☰

Category: Stock Market

What Is Passive Income Through Stocks and How to Build It?

Posted on by Pranav Lodh

Passive income is a prudent way to generate wealth and build stability amidst uncertain times. Hence, many consider renting out properties or investing in startups to earn it.

But did you know, you can earn passively even with stocks? Yes! Passive income through stocks is gaining momentum as more seek extra income without investing much time or effort.

Hence, many aspirants who inquire about or enroll in our stock market classes in Pune also discuss earning passive income through stocks. They are eager to learn how to earn money passively through stocks that generate income with minimal or no effort. If you are one among them, you’ve come to the right place. Whether you are a professional, student, or housewife, if you are actively looking to earn passive income, here is a blog that explains how you can do it through stocks.

What is Passive Income Through Stocks?

Passive income is money that flows in regularly without requiring an ongoing active effort. As for stocks, it often refers to income streams generated from stock market investments. Such stock investments don’t require you to trade actively or indulge in daily stock buying and selling. So, in a way, such stocks are a ‘set it and forget it’ kind of thing. Nevertheless, you must remember, passive income isn’t a get-rich-quick program. Careful analysis and informed choice play as important a role as they do while choosing other stocks you would trade regularly. 

This is where share market classes in Pune play a role! But before you enroll for a share market course, here is an overview of some options that can help you generate passive income via the stock market.

How to Earn Passive Income Through Stock – 5 Popular Options

From dividends to growth stocks, here are five stock market options for passive income.

1. Dividend Stocks

This is the most popular option. Dividends are a portion of profits that companies share with their shareholders periodically. Shareholders receive a dividend per share. Thus, the more shares you own, the more dividends you receive.

Earning dividends requires investing in established companies with a dividend payment history. Accordingly, look for companies with increased dividend payouts for 25+ years. Now, instead of using the payout income, you can also reinvest it and buy more shares with your dividends. This will help you compound your earnings over a period.

2. Stock Lending

Some brokerage firms let you temporarily lend out fully paid shares of select stocks you own to other investors or institutions, usually for short-selling. It helps you earn interest on the shares you lend. But lending stocks requires a brokerage firm that finds borrowers and manages the loan. Any risks? Yes – Borrower defaulting! However, reliable brokerage firms generally have measures to mitigate the risk. Hence, the choice of the firm matters.

3. Index Funds and ETFs

There are collections of stocks to track the performance of market indices like the Nifty 500. These indexes don’t pay dividends directly to the investor. But they help you diversify and leverage long-term potential growth with a relatively low fee.

How do you build this investment? Select a broad-market index fund or ETF in line with your risk tolerance and investment goals. Some funds focus on high-dividend stocks through which you can earn income over time.

From dividends to REITs the opportunities are waiting, Let FinEarn guide you to build smart passive income.

4. REITs (Real Estate Investment Trusts)

Passive income through property renting or leasing is a proven option. However, not everyone has a spare property at their disposal. 

So, does that close the real estate option? No! Instead, REITs open it. These are investment options that help you invest in diverse real estate assets, including commercial properties that produce rental income.

You can invest in Indian REITs listed on the stock exchange, making this option liquid and easily accessible for Indian investors. Besides, while investing in REITs, look for those with high rental yields and long-term growth opportunities. REITs usually offer quarterly distributions based on rental income from properties.

5. Bonds and Fixed Income Stocks

Bonds are another traditional choice. Some options include government bonds, corporate bonds, or debenture stocks that companies from various sectors issue in the market. Many of these instruments provide regular coupon payments (interest) that you can use as passive income.

While choosing bonds, you must look for high-quality bonds from reputable companies. Besides, look for interest rates, maturity periods, and credit ratings to reduce risk.

Want to Unlock the Path to Passive Income? Join Fin Earn Share Market Academy!

One of the best share market classes in Pune, FinEarn Share Market Academy offers comprehensive courses that offer in-depth technical and strategic understanding of various stock market topics. So, whether you are an active trader or someone looking to build passive income, we cover you with our learning programs. Call us at +91 95618 61818 to speak with our experts and learn more about our courses.

What Is Nifty 50 & Sensex? India’s Benchmark Indices Explained

Posted on by Pranav Lodh

As an aspiring stock trader, you must have often come across the terms, the Sensex crossed 80,000 or Nifty fell by X points today! Ever wondered what these terms mean? 

Joining stock trading classes in pune will help you acquaint yourself with them.However, before you begin your journey, learning the basics about the benchmark indices will help you make a more prepared and informed entry into the share market space.

What is Nifty 50?

Nifty means National Stock Exchange Fifty. It is the equity benchmark index of the National Stock Exchange (NSE). The difference between Nifty 50 and Sensex is the number of stocks each has. Nifty 50 comprises stocks from the top 50 of approximately 1600 companies that trade actively in NSE across 24 sectors.While the number may seem small, these 50 stocks constitute about 65% of the total free-float market capitalization of the index.

What is Sensex?

This is the market index of the Bombay Stock Exchange (BSE). The BSE introduced Sensex in 1986, a period when it followed the weighted market capitalization method.Then, in 2003, Sensex moved to the free-float market capitalization method. Sensex has a base value of 100 for calculation.

A significant difference between Sensex and Nifty is that of the base year used for calculation. Thus, the base year for calculation is 1978-79.

How Do You Calculate Nifty?

Nifty 50 uses a methodology weighted based on the free-float market capitalization. This refers to determining the weight of the stock in the index by its market capitalization. However, you must note that only shares publicly available for trade are considered. So, to calculate the Nifty, you must first derive the market capitalization of the constituents by multiplying the number of shares with their prices.

