1

A STUDY TO ANALYZE ABOUT MOSTLY

TRADED STOCKS IN SINGLE WINDOW
SECURITIES AND ITS OVERVIEW

A PROJECT REPORT

Submitted by

M.PAVITHRA
Reg. No. 088001306029

In partial fulfillment for the award of the degree

Of
MASTER OF BUSINESS ADMINISTRATION
In
Department of Management Studies
NANDHA ENGINEERING COLLEGE
ERODE - 638052
MAY 2010
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BONAFIDE CERTIFICATE
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BONAFIDE CERTIFICATE

NANDHA ENGINEERING COLLEGE

ERODE - 638052

Department of Management Studies

PROJECT WORK

MAY 2010

This is to certify that the project entitled

A STUDY TO ANALYZE ABOUT MOSTLY

TRADED STOCKS IN SINGLE WINDOW
SECURITIES AND ITS OVERVIEW

is the bonafide record of project work done by

Register No: 088001306029

of Master of Business Administration during the year 2009-2010

---------------- ----------------------------
Project Guide Head of the Department

Submitted for the project viva-voce examination held on --------------

---------------------- ---------------------
Internal Examiner External Examiner
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DECLARATION
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DECLARATION

I affirm that the project work titled A STUDY TO ANALYZE ABOUT

MOSTLY TRADED STOCKS IN SINGLE WINDOW SECURITIES AND ITS
OVERVIEW being submitted in partial fulfillment for the award of Master of
Business Administration is the original work carried out by me. It has not formed the
part of any other project work submitted for award of any degree or diploma, either in
this or any other University.

(Signature of the Candidate)

M.PAVITHRA
Reg No :088001306029

I certify that the declaration made above by the candidate is true

(Signature of the Guide)

Ms.T.SUDHA, M.B.A, M.Phil,

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ACKNOWLEDGEMENT
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ACKNOWLEDGEMENT

I extend my deep sense of support in carrying out gratitude and sincere

thanks to our chairman Thiru. V.SHANMUGHAN B.Com, of Nandha

Engineering College, Erode for giving me the opportunity to be a student of this

reputed institution.

I wish to express my sincere gratitude to our beloved Head of Department

N. DEVARAJ, B.E., M.B.A., Department of Management studies for his

extraordinary guidance, which helped me to complete this study successfully.

My sincere thanks to Ms.T.SUDHA, M.B.A, M.Phil, Lecturer, Department

of Management Studies whose guidance made this project an enlightening educational

experience.

I express my sincere thanks to Mr. S.ARUL GANESH, Branch manager, for

granting me permission to do my project and also for his guidance and suggestion.

I also express my gratitude to all faculty members, my friends and my

parents who have helped me to carry out this work, last but not the least I

thank the almighty God for the blessing showered on me during this period.
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CONTENTS
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CONTENTS

CHAPTER
DESCRIPTION PAGE NO.
NO.
ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF CHARTS

1 INTRODUCTION

1.1 ABOUT THE STUDY 17

1.2 ABOUT THE INDUSTRY 19

1.3 ABOUT THE COMPANY 28

2 MAIN THEME OF THE PROJECT

2.1 OBJECTIVES OF THE STUDY 31

2.2 SCOPE OF THE STUDY 33

2.3 LIMITATIONS OF THE STUDY 35

3 RESEARCH METHODOLOGY 37

4 ANALYSIS AND INTERPRETATION 42

FINDINGS,RECOMMENDATIONS AND
5
CONCLUSION

5.1 FINDINGS 95

5.2 RECOMMENDATIONS 97

5.3 CONCLUSION 99

BIBLIOGRAPHY 101
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LIST OF TABLES
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LIST OF TABLES

TABLE NO TITLE PAGE NO

4.1 MOVING AVERGE OF RELIANCE INDUSTRIES 42

4.2 RELATIVE STRENGTH INDEX OF RELIANCE 46

INDUSTRIES

4.3 RATE OF CHANGE OF RELIANCE INDUSTRIES 50

4.4 MOVING AVERGE OF AXIS BANK 53

4.5 RELATIVE STRENGTH INDEX OF AXIS BANK 57

4.6 RATE OF CHANGE OF AXIS BANK 60

4.7 MOVING AVERGE OF RANBAXY LABORATORIES 63

LIMITED

4.8 RELATIVE STRENGTH INDEX OF RANBAXY 66

LABORATORIES LIMITED

4.9 RATE OF CHANGE OF RANBAXY LABORATORIES 70

LIMITED

4.10 MOVING AVERGE OF BHARTHI AIRTEL 73

4.11 RELATIVE STRENGTH INDEX OF BHARTHI AIRTEL 77

4.12 RATE OF CHANGE OF BHARTHI AIRTEL 80

4.13 MOVING AVERGE OF HINDUSTHAN CONSTRUCTION 84

COMPANY

4.14 RELATIVE STRENGTH INDEX OF HINDUSTHAN 88

CONSTRUCTION COMPANY

4.15 RATE OF CHANGE OF HINDUSTHAN CONSTRUCTION 91

COMPANY
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LIST OF CHARTS
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LIST OF CHARTS

CHART NO TITLE PAGE NO

4.1 MOVING AVERGE OF RELIANCE INDUSTRIES 44

4.2 RELATIVE STRENGTH INDEX OF RELIANCE 49

INDUSTRIES

4.3 RATE OF CHANGE OF RELIANCE INDUSTRIES 52

4.4 MOVING AVERGE OF AXIS BANK 55

4.5 RELATIVE STRENGTH INDEX OF AXIS BANK 59

4.6 RATE OF CHANGE OF AXIS BANK 62

4.7 MOVING AVERGE OF RANBAXY LABORATORIES 65

LIMITED

4.8 RELATIVE STRENGTH INDEX OF RANBAXY 69

LABORATORIES LIMITED

4.9 RATE OF CHANGE OF RANBAXY LABORATORIES 72

LIMITED

4.10 MOVING AVERGE OF BHARTHI AIRTEL 75

4.11 RELATIVE STRENGTH INDEX OF BHARTHI AIRTEL 80

4.12 RATE OF CHANGE OF BHARTHI AIRTEL 83

4.13 MOVING AVERGE OF HINDUSTHAN CONSTRUCTION 86

COMPANY

4.14 RELATIVE STRENGTH INDEX OF HINDUSTHAN 91

CONSTRUCTION COMPANY

4.15 RATE OF CHANGE OF HINDUSTHAN CONSTRUCTION 94

COMPANY
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ABSTRACT
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ABSTRACT

In India most of the industries require huge amount of investments. Funds are
raised mostly through the issue of share. An investor is satisfied from the reasonable
return from investment in shares. An investor can succeed in his investment only
when he is able to select the right shares. The investors should keenly watch the
situations like market price, economy, company progress, returns, and the risk
involved in a share before taking decision on a particular share. This study made will
help the investors know the behavior of share prices and thus can succeed.
The stocks on an exchange with the highest trading volume, especially on a
given trading day, a stock often becomes one of the most actively traded when
relevant information on the company becomes available. Being one of the most
actively traded stocks is not necessarily positive; that is, the information could be
either good or bad and investors could buy or sell accordingly. Technical
analysts may use the high trading volume to determine how strong or sustainable
a bullish or bearish trend.
Using data from 5 of the most actively traded stocks from the Single
Windows Securities Limited in Coimbatore the study analyze that the maximum
buying stocks, the price fluctuations in various scrip using technical analysis and the
fundamental factors such as inflation, Gross Domestic Product (GDP),Bank interest
change, Foreign Direct investment (FDI), Foreign Institutional Investors (FII) interest
level, Reserve Bank of India(RBI) rules, Securities and Exchange Board of
India(SEBI) rules, Global market impact.
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CHAPTER I

INTRODUCTION
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CHAPTER 1

1.1 INTRODUCTION TO THE STUDY

1.1.1 TECHNICAL ANALYSIS

Technical analysis is a method of evaluating financial instruments by analyzing

statistics generated by market activity, past prices and volume. Technical analysts do
not perform fundamental analysis instead they look at stock charts for patterns and
indicators that will determine a stock's future performance.
Fundamental analysts are able to detect good quality stocks for long-term
investments. However, they do not know when to accumulate or to dispose the stocks.
Technical analysts believe that a lot of good fundamental factors for certain stocks
may have already been reflected in the stock prices. As a result, any investor who
would like to purchase the stocks may not be able to make gains as the stock prices
have already included the good fundamental factors.
Nevertheless, if investors know technical analysis, they may be able to discover
the stocks much earlier than the others find. A lot of time, these fundamental factors
may not be made known to the public. However, some investors, who are aware of
these fundamental factors, may start accumulating the stocks. Technical analysts
believe that these early actions can be detected by looking into charts.
Technical analysis is based on the interaction between the supply and demand for
the stocks, which can be caused by the rational and irrational factors. Technical
analysts believe that prices move in trend and can persist for a long time until
something happens to the stocks.
Even though technical analysts do not know all the factors that influence the
buying or selling of all stocks, they believe that investors are able to know the actual
shifts in the supply and demand of stocks by looking into their market price behavior.
The field of technical analysis is based on three assumptions

• The market discounts everything.

• Price moves in trends.
• History tends to repeat itself.
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The Market Discounts Everything

A major criticism of technical analysis is that it only considers price
movement, ignoring the fundamental factors of the company. However, technical
analysis assumes that, at any given time, a stock's price reflects everything that has or
could affect the company - including fundamental factors. Technical analysts believe
that the company's fundamentals, along with broader economic factors and market
psychology, are all priced into the stock, removing the need to actually consider these
factors separately.

Price Moves in Trends
In technical analysis, price movements are believed to follow trends. This
means that after a trend has been established, the future price movement is more
likely to be in the same direction as the trend than to be against it. Most technical
trading strategies are based on this assumption.

History Tends To Repeat Itself
Another important idea in technical analysis is that history tends to repeat
itself, mainly in terms of price movement. The repetitive nature of price movements is
attributed to market psychology; in other words, market participants tend to provide a
consistent reaction to similar market stimuli over time. Technical analysis uses
chart patterns to analyze market movements and understand trends. Although many of
these charts have been used for more than 100 years, they are still believed to be
relevant because they illustrate patterns in price movements that often repeat
themselves.

