A project report on fundamental & technical analysis of automobile sector at giojit pnb paribas ltd

“Fundamental & Technical Analysis of Automobile Sector”

INDEX

1. Executive Summary…………………………………………………1 – 6

2. Company Profile …….………………………………………….......7

Profile……………………………………………………. 8 -10

Products and Services…………………………………...11 - 17

3. Overview of Stock Market…………………………………….......18 - 24

4. Introduction to Fundamental & Technical Analysis........................25 - 38

5. EIC Analysis………………...………………………………….....39

Economic Analysis……………………………………...40 - 43

Industry Analysis………………………………………..44 - 53

Company analysis……………………………………….54 - 61

6. Technical Analysis……………….………………………………..62

Relative Strength Index(RSI)…………………………...63 – 76

Moving Average………………………………………...77 – 90

Japanese Candlestick Chart……………………………...91 - 92

7. Findings…………………………………………………………….93 - 95

8. Conclusion………………………………………………………….96

9. Suggestions……………………………………………………......97

10. Bibliography……………………………………………………....98 - 99

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EXECUTIVE SUMMARY



CHAPTER 1EXECUTIVE SUMMARY

I. TITLE OF THE PROJECT:

“Fundamental & Technical Analysis of Automobile Sector Undertaken at Geojit Financial Services Ltd.”

II. ABOUT THE COMPANY:

Name & Address of the Company: - “Geojit Financial Services Ltd.” Bhavani Arcade, 2nd floor, No. 127-A, ‘B’ Block, New Cotton Market Hubli – 580029

III. SCOPE OF THE STUDY:

This study is most important because both fundamental and technical analysis helps investors in better understanding the markets and gauges the direction in which their investments might be headed and it’s utility helps in estimating the future trends of the stock prices and to make a decent profit out of it.

IV. BACKGROUND OF THE PROJECT:

In the recent past, the bank interest rates have been increased steadily. But the rate of Inflation has also been increased. There is no big difference between the interest rate and Inflation rate. Because of inflation, value of money has been decreased and cost of living has been increased. This has created panic among lower, middle and upper middle class families who considered keeping their savings in banks as safe as well as remunerative. So, the invertors are searching for proper investment avenues. Here, an attempt is made to predict the future movement of scrips. This study helps the investors to invest in shares.

The stock exchange comes in the secondary market. Stock exchange performs activities such as trading in share, securities, bonds, mutual fund & commodities. Stock Broking industry is growing at an enormous rate, as more and more people are attracted towards stock exchanges with the hope of making profits.

To quote couple of examples, the Automobile industry in India has consistently registered strong performance. The automobile industry had a growth of 15.4 % during



April-January 2007, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years. Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.

The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis, the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production, etc. Nearly every automobile company is investing at a higher rate than ever before to achieve a high growth trajectory. The overall investment in the sector has been increasing quite rapidly. It is expected that by the end of 2010 Indian automobile sector will be investing a huge amount as Rs. 30,000 crores. At present the industry is enjoying a growth rate of 14-17% per annum, with domestic sales growth at 12.8%. The growth rate is predicted to double by 2015.

V. OBJECTIVES OF THE STUDY:

1) To analyze individual company scrips by considering the factors relating to the economy, industry and the respective company.

2) To predict investor positions (Buy, sell & hold).

3) To know the future trend of Stock Prices of Tata Motors and Maruti Udyog Ltd. in capital market.

4) To know which securities to be bought and which securities not to be bought.

5) To know which securities to be sold and which securities not to be sold.

VI. METHODOLOGY:

Primary data is collected through direct interactions with the Branch Manager, Employees and clients of Geojit Financial Services, Ltd.

The Secondary data is collected from the annual reports of the company, relevant text books on the subject matter and company’s official website.


http://www.naukrihub.com/india/automobile/scope/



TOOLS:

1. Moving Average Method.2. Relative Strength Index (RSI).3. Candlestick Charting.

LIMITATIONS OF THE STUDY:

1. The study is limited only to automobile sector and 2 companies2. I have used only 3 Technical tools to predict the movement of Scrip’s.3. Fundamental Analysis is used to analyze only financial performance of the

companies.4. Only Technical Analysis is used to predict the stock prices of the companies.

FINDINGS OF THE STUDY:

In case of RSI of Maruti Suzuki Scrip, the best time to sell the stock was between 12 th

July 07 to 31st July 07 and 9th October 07 to 18th October 07 since the RSI was above 70 & it had reached its peak level. The best time to buy the stock was between 2nd Jan 08 to 24th Jan 08 since the RSI was below 30 for these many days.

In case of RSI of Tata Motors, the best time to sell the stock was between 27 th Sep 07 to 4th October 07 and 10th December 07 to 12th December 07 since the RSI was above 70 & it had reached its peak level. The best time to buy the stock was between 8 th

August 07 to 23rd August 07 and 23rd Jan 08 to 24th Jan 08 as well as between 7th

March to 18th March 08 since the RSI was below 30 for these many days. The 10 days moving average of Maruti Suzuki scrip, provides a message to the

investor that it is a right time to buy the Stock and, the trend of the Moving Average line has been decreased, so it is also a right time to buy the stock.

In case of 10 days Moving Average of Tata Motors Ssrip, the actual Stock price is just below its moving average line. It indicates that investors are becoming increasingly bullish on the Stock Price of Tata Motors.

In Japanese Candle Stick Chart of Maruti Suzuki Ltd. we can see that the stock price has been decreased. Simply Share Prices of Maruti Suzuki Ltd is falling down. It indicates that the investors are becoming more bearish than bullish.

In case of Japanese Candle Stick Chart of Tata Motors, we can observe lot of volatility in stock price. Both the Bullish and Bearish trends are taking place. The Bullish trend is following by Bearish Trend



Fundamentally, financial performance of these companies in respect of sales and profit is good.

If an investor opts for long term investment then he will earn huge amount of return. Long term Investment is known to be less risky.

This study may not provide any guidelines to Speculators. It is useful to Long Term Investors.

Technical analysts evaluate securities by analyzing statistics generated by market activity, past prices and volume.

One of the most basic and easy to use technical analysis indicators is the moving average, which shows the average value of a security's price over a period of time. The most commonly used moving averages are 10 days, 20 days, 30 days, 50 days, 100 days and 200-days moving average..

One of the most important areas for any investor to look when researching a company is the financial statement. Financial reports are required by law and are published both quarterly and annually.

Indian Economy is consistently achieving a tremendous growth in these Sectors.

If we consider RSI then almost all the scrips of these companies are lying between 30 and 70. It means an investor should hold the scrips until it reaches 70 to sell and 30 to buy.

The stock prices always take a correction after a major climb.

Moving average is one of the best methods of predicting future movement of Stock Price. If we use 200 Day Moving Average for Analysis then volatility of stock will be less. It gives clear picture of movement of Stock.

CONCLUSION OF THE STUDY:

As we all know India is one of the fastest growing economies in the world. India is consistently achieving growth in automobile sector. The automotive industry is witnessing tremendous and unprecedented changes these days. On a global scale, the assets of the top ten automotive corporations accounts for 28% of the assets of the world’s top 50 companies, 29% of their employment and 30% of their total sales.

The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services.



The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena.

With comparatively higher rate of economic growth rate index against that of great global powers, India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years.

The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis, the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production, etc

Apart from domestic production, the industry is consistently focusing on the automobile exports. The auto component segment is contributing a lot in the export arena. The liberalized policies of the government are now making the companies go for more and more exports.

Because of these reasons, the shares of automobile industry are performing well and therefore the share market is attracting people to invest their hard earned money and find fortune. But lack of knowledge about shares and stock market is making them cautious of investing in this market. They need to be educated as well as guided to minimize the risk and to assess the return on their investment.

SUGGESTIONS:

1. Before going to invest, an investor should have clear and adequate knowledge of capital market.

2. It is better to go for Long term Investment rather than the Short term Investment. Because it is less risky and also provides sufficient return.

3. The investors should know the value of money.

4. Practically, stock market activities are very risky. So, investors should be careful while investing.

5. In case of half knowledge about stock market is very dangerous. So, whenever a person wants to invest in stock market he should take necessary tips from the experts or Technical Analysts.

6. Investors should also look into global pressure and market movement in order to look for avenues of investing in different stocks and to take position; some of the




http://www.naukrihub.com/india/automobile/overview/


sources for understanding global pressure are CNBC TV18, News Paper, Economy watch etc.

COMPANY PROFILE



CHAPTER 2PROFILE OF GEOJIT FINANCIAL SERVICES LTD.

Geojit, a joint venture with Kerala State Industrial Development Corporation Ltd. is a pioneer in the retail financial services sector. Over two decades the company has grown to offering complete management solutions. Today the company has over Rs.20 billion in assets under its custody.

Geojit’s shares are listed on the Bombay Stock Exchange. The company is a member of the National Stock Exchange of India Ltd., the Bombay Stock Exchange and the National Securities Depository Ltd., and a charter member of the Association of Financial Planners, India. More than 1000 professionals are operating through over 250 offices across the country provide services to a growing retail investor base of 200,000. Prominent institutional clients include banks, mutual funds and other institutions such as UTI and insurance companies.

Geojit has a large pool of certified professionals who plan, execute and manage customized investment strategies for clientele. Financial literacy programmes are conducted on a regular basis through the branch network to raise investment awareness.

Early application of innovative technology in the industry led to many national firsts such as internet trading, electronic securities settlement on the web and an online integrated trading screen for stocks and derivatives.



YEAR EVENTS

1988 The company, Geojit Securities Limited (GSL), was a partnership firm, with two partners Mr. C.J. George and Mr. Ranjit, under the name and style of M/s Geojit & Company established on 4th November, to act as stock and share brokers with membership on the Cochin Stock Exchange.

1994 - The company was incorporated as a Public Limited Company on 24th

November and obtained its Certificate of commencement of business on 25th January 1995.

- The company is at present engaged in the activities of stock and share broking, underwriting, marketing of initial public offering of companies and mutual funds, corporate advisory services, investments in shares, participating in Bought Out Deals, syndication of inter-corporate deposits, debt, bought-outs etc.

- The company has at present branches at Trichur, Kottayam, Muvattupuzha and Coimbatore apart from having representative offices at Mumbai.

1995The company has a subsidiary in the name of Geojit Stock and Shares Limited (GSSL) to carry on the activities as a Dealer of Over The Counter Exchange of India.

1996 - The company had made a public issue of equity shares aggregating to Rs.95/- lakhs, during the period under report which received an overwhelming support and was oversubscribed over 14 times.

- The Company held 100% of the paid up Capital of Rs.30,00,000/- M/s Geojit Stock & Shares Ltd., a wholly owned subsidiary of the Company as at 31st March.

1998 The Company, a joint venture company with Kerala State Industrial Development Corporation (KSIDC), has announced improved working results for 1997-98.

1999 - The equity shares of the company are presently listed at five Stock Exchanges viz., Madras, Ahemedabad, Coimbatore, Delhi and Cochin

- The Company based in Kochi, to set up a full-fledged office in the UAE,



which will not only enable it to deal in Indian shares and securities, but also help it become a licensed stock broking company in that country.

2000 - Geojit Securities Ltd, a leading retail share broking firm launched Internet securities trading for the first time in India.

- Geojit Securities is a joint venture with Kerala State Industrial Development Corporation (KSIDC) with branches in 40 cities.

- ABN Amro Bank is set to pick up an equity stake in Geojit Securities Ltd one of the largest stock brokers and depository participant in the country.

- The company is planning to introduce multi-bank, multi-DP interfaces to facilitate and promote Internet trading in the country.Geojit Securities Ltd, the first company to start online trading services, has signed a MoU with UTI Bank to enable investors to buy\sell demat stocks through the company's website.

- The Company has signed a deal with Centurion Bank to provide payment gateway for Internet trading.

- The Company launched its online interface with HDFC Bank for Internet trading.

- Geojit Securities Ltd, a leading stock broking company, has decided to issue bonus shares at 1:1 ratio, to capitalize part of general reserve.

-2001 - The Kochi-based retail broking firm, Geojit Securities Ltd., is setting up an

overseas venture jointly with a UAE partner to provide broking and depository services to NRIs in the Gulf countries.

- Geojit Securities has inked a joint venture (JV) with UAE based brokerage house Barjeel Shares & Bonds to set up a 20:80 joint venture with an initial capital of $ 1 million, christened Barjeel Geojit Securities.

- Bonus Shares were issued by the company in the ratio 1:1.

2002 Sheikh Sultan Bin Saud Al Qasimi appointed as Director of Geojit Securities.Mr. T Koshy appointed as Director of Geojit Securities with effect from October 26, 2002

2003 The Company has unveiled a new logo and changed its name to Geojit Financial Services Ltd, offering a growing range of new and innovative financial products and services.

