MODULE IV: INVESTMENT IN DIRECT EQUITY

Curricular Scope & Foundational Overview: Module IV delivers an exhaustive academic exploration of direct corporate equity investment in Essentials of Investment (COM2MN105). It investigates the institutional infrastructure of secondary capital markets, deconstructing the 3-in-1 account architecture (Bank, Demat, and Trading accounts), depository systems (NSDL and CDSL), clearing corporations (NSCCL and ICCL), and T+1 rolling settlement mechanics. The module analyzes the brokerage landscape (Full-Service vs. Discount Brokers), order execution mechanics (Limit, Market, Stop-Loss, GTT), and provides rigorous analytical frameworks for security evaluation: Fundamental Analysis via the top-down Economy-Industry-Company (EIC) model and ratio analytics (P/E, P/B, EV/EBITDA, ROE, ROCE, D/E), Technical Analysis (Dow Theory, Candlestick patterns, Support/Resistance, Moving Averages, RSI, MACD), and intrinsic valuation models (DCF). It concludes with Modern Portfolio Theory (MPT), mathematical diversification, and systematic asset rebalancing.

Unit 14: Capital Market Infrastructure: Accounts, Depositories & Settlement

14.1 The 3-in-1 Capital Market Account Ecosystem

Participating in Indian direct equity markets requires a seamless integration of three distinct legal and financial accounts, collectively designated as the 3-in-1 Account Architecture:

1. The Bank Account

Function: Holds unallocated fiat cash currency (INR).
Role in Trading: Sources funds for purchasing shares and receives credit proceeds from liquidated shares, dividends, and interest payouts.
Mechanism: Linked via UPI or ASBA (Applications Supported by Blocked Amount) for IPO subscriptions.

2. The Trading Account

Function: Acts as the trade execution interface linked directly to stock exchanges (NSE and BSE).
Role in Trading: Facilitates buy and sell order entry, margin management, order routing, and real-time execution.
Operator: Maintained and serviced by a SEBI-registered Stockbroker.

3. The Demat Account

Function: Dematerialized (electronic) custody of financial securities.
Role in Trading: Functions like a "digital security locker" holding equities, debentures, government bonds, ETFs, and REIT units.
Operator: Maintained by Central Depositories (NSDL / CDSL) via Depository Participants.

14.2 The Demat Account Opening Protocol & Statutory KYC Norms

Under SEBI's Master Circular on Client Onboarding, establishing a Demat and Trading account mandates strict compliance with Know Your Customer (KYC) and Prevention of Money Laundering Act (PMLA) regulations:

Permanent Account Number (PAN): The primary statutory tax identifier mandated by SEBI. Verification is integrated with the Income Tax Department database.
Identity & Address Proof: Verified electronically via UIDAI Aadhaar OTP authentication, Digilocker integration, Passport, or Voter ID.
Bank Account Verification: A personalized cancelled cheque leaf or official bank account statement bearing the investor's printed name, account number, and IFSC code. Penny-drop automated bank verification confirms active operational status.
Income Proof (for Derivative Segments): Submission of 6-month bank statement, latest Form 16, or ITR acknowledgment is mandatory if activating Futures & Options (F&O) trading.
In-Person Verification (IPV): Real-time digital video capture of the applicant holding their PAN card and displaying an OTP to prevent identity theft.

14.3 Depository Architecture: NSDL vs. CDSL

Before 1996, Indian stock markets operated via physical paper share certificates. This settlement framework suffered from severe operational friction: counterfeit certificates, postal theft, mutilation, forged transfer deeds, and settlement delays stretching over months (bad delivery risk).

The Depositories Act of 1996 revolutionized Indian capital markets by establishing the electronic depository system. A Depository is an institution that holds securities of investors in electronic (dematerialized) book-entry form and facilitates transfer of ownership without physical movement of paper certificates:

Institutional Parameter	National Securities Depository Limited (NSDL)	Central Depository Services (India) Limited (CDSL)
Establishment Date	August 1996 (India's first electronic depository).	February 1999 (India's second national depository).
Primary Promoters	National Stock Exchange (NSE), IDBI Bank, and UTI.	Bombay Stock Exchange (BSE), State Bank of India, Bank of India, and HDFC Bank.
Exchange Association	Historically associated with NSE institutional market makers.	Historically associated with BSE and prominent discount brokerages (Zerodha, Groww).
Client Account Identification	16-character alphanumeric account number starting with "IN" (e.g., `IN300123-12345678`).	16-digit purely numeric Beneficiary Owner Identification (BO ID) (e.g., `1208160012345678`).
Public Listing Status	Unlisted public company.	Publicly traded listed company on NSE (ticker: `CDSL`).

