A STUDY ON TECHNICAL ANALYSIS At
? INDUSTRY OVERVIEW
? COMPANY PROFILE….
Babasabpatilf!!ppt"ba.#$"
1
A STUDY ON TECHNICAL ANALYSIS At
INDUSTRY OVERVIEW
A st$#% "a%!t is a private or public market for the trading of company stock
and derivatives of company stock at an agreed price; both of these are securities
listed on a stock exchange as well as those only traded privately.
Definition:
The expression stock market refers to the market that enables the trading of
company stocks !collective shares"# other securities# and derivatives. $onds are
still traditionally traded in an informal# over%the%counter market known as the
bond market. &ommodities are traded in commodities markets# and derivatives
are traded in a variety of markets !but# like bonds# mostly over%the%counter".
Ma%!t pati#ipa&ts'
'any years ago# worldwide# buyers and sellers were individual investors# such as
wealthy businessmen# with long family histories to particular corporations. (ver
time# markets have become more )institutionali*ed); buyers and sellers are largely
institutions !e.g.# pension funds# insurance companies# mutual funds# hedge funds#
investor groups# and banks".
The rise of the institutional investor has brought with it some improvements in
market operations. Thus# the government was responsible for )fixed) fees being
markedly reduced for the small investor# but only after the large institutions had
managed to break the brokers solid front on fees !they then went to negotiated
fees# but only for large institutions".
Babasabpatilf!!ppt"ba.#$"
+
A STUDY ON TECHNICAL ANALYSIS At
I"p$ta&#! $f st$#% "a%!t'
(. F)&#ti$& a&* p)p$s!'
The st$#% "a%!t is one of the most important sources for companies to raise
money. This allows businesses to go public# or raise additional capital for
expansion. The li,uidity that an exchange provides affords investors the ability to
,uickly and easily sell securities. This is an attractive feature of investing in
stocks# compared to other less li,uid investments such as real estate.
+. R!lati$& $f t,! st$#% "a%!t t$ t,! "$*!& fi&a&#ial s-st!"'
The financial system in most western countries has undergone a remarkable
transformation. (ne feature of this development is disintermediation. A portion of
the funds involved in saving and financing flows directly to the financial markets
instead of being routed via banks traditional lending and deposit operations. The
general publics heightened interest in investing in the stock market# either
directly or through mutual funds# has been an important component of this
process. -tatistics show that in recent decades shares have made up an
increasingly large proportion of households financial assets in many countries.
.. The -tock 'arket# individual investors / financial risk:
0iskier long%term saving re,uires that an individual possess the ability to manage
the associated increased risks. -tock prices fluctuate widely# in marked contrast to
the stability of bank deposits or bonds. This is something that could affect not
only the individual investor or household# but also the economy on a large scale.
This is certainly more important now that so many newcomers have entered the
stock market# or have ac,uired other risky investments.
Babasabpatilf!!ppt"ba.#$"
.
A STUDY ON TECHNICAL ANALYSIS At
Iati$&al b!,a.i$'
-ometimes the market tends to react irrationally to economic news# even if that
news has no real effect on the technical value of securities itself. Therefore# the
stock market can be swayed tremendously in either direction by press releases#
rumors# euphoria and mass panic. (ver the short%term# stocks and other securities
can be battered or buoyed by any number of fast market%changing events# making
the stock market difficult to predict.
1. The &rashes:
A stock market crash is often defined as a sharp dip in share prices of e,uities
listed on the stock exchanges. 2n parallel with various economic factors# a reason
for stock market crashes is also due to panic. (ften# stock market crashes end up
with speculative economic bubbles.
St$#% "a%!t i&*!/'
The movements of the prices in a market or section of a market are captured in
price indices called stock market indices# of which there are many# e.g.# the -/3#
the 4T-5 and the 5uronext indices. -uch indices are usually market capitali*ation
!the total market value of floating capital of the company" weighted# with the
weights reflecting the contribution of the stock to the index. The constituents of
the index are reviewed fre,uently to include6exclude stocks in order to reflect the
changing business environment.
Babasabpatilf!!ppt"ba.#$"
1
A STUDY ON TECHNICAL ANALYSIS At
D!i.ati.! i&st)"!&ts'
4inancial innovation has brought many new financial instruments whose pay%offs
or values depend on the prices of stocks. -ome examples are exchange%traded
funds !5T4s"# stock index and stock options# e,uity swaps# single%stock futures#
and stock index futures. These last two may be traded on futures exchanges
!which are distinct from stock exchanges7their history traces back to
commodities futures exchanges"# or traded over%the%counter. As all of these
products are only derived from stocks# they are sometimes considered to be traded
in a !hypothetical" derivatives market# rather than the !hypothetical" stock market.
L!.!a0!* Stat!0i!s'
-tock that a trader does not actually own may be traded using short selling;
margin buying may be used to purchase stock with borrowed funds; or#
derivatives may be used to control large blocks of stocks for a much smaller
amount of money than would be re,uired by outright purchase or sale.
(. S,$t s!lli&0'
2n short selling# the trader borrows stock !usually from his brokerage which holds
its clients shares or its own shares on account to lend to short sellers" then sells it
on the market# hoping for the price to fall. The trader eventually buys back the
stock# making money if the price fell in the meantime or losing money if it rose.
5xiting a short position by buying back the stock is called )covering a short
position.) This strategy may also be used by unscrupulous traders to artificially
lower the price of a stock. 8ence most markets either prevent short selling or
place restrictions on when and how a short sale can occur.
Babasabpatilf!!ppt"ba.#$"
9
A STUDY ON TECHNICAL ANALYSIS At
+. Ma0i& b)-i&0'
2n margin buying# the trader borrows money !at interest" to buy a stock and hopes
for it to rise. 'ost industriali*ed countries have regulations that re,uire that if the
borrowing is based on collateral from other stocks the trader owns outright# it can
be a maximum of a certain percentage of those other stocks value. A margin call
is made if the total value of the investors account cannot support the loss of the
trade. 0egulation of margin re,uirements !by the 4ederal 0eserve" was
implemented after the &rash of 1:+:. $efore that# speculators typically only
needed to put up as little as 1; percent !or even less" of the total investment
represented by the stocks purchased.
N!1 iss)a&#!'
? increase over the =.>: billion raised in +;;.. 2nitial public
offerings !23(s" by @- issuers increased ++1? with +.. offerings that raised =19
billion# and 23(s in 5urope# 'iddle 5ast and Africa !5'5A" increased by ...?#
from = : billion to =.: billion.
I&.!st"!&t stat!0i!s'
(ne of the many things people always want to know about the stock market is#
)8ow do 2 make money investingA) There are many different approaches; two
basic methods are classified as either f)&*a"!&tal a&al-sis $ t!#,&i#al
a&al-sis. 4undamental analysis refers to analy*ing companies by their financial
statements found in -5& 4ilings# business trends# general economic conditions#
etc. T!#,&i#al a&al-sis studies price actions in markets through the use of charts
and ,uantitative techni,ues to attempt to forecast price trends regardless of the
companys financial prospects.
Babasabpatilf!!ppt"ba.#$"
B
A STUDY ON TECHNICAL ANALYSIS At
Ta/ati$&'
According to each national or state legislation# a large array of fiscal obligations
must be respected regarding capital gains# and taxes are charged by the state over
the transactions# dividends and capital gains on the stock market# in particular in
the stock exchanges. 8owever# these fiscal obligations may vary from Curisdiction
to Curisdiction because# among other reasons# it could be assumed that taxation is
already incorporated into the stock price through the different taxes companies
pay to the state# or that tax free stock market operations are useful to boost
economic growth.
Babasabpatilf!!ppt"ba.#$"
D
A STUDY ON TECHNICAL ANALYSIS At
COMPANY PROFILE
S,a!%,a& is the retail brokering arm of --E2; --E2 is -- Eantilal 2shwarlal
-ecurities 3vt. Ftd. 2t is an organi*ation with more than eight decades of trust and
credibility in the stock market.
As the punch line of the company says itGs a guide to the financial Cungle it has its
many group of companies carrying on financial activities.
S,a!%,a& H 0etail broking brand
-harekhan is the retail broking arm of --E2 group. -harekhan has successfully
transformed into a full fledge retail brand of --E2. 2t is a one stop shop for all
kind of trading activities related to share and other recent happenings like
derivative market and evolved commodity market in 2ndia.
S,a!%,a&.#$"
Babasabpatilf!!ppt"ba.#$"
>
A STUDY ON TECHNICAL ANALYSIS At
-harekhan.com is the answer for the highly volatile stock market in 2ndia.
As the market has grown leaps and bounces in the recent year. -5$2 !-ecurities /
5xchange $oard of 2ndia" has made Demat Account mandatory for trading in any
of the stock exchanges. -hare khan along with banks in 2ndia has fund transfer
facility with many of these banks.
The online form of trading is carried on through -harkhan.com. 2t allows the
clients to access the website to know about the latest news in the market and the
impact it has on the various scrips. --E2 is in the 2ndian securities business since
1:++. -hare khan is serving 2nstitutional 2nvestors HDomestic 62nternational. The
institutional 0esearch team is rated as one of the best in industry -harekhan has
been rated as among Top . domestic brokerage and rated as one of the most
aggressive in the industry.
SS2I 3$)p C$"pa&i!s
? --E2 2nvestor -ervices Ftd. !S,a!%,a&"
? -.-. Eantilal 2shwarlal -ecurities.
? --E2 &orporate 4inance.
Visi$&'
To be the best retail broking brand in the Indian Equities
market.
Babasabpatilf!!ppt"ba.#$"
:
A STUDY ON TECHNICAL ANALYSIS At
Missi$&'
To educate and empower the individual investor to
make better investment decisions through quality
advice and superior service.
T,! S,a!%,a& Wa- $f Lif!'
? 3eople driven relationships
? th century# which
evolved into the use of candlestick techni,ues# and is today a main charting tool.
'any more technical tools and theories have been developed and enhanced in
recent decades# with an increasing emphasis on computer%assisted techni,ues.
Pi&#ipl!s $f t!#,&i#al a&al-sis
Technicians say that a markets price reflects all relevant information# so their
analysis looks more at )internals) than at )externals) such as news events. 3rice
action also tends to repeat itself because investors collectively tend toward
patterned behavior %% hence technicians focus on identifiable trends and
conditions.
Ma%!t a#ti$& *is#$)&ts !.!-t,i&0
(n most of the si*able return days the information that the press cites as the cause
of the market move is not particularly important. 3ress reports on adCacent days
also fail to reveal any convincing accounts of why future profits or discount rates
might have changed. (ur inability to identify the fundamental shocks that
accounted for these significant market moves is difficult to reconcile with the
view that such shocks account for most of the variation in stock returns.
Pi#!s "$.! i& t!&*s
Technical analysts believe that prices trend. Technicians say that markets trend up#
down# or sideways !flat". An example of a security that had an apparent trend is
A(F from Kovember +;;1 through August +;;+. A technical analyst or trend
Babasabpatilf!!ppt"ba.#$"
+1
A STUDY ON TECHNICAL ANALYSIS At
follower recogni*ing this trend would look for opportunities to sell this security.
A(F consistently moves downward in price. 5ach time the stock rose# sellers
would enter the market and sell the stock; hence the )*ig%*ag) movement in the
price. 2n other words# each time the stock edged lower# it fell below its previous
relative low price.
Hist$- t!&*s t$ !p!at its!lf
Technical analysts believe that investors collectively repeat the behavior of the
investors that preceded them. Technical analysis is not limited to charting# yet is
always concerned with price trends. 4or example# many technicians monitor
surveys of investor sentiment.. Technicians use these surveys to help determine
whether a trend will continue or if a reversal could develop; they are most likely
to anticipate a change when the surveys report extreme investor sentiment.
R)l!6bas!* ta*i&0
0ule%based trading is an approach to make ones trading plans by strict and clear%
cut rules. @nlike some other technical methods or most fundamental analysis# it
defines a set of rules that determines all trades# leaving minimal discretion. 4or
instance# a trader might make a set of rules stating that he will take a long position
whenever the price of a particular instrument closes above its 9;%day moving
average# and shorting it whenever it drops below.
C$"bi&i&0 T!#,&i#al A&al-sis 1it, $t,! Ma%!t F$!#ast M!t,$*s
Mohn 'urphy in his book )Technical Analysis of the 4inancial 'arkets)# says that
the principal sources of information available to technicians are price# volume and
open interest. (ther data# such as indicators and sentiment analysis are considered
secondary. Technical analysis is also often combined with ,uantitative analysis
Babasabpatilf!!ppt"ba.#$"
+9
A STUDY ON TECHNICAL ANALYSIS At
and economics. 4or example# neural networks may be used to help identify
intermarket relationships. A few market forecasters combine financial astrology
with technical analysis.