1.1.2 FUNDAMENTAL ANALYSIS

Fundamental analysis is a method of finding out the future prices of a stock
which an investor wishes to buy. The method for forecasting the future behavior of
investments and the rate of return on them is clearly through an analysis of the broad
economic forces in which they operate the kind of industry to which they belong, and
the analysis of the company’s internal working through statements like income
statement, balance sheet and statement of changes of income. The fundamental factors
such as inflation, Gross Domestic Product (GDP),Bank interest change, Foreign
Direct investment (FDI), Foreign Institutional Investors (FII) interest level, Reserve
Bank of India(RBI) rules, Securities and Exchange Board of India(SEBI) rules,
Global market impact may affect the share prices.
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1.2 INTRODUCTION TO THE INDUSTRY

In economics a financial market is a mechanism that allows people to easily buy

and sell(trade) financial securities (such as stocks and bonds), commodities (such as
precious metals or agricultural goods), and other fungible items of value at low
transaction costs and at prices that reflect efficient markets. Financial markets have
evolved significantly over several hundred years and are undergoing constant
innovation to improve liquidity. Both general markets, where many commodities are
traded and specialized markets (where only one commodity is traded) exist. Markets
work by placing many interested sellers in one “place”, thus making them easier to
find for prospective buyers.
The history of the Indian capital market and the stock market
In particular can be traced back to 1861 when the American Civil War began.
The opening of the Suez Canal during the 1860s led to a tremendous increase in
exports to the United Kingdom and United States. Several companies were formed
during this period and many banks came to the fore to handle the finances relating to
these trades. With many of these registered under the British Companies Act, the
Stock Exchange, Mumbai, came into existence in 1875.
Unincorporated body:
It was an unincorporated body of stockbrokers, which started doing business in
the city under a banyan tree. Business was essentially confined to company owners
and brokers, with very little interest evinced by the general public. There had been
much fluctuation in the stock market on account of the American war and the battles
in Europe. Sir Premchand Roychand remained a kingpin for many years. Sir Phiroze
Jeejeebhoy was another who dominated the stock market scene from 1946 to 1980.
His word was law and he had a great deal of influence over both brokers and the
government. He was a good regulator and many crises were averted due to his
wisdom and practicality. The BSE building, icon of the Indian capital markets, is
called P.J. tower in his memory.
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Various Acts
The Securities Contract Regulation Act 1956 became the parent regulation after
the Indian Contract Act 1872, a basic law to be followed by security markets in India.
To regulate the issue of share prices, the Controller of Capital Issues Act (CCI) was
passed in 1947. The stock markets have had many turbulent times in the last 140 years
of their existence. The imposition of wealth and expenditure tax in 1957 by Mr.
T.T.Krishnamachari, the then finance minister, led to a huge fall in the markets. The
dividend freeze and tax on bonus issues in 1958-59 also had a negative impact. War
with China in 1962 was another memorably bad year, with the resultant shortages
increasing prices all round. This led to a ban on forward trading in commodity
markets in 1966, which was again a very bad period, together with the introduction of
the Gold Control Act in 1963.
Retail Investors
The markets have witnessed several golden times too. Retail investors began
participating in the stock markets in a small way with the dilution of the FERA in
1978. Multinational companies, with operations in India, were forced to reduce
foreign share holding to below a certain percentage, which led to a compulsory sale of
shares or issuance of fresh stock. Indian investors, who applied for these shares,
encountered a real lottery because those were the days when the CCI decided the price
at which the shares could be issued. There was no free pricing and their formula was
very conservative.
1980 Boom
The next big boom and mass participation by retail investors happened in 1980,
with the entry of Mr. Dhirubhai Ambani. Dhirubhai can be said to be the father of
modern capital markets. The Reliance public issue and subsequent issues on various
Reliance companies generated huge interest. The general public was so unfamiliar
with share certificates that Dhirubhai is rumoured to have distributed them to educate
people. Mr. V.P. Singh’s fiscal budget in 1984 was path breaking for it started the era
of liberalization. The removal of estate duty and reduction of taxes led to a swell in
the new issue market and there was a deluge of companies in 1985.
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1990’s market
Mr. Manmohan Singh as Finance Minister came with a reform agenda in 1991
and this led to a resurgence of interest in the capital markets, only to be punctured by
the Harshad Mehta scam in 1992. The mid-1990s saw a rise in leasing company
shares, and hundreds of companies were mainly listed in Gujarat, and got listed in the
BSE. The end-1990s saw the emergence of Ketan Parekh and the information;
communication and entertainment companies came into the limelight. This period
also coincided with the dotcom bubble in the US, with software companies being the
most favoured stocks.
There was a meltdown in software stock in early 2000. Mr. P Chidambaram
continued the liberalization and reform process, opening up of the companies, lifting
taxes on long-term gains and introducing short-term turnover tax. The markets have
recovered since then and we have witnessed a sustained rally that has taken the index
over 13000. Several systemic changes have taken place during the short history of
modern capital markets. The setting up of the Securities and Exchange Board (SEBI)
in 1992 was a landmark development. It got its act together, obtained the requisite
powers and became effective in early 2000.
The setting up of the National Stock Exchange in 1984, the introduction of online
trading in 1995, the establishment of the depository in 1996, trade guarantee funds
and derivatives trading in 2000, have made the markets safer. The introduction of the
Fraudulent Trade Practices Act, Prevention of Insider Trading Act, Takeover Code
and Corporate Governance Norms, are major developments in the capital markets
over the last few years that has made the markets attractive to foreign institutional
investors. This history shows us that retail investors are yet to play a substantial role
in the market as long-term investors. Retail participation in India is very limited
considering the overall savings of households. Investors who hold shares in limited
companies and mutual fund units are about 20-30 million. Those who participated in
secondary markets are 2-3 million. Now it has grown still more. A stock market is a
public market for the trading of company stock and derivatives at an agreed price;
these are securities listed on a stock exchange as well as those only traded privately.
The size of the world stock market was estimated at about $36.6 trillion US at the
beginning of October 2008. The total world derivatives market has been estimated at
about $791 trillion face or nominal value, 11 times the size of the entire world
economy. The value of the derivatives market, because it is stated in terms of
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notional values, cannot be directly compared to a stock or a fixed income security,

which traditionally refers to an actual value. Moreover, the vast majority of
derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is
offset by a comparable derivative 'bet' on the event not occurring.). Many such
relatively illiquid securities are valued as marked to model, rather than an actual
market price. The stocks are listed and traded on stock exchanges which are entities of
a corporation or mutual organization specialized in the business of bringing buyers
and sellers of the organizations to a listing of stocks and securities together.

Financial markets could mean

1. Organizations that facilitate the trade in financial products. i.e., stock

exchanges facilitate the trade in stocks, bonds and warrants.
2. The coming together of buyers and sellers to trade financial products. i.e.,
stocks and shares are traded between buyers and sellers in a number of ways
including the use of stock exchanges; directly between buyers and sellers
etc.

Financial Markets Facilitate

• The raising of capital (in the capital markets);
• The transfer of risk (in the derivatives markets); and
• International trade (in the currency markets).
They are used to match those who want capital to those who have it. Typically a
borrower issues a receipt to the lender promising to pay back the capital. These
receipts are securities which may be freely bought or sold. In return for lending
money to the borrower, the lender will expect some compensation in the form of
interest or dividends.

Types of Financial Markets

The financial markets can be divided into different subtypes
 Capital markets which consist of
• Stock markets, which provide financing through the issuance of shares or
common stock, and enable the subsequent trading thereof.
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• Bond markets, which provide financing through the issuance of Bonds,

and enable the subsequent trading thereof.
 Commodity markets, which facilitate the trading of commodities
 Money markets, which provide short term debt financing and investment.
 Insurance markets, which facilitate the redistribution of various risks.
 Foreign exchange markets, which facilitate the trading of foreign exchange.
Capital Market
A Capital market consists of stock exchange, merchant bankers, underwriters,
stock brokers, retail investors and so on. A stock market, or equity market is a private
or public market for the trading of company stock and derivatives of company stock at
an agreed [rice; these are securities listed on a stock exchange as well as those only
traded privately.
Bond Market
The bond market, also known as the debt, credit, or fixed income market, is a
financial market where participants buy and sell debt securities usually in the form of
bonds. References to the "bond market" usually refer to the government bond market
because of its size, liquidity, lack of credit risk and therefore, sensitivity to interest
rates. Because of the inverse relationship between bond valuation and interest rates,
the bond market is often used to indicate changes in interest rates or the shape of the
yield curve.
Bond market participants
Bond market participants are similar to participants in most financial markets and
are essentially either buyers (debt issuer) of funds or sellers (institution) of funds and
often both.
Participants include
• Institutional investors;
• Governments;
• Traders; and
• Individuals
Because of the specificity of individual bond issues, and the lack of liquidity in
many smaller issues, the majority of outstanding bonds are held by institutions like
pension funds, banks and mutual funds.
Types of bond markets
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The Bond Market Association classifies the broader bond market into five
specific bond markets.
1) Corporate
2) Government & Agency
3) Municipal
4) Mortgage Backed, Asset Backed, and Collateralized Debt Obligation
5) Funding
Market structure
Bond markets in most countries remain decentralized and lack common
exchanges like stock, future and commodity markets. This has occurred, in part,
because no two bond issues are exactly alike, and the number of different securities
outstanding is far larger.
Stock market
A stock market is a market for the trading of company stock, and derivatives of
same; both of these are securities listed on a stock exchange as well as those only
traded privately.
Purpose of stock market
The stock market is one of the most important sources for companies to raise
money. This allows businesses to go public, or raise additional capital for expansion.
The liquidity that an exchange provides affords investors the ability to quickly and
easily sell securities. This is an attractive feature of investing in stocks, compared to
other less liquid investments such as real estate.
Market participants
Many years ago, worldwide, buyers and sellers were individual investors, such as
wealthy businessmen, with long family histories (and emotional ties) to particular
corporations. Over time, markets have become more "institutionalized"; buyers and
sellers are largely institutions (e.g., pension funds, insurance companies, mutual
funds, hedge funds, investor groups, and banks). The rise of the institutional investor
has brought with it some improvements in market operations. Thus, the government
was responsible for "fixed" (and exorbitant) fees being markedly reduced for the
'small' investor, but only after the large institutions had managed to break the brokers'
solid front on fees (they then went to 'negotiated' fees, but only for large institutions).
Primary market
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The primary is that part of the capital markets that deals with the issuance of new
securities. Companies, governments or public sector institutions can obtain funding
through the sale of a new stock or bond issue. This is typically done through a
syndicate of securities dealers. The process of selling new issues to investors is called
underwriting. In the case of a new stock issue, this sale is an initial public offering
(IPO). Dealers earn a commission that is built into the price of the security offering,
though it can be found in the prospectus. Features of Primary Market are:-
1) This is the market for new long term capital. The primary market is the market
where the securities are sold for the first time. Therefore it is also called New
Issue Market (NIM).
2) In a primary issue, the securities are issued by the company directly to investors.
3) The company receives the money and issue new security certificates to the
investors.
4) Primary issues are used by companies for the purpose of setting up new business
or for expanding or modernizing the existing business.
5) The primary market performs the crucial function of facilitating capital
formation in the economy.
6) The new issue market does not include certain other sources of new long term
external finance, such as loans from financial institutions. Borrowers in the new
issue market may be raising capital for converting private capital into public
capital; this is known as ‘going public’.
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Methods of issuing securities in the Primary Market

1. Initial Public Offer;
2. Rights Issue (For existing Companies); and
3. Preferential Issue.
Secondary market
The secondary market is the financial market for trading of securities that have
already been issued in an initial private or public offering. Alternatively, secondary
market can refer to the market for any kind of used goods. The market that exists in a
new security just after the new issue is often referred to as the aftermarket. Once a
newly issued stock is listed on a stock exchange, investors and speculators can easily
trade on the exchange, as market makers provide bids and offers in the new stock
Stock Exchange
According to the Securities Contracts Regulation Act 1956, “stock exchange is
an association, organization or body of individuals whether incorporation or not,
established for the purpose of assisting regulating and controlling business in buying,
selling and dealing in securities. The securities include shares, scrip’s, debentures or
other marketable securities of like nature of any incorporated company or other body
corporate, government securities and fixed interest securities”.
Bombay Stock Exchange
The origin of the Bombay stock exchange dates back to 1875. It was organised
under the name of “the native stock and shares brokers association” as a voluntary and
non-profit making association. It was recognized on a permanent basis in 1957. This
premier stock exchange is the oldest stock exchange in Asia. The objectives of the
stock exchanges are:
1. To safeguard the interest of the investing public having dealings on the
exchange.
2. To establish and promote honorable and just practices in securities
transaction.
3. To promote, develop and maintain well regulated market for dealings in
securities.
4. To promote industrial development in the country through efficient
resource mobilization by the way of investment in corporate securities.
 27