The Role of Depository Participants (DPs) & ISIN System:

Depository Participant (DP): An investor cannot open an account directly with NSDL or CDSL. The Depository functions through financial agents known as Depository Participants (DPs), which include scheduled commercial banks, financial institutions, and registered stockbrokers. The DP acts as the statutory bridge linking the retail investor to the national central depository.

International Securities Identification Number (ISIN): Every listed financial instrument is assigned a unique 12-character alphanumeric code established under ISO 6166 standards. In India, ISINs start with the country prefix "IN" (e.g., Reliance Industries Limited equity share ISIN is INE002A01018), ensuring error-free automated electronic trade reconciliation across global custody networks.

14.4 Clearing Corporations & The T+1 Settlement Cycle

When a trade executes on the stock exchange, the actual transfer of shares and funds is guaranteed and managed by a Clearing Corporation:

NSE Clearing Limited (NCL / NSCCL): Clearing arm of the National Stock Exchange.
Indian Clearing Corporation Limited (ICCL): Clearing arm of the Bombay Stock Exchange.

The Clearing Corporation performs Trade Novation: It interposes itself as the legal counterparty to every executed trade, becoming the buyer to every seller and the seller to every buyer. This eliminates counterparty default risk—if a buying broker defaults on payment, the Clearing Corporation guarantees settlement from its Settlement Guarantee Fund (SGF).

The Mechanics of the T+1 Rolling Settlement:

In January 2023, India became the second major capital market in the world (after China) to transition fully to the T+1 Rolling Settlement Cycle (where T represents the Trading Day):

Chronological Workflow of a T+1 Equity Transaction
Day T (Trade Date): Investor places a BUY order for 100 shares of TCS at 11:00 AM. The order matches with a seller's order on NSE. Funds are blocked in the buyer's trading account.

Day T Evening: Stockbroker issues a statutory Contract Note confirming trade execution, trade price, brokerage, STT, and net payable amount.

Day T+1 Morning (11:00 AM): Clearing Corporation initiates Pay-in of Funds (buyer's broker transfers money to NCL) and Pay-in of Securities (seller's DP transfers TCS shares to NCL).

Day T+1 Afternoon (1:30 PM–3:00 PM): Clearing Corporation executes Pay-out of Funds to the selling broker and Pay-out of Securities directly into the buyer's Demat account at CDSL/NSDL.

Settlement Complete: Within 24 hours of trading, the shares reside securely in the buyer's Demat account!

Unit 15: Stockbroking Architecture, Trading Platforms & Order Mechanics

15.1 Full-Service Brokers vs. Discount Brokers

Stockbrokers are registered market intermediaries who maintain trading memberships with stock exchanges (NSE/BSE). The Indian broking landscape is divided into two contrasting commercial models:

Comparative Feature	Traditional Full-Service Brokers	Technology Discount Brokers
Representative Entities	ICICI Direct, HDFC Securities, Kotak Securities, Motilal Oswal, Sharekhan.	Zerodha (Kite), Groww, Angel One, Upstox, 5paisa.
Pricing & Brokerage Model	Percentage-based fee calculated on total turnover (e.g., 0.25% to 0.50% of trade value). High transaction cost on large trades.	Flat-rate pricing model: Zero brokerage on Equity Delivery; flat ₹20 per executed order on Intraday and F&O trades regardless of volume.
Research & Advisory	Provides extensive fundamental research reports, daily stock tips, company valuation notes, and dedicated Relationship Managers (RMs).	Zero advisory or stock recommendations. Pure execution platform providing quantitative charting tools and market data APIs.
Physical Branch Presence	Extensive nationwide branch network offering offline, in-person consultation and phone-assisted dealing desks.	100% digital, paperless online model with zero branch networks; support handled via ticketing portals.
Target Client Demographic	High-Net-Worth Individuals (HNIs), senior citizens, corporate entities, and investors requiring handholding.	Tech-savvy retail investors, self-directed DIY investors, algorithmic and active intraday traders.

