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1
CHAPTER I
INTRODUCTION
1.1. Introduction
The title of the project is “Technical Analysis” a Tool for Investment
Decision...
2
also to study about the market trend of the three Automobile four wheeler blue
chip companies through the vortex Indicat...
3
1.4. SIGNIFICANCE OF THE STUDY
This is the task of conducting a research on behavior of stocks in stock market.
The main...
4
1.6.2. SOURCES OF DATA
The main sources of data for the present study used are secondary in
nature. Secondary data consi...
5
referred to as the Pearson product moment correlation coefficient in honor of its
developer Karl Pearson.
The mathematic...
6
approaches 30, it is an indication that the asset may be getting oversold and
therefore likely to become undervalued. RS...
7
1.9. LIMITATIONS OF THE STUDY
 The study is only focused on three Automobile companies in CNX AUTO
NIFTY.
 The study o...
8
CHAPTER-II
REVIEW OF LITERATURE
Review of Literature
According to Achelis "Technical analysis is the process of analyzin...
9
thirty-one-year period from Jan 1966 –Oct 1997.the results provide strong support
for profitability of those technical t...
10
divergence. On the other hand 't is better to take short position when there{ is bearish
divergence.
Paul Abbondante (2...
11
indicators. And helps to measure to the rate of change between the current price and
price in past and to identify over...
12
For those keen on making money from this strategy, there are several indicators or
tools that can help identify momentu...
13
CHAPTER-III
INDUSTRY PROFILE AND COMPANY PROFILE
3.1. INDUSTRY PROFILE
AN OVERVIEW OF THE INDIAN SECURITIES MARKET
Secu...
14
Key indicators of securities market
Index
An Index is used to give information about the price movements of products in...
15
Turnover
Turnover for a share is computed by multiplying the traded quantity with the price at
which the trade takes pl...
16
The office of SEBI is situated at SEBI Bhavan, Bandra Kurla Complex, Bandra East,
Mumbai-400051, with its regional offi...
17
3. Inspect the books of accounts and call for periodical returns from
recognized stock exchanges.
4. Inspect the books ...
18
NSE (NATIONAL STOCK EXCHANGE OF INDIA)
The National Stock Exchange (NSE) is India's leading stock exchange covering var...
19
 Integrity
 Customer focused culture
 Trust, respect and care for the individual
 Passion for excellence
 Teamwork...
20
i) The investors,
ii) The issuers,
iii) The intermediaries.
These participants are regulated by the Securities and Exch...
21
BLUECHIP STOCKS
A nationally recognized, well-established and financially sound company. Blue chips
generally sell high...
22
Indian Capital Market:
The Capital Market deals in the long-term (for time-periods more than one year) capital
Securiti...
23
Capital market investments in the stock market:
 The stock market is basically the trading ground capital market inves...
24
About Index
A stock market index is a measure of the relative value of a group of stocks in
numerical terms. As the sto...
25
CNX AUTO
The CNX Auto Index is designed to reflect the behavior and performance of the
Automobiles segment of the finan...
26
List of companies in CNX AUTO
Top 10 constituents by weightage
Company’s Name Weight (%)
Tata Motors Ltd. 24.89
Mahindr...
27
3.2. COMPANY PROFILE
Future investments is a channel partner for ICICI securities Future investments started in
2005 ow...
28
 Continue to uphold the values of honesty and integrity and strive to establish
unparalleled standard and business eth...
29
Trade Time
Preopen - 9.00 a.m. to 9.07 a.m. (Monday to Friday)
Market Time - 9.15 a.m. to 3.30 p.m. (Monday to Friday)
...
30
DEMAT ACCOUNT:-
Demat account is very much similar to saving current account of a bank, with the only
difference being ...
31
ICICI Securities
ICICI Securities Ltd is the largest equity house in the country providing end-to-end
solutions (includ...
32
Protection Corporation (SIPC). ICICI Securities Inc. activities include Dealing in
Securities and Corporate Advisory Se...
33
 ICICI Securities won the 'BSE IPF D&B Equity Broking Awards 2012' under two
categories:
 Best Equity Broking House -...
34
PROFILE OF THE BLUECHIP FOUR WHEELER AUTOMOBILE
COMPANIES
TATA MOTORS LIMITED
Tata Motors Limited is India's largest au...
35
exports out of South Korea are from Tata Daewoo. In 2006, Tata Motors formed a 51:49
joint venture with the Brazil-base...
36
carrying capacity, operating economy and trims, they will introduce new benchmarks
in India and match the best in the w...
37
MAHINDRA& MAHINDRA LIMITED (M&M)
Indian multinational automobile manufacturing corporation headquartered in Mumbai.
It ...
38
The Mahindra Group focuses on enabling people to rise through solutions that
power mobility, drive rural prosperity, en...
39
MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki India Limited(msil) commonly referred to as Maruti and
formerly known as Maru...
40
Rewards and recognition
The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki
in the sev...
41
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION
Data Analysis
Analysis of data in a general way involves a num...
42
TABLE 4.1
CORRELATION BETWEEN AUTO NIFTY AND MAHINDRA &MAHINDRA
INDIA LTD STOCK JAN-DEC-2014
Date
X
(Auto
Nifty
close
p...
43
Where X = Auto Nifty Close price, Y = M&M Close price
𝑋 = ∑ 𝑋/𝑁 = 82865.50 / 12 = 6905.46
𝑌 = ∑ 𝑌/𝑁 = 14136.35 / 12 = 1...
44
TABLE 4.2
TABLE SHOWS CORRELATION BETWEEN AUTO NIFTY AND MARUTI
SUZUKI INDIA LTD STOCK JAN-DEC-2014
Date
X
(Auto
Nifty
...
45
Where X = Auto Nifty Close price, Y = Maruti suzuki Close price
𝑋 = ∑ 𝑋/𝑁 = 82865.50 / 12 = 6905.46
𝑌 = ∑ 𝑌/𝑁 = 30215.8...
46
TABLE 4.3
CORRELATION BETWEEN AUTO NIFTY AND TATA MOTORS INDIA LTD
STOCK JAN-DEC-2014
Date
X
(Auto
Nifty
close
price)
Y...
47
Where X = Auto Nifty Close price, Y = M&M Close price
𝑋 = ∑ 𝑋/𝑁 = 82865.50 / 12 = 6905.46
𝑌 = ∑ 𝑌/𝑁 = 5465.10 / 12 = 45...
48
TABLE 4.4
BETA CALCULATION OF MAHINDRA &MAHINDRA INDIA LTD
JAN – DEC -2014
Date
(Auto
nifty close
price)
(M&M
close
pri...
49
CHART 4.1
SHOWS THE BETA OF MAHINDRA & MAHINDRA INDIA LTD
JAN TO DEC -2013
INTERPRETATION
The 𝛽 value for Mahindra & Ma...
50
TABLE 4.5
BETA CALCULATION OF MARUTI SUZUKI INDIA LTD –JAN – DEC -2014
Date
(Auto nifty
close
price)
(Maruthi
suzuki
cl...
51
CHART 4.2
SHOWS THE BETA OF MARUTHI SUZUKI INDIA LTD –JAN TO DEC -2014
INTERPRETATION
The 𝛽 value for Maruti Suzuki lim...
52
TABLE 4.6
BETA CALCULATION OF TATA MOTORS INDIA LTD –JAN – DEC -2014
Date
(Auto nifty
close price)
(TATA
Motors
close p...
53
CHART 4.3
SHOWS THE BETA OF TATA MOTORS INDIA LTD –JAN TO DEC -2014
INTERPRETATION
The 𝛽 value for Tata Motors limited ...
54
TABLE 4.7
TECHNICAL ANALYSIS FOR M&M INDIA LTD DURING JAN-DEC 2014
Date Close Price Volume RSI Auto Nifty Nifty
1-Jan-1...
55
21-Feb-14 930 467313 65.36237 5285.75 6155.45
24-Feb-14 944.1 391298 84.76337 5314 6186.1
25-Feb-14 943.9 955190 81.051...
56
29-Apr-14 1068 855403 65.89127 5844.25 6715.25
30-Apr-14 1074.2 1355176 69.86265 5866.5 6696.4
2-May-14 1057.85 798421 ...
57
27-Jun-14 1153.5 1016909 31.9416 6750.4 7508.8
30-Jun-14 1147.2 1312636 27.65792 6775.15 7611.35
1-Jul-14 1194.3 972243...
58
28-Aug-14 1407.2 1511316 80.21831 7683.6 7954.35
1-Sep-14 1403.35 1078879 85.5247 7789.35 8027.7
2-Sep-14 1395.6 118482...
59
5-Nov-14 1256.1 1286876 47.82609 8183.95 8338.3
7-Nov-14 1239.1 1364747 44.31615 8118.4 8337
10-Nov-14 1230.9 908779 52...
60
CHART 4.4
TECHNICAL ANALYSIS FOR M&M INDIA LTD DURING JAN-DEC2014
INTERPRETATION
In the month of February and October t...
61
TABLE 4.8
TECHNICAL ANALYSIS FOR MARUTI SUZUKI INDIA LTD DURING JAN-
DEC2014
Date Close Price Volume RSI Auto Nifty Nif...
62
20-Feb-14 1683.3 344996 59.26363 5259.65 6091.45
21-Feb-14 1675.6 340948 61.70562 5285.75 6155.45
24-Feb-14 1684.4 3268...
63
28-Apr-14 1950.45 258675 53.58107 5907.55 6761.25
29-Apr-14 1916.5 335612 45.67648 5844.25 6715.25
30-Apr-14 1923 24390...
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  1. 1. 1 CHAPTER I INTRODUCTION 1.1. 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. A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use Figures and other tools to identify patterns that can suggest future activity. This is an important technique, which is used to predict the future performance of the stocks. It is mainly concerned with the study of the historical price movements of the stocks and on its volume of trade in the market to predict the future trend movements of the stock. However, it does not consider any fundamental factors of the company like earnings, dividends, growth rates etc. This research aims at Technical analysis of the major Automobile four wheeler blue chip companies listed in the National stock exchange and also to suggest the investor to buy, sell or hold the shares and also to suggest the best investment alternative using the RSI (Relative Strength Index), MFI (Money Flow Index), MACD (Moving Average convergence / divergence), to study about the Risk factor of the Automobile four wheeler blue chip companies stocks through the Beta calculation and
  2. 2. 2 also to study about the market trend of the three Automobile four wheeler blue chip companies through the vortex Indicator. For this analysis three companies are taken from the Automobile sector. For this study the researcher has taken one year (January — December 2014) solid data from the National Stock Exchange website and to predict the market trends of bluechip companies. 1.2. STATEMENT OF THE 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. 1.3. 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.
  3. 3. 3 1.4. SIGNIFICANCE OF THE STUDY This is the task of conducting a research on behavior of stocks in stock market. The main aim of the study is to find out the relationship between blue-chip automobile company’s and CNX AUTO and to suggest the investors about the price movements of blue-chip stocks. 1.5. SCOPE OF THE STUDY  The study is related to technical analysis to predict the future price movement of the stocks.  The analysis has been done on Blue chip four wheeler Automobile companies of Auto Nifty.  This analysis is directed towards the use of different tools of Technical analysis which help the investor to identify and decide when to buy or sell.  This study will help the investors to identify the strength of the Blue chip four wheeler Automobile Company's stocks.  This study will also help the investors to identify the overbought and oversold condition of selected Automobile company's stocks. 1.6. RESEARCH METHODOLOGY 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. 1.6.1. 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.
