Indian Institute of Stock Market Analysis

About the Program:

This is a comprehensive classroom programme on knowledge of technical analysis, to understand the strengths of technical analysis. After having in depth knowledge of technical analysis and learning practical implications during this programme a learner will be able to build his/her own trading strategies for intraday as well as positional trades. Advanced technical tools will help the trader become more confident as he/she will be able to predict the trends and patterns of stock price.

Suitable for:

1. Students

2. Stock Analysts

3. Finance Professionals

4. Employees with financial service sector.

5. Anybody having interest in this subject

Programme content:

INTRODUCTION TO TECHNICAL ANALYSIS

1.1 What is technical analysis?

1.1.1 Price discounts everything

1.1.2 Price movements are not totally random

1.1.3 Technical Analysis: the basic assumption

1.1.4 Strengths and weakness of technical analysis

1.1.4.1 Importance of technical analysis

1.1.4.2 Weaknesses of technical analysis

CANDLE CHARTS

2.1 The charts

2.2 Candlestick analysis

2.2.1 One candle pattern

2.2.1.1 Hammer

2.2.1.2 Hanging man

2.2.1.3 Shooting star and inverted hammer

2.2.2 Two candle pattern

2.2.2.1 Bullish engulfing

2.2.2.2 Bearish engulfing

2.2.2.3 Piercing

2.2.2.4 Bearish harami

2.2.2.5 Bullish harami

2.2.3 Three candle pattern

2.2.3.1 Evening star

2.2.3.2 Morning star

2.2.3.3 Doji

PATTERN STUDY

3.1 What are support and resistance lines

3.1.1 Support

3.1.2 Resistance

3.1.3 Why do support and resistance lines occur?

3.1.4 Support and resistance zone

3.1.5 Change of support to resistance and vice versa

3.1.6 Why are support and resistance lines important?

3.2 Head and shoulders

3.2.1 Head and shoulders top reversal

3.2.2 Inverted head and shoulders

3.2.3 Head and shoulders bottom

3.3 Double top and double bottom

3.3.1 Double top

3.3.2 Double bottom

3.3.3 Rounded top and bottom

3.4 Gap theory

3.4.1 Common gaps

3.4.2 Breakaway gaps

3.4.3 Runaway/continuation gap

3.4.4 Exhaustion gap

3.4.5 Island cluster

MAJOR INDICATORS & OSCILLATORS

4.1 What does a technical indicator offer?

4.1.1 Why use indicator?

4.1.2 Tips for using indicators

4.1.3 Types of indicator

4.1.4 Simple moving average

4.1.5 Exponential moving average

4.1.6 Which is better?

4.2 Trend following indicator

4.2.1 When to use?

4.2.2 Moving average settings

4.2.3 Uses of moving average

4.2.4 Signals - moving average price crossover

4.2.5 Signals - multiple moving averages Oscillators

4.3.1 Relative strength index

4.3.1.1 What is momentum?

4.3.1.2 Applications of RSI

4.3.1.3 Overbought and oversold

4.3.1.4 Divergence

4.3.1.5 Stochastic

4.3.1.6 William %R

4.3.1.7 Real life problems in use of RSI

4.3.1.8 Advanced concepts

4.3.2 Moving average convergence/divergence(MACD)

4.3.2.1 What is the MACD and how is it calculated

4.3.2.2 MACD benefits

4.3.2.3 Uses of MACD

4.3.2.4 Money Flow Index

4.3.2.5 Bollinger Bands

4.4 Using multiple indicators for trading signals

4.4.1 Price sensitive technique

4.4.2 Volume sensitive techniques

4.4.3 Composite methods

4.4.4 How to use tool kit of trading techniques

4.4.5 Trading market tool kit applications

4.4.6 Bull market tool kit application

4.4.7 Bear market tool kit application

4.4.8 Trading market changing to bull market tool kit application

4.4.9 Trading market changing to bear market tool kit application

4.4.10 Bull market changing to trading market tool kit application

4.4.11 Bear market changing to trading market tool kit application

TRADING STRATEGIES

5.1 Day trading

5.1.1 Advantages of day trading

5.1.2 Risks associated with risk day trading

5.2 Strategies

5.2.1 Strategies for day trading

5.2.2 Momentum trading strategies

DOW THEORY AND ELLIOT WAVE THEORY

6.1 Introduction

6.2 Principles of Dow Theory

6.3 Significance of Dow Theory

6.4 Problems with Dow Theory

6.5 Elliot Wave

