40069063 0601024 equity research fundamental and technical analysis and its impact on stock prices

8/11/2019 40069063 0601024 Equity Research Fundamental and Technical Analysis and Its Impact on Stock Prices

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A

PROJECT REPORT ON

Equity Research: Fundamental andTechnical analysis and its impact on stock

prices

FOR

BY

CHAUDHARI KAILAS NANABHAU

MBA-II

2006-2008

UNDER THE GUIDANCE OF

PROF. MAHESH HALALE

SUBMITED TO

UNIVERSITY OF PUNE

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR

THE AWARD OF DEGREE OF MASTER OF BUSINESS

ADMINISTRATION MBA!

THROUGH

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE - "8

1


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ACKNOWLEDGMENT

Its a great privilege that I have done my project in such a well-organized and

diversified organization. I am great full to all those who helped and supported me in

completing the project.

First of all I would sincerely like to thank M#. R$%&'( P. S)*$+$*& B#$*,(

M$*$ N$'/%!for his valuable guidance and kind co-operation during the project.

I am highly grateful ) M#. N$1$* B($*$#/ B3'/*&'' A''),/$&' )4 R&5/$*,&

)*&1!for the help provided by them in various forms.

I am also thankful to our director D#. S($#$ J)'(/ and my project guide P#)4.

M$(&'( H$5$5& for helping me in completing the project.

ast but not least! I am also thankful to all college staff and my friends for helping me

directly or indirectly in my project.

"


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TO WHOM SO EVER IT MAY CONCERN

#his is to certify that $r. %ailas &. 'haudhari is a bonafide student of our institute.

(e has successfully carried out his summer project 7 E3/1 R&'&$#,( 9

F3*$&*$5 $* T&,(*/,$5 $*$51'/' $* /' /:$, )* '),% :#/,&';titled at

R&5/$*,& M)*&1.#his is the original study of $r. %ailas &. 'haudhari and important

sources of data used by him have been acknowledged in his report .

#he report is submitted in partial fulfillment of two years full time course of $asters

in )usiness *dministration "++,-"++ as per rules.

P#)4. M#.M$(&'( H$5$5& D#. S($#$ L. J)'(/

P#)


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INTRODUCTION

0

S#.N). T):/, P$& N).= E>&,3/?& S3 =-@

2 C):$*1 P#)4/5& "-

@ O


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COMPANY PROFILE


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OBJECTIVE

AND

RATIONALE

,


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RESEARCH

METHODOLOGY

2


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DATA PRESENTATION


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DATA ANALYSIS

AND

INTERPRETATION

3


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FINDINGS

1+


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SUGGESTION

AND

CONCLUSION

11


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LIMITATION OF STUDY

1"


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BIBLIOGRAPHY

1/


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EECUTIVE SUMMARY

456I#7 *&*78I8 is the systematic study of the performance of companies in

stock market with help of fundamental analysis and technical analysis. 49uity

analysis consists of fundamental analysis : technical analysis. ;hile decision in

investment of shares should be base on actual movement of shares price measured

more in money : percentage term : nothing else.

In e9uity analysis! calculations are based on F*'#8 : not on (*#I< *&*78I8! 8#6?7 *=(. 49uity analysis does not discusshow to buy : sell shares! but does discuss the methods! which enables the investor to

arriving at buying : selling decision.

#he #echnical *pproach to investment is essentially a reflection of the idea that prices

moves in a trend that are determined by the changing attitude of investors toward a

variety of economic! monetary! political and psychological forces. #he art of technical

analysis! for it is an art! is to identify a trend reversal at a relatively early stage and

ride on that trend until the weight of the evidence shows or proves the trend has

reversed.

10


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INTRODUCTION TO BSE AND NSE

)ombay 8tock 4Achange imited is the oldest stock eAchange in *sia with a rich

heritage. =opularly known as B)84C! it was established as B #he &ative 8hare :

8tock )rokers *ssociation C in 12. It is the first stock eAchange in country to obtain

permanent recognition in 13, from the @overnment of India under the 8ecurities

'ontracts D>egulationE *ct! 13,. #he 4Achanges pivotal and pre-eminent role in the

development of the Indian capital market is widely recognized and its indeA!

84&84! is tracked worldwide. 4arlier an *ssociation of =ersons D*


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SENSE THE BAROMETER OF INDIAN CAPITAL MARKETS

For the premier 8tock 4Achange that pioneered the stock broking activity in Indian!

1" years of eAperience seems to be a proud milestone. * lot has changed since 12

when /1 persons became members of what today is called B#he 8tock 4Achange!

$umbaiC by paying a princely amount of >e1. #ill the decade of eighties! there was

no scale to measure the ups and downs in the Indian stock market. #he 8tock

4Achange! $umbai D)84E in 13, came out with a stock indeA that subse9uently

became the barometer of the Indian stock market.

First compiled in 13,! 84&84 is a basket of /+ constituent stocks representing a

sample of large! li9uid and representative companies. #he base year of 84&84 is

132-23 and the base value is 1++. #he indeA is widely reported in both domestic and

international markets through print as well as electronic media. #he entry and eAit of

any specific stock depends on the market capitalization of the top /+ companies in the

market and are from different sectors.

NATIONAL STOCK ECHANGE

#he &ational 8tock 4Achange D&84E is Indias leading stock eAchange covering

various cities and towns across the country. &84 was set up by leading institutions to

provide a modern! fully automated screen-based trading system with national reach.

#he 4Achange has brought about unparalleled transparency! speed : efficiency!

safety and market integrity. It has set up facilities and procedures.

&84 has played a catalytic role in reforming the Indian securities market in terms of

microstructure! market practices and trading volumes. #he market today uses state-of-

art information technology to provide an efficient and transparent trading! clearing

and settlement mechanism! and has witnessed several innovations in products :

services viz. demutualization of stock eAchange governance! screen based trading!

=rofessionalisation of trading members! fine-tuned risk management systems!

emergence of clearing corporations to assume counter party risks! market of debt and

derivative instruments and intensive use of information technology. I?)I : other

financial institution with paid e9uity capital of >s " cores set up &84. It started

operation in ;holesale debt market in Hune 1330 : in e9uity! in &ov 1330.

1,


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>eliance $oney is a subsidiary company of >eliance 'apital one of IndiaJs leading

and fastest growing private sector financial services company! ranking among the top

/ private sector financial services and banking companies! in terms of net worth.>eliance 'apital is a part of the >eliance A*/5 D(/#3($/ A$*/ @roup.

>eliance $oney is a comprehensive electronic transaction platform offering a wide

range of asset classes. Its endeavor is to change the way India transacts in financial

markets and avails financial services. >eliance $oney is a single window! enabling

you to access! amongst others in 49uities! 49uity : 'ommodities ?erivatives!

$utual Funds! I=< s! ife : @eneral Insurance products!

#$/* '?/,&'

A* /'#/3/)*

()3'& 4)# 4/*$*,/$5

:#)3,'

A* $''&

$*$&&*

,):$*1-45)$/*

43* )44' 4)# #&$/5

:$#/,/:$/)*

M&/,5$/ #$?&5

,$#& 5/: :5$*' 5/4&I*'3#$*,& ,$#

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R&5/$*,& C$:/$5 offers a comprehensive direct e9uities service for our private

clients! our services includeG

*n e9uity portfolio review and recommendation service

'omprehensive and short form research reports on *ustraliaJs leading

'ompanies! together with regular economic and market reviews

*ccess to floats and new issues

*ccess to International shares and detailed research information

*ccess to government bonds

'lients who may be looking for advice on not only stocks but also on hybrids!

warrants and options strategies


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OBJECTIVE

It was good opportunity to familiarize myself with the stock market i.e. the capital

market : their co-relation with economical environment through B EQUITY

RESEARCHC. #he analysis of e9uity gives me the opportunity to understandthoroughly this behavioral patterns of different e9uity : overall capital market.

#he main objective of the project research is as follows.

1. #o 8tudy the e9uity analysis and obtain the knowledge of e9uity market

". #o 8tudy the present behavior : predicting the future behavior of e9uity in

stock market.

/.


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RESEARCH METHODLOGY

?uring my project! I collected data through various sources primary : secondary.

P#/$#1 ')3#,& /*,53&' 9-

1E ?iscussion with branch manager

"E ?iscussion with eAperts

/E 5uestionnaires for investors

0E ive trading in the market

S&,)*$#1 ')3#,& /*,53&' 9-

1E Karious books related to stock market

"E )ooks related to Financial $anagement

/E ;eb sites were used as the vital information source.

>eliance $oney felt need of evaluating the price patterns of leading scripts

mainly from the five main blue chip companies and also interested in determining

the trends along with price performance in near future. #his e9uity analysis will

facilitate to investor for profitable investment.

