Moshahid Project

A FIELD STUDY ON TRADER BEHAVIOUR IN STOCK MARKET
Chapter 1
Introduction
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ABBS/MH/GS/20YUC26063
Introduction: -
The term stock market refers to several exchanges in which shares of publicly held
companies are bought and sold. Such formal exchanges and via over-the-counter
marketplace that operate under a defined set of regulations.
Both “stock market” and “stock exchange” are often used interchangeably. Traders in
the stock market buy or sell shares on one or more of the stock exchanges that are
part of the overall stock market.
The leading U.S. stock exchanges include the New York Stock Exchange (NYSE)
and the Nasdaq.
Key Takeaways
 Stock markets are venues where buyers and sellers meet to exchange equity
shares of public corporations.
 Stock markets are components of a free-market economy because they enable
Democratized access to investor trading and exchange of capital.
 Stock markets create efficient price discovery and efficient dealing.
 The U.S. stock market is regulated by the Securities and Exchange
Commission (SEC) and local regulatory bodies.
Understanding the Stock Market

The stock market allows buyers and sellers of securities to meet, interact, and
transact. The markets allow for price discovery for shares of corporations and serve
as a barometer for the overall economy. Buyers and sellers are assured of a fair price,
high degree of liquidity, and transparency as market participants compete in the open
market.
The first stock market was the London Stock Exchange which began in a

coffeehouse, where traders met to exchange shares, in 1773.The first stock exchange
in the United States began in Philadelphia in 1790. The Buttonwood Agreement, so
named because it was signed under a buttonwood tree, marked the beginning of New
York’s Wall Street in 1792. The agreement was signed by 24 traders and was the
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first American organization of its kind to trade in securities. The traders renamed
their venture the New York Stock and Exchange Board in 1817.
A stock market is a regulated and controlled environment. In the United States, the
main regulators include the Securities and Exchange Commission (SEC) and
the Financial Industry Regulatory Authority (FINRA).
The earliest stock markets issued and dealt in paper-based physical share certificates.
Today, stock markets operate electronically.
Stock Market Works

Stock markets provide a secure and regulated environment where market participants
can transact in shares and other eligible financial instruments with confidence, with
zero to low operational risk. Operating under the defined rules as stated by the
regulator, the stock markets act as primary markets and secondary markets.
As a primary market, the stock market allows companies to issue and sell their
shares to the public for the first time through the process of an initial public
offering (IPO). This activity helps companies raise necessary capital from investors.
A company divides itself into several shares and sells some of those shares to the
public at a price per share. To facilitate this process, a company needs a marketplace
where these shares can be sold and this is achieved by the stock market. A listed
company may also offer new, additional shares through other offerings at a later
stage, such as through rights issues or follow-on offerings. They may even buy
back or delist their shares.
Investors will own company shares in the expectation that share value will rise or
that they will receive dividend payments or both. The stock exchange acts as a
facilitator for this capital-raising process and receives a fee for its services from the
company and its financial partners. Using the stock exchanges, investors can also
buy and sell securities they already own in what is called the secondary market.
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The stock market or exchange maintains various market-level and sector-specific

indicators, like the S&P (Standard & Poor’s) 500 index and the Nasdaq 100 index,
which provide a measure to track the movement of the overall market.

Following an IPO, the stock exchange serves as a trading platform for buying and
selling the outstanding shares. This constitutes the secondary market. The stock
exchange earns a fee for every trade that occurs on its platform during secondary
market activity.
Functions of a Stock Market

The stock market ensures price transparency, liquidity, price discovery, and fair
dealings in trading activities.
The stock market guarantees all interested market participants have access to data for
all buy and sell orders, thereby helping in the fair and transparent pricing of
securities. The market also ensures efficient matching of appropriate buy and sell
orders.
Stock markets need to support price discovery where the price of any stock is
determined collectively by all of its buyers and sellers. Those qualified and willing
to trade should get instant access to place orders and the market ensures that the
orders are executed at a fair price.
Traders on the stock market include market makers, investors, traders, speculators,

and hedgers. An investor may buy stocks and hold them for the long term, while a
trader may enter and exit a position within seconds. A market maker provides
necessary liquidity in the market, while a hedger may trade in derivatives.
Stock Markets Are Regulated

Most nations have a stock market, and each is regulated by a local financial regulator
or monetary authority, or institute. The SEC is the regulatory body charged with
overseeing the U.S. stock market.
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The SEC is a federal agency that works independently of the government and
without political pressure. The mission of the SEC is stated as “protecting investors,
maintaining fair, orderly, and efficient markets, and facilitating capital formation.”
Companies listed on the stock market exchanges are regulated, and their dealings are
monitored by the SEC. In addition, the exchanges set certain requirements such as
mandating timely filing of quarterly financial reports and instant reporting of
relevant corporate developments, to ensure that all market participants are equally
informed.
Failure to adhere to the regulations can lead to suspension of trading and other
disciplinary measures.
The Significance of the Stock Market