The formula is Market Capitalization = Outstanding Shares x Price

Next, to determine the free-float market capitalization, you must multiply the Investable Weight Factor with the original market capitalization. The Investable Weight Factor signifies the share proportion investors can freely trade in the stock market. So, in other words, it is the percentage of shares that a company’s directors or promoters don’t hold.

Free-float Market Capitalization = Market Capitalization x Investable Weight Factor

Eventually, you must calculate the index value by dividing the current market value by the base market value and later by multiplying it by the base index value (1000).

Index Value = (Current Market Value / Base Market Capital) x 1000

The index indicates the returns an investor can earn if they invest in a particular portfolio.

How to Calculate Sensex?

Sensex uses a free-float market capitalization weighted technique. Let’s see how to calculate the Sensex.

  • Market Capitalization: The total value of a company’s publicly traded shares, which is share price X number of shares.
  • Free Float Factor: This factor counts only the shares available for trading. It doesn’t count promoter or locked in shares, thus providing a realistic picture of liquidity.
  • Index Divisor: A number that maintains index stability during dividends or stock splits.

Let’s look at the formula.

Sensex = Sum of Free-float Market Capitalization of 30 companies / Divisor X Base Index Value. Thus, if the combined market cap of these companies is Rs. 20 lakh crores, and the divisor is 1,000, then Sensex will be 20,00,00,00,00,000 / 1,000 X 100 = 10,00,000 points.

Nifty 50 to Sensex secrets Your journey from stock market beginner to confident trader starts here

Who Makes up Nifty 50?

Some of the sectors that constitute Nifty 50 include:

  • Banking and Financial Services
  • Pharmaceuticals
  • Automobile
  • Fast Moving Consumer Goods
  • Metals and Mining
  • Energy and Utilities
  • Information Technology

To be part of Nifty 50, companies must be:

  • Amongst the top 150 companies by market cap on NSE
  • Adequately liquid and have regular trading volumes
  • Meeting domicile and listing rules
  • Consistently performing financially and have a solid market reputation

Additionally, there must be a balanced sector representation to prevent a few industries from dominating the market.

Who Makes up the Sensex?

Sensex tracks 30 blue-chip firms from sectors like:

  • Energy
  • Consumer Goods
  • Banking and Finance
  • Healthcare
  • Industrial
  • Telecommunications

To be part of Sensex, companies must have:

  • High liquidity
  • Robust market reputation 
  • Proven financial track record
  • Significant free float market capitalization
  • Financial stability
  • Sectoral diversity for a balanced representation

Nifty and Sensex  Differences at a Glance

Here’s what makes Nifty 50 and Sensex different.

AspectNifty 50Sensex
Number of Stocks5030
Base Year19651978-79
Base Index Value1000100
Ownership and ExchangeNSEBSE
Market RepresentationWider market exposure with more stocksMore focused on big players

Want to Champion the Concepts of Nifty 50 and Sensex Trading?

Join FinEarn Share Market Academy! We are one of the best share trading classes in Pune with a proven track record and a comprehensive course curriculum, providing practical exposure. Our learning setup comprises seasoned trainers, an active environment and post-course support to help you become an independent and confident share trader.

If you are prepared to do what it takes to transform into a successful trader, call us at +91 95618 61818 and speak with our experts.

Top 5 Fundamental Ratios Every Indian Investor Should Use

Posted on by Pranav Lodh

Are you looking to become a stock market investor? Then, remember, it is more than just picking stocks based on impulses or tips! Instead, it is about making informed decisions based on various techniques. 

Learning fundamental ratios and using them appropriately is integral to stock investment. However, which fundamental ratios should you, as an Indian investor, know and use? 

As providers of one of the top 10 best online share market courses, we consider this a crucial question. So, here is the answer to it.

5 Types of Fundamental Ratios Investors Must Learn and Use

From Price to Earnings to Debt-to-Equity ratio, here are the ratios to consider.

1. Price to Earnings (P/E) Ratio

It is the ratio of the current share price to the earnings of the company per share. 

The ratio tells you if the company is undervalued or overvalued in the market.

For instance, a company’s overall earning is Rs. 3000, and it has 300 shares trading in the market. Thus, its earning per share is Rs. 10.

Next, let’s say the company’s shares are trading at Rs. 300 per share. Thus, the P/E ratio is,

P/E = 300/30 = 10

In simple words, you are paying Rs. 10 for earning Rs. 1 from the company’s earnings. Thus, you can confidently say that establishments with a higher P/E ratio are much overvalued.

Now, what should be the ideal P/E ratio? There’s no specific answer. While calculating the ratio, you must consider the industry benchmarks and assess the valuation.

2. Dividend Yield

This one is crucial if you are looking for regular income. 

It signifies the yearly dividend payout as the current stock price’s percentage.

The formula is annual dividend per share/market price per share X 100. 

It will show you the return you earn through dividends on your investment.

Let’s say you buy a stock at a market price of Rs. 10. A year or two later, you see the stock price hasn’t changed at all. So, are such stocks good to invest in? 

A quick look will reveal they aren’t, as you’ve earned a zero percent return. 

But have you considered the dividend before making a decision?

Usually, you would go for companies with high dividends. However, it might also signify a declining stock price or shaky payout ratio.

The key to making the right choice? Analyzing the company’s dividend history and the ability to maintain future payouts.

Decode P/E, P/B, and D/E Like a Wall Street Analysis – We’ll Teach You How

3. Price-to-Book (P/B) Ratio

This ratio compares a company’s market capitalization to its book value. It helps you determine if you are paying a reasonable price for the company’s net assets.

So, how do you calculate the P/B ratio?

P/B Ratio = Market Price Per Share / Book Value Per Share.

Suppose a company’s value is Rs. 100. It decides to close shop and gets Rs. 100. But out of this amount, it must pay Rs. 50 as a loan repayment. On the other hand, the company has some assets worth Rs. 20. Thus, the company’s total book value is 100-50 + 20 = Rs. 70

Now, let’s say the total number of outstanding shares was 35. 

