Technical analysis in different sectors stocks

Projectskart.com
Visit www.projectskart.com for more information
INTRODUCTION
Today investing in financial securities such as shares, debentures, bonds, and
other financial securities are considered to be the most profitable investment avenues
when compare to other type of investments. However, these financial securities not only
ensures higher return but also bears higher risk. Therefore, the combination of these two
characteristics in the financial securities has created a challenging task for the investors.
Hence with an object of getting success in the investment activity, the investors tries to
predict the future behavior of the stocks by using some of the techniques among them the
important are:
A. FUNDAMENATAL ANALYSIS
B. TECHNICAL ANALYSIS.
A: Fundamental analysis:
Fundamental analysis is one of the important techniques, which is used to study the
future behavior of the stocks. It actually refers to analyses of present and future earning
capacity of the stocks based on the analysis of economy, industry and company as a
whole there by to determine the intrinsic values of the stocks.
In other words, fundamental analysis is mainly concerned with the determination of
intrinsic value of the stocks by analyzing the fundamental factors of economy, industry
and company as a whole. The intrinsic value of the stocks represents the real worth or
economic value, which is used by the fundamental analysts to identify the under priced
and overpriced securities in the market. It means, if the intrinsic value of the stock is
more than the market value, it considered as under priced and included in the portfolio.
On the other hand, if the intrinsic value of a stock is less then the market value then it is
considered as overpriced and excluded from the portfolio.

Projectskart.com
Thus, fundamental analysis is mainly concerned with the determination of intrinsic value
of stocks and based on that intrinsic value investment decisions are taken by the
fundamental analysts.
B: Technical analysis
It is another important technique, which is used to predict the future performance of
the stocks. It is mainly concerned with the study of historical price movements of the
stocks and on its volume of trade in the market to predict the future trend movements of
the stocks. However, it does not consider any fundamental factors of the company like
earnings, dividends, growth rates etc.
It means, technical analysts first predicts the future trend movements of the stocks
by using historical data and then take buy decision if trend movement shows upward
direction and sell decision if trend movement shows downward direction.
In other words, technical analysis does not involve in determination of any intrinsic
value of the stocks instead it studies the past price movements, volume and other chart
patterns to predict the future performance of the stocks.
Historical stock prices, volume of trade in the market, Charts, graphs etc, are the
important inputs, which are required to perform technical analysis. Charting is the key
activity in technical analysis and in fact there is no technical analysis with out charts.
Thus technical analysis mainly concentrates on the study of historical price movements
and on its volume to identity future trend movements and based on this trend movements
investment decisions are taken by technical analysts.
Projectskart.com Page 2

Projectskart.com
STATEMENT OF THE PROBLEM:
Technical analysis (or Chartism) is the study of price movement and trend in
markets in order to forecast future prices. Investment timing plays a crucial role for
trading in stock market trading. The investors face difficulty while identifying the
opportunities. So this analysis is directed towards the use of different tools of Technical
Analysis. Which help the investor to identify and decide when to buy or sell.
1.1 OBJECTIVES OF THE STUDY.
1: To gain the practical knowledge of technical analysis.
2: To know how technical tools are used to predict the future behavior of the stocks.
3: To know how charting techniques are useful to take buy or sell decisions.
4:To know how an investor can take rational Investment decisions by the study of Market
trends and movements.
5: To provide the investors with a technique with which they can make a decent profit by
Trading in stocks.
1.2: SCOPE OF THE STUDY.
1: The study is related to technical analysis to predict the future behavior of the stocks.
2: The analysis has been done on 5 selected stocks of NIFTY.
3: The analysis involves using of limited technical tools out of various tools.

Projectskart.com
1.3:METHODOLOGY OF STUDY:
1.3.1:Sampling design:
The samples selected are from the index of nifty of different industrial sectors.
The samples of companies selected are:
1: Industrial sector: Fast moving consumer goods.
Company: Indian Tobacco Company limited {ITC}.
2: Industrial sector: Information technology.
Company: Tata Consultancy Services {TCS}.
3: Industrial sector: Telecommunication.
Company: Reliance Communications {RCOM}.
1.3.2: Data source:
Primary data source:
Data collected from the Manager of Kotak Securities Ltd.,
Secondary data source:
Data collected from websites, magazines, textbooks and newspapers.

Projectskart.com
1.4:LIMITATIONS OF THE STUDY:
1: Analysis involves using of limited technical tools.
2: The study is restricted only to five selected stocks of nifty.
3: The study depends more on secondary data rather then on primary data.
4: We can‘t predict the prices of the stocks for long term.
5: This technical analysis can‘t be applicable to newly listed companies script.

Projectskart.com
COMPANY PROFILE
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is
the stock broking and distribution arm of the Kotak Mahindra Group. The company was
set up in 1994. Kotak Securities is a corporate member of both The Bombay Stock
Exchange and The National Stock Exchange of India Limited. Its operations include
stock broking and distribution of various financial products — including private and
secondary placement of debt and equity and mutual funds. Currently, Kotak Securities is
one of the largest broking houses in India with wide geographical reach. Kotak
Securities‘ network spans over 321 cities with 877 outlets, with an employee workforce
beyond 5100. The company is also a depository participant with National Securities
Depository Limited(NSDL) And Central Depository Services Limited (CDSL), providing
dual benefit services wherein the investors can avail the company‘s brokerage services
for executing the transactions and the depository services for settling them. Kotak
Securities Ltd. Processes more than 4,00,000 trades a day which is much higher even
than some of the renowned international brokers.
The portfolio Management Service provides top class service,
catering to the high end of the market. Portfolio Management from Kotak Securities
comes as an answer to those who would like to grow exponentially on the crest of the
stock market, with the backing of an expert. Unlike many other companies, Kotak
Securities Ltd., has a Centralized Risk Management System and an in-house Research
Team which allows it to offer the same levels of service to customers across all locations.
Kotak Securities was awarded as the most customer responsive company in the Financial
Institution sector by AVAYA Global Connect Award both in 2006 and 2007. Kotak
Securities Ltd has been the first in providing many products and services which have now
become industry standards. Some of them are:

Projectskart.com
Facility of Margin Finance to the customers
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
Mobile application to track portfolios
Auto Invest — A systematic investing plan in Equities and Mutual funds
Provision of margin against securities automatically against shares in the
customer‘s Demat account.
Kotak Securities’ Accolades include:
Best Brokerage Firm in India by Asia money for 2009, 2008, 2007 & 2006.
UTI MF – CNBC TV18 Financial Advisor Awards – Best Performing Equity
Broker (National) for the year 2009.
Finance Asia Award(2009) – Best Brokerage Firm In India.
Best Performing Equity Broker in India — CNBC Financial Advisor Awards
2008.
Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services
Sector.
The Leading Equity House in India in Thomson Extel Surveys Awards for the
year 2007.
Euro money Award (2007 & 2006) — Best Provider of Portfolio Management
Equities.
Euro money Award (2005)-Best Equities House In India.
Finance Asia Award (2005)-Best Broker In India.
Finance Asia Award (2004)- India‘s best Equity House.
Prime Ranking Award (2003-04)- Largest Distributor of IPO‘s.

Projectskart.com
EQUITY TRADING
Trading accounts :With a Kotak Securities Ltd online trading account customer can buy
and sell shares in an instant. Any time customer want, from anywhere you like. Kotak
Securities Ltd online trading account comes with a depository participant account where
customer can keep all shares, in safe custody with National Securities Depository.
Customer can also link a Kotak Securities online trading account to an Internet
companying account of your choice, so that you can move cash in and out of this account
easily, without the bother of writing cheques all the time.
Trading services:
Trading is super fast, extremely safe and highly secure at Kotak Securities . Apart from
providing the most advanced trading platform in the country, Kotak Securities also offers
facilities like instant cash transfer, after-market order, limit against shares and four times
exposure on margin.
Trading products:
For timely and accurate ―Buy and ―Sell recommendations, try our Super-Duper‖ ‖
trading products.
Transaction charges are reasonable at Kotak Securities Ltd
0.5% all inclusive for trades that result into delivery .
0.1% all-inclusive for intra-settlement trades .
Trading account opening charges = Rs750 only .
No transaction charges for depository participant (DP) account.
Note: our non-trading DP clients are charged 0.02% and 0.04% of trade value for
purchase and sale transactions respectively.
DP account maintenance charges (Rs 99 per quarter) waived until October 31, 2002.

Projectskart.com
Depository services
Customer can open a Depository Participant (DP) account, either through
a Kotak Securities branch or through a Kotak Securities franchisee. There is no fee for
opening a DP account with Kotak Securities Ltd. However a nominal deposit
(refundable) is charged towards services, which are adjusted against all future billings.
Kotak Securities offers dematerialization/rematerialization services to individual and
corporate investors. Dematerialization is the process by which a client can get physical
certificates converted into electronic balances maintained in his account with the DP.
Dematerialization is the process by which a client can get his electronic holdings
converted into physical certificates. Kotak Securities Ltd also offers Pledge facility,
which enables you to obtain loans against their dematerialized shares. So customer gets
liquidity without having to sell their shares.
Other investment products.
―Mutual Fund section provides exhaustive information on various mutual fund‖
schemes. You can also download from our site forms of various mutual fund schemes
including HDFC MF, JF MF, Pioneer ITI MF, Prudential ICICI MF, Templeton MF and
Zurich India MF.
Derivatives trading
It also provides derivatives trading services through our ground network of
share shops. With Kotak Securities Ltd you can invest in index and stock futures as well
as stock and index options on the NSE. Keep track of the derivatives market with
―Derivatives Info Kit and find out which strike to buy/sell using Black & Scholars‖
Option calculator. Content features at Kotak Securities Ltd online trading in equities is
made easy with the help of jargon-free investment advice. If you experience our

Projectskart.com
language, presentation style or content, you will find a common thread—the one that
helps you make informed investment decisions and Simplifies investing in stocks.
Track domestic and international stock indices with ―Indices at a Glance . Get real-time‖
stock quotes, live NSE ticker, daily top 5 gainers/losers, volume toppers and more market
statistics, all at Kotak Securities . Know about the market as it happens through ―Live
Markets . Keep abreast of the latest news and developments not only in the stock market‖
but also in the world outside with ―Live News brought to you by Reuters. We also‖
have a tie-up with Capital Market News Service for ―Archive News .‖
INDUSTRIAL PROFILE
Indian Stock Market
The working of stock exchanges in India started in 1875. BSE is the oldest
stock market in India. The history of Indian stock trading starts with 318 persons taking
membership in Native Share and Stock Brokers Association, which we now know by the
name Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition
from the Government of India. National Stock Exchange comes second to BSE in terms
of popularity. BSE and NSE represent themselves as synonyms of Indian stock market.
The history of Indian stock market is almost the same as the history of BSE.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex
is compiled based on the performance of the stocks of 30 financially sound benchmark
companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000,
3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was
the liberal financial policies announced by the then financial minister Dr. Man Mohan
Singh.

