project report on security analysis of selected stocks of IT sector which has 3 companies -infosys,wipro,TCS .Fundamental analysis and technical analysis is done for the stocks for duration of 6 months jan 2015 to june 2015.

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EXECUTIVE SUMMARY
This project entitled, “Security Analysis of Selected Stocks with reference to Information
Technology Sector ". This project is a combination of primary and secondary data. The study
is concerned with the tools used by investors for analyzing the stocks before taking the
investment decision. Primary data is basically derived from interactions with clients and the
branch manager and project guide of company. Secondary data is compiled from the various
websites of the companies, stock exchanges, books on securities analysis and journals. I have
selected this topic to understand the tools techniques used for analysis of stocks. This project
has helped me as an investor to take much wise decision related to investment in stocks. The
indicators used allow the investors to decide whether to buy, sell or hold the stock
Objectives
 To study fundamental and technical analysis of securities.
 To evaluate the performance of the company based on fundamental analysis.
 To analyze the movement of stock prices using technical analysis
 To evaluate the risk and return of the selected securities.
I have collected data for a period of six months from 1st Jan 2015 to 30th June 2015. I have
used different ratios for fundamental analysis and various graphs like candle stick graph to
know the fluctuations of the stock in the period of 6 months. Other indicators are RSI
(relative strength index). The general observation is that when RSI indicator is above 70
marks it indicates over brought zone, whereas, below 30 marks it indicates oversold zone.
Simple moving averages are other indicators.
Another tool used is the Beta value to judge the volatility of the scrip. This beta helps in
identifying the risk factor associated with the investment for earning returns. A beta of 1 is
considered balanced whereas a beta of more than 1 is considered more risky as well as higher
returns. A beta of less than 1 means the risk associated is low as well as the possible earnings.

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INTRODUCTION ABOUT THE SUBJECT
The market for long term securities like bonds, equity stocks and preferred stocks is divided
into primary market and secondary market. Primary market deals with the new issues of
securities. Outstanding securities are traded in the secondary market, which is commonly
known as stock market or stock exchange. In the secondary market, the investors can sell or
buy securities. Stock markets predominantly deal in the equity shares. Well regulated and
active stock market promotes capital formation. The health of the economy is reflected by the
growth of the stock market. Stock broking is a growing industry in India. The main reason is
that Indian economy is one of the strongest in the world. As a result of that both foreign and
domestic investors are interested in investing in Indian stock market.
The topic selected for the study is “Security Analysis of selected stocks with reference to
information technology sector” with reference to IndiaNivesh Securities Ltd, Nashik.
The study is done for the purpose of conducting fundamental analysis and technical analysis
of leading securities in the stock market. In the stock market share price of companies are
determined by the demand and supply forces operating in the market. These demand and
supply forces in turn are influenced by a number of fundamental factors as well as certain
psychological or emotional factors. The combined impact of all these factors is reflected in
the share price movement. The price movements of securities follow systematic and certain
consistent patterns. Past movements in the prices of shares help to identify trends and pattern.
It is useful for the prediction of future price movements. The companies selected are
INFOSYS, WIPRO&TCS.

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SECURITY ANALYSIS
Security analysis is an examination of various factors affecting the value of a security.
Security analysis is about valuing the assets, debt, warrants and equity of companies from the
perspective of the outside investors using publicly available information .security analysis
assists as a friend to be aware of the market trends regarding securities of the companies.
Security analysis is conducted by analyzing both the fundamental and technical aspects.
FUNDAMENTAL ANANYSIS
Fundamental analysis is the process of looking at a business at the basic or fundamental
financial level. This type of analysis examines key ratios of a business to determine its
financial health and gives you an idea of the value its stock
Many investors use fundamental analysis alone or in combination with other tools to evaluate
stocks for investment purposes. The goal is to determine the current worth and, more
importantly, how the market values the stock.
Fundamental analysis is about using real data to evaluate a security's value. Although most
analysts use fundamental analysis to value stocks, this method of valuation can be used for
just about any type of security
It is the method of evaluating a security by attempting to measure its intrinsic value by
examining related economic, financial and other qualitative and quantitative factors.
Fundamental analysts attempt to study everything that can affect the security's value,
including macroeconomic factors (like the overall economy and industry conditions) and
individually specific factors (like the financial condition and management of companies.
For example, an investor can perform fundamental analysis on a stock’s value by looking at
economic factors, .aid, as interest rates and the overall state of the economy, and information
about the bond issuer, such as potential changes in credit ratings. For assessing stocks, this
method uses revenues, earnings, future growth, return on equity, profit margins and other
data to determine a company's underlying value and potential for future growth. In terms of
stocks, fundamental analysis focuses on the financial statements of the Company being
evaluated.

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The end goal of performing fundamental analysis is to produce a value that an investor can
compare with the security's current price in hopes of figuring out what sort of position to take
with that security (under priced = buy, overpriced = sell or short).
STEPS FOR FUNDAMENTAL ANALYSIS
Step-1: ECONOMY ANALYSIS
Business or economic cycle has direct impact on industry and individual companies. It affects
investment decisions, employment, demand and profitability. Four stages of economics
cycle are depression, recovery, boom, and recession. Investors should determine the
stage of the economic cycle before investing. Investors should invest just before or during a
boom.
STEP-2: INDUSTRY ANALYSIS
Importance of industry can never be understated. State of industry will affect the company
performance. It is important to determine cycle. These are entrepreneurial or sunrise,
expansion or growth, stabilization or maturity and decline or sunset stage. Investors should
purchase in the first two stages and disinvest at the maturity stage. It is better to invest in
evergreen industries. Results of cyclical industries are volatile. Investors should consider
competition as the greater the competition lower the profit. It is safer to invest in industries
not subject to government controls. Export oriented industries currently favored by the
government
STEP 3: COMPANY ANALYSIS
Final stage of fundamental analysis is company analysis.
Areas to be examined are the company, the results, ratios and cash flow.

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MANAGEMENT
Management is the single most important factor to consider in a company. Upon its quality
rests the future of the company. In India two main types of the management - family and
professional. Investors must check on integrity of managers, proven competence, how high is
it rated by its peers, how did it performs at times of adversity, the management's depth of
knowledge, its innovativeness and professionalism.
THE COMPANY
It is important to check how company is perceived by its competition and weather it is the
market leader in its products or in its segments. The investor must study the policy a
company follows and its plans for growth.
ANNUAL REPORT
The annual report is the primary and most important source of information on a company.
The investor must read between and beyond the lines of an annual report to determine the
state of the company being considered. The annual report is broken into the director's report,
the auditor's report, the financial statements and the schedules.
DIRECTORS REPORT
This report gives investors insights into the company. It enunciates the opinions of the
directors on the company, the industry and the political situation. It explains the performance
of the company, its plans for diversification, modernization and expansion. It discusses the
profits earned and states the dividend proposed. The report, if read properly, can give the
investor a good grasp of the working of the company.
AUDITORS REPORT
The auditor represents shareholders and reports to them on the stewardship of the directors
and whether the accounts presented do present a true and fair view of the company.
Auditors will comment on any changes made in accounting principles and the effect of the
changes on the results. Auditors will also comment on any action or method of accounting
they do not agree with. Investor must read the auditor report in detail and in depth as the
results can materially change if adjustments are made based on the notes or the comments in
the auditor's report.

