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    A STUDY ON TECHNICAL ANALYSIS IN COMMODITY MARKET (GOLD M)

    WITH REFERENCE TO INDIA INFOLINE Ltd. [email protected]

    GATES INSTITUTE OF TECHNOLOGY, MBA 2013-2015  9063457844 Page | 1

    A STUDY ON TECHNICAL ANALYSIS IN

    COMMODITY MARKET (GOLD M) WITH

    REFERENCE TO INDIA INFOLINE Ltd

    PROJECT REPORT

    A project report submitted in partial ful f il lment of the requirements for the

    degree of MBA in JNTU Anantapuramu

    Submitted ByV.RAMANJINEYULU

    REGD.NO: 13F21E0062

    Under the Esteemed Guidance of

    Miss.K.S. HARITHA, MBA

    Assistant Professor

    DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION 

    GATES INSTITUTE OF TECHNOLOGY, GOOTY

    (Approved A.I.C.T.E, and Affiliate to JNTU Anantapur) 

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    A STUDY ON TECHNICAL ANALYSIS IN COMMODITY MARKET (GOLD M)

    WITH REFERENCE TO INDIA INFOLINE Ltd. [email protected]

    GATES INSTITUTE OF TECHNOLOGY, MBA 2013-2015  9063457844 Page | 2

    GATES INSTITUTE OF TECHNOLOGY, GOOTY

    CRETIFICATEThis is to certify that project entitled “TECHNICAL ANALYSIS, GOLD (M)” 

    has been submitted by

    V.RAMANJINEYULU

    13F21E0062

    In the fulfillment of the requirement for the award of degree for the award

    of Master of Business Administration in MBA department from “GATES

    INSTUTE OF TECCHNOLOGY” Gooty during the academic year 2013-

    2015.

    Internal Guidance of Head of the Department

    Miss. K.S. HARITHA Dr.S. Md.Ghouse

    M.B.A. M.A.(Eco), M.B.A, PhD

    Assistant professor, Department of MBA,Department of MBA, GATES Institute of technology,

    GATES Institute of technology, Gooty, Anantapuramu (Dist).

    Gooty, Anantapuramu (Dist).

    EXTERNAL EXMINAR1:

    EXTERNAL EXMINAR2:

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    A STUDY ON TECHNICAL ANALYSIS IN COMMODITY MARKET (GOLD M)

    WITH REFERENCE TO INDIA INFOLINE Ltd. [email protected]

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    DECLARATION

    I hereby declare that this project work entitled “TECHNICAL ANALYSIS IN COMMODITY

    MARKET GOLD(M) WITH REFRENCE TO INDIA INFOLINE Ltd” carried out under guidance of

    my faculty Mss. K.S. HARITHA, M.B,A, Assistant professor this report neither full nor in part has

    ever been submitted for award of any other degree of either this university (or) any other university.

    V.RAMANJINEYUU

    13F21E0062

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    A STUDY ON TECHNICAL ANALYSIS IN COMMODITY MARKET (GOLD M)

    WITH REFERENCE TO INDIA INFOLINE Ltd. [email protected]

    GATES INSTITUTE OF TECHNOLOGY, MBA 2013-2015  9063457844 Page | 4

    ACKNOWLEDGEMENT

    This satisfaction and exhilaration that accompanies the successful completion of all my tasks would

     be incomplete without mentioning the people who made it possible constant guidance and

    encouragement, crowned all my effects with success.

    I am thankful to our beloved correspondent sir Sri. V.K. SUDHEER REDDY and Principal Dr.M

    RAMESH, M.E, P.H.D of Gates institute of technology, Gooty. For his consistent help and

    encouragement to complete the project work.

    I am very thankful to Dr.S.Md. GHOUSE, M.A, M.B.A, PhD, HOD of MBA Dept. GATES Institute

    of technology, Gooty. For his valuable guidance and suggestions, analyzing and testing throughout

     period, till end of the project work.

    I wish to heartful sincere thanks to my visiting faculty, guide Miss. K.S. HARITHA, M.B.A,

    Assistant professor, GATES Institute of technology, Gooty. For her valuable inputs guide support and

    cooperation all along project. This project would not have been possible without her help.

    I would like to express our sincere thanks to the faculty member of M.B.A Dept. who had helped me

    to complete the project work successfully.

    V.RAMANJINEYULU

    13F21E0062

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    A STUDY ON TECHNICAL ANALYSIS IN COMMODITY MARKET (GOLD M)

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    S.NO PARTICULARS PAGE NUMBERS

    CHAPTER 1INTRODUCTION

    1.1 Introduction1.2

     

    Objective of the study1.3

     

    Scope of the study1.4

     

     Need of the study1.5

     

    Limitation of the study1.6

     

    Research Methodology

    2 -16 

    CHAPTER 2 REVIEW OF LITERATURE 17-18 

    CHAPTER 3 INDUSTRY AND COMPANYANALYSIS 19-34 

    CHAPTER 4 ANALYSIS AND

    INTERPRETAIONS 35 -52 

    CHAPTER 5

    FINDINGS, SUGGESTIONS &

    CONCLUSIONS

    5.1 Findings5.2 Suggestions5.3 conclusion5.4 Bibliography/References

    53-57

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    CHAPTER 1

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    A STUDY ON TECHNICAL ANALYSIS IN COMMODITY MARKET (GOLD M)

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    1.1 INTRODUCTION OF GOLD:

    India, a commodity based economy where two-third of the population depends on agriculture

    commodities, surprisingly has an under developed commodity market. Unlike the physical market,

    futures markets trade commodity are largely used as risk management mechanism on either physical

    commodity itself or open in commodity stock.

    This project report describes the functionality of the commodities market and how the commodities

    are traded on the exchange. The idea is to understand the importance of commodity derivatives and

    learn about the market till early 70‟s. Its development and growth was shunted due to numerous

    restrictions earlier. Now, with most of these restrictions being removed, there is tremendous potential

    for growth of this market in the country.

    Indian market have recently thrown open a new avenues for retail investors and trades to participate.

    For those who want to diversify their portfolio beyond shares, bounds and real estate, commodities

    are the best option.

    For retail investors could have done very little to actually invest to commodities such as gold and

    silver or oil seeds in the future market. This was nearly impossible in commodity except for gold and

    silver as there was particularly no retail avenue for putting in commodities.However, nationally multi-commodity exchange became operational:

       National multi-national commodity exchange of India (NMCE).

       National commodity and derivative exchange (NCDEX).

      Multi commodity exchange (MCX).