C,ati&0 t!"s a&* i&*i#at$s
Nidely%known technical analysis concepts include:
• $reakout % when a price passes through and stays above an area of support
or resistance
• &ommodity &hannel 2ndex % identifies cyclical trends
• 'omentum % the rate of price change
• 'oving average % lags behind the price action
• 0elative -trength 2ndex !0-2" % oscillator showing price strength
• 0esistance % an area that brings on increased selling
Babasabpatilf!!ppt"ba.#$"
+B
A STUDY ON TECHNICAL ANALYSIS At
Babasabpatilf!!ppt"ba.#$"
+D
A STUDY ON TECHNICAL ANALYSIS At
METHODOLO3Y'
The data collected for the research purpose are secondary data. &losing prices of
scrips were collected through Kational -tock 5xchange website. The data
employed in this study comprises of one year observations on the &ement -ector
companiesG &losing price. Daily data are preferred in this study. The choice of
daily closing price is realistic and helpful to calculate and testing the results in
technical analysis.
-tatistical Tools @sed:
1. Day 'oving Average.
+. 0elative strength index.
.. 0ate of change method.
(. Da- M$.i&0 A.!a0!'
Day 'oving averages are one of the most popular and easy to use tools available
to the technical analyst. They smooth a data series and make it easier to spot
trends# something that is especially helpful in volatile markets. They also form the
building blocks for many other technical indicators and overlays.
The two most popular types of moving averages:
• Daily 'oving Average 7SMA8 and
• 5xponential moving Average 7EMA8.
2n this study day moving average has taken.
4or example: a 9%day simple moving average is calculated by adding the closing
prices for the last 9 days and dividing the total by 9.
(9 : (( : (+ : (; : (< = >9
>9 ? @ = (+.
Babasabpatilf!!ppt"ba.#$"
+>
A STUDY ON TECHNICAL ANALYSIS At
The calculation is repeated for each price bar on the chart. The averages are then
Coined to form a smooth curving line % the "$.i&0 average line. &ontinuing our
example# if the next closing price in the average is 19# then this new period would
be added and the oldest day# which is 1;# would be dropped. The new 9%day
simple moving average would be calculated as follows:
(( : (+ : (; : (< : (@ =>@
>@ ? @ = (;
H$1 a! M$.i&0 A.!a0!s Us!*'
The primary purpose of moving averages is to )smooth) data so that trends are
more discernable. They are used to construct market indicators and to assist in
interpretation of price charts.
'oving average crossovers can also be used as signals to buy and sell. This is
normally done in two ways:
!1" $y watching for price to cross whatever moving average you may be using# or
!+" 0unning two moving averages of the same price or index# one faster than the
other#
and buying or selling when the faster average crosses the slower.
The weakness of moving average buy and sell systems is that they will most
likely become unprofitable when the stock or index begins moving sideways in a
narrow trading range. @nder these circumstances price never moves above or
below the average far enough to become profitable.
Babasabpatilf!!ppt"ba.#$"
+:
A STUDY ON TECHNICAL ANALYSIS At
+. R!lati.! st!&0t, i&*!/'
The 0elative -trength 2ndex !0-2" is an extremely useful and popular momentum
oscillator. The 0-2 compares the magnitude of a stocks recent gains to the
magnitude of its recent losses and turns that information into a number that ranges
from ; to 1;;. 2t takes a single parameter# the number of time periods to use in the
calculation.
Cal#)lati$&'
0-2 V 1;; H 1;; 6 !1W0-"
Average gain V !Total gains 6 n"
Average loss V !Total loss 6 n"
0elative -trength V Average gain 6 Average loss
0elative -trength 2ndex V 1;; H 1;; 6 !1W 0-"
K V number of 0-2 periods.
To simplify the formula# the 0-2 has been broken down into its basic components
which are the Average
A STUDY ON TECHNICAL ANALYSIS At
14-Ju-07 2!425.80 62.20 62.20 32.77 30.68 1.07 51.65
15-Ju-07 2!391.40 -34.40 34.40 48.83 31.42 1.55 60.84
18-Ju-07 2!376.20 -15.20 15.20 48.83 28.51 1.71 63.13
19-Ju-07 2!434.20 58.00 58.00 51.88 27.70 1.87 65.19
20-Ju-07 2!511.45 77.25 77.25 58.23 23.10 2.52 71.60
21-Ju-07 2!507.80 -3.65 3.65 65.82 18.24 3.61 78.30
22-Ju-07 2!497.50 -10.30 10.30 65.82 15.89 4.14 80.55
25-Ju-07 2!465.00 -32.50 32.50 67.63 19.21 3.52 77.88
26-Ju-07 2!496.95 31.95 31.95 55.73 15.41 3.62 78.34
27-Ju-07 2!503.10 6.15 6.15 43.34 15.48 2.80 73.68
28-Ju-07 2!626.15 123.05 123.05 59.60 15.48 3.85 79.38
29-Ju-07 2!636.00 9.85 9.85 42.75 15.48 2.76 73.41
2-Jul-07 2!620.75 -15.25 15.25 42.75 19.35 2.21 68.84
3-Jul-07 2!701.75 81.00 81.00 50.40 23.88 2.11 67.86
4-Jul-07 2!739.30 37.55 37.55 48.26 15.25 3.16 75.99
5-Jul-07 2!748.35 9.05 9.05 44.44 15.25 2.91 74.45
6-Jul-07 2!771.95 23.60 23.60 47.35 15.25 3.10 75.64
9-Jul-07 2!758.50 -13.45 13.45 32.21 14.35 2.24 69.18
10-Jul-07 2!727.00 -31.50 31.50 37.80 20.07 1.88 65.32
11-Jul-07 2!823.35 96.35 96.35 49.51 22.47 2.20 68.78
12-Jul-07 2!819.25 -4.10 4.10 41.64 16.35 2.55 71.80
13-Jul-07 2!874.40 55.15 55.15 46.04 16.35 2.82 73.79
16-Jul-07 2!894.25 19.85 19.85 48.74 16.35 2.98 74.88
17-Jul-07 2!853.95 -40.30 40.30 57.12 22.34 2.56 71.89
18-Jul-07 2!897.65 43.70 43.70 53.76 25.30 2.13 68.00
19-Jul-07 2!999.40 101.75 101.75 63.36 22.20 2.85 74.05
20-Jul-07 3!002.80 3.40 3.40 44.77 22.20 2.02 66.85
23-Jul-07 3!032.45 29.65 29.65 42.25 40.30 1.05 51.18
24-Jul-07 3!028.00 -4.45 4.45 39.67 22.38 1.77 63.94
25-Jul-07 2!966.90 -61.10 61.10 44.63 35.28 1.26 55.85
26-Jul-07 2!962.85 -4.05 4.05 44.63 23.20 1.92 65.79
27-Jul-07 2!861.60 -101.25 101.25 44.93 42.71 1.05 51.27
30-Jul-07 2!945.35 83.75 83.75 38.93 42.71 0.91 47.69
31-Jul-07 2!957.05 11.70 11.70 41.70 42.71 0.98 49.40
1-Au"-07 2!845.75 -111.30 111.30 47.73 56.43 0.85 45.82
2-Au"-07 2!901.65 55.90 55.90 50.45 69.43 0.73 42.09
3-Au"-07 2!962.95 61.30 61.30 53.16 72.20 0.74 42.41
6-Au"-07 2!897.95 -65.00 65.00 53.16 92.52 0.57 36.49
7-Au"-07 2!921.25 23.30 23.30 47.19 88.15 0.54 34.87
8-Au"-07 2!988.80 67.55 67.55 43.95 88.15 0.50 33.27
9-Au"-07 2!916.25 -72.55 72.55 52.01 82.95 0.63 38.54
10-Au"-07 2!874.30 -41.95 41.95 52.01 59.83 0.87 46.50
13-Au"-07 2!938.25 63.95 63.95 54.03 59.83 0.90 47.45
14-Au"-07 2!881.15 -57.10 57.10 51.60 59.15 0.87 46.59
16-Au"-07 2!790.65 -90.50 90.50 51.60 65.53 0.79 44.06
17-Au"-07 2!747.30 -43.35 43.35 65.75 61.09 1.08 51.84
20-Au"-07 2!777.95 30.65 30.65 47.30 61.09 0.77 43.64
Babasabpatilf!!ppt"ba.#$"
D:
A STUDY ON TECHNICAL ANALYSIS At
21-Au"-07 2!726.35 -51.60 51.60 47.30 56.90 0.83 45.39
22-Au"-07 2!727.80 1.45 1.45 32.02 60.64 0.53 34.56
23-Au"-07 2!751.20 23.40 23.40 18.50 60.64 0.31 23.38
24-Au"-07 2!771.60 20.40 20.40 18.97 61.82 0.31 23.49
27-Au"-07 2!829.00 57.40 57.40 26.66 47.47 0.56 35.96
28-Au"-07 2!856.35 27.35 27.35 26.77 51.60 0.52 34.16
29-Au"-07 2!911.50 55.15 55.15 30.86 51.60 0.60 37.42
30-Au"-07 2!953.10 41.60 41.60 32.39 0.00 0.00 0.00
31-Au"-07 2!946.95 -6.15 6.15 37.55 6.15 6.11 85.93
3-#ep-07 2!933.70 -13.25 13.25 40.38 9.70 4.16 80.63
4-#ep-07 3!021.05 87.35 87.35 53.77 9.70 5.54 84.72
5-#ep-07 3!055.80 34.75 34.75 49.24 9.70 5.08 83.54
6-#ep-07 3!176.35 120.55 120.55 67.88 9.70 7.00 87.50
7-#ep-07 3!179.00 2.65 2.65 57.38 9.70 5.92 85.54
10-#ep-07 3!207.80 28.80 28.80 54.82 9.70 5.65 84.97
11-#ep-07 3!212.75 4.95 4.95 46.51 13.25 3.51 77.83
12-#ep-07 3!199.45 -13.30 13.30 46.51 13.30 3.50 77.76
13-#ep-07 3!264.10 64.65 64.65 42.73 13.30 3.21 76.26
14-#ep-07 3!227.65 -36.45 36.45 44.32 24.88 1.78 64.05
17-#ep-07 3!216.30 -11.35 11.35 25.26 20.37 1.24 55.36
18-#ep-07 3!257.20 40.90 40.90 34.82 20.37 1.71 63.10
19-#ep-07 3!329.50 72.30 72.30 45.70 20.37 2.24 69.17
20-#ep-07 3!377.55 48.05 48.05 56.48 20.37 2.77 73.50
21-#ep-07 3!444.60 67.05 67.05 58.59 23.90 2.45 71.03
24-#ep-07 3!425.65 -18.95 18.95 57.07 22.25 2.57 71.95
25-#ep-07 3!439.25 13.60 13.60 48.38 15.15 3.19 76.15
26-#ep-07 3!427.55 -11.70 11.70 48.38 15.32 3.16 75.94
27-#ep-07 3!438.95 11.40 11.40 42.48 15.32 2.77 73.49
28-#ep-07 3!511.05 72.10 72.10 42.44 15.32 2.77 73.47
1-$ct-07 3!602.35 91.30 91.30 51.09 15.32 3.33 76.93
3-$ct-07 3!654.95 52.60 52.60 48.20 15.32 3.15 75.88
4-$ct-07 3!593.95 -61.00 61.00 48.20 36.35 1.33 57.01
5-$ct-07 3!552.55 -41.40 41.40 56.85 38.03 1.49 59.92
8-$ct-07 3!421.65 -130.90 130.90 56.85 77.77 0.73 42.23
9-$ct-07 3!604.40 182.75 182.75 99.69 77.77 1.28 56.18
10-$ct-07 3!652.45 48.05 48.05 93.67 77.77 1.20 54.64
11-$ct-07 3!818.75 166.30 166.30 112.43 77.77 1.45 59.11
12-$ct-07 3!741.80 -76.95 76.95 132.37 77.56 1.71 63.05
15-$ct-07 3!811.30 69.50 69.50 116.65 83.08 1.40 58.40
16-$ct-07 3!758.90 -52.40 52.40 116.65 86.75 1.34 57.35
17-$ct-07 3!704.55 -54.35 54.35 116.65 61.23 1.91 65.58
18-$ct-07 3!586.75 -117.80 117.80 94.62 75.38 1.26 55.66
19-$ct-07 3!510.55 -76.20 76.20 117.90 75.54 1.56 60.95
22-$ct-07 3!500.55 -10.00 10.00 69.50 64.62 1.08 51.82
23-$ct-07 3!695.05 194.50 194.50 132.00 62.15 2.12 67.99
24-$ct-07 3!649.95 -45.10 45.10 194.50 59.31 3.28 76.63
25-$ct-07 3!716.50 66.55 66.55 130.53 60.69 2.15 68.26
Babasabpatilf!!ppt"ba.#$"