  4. 4. 4 1.6.2. 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. 1.7.3. TOOLS FOR ANALYSIS The following are the tools have been used in this research  Correlation  RSI (Relative Strength Index)  Beta CORRELATION In statistics, the Pearson product -moment correlation coefficient (r) is a common measure of the correlation between two variables X and Y. When measured in a population the Pearson Product Moment correlation is designated by the Greek letter rho (?). When computed in a sample, it is designated by the letter "r" and is sometimes called "Pearson's r." Pearson's correlation reflects the degree of linear relationship between two variables. It ranges from +1 to -1. A correlation of +1 means that there is a perfect positive linear relationship between variables. A correlation of - 1 means that there is a perfect negative linear relationship between variables. A correlation of 0 means there is no linear relationship between the two variables. Correlations are rarely if ever 0, 1, or -1. If you get a certain outcome it could indicate whether correlations were negative or positive. The quantity r, called the linear correlation coefficient, measures the strength and the direction of a linear relationship between two variables. The linear correlation coefficient is sometimes
  5. 5. 5 referred to as the Pearson product moment correlation coefficient in honor of its developer Karl Pearson. The mathematical formula for computing r is: Co-efficient of correlation r = RELATIVE STRENGTH INDEX (RSI): Calculation:  RS = Average Gain / Average Loss  To simplify the calculation explanation, RSI has been broken down into its basic components:  RS, Average Gain and Average Loss. This RSI calculation is based on 14 periods, which is the default suggested by Wilder in his book. Losses are expressed as positive values, not negative values.  The very first calculations for average gain and average loss are simple 14 period averages.  First Average Gain = Sum of Gains over the past 14 periods / 14.  First Average Loss = Sum of Losses over the past 14 periods / 14  The second, and subsequent, calculations are based on the prior averages and the current gain loss:  Average Gain = [(previous Average Gain) x 13 + current Gain] / 14.  Average Loss = [(Previous Average Loss) X 13 + Current Loss] / 14.  The broad rule is the RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI
  6. 6. 6 approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued. RSI values above 70 are considered to denote overbought condition and values below 30 are considered to denote oversold condition. When the RSI has crossed the 30 line from below to above and is rising, a buying opportunity is indicated. When it has crossed 70 line from above to below and is falling, a sell signal is indicated. BETA A measure of the volatility,or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.. Also known as "beta coefficient" Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than market. The beta calculated the following formula : 1.7. PERIOD OF THE STUDY This study was done for the period from February 1st to April 30th. 1.8. AREA OF THE STUDY The study has been done in Future Investments, Tuticorin. A channel partner of ICICI securities, in the field of finance.
  7. 7. 7 1.9. LIMITATIONS OF THE STUDY  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. 1.10. CHAPTER SCHEME Chapter I It covers the introduction about the topic, on technical analysis, the problem statement, objectives, significance, scope, the research design, methods and tools used, sampling design, period of the study, area of the study and limitations. Chapter II It covers the literature review from the journals, books and reports. Chapter III It covers Industry and company profile and other criteria holding to research methods. Chapter IV It covers the technical analysis and interpretation of data with tables and charts. Chapter V It covers the summary of findings, suggestions and conclusions regarding the analysis of Blue-chip Company’s on auto nifty to investors and employees.
  8. 8. 8 CHAPTER-II REVIEW OF LITERATURE Review of Literature According to Achelis "Technical analysis is the process of analyzing a security's historical prices in an effort to determine probable future prices" According to Edwards, Magee and Bassetti "It refers to the study of the action of the market itself as opposed to the study of the goods in which the market deals. Technical Analysis is the science of recording, usually in graphic form, the actual history of trading (price changes, volume of transaction, etc.) in a certain stock or in "the Averages" and then deducing from that pictured history the probable future trend" According to Murphy "Technical analysis is the study of market action, primarily through the use of Figures, for the purpose of forecasting future price trends. The term "market action" includes the three principal sources of information available to the technician-price, volume, and open interest." According to Ping "The art of technical analysis, for it is an art, is to identify a trend reversal at a relatively early stage and ride on that trend until the weight of the evidence shows or proves that the trend has reversed. Therefore, technical analysis is based on the assumption that people will continue to make the same mistakes they have made in the past." According to Cory Janssen, Chad Langager and Casey Murphy "Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysis do not attempt to measure a security's intrinsic value, but instead use Figures and others tools to identify patterns that can suggest the buy and sell of the stocks. Fernando Fernandez-Rodriguez (1999) "Technical Analysis in the Madrid Stock Exchange" The researcher assessed whether some simple forms of technical analysis can predict stock price movement in the Madrid stock exchange, covering
  9. 9. 9 thirty-one-year period from Jan 1966 –Oct 1997.the results provide strong support for profitability of those technical trading rules. By making use of bootstrap techniques the author shows the returns obta ined from these trading rules are not consistent with several null models frequently used in finance. Rajesh, (2008) "A study on Technical Analysis to guide the investors for forecasting future price from their investment from these scrip's in Religare Enterprises Ltd" The main purpose of the study is how to analysis and guide the investor for receiving benefits of investment from their scrip's. The analysis has been done through RSI (Relative Strength Index), MFI (Money Flow Index), Moving Averages (50days & 200days) on ten selected stocks. The project period was 4months Period of the Study: 01-Mar-2007 to 31-Mar-2008. It will give knowledge, where the investors going to invest. The study also protects investor's investment from poorly performing company. The study concludes that Technical analysis tools are used to the investor to get knowledge about the future movement of scrip's; the technical analysis is not understood and used in a single day. Investors get benefits from the technical analysis were used to develop the market share and enjoy the project benefit. Hemanth CR Patna (2010) "A study of Technical analysis in different sectors stocks at Kotak Securities Limited" The study is related to technical analysis to predict the future behaviour of the stocks. The analysis has been done on 5 selected stocks of NIFTY in order to gain the practical knowledge of technical analysis. This research helps the investor to know how Figuring techniques are useful to take buy or sell decisions According to RSI indications, it is better to take long position when RSI line touches or goes near to oversold market condition i.e., near or less than 30 level. On the other hand, It is better to take short position when RSI line touches or goes near to overbought market co ndition i.e., near or more then 70 level. Secondly, according to moving averages indications it is better to take long position when there is bullish
  10. 10. 10 divergence. On the other hand 't is better to take short position when there{ is bearish divergence. Paul Abbondante (2010) "Trading Volume and Stock Indices: A Test of Technical Analysis" its emphasis on trading volume has been used to analyze movements in individual stock prices and make investment recommendations to either buy or sell that stock. Little attention has been paid to investigating the relationship between trading volume and various stock indices. Approach: Since stock indices track overall stock market movements, trends in trading volume could be used to forecast future stock market trends. Instead of focusing only on individual stocks, this study will examine movements in major stock markets as a whole. Regression analysis was used to investigate the relationship between trading volume and five popular stock indices using daily data from Janu ary, 2000 to June. 2010. A lag of 5 days was used because this represents the prior week of trading volume. Narendra N. Patel (2010) "Trading through Technical Analysis" The objective of this research is to find out appropriate time to buy and sell securities based on selected indicator and oscillator and understanding the technical analysis theories and methods to analyze Figures of the 5 companies using technical analysis. The analysis has done through major indicators MACD (Moving Average Convergence and divergence), RSI (Relative Strength Index) to help suggest investment decision by suggesting buying and selling signals. Secondary data has been collected for this research and the period of study was one year (2009-10). Descriptive research design has been used for helps to find out (explore) meaning out of the secondary data. From this research, the researcher found that it is really a nice approach to estimate the future. It really helps to catch the small moves and gives the opportunity to investor to get returns in the small and long run also. Balaji (2010) "Technical Analysis of Cement Sector in India" The purpose of this study is helps to predict or forecast the short, intermediate & long term price movements and also helps to know when to buy and sell the stock by analyzing technical
  11. 11. 11 indicators. And helps to measure to the rate of change between the current price and price in past and to identify overbought& oversold region. The art of technical analysis for it is an art is to identify trend changes at an early stage and to maintain an investment an investment posture until the weight of the evidence indicates that the trend has been reversed. Mahesh Giri (2011) "A Study on Technical Analysis With Reference to Technical Indicators in Capital Market" The objective of this study understand the concept of Technical analysis, to know about various indicators and tools used in technical analysis, to study how the indicators help to predict the future of a stock, to generate long and short positions using the indicators (RSI, MFI, SMA). This analysis concludes that the various efforts carried out by stock market experts to predict the market's movements. Such a tool is Technical analysis which helps the investors to identify the right stocks at right time with right amounts. Yuanyuan Zhao (2011) "Effectiveness of Technical Indicators in Singapore Stock Market" in this paper author evaluates the effectiveness (profitability) of technical analysis, in particular the use of indicators in combinations, in the Singapore context. He benchmarking the annualized percentage returns on two groups of SGX-listed companies against buy-and¬hold for a period of two years, as well as comparing between groups. The focus of this study is to find out whether the use of technical indicators, especially in combinations, is able to generate significantly higher returns than buy- and-hold. As a result, he found out that technical analysis does not generate significantly superior results than buy-and-hold strategy with respect to Singapore securities market. Sanket Dhanorkar (2011) "How to identify momentum stocks for quick short term gains" investing involves buying and selling stocks that are likely to witness a substantial jump in prices in a short span of time. In other words, the investor buys stocks that a re about to soar and sells them at a much higher price. As a momentum investor, one seeks to identify stocks that have the potential to yield spectacular returns within a short to medium holding period, say, 1 -6 months. When the market rallies, momentum stocks are usually better placed to lead the market and touch new highs.
  12. 12. 12 For those keen on making money from this strategy, there are several indicators or tools that can help identify momentum stocks. They are ROC (Rate of Change), Volume, MACD Hitesh Sheth, head, technical research, Prabhudas Lilladher, says, "Momentum investing can be rewarding if you can master the use of the indicators available. The strategy can work both ways—you can ride the bull markets as well as benefit from market declines. Krishnadev (2011) The project "study on stock movement using technical analysis" was undertaken with a objective of how to make efficient buying and selling decisions in stock markets. A study was conducted how effectively technical analysis can be used for making trading and investment decisions. Some of the import technical indicators like moving averages, MFI, RSI were covered in this study. By comparing the indicator Figure with the price movement future stock market movement can be identified.From this analysis it is revealed that an analysis of Figures and indicators are enough to arriving at an accurate selling or buying decisions. A conjunction of all this is required for making accurate decisions. So technical analyst not only required knowledge but also good skills for perfection. Cagan Deep Sharma (2011) "How useful is technical analysis in predicting future stock trends" The study builds on the literature already available on financial data of the companies in India. The study is conducted to test out the usefulness of the technical analysis in predicting the future market trends therefore the author have taken the 15 companies for the month of January. The author have taken their current price on the recommended day and the target price given by the analysts on the recommended day and then further taken the highest and the lowest months in the following two months that is January and February and see the recommendations given by the analysts to the investors to buy or to sell the securities is actually comes out to be true or not. The researcher has used mean, regression and t- tailed test to prove the results.
  13. 13. 13 CHAPTER-III INDUSTRY PROFILE AND COMPANY PROFILE 3.1. INDUSTRY PROFILE AN OVERVIEW OF THE INDIAN SECURITIES MARKET Securities market provides a channel for allocation of savings to those who have a productive need for them. The securities market has two interdependent and inseparable segments: (i) Primary market (ii) secondary market. Primary market Primary market provides opportunity to issuers of securities; government as well as corporate, to raise resources to meet their requirements of investment and/or discharge some obligation. They may issue the securities at face value, or at a discount/premium and these securities 15may take a variety of forms such as equity, debt etc. They may issue the securities in domestic market and/or international market. The primary market issuance is done either through public issues or private placement. A public issue does not limit any entity in investing while in private placement, the issuance is done to select people. In terms of the Companies Act, 1956, an issue becomes public if i t results in allotment to more than 50 persons. The secondary market The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risks and returns. Once new securities are issued in the primary market, they are traded in the stock (secondary) market. The secondary market operates through two mediums, namely, the over-the- counter (OTC) market and the exchange traded market. The OTC markets are informal markets where trades are negotiated. Most of the trades in government securities take place in the OTC market. All the spot trades where securities are traded for immediate delivery and payment occur in the OTC market.
  14. 14. 14 Key indicators of securities market Index An Index is used to give information about the price movements of products in the financial, commodities or any other markets. Stock market indices are meant to capture the overall behavior of the equity markets. The stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. The bluechip index of NSE is CNX Nifty. Market Capitalization Market capitalization is defined as value of all listed shares on the country’s exchanges. It is computed on a daily basis. Market capitalization of a particular company on a particular day can be computed as product of the number of shares outstanding and the closing price of the share. Here the number of outstanding shares refers to the issue size of the stock. Market Capitalization = Closing price of share * Number of outstanding shares Similarly, to compute the market capitalization of all companies listed on an Exchange we aggregate the market capitalization of all the companies traded on the Exchange. Market Capitalization Ratio Turnover ratio = market capitalization of stocks GDP It is used as a measure of stock market size.