So, the firm’s book value per share is 70/35 = Rs. 2.

As for the P/B ratio, let’s say the company’s market share price is Rs. 30. Thus, the P/B ratio will be 30/2 = 15. Companies with a low P/B ratio are considered undervalued. Those with a higher one are overvalued.

4. Current Ratio

Although profitable, companies that cannot repay their short-term debts can face financial issues. Hence, calculating the current ratio is crucial. The formula is,

Current Ratio= Current Assets / Current Liabilities

A ratio greater than 1.0 means the company can meet its short-term liabilities with short-term assets. But a ratio above 1.0 might indicate that the company is accumulating money and not using it efficiently. A ratio below 1.0 signifies risk. It indicates that the company might struggle to cover its debts.

5. Debt-to-Equity (D/E) Ratio

Profits are one part. But what about debts?

That’s where the D/E ratio comes into play.

Debt-to-Equity Ratio = Total Debt / Shareholders’ Equity.

Too much debt can pose a risk. 

The ratio shows you how much debt a company is carrying for every rupee of equity. 

A high ratio shows that a company is more leveraged, resulting in a financial risk. 

Want to Master Fundamental Ratios?

Although not the only one, the fundamental ratio is an important technique that helps you make informed investment decisions. But you must champion them with the right training. So, whether you are looking for share trading or futures and options classes in Pune, FinEarn Share Market Academy has got you covered. We are a reputed institute with a proven track record and successful alumni. 

Want to discover more? Call us at +91 95618 61818.

The Rise of Share Market Classes in Pune for Teenagers and Young Investors

Posted on by Pranav Lodh

The picture 20-25 years ago in Pune Discuss the share market among teenagers or older youngsters, and you’d see yawny faces or people excusing you for a call from home or so!

Cut to present – You see teenagers, who barely earn anything or are still learning, and youngsters, perhaps, who’ve recently begun earning, discussing the share market, talking about IPOs, and new shares, guiding each other and so on over a cutting chai! Now, you would wonder how the picture changed so drastically? 

Time? Perhaps, to an extent. But we feel democratization of access to the share market and the rise of share market classes in Pune have been the change makers. Let us focus on the latter in this blog.

The Why – Factors Bringing Younger Players Closer to the Share Market

From quick access to information to the growing lure of passive income, these four factors have been responsible for the popularity of the share market in recent times.

1. Information at Fingertips

Earlier, share market information was restricted to brokers and the television, neither of which appealed to younger investors. However, today, resources like apps and social media resonate with the younger players who find interacting with them much easier. Besides, easy language builds confidence, sparks interest, and encourages them to trade.

2. Urge to Achieve Financial Independence

Today’s youth doesn’t think conventionally. It doesn’t want to wait until 60 to be financially independent. Accordingly, younger investors look beyond traditional income streams. They play it more smartly, investing in sources that help them generate more income than their career does, thus accelerating their journey to early financial freedom.

3. Access to Trading Platforms

Initially, opening a demat account was a hassle. But today, it is remarkably simple, quick, and effortless. A few clicks on the smartphone and you are done! Such easier entry points into the share market also encourage many Gen Z people to begin trading.

4. Passive Income

Teenagers and younger people are intelligent about money. They don’t want to work for money, but make money work for them. The share market is a potentially promising avenue for such people, offering pathways to produce passive income. It is a strategic move, reducing an individual’s dependence on conventional income. 

Early Start, Bigger Returns – Begin Your Investment Journey with Us.

Lessons learned from COVID! Yes, why not? While all of the above is true, one cannot deny the risk involved, and requires strategic thinking, maturity, and decision-making capabilities in the share market. This is where share market classes in Pune step in. Lately, we’ve seen a dramatic increase in the number of younger people inquiring and registering for our share market courses. Here are some reasons that have brought this noteworthy and positive change.

5 Ways Youngsters Benefit from Share Market Classes in Pune

From decoding the share market to developing unparalleled capabilities, here’s how share market courses in Pune are driving the transformation.

1. Demystifying the Market

Share market classes break down intricate aspects into simpler concepts. Thus, from explaining what a share is to learning various markets, share market courses and classes cover everything essential in a language comprehensible to the youth.

2. Learning Share Market Technicalities

From analyzing fundamentals to technical analysis, professional classes help learn technicalities through practice and not just theory. Such an approach helps learners learn how to make informed decisions and avoid relying on tips or guesswork!

3. Managing Risk

Risk is an integral element of the share market. The courses involve learning how to manage risks through various risk management strategies. The idea is not to eliminate risk but to mitigate its impact and minimize losses to the best possible extent. 

4. Developing Emotional Discipline and a Long-Term Approach

It is very obvious for young blood to get excited and get carried away by emotions. But emotional discipline is one of the cornerstones of share market success. Classes help develop it through experience, practice, and data-based decision-making. Besides, they emphasize developing a long-term approach without falling for fleeting sags or surges.

5. Identifying Opportunities

The share market is full of opportunities, but only for those who can see them. Stock market courses help identify them by analyzing stocks, market trends, company reports, industry performance, and much more. They empower young aspirants to identify opportunities not through impulses or guesses but through an educated viewpoint.

Eager to Begin Your Journey? Join Fin Earn Share Market Academy!

FinEarn Share Market Academy (erstwhile EMS) is one of the leading stock market training institutes with years of experience and a proven track record. 

Our courses are designed for success through capability building and informed decision-making. Based on that, we’ve trained thousands who’ve become successful traders and investors. We applaud your decision to join the stock market at a young age and would love to see you become part of our successful alumni.

So, why wait and think when you can act and do what it takes to accomplish your financial goals? Call us at +91 95618 61818 and begin your journey.

