(i) First is diamagnetic effect which is consequences of faraday's law of induction. According to the Lenz law's, a magnetic field always sets up an induced current with its magnetic field direction opposite to an initial field .Therefore diamagnetic moment created by the external field is always negative related to this field
(ii) Second effect occurs if there is a resultant non zero magnetic moment in the atom i.e. there is a spin magnetic moment and orbital magnetic moment .In this case external field will attempt to orient the intrinsic atomic magnetic moment in its own direction .As a result a positive moment parallel to the field is created and this is called paramagnetic moment.
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