National Stock Exchange

The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock Exchanges. It
recommended promotion of a National Stock Exchange by financial institutions (FIs)
to provide access to investors from all across the country on an equal footing. Based
on the recommendations, NSE was promoted by leading Financial Institutions at the
behest of the Government of India and was incorporated in November 1992 as a tax-
paying company unlike other stock exchanges in the country
Trading on NSE is characterized by key innovations.
• The physical floor was replaced by anonymous, computerized order-matching
with strict prime time priority using depository participants and
dematerialization of share certificates.
• The limitations of being on Mumbai and the limitations of India’s public
telecom network were avoided by using satellite communications. Now NSE has
a network of over 2000 satellite terminals all over this country. On a typical day
almost over 3500 traders log in to the trading computer over this network. This
is larger than the capacity of the largest trading floors in the world.
• NSE is not allowed by brokers. It is a limited liability company and brokers or
franchisees. Therefore NSE staff is free of pressures from brokers and is able to
perform its regulatory and enforcement functions more effectively.
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1.3 INTRODUCTION TO THE COMPANY

1.3.1 HISTORY
The core promoters of the company started their operations as trading
members in Coimbatore stock trading company during the year 1990. When
Coimbatore stock exchange was formed in 1992, they became members of CSX.
When NSE opened its window in Coimbatore in 1995, SWSL became one of
the pioneering members of NSE. SWSL was listed in
Coimbatore/Chennai/Ahmadabad Stock Exchanges in 1995. When NSE introduced
Futures and Options in 2000, SWSL was in the forefront in providing this service to
its clients.
SWSL has seen the upheavals in the stock market in the last several years and
has maintained its success through excellent client relationships, robust risk
management and significant investment in infrastructure, both physical and
technology.
1.3.2 PROFILE

BOARD OF DIRECTORS

R.KRISHNASWAMY
KRK is a Chartered Accountant with 20 years experience in professional
practice and is a renowned investment advisor. He specializes in Mid and Small Cap
stocks.
P.SIVAKUMAR
Sivakumar is a Mechanical Engineer from PSG Tech and has an experience
spanning twenty-three years in Paper mill Machineries and Stock market. He takes
care of technology assessment of various companies.
K.GNANASEKARAN
KGS is a Chartered Accountant with three decades of experience in Industry
and stock market. He is a professional investor and trader in equities and
commodities, both in India as well as US. He specializes in Nifty stocks.

C.ASHWINTHAKKER
Ashwin is a Chartered Accountant with 25 years experience in professional
practice and is a renowned Investment Advisor and Corporate Finance specialist.
 29

BHARATHI.V.MUDALIAR
Bharathi is a Civil Engineer with experience spanning twenty-seven years in
civil construction and stock market. He specializes in Infrastructure stocks.

CHANDRAMOHANDAWAR
Chandramohan is a Chartered Accountant with experience spanning years in
professional practice and stock market. He specializes in IT and Pharma stocks.

1.3.3 SUPPORT TEAM

V.SRINIVASAN
VS is a Chartered Accountant with experience spanning thirty years in
consulting and stock market. He specializes in fundamental analysis.
PARTHASARATHY

Sarathy is a renowned Technical Analyst in equities as well as commodities.

He is the publisher and editor, for the last decade, of Technical Analysis Newsletters
called “TREND” (for position trading in index as well as in scrips ) and “DAY
TRADER” (for daily trading).

Single Window Securities Ltd is a member of stock exchange. We provide

quality stock broking services to our customers. Since inception we have established a
reputation for ourself as a provider of quality services.

Company Type Public Limited

Broad Categories Financial Services
Company Affiliation Others
buying and selling of shares on the
Main Product Range
National Stock Exchange of India
Seller Type Services
 30

CHAPTER II

OBJECTIVES OF THE STUDY

 31

CHAPTER 2

2.1 OBJECTIVES OF THE STUDY

1. To find out maximum buying stocks in single windows securities limited.

2. To analyze the price fluctuations in various scrip using technical analysis.
3. To study whether the attitude towards the current market condition show any
favourable outcomes to the investors.
4. To know the fundamental factors affecting share prices.
5. To give suggestions for investors.
 32

SCOPE OF THE STUDY

 33

2.2 SCOPE OF THE STUDY

1. The study gives the technical views and also the fundamental views of the
selected scrips.
2. This study will help investors to understand how to do trade through analyzing
technical indicators to minimize loss and obtain high profit.
3. This study will enable investors to find out how selected scrips had performed
for the last 3 months.
4. For the new investors this study will serve as a guideline to know about
investment pattern scrip.
 34

LIMITATIONS OF THE STUDY

 35

2.3 LIMITATIONS OF THE STUDY

1. The short duration of the project is major constraint.

2. Tools used for the analysis has its own limitations which may have impact on
the study.
 36

CHAPTER III

RESEARCH METHODOLOGY
 37

CHAPTER 3
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem.
It may be understood as a science of studying how research is done scientifically. It
not only tells about the research method used but also considers the logic behind
them. It involves steps that are adopted by the researcher in studying how research is
done scientifically.
According to Clifford woody research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting, organizing and
evaluating data; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis.

3.1 RESEARCH DESIGN

The study aims at analyzing the price movements of selected companies’

scrip’s. As the study describes the existing facts and figures given in the financial
statement and the price movements of the selected companies, the research design
followed is descriptive and analytical in nature.
Descriptive research includes surveys and fact-finding enquiries of different
kinds. The major purpose of descriptive research is description of the state of affairs
as it exists at present. Descriptive research studies are those studies which are
concerned with describing the characteristics of a particular individual, or of a group.

Nature of the data

Secondary data

The secondary data means data that are already available. i.e. Referring to the
data which have already been collected and analyzed by someone else and which have
already been passed through the statistical process. The information about the
company and its type were collected from the organizations records.

Journal

Books

Websites
 38

3.2 Companies selected for study

1. Reliance Industries Limited (RIL).
2. Axis Bank.
3. Ranbaxy Laboratories.
4. Bharti Airtel.
5. Hindustan Construction Company (HCC).

3.2.1 Reliance Industries Limited

Reliance Industries Limited is India's largest private sector conglomerate with

an annual turnover of US$ 44.6 billion and profit of US$ 3.6 billion for the fiscal year
ending in March 2010 making it one of India's private sector Fortune Global
500 companies, being ranked at 264th position (2009). It was founded by the Indian
industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing
financial instruments like fully convertible debentures to the Indian stock markets.
Ambani was one of the first entrepreneurs to draw retail investors to the stock
markets. In September 2008, Reliance Industries was the only Indian firm featured in
the Forbes's list of "world's 100 most respected companies".

3.2.2 Axis Bank

Axis Bank previously called UTI Bank was the first of the new private banks
to have begun operations in 1994, after the Government of India allowed new private
banks to be established. The Bank was promoted jointly by the Administrator of the
Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation
of India (LIC), General Insurance Corporation Ltd., National Insurance Company
Ltd., The New India Assurance Company, The Oriental Insurance
Corporation and United India Insurance Company UTI-I holds a special position in
the Indian capital markets and has promoted many leading financial institutions in the
country.

3.2.3 Ranbaxy Laboratories Limited

Ranbaxy Laboratories Limited is India's largest pharmaceutical company.
Incorporated in 1961, Ranbaxy exports its products to 125 countries with ground
operations in 46 and manufacturing facilities in seven countries. The company went
 39

public in 1973, and Japanese company Daiichi Sankyo gained majority control in
2008 Ranbaxy Pharmaceuticals Inc. (RPI), a wholly owned subsidiary of Ranbaxy
Laboratories Limited. (RLL) was established in the U.S. in 1994. Ranbaxy
Laboratories Inc. (RLI), also a wholly owned subsidiary of Ranbaxy Laboratories
Limited. (RLL), is the branded prescription division in the U.S. RLI has been
expanding and growing on the strength of Ranbaxy’s R&D efforts, and continuing
exploration of novel drug delivery systems (NDDS), licensing activities, mergers and
acquisitions.
3.2.4 Bharti Airtel
Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the
largest cellular service provider in India, with more than 131 million subscribtions as
of April 2010. With this, Bharti is now the world’s third-largest, single-country
mobile operator and sixth-largest integrated telecom operator. It also offers fixed line
services and broadband services. It offers its TELECOM services under
the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides
telephone services and broadband Internet access (DSL) in top 95 cities in India.
Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber
base, behind China Mobile and China Unicom
3.2.5 Hindustan Construction Company (HCC)
Hindustan Construction Company is a construction company based in India,
founded in 1926. HCC works in various sectors including transportation, power,
marine, oil and gas pipeline construction, irrigation, utilities and urban infrastructure.
HCC specializes in large-scale civil engineering, and developing construction
technologies. It was the first construction company in India to be certified for ISO
9001, ISO 14001 and OHSAS 18001 for its quality, environmental and occupational
health and safety management systems.

3.3 Tools used

The tools used for the analysis are

Simple Moving Average (SMA)

Relative Strength Index (RSI)

Rate of Change (ROC)
 40

3.3.1 Simple Moving Average (SMA):

A simple, or arithmetic, moving average that is calculated by adding the

closing price of the security for a number of time periods and then dividing this total
by the number of time periods.

3.3.2 Relative Strength Index (RSI):

A technical momentum indicator that compares the magnitude of recent gains

to recent losses in an attempt to determine overbought and oversold conditions of an
asset. It is calculated using the following formula:

100
RSI = 100 -
______
1 + RS

RS = Average of x days' up closes / Average of x days' down closes

3.3.3 Rate Of Change (ROC):

The Rate of Change (ROC) indicator is a very simple yet effective

momentum oscillator that measures the percent change in price from one period to the
next. The ROC calculation compares the current price with the price n periods ago.

ROC = Today’s price /Price of n days

 41

CHAPTER IV

ANALYSIS AND INTERPRETATION

 42

CHAPTER – 4

ANALYSIS AND INTERPRETATION

TABLE - 4.1

TABLE SHOWING MOVING AVERAGE OF RELIANCE INDUSTRIES

DATE CLOSING 5 DAYS 7 DAYS 21 DAYS

PRICE

1-Feb-10 1,046.60 0 0 0
2-Feb-10 1,026.60 0 0 0
3-Feb-10 1,033.75 1021.53 0 0
4-Feb-10 1,019.40 1011.48 1013.964 0
5-Feb-10 981.3 1004.91 1005.114 0
8-Feb-10 996.35 995.09 1003.3 0
9-Feb-10 993.75 993.99 1000.471 0
10-Feb-10 984.65 1000.52 998.7643 0
11-Feb-10 1,013.90 1002.74 1003.921 0
12-Feb-10 1,013.95 1007.47 1009.014 0
15-Feb-10 1,007.45 1016.94 1009.536 1000.005
16-Feb-10 1,017.40 1013.64 1009.479 997.0048
17-Feb-10 1,032.00 1007.7 1004.479 996.3929
18-Feb-10 997.4 1001.99 998.9 995.2595
19-Feb-10 984.25 993.49 994.5786 994.5833
22-Feb-10 978.9 982.53 987 995.0071
23-Feb-10 974.9 975.92 979.2857 995.5643
24-Feb-10 977.2 974.67 976.5143 996.65
25-Feb-10 964.35 974.49 976.4214 998.3929
26-Feb-10 978 976.23 981.4 999.0524
1-Mar-10 978 983.54 986.4071 1001.569
2-Mar-10 983.6 992.66 990.4071 1004.383
4-Mar-10 1,013.75 998.1 994.1 1007.129
5-Mar-10 1,009.95 1000.54 998.3929 1009.881
8-Mar-10 1,005.20 1005.43 1003.9 1013.524
 43