Projectskart.com
The up-beat mood of the market was suddenly lost with Harshad Mehta scam. It
came to public knowledge that Mr. Mehta, also known as the big-bull of Indian stock
market diverted huge funds from banks through fraudulent means. He played with 270
million shares of about 90 companies. Millions of small-scale investors became victims
to the fraud as the Sensex fell flat shedding 570 points.
To prevent such frauds, the Government formed The Securities and Exchange
Board of India, through an Act in 1992. SEBI is the statutory body that controls and
regulates the functioning of stock exchanges, brokers, sub-brokers, portfolio managers
investment advisors etc. SEBI oblige several rigid measures to protect the interest of
investors. Now with the inception of online trading and daily settlements the chances for
a fraud is nil, says top officials of SEBI.
Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was
crossed in June and the 8000 mark on September 8 in 2005. Many foreign institutional
investors (FII) are investing in Indian stock markets on a very large scale. The liberal
economic policies pursued by successive Governments attracted foreign institutional
investors to a large scale. Experts now believe the sensex can soar past 14000 mark
before 2010.
The unpredictable behavior of the market gave it a tag – ‗a volatile market.‘ The
factors that affected the market in the past were good monsoon, Bharatiya Janatha Party‘s
rise to power etc. The result of a cricket match between India and Pakistan also affected
the movements in Indian stock market.
The National Democratic Alliance led by BJP, during 2004 public elections
unsuccessfully tried to ride on the market sentiments to power. NDA was voted out of
power and the sensex recorded the biggest fall in a day amidst fears that the Congress-
Communist coalition would stall economic reforms. Later prime minister Man Mohan

Projectskart.com
Singh‘s assurance of ‗reforms with a human face‘ cast off the fears and market reacted
sharply to touch the highest ever mark of 8500.
India, after United States hosts the largest number of listed companies. Global investors
now ardently seek India as their preferred location for investment. Once viewed with
skepticism, stock market now appeals to middle class Indians also. Many Indians
working in foreign countries now divert their savings to stocks. This recent phenomenon
is the result of opening up of online trading and diminished interest rates from banks. The
stockbrokers based in India are opening offices in different countries mainly to cater the
needs of Non Resident Indians. The time factor also works for the NRIs. They can buy or
sell stock online after returning from their work
The recent incidents that led to growing interest among Indian middle class
are the initial public offers announced by Tata Consultancy Services, Maruti Udyog
Limited, ONGC and big names like that. Good monsoons always raise the market
sentiments. A good monsoon means improved agricultural produce and more spending
capacity among rural folk. The bullish run of the stock market can be associated with a
steady growth of around 6% in GDP, the growth of Indian companies to MNCs, large
potential of growth in the fields of telecommunication, mass media, education, tourism
and IT sectors backed by economic reforms ensure that Indian stock market continues its
bull run.
Trading Pattern of the Indian Stock Market
Trading in Indian stock exchanges is limited to listed securities of public
limited companies. They are broadly divided into two categories, namely, specified
securities (forward list) and non-specified securities (cash list). Equity shares of dividend
paying, growth-oriented companies with a paid-up capital of at least Rs.50 million and a
market capitalization of at least Rs.100 million and having more than 20,000 shareholders
are, normally, put in the specified group and the balance in non-specified group.

Projectskart.com
Two types of transactions can be carried out on the Indian stock exchanges:
(a) Spot delivery transactions "for delivery and payment within the time or on the date
stipulated when entering into the contract which shall not be more than 14 days
following the date of the contract : and‖
(b) Forward transactions "delivery and payment can be extended by further period of 14
days each so that the overall period does not exceed 90 days from the date of the
contract". The latter is permitted only in the case of specified shares. The brokers who
carry over the outstanding pay carry over charges (can tango or backwardation) which
are usually determined by the rates of interest prevailing.
A member broker in an Indian stock exchange can act as an agent,
buy and sell securities for his clients on a commission basis and also can act as a trader or
dealer as a principal, buy and sell securities on his own account and risk, in contrast with
the practice prevailing on New York and London Stock Exchanges, where a member can
act as a jobber or a broker only.
The nature of trading on Indian Stock Exchanges are that of age old
conventional style of face-to-face trading with bids and offers being made by open
outcry. However, there is a great amount of effort to modernize the Indian stock
exchanges in the very recent times.

Projectskart.com
Trading products of kotak securities Ltd.
For timely and accurate "Buy" and "Sell" recommendations, try our Super-Duper
trading products. The wide range on offer includes –
Equities
Derivatives
Currency trading.
Future and option (F&O)
Custody accounts.
Mutual funds.
Life insurance.
General insurance.
Loans against shares.
IPO
Portfolio Management service.(PMS)
Property securities
Margin funding

Projectskart.com
STRENGTHS:
Kotak is one of the leading retail financial service companies in the country and in
the Middle East with membership in NSE and BSE.
Company continues to achieve cost efficiencies through the application
of technology.
Kotak is a charter member of the financial planning standards board of India
and is one of the largest brokers in the country.
It is listed on the BSE & NSE and its market capitalization is over Rs.777.6 crores
It is the first Indian stock broking company to commence domestic retail
brokerage operations in any foreign country through its joint venture
Kotak renders quality equity trading services.
It is a highly innovative company and among much industry first to its
credit prominent is the launch of internal trading in 2000.
It launched branches exclusively for women investors.
It brand is popular and the brand image can be capitalised.
It has well experienced staff and good infrastructure.
It follows corporate governance norms and adopts best management practices.
Wide number of products and services and also branches.
Good research team which give suggestion to buy different sectors.
WEAKNESS:
Many of their competitors have significantly greater financial, technical, marketing and
other resources than available to Kotak.
Unable to compete with the brokerage rates of their competitors.
Less number of branches in north India.Lack of efficient and effective strategies in
attracting customers. Unable to market their products & services more efficiently

Projectskart.com
OPPORTUNITIES:
The India financial market has a very high growth potential. The macroeconomic
fundamental are sound to allow the economy to make rapid strides. Economic expansion will result in
greater disposable incomes and larger number of investors.
Introduction of new instruments in the F&O segment etc.
o Trapping new markets.
o Target the rural and sub urban areas.
o Growing India economy opens up huge market for stock broking companies.
o Company believes that their culture helps to attract and retain the best talent.
o Company is committed to achieve profitable progress consistently
o The manifold increase in capital mobile station from the primary market.
o Increase the resource mobilization by mutual funds
o Phenomenal growth in secondary market volumes.
THREAT:
o The stock broking industry has recently witnessed intense competition falling
brokerage rates & the entry of several big player. Increased level of competition is
a cause of concerns.
o Competition from financial institution like banks investing firms etc.
o Uncertainty in the market.
o Changes in India political economic conditions.
o Changes in government polices and regulation.Dependency on
international market

Projectskart.com
3: LITERATURE REVIEW
AN OVERVIEW OF TECHNICAL ANALYSIS
Concept of Technical analysis :
It is the process of identifying trend reversal at an earlier stage to formulate the buying
and selling strategy. With the help of several indictors they analyze the relationship
between price- volume and supply –demand for the overall market and the individual
stock. Volume is favorable on the upswing it means the number of share traded is greater
than before and on the downside the number of shares traded dwindles. If it is the other
way round, trend reversal can be expected.
Technical analysis is mainly concerned with the study of historical past price
movements of the stocks and on its volume of trade in the market to predict the future
behavior of the stocks. However, it does not consider any fundamental factors of the
company like earnings, growth rates, dividends, financial ratios etc. The rational behind
technical analysis is that the share price behavior repeats itself over a time and technical
analysts attempt to derive methods to predict these repetitions.
The basic concept behind technical analysis is that prices move in trends or waves,
which may be upward or downward and the present trends are influenced by past trends
and the projection of future trends is possible by an analysis of past price trends. Hence,
technical analysts use this trend as an important tool for security analysis and mainly
concentrate on trend movements.
Technical analysis is applicable to all stocks, indices, commodities, futures or for
any other tradable instruments where the prices are influenced by the forces of demand
and supply. Price refers to any combination of the open, high, low, close for a given
security over a specific period. The period 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.

Projectskart.com
Technical analysis v/s fundamental analysis
Technical analysis and fundamental analysis are the two main schools of thought in the
financial markets. Technical analysts look on trend movements to predict the future
behavior of the stocks where as Fundamental analysts look on fundamentals of the
economy, industry and company as a whole to predict the future behavior of the stocks.
Fundamental analysis is based on what ―SHOULD happen where as Technical analysis‖
is based on what ―DOES happen.‖
The following points explain the major differences between this two and it also
states how technical and fundamental analysis are used together to analyze securities to
gain better results.
1: Charts v/s financial statements.
Technical analysts analyze securities by the use of charts and it states that there is no use
of analyzing company's fundamentals since market discounts every thing and it believes,
all the information‘s about a stock can be found in its charts and there is no need to study
any fundamentals of the economy, industry or company. On the other hand, Fundamental
analysts analyze securities by the use of financial statements and by looking at the
balance sheet, cash flow statement and income statement they determine intrinsic value
for the stocks and based on that they identifies mispriced stocks in the
market to take investment decisions.
2: Trading V/s Investing.
In general, words, technical analysis is used for a trade where traders buy stocks
with an expectation of selling it in future for higher prices. On the other hand,
Fundamental analysis is used to make an investment where Investors buy stocks with an
expectation of increase in the economic value of stocks.

