Technical analysis of stocks of Private banks

TECHNICAL ANALYSIS OF
STOCKS OF PRIVATE BANKS
BY
RUPAL ROUT
ROLL NO
2013MBA006
A PROJECT REPORT
UNDER THE GUIDANCE OF
MRs. APEKSHA SAHAY
(FACULTY IN FINANCE)
SUBMITTED TO THE
DEPARTMENT OF I-MBA
In Partial fulfillment for the award of the degree of
INTEGRATED MASTER OF BUSINESS ADMINSTRATION
B.J.B AUTONOMOUS COLLEGE
BHUBANESWAR

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Technical analysisof private banks
ACKNOWLDEGEMENT
I would like to thank MRS. Apeksha Sahay who helped me with her deep knowledge and
experiences which made me to understand the depth of the topic.
And finally thankful to all faculty members for rendering their valuable guidance to prepare the same
and all my friends and my family specially my father for their encouragement and support extended
to me during the course of my project.
DATE- RUPAL ROUT
PLACE-BHUBANESWAR 2013MBA006

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DECLARATION
I Rupal Rout, do here by, declare that this project report entitled “TECHNICAL ANALYSIS OF
STOCK OF PRIVATE BANKS” submitted for the partial fulfilment of MBA to BJB autonomous
college, Bhubaneswar, affiliated to Utkal University is at my own and original work during 10th
semester of 5th year, and has been carried out under the guidance of MRS. Apeksha Sahay, faculty of
finance, IMBA dept, Bhubanewar.I also declare that the facts and figures presented in this project are
true to my knowledge and information.
NAME-RUPAL ROUT
ROLL NO-2013MBA006

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CERTIFICATE
It is certified that the project report titled “TECHNICAL ANALYSIS OF STOCKS PRIVATE
SECTOR BANKS” is the bonafide work of RUPAL ROUT bearing roll no-2013MBA006 who
carried out the work under my supervision .Certified further that to the best of my knowledge the
work reported her in does not form any part of any project work or dissertation on basis of which a
degree or award is conferred on an earlier occasion on this or any other candidate.
Signature of student Signature of internal guide
Name- Mrs. Apeksha sahay
Faculty of Finance & Account

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EXECUTIVE SUMMARY
Technical Analysis is a study of the stock market relating to factors affecting the supply and demand
of stocks and also helps in understanding the intrinsic value of shares and to know 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 behaviour of the shares, the signals given by them and the major turning points
of the market price. Any investor or trader must certainly consider technical analysis as a tool
whether to buy the stock at a particular point of time though it is fundamentally strong. The objective
of the present project is to make a study on the technical analysis on selected stocks of energy sector
and interpret on whether to buy or sell them by using techniques. This in turn would help investors to
identify the current trend and risks involved with the scrip on par with market. The study is purely
based on secondary sources which includes the historical data available from the website.For the
purpose of analysis, techniques like Beta, Relative Strength Index and Simple Moving average is
used for the analysis to know if the stock is technically strong.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY
PAGE NO
CHAPTER 1:INTRODUCTION 10-27
CHAPTER 2:COMPANY PROFILE 28-30
CHAPTER 3: LITERATURE REVIEW 31-32
CHAPTER 4: RESEARCH METHODOLOGY 33-35
CHAPTER 5;DATA ANALYSIS , INTERPRETATION 36-64
AND OBSERVATION
CHAPTER 5: FINDINGS & SUGGESTION 65-71
CHAPTER 6: CONCLUSION & LIMITATION 72-74
CHAPTER 7: ANNEXURE & BIBLIOGRAPHY 75-80

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CHAPEPTER – 1
INTRODUCTION

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Objective of the study-
To analyze the technical charts of 10 private banks for the period of one year.
To analyze the moving average of charts.
To analyze the MACD of private banks.
To analyze Relative strength index and Rate of change trends.
To compare the candlestick analysis of banks.

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INTRODUCTION
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 data (or as John Murphy

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calls it, “market action”) refers to any combination of the open, high, low, close, volume, or open
interest for a given security over a specific timeframe. The timeframe 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.
Key Assumptions of Technical Analysis
Technical analysis is applicable to securities where the price is only influenced by the forces of
supply and demand. Technical analysis does not work well when other forces can influence the
price of the security. In order to be successful, technical analysis makes three key assumptions
about the securities that are being analyzed:
 High Liquidity - Liquidity is essentially volume. Heavily-traded stocks allow investors to trade
quickly and easily, without dramatically changing the price of the stock. Thinly-traded stocks
are more difficult to trade, because there aren't many buyers or sellers at any given time, so
buyers and sellers may have to change their desired price considerably in order to make a trade.
In addition, low liquidity stocks are often very low priced (sometimes less than a penny per
share), which means that their prices can be more easily manipulated by individual investors.
These outside forces acting on thinly-traded stocks make them unsuitable for technical
analysis.
 No Artificial Price Changes - Splits, dividends, and distributions are the most common
“culprits” for artificial price changes. Though there is no difference in the value of the
investment, artificial price changes can dramatically affect the price chart and make technical
analysis difficult to apply. This kind of price influence from outside sources can be easily
addressed by adjusting the historical data prior to the price change.
 No Extreme News - Technical analysis cannot predict extreme events, including business
events such as a company's CEO dying unexpectedly, and political events such as a terrorist
act. When the forces of “extreme news” are influencing the price, technicians have to wait
patiently until the chart settles down and starts to reflect the “new normal” that results from
such news.
It is important to determine whether or not a security meets these three requirements before
applying technical analysis. That's not to say that analysis of any stock whose price is influenced
by one of these outside forces is useless, but it will affect the accuracy of that analysis.
The Basis of Technical Analysis
At the turn of the century, the Dow Theory laid the foundations for what was later to become
modern technical analysis. Dow Theory was not presented as one complete amalgamation, but
rather pieced together from the writings of Charles Dow over several years. Of the many theorems
put forth by Dow, three stand out:
 Price Discounts Everything
 Price Movements Are Not Totally Random
 “What” Is More Important than “Why”

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Price Discounts Everything
This theorem is similar to the strong and semi-strong forms of market efficiency. Technical
analysts believe that the current price fully reflects all information. Because all information is
already reflected in the price, it represents the fair value, and should form the basis for analysis.
After all, the market price reflects the sum knowledge of all participants, including traders,
investors, portfolio managers, buy-side analysts, sell-side analysts, market strategist, technical
analysts, fundamental analysts and many others. It would be folly to disagree with the price set by
such an impressive array of people with impeccable credentials. Technical analysis utilizes the
information captured by the price to interpret what the market is saying with the purpose of
forming a view on the future.
Prices Movements are not Totally Random
Most technicians agree that prices trend. However, most technicians also acknowledge that there
are periods when prices do not trend. If prices were always random, it would be extremely difficult
to make money using technical analysis. In his book, Schwager on Futures: Technical Analysis,
Jack Schwager states:
“One way of viewing it is that markets may witness extended periods of random fluctuation,
interspersed with shorter periods of non-random behavior. The goal of the chartist is to identify
those periods (i.e. major trends).”
A technician believes that it is possible to identify a trend, invest or trade based on the trend and
make money as the trend unfolds. Because technical analysis can be applied to many different
timeframes, it is possible to spot both short-term and long-term trends. The IBM chart illustrates
Schwager's view on the nature of the trend. The broad trend is up, but it is also interspersed with
trading ranges. In between the trading ranges are smaller uptrends within the larger uptrend. The
uptrend is renewed when the stock breaks above the trading range. A downtrend begins when the
stock breaks below the low of the previous trading range.

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Many technicians employ a top-down approach that begins with broad-based macro analysis. The
larger parts are then broken down to base the final step on a more focused/micro perspective. Such
an analysis might involve three steps:
1. Broad market analysis through the major indices such as the S&P 500, Dow Industrials,
NASDAQ and NYSE Composite.
2. Sector analysis to identify the strongest and weakest groups within the broader market.
3. Individual stock analysis to identify the strongest and weakest stocks within select groups.
The beauty of technical analysis lies in its versatility. Because the principles of technical analysis
are universally applicable, each of the analysis steps above can be performed using the same
theoretical background. You don't need an economics degree to analyze a market index chart. You
don't need to be a CPA to analyze a stock chart. Charts are charts. It does not matter if the
timeframe is 2 days or 2 years. It does not matter if it is a stock, market index or commodity. The
technical principles of support, resistance, trend, trading range and other aspects can be applied to
any chart. While this may sound easy, technical analysis is by no means easy. Success requires
serious study, dedication, and an open mind.
Chart Analysis
Technical analysis can be as complex or as simple as you want it. The example below represents a
simplified version. Since we are interested in buying stocks, the focus will be on spotting bullish
situations.

