Equity analysis Based on technical analysis of stocks

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Dissertation Report
On
Equity Analysis Based on Technical Analysis of Selected Companies
Submitted to the Central University of Karnataka
In partial fulfillment of the requirements of the award of
MBA Degree
Submitted by
GURUNATH
(Reg.No.2015MBA0150)
Under the guidance of
Dr. Mohammad Zohair
(Assistant Professor of Management)
Department of Business Study
School of Business Study
Central University of Karnataka, Kalaburgi
April 2017

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DECLARATION
I hereby declare that the Dissertation report on Equity Analysis Based on Technical analysis of
selected companies is prepared by Gurunath under the guidance of Dr. Mohammad Zohair
is a bonafide work undertaken, submitted to the Department of Business Study, Central
University of Karnataka in partial fulfillment of the requirements of the MBA Degree. It is not
submitted to any other University or institution for the award of any Degree/ Diploma.
Date : Gurunath
Kalburgi Reg. No. 2015MBA0150

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CERTIFICATE
This is to certify that the Dissertation on Equity Analysis Based on Technical analysis of
Selected Companies is based on the Research carried out by Gurunath under my guidance
during the year 2017. This has not been submitted to any other university or Institution for the
award of any degree/ Diploma.
Date :
Kalburgi
Dr. Mohammad Zohair
Assistant Professor of Management
Central University of Karnataka

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CERTIFICATE
This is to certify that the Dissertation Report on Equity Analysis Based on Technical Analysis of
Selected Companies based on the Dissertation carried out by Gurunath under the guidance of
Dr. Mohammad Zohair is submitted to the Department of Business Studies, School of
Business Studies, Central University of Karnataka in partial fulfillment of the requirement of the
MBA Degree. This has not been submitted to any other University or Institution for the award of
any degree / Diploma.
Date:
Place: Kalburgi
Head, Department of Business Studies
Central University of Karnataka

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CONTENTS
Chapter
No.
Chapter Title Page No.
Executive Summary I
01 CHAPTER – 1
Introduction
1-4
02 CHAPTER – 2
Review of Literature
5-16
03 Chapter – 3
Data Analysis and Interpretation 17-57
04 Chapter – 4
Findings and Suggestions
58-60
Bibliography 61

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LIST OF CHARTS
Sl. No. Title Page No.
1 Exponential Moving Average 19-33
2 Trend & Resistance & Support 34-48
3 Candlestick 49-57

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Executive Summery
“Technical analysts believe that the historical performance of
Stocks and markets are indications of future performance”.
Technical Analysis is the forecasting of future financial price movements based on an
examination of past price movements. Technical analysis does not result in absolute predictions
about the future with regard to forecasting. Instead, technical analysis can help investors
anticipate what is "possible" to happen to prices over time. Technical analysis is study of
predicting prices of securities for future the main aim of technical analysis is to generate returns
by charter person decide when to enter and when to exit in the security (buy and sell). Technical
Analysis is of the stock market relating to factors affecting the supply and demand of stocks. It
helps in understanding the intrinsic value of shares and knowing whether the shares are
undervalued or overvalued. The stock market indicators would help the investor to identify major
market turning points. This is a significant technical analysis of selected companies which helps
to understand the price behavior of the shares, the signals given by them and the major turning
points of the market price. This paper is aims at carrying out Technical Analysis of the securities
of the selected companies and to assist investment decisions in this Indian Market.

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Chapter – I
Introduction

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Introduction
A trading system is a systematic method for buying and selling financial instruments with a view
to consistently making money. As such, not only do trading systems require that prices are
predictable but also that the predictable component is financially exploitable. This report
considers the technical analysis method of moving average trading as the basis for a simple stock
trading system.
Technical analysis can be defined as an art and science of forecasting future price base on an
examination of the past price movement. Technical analysis is not astrology for predicting
prices. Technical analysis is based on analyzing current demand –supply of 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.
 Role of Stock Exchange in an Economy
Stock exchanges have multiple roles in the economy. This may include the following.
1) Raising capital for businesses
The Stock Exchange provides companies with the facility to raise capital for expansion through
selling shares to the investing public.
2) Mobilizing savings for investment
When people draw their savings and invest in shares, it leads to a more rational allocation of
resources because funds, which could have been consumed, or kept in idle deposits with banks,
are mobilized and redirected to promote business activity resulting in stronger economic growth
and higher productivity levels of firms.

