Trading Trends of Retail Intraday Traders Trends in Cash Market a Study at BSE and NSE

Abstract

ABSTRACT newlineIndia is the country which witnesses major political and economic changes around the newlineworld in the recent decade with dynamic performance of Indian Stock Exchange. Indian newlineStock Exchange is not considered to be an exchange alone because it represents Indian newlineEconomy too. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are the newlinebackbone of Indian Stock Exchange due to their vital contribution in maintaining their market newlineshare in India and all over the world. NSE is a success story of a domestic brand that newlinereinforces entrepreneurship and professionalism. It is a source for identifying the nation s newlineconsistent economic development story. As mentioned by Ashok Chawla, Chairman of NSE newline(2018), the turnover of NSE in Cash Market segment faces a recorded growth from Rs newline43,29,655 crore (2015) to Rs 72,34,827 crore (2018). Thus, NSE keeps enjoying the position newlineof the prominent exchange of India and also the largest notable exchange in the world. As newlinementioned above, BSE also plays a significant role in contributing for India s growth. It has newlineto be noted that BSE is the oldest in Asia and fastest leading exchange in the world with the newlinespeed of 6 micro seconds. Due to technological developments, Indian Stock Market continues newlineto be pioneering with notable innovation like Intraday Trade. Intraday Trade is a platform to newlinebuy and sell the stocks during the trading hours on the same day as predetermined by the newlineExchange. It plays an important role in maintaining a consistent liquidity and volatility in the newlinemarket. Without Intraday trade, the stock market may not be fulfilled due to notable volumes newlineproduced by the retail Intraday Traders. The above mentioned factors influenced to carry out newlinethe Research on Trading Trends of Retail Intraday Traders in Cash Market: A Study at BSE newlineand NSE . newlineThe Study was conducted with the objectives to understand the retail Intraday Traders newlinetrading styles towards cash market in the BSE and NSE, to identify various key factors that newlineinfluence trading trends of retail traders and to find out the impact demographic variables newlinewith respect to dimensions of Intraday Trade. The questionnaire was prepared based on the newlineobjectives. Primary data was collected through Scheduled Method from 404 respondents in newlineBangalore. Purposive Snow Ball Sampling was adopted to select the respondents. The newlinecollected data was coded using Microsoft Excel and the same was analyzed using SPSS and newlineAMOS (Analysis of Moment Structure Software) for SEM (Structural Equation Modeling). newlineBased on the analysis, it was found that Trading Trends has a significant relationship newlinewith Stock Preferences, Online Trading and Risk Taking Ability and Willingness. There was newlinealso a strong relationship for Risk Taking Ability and Willingness with variables like Entry and newlineExit Strategy, Stock Preferences, Technical Analysis, and Information Sources. Indiscipline newlineTrading had a significant relationship with Stock Preferences, Technical Analysis, and newlineInformation Sources. In order to fulfill the identified research gap of converging the newlinevariables, the Structural Equation Model was developed on Trading Trends of Retail Intraday newlineTraders in Cash Market of BSE and NSE. It resulted in filling the gap among the variables newlinewith the value of 1.393 which indicated the model being fit. The suggestions were given in newlinethe form of thumb rules based on the Model. The verified thumb rules paved way for the newlinebetterment of Intraday Traders in gaining optimum profit.