9-Mar-10 990.2 1005.99 1009.279 1018.524

10-Mar-10 1,008.05 1008.25 1011.279 1023.779
11-Mar-10 1,016.55 1012.76 1019.4 1029.34
12-Mar-10 1,021.25 1028.08 1028.164 1035.14
15-Mar-10 1,027.75 1039.78 1040.286 1041.307
16-Mar-10 1,066.80 1051.48 1051.964 1046.538
17-Mar-10 1,066.55 1065.19 1060.157 1051.14
18-Mar-10 1,075.05 1074.42 1069.871 1056.381
19-Mar-10 1,089.80 1078.91 1078.657 1060.186
22-Apr-10 1,073.90 1083.45 1082.214 1065.671
23-Mar-10 1,089.25 1086.78 1086.85 1071.193
24-Mar-10 1,089.25 1088.62 1089.536 1077.802
25-Mar-10 1,091.70 1092.61 1089.257 1082.383
26-Mar-10 1,099.00 1092.33 1089.364 1087.498
29-Mar-10 1,093.85 1089.41 1089.993 1092.469
30-Mar-10 1,087.85 1089.8 1090.621 1096.898
31-Mar-10 1,074.65 1088.73 1095.4 1099.467
1-Apr-10 1,093.65 1094.99 1098.564 1100.595
2-Apr-10 1,093.65 1101.65 1103.586 1100.988
5-Apr-10 1,125.15 1112.52 1105.929 1099.662
6-Apr-10 1,121.15 1114.64 1112.971 1099.186
7-Apr-10 1,129.00 1120.7 1117.543 1097.517
8-Apr-10 1,104.25 1120.8 1121.414 1096.864
9-Apr-10 1,123.95 1120.72 1120.786 1096.657
12-Apr-10 1,125.65 1119.07 1116.371 1095.267
13-Apr-10 1,120.75 1116.27 1109.843 1093.707
14-Apr-10 1,120.75 1108.14 1103.8 1090.333
15-Apr-10 1,090.25 1095.4 1095.221 1088.431
16-Apr-10 1,083.30 1084.03 1085.014 1085.519
19-Apr-10 1,061.95 1070.72 1078.557 0
20-Apr-10 1,063.90 1067.78 1073.786 0
21-Apr-10 1,054.20 1068.59 1070.864 0
22-Apr-10 1,075.55 1070.16 1067.693 0
 44

23-Apr-10 1,087.35 1069.6 1061.271 0

26-Apr-10 1,069.80 1062.16 1057.1 0
27-Apr-10 1,061.10 1053.99 1054 0
28-Apr-10 1,017.00 1043.02 0 0
29-Apr-10 1,034.70 0 0 0
30-Apr-10 1,032.50 0 0 0

CHART- 4.1

CHART SHOWING THE MOVING AVERAGE OF RELIANCE INDUSTRIES

 45

INFERENCE:

The above moving average charts shows that the investor sold the stock in February they
got loss for Rs.68.6, the investor sold the stock in march they got gain for Rs.96.65, the
investor sold the stock in April they got the loss for 61.15.
 46

TABLE - 4.2

TABLE SHOWING RELATIVE STRENGTH INDEX OF RELIANCE

INDUSTRIES

DATE CLOSING PRICE GAIN LOSS

1-Feb-10 1,046.60 0 0
2-Feb-10 1,026.60 0 20
3-Feb-10 1,033.75 7.15 0
4-Feb-10 1,019.40 0 14.35
5-Feb-10 981.3 0 38.1
8-Feb-10 996.35 15.05 0
9-Feb-10 993.75 0 2.6
10-Feb-10 984.65 0 9.1
11-Feb-10 1,013.90 29.25 0
12-Feb-10 1,013.95 0.05 0
15-Feb-10 1,007.45 0 6.5
16-Feb-10 1,017.40 9.95 0
17-Feb-10 1,032.00 14.6 0
18-Feb-10 997.4 0 34.6
19-Feb-10 984.25 0 13.15
22-Feb-10 978.9 0 5.35
23-Feb-10 974.9 0 4
24-Feb-10 977.2 2.3 0
25-Feb-10 964.35 0 12.85
26-Feb-10 978 13.65 0
1-Mar-10 978 0 0
2-Mar-10 983.6 5.6 0
4-Mar-10 1,013.75 30.15 0
5-Mar-10 1,009.95 0 3.8
8-Mar-10 1,005.20 0 4.75
9-Mar-10 990.2 0 15
10-Mar-10 1,008.05 17.85 0
11-Mar-10 1,016.55 8.5 0
 47

12-Mar-10 1,021.25 4.7 0

15-Mar-10 1,027.75 6.5 0
16-Mar-10 1,066.80 39.05 0
17-Mar-10 1,066.55 0 0.25
18-Mar-10 1,075.05 8.5 0
19-Mar-10 1,089.80 14.75 0
22-Mar-10 1,073.90 0 15.9
23-Mar-10 1,089.25 15.35 0
24-Mar-10 1,089.25 0 0
25-Mar-10 1,091.70 2.45 0
26-Mar-10 1,099.00 7.3 0
29-Mar-10 1,093.85 0 5.15
30-Mar-10 1,087.85 0 6
31-Mar-10 1,074.65 0 13.2
1-Apr-10 1,093.65 19 0
2-Apr-10 1,093.65 0 0
5-Apr-10 1,125.15 31.5 0
6-Apr-10 1,121.15 0 0
7-Apr-10 1,129.00 3.85 0
8-Apr-10 1,104.25 0 24.75
9-Apr-10 1,123.95 19.7 0
12-Apr-10 1,125.65 1.7 0
13-Apr-10 1,120.75 0 4.9
14-Apr-10 1,120.75 0 0
15-Apr-10 1,090.25 0 30.5
16-Apr-10 1,083.30 0 6.95
19-Apr-10 1,061.95 0 21.35
20-Apr-10 1,063.90 1.95 0
21-Apr-10 1,054.20 0 9.7
22-Apr-10 1,075.55 21.35 0
23-Apr-10 1,087.35 11.8 0
26-Apr-10 1,069.80 0 17.55
 48

27-Apr-10 1,061.10 0 8.7

28-Apr-10 1,017.00 0 44.1
29-Apr-10 1,034.70 17.7 0
30-Apr-10 1,032.50 0 2.2
TOTAL 381.25 393.15
N 29 29
TOTAL/N 13.15 13.63

RSI = 100 - (100/ (1+0.96)

= 100 – 51.01
=48.98

LOGIC 30 BUY
70 SELL
 49

CHART - 4.2

CHART SHOWING THE RELATIVE STRENGTH INDEX OF RELIANCE

INDUSTRIES

INFERENCE:
The above curve analyzes shows that the RSI of reliance industries is
48%, which is near to buy and sell signal. In this period the investor can buy the
stock.
 50

TABLE-4.3

TABLE SHOWING RATE OF CHANGE OF RELIANCE INDUSTRIES

DATE CLOSING PRICE ROC

1-Feb-10 1,046.60 0
2-Feb-10 1,026.60 0
3-Feb-10 1,033.75 0
4-Feb-10 1,019.40 0
5-Feb-10 981.3 0
8-Feb-10 996.35 0
9-Feb-10 993.75 0
10-Feb-10 984.65 94.08083
11-Feb-10 1,013.90 98.76291
12-Feb-10 1,013.95 98.08464
15-Feb-10 1,007.45 98.82774
16-Feb-10 1,017.40 103.6788
17-Feb-10 1,032.00 103.5781
18-Feb-10 997.4 100.3673
19-Feb-10 984.25 99.95938
22-Feb-10 978.9 96.54798
23-Feb-10 974.9 96.14873
24-Feb-10 977.2 96.99737
25-Feb-10 964.35 94.78573
26-Feb-10 978 94.76744
1-Mar-10 978 98.05494
2-Mar-10 983.6 99.93396
4-Mar-10 1,013.75 103.5601
5-Mar-10 1,009.95 103.5952
8-Mar-10 1,005.20 102.8653
9-Mar-10 990.2 102.6806
10-Mar-10 1,008.05 103.0726
11-Mar-10 1,016.55 103.9417
12-Mar-10 1,021.25 103.8278
 51

15-Mar-10 1,027.75 101.381

16-Mar-10 1,066.80 105.629
17-Mar-10 1,066.55 106.1033
18-Mar-10 1,075.05 108.569
19-Mar-10 1,089.80 108.1097
22-Mar-10 1,073.90 105.6416
23-Mar-10 1,089.25 106.6585
24-Mar-10 1,089.25 105.9839
25-Mar-10 1,091.70 102.3341
26-Mar-10 1,099.00 103.0425
29-Mar-10 1,093.85 101.7488
30-Mar-10 1,087.85 99.82107
31-Mar-10 1,074.65 100.0698
1-Apr-10 1,093.65 100.4039
2-Apr-10 1,093.65 100.4039
5-Apr-10 1,125.15 103.064
6-Apr-10 1,121.15 102.0155
7-Apr-10 1,129.00 103.2134
8-Apr-10 1,104.25 101.5076
9-Apr-10 1,123.95 104.5875
12-Apr-10 1,125.65 102.926
13-Apr-10 1,120.75 102.4779
14-Apr-10 1,120.75 99.60894
15-Apr-10 1,090.25 97.2439
16-Apr-10 1,083.30 95.95217
19-Apr-10 1,061.95 96.16935
20-Apr-10 1,063.90 94.65724
21-Apr-10 1,054.20 93.65256
22-Apr-10 1,075.55 95.96699
23-Apr-10 1,087.35 97.01985
26-Apr-10 1,069.80 98.12428
27-Apr-10 1,061.10 97.95071
28-Apr-10 1,017.00 95.76722
 52

29-Apr-10 1,034.70 97.25538

30-Apr-10 1,032.50 97.94157

CHART - 4.3

CHART SHOWING RATE OF CHANGE OF RELIANCE INDUSTRIES

INFERENCE:
During February the price fluctuation of Reliance Industries is between
the high of Rs.1129 and low of Rs.964.35. According to ROC method, the changes
fluctuated which is above high 100, that’s to be considered as sell signal. Here, in this
chart, it shows 96% of ROC. At this time the investor can buy this stock.
 53

TABLE - 4.4

TABLE SHOWING MOVING AVERAGE OF AXIS BANK

DATE CLOSING 5 DAYS 7 DAYS 21 DAYS

PRICE

1-Feb-10 1,063.35 0 0 0
2-Feb-10 1,033.05 0 0 0
3-Feb-10 1,069.90 1047.34 0 0
4-Feb-10 1,047.05 1039.27 1042.514 0
5-Feb-10 1,023.35 1040.24 1037.007 0
8-Feb-10 1,023.00 1031.22 1037.286 0
9-Feb-10 1,037.90 1028.81 1032.3 0
10-Feb-10 1,024.80 1031.14 1029.564 0
11-Feb-10 1,035.00 1032.12 1029.929 0
12-Feb-10 1,035.00 1029.72 1036.293 0
15-Feb-10 1,027.90 1038.27 1045.279 1064.5
16-Feb-10 1,025.90 1051.43 1055.45 1068.755
17-Feb-10 1,067.55 1063.63 1065.393 1072.974
18-Feb-10 1,100.80 1078.97 1074.443 1074.54
19-Feb-10 1,096.00 1093.46 1083.793 1078.414
22-Feb-10 1,104.60 1098.62 1094.086 1082.798
23-Feb-10 1,098.35 1098.05 1102.271 1087.888
24-Feb-10 1,093.35 1103.82 1105.707 1093.286
25-Feb-10 1,097.95 1107.87 1113.807 1099.34
26-Feb-10 1,124.85 1118.74 1116.243 1104.331
1-Mar-10 1,124.85 1124.4 1116.879 1109.576
2-Mar-10 1,152.70 1125.37 1121.886 1115.186
4-Mar-10 1,121.65 1126.08 1124.379 1121.805
5-Mar-10 1,102.80 1124.19 1125.1 1125.976
8-Mar-10 1,128.40 1119.63 1128.871 1128.167
9-Mar-10 1,115.40 1125.55 1128.764 1131.245
10-Mar-10 1,129.90 1135.38 1131.357 1133.914
11-Mar-10 1,151.25 1137.66 1137.407 1136.583
 54