>;
A STUDY ON TECHNICAL ANALYSIS At
26-$ct-07 3!779.10 62.60 62.60 107.88 62.28 1.73 63.40
29-$ct-07 3!805.70 26.60 26.60 87.56 43.77 2.00 66.67
30-$ct-07 3!738.05 -67.65 67.65 87.56 40.92 2.14 68.15
31-$ct-07 3!708.75 -29.30 29.30 87.56 47.35 1.85 64.90
1-%o&-07 3!664.70 -44.05 44.05 51.92 46.53 1.12 52.74
2-%o&-07 3!730.40 65.70 65.70 55.36 47.00 1.18 54.08
5-%o&-07 3!709.25 -21.15 21.15 51.63 40.54 1.27 56.02
6-%o&-07 3!648.60 -60.65 60.65 46.15 44.56 1.04 50.88
7-%o&-07 3!610.60 -38.00 38.00 65.70 43.47 1.51 60.18
8-%o&-07 3!556.80 -53.80 53.80 65.70 41.16 1.60 61.48
9-%o&-07 3!507.95 -48.85 48.85 65.70 44.42 1.48 59.66
12-%o&-07 3!531.80 23.85 23.85 44.78 44.49 1.01 50.16
13-%o&-07 3!552.90 21.10 21.10 22.48 44.49 0.51 33.56
14-%o&-07 3!669.35 116.45 116.45 53.80 50.33 1.07 51.67
15-%o&-07 3!618.70 -50.65 50.65 53.80 47.83 1.12 52.94
16-%o&-07 3!837.30 218.60 218.60 95.00 51.10 1.86 65.02
19-%o&-07 3!869.90 32.60 32.60 82.52 49.75 1.66 62.39
20-%o&-07 3!764.30 -105.60 105.60 82.52 78.13 1.06 51.37
21-%o&-07 3!640.10 -124.20 124.20 97.19 93.48 1.04 50.97
22-%o&-07 3!640.60 0.50 0.50 92.04 93.48 0.98 49.61
23-%o&-07 3!639.75 -0.85 0.85 83.90 70.33 1.19 54.40
26-%o&-07 3!738.30 98.55 98.55 87.56 76.88 1.14 53.25
27-%o&-07 3!747.60 9.30 9.30 35.24 76.88 0.46 31.43
28-%o&-07 3!708.50 -39.10 39.10 36.12 67.44 0.54 34.88
29-%o&-07 3!680.60 -27.90 27.90 36.12 48.01 0.75 42.93
30-%o&-07 3!802.85 122.25 122.25 57.65 22.62 2.55 71.82
3-Dec-07 3!838.40 35.55 35.55 66.41 22.62 2.94 74.60
4-Dec-07 3!812.10 -26.30 26.30 66.41 31.10 2.14 68.11
5-Dec-07 3!798.25 -13.85 13.85 55.70 26.79 2.08 67.53
6-Dec-07 3!682.85 -115.40 115.40 78.90 44.51 1.77 63.93
7-Dec-07 3!647.65 -35.20 35.20 78.90 43.73 1.80 64.34
10-Dec-07 3!607.25 -40.40 40.40 78.90 46.23 1.71 63.05
11-Dec-07 3!730.45 123.20 123.20 79.38 46.23 1.72 63.19
12-Dec-07 3!724.05 -6.40 6.40 123.20 39.59 3.11 75.68
13-Dec-07 3!715.35 -8.70 8.70 123.20 36.66 3.36 77.07
14-Dec-07 3!733.80 18.45 18.45 70.83 41.22 1.72 63.21
17-Dec-07 3!631.70 -102.10 102.10 70.83 38.56 1.84 64.75
18-Dec-07 3!639.50 7.80 7.80 49.82 39.40 1.26 55.84
19-Dec-07 3!571.20 -68.30 68.30 49.82 46.38 1.07 51.79
20-Dec-07 3!543.75 -27.45 27.45 13.13 42.59 0.31 23.56
24-Dec-07 3!547.60 3.85 3.85 10.03 51.64 0.19 16.27
26-Dec-07 3!615.45 67.85 67.85 24.49 65.95 0.37 27.08
27-Dec-07 3!604.65 -10.80 10.80 26.50 52.16 0.51 33.69
28-Dec-07 3!631.80 27.15 27.15 26.66 35.52 0.75 42.88
31-Dec-07 3!662.25 30.45 30.45 32.32 35.52 0.91 47.65
1-Ja-08 3!765.00 102.75 102.75 46.41 19.12 2.43 70.82
2-Ja-08 3!745.10 -19.90 19.90 46.41 15.35 3.02 75.15
Babasabpatilf!!ppt"ba.#$"
>1
A STUDY ON TECHNICAL ANALYSIS At
3-Ja-08 3!603.15 -141.95 141.95 57.05 57.55 0.99 49.78
4-Ja-08 3!594.35 -8.80 8.80 53.45 45.36 1.18 54.09
7-Ja-08 3!518.00 -76.35 76.35 53.45 61.75 0.87 46.40
8-Ja-08 3!401.15 -116.85 116.85 66.60 72.77 0.92 47.79
9-Ja-08 3!456.25 55.10 55.10 78.93 72.77 1.08 52.03
10-Ja-08 3!371.50 -84.75 84.75 55.10 74.77 0.74 42.43
11-Ja-08 3!379.45 7.95 7.95 31.52 85.74 0.37 26.88
14-Ja-08 3!322.35 -57.10 57.10 31.52 68.77 0.46 31.43
15-Ja-08 3!288.40 -33.95 33.95 31.52 73.80 0.43 29.93
16-Ja-08 3!266.50 -21.90 21.90 31.52 62.91 0.50 33.38
17-Ja-08 3!339.30 72.80 72.80 45.28 49.43 0.92 47.81
18-Ja-08 3!336.70 -2.60 2.60 40.38 40.06 1.01 50.20
21-Ja-08 3!010.65 -326.05 326.05 40.38 88.32 0.46 31.37
22-Ja-08 2!862.45 -148.20 148.20 72.80 98.30 0.74 42.55
23-Ja-08 3!034.10 171.65 171.65 122.23 106.54 1.15 53.43
24-Ja-08 2!884.85 -149.25 149.25 122.23 129.60 0.94 48.54
25-Ja-08 3!026.30 141.45 141.45 128.63 156.53 0.82 45.11
28-Ja-08 2!960.60 -65.70 65.70 156.55 138.36 1.13 53.08
29-Ja-08 3!023.20 62.60 62.60 125.23 172.30 0.73 42.09
30-Ja-08 2!995.25 -27.95 27.95 125.23 97.78 1.28 56.16
31-Ja-08 2!951.50 -43.75 43.75 125.23 71.66 1.75 63.60
1-'e(-08 3!017.35 65.85 65.85 89.97 71.66 1.26 55.66
4-'e(-08 3!037.60 20.25 20.25 72.54 45.80 1.58 61.30
5-'e(-08 2!976.80 -60.80 60.80 49.57 49.55 1.00 50.01
6-'e(-08 2!891.45 -85.35 85.35 49.57 54.46 0.91 47.65
7-'e(-08 2!821.15 -70.30 70.30 43.05 57.63 0.75 42.76
8-'e(-08 2!801.20 -19.95 19.95 43.05 56.03 0.77 43.45
11-'e(-08 2!734.05 -67.15 67.15 43.05 60.71 0.71 41.49
12-'e(-08 2!700.40 -33.65 33.65 20.25 56.20 0.36 26.49
13-'e(-08 2!736.35 35.95 35.95 35.95 56.20 0.64 39.01
14-'e(-08 2!847.95 111.60 111.60 73.77 55.28 1.33 57.17
15-'e(-08 2!825.25 -22.70 22.70 73.77 42.75 1.73 63.31
18-'e(-08 2!791.40 -33.85 33.85 73.77 35.46 2.08 67.54
19-'e(-08 2!860.70 69.30 69.30 72.28 39.34 1.84 64.76
20-'e(-08 2!839.20 -21.50 21.50 72.28 27.93 2.59 72.13
21-'e(-08 2!810.60 -28.60 28.60 72.28 26.66 2.71 73.05
22-'e(-08 2!788.60 -22.00 22.00 90.45 25.73 3.52 77.85
25-'e(-08 2!899.35 110.75 110.75 90.02 25.73 3.50 77.77
26-'e(-08 3!040.10 140.75 140.75 106.93 26.49 4.04 80.15
27-'e(-08 2!891.50 -148.60 148.60 106.93 55.18 1.94 65.96
28-'e(-08 2!944.45 52.95 52.95 101.48 55.18 1.84 64.78
29-'e(-08 2!881.35 -63.10 63.10 101.48 65.57 1.55 60.75
3-Mar-08 2!779.85 -101.50 101.50 101.48 83.80 1.21 54.77
4-Mar-08 2!807.90 28.05 28.05 83.13 104.40 0.80 44.33
5-Mar-08 2!870.70 62.80 62.80 71.14 104.40 0.68 40.53
7-Mar-08 2!775.70 -95.00 95.00 47.93 102.05 0.47 31.96
10-Mar-08 2!752.90 -22.80 22.80 47.93 70.60 0.68 40.44
Babasabpatilf!!ppt"ba.#$"
>+
A STUDY ON TECHNICAL ANALYSIS At
11-Mar-08 2!789.60 36.70 36.70 42.52 70.60 0.60 37.59
12-Mar-08 2!891.15 101.55 101.55 57.28 73.10 0.78 43.93
13-Mar-08 2!791.35 -99.80 99.80 57.28 72.53 0.79 44.12
14-Mar-08 2!851.45 60.10 60.10 65.29 72.53 0.90 47.37
17-Mar-08 2!649.90 -201.55 201.55 66.12 104.79 0.63 38.69
18-Mar-08 2!629.15 -20.75 20.75 66.12 86.22 0.77 43.40
19-Mar-08 2!593.90 -35.25 35.25 66.12 89.34 0.74 42.53
24-Mar-08 2!618.65 24.75 24.75 62.13 89.34 0.70 41.02
25-Mar-08 2!687.45 68.80 68.80 51.22 89.34 0.57 36.44
26-Mar-08 2!690.90 3.45 3.45 39.28 85.85 0.46 31.39
27-Mar-08 2!697.60 6.70 6.70 25.93 85.85 0.30 23.19
28-Mar-08 2!704.65 7.05 7.05 22.15 28.00 0.79 44.17
31-Mar-08 2!575.30 -129.35 129.35 22.15 82.30 0.27 21.21
Babasabpatilf!!ppt"ba.#$"
>.
A STUDY ON TECHNICAL ANALYSIS At
ANALYSIS 5 INTERPRETATIONS '
(. ACC '
M$.i&0 A.!a0!'
S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
Muly# (ctober / December.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August#
Kovember / 4ebruary.
Babasabpatilf!!ppt"ba.#$"
>1
A STUDY ON TECHNICAL ANALYSIS At
Fong Term 'oving Average:
• This chart is similar to previous chart but it is long term moving average.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
long term moving average !i.e.# +; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# (ctober / December.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August#
Kovember / 4ebruary.
• The moving average is continuously rising from August to (ctober.
• The moving average is continuously falling from Manuary to 'arch.
Babasabpatilf!!ppt"ba.#$"
>9
A STUDY ON TECHNICAL ANALYSIS At
Fong Term / -hort Term 'oving Average:
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I" / 3!!& color indicates
long term moving average !i.e.# +; days 'I".
• Nhen long term / short term moving averages are drawn# the intersection
of two moving averages generates b)- or s!ll signal.
• 2n the above chart# the scrip price is falling / the short term moving
average intersects the long term moving average from above falls below it
during the month of Mune# August# (ctober# December / 'arch. 8ence#
the s!ll signal is generated.
• The scrip price is rising / the short term moving average intersects the
long term moving average from below during the Mune# August# Kovember
/ 4ebruary# indicating a further rise in price# gives a b)- signal.
• The short term movement may not hold long. 8ence# the investor should
wait for the long term average to turn up before buying or selling the scrip.
Babasabpatilf!!ppt"ba.#$"
>B
A STUDY ON TECHNICAL ANALYSIS At
R!lati.! St!&0t, I&*!/ :
• The 0elative -trength 2ndex !0-2" is a financial technical analysis
oscillator showing price strength by comparing upward and downward
close%to%close movements.
• 2n the above chart# bl)! color line indicates closing price of the scrip.
• 2n above chart# the b$1& shaded area!0-2" crosses the seventy# there may
be downturn / it is the right time to sell the scrip.
• -imilarly# the 0!!& shaded area !0-2" falling below thirty# it is time to
pick up the scrip.
• 2n this chart# the double bottom# double top formations are generated.
• 8ead / -houlder formation is also generated in the month of Manuary /
4ebruary.
Babasabpatilf!!ppt"ba.#$"
>D
A STUDY ON TECHNICAL ANALYSIS At
Rat! $f C,a&0!'
• 2n the above chart# the Bl)! color line indicates the closing price of the
scrip.
• 0(& measures the rate of change between the current price / the price PnG
number of days in past. 0(& helps to find out the overbought / oversold
positions in scrip.
• 2n the above chart# scripGs 0(& reaches the historic high value in the
month of Muly# the scrip is in overbought region / a fall in the value can
be anticipated. 2n Muly# the investor can s!ll the scrip.
