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AN ANALYSIS OF BLUECHIP
AUTOMOBILE INDUSTRIES
IN CNX AUTONIFTY
SPECIAL REFERENCE TO FUTURE
INVESTMENTS, TUTICORIN
Introduction
The title of the project is “Technical Analysis” a Tool for
Investment Decision Making with Special Focuses o...
Statement Of Problem
• The investors have difficult to identify the Risk factor of
the Blue chip four wheeler Automobile C...
Objectives Of The Study
Primary Objectives
• To study the relationship between the CNX AUTONIFTY
and Blue chip four wheele...
Research Methodology(sample Design Research
Design Tools Analysis )
Research is a systematic and continues method of
defin...
Research Methodology(sample Design Research
Design Tools Analysis )
Research Design
A research design is the arrangement o...
Research Methodology(sample Design Research
Design Tools Analysis )
TOOLS FOR ANALYSIS
The following are the tools have be...
Research Methodology(sample Design Research
Design Tools Analysis )
SOURCES OF DATA
The main sources of data for the prese...
Limitation
• The study is only focused on three Automobile companies in
CNX AUTO NIFTY.
• The study only focused on Techni...
Company Profile
• Future investments is a channel partner for ICICI securities
Future investments started in 2005 owned by...
Company Profile
QUALITY POLICY OF THE COMPANY:-
To achieve and retain leadership, shall aim for complete
customer satisfac...
Company Profile
QUALITY OBJECTIVES:-
• Build-in-house processes that will insure transparent and
harmonious relationship w...
Findings
CORRELATION
• In the year 2014 January- December the correlation coefficient
an Auto Nifty and Mahindra & Mahindr...
Findings
BETA (RISK FACTOR)
The beta of NIFTY index is 1 at is standard.
• In the year 2014 it implies that one percent ch...
Findings
RELATIVE STRENGTH INDEX (RSI)
MAHINDRA & MAHINDRA
In the month of February the RSI reached the level 30. So it
in...
Findings
RELATIVE STRENGTH INDEX (RSI)
TATA MOTORS
In the month of December the RSI reach the level 30. So it
indicates ov...
Suggestion
• It is better to invest in companies with good market value, good
performance in revenue and should consider v...
Suggestion
• The Correlation of Mahindra & Mahindra, Maruti and Tata
motors shows the positive relationship with CNX Auto ...
Conclusion
• This study concludes return, market trend, co-efficient of
variations for the Automobile blue chip four wheel...
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Analysis on bluechip