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3) Corporate governance
By having a wide and varied scope of owners, companies generally tend to improve management
standards and efficiency to satisfy the demands of the stakeholders.
4) Creating investment opportunities for small investors
As opposed to other businesses that require huge capital outlay, investing in shares is open to
both the large and small stock investors because a person buys the number of shares they can
afford.
5) Government capital-raising for development projects
Governments at various levels may decide to borrow money to finance infrastructure projects by
selling bonds. The issuance of such bonds can obviate the need, in the short term, to directly tax
citizens to finance development.

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Stock Exchangesin India
Most of the trading in the Indian stock market takes place on its two stock exchanges:
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been
in existence since 1875. The NSE, on the other hand, was founded in 1992 and started trading in
1994. However, both exchanges follow the same trading mechanism, trading hours, settlement
process, etc. At the last count, the BSE had about 5163 listed firms (as per 2012), whereas the
rival NSE had about 1635(as per July 2013). Out of all the listed firms on the BSE, only about
500 firms constitute more than 90% of its market capitalization; the rest of the crowd consists of
highly illiquid shares.
BSE
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.
Popularly known as "BSE", it was established as "The Native Share & Stock Brokers
Association" in 1875. It was the first stock exchange in the country to obtain permanent
recognition in 1956 from the Government of India under the Securities Contracts (Regulation)
Act, 1956. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and
corporatized entity incorporated under the provisions of the Companies Act, 1956, pursuant to
the BSE(Corporatization and Demutualization) Scheme, 2005 notified by the Securities and
Exchange Board of India (SEBI).Bombay Stock Exchange Limited received its Certificate of
Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12th
August, 2005. The Exchange has succeeded the business and operations of BSE on going
concern basis and its recognition as an Exchange has been continued by SEBI.
It claims to be the world’s fastest stock exchange, with a medium trade speed of 6 microseconds.
The BSE is the words 11th largest stock exchange with overall market capitalization of $1.43
Trillion Of March 2016.

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Chapter – II
Review of Literature

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What is 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.
How it works
Technical analysis is done on the basis of historical price movement plotted on a two-
dimensional chart. One reason it has become popular is that anybody can look at the chart and
see how prices have moved.
For example, in the chart, Easy Reading, you can see open, high, low and closing prices of the
BSE (Bombay stock exchange) sensex
PRICE FIELDS
Technical analysis is based almost entirely on the analysis of price and volume. The fields which
define a
security's price and volume are explained below.
Open- This is the price of the first trade for the period (e.g., the first trade of the day). When
analyzing daily data, the Open is especially important as it is the consensus price after all
interested parties were
able to "sleep on it."
High - This is the highest price that the security traded during the period. It is the point at which
there were more sellers than buyers (i.e., there are always sellers willing to sell at higher prices,
but the High represents the highest price buyers were willing to pay).
Low - This is the lowest price that the security traded during the period. It is the point at which
there were more buyers than sellers (i.e., there are always buyers willing to buy at lower prices,
but the Low represents the lowest price sellers were willing to accept).