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FINANCIAL STATEMENTS
Financial statements of a company in an annual report consist of the balance sheet and profit
and loss account. These detail the financial health and the performance of the company.
The balance sheet details all the assets and liabilities a company has on a particular date.
Assets are those that the company owns suckle as fixed assets investments and current assets
(stock, debtors, and cash).Liabilities are those that the company owes (trade creditors, loans
etc) and the shareholders investment in the company (share capital and reserves). The profit
and loss account details numerically the activities the company had undertaken during the
accounting period and the result of these activities (profit or loss).
Contingent liabilities are also detailed. These are liabilities that may arise on the happening
of event that may never arise (guarantees, bill discounted). The liability crystallizes on the
happening of the event. The profit and loss account also details the dividend given (interim)
and proposed.
RATIOS
No investment should be made without analyzing the financial statements of the company
and comparing the company's results with that of earlier years. Ratios express mathematically
the relationship between the performance figures and / or assets / liabilities in a form that can
be easily understood and Interpreted. No single ratio tells the complete story
For fundamental analysis, the following ratios are used:
1) EARNING PER SHARE (EPS)
2) PRICE TO EARNING RATIO
3) PRICE TO SALES RATIO
4) BOOK VALUE
5) PRICE TO BOOK RATIO
6) DIVIDEND PAYOUT RATIO
7) DIVIDENT YEILD RATIO

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FACTORS OF FUNDAMENTAL ANALYSIS
FIGURE NO 1: FACTORS OF FUNDAMENTAL ANALYSIS
FUNDAMENTAL
ANALYSIS
DEMAND AND
SUPPLY
MACRO
ECONOMICISSUES
ENVIRONMENTAL
CONDITIONS
GLOBAL EVENTS
AND MARKET
INTER-NATIONAL
PRICE
MOVEMENT
POLITICAL
FACTORS

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TECHNICAL ANALYSIS
Technical Analysis is the forecasting of future financial price movements based on an
examination of past price movements. Like weather forecasting, technical analysis does not
result in absolute predictions about the future. Instead, technical analysis can help investors
anticipate what is “likely” to happen to prices over time. Technical analysis uses a wide
variety of charts that show price over time. Technical analysis is applicable to stocks, indices,
commodities, futures or any tradable instrument where the price is influenced by the forces of
supply and demand. Price refers to any combination of the open, high, low, or close for a
given security over a specific time frame. The time frame can be based on intraday (1-minute,
5-minutes, 10-minutes, 15-minutes, 30-minutes or hourly), daily, weekly or monthly price
data and last a few hours or many years. In addition, some technical analysts include volume
or open interest figures with their study of price action.
TOOLS OF TECHNICAL ANALYSIS
1) Relative Strength Index (RSI) - RSI compares the magnitude of recent gains to
recent losses to see if an asset is oversold or overbought. RSI is plotted on a scale of 0-100.
Generally, if it is above 70, the stock is considered overbought and so one can look to sell it.
Similarly, an RSI of less than 30 indicates the stock is oversold and can be bought.
RSI=100 -100 Where RS = Average gain
1+RS Average loss
2) Simple Moving Average
This is the average stock price over a certain period of time. Keep in mind that equal
weighting is given to each daily price. A simple or arithmetic, moving average that is
calculated by adding the closing price of the security for a number of time periods and then
dividing this total by the number of time periods.
3) Moving average convergence divergence - MACD
Developed by Gerald Appel in the late seventies, the Moving Average
Convergence/Divergence oscillator (MACD) is one of the simplest and most effective
momentum indicators available. The MACD turns two trend-following indicators, moving
averages, into a momentum oscillator by subtracting the longer moving average from the
shorter moving average.
Because MACD is unbounded, it is not particularly useful for identifying overbought and
oversold levels.

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4) CANDLE STICK CHARTS
The Japanese began using technical analysis to trade rice in the 17th century. While this
early version of technical analysis was different from the US version initiated by around 1900
According to Steve Nison, candlestick charting first appeared sometime after 1850. Much of
the credit for candlestick development and charting goes to a legendary rice trader named
Homma from the town of Sakata. It is likely
that his original ideas were modified and
refined over many years of trading eventually
resulting in the system of candlestick charting
that we use today.
FORMATION- In order to create a candlestick
chart, you must have a data set that contains
open, high, low and close values for each time
period you want to display. The hollow or filled
portion of the candlestick is called “the body”
The long thin lines above and below the body
represent the high/low range and are called
“shadows”. The high is marked by the top of
the upper shadow and the low by the bottom of the lower shadow. If the stock closes higher
than its opening price, a hollow candlestick is drawn with the bottom of the body is
representing the opening price and the top of the body representing the closing price. If the
stock closes lower than its opening price, a filled candlestick is drawn with the top of the
body representing the opening price and the bottom of the body representing the closing
price. Compared to traditional bar charts, many traders consider candlestick charts more
visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher
picture of price action. Immediately a trader can compare the relationship between the open
and close as well as the high and low. The relationship between the open and close is
considered vital information and forms the essence of candlesticks.
FIGURE NO 2: CANDLE STICK
FORMATION

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5) BULLS VERSUS BEARS
A candlestick depicts the battle between Bulls (buyers) and Bears (sellers) over a given
period of time. An analogy to this battle can be made between two football teams, which we
can also call the Bulls and the Bears. The bottom (intra-session low) of the candlestick
represents a touchdown for the Bears and the top (intra-session high) a touchdown for the
Bulls. The closer the close is to the high, the closer the Bulls are to a touchdown. The closer
the close is to the low, the closer the Bears are to a touchdown.
6) SUPPORT AND RESISTANCE
Support and resistance is a concept in technical analysis that the movement of the price of a
security will tend to stop and reverse at certain predetermined price levels. These levels are
denoted by multiple touches of price without a breakthrough of the level.
A support level is level where the price tends to find support as it is going down. This
means the price is more likely to "bounce" off this level rather than break through it.
However, once the price has passed this level, by an amount exceeding some noise, it is
likely to continue dropping until it finds another support level.
A resistance level is the opposite of a support level. It is where the price tends to find
resistance as it is going up. This means the price is more likely to "bounce" off this level
rather than break through it. However, once the price has passed this level, by an amount
exceeding some noise, it is likely that it will continue rising until it finds another resistance
level.
FIGURE NO 3: SUPPORT AND RESISTANCE

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7) GAP ANALYSIS
Just in case, a gap is an area on a price chart in which there were no trades. Normally this
occurs between the close of the market on one day and the next day's open. Lots of things can
cause this, such as an earnings report coming out after the stock market has closed for the
day. If the earnings were significantly higher than expected, many investors might place buy
orders for the next day. This could result in the price opening higher than the previous day's
close. If the trading that day continues to trade above that point, a gap will exist in the price
chart. Gaps can offer evidence that something important has happened to the fundamentals or
the psychology of the crowd that accompanies this market movement.
FIGURE NO 4: GAP ANALYSIS

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8)HEAD AND SHOULDER CHART
A head and shoulders pattern consists of a peak followed by a higher peak and then a lower
peak with a break below the neckline. The neckline is drawn through the lowest points of the
two intervening troughs and may slope upward or downward. A downward sloping neckline
is more reliable as a signal. The extent of the breakout move can be estimated by measuring
from the top of the middle peak down to the neckline. This target is then projected
downwards from the point of breakout.
FIGURE NO 5: HEAD AND SHOULDER

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9) CUP AND HANDLE CHART
A cup and handle chart is a bullish continuation pattern in which the upward trend has paused
but will continue in upward direction once the pattern is confirmed. As we can see in the
graph .this price pattern forms what looks like a cup, which is preceded by the upward trend.
The handle follows the cup and is formed generally downward sideways movement of the
security price.
FIGURE NO 6: CUP AND HANDLE

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TECHNICAL ANALYSIS V/S FUNDAMENTAL ANALYSIS
The comparison between technical analysis and fundamental analysis can be presented as
follows:
1) Fundamental analysis analyses the stock based on goals of the investors. They study
the financial strength of the corporation, growth of sales, earnings and profitability.
They also into account the general industrial and economic conditions. The technical
analysis chooses to study mainly focuses attention on the history of prices. Technical
analysts choose to study basic market data -price and volume.
2) Fundamental analyst estimate the intrinsic value of the shares and purchases them
when they are undervalued .They dispose of the shares when they are overpriced and
earn profits. They try to find out the long term value of value of compared to
fundamental analysts, technical analysts mainly predict the short term price
movements rather than long term movement they are not committed to a buy-and-
hold policy.
3) Fundamentalist are the opinions that supply and demand for stock depend for stock
depend on underlying factors. The forecasts of supply and demand depend on various
factors. Analysts opine that they can forecast supply and demand by studying the
prices and volume of trading.
In both the approaches, supply and demand factors are considered to be critical. Business,
economic, social, and political factors affect the demand and supply for securities. These
underlying factors in the form of demand and supply come together in the securities market
to determine security prices.

