Assignment of Stock Market.

1. ANALYSIS OF THE VARIOUS STOCKS TRADED IN PORTFOLIO for
STOCK MARKET STIMULATION GAME.
SUNNY.
ROLL NO.: 16030
SESSION: PGDM 2016-18
CALCUTTA BUSINESS SCHOOL

2. INTRODUCTION:
PortfolioManagement:It the science of analyzingthe strengths,weaknesses,opportunitiesandthreats
for performingwiderange of activitiesrelatedtothe one’sportfolioformaximizingthe returnata given
risk.It helpsinmakingselectionof DebtVsEquity,GrowthVsSafety,andvariousothertradeoffs.
Major tasks involvedwithPortfolioManagementare asfollows.
 Takingdecisionsaboutinvestmentmix andpolicy
 Matching investmentstoobjectives
 Assetallocationforindividualsandinstitution
 Balancingriskagainstperformance
There are basically twotypesof portfoliomanagementincase of mutual andexchange-tradedfunds
includingpassiveandactive.
 Passive managementinvolvestrackingof the marketindex orindex investing.
 Active managementinvolvesactivemanagementof afund’sportfoliobymanagerorteamof managers
whotake researchbasedinvestmentdecisionsanddecisionsonindividual holdings.
Portfolio:In termsof mutual fundindustry,aportfolioisbuiltbybuyingadditional bonds,mutual funds,
stocks,or otherinvestments.If apersonownsmore than one security,he hasan investmentportfolio.
The main targetof the portfolioowneristoincrease value of portfoliobyselectinginvestmentsthat
yieldgoodreturns.
VARIOUS Factsabout Portfolio:
 There are manyinvestmentvehiclesinaportfolio.
 Buildingaportfolioinvolvesmakingwide range of decisionsregardingbuyingorsellingof stocks,bonds,
or otherfinancial instruments.Also,one needstomake decisionregardingthe quantityandtimingof
the buy andsell.
 PortfolioManagementisgoal-drivenandtargetoriented.
 There are inherentrisksinvolvedinthe managingaportfolio.

3. Companies Selected:
 Bharti Airtel
 Hero MotoCorp
 Bajaj Auto
 Dr. ReddysLabs
 AxisBank
 Lupin
 SunPharma
 TVS Motor
 Dabur India
 AsianPaints
FUNDAMENTALANALYSIS:
 P/E RATIO(PRICETOEARNINGRATIO):
 Accordingto one view,lowerthe P/Eratio,the betteritis for investors,asthere are chancesof
higherappreciation.
 Generally,acompanywitha highP/Eratio isexpensive whencomparedwith acompanywitha
lowP/E ratio,since witha highP/Eratio one ispayinga largermultiple againstacompany's
earnings.
 The higherthe P/E, the more youare payingforan estimatedstreamof earnings.Investors
usuallyare willingtopaya higherP/Efor companiestheyjudge willbe growingfasterthanthe
norm eventhoughtheydonotpay those earningsoutindividendsbutretainthemtofund
future growth.
 P/E Ratio =
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐬𝐡𝐚𝐫𝐞 𝐩𝐫𝐢𝐜𝐞
𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐩𝐞𝐫 𝐬𝐡𝐚𝐫𝐞
 P/B RATIO(PRICETOBOOK VALUE RATIO):
 The price-to-bookratio measures a company's marketprice in relation to its bookvalue. The
ratio denotes how much equity investors are paying for each dollar in netassets.
 A P/B ratio of less than 1.0 can indicate that a stock is undervalued, while a ratio of
greater than 1.0 may indicate that a stock is overvalued.
 The price-to-bookratio indicates whether or not a company's assetvalue is comparable to
the marketprice of its stock. For this reason, it can be useful for finding value stocks. It is

4. especially useful when valuing companies that are composed of mostly liquidassets, such
as finance, investment, insurance, and banking firms
 P/BV Ratio =
𝐌𝐚𝐫𝐤𝐞𝐭 𝐩𝐫𝐢𝐜𝐞 𝐩𝐞𝐫 𝐬𝐡𝐚𝐫𝐞
𝐁𝐨𝐨𝐤 𝐯𝐚𝐥𝐮 𝐩𝐞𝐫 𝐬𝐡𝐚𝐫𝐞
 DEBTEQUITY RATIO:
 The debtto equityratioisa financial,liquidityratiothatcomparesa company'stotal debtto
total equity.The debttoequityratioshowsthe percentage of company financingthatcomes
fromcreditorsand investors.A higherdebttoequityratioindicatesthatmore creditorfinancing
(bankloans) isusedthaninvestorfinancing(shareholders).
 A highdebt/equityratiogenerallymeansthata companyhas beenaggressiveinfinancingits
growthwithdebt.Thiscan resultinvolatile earningsasa resultof the additional interest
expense.
 Debt/Equity Ratio=
𝐓𝐨𝐭𝐚𝐥 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐄𝐪𝐮𝐢𝐭𝐲
TECHNICAL ANALYSIS:
 RELATIVE STRENGTHINDEX (RSI):
A technical momentumindicatorthatcomparesthe magnitudeof recentgainstorecentlossesin
an attemptto determine overboughtandoversoldconditionsof an asset.The RSI rangesfrom 0
to 100. An assetisdeemedtobe overboughtonce the RSIapproachesthe 70 level,meaningthat
itmaybe gettingovervaluedandisagoodcandidateforapullback.Likewise,if theRSIapproaches
30, it is an indication that the asset may be getting oversold and therefore likely to become
undervalued.

