Indian Stock Market - From Absolute Beginner to Pro

Learn fundamental analysis to evaluate stocks by examining a company’s balance sheet, income statement, and cash flow, using financial statements and ratios to decide investments.

Explore assets and liabilities on a balance sheet, with examples like cash, inventory, machineries, and real estate, and see why equity is treated as a liability.

Explore fixed assets, current assets, other assets, and current liabilities on the balance sheet, and learn how operating cycle and working capital shape a company's financial health.

Reserves and surplus represent retained earnings shown on the balance sheet, reflected in other assets and through reinvestment in fixed assets, signaling company growth.

Learn contingent liabilities and share capital, including face value and the effects of IPOs, FPOs, buybacks, and bonus shares, with reserves and surplus funding expansion and diversification.

Explore how a company buys back shares using reserves and surplus, affecting share capital and balance sheet, with a 50% buyback at a higher price, and promoter buyback.

Discover how balance sheets are formed and read as of a date, balancing assets and liabilities with share capital, cash, debt, and standalone versus consolidated balance sheets.

Learn to read the profit and loss statement, its quarterly and annual view, and compare with the balance sheet to analyze core sales, other income, expenses, ebit, and net profit.

Learn to read the cash flow statement by analyzing operating, investing, and financing activities to see how much cash actually comes in versus profit.

Analyze a company using balance sheet, income statement, and cash flow statement, as shown with Kubota and Escorts; link ratios to sales, expenses, profits, and operating cash flow.

Learn how face value, book value, and market value of a share differ, with examples showing face value on certificates, book value from reserves, and market value from investor demand.

Calculate earnings per share from net profit minus preferred dividends divided by total outstanding shares, and use 25% annual and 20% quarterly growth criteria with screeners to identify growing stocks.

See how issuing bonus shares doubles the number of shares and shifts funds from reserves and surplus to share capital, reducing EPS by half while total earnings stay the same.

Calculate and interpret the price to earnings ratio using current market price and earnings per share, and compare it with sector p e to gauge overvaluation or undervaluation.

Learn how the price to book value ratio equals current market price divided by book value, and apply pb multiplied by pe under 22.5 to screen long-term value stocks.

Learn to calculate the debt to equity ratio by dividing debt by equity, and interpret values like less than two (or less than one is excellent), noting banks are excluded.

Learn to calculate return on equity (ROE) as net profit after preferred dividends divided by net worth (equity plus reserves and surplus), and screen for ROE above 17%.

Learn how to calculate the current ratio using current assets divided by current liabilities, and interpret ratios above or below one with practical company examples.

Learn to calculate the interest coverage ratio as EBIT divided by interest expense and interpret its meaning for a company's loan repayment capacity, illustrated with 800 crore EBIT scenarios.

Master fundamental analysis by reading financial statements and ratios, explore key research sites, and apply personal rules for entry around results, corrections, bad news, black swan events, and EMA exits.

Master the fundamentals of derivatives in the Indian stock market, covering futures and options, how underlying assets drive prices, and the roles of call and put options with expiry.

Learn how swap contracts exchange fixed and variable rates, including interest rate swaps and various types, and see how forward contracts use tomato price examples to compare with futures.

Explore how a futures contract works as a derivative. See how a buyer and seller trade a 1000-share Infosys lot with expiry on exchanges.

Explore the main futures types you can trade: stock and index futures, currency and commodity futures, volatility index and interest rate futures; learn three-month contract cycles and expiry rules.

Learn how lot sizes vary by company and are fixed by SEBI, and how margin enables futures trading with a fraction of the total value. Understand stock versus futures pricing.

Understand mark to market adjustment in futures, including daily margin maintenance and the impact of intraday profit and loss on your trading account.

Contrast stocks and futures by showing lot sizes, margins, and expiry; stocks are real, unlimited in quantity, and suited for long-term wealth, while futures are margin-based, contract-based, and short-term.

Discover how futures prices are derived from spot price, time value of money, and dividends, and how margins split into span and exposure margins managed by exchanges and brokers.

Learn how to exit Cipla April futures by squaring off, rolling over to the next month, or delivery, and understand cash settlement for index futures.