• -imilarly# scripGs 0(& reaches the historic low value in the month of
Manuary# the scrip is in oversold region / a rise in the scripGs price can be
anticipated. 2n Manuary# the investor can b)- the scrip.
+. ULTRATECH'
Babasabpatilf!!ppt"ba.#$"
>>
A STUDY ON TECHNICAL ANALYSIS At
M$.i&0 A.!a0!'
S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# L axis indicates month and the S axis indicates the
price of scrip.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
Muly# (ctober / Manuary.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August /
4ebruary.
• 4rom -eptember to Kovember there is a rising trend# from Kovember to
Manuary there is a flat trend and from 4ebruary to 'arch there is a falling
trend.
Babasabpatilf!!ppt"ba.#$"
>:
A STUDY ON TECHNICAL ANALYSIS At
L$&0 T!" M$.i&0 a.!a0!'
• This chart is similar to previous chart but it is long term moving average.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
long term moving average !i.e.# +; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# (ctober Manuary / 'arch.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during 'ay# -eptember
/ 4ebruary.
• The moving average is continuously rising from -eptember to Kovember.
• The moving average is continuously falling in the month of 'arch.
Babasabpatilf!!ppt"ba.#$"
:;
A STUDY ON TECHNICAL ANALYSIS At
• The moving average is flat from 'ay to Muly.
L$&0 T!" 5 S,$t T!" M$.i&0 a.!a0!'
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I" / 3!!& color indicates
long term moving average !i.e.# +; days 'I".
• Nhen long term / short term moving averages are drawn# the intersection
of two moving averages generates b)- or s!ll signal.
• 2n the above chart# the scrip price is falling / the short term moving
average intersects the long term moving average from above falls below it
during the month of August# (ctober / 'arch. 8ence# the s!ll signal is
generated.
• The scrip price is rising / the short term moving average intersects the
long term moving average from below during the -eptember# Kovember /
4ebruary# indicating a further rise in price# gives a b)- signal.
• The short term movement may not hold long. 8ence# the investor should
wait for the long term average to turn up before buying or selling the scrip.
Babasabpatilf!!ppt"ba.#$"
:1
A STUDY ON TECHNICAL ANALYSIS At
R!lati.! St!&0t, I&*!/'
• The 0elative -trength 2ndex !0-2" is a financial technical analysis
oscillator showing price strength by comparing upward and downward
close%to%close movements.
• 2n the above chart# bl)! color line indicates closing price of the scrip.
• 2n above chart# the b$1& shaded area!0-2" crosses the seventy# there may
be downturn / it is the right time to sell the scrip.
• -imilarly# the 0!!& shaded area !0-2" falling below thirty# it is time to
pick up the scrip.
• 2n this chart# the double bottom# double top formations are generated.
• 0eversal 8ead / -houlder formation is also generated in the month of
December / Manuary.
Babasabpatilf!!ppt"ba.#$"
:+
A STUDY ON TECHNICAL ANALYSIS At
• Muly 'onth is over bought region# the investor can sell the scrip.
• 'arch month is over sold region# the investor can buy the scrip.
Rat! $f C,a&0!'
• 2n the above chart# the Bl)! color line indicates the closing price of the
scrip.
• 0(& measures the rate of change between the current price / the price PnG
number of days in past. 0(& helps to find out the overbought / oversold
positions in scrip.
• 2n the above chart# scripGs 0(& reaches the historic high value in the
month of 'ay# the scrip is in overbought region / a fall in the value can
be anticipated. 2n 'ay# the investor can s!ll the scrip.
Babasabpatilf!!ppt"ba.#$"
:.
A STUDY ON TECHNICAL ANALYSIS At
• -imilarly# scripGs 0(& reaches the historic low value in the month of
Manuary# the scrip is in oversold region / a rise in the scripGs price can be
anticipated. 2n Manuary# the investor can b)- the scrip.
• The falling trend is during the march.
Babasabpatilf!!ppt"ba.#$"
:1
A STUDY ON TECHNICAL ANALYSIS At
;. 3RASIM'
M$.i&0 A.!a0!'
S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# L axis indicates month and the S axis indicates the
price of scrip.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# December / Manuary.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August /
4ebruary.
• 4rom -eptember to Kovember there is a rising trend# from Kovember to
4ebruary there is a flat trend and from 4ebruary to 'arch there is a falling
trend.
Babasabpatilf!!ppt"ba.#$"
:9
A STUDY ON TECHNICAL ANALYSIS At
L$&0 T!" M$.i&0 A.!a0!'
• This chart is similar to previous chart but it is long term moving average.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
long term moving average !i.e.# +; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# Kovember / December.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Muly /
-eptember.
• The moving average is continuously rising from -eptember to Kovember.
• The moving average is continuously falling from December to 'arch.
• The moving average is flat from Kovember to Manuary.
Babasabpatilf!!ppt"ba.#$"
:B
A STUDY ON TECHNICAL ANALYSIS At
L$&0 T!" 5 S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I" / 3!!& color indicates
long term moving average !i.e.# +; days 'I".
• Nhen long term / short term moving averages are drawn# the intersection
of two moving averages generates b)- or s!ll signal.
• 2n the above chart# the scrip price is falling / the short term moving
average intersects the long term moving average from above falls below it
during the month of Mune# August / Kovember. 8ence# the s!ll signal is
generated.
• The scrip price is rising / the short term moving average intersects the
long term moving average from below during the Mune# -eptember /
'arch# indicating a further rise in price# gives a b)- signal.
• The short term movement may not hold long. 8ence# the investor should
wait for the long term average to turn up before buying or selling the scrip.
Babasabpatilf!!ppt"ba.#$"
A STUDY ON TECHNICAL ANALYSIS At
R!lati.! St!&0t, I&*!/'
• The 0elative -trength 2ndex !0-2" is a financial technical analysis
oscillator showing price strength by comparing upward and downward
close%to%close movements.
• 2n the above chart# bl)! color line indicates closing price of the scrip.
• 2n above chart# the b$1& shaded area !0-2" crosses the seventy# there
may be downturn / it is the right time to sell the scrip.
• -imilarly# the 0!!& shaded area !0-2" falling below thirty# it is time to
pick up the scrip.
• 2n this chart# the double bottom# double top formations are generated.
• 8ead / -houlder formation is also generated in the month of 4ebruary /
'arch.
• -eptember 'onth is over bought region# the investor can sell the scrip.
Babasabpatilf!!ppt"ba.#$"
:>
A STUDY ON TECHNICAL ANALYSIS At
• Mune month is over sold region# the investor can buy the scrip.
Babasabpatilf!!ppt"ba.#$"
::
A STUDY ON TECHNICAL ANALYSIS At
Rat! $f C,a&0!'
• 2n the above chart# the Bl)! color line indicates the closing price of the
scrip.
• 0(& measures the rate of change between the current price / the price PnG
number of days in past. 0(& helps to find out the overbought / oversold
positions in scrip.
• 2n the above chart# scripGs 0(& reaches the historic high value in the
month of Muly# the scrip is in overbought region / a fall in the value can
be anticipated. 2n Muly# the investor can s!ll the scrip.
• -imilarly# scripGs 0(& reaches the historic low value in the month of
Manuary# the scrip is in oversold region / a rise in the scripGs price can be
anticipated. 2n Manuary# the investor can b)- the scrip.
• The falling trend is from (ctober to 4ebruary.
• The rising trend is from Mune to August.
Babasabpatilf!!ppt"ba.#$"
1;;
A STUDY ON TECHNICAL ANALYSIS At
FINDIN3S'
ACC'
• 2n the chart# moving average !short term / long term" was fluctuating
month by month. 2t was rising from August to (ctober / falling from
December to 4ebruary.
• 2n 0-2 chart# the double bottom# double top formations were generated
• 0everse 8ead / -houlder formation was also generated in the month of
Manuary / 4ebruary.
• During the month of -eptember the shares were overbought# so it is the
right time to sell the share.
• During the month of 'arch the shares were oversold# so it is right time to
buy the share
• 2n case of 0(&# the reverse 8ead / -houlder formation was generated.
• Mune month shows rising trend and December / Manuary months shows
falling trend.
ULTATECH'
• The moving average of 1; days / +; days# was flat from 'ay to Mune. 2t
was rising from -eptember to the end of (ctober. 2t was falling from
Manuary to 'arch.
Babasabpatilf!!ppt"ba.#$"
1;1
A STUDY ON TECHNICAL ANALYSIS At
• 2n 0-2 chart# 0everse 8ead / -houlder formation was also generated in
the month of December / Manuary.
• The double bottom# double top formations were generated.
• The Muly 'onth was overbought region; the investor can sell the scrip.
• The 'arch month was over sold region# the investor can buy the scrip.
• 2n 0(& chart# the reverse 8ead / -houlder formation was generated in
December.
• 'ay / Muly months shows rising trend and Manuary / 'arch months
shows falling trend.
3RASIM'
• The moving average of 1; days / +; days# shows flat from (ctober to
Manuary. 2t shows rising trend from -eptember to Kovember. 2t shows
falling trend from Manuary to 'arch.
• 2n 0-2 chart# 8ead / -houlder formation was generated from Manuary to
'arch.
• The double bottom# double top formations were generated.
• The April month was overbought region; the investor can sell the scrip.
• The Mune month was over sold region# the investor can buy the scrip.
• 2n 0(& chart# the reverse 8ead / -houlder formation was generated in
August.
Babasabpatilf!!ppt"ba.#$"
1;+
A STUDY ON TECHNICAL ANALYSIS At
• 0(& shows the rising trend from Mune to Muly / it shows the falling trend
from (ctober to Manuary.
Babasabpatilf!!ppt"ba.#$"
1;.
A STUDY ON TECHNICAL ANALYSIS At
RECOMMENDATION'
• 2t is very difficult for an investor to select any scrip for investment in stock
market. $efore investing# the investor should go for a detailed study of the
scrip# which includes: 4undamental analysis of the company / its return
for past . years.
• A&&:
o According 'oving%Average# the prices of the scrip is falling / the
-hort%Term Average intersect the Fong Term Average on +D
th
'arch +;;> !0s.D:;.;B" from above point / falls below it# so the
sell signal is been indicated. -o# in future the investor is been
advised to sell the share.
o According to 0elative -trength 2ndex !0-2" chart# the 0-2 lies
between 9; / B; region / is been in decreasing trend. There fore
in future the prices may come down very drastically# so investor is
been advised to sell the share.
o According to 0ate of &hange chart# the 0(& is falling from +>
th
march +;;> to .1
st
'arch +;;> with the price of +.9B to +.1B.it
may go into negative range. -o# the investor is been advised to sell
the share.
• @FT0AT5&8:
o According 'oving%Average# the prices of the scrip is falling / the
-hort%Term Average intersect# the Fong Term Average on 1.
th
'arch +;;> !0s.>>9.B;" from above point / falls below it# so the
sell signal is been indicated. 2n future also the investor advised to
sell the share.
Babasabpatilf!!ppt"ba.#$"
1;1
A STUDY ON TECHNICAL ANALYSIS At
o According to 0elative -trength 2ndex !0-2" chart# the 0-2 lies
between 1; / 9; region / is decreasing. 2n future the prices may
come down very drastically# so the investor is been advised to sell
the share.
o According to 0ate of &hange chart# the 0(& is falling from +D
th
march +;;> to .1
st
'arch +;;> with the price of %19.D1 to %11.:9.
2t is in negative range. -o# the investor can sell the share.
• with the price of %B.1B to %1+.91. 2t
is in negative range. -o# the investor is been advised to sell the
share.
Babasabpatilf!!ppt"ba.#$"
1;9
A STUDY ON TECHNICAL ANALYSIS At
LIMITATIONS'
? The duration of time is very limited# which may not suffice the re,uired
tenure to study the &ement -ector.
? 2 have done the price prediction only for one year; from this data we
cannot get the results accurately.
? 2 have compared 0elianceGs three mutual funds# which may not represent
the entire 'utual 4und industry.
? 2 have chosen only &ement -ector &ompanies# whereas there are
numerous sectors in the stock market.
Babasabpatilf!!ppt"ba.#$"
1;B
A STUDY ON TECHNICAL ANALYSIS At
CONCLUSION'
The
A STUDY ON TECHNICAL ANALYSIS At
BIBLIO3RAPHY'
0eference $ooks.
• -ecurity Analysis / 3ortfolio 'anagement
%% $y. 3unithavathy 3andian.
• -ecurity Analysis / 3ortfolio 'anagement
%% $y Donald 5. 4ischer /
0onald M. Mordon
Nebsites.
• www.nseindia.com
• www.investopedia.com
• www.-tock&harts.com
• www.wikipedia.com
• www.sharekhan.com
'aga*ines.
• 4ortune 2ndia
• Dalal -treet
Babasabpatilf!!ppt"ba.#$"
1;:
doc_596538366.doc
? INDUSTRY OVERVIEW
? COMPANY PROFILE….