2004 - Geojit Securities inks pact with Doha Bank- UTI Bank, Geojit in pact for trading platform in Qatar- Delists shares from Cochin Stock Exchange- Shares of Geojit Securities Ltd delisted from Coimbatore Stock Exchange

from May 21 and Madras Stock Exchange effective May 31- Geojit Financial Services Ltd in association with Doha Bank launches India

Wealth Management Services for non-resident Indians living in Qatar2005 Geojit has tied up with global financial investments SAOG, Muscat, in the

Sultanate of Oman2006 Geojit Financial Services Ltd has informed that the Board of Directors of the

Company at its meeting held on October 22, 2006, has approved the proposal



of the Company to issue and allot to BNP Paribas S.A. (the "Investor"), on a preferential allotment basis, equity shares, warrants convertible into equity shares or any combination thereof, such that the total number of equity shares issued (whether as equity shares or upon the conversion of the warrants) shall not exceed 7,96,31,170 equity shares of Re 1, at price of Rs 26 per equity share, which has been determined in accordance with the applicable laws and guidelines

PRODUCTS AND SERVICES



PRODUCTS:

Equity F & O (Futures and Options) Margin Trading Funding Scheme Loan Against Shares Loan Against Commodity Trading Depository Commodity Portfolio Management Services (PMS)

1) Equity:

Equity/ordinary share capital, as a long-term source of finance, represents ownership capital/securities and its owners – equity-holders/ordinary shareholders – share the reward and risk associated with the ownership of corporate enterprises. A shareholder can exercise, sell in the market and renounce/forfeit his pre-emptive rights partially/completely. He does not gain/lose from rights issues. Ordinary share capital is a high-risk-high-reward source of finance for corporate. The shareholders share the risk, return and control associated with ownership of companies.

2) F & O (Futures and Options):

The National Stock Exchange and The Stock Exchange, Mumbai have commenced trading in Derivatives Market with Index Futures being the first instrument. Now both the exchanges provide trading in Index Futures and Options and Stock Futures and Options.

A derivative is a financial contract, between two or more parties, which is derived from the future value of an underlying asset. At any point of time there will always be available near three months contract periods. For e.g. in the month of Jan 2006 one can enter into Jan, Feb or Mar contracts. The last Thursday of each month is the expiry day for that month’s contract. When one contract expires, a new contract is introduced. For instance, on expiry of Jan 2006 contract, April contract shall get activated.



Currently, settlements of all Derivatives trades are in cash. There is Daily as well as Final Settlement. As long as the position is open, the same will be marked to Market at the Daily Settlement Price, the difference will be credited or debited accordingly and the position shall be brought forward to the next day at the daily settlement price. Any position which remains open at the end of the final settlement day (i.e., last Thursday) shall be closed out by the Exchange at the Final Settlement Price which will be the closing spot value of the underlying.

There are two types of margins collected on the open position, viz., Initial Margin which is collected upfront and Mark to Market Margin to be paid on T+1 day. As per SEBI Guidelines it is mandatory for clients to give margin, failing which the outstanding positions may be closed out.

There are three types of Members in the Futures and Options Segment:

Trading Members are only eligible to trade, their trades are settled by the Clearing Members.

Trading cum clearing members are members who are eligible to trade and also settle trades on their own behalf and also settle on behalf of other trading members.

Professional Clearing Members are members who are only specialized in the clearing and settlement activities. They do not trade on their own behalf or on behalf of other members

Self Clearing Members are those who trade and settle only their own trades. Geojit Financial Services Ltd is trading cum clearing member at NSE.

3) Margin Trading Funding Scheme:

In Marginal Trading, an Investor buys securities by borrowing a portion of the transaction value and using the securities in the portfolio as collateral. An investor who purchases securities may pay for the securities fully in cash or may borrow a part of the transaction value from the brokerage firm.

4) Loan Against Shares:

Geojit Credits Pvt. Ltd., a subsidiary of Geojit Financial Services Ltd, registered as a Non-Banking Finance Company (NBFC) offers Loans against security of shares. The facility is available to all customers of Geojit Financial Services Ltd.

Key Features of the Scheme:

1. All securities defined under Group I of NSE are eligible for Loan against Shares



2. Loan is provided against a minimum of two securities and minimum loan amount is Rs.50000/-

3. Loan up to 50% of the current market value of approved shares.4. Upper ceiling on quantum of loan shall be as determined by Geojit Credits P Ltd

on a case to case basis5. Speedy disbursal through RTGS / direct credit to the customer’s bank account /

cheque6. Hassle free processing and simple documentation7. Securities are to be transferred to Geojit Credits Pvt. Ltd8. Fixed charges of 1.00 % of loan amount is charged upfront and is non refundable.9. Rate of interest is 14 % p.a. for Loans above Rs 3 lacs and 15% pa for Loans upto

Rs 3 lacs. This is subject to change from time to time. Interest is charged on Daily Outstanding Balance in Loan account at monthly rests. Interest debited every month should be repaid by chque/DD payable at Kochi with in 7 days of debit.

10. The credit is provided as an overdraft facility for a period of One year at a time, renewable by mutual consent.

11. Loan can also be redeemed by instructing Geojit Credits Pvt. Ltd to sell the securities

12. Loans are re-valued daily13. Margin calls are made if the value of the securities fall by 10% which can be met

with either by redeeming the loan partially or placing additional securities 14. Securities may be liquidated if the margins are not furnished in case of a fall of

20% value of the securities

5) Loan Against Commodity Trading:

Geojit Credits Pvt. Ltd offers loans against Pledge of Warehouse Receipts for delivery at Commodity Exchanges.

Key Features of the Scheme

1. Loans against Pledge of Physical and Demat warehouse receipts

2. Loans up to 80% of sale value price contracted for Futures delivery 3. Loans are also considered against Pledge of warehouse receipts without Futures

Sell contract on a case-to-case basis at higher margins ranging from 30% to 50% of the value

4. Loans available till sale proceeds are realised on settlement from the Commodity Exchange else upto a maximum of three months

5. Provision to switch between different future contracts (subject to validity of warehouse receipts)

6. Simple documentation 7. Speedy disbursal of loans through RTGS



6) Depository:

A depository can be compared to a bank. It holds securities such as shares, debentures, bonds, government securities, units etc. of investors in electronic form. There are two depositories in India, The National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). An individual who desires to avail the depository services can approach a Depository Participant (DP). Banks, financial institutions, custodians, brokers or any other entity eligible as per SEBI (Depositories and Participants) Regulations, 1996 can apply to the Depository to become a Depository Participant. As on 31st March, 2006 there are 526 Depository Participants in India.

Geojit, is a depository participant of NSDL & CDSL. Investors can open demat accounts with NSDL & CDSL through Geojit. One can approach the nearest branch of Geojit for opening an account. Agreement charges (statutory charges) along with Annual Maintenance Charge (AMC) are collected upfront while opening an account. It takes two to three days to open a demat account. Upon activation of the demat account, a Welcome Letter is sent to the customer along with the Delivery Instruction Slip book.

DP facilities offered by Geojit

De-materialization : Consumers can convert their physical shares into electronic form by surrendering the shares for dematerialization at the Geojit branch.

Re-materialization : Re-materialization enables consumers to convert the dematerialized shares into physical form.

Repurchase : This facility helps consumers to submit the units of open-ended Mutual Funds in case of re-purchase.

Pledge : Consumers can pledge securities to avail a loan. Transfer : Consumers can transfer securities from one demat account to another. IPOs : In case consumers have applied for an IPO and receive an allotment then

the securities are transferred directly to their demat account. The same applies for bonus and rights issues.

Commodity De-mat Account : If consumers are a commodity player, they may need to open a commodity de-mat account with Geojit.

Speed-e : If consumers register for Speed-e services, then transfer instructions can be placed online over the internet to pre-notified Clearing Members Pool a/c. This does away with the need to submit a physical delivery instruction slip.

Internet Services : If consumer have access to Internet then they can register with Geojit to view their demat account over the Internet. This is very beneficial as consumers can avail of a host of services at no extra cost. They will be able to view their holdings,reports,ledgers and will have free access to Geojit’s research reports at any time.



SMS Alert Facility : The alert messages for debits (transfers) and IPO credits would be sent to the account holders who have subscribed to this facility. Depository provides this facility and no charge is levied on DPs for providing this service to investors.

7) Commodity:

Geojit Commodities, a subsidiary of Geojit Financial Services Limited, is mainly engaged in the business of Commody Futures Trading. Geojit Commodities is a member of:

National Multi – Commodity Exchange of India limited (NMCE) National Commodity & Derivatives Exchange Limited (NCDEX) Multi – Commodity Exchange (MCX) India Pepper and Spice Trade Association (IPSTA) Singapore Commodity Exchange (SICOM) Dubai Gold Commodity Exchange (DGCX).

Geojit provides information on commodity futures, along with technical and fundamental analysis online at its website and also through the company's large branch network. The company conducts Seminars, distributes free in-house literature and holds interactive sessions that help raise awareness on the futures market. The number of participants is continuously on the rise thus leading to increased volumes and market efficiency.

Geojit Commodity offers futures trading through multiple exchanges in varied commodities such as:

Agri commodities: oilseeds, soya, groundnut, pulses, rice, wheat, sugar, spices, rubber, guar, pepper, cardamom, coffee, etc

Precious metals: gold and silver, Base metals: steel, aluminium, nickel, zinc, copper, etc Energy products: crude oil and furnace oil

Geojits clientele in commodities range from investors, co-operative societies, state and national institutions to dealers, traders, manufacturers, financiers, speculators, arbitragers,etc.

Geojit does not have proprietary interest in any commodity and therefore is price neutral. Transaction costs are highly affordable attracting a spectrum of investors. Membership in multiple exchanges gives clients the added advantage of arbitrage. Geojit has specialized staff that provide the required guidance, help and enable clients to enter at the appropriate price.

8) PMS (Portfolio Management Services):



Geojit, a SEBI registered Portfolio Manager (Reg. No.INP000000316) offers discretionary portfolio management services. Geojit has a team of experts who carefully take investment decisions based on the clients' objectives. The Portfolio Management team has a successful track record of more than 10 years in the capital market. The team has access to Geojit's strong Equity Research, and Fundamental & Technical Analysis.

Investment Objective: To generate medium to long-term capital growth (2-3 years) by identifying undervalued stocks and those with growth opportunities from a select list of well researched stocks.

Strategy: Identifying growth stocks from a select list through extensive research.

Minimum Investment: Rs.10 lakhs for resident Indians and Rs.25 lakhs for Non-Resident Indians.

Reports: Portfolio and NAV are communicated bi-weekly via e-mail.

Risk factors: As the stocks are normally held for medium to long term, the net asset value will be affected by market volatility.

PMS fee:

Option 1: 3% p.a. (charged @0.75% at the end of every quarter on the average of beginning and ending NAV).

Option 2: 1% p.a. (charged @0.25% at the end of every quarter on the average of beginning and ending NAV) and performance fee.

Performance fee: 20% on gain in NAV over and above 12% p.a. based on the high watermark concept charged at the end of the year or on withdrawal.



OVERVIEW OF EQUITY MARKET

CHAPTER 3

OVERVIEW OF EQUITY MARKET IN INDIA

BSE (Bombay Stock Exchange)



SENSEX - THE BAROMETER OF INDIAN CAPITAL MARKETS

Introduction:

For the premier Stock Exchange that pioneered the stock broking activity in India, 128 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "The Stock Exchange, Mumbai" by paying a princely amount of Re1.

Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market.

SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media.

The Index was initially calculated based on the "Full Market Capitalization" methodology but was shifted to the free-float methodology with effect from September 1, 2003. The "Free-float Market Capitalization" methodology of index construction is regarded as an industry best practice globally. All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float methodology.

Due to its wide acceptance amongst the Indian investors, SENSEX is regarded to be the pulse of the Indian stock market. As the oldest index in the country, it provides the time series data over a fairly long period of time (From 1979 onwards). Small wonder, the SENSEX has over the years become one of the most prominent brands in the country.

The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. The SENSEX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market through SENSEX.

SENSEX MILESTONES:



Robust portfolio investments and heavy fund buying lifted the Bombay Stock Exchange's benchmark 30-share Sensex past the magical 12,000 mark. The Sensex finally closed at an all-time high of 12,040 points.

This is the fastest 1,000-point gain by the Sensex. It only took 15 trading sessions for the index to cross from 11,000 to 12,000. Interestingly, the Sensex has taken only 10 months to gain 5,000 points!

The unprecedented Bull Run started on May 6, 2003 when the Sensex was at 3,001.21 level. In took just 67 trading sessions to cross the 4,000-mark and touch 4,026.27 points on August 19, 2003.

The rally continued and the index gained another 1,000 points in 54 trading sessions to post 5,068.66 points on November 3, 2003.

Thereafter, it pierced through the 6,000 mark on January 2, 2004 in another 43 trading sessions. The market then seemed to pause for breath as it took a whopping 370 trading sessions to cross the 7,000 mark, at 7001.55 on June 20, 2005.

From 7,000-mark, the sentiment turned distinctly firm following good liquidity that played a significant role to determine the market direction and Sensex crossed 8,000-mark in just 55 trading sessions at 8, 060.26 on September 8, 2005 and 54 trading days to cross 9,000-mark at 9, 005.63 on November 28, 2005.

From 9K to 10K, it took just 48 trading sessions. The index crossed 10,000-mark on February 6, 2006 at 10,002.83.

From 10K to 11K, it only took 29 trading sessions.

The Bombay Stock Exchange, the oldest stock exchange in Asia, was established in 1875 as the Native Share and Stock Brokers Association at Dalal Street in Mumbai. A lot has changed since then when 318 persons became members upon paying Re 1.

In 1956, the BSE obtained permanent recognition from the Government of India -- the first stock exchange to do so -- under the Securities Contracts (Regulation) Act, 1956.

The Sensex, first compiled in 1986, is a 'Market Capitalization-Weighted' Index of 30 component stocks representing a sample of large and financially sound companies. The BSE- Sensex is the benchmark index of the Indian capital markets.



