Sensitivity index (a.k.a. the Sensex) compiled updated every two minutes.

1987 1992 1995

Stock Holding corporation of India set up. The National Stock Exchange incorporated. (NSE) The BSE computerized its trading operations, signaling the end of 120 years of floor-trading.

1996

NSE 50 indexed launched April 22. NSDL set up as the first depository in India, and the NSE commences trading in dematerialized securities on December 26.

2000

The SEBI approves the report on net trading brought out by the SEBI committee on the Net based trading and services.

Indian Stock Market Share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.

Share market where dealing of securities is done is known as share market. There are two ways in which investors gets share from market:

Primary market: markets in which new securities are issued are known as primary market. This is part of the financial market where enterprises issue their new shares and bonds. It is characterized by being the only moment when the enterprise received money in exchange for selling its financial assets.

Secondary Market: Market in which existing securities are dealt is known as secondary market. The market where securities are traded after, they are initially offered in the primary market. Most trading is done in the secondary market. The Stock Market is an invisible market that trades in stocks of various companies belonging to both the public and private sectors. The Indian Stock Market is often referred to as the Share Market since it deals primarily with shares of various companies Stock Exchange is a place where the stocks are listed and traded. Such exchanges may be a corporation or mutual organization which specializes in the business of introducing the sellers with the buyers of stocks and securities. The Indian Stock Market in India comprises of two stock exchanges: Bombay Stock Exchange (BSE) National Stock Exchange (NSE)

The Bombay Stock Exchange The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock Exchange serves as the most important for companies to raise money. The chief function of the Stock Market of India is to help raise money as capital for the growth and expansion of various private and public sector enterprises. Besides, the Stock Market of India provides able assistance to the individual investors through daily updates on current position of the stocks of the respective companies that are enlisted in the Stock Index in which the movement of prices in a section of the market are captured in price indices. The popular acronym for Stock Index is Sensitive index or sensex. Moreover, the liquidity provided by the exchange enables the investors to sell securities owned by them easily and quickly. Hence a person, who is subjected to sudden dearth of funds, can immediately sell his shares for cash in India Stock Market. The BSE Sensex, also known as BSE 30 is a widely used market index not only in India but across Asia. In terms of volume of transactions, it is ranked among the top five stock exchanges in the world. The National Stock Exchange of India Ltd

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest stock exchange in India and a preferred exchange for trading in equity, debt and derivatives instruments by investors. NSE has set up a sophisticated electronic trading, clearing and settlement platform and its infrastructure serves as a role model for the securities industry. The standards set by NSE in terms of market practices; products and technology have become industry benchmarks and are being replicated by many other market participants.

NSE provides a screen-based automated trading system with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through the on-line system has helped in integrating retail investors across the nation.

The exchange has a network in more than 350 cities and its trading members are connected to the central servers of the exchange in Mumbai through a sophisticated telecommunication network comprising of over 2500 VSATs.

NSE has around 850 trading members and provides trading in equity shares and debt securities. Besides this, NSE provides trading in various derivative products such as index futures, index options, stock futures, stock options and interest rate futures. In addition to these organizations there are other organizations highlighting on the share trading in the Indian Stock Market are: Securities and Exchange Board of India (SEBI) NSDL CDSL

The Nifty and the Sensex are the indicators which are the parameters denoting the prices of the stocks of the major companies of the NSE and the BSE respectively.

The markets are closed on Saturdays and Sundays. Both

the

e x c h a n g e s h a v e s wi t c h e d o v e r f r o m t h e o p e n o u t c r y trading

system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT(National Exchange Automated Trading) system. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The scrip traded on the BSE has been classified into A, B1, B2, C, F, and Z groups. The A group shares represent those, which are in the carry forward system (Badla). TheF group represents the dept market (fixed income securities) segment. The Z group scrip is the blacklisted companies. The C group covers the odd lot securities in A, B1, & B2groups and Rights renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian s e c o n d a r y a n d p r i ma r y ma r k e t i s t h e S e c u r i t i e s a n d Ex c h a n g e B o a r d o f I n d i a ( S EB I ) Limited.

