A STUDY OF TECHNICAL ANALYSIS ON EQUITY STOCK AT HDFC SECUIRITIES

byHarish.k

INTRODUCTION

Technical analysis is research of market dynamics that is done mainly with the help of charts and with the purpose of forecasting future price development. Technical analysis comprises several approaches to the study of price movement which are interconnected in the framework of one harmonious theory. This type of analysis studies the price movement on the market by means of analyzing three market factors: price, volumes, and, in case of study of futures contracts’ market, of an open interest (number of open positions). Of these three factors the primary one for technical analysis is the prices, while the alterations in other factors are studies mainly in order to confirm the correctness of the identified price trend. This technical theory, just like any theory, has its core postulates

CONT….

Technical analysts base their research on the following three axioms:

Market movement considers everything The prices move with the trend The history repeats itself

OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVES.

To make a technical analysis of equity stock with respect to public sector enterprise at HDFC.

SECONDARY OBJECTIVES To analysis the price movement of equity stock of last six

months. To study the equity nifty performance of public sector. To analysis the financial performance of last three years. To comparative analysis of the performance of public sector.

SCOPE OF THE STUDY

The scope of the study is the analysis of equity stock through technical analysis which is being conducted to know the stock price movement of particular company scrip value.

This study is helping the investor to analysis the scrip value of particular company

The company performance will be analysis of short term analysis

The period of the study is about three months the data used is the study is retrived from the market terminal of HDFC SECURITIES

RESEARCH METHODOLOGY

Data collection Secondary data:

Data collected from nse website and hdfc terminals.

Period of the study:This data is watch last three month

on hdfc terminal

LITERATURE REVIEW

  Technical Analysis as explained by ³ The technical approach to investing is essentially areflection of the idea that prices move in trends which are determined by the changing attitudesof investors toward a variety of economic, monetary, political and psychological forces. The artof technical analysis ± for it is an art- is to identify trend changes at an early stage and tomaintain an investment posture until the weight of the evidence indicates that the trend has beenreversed.´ A method of evaluating securities by analyzing statistics generated by market activity,such as past prices and volume, Technical analysts do not attempt to measure a security¶sintrinsic value, but instead use charts to identify patterns that can suggest future activity.Technical analysts believe that the historical performance of stocks and markets are indicationsof future performance.

CONT…

Technical Analysis has become increasingly popular over the past several years, as moreand more people believe that the historical performance of a stock is a strong indication of future performance. People using fundamental analysis have always looked at the past performance of companies by comparing fiscal data from previous quarters and years to determine futuregrowth. The difference lies in the technical analyst¶s belief that securities indicators have some practical value as show more than 50% of positive results thenthe relevance of technical tools in trading increases which will be helpful for investors.

CONT…

Investors can successfully trade securities using their knowledge of the security¶s chart,without even understanding what the company does. Although technical analysis is a terrifictool, most agree it is much more effective when used in combination with fundamental analysis

 

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