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Overall Trend: The first step is to identify the overall trend. This can be accomplished with trend
lines,moving averages or peak/trough analysis. For example, the trend is up as long as price
remains above its upward sloping trend line or a certain moving average. Similarly, the trend is up
as long as higher troughs form on each pullback and higher highs form on each advance.
Support: Areas of congestion and previous lows below the current price mark the support levels. A
break below support would be considered bearish and detrimental to the overall trend.
Resistance: Areas of congestion and previous highs above the current price mark the resistance
levels. A break above resistance would be considered bullish and positive for the overall trend.
Momentum: Momentum is usually measured with an oscillator such as MACD. If MACD is above
its 9-day EMA (exponential moving average) or positive, then momentum will be considered
bullish, or at least improving.

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Buying/Selling Pressure: For stocks and indices with volume figures available, an indicator that
uses volume is used to measure buying or selling pressure. When Chaikin Money Flow is above
zero, buying pressure is dominant. Selling pressure is dominant when it is below zero.
Relative Strength: The price relative is a line formed by dividing the security by a benchmark. For
stocks, it is usually the price of the stock divided by the S&P 500. The plot of this line over a
period of time will tell us if the stock is outperforming (rising) or underperforming (falling) the
major index.
The final step is to synthesize the above analysis to ascertain the following:
 Strength of the current trend.
 Maturity or stage of the current trend.
 Reward to risk ratio of a new position.
 Potential entry levels for a new long position.
Top-Down Technical Analysis
For each segment (market, sector, and stock), an investor would analyze long-term and short-term
charts to find those that meet specific criteria. Analysis will first consider the market in general,
perhaps the S&P 500. If the broader market were considered to be in bullish mode, analysis would
proceed to a selection of sector charts. Those sectors that show the most promise would be singled
out for individual stock analysis. Once the sector list is narrowed to 3-4 industry groups, individual
stock selection can begin. With a selection of 10-20 stock charts from each industry, a selection of
3-4 of the most promising stocks in each group can be made. How many stocks or industry groups
make the final cut will depend on the strictness of the criteria set forth. Under this scenario, we
would be left with 9-12 stocks from which to choose. These stocks could even be broken down
further to find the 3-4 of the strongest of the strong.
Strengths of Technical Analysis
Focus on Price
If the objective is to predict the future price, then it makes sense to focus on price movements.
Price movements usually precede fundamental developments. By focusing on price action,
technicians are automatically focusing on the future. The market is thought of as a leading
indicator and generally leads the economy by 6 to 9 months. To keep pace with the market, it
makes sense to look directly at the price movements. More often than not, change is a subtle beast.
Even though the market is prone to sudden knee-jerk reactions, hints usually develop before
significant moves. A technician will refer to periods ofaccumulation as evidence of an impending
advance and periods of distribution as evidence of an impending decline.
Supply, Demand, and Price Action
Many technicians use the open, high, low and close when analyzing the price action of a security.
There is information to be gleaned from each bit of information. Separately, these will not be able

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to tell much. However, taken together, the open, high, low and close reflect forces of supply and
demand.
The annotated example above shows a stock that opened with a gap up. Before the open, the
number of buy orders exceeded the number of sell orders and the price was raised to attract more
sellers. Demand was brisk from the start. The intraday high reflects the strength of demand
(buyers). The intraday low reflects the availability of supply (sellers). The close represents the final
price agreed upon by the buyers and the sellers. In this case, the close is well below the high and
much closer to the low. This tells us that even though demand (buyers) was strong during the day,
supply (sellers) ultimately prevailed and forced the price back down. Even after this selling
pressure, the close remained above the open. By looking at price action over an extended period of
time, we can see the battle between supply and demand unfold. In its most basic form, higher
prices reflect increased demand and lower prices reflect increased supply.
Support/Resistance
Simple chart analysis can help identify support and resistance levels. These are usually marked by
periods of congestion (trading range) where the prices move within a confined range for an
extended period, telling us that the forces of supply and demand are deadlocked. When prices
move out of the trading range, it signals that either supply or demand has started to get the upper
hand. If prices move above the upper band of the trading range, then demand is winning. If prices
move below the lower band, then supply is winning.
Pictorial Price History
Even if you are a tried and true fundamental analyst, a price chart can offer plenty of valuable
information. The price chart is an easy-to-read historical account of a security's price movement
over a period of time. Charts are much easier to read than a table of numbers. On most stock

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charts, volume bars are displayed at the bottom. With this historical picture, it is easy to identify
the following:
 Reactions prior to and after important events.
 Past and present volatility.
 Historical volume or trading levels.
 Relative strength of a stock versus the overall market.
Assist with Entry Point
Technical analysis can help with timing a proper entry point. Some analysts use fundamental
analysis to decide what to buy and technical analysis to decide when to buy. It is no secret that
timing can play an important role in performance. Technical analysis can help spot demand
(support) and supply (resistance) levels as well as breakouts. Simply waiting for a breakout above
resistance or buying near support levels can improve returns.
It is also important to know a stock's price history. If a stock you thought was great for the last 2
years has traded flat for those two years, it would appear that Wall Street has a different opinion. If
a stock has already advanced significantly, it may be prudent to wait for a pullback. Or, if the stock
is trending lower, it might pay to wait for buying interest and a trend reversal.
Weaknesses of Technical Analysis
Analyst Bias
Just as with fundamental analysis, technical analysis is subjective and our personal biases can be
reflected in the analysis. It is important to be aware of these biases when analyzing a chart. If the
analyst is a perpetual bull, then a bullish bias will overshadow the analysis. On the other hand, if
the analyst is a disgruntled eternal bear, then the analysis will probably have a bearish tilt.
Open to Interpretation
Furthering the bias argument is the fact that technical analysis is open to interpretation. Even
though there are standards, many times two technicians will look at the same chart and paint two
different scenarios or see different patterns. Both will be able to come up with logical support and
resistance levels as well as key breaks to justify their position. While this can be frustrating, it
should be pointed out that technical analysis is more like an art than a science, somewhat like
economics. Is the cup half-empty or half-full? It is in the eye of the beholder.

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CHAPTER-2
COMPANY PROFILE

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COMPANY PROFILE
The private-sector banks in India represent part of the Indian banking sector that is made up of
private and public sector banks.The "private-sector banks" are banks where greater parts of share
or equity are not held by the government but by private share holders.
Banking in India has been dominated by public sector banks (since the 1969) when all major banks
were nationalised by the Indian government. However, since liberalisation in government banking
policy in the 1990s, old and new private sector banks have re-emerged. They have grown faster &
bigger over the two decades since liberalisation using the latest technology, providing
contemporary innovations and monetary tools and techniques. The private sector banks are split
into two groups by financial regulators in India, old and new. The old private sector banks existed
prior to the nationalisation in 1969 and kept their independence because they were either too small
or specialist to be included in nationalisation. The new private sector banks are those that have
gained their banking license since the liberalisation in the 1990s.
The banks, which came in operation after 1991, with the introduction of economic reforms and
financial sector reforms are called "new private-sector banks". Banking regulationact was then
amended in 1993, which permitted the entry of new private-sector banks in the Indian banking s
sector. However, there were certain criteria set for the establishment of the new private-sector
banks, some of those criteria being:#The bank should have a minimum net worth of Rs. 200 crores.
1. The promoters holding should be a minimum of 25% of the paid-up capital.
2. Reliance Capital, India Post, Larsen & Toubro, Shriram Transport Finance are companies
pending a banking license with the RBI under the new policy, while IDFC & Bandhan
were given a go ahead to start banking services for 2015.
3. Within 3 years of the starting of the operations, the bank should offer shares to public and
their net worth must increase to 300 crores.
List of the new private-sector banks in India
Name Year Established
1. Axis Bank 1993
2. HDFC Bank 1994
3. DCB Bank 1930
4. ICICI Bank 1990
5. IndusInd Bank 1994
6. Yes Bank 2004
7. Kotak Mahindra Bank 2001
8. IDFC Bank 2015
9. Bandhan Bank 2015
10.Karnataka Bank- 1924