Projectskart.com
3: Time Horizon
Technical analysis can be used on a timeframe of weeks, days or even minutes and
it is best suitable for short-term investment decisions or for speculation. Where as
Fundamental analysis often looks at data over a number of years and it is more suitable
for long-term investments decisions rather then for speculation.
How do Technical and Fundamental Analysts make investment decisions?
Technical analysts take investment decisions by examining the past market data to
estimate future price trends. They first identify new trends and based on the possibility of
new trend movements analysts take investment decisions. It means, if the future
movement of the trend is in upward direction, then they take buy decision where as if the
future trend movement is in downward direction, then they take sell decision.
Fundamental analysts take investment decisions by examining the economy,
industry and company as a whole to determine the intrinsic value of the stocks. Based on
this intrinsic value fundamental analysts identifies overpriced and underpriced securities
in the market to take investment decisions. It means they buy stock if it is under priced
and sell stock if it is overpriced.
Why Technical Analysts believe Technical Analysis is superior
According to Efficient market hypothesis theory {EMH}, the future prices of the
stocks are completely depending upon the information received by the market and there
is no scope for fundamental or technical analyst to beat the market. It means if the market
receives positive information relating to a particular stock or an industry then the prices
of that particular stock move upwards. On the other hand, if the market receives negative
information relating to a particular stock or an industry, then the prices of that particular
stock move downwards.
However, against EMH theory technical analyst argues that whatever the information
received by the market can t be incorporated on the prices of the stocks with in a short

Projectskart.com
period because there is a need of some time to influence the information‘s on the prices
of the stocks. It means, since there is a time gap between observing of information‘s and
incorporating this information‘s on the prices of the stocks, the technical analyst make
use of this time gap and can beat the market or can predict the future possibilities of trend
movements. Hence, this gives an opportunity to technical analysts to earn excess returns
by studying the chart patterns in price movements and trading accordingly.
Secondly, Technical analysts argues that it is too difficult for fundamental analysts
to pinpoint a specific time to take investment actions even if they have identified the
under-valued or over-valued securities. Where as, Technical analysts take quick
investment decisions as soon as the trend changes its direction or when trend moves to
new equilibrium point.
Finally, technical analysts argues that analysis of fundamentals and financial
statement of a company is not sufficiently enough to take right investment decisions.
So based on this grounds technical analysts believes that they are superior then
fundamental analysts.

Projectskart.com
Assumptions of technical analysis
1. The market value of the scrip is determined by the interaction of demand and
supply.
2. The market discounts everything. The price of the security quoted represents the
hopes, fears and inside information received by the market players. Inside
information regarding the issuing of bonus shares, and right issue may support the
prices. The loss of earnings and information‘s regarding the forthcoming labour
problem may result in fall in price. These factors may cause a shift in demand and
supply, changing the direction of trends.
3. The market always moves in trend. Except for minor deviations, the stock prices
move in trends. The price may create definite patterns too. The trend may be either
increasing or decreasing. The trend continues for sometime and then it reverses.
4. Any layman knows the fact that history repeats itself. It is true to the stock market
also. In the rising market investors psychology have up beats and they purchase
the shares in greater volumes, driving the prices higher. At the same time, in the
down trend they may be very eager to get out of the market by selling them and
thus plunging the same price further. The market technicians assume that past
prices predict the future.

Projectskart.com
DOW THEORY.
What ever is generally being accepted today as technical analysis has its roots in the Dow
Theory. The theory is so called because Charles h. Dow who was the editor of the wall
street journal in U.S.A. Charles Dow formulated a hypothesis that the stock market does
not move on a random basis formulated it but it is influenced by three distinct cyclical
trends that guide its direction.
Dow actually developed this theory to explain the movement of the indices exclusively
on closing prices. However, the theory is also applicable to all individual scrips. The
three important hypotheses of the theory are as follows:
The first hypothesis states that the stock market indices are influenced by three distinct
cyclical trends namely primary, intermediary and short-term trends.
The second hypothesis states that market discounts every thing. This is one of the basic
assumption on which technical analysis rests. As per this hypothesis, the market
discounts the hopes, fears, muscle power, insider information, etc. In fact, according to
Dow, natural calamities like earthquakes, fires, etc are also quickly discounted by the
market.
As per the third hypothesis, the theory is not infallible [accurate]. It is not a tool to
beat the market, but a way to understand it better. In addition, Dow does not give the time
frame or the likely price targets; he just talks of the broad upward and downward
movement, which according to him is the most important movement for the investors. As
per this theory, there are three types of trends that are in operation at any given point of
time. These are the primary trend, intermediate trend and the short-term trend. Dow
defined primary trend as a trend, which continues to be for more then one year and which
never lose its existence with in a short period and even an individual or a group of
investors can t influence on this trend. Secondly, intermediary trend is another trend,
which continues to be for three to six months indicating corrections in the market of

Projectskart.com
oversold and overbought market situations. That is why it is also called as corrections of
the market. Lastly, short-term trend is a type of trend, which indicates the day-to-day
fluctuations of the market and which can be influenced by an individual, or by a small
group of investors. The short-term trend lasts for two to three days to an equal number of
weeks. Following figure is an example of Primary and Secondary trends.
Y
Primary trend
Secondary
reactions
Secondary
reactions
Secondary
reactions
O X
In the above figure, line chart is an example for closing prices of market index. The
primary trend of the market is upward but secondary trends are almost in downward
direction indicating corrections of oversold and overbought market conditions. Actually
secondary trend is nothing but corrections of the market. Among three movements in the
market, the primary market is considered the most important movement since by
identifying it; the investor can earn abnormal profits.

Projectskart.com
ELLIOT WAVE THEORY
There are many theories, which seek to explain the behavior of the stock market. One
such theory, in technical analysis, is the wave theory formulated by RALPH ELLIOT,
known as Elliot wave theory. Elliot formulated the theory in 1934 after analyzing
seventy-five years of stock price movements and charts. From his studies, he concluded
that the market movement was quite orderly and followed a pattern of waves.
A wave is a movement of the market price from one change in the direction to the next
change in the same direction. The waves are the result of buying and selling impulses
emerging from demand and supply pressures on the market. Depending on the demand
and supply pressures, waves are generated in the prices.
The Elliot wave theory is based on the principle that action is followed by reaction.
Although the wave theory is not perfect and there are many limitations in its practical
use, it is accepted as one of the tools of technical analysis. The theory is used for
predicting the future price changes and in deciding the timing of investment.
Tools used in technical analysis
Trend:
Trend is one of the important technical tool, which is used in technical analysis. In
financial terms trend refers to the general direction in which a security or market is
headed. In any given chart, we can probably notice that prices do not tend to move in a
straight line in any direction for longer period rather then, it moves in the series of high
and low. In technical analysis, this high and low constitutes a trend.

Projectskart.com
Importance of Trend:
Trend analysis is very helpful because moving with trends, and not against them, will
lead to profit for an investor. Therefore, it is very important to understand and identify
trends so that we can trade rather than against them. Two important sayings in technical
analysis are
‗Trend is your ―friend" and don't buck the trend‖
Types of Trends:
Trends are of three types
1: Uptrend.
2: Downtrend.
3: Horizontal trend.
1: Uptrend:
It is the one, which explains the price movement of a financial asset when the overall
direction is upward. Following is an example for uptrend.
The above figure shows how the successive peak {boom} and trough [depression} is
located above the previous ones. For example, the peak at Point 4 is higher than the peak
at Point 2. The uptrend will be deemed to be broken if the next low on the chart falls

Projectskart.com
below Point 5. The main goal of technical analyst is to identify a strong uptrend and to
earn profit until it reversals its direction.
2: Downtrend:
It is the one, which explains the price movement of a financial asset when the overall
direction is downward. Following is an example for downtrend.
The above figure shows how successive peak and trough is lower than the previous one.
For example, the low at Point 3 is lower than the low at Point 1. The downtrend will be
deemed broken, once the price closes above the high at Point 4. Almost all traders tries to
avoid downtrends since it influence more on the value of there investment adversely.
Downtrend can last for minutes, days, weeks, months or even years.
3: Horizontal trends:
This type of trends describes the horizontal price movements of a financial asset when
the forces of demand and supply are nearly equal. Horizontal trend is also known as a
sideways price trend.

Projectskart.com
Trend lengths
A trend of any direction can be classified as a long-term trend, intermediate trend or a
short-term trend. Following is an example for trend lengths.
3.1trend lengths
Long-term trend refers to a major trend, which is generally categorized as one lasting
longer than a year. Intermediate trend refers to a trend, which is considered to last
between one and three months. Short-term trend refers to a small trend, which is less than
a month.
A long-term trend is composed of several intermediate trends, which often move
against the direction of the major trend. If the major trend is upward and there is a
downward correction in price movement followed by a continuation of the uptrend, the
correction is considered an intermediate trend. The short-term trends are components of
both major and intermediate trends.

Projectskart.com
Charts and its types.
Chart is the basic tool and key component to perform technical analysis and in fact
with out charts there is no technical analysis. In technical terms chart refers to a graphical
representation of a series of prices over a set period and generally, chart refers to price
chart.
The Time Scale
The time scale refers to the range of dates at the bottom of the chart, which can vary from
decades to seconds. The most frequently used time scales are intraday, daily, weekly,
monthly, quarterly and annually. The shorter the time frame, the more detailed the chart.
Each data point can represent the closing price of the period or show the open, the high,
the low and the close depending upon the chart used.
The Price Scale
The price scale is on the right-hand side of the chart. It shows a stock's current price
and compares it to past data points. This may seem like a simple concept in that the price
scale goes from lower prices to higher prices as you move along the scale from the
bottom to the top. Notice how the data used to create the charts is the same, but the way
the data is plotted and shown in the charts is different.
Types of price charts;
1: LINE CHART OR CLOUSNG CHART
2: BAR CHART
3: JAPANESE CANDLESTICK CHART.

Projectskart.com
1: Line Chart
Line chart is one of the basic charting in technical analysis, which represents the
closing prices of the stocks. The line is formed by connecting the closing prices over the
period. Line charts do not provide any visual information about a particular stock relating
to high, low and opening prices.
However, the closing price is often considered the most important price in stock data
compared to the high and that is why, only closing values are used to draw line chart.
Following is an example for line chart. 3.2:line chart example
In the above chart, we can observe the line draw by using the closing points of nifty
index over a definite period. By the use of this chart, an investor or an analysts can easily
come to down the over all day-to-day fluctuations of the stock over a period.

Projectskart.com
2: Bar chart
It is perhaps the most popular chart used by the technical analysts. In this chart, the
highest price, the lowest price and the closing price of each day are plotted on a day-to-
day basis. A bar is formed by joining the highest price and the lowest price of a particular
day by a vertical line. The top of the bar represents the highest price of the day, the
bottom of the bar represents the lowest price of the day and a small horizontal hash on the
right of the bar is used to indicate the closing price of the day. Sometimes, the opening
price of the day is marked as a hash on the left side of the bar. Following is an example
for bar chart.
3.3: Bar chart example
In the above chart, we can observe the bars drawn by using the open, high, low and
closing points of nifty index over a period. By the use of this, an investor can come to
know about the open, high, low and closing prices of stocks or an index for a definite
period.