12-Mar-10 1,151.95 1143.61 1139.879 1141.264

15-Mar-10 1,139.80 1146.77 1146.95 1146.11
16-Mar-10 1,145.15 1149.5 1150.557 1148.41
17-Mar-10 1,145.70 1150.14 1149.921 1150.517
18-Mar-10 1,164.90 1151.54 1151.164 1151.517
19-Mar-10 1,155.15 1154.64 1154.143 1153.995
22-Mar-10 1,146.80 1157.63 1155.464 1157.398
23-Mar-10 1,160.65 1155.53 1162.029 1159.443
24-Mar-10 1,160.65 1162.83 1167 1161.767
25-Mar-10 1,154.40 1173.41 1169.571 1163.024
26-Mar-10 1,191.65 1175.91 1172.757 1164.505
29-Mar-10 1,199.70 1177.6 1174.621 1165.712
30-Mar-10 1,173.15 1181.46 1176.486 1166.569
31-Mar-10 1,169.10 1177.87 1179.321 1167.171
1-Apr-10 1,173.70 1172.78 1176.421 1167.34
2-Apr-10 1,173.70 1172.42 1171.35 1166.652
5-Apr-10 1,174.25 1171.44 1168.943 1166.76
6-Apr-10 1,171.35 1167.96 1170.836 1168.65
7-Apr-10 1,164.20 1169.69 1171.35 1172.388
8-Apr-10 1,156.30 1170.3 1169.079 1175.486
9-Apr-10 1,182.35 1167.59 1166.729 1179.248
12-Apr-10 1,177.30 1166.31 1163.571 1183.21
13-Apr-10 1,157.80 1164.9 1161.607 1186.955
14-Apr-10 1,157.80 1158.52 1161.764 1191.04
15-Apr-10 1,149.25 1154.54 1162.357 1195.926
16-Apr-10 1,150.45 1160.28 1171.193 1200.426
19-Apr-10 1,157.40 1176.55 1180.893 0
20-Apr-10 1,186.50 1191.84 1191.693 0
21-Apr-10 1,239.15 1208.43 1209.636 0
22-Apr-10 1,225.70 1231.92 1227.907 0
23-Apr-10 1,233.40 1250.29 1242.414 0
26-Apr-10 1,274.85 1254.25 1254.586 0
27-Apr-10 1,278.35 1263.45 1258.736 0
28-Apr-10 1,258.95 1270.41 0 0
 55

29-Apr-10 1,271.70 0 0 0
30-Apr-10 1,268.20 0 0 0

CHART - 4.4

CHART SHOWING THE MOVING AVERAGE OF AXIS BANK

 56

INFERENCE:
. The above moving average charts shows that the investor sold the stock in February they
got gain for Rs.61.5, the investor sold the stock in march they got gain for Rs.44.25, the
investor sold the stock in April they got the gain for 94.5.
 57

TABLE – 4.5

TABLE SHOWING RELATIVE STRENGTH INDEX OF AXIS BANK

DATE CLOSING PRICE GAIN LOSS

1-Feb-10 1,063.35 0 0
2-Feb-10 1,033.05 0 30.3
3-Feb-10 1,069.90 36.85 0
4-Feb-10 1,047.05 0 22.85
5-Feb-10 1,023.35 0 23.7
8-Feb-10 1,023.00 0 0.3
9-Feb-10 1,037.90 14.85 0
10-Feb-10 1,024.80 13.1 0
11-Feb-10 1,035.00 10.2 0
12-Feb-10 1,035.00 0 0
15-Feb-10 1,027.90 0 7.1
16-Feb-10 1,025.90 0 2
17-Feb-10 1,067.55 41.65 0
18-Feb-10 1,100.80 33.25 0
19-Feb-10 1,096.00 0 4.8
22-Feb-10 1,104.60 8.6 0
23-Feb-10 1,098.35 0 6.25
24-Feb-10 1,093.35 0 5
25-Feb-10 1,097.95 4.6 0
26-Feb-10 1,124.85 26.9 0
1-Mar-10 1,124.85 0 0
2-Mar-10 1,152.70 27.85 0
4-Mar-10 1,121.65 31.05 0
5-Mar-10 1,102.80 18.85 0
8-Mar-10 1,128.40 25.6 0
9-Mar-10 1,115.40 0 13
10-Mar-10 1,129.90 14.5 0
 58

11-Mar-10 1,151.25 21.35 0

12-Mar-10 1,151.95 0.7 0
15-Mar-10 1,139.80 12.15 0
16-Mar-10 1,145.15 5.35 0
17-Mar-10 1,145.70 0.55 0
18-Mar-10 1,164.90 19.2 0
19-Mar-10 1,155.15 0 9.75
22-Mar-10 1,146.80 0 8.35
23-Mar-10 1,160.65 13.85 0
24-Mar-10 1,160.65 0 0
25-Mar-10 1,154.40 0 6.25
26-Mar-10 1,191.65 37.25 0
29-Mar-10 1,199.70 8.05 0
30-Mar-10 1,173.15 0 26.55
31-Mar-10 1,169.10 0 4.05
1-Apr-10 1,173.70 4.6 0
2-Apr-10 1,173.70 0 0
5-Apr-10 1,174.25 0.55 0
6-Apr-10 1,171.35 0 2.9
7-Apr-10 1,164.20 0 7.15
8-Apr-10 1,156.30 0 7.9
9-Apr-10 1,182.35 26.05 0
12-Apr-10 1,177.30 5.05 0
13-Apr-10 1,157.80 0 19.5
14-Apr-10 1,157.80 0 0
15-Apr-10 1,149.25 0 8.55
16-Apr-10 1,150.45 1.2 0
19-Apr-10 1,157.40 6.95 0
20-Apr-10 1,186.50 29.1 0
21-Apr-10 1,239.15 52.65 0
22-Apr-10 1,225.70 0 13.45
23-Apr-10 1,233.40 7.7 0
 59

26-Apr-10 1,274.85 41.45 0

27-Apr-10 1,278.35 3.5 0
28-Apr-10 1,258.95 0 19.4
29-Apr-10 1,271.70 12.75 0
30-Apr-10 1,268.20 0 3.5
TOTAL 605.1 229.7
N 35 23
TOTAL/N 17.65 10.98

RSI = 100 - (100/ (1+1.61)

= 100 – 38.31
=61.69

LOGIC 30 BUY
70 SELL

CHART-4.5

CHART SHOWING THE RELATIVE STRENGTH INDEX OF AXIS BANK

INFERENCE:

The above curve analyzes shows that the RSI of axis bank is 62%, which is
near to sell signal. In this period the investor can sell the stock.
 60

TABLE – 4.6

TABLE SHOWING RATE OF CHANGE OF AXIS BANK

DATE CLOSING PRICE ROC

1-Feb-10 1,063.35 0
2-Feb-10 1,033.05 0
3-Feb-10 1,069.90 0
4-Feb-10 1,047.05 0
5-Feb-10 1,023.35 0
8-Feb-10 1,023.00 0
9-Feb-10 1,037.90 0
10-Feb-10 1,024.80 96.37466
11-Feb-10 1,035.00 100.1888
12-Feb-10 1,035.00 96.73801
15-Feb-10 1,027.90 98.17105
16-Feb-10 1,025.90 100.2492
17-Feb-10 1,067.55 104.3548
18-Feb-10 1,100.80 106.0603
19-Feb-10 1,096.00 106.9477
22-Feb-10 1,104.60 106.7246
23-Feb-10 1,098.35 106.1208
24-Feb-10 1,093.35 106.3674
25-Feb-10 1,097.95 107.0231
26-Feb-10 1,124.85 105.3674
1-Mar-10 1,124.85 102.1848
2-Mar-10 1,152.70 105.1734
4-Mar-10 1,121.65 101.5435
5-Mar-10 1,102.80 100.4052
8-Mar-10 1,128.40 103.2057
9-Mar-10 1,115.40 101.5893
10-Mar-10 1,129.90 100.4489
11-Mar-10 1,151.25 102.347
12-Mar-10 1,151.95 99.93494
 61

15-Mar-10 1,139.80 101.6182

16-Mar-10 1,145.15 103.8402
17-Mar-10 1,145.70 101.5331
18-Mar-10 1,164.90 104.4379
19-Mar-10 1,155.15 102.2347
22-Mar-10 1,146.80 99.61346
23-Mar-10 1,160.65 100.7552
24-Mar-10 1,160.65 101.8293
25-Mar-10 1,154.40 100.8078
26-Mar-10 1,191.65 104.0106
29-Mar-10 1,199.70 102.9874
30-Mar-10 1,173.15 101.5582
31-Mar-10 1,169.10 101.9445
1-Apr-10 1,173.70 101.1244
2-Apr-10 1,173.70 101.1244
5-Apr-10 1,174.25 101.7195
6-Apr-10 1,171.35 98.29648
7-Apr-10 1,164.20 97.04093
8-Apr-10 1,156.30 98.5637
9-Apr-10 1,182.35 101.1334
12-Apr-10 1,177.30 100.3067
13-Apr-10 1,157.80 98.64531
14-Apr-10 1,157.80 98.59911
15-Apr-10 1,149.25 98.11329
16-Apr-10 1,150.45 98.81893
19-Apr-10 1,157.40 100.0951
20-Apr-10 1,186.50 100.351
21-Apr-10 1,239.15 105.2535
22-Apr-10 1,225.70 105.8646
23-Apr-10 1,233.40 106.5296
26-Apr-10 1,274.85 110.9289
27-Apr-10 1,278.35 111.1174
 62

28-Apr-10 1,258.95 108.774

29-Apr-10 1,271.70 107.1808
30-Apr-10 1,268.20 102.3443

CHART-4.6

CHART SHOWING THE RATE OF CHANGE OF AXIS BANK

INFERENCE:
During February the price fluctuation of Axis Bank is between the high of
Rs.1271.70 and low of Rs.1023. According to ROC method, the changes fluctuated
which is above high 100, that’s to be considered as sell signal. Here, in this chart, it
shows 103% of ROC. At this time the investor can sell this stock.
 63

TABLE – 4.7
TABLE SHOWING MOVING AVERAGE OF RANBAXY LABORATORIES
LIMITED

DATE CLOSING 5 DAYS 7 DAYS 21 DAYS

PRICE

1-Feb-10 457.15 0 0 0
2-Feb-10 440.9 0 0 0
3-Feb-10 438.75 433.59 0 0
4-Feb-10 426.3 422.5 425.0286 0
5-Feb-10 404.85 415.43 418.1214 0
8-Feb-10 401.7 409.44 414.5571 0
9-Feb-10 405.55 407.37 411.3 0
10-Feb-10 408.8 409.59 409.0857 0
11-Feb-10 415.95 411.41 414.1786 0
12-Feb-10 415.95 418.4 419.8786 0
15-Feb-10 410.8 424.96 425.2071 434.5143
16-Feb-10 440.5 430.34 430.05 435.5714
17-Feb-10 441.6 435.69 433.7429 437.1024
18-Feb-10 442.85 441.89 438.4286 438.5262
19-Feb-10 442.7 443.54 444.2786 440.1429
22-Feb-10 441.8 445.57 446.2143 442.4452
23-Feb-10 448.75 447.81 449.85 444.9667
24-Feb-10 451.75 452.68 453.3071 447.5643
25-Feb-10 454.05 457.73 458.5429 450.1524
26-Feb-10 467.05 463.85 463.0071 452.5024
1-Mar-10 467.05 468.11 465.85 455.2905
2-Mar-10 479.35 471.03 467.0643 458.2381
4-Mar-10 473.05 469.67 466.9429 459.6262
5-Mar-10 468.65 466.9 465.1714 460.8381
8-Mar-10 460.25 461.96 464.1786 461.631
9-Mar-10 453.2 459.37 461.8643 462.9762
10-Mar-10 454.65 458.27 460.7571 464.3643
11-Mar-10 460.1 459.28 461.5929 465.3286
12-Mar-10 463.15 463.54 463.3714 466.469
 64