Babasabpatilf!!ppt"ba.#$"
1
A STUDY ON TECHNICAL ANALYSIS At
INDUSTRY OVERVIEW
A st$#% "a%!t is a private or public market for the trading of company stock
and derivatives of company stock at an agreed price; both of these are securities
listed on a stock exchange as well as those only traded privately.
Definition:
The expression stock market refers to the market that enables the trading of
company stocks !collective shares"# other securities# and derivatives. $onds are
still traditionally traded in an informal# over%the%counter market known as the
bond market. &ommodities are traded in commodities markets# and derivatives
are traded in a variety of markets !but# like bonds# mostly over%the%counter".
Ma%!t pati#ipa&ts'
'any years ago# worldwide# buyers and sellers were individual investors# such as
wealthy businessmen# with long family histories to particular corporations. (ver
time# markets have become more )institutionali*ed); buyers and sellers are largely
institutions !e.g.# pension funds# insurance companies# mutual funds# hedge funds#
investor groups# and banks".
The rise of the institutional investor has brought with it some improvements in
market operations. Thus# the government was responsible for )fixed) fees being
markedly reduced for the small investor# but only after the large institutions had
managed to break the brokers solid front on fees !they then went to negotiated
fees# but only for large institutions".
Babasabpatilf!!ppt"ba.#$"
+
A STUDY ON TECHNICAL ANALYSIS At
I"p$ta&#! $f st$#% "a%!t'
(. F)&#ti$& a&* p)p$s!'
The st$#% "a%!t is one of the most important sources for companies to raise
money. This allows businesses to go public# or raise additional capital for
expansion. The li,uidity that an exchange provides affords investors the ability to
,uickly and easily sell securities. This is an attractive feature of investing in
stocks# compared to other less li,uid investments such as real estate.
+. R!lati$& $f t,! st$#% "a%!t t$ t,! "$*!& fi&a&#ial s-st!"'
The financial system in most western countries has undergone a remarkable
transformation. (ne feature of this development is disintermediation. A portion of
the funds involved in saving and financing flows directly to the financial markets
instead of being routed via banks traditional lending and deposit operations. The
general publics heightened interest in investing in the stock market# either
directly or through mutual funds# has been an important component of this
process. -tatistics show that in recent decades shares have made up an
increasingly large proportion of households financial assets in many countries.
.. The -tock 'arket# individual investors / financial risk:
0iskier long%term saving re,uires that an individual possess the ability to manage
the associated increased risks. -tock prices fluctuate widely# in marked contrast to
the stability of bank deposits or bonds. This is something that could affect not
only the individual investor or household# but also the economy on a large scale.
This is certainly more important now that so many newcomers have entered the
stock market# or have ac,uired other risky investments.
Babasabpatilf!!ppt"ba.#$"
.
A STUDY ON TECHNICAL ANALYSIS At
Iati$&al b!,a.i$'
-ometimes the market tends to react irrationally to economic news# even if that
news has no real effect on the technical value of securities itself. Therefore# the
stock market can be swayed tremendously in either direction by press releases#
rumors# euphoria and mass panic. (ver the short%term# stocks and other securities
can be battered or buoyed by any number of fast market%changing events# making
the stock market difficult to predict.
1. The &rashes:
A stock market crash is often defined as a sharp dip in share prices of e,uities
listed on the stock exchanges. 2n parallel with various economic factors# a reason
for stock market crashes is also due to panic. (ften# stock market crashes end up
with speculative economic bubbles.
St$#% "a%!t i&*!/'
The movements of the prices in a market or section of a market are captured in
price indices called stock market indices# of which there are many# e.g.# the -/3#
the 4T-5 and the 5uronext indices. -uch indices are usually market capitali*ation
!the total market value of floating capital of the company" weighted# with the
weights reflecting the contribution of the stock to the index. The constituents of
the index are reviewed fre,uently to include6exclude stocks in order to reflect the
changing business environment.
Babasabpatilf!!ppt"ba.#$"
1
A STUDY ON TECHNICAL ANALYSIS At
D!i.ati.! i&st)"!&ts'
4inancial innovation has brought many new financial instruments whose pay%offs
or values depend on the prices of stocks. -ome examples are exchange%traded
funds !5T4s"# stock index and stock options# e,uity swaps# single%stock futures#
and stock index futures. These last two may be traded on futures exchanges
!which are distinct from stock exchanges7their history traces back to
commodities futures exchanges"# or traded over%the%counter. As all of these
products are only derived from stocks# they are sometimes considered to be traded
in a !hypothetical" derivatives market# rather than the !hypothetical" stock market.
L!.!a0!* Stat!0i!s'
-tock that a trader does not actually own may be traded using short selling;
margin buying may be used to purchase stock with borrowed funds; or#
derivatives may be used to control large blocks of stocks for a much smaller
amount of money than would be re,uired by outright purchase or sale.
(. S,$t s!lli&0'
2n short selling# the trader borrows stock !usually from his brokerage which holds
its clients shares or its own shares on account to lend to short sellers" then sells it
on the market# hoping for the price to fall. The trader eventually buys back the
stock# making money if the price fell in the meantime or losing money if it rose.
5xiting a short position by buying back the stock is called )covering a short
position.) This strategy may also be used by unscrupulous traders to artificially
lower the price of a stock. 8ence most markets either prevent short selling or
place restrictions on when and how a short sale can occur.
Babasabpatilf!!ppt"ba.#$"
9
A STUDY ON TECHNICAL ANALYSIS At
+. Ma0i& b)-i&0'
2n margin buying# the trader borrows money !at interest" to buy a stock and hopes
for it to rise. 'ost industriali*ed countries have regulations that re,uire that if the
borrowing is based on collateral from other stocks the trader owns outright# it can
be a maximum of a certain percentage of those other stocks value. A margin call
is made if the total value of the investors account cannot support the loss of the
trade. 0egulation of margin re,uirements !by the 4ederal 0eserve" was
implemented after the &rash of 1:+:. $efore that# speculators typically only
needed to put up as little as 1; percent !or even less" of the total investment
represented by the stocks purchased.
N!1 iss)a&#!'
? increase over the =.>: billion raised in +;;.. 2nitial public
offerings !23(s" by @- issuers increased ++1? with +.. offerings that raised =19
billion# and 23(s in 5urope# 'iddle 5ast and Africa !5'5A" increased by ...?#
from = : billion to =.: billion.
I&.!st"!&t stat!0i!s'
(ne of the many things people always want to know about the stock market is#
)8ow do 2 make money investingA) There are many different approaches; two
basic methods are classified as either f)&*a"!&tal a&al-sis $ t!#,&i#al
a&al-sis. 4undamental analysis refers to analy*ing companies by their financial
statements found in -5& 4ilings# business trends# general economic conditions#
etc. T!#,&i#al a&al-sis studies price actions in markets through the use of charts
and ,uantitative techni,ues to attempt to forecast price trends regardless of the
companys financial prospects.
Babasabpatilf!!ppt"ba.#$"
B
A STUDY ON TECHNICAL ANALYSIS At
Ta/ati$&'
According to each national or state legislation# a large array of fiscal obligations
must be respected regarding capital gains# and taxes are charged by the state over
the transactions# dividends and capital gains on the stock market# in particular in
the stock exchanges. 8owever# these fiscal obligations may vary from Curisdiction
to Curisdiction because# among other reasons# it could be assumed that taxation is
already incorporated into the stock price through the different taxes companies
pay to the state# or that tax free stock market operations are useful to boost
economic growth.
Babasabpatilf!!ppt"ba.#$"
D
A STUDY ON TECHNICAL ANALYSIS At
COMPANY PROFILE
S,a!%,a& is the retail brokering arm of --E2; --E2 is -- Eantilal 2shwarlal
-ecurities 3vt. Ftd. 2t is an organi*ation with more than eight decades of trust and
credibility in the stock market.
As the punch line of the company says itGs a guide to the financial Cungle it has its
many group of companies carrying on financial activities.
S,a!%,a& H 0etail broking brand
-harekhan is the retail broking arm of --E2 group. -harekhan has successfully
transformed into a full fledge retail brand of --E2. 2t is a one stop shop for all
kind of trading activities related to share and other recent happenings like
derivative market and evolved commodity market in 2ndia.
S,a!%,a&.#$"
Babasabpatilf!!ppt"ba.#$"
>
A STUDY ON TECHNICAL ANALYSIS At
-harekhan.com is the answer for the highly volatile stock market in 2ndia.
As the market has grown leaps and bounces in the recent year. -5$2 !-ecurities /
5xchange $oard of 2ndia" has made Demat Account mandatory for trading in any
of the stock exchanges. -hare khan along with banks in 2ndia has fund transfer
facility with many of these banks.
The online form of trading is carried on through -harkhan.com. 2t allows the
clients to access the website to know about the latest news in the market and the
impact it has on the various scrips. --E2 is in the 2ndian securities business since
1:++. -hare khan is serving 2nstitutional 2nvestors HDomestic 62nternational. The
institutional 0esearch team is rated as one of the best in industry -harekhan has
been rated as among Top . domestic brokerage and rated as one of the most
aggressive in the industry.
SS2I 3$)p C$"pa&i!s
? --E2 2nvestor -ervices Ftd. !S,a!%,a&"
? -.-. Eantilal 2shwarlal -ecurities.
? --E2 &orporate 4inance.
Visi$&'
To be the best retail broking brand in the Indian Equities
market.
Babasabpatilf!!ppt"ba.#$"
:
A STUDY ON TECHNICAL ANALYSIS At
Missi$&'
To educate and empower the individual investor to
make better investment decisions through quality
advice and superior service.
T,! S,a!%,a& Wa- $f Lif!'
? 3eople driven relationships
? th century# which
evolved into the use of candlestick techni,ues# and is today a main charting tool.
'any more technical tools and theories have been developed and enhanced in
recent decades# with an increasing emphasis on computer%assisted techni,ues.
Pi&#ipl!s $f t!#,&i#al a&al-sis
Technicians say that a markets price reflects all relevant information# so their
analysis looks more at )internals) than at )externals) such as news events. 3rice
action also tends to repeat itself because investors collectively tend toward
patterned behavior %% hence technicians focus on identifiable trends and
conditions.
Ma%!t a#ti$& *is#$)&ts !.!-t,i&0
(n most of the si*able return days the information that the press cites as the cause
of the market move is not particularly important. 3ress reports on adCacent days
also fail to reveal any convincing accounts of why future profits or discount rates
might have changed. (ur inability to identify the fundamental shocks that
accounted for these significant market moves is difficult to reconcile with the
view that such shocks account for most of the variation in stock returns.
Pi#!s "$.! i& t!&*s
Technical analysts believe that prices trend. Technicians say that markets trend up#
down# or sideways !flat". An example of a security that had an apparent trend is
A(F from Kovember +;;1 through August +;;+. A technical analyst or trend
Babasabpatilf!!ppt"ba.#$"
+1
A STUDY ON TECHNICAL ANALYSIS At
follower recogni*ing this trend would look for opportunities to sell this security.
A(F consistently moves downward in price. 5ach time the stock rose# sellers
would enter the market and sell the stock; hence the )*ig%*ag) movement in the
price. 2n other words# each time the stock edged lower# it fell below its previous
relative low price.
Hist$- t!&*s t$ !p!at its!lf
Technical analysts believe that investors collectively repeat the behavior of the
investors that preceded them. Technical analysis is not limited to charting# yet is
always concerned with price trends. 4or example# many technicians monitor
surveys of investor sentiment.. Technicians use these surveys to help determine
whether a trend will continue or if a reversal could develop; they are most likely
to anticipate a change when the surveys report extreme investor sentiment.
R)l!6bas!* ta*i&0
0ule%based trading is an approach to make ones trading plans by strict and clear%
cut rules. @nlike some other technical methods or most fundamental analysis# it
defines a set of rules that determines all trades# leaving minimal discretion. 4or
instance# a trader might make a set of rules stating that he will take a long position
whenever the price of a particular instrument closes above its 9;%day moving
average# and shorting it whenever it drops below.
C$"bi&i&0 T!#,&i#al A&al-sis 1it, $t,! Ma%!t F$!#ast M!t,$*s
Mohn 'urphy in his book )Technical Analysis of the 4inancial 'arkets)# says that
the principal sources of information available to technicians are price# volume and
open interest. (ther data# such as indicators and sentiment analysis are considered
secondary. Technical analysis is also often combined with ,uantitative analysis
Babasabpatilf!!ppt"ba.#$"
+9
A STUDY ON TECHNICAL ANALYSIS At
and economics. 4or example# neural networks may be used to help identify
intermarket relationships. A few market forecasters combine financial astrology
with technical analysis.