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Close - This is the last price that the security traded during the period. Due to its availability,
the Close is the most often used price for analysis. The relationship between the Open (the first
price) and the Close (the last price) are considered significant by most technicians. This
relationship is emphasized in candlestick charts.
Volume - This is the number of shares (or contracts) that were traded during the period. The
relationship between prices and volume (e.g., increasing prices accompanied with increasing
volume) is important
Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding and also for
selling shares. He advised the investors to buy shares of a growing company of a growing
industry. Buy shares by diversifying in a number of growth companies operating in a different
but equally fast growing sector of the economy. He suggested selling the shares the moment
company has or almost reached the peak of its growth. Also, sell the shares the moment you
realise you have made a mistake in the initial selection of the shares. The only option to decide
when to buy and sell high priced shares is to identify the individual merit or demerit of each of
the shares in the portfolio and arrive at a decision.
Eugene F. Fama (1965) has answered the questions to what extend can the past history of a
common stock price can be used to make meaningful predictions concerning the future prices of
the stock? The theory of random walk on stock prices is studied with two hypotheses. They are i)
Successive price changes are independent and ii) The price changes conform to some probability
distribution. The data for this study consists of daily prices for each of the thirty stocks of the
Dow –Jones industrial average. This study concludes that there is strong and voluminous
evidence in favor of random walk theory.
DOW THEORY
The ideas of Charles Dow, the first editor of the Wall Street Journal, form the basis of technical
analysis today. Charles Dow created the Industrial Average, of top blue chip stocks, and a second
average of top railroad stocks (now the Transport Average). He believed that the behavior of the
averages reflected the hopes and fears of the entire market. The behavior patterns that he
observed apply to markets throughout the world.

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Objectives
 To analyze the performance of selected companies in Indian stock market and to predict
the future trends in the share prices through technical analysis
 Technical analysis on selected stocks and interpret on whether to buy or sell
 To suggesting the investors in making investment decision in selected stocks.
 To Study the equity timing of investment.
Limitation of the Study.
 The report is on prediction there is not confirm condition.
 Price will be predict on the basis of historical data it may not be accurate price.
 Technical analysis study used for only short term decision making.
 The analysis focused on five companies.
Statement of the Problem.
Many of the people always want to know about the stock market, “How do I make money
investing in stock market” there are 2 different approaches 1. Fundamental Analysis and 2.
Technical analysis. For all the investors it’s not possible of fundamental analysis because the
fundamental analysis refers to analyzing company’s financial statements, economic analysis and
factor which is effect to the companies.
The investor wants to make money in short duration of time by using the knowledge and
opportunity by investing in stock market but they will fail making a correct decision. They will
face difficulties while making a investment decision.
The Technical analysis study will help to the investor making a investment decision by analyzing
the previous movement of stock prices and expecting the good return.

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Research Methodology
The study aims that analyzing the price movements of selected company’s scrip. As the study
describes the existing fact and figures given in the financial statement and the price movements
of the selected companies, the research design followed is descriptive and analytical in nature.
For Technical analysis, secondary data the share price movements of the selected companies in
BSE were absorbed for 6 months of period from March 2016 to march 2017.
METHODS OF DATA COLLECTION:
SECONDARY DATA:
The study is purely based on secondary data. The secondary data are those which have already
been collected by someone else and which have already been passed through the statistical
process. The methods of collecting secondary data are published data or unpublished data. It
takes short time and relatively low cost.
Selecting the sample
I have selected five sectors which are performing in the BSE 30 index, these companies are
essentially performing in the country. The sample size is five companies four from Automobile
sector, four from Banking sector, four from pharmaceutical sector, three from IT sector, these
companies are highly sensitive companies.
Sample Size
 M&M motor
 TATA Motors Ltd
 Hero Ltd
 M Suzuki
 Axis Bank
 SBI Bank

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 HDFC Bank
 ICICI
 Cipla
 Dr Reddy
 Sunpharma
 Lupin
 Infosys
 TCS
 Wipro
Technical Analysis Tools :
Share Prices do not rise or fall in straight lines. The movements are erratic. This makes it
difficult for the analysis to gauge the underlying trend.
In Technical analysis the stock prices movement there are five tools are their like trend
analysis, candlesticks analysis, and some indicators, indicator includes the moving averages,
Oscillators, Rate of change indicator, Relative Strength index, Moving average Convergence and
Divergence, etc
In the restriction of time I have selected some tools which are helpful to make a investment
decision by using the,
SelectedTool
 Moving Average
 Trend Analysis
 Supportand Resistance
 Candle stick