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1.HDFC BANK
HDFC (Housing Development Financial Corporation) Bank Limited is
an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It has
84,325 employees and has a presence in Bahrain, Hong Kong and Dubai.[8] HDFC Bank is India’s
largest private sector lender by assets. It is the largest bank in India by market capitalization as of
February 2016. It was ranked 69th in 2016 Brand Z Top 100 Most Valuable Global Brands.[11]
In 1994 HDFC Bank was incorporated, with its registered office in Mumbai, India. Its first
corporate office and a full service branch at Sandoz House, Worli were inaugurated by the then
Union Finance Minister, Manmohan Singh.
As of June 30, 2017, the bank's distribution network was at 4,715 branches and 12,260 ATMs
across 2,657 cities and towns. The bank also installed 4.30 Lacs POS terminals and issued 235.7
Lacs debit cards and 85.4 Lacs credit card in FY 2017.
Products and services
HDFC Bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two wheeler loans, personal loans, loans against property and credit
cards
The latest entry in the league is 'Project AI' under which HDFC Bank, over the next few weeks,
would deploy robots at select bank branches. These robots will offer options such as cash
withdrawal or deposit, forex, fixed deposits and demat services displaying on a screen to
customers.
2.ICICI BANK-
ICICI Bank, stands for Industrial Credit and Investment Corporation of India, it is
an Indian multinational banking and financial servicescompany headquartered
in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2017, it is the third
largest bank in India in terms of assets and fourth in term of market capitalisation. It offers a wide
range of banking products and financial services for corporate and retail customers through a
variety of delivery channels and specialised subsidiaries in the areas of investment
banking,life, non-life insurance, venture capital and asset management. The bank has a vast
network of 4,850 branches] and 14,404 ATMs in India, and has a presence in 19 countries
including India.
The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance
Centre, China and South Africa; and representative offices in United Arab Emirates, Bangladesh,
Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium
and Germany

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ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of shares
in India in 1998, followed by an equity offering in the form of American Depositary Receipts on
the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limitedin an all-stock deal in 2001
and sold additional stakes to institutional investors during 2001-02.
In the 1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group, offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI became the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its
five million American depository shares issue generating a demand book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited
and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders
of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March
2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April
2002.[12]
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in
some locations due to rumours of adverse financial position of ICICI Bank. The Reserve Bank of
India issued a clarification on the financial strength of ICICI Bank to dispel the rumours.
3.AXIS BANK
Axis Bank Ltd is the third largest of the private-sector banks in India offering a comprehensive
suite of financial products. The bank has its head office in Mumbai and Registered office in
Ahmedabad. It has 3304 branches, 14,003 ATMs, and nine international offices. The bank employs
over 55,000 people and had a market capitalization of ₹1.28 trillion (US$20 billion) (as on March
31, 2017).[4] It offers the entire spectrum of financial services large and mid-size corporates, SME,
and retail businesses.
As of 30 Jun. 2016, 30.81% shares are owned by promoters & promoter group (United India
Insurance Company Limited, Oriental Insurance Company Limited, National Insurance Company
Limited, New India Assurance Company Ltd, GIC, LIC & UTI).[5] Remaining 69.19% shares are
owned by Mutual Funds Institutions, FIIs, Financial Institutions (banks), Insurance companies,
corporate bodies & individual investors among others.

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4.YES BANK -
Yes Bank is India's fourth[2] largest private sector bank, founded by Rana Kapoor and Ashok
Kapur in 2004. Yes Bank is the only Greenfield Bank licence awarded by the RBI in the last one
decade. YES BANK is a “Full Service Commercial Bank”, and has steadily built a Corporate,
Retail & SME Banking franchise, Financial Markets, Investment Banking, Corporate Finance,
Branch Banking, Business and Transaction Banking, and Wealth Management business lines
across the country.
Listings and shareholding
Yes Bank equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of
India.
Shareholders (as on 31-Mar-2016) Shareholding[10]
Promoter Group 21.91%
Foreign Institutional Investors (FII) 41.25%
Insurance Companies 12.76%
Banks/Financial Institutions/Mutual Funds/UTI 11.5%
Others 12.58%
Total 100.0%
Yes bank was listed in the stock exchanges of India post its IPO in May 2005 at an issue price of
Rs.45.
In September 2016, Yes bank scrapped its proposed $1bn share sale due to market conditions. The
pull out of the deal caused all round embarrassment as miscommunication and misunderstanding
among various players led to a round of public blame game among various participants. The
company is looking to relaunch its failed capital raising exercise after appointing new set of
bankers.
On 3 November 2017, Yes Bank signed a MoU with the government to provide Rs 1,000 crore
financing for food processing projects.
BHIM YES PAY is the 1st Wallet to fully integrate the India Stack APIs and National Payment
Corporation of India (NPCI) Products supporting the national agenda of making India Digital.

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On 1st February, 2018, Yes Bank Signs MoU with Assam Rifles for offering banking solutions to
defense personnel.
5.KOTAK MAHINDRA BANK
Kotak Mahindra Bank is an Indian private sector bank headquartered
in Mumbai, Maharashtra, India. In February 2003, Reserve Bank of India (RBI) gave the licence to
Kotak Mahindra Finance Ltd., the group's flagship company, to carry on banking business.
It offers a wide range of banking products and financial services for corporate and retail customers
through a variety of delivery channels and specialized subsidiaries in the areas of personal
finance, investment banking, general insurance, life insurance, andwealth management.
Kotak Mahindra Bank has a network of 1,369 branches across 689 locations and 2,163 ATMs in
the country (as of 31 March 2017).[3]In 2016, it was the fourth largest private bank in India by
market capitalization.
Merger with ING Vysya Bank[
In 2015, Kotak Bank acquired ING Vysya Bank in a deal valued at ₹15,000 crore (US$2.3 billion).
With the merger, total employment jumped to almost 40,000, and the count of branches reached
1261. After the merger, ING Group, which controlled ING Vysya Bank, owned a 7% share in
Kotak Mahindra Bank.
6.INDUSIND BANK
IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in 1994. The
bank offers commercial, transactional and electronic banking products and services. IndusInd Bank
was inaugurated in April 1994 by then Union Finance Minister Manmohan Singh. Indusind Bank
is the first among the new-generation private banks in India.
The bank started its operations with a capital amount of Rs. 1 billion among which Rs. 600 million
was raised by the Indian Residents and Rs. 400 million was raised by the Non-Resident Indians.
The bank has specialized in retail banking services and continuously upgrades its support systems
by introducing newer technologies. It is also working on expanding its network of branches all
across the country along with meeting the global benchmark. According to the bank, its name is
derived from the Indus Valley Civilisation.
As on June 30, 2016, IndusInd Bank has 1,004 branches, and 1885 ATMs spread across 625
geographical locations of the country. It also has representative offices in London, Dubai and Abu
Dhabi. . Mumbai has the maximum number of bank branches followed by New Delhi and Chennai.
The bank has also proposed to double the branches count to 1200 by March 2017, he bank began

24
its operations on 17th April 1994 under the chairmanship of S.P. Hinduja with the primary
objective of serving the NRI community.
Board of directors
Mr. Ramesh Sobti has joined the bank as Managing Director and CEO, taking charge from Mr.
Bhaskar Ghose. Mr. R. Seshasayee, a Chartered Accountant by profession is the current Chairman.
The other members on the board are Dr. T. T. Ram Mohan, Mr. Ajay Hinduja, Mr. S. C. Tripathi,
Mr. Ashok Kini, Mrs. Kanchan Chitale, Mr. Vijay Vaid, Mr. R. S. Sharma and Mr. Y. M. Kale
7.KARNATAKA BANK
The Karnataka Bank Limited is a major Private Sector Banking institution based in the coastal
city of Mengaluru in Karnataka, India. The Reserve Bank of India has designated 'Karnataka Bank'
Limited as an A1+ class Scheduled Commercial Bank.
Karnataka Bank Limited currently has a network of 800 branches, 1374 ATM's and 160 e-
lobbies/mini e-lobbies across 22 States and 2 Union territories. It has over 8153 employees and
over 9.2 million customers throughout the country. Its shares are entirely privately owned by over
1,46,000 shareholders. The tagline of the bank is "Your Family Bank Across India".
In August 2008, Karnataka Bank Limited received the Sun and NDTV Green IT Award. Sun
Microsystems and NDTV gave the award to in recognition of the bank's "green policies" and use
of earth-friendly technology such as solar power.
The bank has the Best Bank Award for "Managing IT Risk" under small bank category for the year
2010-11, instituted by Institute for Development and Research in Banking Technology (IDRBT).
Shri Anand Sinha, deputy governor, Reserve Bank of India and chairman, IDRBT presented the
award to Shri P. Jayarama Bhat, Managing Director at a function held in Hyderabad on 4 August
2011 in the presence of Shri B. Sambamurthy, director, IDRBT.
Karnataka Bank Limited has adopted Core banking, Internet banking and has established its
"MoneyPlant" [1374 Automated Teller Machine] system across the country. During 2015-16, the
bank received the IDRBT Banking Technology Excellence Award of the Institute for Development
and Research in Banking Technology [IDRBT], Hyderabad for the year 2014-15. Karnataka Bank
Limited has received the Federation of Indian Export Organizations – Western Region's “Export
Excellence Award for MSME”, for the year 2014 -15. The bank has achieved the ISO 27001:2013
Certificate from UKAS, Management Systems, a UK based certifying body.
8.IDFC BANK
The IDFC Bank is an Indian banking company with headquarters in Mumbai that forms part
of IDFC, an integrated infrastructure finance company. The bank started operations on 1 October
2015. IDFC received a universal banking licence from the Reserve Bank of India (RBI) in July
2015. On 6 November 2015, IDFC Bank was listed on BSE and NSE.