5.  MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD):
A trend-followingmomentumindicatorthatshowsthe relationshipbetweentwomovingaveragesof
prices.The MACD is calculatedbysubtractingthe 26-dayexponential movingaverage (EMA) fromthe
12-day EMA. A nine-day EMA of the MACD, calledthe "signal line",isthenplottedontopof the MACD,
functioningasa triggerforbuy andsell signals.
Crossovers- As showninthe chart above,whenthe MACD fallsbelow the signalline,itisa bearish
signal,whichindicates thatitmaybe time to sell.Conversely,whenthe MACDrisesabove the signal
line,the indicatorgivesabullishsignal,whichsuggeststhatthe price of the assetis likelytoexperience
upwardmomentum.Manytraderswaitfor a confirmedcrossabove the signal line before enteringinto
a positiontoavoidgetting "fakedout"orenteringintoa positiontooearly,asshownbythe firstarrow.
Divergence - Whenthe securityprice divergesfromthe MACD.It signalsthe endof the currenttrend.
Dramatic rise - Whenthe MACD risesdramatically - thatis,the shortermovingaverage pullsaway
fromthe longer-termmovingaverage - itisa signal thatthe securityisoverboughtandwill soonreturn
to normal levels.
 MOMENTUM
Once a momentumtraderseesaccelerationinastock's price,earningsorrevenues,the traderwill often
take a longorshort positioninthe stockinthe hope thatitsmomentumwillcontinueineitheranupward
or downward direction. This strategy relies on short-term movements in a stock's price rather than
fundamental value, and it is not recommended for novices.

6.  BOLLINGER BANDS
A band plotted two standard deviations away from a simple moving average, developed by famous
technical trader John Bollinger.
Because standard deviation is a measure of volatility, Bollinger Bands adjust themselves to the market
conditions. When the markets become more volatile, the bands widen (move further away from the
average),andduringlessvolatileperiods,the bandscontract(moveclosertothe average).The tightening
of the bandsisoftenusedbytechnical tradersasanearlyindicationthatthe volatilityisabouttoincrease
sharply.
 Parabolic SAR:
Parabolic Stop and Reverse Price (Parabolic SAR) is an adaptive technique which allows a new
trend some breathing space and then closes in to tighten the stop order. It uses a series of
progressivelysmallerperiodexponential movingaverageswhere eachperiodof movingaverage
isshorterthan the previousone.Thisway,firstsometime isgivenforthe trendtosetitself.Then
the moving average comes close to the actual data set. The signal is “buy” when the daily high
price is lower than the SAR and “sell” when the daily low price is higher than the SAR.

7.  Chaikin money flow:
ChaikinMoneyFlow(CMF) isan oscillatorthatfluctuatesbetween -1and +1. Rarely,if ever,will
the indicatorreach these extremes.Itwouldtake 20 consecutive closesonthe high(low) for20-
day Chaikin Money Flow to reach +1 (-1). Typically, this oscillator fluctuates between -0.50 and
+0.50 with zero as the centerline.

8. Bharti Airtel

9. Dr. Reddys Labs
Hero MotoCorp

10. Bajaj Auto
s

11. Dabur India

12. Lupin

13. Stock Pur. Qty Pur. Date Pur. Price Latest Price Latest Value Broker
Abbott India (NSE) 5 29-11-2016 4895 4740 23700
Stock Pur. Price Pur. Date Sell Qty Sell Price Sell Date Profit Broker
Hero Motocorp - (NSE) 2936.45 18-11-2016 5 2936 18-11-2016 -2
TVS Motor - (NSE) 360.25 18-11-2016 5 361.85 18-11-2016 8
Hero Motocorp - (NSE) 2925 18-11-2016 20 2933.1 18-11-2016 162
Dr Reddys Labs - (NSE) 3202 18-11-2016 20 3204 18-11-2016 40
Dr Reddys Labs - (NSE) 3205 18-11-2016 20 3206 18-11-2016 20
Bharti Airtel - (NSE) 303.2 18-11-2016 50 303.75 18-11-2016 28
Bharti Airtel - (NSE) 302.7 18-11-2016 1000 303.8 18-11-2016 1100
Bharti Airtel - (NSE) 302.8 18-11-2016 2000 303.8 18-11-2016 2000
Bharti Airtel - (NSE) 302.7 18-11-2016 10000 304 18-11-2016 13000
Bharti Airtel - (NSE) 301.1 18-11-2016 25 301.25 18-11-2016 4
Hero Motocorp - (NSE) 2933.4 18-11-2016 5 2934.9 18-11-2016 8
Axis Bank - (BSE) 476 18-11-2016 20 476.6 18-11-2016 12
Sun Pharma - (NSE) 689 18-11-2016 1 690 18-11-2016 1
TVS Motor - (NSE) 363.05 18-11-2016 5 1821 18-11-2016 7290
Bajaj Auto - (NSE) 2568 18-11-2016 5 12858 18-11-2016 51450
- (NSE) 0 00-00-0000 1 3241 18-11-2016 3241
Dr Reddys Labs - (NSE) 3222 18-11-2016 5 3224.95 18-11-2016 15
Bharti Airtel - (NSE) 301.2 18-11-2016 20 301.3 18-11-2016 2
Lupin - (NSE) 1423 18-11-2016 5 1423.95 18-11-2016 5
Bharti Airtel - (NSE) 303 19-11-2016 20000 303.75 19-11-2016 15000
Bharti Airtel - (NSE) 303 19-11-2016 10000 303.75 19-11-2016 7500
NTPC - (NSE) 159 18-11-2016 15 159.05 20-11-2016 1
Cipla - (NSE) 550.95 19-11-2016 10 550.95 20-11-2016 0
Sun Pharma - (NSE) 688.25 20-11-2016 5 688.85 20-11-2016 3
Hero Motocorp - (NSE) 2934.75 20-11-2016 5 2935.4 20-11-2016 3
Dr Reddys Labs - (NSE) 3132.85 21-11-2016 1000 3137 21-11-2016 4150
Bharti Airtel - (NSE) 299 21-11-2016 10000 299.7 21-11-2016 7000
Bharti Airtel - (NSE) 298.1 21-11-2016 100000 299.1 21-11-2016 100000
Bharti Airtel - (NSE) 298.4 21-11-2016 50000 298.8 21-11-2016 20000
Bharti Airtel - (NSE) 298.55 21-11-2016 20000 298.85 21-11-2016 6000
Bharti Airtel - (NSE) 298.55 21-11-2016 10000 298.8 21-11-2016 2500
Coal India - (NSE) 306.7 19-11-2016 5 307.95 21-11-2016 6
Bharti Airtel - (NSE) 302.05 23-11-2016 100000 302.35 23-11-2016 30000
Axis Bank - (NSE) 473.45 19-11-2016 50 474.45 23-11-2016 50
Bajaj Auto - (NSE) 2574.8 19-11-2016 5 2605.3 23-11-2016 153
Bharti Airtel - (NSE) 302.75 21-11-2016 30000 303.2 23-11-2016 13500
Bharti Airtel - (NSE) 302.7 23-11-2016 100000 302.9 23-11-2016 20000
Bharti Airtel - (NSE) 302.35 21-11-2016 10000 303 23-11-2016 6500
Bharti Airtel - (NSE) 301.9 21-11-2016 10000 303 23-11-2016 11000
Asian Paints - (NSE) 921 18-11-2016 5 932.7 23-11-2016 59
Lupin - (NSE) 1422.95 18-11-2016 20 1433.65 23-11-2016 214
Bharti Airtel - (NSE) 300.05 24-11-2016 100000 300.2 24-11-2016 15000
Bharti Airtel - (NSE) 299.5 24-11-2016 100000 300.05 24-11-2016 55000
Dabur India - (NSE) 275.8 25-11-2016 10000 275.9 25-11-2016 1000
Bharti Airtel - (NSE) 300.8 25-11-2016 500000 300.85 25-11-2016 25000
Cipla - (NSE) 554.54 18-11-2016 1 554.6 25-11-2016 0
Dr Reddys Labs - (NSE) 3097.05 25-11-2016 500 3101 25-11-2016 1975
Bharti Airtel - (NSE) 300.15 25-11-2016 500000 300.25 25-11-2016 50000
Bharti Airtel - (NSE) 300.1 25-11-2016 100000 300.25 25-11-2016 15000
Bharti Airtel - (NSE) 302.5 23-11-2016 200000 305 25-11-2016 500000
Financial Year : All Transactions
Scrips Bought
Scrips Sold