What do the NSE Series – EQ, BE, BL, BT, GC, IL & IQ Mean ?

NSE Series – The National Stock Exchange (NSE) started trading in the equities segment (Capital Market segment) on November 3, 1994. Within a short span of 1 year became the largest exchange in India in terms of volumes transacted.

Permitted Asset Class (NSE Series)

There are a number of products traded in the Capital Markets. Segments viz., Equity shares, Preference shares, Warrants, Debentures, Exchange-traded Funds, Mutual Funds (close-ended), Government Securities and Indian Depository Receipts.

Each asset type is assigned an NSE series for trading.

Each Series distinguishes the scrips and / or the people who can trade in those series.

Listed in the table below are the symbols which denote the various types of series traded on the NSE :-

 Note :-

·         Generally, retail investors come across NSE EQ and BE only.

·         Normal share trading is done under the NSE EQ and intra-day squaring of the trade is possible. This means a trade can be settled without accepting or giving its delivery.

·         The ‘delivery percentage’ under BE category is 100% as no intra-day trade is allowed.

·         Please follow this Link on the NSE website for more details.

Leave a message if you have a query or more information on this topic.

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Beginners’ Checklist for Stock Market

Let us begin with a very simple question – What comes to your mind when you say the word “Stock Market”?

List of most common terms include-

·         Profit and Loss

·         Money

·         Bear

·         Bulls and many more

However, this mere list of words does not constitute the stock market. The stock market is much more than that. Here is a Beginners’ Checklist for Stock Market that will help you understand the functioning of the market.

What is the Stock Market?

It is a mechanism where the shares of publicly traded companies are bought, sold and issued. It is one of the most important parts of the free market economy.
So, how does this market work?
The prices of the shares in the market depend upon several factors. If we understand it in simpler words, when the number of buyers is more than that of sellers then prices of shares will go up.
Likewise, if the number of sellers exceeds the number of buyers, the prices of the shares will go down.
Given the fact that we are now clear with the basics, let us now discuss what all needs to be kept in mind by beginners who are planning to invest in the stock market.

1. Set Long-term Goals Patiently

There are three things which decide your wealth in the long-term. These include investment capital, net annual earnings, and the number of investment years.
For those of you who are beginning to take a plunge in the market, you should be clear when it comes to your financial needs.
You should set the purpose and period of funding clearly right from the beginning.

2. Decide on your Risk Tolerance

Risk Tolerance basically means how you feel about risks and the degree of anxiety you go through when risk is present.
You should understand your risk tolerance and then make an investment. This way, you can avoid the investments which will certainly make you anxious.
It is important to note that you should never own any kind of assets which can keep you from sleeping peacefully at night.

3. Read Good Books

It is rightly said that books are one’s best friend and thus according to me, the key to every knowledge in today’s date is reading.

Here are a few good books which you can start with to understand Technical Analysis.    

·         Reminiscences of a Stock Operator (Edwin Lefevre)

·         Trading for a Living (Alexander Elder)

·         Technical Analysis of the Financial Markets (John J Murphy)

·         Japanese Candlestick Charting Techniques (Steve Nison)

·         Encyclopedia of Chart Patterns (Thomas Bulkowski)

4. Follow Good Traders

When you think of entering this exciting world of the stock market, you should know about the best traders in the world. Read about them, their strategies, books, etc. It will surely benefit you in a trading career in the long run.

For reference, here are a few well-known names in the industry –

·         Paul Tudor Jones

·         Jack Swagger

·         Alexander Elder

·         Martin J Pring

·         John J Murphy

On a final note, here are a few basics which you cannot ignore –

5. Financial Metrics and Definitions

P/E ratio, EPS – Earning Per Share, ROE – Return on Equity, and CAGR – Compound Annual Growth Rate.

6. Popular Methods of Stock Selection and Trading

You should understand fundamental and Technical Analysis to apply in stock market strategy.