25
Company Information
IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started
operations on 9 June 1997. In 1998 the company registered with the Reserve Bank of India (RBI)
as a non-banking financial company and in 1999 it formally became a Public Financial Institution.
To conform with RBI guidelines IDFC founded a non-operative financial holding company
(NOFHC) in 2014 to manage its five subsidiaries IDFC Bank, IDFC MF, IDFC Alternatives, IDFC
IDF & IDFC Securities. IDFC is the holding company for NOFHC IDFC Projects Ltd and IDFC
Foundation.
IDFC Bank started operations with 23 branches in Madhya Pradesh, Delhi, Mumbai, Hyderabad,
Bengaluru, Pune, Chennai, Ahmedabad and Kolkata. 15 branches are in settlements with a
population of less than 10,000. IDFC bank has launched it's 100th branch in Honnali, Karnataka in
October 2017
Prime Minister Narendra Modi formally " launched IDFC Bank on 19 October 2015.
Business Focus
The bank serves corporate and private customers in India including the infrastructure sector that
IDFC specialized in from its founding in 1997. The bank also aims to provide services to people in
rural areas and to the self-employed.
The bank IDFC Bank is the first in India to launch aadhaar-linked cashless merchant solution.
One of its largest loans into e-commerce includes a 300 crore rupees one to Flipkart. On 8
November 2017, IDFC Bank entered into a strategic partnership with digital payments solution
company MobiKwik to launch a co-branded virtual Visa prepaid card for customers of MobiKwik.
9.DCB BANK -
DCB Bank Ltd. is a private sector scheduled commercial bank in India. It has a network of 310
branches[] and 515 ATMs in the country. It offers products to individuals, small and medium
businesses, rural banking and mid corporates across the branch network.
DCB Bank is rated as the Best Small Bank in INDIA by Businessworld Magna Awards 2017.
The Bank is present in 19 States and 3 Union Territories. Metros having DCB Bank branches are
Ahmedabad, Ambala Cantt, Aurangabad, Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai,
Coimbatore, Dehra Dun, Delhi NCR, Gandhinagar, Gurgaon, Hyderabad, Indore, Dewas, Jabalpur,
Jaipur, Jalandhar, Jodhpur, Kochi, Kolkata, Lucknow, Ludhiana, Mumbai, NOIDA, Panjim, Pune,
Surat, Trichy, Udaipur, Vadodara and Vishakhapatnam. DCB Bank is also focussed in expanding
in tier 3 to tier 6 towns in Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya
Pradesh, Maharashtra, Odisha, Rajasthan and Telangana.

26
States where DCB Bank branches are located: Andhra Pradesh, Bihar, Chhattisgarh, Delhi NCR,
Gujarat, Goa, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab,
Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal.
DCB Bank's products and services range from loans for Small and medium enterprises and Mid
Corporate customers, to Loans for individual needs such as home loan, loan against gold,
commercial vehicle loan and small business loan. Agri & Inclusive Banking from DCB Bank
includes tractor loan, loan against gold, warehouse finance, loan against warehouse receipt, dairy
and farm loan, loans for microfinance organisations amongst other products.
DCB Bank Savings Accounts provide attractive value such as cash back option and personalised
account number. Additionally, DCB PayLess secured credit card is a credit builder card. The Bank
is active in the online and digital banking space with DCB on the Go - instant mobile banking,
SMS banking, telephone banking.
10.Bandhan Bank
Bandhan Bank Ltd. is an Indian banking and financial services company headquartered
in Kolkata, West Bengal. Bandhan, which started as a micro-finance company in 2001, received
banking licence by Reserve Bank of India in 2014. Bandhan Bank became the 8th largest bank
(2018 March 27) in India by market capital (₹56920cr).
Bandhan Bank has Dr. Ashok Lahiri as Chairman. He has been the chief economic adviser
to Government of India earlier. Mr.Chandra Shekhar Ghosh is the founder cum managing director
and chief executive officer.
Investors
The RBI licensing norms stipulate that a new bank must have a ₹ 500 crore capital. Bandhan Bank
starts with a capital base of ₹ 2,570 crore and this will be raised to ₹ 3,052 crore. Bandhan
Financial Holdings is owned by Bandhan Financial Services Limited (BFSL), the largest micro
finance organization in India. The major investors in the parent company of Bandhan Bank
are International Finance Corporation (IFC), Singapore Sovereign Wealth Fund GIC, Financial
Inclusion Trust, North Eastern Financial Inclusion Trust, Bandhan Employees Welfare Trust
and Small Industries Development Bank of India (SIDBI)

27
CHAPTER-3
Literature Review

28
Literature Review
Literature Review:
1. Andrew W. Lo, Harry Mamaysky and Jiang Wang (August, 2000) had made
“Foundation of technical analysis: Computational Algorithms, Statistical Inference,
and Empirical Implementation” researcher investigate that methodical and automatic
approach to technical pattern recognition using nonparametric kernel regression
applied on U.S. stock from 1962 to 1996 to estimate the success of technical
analysis.
2. Charles M. C. Lee and Bhaskaran Swaminithan (October, 2000) he examined in
his paper titled “Price Momentum and Trading Volume” that past trading volume
provides a vital link between momentum and value strategies.
3. Michael C. Jensenand George A. Benington (September, 2001) in this research
paper titled “Random Walks and Technical Theories: Some Additional Evidence”
researcher studies that random walk and efficient market theories of security price
behavior imply that stock market trading rules based exclusively on the past price
cycle cannot make profits bigger than those generated by a simple buy-and-hold
policy.
4. Mark Grinblatt and Tobias J. Moskowitz (January, 2003) in this paper titled
“Predicting stock price movement from past return: the role of consistency and tax loss
selling” researcher studies that the regularity of positive past returns and tax loss considerably
affects.
5. MassoudMetghalachi, Xavier Garza-Gomez, Yong Glasure and Yung-Ho
Chang (September, 2007) in his paper titled “Profitable Technical Trading Rules
for the Austrian Stock Market” researcher studies that two moving average technical
trading rule for the Austrian Stock Market. Result point out that moving average
rules certainly have predictive power and could separate recurring price patterns for
profitable trading.
6. MassoudMetghalachi, Xavier Garza-Gomez, Yong Glasure and Yung-Ho
Chang (2008) in this paper titled “Are Moving Average Trading Rules Profitable?
Evidence from the Mexican Stock Market” researcher studies three moving average
technical trading rule for the Mexican Stock Market and the result indicate that
moving average rules do indeed have predictive power and can generate consistent
profits.
7. Faid Gul and Tariq Javed (August, 2009) examined “Relationship between
trading volume and stock exchange performance: A case from Karachi stock
exchange” researcher study the connection between trading volume and
performance of stock exchange index of the Pakistani stock market.
8. Francis Breedon and Angelo Ranaldo (November, 2010) in this research paper
titled “Intraday pattern in FX return and order flow” researcher studies 10 years
high-frequency foreign exchange data and studies shows that time-of-day effects in
foreign exchange returns in the course of a significance propensity for currencies to
devalue during local trading hours. Researcher confirms this pattern in series of
currencies and fined that in EUR/USD pair is easy and profitable trading strategy.