15.2 Anatomy of the Corporate Transaction Cost Stack

When an investor executes an equity trade, the total cost deducted extends beyond brokerage. The statutory cost stack comprises:

Securities Transaction Tax (STT): Levied by the Central Government. On delivery equity trades, 0.1% is charged on both buy and sell transactions. On intraday equity, 0.025% is charged on the sell leg only.
Exchange Turnover Charges: Levied by NSE (~0.00297%) or BSE (~0.00375%) for exchange infrastructure access.
SEBI Turnover Charges: Regulatory fee of ₹10 per crore of turnover (0.0001%).
Integrated GST: Statutory 18% Goods and Services Tax charged strictly on the sum of (Brokerage + Exchange Turnover Charges + SEBI Fees).
Stamp Duty: State stamp duty of 0.015% (₹1,500 per crore) on buy delivery trades.
Depository DP Charges: Flat fee (typically ₹13 to ₹18.50 per company per day) charged by the DP when shares are debited from the Demat account upon selling.

15.3 Order Execution Mechanics & Order Types

Modern electronic trading platforms operate continuous automated Electronic Limit Order Books (ELOB) where buy orders and sell orders are matched dynamically based on strict Price-Time Priority (best price gets priority; ties are broken by the earliest timestamp). Investors control order behavior using specialized order types:

1. Market Order vs. Limit Order

Market Order: Instructs the broker to buy or sell immediately at the best available prevailing market price in the order book. Guarantees speed of execution, but exposes the trader to slippage in illiquid stocks.
Limit Order: Instructs the broker to execute only at a specified price or better (e.g., "Buy 100 shares of Infosys at limit ₹1,450"). Guarantees price certainty, but risks non-execution if the market never touches the limit threshold.

2. Stop-Loss (SL) & SL-Market (SL-M) Orders

Stop-Loss Limit Order (SL): Designed to limit downside risk. An investor specifies a Trigger Price and a Limit Price. When the market price touches the trigger, a limit order is automatically released to the exchange.
Stop-Loss Market Order (SL-M): When the trigger price is breached, an instant market order is submitted, ensuring guaranteed exit even in rapid price crashes.

3. Good Till Triggered (GTT) Orders

Standard exchange orders expire at the 3:30 PM market close. A GTT Order remains active on the broker's cloud servers for up to 365 days. When the target price condition is triggered during market hours months later, an order is instantly released to the exchange, freeing investors from daily screen monitoring.

4. After Market Orders (AMO)

Orders placed outside standard exchange trading hours (between 3:45 PM and 8:59 AM the following business day). The broker buffers the orders and submits them into the exchange's pre-market opening session (9:00 AM–9:08 AM).

Unit 16: Fundamental Analysis and Stock Valuation Techniques

16.1 The Top-Down EIC (Economy-Industry-Company) Analytical Framework

Fundamental Analysis is the rigorous discipline of evaluating a corporation's intrinsic financial value by examining its underlying macroeconomic environment, competitive industry dynamics, and microscopic corporate balance sheet health. The foundational methodology is the top-down EIC Framework:

1. Economic (Macro) Analysis

Evaluating the sovereign macroeconomic engine:

GDP Growth: Expanding economy drives aggregate demand.
Monetary Policy & Repo Rate: High interest rates increase corporate borrowing costs and depress equity valuation multiples.
Inflation & Forex: Rupee depreciation boosts IT/Pharma exporters, but hurts crude-importing chemical/auto sectors.

2. Industry Analysis

Evaluating structural sector attractiveness using Michael Porter's Five Forces:

Threat of new entrants & barriers to entry.
Bargaining power of corporate suppliers.
Bargaining power of institutional buyers.
Threat of disruptive substitute products.
Intensity of competitive rivalry among incumbents.

3. Company Analysis

Microscopic corporate inspection:

Economic Moat: Sustainable competitive advantages (pricing power, patented technologies, brand loyalty, high switching costs).
Corporate Governance: Forensic audit of auditor notes, promoter pledging, related-party transactions, and capital allocation prudence.