The BSE Sensex comprises these 30 stocks: ACC, Bajaj Auto, Bharti Tele, BHEL, Cipla, Dr Reddy's, Gujarat Ambuja, Grasim, HDFC, HDFC Bank, Hero Honda, Hindalco, HLL, ICICI Bank, Infosys, ITC, L&T, Maruti, NTPC, ONGC, Ranbaxy, Reliance, Reliance Energy, Satyam, SBI, Tata Motors, Tata Power, TCS, Tata Motors and Wipro. Here's a timeline on the rise and rise of the Sensex through Indian stock market history.

1000, July 25, 1990- On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

2000, January 15, 1992 -On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000, February 29, 1992 -On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992 -On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.

5000, October 8, 1999 -On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.

6000, February 11, 2000 -On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 20, 2005 -On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005 -On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005 -The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 7, 2006 - The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.



11,000, March 27, 2006 - The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006 - The Sensex on April 20, 2006 crossed the magical figure of 12,000 and closed at a lifetime peak of 12,040 points for the first time.

13,000, October 30, 2006- The Sensex had touched the 13,000 level on October 30.

14,000, December 5, 2006- The Bombay Stock Exchange's 30-share benchmark stock index, the Sensex, crossed the 14,000 mark, Tuesday, December 5, opening with a bang at 14,028, up 154 points from its previous close, thanks to a freak trade at the Reliance counter which saw the stock open at Rs. 1,350, up Rs. 90 from the previous day's close. With the index completing the last 1,000 point journey in just 26 sessions.

15,000, July 6, 2007- The Sensex on July 6, 2007 crossed another milestone and reached a magic figure of 15,000. it took almost 7 month and 1 day to touch such a historic milestone.

16,000, September 19, 2007- The Sensex on September 19, 2007 crossed the 16,000 mark and reached a historic peak of 16322 while closing. The bull hits because of the rate cut of 50 bps in the discount rate by the Fed chief Ben Bernanke in US.

17,000, September 26, 2007- The Sensex on September 26, 2007 crossed the 17,000 mark for the first time, creating a record for the second fastest 1000 point gain in just 5 trading sessions. It failed however to sustain the momentum and closed below 17000. The Sensex closed above 17000 for the first time on the following day. Reliance group has been the main contributor in this bull run, contributing 256 points. This also helped Mukesh Ambani's net worth to grow to over $50 billion or Rs.2 trillion. It was also during this record bull run that the Sensex for the first time zoomed ahead of the Nikkei of Japan.

18,000, October 9, 2007- The Sensex crossed the 18k mark for the first time on October 9, 2007. The journey from 17k to 18k took just 8 trading sessions which is the third fastest 1000 point rise in the history of the sensex. The sensex closed at 18,280 at the end of day. This 788 point gain on 9th October was the second biggest single day absolute gains.

19,000, October 15, 2007- The Sensex crossed the 19k mark for the first time on October 15th 2007. It took just 4 days to reach from 18k to 19k. This is the fastest 1000 points rally ever and also the 640 point rally was the second highest single day rally in absolute terms. This made it a record 3000 point rally in 17 trading sessions overall.



20,000, October 29, 2007- The Sensex crossed the 20k mark for the first time with a massive 734.5 point gain but closed below the 20k mark. It took 11 days to reach from 19k to 20k. The journey of the last 10,000 points was covered in just 869 sessions as against 7,297 sessions taken to touch the 10,000 mark from 1,000 levels. In 2007 alone, there were six 1,000-point rallies for the Sensex.

21,000, January 8, 2008

NSE (NATIONAL STOCK EXCHANGE)

The Organization :

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NIFTY:

The Nifty is relatively a new comer in the Indian market. S&P CNX Nifty is a 50 stock index accounting for 23 sectors of the economy. It is used for purposes such as benchmarking fund portfolios; index based derivatives and index funds.

The base period selected for Nifty is the close of prices on November 3, 1995, which marked the completion of one-year of operations of NSE's capital market segment. The base value of index was set at 1000.

S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is a specialized company focused upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services.



FUNDAMENTAL & TECHNICAL ANALYSIS



CHAPTER 4

FUNDAMENTAL AND TECHNICAL ANALYSIS

FUNDAMENTAL ANALYSIS:

Fundamental analysis is the method of evaluating securities by attempting to measure the intrinsic value of a particular stock. It is the study of everything from the overall economy and industry conditions, to the financial condition and management of specific companies (i.e., using real data to evaluate a stock’s value). The method utilizes items such as revenues, earnings, return on equity and profit margins to determine a company’s underlying value and potential for future growth.

One of the major assumptions under fundamental analysis is that, even though things get mis priced in the market from time to time, the price of an asset will eventually gravitate toward its true value. This seems to be a reasonable bet considering the long upward march of quality stocks in general despite regular setbacks and periods of irrational exuberance. The key strategy for the fundamentalist is to buy when prices are at or below this intrinsic value and sell when they got overpriced.

Fundamental analysis for identifying industries with growth potential :

After the objects of investment portfolio in terms of risk and return have been specified, one of the first decisions that an investment manager faces is to identify the industries, which have a high growth potential. Two approaches are suggested in this regard:

a) Statistical analysis of past performance: A statistical analysis of the immediate past performance of the share price indices of the various industries and changes therein related to the general price index of shares of all industries should be made. The Reserve Bank of India index numbers of security prices published every month in its bulletin may be taken to represent the behavior of share prices of the various industries in the last few years. The relative changes in the price index of each industry as compared with the changes in the average price index of the shares of all industries would show those industries which are having a higher growth potential in the past few years. It may be noted that an industry may not remain a growth industry for all the time. The analysis of share price indices over a number of years will enable the investment manager to identify the industries, which are rated high by the investors at the time of analysis. By this, one can perceive industries having a higher growth in their share prices indices and examine whether the growth potential is still there or not. In other words, the investment manager shall now have to make an assessment of the various characteristics of the industries to finalize a list of industries in which he will try to spread the investments.



b) Assessing the intrinsic value of an industry/company: After an investment manager has identified statistically the industries in the share of which the investors show interest, he would assess the various factors, which influence the value of a particular share. These factors generally relate to the strengths and weaknesses of the company under consideration, characteristics of the industry within which the company falls and the national and international economic scene. It is the job of the investment manager to examine and weigh the various factors and judge the quality of the share or the security under consideration. This approach is known as the intrinsic value approach.

TECHNICAL ANALYSIS:

Technical analysis is the examination of past price movements to forecast future price movements. Technical analysts are sometimes referred to as chartists because they rely almost exclusively on charts for their analysis.

Moving Average:

A Moving Average is an indicator that shows the average value of a security's price over a period of time. When calculating a moving average, a mathematical analysis of the security's average value over a predetermined time period is made. As the securities price changes, its average price moves up or down.

There are several popular ways to calculate a moving average. Meta Stock for Java calculates a "simple" moving average--meaning that equal weight is given to each price over the calculation period.

Interpretation:

The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself. A buy signal is generated when the security's price rises above its moving average and a sell signal is generated when the security's price falls below its moving average.

This type of moving average trading system is not intended to get you in at the exact bottom nor out at the exact top. Rather, it is designed to keep you in line with the security's price trend by buying shortly after the security's price bottoms and selling shortly after it tops.

The critical element in a moving average is the number of time periods used in calculating the average. When using hindsight, you can always find a moving average that would have been profitable. The key is to find a moving average that will be consistently profitable. The most popular moving average is the 39-week (or 200-day)



moving average. This moving average has an excellent track record in timing the major (long-term) market cycles.

Advantages:

The advantage of moving average system of this type (i.e., buying and selling when prices break through their moving average) is that you will always be on the "right" side of the market: prices cannot rise very much without the price rising above its average price. The disadvantage is that you will always buy and sell some late. If the trend does not last for a significant period of time, typically twice the length of the moving average, you will lose your money.

Support and Resistance:

Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control.

What Is Support?

Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.

Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level.

Where Is Support Established?

Support levels are usually below the current price, but it is not uncommon for a security to trade at or near support. Technical analysis is not an exact science and it is sometimes difficult to set exact support levels. In addition, price movements can be volatile and dip below support briefly. Sometimes it does not seem logical to consider a



support level broken if the price closes 1/8 below the established support level. For this reason, some traders and investors establish support zones.

What Is Resistance?

Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance.

Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears. A break above resistance shows a new willingness to buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices. In addition, sellers could not be coerced into selling until prices rose above resistance or above the previous high. Once resistance is broken, another resistance level will have to be established at a higher level.

Where Is Resistance Established?

Resistance levels are usually above the current price, but it is not uncommon for a security to trade at or near resistance. In addition, price movements can be volatile and rise above resistance briefly. Sometimes it does not seem logical to consider a resistance level broken if the price closes 1/8 above the established resistance level. For this reason, some traders and investors establish resistance zones.

So, Here, Identification of key support and resistance levels is an essential ingredient to successful technical analysis. Even though it is sometimes difficult to establish exact support and resistance levels, being aware of their existence and location can greatly enhance analysis and forecasting abilities. If a security is approaching an important support level, it can serve as an alert to be extra vigilant in looking for signs of increased buying pressure and a potential reversal. If a security is approaching a resistance level, it can act as an alert to look for signs of increased selling pressure and potential reversal. If a support or resistance level is broken, it signals that the relationship between supply and demand has changed. A resistance breakout signals that demand (bulls) has gained the upper hand and a support break signals that supply (bears) has won the battle.



Price Oscillator:

The Price Oscillator displays the difference between two moving averages of a security's price. The difference between the moving averages can be expressed in either points or percentages.

The Price Oscillator is almost identical to the MACD, except that the Price Oscillator can use any two user-specified moving averages. (The MACD always uses 12 and 26-day moving averages, and always expresses the difference in points.)

Interpretation:

Moving average analysis typically generates buy signals when a short-term moving average (or the security's price) rises above a longer-term moving average. Conversely, sell signals are generated when a shorter-term moving average (or the security's price) falls below a longer-term moving average. The Price Oscillator illustrates the cyclical and often profitable signals generated by these one or two moving average systems.

Price Rate-Of-Change:

The Price Rate-of-Change ("ROC") indicator displays the difference between the current price and the price x-time periods ago. The difference can be displayed in either points or as a percentage. The Momentum indicator displays the same information, but expresses it as a ratio.

Interpretation: It is a well-recognized phenomenon that security prices surge ahead and retract in a cyclical wave-like motion. This cyclical action is the result of the changing expectations as bulls and bears struggle to control prices.

The ROC displays the wave-like motion in an oscillator format by measuring the amount that prices have changed over a given time period. As prices increase, the ROC rises; as prices fall, the ROC falls. The greater the change in prices, the greater the change in the ROC.

The time period used to calculate the ROC may range from 1-day (which results in a volatile chart showing the daily price change) to 200-days (or longer). The most popular time periods are the 12- and 25-day ROC for short to intermediate-term trading. These time periods were popularized by Gerald Appel and Fred Hitschler in their book, Stock Market Trading Systems.



The 12-day ROC is an excellent short- to intermediate-term overbought/oversold indicator. The higher the ROC, the more overbought the security; the lower the ROC, the more likely a rally. However, as with all overbought/oversold indicators, it is prudent to wait for the market to begin to correct (i.e., turn up or down) before placing your trade. A market that appears overbought may remain overbought for some time. In fact, extremely overbought/oversold readings usually imply a continuation of the current trend.

The 12-day ROC tends to be very cyclical, oscillating back and forth in a fairly regular cycle. Often, price changes can be anticipated by studying the previous cycles of the ROC and relating the previous cycles to the current market

Relative Strength Index (RSI):

The Relative Strength Index ("RSI") is a popular oscillator. It was first introduced by Welles Wilder in an article in Commodities (now known as Futures) Magazine in June, 1978.

The name "Relative Strength Index" is slightly misleading as the Relative Strength Index does not compare the relative strength of two securities, but rather the internal strength of a single security. A more appropriate name might be "Internal Strength Index."

Interpretation:

When Wilder introduced the Relative Strength Index, he recommended using a 14-day Relative Strength Index. Since then, the 9-day and 25-day Relative Strength Indexs have also gained popularity. The fewer days used to calculate the Relative Strength Index, the more volatile the indicator.

The Relative Strength Index is a price-following oscillator that ranges between 0 and 100. A popular method of analyzing the Relative Strength Index is to look for a divergence in which the security is making a new high, but the Relative Strength Index is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the Relative Strength Index then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal.

In Mr. Wilder's book, he discusses five uses of the Relative Strength Index:

1. Tops and Bottoms. The Relative Strength Index usually tops above 70 and bottoms below 30. It usually forms these tops and bottoms before the underlying price chart.



2. Chart Formations. The Relative Strength Index often forms chart patterns such as head and shoulders or triangles that may or may not be visible on the price chart.

3. Failure Swings (also known as support or resistance penetrations or breakouts). This is where the Relative Strength Index surpasses a previous high (peak) or falls below a recent low (trough).

4. Support and Resistance. The Relative Strength Index shows, sometimes more clearly than price themselves, levels of support and resistance.

5. Divergences. As discussed above, divergences occur when the price makes a new high (or low) that is not confirmed by a new high (or low) in the Relative Strength Index. Prices usually correct and move in the direction of the Relative Strength Index.

Trendlines:

In the preceding section, we saw how support and resistance levels can be penetrated by a change in investor expectations (which results in shifts of the supply/demand lines). This type of a change is often abrupt and "news based."