MAJOR PLAYERS OF INDUSTRY 1. Angel Broking Ltd. 2. ICICI Web Trade Ltd. (ICICI direct. com) 3. S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com) 4. India infoline Ltd. (5paisa.com) 5. Kotak Securities Ltd. (Kotakstreet.com) 6. India bulls 7. HDFC Securities (HDFC secs) 8. UTI Securities Ltd. (UTISEL) 9. Motilal Oswal Securities Ltd. (MOSt) 10. IDBI Capital Market Services Ltd. 11. Refco-Sify Securities India Pvt. Ltd

Company overview INTRODUCTION TO ARCADIA SHARES AND STOCK BROKERS PVT LTD. Arcadia came to life in 1995, right on the wave of a post-liberalization market economy. As financial services became a major contributor to economic growth, Arcadia has steadily shaped into a leading financial service provider. In 1995, we were a small company with just 5 employees. Today, we have a market presence across the country, with over 275 branches & franchisee outlets. We have established a strong retail network not only in metros but also in tier two and tier three cities.

Traditionally, our operation was concentrated in fast-moving capital market of Western India. But sensing great potential, we have launched strong expansion plans in the North and the South. This systematic presence-building and efficient delivery of service has put Arcadia among the fastest growing retail broking houses in the country, with memberships in:

NATIONAL STOCK EXCHANGE OF INDIA (NSE) BOMBAY STOCK EXCHANGE (BSE) MULTI COMMODITY EXCHANGE (MCX) NATIONAL COMMODITY & DERIVATIVES EXCHANGE (NCDEX) DEPOSITORY PARTICIPANT OF CDSL. ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI).

Today Arcadia has accumulated acknowledged leadership in execution and clearing services on exchange-traded derivatives and cash-market products.

Working with the leading stock exchanges and noted financial institutions has drilled in us the importance of real-time information and use of analytical tools in investment decisions.

Practicing this over the years has made us experts in understanding investor requirements. Arcadia's integrated and innovative use of technology provides clients with the ability to trade offline & online. Clients also have constant access to their account information via internet.

TOP MANAGEMENT: 1. MR.ANTONY SEQUEIRA. (FOUNDER AND MANAGING DIRECTOR) 2. NITIN BRAHMBHATT. (DIRECTOR) 3. MR.SUNIL C.SHAH (VICE-PRESIDENT)

ADDRESS: 11, PANCHNATH PLOT CORNER, NR.PANCHNATH MANDIR, DR.RAJENDRA PRASAD ROAD, RAJKOT-360001

About us Company information Name: Registered Office: Arcadia Shares and Stock Brokers Pvt. LTD 328, Ninad, Building no. 7, Service road, Nr Bhavishya Nidhi Bhavan Bandra (East) Mumbai 400051 Head Office: Regional Office: As above 11, Panchanath plot corner, Nr. Panchnath mandir, Dr. Rajendra Prasad road Rajkot 360001 Founder: Director: Regional Head: Contact no.: Dealing Room: Toll free: Mr. Antony Sequera Mr. Nitin Brahmbhatt Mr. Akhil Shah +91 22 67739999 +91 22 26478888 1800 22 1555

Fax: E-mail: Website:

+91 22 26478988 info@arcadiashare.com www.arcadiastock.com

Membership NSE (Cash and Derivatives) : INB/F_230778238 BSE (Cash) : INB010778232 CDSL DP : IN225 MCX : 10950 NCDEX : 00374

Services 1. Equity Investment Looking for an easy and convenient way to invest in equity and take positions in the futures and options market using our research and tools. To start trading in Equity, all you need to do is open an online trading account. You can get help opening the account and get guidance on how to trade in Equity

2. Commodity Trading (MCX - NCDEX) Enter the new world of commodity futures. Investors looking for a fast paced dynamic market with excellent liquidity can NOW trade in Commodity Futures Market. The Commodity Exchange is a Public market forum and anyone can play in these vital Commodity Markets. ARCADIA COMMODITIES AND TRADING can certainly be your point of entry to the commodity markets. ARCADIA is registered trading cum clearing member of NCDEX and MCX. Participation is not difficult.All you need is to open an account with us. We shall offer you advice and research on investments.

3. Derivatives Trading Futures and options are derivatives, which use equity as their underlying. Hence their Equity Advisory Group (EAG), which is highly qualified, will also act as your advisors and help you take informed decisions while trading in these derivative instruments.

4. Internet Trading Making the right trade at the right time! Welcome tour E-Broking service which brings you an experience of online buying and selling of shares with just a click.

5. Mutual Fund Advisory Transact in a wide range of Mutual Funds. Mutual funds are an attractive means of saving taxes and diversifying your investment portfolio. So if you are looking to invest in mutual funds, ARCADIA offers you a host of mutual fund choices under one roof; backed by in-depth information and research to help you invest smartly

6. IPO Distribution IPO or Initial Public Offer presents good opportunities for netting high returns on your investments in a relatively short period of time if you invest early. Get information on IPO news, forthcoming IPOs and lot more.