Learn how hedging protects a stock portfolio by selling Hindalco April futures to offset potential losses, and how rising prices affect outcomes under long or short hedges.

Discover the basics of options, including call and put options. Learn how buyers pay a premium to gain the right to buy or sell.

Explore call and put options, premiums, writers, and expiry through a clear Ultratech cement example; learn how bullish and bearish views drive payoff scenarios across stocks, indices, commodities, and currencies.

Explore how strike price and premium define call and put options, distinguishing in the money, at the money, and out of the money with spot price, expiry, and related concepts.

Explore option terminology, lot sizes, European style settlement, and the option chain, and learn how premiums and expiries influence trading in the Indian stock market.

Discover how option premium breaks into intrinsic value and time value, with formulas for call and put options, ATM/ITM/OTM concepts, and how time value decays toward expiry.

Learn how profits and losses arise in call and put options, including premium, strike price, break-even, and expiry effects, and compare holding till expiry with selling before expiry.

Understand expiry and settlement for Indian stock options, noting cash settlement for index options and physical settlement for stock options across weekly, monthly, quarterly, and yearly expiries.

Discover how hedging with options protects your portfolio and reduces losses, using put options, call options, and break-even concepts illustrated through examples.

Discover how stock price, time to expiry, strike price, volatility, and interest rates shape option premiums, with in-the-money and out-of-the-money dynamics for call and put options.

Explore delta, a key option Greek, which shows how the premium changes with a unit move in the underlying, guiding strike-price choice for calls and puts.

Explore gamma, the second option Greek, and how it shows how much delta changes when the stock moves by one unit, illustrated using a Canara Bank 310 strike call.

Learn how theta, or time decay, erodes option value as expiry nears, with buy and sell dynamics explained through Bank Nifty examples highlighting premium decay and risk trade-offs.

Vega measures how much an option's premium changes for a 1% change in implied volatility, and it is highest for at-the-money options and declines as expiry nears.

Option buying offers lower probability of profit with limited loss to the premium, while option selling provides higher probability of profit but unlimited risk, influenced by theta decay and margins.

Learn the fundamentals of options trading, including buying and selling calls and puts (ATM, ITM, OTM), price action, technical analysis, and option Greeks.

Learn how candlesticks form, including green and red bodies, wicks, and open-high-low-close levels, and how to read candlestick charts on TradingView and Investing.com.

Learn how time frames affect candlesticks and how to combine smaller candles into higher time frame candles; determine opening, closing, high, and low across 1-minute to 5-minute intervals.

Learn how candlestick patterns reveal market psychology, identify support and resistance, and recognize bullish and bearish reversals at key levels to guide stock trades.

Explore candlesticks, focusing on marubozu patterns—green and red variants—showing strong buy or sell sentiment, with no wicks, across any time frame, and how to spot clean candlestick charts.

The hammer signals a bottom reversal, with a small body and long lower wick; trade options include risky close, safer above high, or safest near support with a stop loss.

Learn shooting star pattern, appearing at the top of an uptrend with a long wick more than twice the small body, no lower wick, and a red candle signaling reversal.

Learn how inverted hammer and hanging man candlestick patterns signal reversals, with price-confirmation rules, safe entry strategies, and stop-loss placements based on support, resistance, and trend context.

Learn to manage trading risk with a fixed maximum 2% per trade, a minimum 1:2 risk to reward ratio, and disciplined stop losses and consistent risk per trade.

Identify two-candlestick bullish engulfing patterns in downtrends, where a green candle engulfs a red one, and assess variations, supports, and resistances to time entries with prudent stop losses.

Master the bearish engulfing pattern, a two-candlestick reversal at the top of an uptrend when a red candle engulfs a small green candle, with stop-loss above the red candle.

Understand the piercing line pattern, a two-candle downtrend setup: first long red candle, second opens below the red candle's low and closes above the red candle's body midpoint.

Dark cloud cover is a bearish reversal at the top of uptrend; a green candle followed by a red one that opens above the green high and closes below midpoint.