Importance of Risk Management in the Post-COVID Era

Posted on by Pranav Lodh

COVID-19, which was at its peak in 2020-21, was a global nightmare. 

Layoffs, company closures, and uncertainties had gripped us all, leaving us in despair.

But amidst all the bad experiences, the COVID era taught us many lessons.

One of them was the importance of risk management.

The hardships of COVID underlined why managing risks is important to sail through tough times easily, particularly by creating additional sources of income like the share market.

Risk management forms a significant aspect of our stock market courses in Pune. 

But let’s also learn from history to avoid those mistakes and see why risk management is crucial after COVID and how share markets and the best share market courses in Pune help.

Understanding Risk Management – For Individuals as Much as Corporates!

Risk management doesn’t merely apply to corporate companies but also to individuals.

Essentially, managing risks is about anticipating potential setbacks and preparing for them. It is about asking, what could go wrong, and how do I protect myself for tomorrow.

COVID-19 was a massive wake-up call for everyone in the world. It made people realize how harmful relying on a single source of income could be and why you must have an extra layer of financial security to stay afloat.

Why Risk Management Matters More in the Post-COVID Era?

Let’s see why risk management isn’t just good but essential after COVID.

  • Increased Volatility: The world has become more unpredictable and volatile than ever. Rising geopolitical turmoil, economic recessions, and the dynamic landscape make it crucial to be strategically and financially prepared.

  • Changing Job Spectrum: COVID encouraged companies to adopt remote working and automation, making conventional job security history. Many people are exploring the gig market and freelancing opportunities along with their regular jobs.

  • Personal Emergencies: From unforeseen medical bills to making emergency savings, COVID reinforced how quickly life can take a turn. Personal emergencies thus form a significant aspect of managing risks in today’s times.

The above emphasizes the significance of creating an additional income source. With extra money on hand, you can prepare for uncertainties and volatility better. 

So, is investing in the share market an alternative then?

How Can Share Market Trading Contribute to Better Risk Management After COVID?

Adding sources of income refers to diversifying the streams of income. And this is where share market trading and investing step in.

Honestly, during lockdowns, many people reassessed how they earn money. As a result, some of them turned to stock market trading – not to get rich quickly but at least to survive.

And that made sense then as much as it does now! 

When you trade or invest wisely, share markets can help you generate passive income, providing a cushion to the main source, particularly when there’s a disruption.

But here’s the kicker! Investing or trading isn’t devoid of risks. Prices fluctuate. Markets rise and crash. So, is this idea a contradiction to risk management? No. The best share market classes in Pune help you master risk management techniques. Here’s a quick overview.

Don’t Just Hope to Survive Uncertainty — Learn to Thrive! Master Risk Management with Our Share Market Courses in Pune or Online at Finearn Today!

How to Manage Risks in the Share Market – Overview

Share market risk management is an extensive topic. But here are some basic guidelines.

  • Know Your Goals: Establish your financial goals and work towards fulfilling them. Avoid wandering and trading aimlessly. It can lead to abrupt choices. 

  • Knowledge is the Key: Understand how the markets work and the various trading techniques to leverage the right ones at the right time.

  • Make Informed Decisions: Impulsive choices can lead to losses. Analyze stocks, situations, and companies based on your financial goals to make educated decisions.

  • Look at the Bigger Picture: Don’t always chase quick profits. Some stocks are long-term players. Focusing on steady growth and resilience denotes risk-awareness.

  • Control Your Emotions: Markets run on sentiments. But don’t let yours overwhelm you with ups and downs. Stay controlled and focus on your goals.

  • Diversify: This is fundamental to stock market trading and investing. Don’t invest all your capital in a single asset. Diversify as much as possible to reduce risks.

Prepared to Combat Risks Effectively?

EMS is one of the best places to learn how to manage risks and trade in the share market. Our comprehensive share market and future and options trading classes in Pune help you learn how to invest, trade, and earn confidently. 

Important Update!

EMS has now evolved into Finearn Share Market Academy. 

But only the name has changed. Our commitment to excellence and approach are the same. 

We also are happy to expand our offerings to classroom and online learning options. 

As an institute, we are sure this will help strengthen our position in the list of the top 10 best online share market classes in Pune. 

So, join us at Finearn and benefit from our expert guidance that meets modern flexibility. Call us at +91 95618 61818 to know more.

The Role of SEBI in Regulating the Indian Stock Market

Posted on by Pranav Lodh

The Indian stock market is a highly regulated space with various bodies governing it. 

These include the Reserve Bank of India (RBI), the Ministry of Finance that functions through the Department of Economic Affairs (Capital Markets Division), and, of course, the Securities and Exchange Board of India (SEBI).

All these establishments have their unique role in the operations and regulations of the Indian stock market. However, in this blog, we will particularly focus on the role of SEBI.

Our stock market classes Finearn share market academy powered by ems stock market institute cover the role of SEBI in detail. However, if you are a beginner looking to venture into this share market space, this post helps you to overview the fundamental regulatory role of SEBI.

What is SEBI?

SEBI is an instrumental establishment in the Indian financial market. It is the primary regulatory body overseeing the country’s securities market. The Indian Government established it on April 12, 1992, to promote transparency in the country’s investment market. SEBI is headquartered in Mumbai. But it also operates through its various regional offices in Ahmedabad, Chennai, Kolkata, and New Delhi.

Key Responsibilities and Functions of SEBI

SEBI shoulders various responsibilities and performs key functions, contributing to the regulatory landscape of the Indian stock market.

  • Investor Protection: This is SEBI’s top priority. It protects the interests of retail investors through fair and transparent trading practices.

  • Regulating Stock Exchanges: SEBI also oversees the functioning of NSE and BSE to ensure their smooth and fair operations.