Projectskart.com
3: JAPANESE CANDLESTICK CHART
The Japanese candlestick chart shows the highest price, the lowest price, the opening
price and the closing price of stocks on day-to-day basis. A vertical bar joins the highest
price and the lowest price of a day. The opening price and closing price of the day, which
would fall between the highest and the lowest prices, would be represented by a rectangle
so that the price bar chart looks like a candlestick. Thus, a candlestick represents each
day‘s activity.
There are mainly three types of candlesticks, the white, and the black and the doji or
neutral candlestick. A white or green candlestick is used to represent a situation where
the closing price of the day is higher than opening prices. A black or red candlestick is
used when the closing price of the day is lower than the opening prices.
Thus, a white candlestick indicates a bullish trend while a black candlestick indicates a
bearish trend. A doji candlestick is the one where the opening price and the closing price
of the day are the same.
3.4: Following is an example for Japanese candlestick chart.

Projectskart.com
Japanese candlestick chart
1: Green is an example of a bullish pattern and here the stock opened at (or near)
low and closed near its high.
2: Red is an example of a bearish pattern and here the stock opened at (or near)
high and dropped substantially to close near its low.
3: This is called a Hammer, which is a bullish pattern, and it only occurs after the stock
price has dropped for several days.
4: This is called a Star, typically indicating a reversal or indecision situation.

Projectskart.com
Chart patterns
When the price charts are drawn close together for several days, certain patterns
emerge. The technical analysts to identify trend reversal and to predict the future price
movements of the stocks use these patterns. The chart patterns can be classified as,
1: Support and Resistance patterns
2: Reversal patterns
1: Support and Resistance
Support and resistance are the two important chart patterns, which is often used by
all technical analysts. But many traders who begin with technical analysis find this
concept hard to believe and don't realize that this phenomenon occurs rather frequently.
Support and resistance are the two important price levels at which many traders
are willing to purchase the stock {in case of support} or willing to sell the stock {in case
of resistance}. Support level is the price level where the sufficient buying pressures
forces to close down the ongoing fall in the prices of the stocks where as Resistance level
is the price level where the sufficient selling pressures forces to close down the ongoing
rise in the prices of the stocks. It means the demand and supply forces operating in the
market influence these two price levels.
Support occurs when the share price moves downwards but bounces back or reverses
direction every time when it reaches a particular level. On the other hand, Resistance
occurs when the share price moves upwards but bounces back or reverse direction every
time when it reaches a particular level.

Projectskart.com
3.5:Following figures clearly shows the nature of Support and Resistance price levels:
Example of Support price level.
3.6:Example of Resistance price level.

Projectskart.com
Note: If stock price violates the Support level Sell signal
If stock price violates the Resistance level Buy signal.
2: Reversal patterns.
Uptrend and downtrend are the two important price movements where they reverses
there directions after a period. These reversals can be identified with the help of certain
chart formations that typically occur during these trend reversals. Thus, reversal patterns
are chart formations that tend to signal a change in direction of earlier trend. Following
are the important reversal chart patterns in technical analysis.
1: Head and shoulders.
The most popular reversal pattern is the head and shoulder formation, which usually
occurs at the end of a long uptrend. Head and shoulders is a reversal chart pattern, signals
that the security is likely to move against the previous trend. This chart pattern looks likes
one head and two shoulders of a man and hence it is called as head and shoulders. This
pattern is identified when the price action of a security meets the following characteristics
1. Rises to a peak and subsequently declines.
2. Then, the price rises above the former peak and again declines.
3. Finally, rises again, but not to the second peak, and declines once more.

Projectskart.com
3.7:Following figure is an example for Head and Shoulders chart pattern.
2: Inverse Head and shoulders.
It is another important chart pattern, which is used by the technical analysts to predict
the reversal of a current downtrend. This pattern is identified when the price action of a
security meets the following characteristics
1. The price falls to a trough and then rises.
2. The price falls below the former trough and then rises again.
3. Finally, the price falls again, but not as far as the second trough.

Projectskart.com
3.8:Following figure is an example of Inverse Head and Shoulder formation.
The inverse head and shoulder pattern is also one of the important reversal patterns
indicating an oncoming bullish phase. when this type of pattern is formed and if the stock
prices rises above the resistance of neckline, investors starts to take long position with an
expatiation of making profit when prices of the stocks reaches peak.
3: Triangles.
Triangles are the most popular and well-known continuation chart pattern used in
technical analysis. Triangles are formed when there is lot of fluctuations in the market
and its formation may occur during a bull phase or a bear phase.
Triangles may be in the form of three types:
A: Symmetrical triangles
B: Ascending triangles
C: Descending triangles

Projectskart.com
A: Symmetrical triangle
This type of triangles are made up of series of fluctuations and each fluctuation is
smaller then the previous one. This is a period of indecision for the analysts because in
future the trend may look neither the peak nor the bottom since at this point of time the
demand and supply forces operating in the market goes together. It means, in this
situation analysts cannot take any decisions since the trend may break away either way.
3.9: Following diagram is an example for symmetrical triangle.
In the above figure, we can observe the series of fluctuations where by the trend may
move in upward or downward direction after breaking of symmetrical triangle.

Projectskart.com
B: Ascending triangle
It is nothing but a signal of bullish pattern, which gives an indication of
increase in the price of a security in future. 3.10: Following figure is an example for
ascending triangle.
In the above figure, we can observe that, how the price of a security is breaking
resistance price level and moving in upward direction with an indication of bullish trend
line.
C: Descending triangle;
It is nothing but a signal of bearish pattern, which gives an indication of decrease in the
price of a security in future. 3.11:Following figure is an example of descending triangle.

Projectskart.com
In the above the figure, we can observe that how the price of a security is breaking
support price level and moving in the downward direction with an indication of bearish
trend line.
4: Flags.
This is another common chart pattern, which emerge before a fall or rise in the price of
a security. These patterns show the market rectification of overbought or oversold
situations. The time taken to form this chart pattern is quick which ranges from three to
four days. If the pattern is longer then it takes three weeks to complete the pattern.
3.12:Following is an example for Flag chart pattern.
5: Tops and bottoms
Tops and bottoms formation is interesting to watch but what is more important is the
middle portion of it because the investor has to buy when uptrend starts and has to exit
before the top is reached since trend reverse its direction after meeting certain level.
Double top:
This type of formation signals the end of one upward trend and the beginning of another
downward trend. The double top bottom pattern look like the letter ―M which is‖

Projectskart.com
formed when the stock price rises to a certain level, falls rapidly, again rises to the same
height or more, and turns downwards. The double top indicates the onset of the bear
market and results are influenced by the volume and trend.
3.13: Following is an example for double top chart pattern:
In the above figure, we can observe the battle between the buyers and the sellers. It
means, when sellers lose interest to sell more shares, then price moves upwards. On the
other hand, when buyers lose interest to buy more shares, then price moves downwards.
Double bottom:
This type of formation signals the end of one downtrend and the beginning of
another uptrend. The double top bottom pattern look like the letter ―W which is formed‖
when the stock price falls to a certain level, rises rapidly, again falls to the same height or
more, and turns upwards. Technical analysts view double bottom as a sigh for bull
market.

Projectskart.com
3.14:Following is an example for double bottom chart pattern.
Technical indicators:
Technical indicators refer to those tools, which are used to find the direction of the
overall market since the overall market movement‘s influence on individual share prices.
In technical analysis, overall forecasting or analysis is considered as more effective than
the individual forecasting. Below are the important mathematical indicators in technical
analysis.

Projectskart.com
Mathematical indicators.
1: Moving averages.
Moving average is one of the important mathematical indictor, which is used to show
the average price movements of a security over a period. Moving averages are used to
highlight the direction of a trend and to smooth out the price and volume fluctuations of a
security for better interpretations. Once the day-to-day fluctuations are removed, traders
are in better position to take decisions easily.
It should be noted that the period does not always need to be in days. Moving
averages can also be calculated using minutes, hours, weeks, months, quarters, years etc.
A day trader { intraday trading} looks 50-minutes moving average to get an idea of next
hour price movement and other traders normally looks one day, weekly, monthly or
yearly moving average charts to take investment decisions. It means to identify short term
trends 10 day to 30-day moving averages are used, in case of medium term trends 50 day
to 125-day moving averages are adopted and 200 days moving averages are used for
identifying long-term trends.
Types of moving average:
1: Simple moving average.
2: Exponential moving average.
A: Simple moving average. {SMA}
This is the most common method used to calculate the moving average of prices. It
simply takes the sum of all past closing prices over the time and divides the result by the
number of prices used in the calculation. .

Projectskart.com
Following is an example of simple moving average.
In the above chart, red line is an example of simple moving average for the period
of 10 days. In the above chart, we can observe how 10 days simple moving average is
reacting and moving very closer to price chart of nifty with out confusing with day-to-day
fluctuations. One of the important features of this moving average is it gives equal weight
age to all data, which is considered as one of the limitation of it by some technical
analysts. Anyhow, still moving average is more popular in technical analysis.

Projectskart.com
B: Exponential Moving Average. {EMA}
This moving average calculation uses a smoothing factor to place a higher weight
on recent data points and is regarded as much more efficient than the simple moving
average. The important thing to remember is EMA is more responsive to new information
when compare to simple moving average. This is the reason why all technical analysts
prefer EMA rather then other moving averages. This can be calculated by using the
flowing formula.
EMA = [current closing price - previous close] * factor + previous close
Where Factor = 2 / n+1
For example, close price is 35. Previous close is 33 and n = 10.
Then factor = 2/10+1 = 0.33
EMA= 35-33*0.33+33 = 33.66.
2: Oscillators.
Oscillators are the mathematical indicators calculated with the help of closing price
data. They help to identify overbought and oversold conditions in the market and the
possibility of trend reversals. Generally, oscillators are analyzed along with the price
chart. Oscillators indicate trend reversals that have to be confirmed with the price
movement of the scrip. Changes in the price should be correlated to changes in the supply
and demand forces then only buy and sell signals can be generated. For short term
trading, daily price oscillators are useful and it is calculated for all periods. Following are
the three important technical indicators to identify buy and sell signals.

