Share Market

Please find the requested information regarding stock market operations and trading principles below:

Market Analysis and Price Movement

To predict whether a stock's price will rise or fall, investors typically utilize Technical Analysis (charts, moving averages, and 200-day averages) alongside Fundamental Analysis (profits, P/E ratios, and management quality). Generally, growing profits and high demand drive prices up, while weak financial results or heavy selling pressure cause prices to decline.

Night Trading and Market Hours (IST)

During the night in India, the US stock markets (NASDAQ/NYSE) are active from approximately 7:00 PM or 8:00 PM until 1:30 AM or 2:30 AM IST. Domestically, the Commodity Market (MCX) remains open until 11:30 PM or 11:55 PM. Additionally, the After-Market Order (AMO) facility allows for order placement throughout the night.

Expected Returns on Investment

With a capital of ₹100,000, an experienced trader may earn between ₹5,000 and ₹20,000 per month (5% to 20%+). However, due to high risk, beginners are advised to target a more conservative monthly return of 2% to 5%.

Risk Management and Trading Rules

The "7% Rule" is a risk management principle suggesting that a stock should be sold if its price drops 7% below the original purchase price. Regarding trade volume, a "standard lot" in the US market typically consists of 100 shares.

Market Ownership and Transaction Costs

Reports indicate that the top 10% of U.S. households own approximately 90% of the stock market. Regarding transaction costs, selling shares incurs brokerage fees (₹0–20), Securities Transaction Tax (STT) (0.1%), DP charges (₹13–20), SEBI turnover fees, stamp duty, and 18% GST. While delivery trade brokerage is often minimal, intraday trades typically cost up to ₹20 per trade.

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