"+


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EQUITY ANALYSIS

FUNDAMENTAL ANALYSIS

#he investor! while buying stock! has the primary purpose of gain. If he invests for a

short period of time! it is speculative but when he holds if for a fairly long

period of time! the anticipation is that he would receive some return on his

investment. #he fundamental analysis is a method of finding out the future

price of a stock! which an investor wishes to buy. #he method for forecasting

the future behavior of investment and the rate of return on them is clearly

through an analysis of the broad economic forces! industry analysis! the

company analysis and ration analysis.

A. I*453&*,& )4 (& &,)*)1 )* (& ,):$*1.

T(&'& $#& (& 4)55)+/* 4$,)#9 -

1. 4conomic @rowth

". =opulations/. $onsoons and *griculture =roduction

0. &atural resources and availability of raw material

. Industrial =roductions

,. Inflation2. Interest rate

. Foreign eAchange reserve

3. )alance of payment position1+. )udget deficits

11. =ublic debt and foreign debt

1". ?omestic saving and capital output rate1/. 4mployments

10. #aAation policies

1. Infrastructure facilities1,. @overnment policies

12. =olitical 8tability1. International developments

13. 'apital formations"+. 8aving pattern

"1. 4conomic indicators

"". Foreign direct investments"/. >upee-?ollar Fluctuation

"0. 8tock &ews

"1


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B. I*3'#/$5 A*$51'/'.

#he industry analysis should take in to account the following factors as

influence the performance of the company! whose share prices are to be

analyzed.

P#)3, L/*&.

It is also necessary to know the industries with a high growth potential like

computers! electronics! chemicals! diamonds! teAtiles etc. and whether the

industry is in the priority sector of the key industry group of capital goods or

consumers goods group.

R$+ M$/$5 $* I*:3'.

6nder these head! we have to look in to industries depending on imports of

scare raw materials! competition from other companies and industries and the

barriers to entry of new company! protection from foreign competition! import

and eAport restriction etc.

C$:$,/1 I*'$55& $* U/5/&.

#he demand for industrial product in the economy is estimated by the

planning commission and the @overnment! and the units are given licensed

capacity on the basis of these estimates.

I*3'#1 C($#$,/'/,'.

It included whether the industry is cyclical! fluctuating of stable. It is also

important industry produce seasonal product or F$'@. It also includeddemand of product freight charges! cost of production! advertisement cost!

skill of operation! profitability.

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D&$* $* M$#%&.

It includes demand of the product in the market and price of raw material and

other input cost like freight! electricity! season! monsoon! etc. if the nature of

product is such as drugs! fertilizer or other consumer goods! whose price and

distribution control by @overnment.

G)?*&* P)5/,1 +/( #&$# ) I*3'#1

@overnment =olicy is announced in the industrial policy resolution and

8ubse9uent announcement from time to time by the @overnment. #he =olicy

strategy as laid down in the five years plans according to planning

commission and eApected demand in the economy.

M$*$&&*.

If the promoters and the management are the efficient and capable of steering

the company through the difficult days such management likes #*#* :

)I>*! who have reputation! buildup their companies on the strong

foundation. #he management has to be assessed in the terms of their

capabilities! popularity! honesty and integrity.

"/


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TECHNICAL ANALYSIS

#he methods used to analyze securities and make investment decisions fall into two

very broad categoriesG F3*$&*$5 A*$51'/' $* T&,(*/,$5 A*$51'/'.Fundamental

analysis involves analyzing the characteristics of a company in order to estimate its

value. #echnical analysis takes a completely different approach it doesnt care one bit

about the B?$53&C of a company or a commodity. #echnicians Dsome time called

chartistsE are only interested in the price movement in the market.

?espite all the fancy and eAotic tools it employs! technical analysis really just studies

'3::51 $* &$*in a market in an attempt to determine what direction! or #&*!

will continue in the future. In other words! technical analysis attempts to understand

the emotions in the market by studying the market it self! as opposed to its

components. If you understand the benefits and limitation of technical analysis it can

give you a new set of tools or skills than will enable you to better trader or investor.

DEFINITION

#echnical analysis is a method of evaluating the securities by analyzing the statistics

generated by the market activity! such as past price and ?)53&.In technical analysis!

analysts use charts and other tools to identify :$*' that can suggest future

activity.

Hust as there are many investment styles on fundamental side! there is also much

different type of technical traders. 8ome rely on chart patterns. In any case! technical

analysts eAclusive use of historical price and volume data is what separates them from

their fundamental counterparts. 6nlike fundamental analysis technical analysts dont

care whether a stock is 3*?$53&the only thing that matter is a securitys past

trading data and what information this data can provide about where the security

might move in the future

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A''3:/)*'9

=. T(& M$#%& D/',)3*' E?(/*

* major criticism of technical analysis is that it only considers price movement!

ignoring the fundamental factors of the company. (owever! technical analysis

assumes that! at any given a time! a stocks price reflects everything that has or could

affect the company- including F3*$&*$5 F$,)#'. #echnical analysts believe that

the companys fundamentals! along with broader economic factors and $#%&

:'1,()5)1! are all priced into the stock! removing the need to actually consider these

factors separately.

#his only leaves the analysis of price movement! which technical theory views as a

product of supply and demand for a particular stock in the market.

2. P#/,& M)?&' I* T#&*'

In technical analysis! price movements are believed to follow trends. #his means that

after a trend has been established! the future price movement is more likely to be in

the same direction as the trend that to be against it. $ost technical trading strategies

are based on this assumption.

@. H/')#1 T&*' T) R&:&$ I'&54

*nother important idea in technical analysis is that history tends to repeat itself!

mainly in terms of price movement. #he repetitive nature of price movement is

attributed to market psychology in other words! market participants tend to provide a

consistent reaction to similar market stimuli over time. #echnical analysis uses chats

patterns to analyze market movements and understand trends. *lthough many of these

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charts have been use for more than 1++ years they are still believed to be relevant

because they illustrate patterns in price movements that often repeat themselves.

L/*& ,($#'

* style of charts that is created by connecting a series of data points together with a

line. #his is the most basic type of charts used in finance and connecting a series of

past prices together with a line generally creates it.

B$# ,($#

* style of chart used by some technical analysts! on whom as illustrated below! the

top of the vertical line indicates the highest price a security traded at during the day!and the bottom represents the lowest price. #he closing price is displayed on the right

side of the bar! and the opening price is shown on the left side of the bar. * single bar

like the one below represents one day of trading.

",


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#hese are the most popular type of chart used in technical analysis. #he visual

representation of price activity over a given period of time is used to spot trends and

patterns.

C$*5&'/,%

* price chart that displays the high! low! open and close for a security each day over a

specified period of time.

#here are many trading strategies based upon patterns in candlestick charting.

T&,(*/,$5 $*$51'/'9 (& 3'& )4 #&*


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It isnt hard to see that the trend in figure is up. (owever! isnt not always this easy to

see a trend.

#here are lots of ups and downs in this chart! but there isnt a clear indication of

which direction this security is headed.

T(& I:)#$*,& )4 T#&*

It is important to be able to understand and identify trends so that you can trade with

them rather than trade against them. #wo important sayings in technical analysis are B

"


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the trend is your friendC and B dont buck the trendC Illustrating how important trend

analysis is for technical trade.

T1:&' )4 T#&*

#here are three types of trendG

6p #rends

?owntrends

8idewaysL (orizontal #rends

*s the names imply! when each successive peak and trough is higher! its referred to

as an upward trend. If the peaks and troughs are getting lower. Its a downtrend.

;hen there is little movement up or down in the peaks and troughs! its a sideways or

horizontal trend. If you want to get really technical! you might even say that a

sideways trend is actually not a trend on its own! but a lack of a well-defined trend in

either direction. In any case! the market can really only trend in these three waysG up!

down or nowhere.

U:#&*

?escribes the price movement of a financial asset when the overall direction is

upward. * formal uptrend is when each successive peak and trough is higher than the

ones found earlier in the trend.

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&otice how each successive peak and trough is located above the previous ones. For

eAample! the peak at trend is higher than the peak at uptrend. #he uptrend will be

deemed broken if the neAt low on the chart falls below trend.

D)+*#&*

?escribes the price movement of a financial asset when the overall direction is

downtrend. * formal downtrend occurs when each successive peak and trough is

lower than the ones found earlier in the trend.

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&otice how each successive peak and trough is lower than the previous one. For

eAample! the low trend is lower than the low at =oint. #he downtrend will be deemed

broken once the price closes above the high at high direction trend.

?owntrend is the opposite of uptrend.

T#&* 5/*&'

* trend line is a simple charting techni9ue that adds a line to a chart to represent the

trend in the market or a stock. ?rawing a trend line is as simple as drawing a straightline that follows a general trend. #hese lines are used to clearly show the trend and

are also used in the identification of the reversals.