6.5.1 Introduction

6.5.2 Fundamental Concept

6.5.3 After Elliott

TRADING PSYCHOLOGY AND RISK MANAGEMENT

7.1 Introduction

7.2 Risk Management

7.2.1 Components of risk management

7.2.1.1 Stop loss

7.2.1.2 Analyze reward risk ratio

7.2.1.3 Trail stop loss

7.2.1.4 Booking Profit

7.2.1.5 Uses of stop loss

7.2.1.6 Qualities of successful trader

7.2.1.7 Golden rules of traders

7.2.1.8 Do's and don'ts in trading

7.3 Rules to stop losing money

7.4 Choosing the right market to trade

7.4.1 Importance of discipline in trading

Programme highlights:

Practical applications on real market data. Utilise derivative strategies with technical strategies. Able to prepare technical research reports. Able to prepare daily basis reports. Create your own market forecast. Identify trends and important price patterns. Recognize patterns. Use technical indicators. Apply technical theories.

Duration of the programme:

30 Days

Programme Fee:

₹ 10000/-

Fee includes Registration fee, notes, books, software for technical analysis.

About the Program:

This is a comprehensive classroom programme on knowledge of fundamental analysis, to understand the strengths of company analysis, industry analysis, economy analysis. Fundamental analysis is a stock valuation methodology arrived at by performing security analysis. An appropriate security analysis forms the basis of successful investment decisions. This module aims at providing a basic insight about fundamental analysis and various valuation methodologies used.

Suitable for:

v Students of management and commerce

v Stock Analysts

v Finance Professionals

v Employees with financial service sector.

v Anybody having interest in this subject

Programme content:

INTRODUCTION

1. Types of companies

2. Initial Public Offer (IPO)

3. Efficient Market Hypothesis

4. Does fundamental analysis work?

BRUSHING UP THE BASICS

1. Concept of “Time Value of Money”

2. Interest Rates & Discount Factors

3. Opportunity cost

4. Risk-free Rate

5. Equity Risk Premium

6. The Beta

7. Risk Adjusted Return (Sharpe Ratio)

UNDERSTANDING FINANCIAL STATEMENTS

Understanding the Balance sheet

Profit & Loss Statement

Cash Flow Statement

Financial Statement Analysis and Forensic Accounting

Financial Ratios

1. Profitability Ratios

2. Leverage Ratios

3. Operating Ratios

4. Valuation Ratio

5. Index Valuation

Du-Pont Analysis

Cash Conversion Cycle

The Satyam case and need for forensic accounting

VALUATION METHODOLGIES

Top-Down Valuation

1. Economy

2. Industry

3. Company

Discounted Cash Flow (DCF) Models

Dividend Discount Model

Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) based DCF

Sum of the parts (SOTP)

Price / Earnings Ratio

Price / Book Value Ratio

EV/EBITDA Ratio

Price to Sales (P/S) Ratio

Special cases of valuation- IPOs, Financial Service firms, Net interest margin, Firms with negative cash flows, Acquisition valuation, Distressed companies.

Programme highlights:

Fundamental analysis can help uncover companies with valuable assets, a strong balance sheet, stable earnings, and staying power. Learner will be able to identify and predict long-term economic, demographic, technological or consumer trends. This will allows investors to develop an understanding of the key value drivers and companies within an industry. Key highlight of this program is portfolio diversification and systematic investment planning.

Duration of the programme:

30 Days

Programme Fee:

₹ 10000/-

Fee includes Registration fee, notes, books, mock tests for fundamental analysis.

About the Program:

This is a comprehensive classroom programme on knowledge of market indicators and options trading strategies, to learn about the various option strategies, to understand payoff concepts, to understand the objectives and risks of each different strategies, to know the technique of hedging. A learner will be able to pass NCFM Options Trading Strategies Module successfully.