In this section, we'll review "trends." A trend represents a consistent change in prices (i.e., a change in investor expectations). Trends differ from support/resistance levels in that trends represent change, whereas support/resistance levels represent barriers to change.

As shown in the following chart, a rising trend is defined by successively higher low-prices. A rising trend can be thought of as a rising support level--the bulls are in control and are pushing prices higher.

As shown in the next chart, a falling trend is defined by successively lower high-prices. A falling trend can be thought of as a falling resistance level--the bears are in control and are pushing prices lower.



The Bar Chart:

The Bar chart is one of the most popular types of charts used in technical analysis. As illustrated on the left, the top of the vertical line indicates the highest price at which a security traded during the day, and the bottom represents the lowest price. The closing price is displayed on the right side of the bar and the opening price is shown on the left side of the bar. A single bar like the one to the left represents one day of trading.

The chart below is an example of a bar chart for AT&T (T):



The advantage of using a bar chart over a straight-line graph is that it shows the high, low, open and close for each particular day.

Candle stick Charting:

Candlestick charts have been around for hundreds of years. They are often referred to as "Japanese candles" because the Japanese would use them to analyze the price of rice contracts.

Similar to a bar chart, candlestick charts also display the open, close, daily high and daily low. The difference is the use of color to show if the stock went up or down over the day.

The chart below is an example of a candlestick chart for AT&T (T). Green bars indicate the stock price rose, red indicates a decline:

Investors seem to have a "love/hate" relationship with candlestick charts. People either love them and use them frequently or they are completely turned off by them. There are several patterns to look for with candlestick charts - here are a few of the popular ones and what they mean.



.


This is a bullish pattern - the stock opened at (or near) its low and

closed near its high

The opposite of the pattern above, this is a bearish pattern. It

indicates that the stock opened at (or near) its high and dropped

substantially to close near its low.

Known as "the hammer", this is a bullish pattern only if it occurs

after the stock price has dropped for several days. A small body along

with a large range identifies a hammer. This pattern indicates that a

reversal in the downtrend is in the works.

Known as a "star”. For the most part, stars typically indicate a

reversal and or indecision. There is a possibility that after seeing a

star there will be a reversal or change in the current trend.


Point and Figure Chart:

The point & figure (P&F) chart is somewhat rare. In fact, most charting services do not even offer it. This chart plots day-to-day increases and declines in price: increases are represented by a rising stack of "X"s, while decreases are represented by a declining stack of "O"s. This type of chart was traditionally used for intraday charting (a stock chart for just one day), mainly because it can be long and tedious to create a P&F chart manually over a longer period of time.

The idea behind P&F charts is that they help you to filter out less significant price movements and to focus on the most important trends. Below is an example of a P&F chart for AT&T (T):

POPULAR CHARTING PATTERNS:

Technical analysts often use proven successful price patterns from great stocks as tools to find new great stocks. Let's look at a few examples

Cup and Handle - This is a pattern on a bar chart that can be as short as seven weeks and as long as 65 weeks. The cup is in the shape of a "U". The handle has a



slight downward drift. The right-hand side of the pattern has low trading volume. As the stock comes up to test the old highs, the stock will incur selling pressure by the people who bought at or near the old high. This selling pressure will make the stock price trade sideways with a tendency towards a downtrend for anywhere from four days to four weeks, then it will take off.

This pattern looks like a pot with a handle. It is one of the easier patterns to detect; and investors have made a lot of money using it.

Head and Shoulders - This is a chart formation resembling an "M" in which a stock's price:

- Rises to a peak and then declines, then - Rises above the former peak and again declines, and then - Rises again but not to the second peak and again declines.

The first and third peaks are shoulders, and the second peak forms the head. This pattern is considered a very bearish indicator.



Double Bottom - This pattern resembles a "W" and occurs when a stock price drops to a similar price level twice within a few weeks or months. You should buy when the price passes the highest point in the handle. In a perfect double bottom, the second decline should normally go slightly lower than the first decline to create a shakeout of jittery investors. The middle point of the "W" should not go into new high ground. This is a very Bullish indicator.

The belief is that, after two drops in the stock price, the jittery investors will be out and the long-term investors will still be holding on.



EIC ANALYSIS



CHAPTER: 5INDIAN ECONOMY: AN OVERVIEW

The economy has moved decisively to a higher growth phase. Till a few years ago, there was still a debate among informed observers about whether the economy had moved above the 5 to 6 per cent average growth seen since the 1980s. There is now no doubt that the economy has moved to a higher growth plane, with growth in GDP at market prices exceeding 8 per cent in every year since 2003-04. The projected economic growth of 8.7 per cent for 2007-08 is fully in line with this trend.

There was acceleration in domestic investment and saving rates to drive growth and provide the resources for meeting the 9 per cent (average) growth target of the Eleventh Five-Year Plan. Macroeconomic fundamentals continue to inspire confidence and the investment limate is full of optimism. Buoyant growth of government revenues made it possible to maintain fiscal consolidation as mandated under the Fiscal Responsibility and Budget Management Act (FRBMA). The decisive change in growth trend also means that the economy was, perhaps, not fully prepared for the different set of challenges that accompany fast growth. Inflation flared up in the last half of 2006-07 and was successfully contained during the current year, despite a global hardening of commodity prices and an upsurge in capital inflows. An appreciation of the rupee, a slowdown in the consumer goods segment of industry and infrastructure (both physical and social) constraints, remained of concern.

Raising growth to double digit will therefore require additional reforms. Per capita income and consumption 1.2 Growth is of interest not for its own sake but for the improvement in public welfare that it brings about. Economic growth, and in particular the growth in per capita income, is a broad quantitative indicator of the progress made in improving public welfare. Per capita consumption is another quantitative indicator that is useful for judging welfare improvement. It is therefore appropriate to start by looking at the changes in real (i.e. at constant prices) per capita income and consumption 1.3.

The pace of economic improvement has moved up considerably during the last five years (including 2007-08). The rate of growth of per capita income as measured by per capita GDP at market prices (constant 1999-2000 prices) grew by an annual average rate of 3.1 per cent during the 12- year period, 1980-81 to 1991-92. It accelerated marginally to 3.7 per cent per annum during the next 11 years, 1992-93 to 2002-03. Since then there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2 per cent per annum (2003-04 to 2007-08). This means that average income would now double in a decade, well within one generation, instead of after a generation (two decades). The growth rate of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of the five years to the current year. 1.4 Per capita private final consumption expenditure has increased in line with per capita income. The growth of per capita consumption accelerated from an average of 2.2 per cent per year during the 12 years from 1980-81 to 1991-92 to 2.6 per cent per year during the next 11 years following the reforms of the 1990s. The growth rate has almost doubled



to 5.1 per cent per year during the subsequent five years from 2003-04 to 2007-08, with the current year’s growth expected to be 5.3 per cent, marginally higher than the five year average. The average growth of consumption is slower than the average growth of income, primarily because of rising saving rates, though rising tax collection rates can also widen the gap

1. The Gross Domestic Product increased by 7.5 per cent, 9.4 per cent and 9.6 percent in first three years, of the UPA Government resulting in an unprecedented average growth rate of 8.8 per cent. The drivers of growth continue to be 'services' and 'manufacturing' which are estimated to grow at 10.7 per cent and 9.4 per cent respectively.

2. Growth rate in agriculture for 2007-08 is estimated at 2.6 per cent.3. Food grain production in 2007-08, estimated at 219.32 million tonnes-an all time

record. Rice production at 94.08 million tonnes, maize at 16.78 million tonnes, soya bean at 9.45 million tonnes, cotton at 23.38 million bales each, an all time record.

4. Rashtriya Krishi Vikas Yojana launched with an outlay of Rs. 25,000 crore, National Food Security Mission with an outlay of Rs. 4,882 crore under National Policy for Farmers in the Eleventh Five Year Plan.

CAPITAL AND COMMODITY MARKETS:

The capital and commodity markets remained buoyant during 2007. Relatively stable macroeconomic conditions as reflected in moderate rate of inflation, growth-conducive interest rate situation, improved fiscal conditions and larger investor participation augured well for capital and commodity markets as measured in terms of volume and value of transactions.

Capital Markets:

The Indian capital market attained further depth and width in business transacted during 2007. The Bombay Stock Exchange (BSE) Sensex, which had been witnessing an upswing since the latter part of 2003, scaled a high of 20,000 mark at the close of calendar year 2007. The National Stock Exchange (NSE) Index rose in tandem to close above the 6,100 mark at the end of 2007. Both the indices more than tripled between 2003 and 2007, giving handsome yearly returns. Alongside the growth of business in the Indian capital market, the regulatory and oversight norms have improved over the years, ensuring a sound and stable market.

1. Measures to expand the market for corporate bonds: Exchange-traded currency and interest rate futures to be launched and transparent credit derivatives market to be developed with appropriate safeguards; Tradability of domestic convertible bonds to be enhanced through the mechanism of enabling investors to separate the embedded



equity option from the convertible bond, and trade it separately; Development of a market-based system for classifying financial instruments based

on their complexity and implicit risks to be encouraged.

2. Permanent Account Number (PAN): Requirement of PAN extended to all transactions in the financial market subject to suitable threshold exemption limits.

3. National market for securities: Empowered Committee of State Finance Ministers to be requested to work with the Central Government to create pan Indian market for securities that will expand the market base and enhance the revenues of the State Governments.

Primary Market:

The primary capital market grew in 2006 and 2007 after the set back of 2005. The amounts raised and the number of new issues which entered the market increased in 2007. The total amount of capital raised through different market instruments during 2007 was 31.5 per cent higher than during 2006, which itself had seen a rebound of 30.6 percent over the lows of 2005.

Secondary Market:

In the secondary market segment, the market activity expanded further during 2007-08 with BSE and NSE indices scaling new peaks of 21,000 and 6,300, respectively, in January 2008. Although the indices showed some intermittent fluctuations, reflecting change in the market sentiments, the indices maintained their northbound trend during the year. This could be attributed to the larger inflows from Foreign Institutional Investors (FIIs) and wider participation of domestic investors, particularly the institutional investors. During 2007, on a point-to-point basis, Sensex and Nifty Indices rose by 47.1 and 54.8 per cent, respectively. The buoyant conditions in the Indian bourses were aided by, among other things, India posting a relatively higher GDP growth amongst the emerging economies, continued uptrend in the profitability of Indian corporates, persistence of difference in domestic and international levels of interest rates, impressive returns on equities and a strong Indian rupee on the back of larger capital inflows.

Budget Estimates:

1. Plan Expenditure estimated at Rs.243,386 crore.2. Non-Plan Expenditure estimated at Rs.507,499 crore.3. Revenue deficit for 2007-08 to be 1.4 per cent (against a BE of 1.5 per cent) and the

fiscal deficit to be 3.1 per cent (against a BE of 3.3 per cent); Revenue receipts of Central Government for 2008-09 projected at Rs.602, 935 crore and revenue expenditure at Rs.658,119 crore; Revenue deficit for 2008-09 estimated at Rs.55,184 crore, which amounts to 1.0 per cent of GDP; Fiscal deficit for 2008-09 estimated at Rs.133,287 crore which is 2.5 per cent of GDP; elimination of Revenue Deficit may



need one more year; because of the conscious shift in expenditure in favour of health, education and the social sector.

4. Thirteenth Finance Commission to be requested to revisit the roadmap for fiscal adjustment and suggest a suitably revised roadmap, after the obligations on account of the Sixth Central Pay Commission becomes clear.

Stock markets:

Stock markets are an important instrument of financial intermediation. They saw increased activity in 2007-08. Primary market issue of debt and equity increased along with private placement. The secondary market too showed a rising trend, notwithstanding intermittent ups and downs in the stock prices responding mainly to global developments. The Bombay Stock Exchange (BSE) Sensex rose from 13,072 at end-March 2007 to 18,048 as on February 18, 2008, while the National Stock Exchange (NSE) index Nifty 50 rose from 3,822 to 5,277 during the same period. Both the indices gave a return of around 38 per cent during this period. The higher net mobilization of resources by mutual funds showed that investors were realizing the importance of using intermediaries in risky markets. All the other indicators of capital market such as market capitalization, turnover and price-earning ratio remained strong. The commodity market also showed signs of expansion in terms of turnover and number of transactions during the year.

Industry and infrastructure:

The industrial sector witnessed a slowdown in the first nine months of the current financial year. The growth of 9 per cent during April-December 2007, when viewed against the back drop of the robust growth witnessed in the preceding four years, suggests that there is a certain degree of moderation in the momentum of the industrial sector. The consumer durable goods sector in particular has shown a distinct slowdown. This is linked to the hardening of interest rates and therefore to the conditions prevailing in the domestic credit sector. In contrast, the capital goods industry has sustained strong growth performance during 2007-08 (April-December).

At the product group level, the moderation in growth has been selective. Industries like chemicals, food products, leather, jute textiles, wood products and miscellaneous manufacturing products witnessed acceleration in growth, while basic metals, machinery and equipments, rubber, plastic and petroleum products and beverages and tobacco recorded lower but strong growth during April-December 2007. Other industries including textiles (except jute textiles), automotives, paper, non-metallic mineral products and metal products slowed down visibly during the period. The slowdown in the case of less import-intensive sectors like textiles is coincident with the decline in the growth of exports arising from the sharp appreciation in the rupee vis-a-vis the dollar. Within automobiles, while passenger cars, scooters and mopeds witnessed buoyant growth, the production of motor cycles and three wheelers slackened. In a nutshell, the industrial sector has produced mixed results in the current fiscal.