29

30
CHAPTER-4
RESEARCH METHODOLOGY

31
RESEARCH METHODOLOGY-
RESEARCH DESIGN-
TYPES OF RESEARCH-
Descriptive research. It includes surveys and fact-finding enquiries of different kinds. Major
purpose of descriptive research is purely description of state of affairs, as it exists as the present.
The main characteristic of this method is that the researcher has no control over the variables; he
can only report what has happened or what is happening.
DATA COLLECTIONMETHODS/SOURCES-
There are two sources of data collection.
1. Primary Data
2. Secondary Data
Secondary Data-.
The secondary data means data those are already available. In this project secondary data were
used. The various sources are as under-
1.Books, magazines, newspapers i.e. Books like Security Analysis by S. Kevin, newspapers like
India Mirror, Economic Times, Business Standard.
2.Reports prepared by Goldmansachs, MorganStanley, Indian Infoline,Economic
times,Moneycotrol .
The data are taken from NSE banking sctors charts.
3.Other websites like Websites i.e.
www.investing.com,www.moneycontrol.com,www.Motilaloswal.com
www.economictimes.in

32
SURVEY APPROACH-
SURVEY RESEARCH-Survey research is used to learn about need satisfaction and awareness levelof the
customers of online share trading.The method used by me is survey method as the research done is
Descriptive approach.
RESEARCH INSTRUMENT-
Selected instrument for data collection is MACDMoving Average ,Candelstick analysis,Bars and
charts,Relative strength index,rate of change index.
MACD-
Moving average convergence divergence (MACD) is a trend-following momentum indicator that
shows the relationship between two moving averages of prices. The MACD is calculated by
subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day
EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a
trigger for buy and sell signals.
2.Moving Average-
A moving average (MA) is a widely used indicator in technical analysis that helps smooth out
price action by filtering out the “noise” from random price fluctuations. It is a trend-following, or
lagging, indicator because it is based on past prices.
The two basic and commonly used moving averages are the simple moving average (SMA), which
is the simple average of a security over a defined number of time periods, and the exponential
moving average (EMA), which gives greater weight to more recent prices. The most common
applications of moving averages are to identify the trend direction and to determine support and
resistance levels. While moving averages are useful enough on their own, they also form the basis
for other technical indicators such as the Moving Average Convergence Divergence (MACD).

33
3.RSI-
 The relative strength index (RSI) is a technical indicator used in the analysis of financial
markets. It is intended to chart the current and historical strength or weakness of a stock or
market based on the closing prices of a recent trading period. The indicator should not be
confused with relative strength.
 The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of
directional price movements. Momentum is the rate of the rise or fall in price. The RSI
computes momentum as the ratio of higher closes to lower closes: stocks which have had
more or stronger positive changes have a higher RSI than stocks which have had more or
stronger negative changes.
 The RSI is most typically used on a 14-day timeframe, measured on a scale from 0 to 100,
with high and low levels marked at 70 and 30, respectively. Shorter or longer timeframes
are used for alternately shorter or longer outlooks. More extreme high and low levels—80
and 20, or 90 and 10—occur less frequently but indicate stronger momentum.
 The relative strength index was developed by J. Welles Wilder and published in a 1978
book, New Concepts in Technical Trading Systems, and in Commodities magazine
(nowFutures magazine) in the June 1978 issue.[1] It has become one of the most popular
oscillator indices.
 The RSI provides signals that tell investors to buy when the currency is oversold and to sell
when it is overbought.
 RSI with recommended parameters and its day-to-day optimization was tested and
compared with other strategies in Marek and Šedivá (2017). The testing was randomised in
time and companies (e.g., Apple, Exxon Mobile, IBM, Microsoft) and showed that RSI can

34
still produce good results; however, in longer time it is usually overcome by the
simple buy-and-hold strategy.
Relative strength index 14-period
Example of RSI Indicator Divergence

35
4.ROC-
The price rate of change (ROC) is a technical indicator of momentum that measures the percentage
change in price between the current price and the price n periods in the past. It is calculated by
using the following formula:
ROC = (Most recent closing price - Closing price n periods ago) / Closing price n periods ago x
100

36
CHAPTER-5
DATA ANALYSIS
INTERPRETATION

37
1.ONE YEAR OF TECHNICAL CHART (NSE)
1.ICICI BANK
Interpretation-if we look in to 1 year charts,it is shown that in May 2017,it was bearish trend and
continued upto November .But in October it was lower and then it became bullish till Mid
November,then in in December it again beasrish and bullish till February 2018 and then it was
dropping till the end.

38
2.HDFC BANK
Interpretation-If we look into charts,the trends are quiet well and the candel stick shows that it not
much over sold while in Mid june to July,the trends were low and became little bullish till August
while the month of September was over sold while it continued upto January 2018 ,but some how
till February the trends were good but againa continued as bearish till now.
3.AXIS BANK

39
INTERPRETATION-
If we look in to the charts,we will see that,the trends were flat for August and it went to Bearsih
upto Mid October but then there as a over sold then October and again gained till February 2018
while it became almost flat till now.

40
4.Yes Bank
Interpretation-
If we see the charts,the trends are bullish,then became flat and then became lowest and bearish and
recovered a little but still flat till now.So Investors will not buy the shares rather they will sell the
shares.

41
Interpretation-
If we see the charts,the trends are quiet up and the profits are stable and it has a bullish trend and it
is somewhere over bought but trends are good till now. This is a good upward trend so holding
back stocks and when it will be overbought ,one must sell the shares.

42
6.INDUSIND BANK
Interpretation-
If we see the trends,we will see that,the trends are bullish and the stocks are somehow over bought
till September while it became flat and negative til March 2018 but it has recovered and has
become bullish till now.
7.KARNATAKA BANK

43
Interpretation-
If we see the trends,we can say that,the trends were good in 2017 while in February 2018 it has
been marked oversold and the trends are negative till now.So One must not buy the shares while
holding back the shares can be riskier.
8.IDFC BANK

44
Interpretation-
If we look into the charts,we can say that,this bank has mostly oversold and the trends are lower
than ever tll now.So one must not buy or hold back the shares.

45
9.BANDHAN BANK
Interpretation-The trends shows that,maximum trends are negative and oversold so,one need to
wait for positive trend to buy the shares Though Bnadhan Bank is new so the trends are now
negative and highly fluctuating.

46
10.DCB BANK
Interpretation-
If we look into the charts,we can say that the trends are negative and somewhere it is overbought
and has been flat till now.In 2018,the trend is highly downward and in April,the trend went little
higher but then became flat.

47
MOVING AVERAGE-
1.HDFC BANK
Interpretation-The moving Average tool is usually analyzed to know the strategy to sell and buy
the shares. Its 50 days moving average where it is the slow moving indicator. Here from the above
chart, it shows that, the price trend crosses over 50SMA line in from the June ,its time to buyl and
in the month of February, the profits can be more .In March, the price trend crosses down the
50SMA trend, which is best time to sell the shares while the price trend is crossing over the
50SMA line till now which indicates best time to buy the share.
2.ICICI BANK

48
Interpretation-The above chart shows that,the price level trend is crossing over the 50SMA line
from May to mid July ,its best time to buy the shares while the November trend is sell the shares
and to sell in Mid December. In January 2018, the price line is crossing over the SMA line which
means its best time to buy the shares and after March,the SMA line is crossing over the price line
which means its time for selling the shares.
3.AXIS BANK

49
Interpretation-The above chart shows that,in Mid August, the Price line is crossing over the SMA
line which means its time to buy the shares where,in November ,time to sell and in February 2018
shows the buying and the February to April line shows the buying of shares.
4.YES BANK

50
Interpretation-The above chart shows that, From May to July,its time to buy the shares, while in
Mid August to October,its time to sell where as, from Mid October to December,its time to sell the
shares. The January pattern shows to sell the charts while in February,time to buyl the shares.Till
the end of chart,the pattern shows to sell the shares.

51
Interpretation-The above chart shows that, The Price line is crossing over the 50SMA line ,which
is best time to buy the shares, the 1st arrow shows to buy the shares while the in September, the
50SMA line crosses over the price line which indicates the selling of shares. In October, the price
line is crossing over the SMA line, which means its time to buy the share. It continue neutral up to
January 2018 and in mid January, the price line crosses over the SMA line which means to buy the
shares and the selling trend is continuing till the end of the charts.

52
6.INDUSIND BANK
Interpretation-The above chart shows from July to October,the price line is crossing over the SMA
linw which means its time to buy the shares .while in Mid October, its time to sell the shares.Till
the end of chart, its indicates to buy the shares.

53
7.DCB BANK
Interpretation-The above chart show that, in June where the price line is crossing over the SMA
line its time to buy the shares while in July ,its time to sell the shares .In August,the indicator
shows to sell the shares.In December,the upward trend is established and its time to buy the
shares..From Mid January,the downward trend is established which shows to sell the shares.In the
month of April,the uptrend is established,investors need to buy the shares.

54
8.KARNATAKA BANK
Interpretation-The above chart shows that, In June pattern shows stocks to be bought while in July,
the downward trend indicates to sell the stocks. In October, the trend suggest to buy the shares
while the December trend shows to sell the shares. January trends show that, best time to buy
shares and mid January shows the selling of shares. Then the trend is recovered in April.

55
9.IDFC BANK
Interpretation-The above chart shows,in mid June where downward trend suggests the selling of
shares while mid July the upward trend suggest the buying of shares.in January,the upward trend is
established which suggests to buy shares and in February,the trend suggest to sell the shares.

56
10.BANDHAN BANK
Interpretation-The above chart suggest that , the red candle stick is huge in the beginning of the
month and later became a upward trend till mid April while the downtrend continue till the last of
the month which is indicating of selling of shares.