16.2 Essential Financial Statement Ratios in Equity Research

Fundamental analysts dissect audited corporate balance sheets, profit and loss statements, and cash flow statements using standardized financial ratios:

Financial Metric	Mathematical Formula	Analytical Interpretation	Benchmark Standard
Price-to-Earnings (P/E) Ratio	(Market Price per Share / Earnings per Share (EPS))	Measures what market participants are willing to pay for each rupee of annual corporate profit. High P/E indicates high expected growth or overvaluation.	Compare against 5-year historical average and industry peer P/E.
Price-to-Book (P/B) Ratio	(Market Price per Share / Book Value per Share (BVPS))	Compares market valuation to net asset value on balance sheet. Essential for capital-intensive sectors and commercial banks.	P/B < 1.0 may indicate deep value or severe asset distress.
EV / EBITDA	$Enterprise Value / EBITDA$ ( $EV = Market Cap + Debt - Cash$ )	Capital-structure neutral valuation multiple. Compares operational profitability independent of leverage and tax policies.	Lower values indicate superior acquisition value.
Return on Equity (ROE)	$Net Profit after Tax / Shareholders’ Equity$	Measures how efficiently management deploys equity capital to generate net earnings. High sustained ROE indicates an economic moat.	Consistently (ge 15.0%) across a 5-year cycle.
Return on Capital Employed (ROCE)	(EBIT / $Total Assets - Current Liabilities$ )	Measures pre-tax earnings efficiency across all capital deployed (both debt and equity). Must exceed Cost of Capital (WACC).	Consistently (ge 18.0%) in manufacturing/industrials.
Debt-to-Equity (D/E) Ratio	$Total Interest-Bearing Debt / Total Net Worth$	Measures financial solvency and balance sheet leverage risk. High debt exposes firms to insolvency during recessions.	Preferably (le 0.5); debt-free ((0.0)) is premier.

16.3 Intrinsic Stock Valuation: The Discounted Cash Flow (DCF) Model

The cornerstone of fundamental equity valuation is that the intrinsic value of any commercial business equals the present value of all future Free Cash Flows to Firm (FCFF) discounted at its Weighted Average Cost of Capital (WACC):

Discounted Cash Flow (DCF) Multi-Stage Valuation Model INTRINSIC VALUATION

I n t r in s i c V a l u e = [S U M (F C F F_{t} / (1 + W A C C)^{t}) f r o m t = 1 t o n] + [T er mina l V a l u e_{n} / (1 + W A C C)^{n}]

Where:

FCFF: (Operating Cash Flow - Capital Expenditures (CapEx)). Cash available to all capital providers.
WACC: ( $E / V \times K_{e}$ + (D/V × K_d × (1 - T))), where (K_e) is cost of equity and (K_d) is pre-tax cost of debt.
Terminal Value (Gordon Growth Model): (FCFF_{n+1} / $WACC - g$ ), where (g) is the perpetual stable growth rate (cannot exceed GDP growth rate).

Investment Rule (Benjamin Graham's Margin of Safety): Buy only when (Current Market Price < Intrinsic Value ×

1 - Margin of Safety

), typically requiring a 20% to 30% discount!

Unit 17: Technical Analysis, Charting & Momentum Indicators

17.1 Foundational Philosophy of Technical Analysis

Technical Analysis is the study of market action—primarily through the use of price charts, candlestick patterns, and trading volume—for the purpose of forecasting future price trends. While fundamental analysis asks what company to buy based on financial statements, technical analysis asks when to enter and exit based on supply and demand dynamics:

Comparative Dimension	Fundamental Analysis	Technical Analysis
Core Focus	Intrinsic business value, earnings growth, balance sheet health, economic moat.	Price action, volume, market psychology, historical chart patterns.
Underlying Premise	Market price will eventually converge toward intrinsic economic value over time.	Price discounts all known information; prices move in recognizable trends.
Primary Time Horizon	Long-term investing (3 to 10+ years; multi-year compounding).	Short to medium-term trading (minutes, days, to several weeks/months).
Primary Data Source	Audited annual reports, 10-K/Q filings, management conference calls.	Historical tick data, daily candlestick OHLC charts, volume indicators.

17.2 Candlestick Charting Fundamentals & Core Patterns

Originating in 18th-century Japan with rice trader Munehisa Homma, Japanese Candlestick Charts display four critical data points for any trading timeframe: Open, High, Low, and Close (OHLC):

Real Body: The solid box connecting the Open and Close prices. Green/White if Close > Open (Bullish); Red/Black if Close < Open (Bearish).
Upper Wick (Shadow): Line extending from top of real body to the highest price traded during the session.
Lower Wick (Shadow): Line extending from bottom of real body to the lowest price traded during the session.