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AN ANALYSIS OF BLUECHIP AUTOMOBILE INDUSTRIES IN CNX AUTONIFTY

Analysis on bluechip

  1. 1. AN ANALYSIS OF BLUECHIP AUTOMOBILE INDUSTRIES IN CNX AUTONIFTY SPECIAL REFERENCE TO FUTURE INVESTMENTS, TUTICORIN
  2. 2. Introduction The title of the project is “Technical Analysis” a Tool for Investment Decision Making with Special Focuses on BLUECHIP AUTOMOBILE INDUSTRIES in AUTO NIFTY on NSE” carried out in future investments for investors. It is done mainly to analyze indices and the role of technical analysis in decision making. This project aimed the researcher a lot in putting theoretical knowledge that the researcher had gained through his academics, in to practical. And also the researcher has gain theoretical as well as practical knowledge about share market and the activities undertaken in a share broking company. Hence the researcher feels this project is definitely relevant to the MBA degree that the researcher is pursuing.
  3. 3. Statement Of Problem • The investors have difficult to identify the Risk factor of the Blue chip four wheeler Automobile Company's shares. • Investment timing plays a crucial role for trading in stock market trading. The investors face difficulty while identifying the opportunities. • The investors have difficulty to identify the appropriate overbought and oversold condition of the Blue chip four wheeler Automobile Company's scripts.
  4. 4. Objectives Of The Study Primary Objectives • To study the relationship between the CNX AUTONIFTY and Blue chip four wheeler Automobile company’s stocks. Secondary objectives • To study the strength of Blue chips four wheeler Automobile Company’s stocks. • To know the risk factor in the selected automobile company’s shares. • To know the buy and sell signal position in market trend of Blue chip four wheeler Automobile company’s stocks. • To find out the overbought and oversold condition of Blue Chip Automobile Company’s share. • To find out trend following the momentum of the selected automobile company’s stocks.
  5. 5. Research Methodology(sample Design Research Design Tools Analysis ) Research is a systematic and continues method of defining a problem, collecting the facts and analyzing them, reaching conclusion forming generalizations. Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically.
  6. 6. Research Methodology(sample Design Research Design Tools Analysis ) Research Design A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. It is the conceptual structure within which research is conducted. Analytical Research is used in this study. An analytical research answers questions why , how, when and by whom the incident happened. It provides suitable reason. It is an in depth study.
  7. 7. Research Methodology(sample Design Research Design Tools Analysis ) TOOLS FOR ANALYSIS The following are the tools have been used in this research • Correlation • RSI (Relative Strength Index) • Beta
  8. 8. Research Methodology(sample Design Research Design Tools Analysis ) SOURCES OF DATA The main sources of data for the present study used are secondary in nature. Secondary data consists of information that already exists somewhere and has been collected for specific purpose in the study. Secondary data has been obtained by the national stock exchange website. For the purpose of this study the daily closing prices of Three Blue chip four wheeler Automobile companies listed in National stock exchange were taken and analysis them through the technical tools.
  9. 9. Limitation • The study is only focused on three Automobile companies in CNX AUTO NIFTY. • The study only focused on Technical Analysis but the Fundamental Analysis is also an important study analysis for the determination of company's stock price movement. • The limited Technical tools only have been used for this study. • Very short period of time for the study.
  10. 10. Company Profile • Future investments is a channel partner for ICICI securities Future investments started in 2005 owned by S.Sankar Kumar .Future investments using the ICICI securities domain to trade. • Future investments are a provider of financial services and information provider primarily to Institutional and Retail clients in India. • The Company operates in three segments: – Capital Market (CM) segment, – Depository Participant (DP) segment – Merchant Banking (MB) segment. • The Company is a member of the National Stock Exchange of India Ltd. (NSE) and BSE Limited (BSE) in the Capital Market and Dervatives (Futures & Options) segment.
  11. 11. Company Profile QUALITY POLICY OF THE COMPANY:- To achieve and retain leadership, shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial service, in the process, company will strive to exceed customer’s expectation
  12. 12. Company Profile QUALITY OBJECTIVES:- • Build-in-house processes that will insure transparent and harmonious relationship with its clients and investor to provide high quality of services. • Establish a partner relationship with its investors service agent and vendors that will help in keeping up it commitments to the customers. • Provide high quality of work life for all its employees and equip them with adequate knowledge and skills so as to respond to customer’s needs. • Continue to uphold the values of honesty and integrity and strive to establish unparalleled standard and business ethics. • Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients.
  13. 13. Findings CORRELATION • In the year 2014 January- December the correlation coefficient an Auto Nifty and Mahindra & Mahindra Ltd. Stocks relationships is positive. The positive correlation is r=0.89. • In the year 2014 January - December the correlation coefficient an Auto Nifty and Maruti suzuki Ltd. Stocks relationships is positive. The positive correlation is r=0.99. • In the year 2014 January - December the correlation coefficient an Auto Nifty and Tata Motors Ltd. Stocks relationships is positive. The positive correlation is r=0.95.
  14. 14. Findings BETA (RISK FACTOR) The beta of NIFTY index is 1 at is standard. • In the year 2014 it implies that one percent change in the sector stock return causes exactly one percent change in the stock return Mahindra & Mahindra Ltd. stock was more when compared on auto nifty. (1.23) • In the year 2014 it implies that one percent change in the sector stock return causes exactly one percent change in the stock return Maruti Suzuki Ltd. Stock was more volatile. Stock was more when compared on auto nifty. (0.96) • In the year 2014 it implies that one percent change in the sector stock return causes exactly one percent change in the stock return Tata motors India Ltd. stock was more when compared on auto nifty. (1.31)
  15. 15. Findings RELATIVE STRENGTH INDEX (RSI) MAHINDRA & MAHINDRA In the month of February the RSI reached the level 30. So it indicates oversold condition. The RSI crossing the level of above 70 in the period of April, May, June , July, September , October November which is clearly signaling that the stock had the overbought condition. So investor can invest in these stocks. MARUTI SUZUKI In the month of February the RSI reached the level 30. So it indicates oversold condition. The RSI crossing the level of above 70 in the period of April, May, June , July, September , October November which is clearly signaling that the stock had the overbought condition. MARUTI stock is more volatile. Investor/trader may use the volatile and make profit.
  16. 16. Findings RELATIVE STRENGTH INDEX (RSI) TATA MOTORS In the month of December the RSI reach the level 30. So it indicates oversold condition. The RSI crossing reaches the level of above 70 in the period of March, April, May, July, and September which is clearly signaling that the stock had the overbought condition. So investor can invest in these stocks.
  17. 17. Suggestion • It is better to invest in companies with good market value, good performance in revenue and should consider various factors affecting the performance before investing. • The investors who invest in blue chip companies it reduce risk bearing. The company’s stock has a relationship with CNX Auto Nifty. • The investor has to invest in blue chip Company of automobiles in her/his portfolio to reduce risk. • The investor and trader should known about the company’s performance and quarter results. • The study reveals that the Mahindra & Mahindra, Maruti and Tata motors have highest return and investor can be suggested to invest more in these companies.
  18. 18. Suggestion • The Correlation of Mahindra & Mahindra, Maruti and Tata motors shows the positive relationship with CNX Auto Nifty. • The risk factor of the Maruti stock is 2.807.so it is more than the market value (+1) which indicates more volatility of the stock.(If beta = +1.0,it implies that one percent change in the market stock return causes exactly one percent change in the stock return. It indicates that the stock market moves in tandem with the market).
  19. 19. Conclusion • This study concludes return, market trend, co-efficient of variations for the Automobile blue chip four wheeler stocks. Risk has two components, systematic and unsystematic risk. The relationship between Automobile stocks and Auto nifty are positively correlated most of the time. Investors/trader is interested in predicting the future behavior of stock market. The person, who has knowledge in stock market, may survive in the market and generates profit or good return whether the market is down. • Studying the fundamental factors which influence the market price and also the performance of the company is a part of any investor before going for investment. The investor /trader should look at the price movements of the particular company over the years and should go for better portfolio.
  • Mastansaikumaraddaga

    Feb. 6, 2017

AN ANALYSIS OF BLUECHIP AUTOMOBILE INDUSTRIES IN CNX AUTONIFTY

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