Stock Market
Glossary
Plain-English definitions of the terms that matter most for Indian equity investors — from quantitative metrics and algorithmic trading concepts to SEBI regulatory frameworks.
Technical Analysis
Technical analysis is the study of past price and volume data to forecast future stock price movements. Learn the key tools of technical analysis — charts, indicators, candlestick patterns — and how Indian traders use it on NSE stocks.
Turnover Ratio
Turnover ratio measures how efficiently a company uses its assets, inventory, or equity. Learn the asset turnover ratio, inventory turnover ratio, and portfolio turnover ratio — and how to interpret them for Indian listed companies.
Upper Circuit / Lower Circuit
What are upper circuit and lower circuit limits in Indian stocks? Understand how price bands work on NSE and BSE, why stocks hit circuits, and what it means for traders.
VWAP — Volume Weighted Average Price
What is VWAP? Learn how institutional traders use Volume Weighted Average Price for execution quality and how retail traders can use VWAP for intraday trading on NSE.
Delivery Volume
What is delivery volume in stocks? Learn how delivery percentage helps identify genuine buying interest vs. speculative trading on NSE and BSE for Indian equities.
Demat Account
A Demat account, or dematerialized account, is a type of account used to hold and transfer securities electronically. It...
Depository Participant (DP)
A Depository Participant (DP) is an agent of NSDL or CDSL that provides Demat account services to investors. Learn about the role of DPs in India, how they differ from brokers, and what to look for when choosing a DP.
Dividend Yield Explained
What is Dividend Yield? Learn how to calculate dividend yield, find the best dividend stocks on NSE, and understand dividend policies of Indian companies.
Dividend
A dividend is a distribution of a portion of a company's profit to its shareholders. It is usually paid quarterly or ann...
EPS — Earnings Per Share Explained
What is EPS (Earnings Per Share)? Learn how to calculate basic and diluted EPS for Indian stocks and why EPS growth drives stock prices on NSE.
Earnings Per Share (EPS) Growth
What is EPS growth and why does it matter for stock investing? Learn how to analyse earnings per share growth trends for Indian companies on NSE and BSE.
Face Value
Face value is the nominal or par value of a security, such as a stock or bond, which represents the amount paid by the i...
FII / DII (Foreign & Domestic Institutional Investors)
Who are FIIs and DIIs in the Indian stock market? Understand how Foreign Institutional Investors and Domestic Institutional Investors influence NSE and BSE price trends.
FII (Foreign Institutional Investor)
FIIs (Foreign Institutional Investors) are overseas entities that invest in Indian equity and debt markets. Learn how FII flows impact Nifty and Sensex, how to track FII data, and what FII buying/selling signals.
FPI
FPI stands for Foreign Portfolio Investors. These are foreign entities that invest in the Indian stock market, usually t...
Free Float Market Cap — What It Means for Indian Investors
What is free float market capitalization? Learn how NSE and BSE calculate free float, why it differs from total market cap, and how it affects index inclusion and stock liquidity.
GSM — Graded Surveillance Measure Explained
What is GSM? Learn about SEBI's Graded Surveillance Measure, its six stages, trading restrictions, and how it affects stock liquidity on NSE and BSE.
High-Net-Worth Individual (HNI)
A High-Net-Worth Individual (HNI) in India is an investor with investable assets exceeding ₹5 crore. Learn how HNIs are defined in Indian capital markets, their IPO allocation, wealth management strategies, and how SEBI treats HNI investors.
Intraday Trading
Intraday trading means buying and selling stocks within the same trading day. Learn how intraday trading works on NSE, the risks involved, margin requirements, and strategies used by Indian day traders.
IPO — Initial Public Offering Explained
What is an IPO? Learn how Initial Public Offerings work in India, the allotment process, grey market premium (GMP), and listing day dynamics on NSE and BSE.
Listing
Listing refers to the admission of a company's shares for trading on a stock exchange like NSE or BSE. Learn about the listing process in India, listing requirements, listing gains, and what happens after an IPO lists.
Long Position
A long position means buying and holding a security expecting its price to rise. Learn how long positions work in Indian equity markets, the difference between delivery and intraday long trades, and how to manage long position risk.
Long-Term Capital Gain (LTCG)
Long-Term Capital Gain (LTCG) is the profit from selling an equity asset held for over 12 months. Learn the LTCG tax rate in India after Budget 2024, the ₹1.25 lakh exemption, grandfathering rules, and how to minimise LTCG tax legally.
MACD — Moving Average Convergence Divergence
What is MACD? Learn how to use the Moving Average Convergence Divergence indicator for Indian stocks. Understand MACD crossovers, signal line, and histogram.
Margin of Safety
What is Margin of Safety in value investing? Learn how Benjamin Graham's core principle of buying at a discount to intrinsic value protects Indian equity investors from losses.
Margin
Margin is the amount of money that an investor borrows from a broker to purchase securities. It is essentially a loan th...
Market Capitalization
Market capitalization is the total value of outstanding shares of a company, calculated by multiplying the number of sha...
Moving Average (SMA & EMA) Explained
What is a Moving Average? Learn the difference between SMA and EMA, golden cross, death cross, and how to use moving averages for Indian stock trading.
NAV — Net Asset Value Explained
What is NAV (Net Asset Value)? Learn how mutual fund NAV is calculated, why high NAV doesn't mean expensive, and how to evaluate mutual fund performance.
Mutual Fund
A mutual fund pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other securities. Learn how mutual funds work in India, the types of funds, and how to choose the right one.
Nifty 50 Index Explained
What is Nifty 50? Learn how India's benchmark equity index works, its composition methodology, and why it matters for every Indian equity investor.