57
DETAILS OF MACD CHARTS
1.HDFC BANK
INTERPRETATION-MACD (Moving Average Convergence Divergence) is usually calculate to
find out the buying and selling trend where the blue line suggest the upward trend while the red
line suggest the downward trend.If we analyze the trends,where the blue MACD line is crossing up
the red MACD line,its time buy and where the red line is crossing up the Blue MACD line,the alert
is sell the stocks .The upward arrow suggests buy and the downward arrow suggest sell the
stocks.In mid august,the stocks prices were going down while in September,the trend was

58
positive.While in February the trends were going down and it continued upto Mid March but later
the trend was positive.
2.ICICI BANK
Interpretation-MACD is the 26day trend tool which shows the trend to investor when time to buy
and which time to sell.If we analyze the chart here,the trends are almost flat somewhere and
basically neutral which is a good sign for holding the stocks and sell at lower higher trend.In Mid
October,the blue line was crossing the red line and going up till mid November which is bullish
divergence and good time to buy the stocks and hold back until the red line crossing the blue line
up which is the time to sell.Again the trend is negative,continued upto mid December and till
February ,the trends were quiet flat and gaining no negative profits.while the trend went positive
in February but there was no crossing line between blue line and red linetill mid march which
shows no selling of stocks but trend was negative and continued upto april and till now the trend is
positive.

59
3.AXIS BANK
Interpretation- MACD is the 26days based tool which shows investors when to buy and when its ti
me to sell. Here from the chart, we can analyze that, from may 2107 to mid July 2017 the trends
were flat which mean it is neutral, giving no profits and no losses, but in last week of July, the
trend was upwards, little bullish it means, its time to buy and wait for the next crossing up the line
between redline to blue line. The august month trend shows a long bearish and negative trend
which continue upto September and in the month of September and mid October the trends were
flat and neutral but November trend shows a bullish trend which means its time to buy the stocks
and hold for the loner period of time till its time to sell in December, while mid January 2018the
trends were flats and there was a negative trend in till march which means selling the stocks and its
not the good time to buy the stocks. From march to second week of April, the trends were neutral
but the trend is positive and till the end of the chart, its bearish.

60
4.YES BANK
INTERPRETATION-MACD is a 26days tool which shows investors when to buy and hold the
shares and when its time to sell the shares. If we analyze the trend, we can see that, from May to
mid June ,the trend was negative which manes the redline is crossing up to the blue line indicates
to sell the shares while the trend was growing but were flats till August which shows the redline is
crossing down to the blue line means to buy the shares. But the trend became bearish till
September and in October the trends flat downwards. In the November, the trend dropped to the
lowest while a long bullish trend was till the February 2018 which indicates the trend was growing
upwards flat. in the march, the trend was negative it means, its time to sell the shares, towards the
end of he charts, the trend is bullish an positive.

61
INTERPETATION-The MACD tool is the 26days pricing module which shows when its time to
buy and when its time to sell. If we look into the charts, we can know that, till the mid june
2017,the trend s were flat and neutral and in the end of the june, the blue line as crossing the red
line which means its time to buy the shares but till mid july, the trends were bearish, and the red
line crosses the blue line means its time to sell the shares. In the beginning of the august, the blue
line is crossing down the red line which indicates selling the stocks and holding it till septmber,
where the red line is crossing down to blue line ,which shows its time to buy the shares. in the
month of October, the trend is bullish which means time to sell. the flat trend continue upto mid
November too febraury 2018 where the red line is crossing up to the blue line which means its time
to sell and before march the trend shows to buy. But in mid march, the blue line is crossing the red
line, its best time to buy the shares and hold for the next red upward line crossing the blue line.

62
6.INDUSID BANK
Interpretation-The above chart shows that, till the august, the trend is like is not the best time to
buy or sale the shares as there is no long bullish/bearish trend to get a good capital appreciation.
For the good profits, investors have to wait till November where the trend is lower and flats, one
can buy shares but hold back up to month of February 2018 because the trend was going upward
and best time to sell to get a better profits. While in the end of the febrauary trend shows its time
to buy and hold till the mid of april. The end of chart shows the trend is going down.

63
7.IDFC BANK
Interpretation- The above charts shows that, in mid may ,the red line is crossing the blue line
which indicates to sell the shares and to wait till july where the investor can buy the shares as the
blue line is crossing the red line and though the trend is bullish ,it suggest that in the mid july its
time to sell the shares as the red line is crossing the blue line. The trend continue upto mid August
where the blue line is crossing up the red line which indicates its time to buy the shares and hold
up to mid September where one can sell the shares. For the regular investor, they need to hold back
the shares till the upward is approaching where the 2018 January shows to sell the shares to get
better profits. There is a drop till mid March and the trend is almost neutral but the in the month of
April. the trend is growing upwards.

64
8.DCB BANK
Interpretation-The above charts shows that, till July the rends were positive but flat but there was
drop in the july month trend where investor will sell the shares. Till the month of December the
trends are flat and neutral but the December trend is bearish up so one need to wait to sell at better
price where in the mid Januray 2018,the red line is crossing up to the blue line, its time to sell the
shares.The trend is negative till mid February where the blue line crossing the red line which
indicates to buy shares and hold back till the positive trend. The end of chart shows a selling signal
and trend is going down.

65
9.KARNATAKA BANK
Interpretation- The above graph shows that, the trends are flat and neutral , while the negative rend
was in June and it continue up to mid August as the blue line is crossing red line which indicates to
buy the share and the bearish trend continue up to mid September its time to sell the share. The
neutral trend continue up to January 2018,where the trend is negative and going downward till
March, the neutral lines continue till the end of April.

66
10.BANDHAN BANK
Interpretation-From the above chart, it shows that, the trend started in the month of April where the
26days tool need time to portray the buy and sell signal. But the chart shows, the red candle stick
shows a huge selling of shares and it recovered later but after 12th of April there is sudden selling
of shares and after 25th of April, the trend is going up.

67
1.RSI CHARTS
1.HDFC BANK
INTERPRETATION-The above chart shows that,RSI is relative strength index is a toll which
indicates the buying nd selling the shares when the price levl crosses over 70 mark and goes below
the 30 mark.It shows that,the uptrend is following from May to January 2018,while in mid
January,the trend shows oversold.In January,the trend shows over bought.
2.ICICI BANK

68
Interpretation-The above chart shows that,the upward trend is continuing up to August while in
September to Mid October,the trend shows oversold .in January,the trend shows the over bought
while from February,the trend shows the oversold of shares.

69
3.AXIS BANK
Interpretation-The above chart shows that, the neutral trend is going while in mid July to Mid
August, the trend shows over sold. In mid October, the shares are over sold and in January, the
trend shows overbought while the trend continue as oversold in the end of April.

70
4.YES BANK
Interpretation-The above chart shows that,there is a upward trend in July To august it means the
oer bought is done while in Mid October th3 trend shows the oversold of the shares.In January the
trend shows the overbought but in the last of april,the trend is upward moving.

71
Interpretation-The above chart shows that,In October the both upward trend and downward trend
was established. In January,the trend shows that,the shares were over bought and in April the same
over bought continued.
6.INDUSIND BANK

72
Interpretation-The above chart shows that, there is a major upward trend from May 2017 to Mid
October while in October the shares were over sold but again upward trend till February .In
February, the trend was negative while till now teh trend is going upward.
7.DCB BANK
Interpretation- The above chart shows that, the upward trend till Mid June while In July, the stocks
were negative trend. the trend was going upward till January while a major oversold was one till
February.but till the end of the Apri, The stocks are over bought.

73
8.IDFC BANK
Interpretation-The above chart shows that there was over bought in July and when it crossed more
than 70 mark,there was a over sold and till Mid September It continued .In November there as over
bought while the trend was down ward till January.In the month of January, the trend was
upwards and oversold while later the trend became downward and over sold.

74
9.KARNATAKA BANK
Interpretation-The above chart shows that,there was downward trend from July and continued
fluctuating till January and from January to till April,it was over sold.
10.BANDHAN BANK

75
Interpretation-The above chart shows thht,there was major downward from the beginning while
later it was over bought but it continued downward till now.
ROC CHARTS
1.HDFC BANK-
Interpretation-The above chart shows that,in Mid September , the trend was lowest in mid October there
was major change in downward trend. In January, the trend was highest but still fluctuating

76
2.ICICI BANK
Interpretation-The above chart shows that, there was lowest in July while till November,
the trend was downwards. In January, the trend was highest but still fluctuating.
3.AXIS BANK

77
Interpretation-The above chart shows that,the in October the trend went to lowest while in
January,it was highest.

78
4.YES BANK
Interpretation-The above chart shows that,there was a huge drop in trend till July while the highest
trend was till August. In October,the lowest trend continued upto Mid November.the high trend
was in January.