Suitable for:

1. Students who are eager to acquire practical knowledge in Stock Market.

2. Stock Analysts, Technical Analyst

3. Stock brokers, Traders, Risk-Averse Investors

4. Finance Professionals, Portfolio Managers.

5. Anyone interested in Derivative Market.

Programme content:

1. INTRODUCTION TO OPTIONS

1.1 OPTION TERMINOLOGY

1.2 OPTIONS PAYOFFS

1.2.1 Payoff profile of buyer of asset: Long asset

1.2.2 Payoff profile for seller of asset: Short asset

1.2.3 Payoff profile for buyer of call options: Long call

1.2.4 Payoff profile for writer (seller) of call options: Short call

1.2.5 Payoff profile for buyer of put options: Long put

1.2.6 Payoff profile for writer (seller) of put options: Short put

STRATEGY 1 : LONG CALL

STRATEGY 2 : SHORT CALL

STRATEGY 3 : SYNTHETIC LONG CALL

STRATEGY 4 : LONG PUT

STRATEGY 5 : SHORT PUT

STRATEGY 6 : COVERED CALL

STRATEGY 7 : LONG COMBO

STRATEGY 8 : PROTECTIVE CALL

STRATEGY 9 : COVERED PUT

STRATEGY 10 : LONG STRADDLE

STRATEGY 11 : SHORT STRADDLE

STRATEGY 12 : LONG STRANGLE

STRATEGY 13. SHORT STRANGLE

STRATEGY 14. COLLAR

STRATEGY 15. BULL CALL SPREAD STRATEGY

STRATEGY 16. BULL PUT SPREAD STRATEGY

STRATEGY 17 : BEAR CALL SPREAD STRATEGY

STRATEGY 18 : BEAR PUT SPREAD STRATEGY

STRATEGY 19: LONG CALL BUTTERFLY

STRATEGY 20 : SHORT CALL BUTTERFLY

STRATEGY 21: LONG CALL CONDOR

STRATEGY 22 : SHORT CALL CONDOR

Programme highlights:

A unique professional designed program, Dynamic, highly practical & interactive training programs with real life case studies, Practical, real-world, non-academic, non-theoretical, hand-on instruction, Intensive step-by-step classroom training programs to understand derivative markets and its diversified domain, Decode financial jargon and uncover popular misconception, Explain the real story of Indian stock market. Learner will be able understand the use of derivative products in speculating, hedging and arbitraging, the trading issues relating to equity derivatives.

Duration of the programme:

30 Days

Programme Fee:

₹ 10000/-

Fee includes Registration fee, notes, books, software for Options Trading Strategies.

About the Program:

NCFM Certified Equity Research Analysis Module covers both basic investment topics as well as advanced fundamental concepts in a manner which is easy to understand for someone without a background in accounting. It includes discussions via case studies, understanding broader investment topics, outlines on how to analyse a company, evaluation of companies, comprehend the annual report, capital allocation decision, portfolio construction and rebalancing and creating a correct psychological framework that will help one traverse various cycles of markets.

Suitable for:

1. MBA's ( Finance) / CA's

2. Graduates/Post Graduates with experience in capital markets

3. Other working professionals, looking to move into equity research

This course is relevant for people looking to join the equity research division of a

1. Financial Institution,

2. Mutual Fund,

3. Research back office, or

4. Brokerage firm

Programme content:

INTRODUCTION

1. Overview: What is equity research? Goal of an equity research analyst.

2. Market Participants: The research providers and the research users.

3. Types of Research: Buy side research and Sell side research.

4. Role of an Analyst: How do analysts go about research?, Front end and back end research, equity research as a cost and revenue center.

5. Concept of Alpha: Importance of alpha in equity research.

6. Key Terms used in Equity Markets, Stocks Classification.

UNDERSTANDING FINANCIAL STATEMENTS

1. Annual Report Overview: Understanding key sections of an Annual report.

2. Profit & Loss Statement, Balance Sheet, Cash Flow Statement.

ANALYSIS OF THE ECONOMY

1. Introduction: Stages of the qualitative analysis process - EIC framework.

2. Economic Cycles: How valuation of a company gets affected by economic activities?

3. Key Economic Factors: GDP, Industrial Production, Inflation, Unemployment, Business and consumer confidence and Oil prices.

4. Stock Indices: Different benchmark indices across the globe, How do share prices and stock indices move? How are stock indices interlinked?

ANALYSIS OF THE INDUSTRY

1. Process: Identifying sub-sectors, Key revenue drivers, Key concerns.

2. Specific Industry Analysis: Oil & Gas, IT, Telecom, Banking and Autos.

ANALYSIS OF THE COMPANY

1. Process: Analysing the business, Revenue drivers, competitors, Management team.

2. Case Study: A detailed analysis of Shiv Vani Industries.

RATIO ANALYSIS

1. Profitability Ratios: Profit Margins - Gross margin, EBITDA margin, Net Profit margin.

2. Return Ratios: Return on Equity (ROE), Return on Common Equity (ROCE), Return on Total Capital (RTC) and Return on Assets (ROA).