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Moving Average
Most chart pattern show a lot of variance in price movement. This can make it difficult for traders to get
an idea of a securities overall trade. One simple method traders use to combat this is to apply moving
average. A moving average is the average price of a security over a set amount of time. They smooth a
data series and made easier to spot trends, something that is especially helpful in volatile market.
The two type of most moving averages are.
1. Simple moving average
2. Exponential moving average
Simple moving average:
A Simple moving average is formed by computing the average (mean) price of a security over a specified
number of periods. For example: a 5 –day moving average is calculated by adding the closing prices for
the last 5 days and dividing the total by 5.
Exponential Moving average:
Exponential moving average is the moving average that is formed by applying weight to the recent price
changes.
For the calculation I have taken 5 period and 20 period of Exponential Moving Average.
EMA (Current) =((Currentprice - EMA prev) * Factor + EMA(prev)
The formula for the smoothing constant is:
Factor =2/ (1+N)
Where,
N= number of periods for EMA
Current price – Current Closing Price
EMA Prev – previous Exponential Moving Average

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CHART PATTERN
Primary Phases of Movements
Secondary movements normally retrace from one-third to two thirds of the primary trend since
the previous secondary movement.
Daily fluctuations are important for short-term trading, but are unimportant in analysis of broad
market movements.
Primary Movements have Three Phases
1. Bull markets
 Bull markets commence with reviving confidence as business conditions improve.
 Prices rise as the market responds to improved earnings Rampant speculation dominates
the market and price advances are based on hopes and expectations rather than actual
result.
2. Bear markets
 Bear markets start with abandonment of the hopes and expectations that sustained
inflated prices.
 Prices decline in response to disappointing earnings.
 Distress selling follows as speculators attempt to close out their positions and securities
are sold without regard to their true value.
3. Ranging Markets
 A secondary reaction may take the form of a ‘line’, which may endure for several weeks.
 Price fluctuates within a narrow range of about five percent.
 Breakouts from a range can occur in either direction.
 Advances above the upper limit of the line signal accumulation and higher prices;

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 Declines below the lower limit indicate distribution and lower prices;
 Volume is used to confirm price breakouts.
Bull Trends
 A bull trend is identified by a series of rallies where each rally exceeds the highest point
of the previous rally. The decline, between rallies, ends above the lowest point of the
previous decline.
 Successive higher highs and higher lows
The start of an uptrend is signaled when price makes a higher low (trough), followed by a rally
above the previous high (peak):
Start = higher Low + break above previous High.
The end is signaled by a lower high (peak), followed by a decline below the previous low
(trough)
End = lower High + break below previous Low.

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Bear Trends: A bear trend starts at the end of a bull trend: when a rally ends with a lower peak
and then retreats below the previous low. The end of a bear trend is identical to the start of a bull
trend. Each successive rally fails to penetrate the high point of the previous rally. Each decline
terminates at a lower point than the preceding decline.
Successive lower highs and lower lows
Large Corrections: A large correction occurs when price falls below the previous low (during a
bull trend) or where price rises above the previous high (in a bear trend).
A bull trend starts when price rallies above the previous high,
A bull trend ends when price declines below the previous low,

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A bear trend starts at the end of a bull trend (and vice versa).
Support and resistance: Support and resistance are price levels at which movement should stop
and reverse direction. Think of support/resistance (S/R) as levels that act as a floor or a ceiling to
future price movements.
Support - A price level below the current market price, at which buying interest should be able
to overcome selling pressure and thus keep the price from going any lower.
Resistance - A price level above the current market price, at which selling pressure should be
strong enough to overcome buying pressure and thus keep the price from going any higher. One
of two things can happen when a stock price approaches a support/resistance level. On the one
hand, it can act as a reversal point: in other words, when a stock price drops to a support level, it
will go back up. On the other hand, S/R levels may reverse roles once they are penetrated.
Candlestick charting: Candlestick charts have been around for hundreds of years. They are
often referred to as “Japanese candles” because the Japanese would use them to analyze the price
of rice contracts.
Similar to a bar chart, candlestick charts also display the open, close, daily high and daily low.
The difference is the use of color to show if the stock went up or down over the day.
Investors seem to have a "love/hate" relationship with candlestick charts. People either love them
and use them frequently or they are completely turned off by them. There are several patterns to
look for with candlestick charts - here are a few of the popular ones and what they mean.
This is a bullish pattern - the stock opened at (or near) its low and closed near its high