Projectskart.com
1: Relative strength index {RSI}.
Relative strength index was developed by wells wilder. It is one of the powerful and
popular indicators, which identifies overbought and oversold market conditions along
with the signals of buying and selling opportunities in the market. It also shows the
strength and weakness of a particular scrip or market.
If the share price is falling and RSI is rising, a divergence is said to have occurred.
Divergence indicates the turning point of the market. If the RSI is rising in the
overbought zone, it would indicate the downfall of the price.
If RSI falls in the overbought zone, it gives a clear signal or sells. The term overbought
describes the price level at which momentum can no longer be maintained and the price
has to go down.
This condition occurs after a sharp rise in the price during a period of heavy
buying. When the RSI is in the oversold region, it generates the buy signal. The term
oversold is used to describe a security or market that has declined to an unreasonably low
level. This condition is characterized by an increase in sales and excess of net declines.
RSI for a stock is calculated by using the following formula:
RSI = 100 - {100/1 + RS}.
Where RS = Average gain per day / Average loss per day.

Projectskart.com
For better understanding, it can be explained with an example:
DAYS CLOSING GAIN PER LOSS PER DAYS CLOUSING GAIN PER LOSS PER
PRICES DAY DAY PRICES DAY DAY
1 130 - - 9 140 - -
2 132 2 - 10 142 2 -
3 130 - 2 11 139 - 3
4 135 5 - 12 141 2 -
5 137 2 - 13 145 4 -
6 134 - 3 14 143 - 2
7 136 2 - 15 143 2 -
8 140 4 - TOATL 25 10
14 Days average gain = 25 / 14 = 1.78, 14 Days average loss = 10 / 14 =
0.714.
RS = 1.786 / .714 = 2.50.
RSI = 100 – {100 / (1 +2.50)
= 100 – (100/3.50)
= 100 – 28.58 = 71.42.
Following figure is an example of RSI chart.

Projectskart.com
In the above chart RSI values rages from 0 to 100, where above 70 is considered
as oversold market condition and below 30 is considered as overbought market condition.
If RSI value crosses or if it goes near to 70 then it is an indication of bullish market
where in future the prices of a stock falls. On the other hand, if RSI value crosses or goes
near to 30 then it is an indication of bullish market where in future the prices of a stock
rises. The most commonly used time period for the calculation of RSI is 14 and 9 days. If
the time taken for calculation is more, the possibilities of getting wrong signals are
reduced The term overbought describes the price level at which momentum can no longer
be maintained and the price has to go down. This condition occurs after a sharp rise in
price during a period of heavy buying. When the RSI is in the oversold region, it
generates the buy signal. The term oversold is used to describe a security or market that
has declined to an unreasonably low level.

Projectskart.com
2: Rate of change {ROC}
It is another popular oscillator, which measures the rate of change of the current price as
a change in the prices of certain number of days or weeks back. To calculate a 7-day rate
of change, each day‘s price is divided by the price, which prevailed 7 days ago, and then
1 is subtracted from this price ratio.
ROC= current price / price ‘n’ period ago – 1
The values obtained in ROC may be positive, negative or zero. When the ROC line is
above the zero line, the price is rising and when it is below the zero line, the price is
falling. Greater the changes in the prices, the greater will be the change in ROC.
ROC could be used to define overbought and oversold markets.
3: Moving average convergence and divergence {MACD}
MACD is an oscillator that measures the convergence [meeting] and divergence
[deviation] between two exponential moving averages. A short-term exponential moving
average and a long term exponential moving averages are calculated with the help of the
closing price data. A 12-day and 48-day exponential moving averages constitute a
popular combination. The difference between the short term EMA and the long term
EMA represents MACD
MACD = short-term moving average – long-term moving average.
MACD values may be positive, negative or zero. If the MACD line crosses the zero line
from above, the trend can be considered to have turned into bearish, signaling selling
opportunity.

Projectskart.com
ANALYSIS AND INTERPRETATION
1. TATA CONSULTENCY SERVICES
Company profile:
TCS is a leading provider of highly flexible financial management software that powers
mid-sized businesses. Tata Consultancy Services Limited (TCS) is one of the Indian
software services and consulting company and India‘s largest provider of information
technology and business process outsourcing services which came into existence in the
year 1968. TCS is presently the top software services firm in Asia. Apart from IT sector,
TATA GROUP was much diversified even in the areas of energy, telecommunications,
financial services, manufacturing, chemicals, engineering, materials, government and
healthcare.
Headquarters Mumbai, India.
Industry Software Services.
Type Public Company.
Status Operating.
Company Size 1,49,654 employees.
Revenue US$ 5.70 billion (2009).
Founded 1968.
Website http://www.tcs.com.
Board of directors.

Projectskart.com
1: N Ratan. Tata : Chairman.
2: S. Ramadori : Chief executive officer and Managing director.
3: N. Chandrasekaran : Chief operating officer and Executive director.
4: S. Mahalingam : Chief Financial Officer and Executive Director.
Objectives.
1: To establish the company as the best global organization for large-scale deployment
of financial management software solutions on the Caches platform.
2: To establish a fully object-oriented component based application, which will enable us
to deliver robust software quicker and more efficiently than any competitor.
3: To ensure that customers can operate their business software solutions on
infrastructures those match their need.
EXCHANGES LISTED:
1: BOMBAY STOCK EXCHANGE.
2: NATIONAL STOCK EXCHANGE
3: LONDON STOCK EXCHANGE.

Projectskart.com
CURRENT FINANCIAL STATUS OF THE COMPANY.
Sales : 18,290 {cr}.
Operating profit margin : 30 %
Net Income : US$ 1.25 billion (2009)
Total Assets : US$4.36 billion (2009)
Earning per share {Rs} : 48
Price earning ratio {times} : 12 .
Share price for the year : Year high : 710, Year low : 414.

Projectskart.com
2: Indian Tobacco Company Ltd {ITC}.
Company profile:
ITC was set up in the year 1910 by the name of 'Imperial Tobacco Company of India
Limited' but now the company is called as Indian Tobacco Company Ltd. products. ITC
is a market leader in the businesses of Cigarettes, Hotels, Paperboards, Packaging and
Agricultural Exports. It is gaining its market share very rapidly in the businesses of
Packaged Foods & Confectionery, Branded Apparel and Greeting Cards & Stationery.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one
of the country's biggest foreign exchange earners.
Type
Founded
Headquarters
Key people
Industry
Products
Revenue
Employees
Website
Public (BSE:ITC)
24-08-1910
Kolkata, India
Yogesh Chander Deveshwar : Chairman.
K. Vaidyanath : Director.
Partho Chatterjee : CFO.
Tobacco, foods, hotels, stationery, greeting cards
Cigarettes, packaged food, hotels, apparel
▲ $4.75 billion USD
. 21,000.
www.itcportal.com

Projectskart.com
Board of directors:
Chairman : T.C. Deveshwar.
Executive Director : Anup singh and K.V. Vaidyanath.
Non-Executive Directors : Anil Baijal, R.K.Kaul S.B.Mathur, D.K.Mehrotra,
P.B.Ramanujam, and B.Vijayaraghavan.
Objectives:
1: The primary focus of ITC's Social Development Initiatives is to create sustainable
sources of farm and off-farm livelihoods and to improve the social infrastructure
especially in areas where it influences women and children. In pursuit of these objectives,
the following goals have been set for the next five years:
2: Web-enable 10 million farmers through 20,000 e-Choupals in 100,000 villages.
Bring at least 50,000 hectares under soil and moisture conservation practices.
3: Transform at least 1,00,000 hectares of wastelands into productive and revenue-
generating assets for the poor.
4: Create at least 10,000 women entrepreneurs with a sustainable source of
supplementary incomes.
EXCHANGES LISTED:
1: BOMBAY STOCK EXCHANGE
3: NEW YORK STOCK EXCHANGE.

Projectskart.com
CURRENT FINANCIAL STATUS OF THE COMPANY:
Sales :
Operating profit margin :
Net profit :
Earning per share {Rs} :
Price earning ratio {times} :
Share price for the year :
13948 {cr}
36 %
3120.1 {cr}
8.5
22
Year high: 254, Year low: 198.

Projectskart.com
3.Reliance communication [RCOM]
Company profile:
Reliance Communications is the flagship company of Anil Dhirubhai Ambani
Group (ADAG) of companies. It is India‘s leading integrated telecommunication
company with over 77 million customers. This business encompasses a complete range of
telecom services covering mobile and fixed line telephony. It includes broadband,
national and international long distance services and data services along with an
exhaustive range of value-added services and applications.
Reliance Communications has a reliable, high capacity, integrated (both wireless and
wire line) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire info comm. (information and
communication) value chain, including infrastructure and services — for enterprises as
well as individuals, applications, and consulting.
Type Private [ BSE: RCOM ]
Founded 28 December 2002 {On auspicious occasion of Dhirubhai‘s
70th birthday}
Headquarters Dhirubhai Ambani Knowledge City
Navi Mumbai 400709, India
Industry Telecommunication.
Products Telecom services, broadband, mobiles, data services.
Revenue 14,792 crores.
Website www.rcom.co.in

Projectskart.com
Board of directors.
Chairman : Shri Anil D. Ambani
Other Executive Officers : Prof. J Ramachandran, Shri S.P.Talwar
Shri. Deepak Shourie, Shri A.K.Purwar.
objectives.
1: ―They will leverage there strengths to execute complex global-scale projects to
facilitate leading-edge information and communication services affordable to all
individual consumers and businesses in India.
2: They will offer unparalleled value to create customer delight and enhance business
productivity.
3: They will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally
EXCHANGES LISTED:
1: BOMBAY STOCK EXCHANGE
3: NEW YORK STOCK EXCHANGE

Projectskart.com
Current financial status of the Company:
Sales : 13,611 {cr}
Operating profit margin : 35 %
Net profit : 2,352.9 {cr}
Earning per share {Rs} : 5.6
Price earning ratio {times}: 38
Share price for the year : Year high: 268, Year low: 173.