/1


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*s you see in above Figure! an upward trend lines is drawn at the lows of an upward

trend. #his line represents the support the stock has every time it moves from a high

to a low. &otice how the price is propped up by this support. #his type of trend line

helps traders to anticipate the point at which a stocks price will begin moving

upwards again. 8imilarly! a downward trend line is drawn at the highs of the

downward trend. #his line represents the resistance level that a stock faces every time

the price moves from a low to a high.

T#&* L&*('9

*long with this trend direction! there is three-trend classification. * trend of any

direction can be classified as a long-term trend! intermediate trend or a short-term. In

terms of the stock market! a major trend is generally categorized as one lasting longer

than a year. *n intermediate trend is considered to last between one and three months

and a near-term trend is anything less than a month. * long-term trend is composed of

several intermediate trends! which obtain move against the direction of the major

trend. If the major trend is upward and there is a downward correction in pricemovement followed by a continuation of the up trend! the correction is considered to

be an intermediate trend. #he short term trends are components both major and

intermediate trends. #ake a look a Figure to get a sense of how these three trends

lengths might look.

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;hen analyzing trends! it is important that the chart is constructed to best reflect the

type of trend being analyzed. #o help identify long-term trends! chartists to get a

better idea of the long-term trend use weekly charts or daily charts spanning a five-

year period. ?aily data charts are best use when analyzing both intermediate and

short-term trends. It is also important to remember that the longer the trend! the more

important it is for eAample! a month trend is not as significant as five-year trend.

C($**&5'

* 'hannel! or channel lines! is the addition of two parallel trend lines that act asstrong areas of support and resistance. #he upper trend line connects a series of highs!

while the lower trend line connects a series of lows. * channel can slope upward!

downward or sideways but regardless of the direction! the interpretation remains the

same. #raders will eApect a given security to trade between two levels of support and

resistance until it breaks beyond one of the levels in which case traders can eApect a

sharp move in ?irection of the break. *long with clearly displaying the trend! channel

is mainly used to illustrate important areas of support and resistance.

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*bove graph a descending channel on stock chart the upper trend line has been

placed on the highs and lower trend line is on the lows. #he price has bounced off of

these line several times! and has remained rang-bound for several months. *s long as

the price does not fall below the lower line or move beyond the upper resistance! the

range bound downtrend is eApected to continue.

D)35& B))

* charting pattern used in technical analysis. It describes the drop of a stock Dor

indeAE! a rebound! another drop to the same Dor similarE level as the original drop! and

finally another rebound.

/0


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D)35& T):

* term used in technical analysis to describe the rise of a stock! a drop! another rise to

the same level as the original rise! and finally another drop.

#he double top looks like the letter B$C. #he twice-touched high is considered a

resistance level.

T#/:5& B))

* pattern used in technical analysis to predict the reversal of a prolonged downtrend.

#he pattern is identified when the price of an asset creates three troughs at nearly the

same price level. #he third bounce off the support is an indication that buying interest

DdemandE is outweighing selling interest D8upplyE and that trend is in the process of

reversing.

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#he three consecutive tops make this pattern visually similar to the head and

shoulders pattern but! in this case! the middle peak is nearly e9ual to the other peak

rather than being higher. $any traders will enter into a short position once the price

of asset falls below the identified support level. D8hown by the line in the chart

aboveE.

H&$ $* S()35' P$*

* technical analysis term used to describe a chart formation in which a stocks priceG

1 >ises to a peak and subse9uently declines.

". #hen! the price rises above the former peak and again declines

/. *nd finally! rises again! but not to the second peak! and declines once

more.

#he First and #hird peaks are shoulders! and second peak forms the head.

#he B(ead -and M8houldersC pattern is believed to be one of the most reliable trend

reversal patterns.

/2


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V)53&

#he number of shares or contracts traded in a security or an entire market during a

given period of time. It is simply the amount of shares that trade hands from sellers to

buyers as a measure of activity. If a buyer of a stock purchases 1++ shares from a

seller! then the volume for that period increases by the 1++ shares based on that

transaction.

Kolume is an important indicator in the technical analysis as it is used to measure the

worth of a market move. If the market have made strong price move either up or

down the perceived strength of that move depends on the volume of that period. #he

higher the volume during that price move the more significant the move.

S3::)#

#he price! which! historically! a stock had difficulty falling below. It is thought of as

the level at which a lot of buyers tend to enter the stock.


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R&'/'$*,&

#he =rice at which a stock or market can trade! but which it cannot eAceed! for a

certain period of time. esistance evelC.

/3


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M)?/* A?$&- MA

*n indicator fre9uently used in technical analysis showing the average value of a

securitys price over a set of period. $oving averages are generally used to measure

momentum and define areas of possible support and resistance.

0+


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Infosys #echnologies td DInfosysE was incorporated on Huly "! 131! as a private ltd

company. It became public limited company. #o became public limited company on

Hune 133" and subse9uently the name was also changed to Infosys #echnologies td.

It was the first Indian company to be listed on *merican 8tock 4Achange. #he

company is one of Indias leading information technologies DI#E services companies.

4nterprise 8ervices! =roduct >:? services and 'onsulting 8ervices. #he company is

having its (ead9uarters in )anglore and has 12 offshore development facilities like

*erospace : ?efense! *utomotive! and )anking : 'apital $arkets. 'ommunication

8ervices! 4nergy! Insurance! (ealthcare! $edia! #ransportation 8ervices etc.! Infosys

#echnologies came out with an I=< in Feb. 133/ at a premium of >s 3 for a face

value of >s 1+ per share. 8ince then! it has issued three bonus issues Deach in the ratio

of 1G1E and split its face value of >s each. In Feb "+++! the *?>s were split in the

ratio of "G1. In "++0-+ the company has signed up 1/, new clients and had a total

client base of 0/ at the end of the year. #he companys product-FI&*'4! is an

integrated core banking solution that is centralized! muliti-currency and multi-

language-enabled! functionally rich! and addresses both retail and corporate banking

re9uirements. ?uring "++"! @


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Price Fluctuations of nfosys Tech

0"

INFOSYS TECHNOLOGIES LTD. INFOSYS!

T1:& A3/& A3/& A3/& A3/& A3/&

D$& )4 &/* =-A:#-0 =-J$*-0 =-O,-06 =-J35-06 =-A:#-06

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D&',#/:/)* V$53& R'./55/)*

N& S$5&' /1+ /+ /00+ /"2/+ ",2+

O( /*,)& "+ 1"++ ,++ ,,+ 1"3+

T)$5 /*,)& /+,+ /,2+ /10+ ///3+ "33,+

E>:&*/3#& -"01+ -"0+2+ -"/++ -""13+ -133/+

O:$/* P#)4/ 1",+ 1",+ 1"+3+ 11"++ 1++/+

G#)'' P#)4/ 1",+ 1",+ 1"+3+ 11"++ 1++/+

D&:#&,/$/)* -1/0+ -1//+ -1"3+ -11++ -32+

P#)4/ &4)#& T$> 11/1+ 11/+ 1+++ -1+1++ 3+,+

T$> -1+/+ -1"+ -1""+ -110+ -1+0+

P#)?/'/)* $*

C)'. -- 1+ -- -- -/+

P#)4/ $4 T$> 1+"+ 11"0+ 3+ 3,+ 233+

E>#$)#/*$#1

I&' -- - -- -- ,+N& P#)4/ 1+"+ 11"0+ 3+ 3,+ ++

E3/1 C$:/$5 ",+ ",+ "23+ "2+ 1/+

R&'?&' 113+0+ 1+2,+ 3/,/+ "2/+ 2,3++

EPS 1 13.3, 12." 1,.1 "3.1/

R&'35 T1:& 5 5 5 5 5


43/82

0/

D$& O:&* H/( L)+ C5)'&

1-Hun-+2 13// 13+ 13/" 13/3

0-Hun-+2 13+ 13,3 13+3 131,-Hun-+2 13"+ 13+ 13+ 130/

,-Hun-+2 1320 1320 13/+ 13/

2-Hun-+2 102 132" 102 132-Hun-+2 13+ 132 131" 131

11-Hun-+2 1320 133, 132+ 13+

1"-Hun-+2 13," 1333 13," 133+1/-Hun-+2 121 1333 121 133

10-Hun-+2 133 "+/1 133 "+13

1-Hun-+2 "+/+ "+/ "+++ "++3

1-Hun-+2 "+" "+"3 13, 13313-Hun-+2 133+ 1331 130" 132

"+-Hun-+2 13,, 1320 13+ 130

"1-Hun-+2 130 13,, 13/ 13""-Hun-+2 13, 13, 13/ 131

"-Hun-+2 131 13,/ 1313 13/2

",-Hun-+2 13/+ 130 13"+ 13"""2-Hun-+2 13/1 130, 13" 13/

"-Hun-+2 130+ 130 131/ 13"