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The opposite of the pattern above, this is a bearish pattern. It indicates that the stock
opened at (or near) its high and dropped substantially to close near its low.
Known as "the hammer", this is a bullish pattern only if it occurs after the stock price
has dropped for several days. A small body along with a large range identifies a hammer. This
pattern indicates that a reversal in the downtrend is in the works.
Known as a "star”. For the most part, stars typically indicate a reversal and or indecision.
There is a possibility that after seeing a star there will be a reversal or change in the current
trend.

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Chapter – III
DATA Analysis and Interpretation

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Analysis
A. Moving Average.
B. Trend Analysis & Resistance & Support.
C. Candle Stick Analysis
I. Automobile Sector
 TATA Motors
 Mahindra & Mahindra
 Bajaj Auto
 Maruti Suzuki
II. Banking Sector
 Axis Bank
 HDFC Bank
 ICICI Bank
 SBI
III. Pharmaceutical Sector
 Sun Pharmaceutical
 Cipla
 DR. Reddy Laboratory
 Lupin
IV. IT Sector
 Tata Consultancy Services
 Wipro
 Infosys

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1. Mahindra and Mahindra Limited
Interpretation:
 The red line curve indicating the 20 period Exponential Moving average.
 Blue line curve indicating the 5period Exponential Moving average.
 Where the two line cross that is The Buy and Sell Sign.
 Red arrow mark shows the sell sign.
 Green arrow mark shows the buy sign.

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2. TATA MOTORS Limited
Interpretation:
 Exponential moving average show the faster upward and downward signs.
 Where the both curve of 20 period and 5 period crossing from upward that is the sell
sign.
 Where the both curve of 2 period and 5 period crossing from downward that is the
buy sign.
 For short term trading from May 2016 to October 2016 it has given good return.
 According to this moving average analysis the price going to fall so we have to sell
the stocks.

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3. Hero Motocorp Limited
Interpretation:
 This has a more volatile in nature.
 The cross over moving average is showing good movement of future price.
 If investor willing to take a high risk by predicting it may start to rise the price
movement, he may get good return but the possibilities is less.

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4. Maruti Suzuki India Limited
Interpretation:
 It cross over shows the faster buy and sell signals compare to simple moving average.
 Exponential moving cross shows immediate buy and sell signals.
 Now the chances price may fall selling the stock is good.

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5. Axis Bank Limited
Interpretation:
 Here this signals showing good earning from the invest decision.
 The company has more volatile it give good earning.
 As per this analysis the buy indicator showing the investor need to buy.

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6. State Bank of India Limited
Interpretation:
 The indicator is showing that buy sign and need to buy the stock.

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7. HDFC Bank Limited
Interpretation:
 According to this analysis the who entered they need to hold the stock still it show the
sell sign.
 Now purchasing the stock is not good.

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8. ICICI Bank Limited
Interpretation:
 This company has high volatile.
 Investment in this company will give good return.
 Here the exponential curves will not give expected returns.

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9. Cipla Limited
Interpretation:
 The Analysis Showing curve showing that the movement of sell the stocks.

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10. DR. Reddy Laboratories
Interpretation:
 Here the indicator showing the decrease of price.

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11. Sun pharmaceutical Limited
Interpretation:
 The curves showing that from August it continuously it decreasing.
 The Indicator showing the sell sign the investor need to sell the stock.

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12. Lupin limited
Interpretation:
 This company has high volatility, according to study of risk the high volatility give
good return.
 The indicator showing the sell sign means the price of stock is falling.
 Here the only moving average will not give accurate decision we need to look another
tool as well.

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13. Infosys Limited
Interpretation:
 Here the curves showing that the prices of stock are continuously decreasing.
 The indicator like buy and sell sign are showing good.
 According to this analysis the investor need to sell the stock.

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14. Tata Consultancy Service Limited
Interpretation:
 It has more volatile
 Here making with one indicator analysis is not good decision.
 Now the indicator showing that the price will decrease.

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15. Wipro Limited
Interpretation:
 According to psychological prediction with reference to this chart the situation of
stock it will decrease in price this is up to investor risk taking capacity.
 According to this chart the investor need to wait up to show the buy sign( intercepting
the both Exponential Moving average curve).

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Trend, Support and Resistance analysis
Automobile Sector.
1. Mahindra and Mahindra Limited
Interpretation:
 In this chart the red vertical line shows support level for the period of July to August.
 Here July to August it showing horizontal trend their the support level is 1440 and
resistance level is 14480.
 If it cross downward of support it became bearish trend. From January to it became
the bullish trend.

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2. Tata Motors Limited.
Interpretation:
 In this chart red colour marks (line) is showing that the bearish trend. And in
December it changes to bullish.
 After reaching resistance level and it reversed the trend.

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3. Hero Motocrop Limited
Interpretation:
 The dark blue horizontal line showing the support level.
 Indigo colour showing that the resistance level.
 From May 2016 to September 2017 it showing bullish trend. And from September
2016 to it reversed trend.

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3. Maruti Suzuki Limited
Interpretation:
 From December 2016 to January 2017it is showing bullish trend.
 From January onwards it showing horizontal trend, With support and Resistance.

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Banking Sector
1. Axis Bank Limited
Interpretation:
 From March 2016 to September 2016 it showing the bullish trend.
 After it reversed trend up to December2016.

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2. HDFC Bank Limited
Interpretation:
 It is moving with bullish trend from May 2016 to October 2016.
 It is horizontal trend in December 2016.
 Again from January 2017 it became bullish trend.
 From December 2016 to January 2017 the red line showing support and resistance.

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3. ICICI Bank Limited
Interpretation:
 The purple colour trend showing bullish trend.
 Red colour horizontal line showing support level line.
 Light blue colour line showing the resistance level for period of July 2016.
 The Resistance line became support line for the period September 2016 to December
2016.

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4. State Bank of India Limited
Interpretation:
 It showing the bullish trend from January 2016 to April 2017.
 It is short term - trend line.

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Pharmaceutical Sector
1. CIPLA Limited
Interpretation:
 The chart showing the Bullish trend from Jun 2016 to September 2016.
 From October 2016 to November 2016 it showing bearish trend.
 From December 2016 it became short – term trend.

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2. Dr.Reddy Laboratory Limited
Interpretation:
 The purple horizontal line shows the support level for May 2016 to Jun 2016 and
November 2016 to February 2017.
 The red two lines showing the bearish trend means from November 2017 the market
is declining.

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3. Sun Pharmaceutical Limited
Interpretation:
 From Jun 2016 to August 2016 it is showing the Bullish trend.
 From august it is moving with bearish trend.
 The green showing the Support & Resistance level.

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4. Lupin Limited
Interpretation:
 In this chart the prices moving bullish trend from Jun 2016 to July 2017.
 From July to it reversed to bearish trend.
 The red colour horizontal line showing the support level.
 The dark green showing the resistance level.

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IT Sector
1. Infosys Limited
Interpretation:
 The chart showing the bearish trend from Jun 2016 to November 2017.
 From December 2016 to April 2017 it maintaining the support and resistance.

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2. Tata Consultancy Limited
Interpretation:
 The dark green colour horizontal line showing resistance level for the period April
2016 to August 2016. And blue colour line showing support level for same
period.
 The blue colour line reversed from support to resistance for the period September
2016 to October 2016.
 The red horizontal line showing the support level line for December 2016 to
February 2017.
 The Analysis says that the price will move to bearish trend.

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3. Wipro Limited
Interpretation:
 The chart showing long – term bearish trend.

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Candlestick analysis
Mahindra and Mahindra Limited
Interpretation:
 It has a large black body followed by a Doji.
 It is considered as a reversal signal when it appears at the bottom.

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TATA Motors Limited
Interpretation:
 The two body of candlestick farmed same in top level it means next price will fall.
 The prices fall may be minor portion or major portion but price will fall.

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DR. Reddy Labouratory Limited
Interpretation:
 It consist of a large white body candlestick followed by a small body candlestick
(black or white) that gaps above the previous.
 The third is a black body candlestick that closes wee within the large white body .
 It is consider as a reversal signal when it appears at top(resistance) level.

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Sun PharaceuticalLimited
Interpretation:
 A candlestick is formed with a lower tail that has a length of 2/3 or more of the
total range of the candlestick.
 It is consider as a bullish signal when it appear around price support level.

59 | P a g e
Infosys Limited
Interpretation:
 It consists of an unusually large white body followed by a small black body
(continued within large white body).
 It is considered as a bearish pattern when preceded by an uptrend.

60 | P a g e
Lupin Limited
Interpretation:
 It consist of a large black body candlestick followed a small body (black or white)
that occurred below the large black body candlestick.
 On the following day, a third white body candlestick formed that closed well into
the black body candlestick.
 It is considered as a major reversal signal when it appears at bottom(support
level).

61 | P a g e
Wipro Limited
Interpretation:
 A black or a white candlestick consists of a small body near the high with a little
or no upper shadow and a long lower tail.
 It is consider as a bullish pattern during a down trend.

62 | P a g e
Axis Bank Limited
Interpretation:
 It consist of a large white body candlestick followed by a small body candlestick
that gaper above the previous.
 The third is a black body candlestick that closes well within the large white body.
 It is consider as a reversal signal when it is appear at resistance level.

63 | P a g e
ICICI Bank
Interpretation:
 It has a large black body followed by a doji.
 It is consider as a reversal when it appear at the support level.

64 | P a g e
Chapter – IV
Findings and Suggestions

65 | P a g e
Findings:
Based on the analysis done the findings and suggestion which I found mentioned bellow.
Automobile Sector.
 Who purchased M&M in Jan 2017 that will be in month of March it will give good
return.
 In TAT Motors prices the moving average will not give accurate position.
 The Hero motor will give good return.
 The chances of raise price in Hero motor.
Banking.
 The Axis Bank will give good return in short term and in April 217 Chances of fall of
price so selling the stock is good option.
 The SBI is showing the more buy and sell signals the investors will get confuse.
 Who entered in HDFC Bank in the month of Jan 2017 They need to exist.
 Investing short term ICICI Bank investment is good.
 For long term Investment the SBI is good.
Pharmaceutical Sector.
 Cipla from Jan 2016 to April 2017 it has given good return, now the chance to fall the
exiting is good option.
 DR. Reddy in July 2016 it has given good return.
 Lupin stock price is chances to fall.
IT Sector.
 Infosys price is continuously falling.
 Now the Infosys is good to enter in investment.
 In TCS the moving average will not give accurate positions.
 Who invested in Wipro in Feb 2017 they need to exit.

66 | P a g e
Suggestion:
 Only using by Moving average we cannot make a 100% prediction.
 using only one tool it will not give the accurate the positions for investors they need to
use more than 2 tools.
 In an investment Diversification is most important.
 Don’t invest in one stock.
 For short term trade don’t trade fully in high volatile shares.
 For making investment decision at least we need to see moving average, trends, and
support and resistance.
 And the other factors also very important in investment decisions.

67 | P a g e
Bibliography
 WWW.BSE.Com
 WWW.stockcharts.com
 www.investopedia.com
 www.investarindia.com
 www.yahoofinance/historicaldata.com
 http://code.pediapress.com
 S. Kevin Book

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