    With the setting up of these exchanges in the country, retail investors can how trade in commodity

    futures without having physical stocks, like any other markets, the one for commodity futures plays a

    valuable role in information pooling and risk sharing. The market mediates between buyers and

    sellers of commodities, and facilities decision related storage and consumption of commodities.  

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    COMMODITY:

    Commodity play important role in our daily lives. They can be found literally all over the world, and

    can be traded on the global marketplace as part of a diversified investment portfolio. In fact billions

    of dollars are invested in commodity every day.

    Where they can be traded on either spot (real-time) or future (optional) markets, most individual

    commodities are traded in the form of futures, where what is being traded is not commodity itself but

    rather a contract to buy or sell it for a certain price by a stated date in the future. This carrier the

     potential for wild market fluctuations, but it also offer exchange opportunities for investors willing to

    ride out market volatility in anticipate of rewards, like any investment, the goal in commodities

    trading is to” buy low and sell high”. The difference with commodities is that they are highly

    leveraged and trade in contract sizes instead of shares.

    Investors can buy and sell positions whenever the markets are open, so there‟s no chance of walking

    up one morning to find 10,000 bushels of corn the front lawn 

    COMMODITY MARKET:

    A commodity market is a market that trade in primary rather than manufactured products. Soft

    commodities are agricultural products such as wheat, coffee, cocoa and sugar; hard commodities are

    mined, such as (gold, rubber and oil). Investor‟s access about 50 major commodity markets

    worldwide with purely financial transactions increasingly outnumbering physical trades in which

    goods are delivered. Future contracts are the oldest way of investing in commodities. Futures are

    secured by physical assets. Commodity markets can include physical trading and derivatives trading

    using spot prices, forward, futures and options on future. Farmers have used a simple form of

    derivative trading in the commodity market for centuries for price risk management.

    A financial derivative is a financial instrument whose value is derived from a commodity termed anunderline. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number

    of derivatives are traded via clearing house some with central counterparty clearing, which provides

    clearing and settlement services on a futures exchange, as well as off-exchange in the OTC markets.

    Derivatives such as future contracts, swaps, exchange-traded commodities (ECT), and forward

    contracts have become the primary trading instruments in commodity markets. Futures are traded on

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    regulated commodities exchanges. Over-the-counter (OTC) contracts are “privately negotiated

     bilateral contracts entered into between the contracting parties directly” 

    Exchange-traded funds (ETFs) began to features commodities in 2003. Gold ETFs are based on

    “electronic gold” that does not entail the ownership of physical bullion, with its added costs of

    insurance and storage in repositories such as the London bullion market. According to the World

    Gold Council, ETFs allow investors to be exposed to the gold market without the risk of price

    volatility associated with gold as a physical commodity. 

    KEY ASSUMPTIONS AND HISTORICAL BACKGROUND: 

     

    Before 1800, gold was the real money, and paper money was a rarity and rather unstable

    unless strictly backed by gold or silver.

      Between 1800-1932 it was a largely free, but unregulated market, and gold was treated the

    same way as money, paper money was gold or silver backed, and gold was the ultimate

    currency

      Between, 1932-1971 the market was a command and control system, a governmental cartel,

    along with limited sub-regional black markets. Gold possession is prohibited in several

    countries for private persons, unless in jewelry. Gold was not easily traded over state bordersduring this period. However, in many countries, gold was seen as the only true kind of money.

      After 1971 it is for most practical purposes, a free market, and movement of gold is relatively

    unrestricted. However, for large transactions, the invisible hand of a central bank cartel was

    still at times seen there. Trade was internationally free, but fluxes are greatly influenced by

    central bank sales and purchases. Some countries, not being free trade countries and several

    countries with dictatorship have restrictions on moving gold across their borders: such

    countries are United States, Russia, India, China, Brazil, Cuba, North Korea, and in addition

    some countries have limitations on private ownership of gold: Russia, Cuba, North Korea. In

    many countries with weak, none or chaotic government and economy, gold, Euro and Dollars

    remained as the only true currencies.

      Paper gold, which existed through the bank notes being gold certificates since 1830 to around

    1935, and was available to the public along with minted gold in most of the great powers. The

    old paper gold was to a large degree backed by central bank physical gold holdings for most

    of the time. The gold monetary standard was abandoned in Europe in 1925 and in the USA in

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    1932, when paper monetary volume expansion made it impossible to back every banknote

    with physical gold. Gold was used as a clearing currency between national banks until 1971,

    when the United States cancelled that system. After 1971, US dollar was only pegged to

    global social trust, the gold backing being gone. Paper gold reemerged after 1973 as a separate

    market for gold certificates, being like banknotes with only a gold value printed on them, as

    well as metal accounts, metal loans and forward contracts for gold. This was originally not

    available to the public, but only to gold processing companies and financial institutions.

      There is not full alternatively in the gold market, as only gold is the real magic money Metal

    in the eye of the public, and beside silver the only money a government cannot corrupt andwhich also survives a governmental collapse.

      There is a limited financial substitute in silver and in modern times by small amounts of

     platinum and palladium as bearers of monetary value in solid physical manifestation

      The total physical amounts of all gold, silver and platinum are very limited

     . Gold is sold as physical metal as well as paper gold, ownership to gold as shown on a metal

     bank account. The amount on the account is supposed to have a corresponding amount of

     physical metals somewhere if the trader is a serious trader. CHARACERISTICS OF GOLD MARKET: 

      Gold market is highly liquid and gold held by central banks, other major institutions and retail

     jewelry keep back to the market. 

      Due to large stocks of gold as against its demand, it is argued that the core driver of the real

     price of gold is stock equilibrium rather than flow equilibrium. 

      Economic forces that determine the prices of gold are different from, and in many cases

    opposed to the forces that influence most financial assets.  

    IMPORTANT GOLD MARKETS IN THE WORLD:

      London as the great clearing house. 

       New York, the home of futures trading. 

      Istanbul, Dubai, Singapore, India, Hong Kong as doorways to high consuming regions. 

      Tokyo where TOCOM sets the mood of Japan. 

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    1.2 OBJECTIVE OF THE STUDY: 

     

    To study the performance of gold. 

      To predict the future performance of gold by Technical Analysis. 

      To suggest the investor to Buy, Sell or Hold the position of gold.  

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    1.3 SCOPE OF THE STUDY:

    The scope of the study is limited to Commodity market. Here the study mainly focused on Gold

    M. The study is done only based on the information collected by MCX market. The scope of the

    study includes only technical analysis with using the indicators of Moving averages and RSI

    (Relative Strength Index).