"3-Hun-+2 13+ 132+ 13"+ 13"3

"-Hul-+2 1300 13 13"3 1300/-Hul-+2 13+ 13/ 13/ 1302

0-Hul-+2 13,1 13,1 13"" 13/1

-Hul-+2 13/1 130+ 131+ 1312,-Hul-+2 102 1322 102 132"

3-Hul-+2 133 "++3 13, 1330

1+-Hul-+2 133 "+0" 133 "+"111-Hul-+2 "+++ "+++ 13" 13/+

1"-Hul-+2 13+ 13,+ 131 13""

1/-Hul-+2 13/" 13 13"" 130+

1,-Hul-+2 130 13 13" 13/,12-Hul-+2 130+ 133 13/0 13/3

1-Hul-+2 1301 13 13/ 130

13-Hul-+2 130 "+++ 130, 1332"+-Hul-+2 "+++ "+13 1321 13,

"/-Hul-+2 1320 130 13/1 130

"0-Hul-+2 130 13+ 1301 132

"-Hul-+2 132, "+1+ 130 133",-Hul-+2 133 "++ 133 "+/0

"2-Hul-+2 "++1 "+1 13," "++/+-Hul-+2 "++ "+1+ 13,, 13,

/1-Hul-+2 133+ "+/ 13 132,


44/82

infosys

1700

1720

1740

1760

1780

1800

1820

1840

1860

1880

1900

1920

1940

1960

1980

2000

2020

2040

2060

2080

6/1/2007

6/6/2007

6/11/2007

6/16/2007

6/21/2007

6/26/2007

7/1/2007

7/6/2007

7/11/2007

7/16/2007

7/21/2007

7/26/2007

June & july 2007

Prices

Open

High

Low

Close

G#$:( N).=

T&,(*/,$5 $*$51'/' )4 I*4)'1' T&,(*)5)1 5.

From the chart of Infosys #echnology td we can say that script is having bullish

trend as it is breaking new highs! it may further go up.

00


45/82

F3*$&*$59 -

1. #here is a fluctuation in e9uity dividend. #here is no fiAed policy regarding

payment of dividend.

". R3:&& D)55$# F53,3$/)*- *s most of software companies in India having

their clients in the abroad! mostly in 68*. #here fore their earning is getting

from of dollar. If the dollar price decrease its affect their revenue badly and

recently dollar price has come down to 0+./ from 0".3rs! it will affect forth-

coming results! and currently fundamentally! it is not looking strong.

/. In India! salary of software professional will be increasing! and it will

marginally affect profit of companies and because of that! 4=8 will be come

down.

0. Infosys technology td. atio of the 'ompany is stable from last five years. It is a goodsign of consistency and smooth working of the company.

,. #he &et =rofit >atio is constant for last four years. It means company has

good Future.

0


46/82

R&5/$*,& I*3'#/&' L.

#he >eliance @roup! founded by ?hirubhai (. *mbani D13/"-"++"E! is IndiaJs largest

private sector enterprise! with businesses in the energy and materials value chain.

@roupJs annual revenues are in eAcess of 68? "" billion. #he flagship company!

>eliance Industries imited! is a Fortune @lobal ++ company and is the largest

private sector company in India

)ackward vertical integration has been the cornerstone of the evolution and growth of

>eliance. 8tarting with teAtiles in the late seventies! >eliance pursued a strategy of

backward vertical integration - in polyester! fiber intermediates! plastics!

petrochemicals! petroleum refining and oil and gas eAploration and production - to be

fully integrated along the materials and energy value chain. #he @roupJs activities

span eAploration and production of oil and gas! petroleum refining and marketing!

petrochemicals Dpolyester! fiber intermediates! plastics and chemicalsE! teAtiles and

retail. >eliance enjoys global leadership in its businesses! being the largest polyester

yarn and fiber producer in the world and among the top five to ten producers in the

world in major petrochemical products.

#he @roup eAports products in eAcess of 68? 2 billion to more than 1++ countries in

the world. #here are more than "!+++ employees on the rolls of @roup 'ompanies.

$ajor @roup 'ompanies are >eliance Industries imited Dincluding main subsidiaries

>eliance =etroleum imited and >eliance >etail imitedE! Indian =etrochemicals

'orporation imited and >eliance Industrial Infrastructure imited.

>eliance Industries D>IE! a petrochemical major is the flagship company of >eliance

@roup has business interests in teAtile! polyester! petrochemical! oil and gas and oil

refinery! polymer! chemical! *crylic and fiber Intermediates. >eliance is worlds

largest producer of polyester fiber : yarn. #he company is also worlds M / rdlargest

producer of paraAylene D=E! thlargest producer of $ono ethylene glycol D$4@E! , th

largest producer of =urified terephthalic *cid D=#*E : 2th largest producer of

0,


47/82

=olypropylene ==E. ;ithin the country! >eliance is the largest manufacturer of

=olyester Fiber : 7arn! =! =#* and $4@. #he market shares of the company are in

a leading position for all its major business in India. >I has grown into

petrochemical major since its modest. )eginning with the systematic fabric mill at

&aorda. #he company has set up teAt risingLtwisting facilities in 1323. Further the

company has set up facility at =atalganga! $aharashtra to produced =F7 in 13"!

=8F in 13,! and liner alkyl benzene D*)E and =#* in 13. #he company has set

up petrochemical facility to produced (?=4 and =K' at (azira at @ujarat in

technical collaboration with ?u=ont and )F @oodich respectively.

02


48/82

R&5/$*,& I*3'#/&' 5.

0


49/82

T1:& U*A3/& U*A3/& U*A3/& U*A3/& U*A3/&

D$& )4 &/* =-A:#-0 =-J$*-0 =-O,-06 =-J35-06 =-A:#-06

D$& )4 E* @0-J3*-0 @=-M$#-0 @=-D&,-06 @0-S&:-06 @0-J3*-06

D&',#/:/)* V$53& R'./55/)*

G#)'' S$5&' "303/+ "2/33+ "2221+ "3++ ",1,,+

E>,/'& D31 -10/2+ -1+0+ -1"33+ -1+2,+ -1,00+

N& S$5&' "+,+ "3+ ",02"+ "020+ "0""+

O( /*,)& 1++ + 0"+ ""+ 00+

T)$5 /*,)& "1,1+ "3++ ",10+ "03,+ "0,,+

E>:&*/3#& -""23+ -"113,+ -"12,/+ -"/3+3+ -"+"+

O:$/* P#)4/ ""+ 020+ 021+ 02+ 0"1+

I*&' -"+ -"22+ -"3/+ -"2+ -",,+

G#)'' P#)4/ 0330+ 0+2+ 00+ 0/+3+ 0+1+

D&:#&,/$/)* -3+ -1+""+ -1+,"+ -1+1+ -3+2+

P#)4/ &4)#& T$> 0+/,+ /0+ //3,+ /"3,+ /1++

T$> -22"+ -,/"+ -32+ -"+ -,1+

P#)4/ $4 T$> /",0+ "/+ "233+ "2+3+ "02+

N& P#)4/ /",0+ "/+ "233+ "2+3+ "02+

E3/1 C$:/$5 1/30+ 1/30+ 1/30+ 1/30+ 1/30+

EPS "/.0 "+. "+.1 13.0 1./

R&'35 T1:& 5 5 5 5 5

Price Fluctuations !hare of Reliance ndustriesD$& O:&* H/( L)+ C5)'&

1-Hun-+2 122/ 12+ 1202 121

03


50/82

0-Hun-+2 12,3 12,3 12/3 120"

-Hun-+2 12/3 121 12"" 120

,-Hun-+2 121 12 1," 1,31

2-Hun-+2 1,2/ 12+2 1,,+ 1,,3

-Hun-+2 1,,0 1,3 1,02 1,2

11-Hun-+2 1++ 1++ 1,,+ 1,,,1"-Hun-+2 1,2 121" 1,,/ 1,33

1/-Hun-+2 1,3 121+ 1,2+ 1,2

10-Hun-+2 1,, 12+/ 1, 1,3,

1-Hun-+2 12++ 121+ 1,, 1,"

1-Hun-+2 1,3 1,3 1,,2 1,2"

13-Hun-+2 1,2" 12/+ 1,2+ 12"2

"+-Hun-+2 12"2 1203 12"" 12//

"1-Hun-+2 12/ 120 12"1 12/0

""-Hun-+2 12/ 12/ 1,33 12+

"-Hun-+2 12+ 1210 1,32 12+3

",-Hun-+2 12+3 12"+ 12++ 12+/"2-Hun-+2 1,33 12"+ 1,3/ 1,33

"-Hun-+2 12+3 121 1,, 1,3"