7. Demat Services (CDSL) In the times of T+2 having a Demat account linked to your trading account becomes more convenient. The no-trading members can also avail of our Depository services. You receive regular account reports and an efficient service at all times. ARCADIA is a member of CDSL.

DEPARTMENTS

KYC Risk Management Admin Banking DP Back-office Relationship Management Billing IT Sales Feedback Compliance & Legal

SWOT ANALYSIS During my training at Arcadia shares and stock, I came to know the strengths, weaknesses, opportunities and threats for the company. It will be very useful for the company to analyze them and for that purpose the SWOT analysis of the company is presented here.

STRENGTHS Well maintained infrastructure Dedicated, intelligent and loyal staff Competitive brokerage The best investment advice through dedicated research and reports. Wide product range to enable the clients to choose the best alternative One of the best DPs in India A positive image in existing clients

WEAKNESSES Time consuming process for account opening, resolving the problems of the customers, etc. Company is present in only one business, i.e. Stock Broking, so there is no scope for cross-selling

OPPORTUNITIES Slope of stock market towards delivery based transactions Open interest of the people to enter in stock market for investing Attract the customer who are dissatisfied with other brokers An indirect opportunity generated by the stock market due to its current situation Online trading a/c market has vast potential Derivatives and Commodities markets are growing so, there is enormous potential for these market

THREATS Increasing competition from existing as well as new players A threat of losing clients for any kind of weakness of the company Indirect threat from instable stock market, i.e. low/no profit of Angels clients would lead them to go for other broker New multinational and national players are coming with competitive products

Research methodology MEANING OF RESEARCH Research is the process of gathering, recording and analyzing of critical and relevant facts about

IMPORTANCE OF RESEARCH

In this modern era, for every organization service quality is having great importance. Therefore every organization it is necessary to study the rate of satisfaction of their clients. The basic need for studying the satisfaction of the clients is to find out their view about the services provide by Arcadia Shares and Stock PVT. LTD The research study on satisfaction provides necessary information to the company. Which helps the company to take action to improve the service quality. Study of Service Quality helps the company to maintain a standard and increase productivity by improving service. This study tells us how much the employees are capable and their interest at work place. They will care about the quality of their work. They will create and deliver superior value to the client. They are more committed to the organization. Their works are more productive.

OBJECTIVE OF STUDY

The broad objective of this study is to know the satisfaction level of clients for services provide by Arcadia. The specific purposes of this study are: RESEARCH OBJECTIVES: - To study the trading strategies of investors in volatile market - To study the factors influencing investors in their investment - To study the behavior of investors in different market situation. - To study stock market and understand its market segment. - To know the awareness level regarding cash & derivatives segment in stock market. - To study the annual investment level of investors in stock market. - To know investment behavior of people in stock market. To study the indicators that investors take into consideration while trading in cash and derivative market.

SCOPE OF THE STUDY The study has the scope of including the most important organ of the organization that is the client. The study is to provide information to better understand how client think and feel as member of the organization. The study is limited to the 100 investors trading in stock market who are above the age of 20 trading in various brokerage houses of Rajkot. Our study finds the risk level and their strategies while dealing in the stock market when it is showing volatility.

RESEARCH DESIGN What is Research Design?

Research design can be thought of as the structure of research it is the glue that holds all of the elements in a research project together. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combined relevance to the research purpose with economy in procedure.

Generally there are mainly four type of research design:

1. Sampling 2. Observation 3. Statistical 4. Operational As per this research sampling design method is very useful for the survey on the service quality of the Arcadia.

SOURCES OF DATA

As we all know that there are mainly two sources of data i.e. Primary Secondary Primary Data: The data, which is collected directly from the respondents, is called primary data. The normal procedure is to interview some people individually to get a sense of how people feel about the derivatives & commodities segment. So far as our research is concerned, primary data is the main source of information. We have collected data through Questionnaire. Secondary Data: Data collected for some purpose other than the problem at hand are called as secondary data.

We have used following secondary data sources.

1. Library Research

I have searched many books and materials like Philip kotler to understand the research methodology.

2. Business Magazines

Many business magazines are referred to gather data about various trading strategies.

3. Internet Surfing

There are many search engines which provides us the data for variety of topics such as Google Search, Yahoo Search etc. we have used both of the search engines for gathering the data. We have also used various financial portals such as moneycontrol.com, bseindia.com, nseindia.com, etc. we have also taken the help of arcadiastock.com in order to fulfill our requirement.