C,ati&0 t!"s a&* i&*i#at$s
Nidely%known technical analysis concepts include:
• $reakout % when a price passes through and stays above an area of support
or resistance
• &ommodity &hannel 2ndex % identifies cyclical trends
• 'omentum % the rate of price change
• 'oving average % lags behind the price action
• 0elative -trength 2ndex !0-2" % oscillator showing price strength
• 0esistance % an area that brings on increased selling
Babasabpatilf!!ppt"ba.#$"
+B
A STUDY ON TECHNICAL ANALYSIS At
Babasabpatilf!!ppt"ba.#$"
+D
A STUDY ON TECHNICAL ANALYSIS At
METHODOLO3Y'
The data collected for the research purpose are secondary data. &losing prices of
scrips were collected through Kational -tock 5xchange website. The data
employed in this study comprises of one year observations on the &ement -ector
companiesG &losing price. Daily data are preferred in this study. The choice of
daily closing price is realistic and helpful to calculate and testing the results in
technical analysis.
-tatistical Tools @sed:
1. Day 'oving Average.
+. 0elative strength index.
.. 0ate of change method.
(. Da- M$.i&0 A.!a0!'
Day 'oving averages are one of the most popular and easy to use tools available
to the technical analyst. They smooth a data series and make it easier to spot
trends# something that is especially helpful in volatile markets. They also form the
building blocks for many other technical indicators and overlays.
The two most popular types of moving averages:
• Daily 'oving Average 7SMA8 and
• 5xponential moving Average 7EMA8.
2n this study day moving average has taken.
4or example: a 9%day simple moving average is calculated by adding the closing
prices for the last 9 days and dividing the total by 9.
(9 : (( : (+ : (; : (< = >9
>9 ? @ = (+.
Babasabpatilf!!ppt"ba.#$"
+>
A STUDY ON TECHNICAL ANALYSIS At
The calculation is repeated for each price bar on the chart. The averages are then
Coined to form a smooth curving line % the "$.i&0 average line. &ontinuing our
example# if the next closing price in the average is 19# then this new period would
be added and the oldest day# which is 1;# would be dropped. The new 9%day
simple moving average would be calculated as follows:
(( : (+ : (; : (< : (@ =>@
>@ ? @ = (;
H$1 a! M$.i&0 A.!a0!s Us!*'
The primary purpose of moving averages is to )smooth) data so that trends are
more discernable. They are used to construct market indicators and to assist in
interpretation of price charts.
'oving average crossovers can also be used as signals to buy and sell. This is
normally done in two ways:
!1" $y watching for price to cross whatever moving average you may be using# or
!+" 0unning two moving averages of the same price or index# one faster than the
other#
and buying or selling when the faster average crosses the slower.
The weakness of moving average buy and sell systems is that they will most
likely become unprofitable when the stock or index begins moving sideways in a
narrow trading range. @nder these circumstances price never moves above or
below the average far enough to become profitable.
Babasabpatilf!!ppt"ba.#$"
+:
A STUDY ON TECHNICAL ANALYSIS At
+. R!lati.! st!&0t, i&*!/'
The 0elative -trength 2ndex !0-2" is an extremely useful and popular momentum
oscillator. The 0-2 compares the magnitude of a stocks recent gains to the
magnitude of its recent losses and turns that information into a number that ranges
from ; to 1;;. 2t takes a single parameter# the number of time periods to use in the
calculation.
Cal#)lati$&'
0-2 V 1;; H 1;; 6 !1W0-"
Average gain V !Total gains 6 n"
Average loss V !Total loss 6 n"
0elative -trength V Average gain 6 Average loss
0elative -trength 2ndex V 1;; H 1;; 6 !1W 0-"
K V number of 0-2 periods.
To simplify the formula# the 0-2 has been broken down into its basic components
which are the Average
A STUDY ON TECHNICAL ANALYSIS At
14-Ju-07 2!425.80 62.20 62.20 32.77 30.68 1.07 51.65
15-Ju-07 2!391.40 -34.40 34.40 48.83 31.42 1.55 60.84
18-Ju-07 2!376.20 -15.20 15.20 48.83 28.51 1.71 63.13
19-Ju-07 2!434.20 58.00 58.00 51.88 27.70 1.87 65.19
20-Ju-07 2!511.45 77.25 77.25 58.23 23.10 2.52 71.60
21-Ju-07 2!507.80 -3.65 3.65 65.82 18.24 3.61 78.30
22-Ju-07 2!497.50 -10.30 10.30 65.82 15.89 4.14 80.55
25-Ju-07 2!465.00 -32.50 32.50 67.63 19.21 3.52 77.88
26-Ju-07 2!496.95 31.95 31.95 55.73 15.41 3.62 78.34
27-Ju-07 2!503.10 6.15 6.15 43.34 15.48 2.80 73.68
28-Ju-07 2!626.15 123.05 123.05 59.60 15.48 3.85 79.38
29-Ju-07 2!636.00 9.85 9.85 42.75 15.48 2.76 73.41
2-Jul-07 2!620.75 -15.25 15.25 42.75 19.35 2.21 68.84
3-Jul-07 2!701.75 81.00 81.00 50.40 23.88 2.11 67.86
4-Jul-07 2!739.30 37.55 37.55 48.26 15.25 3.16 75.99
5-Jul-07 2!748.35 9.05 9.05 44.44 15.25 2.91 74.45
6-Jul-07 2!771.95 23.60 23.60 47.35 15.25 3.10 75.64
9-Jul-07 2!758.50 -13.45 13.45 32.21 14.35 2.24 69.18
10-Jul-07 2!727.00 -31.50 31.50 37.80 20.07 1.88 65.32
11-Jul-07 2!823.35 96.35 96.35 49.51 22.47 2.20 68.78
12-Jul-07 2!819.25 -4.10 4.10 41.64 16.35 2.55 71.80
13-Jul-07 2!874.40 55.15 55.15 46.04 16.35 2.82 73.79
16-Jul-07 2!894.25 19.85 19.85 48.74 16.35 2.98 74.88
17-Jul-07 2!853.95 -40.30 40.30 57.12 22.34 2.56 71.89
18-Jul-07 2!897.65 43.70 43.70 53.76 25.30 2.13 68.00
19-Jul-07 2!999.40 101.75 101.75 63.36 22.20 2.85 74.05
20-Jul-07 3!002.80 3.40 3.40 44.77 22.20 2.02 66.85
23-Jul-07 3!032.45 29.65 29.65 42.25 40.30 1.05 51.18
24-Jul-07 3!028.00 -4.45 4.45 39.67 22.38 1.77 63.94
25-Jul-07 2!966.90 -61.10 61.10 44.63 35.28 1.26 55.85
26-Jul-07 2!962.85 -4.05 4.05 44.63 23.20 1.92 65.79
27-Jul-07 2!861.60 -101.25 101.25 44.93 42.71 1.05 51.27
30-Jul-07 2!945.35 83.75 83.75 38.93 42.71 0.91 47.69
31-Jul-07 2!957.05 11.70 11.70 41.70 42.71 0.98 49.40
1-Au"-07 2!845.75 -111.30 111.30 47.73 56.43 0.85 45.82
2-Au"-07 2!901.65 55.90 55.90 50.45 69.43 0.73 42.09
3-Au"-07 2!962.95 61.30 61.30 53.16 72.20 0.74 42.41
6-Au"-07 2!897.95 -65.00 65.00 53.16 92.52 0.57 36.49
7-Au"-07 2!921.25 23.30 23.30 47.19 88.15 0.54 34.87
8-Au"-07 2!988.80 67.55 67.55 43.95 88.15 0.50 33.27
9-Au"-07 2!916.25 -72.55 72.55 52.01 82.95 0.63 38.54
10-Au"-07 2!874.30 -41.95 41.95 52.01 59.83 0.87 46.50
13-Au"-07 2!938.25 63.95 63.95 54.03 59.83 0.90 47.45
14-Au"-07 2!881.15 -57.10 57.10 51.60 59.15 0.87 46.59
16-Au"-07 2!790.65 -90.50 90.50 51.60 65.53 0.79 44.06
17-Au"-07 2!747.30 -43.35 43.35 65.75 61.09 1.08 51.84
20-Au"-07 2!777.95 30.65 30.65 47.30 61.09 0.77 43.64
Babasabpatilf!!ppt"ba.#$"
D:
A STUDY ON TECHNICAL ANALYSIS At
21-Au"-07 2!726.35 -51.60 51.60 47.30 56.90 0.83 45.39
22-Au"-07 2!727.80 1.45 1.45 32.02 60.64 0.53 34.56
23-Au"-07 2!751.20 23.40 23.40 18.50 60.64 0.31 23.38
24-Au"-07 2!771.60 20.40 20.40 18.97 61.82 0.31 23.49
27-Au"-07 2!829.00 57.40 57.40 26.66 47.47 0.56 35.96
28-Au"-07 2!856.35 27.35 27.35 26.77 51.60 0.52 34.16
29-Au"-07 2!911.50 55.15 55.15 30.86 51.60 0.60 37.42
30-Au"-07 2!953.10 41.60 41.60 32.39 0.00 0.00 0.00
31-Au"-07 2!946.95 -6.15 6.15 37.55 6.15 6.11 85.93
3-#ep-07 2!933.70 -13.25 13.25 40.38 9.70 4.16 80.63
4-#ep-07 3!021.05 87.35 87.35 53.77 9.70 5.54 84.72
5-#ep-07 3!055.80 34.75 34.75 49.24 9.70 5.08 83.54
6-#ep-07 3!176.35 120.55 120.55 67.88 9.70 7.00 87.50
7-#ep-07 3!179.00 2.65 2.65 57.38 9.70 5.92 85.54
10-#ep-07 3!207.80 28.80 28.80 54.82 9.70 5.65 84.97
11-#ep-07 3!212.75 4.95 4.95 46.51 13.25 3.51 77.83
12-#ep-07 3!199.45 -13.30 13.30 46.51 13.30 3.50 77.76
13-#ep-07 3!264.10 64.65 64.65 42.73 13.30 3.21 76.26
14-#ep-07 3!227.65 -36.45 36.45 44.32 24.88 1.78 64.05
17-#ep-07 3!216.30 -11.35 11.35 25.26 20.37 1.24 55.36
18-#ep-07 3!257.20 40.90 40.90 34.82 20.37 1.71 63.10
19-#ep-07 3!329.50 72.30 72.30 45.70 20.37 2.24 69.17
20-#ep-07 3!377.55 48.05 48.05 56.48 20.37 2.77 73.50
21-#ep-07 3!444.60 67.05 67.05 58.59 23.90 2.45 71.03
24-#ep-07 3!425.65 -18.95 18.95 57.07 22.25 2.57 71.95
25-#ep-07 3!439.25 13.60 13.60 48.38 15.15 3.19 76.15
26-#ep-07 3!427.55 -11.70 11.70 48.38 15.32 3.16 75.94
27-#ep-07 3!438.95 11.40 11.40 42.48 15.32 2.77 73.49
28-#ep-07 3!511.05 72.10 72.10 42.44 15.32 2.77 73.47
1-$ct-07 3!602.35 91.30 91.30 51.09 15.32 3.33 76.93
3-$ct-07 3!654.95 52.60 52.60 48.20 15.32 3.15 75.88
4-$ct-07 3!593.95 -61.00 61.00 48.20 36.35 1.33 57.01
5-$ct-07 3!552.55 -41.40 41.40 56.85 38.03 1.49 59.92
8-$ct-07 3!421.65 -130.90 130.90 56.85 77.77 0.73 42.23
9-$ct-07 3!604.40 182.75 182.75 99.69 77.77 1.28 56.18
10-$ct-07 3!652.45 48.05 48.05 93.67 77.77 1.20 54.64
11-$ct-07 3!818.75 166.30 166.30 112.43 77.77 1.45 59.11
12-$ct-07 3!741.80 -76.95 76.95 132.37 77.56 1.71 63.05
15-$ct-07 3!811.30 69.50 69.50 116.65 83.08 1.40 58.40
16-$ct-07 3!758.90 -52.40 52.40 116.65 86.75 1.34 57.35
17-$ct-07 3!704.55 -54.35 54.35 116.65 61.23 1.91 65.58
18-$ct-07 3!586.75 -117.80 117.80 94.62 75.38 1.26 55.66
19-$ct-07 3!510.55 -76.20 76.20 117.90 75.54 1.56 60.95
22-$ct-07 3!500.55 -10.00 10.00 69.50 64.62 1.08 51.82
23-$ct-07 3!695.05 194.50 194.50 132.00 62.15 2.12 67.99
24-$ct-07 3!649.95 -45.10 45.10 194.50 59.31 3.28 76.63
25-$ct-07 3!716.50 66.55 66.55 130.53 60.69 2.15 68.26
Babasabpatilf!!ppt"ba.#$"
>;
A STUDY ON TECHNICAL ANALYSIS At
26-$ct-07 3!779.10 62.60 62.60 107.88 62.28 1.73 63.40
29-$ct-07 3!805.70 26.60 26.60 87.56 43.77 2.00 66.67