"3-Hun-+2 12++ 1211 1,3 12+1

"-Hul-+2 12+0 121" 1,23 1,0

/-Hul-+2 1,2, 121/ 1,2, 12+2

0-Hul-+2 1211 12/" 12+3 121

-Hul-+2 121 12" 1,1 121+

,-Hul-+2 1210 12/1 1, 121+

3-Hul-+2 12+/ 1213 12+1 1211

1+-Hul-+2 121 121 1,3 12+/

11-Hul-+2 1212 1213 1,, 12+/

1"-Hul-+2 12+2 12" 12+2 1213

1/-Hul-+2 12/+ 1231 12", 122/

1,-Hul-+2 12+ 123 12,2 1222

12-Hul-+2 123 1/3 12+ 1"

1-Hul-+2 1/ 1/3 1+0 1"/

13-Hul-+2 1"/ 13+3 112 13/

"+-Hul-+2 133 131 11 13"

"/-Hul-+2 1+ 131 12 13+3

"0-Hul-+2 131" 13/1 13+ 131/

"-Hul-+2 13 131" 12 13+/",-Hul-+2 131+ 1303 13+, 130"

"2-Hul-+2 13"+ 13/, 1 1,

/+-Hul-+2 1 133 10+ 103

/1-Hul-+2 1, 13+" 1// 130

+


51/82

Reliance

164516551665167516851695170517151725173517451755176517751785

1795180518151825183518451855186518751885189519051915192519351945

19551965

01-Jun-0

7

07-Jun-0

7

13-Jun-0

7

19-Jun-0

7

25-Jun-0

7

29-Jun-0

7

05-Jul-0

7

11-Jul-0

7

17-Jul-0

7

23-Jul-0

7

27-Jul-0

7

June & July 2007

Prices

Open

High

Low

Close

G#$:( N).2

T&,(*/,$5 $*$51'/' )4 R&5/$*,& I*3'#19 -

#he chart of >eliance Industry is looking bullish and &o 'orrection is seen from the

last two months and stock is in full movement and candle sticks are showing positive

sign for long term investment.

F3*$&*$59 -

1


52/82

1. 4arning per share shows increasing trend from last four 5uarters! it means

profit generation capacity is increasing.

". 'ompany has announced good result for last 9uarter thats why it is

looking bullish.

/. >eliance has entered in >etail market they have already started

BRELIANCE FRESHC out lets

0. ;ith in a short span of siA years as an 4:= operator! the company has

discovered a hydrocarbons in the four offshore basin of India namely

%rishna! @odavari! $ahanadi! sourashtra and now cauvery! basin with

major commercial finds in deep water. #his discovery establishes the

company as a pioneer in the challenging deep-water eAploration.

"
http://www.abb.co.in/


53/82

#he 'ompany was incorporated on "0th ?ecember 1303 as (industan 4lectric

'ompany imited. In 13,! the 'ompanys name was changed to (industan )rown

)overi imited D())E. =ursuant to the 8cheme of *malgamation of *sea imited

with ()) with effect from 1st Hanuary 133! the name was further changed to *sea

)rown )overi imited D*))E with effect from 1/th s.++!+++!+++ and the paid-up

share capital of the 'ompany as at the end of the financial year ended /1st ?ecember

1333 is >s.010!1/!,+! consisting of 01!01!/, 49uity 8hares of the face value of

>s.1+ each.

S($#&()5/* P$*9

*sea )rown )overi imited! India! is a partly owned subsidiary of *)) *sea )rown

)overi imited! Purich! 8witzerland D*))P(E. *))P( and FlQkt *)! 8weden! a

1++ percent subsidiary of *))P(! hold +.33N of 49uity 8hares in the 'ompany.

#he balance stake is held byG FIs "".10N! FIIs /.,/N! $Fs "./"! &on-resident

Individual +.+N! &ationalised )anks +.1N! )odies 'orporate +.3/N!?irectors and

their relatives +.+1N! &8? D#ransitE 1.3N and @eneral =ublic 12.N.

ABB LTD.

/


54/82

T1:& U* $3/& A3/& U* $3/& U* $3/& U* $3/&

D$& )4 &/* 0==200 0==02006 =02006 =0"2006 0==2006

D$& )4 E* @=@200 @==22006 @02006 @062006 @=@2006

D&',#/:/)* V$53& R'./55/)*

N& S$5&' 1/1"0.00 10",/.1 1+2+., 320"."1 +"3.1/

O( /*,)& 11.,3 120.+, "/+.0 1".32 123.1

T)$5 /*,)& 1/"2,.1/ 100/2."" 1+3/, 33.12 "+.,/

E>:&*/3#& -110".,1 -1"/1,.0" -333.0 -2"".12 -2//0.,1

O:$/* P#)4/ 10//." "1"+. 1//,.1, 112/.+1 20.+/

I*&' -1+.+" -1.+3 -".02 -1.2 -1.30

G#)'' P#)4/ 10"/. "113.21 1///., 1121.", 2".+3

D&:#&,/$/)* -,.12 -21.1, -,,." -,."1 -,".+,

P#)4/ &4)#& T$> 1//2.// "+0. 1",2.0/ 11+,.+ 1+.+/

T$> -021 -,33 -00/ -/2 -"32

P#)4/ $4 T$> ,,.// 1/03. "1.0/ 213.+ 1/.+/

N& P#)4/ ,,.// 1/03. "1.0/ 213.+ 1/.+/

E3/1 C$:/$5 0"/." 0"/." 0"/." 0"/." 0"/."

EPS "+.00 /1.0 13./ 1,.32 1".11

R&'35 T1:& 5 5 5 5 5

Price Fluctuations !hares of "## Co$ %td

D$& O:&* H/( L)+ C5)'&

0


55/82

1-Hun-+2 0,"2 02 0,+/ 0,3

0-Hun-+2 02,3 02,3 0," 0,,,

-Hun-+2 0,+ 02+" 0,1+ 0,/1

,-Hun-+2 02,3 02,3 0++ 0232-Hun-+2 01+ 03 0+" 00

-Hun-+2 01+ 0,1 001 0/1

11-Hun-+2 02+ 03 0+ 0"+1"-Hun-+2 0"+ 023 002 0/2

1/-Hun-+2 0+1 0/ 0/2+ 00+

10-Hun-+2 0000 0++ 00"+ 001-Hun-+2 0" 00 002+ 01,

1-Hun-+2 00 0,, 0" 0,+/

13-Hun-+2 0," 0,0 03+ 0,11

"+-Hun-+2 0,33 0,33 0,"2 0,2"1-Hun-+2 0,,1 02+ 0,1 02"0

""-Hun-+2 02/+ 0223 02++ 02",

"-Hun-+2 02", 0++ 0,2, 02+1",-Hun-+2 0,2+ 013 0,2+ 023"

"2-Hun-+2 0++ 001 021 02,2

"-Hun-+2 3,+ 1+ 3+ 1+/,"3-Hun-+2 1++ 11++ 3 1+30

"-Hul-+2 11+0 110 1+30 1111

/-Hul-+2 1113 11/0 111, 11",

0-Hul-+2 11+ 11+ 11+ 11"1-Hul-+2 11/+ 11/+ 1+31 1111

,-Hul-+2 1+3+ 110" 1+3+ 11//

3-Hul-+2 11/2 11+ 11+3 1111+-Hul-+2 11" 11" 11+/ 11+2

11-Hul-+2 1+3+ 1112 1+/ 1+2

1"-Hul-+2 11++ 11" 1+3+ 11121/-Hul-+2 11/0 110 11"+ 11"

1,-Hul-+2 11/ 11/2 1+3 111/

12-Hul-+2 11"+ 11"+ 1+1 1+1-Hul-+2 1+ 1+3, 1+ 1+21

13-Hul-+2 1+,+ 1+ 1+,+ 1+2,

"+-Hul-+2 1+22 1+3 1+,2 1+2"

"/-Hul-+2 1+2, 1103 1+, 11/"0-Hul-+2 11, 112 11" 110

"-Hul-+2 11/1 110 1112 11/0

",-Hul-+2 1100 11+ 11"+ 11/""2-Hul-+2 11" 11" 1+1 1+23

/+-Hul-+2 1+,/ 1+33 1+0, 1+2+

/1-Hul-+2 1++ 11/ 1+2" 1102


56/82

ABB

9001050

1200135015001650180019502100225024002550270028503000315033003450360037503900405042004350450046504800

49505100

6/1/20

07

6/6/20

07

6/11/200

7

6/16/200

7

6/21

/200

7

6/26

/200

7

7/1/20

07

7/6/20

07

7/11/200

7

7/16/200

7

7/21

/200

7

7/26

/200

7

7/31

/200

7

For the Month of June & July 2007

Pr

ices

Open

High

LowClose

G#$:( N).@

T&,(*/,$5 $*$51'/' )4 ABB9 -

#he stock of *)) is in consolidation phase thats why its become unpredictable that

where it would be go. In 2thHuly "++2 in this period the company has declared record

date for stock spilt. Di.e. for every 1shareR sharesE. )ecause the record date was new

the stock went up for upward 0++ level Dupside at "++ pointsE : for this level it spilt

D0++LE R 3,+>s. : then went up again follow as it 0++ in case volatile in the stock.