RESEARCH INSTRUMENT The research instrument used for primary data collection is questionnaire. The questionnaire has close ended questions. (Questionnaire is attached as Annexure) The questionnaire is supposed to be given to an individual to fill up on his own.

Importance and Benefits: The research would help to understand the trading behavior of people in various market situations and it would also help to find out the various trading strategies in cash as well as derivative market segment. This research would also help to find out various indicators that people take into consideration while trading in different market segments.

Method of Data Collection Primary data-in order to collect direct information from investors we have designed a questionnaire. We have approached investors of different broking houses and income groups.

LIMITATIONs OF THE STUDY The limitations of this study are as follows:

Personal Bias: People may have personal bias towards particular investment option so they may not give correct information and due to which conclusion may be derived.

Time Limit: The time duration of the research is short thats why the information is not covered fully.

Sample Area: The area was limited to Rajkot city only.

Sample Size: The last limitation is Sample size, taken by us is of 100 only; due to which we might not get the proper results.

Investors trading strategy in volatile stock market

1. Name of Trading Segment

Trading Segment

8% 9% Cash Derivative Both 83%

Out of 100 respondents, 83 trades in both segment while 8 respondents trades in only cash segment and 9 respondents trades in only derivatives market.

2. Age group of the respondents

47% 53%

20 - 40 beyond 40

3. Annual Investment in share market

Investment
14%

below 1 lakh 52% 34% 100000 - 500000 beyond 500000

4. What factors do you consider while investing in cash & Future market?

Factors
7% 1%

20%

Fundamenta analysis Technical Ananlysis Tips 55% Global Markets Broker

12% 5%

Others

Majority of the respondents follow Fundamental Analysis while some of the respondents also follow the global cues and minor numbers of respondents follow Tips, Brokers, and Technical Analysis. So we can conclude that people are still unaware about the Technical analysis which can be termed as new trend in market.

5. Which T.V. channels do you watch regularly for getting updates about the stock market?

TV Channels
1% 6% 4% CNBC TV 18 Times now Zee Business CNN IBN Others 7%

82%

From the above data we can analyze that majority of the respondents regularly watch CNBC TV18 as CNBC Awaaz while few of the investors prefer the other news channels like Zee Business, Times Now, etc.

Analysis of Cash Market Segment 1. What is your motive while trading in cash market?

2%

8%

Intra-day Delivery Based Depends

90%

From the above data we can analyze that majority of the respondents goes with market conditions while few respondents trades specifically Intra-day or Delivery Based.

2. Which of the following trading strategies you generally prefer?

1. Trading with stop loss 2. Trading without stop loss 3. Hedging with target price 4. Trading without target price 5. Hedging in options market 6. Buy at lower price / sell at higher price

Out of 100 respondents, 31 respondents prefer stop loss and target price. 28 respondents follow only target price without any stop loss. 21 respondents prefer to buy on dips while 9 respondents prefer to sell on hike. 26 respondents prefer trading with target price while 16 respondents doesnt follow any fixed target price.

3. What are the indicators you refer while trading in cash market? (Give ranks)

Indicators
8 7 6 5 4 3 2 1 0 Volume Average trade Fundamentals Circuit filter price of Company Percentage Top change in Gainers/losers price Technical levels

From 100 respondents, majority of respondents prefer to go with Fundamentals of company, Volume and percentage change in price as an important indicator in order to trade in cash market, while they give less importance to other indicators like Technical Levels, Circuit Filters, Average Trade price. Hence they consider Fundamental of company and volume as ideal indicator.

4. What percentage of change in BSE and NSE do you consider while taking decision to set your position in cash markets?

% change 5% - 10% 10% - 15% 15% and beyond

BSE 25% 48% 27%

NSE 17% 35% 48%

Analysis of Derivative Market Segment

1. Name of Trading Segment in Derivative Market

22%

2%

Future Market Segment Option Market Segment Both of above

76%

From the above chart we analyze that about 76% of the respondents deals in both the segment while 22% respondents prefer only Future Market and the rest of respondents deals in only Option Market Segment. Hence we can conclude that people are not much aware about Option Market Segment.

2. What is your motive while trading in Derivative Market?

13%

39% Intra-day trading Position Trading Depends

48%

From the above data, we analyze that 48% of respondents prefer Position Trading that means they are ready to take risk and they also prefer more profit/loss. While 39% of respondent like to have Intra-day trading which shows that they are ready to carry forward their position and they prefer small gain/loss, while 13%of respondents are indecisive about their trading strategy.