The stock market is a component of a free-market economy. It allows companies to
raise money by offering stock shares and corporate bonds and allows investors to
participate in the financial achievements of the companies, make profits
through capital gains, and earn income through dividends. The stock market works
as a platform through which savings and investments of individuals are efficiently
channeled into productive investment opportunities and add to the capital formation
and economic growth of the country.
Alternate Trading System

Alternative trading systems are venues for matching large buy and sell transactions
and are not regulated like exchanges. Dark pools and many cryptocurrency
exchanges are private exchanges or forums for securities and currency trading and
operate within private groups.
Investor Trade on the Stock Market
Stockbrokers act as intermediaries between the stock exchanges and the investors by
buying and selling stocks and portfolio managers are professionals who invest
portfolios, or collections of securities, for clients. Investment bankers represent
companies in various capacities, such as private companies that want to go public via
an IPO or companies that are involved in pending mergers and acquisitions.
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History of Stock Market
The stock market can feel like a vast, nebulous force that’s difficult to comprehend.
Yet these markets had humble beginnings in Western Europe in the 1600s.
The Idea of a Stock Market

A stock exchange or stock market is a physical or digital place where investors can
buy and sell stock, or shares, in publicly traded companies. The price of each share is
driven by supply and demand.
The more people want to buy shares, the higher the price goes. Less demand, and the
price of a share drops. Stock markets now exist in most countries, but the first
appeared in 17th century Amsterdam.
Stock Market Timeline

Here is a timeline of major events in the stock market’s history:
• Late 1400s: Antwerp, or modern-day Belgium, becomes the center of international
trade. Merchants buy goods anticipating that prices will rise in order to net them a
profit. Some bond trading also occurs.
• 1611: The first modern stock trading is created in Amsterdam. The Dutch East India
Company is the first publicly traded company, and for many years, it is the only
company with trading activity on the exchange.
• Late 1700s: A small group of merchants made the Buttonwood Tree Agreement.
The men meet daily to buy and sell stocks and bonds, a practice that eventually comes
to form the New York Stock Exchange.
• 1790: The Philadelphia Stock Exchange is formed, helping spur the development of
the U.S.’s financial sectors and the country’s expansion west.
• 1896: The Dow Jones Industrial Average is created. It initially has 12 components
that were mainly industrial companies.
• 1923: The early version of the S&P 500 is created by Henry Barnum Poor’s
company, Poor’s Publishing. It begins by tracking 90 stocks in 1926.
• 1929: The U.S. stock market crashes after the decade-long “Roaring 20s,” when
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speculators made leveraged bets on the stock market, inflating prices.

• 1941: Standard & Poor’s is founded when Poor’s Publishing merges with Standard
Statistics.
• 1971: Trading begins on another U.S. stock exchange, the National Association of
Securities Dealers Automated Quotations, otherwise known as the NASDAQ.
• 1987: Corporate buyouts and portfolio insurance helped prices in the market run up
until Oct. 19, what becomes known as “Black Monday.”
• 2008: The stock market crashes after the boom and bust of the housing market,
along with the proliferation of mortgage-backed securities in the financial sector.
First Stock Created

The idea of trading goods dates back to the earliest civilizations. Early businesses
would combine their funds to take ships across the sea to other countries. These
transactions were either implemented by trading groups or individuals for thousands
of years.
Throughout the Middle Ages, merchants assembled in the middle of a town to

exchange and trade goods from countries worldwide. Since these merchants were
from different countries, it was necessary to establish a money exchange, so trading
transactions were fair.
Antwerp or Belgium today, became the center for international trade by the end of the
1400s. It’s thought that some merchants would buy goods at a specific price
anticipating the price would rise so they could make a profit.
For people who needed to borrow funds, wealthy merchants would lend money at
high rates. These merchants would then sell the bonds backed by these loans and pay
interest to the other people who purchased them.
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Invention of Stock Market

The first modern stock trading was created in Amsterdam when the Dutch East India
Company was the first publicly traded company. To raise capital, the company
decided to sell stock and pay dividends of the shares to investors. Then in 1611, the
Amsterdam stock exchange was created. For many years, the only trading activity on
the exchange was trading shares of the Dutch East India Company.
At this point, other countries began creating similar companies, and buying shares of
stock was all the rage for investors. The excitement blinded most investors and they
bought into any company that began available without investigating the organization.
This resulted in financial instability, and eventually in 1720, investors became fearful
and tried to sell all their shares in a hurry. No one was buying however, so the market
crashed.
Another financial scandal followed in England shortly after— the South Sea Bubble.
But even though the idea of a market crash concerned investors, they became
accustomed to the idea of trading stocks.
History of Stock Exchange in India

The first organized stock exchange in India was started in 1875 at Bombay and it is
stated to be the oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started to
facilitate dealings in the shares of textile mills there. The Calcutta stock exchange was
started in 1908 to provide a market for shares of plantations and jute mills.
Then the madras stock exchange was started in 1920. At present there are 24 stock
exchanges in the country, 21 of them being regional ones with allotted areas. Two
others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the
Counter Exchange of India (OICEI), have mandate to have nation-wise trading.
They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai,

Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur,
Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.
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The Stock Exchanges are being administered by their governing boards and executive
chiefs. Policies relating to their regulation and control are laid down by the Ministry
of Finance. Government also Constituted Securities and Exchange Board of India
(SEBI) in April 1988 for orderly development and regulation of securities industry
and stock exchanges.
Stock Market Trend in 2022
Inflation and banking sector

The first thing you should pay attention to in 2022 is inflation. It disturbs everyone
because it influences the price of goods that we purchase. To conquer inflation, we
need to decrease the demand for goods or take a part of money away from the system
Energy Sector Investing

In 2022, the energy sector will also provide interesting investment opportunities. The
pandemic and focus on green energy entailed an energy crisis, which made
hydrocarbons prices grow.
Investments in biotech
Banking and oil sectors are for conservative investors: the annual return can hardy
reach 100% there. The year-2021 has shown that you can have a return of 100%
overnight.
Metaverse
Another hot topic of 2022 might be the metaverse. Large tech companies are peaking
at virtual reality, making this issue more and more popular.
Closing thoughts
2020: coronavirus; stock indices collapse but 4 months later renew all-time highs.
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The first step towards making a career in the stock market is always checking on how
much aptitude you have for the workings the market you are halfway there. There is
nothing as hard and fast rule to have a degree in Finance to make a Career in Stock
Market. Even if you are a B.Sc/B.Tech or 12th pass out, you have equal chances to
become a successful career in this domain.
The Stock market is an emerging place to start your career with. Day by day it is
getting bigger, and many startups are setting up every day in the country. The
opportunity to become an entrepreneur is also straightforward in the stock market.
In India, young people are often reluctant to make the Stock market their Career
choice as they get scared by any kind of financial investment required in the process.
But the growth of this industry in the last few decades is phenomenal and one who is
passionate can seriously turn their dreams into reality by choosing the right path
Career options available in the Stock Market:
• Market maker
• Stockbroker
• Sub broker
• Research analyst
• Trader for hedge funds
• Personal finance expert for clients of broking house
• Risk mitigation
required to make a successful Career in Stock Market
• Be passionate: As the market requires continuous learning and improving,

being passionate about it is something that is of utmost priority. You need motivation
from within to grow by making you aware of all the new nuances and facts of the
industry
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• Finalize your interest Area: Since there are a plethora of options under the
Stock market, you should demarcate your interest area. Within the Stock market, you
can choose to work in Broking and distribution, asset management, be a trainer,
financial advisor, etc. depending upon your interest. Having a clear idea of which
field interests, you the most will help make smarter career sections.
• Decision making: Once you have finalized your field of interest, now it’s the
turn to have the complete knowledge about that particular field. Decide by making
smart choices which courses you can opt for, which training you should take to
become well versed in this domain.
• Read Tirelessly: Reading is something that cannot be taken for granted. All
the successful people in the world had good reading habits. Particularly in this field,
one needs to be more proactive towards reading in order to understand the market in a
better way.
• Choose a Right mentor: It's a career where the business is often cyclical in
nature and the same will affect your performance as well. So, it's always good to have
a mentor who can predict the situation and work on your skills with time.
Certificates/Courses an individual can opt for
• Few easy and short-term certificates where you can get an understanding of
the different avenues of the market
• NISM/NCFM Certification as they are nationally recognized and also not

expensive
• MBA in Finance is an added advantage while choosing your Career in Stock

Market
Scope of the Stock Market
Making money is everyone’s dream but people often get scared by the risks. Stock
Market is one such field where a person having its knowledge is prepared to take a
calculated risk which in return gives him a profit multiplied by manifolds.
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Investing in many different stocks can help build your wealth by leveraging growth in
different sectors of the economy, resulting in a profit even if some of your individual
stocks lose value.
• Dividend Income
Some stocks provide income in the form of a dividend. While not all stocks offer
dividends, those that do deliver annual payments to investors. These payments arrive
even if the stock has lost value and represents income on top of any profits that come
from eventually selling the stock. Dividend income can help fund a retirement or pay
for even more investing as you grow your investment portfolio over time.
• Gain in Investment
One of the primary benefits of investing in the stock market is the chance to grow
your money. Over time, the stock market tends to rise in value, though the prices of
individual stocks rise and fall daily. Investments in stable companies that are able to
grow tend to make profits for investors. Likewise, investing in many different stocks
will help build your wealth by leveraging growth in different sectors of the economy,
resulting in a profit even if some of your individual stocks lose value.
• Diversification
For investors who put money into different types of investment products, a stock
market investment has the benefit of providing diversification. Stock market
investments change value independently of other types of investments, such as bonds
and real estate. Holding stock can help you weather losses to other investment
products. The stock also adds risk to a portfolio, as well as the potential for large,
rapid gains, helping investors avoid risk-averse or overly conservative investment
strategies.
• Ownership
Buying shares of stock means taking on an ownership stake in the company you
purchase stock in. This means that investing in the stock market also brings benefits
that are part of being one of the business owners. Shareholders vote on corporate
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board members and certain business decisions. They also receive annual reports to
learn more about the company. Owning stock in the company you work for can be a
way to express loyalty and tie your personal finances to the success of the business as
a whole.
Stock Market thus can help you kick start your Career if you are a fresher or
experienced in any domain. Choosing the right strategy and optimum use of your
potential is the need to excel in the field.
Functions of Stock Exchange
Following are some of the most important functions that are performed by stock
exchange:
1. Role of an Economic Barometer: Stock exchange serves as an economic