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HISTORY
Year Description
2006 Company has changed its name from Sanyei Corporation Ltd. To
IndiaNivesh Ltd.
2008 IndiaNivesh Ltd has appointed Mr. Hemant Panpalia as Additional
Director with immediate effect.
2010 IndiaNivesh Ltd has appointed Mr. Gireesh Bhagat as Additional
Director with immediate effect.
2012 IndiaNivesh Ltd said that it has completely acquired the equity
share capital (50,000 shares) of IndiaNivesh Commodities Ltd
(INCPL).
TABLE NO 1: HISTORY OF INDIANIVESH

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IDENTITY
Identity says it all. The green ' ' that connotes an India that is already an investment
powerhouse and is soaring high in the business world. The three red curves on the right wing
represent Trust, Commitment and Results
 Trust – which clients have at IndiaNivesh
 Commitment – which they have towards clients
 Results – which they deliver for their clients.
At IndiaNivesh, it strives to earn the trust and respect of each of the clients. They believe that
winning the trust and respect of the clients is more important than achieving personal targets.
It is this core thought that has helped IndiaNivesh to transform into a progressive financial
services group not only in the country, but across the globe.
VISION
Vision of IndiaNivesh is to emerge as a dynamic, customer-centric, and progressive financial
group in the country with pan India presence. This will be made possible with a single
minded focus on business growth and profitability, with due emphasis on risk management in
an environment of professionalism, trust and transparency, observing the highest standards of
corporate governance and corporate social responsibilities and meeting the expectations of all
stakeholders as well as the aspirations of the employees.
Essentially, combining integrity with pursuit of excellence to ensure prosperity to all
stakeholders on a continuous basis is going to be the core philosophy and driving force for
the group.
MISSION
One of the key endeavors is to become one of the top ten financial powerhouses in India
within the coming 5-6 years by constantly exploring future business models and offering the
entire bouquet of financial services to our clients under one single roof.
It serves as a bridge for creating wealth and preserving it.

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BUSINESS PRINCIPLES
1) Integrity - The Group, through the actions of our partners and associates, will reflect the
highest ethical standards at all times. Trust is an essential element of our industry. Clients and
collaborating partners and associates can expect dealings with them to be honest and
forthright – IndiaNivesh will not waver in our commitment to this principal.
2) Respect - IndiaNivesh will always treat each other and those with whom they come in
contact with dignity and respect. It is a global firm and embrace diversity of culture and
religion at workplace. They are open to the thoughts and opinions of others irrespective of
race, creed or ethnic origin, and relish the creativity that comes from collaborating with those
who may view things from a different perspective.
3) Leadership - Every associate and partner of IndiaNivesh is empowered as a leader both in
workplace and the communities where they work. They are confident of the firm's support as
it strives to implement innovation, efficiency and growth. IndiaNivesh supports community
service activities, recognizing the debt owed to a society that enables the group to flourish.
4) Excellence - IndiaNivesh is a service organization. It’s worth is measured daily by clients
and collaborating partners, associates, customers, etc. It will consistently provide service at a
level that exceeds expectations through focus on quality.
5) Teamwork – IndiaNivesh is loyal to their clients, their collaborators, their firm and each
other. They will work together and are accountable to each other to provide the absolute best
results for our clients. They are rewarded for their collaborative efforts without regard for
individual credit. It recognizes varying talents and abilities; therefore, a cooperative effort is
the best effort for their clients

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BOARD OF DIRECTORS
MR. HEMANT PANPALIA-FOUNDER & DIRECTOR
Mr.Hemant Panpalia is co-founder and non-executive Director
of IndiaNivesh Limited. Mr. Panpalia has set up his
accountancy practice in the name of Hemant Panpalia & Co.
since 1997. As a professional accountant, he has been
extensively engaged, across various industry segments, in
matters related to Statutory Audit, Special Audit, Corporate
Taxation, Due Diligences and Corporate Compliances.
Besides, Mr. Panpalia has been instrumental in inorganic growth and expansion by many
large industrial houses. He has also deployed innovative capital raising instruments for
several medium and small companies. Additionally, he has successfully led many
transactions related to mergers & acquisitions, debt syndication for project finance and
raising of primary capital from domestic and international markets.
Mr. Panpalia is a Graduate in Commerce from University of Mumbai and a Chartered
Accountant (Fellow Member of ICAI). He is also a diploma holder in System Analysis and
Design from NIIT, Mumbai.

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MR. GIRISH BHAGAT
MANAGING DIRECTOR OF INDIANIVESH FUND MANAGERS
LIMITED
Mr. Girish Bhagat, Managing Director of IndiaNivesh
Fund Managers Limited and Vice Chairman of
IndiaNivesh Financial Advisors Limited has over 30 years
of experience in areas of Investment Management, Capital
Markets, Investment Banking, Alternate Investments, IT
Services and in Urban Infrastructure development .
During his career, he has led some very successful & pioneering start-ups, significantly
contributed to capital inflows into India, structured cross border joint ventures and done
transactions in many countries. In his career Mr. Bhagat has held leadership positions in
HSBC, HDFC Securities, IIT Invest Trust, Citibank and Unit Trust of India.
Mr. Bhagat, in an honorary capacity, also serves as Secretary (India) to The EuroIndia Centre
(EIC), which is a not-profit body founded by Dr. Manmohan Singh, Prime Minister of India
and the former Prime Minister of France, late Mr. Raymond Barre that focuses on
development of urban infrastructure & sustainability. Mr. Bhagat is also a member of CII’s
National Council on Real Estate & Housing. Besides, he is a (non executive) Member of the
Board of Directors of CC Global Investments, which is a Luxembourg based Fund (Sponsors:
Clemente Capital LLC, US) and it invests in listed securities in global markets.
Mr. Bhagat is a Masters in Business Economics and a Graduate in Economics from the
University of Delhi. Mr. Bhagat is a Fellow of Royal Institution of Chartered Surveyors.

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MR.RAJARAM BALDI
INDEPENDENT DIRECTOR
Mr. Baldi is an Independent Director of IndiaNivesh Limited
and has more than three and half decades of rich experience in
entire business operations and other fields encompassing
Finance & Accounts, Taxation, Project Management, HRD,
Marketing, Administration, Risk Management, Public Relations
& Auditing of Capital Market sector. Mr.Baldi also possesses
strong skills in project planning, monitoring project progress,
ensuring cost control and maintaining cash flow requirements.
Mr. Baldi has held various senior level positions in various Companies throughout his career.
He is a Chartered Accountant and a Graduate in Commerce.
MR. DINESH NUWAL
CHAIRMAN, INDIANIVESH SECURITIES PRIVATE LIMITED
Mr. Nuwal is the Chairman and Managing Director of
IndiaNivesh Securities Private Limited and Vice Chairman of
IndiaNivesh Limited. Mr. Nuwal has 18 years of experience
in Capital and Commodity Markets operations, Investment
Management, Taxation, Compliance and Corporate Affairs.
Mr. Nuwal has in-depth understanding of the processes along
with the risks and regulatory compliance affairs associated
with Securities & Commodities market in India. He is a Chartered Accountant & Graduate in
Commerce.