3. Liquidity Ratios: Current ratio, Quick ratio and Cash ratio.

4. Activity Ratios: Account receivables turnover & Days of receivables, Inventory turnover & Days of inventory, Account payables turnover & Days of payables.

5. Solvency Ratios: Debt-to-Equity ratio, Interest coverage ratio and Financial leverage.

6. Valuation Ratios: Price to Earnings (P/E) ratio, P/E re-rating and de-rating, PEG ratio, EV/EBITDA, Price to Book Value (P/BV) ratio.

7. Case Study: Pantaloons vs. Titan Industries.

VALUATION

1. Concept: Definition and need for Valuations.

2. Methods: DCF, Relative Valuation.

3. Case Study: A detailed exercise of valuation using DCF for Titan Industries.

REPORT WRITING

1. Types of reports, Format, Dos and Don’ts of report writing.

Programme highlights:

This course will help you to be a better investor as well as provide participants with an understanding of how to identify, analyse the financial statements of a business and invest in companies and make better investment decisions. This programme also helps an individual to become an equity research analyst by providing complete understanding of capital market & Industry Analysis.

Duration of the programme:

45 Days

Programme Fee:

₹ 15000/-

Fee includes Registration fee, notes, books, mock tests, softwares for Equity Research.

About the programme:

This is a comprehensive classroom programme on knowledge of market indicators and options trading strategies, to learn about the various option strategies, to understand payoff concepts, to understand the objectives and risks of each different strategies, to know the technique of hedging. A learner will be able to pass NCFM Derivative Dealer Module successfully.

Suitable for:

• Students who are eager to acquire practical knowledge in Stock Market.

• Stock Analysts, Technical Analyst

• Stock brokers, Traders, Risk-Averse Investors

• Finance Professionals, Portfolio Managers.

• Anyone interested in Derivative Market.

Programme content:

