In a share market, shares are bought and sold. The stock market is a share market, however besides shares of companies, other instruments like bonds, mutual funds and derivative contracts too are traded in the stock market. There are two kinds of share markets:
Primary share market
A company enters the primary market to raise funds. It is in the primary market that a company gets registered to issue shares to the public and raise money. Companies gene . In the secondary market, investors trade already listed securities by buying and selling them. Secondary market transactions are transactions where one investor buys shares from another at the prevailing price. Normally, these transactions are conducted through a broker. Secondary market offers investors a chance to sell all its shares and exit the financial market.
For example: Shares of Tata Steel are trading in the market at Rs 230 a share. An investor can buy these shares at current market price and will get part-ownership of the company and become a shareholder.
The share market is a source for companies to raise funds and for investors to buy part-ownership in growing businesses and grow their wealth. On becoming a shareholder, an investor earns a part of the profits earned by the company by way of dividend. At the same time, the investor also undertakes the risk to bear loses, should the business fail to perform well. Market participants need to get registered with the stock exchange and market regulator to be able to trade in the stock market.
Boosted by softening crude and commodities prices combined with a rebound in the global indices, the Nifty ended the week at 16,220.6, up by 3 per cent. As the market opens on Monday, TCS and DMart shares would be under the lens as both announced their results after the market closed.
stocks stumbled to a lackluster close Friday following employment data underscoring the strength of the US labor market but also suggesting more Federal Reserve interest rate hikes ahead.
Major indices see-sawed throughout the day but still notched solid gains for the week with investors weighing optimism that the US economy can withstand higher borrowing costs, against fears the Fed will do too much to choke off growth and cause a downturn.
The Dow Jones Industrial Average slipped less than 0.2 percent to finish at 31,338.48, while the broad-based S&P 500 edged down 0.1 percent to 3,899.38.
The tech-rich Nasdaq Composite Index added 0.1 percent to close at 11,635.31, capping five days of steady gains and posting a 4.6 percent increase for the week..
The US economy added 372,000 new positions in June, nearly 100,000 more than economists forecast, and the unemployment rate held steady percent, the Labor Department reported.
European shares mark strong end to week
European shares ended higher on Friday, recovering after hitting session lows following bumper U.S. jobs data that strengthened the case for another big interest rate hike by the Federal Reserve.
The continent-wide STOXX 600 index closed up 0.5%, ending the week up 2.5%.
Tech View
Nifty50 formed a bearish candle on the daily chart that resembled a Hanging Man. The 50-pack index managed to close above the 16,200 level. Analysts said the momentum stays positive as long as the index stays above the 16,170 level.
Stocks showing bullish bias
The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa,
Stocks signalling weakness ahead
None of the stocks showed bearish signs on MACD.
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