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INVESTMENT THROUGH TECHNICAL ANALYSIS

Name of Student: Deepesh SharmaRoll No: 108Faculty Mentor: Dr. Sharad Chaturvedi

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Industry Background & Company Profile

Bajaj Capital Limited is India's premier "Investment Services" Company

Bajaj Capital holds the Certificate of Registration to act as Merchant Banker (Cat-I), Underwriter, Stock Broker of BSE Limited

SENSEX and NIFTY are Index of BSE and NSE Blue chip share. SENSEX consist of 30 share and NIFTY 50 share

BSE is the world's 10th largest stock market with market capitalization of $1.7 trillion with 5174 companies listed as of 23 January 2015

NSE has a market capitalization of more than US$1.65 trillion, making it the world’s 12th-largest stock exchange

BSE is considered to be one of Asia’s fastest stock exchanges, with a speed of 200 microseconds

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 Project Objectives

To understand Technical Analysis and its role in equity market To analysis the impact of news in the movement of stocks Analysis of selected charts for developing a model for

investment

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Work Assigned/Project Methodology

Descriptive research Study of stocks charts and selection of stocks on basis of heat

map and study the selected stocks Analyze the stocks current movement and predict future

movements on basis of indicators, Japanese candlestick and chart formations

Study the impact of news of stocks and sectors Prepare a portfolio on basis of calls provided Study the role of indicators in technical analysis

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Project Observations/ Findings NIFTY was 8489, down by almost 5.8% but portfolio investment up by

8% Market fell by 400 points due to RBI announcement of se in interest by

25 basis points and news about 80% less monsoon There were total 33 call to buy but only 23 calls were accurate with and

accuracy of 69%. Nestle India share crashed, Maggie ban in different states. Ememi share price increased by almost 3%, acquisition of kesh king Bajaj auto and Bank share price fell, monsoon being less than expected. Market is a trade off between various market i.e. when equity market

booms commodity market declines etc.

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Project Objectives and Observations/Findings

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Recommendations to Company & Learnings

As warren buffet believes fundamental of companies but doesn’t believes in technical analysis, but studies proves that technical analysis can be used for short term movements in the market.

While studying the market with the help of technical analysis one has keep track of company’s news and economic news because news has a greater impact on the various market such as equity market.

To reduce the risk diversified portfolio should be adopted

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References

Books: Murphy, John J. "Inter-market Technical Analysis." New York (1991) Steve Nison “Japanese Candlestick charting techniques” (1991)Websites: http://www.bazaartrend.com/nsecharts/intraday-free.php http://economictimes.indiatimes.com/ www.icharts.in/jcharts.html