,


57/82


58/82

arsen : #oubro imited D:#E is a technology-driven engineering and construction

organization! and one of the largest companies in IndiaJs private sector. It has

additional interests in manufacturing! services and Information #echnology. * strong!

customer-focused approach and the constant 9uest for top-class 9uality have enabled

the 'ompany to attain and sustain leadership in its major lines of business across

seven decades.

:# has an international presence! with a global spread of offices. * thrust on

international business over the last few years has seen overseas earnings growing to

1 per cent of total revenue. ;ith factories and offices located around the country!further supplemented by a wide marketing and distribution network! :#Js image

and e9uity eAtends to virtually every district of India.

:# believes that progress must necessarily be achieved in harmony with the

environment. * commitment to community welfare and environmental protection

constitute an integral part of the corporate vision.

H/')#1

#he evolution of :# into the countryJs largest engineering and construction

organizations is among the more remarkable success stories in Indian industry. #he

company was founded in )ombay D$umbaiE in 13/ by two ?anish engineers!

(enning (olck-arsen and 8oren %ristian #oubro - both of whom were strongly

committed to developing IndiaJs engineering talent and enabling it to meet the

demands of industry. )eginning with the import of machinery from 4urope! :#

rapidly took on engineering and construction assignments of increasing

sophistication. #oday! the company sets engineering benchmarks in terms of scale and

compleAity.
http://pop1%28%29/http://pop1%28%29/


59/82

LARSON AND TOUBRO LTD. L T!

T1:& U*$3/& A3/& U*$3/& U*$3/& U*$3/&

D$& )4 &/* 0="200 0==200 ==02006 =02006 0="2006

D$& )4 E* @06200 @=0@200 @==22006 @02006 @062006

D&',#/:/)* V$53& R'./55/)*

G#)'' S$5&' 02/.2 ,/,2.0 0133.1 /+0/ //1./

E>,/'& D31 -,,., -112 -1+.3 -,"./ -03./

N& S$5&' 0+".1 ,"0".0 0110." /2/,+.2 /02,3

O( /*,)& "110.2 "+01.0 1"23./ 1112./ 020./

T)$5 /*,)& 021,,. ,0"/. 0"0,/. /02 /"0/./

E>:&*/3#& -0+"1., -0/0 -/,3".3 -/032. -/"/".,

O:$/* P#)4/ ,/0." 1+1/3. /0., /033." "310.2

I*&' -12." -,/./ -1"." -1+,.1 -12.2

G#)'' P#)4/ ,1 1++2,. "".0 //3/.1 "22

D&:#&,/$/)* -0"0.1 -,3.1 -/,.2 -//,.0 -/+.3

P#)4/ &4)#& T$> 2,/.3 3/2.0 1,.2 /+,.2 "00.1

T$> -133.0 -"/2+.2 -12",.2 -1+00. -2,.

P#)4/ $4 T$> /2,. 2++2.2 /0/3 "+1"." 121./

N& P#)4/ /2,. 2++2.2 /0/3 "+1"." 121./

E3/1 C$:/$5 ,2., ,,. ,1.1 "+ "2./

EPS 1/./ "0.3 1"."2 10./3 11./2

R&'35 T1:& 5 5 5 5 5

Price Fluctuations of shares of %arson & Tou'ro %td$

3


60/82

D$& O:&* H/( L)+ C5)'&

1-Hun-+2 "++ "+" 13 "+++0-Hun-+2 "+" "+/+ 13,, 132"

-Hun-+2 1323 1323 13/2 130

,-Hun-+2 13" 133+ 131 13"1

2-Hun-+2 13+1 130+ 123 132-Hun-+2 13+1 13"+ 1, 1

11-Hun-+2 13++ 13"3 11 13"

1"-Hun-+2 13"2 13"3 11 13+21/-Hun-+2 131+ 13"1 1,+ 1,

10-Hun-+2 13, 13, 1+ 13"0

1-Hun-+2 13// 13,, 13/+ 1301-Hun-+2 1303 13,3 1313 13"2

13-Hun-+2 130" "++/ 13"0 133,

"+-Hun-+2 "++/ "+/ "++/ "+"2"1-Hun-+2 "++ "1+ "++ "1+

""-Hun-+2 "1+ "1" "+2 "1+

"-Hun-+2 "1+ "133 "+, "120

",-Hun-+2 "1+ "1+ "10" "1,+"2-Hun-+2 "1, "1, "1/ "100

"-Hun-+2 "102 "1,, "1"2 "10

"3-Hun-+2 "1,/ ""+2 "1,+ "13"-Hul-+2 ""/+ ""2 ""+2 ""/

/-Hul-+2 "", ""3 ""01 "",1

0-Hul-+2 ""/ "/"+ ""0 ""3/-Hul-+2 "/++ "/,0 "/++ "//1

,-Hul-+2 "// "/ "//+ "/,

3-Hul-+2 "/, "0" "/, "01,1+-Hul-+2 "0/ "0/ "/+ "/311-Hul-+2 "/23 "01 "/,/ "/1

1"-Hul-+2 "0++ "012 "/,2 "/2

1/-Hul-+2 "0++ "0+ "/3/ "0++1,-Hul-+2 "0++ "0/0 "/ "01

12-Hul-+2 "0/3 "0/3 "/2, "/3"

1-Hul-+2 "/3 "/3 ""3, "//+13-Hul-+2 "/01 "013 "// "/+

"+-Hul-+2 "01+ "++ "/3 "023

"/-Hul-+2 "0+ ",,3 "002 ","

"0-Hul-+2 ",3 "2/" ",12 ",2+"-Hul-+2 ",,, ",,, "0+ ",3

",-Hul-+2 "2+ ",/ "+, "0

"2-Hul-+2 "++ "/+ "0++ "0"+/+-Hul-+2 "0"+ "++ "/2+ "00/

/1-Hul-+2 "0,1 ",/+ "0,1 ",+

,+


61/82

LNT

1800

1850

1900

1950

2000

2050

2100

2150

2200

2250

2300

2350

2400

2450

2500

2550

2600

26502700

2750

2800

06-01-07

06-08-07

06-15-07

06-22-07

06-29-07

07-06-07

07-13-07

07-20-07

07-27-07

For the month of June & July 2007

Prices

Open

High

Low

Close

G#$:( N)."

T&,(*/,$5 A*$51'/'G #he chart of arson : #oubro is looking I saw how support and

resistance levels can be penetrated by a change in investor eApectations. #his type of

a change is often abrupt and Bnews basedC.In this section I will review BtrendsC. *

trend represents a consistent change in prices Di.e. a change in investor eApectationsE*s shown in the following chart! a rising trend is defined by successively

higher low prices. * rising trend can be thought of as a rising support level-the bulls

are in control and are pushing prices higher.

,1


62/82

F3*$&*$59 -

1. arsen : #oubro td D:#E has announced that the 'ompany has secured

two more ?esign and )uild contracts from ?elhi $etro >ailway

'orporation D?$>'E for the construction of the underground station at

8aket D?elhiE and a tunnel as part of its =hase II =roject.

". arsen : #oubro td has announced that the 'ompany has bagged an order

for >s. 3+ corers for the supply and installation of )last Furnace from #ata

8teel for its project in kalinganagar orissa.

/. arsen : #oubro td D:#E going to set up I# special economic zone with

*run 4Acello at vallancheri #amilnadu.

0. #he company currently has order book worth >s. 01,++ corers.

,"


63/82

#he origin of theS$& B$*% )4 I*/$ goes back to the first decade of the nineteenth

century with the establishment of the )ank of 'alcutta in 'alcutta on " Hune 1+,.

#hree years later the bank received its charter and was re-designed as the )ank of

)engal D" Hanuary 1+3E. * uni9ue institution! it was the first joint-stock bank of

)ritish India sponsored by the @overnment of )engal. #he )ank of )ombay D1 *pril

10+E and the )ank of $adras D1 Huly 10/E followed the )ank of )engal. #hese

three banks remained at the apeA of modern banking in India till their amalgamation

as the Imperial )ank of India on "2 Hanuary 13"1.

=rimarily *nglo-Indian creations! the three presidency banks came into eAistence

either as a result of the compulsions of imperial finance or by the felt needs of local

4uropean commerce and were not imposed from outside in an arbitrary manner to

modernize IndiaJs economy. #heir evolution was! however! shaped by ideas culled

from similar developments in 4urope and 4ngland! and was influenced by changes

occurring in the structure of both the local trading environment and those in the

relations of the Indian economy to the economy of 4urope and the global economic

framework.

