A STUDY ON TECHNICAL ANALYSIS OF EQUITY SHARE PRICE BEHAVIOR OF

THE SELECT INDUSTRIES

FACULTY GUIDEDR.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 . It’s 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 1st 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

5/1/2013

5/11/2

013

5/21/2

013

5/31/2

013

6/10/2

013

6/20/2

013

6/30/2

013

7/10/2

013

7/20/2

013

7/30/2

013

8/9/2013

8/19/2

013

8/29/2

013

9/8/2013

9/18/2013

9/28/2013

10/8/2013

10/18/2013

10/28/2013

11/7/2013

11/17/2013

11/27/2013

12/7/2013

12/17/2013

12/27/2013

1/6/2014

1/16/2014

1/26/2

014

2/5/2014

2/15/2

014

2/25/2

014

3/7/2014

3/17/2

014

3/27/2

014

4/6/2014

4/16/2

014

4/26/2

014

5/6/2014

5/16/2

0140

102030405060708090

100

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

5/1/2013

5/10/2

013

5/19/2

013

5/28/2

013

6/6/2013

6/15/2013

6/24/2

013

7/3/2013

7/12/2013

7/21/2

013

7/30/2013

8/8/2013

8/17/2

013

8/26/2

013

9/4/2013

9/13/2013

9/22/2

013

10/1/2013

10/10/2013

10/19/2013

10/28/2013

11/6/2013

11/15/2013

11/24/2013

12/3/2013

12/12/2013

12/21/2013

12/30/2013

1/8/2014

1/17/2014

1/26/2

014

2/4/2014

2/13/2014

2/22/2

014

3/3/2014

3/12/2

014

3/21/2

014

3/30/2014

4/8/2014

4/17/2

014

4/26/2

0140

102030405060708090

100

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

3/1/2013

3/12/2

013

3/23/2013

4/3/2013

4/14/2013

4/25/2

013

5/6/2013

5/17/2

013

5/28/2

013

6/8/2013

6/19/2013

6/30/2

013

7/11/2013

7/22/2

013

8/2/2013

8/13/2

013

8/24/2

013

9/4/2013

9/15/2

013

9/26/2

013

10/7/2013

10/18/2013

10/29/2013

11/9/2013

11/20/2013

12/1/2013

12/12/2013

12/23/2013

1/3/2014

1/14/2014

1/25/2

014

2/5/2014

2/16/2

014

2/27/2

014

3/10/2

014

3/21/2

014

4/1/2014

4/12/2

014

4/23/2014

0102030405060708090

100

MONEY FLOW INDEX RELATIVE STRENGTH INDEX

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

5/1/2013

5/10/2

013

5/19/2

013

5/28/2

013

6/6/2013

6/15/2013

6/24/2013

7/3/2013

7/12/2013

7/21/2

013

7/30/2

013

8/8/2013

8/17/2

013

8/26/2

013

9/4/2013

9/13/2013

9/22/2013

10/1/2013

10/10/2013

10/19/2013

10/28/2013

11/6/2013

11/15/2013

11/24/2013

12/3/2013

12/12/2013

12/21/2013

12/30/2013

1/8/2014

1/17/2014

1/26/2

014

2/4/2014

2/13/2

014

2/22/2

014

3/3/2014

3/12/2

014

3/21/2014

3/30/2014

4/8/2014

4/17/2

014

4/26/2

0140

20

40

60

80

100

120

MONEY FLOW INDEX RELATIVE STRENGTH INDEX

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

5/1/2013

5/10/2

013

5/19/2

013

5/28/2

013

6/6/2013

6/15/2013

6/24/2013

7/3/2013

7/12/2013

7/21/2

013

7/30/2

013

8/8/2013

8/17/2

013

8/26/2

013

9/4/2013

9/13/2013

9/22/2013

10/1/2013

10/10/2013

10/19/2013

10/28/2013

11/6/2013

11/15/2013

11/24/2013

12/3/2013

12/12/2013

12/21/2013

12/30/2013

1/8/2014

1/17/2014

1/26/2

014

2/4/2014

2/13/2

014

2/22/2

014

3/3/2014

3/12/2

014

3/21/2014

3/30/2014

4/8/2014

4/17/2

014

4/26/2

0140

102030405060708090

100

MONEY FLOW INDEX RELATIVE STRENGTH INDEX

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, 2nd Edition, New Delhi, Himalaya Publishing House 1999

2. Kothari CR. Research Methods and Techniques, (2nd 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

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