1. High-Probability Reversal Patterns

The Hammer: Occurs at the bottom of a downtrend. Features a small real body at the top and an elongated lower shadow at least twice the length of the body, signaling that bears pushed prices down, but aggressive buyers absorbed supply and drove prices back to the top.
The Shooting Star: Occurs at the peak of an uptrend. Features a small real body at the bottom and a long upper shadow, signaling aggressive rejection of higher prices by institutional sellers.
The Doji: Open and Close are virtually identical, producing a cross shape. Reflects complete equilibrium and indecision between bulls and bears.

2. Multi-Candle Engulfing Patterns

Bullish Engulfing: At a downtrend bottom, a small red candle is completely enclosed and engulfed by a large green candle that opens lower and closes above the prior open, signaling a powerful bullish regime change.
Bearish Engulfing: At an uptrend peak, a small green candle is completely engulfed by a wide-range red candle, signaling distribution and imminent price decline.

17.3 Technical Indicators and Trend Oscillators

1. Moving Averages (SMA and EMA)

Smooths price data to identify trend direction:

Simple Moving Average (SMA): Arithmetic average of closing prices over (N) periods.
Exponential Moving Average (EMA): Applies exponential weighting to recent prices, reacting faster to trend shifts.
Golden Cross: When the 50-day moving average crosses above the 200-day moving average, signaling the initiation of a major multi-month bull market.
Death Cross: 50-day crosses below 200-day moving average, signaling a structural bear market.

2. Relative Strength Index (RSI)

Developed by J. Welles Wilder, a 14-period momentum oscillator bound between 0 and 100:

ext{RSI} = 100 - left[ rac{100}{1 + ext{RS}} ight]

] Where

RS = Average Gain / Average Loss

Overbought (>70): Price momentum is overextended; potential pullback or consolidation due.
Oversold (<30): Aggressive selling exhausted; potential technical bounce.
Bullish Divergence: Price sets a lower low, but RSI sets a higher low, signaling hidden institutional accumulation.

Unit 18: Modern Portfolio Theory (MPT) and Strategic Asset Allocation

18.1 The Harry Markowitz Modern Portfolio Theory (1952)

Before Harry Markowitz published his landmark paper Portfolio Selection in 1952, investors evaluated securities in complete isolation, seeking assets with the highest individual return. Markowitz proved mathematically that an asset's risk should not be judged in isolation, but by how it contributes to the overall risk of a portfolio.

The total risk of a two-asset portfolio is governed by the Correlation Coefficient (( ho_{12})) between their returns:

Markowitz Two-Asset Portfolio Variance Formula PORTFOLIO MATHEMATICS

s i g m a_{p} = S QR T [w_{1}^{2} * s i g m a_{1}^{2} + w_{2}^{2} * s i g m a_{2}^{2} + 2 * w_{1} * w_{2} * s i g m a_{1} * s i g m a_{2} * r h o_{1} 2]

Where:

w_1, w_2 = Weights allocated to Asset 1 and Asset 2 ((w_1 + w_2 = 1.0)).
sigma_1, sigma_2 = Individual standard deviations (risks) of the two assets.
rho_12 = Correlation coefficient between the two assets, bound strictly between (-1.0 le ho_{12} le +1.0).

The Mathematical Miracle of Diversification:

If ( ho = +1.0) (Perfect Positive Correlation): Portfolio risk is the simple weighted average: (sigma_p = w_1sigma_1 + w_2sigma_2). Zero risk reduction occurs!
If ( ho < +1.0): Portfolio risk is strictly LESS than the weighted average of individual risks!
If ( ho = -1.0) (Perfect Negative Correlation): By choosing weights (w_1 = sigma_2 / (sigma_1 + sigma_2)), portfolio variance drops to ABSOLUTE ZERO ((sigma_p = 0)) while still earning a positive return!

Numerical Problem 18.1: Proof of Risk Reduction via Negative Correlation
An investor constructs a 50-50 portfolio between two assets: Stock Equity ((sigma_1 = 20%)) and Gold ((sigma_2 = 12%)). Evaluate total portfolio risk under three different economic correlation scenarios:

Scenario A (Perfect Correlation rho = +1.0): sigma_p = 0.5(20%) + 0.5(12%) = 16.00% (No risk reduction).

Scenario B (Zero Correlation rho = 0.0): sigma_p = SQRT[ (0.5)^2 * (20)^2 + (0.5)^2 * (12)^2 ] = SQRT[ 100 + 36 ] = SQRT[ 136 ] = 11.66% (Risk reduced by 27%!).