  15. 15. 15 Turnover Turnover for a share is computed by multiplying the traded quantity with the price at which the trade takes place. Similarly, to compute the turnover of the companies listed at the Exchange we aggregate the traded value of all the companies traded on the Exchange. Turnover Ratio The turnover ratio is defined as the total value of shares traded on a country’s stock Exchange for a particular period divided by market capitalization at the end of the period. It is used as a measure of trading activity or liquidity in the stock markets. Turnover Ratio = Turnover at Exchange / Market Capitalization at Exchange SEBI (The Securities and Exchange Board of India) It was officially established by The Government of India in the year 1988 and given statutory powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament . SEBI has its Headquarters at the business district of Bandra Kurla Complex in Mumbai, and has Northern,Eastern, Southern and Western Regional Offices in NewDelhi, Kolkata, Chennai and Ahmadabad respectively.Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947. Initially SEBI was a non statutory body without any statutory power. However in the year of 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992 . In April, 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India. The SEBI is managed by its members, which consists of following: a) The chairman who is nominated by Union Government of India. b) Two members, i.e. Officers from Union Finance Ministry. c) One member from The Reserve Bank of India. d) The remaining 5 members are nominated by Union Government of India, out of them at least 3 shall be whole-time members.
  16. 16. 16 The office of SEBI is situated at SEBI Bhavan, Bandra Kurla Complex, Bandra East, Mumbai-400051, with its regional offices at Kolkata, Delhi, Chennai & Ahmadabad. It has recently opened local offices at Jaipur and Bangalore and is planning to open offices at Guwahati, Bhubaneswar, Patna, Kochi and Chandigarh in Financial Year 2013 - 2014. FUNCTIONS AND RESPONSIBILITIES The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental there to" .SEBI has to be responsive to the needs of three groups, which constitute the market:  The issuers of securities  The investors  The market intermediaries. SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal which is a three- member tribunal and is presently headed by Mr. Justice J P Devadhar, a former judge of the Bombay High Court. A second appeal lies directly to the Supreme Court. Powers For the discharge of its functions efficiently, SEBI has been vested with the following powers: 1. To approve by−laws of stock exchanges. 2. To require the stock exchange to amend their by−laws.
  17. 17. 17 3. Inspect the books of accounts and call for periodical returns from recognized stock exchanges. 4. Inspect the books of accounts of financial intermediaries. 5. Compel certain companies to list their shares in one or more stock exchanges. 6. Levy fees and other charges on the intermediaries for performing its functions. 7. Grant license to any person for the purpose of dealing in certain areas. 8. Delegate powers exercisable by it. 9. Prosecute and judge directly the violation of certain provisions of the companies Act. 10. Power to impose monetary penalties. SEBI Committees 1. Technical Advisory Committee 2. Committee for review of structure of market infrastructure institutions 3. Members of the Advisory Committee for the SEBI Investor Protection and 4. Education Fund 5. Takeover Regulations Advisory Committee 6. Primary Market Advisory Committee (PMAC) 7. Secondary Market Advisory Committee (SMAC) 8. Mutual Fund Advisory Committee 9. Corporate Bonds Securitization Advisory Committee 10. Takeover Panel 11. SEBI Committee on Disclosures and Accounting Standards (SCODA) 12. High Powered Advisory Committee on consent orders and compounding of 13. Offences 14. Derivatives Market Review Committee 15. Committee on Infrastructure Funds 16. Regulation over Financial Terms of Various Authorities.
  18. 18. 18 NSE (NATIONAL STOCK EXCHANGE OF INDIA) The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to -provide a modem, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integr ity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state- ofart information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems,emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. Purpose, Vision & Values Purpose Committed to improve the financial well-being of people. Vision To continue to be a leader, establish global presence; facilitate the financial well- being of people. Values NSE is committed to the following core values:
  19. 19. 19  Integrity  Customer focused culture  Trust, respect and care for the individual  Passion for excellence  Teamwork History & Milestones NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax - paying company unlike other stock exchanges in the country. March 22, 2012 - NSE and India Post start Unique Financial Inclusion Initiative "Jagruti" March 14, 2012 — NSE launches "EMERGE" SME Platform. December 2011- NSCCL Rated "CCR AAA" for fourth consecutive year - 28th Dec 2011 September 2011- Launch of derivatives on CNX PSE and CNX Infrastructure Indices August 2011- Launch of derivatives on Global Indices July, 2011- Commencement of trading in 91 Day GOI Treasury bill - Futures January, 2011- NSE receives "Financial Inclusion" Award. PRODUCTS AND PARTICIPANTS Products Financial markets facilitate reallocation of savings from savers to entrepreneurs. Savings are linked to investments by a variety of intermediaries through a range of complex financial products called "Securities". Under the Securities Contracts (Regulation) Act [SC(R) A], 1956, "securities" include (i) shares, bonds, scrips, stocks or other marketable securities of like nature in or of any incorporate company or body corporate, (ii) government securities, (iii) derivatives of securities, (iv) units of collective investment scheme, (v)interest and rights in securities, and security receipt or any other instruments so declared by the central government. Broadly, securities can be of three types — equities, debt securities and derivatives. Participants The securities market has essentially three categories of participants
  20. 20. 20 i) The investors, ii) The issuers, iii) The intermediaries. These participants are regulated by the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), Ministry of Corporate Affairs (MCA) and the Department of Economic Affairs (DEA) of the Ministry of Finance. Market Segments and their Products The Exchange (NSE) provides trading in four different segments — wholesale Debt Market, Capital Market, Futures and Options and Currency Derivatives Segment. 1. Wholesale Debt Market (WDM) Segment: This segment at NSE commenced its operations in June 1994. It provides the trading platform for wide range of debt securities which includes State and Central Government securities, T-Bills, PSU Bonds, Corporate debenture, Commercial Papers, Certificate of Deposits etc. 2. Capital Market (CM) Segment: This segment at NSE commenced its operations in November 1994. It offers a fully automated screen based trading system, known as the National Exchange for Automated Trading (NEAT) system. Various types of securities e.g. equity shares, warrants, debentures etc. are traded on this system. 3. Futures & Options (F&O) Segment: This segment provides trading in derivatives instruments like index futures, index options, stock options, and stock futures, and commenced its operations at NSE in June 2000. 4. Currency Derivatives Segment (CDS) Segment: This segment at NSE commenced its operations on August 29, 2008, with the launch of currency futures trading in US Dollar-Indian Rupee (USD-INR). Trading in other currency pairs like Euro -INR, Pound Sterling¬INR and Japanese Yen-INR was further made available for trading in February 2010. `Interest rate futures' was another product made available for trading on this segment with effect from August 31, 2009.
  21. 21. 21 BLUECHIP STOCKS A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse an economic condition, which helps to contribute to their long record of stable and reliable growth. The name "blue chip" came about because in the game of poker the blue chips have the highest value. Blue chip stocks are seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. Investors may buy blue chip companies to provide steady growth in their portfolios. The stock price of a blue chip usually closely follows the S&P 500. Risk in the Stock Market:  Stock prices keep fluctuating over a wide range unlike the bank deposits or government bonds.  The efficient market hypothesis shows the effect of fundamental factors in changing the price of the stock market.  The Efficient Market Hypothesis shows that all price movements are random whereas there are plenty of studies that reflect the fact that there is a specific trend in the stock market prices over a period of time.  Research has shown that there are certain psychological factors that shape the stock market prices.  Sometimes the market behaves illogically to any economic news.  The stock market prices can be diverted in any direction in response to press releases, rumours and mass panic.  The stock market prices are also subject to speculation. In the short run the stock market prices may be very volatile due to the occurrences of the fast market changing events.
  22. 22. 22 Indian Capital Market: The Capital Market deals in the long-term (for time-periods more than one year) capital Securities (Equity or Debt) offered by the private business companies and also governmental undertakings of India. Significance of Capital Markets: A well-functioning stock market may help the development process in an economy through the following channels: 1. Growth of savings, 2. Efficient allocation of investment resources, 3. Better utilization of the existing resources. In market economy like India, financial market institutions provide the avenue by which long-term savings are mobilized and channeled into investments. Confidence of the investors in the market is imperative for the growth and development of the market. For any stock market, the market Indices is the barometer of its performance and reflects the prevailing sentiments of the entire economy. Stock index is created to provide investors with the information regarding the average share price in the stock market. The ups and downs in the index represent the movement of the equity market. These indices need to represent the return obtained by typical portfolios in the country. The nature of capital market:  It has two segments  It deals in long-term securities  It performs trade-off function  It creates dispersion in business ownership  It helps in capital formation  It helps in creating liquidity
  23. 23. 23 Capital market investments in the stock market:  The stock market is basically the trading ground capital market investment in the following: i) Company's stocks ii) Derivatives iii) Other securities  The capital market investments in the stock market take place by: i) Small individual stock investors ii) Large hedge fund traders.  The capital market investments can occur either in: i) The physical market by a method known as the open outcry. ii) Trading can also occur in the virtual exchange where trading is done in the computer network. The investors in the stock market have the liberty to buy or sell the stock that they are holding at their own discretion unlike the case of government securities, bonds or real estate The Capital Market deals in the long-term (for time-periods more than one year) capital Securities (Equity or Debt) offered by the private business companies and also governmental undertakings of India. All New Stocks or Bonds presented by growth oriented business companies of diverse sectors are sold to the investors in the Primary Capital Market through Underwriting. The further trading of these capital market securities and bonds takes place in the Secondary Capital Market, commonly with the help of Stock Exchanges. The Securities and Exchange Board of India (SEBI) governs and regulates the Indian capital market. The capital market of India is among the top ten biggest capital markets of the world, and provides a variety of capital market instruments. There are 25 well- organized Stock Markets in India among which the Bombay Stock Exchange (BSE) and the National Stock Exchange hold the dominant positions. Indian Economy ranks among the top five largest economies of the world.
  24. 24. 24 About Index A stock market index is a measure of the relative value of a group of stocks in numerical terms. As the stocks within an index change value, the index value changes. An index is important to measure the performance of investments against a relevant market index. An Index is used to give information about the price movements of products in the financial, commodities or any other markets. Financial indexes are constructed to measure price movements of stocks, bonds, T-bills and other forms of investments. Stock market indexes are meant to capture the overall behavior of equity markets. A stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. An Index is calculated with reference to a base period and a base index value. S&P CNX NIFTY (NIFTY - National Stock Exchange's Fifty) The Nifty is an indicator of all the major companies of the NSE. The CNX Nifty covers 22 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. The CNX Nifty stocks represent about 67.27% of the free float market capitalization of the stocks listed at National Stock Exchange (NSE) as on September 30, 2012. The CNX Nifty index is a free float market capitalization weighted index. The index was initially calculated on full market capitalization methodology. From June 26, 2009, the computation was changed to free float methodology. The base period for the CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion. The CNX Nifty Index was developed by Aja y Shah and Susan Thomas..
  25. 25. 25 CNX AUTO The CNX Auto Index is designed to reflect the behavior and performance of the Automobiles segment of the financial market. The CNX Auto Index comprises 15 tradable, exchange listed companies. The index represents auto related sectors like Automobiles 4 wheelers, Automobiles 2 & 3 wheelers, Auto Ancillaries and Tyres. CNX Auto Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. CNX Auto Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETF’s and structured products. Eligibility Criteria for Selection of Constituent Stocks  Companies must rank within the top 500 companies ranked by average free-float market capitalisation and aggregate turnover for the last six months.  Companies should form a part of the Automobiles sector.  The company’s trading frequency should be at least 90% in the last six months.  The company should have reported a positive net worth.  The company should have an investable weight factor (IWF) of at least 10%.  The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.  Final selection of 15 companies shall be done based on the free-float market capitalization of the companies Index Govenance: A professional team at IISL manages CNX Auto Index. There is a three-tier governance structure comprising the Board of Directors of IISL, the Index Policy Committee, and the Index Maintenance Sub-Committee.