Open Interest (OI)
What is Open Interest in stock markets? Learn how OI data helps traders understand derivatives positioning, trend strength, and potential reversals on NSE F&O.
P/E Ratio (Price-to-Earnings Ratio)
What is P/E ratio? Learn how to calculate and interpret Price-to-Earnings ratio for Indian stocks on NSE and BSE. Understand trailing P/E, forward P/E, and sector-relative valuation.
Portfolio Diversification
Portfolio diversification is the practice of spreading investments across different asset classes, sectors, and geograph...
Portfolio Rebalancing
Portfolio rebalancing is the process of reviewing and adjusting a portfolio to ensure it remains aligned with an investo...
Promoter Pledging — The Red Flag in Indian Stocks
What is promoter pledging in Indian stocks? Learn how promoters pledge shares as collateral for loans, the risks it creates for retail investors, and how to check pledge percentage on NSE and BSE.
Relative Strength (RS Rating)
What is Relative Strength (RS Rating) in stock markets? Learn how to calculate and use RS Rating to find market-leading stocks before they make major moves on NSE/BSE.
Return on Equity (ROE)
What is Return on Equity (ROE)? Learn how to calculate and use ROE to evaluate Indian company profitability, compare sectors, and identify quality growth stocks on NSE/BSE.
RSI — Relative Strength Index Explained
What is RSI (Relative Strength Index)? Learn how to use RSI for Indian stocks on NSE and BSE. Understand overbought (>70) and oversold (<30) signals and RSI divergence.
SEBI — Securities and Exchange Board of India
What is SEBI? Learn about India's capital markets regulator, its key regulations, and how SEBI circulars affect stock trading on NSE and BSE.
Sensex — BSE Sensitive Index Explained
What is Sensex? Learn about India's oldest stock market index, its 30-stock composition, and how it differs from Nifty 50.
Sharpe Ratio Explained
What is the Sharpe Ratio? Learn how to calculate and interpret risk-adjusted returns for Indian stocks and mutual funds using the Sharpe Ratio.
Short Selling
Short selling is a trading strategy in which an investor sells a security they do not own, with the expectation of buyin...
Stock Exchange
A stock exchange is a regulated marketplace where securities like stocks and bonds are bought and sold. Learn how NSE and BSE work, the trading process, exchange regulation by SEBI, and how exchanges generate revenue in India.
Stop Loss Order
A stop loss order is a type of trading order that automatically sells a security when it falls to a certain price level,...
Stop Loss
A stop loss is an order to sell a security when it reaches a certain price, usually to limit losses or lock in profits. ...
Systematic Investment Plan (SIP)
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in a mutual fund. Learn how SIPs work in India, the power of rupee cost averaging, SIP returns calculation, and how to start a SIP.
52-Week High / Low
What are 52-week highs and lows in stock markets? Learn how to use 52-week high/low data to identify breakout stocks and key support levels on NSE and BSE.
ASM List NSE — Additional Surveillance Measure Explained
What is ASM list on NSE? Learn about SEBI's Additional Surveillance Measure (ASM) framework — which stocks get listed, what it means for trading margins, and how to check ASM status.
Bear Market
A bear market is a prolonged period of time when the stock market is in a downward trend, with prices falling consistent...
Beta (β) — Volatility Measure Explained
What is Beta in stocks? Learn how beta measures volatility relative to the market, how to calculate it, and what high and low beta mean for Indian stock portfolios.
Bollinger Bands Explained
What are Bollinger Bands? Learn how to use Bollinger Bands for volatility analysis on Indian stocks. Understand the squeeze, walk-the-band, and mean reversion strategies.
Book Value per Share Explained
What is Book Value per Share? Learn how to calculate and interpret book value for Indian stocks. Understand P/B ratio and when stocks trading below book value are opportunities.
Bulk Deal / Block Deal
What are bulk deals and block deals in the stock market? Learn how to track large institutional transactions on NSE/BSE and what they signal about smart money activity.
Bull Market
A bull market is a period of rising stock prices and investor optimism. Learn what drives bull markets, how long they last, and how to position your portfolio to benefit during an Indian equity bull run.
Bull Run
A bull run is a sustained period of time when the stock market is in an upward trend, with prices rising consistently. I...
Candlestick Patterns Explained
What are Candlestick Patterns? Learn the most important reversal and continuation patterns for Indian stock trading — Doji, Hammer, Engulfing, Morning Star and more.
Capital Gain
A capital gain is the profit earned from the sale of a security, such as a stock or bond, that has increased in value si...
Capital Gains Tax
Capital gains tax is a type of tax levied on the profits earned from the sale of securities, such as stocks or real esta...
Capital Loss
Capital loss occurs when you sell a capital asset for less than its purchase price. Learn how to set off and carry forward capital losses against capital gains in India to reduce your tax liability.
Circuit Breakers in the Stock Market — Upper & Lower Circuits
What are circuit breakers in the stock market? Learn how upper circuit (UC) and lower circuit (LC) limits work on NSE and BSE, and why they create exit traps for penny stock investors.
Cost Averaging
Cost averaging (rupee cost averaging) is an investment strategy of investing fixed amounts at regular intervals regardless of market conditions. Learn how SIP implements cost averaging in Indian mutual funds and why it reduces investment risk.
Day Trading
Day trading is a type of trading where positions are held for a short period, typically a day, with the goal of profitin...
Debt-to-Equity Ratio Explained
What is Debt-to-Equity Ratio? Learn how to calculate D/E ratio, what levels are safe for Indian companies, and how leverage affects stock risk on NSE.
Delisting
Delisting is the process of removing a company's shares from a stock exchange, either voluntarily or involuntarily. This...
Forecasting
Forecasting in stock markets refers to using quantitative models, analyst estimates, and AI tools to predict future revenues, earnings, and price targets for equities.