Scenario C (Negative Correlation rho = -0.30): sigma_p = SQRT[ 100 + 36 + 2(0.5)(0.5)(20)(12)(-0.30) ] = SQRT[ 136 - 36 ] = SQRT[ 100 ] = 10.00%.

Empirical Conclusion: Combining two volatile assets with a negative correlation of -0.30 drops total portfolio risk to 10.00%—which is lower than the risk of either asset standing alone! This is the quantitative justification for multi-asset allocation.

18.2 Strategic vs. Tactical Asset Allocation and Portfolio Rebalancing

Asset allocation accounts for over 90% of the variation in portfolio returns over time, dwarfing the impact of individual stock picking or market timing:

Strategic Asset Allocation (SAA): The long-term target asset mix (e.g., 60% Equity, 30% Fixed Income, 10% Gold) determined strictly by the investor's multi-year risk tolerance and return objectives.
Tactical Asset Allocation (TAA): Disciplined short-term tactical shifts around the strategic baseline (e.g., trimming equities to 50% and expanding cash to 40% when equity market valuations reach extreme bubble territory, then reversing back when valuations normalize).
Portfolio Rebalancing Protocols: Over time, strong market rallies cause higher-performing assets (e.g., equities) to expand beyond their target weight (e.g., growing from 60% to 78%), inadvertently raising overall portfolio risk. Rebalancing involves systematically selling a portion of the outperforming asset and buying the underperforming asset to restore baseline target weights:
- Calendar Rebalancing: Rebalancing at fixed calendar intervals (annually or semi-annually).
- Threshold (Tolerance Band) Rebalancing: Rebalancing whenever an asset class deviates by more than (pm 5%) from its target allocation. This enforces the disciplined discipline of selling high and buying low without emotional interference.

MODULE IV: INVESTMENT IN DIRECT EQUITY

Unit 14: Capital Market Infrastructure: Accounts, Depositories & Settlement

14.1 The 3-in-1 Capital Market Account Ecosystem

1. The Bank Account

2. The Trading Account

3. The Demat Account

14.2 The Demat Account Opening Protocol & Statutory KYC Norms

14.3 Depository Architecture: NSDL vs. CDSL

The Role of Depository Participants (DPs) & ISIN System:

14.4 Clearing Corporations & The T+1 Settlement Cycle

The Mechanics of the T+1 Rolling Settlement:

Chronological Workflow of a T+1 Equity Transaction Day T (Trade Date): Investor places a BUY order for 100 shares of TCS at 11:00 AM. The order matches with a seller's order on NSE. Funds are blocked in the buyer's trading account.

Unit 15: Stockbroking Architecture, Trading Platforms & Order Mechanics

15.1 Full-Service Brokers vs. Discount Brokers

15.2 Anatomy of the Corporate Transaction Cost Stack

15.3 Order Execution Mechanics & Order Types

1. Market Order vs. Limit Order

2. Stop-Loss (SL) & SL-Market (SL-M) Orders

3. Good Till Triggered (GTT) Orders

4. After Market Orders (AMO)

Unit 16: Fundamental Analysis and Stock Valuation Techniques

16.1 The Top-Down EIC (Economy-Industry-Company) Analytical Framework

1. Economic (Macro) Analysis

2. Industry Analysis

3. Company Analysis

16.2 Essential Financial Statement Ratios in Equity Research

16.3 Intrinsic Stock Valuation: The Discounted Cash Flow (DCF) Model

Unit 17: Technical Analysis, Charting & Momentum Indicators

17.1 Foundational Philosophy of Technical Analysis

17.2 Candlestick Charting Fundamentals & Core Patterns

1. High-Probability Reversal Patterns

2. Multi-Candle Engulfing Patterns

17.3 Technical Indicators and Trend Oscillators

1. Moving Averages (SMA and EMA)

2. Relative Strength Index (RSI)

Unit 18: Modern Portfolio Theory (MPT) and Strategic Asset Allocation

18.1 The Harry Markowitz Modern Portfolio Theory (1952)

18.2 Strategic vs. Tactical Asset Allocation and Portfolio Rebalancing

Finished reading Module 4?

Chronological Workflow of a T+1 Equity Transaction
Day T (Trade Date): Investor places a BUY order for 100 shares of TCS at 11:00 AM. The order matches with a seller's order on NSE. Funds are blocked in the buyer's trading account.