CHAPTER 6OVERVIEW OF AUTOMOBILE INDUSTRY IN INDIA

The global automotive industry is a highly diversified sector that comprises of manufacturers, suppliers, dealers, retailers, original equipment manufacturers, aftermarket parts manufacturers, automotive engineers, motor mechanics, auto electricians, spray painters or body repairers, fuel producers, environmental and transport safety groups, and trade unions. United States, Japan, China, Germany and South Korea are the top five automobile manufacturing nations throughout the world. The United States of America is the worldâ€™s largest producer and consumer of motor vehicles and automobiles accounting for 6.6 million direct and spin-off jobs and represents nearly 10% of the S10 trillion US economy. The automobile is one of the important industries in the world, which provides employment to 25 million people in the world.

The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years.

As per Society of Indian Automobile Manufacturers (SIAM) the market share of each segment of the industry is as follows:




The market shares of the segments of the automobile industry

The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the customers’ needs to a large extent.

Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales.

There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological advancements. Besides, there are many new projects coming up in the automobile industry leading to the growth of the sector.

The Government of India has liberalized the foreign exchange and equity regulations and has also reduced the tariff on imports, contributing significantly to the growth of the sector. Having firmly established its presence in the domestic markets, the Indian automobile sector is now penetrating the international arena. Vehicle exports from India are at their highest levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle East and African and Asian markets.







The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena.

Growth in the Sector:At present the industry is enjoying a growth rate of 14-17% per annum, with

domestic sales growth at 12.8%. The growth rate is predicted to double by 2015.

As it is seen, the total sales of passenger vehicles - cars, utility vehicles and multi-utility vehicles - in the year 2005 reached the mark of 1.06 million. The current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes.

Financing schemes have become an important factor in the growth of automobile sales. More and more financial schemes are coming up with easy installment plans to lure the customers.

Apart from domestic production, the industry is consistently focusing on the automobile exports. The auto component segment is contributing a lot in the export arena. The liberalized policies of the government are now making the companies go for more and more exports.

The automobile exports are increasing year by year. According to the Society of Indian Automobile Manufactures (SIAM) automobile exports in the last five years are as follows:





SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY:

STRENGTHS:

Globally cost competitive Adheres to strict quality controls Has access to latest technology Provides support to critical infrastructure and metal industries

WEAKNESSES:

Industry has low level of research and development capability Industry is exposed to cyclical downturns in the automotive industry Most component companies are dependent on global majors for technology

OPPORTUNITIES:

May serve as sourcing hub for global automobile majors Significant export opportunities may be realised through diversification of export

basket Implementation of Value-Added-Tax (VAT) in FY2004 will negate the cascading

impact of prices

THREATS:

The presence of a large counterfeit components market poses a significant threat Pressure on prices from OEMs continues Imports pose price based competition in the replacement market

CHAPTER: 7



BUDGET IMPACT ON THESE SECTORS

Budget 2008-09: Automobile Industry:

The Budget 2008 has finally brought welcome relief to the auto sector, which was otherwise spinning under a slowdown caused by firm interest rates.

Mr. P. Chidambaram, Finance Minister on Friday, has announced a surprise cut in excise duty for small cars (4,000 mm in length and engines with 1.2 litres capacity, if petrol or 1.5 litres capacity, if diesel) from 16% to 12%.

With this move, small cars will cost Rs. 7000 to 16000 less. Maruti Suzuki, a major listed player in the passenger car market, will be the main beneficiary.

The company has announced a reduction in prices of some of its models following Finance Minister P. Chidambaram's proposal. The models are Maruti 800, Omni, Zen, WagonR, Swift Diesel and Alto.

Commercial vehicles, too, stand to beneficiated with the budget proposal. The excise duty on buses has been reduced to 12% while on trucks it was reduced to 14%. It is anticipated that the reduction will bring down prices by Rs 20,000-Rs 40,000.

Excise duties on hybrid cars have also been reduced by 14% to 24% and on two and three-wheelers to 16% from 24%.

The Players across all segments, be it the two-wheeler, car or commercial vehicle makers, stand to benefit from the excise duty cuts announced. It is expected that duty reduction will provide cheer to small carmakers, two wheeler makers and bus makers.

However, the budget failed to excite the industry captains, as corporate tax, dividend distribution tax and surcharge were left unchanged, contrary to market expectations.

In order to encourage clean fuel technology, Mr. Chidambaram also reduced excise duty by 10% on hybrid cars, which are yet to be launched in the Indian market, from 24%.

Budget 2008: Impact on Auto Sector



Proposal Impact Excise duty on small cars reduced to

12% from 16% Excise duty on two & three-wheelers

reduced to 12% from 16% Excise duty on buses and other

transport vehicles reduced to 12% from 16%

Excise duty on hybrid cars reduced to 14% from 24%

Excise duty on electric cars down to zero from 8%

Excise duty on specified electric car parts withdrawn from 16%

Positive: Will be passed on to customers and help demand growth.Gainers: Maruti, Tata Motors, Hero Honda, Bajaj Auto, Ashok Leyland

Budget Measures:

Reduction in excise duties from 16% to 12% on manufacturing of 2&3 wheelers, buses and small cars.

Agricultural credit outlay increased to Rs 2,80,000 crore. 10% increase in defence sector allocation to Rs 1,05,600 crore. Dividend tax paid by parent company allowed to be set off against the same paid by

its subsidiary. Higher allocation towards road development programme such as the NHDP

Budget Impact:

Excise duty reductions will help lower prices and stimulate demand for 2&3 wheelers and small cars.

Increased demand for new buses from STUs (State Transport Undertakings) as well as private players.

Higher defence allocation will spur investment in new vehicles.

Higher agricultural credit outlay will help boost demand for tractors.

Increased thrust on road infrastructure is a positive for all the automobile manufacturers especially passenger vehicles and CVs.



Company Impact:

2&3 wheeler makers like Hero Honda, Bajaj and TVS Motors to benefit from reduction in excise duties.

Small car players like Tata Motors and Maruti will reap the benefit from small cars excise duty reductions.

Ashok Leyland and Tata Motors, the leading bus manufacturers will benefit from excise duty reductions on buses.

Suppliers to the defence sector like M&M and Ashok Leyland to benefit from higher defence sector allocation.

Increased agriculture credit outlay will benefit two-wheeler makers as well as tractor manufacturers like M&M and Punjab Tractors.

Industry Wish list:

Excise duty of 16% which is applicable currently only on the small cars of certain engine and length specifications should be made applicable to vehicles across all the segments.

The weighted deduction of 150% of the expenses incurred on scientific research should be extended for a further period of at least 10 years even after 2012. Small cars, which attract 16% excise duty, should be defined on the basis of the length of 4,000 mm and the criteria based on engine capacity should be removed.

Definition of capital goods should be amended to treat motor vehicle as capital goods for service providers such as Architect, Chartered Accountant, Cost Accountant, Company Secretary and the like.

No interest shall be charged on differential excise duty paid on finalization of prices. Alternatively this exemption from interest can be given for modvatable inputs or in the situation where gap between provisionally assessed price and finally assessed price is upto 20%.

An appropriate procedure/form etc. should be introduced for exempting goods from levy of CST, which is to be used in manufacture of products to be exported.



Budget over the years

Budget 2005-06 Budget 2006-07 Budget 2007-08Custom duty on second hand motorcars and motorcycles reduced to 100% as compared to 105% earlier. Custom duty on new cars maintained at 60%.

Excise duty on tractors of engine capacity more than 1800 cc for semi trailers to attract @ 16%.

Introduction of new income tax brackets.

Peak customs duty reduced from 20% to 15%.

Excise duty on tyres, tubes and flaps reduced from 24% to 16%. Customs duty on lead cut to 5%.

Agricultural lending target set at Rs 1,750 bn for FY07, an increase of 32.5%. One time grant to farmers who have availed loans from scheduled commercial banks, RRBs and PSCs for Kharif and Rabi 2005-06 of a principle amount up to Rs 0.1 m and interest rate of up to 2%. Short-term credit to farmers at 7% for loans up to Rs 0.3 m and 0.6 m hectors to be brought under irrigation in FY07.

Excise duty on cars having engine capacity up to 1,200 cc (petrol based engines) and 1,500 cc (diesel based engines) and length of the car up to 4,000 mm reduced from 24% to 16%.

Budget support for NHDP enhanced from Rs 93 bn to Rs 99 bn in 2006-07. Around 1,000 kms of access-controlled expressways (totaling six) to be developed on BOT basis.

Custom duty on alloy steel and non-ferrous (primary and secondary) metals

Customs duty on new and second hand motor cars/two wheelers will continue at 60% and 100% respectively

Secondary and higher education cess @ 1% of the aggregate of duties of excise has been imposed on excisable goods including automobiles. This would be in addition to existing education cess of 2% imposed in budget 2004

A weighted deduction of 150% for expenditure relating to in-house research and development to be extended to five more years

Hike in the dividend distribution tax from the current 12.5% to 15%

Farm credit outlay to be increased by Rs 500 bn and 5 m new farmers to be added to the banking system



reduced from 10% to 7.5%. Peak customs duty reduced from 15% to 12.5%.

Key Positives Key Negatives

Rising middle class: Expansion of population between the age group of 25 to 50 years, increasing affluence of the Indian middle class and heightened competition amongst automobile manufacturers, resulting in improved quality offerings, will continue to be the key drivers for the industry in terms of both market size and production capacities.

The 'Nano' effect: Penetration of cars in India at around 7 per thousand is even below countries like Pakistan and Sri Lanka. However, the launch of Tata's small car 'Nano', touted to be the cheapest in the world is likely to change that. The price will make cars affordable to thousands of families, thus greatly pushing up the density in the country and giving a big boost to volumes.

Increasing exports: The Indian auto industry has emerged as an export hub, on account of its low cost technical manpower and increasing focus on quality. To give a perspective, in the last five years (FY02-FY07), volume exports of Indian automobiles have increased by 41% CAGR, led by motorcycles (CAGR of 57%). This development has led to domestic players increasing their share of exports in the overall pie.

Infrastructure thrust: Improvement in road infrastructure has led to increased

Competition from imports: With India coming under the WTO purview and the increasing free trade agreements (FTAs), competition is expected to rise multifold. Indian companies also have to contend with imports in the future. Already a number of global auto companies are introducing vehicles through the completely knocked down (CKD) route.

Taxation anomalies: Indian automobile industry is amongst the highly taxed industries as not only the final product bears heavy taxes but the cascading effect of duties on some key raw materials and components also hurts profit margins of auto companies. Also, multiple tax rules that exist in different states are eroding the comparative advantage of a large domestic market thus making the uniform implementation of VAT (Value Added Tax) necessary.



movement of goods through roadways. Around 65% of all the goods movement in the country takes place by roads as opposed to 55% a decade ago. Also, owing to the fact that an estimated 45% of CVs (commercial vehicles) plying on the roads are more than 10 years old, demand for HCVs (heavy commercial vehicles) is expected to grow by a steady rate in the long term.

Low interest rate regime: Close to 80% of the new vehicles being purchased in the country are financed, thus underlying the importance of a low interest rate regime to the fortunes of the industry. Though the interest rates have risen significantly in recent times, we believe it is likely to have only a small impact over the medium term as there has been a substantial rise in income levels.

Regulation led benefits: Implementation of pollution norms like restriction on the age of the vehicle plying on the road and overloading of commercial vehicles would seemingly aid higher volume growth of this segment.



CHAPTER: 8

COMPANY ANALYSIS

MARUTI SUZUKI INDIA LTD.

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India. On 17 September, 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi.

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.

The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.



Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2006-07, Maruti Suzuki sold about 675,000 cars, of which 39,000 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983.

Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800, for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand Vitara.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for seven years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to make a people’s car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorise India.

FINANCIAL SUMMARY:



Maruti Suzuki India Ltd has announced the following Audited results for the quarter ended December 31, 2007: The Company has posted profit after tax of Rs 467.04 crores for the quarter ended December 31, 2007 as compared to Rs 376.41 crores for the quarter ended December 31, 2006 i.e., 24.08% increase in profit after tax in the year 2007. Total Income has increased from Rs 4451.47 crores for the quarter ended December 31, 2006 to Rs 5651.17 crores for the quarter ended December 31, 2007.