15-Mar-10 465.3 467.15 465.7214 467.7429

16-Mar-10 474.5 469.06 467.4929 468.1714
17-Mar-10 472.7 469.84 467.4071 468.5452
18-Mar-10 469.65 468.68 468.5214 468.3857
19-Mar-10 467.05 467.97 469.3286 468.5262
22-Mar-10 459.5 467.62 468.5429 469.1643
23-Mar-10 470.95 467.49 468.9714 469.8905
24-Mar-10 470.95 469.22 470.5643 470.969
25-Mar-10 469 473.48 471.85 471.5857
26-Mar-10 475.7 474.5 474.05 471.7381
29-Mar-10 480.8 475.29 474.7714 471.5905
30-Mar-10 476.05 476.69 475.4929 471.3405
31-Mar-10 474.9 476.75 477.3571 470.3881
1-Apr-10 476 477 477.3286 469.3143
2-Apr-10 476 476.89 476.6214 468.1881
5-Apr-10 482.05 477.08 475.4143 467.0595
6-Apr-10 475.5 475.4 473.7571 466.619
7-Apr-10 475.85 472.86 471.4786 465.8095
9-Apr-10 467.6 468.46 469.2 465.0143
12-Apr-10 463.3 465.37 465.2643 463.8833
13-Apr-10 460.05 461.1 461.6429 462.5286
14-Apr-10 460.05 457.61 457.3786 460.3143
15-Apr-10 454.5 454.15 453.9143 458.4857
16-Apr-10 450.15 450.81 452.05 456.9714
19-Apr-10 446 448.85 451.1786 434.3048
20-Apr-10 443.35 448.74 450.35 0
21-Apr-10 450.25 449.56 449.0286 0
22-Apr-10 453.95 449.41 448.6143 0
23-Apr-10 454.25 450.19 446.9429 0
26-Apr-10 445.25 447 446.1286 0
27-Apr-10 447.25 443.74 445.1071 0
28-Apr-10 434.3 441.51 0 0
29-Apr-10 437.65 0 0 0
30-Apr-10 443.1 0 0 0
 65

CHART – 4.7
CHART SHOWING MOVING AVERAGE OF RANBAXY LABORATORIES
LIMITED

INFERENCE:

The above moving average chart of Ranbaxy Laboratories Limited shows that the investor sold
the stock in February they Got gain for Rs.9.9, the investor sold the stock in March they got gain for
Rs.7.85, the investor sold the Stock in April they got the loss for 32.9.
 66

TABLE – 4.8

TABLE SHOWING RELATIVE STRENGTH INDEX OF RANBAXY

LABORATORIES LIMITED

DATE CLOSING PRICE GAIN LOSS

1-Feb-10 457.15 0 0
2-Feb-10 440.9 0 16.25
3-Feb-10 438.75 0 2.15
4-Feb-10 426.3 0 12.45
5-Feb-10 404.85 0 21.45
8-Feb-10 401.7 0 3.15
9-Feb-10 405.55 3.85 0
10-Feb-10 408.8 3.25 0
11-Feb-10 415.95 7.15 0
12-Feb-10 415.95 0 0
15-Feb-10 410.8 0 5.15
16-Feb-10 440.5 29.7 0
17-Feb-10 441.6 1.1 0
18-Feb-10 442.85 1.25 0
19-Feb-10 442.7 0 0.15
22-Feb-10 441.8 0 0.9
23-Feb-10 448.75 6.95 0
24-Feb-10 451.75 3 0
25-Feb-10 454.05 2.3 0
26-Feb-10 467.05 13 0
1-Mar-10 467.05 0 0
2-Mar-10 479.35 12.3 0
4-Mar-10 473.05 0 6.3
5-Mar-10 468.65 0 4.4
8-Mar-10 460.25 0 8.4
9-Mar-10 453.2 0 7.05
10-Mar-10 454.65 1.45 0
 67

11-Mar-10 460.1 5.45 0

12-Mar-10 463.15 3.05 0
15-Mar-10 465.3 2.15 0
16-Mar-10 474.5 9.2 0
17-Mar-10 472.7 0 1.8
18-Mar-10 469.65 0 3.05
19-Mar-10 467.05 0 2.6
22-Mar-10 459.5 0 7.55
23-Mar-10 470.95 11.45 0
24-Mar-10 470.95 0 0
25-Mar-10 469 0 1.95
26-Mar-10 475.7 6.7 0
29-Mar-10 480.8 5.1 0
30-Mar-10 476.05 4.75 0
31-Mar-10 474.9 0 1.15
1-Apr-10 476 1.1 0
2-Apr-10 476 0 0
5-Apr-10 482.05 6.05 0
6-Apr-10 475.5 0 6.55
7-Apr-10 475.85 0.35 0
9-Apr-10 467.6 0 8.25
12-Apr-10 463.3 0 4.3
13-Apr-10 460.05 0 3.25
14-Apr-10 460.05 0 0
15-Apr-10 454.5 0 5.55
16-Apr-10 450.15 4.35 0
19-Apr-10 446 0 4.15
20-Apr-10 443.35 0 2.65
21-Apr-10 450.25 6.9 0
22-Apr-10 453.95 3.7 0
23-Apr-10 454.25 0.3 0
26-Apr-10 445.25 0 9
 68

27-Apr-10 447.25 2 0
28-Apr-10 434.3 0 12.95
29-Apr-10 437.65 3.35 0
30-Apr-10 443.1 5.45 0
TOTAL 157.9 162.55
N 30 27
TOTAL/N 5.56 6.02

RSI = 100 - (100/ (1+0.92)

= 100 – 52.08
=47.92
 69

CHART – 4.8

CHART SHOWING RELATIVE STRENGTH INDEX OF RANBAXY

LABORATORIES LIMITED

INFERENCE:

The above curve analyzes shows that the RSI of Ranbaxy industries is
48%, which is near to buy signal. In this period the investor can buy the stock.
 70

TABLE – 4.9

TABLE SHOWING RATE OF CHANGE OF RANBAXY LABORATORIES

LIMITED

DATE CLOSING PRICE ROC

1-Feb-10 457.15 0
2-Feb-10 440.9 0
3-Feb-10 438.75 0
4-Feb-10 426.3 0
5-Feb-10 404.85 0
8-Feb-10 401.7 0
9-Feb-10 405.55 0
10-Feb-10 408.8 89.4236
11-Feb-10 415.95 94.34112
12-Feb-10 415.95 94.80342
15-Feb-10 410.8 96.36406
16-Feb-10 440.5 108.8057
17-Feb-10 441.6 109.9328
18-Feb-10 442.85 109.1974
19-Feb-10 442.7 108.2926
22-Feb-10 441.8 106.2147
23-Feb-10 448.75 107.8856
24-Feb-10 451.75 109.9684
25-Feb-10 454.05 103.076
26-Feb-10 467.05 105.7631
1-Mar-10 467.05 105.4646
2-Mar-10 479.35 108.2787
4-Mar-10 473.05 107.0733
5-Mar-10 468.65 104.4345
8-Mar-10 460.25 101.8816
9-Mar-10 453.2 99.8128
10-Mar-10 454.65 97.34504
11-Mar-10 460.1 98.51194
 71

12-Mar-10 463.15 96.62042

15-Mar-10 465.3 98.3617
16-Mar-10 474.5 101.2483
17-Mar-10 472.7 102.7051
18-Mar-10 469.65 103.6297
19-Mar-10 467.05 102.7274
22-Mar-10 459.5 99.86959
23-Mar-10 470.95 101.6841
24-Mar-10 470.95 101.2143
25-Mar-10 469 98.84089
26-Mar-10 475.7 100.6347
29-Mar-10 480.8 102.3741
30-Mar-10 476.05 101.927
31-Mar-10 474.9 103.3515
1-Apr-10 476 101.0723
2-Apr-10 476 101.0723
5-Apr-10 482.05 102.7825
6-Apr-10 475.5 99.95796
7-Apr-10 475.85 98.97047
9-Apr-10 467.6 98.22498
12-Apr-10 463.3 97.55738
13-Apr-10 460.05 96.64916
14-Apr-10 460.05 96.64916
15-Apr-10 454.5 94.28483
16-Apr-10 450.15 94.66877
19-Apr-10 446 93.72701
20-Apr-10 443.35 94.81394
21-Apr-10 450.25 97.18325
22-Apr-10 453.95 98.67406
23-Apr-10 454.25 98.73927
26-Apr-10 445.25 97.9648
27-Apr-10 447.25 99.35577
 72

28-Apr-10 434.3 97.37668

29-Apr-10 437.65 98.71433
30-Apr-10 443.1 98.41199

CHART – 4.9

CHART SHOWING RATE OF CHANGE OF RANBAXY LABORATORIES

LIMITED

INFERENCE:
During February the price fluctuation of Ranbaxy Laboratories Limited is
between the high of Rs.482.05 and low of Rs.434.3. According to ROC method, the
changes fluctuated which is above high 100, that’s to be considered as sell signal.
Here, in this chart, it shows 101% of ROC. At this time the investor can sell this
stock.
 73

TABLE – 4.10
TABLE SHOWING MOVING AVERAGE OF BHARTHI AIRTEL LIMITED

DATE CLOSING 5 DAYS 7 DAYS 21 DAYS

PRICE

1-Feb-10 310.7 0 0 0
2-Feb-10 307.1 0 0 0
3-Feb-10 308.5 306.06 0 0
4-Feb-10 303.7 305.58 307.4857 0
5-Feb-10 300.3 306.92 308.1429 0
8-Feb-10 308.3 308.28 309.1857 0
9-Feb-10 313.8 310.42 305.8857 0
10-Feb-10 315.3 307.44 301.4214 0
11-Feb-10 314.4 300.27 298.3929 0
15-Feb-10 285.4 293.33 294.5071 0
16-Feb-10 272.45 286.49 289.4286 292.7857
17-Feb-10 279.1 279.26 283.9357 291.9476
18-Feb-10 281.1 277.55 278.9857 291.5405
19-Feb-10 278.25 279.01 277.6286 290.7643
22-Feb-10 276.85 278.37 278.1857 290.1762
23-Feb-10 279.75 277.42 278.2071 289.5976
24-Feb-10 275.9 277.62 279.5 288.9095
25-Feb-10 276.35 280.28 281.4429 288.2071
26-Feb-10 279.25 282.7 283.7643 287.4571
1-Mar-10 290.15 286.14 286.45 286.5214
2-Mar-10 291.85 290.58 288.7786 287.119
4-Mar-10 293.1 293.17 290.9214 288.431
5-Mar-10 298.55 293.41 292.1929 289.9905
8-Mar-10 292.2 292.67 292.7214 291.6667
9-Mar-10 291.35 292.82 293.75 293.0262
10-Mar-10 288.15 292.92 294.6714 294.7833
11-Mar-10 293.85 294.39 294.1286 296.231
12-Mar-10 299.05 295.07 294.95 297.8976
15-Mar-10 299.55 297.03 296.1857 299.5452
 74