Projectskart.com
TECHNICAL ANALYSIS : By Using Moving Average
Method . MOVING AVERAGE OF TCS
Closing 10 Day Moving
DATE price Average
15-10-2009 582.45
16-10-2009 599
17-10-2009 608.65
20-10-2009 621.4
21-10-2009 633.45
22-10-2009 627.5
23-10-2009 641.15
26-10-2009 644.55
27-10-2009 641.4
28-10-2009 642.4 624.195
29-10-2009 632.7 629.22
30-10-2009 626.2 631.94
3/11/2009 607.5 631.825
4/11/2009 625.85 632.27
5/11/2009 623.9 631.315
6/11/2009 620.65 630.63
9/11/2009 622.8 628.795
10/11/2009 624.55 626.795
11/11/2009 645.05 627.16
12/11/2009 654.2 628.34
13-11-2009 670.2 632.09
16-11-2009 666 636.07
17-11-2009 690.45 644.365
18-11-2009 686.7 650.45
19-11-2009 679.6 656.02
20-11-2009 693.3 663.285
23-11-2009 694.1 670.415
24-11-2009 698.4 677.8
25-11-2009 703.6 683.655
26-11-2009 688.1 687.045
27-11-2009 671.6 687.185
30-11-2009 687.2 689.305
1/12/2009 687.8 689.04
2/12/2009 683.95 688.765

Projectskart.com
3/12/2009 689.825690.2
4/12/2009 695.5 690.045
7/12/2009 697.85 690.42
8/12/2009 698.4 690.42
9/12/2009 706.75 690.735
10/12/2009 705.35 692.46
11/12/2009 704.15 695.715
14-12-2009 705.45 697.54
15-12-2009 700.55 698.815
16-12-2009 713.45 701.765
17-12-2009 722.65 705.01
18-12-2009 727.5 708.21
21-12-2009 732.85 711.71
22-12-2009 724.1 714.28
23-12-2009 744.35 718.04
24-12-2009 748.7 722.375
29-12-2009 742.1 726.17
30-12-2009 743 729.925
31-12-2009 749.75 734.845
4/1/2010 751.7 738.67
5/1/2010 750.9 741.495
6/1/2010 733.8 742.125
7/1/2010 714.65 740.305
8/1/2010 700.5 737.945
11/1/2010 714.25 734.935
12/1/2010 749.1 734.975
13-01-2010 788.25 739.59
14-01-2010 782.2 743.51
15-01-2010 791.8 747.715
18-01-2010 799.6 752.505
19-01-2010 780.6 755.475
20-01-2010 778.65 759.96

Projectskart.com
5.1: Moving Average of TCS
MOVING AVG OF TCS
900
800
700
Price
600400
500
300
200
100
0
01-201001-
2010
6/1/2010
12-200912-
2009
11/12/2009
4/12/2009
11-200911-
200911-
2009
6/11/2009
10-200910-
200910-
2009
20-
13-
29-
18-
27-
20-
13-
29-
22-
15-
Date
Closing price
10 Day Moving
Average
Interpretation:
Here, In this case , Moving Average is below the Actual line. So it indicates that it
is a right time to sell the security. In this Graph, we can point out one common thing, i.e.
moving Average of TCS Stock has been decreased. So, it is giving clear picture of future
movement. This Graph provides a message to the investor that, it is a right time to sell the
Stock of TCS.
Here, Stock price is above its moving average, During the first week of January. It
shows that current expectations are above the average .

Projectskart.com
MOVING AVERAGE OF ITC
CLOSING 10 DAY MOVING
DATE PRICE AVERAGE
1/18/2010 250.4
1/15/2010 252.9
1/14/2010 248.4
1/13/2010 249.2
1/12/2010 250.15
1/11/2010 256.45
1/8/2010 256.75
1/7/2010 256
1/6/2010 257.95
1/5/2010 256.05 253.425
1/4/2010 254.3 253.815
12/31/2009 251.35 253.66
12/30/2009 250.1 253.83
12/29/2009 255.8 254.49
12/24/2009 255.35 255.01
12/23/2009 254.5 254.815
12/22/2009 246 253.74
12/21/2009 244 252.54
12/18/2009 246.2 251.365
12/17/2009 249.1 250.67
12/16/2009 250.5 250.29
12/15/2009 249.9 250.145
12/14/2009 251 250.235
12/11/2009 251.6 249.815
12/9/2009 256.8 249.96
12/8/2009 258.6 250.37
12/7/2009 254.5 251.22
12/4/2009 257.6 252.58
12/3/2009 255 253.46
12/2/2009 257 254.25
12/1/2009 258.45 255.045
11/30/2009 257.75 255.83
11/27/2009 257.2 256.45
11/26/2009 261 257.39
11/25/2009 268.95 258.605
11/24/2009 262.95 259.04
11/23/2009 269.4 260.53
11/20/2009 260.55 260.825

Projectskart.com
11/19/2009 255.5 260.875
11/18/2009 258.7 261.045
11/17/2009 255.3 260.73
11/16/2009 255.5 260.505
11/13/2009 254 260.185
11/12/2009 252.85 259.37
11/11/2009 258.05 258.28
11/10/2009 256.45 257.63
11/9/2009 258.55 256.545
11/6/2009 249.4 255.43
11/5/2009 251.35 255.015
11/4/2009 255 254.645
11/3/2009 244.5 253.565
10/30/2009 256 253.615
10/29/2009 260 254.215
10/28/2009 260.25 254.955
10/27/2009 259.5 255.1
10/26/2009 264.35 255.89
10/23/2009 260 256.035
10/22/2009 247.8 255.875
10/21/2009 244.05 255.145
10/20/2009 250.15 254.66
10/16/2009 251.75 255.385
10/15/2009 256.15 255.4

Projectskart.com
5.2:Moving average of ITC
PRICE
275
270
265
260
255
250
245
240
235
230
MOVING AVG OF ITC
CLOSING PRICE
10 DAY MOVING
AVERAGE
DATE
Interpretation:
Here, In this case, Moving Average is above the Actual line during in the middle of
November . but in December the average falls below the closing price . So it indicates
that it is a right time to sell the security. In this Graph, we can point out one common
thing, i.e. Moving Average of ITC has been decreased. So, it is giving clear picture of
future movement. This Graph provides a message to the investor that it is a right time to
sell the Stock of ITC.

Projectskart.com
MOVING AVERAGE OF RCOM
CLOSING 10 DAY MOVING
DATE PRICE AVERAGE
12/7/2009 173.9
12/4/2009 179.9
12/2/2009 175
12/1/2009 177.6
11/30/2009 172.1
11/27/2009 166.55
11/26/2009 167.35
11/25/2009 171.5
11/24/2009 173.4
11/23/2009 171.65 172.895
11/20/2009 174.2 172.925
11/19/2009 172.1 172.145
11/18/2009 178 172.445
11/17/2009 175.7 172.255
11/16/2009 178.3 172.875
11/13/2009 173.1 173.53
11/11/2009 170.6 173.855
11/10/2009 168 173.505
11/9/2009 175 173.665
11/6/2009 178 174.3
11/5/2009 178.4 174.72
11/4/2009 169.1 174.42
11/3/2009 164.5 173.07
10/30/2009 175.2 173.02
10/29/2009 188.45 174.035
10/28/2009 202.7 176.995
10/27/2009 207.5 180.685
10/26/2009 220.95 185.98
10/23/2009 229.45 191.425
10/22/2009 233.5 196.975
10/21/2009 231 202.235
10/20/2009 230.9 208.415
10/16/2009 233.85 215.35
10/15/2009 229.6 220.79
10/14/2009 231.9 225.135
10/12/2009 248.35 229.7

Projectskart.com
10/9/2009 250.3 233.98
10/8/2009 246 236.485
10/7/2009 260.15 239.555
10/6/2009 268 243.005
10/5/2009 299 249.805
10/1/2009 317.3 258.445
9/30/2009 308.7 265.93
9/29/2009 300.05 272.975
9/25/2009 301.65 279.95
9/24/2009 304.25 285.54
9/23/2009 298.2 290.33
9/22/2009 306 296.33
9/18/2009 305.25 300.84
9/17/2009 311.9 305.23
9/16/2009 308.5 306.18
9/15/2009 300.55 304.505
9/14/2009 292.5 302.885
9/11/2009 297.25 302.605
9/10/2009 303.55 302.795

Projectskart.com
5.3: Moving average of Reliance communication
RELIANCE COMMUNICATION
PRICE
350
300
250
200
150
100
50
0
9/10/2009 10/10/2009 11/10/2009
DATE
CLOSING PRICE
10 DAY MOVING
AVERAGE
Interpretation:
Here, In this case, Moving Average is above the Actual line in the month of October, So
it indicates that it is a right time to buy the security. But afterwards there will be gradual
decline in the price, so that the average falls below the actual. It indicates that it is a right
time to sell the security. In the end of November the average is above the actual line. In
this Graph, we can point out one common thing, i.e. Moving Average of Reliance
communication has been increased. So, it is giving clear picture of future movement. This
Graph provides a message to the investor that it is a right time to buy the Stock of
Reliance communication.

Projectskart.com
TECHNICAL ANALYSIS BY USING RSI
RSI OF TCS
CLOSING 10DAY 10 DAY
DATE PRICE GAIN LOSS GAIN LOSS RS RSI
15-10-2009 582.45
16-10-2009 599 16.55
17-10-2009 608.65 9.65
20-10-2009 621.4
21-10-2009 633.45 12.05
22-10-2009 627.5 5.95
23-10-2009 641.15 13.65
26-10-2009 644.55 3.4
27-10-2009 641.4 3.15
28-10-2009 642.4 1 9.38333333 4.55 2.0623 67.344
29-10-2009 632.7 9.7 9.38333333 6.266666667 1.4973 59.957
30-10-2009 626.2 6.5 7.95 6.325 1.2569 55.674
3/11/2009 607.5 18.7 7.525 8.8 0.8551 46.095
4/11/2009 625.85 18.35 9.69 8.8 1.1011 52.407
5/11/2009 623.9 1.95 9.1 7.658333333 1.1882 54.301
6/11/2009 620.65 3.25 9.1 7.208333333 1.2624 55.833
9/11/2009 622.8 2.15 6.225 7.208333333 0.8636 46.399
10/11/2009 624.55 1.75 5.8125 7.208333333 0.8064 44.639
11/11/2009 645.05 20.5 8.75 8.02 1.091 52.177
12/11/2009 654.2 9.15 10.38 7.6 1.3658 57.731
13-11-2009 670.2 16 11.3166667 7.025 1.6109 61.699
16-11-2009 666 4.2 11.434 7.025 1.6276 61.943
17-11-2009 690.45 24.45 13.1928571 3.133333333 4.2105 80.808
18-11-2009 686.7 3.75 12.3333333 3.2875 3.7516 78.954
19-11-2009 679.6 7.1 12.3333333 4.575 2.6958 72.942
20-11-2009 693.3 13.7 12.5285714 5.016666667 2.4974 71.407
23-11-2009 694.1 0.8 12.3357143 5.016666667 2.4589 71.014
24-11-2009 698.4 4.3 12.7 5.016666667 2.5316 71.684
25-11-2009 703.6 5.2 10.5142857 5.016666667 2.0959 67.895
26-11-2009 688.1 15.5 10.7416667 7.6375 1.4064 58.445
27-11-2009 671.6 16.5 9.69 11.7625 0.8238 45.354
30-11-2009 687.2 15.6 10.675 10.7125 0.9965 49.912
1/12/2009 687.8 0.6 6.7 10.7125 0.6254 46.354
2/12/2009 683.95 3.85 6.7 10.7375 0.624 38.423
3/12/2009 690.2 6.25 6.63571429 11.95 0.5553 46.354
4/12/2009 695.5 5.3 5.43571429 11.95 0.4549 31.265