  26. 26. 26 List of companies in CNX AUTO Top 10 constituents by weightage Company’s Name Weight (%) Tata Motors Ltd. 24.89 Mahindra & Mahindra Ltd. 15.91 Maruti Suzuki India Ltd. 12.31 Hero MotoCorp Ltd. 10.42 Bajaj Auto Ltd. 9.12 Bosch Ltd. 4.92 Eicher Motors Ltd. 4.18 Motherson Sumi Systems Ltd. 3.88 Bharat Forge Ltd. 3.27 MRF Ltd. 2.6 Company Name Industry Symbol Series ISIN Code Amara Raja Batteries Ltd. Automobile AMARAJABAT EQ INE885A01032 Amtek Auto Ltd. Automobile AMTEKAUTO EQ INE130C01021 Apollo Tyres Ltd. Automobile APOLLOTYRE EQ INE438A01022 Ashok Leyland Ltd. Automobile ASHOKLEY EQ INE208A01029 Bajaj Auto Ltd. Automobile BAJAJ-AUTO EQ INE917I01010 Bharat Forge Ltd. Industrial manufacturing BHARATFORG EQ INE465A01025 Bosch Ltd. Automobile BOSCHLTD EQ INE323A01026 Eicher Motors Ltd. Automobile EICHERMOT EQ INE066A01013 Exide Industries Ltd. Automobile EXIDEIND EQ INE302A01020 Hero MotoCorp Ltd. Automobile HEROMOTOCO EQ INE158A01026 MRF Ltd. Automobile MRF EQ INE883A01011 Mahindra & Mahindra Ltd. Automobile M&M EQ INE101A01026 Maruti Suzuki India Ltd. Automobile MARUTI EQ INE585B01010 Motherson Sumi Systems Ltd. Automobile MOTHERSUMI EQ INE775A01035 Tata Motors Ltd. Automobile TATAMOTORS EQ INE155A01022
  27. 27. 27 3.2. 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 and 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. The Company has also acquired membership of the currency derivatives segment with NSE, BSE, United Stock Exchange (USE) and Multi Commodity Exchange Stock Exchange (MCX-SX). It is Depositary Participant with Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL). The Company also provides Merchant Banking facilities and Market Maker Services. 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. 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.
  28. 28. 28  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.  Strive to be a reliable source of value-edit products and services and constantly guide the individuals and institutions in making judicious choices of same.  Strive to keep all stakeholders (shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfy. PRODUCT AND SERVICE PROFILE Company is a service oriented company. Service rendered by Future investments ltd, Tuticorin  Share Trading  Mutual Fund  PAN / TDS / TAN  Fixed Deposit  Commodities & Currency SHARE TRADING SHARE Definition: The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale so as to raise capital for the company.
  29. 29. 29 Trade Time Preopen - 9.00 a.m. to 9.07 a.m. (Monday to Friday) Market Time - 9.15 a.m. to 3.30 p.m. (Monday to Friday) After market order - 5.30 p.m. to 8.00 a.m. (Monday to Friday) Buying and selling of shares in both BSE and NSE mostly company is preferring nifty to their Clients. Trading Procedure  Saving Account  Trading Account  Demat Account Saving account Trading account Demat account Trading account
  30. 30. 30 DEMAT ACCOUNT:- Demat account is very much similar to saving current account of a bank, with the only difference being that it deals with securities in electronics form and not money .’’A demat account is just polite farewell to paperwork and a warm welcome to greater efficiency and for that matter, security. A Dmat account a unique, capital-market- investor-oriented Benefits of the Demat account:-  No loss of share certificates.  No delay in transfer of shares.  No possibility of forgery on various document dealing to bad deliveries, legal disputes.  No possibility of theft of share certificates.  No prevalence of fake certificates in the markets  No mutilation or loss of share certificates in transit.  You can also receive your bonuses and rights into your depository account as a direct credit, thus eliminating risk of loss in transit.  You can also expect a lower interest charge for loan taken against demat shares as compared to interest for loan against physical shares .this could result in a saving of about 0.25% to 1.5% some banks have already announced this .  RBI has also reduce the minimum margin to 25% for loans dematerialized securities as against 50% for loans against physical securities Mutual Funds: An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus
  31. 31. 31 ICICI Securities ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfil all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution. With a full-service portfolio, a roster of blue-chip clients and performance second to none, we have a formidable reputation within the industry. Today ICICI Securities is among the leading Financial Institutions both on the institutional as well as retail side. Headquartered in Mumbai, I-Sec operates out of several locations in India. ICICI Securities Inc., the step down wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can engage in permitted activities in the U.S. securities markets. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to US investors. ICICI Securities Ltd is an integrated securities firm offering a wide range of services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the Nation' for its diversified set of client that include corporates, financial institutions, high net- worth individuals and retail investors. Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India and global offices in Singapore and New York. ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a member of the Financial Industry Regulatory Authority (FINRA) / Securities Investors
  32. 32. 32 Protection Corporation (SIPC). ICICI Securities Inc. activities include Dealing in Securities and Corporate Advisory Services in the United States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS) and operates a branch office in Singapore Rewards and recognition  Franchisor of the year award 2014  ICICI Securities won the Award for Outstanding Social Impacts at the Global Sustainability Leadership Awards 2014 These awards recognize institutions for their contribution to the society in their domain as well as businesses that deliver products and services in ways that takes full account of their responsibility towards the communities they touch.  Ranked 2 at the THOMSON REUTERS STARMINE ANALYST AWARDS 2014 - TOP BROKERS  "MOST ADMIRED SERVICE PROVIDER IN FINANCIAL SECTOR" at the BANKING FINANCIAL SERVICES & INSURANCE AWARDS 2014 presented by ABP News.  ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' ninth time in a row in 2013. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009, 2010, 2011, and 2012.  ICICIdirect.com won the Mobbys award for the "Best Mobile application in Mobile Trading".  ICICI Securities Business Partners has been conferred the Franchise India Awards 2013, for being the 'Franchisor of the year' in the Financial Services category.  ICICIdirect.com, won the award for Innovation at Banking Frontiers Finnoviti Awards 2013. The award was conferred on ICICIDirect' for its `Valid Till Cancel Order' (VTC ) facility, which was awarded amongst the top 3 innovations in BFSI industry by 'Peer Voting'.  ICICI Securities won the Outlook Smart use Technology eRetailer of the year 2013 conferred by FIHL in association with HomeShop18.com.  ICICIdirect.com won the 'Stock Broker of the Year' award at the Money Today FPCIL Awards 2012  ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the Year' at the Franchise Awards 2012 for the fourth time in a row.
  33. 33. 33  ICICI Securities won the 'BSE IPF D&B Equity Broking Awards 2012' under two categories:  Best Equity Broking House - Cash Segment  Largest E-Broking House  ICICI Securities won the Chief Learning Officer Award from World HRD Congress for Innovation in Learning category.  ICICI Securities won the Grand Jury Award for 'Commendable performance by National Financial Advisor (Retail) - Online' at the CNBC TV 18 - Financial Advisor Awards 2011. The awards recognises India's best Financial Advisors.  ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the Year at the Franchise Awards 2011', third time in a row.  ICICI Securities was the winner of the'Smart use Technology eRetailer of the year' 2012 award conferred by Franchise India in association with UTV Bloomberg for the first time.  ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' seventh time in a row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009 and 2010.  ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of the Year 2011' for the third consecutive year.  Anup Bagchi, MD & CEO has been honoured with the Zee Business 'Industry Newsmaker Award 2010' for his tremendous and unmatched contribution in the field of Finance  Pankaj Pandey, Head- Research - ICICIdirect has won the Zee Business Best Market Analyst 2010 award in the Equities Fundamental Category  CMO Asia Awards for Excellence in Branding and Marketing 2010:  Brand Leadership Award (overall)  'Campaign of the Year' for the Trade Racer Campaign  Brand Excellence in Banking and Financial Services for the store format  Award for Brand Excellence in the Internet Business  Franchisor of the year award 2009  Retail concept of the year awards 2009  Frost and Sullivan 2009 Award for Customer Service Leadership
  34. 34. 34 PROFILE OF THE BLUECHIP FOUR WHEELER AUTOMOBILE COMPANIES TATA MOTORS LIMITED Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning produ cts in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer. The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 6,600 touch points. Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia . Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle
  35. 35. 35 exports out of South Korea are from Tata Daewoo. In 2006, Tata Motors formed a 51:49 joint venture with the Brazil-based, Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India - the plant is located in Dharwad. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand, and entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north of Pretoria. The plant can assemble, semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh, Ukra ine, and Senegal. The foundation of the company's growth over the last 68 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer -desired offerings through leading edge R&D. With over 4,500 engineers, scientists and technicians the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Italy, Spain, and the UK. It was Tata Motors, which launched the first indigenously developed Light Commercial Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In 2009, the co mpany launched its globally benchmarked Prima range of trucks and in 2012 the Ultra range of international standard light commercial vehicles. In their power, speed,
  36. 36. 36 carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998, the Tata Indica, India's first fully indigenous passenger car. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano. The Tata Nano has been subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal and Sri Lanka. A development, which signifies a first for the global automobile industry, the Nano brings the joy of a car within the reach of thousands of families. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment -friendly technologies in manufacturing processes, significantly enhancing resource conservation. Through its subsidiaries, the company is engaged in engineering and automotive solutions, automotive vehicle components manufacturing and supply chain activities, vehicle financing, and machine tools and factory automation solutions. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas - employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, the company's intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future
  37. 37. 37 MAHINDRA& MAHINDRA LIMITED (M&M) Indian multinational automobile manufacturing corporation headquartered in Mumbai. It is one of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world. It is a part of Mahindra Group, an Indian conglomerate. It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study 2014. It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011. Today the company operations span 18 key industries that form the foundations of every modern economy. Aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defence, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logist ics, real estate, retail, two wheelers. Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra . After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan. The company changed its name to Mahindra & Mahindra in 1948. It eventually saw business opportunity in expanding into manufacturing and selling larger MUVs, starting with assembly under licence of the Willys Jeep in India. Soon established as the Jeep manufacturers of India, the company later commenced manufacturing light commercial vehicles (LCVs) and agricultural tractors. Today, Mahindra & Mahindra is a key player in the utility vehicle manufacturing and branding sectors in the Indian automobile industry with its flagship UV Scorpio and uses India's growing global market presence in both the automotive and farming industries to push its products in other countries.
  38. 38. 38 The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency. A USD 16.5 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013. Awards and recognition  Bombay Chamber Good Corporate Citizen Award for 2006-07.  Business world FICCI-SEDF Corporate Social Responsibility Awards  The Brand Trust Report ranked M&M as India's 10th Most Trusted Brand in its India Study 2014 survey (from 20,000 brands analyzed).  Its Farm Equipment division received the Deming Prize in 2003.  Its Farm Equipment division received the Japan Quality Medal in 2007.  The US based Reputation Institute ranked M&M amongst the top Ten Indian companies in its 'Global 200: The World's Best Corporate Reputations' list for 2008.  Bluebytes News rated M&M as India's second Most Reputed Car Company (reported in their study titled Reputation Benchmark Study) conducted for the Auto (Cars) Sector in 2013.
  39. 39. 39 MARUTI SUZUKI INDIA LIMITED Maruti Suzuki India Limited(msil) commonly referred to as Maruti and formerly known as MarutiUdyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger car market. Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback Ritz, A-Star, Swift, WagonR, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertigaand Sports Utility vehicle Grand Vitara. The company's headquarters are on Nelson Mandela Road, New Delhi. In February 2012, the company sold its ten millionth vehicle in India. Maruti's history begins in 1970, when a private limited company named 'Maruti technical services private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of this company was to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated under the Companies Act and Sanjay Gandhi became its first managing director. After a series of scandals, "Maruti Limited" goes into liquidation in 1977. This is followed by a commission of inquiry headed by Justice A. C. Gupta, which submits its report in 1978. On 23 June 1980 Sanjay Gandhi dies when a private test plane he was flying crashes. A year after his death, and at the behest of Indira Gandhi , the Indian Central government salvages Maruti Limited and starts looking for an active collaborator for a new company: MarutiUdyog Ltd being incorporated in the same year.