16-Mar-10 294.75 298.26 299.5714 301.1

17-Mar-10 297.95 300.82 302.7786 301.6714
18-Mar-10 300 304.17 303.8857 302.8024
19-Mar-10 311.85 306.58 305.9143 303.8952
22-Mar-10 316.3 309.74 308.1143 304.9405
23-Mar-10 306.8 311.77 309.9643 305.9214
25-Mar-10 313.75 311.58 311.5286 306.7167
26-Mar-10 310.15 310.51 311.5357 307.6643
29-Mar-10 310.9 311.53 309.5143 308.3595
30-Mar-10 310.95 309.21 310.7714 308.7619
31-Mar-10 311.9 310.3 311.1 309.0143
1-Apr-10 302.15 311.33 312.5786 309.4714
5-Apr-10 315.6 313.24 312.85 309.8571
6-Apr-10 316.05 313.42 312.4357 310.0643
7-Apr-10 320.5 314.6 311.8857 309.7214
8-Apr-10 312.8 313.09 312.7857 309.0738
9-Apr-10 308.05 311.57 311.6286 308.6405
9-Apr-10 308.05 308.97 310.0286 307.8595
12-Apr-10 308.45 307.38 307.7214 307.2929
13-Apr-10 307.5 306.64 306.7571 306.5119
15-Apr-10 304.85 306.24 306.2286 305.8357
16-Apr-10 304.35 305.42 305.7429 305.1929
19-Apr-10 306.05 304.85 304.9214 0
20-Apr-10 304.35 304.42 303.5214 0
21-Apr-10 304.65 303.09 302.45 0
22-Apr-10 302.7 301.35 301.5786 0
23-Apr-10 297.7 300.13 299.9286 0
26-Apr-10 297.35 298.1 298.8429 0
27-Apr-10 298.25 296.91 297.95 0
28-Apr-10 294.5 297.05 0 0
29-Apr-10 296.75 0 0 0
30-Apr-10 298.4 0 0 0
 75

CHART – 4.10

CHART SHOWING MOVING AVERAGE OF BHARTHI AIRTEL LIMITED

 76

INFERENCE:

The above moving average chart of Bharti airtel shows that the investor sold the stock
in February they got loss for Rs.31.45, the investor sold the stock in March they got gain for
Rs.21.75, the investor sold the Stock in April they got the loss for 3.75.
 77

TABLE – 4.11

TABLE SHOWING RELATIVE STRENGTH INDEX OF BHARTHI AIRTEL

LIMITED

DATE CLOSING PRICE GAIN LOSS

1-Feb-10 310.7 0 0
2-Feb-10 307.1 0 3.6
3-Feb-10 308.5 1.4 0
4-Feb-10 303.7 0 4.8
5-Feb-10 300.3 0 3.4
8-Feb-10 308.3 8 0
9-Feb-10 313.8 5.5 0
10-Feb-10 315.3 1.5 0
11-Feb-10 314.4 0 0.9
15-Feb-10 285.4 0 29
16-Feb-10 272.45 0 12.95
17-Feb-10 279.1 6.65 0
18-Feb-10 281.1 2 0
19-Feb-10 278.25 0 2.85
22-Feb-10 276.85 0 1.4
23-Feb-10 279.75 2.9 0
24-Feb-10 275.9 0 3.85
25-Feb-10 276.35 0.45 0
26-Feb-10 279.25 2.9 0
1-Mar-10 290.15 10.9 0
2-Mar-10 291.85 1.7 0
4-Mar-10 293.1 1.25 0
5-Mar-10 298.55 5.45 0
8-Mar-10 292.2 0 6.35
9-Mar-10 291.35 0 0.85
10-Mar-10 288.15 0 3.2
11-Mar-10 293.85 5.7 0
 78

12-Mar-10 299.05 5.2 0

15-Mar-10 299.55 0.5 0
16-Mar-10 294.75 0 4.8
17-Mar-10 297.95 3.2 0
18-Mar-10 300 2.05 0
19-Mar-10 311.85 11.85 0
22-Mar-10 316.3 4.45 0
23-Mar-10 306.8 0 9.5
25-Mar-10 313.75 6.95 0
26-Mar-10 310.15 0 3.6
29-Mar-10 310.9 0 0.75
30-Mar-10 310.95 0.05 0
31-Mar-10 311.9 0.95 0
1-Apr-10 302.15 0 9.75
2-Apr-10 306.05 4.35 0
5-Apr-10 315.6 9.1 0
6-Apr-10 316.05 0.45 0
7-Apr-10 320.5 4.45 0
8-Apr-10 312.8 0 7.7
9-Apr-10 308.05 0 4.3
10-Apr-10 308.05 0 0
12-Apr-10 308.45 0.05 0
13-Apr-10 307.5 0 0.95
15-Apr-10 304.85 0 2.65
16-Apr-10 304.35 0 0.5
19-Apr-10 306.05 1.7 0
20-Apr-10 304.35 0 1.7
21-Apr-10 304.65 0.3 0
22-Apr-10 302.7 0 1.95
23-Apr-10 297.7 0 5
26-Apr-10 297.35 0 0.35
27-Apr-10 298.25 0.9 0
 79

28-Apr-10 294.5 0 3.75

29-Apr-10 296.75 2.25 0
30-Apr-10 298.4 1.65 0
TOTAL 115.05 130.4
N 33 27
TOTAL/N 3.54 4.83

RSI = 100 - (100/ (1+0.96)

= 100 – 51.01
=48.98

LOGIC 30 BUY
70 SELL
 80

CHART – 4.11

CHART SHOWING RELATIVE STRENGTH INDEX OF BHARTHI AIRTEL

LIMITED

INFERENCE:

The above curve analyzes shows that the RSI of Bharti airtel is 49%,
which is near to buy signal. In this period the investor can buy the stock.

TABLE – 4.12

TABLE SHOWING RATE OF CHANGE OF BHARTHI AIRTEL LIMITED

DATE CLOSING PRICE ROC

1-Feb-10 310.7 0
2-Feb-10 307.1 0
3-Feb-10 308.5 0
4-Feb-10 303.7 0
5-Feb-10 300.3 0
8-Feb-10 308.3 0
9-Feb-10 313.8 0
10-Feb-10 315.3 101.4805
 81

11-Feb-10 314.4 102.3771

15-Feb-10 285.4 92.51216
16-Feb-10 272.45 89.71024
17-Feb-10 279.1 92.94039
18-Feb-10 281.1 91.17742
19-Feb-10 278.25 88.67113
22-Feb-10 276.85 87.80526
23-Feb-10 279.75 88.97901
24-Feb-10 275.9 96.67134
25-Feb-10 276.35 101.4315
26-Feb-10 279.25 100.0537
1-Mar-10 290.15 103.2195
2-Mar-10 291.85 104.8877
4-Mar-10 293.1 105.8696
5-Mar-10 298.55 106.7203
8-Mar-10 292.2 105.9079
9-Mar-10 291.35 105.4279
10-Mar-10 288.15 103.1871
11-Mar-10 293.85 101.2752
12-Mar-10 299.05 102.467
15-Mar-10 299.55 102.2006
16-Mar-10 294.75 98.72718
17-Mar-10 297.95 101.9678
18-Mar-10 300 102.9689
19-Mar-10 311.85 108.2249
22-Mar-10 316.3 107.64
23-Mar-10 306.8 102.5915
25-Mar-10 313.75 104.7404
26-Mar-10 310.15 105.2248
29-Mar-10 310.9 104.3464
30-Mar-10 310.95 103.65
31-Mar-10 311.9 100.016
 82

1-Apr-10 302.15 95.5264

5-Apr-10 315.6 102.8683
6-Apr-10 316.05 100.7331
7-Apr-10 320.5 103.3371
8-Apr-10 312.8 100.6111
9-Apr-10 308.05 99.06737
9-Apr-10 308.05 98.76563
12-Apr-10 308.45 102.0851
13-Apr-10 307.5 97.43346
15-Apr-10 304.85 96.45626
16-Apr-10 304.35 94.961
19-Apr-10 306.05 97.84207
20-Apr-10 304.35 98.7989
21-Apr-10 304.65 98.89628
22-Apr-10 302.7 98.13584
23-Apr-10 297.7 96.81301
26-Apr-10 297.35 97.53977
27-Apr-10 298.25 97.99573
28-Apr-10 294.5 96.22611
29-Apr-10 296.75 97.50287
30-Apr-10 298.4 97.94847
 83

CHART – 4.12

CHART SHOWING RATE OF CHANGE OF BHARTHI AIRTEL LIMITED

INFERENCE:
During February the price fluctuation of Bharti Airtel is between the high
of Rs.316.05 and low of Rs.272.45. According to ROC method, the changes
fluctuated which is above high 100, that’s to be considered as sell signal. Here, in this
chart, it shows 100% of ROC. At this time the investor can sell this stock.
 84

TABLE – 4.13

TABLE SHOWING MOVING AVERAGE OF HINDUSTHAN

CONSTRUCTION COMPANY

DATE CLOSING 5 DAYS 7 DAYS 21 DAYS

PRICE

1-Feb-10 137.75 0 0 0
2-Feb-10 133.65 0 0 0
3-Feb-10 137.7 133.87 0 0
4-Feb-10 132.35 132.19 132.9857 0
5-Feb-10 127.9 131.9 132.4714 0
8-Feb-10 129.35 131.19 132.9286 0
9-Feb-10 132.2 132.09 132.8071 0
10-Feb-10 134.15 133.88 133.5929 0
11-Feb-10 136.85 135.58 134.6286 0
12-Feb-10 136.85 136.17 135.7929 0
15-Feb-10 137.85 136.84 136.5214 134.4762
16-Feb-10 135.15 136.93 136.1 134.531
17-Feb-10 137.5 135.8 135.4857 134.9595
18-Feb-10 137.3 134.74 135.0429 135.4286
19-Feb-10 131.2 134.46 134.7786 136.0929
22-Feb-10 132.55 134.16 134.9214 136.8452
23-Feb-10 133.75 133.93 134.4071 137.5
24-Feb-10 136 134.47 133.9214 138.0262
25-Feb-10 136.15 134.74 135.0214 138.4381
26-Feb-10 133.9 135.77 136.4643 138.5857
1-Mar-10 133.9 137.1 138.4357 138.869
2-Mar-10 138.9 139.38 139.9071 138.8929
4-Mar-10 142.65 141.86 140.9857 138.9976
5-Mar-10 147.55 143.82 142.3 138.9976
8-Mar-10 146.3 144.66 143.6357 138.8405
9-Mar-10 143.7 144.78 144.1929 139.1929
10-Mar-10 143.1 143.83 143.8071 139.481
 85

11-Mar-10 143.25 142.56 143.1286 139.5976

12-Mar-10 142.8 142.38 141.9929 139.5667
15-Mar-10 139.95 141.43 141.0857 139.4167
16-Mar-10 142.8 140.25 140.2857 139.3976
17-Mar-10 138.35 139.19 138.9643 139.4024
18-Mar-10 137.35 138 138.3643 139.2
19-Mar-10 137.5 137.16 138.1714 138.819
22-Apr-10 134 137.21 137.2286 138.4024
23-Mar-10 138.6 136.98 136.8 137.9619
24-Mar-10 138.6 136.55 136.1786 137.6476
25-Mar-10 136.2 136.35 135.6071 137.2833
26-Mar-10 135.35 135.33 135.6071 137.0381
29-Mar-10 133 134.41 135.0429 136.8286
30-Mar-10 133.5 134.1 134.4786 136.6952
31-Mar-10 134 133.96 134.85 136.4262
1-Apr-10 134.65 135.12 135.0929 136.2143
2-Apr-10 134.65 135.83 135.6786 136.0214
5-Apr-10 138.8 136.45 135.9571 135.719
6-Apr-10 137.05 136.61 136.5429 135.7286
7-Apr-10 137.1 137.3 137.0786 135.5119
8-Apr-10 135.45 137.22 137.4357 135.269
9-Apr-10 138.1 137.24 137.2 135.2119
12-Apr-10 138.4 137.25 136.75 135.1786
13-Apr-10 137.15 136.94 136.2071 135.2548
14-Apr-10 137.15 135.98 135.5929 135.1643
15-Apr-10 133.9 134.53 135.0357 134.9381
16-Apr-10 133.3 133.94 134.4143 134.7929
19-Apr-10 131.15 133.32 133.8929 0
20-Apr-10 134.2 133.24 133.5857 0
21-Apr-10 134.05 133.58 133.6929 0
22-Apr-10 133.5 134.28 133.8786 0
23-Apr-10 135 134.36 133.9429 0
26-Apr-10 134.65 133.87 133.2357 0
 86

