A Study On Technical Analysis of Price Behaviour

A STUDY ON TECHNICAL ANALYSIS
OF EQUITY SHARE PRICE BEHAVIOR

OF THE SELECT INDUSTRIES

FACULTY GUIDE
DR.CHAKRAVARTHI
NAME: JN CHANDRAKANTH
REG NO:9002
Introduction
The Indian capital Market has witnessed a
tremendous growth.
An important recent development has been the
Entry of Foreign Institutional investors are
participants to the primary and secondary
markets for the securities. In the past several
years, investments in developing countries have
increased remarkably. Among the developing
countries India has received considerable capital
inflows in recent years
SCOPE OF THE STUDY
A better understanding of the stock market
To make appropriate investment decisions.
Behavior of equity market
This will help the investors , individuals to
identifying the stocks which would yield them
higher return and lesser risk.

OBJECTIVES
To analyze the share price behavior of the
selected Sectors.
To predict the day to day Fluctuations in the
stock market using Technical Analysis.
To study the price movements in the stock
exchange.
To recapitulate the key findings and offer
suggestions to investors.

COMPANY PROFILE
Fairwealth Group established in 2005, is an investment
solutions firm providing comprehensive investment services in
all asset classes by keeping Client's interest foremost, having
its corporate office at Mumbai and head quarters at Delhi . Its
a leading stock broking firm who started spreading its network
across India starting initially from Delhi in the year 2005.

Fairwealth Group offers an extensive suite of investment
solutions including Retail Broking, Institutional Broking, Online
Trading, MobileTrading, Depository, Distribution, Insurance,
Wealth Management, Real Estate, Advisory, and Loans &
Research
INDUSTRY PROFILE
The Securities Brokerage Industry is cyclical
and comprised of two distinct types of
businesses. Brokerages, also known as
financial services companies, strive to meet
the investing needs of their clients, and
exchanges facilitate securities trading. Net
profits correlate to the performance of the
broader equity market. Some hold up better
than their peers during bear markets.

RESEARCH METODOLGY
TOOLS USED FOR ANALYSIS
simple moving average
money flow index
relative strength index

TIME PERIOD
The daily share prices of above mentioned
companies were taken for a period of nearly
one year from 1
st
May 2013 to 30 the April
2014. The closing prices of share prices were
taken and the future price movements were
analyzed.
DATA ANALYSIS & INTERPRETATION
INFOSYS
0
10
20
30
40
50
60
70
80
90
100
5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014 5/1/2014
MONEY FLOW INDEX RELATIVE STRENGTH INDEX
It is conclude that the stock has shown a sell signal at recent time and will
certainly take time to show another signal

MARUTHI SUZUKI

0
10
20
30
40
50
60
70
80
90
100
5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014
MONEY FLOW INDEX REALTIVE STRENGTH INDEX
It is conclude it is better to wait for the indicators to show some definite signal
before making any buying decisions with the stock.

BHARAT PERTOLEUM
0
20
40
60
80
100
It is conclude that stock is having a weak downtrend which would reverse after
showing a signal l confirmation. Hence it a good time to make a investment decisions
in this stock.

ONGC

0
20
40
60
80
100
120
5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014
It is conclude that stock is having a weak downtrend which would reverse after
showing a signal confirmation. Hence it a good time to make an investment decisions
in this stock.

AIRTEL
0
10
20
30
40
50
60
70
80
90
100
5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013 12/1/2013 1/1/2014 2/1/2014 3/1/2014 4/1/2014
To conclude the stock is having a trend which is very weak and a trend reversal is
confirmed by the indicators. hence it is in sell position

SUGGESTIONS

The present study on the simple moving average model
applied on selected company's scripts would help the
investors to take investment decision. It is suggested
that the investors can invest in the shares that shows a
definitive signal of buy or sell decisions.
It is also advised for the investors to hold the stock
which keep fluctuating unless until the stock follows
definite bearish or bullish trend.
And also the investor can make investment not only
following a particular indicator but by confirming the
signal with several indicators for better returns.

CONCLUSION

In India most of the industries require huge amount of
investments. Funds are raised mostly through the issue of
share. An investor is satisfied from the reasonable return
from investment in shares. Speculation involves higher risks
to get return on the other hand investment involves no
such risks and returns will be fair. An investor can succeed
in his investment only when he is able to select the right
shares. The investors should keenly watch the situations
like market price, economy, company progress, returns, and
the risk involved in a share before taking decision on a
particular share. This study will help the investors know
the behavior of share prices and thus can succeed.

BIBLIOGRAPHY

BOOKS FOR REFERENCE

1. Avadhani VA, Investment management, 2
nd
Edition, New Delhi, Himalaya
Publishing House 1999

2. Kothari CR. Research Methods and Techniques, (2
nd
Edigion, New Delhi, Wishwa
prakashan Publishing 2001)

3. Uma Sekaran, Research Methods for Business, (NewYork: John wiley & sons inc.,
2000)

4. Bennet James.A and sias Richard W.Financial Analysts Journal (Vol 57 issue 6, pp
64 78, 2001)

5. Daigler, Robert T.Financial Analysts Journal, (Vol 4 Issue 3 PP 169-183,1981 ).

6. Mieko Tanaka Yamawaki and Saiji Tokuoka, Knowledge Based information and
Engineering Systems (Volume4693, PP 597-603,2007).

WEBSITES:
www.fairwealthSecurities.com
www.nseindia.com
www.equitymaster.com
www.icharts.in
www.stock charts.com
www.money control.com
www.money.rediff.com
www.investopedia.com

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A STUDY ON TECHNICAL ANALYSIS

OF EQUITY SHARE PRICE BEHAVIOR

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