Projectskart.com
7/12/2009 697.85 2.35 5.65714286 11.95 0.4734 46.354
8/12/2009 698.4 0.55 5.12142857 11.95 0.4286 30
9/12/2009 706.75 8.35 5.57142857 11.95 0.4662 31.798
10/12/2009 705.35 1.4 5.57142857 7.25 0.7685 43.454
11/12/2009 704.15 1.2 5.57142857 2.15 2.5914 72.155
14-12-2009 705.45 1.3 3.52857143 2.15 1.6412 62.138
15-12-2009 700.55 4.9 4.01666667 2.8375 1.4156 58.602
16-12-2009 713.45 12.9 5.28571429 2.5 2.1143 67.89
17-12-2009 722.65 9.2 5.70714286 2.5 2.2829 69.298
18-12-2009 727.5 4.85 5.64285714 2.5 2.2571 69.298
21-12-2009 732.85 5.35 6.07142857 2.5 2.4286 70.833
22-12-2009 724.1 8.75 6.99166667 4.0625 1.721 63.249
23-12-2009 744.35 20.25 8.975 4.0625 2.2092 68.84
24-12-2009 748.7 4.35 8.31428571 4.95 1.6797 62.682
29-12-2009 742.1 6.6 8.31428571 6.75 1.2317 55.192
30-12-2009 743 8.12857143 6.75 1.2042 54.633
31-12-2009 749.75 7.1125 7.675 0.9267 48.098
4/1/2010 751.7 5.5 7.675 0.7166 41.746
5/1/2010 750.9 0.8 4.97142857 5.383333333 0.9235 48.011
6/1/2010 733.8 17.1 4.99166667 8.3125 0.6005 37.52
7/1/2010 714.65 19.15 4.9997 10.48 0.4771 32.298
8/1/2010 700.5 14.15 4.92 11.56 0.4256 29.854
11/1/2010 714.25 0.87 11.56 0.0753 6.9992
12/1/2010 749.1 0 11.56 0 0
13-01-2010 788.25 39.15 39.15 12.8 3.0586 75.361
14-01-2010 782.2 6.05 39.15 11.45 3.4192 77.372
15-01-2010 791.8 9.6 24.375 11.45 2.1288 68.039
18-01-2010 799.6 7.8 18.85 11.45 1.6463 62.211
19-01-2010 780.6 19 18.85 15.09 1.2492 55.539
20-01-2010 778.65 1.95 18.85 12.06 1.563 60.984

Projectskart.com
5.4: Closing price and RSI chart of TCS
PRICE
CLOSING PRICE OF TCS
900
800
700
600
500
400
300
200
100
CLOSING PRICE0
15-10-2009
23-10-2009
3/11/2009
11/11/2009
19-11-2009
27-11-2009
7/12/2009
15-12-2009
23-12-2009
5/1/2010
13-01-2010
DATE

Projectskart.com
RSI Analysis for TCS
RSI is calculated for TCS from the date 15-10-09 to 20-01-2010.
The RSI graph, drawn above shows the overbought and oversold regions.
Overbought; this region is a selling signal of the stock. The RSI value band of 68-70 and
above that value gives us a good signal for selling the stock. It indicates the overbought
points where the buying pressure exhausts and the selling pressure starts developing
curtailing further upward movement of price. Following are the selling points from the
RSI graphs for TCS . Are 17-11-09 to 24th of November 09. 11,12
th
of December 09. 13,
14
th
of 2010.
Oversold; the region is signaled for buying the stock. If the RSI value is in band of 30-32
and below that value then it‘s the signal for buying. It indicates the oversold point; where
in the selling pressure is over taken by slowly developing buying pressure, curtailing the
further downward movement of the stock price. Buying points from the RSI graph for
TCS are 2,4,8,9
th
of December 09. And 7, 8, 11, 12
th
of January 2010. Indicates good
buying points for this stock.

Projectskart.com
RSI OF ITC
CLOSING 10 DAY 10 DAY
DATE PRICE GAIN LOSS GAIN LOSS RS RSI
1/18/2010 250.4
1/15/2010 252.9 2.5
1/14/2010 248.4 4.5
1/13/2010 249.2 0.8
1/12/2010 250.15 0.95
1/11/2010 256.45 6.3
1/8/2010 256.75 0.3
1/7/2010 256 0.75
1/6/2010 257.95 1.95
1/5/2010 256.05 1.9 2.133333 2.3833333 0.8951 47.232
1/4/2010 254.3 1.75 2.133333 2.225 0.9588 48.948
12/31/2009 251.35 2.95 2.06 2.37 0.8692 46.501
12/30/2009 250.1 1.25 2.06 1.72 1.19767 54.497
12/29/2009 255.8 5.7 3.04 1.72 1.76744 63.866
12/24/2009 255.35 0.45 3.5625 1.5083333 2.36188 70.255
12/23/2009 254.5 0.85 2.65 1.4142857 1.87374 65.202
12/22/2009 246 8.5 3.825 2.3 1.66304 62.449
12/21/2009 244 2 3.825 2.45625 1.55725 60.896
12/18/2009 246.2 2.2 3.95 2.45625 1.60814 61.659
12/17/2009 249.1 2.9 3.6 2.5357143 1.41972 58.673
12/16/2009 250.5 1.4 3.05 2.6666667 1.14375 53.353
12/15/2009 249.9 0.6 3.05 2.275 1.34066 57.277
12/14/2009 251 1.1 2.66 2.48 1.07258 51.751
12/11/2009 251.6 0.6 1.64 2.48 0.66129 39.806
12/9/2009 256.8 5.2 2.233333 2.9875 0.74756 42.777
12/8/2009 258.6 1.8 2.171429 3.7 0.58687 36.983
12/7/2009 254.5 4.1 2.171429 2.2333333 0.97228 49.297
12/4/2009 257.6 3.1 2.2875 2.35 0.9734 49.326
12/3/2009 255 2.6 2.3 2.4333333 0.94521 48.592
12/2/2009 257 2 2.171429 2.4333333 0.89237 47.156
12/1/2009 258.45 1.45 2.178571 2.4333333 0.8953 47.238
11/30/2009 257.75 0.7 2.178571 2.4666667 0.8832 46.899
11/27/2009 257.2 0.55 2.358333 1.9875 1.18658 54.267
11/26/2009 261 3.8 2.891667 1.9875 1.45493 59.266
11/25/2009 268.95 7.95 3.35 1.9875 1.68553 62.763
11/24/2009 262.95 6 3.66 2.79 1.31183 56.744
11/23/2009 269.4 6.45 4.125 2.4625 1.67513 62.619
11/20/2009 260.55 8.85 4.33 3.74 1.15775 53.656

Projectskart.com
11/19/2009 255.5 5.05 4.33 4.23 1.02364 50.584
11/18/2009 258.7 3.2 4.57 4.23 1.08038 51.932
11/17/2009 255.3 3.4 5.35 4.0916667 1.30754 56.664
11/16/2009 255.5 0.2 4.32 4.77 0.90566 47.525
11/13/2009 254 1.5 4.32 4.96 0.87097 46.552
11/12/2009 252.85 1.15 4.45 4.325 1.0289 50.712
11/11/2009 258.05 5.2 3.7625 4.325 0.86994 46.522
11/10/2009 256.45 1.6 3.7625 3.5916667 1.04756 51.161
11/9/2009 258.55 2.1 2.675 3.5916667 0.74478 42.686
11/6/2009 249.4 9.15 2.675 3.6416667 0.73455 42.348
11/5/2009 251.35 1.95 2.53 3.36 0.75298 42.954
11/4/2009 255 3.65 2.62 3.36 0.77976 43.813
11/3/2009 244.5 10.5 2.62 4.78 0.54812 35.405
10/30/2009 256 11.5 4.88 4.78 1.02092 50.518
10/29/2009 260 4 4.733333 5.6 0.84524 45.806
10/28/2009 260.25 0.25 4.092857 7.0833333 0.57782 36.621
10/27/2009 259.5 0.75 3.908333 5.5 0.71061 41.541
10/26/2009 264.35 4.85 4.042857 6.8 0.59454 37.286
10/23/2009 260 4.35 4.366667 6.1875 0.70572 41.374
10/22/2009 247.8 12.2 4.366667 6.95 0.6283 38.586
10/21/2009 244.05 3.75 4.85 6.31 0.76862 43.459
10/20/2009 250.15 6.1 5.34 6.31 0.84628 45.837
10/16/2009 251.75 1.6 4.716667 5.2625 0.89628 47.265
10/15/2009 256.15 4.4 3.533333 5.2625 0.67142 40.171

Projectskart.com
5.5:Closing price and RSI chart of ITC
PRICE
CLOSING PRICE OF ITC
275
270
265
260
255
250
245
240
235
CLOSING PRICE
230
DATE

Projectskart.com
RSI Analysis for ITC
RSI is calculated for ITC from the date 15-10-09 to 15-01-2010.
The RSI graph, drawn above shows the overbought and oversold regions.
RSI graphs for ITC .Are 24,25
th
of November 09, 17,18,21,22,23,24
th
of December 2009
.
Oversold; the region is signaled for buying the stock. If the RSI value is in band of 30-32
and below that value then it‘s the signal for buying. It indicates the oversold point; where
in the selling pressure is over taken by slowly developing buying pressure, curtailing the
further downward movement of the stock price. Buying points from the RSI graph for
ITC. Are 12,13
th
of Dec 09. 21, 22, 23 ,26, 27
th
of October 09.