barometer that is indicative of the state of the economy. It records all the major and
minor changes in the share prices. It is rightly said to be the pulse of the economy,
which reflects the state of the economy.
2. Valuation of Securities: Stock market helps in the valuation of securities

based on the factors of supply and demand. The securities offered by companies that
are profitable and growth-oriented tend to be valued higher. Valuation of securities
helps creditors, investors and government in performing their respective functions.
3. Transactional Safety: Transactional safety is ensured as the securities that are

traded in the stock exchange are listed, and the listing of securities is done after
verifying the company’s position. All companies listed have to adhere to the rules and
regulations as laid out by the governing body.
4. Contributor to Economic Growth: Stock exchange offers a platform for

trading of securities of the various companies. This process of trading involves
continuous disinvestment and reinvestment, which offers opportunities for capital
formation and subsequently, growth of the economy.
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5. Making the public aware of equity investment: Stock exchange helps in

providing information about investing in equity markets and by rolling out new issues
to encourage people to invest in securities.
6. Offers scope for speculation: By permitting healthy speculation of the traded

securities, the stock exchange ensures demand and supply of securities and liquidity.
7. Facilitates liquidity: The most important role of the stock exchange is in

ensuring a ready platform for the sale and purchase of securities. This gives investors
the confidence that the existing investments can be converted into cash, or in other
words, stock exchange offers liquidity in terms of investment.
8. Better Capital Allocation: Profit-making companies will have their shares

traded actively, and so such companies are able to raise fresh capital from the equity
market. Stock market helps in better allocation of capital for the investors so that
maximum profit can be earned.
9. Encourages investment and savings: Stock market serves as an important

source of investment in various securities which offer greater returns. Investing in the
stock market makes for a better investment option than gold and silver.
Features of Stock Exchange:
• A market for securities- It is a wholesome market where securities of

government, corporate companies, semi-government companies are bought and sold.
• Second-hand securities- It associates with bonds, shares that have already

been announced by the company once previously.
• Regulate trade in securities- The exchange does not sell and buy bonds and
shares on its own account. The broker or exchange members do the trade on the
company’s behalf.
• Dealings only in registered securities- Only listed securities recorded in the

exchange office can be traded.
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• Transaction- Only through authorized brokers and members the transaction

for securities can be made.
• Recognition- It requires to be recognized by the central government.
• Measuring device- It develops and indicates the growth and security of a

business in the index of a stock exchange.
• Operates as per rules– All the security dealings at the stock exchange are
controlled by exchange rules and regulations and SEBI guidelines.
To Qualify for Long-term Financing
Commercial banks provide short-term loans most of the time. Therefore, the stock
market serves as a source of long-term funding. If a firm want to list its shares on a
stock exchange, it must adhere to the following laws and regulations.
To Raise Capital
The primary function of a stock exchange is to assist companies raise capital. It was
established to provide the necessary funds for the country’s enterprises to operate.
In order to achieve this objective, a private corporation will typically distribute stock
certificates to the general public. By selling more shares of stock, the corporation can
increase its capital by raising more funds.
To Protect Fraudulently
In addition, it prevents fraud. The norms and regulations of a stock exchange are
always strictly adhered to. With these laws and restrictions, it may be able to prevent
excessive trading in securities and price fluctuations.
The government also has the authority to control and monitor the stock market. In this
approach, unscrupulous individuals could take advantage of less-savvy investors, and
it is up to the stock to prevent this from happening.
Increasing the Efficiency of Trades
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Trading stocks and other investment vehicles becomes much simpler when govern by
laws. Without this closely controlled and well-coordinated stock market, it would be
impossible to trade equities globally.
Using the stock exchange, anyone or any firm can purchase or sell stock in another
company. There are millions of separate transactions occurring with the shares of
thousands of different companies at any given time. As a global trading platform, the
stock market facilitates communication between buyers and sellers by serving as a
bridge.
To Conduct Honest and Operation
People created the stock market to make purchasing and selling financial assets
simpler and less time-consuming. With the assistance of a stock market, investment
capital is channel into more productive industries.
If a company has strong outcomes and a great deal of potential, it will have no trouble
obtaining financing. Thus, it is the responsibility of stock exchanges to safeguard the
interests of both lenders and investors.
Convenience – Objectives of Stock Exchange
The primary objective of the stock exchange is to protect the interests of businesses
and investors while ensuring as efficient trade as feasible. By using a stock exchange,
investors can gauge the direction of the market. It accomplishes this by reinvesting
the funds in productive enterprises, so contributing to the national economic
expansion.
Both Honesty and Safety are Crucial
You cannot legally sell stocks on any market if you lack access to trustworthy and
accurate information. The stock exchange compels all trading firms to maintain a
high level of transparency. This ensures that the interests of investors are protect-able.
This affords anyone who may choose to invest the opportunity to investigate the
associated dangers. Because of this, the aims of the stock market are ambitious, and
the stock market’s performance is vital to the economic progress of a nation.
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Regulation and Control of the Market
Government agencies and officials collaborate closely and effectively with stock
markets. Unregulated markets may be detrimental to the generation of new capital.
Another objective of stock exchange is the restrictions being implement in this

