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A study on the technical analysis of derivative stock futures

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indian project
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  1. Introduction
  2. A study of Indian securities markets
    1. Objectives and methodology of the study
    2. Significance of the study
  3. Review of literature
    1. Difference between derivative and shares
    2. Types of derivative
  4. Chronology of derivative market in India
  5. A regulatory framework
  6. Introduction to futures
    1. Types of futures
  7. Case studies on futures
  8. Sources of data collection
  9. Company profile
  10. Data analysis
  11. Conclusion and suggestions
  12. Bibliography

As Indian securities markets continue to evolve, market participants, investors and regulators are looking at different ways in which the risk management may be efficiently met through the introduction of Derivative markets. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. Derivatives are risk management instruments, which derive their value form an underlying asset. The underlying asset can be bullion, index, share, bonds, currency, interest etc. banks, securities firms, companies and investors to hedge risks, to gain access to cheaper money and to make profit, uses derivatives. Derivatives are likely to grow even at a faster rate in future. However, the advent of modern day derivative contracts is attributed to the need for farmers to protect themselves from any decline in the price of their crops due to delayed monsoon, or overproduction. The first ?futures' contracts can be traced to the Yodoya rice market in Osaka, Japan around 1650. These were evidently standardized contracts, which made them much like today's futures. The Chicago Board of trade (CBOT), the largest derivative exchange in the world, was established in 1848 where forward contracts on various commodities were standardized around 1865. From then on, futures contracts have remained more or less in the same form, as we know them today.

[...] Exchanges should also submit details of the futures contract they purpose to introduce The trading members are required to have qualified approved user and sales person who have passed a certification programme approved by SEBI THE ECONOMIC ROLE OF DERIVATIVES Derivative markets provide three essential economic functions: Risk management Price discovery Transactional efficiency Risk management: The principal benefit of the Derivative market is that it provides the opportunity for risk management through Hedging. Risks involved in derivatives: Risk can be defined as possibility or probability of loss?. [...]

[...] SIGNIFICANCE OF THE STUDY: The present study on Derivative futures is very much appreciable on the grounds that it gives deep insights about the stock futures market. It would be essential for the perfect way of trading in stock futures. The study elucidates the role of derivative futures in Indian financial markets. Studies of this type are more useful to academicians and scholars to make further insights into the various aspects of derivative futures in similar organizations. An investor can choose the right underlying for investment, which is risk free. [...]

[...] The intersection of stock price and moving average curves gives a sell signal on DEC 10h and a buy signal on DEC 13th There is an upward trend observed in the stock price of hindalco during the study period. The stock price curve shows the and inverted patterns which are the signs of fluctuations in the price of the stock. The intersection of stock price and moving average curves gives a sell signal on DEC 5th and a buy signal on DEC 10th The daily price movement of BAJAJ AUTO scrip included the and inverted patterns which are the signs of fluctuations in the stock price. [...]

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