F/#' F/?&-Y&$# P5$*

In 131! when the First Five 7ear =lan was launched! the development of rural India

was given the highest priority. #he commercial banks of the country including the

Imperial )ank of India had till then confined their operations to the urban sector and

were not e9uipped to respond to the emergent needs of economic regeneration of the

rural areas. In order! therefore! to serve the economy in general and the rural sector in

particular! the *ll India >ural 'redit 8urvey 'ommittee recommended the creation of

a state-partnered and state-sponsored bank by taking over the Imperial )ank of India!

and integrating with it! the former state-owned or state-associate banks. *n act was

accordingly passed in =arliament in $ay 13 and the 8tate )ank of India was

constituted on 1 Huly 13. $ore than a 9uarter of the resources of the Indian banking

system thus passed under the direct control of the 8tate. ater! the 8tate )ank of India

,/
http://www.statebankofindia.com/index.htm


64/82

D8ubsidiary )anksE *ct was passed in 133! enabling the 8tate )ank of India to take

over eight former 8tate-associated banks as its subsidiaries Dlater named *ssociatesE.

#he 8tate )ank of India was thus born with a new sense of social purpose aided by

the 0+ offices comprising branches! sub offices and three ocal (ead


65/82

STATE BANK OF INDIA

T1:& U*A3/& U*A3// U*A3/& U*A3/& U*A3/&

D$& )4 &/* =-A:#-0 =-J$*-0 =-O,-06 =-J35-06 =-A:#-06

D$& )4 E* @0-J3*-0 @=-M$#-0 @=-D&,-06 @0-S&:-06 @0-J3*-06

D&',#/:/)* V$53& R'./55/)*

O:$/* /*,)& 11/,.1 11010., 32/3.0 3/220.2 /,1.

I*&' )* $?$*,& 23." 2+,., ,01/. 3+12.1 0,2/.

I*,)& )* I*?&'&* "30/., "0"., "//1." "200 "30+".1

I*&' )* B$5$*,&' 032+., 1,"2+./ /"0. /33. /001."

O( I*'' ,.2 1",.1 1/,2.3 "+/. 00.2

O( I*,)& 0". "30/ 111+./ 10//2., 12,",

T)$5 I*,)& 1"""3+.3 100/2., 110,3.2 1+11"./ 1+32.

I*&' E>:$*& -,31." -2""1/./ -20,.1 -02." -03"+.,O:$/* E>:&*'&' -"32.1 -/"0,+." -"3+20 -"3.0 -"1+".0

P$1&* 4)# E:5)1&&' -"+",/.2 -"+"/. -"+"32.1 -1302.1 -13"0".3

O( O:$/*

E>:&*'&' -3"1.0 -1"""1.0 -22,.3 -3+1./ -3.

T)$5 E>:&*/3#& 4)#

B$*%' -3,2,./ -1+0,2/. -,3"+.1 -//,., -22,"/

O:$/* P#)4/ "/,10., /3,0.1 "03., "02".2 "/,0.

P#)4/ &4)#& $> "/,10., /3,0.1 "03., "02".2 "/,0.

T$> -22,". -1+,",./ -,"/2.1 -,+,2.0 -23.1

T$> :#)?/'/)*' $*,)*/*&*,/&' -13/.2 -101".3 -11,,1.3 -,1/.0 -1"13.2

P#)4/ $4 $> 10".1 103/1.3 1+,+., 1100.3 23.2

N& :#)4/ 10".1 103/1.3 1+,+., 1100.3 23.2

E3/1 C$:/$5 ",/ ",/ ",/ ",/ ",/

R&'?&' /++/,., /++/,., "21122.3 "21122.3 "21122.3

P,&* )4 '($#&'

G)?.)4 I*/$ 3.2/ -- -- -- --

C$:/$5 A&3$,1

R$/) /* 1/.1/ 1"./0 11., 1".,/ 11.32

EPS "2.+3 "./2 "+."0 "".1 1.12R&'35 T1:& 5 5 5 5 5

Price Fluctuations (f shares of !tate #ank (f ndia

D$& O:&* H/( L)+ C5)'&

1-Hun-+2 1/,0 1/ 1/, 1/23

,


66/82

0-Hun-+2 10++ 101 1/3+ 10+,

-Hun-+2 10++ 100 1/3/ 10/2

,-Hun-+2 100 100 1/1 1/3+2-Hun-+2 1/" 10+" 1// 1/,1

-Hun-+2 1//1 1/2 1/"1 1/2

11-Hun-+2 1/, 1/23 1//, 1/0+1"-Hun-+2 1/0 1/0 1/+, 1//"

1/-Hun-+2 1/" 1/// 1"+ 1"3+

10-Hun-+2 1/++ 1/", 1"3 1/101-Hun-+2 1/" 1/03 1/+2 1/"0

1-Hun-+2 1/0+ 1/0 1/1/ 1/13

13-Hun-+2 1/" 1/2 1/1/ 1/2""+-Hun-+2 1// 10/+ 1/2/ 10"0

"1-Hun-+2 10// 10, 10++ 1002

""-Hun-+2 100 102 100 10

"-Hun-+2 10,+ 10,+ 10/0 10+",-Hun-+2 10, 10,, 100/ 102

"2-Hun-+2 10 10, 10/ 1002

"-Hun-+2 10,+ 102 100 1021"3-Hun-+2 102" 1/" 102" 1",

"-Hul-+2 1/+ 11 1"/ 1/1

/-Hul-+2 10 13+ 10" 1"0-Hul-+2 133 1,"+ 1, 1,0

-Hul-+2 12 12 1/" 102

,-Hul-+2 1+ 1233 1"2 11

3-Hul-+2 1, 1+ 1/, 1211+-Hul-+2 12 1+ 10, 11

11-Hul-+2 10+ 12 11 101

1"-Hul-+2 10 1,3 10 131/-Hul-+2 1, 10 10 1,+

1,-Hul-+2 1,+ 1,1 10 1,1"

12-Hul-+2 1,1 1," 120 1/1-Hul-+2 13 13 1,+ 12,

13-Hul-+2 122 1,+ 122 13,

"+-Hul-+2 1,1+ 1,"+ 12, 10"/-Hul-+2 10 131 1,2 1

"0-Hul-+2 1,+ 1,+ 1,2 12,

"-Hul-+2 12+ 10 1/, 1,3

",-Hul-+2 12+ 12 10" 1"

"2-Hul-+2 1"+ 1" 102+ 1033/+-Hul-+2 1"0 1,1 11+ 12

/1-Hul-+2 1,"" 1,/, 10+ 1,"0

,,


67/82

B!

1200122512501275130013251350137514001425145014751500152515501575160016251650167517001725175017751800

18251850

6/1/2007

6/6/2007

6/11/2007

6/16/2007

6/21/2007

6/26/2007

7/1/2007

7/6/2007

7/11/2007

7/16/2007

7/21/2007

7/26/2007

7/31/2007

For the Month of June & July 2007

Prices

Open

High

Low

Close

G#$:( N).

T&,(*/,$5 $*$51'/' )4 S$& B$*% O4 I*/$9 -

#he chart of 8tate )ank


68/82

=. >)I has increased '>> by +. N. It may affect the performance of )ank

2. Interest rate hike.

@. 8tate )ank of India D8)IE has informed )84 that the )ank has decided to

revise interest rates on domestic term deposits rate with effect from *ugust +3!

"++2.

". @overnment of India also thinking about the merger of subsidiaries of 8tate

)ank of India with in it. It will make huge impact on 8)I stock.

,


69/82

RESEARCH STUDY OF INVESTOR.

1EW(& ) 1)3 /*?&' 1)3# )*&1

In the >eliance money! I have asked "++ people where you like invests your

money.I*?&'&* 1:&' N). )4 #&':)*&*' P,&*$&

8tock market 0+ "+

)ank F.? ,+ /+

>eal estate + 0+

$utual funds "+ 1+

#otal "++ 1++

T$5&. =

G#$:( 6

I*:#&$/)*9

From the above table : pie chart! it represent that people invest only "+ N of money

in 8tock market : 1+N in $utual Funds. 0+N of people generally interested in >eal

estate and )ank F.? /+N. )ecause the chances of risk and losses are minimum than

8tock $arket : $utual Funds. 4ven the returns are more in 8tock $arket : $utual

Funds! but due safety people prefer >eal estate and )and F.?.