Latest Quarterly Results

Rs. cryear 2007/12 2006/12 var %

Sales Income 5,480.50 4,323.04 26.77

Other Income 170.67 128.43 32.89

Expenditure 4,867.25 3,815.88 27.55

Interest 14.36 15.74 -8.77

Gross Profit 769.56 619.85 24.15

Depreciation 86.73 75.86 14.33

Tax 215.79 167.58 28.77

PAT 467.04 376.41 24.08

Equity 144.46 144.46 0.00

OPM (%) 11.19 11.73 -0.54

GPM (%) 10.93 11.37 -0.44

NPM (%) 8.52 8.70 -0.18

Balance Sheet

Rs. crYear 2007/03 2006/03

Source of Funds

Equity Capital 144.50 144.50

Prefrential Capital 0.00 0.00

Reserves and Surplus 6,709.40 5,308.10

Secured Loans 63.50 71.70

Unsecured Loans 567.30 0.00

Total 7,484.70 5,524.30

Application of Funds

Gross Block 6,146.80 4,954.60

Accumulated Deprecation 3,487.10 3,259.40



Net Block 2,659.70 1,695.20

NetCurrentAssets 1,176.90 1,685.90

Total 7,484.70 5,524.30

Fundamentals of Maruti Suzuki India Ltd.Particulars 2003 2004 2005 2006 2007

Return on Equity 0.0473 0.1510 0.1949 0.2181 0.2279Book Value 107.23 124.30 151.56 188.73 237.23Debt Equity 0.14 0.08 0.07 0.01 0.09P/E Ratio 14.58DPS 1.50 1.50 2.00 3.50 4.50EPS 5.07 18.76 29.55 41.16 54.07RONW 3.93 17.10 19.03 23.24 22.63Current Ratio 1.57 1.17 1.68 1.77 1.42Quick Ratio 1.20 0.85 1.25 1.31 1.13Interest Coverage Ratio 11.60 32.32 49.70 104.61 68.23Retention Ratio 16.1755 5.2187 4.1530 3.7969 3.7101Bonus Adjustment 1 1 1 1 1Adjusted EPS 5.07 18.76 29.55 41.16 54.07

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TATA MOTORS

Tata Motors Limited formerly known as TELCO (TATA Engineering and Locomotive Company), (NYSE: TTM) - is India's largest passenger automobile and commercial vehicle manufacturing company. It is a part of the Tata Group, and has its headquarters in Mumbai, Maharashtra. One of the world's largest manufacturers of commercial vehicles and known for its hatchback passenger vehicle Tata Indica, Tata Motors has its manufacturing base in Jamshedpur, Lucknow, Pune and Singur. The OICA ranked it as the world's 21st largest vehicle manufacturer, based on figures for2006.

Tata Motors was established in 1945, when the company began making trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors gained Rs. 320 billion during 2001-2006 which was among the top 10 corporate profits in India. In 2004 it also bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. On 10 January 2008, Tata Motors launched their much awaited Tata Nano, noted for its Rs 100,000 price-tag, at Auto Expo 2008 in Pragati Maidan, Delhi.

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer.

The company's 22,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Tata Motors helps its employees realise their potential through innovative HR practices. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. All-round potential development and performance improvement is ensured by regular in-house and external training. The company has won several awards recognizing its training programmes.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets.


http://en.wikipedia.org/wiki/Image:Tata_logo1.gif%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5


The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2006-07 of $28.8 billion, the equivalent of about 3.2 per cent of the country's GDP, and the international revenues of the Group in 2006-07 were US$ 10.8 billion, contributing to 38% of the total Group revenues. Tata companies together employ over 300,000 people.

FINANCIAL SUMMARY:

The Company has posted a net profit of Rs 499.05 crores for the quarter ended December 31, 2007 as compared to Rs 513.17 crores for the quarter ended December 31, 2006. Total Revenues has increased from Rs 8061.73 crores for the quarter ended December 31, 2005 to Rs 8456.18 crores for the quarter ended December 31, 2007.

Latest Quarterly Results

Rs. crYear 2007/12 2006/12 var %

Sales Income 8,364.37 8,047.41 3.94

Other Income 91.81 14.32 541.13

Expenditure 7,531.80 7,123.86 5.73

Interest 91.77 85.17 7.75

Gross Profit 832.61 852.70 -2.36

Depreciation 167.51 143.50 16.73

Tax 166.05 195.57 -15.09

PAT 499.05 513.17 -2.75

Equity 385.54 385.32 0.06

OPM (%) 9.95 11.48 -1.53

GPM (%) 8.86 10.42 -1.56

NPM (%) 5.96 6.37 -0.41




Balance Sheet

Rs. crYear 2007/03 2006/03

Source of Funds

Equity Capital 385.41 382.87

Prefrential Capital 0.00 0.00

Reserves and Surplus 6,458.39 5,127.81

Secured Loans 2,022.04 822.76

Unsecured Loans 1,987.10 2,114.08

Total 10,852.94 8,447.52

Application of Funds

Gross Block 8,775.80 7,971.55

Accumulated Deprecation 4,894.54 4,401.51

Net Block 3,855.31 3,543.65

NetCurrentAssets 1,997.22 1,923.41

Total 10,852.94 8,447.52

Fundamentals of Tata MotorsParticulars 2003 2004 2005 2006 2007

Return on Equity 0.1156 0.2257 0.3009 0.2774 0.2796Book Value 81.22 101.71 113.65 143.94 177.59Debt Equity 0.56 0.35 0.60 0.53 0.58P/E Ratio 12.67DPS 4.00 8.00 12.50 13.00 15.00EPS 9.38 22.96 34.19 39.94 49.65RONW 12.32 22.98 30.12 24.17 24.67Current Ratio 0.84 0,72 0.99 1.24 1.24Quick Ratio 0.52 0.47 0.76 0.96 0.91Interest Coverage Ratio 3.82 8.69 10.24 8.08 7.62Retention Ratio 0.5192 0.7599 0.8776 0.9986 1.0525Bonus Adjustment 1 1 1 1 1Adjusted EPS 9.38 22.96 34.19 39.94 49.65




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TECHNICAL ANALYSIS



CHAPTER: 9

TECHNICAL ANALYSIS

[By Using RSI Method]

Company: Maruti Suzuki India Ltd.

Sector: Automobile Sector

Relative Strength Index

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI2-Apr-07 749.25 - -3-Apr-07 756.45 7.2 -4-Apr-07 745.95 - 10.55-Apr-07 755.9 9.95 -9-Apr-07 789.45 33.55 -10-Apr-07 786.15 - 3.311-Apr-07 781.95 - 4.212-Apr-07 758.95 - 2313-Apr-07 771.95 13 -16-Apr-07 778 6.05 -17-Apr-07 762.1 - 15.918-Apr-07 764.25 2.15 -19-Apr-07 771.9 7.65 -20-Apr-07 778.6 6.7 - 10.78125 11.38 0.947386 48.6491123-Apr-07 766.9 - 11.7 10.78125 11.43333 0.942966 48.5323124-Apr-07 796 29.1 - 13.51875 11.43333 1.182398 54.1788425-Apr-07 791 - 5 13.51875 10.51667 1.28546 56.2451226-Apr-07 797.5 6.5 - 13.0875 10.51667 1.244453 55.4457227-Apr-07 795.9 - 1.6 10.16429 9.242857 1.099691 52.3739430-Apr-07 806.1 10.2 - 10.16875 10.23333 0.993689 49.841723-May-07 814.35 8.25 - 9.955556 11.44 0.870241 46.530954-May-07 807.45 - 6.9 9.955556 8.22 1.211138 54.774427-May-07 804.95 - 2.5 9.575 7.266667 1.317661 56.853048-May-07 800.75 - 4.2 10.07857 6.828571 1.475941 59.611329-May-07 802.3 1.55 - 9.0125 5.316667 1.695141 62.8961910-May-07 794.9 - 7.4 9.992857 5.614286 1.779898 64.0274611-May-07 795.5 0.6 - 8.985714 5.614286 1.600509 61.5459914-May-07 803.7 8.2 - 9.2 5.614286 1.638677 62.1022215-May-07 806.55 2.85 - 8.40625 4.6 1.827446 64.6323916-May-07 802.55 - 4 5.45 4.514286 1.207278 54.6953417-May-07 816.8 14.25 - 6.55 4.433333 1.477444 59.6358118-May-07 810.1 - 6.7 6.557143 4.757143 1.378378 57.95455



21-May-07 821 10.9 - 7.1 5.283333 1.343849 57.33513

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI22-May-07 830.6 9.6 7.025 5.283333 1.329653 57.0751523-May-07 815.2 - 15.4 6.85 6.728571 1.018047 50.4471324-May-07 810.4 - 4.8 6.85 6.428571 1.065556 51.5868725-May-07 810.3 - 0.1 6.85 6.085714 1.125587 52.9541728-May-07 825.95 15.65 - 7.95 6.4 1.242188 55.400729-May-07 819.95 - 6 8.864286 6.342857 1.397523 58.2902830-May-07 804.6 - 15.35 8.864286 7.478571 1.185291 54.2395131-May-07 817.1 12.5 - 10.56429 7.478571 1.412607 58.551071-Jun-07 811.25 - 5.85 10.95833 7.275 1.5063 60.100554-Jun-07 806.55 - 4.7 12.58 6.988889 1.8 64.285715-Jun-07 799.8 - 6.75 12.58 7.294444 1.7246 63.297376-Jun-07 776.6 - 23.2 12.1625 8.885 1.36888 57.785967-Jun-07 760.95 - 15.65 12.1625 9.78 1.243609 55.428968-Jun-07 737.55 - 23.4 12.58333 11.01818 1.142052 53.3157911-Jun-07 733.35 - 4.2 14.075 10.45 1.34689 57.3904212-Jun-07 719.65 - 13.7 14.075 10.30833 1.3654 57.7238613-Jun-07 721.2 1.55 - 9.9 10.80909 0.915896 47.8050914-Jun-07 729.15 7.95 - 9.4125 11.88 0.792298 44.2057115-Jun-07 740.1 10.95 - 8.2375 11.88 0.693392 40.9469418-Jun-07 742.85 2.75 - 7.14 12.53333 0.569681 36.2927819-Jun-07 751.45 8.6 - 7.383333 12.18125 0.606123 37.7382620-Jun-07 767.9 16.45 - 8.041667 12.18125 0.660168 39.7651221-Jun-07 759.05 - 8.85 8.041667 12.55625 0.640451 39.0411722-Jun-07 761.35 2.3 - 7.221429 13.67857 0.527937 34.5522925-Jun-07 753.3 - 8.05 7.221429 13.86429 0.520866 34.2479726-Jun-07 757.3 4 - 6.81875 12.30833 0.553995 35.6497127-Jun-07 751.3 - 6 6.81875 10.7 0.637266 38.9225828-Jun-07 748.7 - 2.6 6.81875 7.233333 0.942684 48.5248329-Jun-07 744.15 - 4.55 6.81875 7.291667 0.935143 48.324232-Jul-07 770.6 26.45 - 9 6.01 1.497504 59.960033-Jul-07 783.5 12.9 - 10.26111 6.01 1.70734 63.063374-Jul-07 791.4 7.9 - 10.25556 6.01 1.706415 63.050755-Jul-07 805.05 13.65 - 10.55556 6.01 1.756332 63.71996-Jul-07 797 - 8.05 11.53125 6.35 1.815945 64.487949-Jul-07 795.7 - 1.3 11.95 5.628571 2.123096 67.980510-Jul-07 813.75 18.05 - 12.17857 5.628571 2.163706 68.391511-Jul-07 806.3 - 7.45 12.17857 5.428571 2.243421 69.1683612-Jul-07 828.35 22.05 - 15 5.428571 2.763158 73.4265713-Jul-07 831.3 2.95 - 13.49375 4.991667 2.703255 72.9967316-Jul-07 827.65 - 3.65 14.85 4.8 3.09375 75.5725217-Jul-07 824.85 - 2.8 14.85 4.342857 3.419408 77.3725318-Jul-07 820.65 - 4.2 14.85 4.571429 3.248438 76.46193



19-Jul-07 827.05 6.4 - 13.79375 4.575 3.015027 75.09357

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI20-Jul-07 826.9 - 0.15 11.98571 3.942857 3.039855 75.2466423-Jul-07 830.05 3.15 - 10.59286 3.942857 2.686594 72.8746924-Jul-07 819.55 - 10.5 11.04167 4.7625 2.31846 69.8655425-Jul-07 809.9 - 9.65 10.52 5.305556 1.982827 66.4747626-Jul-07 839.4 29.5 - 13.68333 4.9625 2.757347 73.3854727-Jul-07 830.25 - 9.15 13.68333 5.94375 2.302138 69.7165930-Jul-07 845.85 15.6 - 13.275 5.94375 2.233438 69.0731731-Jul-07 844.55 - 1.3 13.275 5.175 2.565217 71.951221-Aug-07 821.2 - 23.35 11.52 7.194444 1.601236 61.556732-Aug-07 832.3 11.1 - 13.15 7.194444 1.827799 64.636813-Aug-07 850.65 18.35 - 14.01667 7.6375 1.835243 64.729656-Aug-07 824.9 - 25.75 14.01667 10.50625 1.334127 57.157427-Aug-07 824.85 - 0.05 14.01667 9.9875 1.403421 58.392648-Aug-07 836.6 11.75 - 14.90833 9.9875 1.492699 59.882859-Aug-07 826.85 - 9.75 14.90833 11.1875 1.332588 57.1291710-Aug-07 809.55 - 17.3 17.26 11.86667 1.454494 59.2584113-Aug-07 832.7 23.15 - 18.24167 12.0375 1.515403 60.2449414-Aug-07 823.55 - 9.15 18.24167 11.975 1.523312 60.3695516-Aug-07 793.45 - 30.1 15.99 13.98889 1.14305 53.3375317-Aug-07 778.65 - 14.8 15.99 14.61667 1.093957 52.2435220-Aug-07 783.75 5.1 - 13.89 14.61667 0.950285 48.7254421-Aug-07 767.5 - 16.25 13.89 16.27778 0.853311 46.042522-Aug-07 765.8 - 1.7 13.89 13.87222 1.001282 50.0320223-Aug-07 775.95 10.15 - 13.7 13.87222 0.987585 49.6876924-Aug-07 790.05 14.1 - 12.85 13.87222 0.926312 48.0873227-Aug-07 833.45 43.4 - 17.94167 12.3875 1.448369 59.1564828-Aug-07 832.5 - 0.95 17.94167 12.5 1.435333 58.9378629-Aug-07 833.55 1.05 - 16.15833 12.5 1.292667 56.3826730-Aug-07 836.75 3.2 - 14.30714 12.89286 1.109695 52.5997931-Aug-07 867.7 30.95 - 16.3875 12.15833 1.347841 57.407683-Sep-07 881.65 13.95 - 15.2375 12.15833 1.253256 55.619774-Sep-07 893.3 11.65 - 14.83889 12.76 1.162922 53.766255-Sep-07 873.75 - 19.55 14.83889 10.65 1.393323 58.217096-Sep-07 880.65 6.9 - 14.045 9.6125 1.461118 59.368077-Sep-07 873.3 - 7.35 15.03889 9.16 1.6418 62.1470210-Sep-07 874.6 1.3 - 13.665 7.3875 1.849746 64.9091611-Sep-07 861.15 - 13.45 13.665 10.325 1.323487 56.9612312-Sep-07 859.55 - 1.6 14.05556 8.58 1.638177 62.0950313-Sep-07 891.7 32.15 - 16.06111 8.58 1.871924 65.1801414-Sep-07 866.75 - 24.95 12.64375 11.30833 1.118091 52.7876817-Sep-07 874.95 8.2 - 12.15 13.38 0.908072 47.5910718-Sep-07 875.4 0.45 - 12.08333 13.38 0.903089 47.45386



