This document is a project report on stock trading in the Indian stock exchange. It discusses the benefits of long-term investing in stocks, how to analyze companies using fundamental and technical analysis, and how to track market movements without analyzing each share price individually. The report analyzes specific companies like Tata Motors through ratios and valuation models. It also provides technical analyses of banks like SBI using indicators like RSI, MACD, SMA and EMA to determine entry and exit points. The conclusion suggests investors must understand how stocks trade and use analysis along with expert advice to time their investments well in the volatile stock market.

1. A PROJECT REPORT ON
A STUDY ON
TRADING IN STOCK EXCHANGE
A GREAT GIZMO OF INVESTMENT
INTERNAL GUIDE EXTERNAL GUIDE
Dr. Tulika singh Mr. Bipin Bihari. Dutta
Department of Business Management Asst. Manager
C.V. Raman college of Engineering Bhubaneswar Stock Exchange
PRESENTED BY
BISWAJEET SAMAL
Regd.No.-1506227002
DEPARTMENT OF BUSINESS MANAGEMENT
C.V.RAMAN COLLEGE OF ENGINEERING,BBSR
UNDER THE GUIDANCE OF

2. INTRODUCTION
Indian securities market is a great avenue for investment
 An emerging economic like India brings in the scope of high industrial growth rate opportunities.
 Development of industries in turn would result in wealth appreciation of investors.
 The securities market opens up a wide range of options for investment like- equities, bonds,
debentures, commodities etc.
 The stock exchanges which provide a market for the trade of securities have developed and arranged
strong trading and risk management mechanism ensuring investor protection and continuous service

3. OBJECTIVES:
 To know the benefits of long term investment in stock market.
 To understand when to invest and in which company to invest in order to get maximum return and how
to keep track of the market movements without going through the price of each share in the portfolio.
 To understand how addition and removal of a company’s listed shares affects one’s investment.

4. SCOPE
 The study is focused on the Indian stock market and how a small investor can earn benefit out of it
reducing the risks attached.
 It is based on some tools like fundamental analysis, technical analysis.
 For fundamental analysis stocks of Automobile sector have been selected with 1 companies from each
sector to give an idea of how to analyze sectors
 And select companies for technical analysis four companies have been selected from Banking sector
among the all Bank selected for technical analysis this will help an investor to analyze what is the right
time to enter the market.

5. LIMITATIONS
 The study is limited only to the equity segment of the Indian stock market.
 The study is restricted to 8 companies for fundamental analysis and 4 companies for technical analysis.
 Only two years share price data has been taken to understand the Technical Analysis
METHODOLOGY
Data about stock exchanges and its operations have been collected from the secondary sources like:
Articles from newspapers, magazines, websites of NSE, BSE, online news serving sites like- live mint,
money control etc.
And from primary source like direct interaction with Mr. Bipin Bihari Dutta, Assistant Manager,
Bhubaneswar Stock Exchange, Bhubaneswar.

6. ORGANIZATION BACKGROUND
 NAME:- ODISHA CAPITAL MARKET & ENTERPRISES LTD
(Formerly known as: Bhubaneswar Stock Exchange Ltd.)
 FOUNDED:- 17th April, 1989 as a Company
 FUNCTION AS A STOCK EXCHANGE:- 5th June, 1989
 CIN:- U67120OR1989PL
 REGISTRATION NUMBER 2240
 CLASS OF COMPANY :- PUBLIC
 LOCATION Bhubaneswar (Odisha )
 CHAIRMAN :- Mr . Gopal chandra Nada
 CEO:- Mr. Debraj Biswal
 MANAGERS : Mr. Gadadhar Mishra
 ASST. MANAGER : Mr . Bipin bihari Dutta

7. THEORETICAL FRAMEWORK
Investment
 Investment is an activity that is engaged in by people who have saving ,that is investments are made from
saving.
Investment objectives
 Maximization of return
 Minimization of risk
 Future Planning like- retirement, education & marriage of children
Investment avenues
 Savings Bank Account
 Bank Fixed Deposit
 Post Office Savings Schemes
 PPF
 Life Insurance Policies
 Equity Shares

8. Structural View of Securities Market
There are basically two types of markets for the trade of securities
 Money Market
 Capital Market
Stock Exchange
 A Stock Exchange also called Stock Market or Share Market is a proper place providing necessary market infrastructure for
trading in securities in systematic manner i.e. as per certain rules and regulations.
 In simple words a stock exchange is a market place where investors can buy and sell stocks and other securities like- equities,
bonds, debentures, commodities etc.
 Indian securities market had 2 national and 19 regional stock exchanges.

9. Trading in Stock Exchange
Trading Platform/ Segment
 Stock markets provide a platform for buying and selling of securities like- equities (stocks), bonds and derivatives.
Product Lines of stock exchange
Cash Market Segment
 Equities
 Exchange Traded Funds
 Mutual Funds
 Bonds/Debentures
Derivatives Market Segment
 Equity Derivatives
 Currency Derivatives
 Global Indices Derivatives
 Interest Rate Derivatives
 New Debt Market

10. The Benefits of long term investment in stock market
 Saving Deposit ,
 Fixed Deposit -5year,
 Senior Citizen Saving scheme -5year
 Monthly income Account scheme -.5year,
 National saving scheme-5Year,
 PPF,
 Kisan Vikas Patra
 ,Sukanya samridhi Account Scheme ,
 Share Market-CNX Nifty and Investment in share market.
The various long term and short term investment avenues available in Indian market .

