https://zerodha.

com/varsity/chapter/chart-types/
Market Neuron:
Market Neuron is a theme based investment strategy which revolves around a certain event/idea
that you believe will materialize in the future. Neuron captures the effects of the theme on the
financial market.

Highlights
• Designed for Investors
• Investment Period: 9 to 24 Months
• Long Term Capital Gain
• Quarterly Rebalancing

Market Pro
Market Pro is designed uniquely for intraday traders. We offer day trading signals in equity and
commodity markets. We push the best element of discipline trading and strip out the complexity.

Highlights
• Day Trading Signals
• Meticulous Hand Holding
• Technical Research and Analysis
• Fanatical Client Support

TechnIQ TM

TechnIQ is the only trading signal services that offers full back tested history to every subscriber.
Capitalize on delivery based short term trading with multi stock risk adjusted portfolio.

Highlights
• Customised technique just to match with your lifestyle
• You receive signal End of the Market - Trade next day comfortably
• Invest just 5 minutes a week to manage your trading portfolio
• Short term delivery based strategy on statistical model

QuantIQ
QuantIQ crunches enormous volume of market data and applies intelligent quantitative strategies
to make trading simpler

Highlights
• Robust risk management methods to reduce investment risk
• Market price movement predictions based on quantitative analysis
• Never miss any opportunity with daily summary report at market close
• Invest only 5 minutes a day to manage your portfolio
 White Paper:
White Paper is largely designed for corporate in imports and exports. It is a complete solution for
your global currency analysis. It helps in intelligent decision making about the FOREX inbound
and outbound payments.

Highlights
• Detailed Research and Analysis
• INR vs USD/EUR/GBP/JPY
• Constant FOREX Market Updates
• Dedicated Relationship Manager and Research Analyst

CapitalVia Global Research Limited (Investment Advisor) is a pure

play financial market research and consulting company.As a pioneer,
we were the first one to introduce the term 'Investment Advisory
industry' in India and have been credited to be introducing the same
as a prominent factor in Stock Trading. The company was founded in
2006 with the objective of offering unbiased technical analysis, for the
trading community, by experienced professionals to create a
conducive environment.

What makes CapitalVia a segment leader?

• 11+ Years of experience

• Technology-driven quality research
• Easy to follow signals
• Excellent customer assistance, real time hand-holding
• Proven track record and credibility
• Diversified products
• Social welfare activities

Basic Terminology of Stock Market

1. Agent: A brokerage firm is said to be an agent when it acts on behalf of the client in
buying or purchasing of shares. At no point of time in the entire transaction the agent will
own the shares.

2. Ask/Offer: The lowest price an owner is willing to sell the stocks.

3. Assets: Everything the company owns on its name, including the cash, equipments,
land, technology etc. which shows the total wealth of the company.

4. At the money: A situation at which an options strike price is identical to the price of the
underlying securities. Options trading activity tends to be high when options are at the
money.

5. Bear Market: A market in which stock prices are falling consistently.

6. Beta: It is a measurement of relationship between stock price of any particular stock and
the movement of whole market.

7. Bid: It is the highest price a buyer is willing to pay for a stock. It is opposite of ask/offer.

8. Blue Chip Stock: Stocks of large, well-established and financially-sound companies

which hold a record of consistently increasing rate of paying the dividends over decades
to its stock holders. Blue chip stocks typically have a market capitalization in thousands
of crores.

9. Board Lot: A standard trading unit as defined by the particular exchange board. Board
lot size usually depends on the per share price. Common board lot sizes are 50, 100,
500, 1000 units.

10. Bonds: It is promissory note issued by companies or government to its buyers. It speaks
about the specified amount held for a specified time period by the buyer.

11. Book: An electronic record of managing all the pending buy and sell orders of particular
stocks.

12. Broker/Brokerage Firm: A registered securities firm are called broker/brokerage firm.
Broker's acts as an advisor for purchase and sell of listed stocks, they do not own the
securities at any point of the time. But they charge a commission for their service.
13. Bull Market: A market in which the stock prices are increasing consistently.

14. Business Day: Monday to Friday, excluding public holidays.

15. Call Option: An option that is given to investor the right but not obligation to buy a
particular stock at a specified price within a specified time period.

16. Close Price: The final price at which the stock is traded on a given particular trading day.

17. Commodities: Product used for commerce that are traded on a separate, authorized
commodities platform. Commodities include agricultural products and natural resources.

18. Convertible Securities: A security (bonds, debentures, preferred stocks) by an issuer

that can be converted into other securities of that issuer are known as convertible
securities. The conversion usually occurs at the option of the holder, but it may occur at
the option of the issuer.

19. Debentures: A type of debt instrument that is not secured by physical assets or
collateral. Debentures are backed only by the general creditworthiness and reputation of
the issuer.A debenture is an unsecured form of investment.

20. Defensive Stock: A stock that provides a constant dividend and stable earnings even in
the periods of economic downturn i.e. even in the extreme critical situations of the stock
market these companies continue to pay the dividends at a constant rate.

21. Delta: The ratio that compares the change in the price of the underlying asset to the
corresponding change in the price of a derivative. Sometimes referred to as the hedge
ratio. It has a range from 0 to 1.

22. Derivatives: A security whose price is derived from one or more underlying assets. The
most common underlying assets include stocks, bonds, commodities, currencies, interest
rates and market indexes.

23. Diversification: Reducing the investment risk by purchasing shares of different

companies operating in different sectors.

24. Dividend: A portion of the company's earnings decided to pay to its shareholders in
return to their investments. It is usually declared as a percentage of current share price or
some specified INR value, usually decided by the board of directors of the company.

25. Equity: Common and preferred stocks, which represents shares in the ownership of a
company.

26. Face value: It is the cash denomination or the amount of money the holder of the
individual security going to earn from the issuer of the security at the time of maturity. It is
also known as par value.
27. Hedge: A strategy or an attempt in reducing the risk of adverse price movements of
assets.

28. Income Stock: A security which has a solid record of dividend payments and offers the
dividend higher than the common stocks

29. Index: A statistical measurement of change in the economy or security market. Indices
have their own calculation methodology and are usually measured as a percentage
change in the base value over the time.

30. Initial Public Offering (IPO): A company's first issue of shares to general public. IPOs
are issued by smaller, younger companies seeking funds for expansion and growth, but
large companies also practice this to become publicly traded companies.

31. Internet Trading: Internet Trading is a platform with Internet as a medium. Internet
trading execution takes place through order routing system, which will rout traders order
to exchange trading system. Thus, traders sitting in any part of the world can be able to
trade using their brokers Internet Trading System. The Securities and Exchange Board of
India (SEBI) approved Internet Trading in January 2000.

32. Limit Order: An order to buy or sell a share at a specified price. The order will be
executed only at the specified limit price or even better. A limit order sets a minimum
price the seller is willing to accept and maximum price the buyer is willing to pay for it.

33. Listed Stocks: The shares of an issuer that are traded on the stock exchange. The
issuer has to pay fees to be listed in the stock exchange and abide by the regulations of
the stock exchange to maintain listing privilege.

34. Market Capitalization: The total value in INR of all of a company's outstanding shares. It
is calculated by multiplying all the outstanding shares with the current market price of one
share. It determines the company's size in terms of its wealth.

35. Mutual Fund: A pool of money managed by experts by investing in stocks, bonds and
other securities with the objective of improving their savings. These experts will create a
diversified portfolio from these funds.

36. Odd Lot: A number of shares which are less than or greater than but not equal to the
board lot size. For example, if the board lot size is 100 shares, an odd lot would be 95 or
102 shares. Usually odd lots are difficult for trading and it is not accepted easily in the
market.

37. One-sided Market: A market that has only potential sellers or only potential buyers but
not both.

38. Out-of-The-Money (OTM): For call options, this means the stock price is below the strike
price. For put options, this means the stock price is above the strike price. The price of
out-of-the-money options consists entirely of "time value."
39. Portfolio: Holding of any individual or institution. A portfolio may include various type of
securities of different companies operating in different sectors.

40. Positions Limit: Maximum number of futures and options contract that any individual
investor can hold at any given point of time.

41. Pre-opening Session: The pre-open session is for duration of 15 minutes i.e. from 9:00
AM to 9:15 AM. In pre-open session order entry, modification and cancelation takes
place.

42. Price Earnings (P/E) Ratio: A valuation of companies last traded share price to its latest
reported 12 months earnings per share. For example, if the last traded share price of any
X company is INR 40 and earnings over a last 12 months per share is INR 2, then the
P/E ratio of that X company is INR 20 (40/2)

43. Put Option: An option that is given to investor the right to sell a particular stock at a
stated price within a specified time period. Put option is purchased by those who believe
that particular stock price is going to fall down than the stated price.

44. . Risk: A probable chances of investments actual returns will be reduced then as
calculated. Risk is usually measured by calculating the standard deviation of the
historical price returns. Standard deviation is directly proportional to the degree of risk
associated.

45. Securities: A transferable certificate of ownership of investment in products such as

stocks, bonds, future contracts and options which an individual holds.

46. Strike Price: The price at which the holder of an option can buy (in case of call option) or
sell (in case of put option) the securities they hold when the option is executed.

47. Stock Split: An attempt to increase the number of outstanding shares of a company by
splitting the existing shares. It is usually done to increase the availability of shares in the
market. The usual split ratio is 2:1 or 3:1, i.e. one share is split into two or three.

48. Thin Market: A market in which there are comparatively low number of bids to buy and
offers to sell. Since the number of transactions is low the prices are very volatile.

49. Trading session: The period of time from 9:15 AM to 3:30 PM is open for trading for
both sellers and buyers, within this time frame all the orders of the day must be placed.
Here all the orders placed in pre-opening sessions are matched and executed.

50. Yield: It is the measure of return on investments in terms of percentage. Stock yield is
calculated by dividing the current price of the share by the annual dividend paid by the
company for that share. For example, if the current price of the share is INR 100 and the
dividend paid is INR 5 per share annually, then the stock yield is 5%.
 14.1 – Relative Strength Index
Relative strength Index or just RSI, is a very popular indicator developed by J.Welles
Wilder. RSI is a leading momentum indicator which helps in identifying a trend reversal.
RSI indicator oscillates between 0 and 100, and based on the latest indicator reading,
the expectations on the markets are set.

The term “Relative Strength Index” can be a bit misleading as it does not compare the
relative strength of two securities, but instead shows the internal strength of the security.
RSI is the most popular leading indicator, which gives out strongest signals during the
periods of sideways and non trending ranges.

The formula to calculate the RSI is as follows:

Key takeaways from this chapter

1. Indicators are independent trading systems developed, and introduced by successful

traders
2. Indicators are leading or lagging. Leading indicators signals the possible occurrence of
an event. Lagging indicators on the other hand confirms an ongoing trend
3. RSI is a momentum oscillator which oscillates between 0 and 100 level
4. A value between 0 and 30 is considered oversold, hence the trader should look at
buying opportunities
5. A value between 70 and 100 is considered overbought, hence the trader should look at
selling opportunities
6. If the RSI value is fixed in a region for a prolonged period, it indicates excess momentum
and hence instead of taking a reversed position, the trader can consider initiating a trade
in the same direction.

MACD:

The Moving Average Convergence and Divergence (MACD) indicator was

developed by Gerald Appel in the late seventies. Traders consider MACD as the
grand old daddy of indicators. Though invented in the seventies, MACD is still
considered as one of the most reliable indicators by momentum traders.

1. A MACD is a trend following system

2. MACD consists of a 12 Day, 26 day EMA
3. MACD line is 12d EMA – 26d EMA
4. Signal line is the 9 day SMA of the MACD line
5. A crossover strategy can be applied between MACD Line, and the signal line
6. The Bollinger band captures the volatility. It has a 20 day average, a +2 SD, and a -2 SD
7. One can short when the current price is at +2SD with an expectation that the price
reverts to the average
8. One can go long when the current price is at -2SD with an expectation that the price
reverts to the average
9. BB works well in a sideways market. In a trending market the BB’s envelope expands,
and generates many false signals
10. Indicators are good to know, but it should not be treated as the single source for
decision making.

Key takeaways from this chapter

1. Technical Analysis is not bound by its scope. The concepts of TA can be applied across
any asset class as long as it has a time series data
2. TA is based on few core assumptions.
1. Markets discount everything
2. The how is more important than why
3. Price moves in trends
4. History tends to repeat itself
3. A good way to summarize the daily trading action is by marking the open, high, low and
close prices usually abbreviated as OHLC

Key takeaways from this chapter

1. Conventional chart type cannot be used for technical analysis as we need to plot 4 data
points simultaneously
2. Line chart can be used to interpret trends but besides that no other information can be
derived
3. Bar charts lacks visual appeal and one cannot identify patterns easily. For this reason
bar charts are not very popular
4. There are two types of candlesticks – Bullish candle and Bearish candle. The structure
of the candlestick however remains the same
5. When close > open = It is a Bullish candle. When close < open = It is a Bearish candle
6. Time frames play a very crucial role in defining the trading success. One has to choose
this carefully
7. The number of candle increases as and when the frequency increases
8. A traders should be in a position to discard noise from relevant information

https://zerodha.com/varsity/chapter/chart-types/