Projectskart.com
RSI OF RELIANCE COMMUNICATION
CLOSIN 10 DAY 10 DAY
DATE G PRICE GAIN LOSS GAIN LOSS RS RSI
12/7/2009 173.9
12/4/2009 179.9 6
12/2/2009 175 4.9
12/1/2009 177.6 2.6
11/30/2009 172.1 5.5
11/27/2009 166.55 5.55
11/26/2009 167.35 0.8
11/25/2009 171.5 4.15
11/24/2009 173.4 1.9
11/23/2009 171.65 1.75 3.09 4.425 0.69831 41.1178
11/20/2009 174.2 2.55 3 4.425 0.67797 40.404
11/19/2009 172.1 2.1 2.4 3.96 0.60606 37.7358
11/18/2009 178 5.9 2.98333 3.725 0.80089 44.472
11/17/2009 175.7 2.3 3.06 3.44 0.88953 47.0769
11/16/2009 178.3 2.6 2.98333 2.925 1.01994 50.4937
11/13/2009 173.1 5.2 2.98333 2.8375 1.0514 51.2527
11/11/2009 170.6 2.5 3.42 2.77 1.23466 55.2504
11/10/2009 168 2.6 3.2375 2.74166 1.18085 54.1463
11/9/2009 175 7 4.5125 2.74166 1.6459 62.2056
11/6/2009 178 3 4.21 2.94 1.43197 58.8811
11/5/2009 178.4 0.4 3.78 2.94 1.28571 56.25
11/4/2009 169.1 9.3 3.78 4.38 0.86301 46.3235
11/3/2009 164.5 4.6 3.25 4.41666 0.73585 28.5323
10/30/2009 175.2 10.7 4.74 4.84 0.97934 49.4781
10/29/2009 188.45 13.25 6.87 4.84 1.41942 58.6678
10/28/2009 202.7 14.25 8.1 4.75 1.70526 63.035
10/27/2009 207.5 4.8 7.62857 5.5 1.38701 58.1066
10/26/2009 220.95 13.45 8.35625 6.95 1.20234 54.5937
10/23/2009 229.45 8.5 8.54375 6.95 1.22932 55.1432
10/22/2009 233.5 4.05 8.675 6.95 1.2482 55.52
10/21/2009 231 2.5 9.85714 5.46666 1.80314 64.3257
10/20/2009 230.9 0.1 9.85714 2.4 4.10714 80.4196
10/16/2009 233.85 2.95 8.99375 1.3 6.91827 87.371
10/15/2009 229.6 4.25 8.75 2.283333 3.83212 79.3051
10/14/2009 231.9 2.3 7.18571 2.2833333 3.14703 75.8863
10/12/2009 248.35 16.45 7.5 2.2833333 3.28467 76.661
10/9/2009 250.3 1.95 7.09286 2.2833333 3.10636 75.6475
10/8/2009 246 4.3 6.03333 2.7875 2.16442 68.3987

Projectskart.com
10/7/2009 260.15 14.15 6.975 2.7875 2.50224 71.4469
10/6/2009 268 7.85 7.60833 2.7875 2.72945 73.1864
10/5/2009 299 31 10.95 2.8833333 3.79769 79.1566
10/1/2009 317.3 18.3 11.8688 4.275 2.77632 73.5192
9/30/2009 308.7 8.6 13.1429 5.7166667 2.29904 69.6882
9/29/2009 300.05 8.65 13.1429 7.1833333 1.82963 64.6597
9/25/2009 301.65 1.6 13.0429 7.1833333 1.81571 64.485
9/24/2009 304.25 2.6 11.0643 7.1833333 1.54027 60.6341
9/23/2009 298.2 6.05 12.5833 6.9 1.82367 64.5851
9/22/2009 306 7.8 11.9 7.7666667 1.53219 60.5085
9/18/2009 305.25 0.75 11.525 6.0125 1.91684 65.7163
9/17/2009 311.9 6.65 11.325 6.0125 1.88358 65.3208
9/16/2009 308.5 3.4 7.39 5.49 1.34608 57.3758
9/15/2009 300.55 7.95 4.6625 5.9 0.79025 44.142
9/14/2009 292.5 8.05 4.6625 5.8083333 0.80273 44.5285
9/11/2009 297.25 4.75 4.68 5.24 0.89313 47.1774
9/10/2009 303.55 6.3 5.62 5.24 1.07252 51.7495
9/9/2009 300.15 3.4 6.375 4.9333333 1.29223 56.3744
9/8/2009 305.25 5.1 6.12 4.71 1.29936 56.5097
9/7/2009 310.3 5.05 5.57 4.71 1.18259 54.1829
9/4/2009 292.5 17.8 5.57 8.12 0.68596 40.6866
9/3/2009 292.1 0.4 5.3 6.8333333 0.77561 43.6813
9/2/2009 277.2 14.9 5.3 8.75 0.60571 28.6554
9/1/2009 263.6 13.6 5.3 9.6916667 0.54686 29.5623

Projectskart.com
5.6:Closing price and RSI chart of Reliance Communication
PRICE
CLOSING PRICE OF RCOM
350
300
250
200
150
100
50
CLOSING PRICE
0
DATE

Projectskart.com
RSI Analysis for RELIANCE COMMUNICATION.
RSI is calculated for Reliance Communication from the date 1-9-09 to 7-12-09.
The RSI graph drawn above, shows the overbought and oversold regions.
RSI graphs for Reliance Communications Are 1,5,6,7,9,12,14,15,16,20
th
of October 09.
Oversold; this region is signaled for buying the stock. It is at RSI value band of 32-30
th
and below that value. It indicates the oversold point where the selling pressure is over
taken by slowly developing buying pressure curtailing the further downward movement
of the stock price. Buying points from the RSI graph for Reliance Communications. are
3,4
th
0f October 09. And 3
rd
of December 2009.

Projectskart.com
FINDINGS.
The analysis has been done mainly by the use of two mathematical indicator called
RELATIVE STRENGH INDEX and MOVING AVERAGES, which are the leading
indicator in technical analysis.
After analysis of five companies, it has been proved that by the use of Relative
Strength Index and moving averages . An investor can identify oversold, overbought and
trend reversals to take right investment decisions at minimum level of risk.
According to RSI indications, it is better to take long position when RSI line touches or
goes near to oversold market condition i.e., near or less then 30 level. On the other hand,
it is better to take short position when RSI line touches or goes near to overbought market
condition i.e., near or more then 70 level. Secondly, according to moving averages
indications it is better to take long position when there is bullish divergence. On the other
hand, it is better to take short position when there is bearish divergence.
Apart from these two indicators, even an investor can identify popular chart patterns like
Support and Resistance, Head and Shoulders, triangles, flag etc that helps an investor to
take investment decisions.
An investor should be very careful in identifying the primary trend.
Once he identifies the primary trend any pull back in the rally is an opportunity for
a re entry provided the primary trend is intact.
The investor should not hesitate in increasing his position on identifying the
strength and hold on to his position until the trend gives a reverse signal.
An investor is supposed to follow the principles laid down with total clarity and in
good faith, which will help him in reducing the psychological strain, stretch and
pressures. This will also help him in protecting from false roomers/wrong
information and protecting from market manipulation.

Projectskart.com
SUGGESTIONS.
1. Before going to invest, an investor should have clear knowledge of capital market
so it is the part of the company to educate the investor with relate to all the types
of investment alternatives available.
2. As the long term investment is more favour to the company as it can enjoy the
benefit of long term cash reserve the marketer should try to push and pull more
and longer term investment from the investors.
3. Also it is necessary to keep in mind that only maintaining more and more fund
reserve only should not be the sole objective of the company, it should predict the
future changes in the value of money, by changing its mind set the company
should also play the role of fund creator.
4. Investors perceive that the stock market activities are risky and they hesitate to
come forward to invest in stock market, so the company has to execute such
programs that train and educate the investors about the benefits part of stock
market investment and the return they get from it.
5. As in case of Stock market half knowledge is very dangerous. So, it is the
responsibility of the company to train the employees and technical analysts to
make them experts in subject of stock market, so that they become experts to solve
all the queries of the investors without any wrong information or hesitation and
solve the confusions of the investors to increase the investment.

Projectskart.com
CONCLUSIONS
Technical analysis is one of the advanced technique which is used to
analyze securities by analyzing the historical and other statistics which are generated by
market activity. Technical analysis is mainly based on three assumptions namely, Market
discounts every thing, Price moves in trends, History tends to repeat itself. Technical
analysts states that all fundamentals of the company are discounted by the market at any
point of time, also they consider short term approach to analyze the market than the long
term analysis, trend is one of the important concept in technical analysis which actually
refers to a direction in which a security is headed. This trend line is drawn by using the
closing prices of the stock. To show the series of prices over a period of time charts and
graphical representation are used in technical analysis. Relative strength index and
Moving average are the leading oscillators in technical analysis.
Relative strength index is the one, which is more popular among
oscillators, which helps to identify overbought and oversold market conditions of a
particular stock or an index. Moving average is one of the important mathematical
indictor, which is used to show the average price movements of a security over a period.
The stock market has a great opportunity to excel in the market, but
firstly the investors need to be educated and trained with proper information about stock
market and secondly the analysts has to bet trained and made professional in analyzing
and delivering service. These measures will lead the company towards success.

Projectskart.com
BIBLIOGRAPHY:
BOOKS REFERRED:
Donald E. Fischer and Ronald J. Jordan, ―Security Analysis and Portfolio
Management , Prentice hall of India Pvt Ltd., New Delhi.‖
S. Kevin, ―portfolio Management Prentice – hall of India Private Ltd., New Delhi.‖
Chandra Prasanna, ―Investment Analysis and Portfolio Management . Tata Mc‖
Graw – hill publishing Company Ltd.,
Security Analysis And Portfolio Management- Avadhania
William F. Sharp, Gordon J. Alexander and Jeffery V. Bailey, ―Investments ,‖
Prentice – hall of India Pvt. Ltd., New Delhi.
WEBSITES:
www.invetopedia.com
www.viratechsoftware.com
www.bseindia.com
www.chartpatterns.com
MAGZINES AND JOURNALS:
Economic Times – Big Bucks.
Business Line.
Dalal Street.

Technical analysis in different sectors stocks

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Technical analysis in different sectors stocks

Similar to Technical analysis in different sectors stocks (20)

More from Projects Kart

More from Projects Kart (20)

Recently uploaded

Recently uploaded (20)

Technical analysis in different sectors stocks