,3


70/82

H)+ +/55 1)3 &,/& $ ,):$*1 4)# /*?&'&*

S&5&,/)* )4 ,):$*1 4)#

/*?&'&*

N). )4 R&':)*&*' P,&*$&

esearch >eports 0+ "+

"++ 1++T$5& 2

G#$:(

I*:#&$/)*9 From the above table : pie chart it represents that 0"N of people

take *dvice of )roker while investment in stocks! and "/N of people invest on the

basis of speculation! and "+N on basis of >esearch >eports by #echnical analyst and

1N invest on there own decision. )ut many eAperts feel that if people invest money

in stock market by >esearch >eport then chances of profit is high and losses are

minimum because >esearch >eport give good suggestion and already they have

calculated risk in stocks so it will be beneficial while investment. If investment on the

basis of speculation the chances of losses are high and profits minimum. If you do not

have! any knowledge of stock market so should ask to your )roker who will advice

you in better way because these people have good knowledge than us.

2+


71/82

2! W($ %/* )4 #$/* 1)3 )

T1:&' )4 T#$/* N). )4 R&':)*&* P,&*$&

Intra day , 0/

8hort term 00 ""

$edium #rading "" 11ong term #rading 0 "0

"++ 1++

T$5& @

G#$:( 8

I*:#&$/)*9 From the above @raph : =ie chart it represent that 0/N people

do intraday in which the profit and risk both are the high but many research

suggest that it is always better to investment of money in long term than short

term or medium term or intraday Di.e. speculationsE. If we invest money on long-

term basis then returns are good : the risk is minimum. #herefore! it is always

good invest money for long-term basis

21


72/82

2! W($ $#& (& 4$,)#' ) 1)3 ,)*'/ +(/5& '&5&,/)* )4 ,):$*1

F$,)# ,)*'/ 4)#

'&5&,/)* )4 ,):$*1

N). )4 R&':)*&*' P,&*$&

Fundamental *nalysis , 0/

#echnical *nalysis 00 ""

)oth "+ 1+

8peculation + "

"++ 1++T$5& "

G#$:(

I*:#&$/)*G From the above @raph : =ie chart it represent that 0/N of

people take the help of fundamental and ""N of people take the help of technical

analysis by which the risk can be calculated and profit can be maAimize.

(owever! even that "N of people invest on the basis of speculation! which is

risky. 1+N are people invest money by both Di.e. fundamentally and technicalE by

which prediction can be good. If people invest money on the basis of analysis

then the risk can be minimize and profit can be maAimize.

2"


73/82

@! W(& +/55 1)3 )' :#&4 ) /*?&' 1)3# )*&1

M)' :#&4 ,):$*/&' N). )4 R&':)*&*' P,&*$&

arge cap 1+ ".

$id cap 0+ "+

8mall cap "2.

"++ 1++T$5&

G#$:( =0

I*:#&$/)*G From the above @raph : table! we can say that +N percent of

people like to invest money in )lue 'hips companies because the volumes of trading

and good results are more. #herefore! the profit is more. $id cap and small! give

minimum profit than blue chips or large cap.

2/


74/82

"! W(/,( C):$*/&' '($#&' +/55 1)3 31

L/%& ) /*?&' /* '&,)#' N). )4 R&':)*&* P,&*$&

I.# 11+ N

)anking ,+ /+N4ngineering /+ 1N

"++ 1++

T$5& 6

G#$:( ==

I*:#&$/)*G From the above @raph : chart! we can say that N of people prefer

I.#. 8ector for investment because these companies are strong by fundamentally and it

have large market capitalization than others. *fter that! /+N of people prefer banking

sector it has large market capitalization and after that! 1N of people like to invest in

4ngineering companies.

20


75/82

F/*/*

=. I*4)'1'

;ith the reference to graph no.1! #echnical analysis of script interprets that! wait :

watch because script forms interprets that after correction comes in stock it gets well

supported level.

Fundamental analysis interprets that 4=8 is per share >s.13.3, in "++2

continues increasing last year. Infosys fundamental analysis interprets that

company gives e9uity dividend /++N this year.

It means that script is strong and investor should remain in stock for long

period. >eturns are very good. #he target price is >s."+0+.so there is an upside there!

the structure is positive but one needs to put a stop at around >s "+"+. =articular

stock has some news eg-result! entering into new business! merger with other

company! : on basis of that news the price goes up or down.

2. R&5/$*,& I*3'#/&'

;ith the reference to @raph no "! #echnical analysis of script interprets that! wait :

watch because script forms has always rising pattern over period. #he fundamental

analysis interprets that company gives e9uity dividend 1++N this year. 4=8 is

>s."+. per share.>eliance Industries shareholders : creditors approve 8cheme of

*malgamation. @ross =rofit : &et =rofit is also maintained. >eliance Industries

script is fundamentally strong. *n investor should buy in current rally for long period.

>eturns are very good. #he starter price >s 130 so there is a structure is positive a

stop at around >s. 123.

2


76/82

@. ABB

;ith the reference to @raph no /! #echnical analysis of script interprets that! wait :

watch because script forms 8tock 8plit.

*)) td. Fundamentally is shows that are much fluctuation in 4=8 is >s."+.00 per

share. 'ompany has decided the dividend but not declared.

Fundamental analysis suggests that it has a split stock that s why this stock is very

good for buy for delivery .Investor can buy a stock for long period of time the target

price is >s.1++.

". LT

;ith the reference to @raph no 0! #he technical analysis of the script interprets that

buy in up trend rally because of script has always rising pattern over period. : # in

this script I found that fundamental analysis that! company gives e9uity dividend

++N this year. 4=8 is >s."0.3 per share. 'ompany also offers the bonus share 1G1

per share in "++2.gross profit : net profit is consistent. 8cript is fundamentally

strong. =articular stock has some news e.g.-result! entering into new business! merger

with other company! : on basis of that news the price goes up or down.

. S$& B$*% )4 I*/$

;ith the reference to @raph no ! #echnical analysis of script interprets that! rising

pattern over period. 8tate )ank of India Fundamental analysis interprets that 4=8 is

improving 4=8 is >s.1/.1/ per 8hare. )ank also gives e9uity dividends 1+N this

year. =articular stock has some news e.g.-result! entering into new business! merger

with other company! : on basis of that news the price goes up or down.

2,


77/82

S3&'/)* C($#

S,#/: EPS D/?/&*' B)*3' R&'35 CMP T$#&

P#/,&

S):-

L)''

P#/,&I*4)'1' 13.3, /++N -- 8ale 132, "+0+ "+"+

R&5/$*,& "+. 1++N -- S (


78/82

. *s the largest bank in India 8)I is also very good for investment! 4=8 is also

increasing it will entering into new business and it will merger with other

banks D8tate )ank of 8ourashtraE on the basis of this price goes up or down.

,. 8hare market is growing sectors if people invest money in stocks the returns

will be good than )ank F.? : >eal 4state. =eople also should invest money

$utual Funds as per return concerns.

2. If people invest money on >esearch reports or broker advice then chances of

risk is low and chances of return will be high.

. It is always better to invest money on long term basis than intra day because

intraday is nothing but a speculation

3. If people consider both i.e. fundamental analysis and technical analysis then it

will be better than speculation

1+. 'urrently I# sector is in boom so it is better to invest money in I# and also

good in )anking sector

2


79/82

CONCLUSION

;ith the help of project I concluded that blue chip companies are playing very

important role in the share market. ot of investors is investing their money in the

blue chip companies. *nd this is the reason that the volume of blue chip companies is

high.

?uring this period of two months I came to know that in the process of e9uity

analysis of blue chip companies two weapons are playing a vital role i.e. Fundamental

*nalysis and #echnical *nalysis.

#he concept of Fundamental *nalysis studies the performance of blue chip

companies. ;ith the help of Fundamental *nalysis can know the past performance of

the blue chip companies. Fundamental *nalysis considers the long-term performance

of companies and this helps the investors to invest their money for long term as well

as can get the good returns.

#echnical *nalysis comprises short-term analysis of blue chip companies. #echnical

*nalysis really just studies supply and demand in the market in an attempt todetermine what direction or trend will continue in the future.

#he study of technical as well as fundamental analysis can give detail information

about the well running companies in the market. )efore investing in any company

one should study these two concepts.

23


80/82

LIMITATIONS OF STUDY

#o understand the overall working of share market! the period of ,+ days is

not enough.

$oreover! very few investor and agents have a detail knowledge of the study.

* study is conducted in &asik only! which restrict the scope of the study

#he data provided by the investor and the agents cant be held true as 1++N

correct.

#he study was conducted to understand with respect to fundamental and

technical analysis! which is a part of the e9uity share market.

+


81/82

A ) A*$51'/'

D$5$5 S#&&'

+++.'&/*/$.,)

+++.*'&/*/$.,)

+++.#&5/$*,&)*&1.,)

+++.)*&1,)*#)5.,)

1
http://www.bseindia.com/http://www.nseindia.com/http://www.reliancemoney.com/http://www.moneycontrol.com/http://www.bseindia.com/http://www.nseindia.com/http://www.reliancemoney.com/http://www.moneycontrol.com/


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40069063 0601024 equity research fundamental and technical analysis and its impact on stock prices

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