    Calculations for 5 months that is Jan-1-2015 to May-15-2015

    .

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    1.4 NEED FOR THE STUDY:

    Gold is a precious metal per excellence and remain the ultimate safe haven asset, as well as

    traditionally consuming metal. It has been reserved as a symbol of wealth and prosperity. Its

    historical significance and electrical conductivity ensures that it will be in demand for long term. The

    simple fact that is rare and beautiful metal will always keep it, as an investment, gold has cyclically

    come into and out of favor, and has its boom in the market.

    Like any investment, the goal of investors to invest in gold is to buy low and sell high. It helps to

    reduce the risk, to take buy, sell and hold decisions to the investors.

    It also helps to understanding the fluctuations of Gold prices by interpreting the different indicators

    like Moving Averages, Rate of Change Indicators and Relative Strength Index (RSI) etc. ultimately

    this would help to provide the approximate suggestions to the Gold investors.  

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    1.7 METHODOLOGY:

    Research is a systematic gathering, recording, analyzing and interpretations of the data about a

     particular area in industries or where to find solutions to different kinds of decisions making

     problems.

    Source of Data:

    The data has been collected in two ways, those are

    Primary Data:

    The information requirements for solving business problems are identified in the problem formulated

    stage. In this stage, the source from which information can be found are identified data for researched

    can be collected.

    Secondary Data:

    Secondary data is defined as existed data; secondary data is collected from already available sources

    such as published papers, journals, magazines reports, company literature etc.

    For this project I collected data from secondary sources only, mainly I collected data from websites.

    TECHNICAL ANALYSIS:

    Technical analysis can be defined as an art and science of forecasting future prices based on an

    examination of the past price movements. Technical analysis is not astrology for predicting prices.

    Technical analysis is based on analyzing the current demand and supply of commodities, stocks,

    indices, future or any tradable instruments. Technical analysis involve putting stock information like

     prices, volumes and open interest on a chart and applying various patterns and indicators to it in order

    to assess the future prices movements. The time framing in which technical analysis is applying man

    range from intraday (5-minites, 10-minites, 15-minities, 30-minities, or hourly), daily, weekly or

    monthly price data to many years.There are essential two methods of analyzing investment opportunity in the security market viz

    fundamental analysis and technical analysis. Fundamental information likes financial and non-

    financial aspects of the company where as technical information ignores fundamental and focuses on

    actual price movements only. The technical analyst assumes that it is 90 percent of psychological and

    10 percent logical. Technical analysis is a method of evaluating securities by analyzing the statistics

    generated by market activity, such as past price and volume. Technical analysis does not attempt to

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    measures a securities intrinsic value, but instead use charts and other tools to identify patterns that can

     be suggested future activity. TECHNICAL ANALYSIS:

    It is process of analyzing the price behavior in the market which influenced by the no of factors and

    different information. Technical analysis belies that market is determined by the buying and selling

    forces acting in the market and not by any other factor like the company or Industry or Economy.

    TECHNICAL ANALYSIS

    TIMING OF INVESTMENT

    DECISSION

    DECISSION MAKING

    STUDY OF MARKET SENTIMENTS

    BULLISHNESS

    BEARISHNESS, etc.

    LIQUIDITY IN THE

    MARKET

    VOLUME TURNOVER

    PRICE TRENDS, etc.

    BUY SELL HOLD

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    TOOLS USED FOR THIS ANALYSIS:

     

    MOVING AVERAGESI. Short term moving averages.

    II. Long term moving averages.

      RELATIVE STRENTH INDEX (RSI).

    MOVING AVERAGES:

    Moving averages of a number specified historical time periods from the point on chart. Moving

    averages offer an indicator of the clear directions and scope of the trend in the market.

    1.  Short Term Moving Averages (SMA) is calculated for 10 to 15 days period.

    2. 

    Long Term Moving Averages (LMA) is calculated by 60 days to 125 days period.

    CALCULATION PROCESS:For calculation of a moving average the data for required days will take and a simple average will be

    calculated by divining sum of days for which moving averages has to be calculated by number of

    days.

    Then averages will be floated in the graph and it can be compare with the index moving

    averages or stock price of identified the Buy or Sell signal.

    In the same manner index moving averages (MEX-SX) has to be calculated then both have to be

    shown in the graph.

    DECESIONS MAKING: 

    If stock prices Moving averages interpret the index moving averages from below and goes in upward

    direction „Buy‟ signal can be identified investor can „Buy‟ at this movement. 

    If stock price intercepts the index moving averages from and falls below „Sell‟ signal can be

    identified.

    Investor sells the shares of the company on this movement. Moving averages can also be compared

    with the stock closing prices.

    LONG TERM MOVING AVERAGES v/s SHORT TERM MOVING AVERAGES:

    Long Term Moving Averages and Short Term Moving Averages can also compared for Buy or Sell

    signal decisions.

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    Chart1: UPWORD DIRECTIONS of SMA and LMA. 

    P

    ` R

    I

    ` C SMA

    E

    LMA

    T I M E

    INTERPRETAION:

    If Short Term Moving Averages intercept the Long Term Moving Averages from above table and it

    goes upward direction „Buy‟ signal can be identified, in these movement investors will be ready to

    „Buy‟ signal for investors.

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    Chart2: DOWNWORD DIRECTIONS of SMA and LMA.

    P

    R LMA

    I SMA

    C

    E

    T I M E

    INTERPRETAION:

    If Short Term Moving Averages intercept the Long Term Moving Averages from above table and it

    shows downward direction and it can be generated „Sell‟ signals in these movements the investors

    will be sold their stocks. 

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    RELATIVE STRENTH INDEX (RSI):

    R elative strength index (RSI), was developed by J.Welles Wilder in 1978 and was later discussed in

    his book new concepts in Technical Trading systems. The mane “relative strength index” is slightly

    misleading as the RSI does not compare the relative strength of two securities, but rather the strength

    of a signal security to past data. It is calculated by measuring the ratio of average price gains against

    average price losses over specific rolling period. We have set our default period at 14 days as

    recommended by wells wilder but this can be varied to suit particular sock or futures.

    The RSI is an oscillator that ranges between 0 and 100. There are two main signals that can be

    generated from this indicator.

    Oversold/Overbought signals

    When the RSI turns up, developing a trough below 30, it suggested the price is oversold and likely to

    rally. Conversely, when the RSI turns down, making a peak above 70, it suggested that the price is

    overbought and likely to drop.

    RSI calculation by using the following formula: 

    RSI= 100-[100/1+RS]Where,

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    1.5 LIMITAIONS OF THE STUDY: 

      This study is limited to Gold M in commodities. 

      This study had a limited construction for 60 days. 

      Forecasting of future price may or may not accurate. 

      The study based on only on performance of gold, not with other commodities. 

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    CHAPTER II

    REVIEW OF LITERATURE 

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    REVIEW OF LITERATURE:

    Several studies have been carried out to apply Technical Analysis in practice in various financial

    Markets. A few of them are quoted below:

    Kavajecz and Odders-White (2004) show that support and resistance levels coincide with peaks in

    depth on the limit order book 1 and moving average forecasts reveal information about the relative

     position of depth on the book. They also show that these relationships stem from technical rules

    locating depth already in place on the limit order book.

    Practitioners‟ reliance on technical analysis is well documented. Frankel and Froot (1990) noted

    that market professionals tend to include technical analysis in forecasting the market.

    The guiding principle of technical analysis is to identify and go along with the trend. When there is a

    trend, whether started by random or fundamental factors, technical methods will tend to generate

    signals in the same direction. This reinforces the original trend, especially when many investors rely

    on the technical indicators. Thus, even if the original trend were a random occurrence, the subsequent

     prediction made by the technical indicator could be self-fulfilling. This self-fulfilling nature leads to

    the formation of speculative bubbles (see, for example, Froot et al., 1992). Conrad and Kaul (1988)

    found that weekly returns were positively auto correlated, particularly for portfolios of small stocks.

    Lui and Mole (1998) report the results of a questionnaire survey conducted in February 1995 on the

    use by foreign exchange dealers in Hong Kong of fun-demented and technical analyses. They found

    that over 85% of respondents rely on both methods and, again, technical analysis was more popular at

    shorter time horizons. 

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    CHAPTER III

    INDUSTRY & COMPANY

    ANALYSIS

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    MULTI COMMODITY EXCHANGE OF INDIA (MCX-SX)

    MCX-SX stock exchange Limited (MCX-SX), India‟s new stock exchange, is recognized by Security

    Exchange of India (SEBI) under section 4 of securities contracts (Regulation) Act 1956. The

    exchange was notified as a “recognized stock exchange” under section 2(39) o f the companies Act

    1956 by Ministry of Corporate Affairs, Govt. of India on December 21, 2012. In line with global best

     practices and regulation requirements, clearing and settlement of traders on the exchange are

    conducted through a separate clearing corporation- MCX-SX clearing Corporation Ltd.

    MCX-SX offers an electronic, transparent an hi-tech platform for trading in Capital Market, Future&

    Options, and currency Derivatives and Debt Market segments. The exchange has also received in-

     principal approval from SEBI for operationalizing SME trading platform MCX-SX commenced

    operations in the Currency Derivatives (CD) segment on October 7, 2008, under the regulatory

    framework of SEBI and Reserve Bank of India (RBI).

    MCX-SX launched Capital Market segment, Future and Options segment and flagship index „SX40‟

    on February 9 2013 and commenced trading from February 11 2013. Trading in the „SX40‟ index

    derivatives began from May 15 2013 is free-float based index consisting of 40 large cap, liquid stock

    representing diverse sector of the economy. Its base value is, 10,000 and base date is March 31 2010.The debt market segment market segment of MCX-SX was launched on June 7 2013, and trading

    commenced from June 10 2013.

    MCX has also set up in joint venture the MCX stock Exchange. Earlier spinoffs from the company

    include the National Spot exchange for bullion and agriculture commodities, and Bulk Handling

    Corporation (NBHC) India‟s largest collateral management company which provides bulk storage

    and handling of agricultural products.

    In February 2013, MCX has come out with a public issue of 7,427,378 Equity shares of Rs. 10 face

    value in price band of 860-1032 Rs. Per equity share to raise around $ 134 million. It is the first ever

    IPO by an Indian exchange.

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    PRODUCTS OF MCX-SX

    MCX-SX currently Futures contracts on MCX-SX enable Indian Imports, Exports, Corporate, banksand other participate to effectively hedge their risks arising out of volatile currency prices. These

    contracts also offer a better flexible than the currency contracts traded on Over-The-Counter (OTC)

    market as the structure and pricing of an exchange-traded contract is more transparent.  

    PRODUCTS OF MCX-SX

    Oil & Oil Seeds  Others  Fiber  Energy  Bullions  Metals 

    Crude oil Almond Kapas ATF Gold Aluminum

    Kapasia Khail Guar Gum Cotton (29mn) Breant Oil Gold M Aluminum M

    Refined soya oil Gaur Seed Spices Crude Oil Platinum Copper

    Soya bean Melted Method Caramon Gasoil Silver Copper M

    Flakers Coniander Heating Oil Sliver M Iron Ore

    Fiber  Mentha Oil Planation Imported Thermal coal Lead

    Kapas Potato (Agri) Rubber Natural Gas Weather Lead M

    Cotton(29) Potato (Takeshwar) Carbon(CER) Silver Micro 

    Cereals Sugar M Carbon (CFI) Silver 1000

    Barley Nickel 

    Wheat Nickel M 

    Maize-Feed Industrial

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    Trading System in MCX-SX:

    The trader work station (TWS) is the application through which members access the trading platform,

     place order and execute trades. The TWS offers a multitude of user friendly trading features which

    includes commodity price ticker, market watch screen displaying best buy, best sell, last trade price,

    volume for the day, open interest etc,, top gainer and looser contracts, net position, on-line backup

    facility etc.

    1.  Trading System:

    The best five buy and sell orders for every contract available for trading are visible to the

    market and orders are matched based on price time priority logic. Orders can be placed with

    time conditions and or price conditions.

    2.  Margins:

    MCX follows a comprehensive and strength margining system for all futures contracts trade

    on the Exchange platform. Actual margining and position monitoring is done on an on-line

     basis. For the purpose of computing and levying the margins, MCX uses SPAN® (Standard

    Portfolio Analysis of Risk) system which follows a risk-based and portfolio-based approach.

    The initial margin requirements are based on a worst-case loss scenario of portfolio at clientlevel to cover VAR (Value at Risk) over one day horizon, subject to a minimum base margin

    defined by FMC for the respective commodity. The SPAN Risk Parameter File (RPF) is

    generated by the Exchange periodically at predefined timings and RPF files so generated to

    the members using the FTP service and on the exchange websites. In addition to SPAN

    margins, MCX levies Additional margins and or special margins whenever deemed necessary

    considering the volatile and price movements in the commodities. Such margins are also

    levied as per the direction of FMC Tender Period margins and Delivery period margins are

    levied on contracts nearing expiry to ensure non default in commodity delivery.

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    NATIONAL COMMODITY STOCK EXCHANGE LIMITED (NCDEX):

     National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity

    exchange based in India. It has an independent Board of Directors and professional management, who

    have interest in commodity markets. It provides a commodity exchange platform for market

     participants to trade in commodity derivatives. It is a public limited company, incorporated on 23

    April 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of

    Business on 9 May 2003, and began operations on 15 December 2003. NCDEX is the only

    commodity exchange in the country promoted by national institutions. NCDEX is regulated by

    the Forward Markets Commission (FMC), and is subject to the Companies Act 2013, Stamp Act,

    Contracts Act, Forward Commission (Regulation) Act, and various other laws.

    KEY NOTES OF NCDEX:

       NCDEX had 848 registered members and client base of @ 20 Lakh as of 31 July 2013.

      It offers trading on more than 49,000 terminals across 1,000 centers in India as of 31 July 2013.

     

    It facilitates deliveries of commodities through a network of over 594 accredited warehouses

    through eight warehouse service providers, with holding capacity of around 1.5 million tons.

      It offers average deliveries of 1 lakh MT at every contract expiry. Average delivery ratio for Q1

    of 2013-14 is 98%.

       NCDEX has offices in Mumbai, Delhi, Ahmedabad, Indore, Hyderabad, Jaipur, 

    and Kolkata. 

    PRODUCTS & SERVICES:

     

     NCDEX offers futures trading in 31 agricultural and non-agricultural commodities.

       NCDEX also offers as an information product, an agricultural commodity index. This is a value-

    weighted index called DHAANYA and is computed in real time using the prices of the ten most

    liquid commodity futures traded on the NCDEX platform. Dhaanya aims to provide a reliable

     benchmark for India's agri-commodities.

    http://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Companies_Act,_1956http://en.wikipedia.org/w/index.php?title=Certificate_for_Commencement_of_Business&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Certificate_for_Commencement_of_Business&action=edit&redlink=1http://en.wikipedia.org/wiki/Forward_Markets_Commission_(India)http://en.wikipedia.org/wiki/Companies_Act_2013http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Hyderabadhttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Commodity_futureshttp://en.wikipedia.org/wiki/Commodity_futureshttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Hyderabadhttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Companies_Act_2013http://en.wikipedia.org/wiki/Forward_Markets_Commission_(India)http://en.wikipedia.org/w/index.php?title=Certificate_for_Commencement_of_Business&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Certificate_for_Commencement_of_Business&action=edit&redlink=1http://en.wikipedia.org/wiki/Companies_Act,_1956http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodities_exchange

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    COMPANY PROFILE

    INDIA INFOLINE LIMITED(Formerly known as India Infoline Investment Services Limited)

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    IIFL Holdings Limited (formerly known as India Infoline Limited) is the apex holding company of

    the entire IIFL Group, which is a leading financial services company in India, promoted by first

    generation entrepreneurs. We have a diversified business model that includes credit and finance,

    wealth management, financial product distribution, asset management, capital market advisory and

    investment banking.

    We have a largely retail focused model, servicing over 2 million customers, including several lakh

    first-time customers for mutual funds, insurance and consumer credit. This has been achieved due to

    our extensive distribution reach of over 2,700 business locations and also innovative methods like

    seminar sales and use of mobile vans for marketing in smaller areas.Our evolution from an entrepreneurial start-up to a market leadership position is a story of steady

    growth by adapting to the changing environment, without losing the focus on our core domain of

    financial services. Our NBFC and lending business accounts for 71% of our consolidated income in

    FY14 and has a diversified product portfolio rather than remaining a mono-line NBFC. We are a

    leader in distribution of life insurance and mutual funds among non-bank entities. Although the share

    of equity broking in total income was only 11% in FY14, IIFL continues to remain a leading player in

     both, retail and institutional space.

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    Location Mumbai

    Corporate office IIFL Center, B Wing, Trade Center, Kamala Mills Compound off

    senapati Bapat Marg, Lower parel, Mumbai-400013. Maharashtra.

    Registered office Industrial Area, Wagle Estate, Thane- 400 604. Maharashtra

    Year of incorporation 1995

    Industry Financial Services

    Key Business Credit & Finance, Wealth Management, Financial Product Distribution,

    Capital market Related.

    Employees 14,000+

    Business location Around 4,000 locations in 900 cities and towns.

    Global reach Singapore, Dubai, New work, Mauritius, UK, Hong Kong, Switzerland.

    Listings NSE, BSE 

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    Financial Performance Track Record from 2005 to 2014

    Revenues

    EBT

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    PAT

    NEWWORTH

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    ROE

    Segmental revenue split

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    IIFL Holdings Ltd is divided into 9 companies.

    1. 

    India Infoline Ltd.

    2.  India Infoline Finance Limited: India Infoline housing Finance Limited is under this company.

    3. 

    India Infoline Insurance brokers Ltd.

    4.  India Infoline Commodities Ltd.

    5.  IIFL Assets management company & IIFL MF

    6. 

    IIFL Private Wealth management Ltd.

    7.  IIFL (Asia) Pte Ltd.

    8. 

    IIFL Inc. (US) investment Advisors Ltd.

    9.  IIFL (UK)

    IIFL Business

      Mortgage Loans, which includes Housing Loans and Loans against Property.

      Commercial Vehicle Finance, which includes Loans against new and used commercial

    vehicles and buses, this includes loans on small, light and medium and heavy commercial

    vehicles

     

    Gold Loans, which includes finance against security of mainly used gold ornaments.

      Capital Market Finance, which includes Loans against Securities, Margin Funding, IPO

    financing and other structured lending transactions.

     Healthcare Finance/Medical Equipment Finance, which includes finance for medical

    equipment and project funding in the healthcare sector. 

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    AWARDS AND RECOGNITION:

     

    Three of the analysts from the Pharm, Banking and Oil & Gas sector respectively won the

    India's Best Market Analyst Awards 2013 by Zee Business

      Best Wealth Management House by The Asset Triple A –  2012

     

    Best Customer Service in Financial Services, 2013 –  Retailer Customer Service Awards

      Best Broking House with Global Presence, 2012 –  D&B

      BSE Group felicitated IIFL for being one of the top performers in the 'Equity FI' category on

    Mahurat Trading day-to-day

     

    Mr. Nirmal Jain, Chairman, IIFL received the 'Entrepreneur of the Year' award at the 10th

    Franchise India Awards 2012

     

    IIFL Buzz won the prestigious award for the internal tabloid at the 53rd annual awards night

    of the Association of Business Communication of India (ABCI)

      Best Private Banking Services Overall –  India –  Euromoney Private Banking Survey 2014

     

    Best Wealth Management company in India - Wealth Briefing Asia Awards 2013

      Fastest Growing Wealth Management Company - CNBC TV 18 Financial Advisor Awards

    2013  Highest asset Growth Champion - The Wealth Forum Advisor Awards 201

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    BOARD OF DIRECTORS

    1. Mr. Nirmal Jain 

    Chairman, IIFL Holdings Limited

    2. Mr. R. Venkataraman 

    Managing Director, IIFL Holdings Limited

    Mr. Arun Kumar Purwar 

    Independent Director of IIFL Holdings Limited since March 2008

    Mr. Chandran Ratnaswami 

     Non-Executive Director of IIFL Holdings Limited since May 2012

    Mr. Kranti Sinha 

    Independent Director of IIFL Holdings Limited since January 2005

    Mr. Nilesh Vikamsey 

    Independent Director of IIFL Holdings Limited since February 2005.

    Mr. Sunil Kaul 

     Non-Executive Director of IIFL Holdings Limited since November 2011

    Dr. Subbaraman Narayan Independent Director of IIFL Holdings Limited since July 2012

    Ms Geeta Mathur 

    Independent Director of IIFL Holdings Limited since September 2014

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    CHAPTER IV

    ANALYSIS AND INTERPRETATIONS

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    Moving Averages Analysis:

    Table1: GOLD (M) Short term moving average calculation from 1-Jan-2015 to 15-May-2015

    Date Close(Rs) SMA

    5-Jan-15 27042

    6-Jan-15 27385

    7-Jan-15 27159

    8-Jan-15 26808

    9-Jan-15 26806 27040

    12-Jan-15 27032 27038

    13-Jan-15 27071 26975.2

    14-Jan-15 27210 26985.4

    15-Jan-15 27493 27122.4

    16-Jan-15 27673 27295.8

    19-Jan-15 27718 27433

    20-Jan-15 28098 27638.4

    21-Jan-15 27992 27794.8

    22-Jan-15 28055 27907.2

    23-Jan-15 27884 27949.4

    27-Jan-15 27934 27992.6

    28-Jan-15 27795 27932

    29-Jan-15 27470 27827.6

    30-Jan-15 27911 27798.8

    2-Feb-15 28071 27836.2

    3-Feb-15 27687 27786.8

    4-Feb-15 27814 27790.6

    5-Feb-15 27757 27848

    6-Feb-15 26968 27659.4

    9-Feb-15 27119 27469

    10-Feb-15 27016 27334.811-Feb-15 26817 27135.4

    12-Feb-15 26635 26911

    13-Feb-15 26694 26856.2

    16-Feb-15 26742 26780.8

    17-Feb-15 26241 26625.8

    18-Feb-15 26181 26498.6

    19-Feb-15 26294 26430.4

    20-Feb-15 26317 26355

    23-Feb-15 26178 26242.2

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    24-Feb-15 26077 26209.4

    25-Feb-15 26142 26201.626-Feb-15 26239 26190.6

    27-Feb-15 26206 26168.4

    28-Feb-15 26473 26227.4

    2-Mar-15 26541 26320.2

    3-Mar-15 26453 26382.4

    4-Mar-15 26539 26442.4

    5-Mar-15 26551 26511.4

    6-Mar-15 26058 26428.4

    9-Mar-15 26062 26332.6

    10-Mar-15 25960 26234

    11-Mar-15 25716 26069.4

    12-Mar-15 25690 25897.2

    13-Mar-15 25909 25867.4

    16-Mar-15 25797 25814.4

    17-Mar-15 25635 25749.4

    18-Mar-15 25653 25736.8

    19-Mar-15 25970 25792.8

    20-Mar-15 26195 25850

    23-Mar-15 26208 25932.2

    24-Mar-15 26350 26075.2

    25-Mar-15 26491 26242.8

    26-Mar-15 26805 26409.8

    27-Mar-15 26564 26483.6

    30-Mar-15 26239 26489.8

    31-Mar-15 26061 26432

    1-Apr-15 26226 26379

    2-Apr-15 26548 26327.6

    6-Apr-15 26941 26403

    7-Apr-15 26829 265218-Apr-15 26682 26645.2

    9-Apr-15 26452 26690.4

    10-Apr-15 26703 26721.4

    13-Apr-15 26616 26656.4

    14-Apr-15 26454 26581.4

    15-Apr-15 26644 26573.8

    16-Apr-15 26533 26590

    17-Apr-15 26702 26589.8

    20-Apr-15 26719 26610.4

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    21-Apr-15 26803 26680.2

    22-Apr-15 26489 26649.223-Apr-15 26777 26698

    24-Apr-15 26574 26672.4

    27-Apr-15 26944 26717.4

    28-Apr-15 27036 26764

    29-Apr-15 27096 26885.4

    30-Apr-15 26593 26848.6

    1-May-15 26483 26830.4

    4-May-15 26747 26791

    5-May-15 26902 26764.2

    6-May-15 26928 26730.6

    7-May-15 26951 26802.2

    8-May-15 26903 26886.2

    11-May-15 26853 26907.4

    12-May-15 27180 26963

    13-May-15 27539 27085.2

    14-May-15 27444 27183.8

    15-May-15 27473 27297.8

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    Graph1:

    GOLD (M) Short term moving from 1-Jan-2015 to 15-May-2015

    Interpretations:

    The above graph represents the performance of Gold (M) fluctuating short term moving averages(SMA) from 5-Jan-2015 to 5-May-2015. The SMA intercept the index price from Jan -5- 2015 and it

    goes up word directions up to May-14-2015 (2800 high price) and then parley goes a down word

    direction up to May-10-2015(26500 low price) and then goes a small up word directions (27473

    increasing price) it should be indicated buy signal for investors.

    24000

    24500

    25000

    25500

    26000

    26500

    27000

    27500

    28000

    28500

    5-Jan-15 5-Feb-15 5-Mar-15 5-Apr-15 5-May-15

    Close(Rs)

    SMA

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    Table2: GOLD (M) Long term moving averages calculation from 5-Jan-2015 to 14-May-2015

    Date Close(Rs) LMA5-Jan-15 27042

    6-Jan-15 27385

    7-Jan-15 27159

    8-Jan-15 26808

    9-Jan-15 26806

    12-Jan-15 27032

    13-Jan-15 27071

    14-Jan-15 27210

    15-Jan-15 27493

    16-Jan-15 27673

    19-Jan-15 27718

    20-Jan-15 28098

    21-Jan-15 27992

    22-Jan-15 28055

    23-Jan-15 27884 27428.4

    27-Jan-15 27934 27487.87

    28-Jan-15 27795 27515.2

    29-Jan-15 27470 27535.93

    30-Jan-15 27911 27609.472-Feb-15 28071 27693.8

    3-Feb-15 27687 27737.47

    4-Feb-15 27814 27787

    5-Feb-15 27757 27823.47

    6-Feb-15 26968 27788.47

    9-Feb-15 27119 27751.53

    10-Feb-15 27016 27704.73

    11-Feb-15 26817 27619.33

    12-Feb-15 26635 27528.87

    13-Feb-15 26694 27438.13

    16-Feb-15 26742 27362

    17-Feb-15 26241 27249.13

    18-Feb-15 26181 27141.53

    19-Feb-15 26294 27063.13

    20-Feb-15 26317 26956.87

    23-Feb-15 26178 26830.67

    24-Feb-15 26077 26723.33

    25-Feb-15 26142 26611.87

    26-Feb-15 26239 26510.67

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    27-Feb-15 26206 26459.87

    28-Feb-15 26473 26416.82-Mar-15 26541 26385.13

    3-Mar-15 26453 26360.87

    4-Mar-15 26539 26354.47

    5-Mar-15 26551 26344.93

    6-Mar-15 26058 26299.33

    9-Mar-15 26062 26287.4

    10-Mar-15 25960 26272.67

    11-Mar-15 25716 26234.13

    12-Mar-15 25690 26192.33

    13-Mar-15 25909 26174.4

    16-Mar-15 25797 26155.73

    17-Mar-15 25635 26121.93

    18-Mar-15 25653 26082.87

    19-Mar-15 25970 26067.13

    20-Mar-15 26195 26048.6

    23-Mar-15 26208 26026.4

    24-Mar-15 26350 26019.53

    25-Mar-15 26491 26016.33

    26-Mar-15 26805 26033.27

    27-Mar-15 26564 26067

    30-Mar-15 26239 26078.8

    31-Mar-15 26061 26085.53

    1-Apr-15 26226 26119.53

    2-Apr-15 26548 26176.73

    6-Apr-15 26941 26245.53

    7-Apr-15 26829 26314.33

    8-Apr-15 26682 26384.13

    9-Apr-15 26452 26437.4

    10-Apr-15 26703 26486.2713-Apr-15 26616 26514.33

    14-Apr-15 26454 26530.73

    15-Apr-15 26644 26550.33

    16-Apr-15 26533 26553.13

    17-Apr-15 26702 26546.27

    20-Apr-15 26719 26556.6

    21-Apr-15 26803 26594.2

    22-Apr-15 26489 26622.73

    23-Apr-15 26777 26659.47

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    24-Apr-15 26574 26661.2

    27-Apr-15 26944 26661.428-Apr-15 27036 26675.2

    29-Apr-15 27096 26702.8

    30-Apr-15 26593 26712.2

    1-May-15 26483 26697.53

    4-May-15 26747 26706.27

    5-May-15 26902 26736.13

    6-May-15 26928 26755.07

    7-May-15 26951 26782.93

    8-May-15 26903 26796.33

    11-May-15 26853 26805.27

    12-May-15 27180 26830.4

    13-May-15 27539 26900.4

    14-May-15 27444 26944.87

    15-May-15 27473 27004.8

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    Graph2:

    GOLD (M) Long term moving averages from 5-Jan-2015 to 14-May-2015

    Interpretation:

    The above graph represents the Long Term Moving Averages from 5-Jan-2015 to 14-May-2015. The

    LMA intercept Index price from 19-Jan-2015 (27800 price level) and it goes down word direction up to

    16-May-2015 (25500 mark low) and then goes parley up word directions up to 11-May-2015 (26743

     price mark) it would  be indicated “Buy” signal for the new investors and gives hold signal for holding

    investors.

    24000

    24500

    25000

    25500

    26000

    26500

    27000

    27500

    28000

    28500

    5-Jan-15 5-Feb-15 5-Mar-15 5-Apr-15 5-May-15

    Close(Rs)

    LMA

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    RELATIVE STRENTN INDEX (RSI):

    Formula

    RSI= 100-[100/1+RS]

    RS= Average gain per day 

    Average loss per day

    Table1: GOLD (M) RSI calculation from 5-Jan-2015 to 28-Feb-2015 

    Date Open(Rs) Close(Rs) RSI5-Jan-15 26845 27042

    6-Jan-15 27095 27385

    7-Jan-15 27328 27159

    8-Jan-15 27150 26808

    9-Jan-15 26751 26806

    12-Jan-15 26865 27032

    13-Jan-15 27118 27071

    14-Jan-15 27013 27210

    15-Jan-15 27150 27493

    16-Jan-15 27540 27673

    19-Jan-15 27642 27718

    20-Jan-15 27700 28098

    21-Jan-15 28071 27992

    22-Jan-15 27966 28055 75.3292

    23-Jan-15 28015 27884 69.47536

    27-Jan-15 27815 27934 67.24947

    28-Jan-15 27896 27795 69.2578

    29-Jan-15 27782 27470 70.1824

    30-Jan-15 27540 27911 72.40284

    2-Feb-15 28120 28071 69.0315

    3-Feb-15 28071 27687 60.28155

    4-Feb-15 27660 27814 59.67597

    5-Feb-15 27785 27757 53.44214

    6-Feb-15 27498 26968 40.98258

    9-Feb-15 27011 27119 41.61693

    10-Feb-15 27180 27016 30.51779

    11-Feb-15 27050 26817 28.78545

    12-Feb-15 26756 26635 23.38034

    13-Feb-15 26700 26694 26.58834

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    16-Feb-15 26720 26742 23.98119

    17-Feb-15 26722 26241 20.856318-Feb-15 26280 26181 22.49967

    19-Feb-15 26260 26294 13.17862

    20-Feb-15 26337 26317 13.33893

    23-Feb-15 26281 26178 15.12126

    24-Feb-15 26219 26077 7.843137

    25-Feb-15 26138 26142 8.127721

    26-Feb-15 26200 26239 13.13452

    27-Feb-15 26243 26206 6.578073

    28-Feb-15 26111 26473 27.06988

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    Graph1: Gold (M) Relative Strength Index chart from 5-Jan-15 to 25-

    Feb-2015

    Interpretation:The above graph represents RSI of GOLD (M), the RSI crossed 30 lines from below to above and it israised in the day of 28-Feb-2015 the RSI indicated buying opportunity in the month of February.

    0

    10

    20

    30

    40

    50

    60

    70

    80

    5-Jan-15 12-Jan-15 19-Jan-15 26-Jan-15 2-Feb-15 9-Feb-15 16-Feb-15 23-Feb-15

    RSI

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    Table2: GOLD (M) RSI calculation from 2-Mar-2015 to 30-Apr-2015 

    DATE OPEN Rs CLOSE Rs RSI

    2-Mar-15 26508 26541 32.8676

    3-Mar-15 26527 26453 33.92857

    4-Mar-15 26500 26539 35.79584

    5-Mar-15 26510 26551 36.60477

    6-Mar-15 26485 26058 37.96424

    9-Mar-15 26096 26062 39.74082

    10-Mar-15 26050 25960 35.84775

    11-Mar-15 25979 25716 30.6872

    12-Mar-15 25750 25690 31.48936

    13-Mar-15 25750 25909 40.73406

    16-Mar-15 25945 25797 37.26467

    17-Mar-15 25741 25635 33.84944

    18-Mar-15 25665 25653 34.30736

    19-Mar-15 25712 25970 28.84535

    20-Mar-15 25996 26195 34.74121

    23-Mar-15 26195 26208 36.60881

    24-Mar-15 26180 26350 40.625

    25-Mar-15 26313 26491 44.3145726-Mar-15 26519 26805 62.19083

    27-Mar-15 26774 26564 56.88204

    30-Mar-15 26468 26239 53.28941

    31-Mar-15 26200 26061 56.4712

    1-Apr-15 26122 26226 60.06354

    2-Apr-15 26601 26548 55.56578

    6-Apr-15 26625 26941 65.39045

    7-Apr-15 26925 26829 65.69401

    8-Apr-15 26842 26682 61.47068

    9-Apr-15 26612 26452 54.73411

    10-Apr-15 26482 26703 55.73411

    13-Apr-15 26703 26616 52.92653

    14-Apr-15 26569 26454 46.94138

    15-Apr-15 26450 26644 47.29958

    16-Apr-15 26644 26533 38.041

    17-Apr-15 26530 26702 46.68521

    20-Apr-15 26699 26719 52.72074

    21-Apr-15 26745 26803 58.11462

    22-Apr-15 26778 26489 47.80702

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    23-Apr-15 26515 26777 54.97567

    24-Apr-15 26734 26574 44.03827-Apr-15 26624 26944 53.54229

    28-Apr-15 26969 27036 58.76565

    29-Apr-15 26985 27096 65.15775

    30-Apr-15 27056 26593 49.56772

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    Graph2: Gold (M) Relative Strength Index chart from 2-Mar-15 to 30-Apr-15

    Interpretation:The above graph represents RSI of GOLD (M), the RSI crossed 60 lines from below to above and it isfall down in the day of 30-Mar-2015 and then RSI indicated touched 40 line from 20-Apr-2015 and itgoes up word direction so it indicates „Holding‟ signal in the month of April.

    0

    10

    20

    30

    40

    50

    60

    70

    RSI

    RSI

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    Table3: GOLD (M) RSI calculation from 1-May-2015 to 15-May-2015 

    DATE OPEN RS CLOSE RS RSI

    1-May-15 26572 26483 49.52694

    4-May-15 26580 26747 55.2154

    5-May-15 26852 26902 52.45832

    6-May-15 26950 26928 54.533337-May-15 26904 26951 51.85882

    8-May-15 26960 26903 50.04625

    11-May-15 26898 26853 47.65007

    12-May-15 26899 27180 60.95283

    13-May-15 27131 27539 63.44556

    14-May-15 27465 27444 67.55121

    15-May-15 27417 27473 63.00425

    Graph3: Gold (M) Relative Strength Index chart from 1-May-15 to 15-May-15

    Interpretation:

    0

    10

    20

    30

    40

    50

    60

    70

    80

    RSI

    RSI

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    The above graph represents RSI of GOLD (M), the RSI crossed 60 lines from 12-May-2015 and then itfoes up word direction and it below above and it is fall down in the day of 14-May-2015. Then RSIindicated „sell‟ signal for the investors in the month of May, as on 15-May-2015.

    Grapg4: Overall performance of RSI.

    Interpretation:The above graph represents RSI performance from 5-Jan-2015 to 15-may-2015. The RSI indicatortouched 70 line from in the month of January 2015 it is indicated „sell‟ signal and then the RSI line goes

    down word direction touched 10 line it indicated „buy‟ signal in the month of February ending. The

    month of March 2015 RSI line goes up word direction flow will continues up 15-May-2015 it isindicated „sell‟ signal for the investors.

    0

    10

    20

    30

    40

    50

    60

    70

    80

    5-Jan-15 5-Feb-15 5-Mar-15 5-Apr-15 5-May-15

    RSI

    RSI

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    CHAPTER V

    Findings, Suggestion and Conclusion

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    Findings:

      The present performance of gold is bullish. It has been fluctuated from 26845 to 27417 during 5th January 2015 to May 15th 2015. During this period Gold is goes upward up to Rs 512.

      With help of Moving averages and RSI indicator‟s the price of Gold M is goes bullish trend and

    as per overall performance it should be indicated Sell signal for the Investors.

      The overall performance of Gold M indicates the future prediction that the investor to „Sell‟ and„Hold‟ because Gold M stills it goes bullish direction.

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    Suggestions:

      With help of Moving averages and Relative strength index/indicator overall performance goesupward direction from 26485 to 27417 as per the duration between Jan 5 th 2015 to May 5th 2015. It indicates sell signal by Gold M.  

      The future performance of Gold M says Sell signal. 

      It suggested the investor that, it is right time to invest in Gold M because the future isexpected to be bullish trend will be continued up to next 4 to 5 months. 

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    References:

    Books

    1. Investment and portfolio Management----------S.Kevin

    2. Research Methodology--------------Kothari

    3. Financial Management------------I.M Pandy 

    Web siteswww.mcxindia.com 

    www.moneyconrtol.com 

    www.yahoofiance.com 

    www.iifl.com 

    www.investopedio.com 

    http://www.mcxindia.com/http://www.mcxindia.com/http://www.moneyconrtol.com/http://www.moneyconrtol.com/http://www.yahoofiance.com/http://www.yahoofiance.com/http://www.iifl.com/http://www.iifl.com/http://www.investopedio.com/http://www.investopedio.com/http://www.investopedio.com/http://www.iifl.com/http://www.yahoofiance.com/http://www.moneyconrtol.com/http://www.mcxindia.com/