79
Interpretation-The above charts shows that, there is a upward trend means higher trend and a
lowest trend in October. But its still Fluctuating till end.

80
6.INDUSIND BANK-
Interpretation-The above chart shows that,the trend is higher till September while in Mid
octobder,the trend was lowest.But in 2018,the trend is high.

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7.DCB BANK
Interpretation-the above chart shows that,the trend was lower in mid June while in August,the
trend was lowest.In 2018,the trend was high to lowest but then became positive.

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8.IDFC BANK
Interpretation-The above chart shows that,the movement of trend was downward which is lower to
lowest till July while In 2018,the trend was lowest and now neutral.

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9.KARNATAKA BANK
Interpretation-The above chart shows that,the movement was downwards and lowest till Aprill.
10.BANDHAN BANK-
Interpretation-The above chart show that,the trend was lowest at the beginning while in Mid
April,it was lower.

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CHAPTER-6
FINDINGS & SUGGESTION

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FINDINGS-
1.ONE YEAR OF TECHNICAL CHART
ICICI BANK -if we look in to 1 year charts,it is shown that in May 2017,it was bearish trend and
continued upto November .But in October it was lower and then it became bullish till Mid
November,then in in December it again beasrish and bullish till February 2018 and then it was
dropping till the end.
2.HDFC BANK
If we look into charts,the trends are quiet well and the candel stick shows that it not much over
sold while in Mid june to July,the trends were low and became little bullish till August while the
month of September was over sold while it continued upto January 2018 ,but some how till
February the trends were good but againa continued as bearish till now
3.AXIS BANK-If we look in to the charts,we will see that,the trends were flat for August and it
went to Bearsih upto Mid October but then there as a over sold then October and again gained till
February 2018 while it became almost flat till now.
4.Yes Bank
If we see the charts,the trends are bullish,then became flat and then became lowest and bearish and
recovered a little but still flat till now.So Investors will not buy the shares rather they will sell the
shares.
5.KOTAK MAHINDRA BANk
If we see the charts,the trends are quiet up and the profits are stable and it has a bullish trend and it
is somewhere over bought but trends are good till now. This is a good upward trend so holding
back stocks and when it will be overbought ,one must sell the shares.
6.INDUSIND BANK
If we see the trends,we will see that,the trends are bullish and the stocks are somehow over bought
till September while it became flat and negative til March 2018 but it has recovered and has
become bullish till now
7.KARNATAKA BANK-
If we see the trends,we can say that,the trends were good in 2017 while in February 2018 it has
been marked oversold and the trends are negative till now.So One must not buy the shares while
holding back the shares can be riskier
8.IDFC BANK-
If we look into the charts,we can say that,this bank has mostly oversold and the trends are lower
than ever tll now.So one must not buy or hold back the shares.

86
9.BANDHAN BANK
The trends shows that,maximum trends are negative and oversold so,one need to wait for positive
trend to buy the shares.
Though Bnadhan Bank is new so the trends are now negative and highly fluctuating.
10.DCB BANK-If we look into the charts,we can say that the trends are negative and somewhere it
is overbought and has been flat till nw.In 2018,the trend is highly downward and in April,the trend
went little higher but then became flat.
MOVING AVERAGE-
1.HDFC BANK-It shows that, the price trend crosses over 50SMA line in from the June ,its time
to buyl and in the month of February, the profits can be more .In March, the price trend crosses
down the 50SMA trend, which is best time to sell the shares while the price trend is crossing over
the 50SMA line till now which indicates best time to buy the share.
2.ICICI BANk-
The price level trend is crossing over the 50SMA line from May to mid July ,its best time to buy
the shares while the November trend is sell the shares and to sell in Mid December. In January
2018, the price line is crossing over the SMA line which means its best time to buy the shares and
after March,the SMA line is crossing over the price line which means its time for selling the
shares.
3.AXIS BANk
In Mid August, the Price line is crossing over the SMA line which means its time to buy the shares
where,in November ,time to sell and in February 2018 shows the buying and the February to April
line shows the buying of shares.
4.YES BANK-, From May to July,its time to buy the shares, while in Mid August to October,its
time to sell where as, from Mid October to December,its time to sell the shares. The January
pattern shows to sell the charts while in February,time to buyl the shares.Till the end of chart,the
pattern shows to sell the shares.
5.KOTAK MAHINDRA BANK-
The Price line is crossing over the 50SMA line ,which is best time to buy the shares, the 1st arrow
shows to buy the shares while the in September, the 50SMA line crosses over the price line which
indicates the selling of shares. In October, the price line is crossing over the SMA line, which
means its time to buy the share. It continue neutral up to January 2018 and in mid January, the
price line crosses over the SMA line which means to buy the shares and the selling trend is
continuing till the end of the charts
6.INDUSIND BANK-

87
It shows from July to October,the price line is crossing over the SMA linw which means its time to
buy the shares .while in Mid October, its time to sell the shares.Till the end of chart, its indicates
to buy the shares
7.DCB BANK, In June where the price line is crossing over the SMA line its time to buy the
shares while in July ,its time to sell the shares .In August,the indicator shows to sell the shares.In
December,the upward trend is established and its time to buy the shares..From Mid January,the
downward trend is established which shows to sell the shares.In the month of April,the uptrend is
established,investors need to buy the shares.
8.KARNATAKA BANk-In June pattern shows stocks to be bought while in July, the downward
trend indicates to sell the stocks. In October, the trend suggest to buy the shares while the
December trend shows to sell the shares. January trends show that, best time to buy shares and mid
January shows the selling of shares. Then the trend is recovered in April.
9.IDFC BANK –In mid June where downward trend suggests the selling of shares while mid July
the upward trend suggest the buying of shares.in January,the upward trend is established which
suggests to buy shares and in February,the trend suggest to sell the shares.
10.BANDHAN BANK-The red candle stick is huge in the beginning of the month and later
became a upward trend till mid April while the downtrend continue till the last of the month which
is indicating of selling of shares.
DETAILS OF MACD CHARTS
1.HDFC BANK--MACD (Moving Average Convergence Divergence) is usually calculate to find
out the buying and selling trend where the blue line suggest the upward trend while the red line
suggest the downward trend.If we analyze the trends,where the blue MACD line is crossing up the
red MACD line,its time buy and where the red line is crossing up the Blue MACD line,the alert is
sell the stocks .The upward arrow suggests buy and the downward arrow suggest sell the stocks.In
mid august,the stocks prices were going down while in September,the trend was positive.While in
February the trends were going down and it continued upto Mid March but later the trend was
positive.
2.ICICI BANK-MACD is the 26day trend tool which shows the trend to investor when time to buy
and which time to sell.If we analyze the chart here,the trends are almost flat somewhere and
basically neutral which is a good sign for holding the stocks and sell at lower higher trend.In Mid
October,the blue line was crossing the red line and going up till mid November which is bullish
divergence and good time to buy the stocks and hold back until the red line crossing the blue line
up which is the time to sell.Again the trend is negative,continued upto mid December and till
February ,the trends were quiet flat and gaining no negative profits.while the trend went positive
in February but there was no crossing line between blue line and red linetill mid march which
shows no selling of stocks but trend was negative and continued upto april and till now the trend is
positive.