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MR.DALJEET SINGH KOHLI
DIRECTOR / HEAD OF RESEARCH
Daljeet comes with an experience of more than 21 years in Equity
research. His experience spans across economies and many
specific sectors such as chemicals, pharmaceuticals, auto
ancillaries, retail, etc. Daljeet's strengths lie in his ability to relate
global macro- economic situations, political and social factors and
relate them to their micro impact at industrial sector or company
level.
Previously, Daljeet has worked as HOR in an Australian company in its Global equity
research hub in India. He has also led the Equity research teams in other eminent financial
services houses of India. He has been writing reports on sectors/companies regularly. He has
written many a times for alIndiaNivesh all the financial newspapers & business magazines.
He is a regular on various TV shows done by NDTV Profit, CNBC TV 18, CNBC Awaaz,
ET Now, Zee Business & Bloomberg TV.
SENIOUR MANAGEMENT TEAM
Mr. Sunil Avasthi President - Insurance Broking
Mr. C Krishnachander Senior Vice President – South
Mr. Manoj Jain Head - Commodities and Forex Broking
Mr. Sumit Bohra CEO - Insurance Broking
Mr. Govind Saboo Head - Merchant Banking
Mr. Jinesh Doshi Head – Compliance
TABLE NO 2: SENIOUR MANAGEMENT TEAM AT INDIANIVESH

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PRODUCTS OF INDIANIVESH
1) Securities broking
a) Equity- In keeping with its tradition of personalized service, IndiaNivesh Limited provides
Customized Equity Advisory Group to clients based on their profile. Equity Research is an
inherent strength of IndiaNivesh. Converting that research to advice is the main function of
Equity Advisory. The investment ideas identified by the research team are presented and
communicated with conviction to clients by advisory team. IndiaNivesh Equity Advisor
proactively helps you take informed equity investment decisions and build a healthy portfolio
giving the best fit to your investment and trading needs.
b) Derivatives- Futures & options are derivatives, which use equity as their underlying.
Hence Equity Advisory Group (EAG) will also act as advisors for F&O & help take informed
decisions while trading in these derivative instruments. Since derivatives instrument provide
good leverage opportunity, it is a great tool for speculation. Leverage is a double edge sword
for which one requires an equity advisor. The advisors will also help with various strategies
like Bull Spread, Bear Spread, Cover call writing, hedging strategies etc. This is to help to
make better trading returns.
2)Commodities broking- Over the years commodities markets have been experiencing
tremendous progress, which is evident from the fact that the trade in this segment is standing
as the boon for the global economy today. The promising nature of these markets has made
them an attractive investment avenue for investors.
3) Currency futures- A currency future, also known as FX future, is a futures contract to
exchange one currency for another at a specified date in the future at a price (exchange rate)
that is fixed on the purchase date. It offers US dollar-Indian rupee (USD/INR), euro-Indian
rupee (EUR/INR), pound sterling (GBP/INR) and Japanese yen-Indian Rupee. The currency
futures provide an effective tool to hedge against foreign exchange risk for Indian importers,
exporters, corporation and banks.
4) Depositories-a depository is a firm, company or organization which maintains investors
security in electronic form. In the same way IndiaNivesh reflect as a bank to their clients to
maintain their securities. The main function of a depositary is to dematerialize the securities
and enable their clients’ transactions in the book entry form.

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5)IPO and mutual funds- Book Building and Fixed Price Issue are the two types of Initial
Public Offerings (IPOs) through which a public company can raise money in the capital
market. In a book building public issue the bids are received at different
price levels and the demand for the issue is built up over a period of time.
Mutual funds offer the ideal platform to participate in the Equity & Debt market indirectly
through professional management. Mutual funds are becoming the most popular investment
vehicles offering various kinds of schemes with different investment objectives
6) Corporate finance-IndiaNivesh’s Corporate Finance activities are largely advisory in
nature and mostly geared towards meeting the Funding requirements of SME businesses,
from domestic & international markets.
7) Asset Management-The management of a client's investments by a financial services
company, usually an investment bank. The company will invest on behalf of its clients and
give them access to a wide range of traditional and alternative product offerings that would
not be to the average investor.
8) Investment research-A generic term that most commonly refers to the buying and selling
of investments within a portfolio. Investment management can also include banking and
budgeting duties, as well as taxes. But the term most often refers to portfolio management
and the trading of securities to achieve a specific investment objective.
9) Insurance broking-IndiaNivesh is one of the very first brokers in India to be registered
and licensed by IRDA. It was founded in 2003 on set of values and principles that still
governs today. Its mission is to provide personalized services and exceptional products
tailored to match your needs. We know that the world of Insurance can be confusing. They
are here to help you to navigate through it by working along with you. IndiaNivesh will
indemnify your protection needs by offering multiple options to help meet those needs.

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METHODOLOGY
Research methodology is the way to systematically solve the research problem. It may be
understood as a science of studying through research. Methods comprise the procedures used
for generating, collecting and evaluating data.
RESEARCH STATEMENT
The research statement of this project is: Security analysis of selected stock with reference to
information technology sector for a period from 1st Jan 2015 to 30th June 2015.
RESEARCH BENEFIT
The Research will help to analyze the stocks the two different ways, namely-Fundamental
analysis and Technical Analysis. Therefore the research carried out will help to look into
various aspects of the company and will help to know which of the company performs best
and gives maximum returns to their stakeholders.
OBJECTIVES OF THE STUDY
 To study fundamental and technical analysis of securities.
 To evaluate the performance of the company based on fundamental analysis.
 To analyze the movement of stock prices using technical analysis.
 To evaluate the risk and return of the selected securities.
LIMITATIONS
 Data considered only for past few months.
 The research will be confined to only 3 securities in the IT sector-INFOSYS, TCS,
WIPRO.
 The availability of information in the form of annual reports and price fluctuations of
the companies was a big constraint of the study.

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NEED OF THE STUDY
The capital gains of an investor are on the performance of a particular company’s stock in the
stock market. The stronger the company’s share, the more profit the investor gets. So it is
necessary to ascertain, analyze and interpret the share of various firms in order to know its
position in the market. Investors can make wise investment with the help of this analysis
through this project, it tries to point out the company which ensure maximum return and
minimum risk in IT sector where in investment could be made.
SCOPE OF THE STUDY
The study is to analyze the financial strength and future investment prospective of the key
players from IT sector of the economy. The fundamental analysis is to determine the value of
the shares. The technical analysis is to predict the future stock behavior. Rational investors
always focus on maximum return which bears minimum risk. Hence, for them, well
diversified equity funds are the superlative opportunity available for the investment. .
RESEARCH DESIGN
The research design selected for this project is descriptive. Descriptive studies are usually
the best methods for collecting information that will demonstrate relationships and describe
the world as it exists. This descriptive study is in which the researcher does not interact with
the participant, it include observational studies of prices in the market and studies involving
data collection using existing records on the same.
TYPE OF DATA
Primary data is collected through direct interactions with branch manager, terminal manager
and clients.
Secondary data is completely gathered from published sources like internet and annual
reports of the said companies. Some of the sources are NSE website, iCharts.com and
Wikipedia
SAMLPE SIZE
The sample size for the project is limited to 3 companies i.e. INFOSYS, TCS and WIPRO.

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REVIEW OF LITERATURE
 Aber John (1976) in his study found that numerous empirical studies have tested the
profitability of technical trading rules in a variety of markets for the purpose of either
uncovering profitable trading rules or testing market efficiency, or both. The technical
trading studies simulated only one or two trading systems. In these studies, although
transaction costs were deducted to compute net returns of technical trading strategies,
risk was not adequately handled, statistical tests of trading profits and data snooping
problems were often disregarded, and out-of-sample verification along with parameter
(trading rule) optimization were not considered in the testing procedure.
 Goodman and John W Peavy (1983) in their study found that there is no way of
making an expected profit by extrapolating past changes in the futures price, by chart
or any other esoteric devices of magic or mathematics. The market quotation already
contains in itself all that can be known about the future and in that sense has
discounted future contingencies as much as is humanly possible.
 Philip O Regan (1988) explained that demonstrated that under a noisy rational
expectations model in which current prices do not fully reveal private information
(signals) because of noise (unobserved current supply of a risky asset) in the current
equilibrium price, historical prices (i.e., technical analysis) together with current
prices help traders make more precise inferences about past and present signals than
do current prices alone
 Brown and David P (1989) in their article explained that results provide evidence for
a “predictive information link” between non-earnings numbers and future earnings
changes. They indicate that some non-earnings numbers do contain information useful
for predicting future earnings changes that is not contained in either past or current
earnings.

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 Edward (1992) found that also extends her test to include a “valuation link” between
the predicted future earnings changes and stock returns during the annual report
dissemination period. She finds evidence that this valuation link does exist. The non-
earnings accounting numbers are therefore useful for predicting both future earnings
and returns.
 Demark and Thomas R (1994) explained that the history of technical analysis dates
back to at least the 18th century when the Japanese developed a form of technical
analysis known as candlestick charting techniques. This technique was not introduced
to the West until the 1970s.
 Hackel and Kenneth S (1996)found that it has been stated that “the task of research is
to discover what information projects future earnings and, from a financial statement
analysis point of view, what information in the financial statements does this”
 Jan R (1998) explained that results show that receivables do provide incremental
information for the prediction of future sales, earnings and profit margins.
 Squires (2000) found that study the value relevance of capital expenditures for
explaining returns beyond the use of current earnings. Their findings show that
changes in the level of capital expenditure were strongly and positively related to
excess returns. This exhibits the fact that current capital expenditure has good news
for the future performance of a firm and supports the use of capital expenditures for
predicting future earnings or returns.
 Thomas Robinson (2002) in their study explained that Fundamental analysis involves
assessing a firm’s equity value based on the analysis of published financial statements
and other information without reference to the prices at which a firm’s securities trade
in the capital markets.

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 Palepu and Krishna (2004) found that technical analysis has been extensively used
among market participants such as brokers, dealers, fund managers, speculators, and
individual investors in the financial industry. 3 Numerous surveys indicate that
practitioners attribute a significant role to technical analysis. For example, futures
fund managers rely heavily on computer-guided technical trading systems, and about
30% to 40% of foreign exchange traders around the world believe that technical
analysis is the major factor determining exchange rates in the short-run up to six
months.
 Prasanna Chandra (2005) explained that Active portfolio management is commonly
partitioned into two types of activities: market timing, which requires forecasts of
broad-based market movements, and security analysis, which requires the selection of
individual stocks that are perceived to be underpriced by the market.
 V K Bhalla (2006) explained that security analysis Psychological and Institutional
Forces and the Determination of Exchange Rates, Neoclassical economists, by their
own admission, have had a terrible time explaining foreign-currency prices. In large
part, this is due to the fact that they assume "economic" behavior to be independent of
social and cultural influences. But markets are social institutions. They "organize and
guide human social behavior through sanctions (formal and informal, negative and
positive), mores, norms, status, and shared worldviews". Consequently, explaining
economic exchange requires an understanding of the behaviour associated with the
subculture of those in question.
 Dhanesh Kumar Khatri (2006) in their article found that a leading technical analyst,
provides a more specific definition: “The technical approach to investment is
essentially a reflection of the idea that prices move in trends that are determined by
the changing attitudes of investors toward a variety of economic, monetary, political,
and psychological forces. 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.”

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 Stephan H Penman (2007) in his study found that Technical analysis includes a
variety of forecasting techniques such as chart analysis, pattern recognit ion analysis,
seasonality and cycle analysis, and computerized technical trading systems.However,
academic research on technical analysis is generally limited to techniques that can be
expressed in mathematical forms, namely technical trading systems, although some
recent studies attempt to test visual chart patterns using pattern recognition
algorithms. A technical trading system consists of a set of trading rules that result
from parameterizations, and each trading rule generates trading signals (long, short, or
out of market) according to their parameter values. Several popular technical trading
systems are moving averages, channels, and momentum oscillators.
 Ran Canetti & IBM Research (2008) explained that Composable Formal Security
Analysis, a security property of a protocol is composable if it remains intact even
when the protocol runs alongside other protocols in the same system. We describe a
method for asserting composable security properties, and demonstrate its usefulness.
In particular, we show how this method can be used to provide security analysis that
is formal, relatively simple, and still does not make un-justified abstractions of the
underlying cryptographic algorithms in use. It can also greatly enhance the feasibility
of automated security analysis of systems of realistic size.
 Prasanna Chandra (2008) in his study he explained that Motivated by an obvious gap
between the widespread use of Bloomberg terminals in the finance industry and the
scant resources available to an instructor on how to incorporate the available
information through the terminal into a finance course, we illustrate our experience
using the terminal in an equity-focused security analysis and portfolio management
course. Our goal is to enable students inexperienced with the terminal to prepare an
analyst report. We identify the most significant challenges we face and provide the
corresponding solutions. Our results are also applicable to other finance courses
including financial analysis, investments, and student managed investment fund.

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INDUSTRY ANALYSIS OF INFORMATION TECHNOLOGY SECTOR
INTRODUCTION
 India is the world's largest sourcing destination for the information technology
industry, accounting for approximately 52 per cent of the US$ 124-130 billion market.
The industry employs about 10 million Indians and continues to contribute
significantly to the social and economic transformation in the country.
 The IT industry has not only transformed India's image on the global platform, but has
also fuelled economic growth by energizing the higher education sector especially in
engineering and computer science. India's cost competitiveness in providing IT
services, which is approximately 3-4 times cheaper than the US, continues to be its
unique selling proposition in the global sourcing market.
 India has emerged as the fastest growing market for Dell globally and the third largest
market in terms of revenue after the US and China, said Mr Alok Ohrie, Managing
Director, Dell India.
MARKET SIZE
 India, the fourth largest base for young businesses in the world and home to 3,000 tech
start-ups, is set to increase its base to 11,500 tech start-ups by 2020, as per a report by
Nasscom and Zinnov Management Consulting Pvt Ltd.
 India’s internet economy is expected to touch Rs 10 trillion (US$ 161.26 billion) by
2018, accounting for 5 per cent of the country’s gross domestic product , according to a
report by the Boston Consulting Group and Internet and Mobile Association of India. In
December 2014, India’s internet user base reached 300 million, the third largest in the
world, while the number of social media users and smart phones grew to 100 million.
 Public cloud services revenue in India is expected to reach US$ 838 million in 2015,
growing by 33 per cent year-on-year, as per a report by Gartner Inc. In yet another
Gartner report, the public cloud market alone in the country was estimated to treble to
US$ 1.9 billion by 2018 from US$ 638 million in 2014. The increased internet
penetration and rise of e-commerce are the main reasons for continued growth of the data
centre co-location and hosting market in India.

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INVESTMENTS
 Indian IT's core competencies and strengths have placed it on the international canvas,
attracting investments from major countries. The computer software and hardware
sector in India attracted cumulative foreign direct investment (FDI) inflows worth
US$ 13,788.56 million between April 2000 and December 2014, according to data
released by the Department of Industrial Policy and Promotion (DIPP).
 The private equity deals increased the number of mergers and acquisitions (M&A)
especially in the e-commerce space in 2014. The IT space, including e-commerce,
witnessed 240 deals worth US$ 3.8 billion in 2014, as per data from Dealogic.
 India also saw a ten-fold increase in the venture funding that went into internet
companies in 2014 as compared to 2013. More than 800 internet start-ups got funding
in 2014 as compared to 200 in 2012, said Rajan Anandan, Managing Director, Google
India Pvt Ltd and Chairman, IAMA.
 Most large technology companies may have so far focused primarily on bigger
enterprises, but a report from market research firm Zinnov highlighted that the small
and medium businesses will present a lucrative opportunity worth US$ 11.6 billion in
2015 and US$ 25.8 billion in 2020. Moreover, India has nearly 51 million such
businesses of which 12 million have a high degree of technology influence and are
looking to adopt newer IT products, as per the report.

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 Some of the major investments in the Indian IT sector are as follows:
 Wipro has won a US$ 400 million, multi-year IT infrastructure management contract
from Swiss engineering giant ABB, making it the largest deal for the technology
company.
 Tech Mahindra has signed a definitive agreement to acquire Geneva-based SOFGEN
Holdings. The acquisition is expected to strengthen Tech Mahindra’s presence in the
banking segment.
 Tata Consultancy Services (TCS) plans to set up offshore development centres in
India for Japanese clients in a bid to boost the company's margin in the market.
 Reliance is building a 650,000 square feet (sq ft) data centre in India—its 10th data
centre in the country—with a combined capacity of about 1 million sq ft and an
overall investment of US$ 200 million.
 Intel Corp plans to invest about US$ 62 million in 16 technology companies, working
on wearable, data analytics and the Internet of Things (IoT), in 2015 through its
investment arm Intel Capital. The Indian IoT industry is expected be worth US$ 15
billion and to connect 28 billion devices to the internet by 2020.
 Keiretsu Forum, a global angel investor network, has forayed into India by opening a
chapter in Chennai. With this, the Silicon Valley-based network will have 34 chapters
across three continents.

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GOVERNMENT INITIATIVES
The adoption of key technologies across sectors spurred by the 'Digital India Initiative' could
help boost India's gross domestic product (GDP) by US$ 550 billion to US$ 1 trillion by
2025, as per research firm McKinsey.
Some of the major initiatives taken by the government to promote ITsector in India are as
follows:
 India and the United States (US) have agreed to jointly explore opportunities for
collaboration on implementing India's ambitious Rs 1.13 trillion (US$ 18.22 billion)
‘Digital India Initiative’. The two sides also agreed to hold the US-India Information
and Communication Technology (ICT) Working Group in India later this year.
 India and Japan held a Joint Working Group conference for Comprehensive
Cooperation Framework for ICT. India also offered Japan to manufacture ICT
equipment in India.
 The Government of Telangana began construction of a technology incubator in
Hyderabad—dubbed T-Hub—to reposition the city as a technology destination. The
state government is initially investing Rs 35 crore (US$ 5.64 million) to set up a
60,000 sq ft space, labeled the largest start-up incubator in the county, at the campus
of International Institute of Information Technology-Hyderabad (IIIT-H). Once
completed, the project is proposed to be the world’s biggest start-up incubator
housing 1,000 start-ups.
 Bengaluru has received US$ 2.6 billion in venture capital (VC) investments in 2014,
making it the fifth largest recipient globally during the year, an indication of the
growing vibrancy of its startup ecosystem. Among countries, India received the third
highest VC funding worth US$ 4.6 billion.

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CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY
FIGURE NO 7: CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY

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IMPACT OT IT SECTOR ON INDINAN ECONOMY
FIGURE NO 8: IMPACT OF IT SECTOR
•8%of Indian GDP
•23-25%of Indian Exports
•7%of India's total FDI share
Contribution to Indian Economy
•50%of the workforse from non Tier-I cities
•30-35% women employees
Empowering the Diverse Human Assets
•78% of the patents filed over last decade
•Growing Reserch and development spend
Creating Onnovative Platform
•Presence in 75 countries with 580delivery centre
•100000 foreign national employed
•380 cross border acquisitions since 2010
Putting India on Globle Map
•Contributing state GDP
•Enhancing Education System
•Employment generation
•Infrastructure Creation
Regional development
•Improved access and Delivery services ,Egovernance solutions,CSR activities
Social Resonsibilty and Inclusive

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SWOT ANALYSIS OF IT SECTOR
STRENGTHS
 Highly skilled, English speaking manpower.
 Cheap workforce than their Western counterparts. According to NASSCOM, the
wages difference is as high as 70-80 percent when compared to other Western
counterparts.
 Lower attrition rates than on the West.
 Dedicated workforce aiming at making a long term career in the area.
 Round-the clock benefit for Western companies due to the huge time difference.
 Lower response time with efficient and effective service.
WEAKNESSES
 Recent months have seen a rise in the level of attrition rates among IT workers who
are quitting their jobs to pursue higher studies. Of late workers have shown a
tendency not to pursue IT as a full-time career.
 The cost of telecom and network infrastructure is much higher in India than in the US.
OPPORTUNITIES
 To capitalize and Ancash on the already established image of India being portrayed as
the most favored IT destination in the world.
 Opportunities for Indian companies to work closely with western Governments and
assure their concerns and issues.
 India can be branded as a quality IT destination rather than a low-cost destination.
THREATS
 The anti-outsourcing legislation in the US state of New Jersey. Three more states in
the US are planning legislation against outsourcing.
 Workers in British Telecom have protested against outsourcing of work to Indian
BPO companies.
 Other IT destinations such as China, Philippines and South Africa could have an edge
on the cost factor.

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 COMPANY ANALYSIS
INFOSYS
 INFOSYS is a Bangalore-based Information Technology MNC which started the IT
revolution in India that transformed Bangalore into the “Silicon Valley of India”.
INFOSYS is a household name in India that is highly respected by employees and the
general public for its strong value system as a corporation.
 INFOSYS defines designs and delivers technology-enabled business solutions for
Global 2000 companies and operates in 64 countries across the world.
 INFOSYS leadership made a strategic decision to return to an increasing return to
scale where the growth rate of revenues and margins are not limited by the growth
rate of input factors like human capital or number of client acquisitions.
 Technology-based automation of different aspects of IT solutions development and
maintenance has helped INFOSYS battle diminishing return to scale. Starting with 7
founders and $250 in 1981, the current size of over 140,000+ employees and $6.6
Billion revenues demon.
 INFOSYS is the second largest IT major in India by revenues and size. TCS,
Cognizant, Wipro, Mahindra Satyam, etc. are some of the Indian competitors of
INFOSYS whereas Accenture, IBM, Capgemini, etc. are the major international
competitors of INFOSYS in the software services sector. Apart from these, thousands
of other small and medium software companies compete with INFOSYS in different
segments for micro chunks of the market.
 INFOSYS is a “knowledge enterprise” which relies primarily on its human capital to
deliver quality services to customers. labour is the Factor Market most critical for its
increased productivity and leadership.

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 INFOSYS has always had the best employee training and leadership fostering
programs in the industry. It has invested heavily in state-of-the-art training facilities
where 14,000 employees can be trained simultaneously.
 It has also established the Infosys Leadership Institute (ILI) which is focused on
breeding the next 3-tiers of leadership. This is comparable with the efforts of world
leaders like GE and IBM in leadership development. It was for these reasons that
Boston Consulting Group named INFOSYS among the Top-10 Value Creators
Technology Companies where it specifically cited that INFOSYS is among the few
companies which align their talent for global advantage. It also places heavy thrust
on the leadership vision and talent management.
 INFOSYS has already launched an initiative in 2010 which is called the Talent 3.0
that is aimed at revolutionizing the way talent is spotted, recruited and retained in the
company with ample opportunities for utilizing their full capabilities on the job. Such
initiatives and investments in infrastructure and capital spending on talent
management will place INFOSYS in a leadership position in the long run.
 In the short run of 3 years i.e. 2012–2015 it will still be struggling with the industry
specific problems of high talent attrition, increased talent acquisition costs and loss of
knowledge capital due to high human capital turnover.
 INFOSYS continued to invest heavily in building up its human capital pool by
recruiting thousands even through the recessionary period. This helped the company
to be better prepared than its competitors when the recessionary clouds lifted and
there was an increased IT spending by businesses across the world.

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WIPRO
 Wipro Limited (Western India Products Limited) is an Indian multinational IT
consulting and System Integration Services Company headquartered in Bangalore,
India. Wipro Limited is a global company provider of comprehensive IT solutions and
services, including Systems Integration, Consulting, Information Systems
outsourcing, IT-enabled services, and R&D services.
 As of March 2015, the company has 158,200 employees servicing over 900 of the
Fortune 1000 corporations with a presence in 67 countries. On 31 March 2015,
its market capitalization was approximately $ 35 Billion, making it one of India's
largest publicly traded companies and seventh largest IT Services firm in the World.
 To focus on core IT Business, it demerged its non-IT businesses into a separate
company named Wipro Enterprises Limited with effect from 31 March 2013. The
demerged companies are consumer care, lighting, healthcare and infrastructure
engineering which contributed approximately 10% of the revenues of Wipro Limited
in previous financial year.
 In Later Part of 2014, Wipro's largest deal in its five decade of history and probably
one of the largest deals in the history of the Information Technology services industry
was the 10 year $ 1.2 billion contract with ATCO, a Canadian Energy & Utilities
corporation based out of Calgary, Alberta. The Deal was spearheaded by Rishad
Premji along with Canadian Team.
 It is also a value added reseller of desktops, servers, notebooks, storage products,
networking solutions and packaged software for international brands.

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 Wipro entered into the technology business in 1981 and has over 140,000 employees
and clients across 54 countries today. Revenues stood at $6.2 billion for the year
ended 31 March 2013, with a repeat business ratio of over 95%.
 The business model at Wipro Technologies Ltd is an industry-aligned customer-
facing model which gives greater understanding of customers’ businesses to build
industry specific solutions.
 Wipro Limited joined hands with a global telecom major KPN (Royal Dutch telecom)
to form a joint venture company "Wipro Net Limited" to provide internet services in
India. The year 2000 was the year Wipro launched solutions for convergent networks
targeted at Internet and telecom solution providers in the names of Wipro OSS Smart
and Wipro WAP Smart. In the same year, Wipro got listed on New York Stock
Exchange. In early 2000 Wipro Vice Chairman Vivek Paul and Azim Premji
approached KPMG Consulting Vice Chairman Keyur Patel and CEO Rand Blazer to
form a mega-outsourcing joint venture between the two organizations.

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TATA CONSULTANCY SERVICES (TCS)

Tata Consultancy Services Limited (TCS) is an Indian multinational information
technology (IT) service, consulting and business Solutions Company headquartered
in Mumbai, Maharashtra. TCS operates in 46 countries.

It is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and
the National Stock Exchange of India. TCS is one of the largest Indian companies
by market capitalization ($80 billion) and is the largest India-based IT services
company by 2013 revenues.

TCS is now placed among the ‘Big 4’ most valuable IT services brands
worldwide. In 2013, TCS is ranked 57th overall in the Forbes World's Most
Innovative Companies ranking, making it both the highest-ranked IT services
company and the first Indian company. It is the world's 10th largest IT services
provider, measured by the revenues.

TCS established the first software research centre in India, the Tata Research
Development and Design Centre, in Pune, India in 1981. TRDDC undertakes research
in Software engineering, Process engineering and systems research.
 In 2007, TCS launched its co-innovation network, a network of innovation labs, start
up alliances, university research departments, and venture capitalists.

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TOOLS AND TECHNIQUES OF FUNDAMENTAL ANALYSIS:
All data stated below is as on 31st march 2015
1) EARNING PER SHARE (EPS):
The portion of a company's profit allocated to each outstanding share of common
stock. Earnings per share serve as an indicator of a company's profitability.
Calculated as:
Net income
Earnings per share = -------------------------------------------
No. per share
PARTICULARS. INFOSYS WIPRO TCS
NET INCOME
(CR) 12164 8193 19256.96
O/S SHARES
( LACS) 11484.72 24690.43 19587.28
EPS
(Rs.) 105.91 33.18 98.31
TABLE 3: SHOWING EARNING PER SHARE

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GRAPH 1: EARNING PER SHARE
INTERPRETATION:
EPS helps to determine the profitability position of the company. As per the
prevailing consideration in the market, higher EPS IS better. Therefore, from the
above graphs it is clear that Infosys is a better investment option with Rs.105.91, as
compared to Wipro and TCS with Rs.33.18 and Rs.98.31 respectively.
105.91
33.18
98.31
0
20
40
60
80
100
120
INFOSYS WIPRO TCS
Earning Per Share
EarningPer Share

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2) PRICE TO EARNING RATIO:
A valuation ratio of a company's current share price compared to its per-share earnings.
Calculated as:
Market value per share
P/E Ratio = ------------------------ -----------------
EPS
PARTICULARS INFOSYS WIPRO TCS
MARKET VALUE 1108.3 541.40 2466.65
EPS 105.91 33.18 98.31
P/E RATIO 10.46 16.31 25.09
TABLE 4: SHOWING PRICE TO EARNING RATIO

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GRAPH 2: PRICE TO EARNING RATIO
INTERPRETATION:
P/E ratio shows how much a rupee of investment can earn in return. As per the
prevailing standards of the industry, lower P/E ratio is considered a better option.
According to the graph above, Infosys has a P/E of 10.46 similarly Wipro and TCS
have a P/E of 16.31 and 25 respectively, therefore Infosys and Wipro can be
considered better option.
10.46
16.31
25
0
5
10
15
20
25
30
INFOSYS WIPRO TCS
P/E RATIO
P/E RATIO

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3) PRICE TO SALES RATIO:
A ratio for valuing a stock relative to its own past performance, other companies or the
market itself. Price to sales is calculated by dividing a stock's current price by its revenue per
share for the trailing 12 months:
Calculated as:
Share price
P/S Ratio = -----------------------------------------------
Revenue per share
The ratio can also be referred to as a stock's "PSR".
Particulars INFOSYS WIPRO TCS
Share price 1108.3 541.40 2466.65
Revenues per share 411.85 166.91 375.64
P/s ratio 2.69 3.24 6.56
TABLE 5: SHOWING PRICE TO SALES RATIO

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GRAPH 3: SHOWING PRICE TO SALES RATIO
INTERPRETATION:
P/S shows the price one pays to earn the revenue. As per the generally accepted standards,
lower P/S is better as it shows the revenue earned on a specific amount invested in the stock.
From the above graph, Infosys has the lowest P/S of 2.69 among the three companies.
2.69
3.24
6.56
0
1
2
3
4
5
6
7
INFOSYS WIPRO TCS
P/S RATIO
P/S RATIO

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4) BOOK VALUE:
The net asset value of a company, calculated by total assets minus intangible assets
(patents, goodwill) and liabilities.
Calculated as:
Total assets – intangible assets & liability
Book value = ----------------------------------------------------------------
Number of shares
Calculations
Particulars INFOSYS WIPRO TCS
Total assets - intangible asset &
liabilities (in cr)
24034.07 34615.98 31564.78
No. of shares (in lacs)
11484.72 24690.43 19587.28
Book value
209.27 140.20 161.14
TABLE 6: SHOWING BOOK VALUE

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GRAPH 4: SHOWING BOOK VALUE
INTERPRETATION:
Book value of a stock is the amount realized per share in case of liquidation of the
company. Any shareholder is expectant to earn a higher amount on the shares
purchased. Thus, a higher book value is considered the best investment. According to
the above chart Infosys has the highest book value per share of Rs. 209.27
209.27
140.2
161.14
0
50
100
150
200
250
INFOSYS WIPRO TCS
BOOK VALUE
BOOK VALUE

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5) PRICE TO BOOK RATIO:
A ratio used to compare a stock's market value to its book value. It is calculated by dividing
the current closing price of the stock by the latest quarter's book value per share.
Also known as the "price-equity ratio"
Calculated as:
Stockprice
Calculated as:-P/B Ratio = ------------------------------------------
Book value
Calculations
Particulars INFOSYS WIPRO TCS
Stock price 1108.3 541.40 2466.65
Book value 209.27 140.20 161.14
P/B ratio 5.09 3.86 15.3
TABLE 7: PRICE TO BOOK VALUE RATIO

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GRAPH5: SHOWING PRICE TO BOOK VALUE RATIO
INTERPRETATION:
A lower P/B ratio could mean that the stock is undervalued. However, it could also
mean that something is fundamentally wrong with the company. As with most ratios,
be aware that this varies by industry. This ratio also gives some idea of whether you're
paying too much for what would be left if the company went bankrupt immediately.
Therefore, a lower P/B ratio is better. From above we can say that Wipro has a better
P/B ratio of 3.86 among the three.
5.09
3.86
15.3
0
2
4
6
8
10
12
14
16
18
INFOSYS WIPRO TCS
P/B RATIO
P/B RATIO

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6) DIVIDEND PAYOUT RATIO:
The portion of EPS which is being declared as actual dividend
Calculated as:
Actual dividend per share
Dividend payout ratio= --------------------------------------------------
Earnings per share
Calculated as:-
PARTICULARS INFOSYS WIPRO TCS
DIVIDEND PER SHARE 59.50 12 79
EPS 105.91 33.18 98.31
DPR 0.56 0.36 0.80
TABLE 8: SHOWING DPR FOR YEAR ENDED 31.3.15
PARTICULARS INFOSYS WIPRO TCS
DIVIDEND PER SHARE 63 8 32
EPS 178.40 29.95 94.17
DPR 0.35 0.26 0.33
TABLE8.1: SHOWING DPR FOR YEAR ENDED 31.3.14

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GRAPH 6: DIVIDEND PAYOUT RATIO
INTERRETATION:
A reduction in dividends paid is looked poorly upon by investors, and the stock price
usually depreciates as investors seek other dividend-paying stocks. A stable dividend
payout ratio indicates a solid dividend policy by the company's board of directors.
From the above chart we can say that wipro company with most stable dividend
payout ratio for two consecutive years.
0.56
0.36
0.8
0.35
0.26
0.33
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
INFOSYS WIPRO TCS
Mar-15
Mar-14

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7) DIVIDEND YIELD:
A financial ratio that shows how much a company pays out in dividends each year
relative to its share price. In the absence of any capital gains, the dividend yield is the
return on investment for a stock. Dividend yield is calculated as follows:
Calculated as:
Annual dividend per share
Dividend yield = -------------------------------------------------
Price per share
PARTICULARS INFOSYS WIPRO TCS
DIVIDEND PER
SHARE
59.50 12 79
PRICE PER SHARE 1108.46 541.40 2466.65
DIVIDEND YIELD 5.36% 2.21% 3.20%
TABLE 9: SHOWING DIVIDEND YIELD RATIO

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GRAPH 7: SHOWING DIVIDEND YIELD RATIO
INTERPRETATION:
The company with the highest dividend yield adds to the income of the shareholder.
From above, we can see that Infosys pays a 5.36% dividend of share price which is
highest among the three. Thus, Infosys is preferable.
5.36%
2.21%
3.20%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
INFOSYS WIPRO TCS
DIVIDEND YEILD
DIVIDENDYEILD

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RISK AND RETURN
GRAPH NO 8: BETA AND RETURN
INTERPRETATION:
The graph shows that the beta of Infosys is 0.70, Wipro is 0.66, and TCS is 0.62.
Beta less than 1 is considered riskier but here the entire three betas are less than one.
So the one which is closer to 1 is can be considered less risky. Therefore Infosys is preferred.
The Yearly return of Infosys and TCS can be considered better than Wipro.
Therefore Infosys and TCS can be preferred.
0
0.5
1
1.5
2
2.5
3
INFOSYS WIPRO TCS
NAME OF COMPANY
Beta
Return

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TECHNICAL ANALYSIS
INFOSYS:
GRAPH 9: INFOSYS TECHNICAL
INTERPRETATION-INFOSYS
10 day moving average is breaking down 20day SMA further short term and medium term
moving average is broken by long term moving average. This indicates major reversal of
trend downside; therefore we can see stock moving down 1100 to level of around 980-1000.
RSI is marching below 50 and facing difficulties in crossing 50 marks above .So I
recommend going short on the stock at level of 1000 for a downtrend target of 960.
A large buy and sell in volume indicates trend reversal. In the above chart there is trend
reversal 2 times.

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WIPRO
GRAPH 10: WIPRO TECHNICAL
INTERPRETATION-WIPRO
The graph is showing a mixed performance. The gap which is formed indicates a reverse in
trend and the trend goes upwards. The movement is again coming down in inverted “U”
shape.
The movement long term SMA is cutting 10 day SMA and 20 day SMA .It has a steep fall
down in the stock value.
The RSI has gone down below 30 when there was steep fall in price. On the other side it can
be seen that RSI is not stable at any point of time.

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TCS
GRAPH 11: TCS TECHNICAL
INTERPRETATION-TCS
The stock has strong resistance at level close to around 2700.it has been successful to break
the resistance only once. Similarly, 2400 acts as a support level for the stock. The stock has
tried to touch the level twice but unable to break it. It indicates that buyers are very active at
level close to 2400.
The stock has moved to consolidation mode for short term. So I recommend a wait and watch
for further indication of a specific trend.
Also RSI is unable to cross level of 70 and 30 and is trading at level of 50.

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FINDINGS
FUNDAMENTAL ANALYSIS
 The most important aspect discovered from this project work is that an in depth
analysis of the stocks is involved in the decision making of which stocks to
buy.
 Given below is a table showing all the tools in a gist to give clearer and better
picture of the analysis.
RATIO’S INFOSYS WIPRO TCS COMPANY
EPS 105.91 33.18 98.31 INFOSYS
P/E RATIO 10.46 16.31 25.09 INFOSYS
PRICE TO
SALES RATIO
2.69 3.24 6.56 INFOSYS
BOOK VALUE 209.27 140.20 161.14 INFOSYS
PRICE TO
BOOK VALUE
RATIO
5.09 3.86 16.3 WIPRO
DIVIDENT
PAYOUT
RATIO
0.35(2014)
0.56(2015)
0.26(2014)
0.36(2015)
0.33(2014)
0.80(2015)
STABILITY WIPRO/INFOSYS
DIVIDEND
YEILD RATIO
5.36% 2.21% 3.20% INFOSYS
TABLE 10: COMPARATIVE ANALYSIS OF STOCK

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 According to above chart we can see that INFOSYS has most of strong ratios.
Therefore we can take INFOSYS to invest as a priority,
 Whereas, WIPRO has strong price to book value ratio and a stable dividend payout
ratio.
 All in all TCS does not have good reflection in any of the case, so it is not a good
option to invest.
 After analyzing these stocks we can see that the best investment option in the priority
order from amongst the chosen samples is:
1) INFOSYS
2) WIPRO
3) TCS
TECHNICAL ANALYSIS
 Technical analysis within a short span is difficult to analyze.
INFOSYS
 The candle stick chart does not show any particular trend. The simple moving average
is mostly showing a down trend where all the averages are breaking each other.
 There are variations in the stock prices and no stability is there
 The RSI does not give any suggestion to hold, buy or sell the stock
WIPRO
 The candle stick charts is mostly in uptrend .It had taken a trend reverse but again
rose up to an extent.
 The averages are moving as per the movement of the stock.
 The RSI is showing a buy signal.
TCS
 The candle stick chart does not show any particular trend. But it has support and
resistance, therefore it is wait and watch situation.
 Averages are colliding with each other, so no clear prediction can be made.
 RSI shows the hold signal.

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CONCLUSION
 The above project is the security analysis of stock of IT sector, namely, Infosys,
Wipro and TCS with the help of various tools and techniques.
 The project helped me gain more knowledge about the useful tools of analysis and its
application. It helped in learning the use of ratios in analyzing the stocks and
performance of the company along with the candle stick charts and tools of technical
analysis.
 Moreover, this project also helped me in understanding the mechanism involved in
the decision making of the investment in stocks. Through this project I got to know
more about the relevance of fundamental analysis and technical analysis in investment
decision. Thus, this was an important and most useful project work.
 It has also helped in knowing about the IT sector, its performance, and impact on
economy. Contribution in economic development etc.
SUGGESSIONS
 Investors must take into account various factors like government of India budget,
company performance, political and social events, climatic conditions etc. before any
decision is made.
 The scrip should also be fundamentally good. Financial market reflects a country’s
economic growth as they supply necessary financial inputs for the development of the
country.
 Technical analysis gives investor a better understanding of the stocks and also gives them
right direction to go on further to buy or sell the stocks. Therefore, the small investors and
traders should not blindly make an investment rather they should analyze using the
various tools to check if the scrip is technically strong.
 Therefore, it’s advisable for a trader or investor to make technical analysis of stocks for
better return of investments.

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BIBLIOGRAPHY:
Books referred:
1) “Security analysis and portfolio management”, 2nd Edition 2013, Punithavathy Pandian.
2) “Technical Analysis Trading”, CNBC, network 18.
WEBSITES REFERRED:
1) http://www.icharts.in
2) http:// www.wikipedia.com
3) http://www.moneycontrol.com
4) http:// www.nseindia.com
5) http://www.investopedia.com
6) http://www.indianivesh.in