sajm






Applying Point Planning in the Indian Derivatives Market: A Step towards a Resilient Viksit Bharat

Shaunak Mainkar*, Shweta Jain** and Darshan Bagade***

DOI: https://doi.org/10.62206/sajm.31.5.2024.57-78

PUBLISHED :29 JAN 2025

Abstract

The Indian derivatives market, a bustling arena teeming with potential, also harbors significant risk. A recent SEBI report paints a picture that raises concerns: nearly 9 out of 10 individual traders in the equity F&O segment lost money in FY22. This alarming trend begs the question— what’s driving these losses, and how can we help traders navigate this volatile landscape with more resilience? Upon reflection, it becomes evident that the causes of retail traders’ losses are manifold, encompassing factors such as undisciplined trading practices, inadequate market knowledge, and excessive market volatility. In response to these challenges, this research endeavors to explore the efficacy of implementing point planning dynamics within the Indian derivatives market. This research investigates the application of point plans in the derivatives market, a crucial sector for Viksit Bharat 2047’s financial ambitions. Point plans involve pre- determining entry and exit strategies for various scenarios, effectively reducing the complex decision-making process for derivatives traders. This study examines the effectiveness of point plans in the Indian derivatives market and explores the necessary components for their successful implementation. This research extends insights into structuring point plans with well-defined scenarios, clear targets, and stop-loss parameters to enhance decision-making precision and emotional control. The recommendations offered urge creators to meticulously prepare point plans with scenario-specific strategies before market opening and stress the importance of executing these plans within a controlled environment to avoid emotional biases and ensure consistency in trading actions.

Key Words

Derivatives, Futures & Options, Financial markets, Point planning, Trading

Author Biography

Shaunak Mainkar*
Assistant Professor, Institute of Management Development & Research, DES Campus, Agarkar Road, Deccan Gymkhana, Pune-411 004, India. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Shweta Jain**
Associate Professor, Institute of Management Development & Research, DES Campus, Agarkar Road, Deccan Gymkhana, Pune-411 004, India. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Darshan Bagade***
Assistant Professor, Institute of Management Development & Research, DES Campus, Agarkar Road, Deccan Gymkhana, Pune-411 004, India. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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