industry. It is to prevent people from engaging in unlawful activities on the stock
market. The stock market promotes capital growth by ensuring investor safety and
fostering an environment that values transparency.
Expansion of the Economy
Giving money to firms accelerates economic expansion. When markets are not
controlled, capital formation might be hindered. Because stock markets are governed
by so many rules; it is conceivable for trade contracts between strangers from distant
regions of the world to be honor. This is one of the primary objectives of the stock
market.
Teach Individuals to Save Money
People are more willing to save their money if they believe they can profit from it.
With the use of a stock market, you may determine the value of a variety of assets.
The frequent buying and selling on a stock exchange allows for the estimation of a
security’s price.
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Chapter 2
Research Design
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2.1 Scope of the study
 project the scope is limited to some prominent stock market in the stock market
industry. analyzed the trader behavior depending on their Trading skills through
the Price action and fundamental analysis.
 In this study attempts are made to discover in general the rates and trends of
returns both in short run and long run-on stock listed on India’s Premier Stock
Exchange.
 It will also be useful to the investor’s inn deciding whether or not to invest in a
particular stock on the basis of its price.
 It will also be useful to the colleges and Management Institutes as well as future
researches in this area.
2.2 Objective of the study.
 To analyses the level of Trader awareness on Stock market

 To understand the functioning of Stock market.
 To find out opinions on Trading in Stock market.
 To give suggestions that would help enhancing trading awareness and alertness in
trading through stock market.
2.3 Methodology.
The sample size is restricted to only 90 respondents. The data have been collected
from consumers in Bangalore city only. The study was conducted within a small-time
frame. Results are based on the opinions and response of the respondents. So, hidden
information and lack of interest on the part of respondents cannot be easily identified.
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Sampling Plan
I collected the information through a questioner made by me.
Sample unit: -
In this study sample unit represents one individual graduate in the Bangalore
University.
Method of Sampling: -
Random sampling method is used. A random sampling is a part of the sampling

technique in which each sample has an equal probability of being chosen.
Plan of Analysis
Tools for Analysis: - For analyzing the data and to derive meaningful conclusion
arithmetic tools like tables, percentage, column charts, pie charts, are used in this
study.
Nature of Data: - Both primary and secondary data have been used for the study.
Sources of Data: - The primary data is collected directly through questionnaire. The
secondary data have been collected from various sources like magazine, journals and
online e-books.
Limitation of the study:
 Advance Statistical tools are not used for analysis.

 The data has been collected through online and not face to face.
 The results are based on the opinion and responses of the responded. So hidden
information and lack of interest on the part of respondent cannot be easily
identified.
 The study was conducted with a small-time frame.
 The sample size is restricted to only 51 respondents.
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Chapter 3
Data analysis and Interpretation
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3.1 Primary Data - Percentage Analysis
1. Age Group?
AGE No. of Respondent Percentage

16 to 18 3 6%
18 to 24 32 64%
25 to 30 9 18%
30 Above 6 12%
Total 50 100%
Analysis
From the above table, it is shown as out of 50 people 3 people from 16 to 18 age
group, 32 people from age 18 to 24, 9 people from age 25 to 30, 6 people from age
30above.
Interpretation
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From the above pie chart, A total of 6% have responded for being at the age of 16 to
18, 64% have responded for being at the age of 18 to 24, 18% have responded for
being at the age of 25 to 30, and lastly 6% have responded for at the age of 30 above.
2. Are you Investing in stock market?
Investors No of Respondent Percentage

Yes 34 68%
No 16 32%
Total 50 100%
Analysis
From the above table out of 50 people 34 said yes and 16 people said no.
Interpretation
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From the above pie chart 68% of people responded who investing in stock market.
32% of people responded are not investing in stock market.
3. If yes, what type of investors are you?
Type of Investors No of Respondent Percentage

Short Term 21 42%
Long Term 13 26%
Mid Term 16 32%
Total 50 100%
analysis
From the above table out of 50investors 21 investors are short term, 13 investors are
long term, 16 investors are midterm.
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Interpretation
From the above pie chart 42% of Investors responded who are doing short term
investing,26% of Investors responded who are doing Long-term investing and 32% of
Investors are doing Midterm investing.
4. What attracts you to equity market
Attracts No of Respondent Percentage

