EQUITY RESEARCH OF INFOSYS ON THE BASIS OF FUNDAMENTAL AND

TECHNICAL ANALYSIS
INTRODUCTION

TWO ANALYTICAL MODELS IN EVALUATING THE COMMON STOCK.

1.)Fundamental analysis maintains that markets may misprice a security in the short run
but that the "correct" price will eventually be reached. Profits can be made by trading the
mispriced security and then waiting for the market to recognize its "mistake" and reprice
the security.
2.) Technical analysis maintains that all information is reflected already in the stock
price, so fundamental analysis is a waste of time. Trends 'are your friend' and sentiment
changes predate and predict trend changes. Investors' emotional responses to price
movements lead to recognizable price chart patterns. Technical analysis does not care
what the 'value' of a stock is. Their price predictions are only extrapolations from
historical price patterns.
What is Fundamental Analysis?
A method of evaluating a security by attempting to measure its intrinsic value by
examining related economic, financial and other qualitative and quantitative factors.
Fundamental analysts attempt to study everything that can affect the security's value,
including macroeconomic factors (like the overall economy and industry conditions) and
individually specific factors (like the financial condition and management of
companies). Fundamental analysis is about using real data to evaluate a security's value.
The end goal of performing fundamental analysis is to produce a value that an investor
can compare with the security's current price in hopes of figuring out what sort of
position to take with that security. This method of fundamental analysis is exactly
opposite to the technical analysis.

What is Technical Analysis?

A Technical Analysis is a method of evaluating securities by analyzing statistics
generated by market activity, such as past prices and volume. Technical analysts do not
attempt to measure a security's intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future activity. Technical analysts believe that the
historical performance of stocks and markets are indications of future performance.

Objectives
To learn how to do Equity Research.
Doing analysis of the company on the basis of secondary data using fundamental
and technical analysis.
Projecting their future on the basis of financial data and determining the reasons
for their good or bad performance in the market and also to estimate its future
Market value.
To determine whether the company stocks are worth buying or not and also what
Would be the probable market price if certain factor changes.


INDIA INFOLINE LIMITED
India Infoline is a one-stop financial services shop, most respected for quality of its
information, personalized service and cutting-edge technology.
Vision:
Our vision is to be the most respected company in the financial services space.
India Infoline Group:
The India Infoline group, comprising the holding company, India Infoline Limited and
its wholly-owned subsidiaries, include the entire financial services space with offerings
ranging from Equity research, Equities and derivatives trading, Commodities trading,
Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI
bonds and other small savings instruments to loan products and Investment banking.
India Infoline also owns and manages the websites www.indiainfoline.com and
www.5paisa.com. The company has a network of over 2100 business locations
(branches and sub-brokers) spread across more than 450 cities and towns. The group
caters to approximately a million customers.
Founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an
independent business research and information provider, the company gradually evolved
into a one-stop financial services solutions provider.
India Infoline received registration for a housing finance company from the National
Housing Bank and received the Fastest growing Equity Broking House - Large firms in
India by Dun & Bradstreet in 2009. It also received the Insurance broking license from
IRDA; received the venture capital license; received in principle approval to sponsor a
mutual fund; received Best broker- India award from Finance Asia; Most Improved
Brokerage- India award from Asia money.
COMPANY STRUCTURE:
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a
member of both the exchanges. It is engaged in the businesses of Equities broking,
Wealth Advisory Services and Portfolio Management Services. It offers broking services
in the Cash and Derivatives segments of the NSE as well as the Cash segment of the
BSE. It is registered with NSDL as well as CDSL as a depository participant, providing
a one-stop solution for clients trading in the equities market. It has recently launched its
Investment banking and Institutional Broking business. A SEBI authorized Portfolio
Manager; it offers Portfolio Management Services to clients. These services are offered
to clients as different schemes, which are based on differing investment strategies made
to reflect the varied risk-return preferences of clients.
METHODOLOGY
A common training program was going to attend at IIFL, Secretariat, Hyderabad. For
general awareness of capital markets in India. The instructors of training program will
provide advisory support regarding the procedure of performing the project work and
with certain references for data collection. The investors use these methods and then
analyze the share price and they invest in the various companies.
Source of study
All the data for the analysis have been collected from respective company websites and
other websites. The fundamental data collected was regarding the Indian economy,
Industrial level performance, individual company balance sheet, income statements,
annual reports and shareholding patterns. The theoretical data will be gathered from text
books, websites and newspapers. Share price quotations will be collected from
newspapers.
Scope of study
Study was done on the basis of data available on net.
Visit of the company was not feasible
Newspapers, magazines and stock market scenario were also taken into
Consideration
LITERATURE REVIEW
Review of journals, websites, magazines, newspapers and reviewing the projects
already done related to the topic.

INDUSTRY PROFILE
Stock market
A stock market (equity market) is a private or public market for the trading of company
stock and derivatives of company stock at an agreed price; both of these are securities
listed on a stock exchange as well as those only traded privately. The expression 'stock
market' refers to the market that enables the trading of company stocks (collective
shares), other securities, and derivatives. Bonds are still traditionally traded in an
informal, over-the-counter market known as the bond market. Commodities are traded in
commodities markets, and derivatives are traded in a variety of markets (but, like bonds,
mostly 'over-the-counter'). The stocks are listed and traded on stock exchanges which
are entities (a corporation or mutual organization) specialized in the business of bringing
buyers and sellers of stocks and securities together. The stock market in the United
States includes the trading of all securities listed on the NYSE, the NASDAQ .
Trading
Participants in the stock market range from small individual stock investors to large
hedge fund traders, who can be based anywhere. Their orders usually end up with a
professional at a stock exchange, who executes the order.
Some exchanges are physical locations where transactions are carried out on a trading
floor, by a method known as open outcry. This type of auction is used in stock
exchanges and commodity exchanges where traders may enter "verbal" bids and offers
simultaneously. The other type of exchange is a virtual kind, composed of a network of
computers where trades are made electronically via traders.
Actual trades are based on an auction market paradigm where a potential buyer bids the
specific price for a stock and a potential seller asks a specific price for the stock.
(Buying or selling at market means you will accept any ask price or bid price for the
stock, respectively.) When the bid and ask prices match, a sale takes place on a first
come first served basis if there are multiple bidders or askers at a given price. The
purpose of a stock exchange is to facilitate the exchange of securities between buyers
and sellers, thus providing a marketplace (virtual or real). The exchanges provide real-
time trading information on the listed securities, facilitating price discovery.
METHODOLOGY:
CHAPTERIZATION OF THE STUDY:
The study is will be organize as under.
In the first chapter theoretical aspects relating to equity research using
fundamental and technical analysis of Infosys
In the second chapter profile of the industry and company will be incorporated.
In the third chapter objectives and methodology are presented.
In the fourth chapter study on equity research using fundamental and
technical analysis of Infosys will be analyzed.
In the fifth chapter summary of findings, suggestions, Recommendations and
conclusion of the study are given.