  40. 40. 40 Rewards and recognition The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012 among the brands researched in India. Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which launched in April 2012. Achievements/ recognition:  The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9th time in a row.  Maruti Suzuki wins 'Golden Peacock Eco-Innovation Award'  Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India For Ninth Consecutive Year.  Maruti Suzuki becomes the first Indian car company to export half a million cars Other Accolades During 2009-10, the company, its products and services received reputed awards and accolades instituted by independent expert groups, media houses and research agencies. These Include  Rated as No. 1 in J D Power Sales Satisfaction Index  Hatchback of the year - Ritz by Autocar  Car of the year - Ritz by Business Motoring  Manufacturer of the year by CNBC Overdrive  Ranked third amongst global car companies in the World's Most Reputed Company Survey 2009  National Award for Excellence in Corporate Governance by ICSI
  41. 41. 41 CHAPTER IV DATA ANALYSIS AND INTERPRETATION INTRODUCTION Data Analysis Analysis of data in a general way involves a number of closely related operations which are performed with the purpose of summarizing the collected data and organizing those in such a manner that they answer the research. Interpretation Interpretation is the process of relating various bits of information to other existing information. Interpretation attempts to answer, “What relationship exists between the findings to the research objectives and hypothesis framed for the study in the beginning “ Correlation In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used in advanced portfolio management. Beta A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.. Also known as "beta coefficient" Relative Strength Index A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.
  42. 42. 42 TABLE 4.1 CORRELATION BETWEEN AUTO NIFTY AND MAHINDRA &MAHINDRA INDIA LTD STOCK JAN-DEC-2014 Date X (Auto Nifty close price) Y (M&M close price) (X-𝑿) (Y-𝒀) (X-𝑿)2 (Y-𝒀)2 (X-𝑿)(Y-𝒀) 31-Jan-14 5009.85 890.20 -1895.61 -287.83 3593330.95 82845.63 545611.37 28-Feb-14 5467.25 974.50 -1438.21 -203.53 2068443.21 41424.12 292717.34 31-Mar-14 5803.20 980.70 -1102.26 -197.33 1214973.43 38938.80 217507.72 30-Apr-14 5866.50 1074.20 -1038.96 -103.83 1079434.42 10780.50 107874.18 30-May-14 6385.10 1235.50 -520.36 57.47 270772.80 3302.90 -29905.43 30-Jun-14 6775.15 1147.20 -130.31 -30.83 16980.26 950.44 4017.30 31-Jul-14 6907.15 1201.65 1.69 23.62 2.86 557.94 39.96 28-Aug-14 7683.60 1407.20 778.14 229.17 605504.45 52519.27 178327.37 30-Sep-14 7899.35 1360.80 993.89 182.77 987820.65 33405.18 181654.41 31-Oct-14 8246.90 1306.20 1341.44 128.17 1799465.75 16427.76 171933.70 28-Nov-14 8540.25 1323.75 1634.79 145.72 2672543.79 21234.56 238223.20 31-Dec-14 8281.20 1234.45 1375.74 56.42 1892665.13 3183.31 77620.49 82865.50 14136.35 16201937.70 305570.41 1985621.61
  43. 43. 43 Where X = Auto Nifty Close price, Y = M&M Close price 𝑋 = ∑ 𝑋/𝑁 = 82865.50 / 12 = 6905.46 𝑌 = ∑ 𝑌/𝑁 = 14136.35 / 12 = 1178.02 𝜎𝑋2 = 1/N(X-𝑋)2 = 1/12 (16201937.70) = 1350161.47 𝜎𝑋 = √1350161.47 = 1161.96 𝜎𝑌2 = 1/N(Y-𝑌)2 = 1/12 (305570.41) = 25464.20 𝜎𝑌 = √25464.20 = 159.58 Co-efficient of correlation r = ∑(𝑋−𝑋) 𝑁𝜎𝑋𝜎𝑌 (𝑌−𝑌) = 1985621.61 12∗1161.96∗159.58 = 1985621.61 2225106.92 = 0.89. INTERPRETATION The value 0.89 lies between -1 and +1 and indicates a higher degree of positive correlation between Auto Nifty and Mahindra & Mahindra stocks. “There is a relationship between Auto Nifty and Mahindra & Mahindra stocks”.
  44. 44. 44 TABLE 4.2 TABLE SHOWS CORRELATION BETWEEN AUTO NIFTY AND MARUTI SUZUKI INDIA LTD STOCK JAN-DEC-2014 Date X (Auto Nifty close price) Y (Maruti suzuki close price) (X-𝑿) (Y-𝒀) (X-𝑿)2 (Y-𝒀)2 (X-𝑿)(Y-𝒀) 31-Jan-14 5009.85 1636.25 -1895.61 -881.73 3593330.95 777453.67 1671421.05 28-Feb-14 5467.25 1589 -1438.21 -928.98 2068443.21 863010.03 1336071.57 31-Mar-14 5803.20 1971.75 -1102.26 -546.23 1214973.43 298370.85 602090.24 30-Apr-14 5866.50 1923 -1038.96 -594.98 1079434.42 354005.17 618162.89 30-May-14 6385.10 2271.8 -520.36 -246.18 270772.80 60606.23 128103.55 30-Jun-14 6775.15 2439.35 -130.31 -78.63 16980.26 6183.20 10246.58 31-Jul-14 6907.15 2524.05 1.69 6.07 2.86 36.80 10.26 28-Aug-14 7683.60 2784.5 778.14 266.52 605504.45 71031.13 207387.72 30-Sep-14 7899.35 3062.85 993.89 544.87 987820.65 296879.68 541538.44 31-Oct-14 8246.90 3337.25 1341.44 819.27 1799465.75 671197.87 1098998.44 28-Nov-14 8540.25 3346.2 1634.79 828.22 2672543.79 685942.85 1353961.70 31-Dec-14 8281.20 3329.8 1375.74 811.82 1892665.13 659046.30 1116850.01 82865.50 30215.80 16201937.70 4743763.80 8684842.48
  45. 45. 45 Where X = Auto Nifty Close price, Y = Maruti suzuki Close price 𝑋 = ∑ 𝑋/𝑁 = 82865.50 / 12 = 6905.46 𝑌 = ∑ 𝑌/𝑁 = 30215.80 / 12 = 2517.98 𝜎𝑋2 = 1/N(X-𝑋)2 = 1/12 (16201937.70) = 1350161.47 𝜎𝑋 = √1350161.47 = 1161.96 𝜎𝑌2 = 1/N(Y-𝑌)2 = 1/12 (4743763.80) = 395313.65 𝜎𝑌 = √395313.65 = 628.74 Co-efficient of correlation r = ∑(𝑋−𝑋) 𝑁𝜎𝑋𝜎𝑌 (𝑌−𝑌) = 8684842. 12∗1161.96∗628.74 = 8684842 8766848.76 = 099. INTERPRETATION The value 0.99 lies between -1 and +1 and indicates a higher degree of positive correlation between Auto Nifty and Maruti suzuki stocks. “There is a relationship between Auto Nifty and Maruti suzuki stocks”
  46. 46. 46 TABLE 4.3 CORRELATION BETWEEN AUTO NIFTY AND TATA MOTORS INDIA LTD STOCK JAN-DEC-2014 Date X (Auto Nifty close price) Y (Tata motors close price) (X-𝑿) (Y-𝒀) (X-𝑿)2 (Y-𝒀)2 (X-𝑿)(Y-𝒀) 31-Jan-14 5009.85 349.55 -1895.61 -105.88 3593330.95 11209.52 200697.53 28-Feb-14 5467.25 416.95 -1438.21 -38.48 2068443.21 1480.33 55335.07 31-Mar-14 5803.20 398.65 -1102.26 -56.78 1214973.43 3223.40 62580.72 30-Apr-14 5866.50 414.75 -1038.96 -40.68 1079434.42 1654.46 42259.63 30-May-14 6385.10 415.05 -520.36 -40.38 270772.80 1630.14 21009.47 30-Jun-14 6775.15 431.3 -130.31 -24.13 16980.26 582.02 3143.69 31-Jul-14 6907.15 446.75 1.69 -8.68 2.86 75.26 -14.68 28-Aug-14 7683.60 525.05 778.14 69.62 605504.45 4847.64 54178.11 30-Sep-14 7899.35 502.15 993.89 46.73 987820.65 2183.23 46439.59 31-Oct-14 8246.90 535.85 1341.44 80.43 1799465.75 6468.18 107885.45 28-Nov-14 8540.25 533.5 1634.79 78.08 2672543.79 6095.71 127636.36 31-Dec-14 8281.20 495.55 1375.74 40.13 1892665.13 1610.02 55201.63 82865.50 5465.10 16201937.70 41059.88 776352.57
  47. 47. 47 Where X = Auto Nifty Close price, Y = M&M Close price 𝑋 = ∑ 𝑋/𝑁 = 82865.50 / 12 = 6905.46 𝑌 = ∑ 𝑌/𝑁 = 5465.10 / 12 = 455.42 𝜎𝑋2 = 1/N(X-𝑋)2 = 1/12 (16201937.70) = 1350161.47 𝜎𝑋 = √1350161.47 = 1161.96 𝜎𝑌2 = 1/N(Y-𝑌)2 = 1/12 (41059.88) = 3421.65 𝜎𝑌 = √3421.65 = 58.49 Co-efficient of correlation r = ∑(𝑋−𝑋) 𝑁𝜎𝑋𝜎𝑌 (𝑌−𝑌) = 776352.57 12∗1161.96∗58.49 = 776352.57 815556.48 = 0.95 INTERPRETATION The value 0.95 lies between -1 and +1 and indicates a higher degree of positive correlation between Auto nifty and Tata motors stocks. “There is a relationship between Auto Nifty and Tata motors stocks”
  48. 48. 48 TABLE 4.4 BETA CALCULATION OF MAHINDRA &MAHINDRA INDIA LTD JAN – DEC -2014 Date (Auto nifty close price) (M&M close price) X Daily returns nifty (%) Y Daily returns M&M (%) X2 XY 31-Jan-14 5009.85 890.2 28-Feb-14 5467.25 974.5 9.130014 9.469782 83.35715 86.45924 31-Mar-14 5803.2 980.7 6.144771 0.636224 37.75821 3.909449 30-Apr-14 5866.5 1074.2 1.090778 9.534006 1.189796 10.39948 30-May-14 6385.1 1235.5 8.840024 15.01583 78.14602 132.7403 30-Jun-14 6775.15 1147.2 6.108753 -7.1469 37.31687 -43.6587 31-Jul-14 6907.15 1201.65 1.948296 4.746339 3.795859 9.247275 28-Aug-14 7683.6 1407.2 11.24125 17.10565 126.3657 192.2888 30-Sep-14 7899.35 1360.8 2.807929 -3.29733 7.884463 -9.25866 31-Oct-14 8246.9 1306.2 4.399729 -4.01235 19.35762 -17.6532 28-Nov-14 8540.25 1323.75 3.557094 1.343592 12.65292 4.779284 31-Dec-14 8281.2 1234.45 -3.03328 -6.74599 9.200809 20.46249 52.23535 36.64885 417.0254 389.7158 X = 𝑻𝒐𝒅𝒂𝒚′ 𝒔 𝑷𝒓𝒊𝒄𝒆−𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚𝒔 𝑷𝒓𝒊𝒄𝒆 𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚′ 𝒔𝑷𝒓𝒊𝒄𝒆 *100 Y = 𝑻𝒐𝒅𝒂𝒚′ 𝒔 𝑷𝒓𝒊𝒄𝒆−𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚𝒔 𝑷𝒓𝒊𝒄𝒆 𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚′ 𝒔𝑷𝒓𝒊𝒄𝒆 *100 𝜷 = 𝒏 ∑ 𝒙𝒚−(∑ 𝒙)(∑ 𝒚) 𝒏 ∑ 𝒙 𝟐−(∑ 𝒙)^𝟐 𝜷 = 𝟏𝟐∗𝟑𝟖𝟗.𝟕𝟏𝟓−(𝟓𝟐.𝟐𝟑𝟓𝟑𝟓)(𝟑𝟔.𝟔𝟒𝟖𝟖𝟓) 𝟏𝟐∗𝟒𝟏𝟕.𝟎𝟐𝟓𝟒−(𝟓𝟐.𝟐𝟑𝟓𝟑𝟓)^𝟐 𝜷 = 𝟐𝟕𝟔𝟐.𝟐𝟖𝟎 𝟐𝟐𝟕𝟓.𝟕𝟔𝟗 𝜷 = 1.23
  49. 49. 49 CHART 4.1 SHOWS THE BETA OF MAHINDRA & MAHINDRA INDIA LTD JAN TO DEC -2013 INTERPRETATION The 𝛽 value for Mahindra & Mahindra limited 2014 is found to be 1.23. The market portfolio 𝛽 will always be 1.Mahindra & Mahindra stocks are positive valued. Therefore it can be said the risk is more than auto nifty’s risk. Because, beta describes the relationship between the Mahindra & Mahindra stocks and an auto nifty return. -0.1 -0.05 0 0.05 0.1 0.15 0.2 1 2 3 4 5 6 7 8 9 10 11 12 X (Auto nifty close price ) Y (close proce of M&M )
  50. 50. 50 TABLE 4.5 BETA CALCULATION OF MARUTI SUZUKI INDIA LTD –JAN – DEC -2014 Date (Auto nifty close price) (Maruthi suzuki close price) X Daily returns nifty (%) Y Daily returns M&M (%) X2 XY 31-Jan-14 5009.85 1636.25 28-Feb-14 5467.25 1589 9.130014 -2.8877 83.35715 -26.3647 31-Mar-14 5803.2 1971.75 6.144771 24.08748 37.75821 148.012 30-Apr-14 5866.5 1923 1.090778 -2.47242 1.189796 -2.69686 30-May-14 6385.1 2271.8 8.840024 18.13833 78.14602 160.3432 30-Jun-14 6775.15 2439.35 6.108753 7.375209 37.31687 45.05333 31-Jul-14 6907.15 2524.05 1.948296 3.472236 3.795859 6.764946 28-Aug-14 7683.6 2784.5 11.24125 10.31873 126.3657 115.9955 30-Sep-14 7899.35 3062.85 2.807929 9.996409 7.884463 28.0692 31-Oct-14 8246.9 3337.25 4.399729 8.958976 19.35762 39.41707 28-Nov-14 8540.25 3346.2 3.557094 0.268185 12.65292 0.953959 31-Dec-14 8281.2 3329.8 -3.03328 -0.49011 9.200809 1.486637 52.23535 76.76532 417.0254 517.0343 X = 𝑻𝒐𝒅𝒂𝒚′ 𝒔 𝑷𝒓𝒊𝒄𝒆−𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚𝒔 𝑷𝒓𝒊𝒄𝒆 𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚′ 𝒔𝑷𝒓𝒊𝒄𝒆 *100 Y = 𝑻𝒐𝒅𝒂𝒚′ 𝒔 𝑷𝒓𝒊𝒄𝒆−𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚𝒔 𝑷𝒓𝒊𝒄𝒆 𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚′ 𝒔𝑷𝒓𝒊𝒄𝒆 *100 𝜷 = 𝒏 ∑ 𝒙𝒚−(∑ 𝒙)(∑ 𝒚) 𝒏 ∑ 𝒙 𝟐−(∑ 𝒙)^𝟐 𝜷 = 𝟏𝟐∗𝟓𝟏𝟕.𝟎𝟑𝟒𝟑−(𝟓𝟐.𝟐𝟑𝟓𝟑𝟓)(𝟕𝟔.𝟕𝟔𝟓𝟑𝟐) 𝟏𝟐∗𝟒𝟏𝟕.𝟎𝟐𝟓𝟒−(𝟓𝟐.𝟐𝟑𝟓𝟑𝟓)^𝟐 𝜷 = 𝟐𝟏𝟗𝟒.𝟓𝟒𝟖 𝟐𝟐𝟕𝟓.𝟕𝟔𝟗 𝜷 = 0.96
  51. 51. 51 CHART 4.2 SHOWS THE BETA OF MARUTHI SUZUKI INDIA LTD –JAN TO DEC -2014 INTERPRETATION The 𝛽 value for Maruti Suzuki limited 2014 is found to be 0.96. The market portfolio 𝛽 will always be 1. Maruti Suzuki stocks are positive valued. Therefore it can be said the risk is more than auto nifty’s risk. Because, beta describes the relationship between the Maruti Suzuki stocks and an auto nifty return. -5 0 5 10 15 20 25 30 1 2 3 4 5 6 7 8 9 10 11 12 X (Auto nifty close price ) Y (close proce of Maruti )
  52. 52. 52 TABLE 4.6 BETA CALCULATION OF TATA MOTORS INDIA LTD –JAN – DEC -2014 Date (Auto nifty close price) (TATA Motors close price) X Daily returns nifty (%) Y Daily returns M&M (%) X2 XY 31-Jan-14 5009.85 349.55 28-Feb-14 5467.25 416.95 9.130014 19.28193 83.35715 176.0443 31-Mar-14 5803.2 398.65 6.144771 -4.38902 37.75821 -26.9695 30-Apr-14 5866.5 414.75 1.090778 4.03863 1.189796 4.405247 30-May-14 6385.1 415.05 8.840024 0.072333 78.14602 0.639423 30-Jun-14 6775.15 431.3 6.108753 3.915191 37.31687 23.91694 31-Jul-14 6907.15 446.75 1.948296 3.582193 3.795859 6.979174 28-Aug-14 7683.6 525.05 11.24125 17.52658 126.3657 197.0207 30-Sep-14 7899.35 502.15 2.807929 -4.36149 7.884463 -12.2468 31-Oct-14 8246.9 535.85 4.399729 6.711142 19.35762 29.52721 28-Nov-14 8540.25 533.5 3.557094 -0.43856 12.65292 -1.55998 31-Dec-14 8281.2 495.55 -3.03328 -7.1134 9.200809 21.57697 52.23535 38.82554 417.0254 419.3337 X = 𝑻𝒐𝒅𝒂𝒚′ 𝒔 𝑷𝒓𝒊𝒄𝒆−𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚𝒔 𝑷𝒓𝒊𝒄𝒆 𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚′ 𝒔𝑷𝒓𝒊𝒄𝒆 *100 Y = 𝑻𝒐𝒅𝒂𝒚′ 𝒔 𝑷𝒓𝒊𝒄𝒆−𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚𝒔 𝑷𝒓𝒊𝒄𝒆 𝒀𝒆𝒔𝒕𝒆𝒓𝒅𝒂𝒚′ 𝒔𝑷𝒓𝒊𝒄𝒆 *100 𝜷 = 𝒏 ∑ 𝒙𝒚−(∑ 𝒙)(∑ 𝒚) 𝒏 ∑ 𝒙 𝟐−(∑ 𝒙)^𝟐 𝜷 = 𝟏𝟐∗𝟒𝟏𝟗.𝟑𝟑𝟑𝟕−(𝟓𝟐.𝟐𝟑𝟓𝟑𝟓)(𝟑𝟖.𝟖𝟐𝟓𝟓𝟒) 𝟏𝟐∗𝟒𝟏𝟕.𝟎𝟐𝟓𝟒−(𝟓𝟐.𝟐𝟑𝟓𝟑𝟓)^𝟐 𝜷 = 𝟑𝟎𝟎𝟒 𝟐𝟐𝟕𝟓.𝟕𝟔𝟗 𝜷 = 1.31
  53. 53. 53 CHART 4.3 SHOWS THE BETA OF TATA MOTORS INDIA LTD –JAN TO DEC -2014 INTERPRETATION The 𝛽 value for Tata Motors limited 2014 is found to be 1.31. The market portfolio 𝛽 will always be 1. Tata Motors stocks are positive valued. Therefore it can be said the risk is more than auto nifty’s risk. Because, beta describes the relationship between the Tata Motors stocks and an auto nifty return. -10 -5 0 5 10 15 20 25 1 2 3 4 5 6 7 8 9 10 11 12 X (Auto nifty close price ) Y (close price of TATA motors )
  54. 54. 54 TABLE 4.7 TECHNICAL ANALYSIS FOR M&M INDIA LTD DURING JAN-DEC 2014 Date Close Price Volume RSI Auto Nifty Nifty 1-Jan-14 948 311759 49.34256 5292.65 6301.65 2-Jan-14 936.1 503776 48.07822 5253.55 6221.15 3-Jan-14 900.25 1045971 35.66135 5194.9 6211.15 6-Jan-14 895.4 638053 40.01919 5204.8 6191.45 7-Jan-14 903.1 899197 40.98206 5209.7 6162.25 8-Jan-14 908.6 588184 36.634 5251.6 6174.6 9-Jan-14 894.35 459440 35.43642 5219.1 6168.35 10-Jan-14 874.55 896627 16.4258 5165.65 6171.45 13-Jan-14 888.25 507675 24.4709 5210.65 6272.75 14-Jan-14 891.05 671699 26.1756 5184 6241.85 15-Jan-14 904.9 824994 32.86371 5239.95 6320.9 16-Jan-14 892.65 826060 27.98463 5200.4 6318.9 17-Jan-14 899.55 916751 34.47728 5197.85 6261.65 20-Jan-14 906.75 508424 38.32242 5239.45 6303.95 21-Jan-14 903.6 519638 36.09894 5288.7 6313.8 22-Jan-14 916.45 955815 43.88422 5310.9 6338.95 23-Jan-14 890.1 1047415 46.64241 5256.05 6345.65 24-Jan-14 884.8 1991029 46.50396 5168.25 6266.75 27-Jan-14 866.85 1304447 38.80136 4998.7 6135.85 28-Jan-14 875.1 1129327 39.82382 5010.2 6126.25 29-Jan-14 861.95 784718 40.09174 5010.9 6120.25 30-Jan-14 867.9 774710 47.77815 5021.25 6073.7 31-Jan-14 890.2 942208 50.61611 5009.85 6089.5 3-Feb-14 884.85 990012 48.07214 4912.4 6001.8 4-Feb-14 853.75 1822968 35.63606 4938.6 6000.9 5-Feb-14 878.35 917994 46.24475 5021.85 6022.4 6-Feb-14 896.95 1110998 49.35675 5061.95 6036.3 7-Feb-14 895.55 721608 47.14722 5092.05 6063.2 10-Feb-14 894.2 790281 47.58355 5115.4 6053.45 11-Feb-14 897.05 696770 44.74255 5166.2 6062.7 12-Feb-14 895.5 438370 51.69067 5173.65 6084 13-Feb-14 906.65 804727 56.59921 5171.7 6001.1 14-Feb-14 904.4 1268648 62.5292 5198.9 6048.35 17-Feb-14 928.1 1121503 66.03146 5236.2 6073.3 18-Feb-14 935.15 1021824 72.98995 5275.4 6127.1 19-Feb-14 943.2 891891 73.3416 5275.35 6152.75 20-Feb-14 929.95 825663 63.05419 5259.65 6091.45
  55. 55. 55 21-Feb-14 930 467313 65.36237 5285.75 6155.45 24-Feb-14 944.1 391298 84.76337 5314 6186.1 25-Feb-14 943.9 955190 81.05163 5346 6200.05 26-Feb-14 964.7 854094 81.43852 5396.35 6238.8 28-Feb-14 974.5 953836 83.98622 5467.25 6276.95 3-Mar-14 952.25 534471 71.1784 5404.5 6221.45 4-Mar-14 955.8 575424 71.32486 5437.85 6297.95 5-Mar-14 948.55 609756 68.49076 5434.65 6328.65 6-Mar-14 955.35 958756 67.50539 5478.95 6401.15 7-Mar-14 983.55 1001714 73.97758 5530.3 6526.65 10-Mar-14 1015.85 1234628 75.26634 5552.85 6537.25 11-Mar-14 994.5 767406 65.78877 5516.95 6511.9 12-Mar-14 991.25 1633533 63.11766 5482.4 6516.9 13-Mar-14 1016.05 1215049 72.11094 5509.35 6493.1 14-Mar-14 1027 1237442 73.58949 5555.6 6504.2 18-Mar-14 1009.6 1271369 65.67736 5549.45 6516.65 19-Mar-14 980.45 2025079 57.68341 5540.85 6524.05 20-Mar-14 978.3 753676 53.10219 5493.65 6483.1 21-Mar-14 970.45 1073949 49.06789 5542.4 6493.2 22-Mar-14 973.9 39379 55.45477 5557.2 6494.9 24-Mar-14 987.8 1091726 57.66284 5616.3 6583.5 25-Mar-14 973.4 757147 55.75365 5644.6 6589.75 26-Mar-14 958.95 1213646 50.80501 5694.35 6601.4 27-Mar-14 964.85 2217504 45.35519 5719.55 6641.75 28-Mar-14 968.25 1562397 36.1949 5738.8 6695.9 31-Mar-14 980.7 1665520 45.77982 5803.2 6704.2 1-Apr-14 1000.15 1075558 52.47635 5813.15 6721.05 2-Apr-14 1002 1105540 45.51834 5879.05 6752.55 3-Apr-14 1007.2 643179 43.44371 5869 6736.1 4-Apr-14 999 678999 46.26234 5811.05 6694.35 7-Apr-14 1014.1 899498 63.17025 5824.2 6695.05 9-Apr-14 1023.15 980468 66.65429 5927.8 6796.2 10-Apr-14 1021.15 929301 69.68168 5956.05 6796.4 11-Apr-14 1005.5 610992 61.20567 5887.6 6776.3 15-Apr-14 984.7 852330 48.95199 5822.7 6733.1 16-Apr-14 976.55 1162213 51.1119 5784.5 6675.3 17-Apr-14 996.95 671953 62.87263 5915.3 6779.4 21-Apr-14 1033.15 1506204 69.19618 5998 6817.65 22-Apr-14 1026.4 731931 66.04138 5965.2 6815.35 23-Apr-14 1039.15 1211192 66.09749 5979.2 6840.8 25-Apr-14 1070.7 1321499 68.21585 5961.4 6782.75 28-Apr-14 1067 913827 66.62404 5907.55 6761.25
  56. 56. 56 29-Apr-14 1068 855403 65.89127 5844.25 6715.25 30-Apr-14 1074.2 1355176 69.86265 5866.5 6696.4 2-May-14 1057.85 798421 61.47993 5849.05 6694.8 5-May-14 1059.6 617292 59.94543 5862.4 6699.35 6-May-14 1065.5 328008 61.84878 5876.8 6715.3 7-May-14 1061.95 411121 66.12396 5838.35 6652.55 8-May-14 1064.15 489585 75.3915 5875.9 6659.85 9-May-14 1102.55 858295 83.74397 6011.2 6858.8 12-May-14 1129.75 811004 84.31525 6180.05 7014.25 13-May-14 1122.9 790272 77.3378 6218.25 7108.75 14-May-14 1085.45 10204162 65.15268 6213.2 7108.75 15-May-14 1104.55 1056404 66.25249 6192.55 7123.15 16-May-14 1114.7 1676026 62.23582 6246.2 7203 19-May-14 1099.6 1095507 58.5251 6251.2 7263.55 20-May-14 1136.45 1029777 65.07377 6265.4 7275.5 21-May-14 1150.3 896177 66.21219 6323.9 7252.9 22-May-14 1137.6 831455 67.25817 6333.45 7276.4 23-May-14 1159.3 996854 69.86056 6433.65 7367.1 26-May-14 1229.15 2270149 75.98031 6502 7359.05 27-May-14 1198 812712 69.85841 6435.65 7318 28-May-14 1161.6 1177751 62.93298 6374.75 7329.65 29-May-14 1176.95 1198529 60.51739 6375.25 7235.65 30-May-14 1235.5 4215542 63.73198 6385.1 7229.95 2-Jun-14 1239.25 1078154 65.23105 6470.55 7362.5 3-Jun-14 1230.75 1040600 70.58074 6509.3 7415.85 4-Jun-14 1219.85 849936 66.71984 6558.35 7402.25 5-Jun-14 1202.7 1087425 62.50711 6618.25 7474.1 6-Jun-14 1232.8 1268918 68.15703 6724.9 7583.4 9-Jun-14 1224 987987 62.92251 6832.65 7654.6 10-Jun-14 1233.15 852952 62.40084 6835.8 7656.4 11-Jun-14 1227.1 738527 63.6683 6807.35 7626.85 12-Jun-14 1229 511769 61.32965 6858.8 7649.9 13-Jun-14 1228.85 1135999 49.93695 6738.6 7542.1 16-Jun-14 1198 968712 50 6668.7 7533.55 17-Jun-14 1180.95 1234682 54.43299 6703.85 7631.7 18-Jun-14 1160.3 925727 46.276 6643.2 7558.2 19-Jun-14 1176.1 518181 33.57301 6658.9 7540.7 20-Jun-14 1143.95 741781 27.22275 6604.15 7511.45 23-Jun-14 1161.2 922624 34.04451 6651.9 7493.35 24-Jun-14 1167.05 534625 37.59981 6727.2 7580.2 25-Jun-14 1179.45 569241 44.41509 6791.7 7569.25 26-Jun-14 1175.9 1263102 34.3337 6796.3 7493.2
  57. 57. 57 27-Jun-14 1153.5 1016909 31.9416 6750.4 7508.8 30-Jun-14 1147.2 1312636 27.65792 6775.15 7611.35 1-Jul-14 1194.3 972243 42.97344 6989.2 7634.7 2-Jul-14 1219.75 1006010 48.20004 7100.4 7725.15 3-Jul-14 1235.55 891528 51.22891 7149.3 7714.8 4-Jul-14 1230.05 533980 56.48129 7153.2 7751.6 7-Jul-14 1239.55 694005 62.22361 7201.85 7787.15 8-Jul-14 1214.5 721630 61.10201 7034.5 7623.2 9-Jul-14 1178.55 1230674 50.46358 6852 7585 10-Jul-14 1165.55 1316703 54.40636 6796.5 7567.75 11-Jul-14 1164.35 1064771 50.68762 6722.5 7459.6 14-Jul-14 1166.95 911791 49.97786 6782.25 7454.15 15-Jul-14 1200.3 800405 54.22492 6885.25 7526.65 16-Jul-14 1222.05 1270503 58.70919 6989.5 7624.4 17-Jul-14 1183.45 2654586 55.32634 6981.6 7640.45 18-Jul-14 1183.65 1481186 56.62607 6986.7 7663.9 21-Jul-14 1188.65 727398 48.78729 6987.7 7684.2 22-Jul-14 1179.5 584951 40.71082 7019.4 7767.85 23-Jul-14 1194.75 1246350 40.55993 7033 7795.75 24-Jul-14 1202.2 958073 43.61385 7031.8 7830.6 25-Jul-14 1210.6 818364 43.32796 6945.1 7790.45 28-Jul-14 1205.85 668480 47.80066 6907.85 7748.7 30-Jul-14 1221.7 1592201 62.22033 6957.7 7791.4 31-Jul-14 1201.65 3088109 59.83115 6907.15 7721.3 1-Aug-14 1174.15 1376419 52.33444 6847.15 7602.6 4-Aug-14 1185.5 1634607 54.24194 6936.65 7683.65 5-Aug-14 1230.1 1526501 56.48108 7072.35 7746.55 6-Aug-14 1241.15 1351860 54.35675 7022.7 7672.05 7-Aug-14 1249.4 590123 67.46095 7015.9 7649.25 8-Aug-14 1229.35 1241728 60.94873 6918.65 7568.55 11-Aug-14 1308.6 2278535 71.19632 7093.3 7625.95 12-Aug-14 1310.1 1403873 73.71958 7223.7 7727.05 13-Aug-14 1316.25 1285091 72.82119 7230.9 7739.55 14-Aug-14 1321.85 882663 72.63098 7270.65 7791.7 18-Aug-14 1326.05 1997382 72.18912 7387.8 7874.25 19-Aug-14 1374.1 1361095 77.72285 7569.8 7897.5 20-Aug-14 1357.3 526367 72.27332 7524.4 7875.3 21-Aug-14 1376.3 806853 78.78688 7573.5 7891.1 22-Aug-14 1391.85 788365 87.35415 7582.15 7913.2 25-Aug-14 1410.7 582081 87.67146 7597.5 7906.3 26-Aug-14 1399.6 604579 81.93293 7595.65 7904.75 27-Aug-14 1395.9 529505 79.9845 7665 7936.05
  58. 58. 58 28-Aug-14 1407.2 1511316 80.21831 7683.6 7954.35 1-Sep-14 1403.35 1078879 85.5247 7789.35 8027.7 2-Sep-14 1395.6 1184829 75.08651 7797.5 8083.05 3-Sep-14 1411.55 1166531 77.00293 7850.85 8114.6 4-Sep-14 1410.75 793446 75.89041 7856.15 8095.95 5-Sep-14 1408.2 446263 74.05963 7805.6 8086.85 8-Sep-14 1394.95 1260522 68.27586 7864.6 8173.9 9-Sep-14 1404 473158 60 7899 8152.95 10-Sep-14 1384.9 534592 59.09091 7882.65 8094.1 11-Sep-14 1374.1 1317133 49.23398 7932.25 8085.7 12-Sep-14 1389.25 978377 49.09218 8009.8 8105.5 15-Sep-14 1369.95 443584 35.81622 7984.65 8042 16-Sep-14 1372.35 1001928 39.90367 7830.7 7932.9 17-Sep-14 1380.1 1297656 44.31655 7901.15 7975.5 18-Sep-14 1391.5 966250 44.35658 8120.35 8114.75 19-Sep-14 1373.55 1186702 40.27415 8059.3 8121.45 22-Sep-14 1372.35 846494 42.07296 8153.5 8146.3 23-Sep-14 1347.6 1272537 29.43069 7991.1 8017.55 24-Sep-14 1357.25 554668 33.71881 7946.6 8002.4 25-Sep-14 1353 1827995 33.37349 7867.1 7911.85 26-Sep-14 1393.45 896234 49.6118 7933.95 7968.85 29-Sep-14 1383.25 618028 44.66169 7904.3 7958.9 30-Sep-14 1360.8 963970 43.90491 7899.35 7964.8 1-Oct-14 1389.65 699845 53.60371 7895.2 7945.55 7-Oct-14 1356.4 1286372 42.97627 7828.25 7852.4 8-Oct-14 1371.7 592040 50.38068 7870.75 7842.7 9-Oct-14 1367.15 511972 48.87931 7957.6 7960.55 10-Oct-14 1317.4 616302 38.55839 7732.35 7859.95 13-Oct-14 1268.95 1192435 30.30059 7720.7 7884.25 14-Oct-14 1274.05 523984 33.31657 7690.55 7864 16-Oct-14 1219.1 1037880 28.22844 7524.35 7748.2 17-Oct-14 1253.75 767573 37.03192 7568.8 7779.7 20-Oct-14 1260.7 654163 36.55854 7725.75 7879.4 21-Oct-14 1229.05 1037344 33.96715 7765.4 7927.75 22-Oct-14 1260.65 1330697 32.41991 7991.1 7995.9 23-Oct-14 1263.7 72839 33.86857 8000.9 8014.55 27-Oct-14 1256.8 908018 35.35211 7939.6 7991.7 28-Oct-14 1277.3 630696 33.79489 7972.85 8027.6 29-Oct-14 1298.35 890678 41.32157 8103.7 8090.45 30-Oct-14 1287.75 1138585 37.27066 8128.9 8169.2 31-Oct-14 1306.2 2021734 41.13197 8246.9 8322.2 3-Nov-14 1267.55 1370735 42.50489 8172.85 8324.15
  59. 59. 59 5-Nov-14 1256.1 1286876 47.82609 8183.95 8338.3 7-Nov-14 1239.1 1364747 44.31615 8118.4 8337 10-Nov-14 1230.9 908779 52.26314 8106.3 8344.25 11-Nov-14 1260.55 1018261 51.32968 8172.8 8362.65 12-Nov-14 1253.6 1149005 48.61165 8285.25 8383.3 13-Nov-14 1255.2 971831 55.79437 8251.25 8357.85 14-Nov-14 1255.85 445915 48.76733 8285.05 8389.9 17-Nov-14 1250.3 637917 46.60243 8401.2 8430.75 18-Nov-14 1264.85 1278186 51.96485 8441.7 8425.9 19-Nov-14 1245 1115266 42.09109 8378.7 8382.3 20-Nov-14 1227.9 1461136 32.40949 8334.2 8401.9 21-Nov-14 1246.7 2344656 40.15351 8378.8 8477.35 24-Nov-14 1250.65 1722544 35.6793 8393.7 8530.15 25-Nov-14 1257.65 1165424 46.95009 8301.85 8463.1 26-Nov-14 1273.75 860949 55.28601 8333.75 8475.75 27-Nov-14 1293.05 1210914 65.93796 8378.75 8494.2 28-Nov-14 1323.75 1699883 74.21121 8540.25 8588.25 1-Dec-14 1295.1 1013607 59.05636 8556.1 8555.9 2-Dec-14 1264.55 569809 52.55423 8481.65 8524.7 3-Dec-14 1286.75 583839 56.71419 8594.9 8537.65 4-Dec-14 1265.1 784917 51.80699 8587.7 8564.4 5-Dec-14 1294.05 823874 57.83068 8585.95 8538.3 8-Dec-14 1248.75 1058138 47.40406 8450.35 8438.25 9-Dec-14 1265.65 939082 53.36155 8351.85 8340.7 10-Dec-14 1266.5 984975 56.63458 8389.55 8355.65 11-Dec-14 1266.1 441192 53.55963 8318.75 8292.9 12-Dec-14 1251.4 1858144 50.13239 8284.35 8224.1 15-Dec-14 1252.3 1106573 49.03482 8260.75 8219.6 16-Dec-14 1227.5 1057066 41.91009 8109.5 8067.6 17-Dec-14 1219.15 1031565 36.55875 7977.55 8029.8 18-Dec-14 1212.25 889484 27.79769 8156.1 8159.3 19-Dec-14 1222.25 717650 34.32996 8168.4 8225.2 22-Dec-14 1265.4 469879 50.17343 8286.7 8324 23-Dec-14 1268.45 434148 45.94954 8259.5 8267 24-Dec-14 1251.95 1415736 47.02152 8184.35 8174.1 26-Dec-14 1255.3 229661 40.07174 8203.25 8200.7 29-Dec-14 1251.6 225376 50.92804 8323.1 8246.3 30-Dec-14 1257.75 333826 47.23389 8302.35 8248.25 31-Dec-14 1234.45 647894 40.30257 8281.2 8282.7
  60. 60. 60 CHART 4.4 TECHNICAL ANALYSIS FOR M&M INDIA LTD DURING JAN-DEC2014 INTERPRETATION In the month of February and October the RSI reached the level 30. So it indicates oversold condition. The RSI crossing the level of above 70 in the period of March, May, June, August and September which is clearly signaling that the stock had the overbought condition.
  61. 61. 61 TABLE 4.8 TECHNICAL ANALYSIS FOR MARUTI SUZUKI INDIA LTD DURING JAN- DEC2014 Date Close Price Volume RSI Auto Nifty Nifty 1-Jan-14 1764 214453 52.26151 5292.65 6301.65 2-Jan-14 1768.4 1565710 62.79847 5253.55 6221.15 3-Jan-14 1798.6 583504 75.41978 5194.9 6211.15 6-Jan-14 1807.7 549379 75.08274 5204.8 6191.45 7-Jan-14 1845.75 1614578 78.85657 5209.7 6162.25 8-Jan-14 1837.5 1398622 73.43648 5251.6 6174.6 9-Jan-14 1811.8 947521 57.63872 5219.1 6168.35 10-Jan-14 1794.1 670378 45.97463 5165.65 6171.45 13-Jan-14 1782.75 559984 45.01901 5210.65 6272.75 14-Jan-14 1773.35 530939 45.99845 5184 6241.85 15-Jan-14 1800.1 612338 51.51163 5239.95 6320.9 16-Jan-14 1789.85 429527 53.58007 5200.4 6318.9 17-Jan-14 1775.2 310359 49.5438 5197.85 6261.65 20-Jan-14 1778.2 340046 53.42269 5239.45 6303.95 21-Jan-14 1801.9 541958 58.15054 5288.7 6313.8 22-Jan-14 1807.85 424767 58.42769 5310.9 6338.95 23-Jan-14 1793.8 493794 48.89858 5256.05 6345.65 24-Jan-14 1774.25 377713 42.67572 5168.25 6266.75 27-Jan-14 1702.3 923081 22.65014 4998.7 6135.85 28-Jan-14 1566 6599087 15.21906 5010.2 6126.25 29-Jan-14 1673.85 6737926 35.40057 5010.9 6120.25 30-Jan-14 1635.9 1651215 33.94561 5021.25 6073.7 31-Jan-14 1636.25 729347 34.79344 5009.85 6089.5 3-Feb-14 1618.5 957497 34.20059 4912.4 6001.8 4-Feb-14 1619.65 703285 30.5738 4938.6 6000.9 5-Feb-14 1606.7 627278 30.39709 5021.85 6022.4 6-Feb-14 1639.7 1237835 36.04531 5061.95 6036.3 7-Feb-14 1664.95 921283 38.84786 5092.05 6063.2 10-Feb-14 1688.85 896683 38.87194 5115.4 6053.45 11-Feb-14 1678.15 294694 37.35128 5166.2 6062.7 12-Feb-14 1647.7 442825 36.19354 5173.65 6084 13-Feb-14 1641.25 439092 37.1124 5171.7 6001.1 14-Feb-14 1643.4 451950 43.39982 5198.9 6048.35 17-Feb-14 1665.7 617227 65.00602 5236.2 6073.3 18-Feb-14 1708.45 954637 56.47697 5275.4 6127.1 19-Feb-14 1698.1 341015 62.98539 5275.35 6152.75
  62. 62. 62 20-Feb-14 1683.3 344996 59.26363 5259.65 6091.45 21-Feb-14 1675.6 340948 61.70562 5285.75 6155.45 24-Feb-14 1684.4 326898 62.8702 5314 6186.1 25-Feb-14 1678 245384 64.55102 5346 6200.05 26-Feb-14 1664.05 584837 55.38836 5396.35 6238.8 28-Feb-14 1589 1768632 36.22847 5467.25 6276.95 3-Mar-14 1582.2 1060385 29.38334 5404.5 6221.45 4-Mar-14 1597.4 797764 34.65704 5437.85 6297.95 5-Mar-14 1625.4 728060 45.72305 5434.65 6328.65 6-Mar-14 1650.45 422906 51.64697 5478.95 6401.15 7-Mar-14 1735.05 944177 62.66759 5530.3 6526.65 10-Mar-14 1801.1 1324717 66.69544 5552.85 6537.25 11-Mar-14 1754.15 703249 55.57725 5516.95 6511.9 12-Mar-14 1764.05 1443683 58.05742 5482.4 6516.9 13-Mar-14 1747.35 641720 57.78913 5509.35 6493.1 14-Mar-14 1738.45 588996 57.62095 5555.6 6504.2 18-Mar-14 1868.2 1795672 67.23233 5549.45 6516.65 19-Mar-14 1869.75 621508 68.14268 5540.85 6524.05 20-Mar-14 1856.55 310199 68.23953 5493.65 6483.1 21-Mar-14 1868.55 284182 80.08178 5542.4 6493.2 22-Mar-14 1872.5 37419 81.43136 5557.2 6494.9 24-Mar-14 1886.3 329812 81.37489 5616.3 6583.5 25-Mar-14 1901.7 395158 80.85083 5644.6 6589.75 26-Mar-14 1937.1 634815 81.28342 5694.35 6601.4 27-Mar-14 1935.55 825829 76.72621 5719.55 6641.75 28-Mar-14 1931.4 326409 70.8014 5738.8 6695.9 31-Mar-14 1971.75 437613 85.48598 5803.2 6704.2 1-Apr-14 1930.85 288560 74.70379 5813.15 6721.05 2-Apr-14 1933.2 268932 78.7471 5879.05 6752.55 3-Apr-14 1939.7 307539 81.36201 5869 6736.1 4-Apr-14 1927.2 195927 64.48919 5811.05 6694.35 7-Apr-14 1904.95 319401 57.84663 5824.2 6695.05 9-Apr-14 1932.5 698363 65.91242 5927.8 6796.2 10-Apr-14 1959.95 486855 67.98505 5956.05 6796.4 11-Apr-14 1935.7 504763 61.51603 5887.6 6776.3 15-Apr-14 1927.2 228758 57.59941 5822.7 6733.1 16-Apr-14 1935.25 371554 56.40879 5784.5 6675.3 17-Apr-14 1951.35 337629 52.93875 5915.3 6779.4 21-Apr-14 1988.3 481905 59.49253 5998 6817.65 22-Apr-14 1975.6 323792 57.71648 5965.2 6815.35 23-Apr-14 1982.05 398691 52.0396 5979.2 6840.8 25-Apr-14 1956.2 1064921 55.33797 5961.4 6782.75
  63. 63. 63 28-Apr-14 1950.45 258675 53.58107 5907.55 6761.25 29-Apr-14 1916.5 335612 45.67648 5844.25 6715.25 30-Apr-14 1923 243902 49.19939 5866.5 6696.4 2-May-14 1883.4 324650 46.14697 5849.05 6694.8 5-May-14 1897.85 352889 43.50028 5862.4 6699.35 6-May-14 1910.25 239206 40.11928 5876.8 6715.3 7-May-14 1881.25 246112 39.37561 5838.35 6652.55 8-May-14 1896.6 180796 44.18472 5875.9 6659.85 9-May-14 1974.85 457287 55.94059 6011.2 6858.8 12-May-14 2049.9 555623 62.56214 6180.05 7014.25 13-May-14 2090.35 528807 62.89324 6218.25 7108.75 14-May-14 2085.2 329237 64.11643 6213.2 7108.75 15-May-14 2117.85 441637 66.38514 6192.55 7123.15 16-May-14 2152.15 808438 73.17015 6246.2 7203 19-May-14 2214.65 490566 77.54379 6251.2 7263.55 20-May-14 2194 225127 79.75552 6265.4 7275.5 21-May-14 2169.2 186665 75.40239 6323.9 7252.9 22-May-14 2264.8 679922 85.27562 6333.45 7276.4 23-May-14 2385.85 397790 87.70087 6433.65 7367.1 26-May-14 2341.3 778712 81.72518 6502 7359.05 27-May-14 2302.05 241821 80.51044 6435.65 7318 28-May-14 2309.95 352579 80.29759 6374.75 7329.65 29-May-14 2305.85 352983 77.22039 6375.25 7235.65 30-May-14 2271.8 189180 69.5679 6385.1 7229.95 2-Jun-14 2324.3 246577 70.20119 6470.55 7362.5 3-Jun-14 2336.85 372134 71.45537 6509.3 7415.85 4-Jun-14 2372.05 296026 71.57895 6558.35 7402.25 5-Jun-14 2381.2 553410 70.31125 6618.25 7474.1 6-Jun-14 2392.05 252012 67.31745 6724.9 7583.4 9-Jun-14 2435.15 315081 72.55214 6832.65 7654.6 10-Jun-14 2464.3 559445 77.37477 6835.8 7656.4 11-Jun-14 2448.55 395488 70.0098 6807.35 7626.85 12-Jun-14 2480.85 446513 62.82397 6858.8 7649.9 13-Jun-14 2403.35 328108 57.69183 6738.6 7542.1 16-Jun-14 2381.15 225806 60.23816 6668.7 7533.55 17-Jun-14 2414.45 190284 62.69128 6703.85 7631.7 18-Jun-14 2435 501190 65.08233 6643.2 7558.2 19-Jun-14 2380.05 305893 62.05322 6658.9 7540.7 20-Jun-14 2366.4 135952 55.13164 6604.15 7511.45 23-Jun-14 2380.3 158501 55.27882 6651.9 7493.35 24-Jun-14 2414.6 217974 55.18081 6727.2 7580.2 25-Jun-14 2471 430866 59.80563 6791.7 7569.25

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