a study on technical analysis of equity share price behavior of the select industries
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A STUDY ON TECHNICAL ANALYSIS OF EQUITY SHARE PRICE BEHAVIOR
OF THE SELECT INDUSTRIES
FACULTY GUIDEDR.CHAKRAVARTHI.P
NAME: JN CHANDRAKANTHREG 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
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
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 offer suggestions to investors.
RESEARCH METHODOLGY
• TOOLS USED FOR ANALYSIS• Simple moving average• Relative strength index• Money flow 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
BHARAT PERTOLEUM
3/1/2
013
3/11/2
013
3/21/2
013
3/31/2
013
4/10/2
013
4/20/2
013
4/30/2
013
5/10/2
013
5/20/2
013
5/30/2
013
6/9/2
013
6/19/2
013
6/29/2
013
7/9/2
013
7/19/2
013
7/29/2
013
8/8/2
013
8/18/2
013
8/28/2
013
9/7/2
013
9/17/2
013
9/27/2
013
10/7/2
013
10/17/2
013
10/27/2
013
11/6/2
013
11/16/2
013
11/26/2
013
12/6/2
013
12/16/2
013
12/26/2
013
1/5/2
014
1/15/2
014
1/25/2
014
2/4/2
014
2/14/2
014
2/24/2
014
3/6/2
014
3/16/2
014
3/26/2
014
4/5/2
014
4/15/2
014
4/25/2
0140
20
40
60
80
100
MONEY FLOW INDEX RELATIVE STRENGTH INDEX
Simple moving average: 364.32Closing price: 454.9
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 a investment decisions in this stock.
ONGC
5/1/2
013
5/10/2
013
5/19/2
013
5/28/2
013
6/6/2
013
6/15/2
013
6/24/2
013
7/3/2
013
7/12/2
013
7/21/2
013
7/30/2
013
8/8/2
013
8/17/2
013
8/26/2
013
9/4/2
013
9/13/2
013
9/22/2
013
10/1/2
013
10/10/2
013
10/19/2
013
10/28/2
013
11/6/2
013
11/15/2
013
11/24/2
013
12/3/2
013
12/12/2
013
12/21/2
013
12/30/2
013
1/8/2
014
1/17/2
014
1/26/2
014
2/4/2
014
2/13/2
014
2/22/2
014
3/3/2
014
3/12/2
014
3/21/2
014
3/30/2
014
4/8/2
014
4/17/2
014
4/26/2
0140
20
40
60
80
100
120
MONEY FLOW INDEX RELATIVE STRENGTH INDEX
Simple moving average: 294.94Closing price: 325.1
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
5/1/2
013
5/10/2
013
5/19/2
013
5/28/2
013
6/6/2
013
6/15/2
013
6/24/2
013
7/3/2
013
7/12/2
013
7/21/2
013
7/30/2
013
8/8/2
013
8/17/2
013
8/26/2
013
9/4/2
013
9/13/2
013
9/22/2
013
10/1/2
013
10/10/2
013
10/19/2
013
10/28/2
013
11/6/2
013
11/15/2
013
11/24/2
013
12/3/2
013
12/12/2
013
12/21/2
013
12/30/2
013
1/8/2
014
1/17/2
014
1/26/2
014
2/4/2
014
2/13/2
014
2/22/2
014
3/3/2
014
3/12/2
014
3/21/2
014
3/30/2
014
4/8/2
014
4/17/2
014
4/26/2
0140
102030405060708090
100
MONEY FLOW INDEX RELATIVE STRENGTH INDEX
Simple moving average: 319.13Closing price: 328.05
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
Findings
• For Bharat Petroleum, it is found that as there will be revival after the weak down trend, the investors can make the investments.
• Similarly it is seen in the case of ONGC.• When we see the trends of some sectors (e.g.
Airtel),it is evident that the investors should square of their position.
SUGGESTIONS
• 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
• 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
WEBSITES: www.fairwealthSecurities.com
www.nseindia.comwww.equitymaster.comwww.icharts.inwww.stock charts.comwww.money control.comwww.money.rediff.comwww.investopedia.com