Identify the morning star, a three-candle bullish reversal pattern formed at the bottom of a downtrend, including gaps, midpoints, and entry setups.

Learn to identify and trade the evening star bearish reversal pattern using three candlesticks, gaps, and midpoint-close rules, with variations and risk management.

Explain how doji candlesticks reveal market indecision when opening equals closing, highlight dragonfly and gravestone variants, and interpret morning star and evening star patterns for potential trend reversals.

Combine candlestick patterns to form a hammer or shooting star, signaling trend reversals as patterns like bullish engulfing, bearish engulfing, piercing line, and dark cloud cover merge.

Explore stock price gaps, their after-hours news causes, and main types—runaway, breakaway, common, exhaustion, and island gaps—highlighting how gaps act as support or resistance and may be filled.

Learn bear and bull harami patterns, their rules, and how to use them to exit trades. See how harami can signal weakening trends and, with reversal candles, enter new positions.

Learn how tweezer top and tweezer bottom candlestick patterns signal trend weakening, their use for exiting trades on higher time frames, and how they relate to other patterns.

Explore how green marubozu candles form support at the body midpoint and near levels, while red marubozu candles create resistance at the high and 50% body level, including pullbacks.

Understand how mutual funds pool money from many investors, managed by experts, invest in assets to meet goals, with rules and fees.

Explore how mutual funds help tax savings, income, and wealth goals via asset management company funds invested in stocks, bonds, commodities, and indices.

Learn how net asset value defines the price of mutual fund units and how NAV is calculated as the current fund value divided by total units, tracking investment growth.

Learn what asset under management (AUM) means for mutual funds, track fund size, and how NAV updates daily but public visibility depends on substantial changes.

Explore the expense ratio in mutual funds, compare direct and regular plans, and learn how daily AUM deductions affect NAV and why direct plans often yield higher NAV.

learn how entry load and exit load work in mutual funds, why exit loads discourage early redemption, and how expense ratio and lock-in periods affect penalties.

Compare buying shares and mutual funds, noting fund managers’ role, minimum investments, price versus nav, and the shift from active trading to long-term investing.

Explore what a benchmark is by comparing mutual fund returns to indices such as Nifty midcap 150 and Nifty 50. Learn how benchmarks measure fund performance against top market indices.

Learn how equity mutual funds invest in stocks across sectoral and thematic categories, including banking, technology, energy, and dividend options, with large, mid, and small cap profiles.

Discover how bonds let individuals lend to companies or governments, earn interest via the coupon rate, and navigate face value, tenure, and liquidity in India.

Learn how bonds are issued in an IPO, rated by agencies from prime to upper medium, and traded in primary and secondary markets, with risks like interest rate and default.

Learn how debt mutual funds invest in bonds and explore categories from overnight to long-duration funds, understanding risk, credit ratings, and how to choose suitable funds.

Learn how index funds mirror market indices like Nifty 50, provide passive exposure, and how ETFs compare as exchange-traded funds, with insight on active versus passive investing.

Learn how mutual fund returns are measured, including absolute/point-to-point returns, annualized and CAGR, and the importance of rolling returns and since-inception figures for a complete view.

Identify key mutual fund risk parameters: alpha, beta, standard deviation, and Sharpe ratio, and learn how to compare funds to a benchmark, interpret performance, and assess risk versus reward.

Learn the basics of forex, foreign exchange, and how exchange rates between INR and USD drive currency conversion and profits when the rupee strengthens or weakens.

Explore why the forex market is the most liquid, with $7 trillion daily, enabling easy entry and exit. Learn that traders predict currency moves, not buy currencies, with high leverage.

Explore how currency pairs are formed in forex, identify base and quote currencies, read exchange rates, and distinguish major, minor (cross), and exotic pairs.

Explain how the spread equals the difference between bid and ask prices, illustrated by a shop example and usd/inr forex, where buying costs the ask and selling earns the bid.

Explain what a lot means in forex using a deck of cards analogy, then describe standard, mini, micro, and nano lots and their base currency units.

Learn what leverage is—a broker loan that increases your trading power, with margin examples from 100% to high leverage and profits, losses, and brokers close trades to prevent negative balances.