High returns 26 52%
Speculation 9 18%
Dividend 8 16%
Liquidity of Invested 7 14%

fund
Total 50 100%
analysis
From the above table 26 people attract from high returns, 9 people attract from
speculation, 8 people attract from dividend, 7 people attract from liquidity of invested
fund
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Interpretation: -From the above pie chart 52% of Investors attract through High
returns, 18% of Investors attract through Speculations, 16% of Investors attract
through dividend and14% of Investors attract through Liquidity of invested fund.
5. What source of funds do you utilize to onvest or trade in stock

market?
Source of Fund No of Respondent Percentage

Savings 33 66%
Loans 16 32%
Others 1 2%
Total 50 100%
analysis
From the above table 33 people use savings for investment, 16 people use loans, 1
people use others source of fund.
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Interpretation
From the above pie chart 66% of Investors who utilize savings to trade in stock
market, 32% of Investors utilize loans and 2% of Investors who utilize others fund to
trade in stock market.
6. What investment options are you considering?
Investment Options Consider No of Respondent Percentage

by Trader.
Stock 20 40%
Mutual Fund 12 24%
Gold/Silver 10 20%
Crypto 8 16%
Total 50 100%
analysis
From the above table 20 investors consider stock, 12 investors consider Mutual fund,
10 people consider Gold/Silver, 8 people consider Crypto.
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Interpretation
From the above pie chart 40% of investment options consider by Trader is stock,24%
is Mutual fund, 20% Gold/Silver and 16% consider for Crypto.
7. Buying and Selling
Buying No of Respondent Percentage

&
selling
Intraday 28 56%
Deliver 21 42%
y
No 1 2%
Total 50 100%
analysis
From the above table 28 people do Intraday, 21 people do delivery, 1 people do

others.
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Interpretation
From the above pie chart 56% of Investors do Intraday trading, and 42% of Investors
do Delivery and 2% of Investors do other.
8. Do you consider its safe to invest in stock market?
Safe to Invest in Stock No of Respondent Percentage

Market
Yes 33 66%
No 17 34%
Total 50 100%
analysis
From the above table 33 people consider its safe to invest in stock market and 17
people do not.
Interpretation
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From the above pie chart 66% of people who consider safe to invest in stock market.
34% of people who don’t consider safe to invest in stock market.
9. Which is the biggest stock exchange in India?
Biggest Stock Exchange in No of Respondent Percentage

India
NSE 31 62%
BSE 19 38%
Total 50 100%
analysis
From the above table 31 people consider NSE is biggest stock exchange in India and
19 consider BSE is biggest.
30 | P a g e
Interpretation
From the above pie chart 62% of people said NSE is biggest stock exchange in India
and 38% of people said BSE is biggest stock exchange in India.
10. Which is the best index?
Best Index No of Respondent Percentage
Nifty 50 24 47%
Bank Nifty 17 33%
Fin nifty 9 18%
Total 50 100%
Analysis
From the above table 24 people consider Nifty50 is best index, 17 Bank Nifty, 9 Fin
Nifty.
31 | P a g e
Interpretation: - From the above pie chart 47% of investors consider Nifty50 is best
index, 33% of investors consider Bank Nifty and 18% of Investors consider Fin nifty
is best.
11. Which strategy is important?
Best Strategy No of Respondent Percentage
Price Action 15 30%
Fundamental Analysis 25 50%
Indicators 10 20%
Total 50 100%
Analysis
From the above table 15 people assume Price action is best strategy, 25 people
assume Fundamental analysis, 10 people assume Indicators.
32 | P a g e
Interpretation
From the above pie chart 30% Investors consider Price Action is best strategy, 50%
consider Fundamental Analysis is best and 20% of Investors consider indicators is
best strategy.
12. Best banking sector?
Best Banking Sector No of Respondent Percentage

Stock
ICICI 18 36
Axis 13 26
HDFC 19 38
Analysis
From the above table 18 people assume ICICI is best banking sector, 13 people
assume Axis, 19 people HDFC.
33 | P a g e
Interpretation
From the above pie chart 36% of people responded ICICI is best banking sector, 26%
consider Axis and 38% of people consider HDFC is best banking sector.
13. Should invest in IPO?
Should Invest in No of Respondent Percentage

IPO
Yes 35 69%
No 16 31%
Total 50 100%
Analysis
From the above table 35 people consider to invest in IPO and 16 assume shouldn’t
invest in IPO.
34 | P a g e
Interpretation
From the above table 69% people responded should invest in IPO and 31% responded
should not invest in IPO.
14. Should invest in low liquidity stock?
Should Invest in low liquidity No of Respondent Percentage

stock
No 17 33%
Yes 34 67%
Total 50 100%
Analysis
From the above table 17 people responded should invest in low liquidity stock and 34
people responded should not
35 | P a g e
Interpretation
From the above table 67% of people responded to should invest in low liquidity stock
and 33% should not invest in low liquidity stock.
15. Safe to invest in blue chip stock?
Safe to invest in blue chip No of Respondent Percentage

stock
Yes 35 69%
No 16 31%
Total 50 100%
Analysis
Form the above table 35 people consider to safe in blue chip stock and 16 people
don’t.
36 | P a g e
Interpretation: -From the above table 69% of people responded it is safe to invest
in blue chip stock and 31% of people consider it is not safe to invest in blue chip
stock.
16. Riskier segment?
Riskier Segment No of Respondent Percentage
Equity 16 32%
Future and Option 28 56%
Commodities 6 12%
Total 50 100%
Analysis
Form the above table 16 people assume equity is riskier segment, 28 people assume
F&O is riskier, 6 people assume Commodities.
37 | P a g e
Interpretation
From the above table 32% of Investors responded equity is riskier segment, 56% of
Investors consider Future and option and 12% of Investors responded commodities is
riskier.
17. Knowledge about stock market?
Knowledge about stock No of Respondent Percentage