88
3.AXIS BANK- MACD is the 26days based tool which shows investors when to buy and when its
ti me to sell. Here from the chart, we can analyze that, from may 2107 to mid July 2017 the trends
were flat which mean it is neutral, giving no profits and no losses, but in last week of July, the
trend was upwards, little bullish it means, its time to buy and wait for the next crossing up the line
between redline to blue line. The august month trend shows a long bearish and negative trend
which continue upto September and in the month of September and mid October the trends were
flat and neutral but November trend shows a bullish trend which means its time to buy the stocks
and hold for the loner period of time till its time to sell in December, while mid January 2018the
trends were flats and there was a negative trend in till march which means selling the stocks and its
not the good time to buy the stocks. From march to second week of April, the trends were neutral
but the trend is positive and till the end of the chart, its bearish.
4.YES BANK-MACD is a 26days tool which shows investors when to buy and hold the shares and
when its time to sell the shares. If we analyze the trend, we can see that, from May to mid June ,the
trend was negative which manes the redline is crossing up to the blue line indicates to sell the
shares while the trend was growing but were flats till August which shows the redline is crossing
down to the blue line means to buy the shares. But the trend became bearish till September and in
October the trends flat downwards. In the November, the trend dropped to the lowest while a long
bullish trend was till the February 2018 which indicates the trend was growing upwards flat. in the
march, the trend was negative it means, its time to sell the shares, towards the end of he charts, the
trend is bullish an positive.
5.KOTAK MAHINDRA BANK-The MACD tool is the 26days pricing module which shows when
its time to buy and when its time to sell. If we look into the charts, we can know that, till the mid
june 2017,the trend s were flat and neutral and in the end of the june, the blue line as crossing the
red line which means its time to buy the shares but till mid july, the trends were bearish, and the
red line crosses the blue line means its time to sell the shares. In the beginning of the august, the
blue line is crossing down the red line which indicates selling the stocks and holding it till
septmber, where the red line is crossing down to blue line ,which shows its time to buy the shares.
in the month of October, the trend is bullish which means time to sell. the flat trend continue upto
mid November too febraury 2018 where the red line is crossing up to the blue line which means its
time to sell and before march the trend shows to buy. But in mid march, the blue line is crossing
the red line, its best time to buy the shares and hold for the next red upward line crossing the blue
line.
6.INDUSID BANK- In the august, the trend is like is not the best time to buy or sale the shares as
there is no long bullish/bearish trend to get a good capital appreciation. For the good profits,
investors have to wait till November where the trend is lower and flats, one can buy shares but
hold back up to month of February 2018 because the trend was going upward and best time to sell
to get a better profits. While in the end of the febrauary trend shows its time to buy and hold till
the mid of april. The end of chart shows the trend is going down.
7.IDFC BANK-In mid may ,the red line is crossing the blue line which indicates to sell the shares
and to wait till july where the investor can buy the shares as the blue line is crossing the red line

89
and though the trend is bullish ,it suggest that in the mid july its time to sell the shares as the red
line is crossing the blue line. The trend continue upto mid August where the blue line is crossing
up the red line which indicates its time to buy the shares and hold up to mid September where one
can sell the shares. For the regular investor, they need to hold back the shares till the upward is
approaching where the 2018 January shows to sell the shares to get better profits. There is a drop
till mid March and the trend is almost neutral but the in the month of April. the trend is growing
upwards.
8.DCB BANK
The trends were positive but flat while, there was drop in the july month trend where investor will
sell the shares. Till the month of December the trends are flat and neutral but the December trend is
bearish up so one need to wait to sell at better price where in the mid Januray 2018,the red line is
crossing up to the blue line, its time to sell the shares.The trend is negative till mid February where
the blue line crossing the red line which indicates to buy shares and hold back till the positive
trend. The end of chart shows a selling signal and trend is going down.
9.KARNATAKA BANK -The trends are flat and neutral , while the negative rend was in June and
it continue up to mid August as the blue line is crossing red line which indicates to buy the share
and the bearish trend continue up to mid September its time to sell the share. The neutral trend
continue up to January 2018,where the trend is negative and going downward till March, the
neutral lines continue till the end of April.
10.BANDHAN BANK-It shows that, the trend started in the month of April where the 26days tool
need time to portray the buy and sell signal. But the chart shows, the red candle stick shows a
huge selling of shares and it recovered later but after 12th of April there is sudden selling of shares
and after 25th of April, the trend is going up.
1.RSI CHARTS
1.HDFC BANK- RSI is relative strength index is a toll which indicates the buying nd selling the
shares when the price levl crosses over 70 mark and goes below the 30 mark.It shows that,the
uptrend is following from May to January 2018,while in mid January,the trend shows oversold.In
January,the trend shows over bought.
2.ICICI BANK
The upward trend is continuing up to August while in September to Mid October,the trend shows
oversold .in January,the trend shows the over bought while from February,the trend shows the
oversold of shares.
3.AXIS BANK-The neutral trend is going while in mid July to Mid August, the trend shows over
sold. In mid October, the shares are over sold and in January, the trend shows overbought while
the trend continue as oversold in the end of April.

90
4.YES BANk-
There is a upward trend in July To august it means the oer bought is done while in Mid October
th3 trend shows the oversold of the shares.In January the trend shows the overbought but in the
last of april,the trend is upward moving.
5.KOTAK MAHINDRA BANK-In October the both upward trend and downward trend was
established. In January,the trend shows that,the shares were over bought and in April the same over
bought continued.
6.INDUSIND BANK-There is a major upward trend from May 2017 to Mid October while in
October the shares were over sold but again upward trend till February .In February, the trend was
negative while till now teh trend is going upward.
7.DCB BANK-The upward trend till Mid June while In July, the stocks were negative trend. the
trend was going upward till January while a major oversold was one till February.but till the end of
the Apri, The stocks are over bought.
8.IDFC BANK-There was over bought in July and when it crossed more than 70 mark,there was a
over sold and till Mid September It continued .In November there was over bought while the trend
was down ward till January.In the month of January, the trend was upwards and oversold while
later the trend became downward and over sold.
9.KARNATAKA BANK
There was downward trend from July and continued fluctuating till January and from January to
till April,it was over sold.
10.BANDHAN BANK-There was major downward from the beginning while later it was over
bought but it continued downward till now.
ROC CHARTS
1.HDFC BANK--In Mid September , the trend was lowest in mid October there was major change in
downward trend. In January, the trend was highest but still fluctuating
2.ICICI BANK-There was lowest in July while till November, the trend was downwards. In
January, the trend was highest but still fluctuating.
3.AXIS BANK-In October the trend went to lowest while in January,it was highest.
4.YES BANK-There was a huge drop in trend till July while the highest trend was till August. In
October,the lowest trend continued upto Mid November.the high trend was in January.
5.KOTAK MAHINDRA BANK--There is a upward trend means higher trend and a lowest trend in
October. But its still Fluctuating till end.
6.INDUSIND BANK-The trend is higher till September while in Mid octobder,the trend was
lowest.But in 2018,the trend is high.

91
7.DCB BANK-The trend was lower in mid June while in August,the trend was lowest.In 2018,the
trend was high to lowest but then became positive.
8.IDFC BANK-The movement of trend was downward which is lower to lowest till July while In
2018,the trend was lowest and now neutral.
9.KARNATAKA BANK-The movement was downwards and lowest till Aprill.
10.BANDHAN BANK-The trend was lowest at the beginning while in Mid April,it was lower.

92
SUGGESTION-
1.HDFC,ICICI,AXIS banks are having good trends,need to be invested while Indusind
BANK and Kotak Mahindra bank is constantly paying better returns.
2.Banadhan banks is having lowest trends which needs more time to recover.
3.IDFC BANK and DCB bank is still struggling to recover, so investors need to hold back
the shares.
4.The false alarm should be avoided by looking into recent news about banks and looking
into Fundamental analysis.
5.Investor need to watch the fundamental analysis and expert advice before doing
investment.
6.If the trend is constantly bearish, investors should hold back the shares till it beomes the
upward trend.
7.The trends of Indusind Bank,Kotak Mahindra Bank is upward trend should be invested as
there is no controversial news about them.

93
CHAPTER-7
CONCLUSION & LIMITATION

94
CONCLUSION-
The performance and health of stock exchange is solely dependent on the behavior n pattern of
investments by the investor. Every investor wants high return at low risk and they buy and sell on
the basis of their perception causing stock market taking random walk. The capital market goes
through brisk changes, investors should look for right opportunities keeping in tune with the
dynamics of market environment. Technical analysis gives hints about the buy and sell of the
stocks to the investor .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.

95
LIMITATION-
1.The project is prepared in the recent availability of real time data only till 27th April 2018
2.The survey was limited due to false alarm in charts.
3.The charts only shows a over view of one year trends which does not show a proper intra
day trends.
4.The chart does not convey the recent good news and bad news which can make
speculation on share prices.
5.The analysis is beyond the fundamental analysis so only limited to technical charts.

96
CHAPTER-8
BIBLIOGRAPHY

97
BIBLIOGRAPHY-
1. Investment analysis and portfolio Management --Prasannan Chandra, McGraw Hill Pvt
Ltd, New Delhi, 5thEdition.
2. Investment management -- Preeti Singh, Himalaya Publishing house, 17th revised
Edition.
3. Security analysis and portfolio management--Punithavathy pandian, Vikas Publication
house Pvt Ltd.
4. Security analysis and portfolio management --KSasidharan and Alex K Mathews,
McGraw Hill Pvt Ltd,New Delhi.
5. Investment management, Security analysis andportfolio management—Bhalla V.K,S
Chand & Co Ltd,5th Edition, New Delhi
6. International journal of business & administration research review (2014), Volume 2,
issue 4: technicalanalysis in select stocks of Indiancompanies---C.BOOBALAN.
7. International journal of research in commences andmanagement (2013),Volume 4, issue
06: A study on volatility of shares in banking sectors”---G.B.SABARI RAJAN &
R.MURALI
www.stockchart.com
www.moneycontrol.com
www.economictimes.in
www.moneycontrol.com

98

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