3. You are dealing in derivatives market as a

9% 2%

speculator hedger arbitrator

89%

From the above data, we can conclude that most of respondents are speculators which mean that they are willing to enormous risk. While only 9 % of the respondents are hedgers who likes to hedge their positions in the option markets and only 2 % of the respondents are arbitragers. So we can say that most of the respondents are risk takers in the markets.

4. Which of the following trading strategy you generally prefer?

a) Trading with stop loss b) Trading without stop loss c) Trading with target price d) Trading without target price e) Hedging n options market f) Buy at lower price/sell at higher price g) Others (please specify) _____________________

Out of 100 respondents, 56 respondents prefer to have stop loss and target price while 62 respondents prefer to trade with out stop loss and without target price and 49 respondents prefer to trade with stop loss and without target price. 42 respondents prefer to hedge in Option Market while 38 respondents prefer to buy on dips/sell on hike. So we can conclude that majority of respondents gives importance to stop loss and target price.

5. What are the indicators you refer while trading in derivative market?

Indicators
8 7 6 5 4 3 2 1 0 Volume Percentage Global Market Top Open Interest change in Gainer/Loser price Technical Levels Other

From the above data, we analyze that people considers open interest, Volume, Global Markets as the most important indicators while trading in derivative market. Here Open Interest indicates net outstanding contracts in derivative market which people consider most important. While people prefer to give less priority to technical level, top gainer/loser, percentage changes in price. Hence we conclude that global market, open interest, volume are the major indicators which people prefer.

6. What percentage of change in BSE and NSE do you consider while taking decision to set your position in derivative markets? % change 5% - 10% 10% - 15% 15% and beyond BSE 18% 42% 40% NSE 12% 35% 53%

7. What will be your trading strategy on the happening of any major events like Union Budget, Election, Natural Calamities, etc.?

2% Square-up your position 33% Holding your position 39% Reverse your overall position Wait and watch Other 15% 11%

From the above data, we analyze that 39% of respondents prefer wait and watch strategy because they expect the market to be very volatile in the Coming days so they wait for market to stabilize and thus will enter after the happening of the event. While 33% of respondents prefer to square-up their position as they does not want to take risk.15 % of respondents prefer to hold their position and want to take further risk and 11% of respondents like to reverse up their overall position according to their prediction.

8. What will be your reaction in panic situation in the stock market?

Follow rumors 36% 34% Follow Expert Opinion Follow Media Other (please specify).

17%

13%

From the above data, we analyze that 34% of respondents follow market rumors which shows that they are very sensitive in their trading while 17% of respondents follow media such as CNBC TV18, Zee business, etc and takes their decision accordingly. 13% of respondents follow expert opinions and behave accordingly. Majority of respondents behaves in different ways like some of them rely on their own experience, some remains neutral while some of them are ready to take further risk.

FINDINGS

Majority of respondents trades in both cash as well as derivative market segment. Majority of respondents gives more importance to fundamental analysis and global market while investing in cash and derivative market segment. Majority of respondents prefer to watch CNBC TV18 as their market guide. Majority of respondents like to trade with stop loss and with target price in cash market segment. Majority of respondents like to book partial profit if the trade goes in their favor in cash market segment. Majority of respondents prefer to make an average if the trade goes against their favor in cash market segment. Majority of respondents give more importance to fundamental of company and volume in cash market segment. Majority of respondents prefer to trade in both Future and Option Market Segment. Majority of respondents prefer to have position trading in Derivative Market Segment with an intention to speculate in the market. Majority of respondents like to book partial profit if the trade goes in their favor in case of derivative market segment. Majority of respondents prefer to make an average if the trade goes against their favor in case of derivative market segment. Majority of respondents give more priority to open interest, volume, global market in order to trade in derivative market segment.

 Majority of respondents like to sell on hike if the market opens in a positive zone. Majority of respondents like to buy at current market price if the market opens in a negative zone. Majority of respondents prefer wait and watch strategy on the happening of any major event. Majority of respondents follow rumors as well as uses their own experience in case of any panic situation in stock market.

HYPOTHESIS

CONCLUSION

In case of Cash Market Segment, we can conclude that people generally trade with stop loss and with target price. So in case of Cash Market Segment people are not more risk takers. And they give more priority to the Fundamentals, Volume and Percentage change in price in cash market segment and there is a mixed pattern of trading between intra-day and delivery based trading.

In case of Derivative Market Segment, we can conclude that people generally use both the segment but they generally use the Option Segment for hedging purpose and not for trading purpose. So we can conclude that people are less aware about the Option Segment as compared to Future Market Segment. People generally trade with stop loss and uses hedging option in derivative market segment and they give more priority to Open Interest, Volume and Global Market for trading purpose.