  • Insider Trading Prevention: Insider trading is a practice wherein individuals with access to non-public or confidential information to achieve an unfair advantage in trading. SEBI works towards preventing it through insider trading regulations to maintain a level playing field for all the stock market players. 

  • Fraud and Malpractice Prevention: SEBI is an empowered organization that can also implement stringent regulations to curtail market manipulation and various other fraudulent practices.

  • Promoting Fair Trading and Practices: The organization promotes fair practices and a high standard of integrity in the securities market. It has set a code of conduct that it enforces for every market participant, ensuring ethical and transparent practices and market activities.

  • Secondary Market Development: The Secondary market allows players to buy or sell securities after the initial issuance in the primary market. SEBI plays a major role in developing secondary markets through reforms and initiatives that enhance trading transparency, efficiency, and liquidity.

SEBI’s Role as a Regulator

Four to five decades ago, when capital markets emerged, many Indian investors began investing in them. However, with that grew the number of malpractices. These included illegal brokers, fixing prices, and non-adherence to the Companies Act. 

Additionally, the era saw cases of breaches of laws and regulations of the capital market, price rigging, and delays in share capital delivery etc.

While many players suffered, these practices also harmed the stock market, affecting the confidence and trust of new and existing investors and traders.

The above instances and situations drove the establishment of SEBI as a governing body to regulate the stock market’s working conditions and curb stock market malpractices.

SEBI Isn’t Just a Regulator — It’s Your Roadmap to Safe Investing! Learn How with Our Expert-Led Course!

Here’s how SEBI plays a regulatory role in the Indian stock market.

  • Investor Protection

SEBI protects investor interest through fairness and transparency. It regulates mutual funds, brokers, and financial intermediaries to prevent malpractices and fraud.

  • Market Development

The organization also encourages innovations in financial products. It promotes and facilitates the growth and development of a prosperous and vibrant securities market.

  • Market Regulation

SEBI formulates rules and regulations for trading and securities transactions. The establishment also monitors and enforces compliance to prevent unethical practices like price manipulation, insider trading, and fraud.

  • Intermediary Oversight

SEBI also licenses and regulates brokers, investment advisors, portfolio managers, and various other market intermediaries. The organization also sets standards concerning risk management, capital adequacy, and governance.

  • Regulating Companies

Another important aspect of SEBI’s regulatory role is regulating companies. It lays down the rules for companies looking to raise money through IPO and various other ways. The organization ensures fairness and transparency in the process and that investors have access to the information they need while investing in a particular company.

  • Mutual Fund Oversight

SEBI also supervises and regulates mutual funds and other asset management activities, protecting investor interest in these financial products.

  • Corporate Governance

The organization also promotes corporate governance practices in India. It has established rules concerning the appointment of audit committees, independent directors, and various other governance structures, making it imperative for companies to adhere to these rules and regulations. The aim? It is to ensure the companies operate ethically, responsibly, and transparently, benefiting the investors.

Learn SEBI-Complaint Trading with EMS!

As a stock market player, you will be bound by the rules and regulations and obliged to follow them. Our stock market classes in Pune acquaint you with the various aspects of stock trading and delve into the details of SEBI to help you stay compliant. 

We are one of the best places to learn trading. And that’s evident from the success stories we’ve created so far. Want to explore our courses? Call us at +91 95618 61818.

The Significance of Technical Analysis in Stock Market Success

Posted on by Pranav Lodh

The stock market is a pretty complex place. Stocks keep trading. Prices keep rising and tumbling. Some companies hit their highest at a point, while some sink to the bottom.

And this doesn’t happen once in a while but a routine!

Now, as a share market player, you must not look at these as merely events but changes that can affect your investments and profitability. You should be able to analyze what’s happening across your spectrum and make informed forecasts that drive your decisions.

So, how do you do that? Impulses? Of course not! The answer is technical analysis.

Technical analysis forms a crucial aspect of share market classes in Pune.

Comprehensive courses cover it in depth, enabling students to analyze price movements.

However, by overviewing the topic before delving into it, you can prepare for it better and learn related concepts seamlessly. So, why wait then? Let’s see what technical analysis is and what its significance is across the stock market horizon.

What is Technical Analysis?

Technical analysis refers to studying price movements and trading volume with charts and patterns. It is an analysis methodology, which instead of diving into a company’s financials, includes analyzing the behavior of a stock. Thus, the analysis involves spotting trends, market psychology, and momentum.

Technical analysis isn’t a one-time activity but a continuous one. Thus, it is as important for professionals as it is for beginners. However, as the latter, understanding the importance of technical analysis is necessary so that you never miss it.

5 Reasons Technical Analysis Is Critical While Achieving Stock Market Success

From spotting trends to using indicators, here are four factors that make learning technical analysis during share market classes and later using it, significant.

1. Identifying Trends

    Stock prices often follow a particular trend, identifying which helps you make an informed investment decision. It involves understanding whether prices usually move upward (an uptrend), dropping (a downtrend), or moving sideways.

    Recognizing these trends using trendlines (lines that connect the highs or lows on a chart), can increase the chances of making profitable trades. Remember, it is usually more prudent to ride the wave instead of going or betting against it!

    For example, if you see a stock price making higher highs and higher lows on a chart, it indicates an uptrend. Technical analysis would suggest this is a potentially good time to consider buying with the hope that the trend continues.

    2. Recognizing Patterns

      We all follow a particular pattern or routine in life. So, when someone tries to analyze our routines, they will observe specific patterns and draw the required inferences.

      Stock markets are pretty similar. They form recognizable patterns that can provide clues about future price changes or movements. Patterns named Double Top (a bearish reversal pattern), Head and Shoulders, or Triangles (continuation or reversal patterns) signify the psychology of buyers and sellers.

      Mastering the skill of identifying patterns can help you achieve a significant edge in forecasting potential breakouts or price reversals.