19-Sep-07 923.85 48.45 - 17.11111 13.38 1.278857 56.11836

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI20-Sep-07 910.15 13.7 15.38125 13.43333 1.145006 53.3800921-Sep-07 931.4 21.25 - 16.29375 13.43333 1.212934 54.8111324-Sep-07 980.75 49.35 - 21.00625 13.43333 1.563741 60.994525-Sep-07 991.15 10.4 - 19.82778 12.21 1.623897 61.8887426-Sep-07 961.95 - 29.2 21.44375 15.04167 1.425623 58.7734827-Sep-07 980.15 18.2 - 21.08333 16.58 1.271612 55.9784128-Sep-07 998.75 18.6 - 23.00556 16.58 1.387549 58.116041-Oct-07 990.15 - 8.6 23.00556 15.61 1.47377 59.575883-Oct-07 1019.25 29.1 - 23.615 19.1125 1.235579 55.268854-Oct-07 1042.25 23 - 22.7 19.1125 1.187704 54.289995-Oct-07 1034.85 - 7.4 22.7 14.725 1.541596 60.654648-Oct-07 1025.25 - 9.6 24.31111 13.7 1.774534 63.957919-Oct-07 1105.05 79.8 - 33.12778 13.7 2.418086 70.7438610-Oct-07 1101.05 - 4 31.2125 12.08333 2.583103 72.0912311-Oct-07 1119.35 18.3 - 29.77778 11.76 2.532124 71.6884212-Oct-07 1096.75 - 22.6 30.84375 13.56667 2.273495 69.4516115-Oct-07 1160.7 63.95 - 32.66875 13.56667 2.408016 70.6574116-Oct-07 1184.7 24 - 34.36875 13.56667 2.533323 71.6980317-Oct-07 1174 - 10.7 34.36875 10.48333 3.278418 76.6268818-Oct-07 1139.35 - 34.65 36.67857 13.93571 2.631984 72.4668419-Oct-07 1076.6 - 62.75 39.69167 20.0375 1.980869 66.4527422-Oct-07 1060.15 - 16.45 39.69167 21.01875 1.888393 65.3786823-Oct-07 1102.9 42.75 - 41.96667 21.01875 1.99663 66.6291824-Oct-07 1118.45 15.55 - 40.725 21.01875 1.937556 65.9580925-Oct-07 1164.2 45.75 - 41.44286 22.96429 1.804666 64.3451326-Oct-07 1182.2 18 - 38.5125 25.19167 1.528779 60.4552329-Oct-07 1189.85 7.65 - 29.49375 25.19167 1.170774 53.9334830-Oct-07 1087.4 - 102.45 29.49375 41.6 0.708984 41.4857131-Oct-07 1073.85 - 13.55 31.09286 37.59286 0.827095 45.26831-Nov-07 1006.55 - 67.3 31.09286 43.97857 0.707 41.41772-Nov-07 1021.2 14.65 - 24.05 43.97857 0.546857 35.352795-Nov-07 994.65 - 26.55 24.05833 41.8 0.575558 36.530436-Nov-07 972 - 22.65 24.05833 43.29375 0.5557 35.720257-Nov-07 999.35 27.35 - 24.52857 44.52857 0.55085 35.519248-Nov-07 994.5 - 4.85 24.52857 36.25714 0.676517 40.352539-Nov-07 990.05 - 4.45 24.52857 34.54286 0.710091 41.5235812-Nov-07 995.5 5.45 - 19.2 34.54286 0.555831 35.7256813-Nov-07 1003.05 7.55 - 18.05714 34.54286 0.522746 34.3291714-Nov-07 1038.25 35.2 - 16.55 34.54286 0.479115 32.39215-Nov-07 1037.15 - 1.1 16.30833 30.3625 0.537121 34.9433116-Nov-07 1046.95 9.8 - 16.66667 30.3625 0.548923 35.43919-Nov-07 1053.8 6.85 - 15.26429 20.06429 0.760769 43.20663



20-Nov-07 1007 - 46.8 15.26429 24.81429 0.615141 38.0859

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI21-Nov-07 954.25 - 52.75 15.26429 22.73571 0.671379 40.1691722-Nov-07 965.25 11 - 14.74286 22.73571 0.648445 39.3367623-Nov-07 947.45 - 17.8 14.74286 21.48571 0.68617 40.6940126-Nov-07 951.7 4.25 - 13.43125 21.29167 0.630822 38.6812327-Nov-07 937.45 - 14.25 11.44286 20.28571 0.564085 36.0648428-Nov-07 967.5 30.05 - 13.76875 22.85833 0.602351 37.5917229-Nov-07 990.1 22.6 - 14.75 26.54 0.555765 35.7229430-Nov-07 1014.15 24.05 - 16.81667 26.54 0.633635 38.786813-Dec-07 1032.85 18.7 - 18.05556 26.54 0.680315 40.487344-Dec-07 1027.95 - 4.9 15.9125 22.93333 0.693859 40.963215-Dec-07 1034.4 6.45 - 14.86111 27.3 0.544363 35.248396-Dec-07 1040.8 6.4 - 14.48333 27.3 0.530525 34.662947-Dec-07 1041.45 0.65 - 13.79444 27.3 0.505291 33.5676610-Dec-07 1045.65 4.2 - 12.835 22.425 0.572352 36.4010211-Dec-07 1077.6 31.95 - 14.57273 12.31667 1.183171 54.1950812-Dec-07 1073.3 - 4.3 14.93 10.3125 1.447758 59.1462813-Dec-07 1037 - 36.3 14.93 14.9375 0.999498 49.9874414-Dec-07 1042.35 5.35 - 15.04 14.9375 1.006862 50.1709617-Dec-07 1012.8 - 29.55 15.04 18.7625 0.801599 44.4937518-Dec-07 1018 5.2 - 12.555 18.7625 0.669154 40.0894119-Dec-07 998 - 20 11.43889 19.01 0.60173 37.5675120-Dec-07 993.6 - 4.4 9.8625 16.575 0.595023 37.3049624-Dec-07 990.25 - 3.35 8.6 14.68571 0.585603 36.9325226-Dec-07 993.1 2.85 - 7.88125 16.31667 0.483018 32.5699527-Dec-07 995.2 2.1 - 7.3375 16.31667 0.449694 31.019928-Dec-07 986.6 - 8.6 7.471429 15.21429 0.49108 32.9345131-Dec-07 994.5 7.9 - 8.507143 15.21429 0.559155 35.862691-Jan-08 991.55 - 2.95 9.225 13.68125 0.67428 40.272852-Jan-08 997.05 5.5 - 4.816667 13.68125 0.352063 26.038973-Jan-08 973.2 - 23.85 4.816667 16.125 0.298708 23.00044-Jan-08 964.15 - 9.05 4.816667 12.71875 0.378706 27.468227-Jan-08 963.75 - 0.4 4.71 11.35 0.414978 29.327528-Jan-08 939.8 - 23.95 4.71 10.72778 0.439047 30.509579-Jan-08 924.75 - 15.05 4.5875 11.16 0.411066 29.1316110-Jan-08 909.2 - 15.55 4.5875 10.715 0.428138 29.9787611-Jan-08 899.7 - 9.5 4.5875 11.225 0.408686 29.0118614-Jan-08 863.45 - 36.25 4.5875 14.515 0.316052 24.0151815-Jan-08 871.35 7.9 - 5.85 14.515 0.403031 28.7257516-Jan-08 847.7 - 23.65 7.1 15.34545 0.462678 31.6322417-Jan-08 864.8 17.1 - 9.6 16.02 0.599251 37.4707318-Jan-08 842 - 22.8 10.16667 16.63636 0.611111 37.9310321-Jan-08 803.2 - 38.8 10.16667 19.89545 0.511004 33.81886



22-Jan-08 807.05 3.85 - 9.616667 19.89545 0.48336 32.58548

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI23-Jan-08 826.15 19.1 - 11.9875 19.5 0.614744 38.0706624-Jan-08 788.75 - 37.4 11.9875 22.335 0.536714 34.9260725-Jan-08 833.7 44.95 - 18.58 24.77222 0.750034 42.8582428-Jan-08 864.7 31 - 20.65 24.875 0.830151 45.3596929-Jan-08 863 - 1.7 20.65 23.20625 0.889846 47.0856530-Jan-08 844.9 - 18.1 20.65 23.525 0.87779 46.745931-Jan-08 850.2 5.3 - 18.45714 25.52857 0.722999 41.961681-Feb-08 905.75 55.55 - 23.09375 23.74167 0.97271 49.30834-Feb-08 897.35 - 8.4 25.26429 21.55 1.172357 53.967045-Feb-08 872.6 - 24.75 25.26429 21.70714 1.16387 53.78656-Feb-08 832.25 - 40.35 26.625 24.0375 1.107644 52.553667-Feb-08 800 - 32.25 26.625 25.21875 1.055762 51.356248-Feb-08 805.75 5.75 - 23.64286 23.27857 1.015649 50.3881911-Feb-08 813.35 7.6 - 24.17857 23.27857 1.038662 50.9482212-Feb-08 807.7 - 5.65 25.025 21.075 1.187426 54.2841613-Feb-08 817.25 9.55 - 22.81429 18.74286 1.217226 54.8985914-Feb-08 829.2 11.95 - 18.1 18.74286 0.965701 49.1275715-Feb-08 812.45 - 16.75 15.95 18.49375 0.862454 46.3073918-Feb-08 806.2 - 6.25 15.95 19.0625 0.836721 45.5551619-Feb-08 809.4 3.2 - 14.12857 19.2 0.735863 42.3917720-Feb-08 769.7 - 39.7 15.6 21.7625 0.716829 41.7530921-Feb-08 763.15 - 6.55 7.61 20.07222 0.379131 27.4905722-Feb-08 766.35 3.2 - 6.875 21.53125 0.319303 24.2024225-Feb-08 800.55 34.2 - 10.77857 21.07143 0.511525 33.8416726-Feb-08 813.3 12.75 - 11.025 17.85833 0.617359 38.170827-Feb-08 832.9 19.6 - 11.97778 14.98 0.799585 44.4316228-Feb-08 837.15 4.25 - 11.81111 14.98 0.788459 44.0859329-Feb-08 868.2 31.05 - 14.41667 14.98 0.962394 49.041843-Mar-08 872.65 4.45 - 13.42 17.3125 0.775162 43.667134-Mar-08 904.55 31.9 - 15.655 17.3125 0.90426 47.486165-Mar-08 940.2 35.65 - 18.025 17.3125 1.041155 51.008147-Mar-08 927.85 - 12.35 18.025 16.2125 1.111796 52.6469510-Mar-08 895.05 - 32.8 18.025 22.85 0.78884 44.0978611-Mar-08 866.65 - 28.4 19.67222 23.96 0.821044 45.0864512-Mar-08 857.4 - 9.25 19.67222 17.87 1.100852 52.4002613-Mar-08 840.35 - 17.05 19.67222 19.97 0.985089 49.6244214-Mar-08 832.7 - 7.65 21.73125 17.91667 1.212907 54.8105717-Mar-08 806.55 - 26.15 19.95 19.09286 1.044893 51.0976918-Mar-08 813.35 6.8 - 19.1 19.09286 1.000374 50.0093519-Mar-08 822.45 9.1 - 17.6 19.09286 0.921811 47.9657424-Mar-08 810.2 - 12.25 19.825 18.2375 1.087046 52.0853925-Mar-08 843.85 33.65 - 20.25833 18.2375 1.110806 52.62474



26-Mar-08 845.6 1.75 - 19.80833 18.2375 1.086132 52.0644

DatesClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI27-Mar-08 838.3 - 7.3 17.39 17.02222 1.021606 50.5343728-Mar-08 837.8 - 0.5 12.825 15.37 0.834418 45.4867931-Mar-08 827 - 10.8 12.825 15.215 0.842918 45.73823

Average 15.662 15.04

Relative Strength Index:

The RSI compares the magnitude of a stock's recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100.