11. A Comparative analysis of all the investment options available on the
basis of their respective returns during the period April,2015-2016
INVESTMENT AVENUES Rate of Return %
Existing Rate of Return
(April1,2015 to March
31,2016)
New Rate of return (April 2016)
Saving Deposit 4% 4%
Fixed Deposit -5year 8.5% 7.9%
Senior Citizen Saving scheme -
5year
9.3% 8.6%
Monthly income Account
scheme -5year
8.4% 7.8%
National saving scheme-5Year 8.5% 8.3%
PPF 8.7% 8.1%
Kisan Vikas Patra 8.7% 7.8%
Sukanya samridhi Account
Scheme
9.2% 8.6%
Share Market-CNX Nifty 16.74%

12. Company Analysis
 Company fundamental and background check
 Ratio analysis which includes growth rate, profitability ratio, liquidity ratio and turnover ratio
 Determination of actual price of its stock by using dividend discount model

13. FUNDAMENTAL ANALYSIS OF “TATA MOTORS”
 Tata Motors Limited is among the largest automobile manufacturing companies in the
world by volume, and has presence across a range of passenger and commercial vehicles
 Valuation Analysis
Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Total Income from Operations
(Rs. Cr.)
1,65,654.5 1,88,817.63 2,32,833.66 2,62,796.33 2,75,561.11
Growth (%) 34.53 % 13.98 % 23.31 % 12.87 % 4.86 %
PAT (Rs. Cr.) 13,573.91 9,862.49 14,104.18 14,059.65 11,108.27
Growth (%) 47.21 % (27.34 %) 43.01 % (0.32 %) (20.99 %)
Earnings Per Share – Basic (Rs. ) 42.58 31.02 43.61 43.44 32.71
Earning Per Share – Weak (Rs. ) 40.71 30.94 43.60 43.43 32.70
Price to Earnings 6.77 8.70 9.66 10.86 11.81

14. Technical Analysis
 Technical analysis is the study of the stock market considering factors related to the supply and demand of
stocks.
 Technical Analysis doesn’t look at underlying earnings potential of a company while evaluating stocks
{unlike fundamental Analysis}.
 It uses charts and computer programs to study the stock’s trading volume and price movements in the hope of
identifying a trend
Technical Analysis of SBI
POINTER
RSI(Relative Strength Index)
MACD(Moving Average Convergence and Divergence)
SMA(Simple Moving Average)
EMA(Exponential Moving Average)

15. Understanding when to invest and in which company to invest in order to get
maximum return and how to keep track of the market movements without
going through the price of each share in the portfolio.
 Fundamental Analysis thus involves three steps .
(i) Economic Analysis
(ii) Industry Analysis
(iii)Company Analysis
Fundamental Analysis or Technical Analysis
Economy Analysis
i. Growth Rates of National Income
ii. Inflation
iii. Interest Rates
iv. Infrastructure
v. Monsoon
vi. Economic and Political Stability

16. RSI(Relative Strength Index)

17. MACD(Moving Average Convergence and Divergence)

18. SMA(Simple Moving Average)

19. EMA(Exponential Moving Average)

20. INDICATOR ANALYSIS
RSI(Relative Strength Index) RSI is 67.9. According to RSI analysis, sbin is
technically strong
MACD(Moving Average Convergence and
Divergence)
MACD: 8.09 and Signal Line: 7.31. According to
MACD analysis, sbin is technically strong.
SMA(Simple Moving Average) According to simple moving average analysis,
sbin is in a strong uptrend. Major support levels
are 252.54, 237.181, 206.8992
EMA(Exponential Moving Average) According to exponential moving average
analysis, sbin is in a uptrend. Support level is at
253.

21. Fundamental Analysis vs Technical Analysis
 Fundamental analysis attempts to evaluation the basic value of a security by evaluating
the fundamental factors affecting the economy, industry and company.
 This tedious process and takes a rather long time to complete the process.
 Technical analysis studies the price and volume movement, in the market.
 And by carefully examining the pattern of these movement, the future price of the stock
predicted.

22. Conclusion and Suggestions
 It is observed from the study that one can make a lot of money by investing his/her money in stocks
or trading in the stock market, but it is not so easy for the new investors.
 The investor must have a firm understanding of stocks and how they are traded in the market or risk
of losing money in a volatile type of investment.
 Technical analysis helps in identifying the best timing of an investment, i.e., the best time to buy or
sell.
 Stocks are volatile. Prices change according to supply and demand.
 Before investing money in to stock market, one should collect information on the past trading data
and observe the movement of share prices through market index, chat, diagrams etc.
 And also take advice of experts in stock market .

23. THANK YOU