      For instance, the head and shoulders indicate a bearish reversal pattern. Identifying this pattern after an upright trend might denote a weakening upward momentum and a downward trend lurking on the horizon, urging you to consider selling the stock.

      3. Identifying Support and Resistance Levels

        Every stock has a support and resistance level. 

        A support level is like a price floor, a level where a stock price historically stops falling and finds buying interest. On the other hand, a resistance level is like a price ceiling, a level after which a stock price has historically stopped rising and experienced selling pressure.

        By identifying these levels with past price action, you can determine the potential entry and exit points for your trades. Thus, buying a stock near a support level and selling it near a resistance level is a fundamental, yet effective strategy.

        However, this is possible only when you learn how to perform technical analysis!

        For example, a stock repeatedly bounces back from Rs. 200 in the past. Thus, you may consider the Rs. 200 support level and look to buy near this level, forecasting another bounce. 

        On the other hand, if the stock couldn’t surpass the Rs. 250 level across multiple instances in history, you may consider Rs. 250 the resistance level – a potential selling point!

        Don’t just invest invest wisely for the future. See how patience pays off!

        4. Using Indicators

          Technical analysis involves mathematical calculations called indicators plotted on price charts. They provide additional insights into the volatility, momentum, and oversold and overbought conditions of a particular stock – just like Moving Average, RSI, and MACD do.

          For example, a Moving Average can iron out price variations and provide a clear view of the underlying trend. The RSI (Relative Strength Index) can help you identify if a stock is potentially oversold or overbought.

          Technical Terms

          • Moving Average: It smooths out price data to identify the direction of a trend over a period. Types include Simple Moving Averages and Exponential Moving Average.

          • MACD: It is a momentum indicator that displays the relationship between two Exponential Moving Averages (EMA)

          • RSI: It is a momentum oscillator that helps measure the pace and change of price movements from 0 to 100.

          5. Prevent Emotional Decision-Making

            Believe it or not, the stock market runs on sentiments! Many of us wouldn’t want to believe it but that’s true, despite advancements in technology and all the good and bad lessons experienced people have had due to emotional decision-making.

            Technical analysis helps you avoid sentimental choices or decision-making. It lets you remove emotions from the stock equations by adopting a purely data-driven approach while making decisions. Thus, you make decisions based on clear signals and patterns rather than trusting your instincts, which may or may not always be right!

            Final Words!

            Mastering technical analysis is essential to become a successful stock market player. It helps you make informed choices and make decisions at potentially the right time based on charts, insights, and patterns. But can you learn this on generic platforms? The answer is a resounding NO! The only place to learn these things formally and effectively with practical experience is share market classes in Pune.

            EMS precisely serves as the place where you can learn the various aspects of the stock market, including technical, strategic, and emotional. Our comprehensive courses cover these dimensions and provide abundant real-time practical exposure so that you step out as a more confident stock market player, capable of playing it independently.

            Want to know more about our courses and classes? Call us at +91 95618 61818 and enroll with us to become a part of our successful alumni.

            The Psychology of Options Trading How to Stay Calm and Make Smart Decisions

            Posted on by Pranav Lodh

            Looking to venture into the exciting realm of options trading? Honestly, it can feel like a rollercoaster ride or navigating a stormy sea. At some point, you would be high on green candles. However, the next moment, a single market move can tumble your position!

            It is because options trading is characterized by high stakes, pacy trading, and immense pressure. One smart move can soar your profits but one wrong decision can undo them. So, how do you deal with it? 

            Of course, you cannot control the market. But you surely control yourself. 

            Staying calm and composed is one of the keys to increasing your chances of becoming a successful options trader. This is something we emphasize during our stock trading classes in Pune. So, here’s how you can champion your emotions during options trading.

            Staying Calm Is it Optional?

            The answer is a resounding NO! However, when you have your hard-earned money at stake, getting swept by emotions, fear, greed, and excitement is easier than you think. But remember, trading is more logical than emotions. Here’s how staying calm helps.

            • You think more clearly (precisely with your brain) and focus on numbers

            • You stay firm with your strategy, rather than running away while the war is on

            • You reason and react similarly, instead of getting carried away by emotions

            • You avoid FOMO trading that’s more of gambling than a thoughtful strategy

            Let’s see how you can master your strategy where you have your emotions involved.

            Staying Calm and Cool – How to Be a Sage During Options Trading?

            Calmness, patience, and logic are attributes you must cultivate while pursuing your stock market education. Here’s how you can be the captain cool of your options trading strategy.

            1. Build a Robust Trading Plan

            Think of it like an anchor that holds you firmly in a storm. 

            A solid plan helps you clearly define your entry and exit criteria, and calculate your risk tolerance level and position sizing before you enter a trade. 

            It also lets you stay firm no matter how turbulent the market weather is. But sticking to your plan and strategy is important as it helps you stay safe and close to your goals.

            You can learn this during your stock market classes in Pune, during which the trainers help you navigate the complex spectrum of options trading and how to create a plan for it.

            2. Determine Your Risk Tolerance

            Risk is a part of trading and investment. Options trading is no exception! But even if it is an inherent characteristic, how you deal with it makes all the difference.

            Thus, before you begin options trading, you must set a risk tolerance level, determining the potential loss you can sustain without letting it affect your emotions.

            Trade only as much as your risk tolerance capacity. You may come across tempting moments. But stay firm with your plan and keep your risk tolerance levels in mind. 

            It is one of the ways to stay potentially safe amidst the turbulent options trading weather!

            3. Refrain from Over-Leveraging

            Leverage is another inherent element of options trading. Indulging in it is fine to a certain extent. However, excessive leveraging can amplify potential gains and losses, making it difficult to control your emotions.

            Note: In options trading, leverage refers to using borrowed capital or an option’s inherent power to enhance potential profits and losses with a smaller initial investment. Leveraging lets you control a larger market position with a smaller capital.

            4. Focus on Learning

            You may do everything to stick to your plan. However, even if you do so, a particular trade may not go your way. Don’t let your emotions loose in situations like these. Instead, learn from such instances and every trade, whether you win or lose.

            5. Take Short Breaks

            Monitoring the market is one thing. But being glued to the system can lead to an emotional block. So, ensure you step away from the screen regularly and take short breaks. Let your thoughts reset and avoid decision fatigue, something common in stock market traders!

            6. Practice Emotional Regulation

            Meditation is a great practice, particularly when you work amidst a speedy, dynamic, and high-pressure environment. Options trading is just about all these aspects! Thus, meditating correctly and under expert guidance can help you develop solid self-control.

            Furthermore, while beginning your day, or making a decision, a few short breaths can help you stay grounded even when your emotions pop up or the tension rises gradually.

            Master the Mind Game of Options Trading – Learn to Trade Smart, Not Emotional!

            Why Stay Away from Impulsive Decisions – In Any Situation!

            Placing a trade merely because the chart looks bullish or doubling down on a losing trade hoping it will bounce back are a couple of examples of impulsive trading.

            Instinctive decisions blindly hope for miracles as they are baseless. However, they’ve been one of the key factors causing the trading ambitions of many to perish!

            Thoughtless choices or decisions usually stem from the following factors. Thus, you must be wary of them and control your emotions during such situations.

            • A win that drives overconfidence or over-excitement

            • Generic news, social media updates, or random advice and tips

            • Desperation or frustration after a loss

            Remember, impulsive choices and decisions can cost you real money and pose a major dent in your confidence and consistency.

            Want to Become a Learned and Sorted Options Trader?

            Enroll in EMS, one of the best share trading classes in Pune!

            While including technical aspects, our courses stock trading classes in Pune also cover the emotional and strategic facets of options trading.

            We introduce you to techniques to maintain emotional control and help you develop through constant practice and real-world exposure.

            So, why just think of venturing into the potentially rewarding domain of options trading? Join us and begin your journey confidently. Call us at +91 95618 61818 to learn more.

            The Power of Patience Why Long-Term Investing Wins?

            Posted on by Pranav Lodh

            Feel drawn towards quick return schemes, trades, and investments? Honestly, at some point, these instantaneous returns catch the fancy of all, whether beginners or seasoned.

            Although valid and widely used by new and experienced investors, short-term return isn’t the only strategy in the share market. 

            Instead, the stock market is like an ocean. But it is up to you whether you build minuscule profits on little ripples or look at the larger picture and capitalize on the big waves!

            Now, you must be wondering what exactly we are referring to. 

            It is patience – a decisive factor that separates wealthy investors from the average ones.

            Patience is amongst the cornerstones of long-term investments. 

            Even in our stock market classes in Pune, we emphasize the significance of patience and long-term investment as part of a strategy. 

            Our courses thus encourage aspirants to be patient, particularly during short-term turbulences, and stay strong amidst sentimental waves.

            However, how does long-term investment form a winning strategy? Let’s see it in this post.

            What is Long-Term Investing?

            It is a strategy under which you buy stocks, mutual funds, or other assets to hold them for several years or decades based on their potential. Long-term investing involves looking beyond short-term fluctuations, variations, or upheavals. Rather, they insist on looking at the larger picture and retaining investments for a longer period to build wealth.

            Patience, call it an approach, attribute, or strategy, is integral to long-term investments. It is a powerful weapon that can work wonders for you in different ways. Let’s look at them.

            5 Ways Patience and Long-Term Investments Form a Winning Combination!

            From the compounding effect to avoiding impulsive decisions, here are five ways you can benefit from patience and long-term investments.

            1. Compounding Returns

              Albert Einstein once addressed compound interest as the eighth wonder of the world. And he was right about it as compounding returns are more delightful than regular interest.

              Compounding is when your earnings begin building their own earnings.

              So, it is like planting a seed. A single seed grows into a tree, which in turn produces more seeds, and so on. The longer you keep your investments, the greater the snowball effect.

              Initially, you may have smaller gains. However, those gains begin earning, contributing to larger gains, strengthening and fueling your wealth-building engine.

              Short-term trading lets you earn quick returns. However, you don’t benefit from the compounding effect that long-term investments create.

              2. Sail Through the Quick Storms

                Ups and downs are integral to the market.

                Short-term traders usually attempt to time the market – buying low and selling high consistently. But doing so and maintaining it is challenging, even for experienced players.

                Long-term investments take you to a completely different league where players stay unperturbed by temporary upheavals and focus on the broader picture.

                Thus, a temporary downfall of a sector or a company doesn’t matter as much to them. They will continue to keep their money as is in it and wait for the situation to change.

                It is similar to sailing through a squall (a localized storm). You don’t abandon the ship but batten down the hatches (prepare for the crisis) and stay put until the storm clears.

                3. Reduced Transaction Costs

                  Constant buying and selling incur transaction fees, brokerage, and potential taxes on short-term gains. Often, these charges affect profits and therefore overall returns.

                  However, a long-term approach reduces these costs, making more money work for you.

                  Besides, who would like to stay glued to the television or the internet throughout the day watching updates, news, and charts?

                  Long-term investments help save time, energy, and stress involved in timing the market every day. Apart from that, you also keep your transaction fees to a minimum. 

                  All in all, long-term investments let you focus on the wider horizon of returns.

                  4. Leverage the Growth Potential of Promising Companies and Sectors

                    You can see thousands of companies trading in the stock market. While some pack a short profit punch, a few others may have a solid long-term growth potential.

                    Long-term investments let you leverage the growth of such companies and sectors. 