30-$ct-07 3!738.05 -67.65 67.65 87.56 40.92 2.14 68.15
31-$ct-07 3!708.75 -29.30 29.30 87.56 47.35 1.85 64.90
1-%o&-07 3!664.70 -44.05 44.05 51.92 46.53 1.12 52.74
2-%o&-07 3!730.40 65.70 65.70 55.36 47.00 1.18 54.08
5-%o&-07 3!709.25 -21.15 21.15 51.63 40.54 1.27 56.02
6-%o&-07 3!648.60 -60.65 60.65 46.15 44.56 1.04 50.88
7-%o&-07 3!610.60 -38.00 38.00 65.70 43.47 1.51 60.18
8-%o&-07 3!556.80 -53.80 53.80 65.70 41.16 1.60 61.48
9-%o&-07 3!507.95 -48.85 48.85 65.70 44.42 1.48 59.66
12-%o&-07 3!531.80 23.85 23.85 44.78 44.49 1.01 50.16
13-%o&-07 3!552.90 21.10 21.10 22.48 44.49 0.51 33.56
14-%o&-07 3!669.35 116.45 116.45 53.80 50.33 1.07 51.67
15-%o&-07 3!618.70 -50.65 50.65 53.80 47.83 1.12 52.94
16-%o&-07 3!837.30 218.60 218.60 95.00 51.10 1.86 65.02
19-%o&-07 3!869.90 32.60 32.60 82.52 49.75 1.66 62.39
20-%o&-07 3!764.30 -105.60 105.60 82.52 78.13 1.06 51.37
21-%o&-07 3!640.10 -124.20 124.20 97.19 93.48 1.04 50.97
22-%o&-07 3!640.60 0.50 0.50 92.04 93.48 0.98 49.61
23-%o&-07 3!639.75 -0.85 0.85 83.90 70.33 1.19 54.40
26-%o&-07 3!738.30 98.55 98.55 87.56 76.88 1.14 53.25
27-%o&-07 3!747.60 9.30 9.30 35.24 76.88 0.46 31.43
28-%o&-07 3!708.50 -39.10 39.10 36.12 67.44 0.54 34.88
29-%o&-07 3!680.60 -27.90 27.90 36.12 48.01 0.75 42.93
30-%o&-07 3!802.85 122.25 122.25 57.65 22.62 2.55 71.82
3-Dec-07 3!838.40 35.55 35.55 66.41 22.62 2.94 74.60
4-Dec-07 3!812.10 -26.30 26.30 66.41 31.10 2.14 68.11
5-Dec-07 3!798.25 -13.85 13.85 55.70 26.79 2.08 67.53
6-Dec-07 3!682.85 -115.40 115.40 78.90 44.51 1.77 63.93
7-Dec-07 3!647.65 -35.20 35.20 78.90 43.73 1.80 64.34
10-Dec-07 3!607.25 -40.40 40.40 78.90 46.23 1.71 63.05
11-Dec-07 3!730.45 123.20 123.20 79.38 46.23 1.72 63.19
12-Dec-07 3!724.05 -6.40 6.40 123.20 39.59 3.11 75.68
13-Dec-07 3!715.35 -8.70 8.70 123.20 36.66 3.36 77.07
14-Dec-07 3!733.80 18.45 18.45 70.83 41.22 1.72 63.21
17-Dec-07 3!631.70 -102.10 102.10 70.83 38.56 1.84 64.75
18-Dec-07 3!639.50 7.80 7.80 49.82 39.40 1.26 55.84
19-Dec-07 3!571.20 -68.30 68.30 49.82 46.38 1.07 51.79
20-Dec-07 3!543.75 -27.45 27.45 13.13 42.59 0.31 23.56
24-Dec-07 3!547.60 3.85 3.85 10.03 51.64 0.19 16.27
26-Dec-07 3!615.45 67.85 67.85 24.49 65.95 0.37 27.08
27-Dec-07 3!604.65 -10.80 10.80 26.50 52.16 0.51 33.69
28-Dec-07 3!631.80 27.15 27.15 26.66 35.52 0.75 42.88
31-Dec-07 3!662.25 30.45 30.45 32.32 35.52 0.91 47.65
1-Ja-08 3!765.00 102.75 102.75 46.41 19.12 2.43 70.82
2-Ja-08 3!745.10 -19.90 19.90 46.41 15.35 3.02 75.15
Babasabpatilf!!ppt"ba.#$"
>1
A STUDY ON TECHNICAL ANALYSIS At
3-Ja-08 3!603.15 -141.95 141.95 57.05 57.55 0.99 49.78
4-Ja-08 3!594.35 -8.80 8.80 53.45 45.36 1.18 54.09
7-Ja-08 3!518.00 -76.35 76.35 53.45 61.75 0.87 46.40
8-Ja-08 3!401.15 -116.85 116.85 66.60 72.77 0.92 47.79
9-Ja-08 3!456.25 55.10 55.10 78.93 72.77 1.08 52.03
10-Ja-08 3!371.50 -84.75 84.75 55.10 74.77 0.74 42.43
11-Ja-08 3!379.45 7.95 7.95 31.52 85.74 0.37 26.88
14-Ja-08 3!322.35 -57.10 57.10 31.52 68.77 0.46 31.43
15-Ja-08 3!288.40 -33.95 33.95 31.52 73.80 0.43 29.93
16-Ja-08 3!266.50 -21.90 21.90 31.52 62.91 0.50 33.38
17-Ja-08 3!339.30 72.80 72.80 45.28 49.43 0.92 47.81
18-Ja-08 3!336.70 -2.60 2.60 40.38 40.06 1.01 50.20
21-Ja-08 3!010.65 -326.05 326.05 40.38 88.32 0.46 31.37
22-Ja-08 2!862.45 -148.20 148.20 72.80 98.30 0.74 42.55
23-Ja-08 3!034.10 171.65 171.65 122.23 106.54 1.15 53.43
24-Ja-08 2!884.85 -149.25 149.25 122.23 129.60 0.94 48.54
25-Ja-08 3!026.30 141.45 141.45 128.63 156.53 0.82 45.11
28-Ja-08 2!960.60 -65.70 65.70 156.55 138.36 1.13 53.08
29-Ja-08 3!023.20 62.60 62.60 125.23 172.30 0.73 42.09
30-Ja-08 2!995.25 -27.95 27.95 125.23 97.78 1.28 56.16
31-Ja-08 2!951.50 -43.75 43.75 125.23 71.66 1.75 63.60
1-'e(-08 3!017.35 65.85 65.85 89.97 71.66 1.26 55.66
4-'e(-08 3!037.60 20.25 20.25 72.54 45.80 1.58 61.30
5-'e(-08 2!976.80 -60.80 60.80 49.57 49.55 1.00 50.01
6-'e(-08 2!891.45 -85.35 85.35 49.57 54.46 0.91 47.65
7-'e(-08 2!821.15 -70.30 70.30 43.05 57.63 0.75 42.76
8-'e(-08 2!801.20 -19.95 19.95 43.05 56.03 0.77 43.45
11-'e(-08 2!734.05 -67.15 67.15 43.05 60.71 0.71 41.49
12-'e(-08 2!700.40 -33.65 33.65 20.25 56.20 0.36 26.49
13-'e(-08 2!736.35 35.95 35.95 35.95 56.20 0.64 39.01
14-'e(-08 2!847.95 111.60 111.60 73.77 55.28 1.33 57.17
15-'e(-08 2!825.25 -22.70 22.70 73.77 42.75 1.73 63.31
18-'e(-08 2!791.40 -33.85 33.85 73.77 35.46 2.08 67.54
19-'e(-08 2!860.70 69.30 69.30 72.28 39.34 1.84 64.76
20-'e(-08 2!839.20 -21.50 21.50 72.28 27.93 2.59 72.13
21-'e(-08 2!810.60 -28.60 28.60 72.28 26.66 2.71 73.05
22-'e(-08 2!788.60 -22.00 22.00 90.45 25.73 3.52 77.85
25-'e(-08 2!899.35 110.75 110.75 90.02 25.73 3.50 77.77
26-'e(-08 3!040.10 140.75 140.75 106.93 26.49 4.04 80.15
27-'e(-08 2!891.50 -148.60 148.60 106.93 55.18 1.94 65.96
28-'e(-08 2!944.45 52.95 52.95 101.48 55.18 1.84 64.78
29-'e(-08 2!881.35 -63.10 63.10 101.48 65.57 1.55 60.75
3-Mar-08 2!779.85 -101.50 101.50 101.48 83.80 1.21 54.77
4-Mar-08 2!807.90 28.05 28.05 83.13 104.40 0.80 44.33
5-Mar-08 2!870.70 62.80 62.80 71.14 104.40 0.68 40.53
7-Mar-08 2!775.70 -95.00 95.00 47.93 102.05 0.47 31.96
10-Mar-08 2!752.90 -22.80 22.80 47.93 70.60 0.68 40.44
Babasabpatilf!!ppt"ba.#$"
>+
A STUDY ON TECHNICAL ANALYSIS At
11-Mar-08 2!789.60 36.70 36.70 42.52 70.60 0.60 37.59
12-Mar-08 2!891.15 101.55 101.55 57.28 73.10 0.78 43.93
13-Mar-08 2!791.35 -99.80 99.80 57.28 72.53 0.79 44.12
14-Mar-08 2!851.45 60.10 60.10 65.29 72.53 0.90 47.37
17-Mar-08 2!649.90 -201.55 201.55 66.12 104.79 0.63 38.69
18-Mar-08 2!629.15 -20.75 20.75 66.12 86.22 0.77 43.40
19-Mar-08 2!593.90 -35.25 35.25 66.12 89.34 0.74 42.53
24-Mar-08 2!618.65 24.75 24.75 62.13 89.34 0.70 41.02
25-Mar-08 2!687.45 68.80 68.80 51.22 89.34 0.57 36.44
26-Mar-08 2!690.90 3.45 3.45 39.28 85.85 0.46 31.39
27-Mar-08 2!697.60 6.70 6.70 25.93 85.85 0.30 23.19
28-Mar-08 2!704.65 7.05 7.05 22.15 28.00 0.79 44.17
31-Mar-08 2!575.30 -129.35 129.35 22.15 82.30 0.27 21.21
Babasabpatilf!!ppt"ba.#$"
>.
A STUDY ON TECHNICAL ANALYSIS At
ANALYSIS 5 INTERPRETATIONS '
(. ACC '
M$.i&0 A.!a0!'
S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
Muly# (ctober / December.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August#
Kovember / 4ebruary.
Babasabpatilf!!ppt"ba.#$"
>1
A STUDY ON TECHNICAL ANALYSIS At
Fong Term 'oving Average:
• This chart is similar to previous chart but it is long term moving average.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
long term moving average !i.e.# +; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# (ctober / December.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August#
Kovember / 4ebruary.
• The moving average is continuously rising from August to (ctober.
• The moving average is continuously falling from Manuary to 'arch.
Babasabpatilf!!ppt"ba.#$"
>9
A STUDY ON TECHNICAL ANALYSIS At
Fong Term / -hort Term 'oving Average:
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I" / 3!!& color indicates
long term moving average !i.e.# +; days 'I".
• Nhen long term / short term moving averages are drawn# the intersection
of two moving averages generates b)- or s!ll signal.
• 2n the above chart# the scrip price is falling / the short term moving
average intersects the long term moving average from above falls below it
during the month of Mune# August# (ctober# December / 'arch. 8ence#
the s!ll signal is generated.
• The scrip price is rising / the short term moving average intersects the
long term moving average from below during the Mune# August# Kovember
/ 4ebruary# indicating a further rise in price# gives a b)- signal.
• The short term movement may not hold long. 8ence# the investor should
wait for the long term average to turn up before buying or selling the scrip.
Babasabpatilf!!ppt"ba.#$"
>B
A STUDY ON TECHNICAL ANALYSIS At
R!lati.! St!&0t, I&*!/ :
• The 0elative -trength 2ndex !0-2" is a financial technical analysis
oscillator showing price strength by comparing upward and downward
close%to%close movements.
• 2n the above chart# bl)! color line indicates closing price of the scrip.
• 2n above chart# the b$1& shaded area!0-2" crosses the seventy# there may
be downturn / it is the right time to sell the scrip.
• -imilarly# the 0!!& shaded area !0-2" falling below thirty# it is time to
pick up the scrip.
• 2n this chart# the double bottom# double top formations are generated.
• 8ead / -houlder formation is also generated in the month of Manuary /
4ebruary.
Babasabpatilf!!ppt"ba.#$"
>D
A STUDY ON TECHNICAL ANALYSIS At
Rat! $f C,a&0!'
• 2n the above chart# the Bl)! color line indicates the closing price of the
scrip.
• 0(& measures the rate of change between the current price / the price PnG
number of days in past. 0(& helps to find out the overbought / oversold
positions in scrip.
• 2n the above chart# scripGs 0(& reaches the historic high value in the
month of Muly# the scrip is in overbought region / a fall in the value can
be anticipated. 2n Muly# the investor can s!ll the scrip.
• -imilarly# scripGs 0(& reaches the historic low value in the month of
Manuary# the scrip is in oversold region / a rise in the scripGs price can be
anticipated. 2n Manuary# the investor can b)- the scrip.
+. ULTRATECH'
Babasabpatilf!!ppt"ba.#$"
>>
A STUDY ON TECHNICAL ANALYSIS At
M$.i&0 A.!a0!'