7. Stock Market Order Types

Stock types such as market orders, limit orders, stock market order, stop-limit order, and trailing stop-loss orders.

8. Different Types of Investment Accounts

Cash accounts and Margin accounts are two accounts that form major trades. You should know the rules for each.
Once you are aware of all these things, you are good to go. However, you should remember that there’s a long way to go and as you progress you will come across new terminologies.
There is no field out there which won’t require you to know more about it.

Keep yourself updated and you’ll be good. Hopefully, this Beginners’ Checklist for Stock Market will give you a better understanding of the stock market functioning.

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How to Identify Bbest Dividend Paying Stocks and Make Best Out of Them?

Dividend Paying Stocks – Although capital appreciation is the first choice of investors in comparison with dividend income, that does not make dividend less worthy. Despite the fact, that capital appreciation yields are higher; it is volatile and risk associated. On the other hand, income from the dividend is balanced and predictable.

Most importantly, Dividends are a great source of “Passive Income”. Once you have invested in the dividends, it continues to pay you for long term; you just need to buy, sit back and enjoy the consistent flow of dividends. The income from the dividends keeps growing with the pace of Company’s growth. Simply by holding a good stock for long term (10 years or more), their dividend yield itself will become high enough to beat the returns of any debt.

Suppose this person held on to his shares till year 2018. What will be his dividend yield as on Mar’18? [Additionally, company-issued bonus shares 1:1 to all shareholders between Mar’09 & Mar’18, which simply doubles the income of dividend]

So, from all the angles, investors of the dividend stocks are the gainers, without any extra effort.

In order to go a step ahead, one can also reinvest the earnings from the dividend into the same stock (during the lower phase of the stock) and increase the income further.

In this article, let’s see, what the factors are; which needs to kept mind while investing in dividend paying stocks.

Consistency in Profits and Strong Cash Flow

The very first thing you need to look for is consistent profits. If a company isn’t making steady profits, there are less chances that it would be able to deliver dividends. Profitable growth of the company is the key indicator of a quality dividend-paying company.

Also make sure, that the company has sturdy cash flow generation. Because, it is the cash flow which pays off the dividend.

For Example:

are considered good dividend paying stock as they not only pay dividends regularly, but dividend also grows with time. This is due to their regular strong cash flow.

Check Industry Strength

This is most overlooked factor, while choosing long term dividend paying stocks. If an industry is touching the roofs for past few years, it does not mean that the stocks won’t drop ever, but they’re likely to be more resilient than most stocks. And as long as the industry is in prosperous mode, there is more chance for increase in dividend, over the period of time.

In order to identify potentially good dividend-paying companies, do the following research

·         Dig into the financial reports. Look for the profit and loss account of the company.

·         Check, how much the Earning per share (EPS) of the company has grown in last 5 years.

·         Check if dividend per share of the company has grown in last 5 years.

·         Relate, if EPS growth and dividend per share growth are similar. If this is so; it is a good sign for you. Growth in EPS indicates that the net profit of the company is improving and Dividend per share growth mean that the company believes in idea of paying dividend to the investors. Therefore, having similar EPS and Dividend per share means, as the profits of the company upsurges in future, it will increase the dividend pay out to the investors.

Bottom Line

Dividends are long term investments. Dividend payment is a process by which company share its net profit with its stockholders. Good dividend paying companies are more likely to increase its profits over time. As the profits improve, dividend payment by the company also rises.

In 2019, some of the top dividend paying stock in India are:

1.      Ingersoll Rand

2.      Wall Street Fin

3.      IOC 

4.      National Steel and Agro Industries

5.      21st Cent Mgmt

6.      Vedanta

7.      Merck

8.      Shervani Industries

9.      Nalco

10.  Polyplex Corp

Ninja Trader Indicators is one of the best tools that can help you identifying the Structure of the Current Market while giving you better understanding of market dynamics, so that you make right decisions on investing in long-term and short term stocks.

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