market
Beginner 19 37%
Intermediate 19 37%
Advance 13 25%
Total 50 100%
Analysis
From the above table 19 people have beginner level of knowledge, 19 people
intermediate level, 13people have advance level.
38 | P a g e
Interpretation
From the above table 37% of people have knowledge about stock market at Beginner
level, 37% of people have Intermediate level of knowledge and 25% of people have
advance level knowledge.
18. More profitable segment?
More Profitable Segment No of Respondent Percentage
Equity 28 56%
Future and Option 16 32%
Commodities 6 12%
Total 50 100%
Analysis
From the above table 28 people responded equity is profitable segment, 16 people
responded F&O is profitable, 6 people responded commodities.
39 | P a g e
Interpretation
From the above table 56% of Investors responded Equity is profitable segment, 32%
of Investors responded future and option are more profitable and 12% of Investors
responded commodities is profitable segment.
19. More profitable index?
More profitable No of Respondent Percentage

index
Nifty 50 24 47%
Bank Nifty 17 33%
Fin nifty 9 18%
Other 1 2%
Total 50 100%
Analysis
From the above table 24 people responded Nifty50 is profitable index, 17 Bank nifty,
9 Fi nifty, 1 other.
40 | P a g e
Interpretation
From the above table 47% of people responded Nifty50 is profitable index, 33%
consider Bank Nifty is profitable index, 18% of people Fin nifty is profitable and 2%
of people responded other.
20. Rate Indian stock market
Rate Indian stock No of Respondent Percentage

market
01 2 4%
02 7 14%
03 13 25%
04 8 16%
05 21 41%
Total 50 100%
Analysis: - 2 people responded 01. 7 people responded 02, 13 people 03, 8 people 04,
21 people 05
41 | P a g e
Interpretation
4% of people Rated Indian stock market is 01 out of 05, 14% responded 02 out of 05,
25% responded 03 out of 05, 16% rated 04 out of 05 and 41% rated 05.
Chapter 4
Summary of findings, Conclusions and Suggestions.
42 | P a g e
4.1 Summary of findings.
 A total of 6% have responded for being at the age of 16 to 18, 64% have
responded for being at the age of 18 to 24, 18% have responded for being at the
age of 25 to 30, and lastly 6% have responded for at the age of 30 above.
 68% people who investing in stock market. Apart from that 32% people are not
investing in stock market.
 42% of people who are doing short term investing, 26% Long term and 32% of
people are doing Mid-term investing.
 52% of people attracts through High returns, 18% through Speculations, 16%
through dividend and 14% of people attracts through Liquidity of invested fund.
 66% of people who utilize savings to trade in stock market, 32% of people loans
and 2% people who utilize others fund to trade in stock market.
 40% of investment options consider by Trader is stock, 24% is Mutual fund, 20%
Gold/Silver and 16% consider for Crypto.
 56% of people do Intraday trading, 42% Delivery and 2% others.
 66% of people who realize safe to invest in stock market. 34% of people who
don’t realize safe to invest in stock market.
43 | P a g e
 62% of people said NSE is biggest stock exchange in India and 38% of people
said BSE IS biggest stock exchange in India.
 47% of people consider Nifty50 is best index, 33% consider Bank Nifty and 18%
of people consider Fin nifty is best.
 30% people consider Price Action is best strategy, 50% consider Fundamental
Analysis and 20% of people consider indicators is best strategy.
 36% of people responded ICICI is best banking sector, 26% consider Axis and
38% of people consider HDFC is best banking sector.
 69% people responded should invest in IPO and 31% responded should not invest
in IPO.
 67% of people responded to should invest in low liquidity stock and 33% should
not invest in low liquidity stock.
 69% consider to it is safe to invest in blue chip stock and 31 not.
 32% of people responded equity is riskier segment, 56% Future and option and
12% responded commodities is riskier.
 56% people responded Equity is profitable segment, 32% future and option and
12% responded commodities is profitable segment.
44 | P a g e
 37% of people have knowledge about stock market is Beginner, 37% is

Intermediate and 25% of people is advance.
 47% of people responded Nifty50 is profitable index, 33% consider Bank Nifty,
18% Fin nifty and 2% responded other.
 4% of people Rated Indian stock market is 01 out of 05, 14% responded 02 out of
05, 25% responded 03 out of 05, 16% rated 04 out of 05 and 41% rated 05.
4.2 Suggestions.
 Choose Liquid Stocks