CHAPTER 1: INTRODUCTION TO DERIVATIVES

1.1 Types of Derivative Contracts

1.1.1 Forwards Contracts

1.1.2 Futures Contracts

1.1.3 Options Contracts

1.1.4 Swaps

1.2 History of Financial Derivatives Markets

1.3 Participants in a Derivative Market

1.4 Economic Function of the Derivative Market

CHAPTER 2: UNDERSTANDING INTEREST RATES AND STOCK INDICES

2.1 Understanding Interest rates

2.2 Understanding the Stock Index

2.3 Economic Significance of Index Movements

2.4 Index Construction Issues

2.5 Desirable Attributes of an Index

2.5.1 Impact cost

2.6 Applications of Index

2.6.1 Index derivatives

CHAPTER 3: FUTURES CONTRACTS, MECHANISM AND PRICING

3.1 Forward Contracts

3.2 Limitations of forward markets

3.3 Introduction to Futures

3.4 Distinction between Futures and Forwards Contracts

3.5 Futures Terminology

3.6 Trading Underlying vs. Trading Single Stock Futures

3.7 Futures Payoffs

3.7.1 Payoff for buyer of futures: Long futures

3.7.2 Payoff for seller of futures: Short futures

3.8 Pricing Futures

3.8.1 Pricing equity index futures

3.8.2 Pricing index futures given expected dividend amount

3.8.3 Pricing index futures given expected dividend yield

3.9 Pricing Stock Futures

3.9.1 Pricing stock futures when no dividend expected

3.9.2 Pricing stock futures when dividends are expected

CHAPTER 4: APPLICATION OF FUTURES CONTRACTS

4.1 Understanding Beta (β)

4.2 Numerical illustration of Applications of Stock Futures

4.2.1. Long security, sell futures

4.2.2 Speculation: Bullish security, buy futures

4.2.3 Speculation: Bearish security, sell futures

4.2.4 Arbitrage: Overpriced futures: buy spot, sell futures

4.2.5 Arbitrage: Underpriced futures: buy futures, sell spot

4.3 Hedging using Stock Index futures

4.3.1 By Selling Index Futures

4.3.2 By Selling Stock Futures and Buying in Spot market

CHAPTER 5: OPTIONS CONTRACTS, MECHANISM AND APPLICATIONS

5.1 Option Terminology

5.2 Comparison between Futures and Options

5.3 Options Payoffs

5.3.1 Payoff profile of buyer of asset: Long asset

5.3.2 Payoff profile for seller of asset: Short asset

5.3.3 Payoff profile for buyer of call options: Long call

5.3.4 Payoff profile for writer of call options: Short call

5.3.5 Payoff profile for buyer of put options: Long put

5.3.6 Payoff profile for writer of put options: Short put

5.4 Application of Options

5.4.1 Hedging: Have underlying buy puts

5.4.2 Speculation: Bullish security, buy calls or sell puts

5.4.3 Speculation: Bearish security, sell calls or buy puts

5.4.4 Bull spreads - Buy a call and sell another

5.4.5 Bear spreads - sell a call and buy another

CHAPTER 6: PRICING OF OPTIONS CONTRACTS AND GREEK LETTERS

6.1 Variables affecting Option Pricing

6.2 The Black Scholes Merton Model for Option Pricing (BSO)

6.3 The Greeks

6.3.1 Delta ( )

6.3.2 Gamma (Γ)

6.3.3 Theta (Θ)

6.3.4 Vega (ν)

6.3.5 Rho (ρ)

CHAPTER 7: TRADING OF DERIVATIVES CONTRACTS

7.1 Futures and Options Trading System

7.1.1 Entities in the trading system

7.1.2 Basis of trading

7.1.3 Corporate hierarchy

7.1.4 Client Broker Relationship in Derivative Segment

7.1.5 Order types and conditions

7.2 The Trader Workstation

7.2.1 The Market Watch Window

7.2.2 Inquiry window

7.2.3 Placing orders on the trading system

7.2.4 Market spread/combination order entry

7.3 Futures and Options Market Instruments

7.3.1 Contract specifications for index futures

7.3.2 Contract specification for index options

7.3.3 Contract specifications for stock futures

7.3.4 Contract specifications for stock options

7.4 Criteria for Stocks and Index Eligibility for Trading

7.4.1 Eligibility criteria of stocks

7.4.2 Eligibility criteria of indices

7.4.3 Eligibility criteria of stocks for derivatives trading on account of corporate restructuring

7.5 Charges

CHAPTER 8: CLEARING AND SETTLEMENT

8.1 Clearing Entities

8.1.1 Clearing Members

8.1.2 Clearing Banks

8.2 Clearing Mechanism

8.3 Settlement Procedure

8.3.1 Settlement of Futures Contracts

8.3.2 Settlement of options contracts

8.4 Risk Management

8.4.1 NSCCL-SPAN

8.4.2 Types of margins

8.5 Margining System

8.5.1 SPAN approach of computing initial margins

8.5.2 Mechanics of SPAN

8.5.3 Overall portfolio margin requirement

8.5.4 Cross Margining

CHAPTER 9: REGULATORY FRAMEWORK

9.1 Securities Contracts (Regulation) Act, 1956

9.2 Securities and Exchange Board of India Act, 1992

9.3 Regulation for Derivatives Trading

9.3.1 Forms of collateral's acceptable at NSCCL

9.3.2 Requirements to become F&O segment member

9.3.3 Requirements to become authorized / approved user

9.3.4 Position limits

9.3.5 Reporting of client margin

9.4 Adjustments for Corporate Actions

CHAPTER 10: ACCOUNTING FOR DERIVATIVES

10.1 Accounting for futures

10.2 Accounting for options

10.3 Taxation of Derivative Transaction in Securities

10.3.1 Taxation of Profit/Loss on derivative transaction in securities

10.3.2 Securities transaction tax on derivatives transactions

Programme highlights:

A unique professional designed program, Dynamic, highly practical & interactive training program. Practical, real-world, non-academic, non-theoretical, hand-on instruction. Intensive step-by-step classroom training programs to understand derivative markets and its diversified domain, Decode financial jargon and uncover popular misconception. Learner will be able understand the use of derivative products in speculating, hedging and arbitraging, the trading, clearing, settlement and risk management in equity derivatives, the regulatory, accounting and taxation issues relating to equity derivatives.

Duration of the programme:

45 Days

Programme Fee:

₹ 12000/-

Fee includes Registration fee, notes, books, software, mock tests for Derivative Dealer module.