                    Speaking of sectors, for example, renewable energy, real estate, FMCG, etc., may not necessarily show short-term spikes. However, they have immense long-term potential.

                    Besides, by investing in such companies and sectors, you aren’t merely trading for quick profits but contributing your bit to their broader objectives. 

                    For example, investing in a company that deals in solar energy-related solutions and services refers to supporting the sector’s growth and the country’s holistic energy goals.4. 

                    5. Avoid Instinctive Decisions

                    Short-term market swings often take you on an emotional rollercoaster that leads to hassled, rash, and impulsive decisions. Fear can compel you to sell at low prices and greed or excitement can make you buy at prices higher than expected.

                    However, long-term investments keep you potentially secure from these elements. 

                    They encourage a more rational, informed, and disciplined approach. 

                    In that case, you are less likely to make a panic sell or purchase if you have an investment spectrum that is years-wide!

                    Tired of Chasing Quick Gains? Discover the Secret to Real Wealth – Master Long-Term Investing with Our Proven Stock Market Strategy Course!

                    Should You Ditch Short-Term Trading?

                    No! Ditching one strategy for another doesn’t work in the share market unless it is too weak or a potential loss-maker.

                    Remember, short-term trading is also a strategy. Many have carved success from it.

                    However, you shouldn’t rely on it alone. Whether you are a beginner or an experienced player, you must blend and balance both to offset the negative impact of both.

                    Of course, nothing is assured in the stock market. Nevertheless, this is a much more intelligent and wise strategy, considering the inherent nature of the stock market.

                    Thus, while you trade some stocks and earn quick money, a few other long-term investments can act as an anchor preventing your investments from drifting anywhere in turbulent waters or environments.

                    Want to Learn More About Trading Strategies?

                    Join EMS, stock market classes in Pune that thousands across the city and beyond, trust! 

                    We are a reputed share market institute that offers comprehensive courses and practical exposure through real-time practice sessions. 

                    While explaining technical topics, our experienced faculty members also train you on different strategies and approaches. 

                    Thus, when you step out, you do so as a more prepared share market player.

                    So, why wait? Begin your stock market journey confidently with our stock market classes in Pune. Call us at +91 779-688-1234 to explore more about our courses and support.

                    Effect of US Is Imposing Extra Tariffs on India’s

                    Posted on by site_admin

                    Recently, the United States decided to impose higher taxes, known as tariffs, on many goods imported from India. This decision is a response to what the US sees as unfair trade practices by India. Let’s break down what this means, why it’s happening, and how it might affect both countries, especially India.

                    Why Did the US Take This Step?

                    The US has long complained that India charges high taxes on goods coming into the country. For example, while the US charges just 2.5% tax on cars coming from other countries, India charges as much as 70% on cars coming from the US. In other areas like electronics and food items, India’s import taxes are also much higher than those of the US.

                    Here are a few examples:

                    • Cars: 2.5% tax in the US vs. 70% in India

                    • Electronics like routers: No tax in the US vs. 10–20% in India

                    • Apples: No tax in the US vs. 50% in India

                    • Rice (with husk): Less than 3% in the US vs. up to 80% in India

                    The US also says India makes it hard to do business by having too many rules, licenses, and strict product standards. According to a US trade report, if India made it easier to trade, the US could sell over $5 billion more goods every year to India.

                    What Will Happen to Indian Exports?

                    From April 9, 2025, Indian goods entering the US will face a new tax of 27%. This means American buyers will have to pay more for Indian goods, which might make them less interested in buying them. Here are the main sectors that could be affected:

                    1. Textiles and Clothing
                    India exported over $8 billion worth of clothing and textiles to the US in 2024. These products usually have low profit margins, so even a small tax increase can make them too expensive. However, India might still be better off than competitors like Bangladesh, Sri Lanka, and Vietnam, whose goods are now facing even higher US taxes.

                    2. Pharmaceuticals (Medicines)
                    Indian pharmaceutical stocks took a major hit on Friday after US President Donald Trump hinted at potential import tariffs on medicines. This unexpected announcement shook investor confidence, especially after a recent wave of optimism that the sector would be exempt from new trade barriers.

                    3. Electronics and IT Products
                    India exports things like smartphones, switches, and routers. The US currently doesn’t tax these products, but India does. So, the US will now do the same in return. This might hurt India’s growing electronics business, although semiconductors (a key export) are exempt from the new tax.

                    4. Agriculture
                    India exports seafood, rice, and vegetable products worth about $5 billion to the US. These will now face higher taxes, which could reduce their demand.

                    5. Automobile Components
                    Most car parts and two-wheelers from India are not affected by this new tax directly. However, under another US law, they may still face a 25% tax, which can make them more expensive for US buyers.

                    Trade wars affecting markets? Stay ahead with EMS – enroll in our industry recognized share market classes and grow your wealth strategically.

                    What Can India Do?

                    1. Talk It Out
                    India and the US are already in discussions to create a new trade agreement. India can use this situation as a reason to speed up talks and work out a fair deal. Areas like digital trade, product standards, and tariffs could be included in these discussions.

                    2. Study the Impact
                    Indian businesses should study how these new taxes will affect their supply chains and profits. By understanding which products are most affected, they can make better decisions.

                    3. Find New Opportunities
                    Some of India’s competitors are facing even higher tariffs. This could help Indian businesses find new customers or grow their presence in the US market by being slightly more affordable than others.

                    Conclusion

                    The trade fight between India and the US could be challenging, especially for Indian exporters. But it also gives India a chance to rework trade policies and strengthen its global trade relationships. With smart planning and negotiation, India can manage these new challenges and possibly even turn them into opportunities. To better understand such economic shifts, learn more with EMS – Pune’s trusted stock market institute.

                    Learners

                    NISM Certified

                    Active Traders

                    Visitors