 Freeze the entry and exit price
 Always set a stop-loss level
 Book profit when the target is reached
 Always close all your open positions
 Do not challenge the market
 Research your target companies thoroughly
 Timing is crucial
 Choose the right platform
 Intraday trading strategies
 Process of choosing stocks in intraday trading for beginners
 Intraday time analysis
 Learn technical analysis
 Investors should look for long term capital appreciation and invest in diverse asset
class.
45 | P a g e
4.3 Conclusions.
A stock exchange is an exchange where traders and stock brokers buy and sell shares
of stock, bonds and other securities. It also offers facilities for issue and redemption
of securities and other financial instruments. Stock issued by listed companies and
unit trusts, bonds and pooled investment products can be traded on a stock exchange.
A stock exchange functions as a 'continuous auction' market where transactions are
conducted between the buyers and sellers.
A stock exchange plays an important role in the economy. It helps to raise capital for
business, mobilize savings for investment, facilitates the growth of companies, and
enables profit sharing. It assists in creating investment opportunities for small
investors, and raising capital for development projects taken up by the government. It
acts as a barometer of the economy.
46 | P a g e
Bibliography
https://www.nseindia.com/
https://economictimes.indiatimes.com/markets/stocks/live-blog/bse-
sensex-today-live-nifty-stock-market-updates-09-february-2023/
liveblog/97751889.cms
https://www.bseindia.com/
https://groww.in/stocks
https://m.economictimes.com/markets/stocks
47 | P a g e
Annexure
1. Age Group?
16 to 18
18 to 24
25 to 30
30 above
2. Are you Investing in stock market.
Yes
No
3. If yes, what type of investors are you?
Short term
Mid term
Long term
4. What attracts you to equity market?
High returns
Speculations
Dividend
Liquidity of invested funds
5. What source of Fund do you utilize to invest in stock market?
Savings
48 | P a g e
Loans
Others
6. What investment options are you considering?

Stock
Mutual Funds
Gold/Silver
Crypto
7. Buying and Selling
Intraday
Delivery
Other
8. Do you consider it’s safe to invest in stock market?
Yes
No
9. Which is the biggest stock exchange in India?
NSE
BSE
10. Which is the best Index?
Nifty50
Bank nifty
Finnerty
Other
11. Which strategy is important?
Price action
Fundamental analysis
Indicators
12. Best Banking stock.
ICICI
Axis
HDFC
49 | P a g e
13. Should invest in IPO

Yes
No
14. Should invest in low liquidity stock.
Yes
No
15. Safe to invest in blue chip stock
Yes
No
16. Which is risky segment?
Equity
F&o
Commodities
17. How much do you know about stock market?
Beginner
Intermediate
Advance
18. More profitable segment
Equity
F&O
Commodities
19. More profitable index
Nifty50
Bank Nifty
Fin nifty
Other
20. How much do you rate Indian stock market?
01
02
03
04
50 | P a g e
05
51 | P a g e

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A FIELD STUDY ON TRADER BEHAVIOUR IN STOCK MARKET

Understanding the Stock Market

The first stock market was the London Stock Exchange which began in a

Stock Market Works

The stock market or exchange maintains various market-level and sector-specific

Functions of a Stock Market

Traders on the stock market include market makers, investors, traders, speculators,

Stock Markets Are Regulated

The Significance of the Stock Market

Alternate Trading System

History of Stock Market

The Idea of a Stock Market

Stock Market Timeline

speculators made leveraged bets on the stock market, inflating prices.

First Stock Created

Throughout the Middle Ages, merchants assembled in the middle of a town to

Invention of Stock Market

History of Stock Exchange in India

They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai,

Stock Market Trend in 2022

Inflation and banking sector

Energy Sector Investing

Career options available in the Stock Market:

• Trader for hedge funds

• Personal finance expert for clients of broking house

required to make a successful Career in Stock Market

• Be passionate: As the market requires continuous learning and improving,

Certificates/Courses an individual can opt for

• NISM/NCFM Certification as they are nationally recognized and also not

• MBA in Finance is an added advantage while choosing your Career in Stock

Scope of the Stock Market

Functions of Stock Exchange

1. Role of an Economic Barometer: Stock exchange serves as an economic

2. Valuation of Securities: Stock market helps in the valuation of securities

3. Transactional Safety: Transactional safety is ensured as the securities that are

4. Contributor to Economic Growth: Stock exchange offers a platform for

5. Making the public aware of equity investment: Stock exchange helps in

6. Offers scope for speculation: By permitting healthy speculation of the traded

7. Facilitates liquidity: The most important role of the stock exchange is in

8. Better Capital Allocation: Profit-making companies will have their shares

9. Encourages investment and savings: Stock market serves as an important

Features of Stock Exchange:

• A market for securities- It is a wholesome market where securities of

• Second-hand securities- It associates with bonds, shares that have already

• Dealings only in registered securities- Only listed securities recorded in the

• Transaction- Only through authorized brokers and members the transaction

• Recognition- It requires to be recognized by the central government.

• Measuring device- It develops and indicates the growth and security of a

To Qualify for Long-term Financing

Increasing the Efficiency of Trades

To Conduct Honest and Operation

Convenience – Objectives of Stock Exchange

Both Honesty and Safety are Crucial

Regulation and Control of the Market

Another objective of stock exchange is the restrictions being implement in this

Expansion of the Economy

Teach Individuals to Save Money

2.1 Scope of the study

2.2 Objective of the study.

 To analyses the level of Trader awareness on Stock market

I collected the information through a questioner made by me.

Random sampling method is used. A random sampling is a part of the sampling

Limitation of the study: