Summer Internship Project on ICICI Bank- MBA Fiance

1. A PROJECT REPORT ON
Interpreting Financial Performance and Investment opportunities in the Banking Sector
-Wih Special Reference to ICICI Bank & SBI
PREPARED BY
AHI BHUSAN MUKHERJEE
REGISTRATION NO.: 00917 OF 2017-2018
ROLL NO.: PG/24/MBA-IIS/026
MAJOR SPECIALISATION: FINANCE
SESSION: 2017-2019
UNDER THE GUIDANCE OF
MR. JITESH AGARWAL, DIRECTOR
FIVISION CAPITAL MARKET PVT. LTD.
SUBMITTED TO
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT
Affiliated to
VIDYASAGAR UNIVERSITY

2. COMPANY PROFILE
 Finvision Capital Markets Private Limited is an Indian Non-Government Company
incorporated on 09 October 2013 with Registrar of Companies, Kolkata.
 The total paid-up capital is INR 31.0 LAC. Finvision Capital Markets Private Limited has
no reported secured loans.
 Finvision Capital Markets Private Limited has 2 directors/key management personnel
 Service Provided
IPO
Equity Trading
Commodity Market
Currency Trading
Mutual Fund
Strategy Trading

3. OBJECTIVES OF THE STUDY
 To explain the current ecnomic scenario of Indian
Economy.
 To study the Financial Performance of the Banking
Sector with special reference to ICICI Bank Ltd. &
State Bank of India.
 Study on interpreting Financial Performance and
Investment opportunities in those stocks.

4. METHODOLOGY
INDUSTRY: Banking
STOCKS ANALYSED: ICICI BANK STATE BANK OF INDIA
TYPE OF DATA: Secondary
SOFTWARES USED: Meta Stock Ace Equity
CHART TYPE: Line chart for all Tools and Indicators
SCALE: Semi log scale for Trendline and Support & Resistance and
Arithmetic scale for other Tools and Indicators
PERIODICITY: Weekly charts for Tools and Daily charts for Indicators
TIME FRAME: 1st January 2012 to 23rd July 2018 for support and Resistance and
Trendline.
1st August, 2017 to 23rd July, 2018 for others Tools and Indicator

5. TOOLS AND INDICATOR USED
For Both Stocks(ICICI Bank and SBI)
 Dow Theory
 Volume Principle
 Support Resistance
 Trend Line
 Moving Average
 Bollinger Bands
 Relative Strength Index(RSI)
 Moving Average Convergence Divergence(MACD)
 Average Directional Index(ADX)
 Stochastic Oscillator
 Pivot Point

6. ECONOMIC OVERVIEW
 India is the Fastest Growing Economy at 7.4% in 2018
 Q1, 2018 GDP Growth Rate has increased to 7.7% compared to 7% in previous Quarter
 GVA has decreased to 6.1% in current year compared to 6.6% in previous year.
 In the month of Jan & Feb, 2018 growth of IIP was 7.5% & 6.9% respectively due to
mostly contribution of Manufacturing sector.
 CPI rate is 5% in June, 2018 due to mostly contribution of Fruits i.e. 10.13%
 FDI in India has decreased by 3% to $44.85 Billion in 2017-18.
 Current FII net Investment is Rs 1775 Crores in July, 2018. FII net Investment backed
by expectations of an economic recovery, falling interest rates and improving earnings
outlook.
 On 1st August, 2018 RBI decided to increase Repo Rate by 25 basis points to 6.50%.
 Reverse Repo Rate is 6.25%
 The Government achieved the Fiscal Deficit target of 3.5% of GDP in 2017-18.

7. BANKING INDUSTRY OVERVIEW
 As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated.
 Bank may be defined as a financial institution which is engaged in the business of keeping
money for savings and checking accounts or for exchange or for issuing loans and credit etc.
 The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49
foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural
cooperative banks, in addition to cooperative credit institutions
 Bank credit grew at 12.64 per cent year-on-year to Rs 85.511 lakh crore (US$ 1,326.78
billion) on May 11, 2018 from Rs 75.91 lakh crore (US$ 1,131.47) on May 12, 2017.

8. COMPANY ANALYSIS: ICICI BANK
DESCRIPTION MAR, 2018 MAR, 2017 MAR, 2016
Current Ratio 0.12 0.12 0.13
Quick Ratio 20.14 16.31 14.97
CASA(%) 51.07 50.37 45.32
Net Profit Growth(%) -19.76 0.77 -12.97
Advance Growth(%) 10 6.66 12.32
ROA(%) 2.19 1.31 1.42
ROE(%) 7.16 10.66 11.63
NIM(%) 3.14 3.10 3.24
ROCE(%) 6.79 8.13 8.57
PE Ratio 26.36 16.47 14.14
EPS(Rs) 11.89 15.30 15.21
DP Ratio(%) 21.5 14.86 29.89
Dividend Yeild(%) 0.48 0.9 2.11
Asset Quality(%) 4.77 5.43 2.98
Fundamental Analysis

9. ICICI BANK: DOW THEORY

10. ICICI BANK: VOLUME PRINCIPLE

11. ICICI BANK:
SUPPORT AND RESISTANCE

12. ICICI BANK: TRENDLINE

13. ICICI BANK:
EXPONENTIAL MOVING AVERAGE

14. ICICI BANK: BOLLINGER BAND

15. ICICI BANK: RELATIVE STRENGTH INDEX

16. ICICI BANK:
MOVING AVERAGE CONVERGENCE DIVERGENCE

17. ICICI BANK:
AVERAGE DIRECTIONAL INDEX

18. ICICI BANK: STOCHASTIC OSCILLATOR

19. ICICI BANK: PIVOT POINT
Date Open High Low Close
23.07.2018 265.35 276.3 265.35 274.05
Pivot Point (P) 271.9
Support 1 (S1) 267.5
Support 2 (S2) 260.95
Resistance 1 (R1) 278.45
Resistance 2 (R2) 282.85
Table: ICICI Bank share prices as on 23.07.2018
Table: ICICI Bank Pivot Table as on 24.07.2018

20. OBSERVATION FOR ICICI BANK
TOOLS AND
INDICATORS
OBSERVATION DECISION
DOW THEORY Downtrend triggered at the price of around Rs. 292 SELL
VOLUME Volume is supporting the price movement towards down SELL
SUPPORT &
RESISTANCE
Prices can took support at Rs 250 level and starts to increase BUY
TRENDLINE Current price is in downtrend and it took resistance at the price of around Rs
262
SELL
MOVING AVERAGE Current Share Price breaks the 20 Day EMA Line and starts to increase BUY
BOLLINGER BAND After create a ‘W’ Formation prices breaks the -1 SD line and Middle Line
both and current Share Price is in above Middle Line. Now, Prices took
support at Middle Line and took Resistance at +1 SD Line
BUY
RSI Current value for the 14 Day RSI is just crosses the central Line. BUY
MACD At very recent past signal line cuts the MACD Line from below but now the
Signal line and the MACD Line both are at same Point.
BUY
ADX ADX line is reverse towards down -----------
STOCHASTIC On 29th June, it gives signal to Buy BUY
PIVOT POINT Trading is above the pivot point and it indicates bullish sentiment. BUY

21. RECOMMENDATION FOR ICICI BANK
 Majority of the evidence is inclined toward the BUYING decision.
 It is recommended for the new investors to buy the stock for long term profit
booking:
Target: 280.71
Stop Loss: 268.39
 Toward the BUYING decision for Intra-day Traders
Target: 278.45
Stop Loss: 271.9

22. THANK YOU