S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# L axis indicates month and the S axis indicates the
price of scrip.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
Muly# (ctober / Manuary.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August /
4ebruary.
• 4rom -eptember to Kovember there is a rising trend# from Kovember to
Manuary there is a flat trend and from 4ebruary to 'arch there is a falling
trend.
Babasabpatilf!!ppt"ba.#$"
>:
A STUDY ON TECHNICAL ANALYSIS At
L$&0 T!" M$.i&0 a.!a0!'
• This chart is similar to previous chart but it is long term moving average.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
long term moving average !i.e.# +; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# (ctober Manuary / 'arch.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during 'ay# -eptember
/ 4ebruary.
• The moving average is continuously rising from -eptember to Kovember.
• The moving average is continuously falling in the month of 'arch.
Babasabpatilf!!ppt"ba.#$"
:;
A STUDY ON TECHNICAL ANALYSIS At
• The moving average is flat from 'ay to Muly.
L$&0 T!" 5 S,$t T!" M$.i&0 a.!a0!'
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I" / 3!!& color indicates
long term moving average !i.e.# +; days 'I".
• Nhen long term / short term moving averages are drawn# the intersection
of two moving averages generates b)- or s!ll signal.
• 2n the above chart# the scrip price is falling / the short term moving
average intersects the long term moving average from above falls below it
during the month of August# (ctober / 'arch. 8ence# the s!ll signal is
generated.
• The scrip price is rising / the short term moving average intersects the
long term moving average from below during the -eptember# Kovember /
4ebruary# indicating a further rise in price# gives a b)- signal.
• The short term movement may not hold long. 8ence# the investor should
wait for the long term average to turn up before buying or selling the scrip.
Babasabpatilf!!ppt"ba.#$"
:1
A STUDY ON TECHNICAL ANALYSIS At
R!lati.! St!&0t, I&*!/'
• The 0elative -trength 2ndex !0-2" is a financial technical analysis
oscillator showing price strength by comparing upward and downward
close%to%close movements.
• 2n the above chart# bl)! color line indicates closing price of the scrip.
• 2n above chart# the b$1& shaded area!0-2" crosses the seventy# there may
be downturn / it is the right time to sell the scrip.
• -imilarly# the 0!!& shaded area !0-2" falling below thirty# it is time to
pick up the scrip.
• 2n this chart# the double bottom# double top formations are generated.
• 0eversal 8ead / -houlder formation is also generated in the month of
December / Manuary.
Babasabpatilf!!ppt"ba.#$"
:+
A STUDY ON TECHNICAL ANALYSIS At
• Muly 'onth is over bought region# the investor can sell the scrip.
• 'arch month is over sold region# the investor can buy the scrip.
Rat! $f C,a&0!'
• 2n the above chart# the Bl)! color line indicates the closing price of the
scrip.
• 0(& measures the rate of change between the current price / the price PnG
number of days in past. 0(& helps to find out the overbought / oversold
positions in scrip.
• 2n the above chart# scripGs 0(& reaches the historic high value in the
month of 'ay# the scrip is in overbought region / a fall in the value can
be anticipated. 2n 'ay# the investor can s!ll the scrip.
Babasabpatilf!!ppt"ba.#$"
:.
A STUDY ON TECHNICAL ANALYSIS At
• -imilarly# scripGs 0(& reaches the historic low value in the month of
Manuary# the scrip is in oversold region / a rise in the scripGs price can be
anticipated. 2n Manuary# the investor can b)- the scrip.
• The falling trend is during the march.
Babasabpatilf!!ppt"ba.#$"
:1
A STUDY ON TECHNICAL ANALYSIS At
;. 3RASIM'
M$.i&0 A.!a0!'
S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# L axis indicates month and the S axis indicates the
price of scrip.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# December / Manuary.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Mune# August /
4ebruary.
• 4rom -eptember to Kovember there is a rising trend# from Kovember to
4ebruary there is a flat trend and from 4ebruary to 'arch there is a falling
trend.
Babasabpatilf!!ppt"ba.#$"
:9
A STUDY ON TECHNICAL ANALYSIS At
L$&0 T!" M$.i&0 A.!a0!'
• This chart is similar to previous chart but it is long term moving average.
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
long term moving average !i.e.# +; days 'I".
• 'oving averages are used along with the price of the scrip.
• 2n the above chart# downward penetration of the rising average indicates
the possibility of a further fall. 8ence# the s!ll signal is generated during
August# Kovember / December.
• @pward penetration of a falling average would indicate the possibility of
the further rise. 8ence# the b)- signal is generated during Muly /
-eptember.
• The moving average is continuously rising from -eptember to Kovember.
• The moving average is continuously falling from December to 'arch.
• The moving average is flat from Kovember to Manuary.
Babasabpatilf!!ppt"ba.#$"
:B
A STUDY ON TECHNICAL ANALYSIS At
L$&0 T!" 5 S,$t T!" M$.i&0 A.!a0!'
• 2n the above chart# bl)! color indicates closing price. Pi&% color indicates
short term moving average !i.e.# 1; days 'I" / 3!!& color indicates
long term moving average !i.e.# +; days 'I".
• Nhen long term / short term moving averages are drawn# the intersection
of two moving averages generates b)- or s!ll signal.
• 2n the above chart# the scrip price is falling / the short term moving
average intersects the long term moving average from above falls below it
during the month of Mune# August / Kovember. 8ence# the s!ll signal is
generated.
• The scrip price is rising / the short term moving average intersects the
long term moving average from below during the Mune# -eptember /
'arch# indicating a further rise in price# gives a b)- signal.
• The short term movement may not hold long. 8ence# the investor should
wait for the long term average to turn up before buying or selling the scrip.
Babasabpatilf!!ppt"ba.#$"
A STUDY ON TECHNICAL ANALYSIS At
R!lati.! St!&0t, I&*!/'
• The 0elative -trength 2ndex !0-2" is a financial technical analysis
oscillator showing price strength by comparing upward and downward
close%to%close movements.
• 2n the above chart# bl)! color line indicates closing price of the scrip.
• 2n above chart# the b$1& shaded area !0-2" crosses the seventy# there
may be downturn / it is the right time to sell the scrip.
• -imilarly# the 0!!& shaded area !0-2" falling below thirty# it is time to
pick up the scrip.
• 2n this chart# the double bottom# double top formations are generated.
• 8ead / -houlder formation is also generated in the month of 4ebruary /
'arch.
• -eptember 'onth is over bought region# the investor can sell the scrip.
Babasabpatilf!!ppt"ba.#$"
:>
A STUDY ON TECHNICAL ANALYSIS At
• Mune month is over sold region# the investor can buy the scrip.
Babasabpatilf!!ppt"ba.#$"
::
A STUDY ON TECHNICAL ANALYSIS At
Rat! $f C,a&0!'
• 2n the above chart# the Bl)! color line indicates the closing price of the
scrip.
• 0(& measures the rate of change between the current price / the price PnG
number of days in past. 0(& helps to find out the overbought / oversold
positions in scrip.
• 2n the above chart# scripGs 0(& reaches the historic high value in the
month of Muly# the scrip is in overbought region / a fall in the value can
be anticipated. 2n Muly# the investor can s!ll the scrip.
• -imilarly# scripGs 0(& reaches the historic low value in the month of
Manuary# the scrip is in oversold region / a rise in the scripGs price can be
anticipated. 2n Manuary# the investor can b)- the scrip.
• The falling trend is from (ctober to 4ebruary.
• The rising trend is from Mune to August.
Babasabpatilf!!ppt"ba.#$"
1;;
A STUDY ON TECHNICAL ANALYSIS At
FINDIN3S'
ACC'
• 2n the chart# moving average !short term / long term" was fluctuating
month by month. 2t was rising from August to (ctober / falling from
December to 4ebruary.
• 2n 0-2 chart# the double bottom# double top formations were generated
• 0everse 8ead / -houlder formation was also generated in the month of
Manuary / 4ebruary.
• During the month of -eptember the shares were overbought# so it is the
right time to sell the share.
• During the month of 'arch the shares were oversold# so it is right time to
buy the share
• 2n case of 0(&# the reverse 8ead / -houlder formation was generated.
• Mune month shows rising trend and December / Manuary months shows
falling trend.
ULTATECH'
• The moving average of 1; days / +; days# was flat from 'ay to Mune. 2t
was rising from -eptember to the end of (ctober. 2t was falling from
Manuary to 'arch.
Babasabpatilf!!ppt"ba.#$"
1;1
A STUDY ON TECHNICAL ANALYSIS At
• 2n 0-2 chart# 0everse 8ead / -houlder formation was also generated in
the month of December / Manuary.
• The double bottom# double top formations were generated.
• The Muly 'onth was overbought region; the investor can sell the scrip.
• The 'arch month was over sold region# the investor can buy the scrip.
• 2n 0(& chart# the reverse 8ead / -houlder formation was generated in
December.
• 'ay / Muly months shows rising trend and Manuary / 'arch months
shows falling trend.
3RASIM'
• The moving average of 1; days / +; days# shows flat from (ctober to
Manuary. 2t shows rising trend from -eptember to Kovember. 2t shows
falling trend from Manuary to 'arch.
• 2n 0-2 chart# 8ead / -houlder formation was generated from Manuary to
'arch.
• The double bottom# double top formations were generated.
• The April month was overbought region; the investor can sell the scrip.
• The Mune month was over sold region# the investor can buy the scrip.
• 2n 0(& chart# the reverse 8ead / -houlder formation was generated in
August.
Babasabpatilf!!ppt"ba.#$"
1;+
A STUDY ON TECHNICAL ANALYSIS At
• 0(& shows the rising trend from Mune to Muly / it shows the falling trend
from (ctober to Manuary.
Babasabpatilf!!ppt"ba.#$"
1;.
A STUDY ON TECHNICAL ANALYSIS At
RECOMMENDATION'
• 2t is very difficult for an investor to select any scrip for investment in stock
market. $efore investing# the investor should go for a detailed study of the
scrip# which includes: 4undamental analysis of the company / its return
for past . years.
• A&&:
o According 'oving%Average# the prices of the scrip is falling / the
-hort%Term Average intersect the Fong Term Average on +D
th
'arch +;;> !0s.D:;.;B" from above point / falls below it# so the
sell signal is been indicated. -o# in future the investor is been
advised to sell the share.
o According to 0elative -trength 2ndex !0-2" chart# the 0-2 lies
between 9; / B; region / is been in decreasing trend. There fore
in future the prices may come down very drastically# so investor is
been advised to sell the share.
o According to 0ate of &hange chart# the 0(& is falling from +>
th
march +;;> to .1
st
'arch +;;> with the price of +.9B to +.1B.it
may go into negative range. -o# the investor is been advised to sell
the share.
• @FT0AT5&8:
o According 'oving%Average# the prices of the scrip is falling / the
-hort%Term Average intersect# the Fong Term Average on 1.
th
'arch +;;> !0s.>>9.B;" from above point / falls below it# so the
sell signal is been indicated. 2n future also the investor advised to
sell the share.
Babasabpatilf!!ppt"ba.#$"
1;1
A STUDY ON TECHNICAL ANALYSIS At
o According to 0elative -trength 2ndex !0-2" chart# the 0-2 lies
between 1; / 9; region / is decreasing. 2n future the prices may
come down very drastically# so the investor is been advised to sell
the share.
o According to 0ate of &hange chart# the 0(& is falling from +D
th
march +;;> to .1
st
'arch +;;> with the price of %19.D1 to %11.:9.
2t is in negative range. -o# the investor can sell the share.
• with the price of %B.1B to %1+.91. 2t
is in negative range. -o# the investor is been advised to sell the
share.
Babasabpatilf!!ppt"ba.#$"
1;9
A STUDY ON TECHNICAL ANALYSIS At
LIMITATIONS'
? The duration of time is very limited# which may not suffice the re,uired
tenure to study the &ement -ector.
? 2 have done the price prediction only for one year; from this data we
cannot get the results accurately.
? 2 have compared 0elianceGs three mutual funds# which may not represent
the entire 'utual 4und industry.
? 2 have chosen only &ement -ector &ompanies# whereas there are
numerous sectors in the stock market.
Babasabpatilf!!ppt"ba.#$"
1;B
A STUDY ON TECHNICAL ANALYSIS At
CONCLUSION'
The
A STUDY ON TECHNICAL ANALYSIS At
BIBLIO3RAPHY'
0eference $ooks.
• -ecurity Analysis / 3ortfolio 'anagement
%% $y. 3unithavathy 3andian.
• -ecurity Analysis / 3ortfolio 'anagement
%% $y Donald 5. 4ischer /
0onald M. Mordon
Nebsites.
• www.nseindia.com
• www.investopedia.com
• www.-tock&harts.com
• www.wikipedia.com
• www.sharekhan.com
'aga*ines.
• 4ortune 2ndia
• Dalal -treet
Babasabpatilf!!ppt"ba.#$"
1;:
doc_596538366.doc