27-Apr-10 134.6 133.02 132.8857 0

28-Apr-10 131.6 132.34 0 0
29-Apr-10 129.25 0 0 0
30-Apr-10 131.6 0 0 0

CHART – 4.13

CHART SHOWING MOVING AVERAGE OF HINDUSTHAN

CONSTRUCTION COMPANY
 87

INFERENCE:

The above moving average of Hindusthan Construction Company shows

that the investor sold the stock in February they got loss for Rs.3.85, the investor sold
the stock in March they got gain for Rs.0.1, the investor sold in April they got loss for
Rs.3.05.
 88

TABLE – 4.14

TABLE SHOWING RELATIVE STRENGTH INDEX OF HINDUSTHAN

CONSTRUCTION COMPANY

DATE CLOSING PRICE GAIN LOSS

1-Feb-10 137.75 0 0
2-Feb-10 133.65 0 4.1
3-Feb-10 137.7 4.05 0
4-Feb-10 132.35 0 5.35
5-Feb-10 127.9 0 4.45
8-Feb-10 129.35 1.45 0
9-Feb-10 132.2 2.85 0
10-Feb-10 134.15 1.95 0
11-Feb-10 136.85 2.7 0
12-Feb-10 136.85 0 0
15-Feb-10 137.85 1 0
16-Feb-10 135.15 0 2.7
17-Feb-10 137.5 2.35 0
18-Feb-10 137.3 0 0.2
19-Feb-10 131.2 0 6.1
22-Feb-10 132.55 1.35 0
23-Feb-10 133.75 1.2 0
24-Feb-10 136 2.25 0
25-Feb-10 136.15 0.15 0
26-Feb-10 133.9 0 2.25
1-Mar-10 133.9 0 0
2-Mar-10 138.9 5 0
4-Mar-10 142.65 3.75 0
5-Mar-10 147.55 4.9 0
8-Mar-10 146.3 0 1.25
9-Mar-10 143.7 0 2.6
10-Mar-10 143.1 0 0.6
 89

11-Mar-10 143.25 0.15 0

12-Mar-10 142.8 0 0.45
15-Mar-10 139.95 0 2.85
16-Mar-10 142.8 2.85 0
17-Mar-10 138.35 0 4.45
18-Mar-10 137.35 0 1
19-Mar-10 137.5 0.15 0
22-Apr-10 134 0 3.5
23-Mar-10 138.6 4.6 0
24-Mar-10 138.6 0 0
25-Mar-10 136.2 2.4 0
26-Mar-10 135.35 0 0.85
29-Mar-10 133 0 2.35
30-Mar-10 133.5 0.5 0
31-Mar-10 134 0.5 0
1-Apr-10 134.65 0.65 0
2-Apr-10 134.65 0 0
5-Apr-10 138.8 4.15 0
6-Apr-10 137.05 0 1.75
7-Apr-10 137.1 0.05 0
8-Apr-10 135.45 0 1.65
9-Apr-10 138.1 2.65 0
12-Apr-10 138.4 0.3 0
13-Apr-10 137.15 0 1.25
14-Apr-10 137.15 0 0
15-Apr-10 133.9 0 3.25
16-Apr-10 133.3 0 0.6
19-Apr-10 131.15 0 2.15
20-Apr-10 134.2 3.05 0
21-Apr-10 134.05 0 0.15
22-Apr-10 133.5 0 0.55
23-Apr-10 135 1.5 0
 90

26-Apr-10 134.65 0 0.35

27-Apr-10 134.6 0.05 0
28-Apr-10 131.6 0 3
29-Apr-10 129.25 0 2.35
30-Apr-10 131.6 2.35 0
TOTAL 58.5 58.5
N 30 29
TOTAL/N 2.03 2.09

RSI = 100 - (100/ (1+0.96)

= 100 – 51.01
=48.98

LOGIC 30 BUY
70 SELL
 91

CHART – 4.14

CHART SHOWING RELATIVE STRENGTH INDEX OF HINDUSTHAN

CONSTRUCTION COMPANY

INFERENCE:

The above curve analyzes shows that the RSI of Hindustan Construction
Company is 49%, which is near to buy signal. In this period the investor can buy the
stock.

TABLE – 4.15

TABLE SHOWING RATE OF CHANGE OF HINDUSTHAN

CONSTRUCTION COMPANY

DATE CLOSING PRICE ROC

1-Feb-10 137.75 0
2-Feb-10 133.65 0
3-Feb-10 137.7 0
4-Feb-10 132.35 0
5-Feb-10 127.9 0
8-Feb-10 129.35 0
9-Feb-10 132.2 0
 92

10-Feb-10 134.15 97.38657

11-Feb-10 136.85 102.3943
12-Feb-10 136.85 99.38272
15-Feb-10 137.85 104.1556
16-Feb-10 135.15 105.6685
17-Feb-10 137.5 106.3007
18-Feb-10 137.3 103.8578
19-Feb-10 131.2 97.80097
22-Feb-10 132.55 96.85787
23-Feb-10 133.75 97.73475
24-Feb-10 136 98.65796
25-Feb-10 136.15 100.7399
26-Feb-10 133.9 97.38182
1-Mar-10 133.9 97.52367
2-Mar-10 138.9 105.8689
4-Mar-10 142.65 107.6198
5-Mar-10 147.55 110.3178
8-Mar-10 146.3 107.5735
9-Mar-10 143.7 105.5454
10-Mar-10 143.1 106.8708
11-Mar-10 143.25 106.9828
12-Mar-10 142.8 102.8078
15-Mar-10 139.95 98.10726
16-Mar-10 142.8 96.78075
17-Mar-10 138.35 94.56596
18-Mar-10 137.35 95.58107
19-Mar-10 137.5 96.08665
22-Apr-10 134 93.54276
23-Mar-10 138.6 97.05882
24-Mar-10 138.6 99.03537
25-Mar-10 136.2 95.37815
26-Mar-10 135.35 97.83159
 93

29-Mar-10 133 96.83291

30-Mar-10 133.5 97.09091
31-Mar-10 134 100
1-Apr-10 134.65 97.15007
2-Apr-10 134.65 97.15007
5-Apr-10 138.8 101.909
6-Apr-10 137.05 101.256
7-Apr-10 137.1 103.0827
8-Apr-10 135.45 101.4607
9-Apr-10 138.1 103.0597
12-Apr-10 138.4 102.785
13-Apr-10 137.15 101.8567
14-Apr-10 137.15 98.81124
15-Apr-10 133.9 97.70157
16-Apr-10 133.3 97.2283
19-Apr-10 131.15 96.8254
20-Apr-10 134.2 97.17596
21-Apr-10 134.05 96.85694
22-Apr-10 133.5 97.33868
23-Apr-10 135 98.43237
26-Apr-10 134.65 100.5601
27-Apr-10 134.6 100.9752
28-Apr-10 131.6 100.3431
29-Apr-10 129.25 96.31148
30-Apr-10 131.6 98.17232
 94

CHART – 4.15

CHART SHOWING RATE OF CHANGE OF HINDUSTHAN

CONSTRUCTION COMPANY

INFERENCE:
During February the price fluctuation of Hindusthan Construction Company is
between the high of Rs.147.5 and low of Rs.129.25. According to ROC method, the
changes fluctuated which is above high 100, that’s to be considered as sell signal.
Here, in this chart, it shows 97% of ROC. At this time the investor can buy this stock.
 95

CHAPTER V

FINDINGS
 96

FINDINGS

The moving average of Reliance Industries shows that on February 2010 the
scrip goes downwards,

in March the scrip goes upwards and in April the scrip goes downwards.

The moving average of Axis bank shows that during February, March and
April 2010 the scrip goes upwards.

The moving average of Ranbaxy laboratories limited shows that on
February2010 the scrip goes upwards, in March the scrip goes upwards and in
April the scrip goes downwards.

The moving average of Bharti Airtel shows that on February 2010 the scrip
goes downwards,

in March the scrip goes upwards and in April the scrip goes downwards.

The moving average of Hindustan Construction Company shows that on
February 2010 the scrip goes downwards, in march the scrip goes upwards and
in April the scrip goes downwards.

The relative strength index of reliance industries shows buy signal.

The relative strength index of Axis bank shows sell signal.

The relative strength index of Ranbaxy laboratories limited shows buy signal.

The relative strength index of Bharti Airtel shows buy signal.

The relative strength index of Hindustan Construction Company shows buy

signal.

The rate of change of reliance industries shows that the investor can buy the
stock..

The rate of change of Axis bank shows that the investor can buy the stock.

The rate of change of Ranbaxy laboratories limited shows that the investor can
buy the stock.

The rate of change of Bharti Airtel shows that the investor can buy the stock.

The rate of change of Hindustan Construction Company shows that the

investor can buy the stock.
 97

SUGGESTIONS
 98

SUGGESTIONS

The company is suggested to send some email through which tips to trade
using technical analysis would be given. Company may also send email regarding the
trend reversals. The weekly review is given to the traders likewise an email with the
technical analysis research may also be sent to the investors. A special session may be
arranged for the investors or the traders can even tell simple interpretation where it
will be useful for at least placing stop loss.
Before making the investment decision investor should analyze about the
performance, profit level, dividend policy of the specific scrip. To obtain this
information fundamental analyses should be considered. If the risk is high and more
volatility in the market the investor can sell the stock.
The investors should analyze the technical analysis chart for making buying
and selling orders. Usually the market price of shares goes upward at the end of the
financial year so that the investor can make orders.
 99

CONCLUSION
 100

CONCLUSION

Many investors are aware about the technical analysis. And some of them
were using it for trading and they are willing to learn more about technical analysis.
Company may conduct more training session for the investors it will help them to
predict the market and find out where to enter and exit in the market. In this project
report nine companies technical charts were taken and interpreted which can be used
to find out where to enter and exit the market. So Technical analysis provide a
precaution for the investors which when followed correctly will avoid major loss. The
fundamental factors also play a major role in market movement. So, the investors can
also consider the fundamental factors while making investment decisions.
 101

BIBLIOGRAPHY
 102

BIBLIOGRAPHY

BOOKS:
 Punithavathy pandian, “Security Analysis and Portfolio Management”,
Vikas Publishing House, New Delhi, 3rd Edition, 2003.
 Preethi Singh, “Investment Management”, Himalaya Publishing House,
Mumbai, 14th Edition, 2006.
 Bhalla V.K, “Investment Management”, Sultan Chand & co., Ltd, New
Delhi, 2nd Edition, 1997.
 Natarajan Gordon, “Financial Markets and Services”, Himalaya
Publishing House, Mumbai, 15th Edition.
 Kothari.C.R, “Research Methodology Methods and Techniques”, New
Age International (P) Ltd., Publishers, New Delhi, 2nd 2007.

WEBSITES:
1. www.nseindia.com
2. www.bseindia.com
3. www. single window securities.com
4. www.moneycontrol.com
5. www.investopedia.com
6. www.yahoofinance.com
7. www.googlefinance.com