RSI of Maruti Suzuki Scrip

0

10

20

30

40

50

60

70

80

90

4/2

/20

07

5/2

/20

07

6/2

/20

07

7/2

/20

07

8/2

/20

07

9/2

/20

07

10

/2/2

00

7

11

/2/2

00

7

12

/2/2

00

7

1/2

/20

08

2/2

/20

08

3/2

/20

08

Dates

RS

I

RSI

A 14 day RSI is calculated for stock it is recommended by wilder that a 14 period will be a good indicator. By using the simple formula RSI = {100- [100 / (1+RS)]}.it states that if RSI is below 30 buy & if it crosses above 70 then sell it.

From 2nd April 07 to 31st March 08 the RSI is calculated, the best time to sell the stock was between 12th July 07 to 31st July 07 and 9th October 07 to 18th October 07 since



the RSI was above 70 & it had reached its peak level. The best time to buy the stock was between 2nd Jan 08 to 24th Jan 08 since the RSI was below 30 for these many days. Company: Tata Motors


Relative Strength Index

DateClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI2-Apr-07 670.9 - -3-Apr-07 681.4 10.5 -4-Apr-07 682.8 1.4 -5-Apr-07 686.1 3.3 -9-Apr-07 703.7 17.6 -10-Apr-07 721.55 17.85 -11-Apr-07 722.8 1.25 -12-Apr-07 712.4 - 10.413-Apr-07 726.3 13.9 -16-Apr-07 750.25 23.95 -17-Apr-07 730.6 - 19.6518-Apr-07 722.5 - 8.119-Apr-07 713.1 - 9.420-Apr-07 722.9 9.8 - 11.06111 11.8875 0.930483 48.1994823-Apr-07 718.15 - 4.75 11.06111 10.46 1.057468 51.3965624-Apr-07 741.6 23.45 - 12.5 10.46 1.195029 54.4425125-Apr-07 759.05 17.45 - 14.28333 10.46 1.365519 57.7259926-Apr-07 766.6 7.55 - 14.75556 10.46 1.410665 58.5176727-Apr-07 749.35 - 17.25 14.4 11.59167 1.242272 55.4023730-Apr-07 751.75 2.4 - 12.46875 11.59167 1.075665 51.822673-May-07 733.1 - 18.65 14.07143 12.6 1.11678 52.758444-May-07 731.5 - 1.6 14.07143 11.34286 1.240554 55.368187-May-07 728.3 - 3.2 14.1 10.325 1.365617 57.727748-May-07 725.1 - 3.2 12.13 9.533333 1.272378 55.993239-May-07 723.25 - 1.85 12.13 7.555556 1.605441 61.6187810-May-07 714.85 - 8.4 12.13 7.588889 1.598389 61.5146211-May-07 716.1 1.25 - 10.31667 7.3625 1.401245 58.3549414-May-07 715.2 - 0.9 10.42 6.644444 1.568227 61.0626415-May-07 714.35 - 0.85 10.42 6.211111 1.677639 62.6536616-May-07 734.65 20.3 - 9.79 6.211111 1.576208 61.1832517-May-07 750.6 15.95 - 9.49 6.211111 1.527907 60.4415818-May-07 741.8 - 8.8 9.975 6.47 1.541731 60.6567321-May-07 725.45 - 16.35 9.975 6.38 1.56348 60.9905222-May-07 726.95 1.5 - 9.75 6.38 1.528213 60.4463723-May-07 708 - 18.95 9.75 6.41 1.521061 60.3341624-May-07 712.7 4.7 - 8.74 6.944444 1.25856 55.724



25-May-07 726.95 14.25 - 9.658333 7.4125 1.302979 56.5779828-May-07 732.75 5.8 - 9.107143 8.014286 1.136364 53.19149

DateClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI29-May-07 740.85 8.1 - 8.98125 9.041667 0.993318 49.8323930-May-07 742.1 1.25 - 8.122222 9.17 0.885739 46.9703831-May-07 755.7 13.6 - 9.494444 9.17 1.035381 50.869151-Jun-07 747.95 - 7.75 9.494444 10.54 0.900801 47.390614-Jun-07 710.85 - 37.1 9.494444 17.79 0.533696 34.798015-Jun-07 710.5 - 0.35 8.14375 14.88333 0.547172 35.365966-Jun-07 688 - 22.5 7.028571 15.97143 0.440072 30.559017-Jun-07 677.85 - 10.15 7.028571 16.16429 0.434821 30.30498-Jun-07 652.2 - 25.65 7.028571 17.49286 0.401797 28.6629811-Jun-07 653.2 1 - 6.957143 17.49286 0.397713 28.4545712-Jun-07 641.2 - 12 6.957143 16.5 0.421645 29.6589513-Jun-07 645.2 4 - 6.857143 16.5 0.415584 29.357814-Jun-07 642.25 - 2.95 5.625 14.80625 0.379907 27.5313615-Jun-07 650.4 8.15 - 6.016667 14.80625 0.40636 28.8944518-Jun-07 644.95 - 5.45 5.6 13.76667 0.40678 28.9156619-Jun-07 663.5 18.55 - 9.06 13.76667 0.658111 39.6904220-Jun-07 686.4 22.9 - 10.92 13.76667 0.79322 44.234421-Jun-07 687.5 1.1 - 9.283333 14.51875 0.639403 39.0021922-Jun-07 684.3 - 3.2 9.283333 10.28125 0.902938 47.4496925-Jun-07 678.15 - 6.15 9.283333 11.00625 0.84346 45.7541826-Jun-07 684.6 6.45 - 8.878571 9.364286 0.948131 48.6687527-Jun-07 671.7 - 12.9 8.878571 9.757143 0.909956 47.6427828-Jun-07 664.4 - 7.3 8.878571 7.135714 1.244244 55.4415729-Jun-07 670.2 5.8 - 9.564286 7.135714 1.34034 57.271172-Jul-07 682.2 12 - 9.86875 6.325 1.560277 60.941723-Jul-07 685.85 3.65 - 9.825 6.325 1.55336 60.835914-Jul-07 701.35 15.5 - 10.45556 7 1.493651 59.898155-Jul-07 709.55 8.2 - 10.46111 7 1.494444 59.910916-Jul-07 711.2 1.65 - 9.58 7.3875 1.296785 56.460889-Jul-07 716.3 5.1 - 8.235 7.3875 1.114721 52.7124310-Jul-07 743.25 26.95 - 8.64 7.3875 1.169543 53.9073511-Jul-07 736.1 - 7.15 9.477778 7.34 1.29125 56.3557112-Jul-07 739.85 3.75 - 8.905 8.375 1.063284 51.5335613-Jul-07 767.05 27.2 - 10.56818 9.116667 1.159216 53.6868816-Jul-07 759.5 - 7.55 10.98 8.725 1.258453 55.721917-Jul-07 748.8 - 10.7 10.98 8.175 1.343119 57.3218518-Jul-07 743.35 - 5.45 10.98 7.7125 1.423663 58.7401419-Jul-07 776.75 33.4 - 13.74 7.7125 1.781524 64.0484820-Jul-07 767.6 - 9.15 13.93333 8 1.741667 63.5258423-Jul-07 766.6 - 1 15.21875 6.833333 2.227134 69.0127524-Jul-07 747.1 - 19.5 15.17857 8.642857 1.756198 63.71814



25-Jul-07 726 - 21.1 16.34167 10.2 1.602124 61.5698626-Jul-07 731.85 5.85 - 17.04167 10.2 1.670752 62.55736

DateClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI27-Jul-07 699.15 - 32.7 19.43 12.7 1.529921 60.4730830-Jul-07 707.25 8.1 - 15.66 12.7 1.233071 55.2186231-Jul-07 699.4 - 7.85 15.66 12.77778 1.225565 55.067591-Aug-07 667.4 - 32 18.6375 14.7 1.267857 55.905512-Aug-07 651.8 - 15.6 15.78333 14.78182 1.067753 51.638333-Aug-07 656.35 4.55 - 12.975 15.505 0.836827 45.558296-Aug-07 648.8 - 7.55 12.975 15.19 0.85418 46.067817-Aug-07 657.7 8.9 - 12.16 16.27222 0.747286 42.768388-Aug-07 658.95 1.25 - 5.73 16.27222 0.352134 26.042829-Aug-07 663.55 4.6 - 5.541667 17.1625 0.322894 24.4081510-Aug-07 669.4 5.85 - 5.585714 19.47143 0.286867 22.291913-Aug-07 692.55 23.15 - 7.78125 19.46667 0.399722 28.5572314-Aug-07 691.15 - 1.4 7.78125 16.18333 0.480819 32.4697916-Aug-07 660.5 - 30.65 8.057143 18.25 0.441487 30.6272117-Aug-07 641.15 - 19.35 8.057143 16.34286 0.493007 33.0210820-Aug-07 649.85 8.7 - 8.142857 16.34286 0.498252 33.2555421-Aug-07 634.15 - 15.7 8.142857 17.46429 0.466258 31.7991622-Aug-07 619.5 - 14.65 8.142857 14.98571 0.543375 35.2069223-Aug-07 620.8 1.3 - 7.2875 14.88333 0.489642 32.8697624-Aug-07 656.6 35.8 - 11.19375 14.88333 0.7521 42.9256227-Aug-07 675.4 18.8 - 12.03889 16.35 0.736323 42.4070528-Aug-07 663.05 - 12.35 12.43125 15.68333 0.792641 44.2163829-Aug-07 674.15 11.1 - 13.6625 15.68333 0.871148 46.5568630-Aug-07 680.75 6.6 - 13.9125 15.68333 0.887088 47.0083131-Aug-07 701.75 21 - 15.80625 15.68333 1.007837 50.195173-Sep-07 702.85 1.1 - 13.05 15.68333 0.832094 45.417634-Sep-07 691.35 - 11.5 13.05 17.36667 0.75144 42.904115-Sep-07 698.85 7.5 - 12.43333 14.71 0.84523 45.806216-Sep-07 712.05 13.2 - 12.51 13.55 0.923247 48.00467-Sep-07 695.15 - 16.9 12.93333 14.22 0.909517 47.6307410-Sep-07 702.7 7.55 - 12.395 13.85 0.894946 47.2280411-Sep-07 689.15 - 13.55 12.395 13.575 0.913076 47.7281512-Sep-07 684.75 - 4.4 13.62778 11.74 1.160799 53.7208213-Sep-07 695 10.25 - 10.78889 11.74 0.918985 47.8891314-Sep-07 693.75 - 1.25 9.7875 9.991667 0.979566 49.4838817-Sep-07 694.75 1 - 8.811111 9.52 0.925537 48.0664318-Sep-07 696.1 1.35 - 7.727778 9.52 0.811741 44.8044819-Sep-07 720.4 24.3 - 9.694444 9.52 1.018324 50.4539420-Sep-07 731.25 10.85 - 8.566667 9.52 0.89986 47.3645421-Sep-07 741 9.75 - 9.527778 9.52 1.000817 50.0204224-Sep-07 747.2 6.2 - 9.195 9.025 1.018837 50.46652



25-Sep-07 740.9 - 6.3 9.383333 8.48 1.106525 52.5284626-Sep-07 739.9 - 1 8.90625 7.233333 1.231279 55.18265

DateClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI27-Sep-07 751.3 11.4 - 9.183333 5.3 1.732704 63.4062128-Sep-07 776.9 25.6 - 11.18889 5.3 2.111111 67.857141-Oct-07 773.3 - 3.6 11.18889 3.31 3.380329 77.170663-Oct-07 788.1 14.8 - 11.55 3.0375 3.802469 79.177384-Oct-07 799.45 11.35 - 11.66 3.0375 3.838683 79.333225-Oct-07 779.05 - 20.4 11.66 7.825 1.490096 59.84098-Oct-07 764.35 - 14.7 12.84444 9.2 1.396135 58.266139-Oct-07 796.15 31.8 - 16.22778 9.2 1.763889 63.819110-Oct-07 806.7 10.55 - 14.7 9.2 1.597826 61.5062811-Oct-07 830.55 23.85 - 16.14444 9.2 1.754831 63.7001312-Oct-07 803.35 - 27.2 16.94375 12.2 1.388832 58.1385415-Oct-07 818.3 14.95 - 18.0375 12.2 1.478484 59.6527516-Oct-07 820.8 2.5 - 16.31111 13.38 1.219067 54.9360117-Oct-07 806.95 - 13.85 16.31111 15.95 1.02264 50.5596718-Oct-07 791.35 - 15.6 16.925 15.89167 1.065024 51.574419-Oct-07 785.15 - 6.2 15.68571 14.50714 1.081241 51.9517422-Oct-07 772.9 - 12.25 15.68571 15.74286 0.99637 49.9090923-Oct-07 795.6 22.7 - 16.81429 15.74286 1.068058 51.6454624-Oct-07 774.6 - 21 17.725 16.4 1.080793 51.9413925-Oct-07 800.6 26 - 18.90714 15.82857 1.194495 54.4314226-Oct-07 804.8 4.2 - 17.06875 16.01667 1.065687 51.5899529-Oct-07 807.25 2.45 - 13.4 16.01667 0.836629 45.5524130-Oct-07 767.75 - 39.5 13.80714 19.37143 0.712758 41.6146431-Oct-07 757.85 - 9.9 12.13333 18.1875 0.667125 40.016491-Nov-07 746.95 - 10.9 12.13333 16.15 0.75129 42.899232-Nov-07 754.8 7.85 - 10.95 16.15 0.678019 40.40595-Nov-07 740.15 - 14.65 12.64 15.98333 0.790824 44.159786-Nov-07 719.45 - 20.7 12.64 16.74444 0.754877 43.015967-Nov-07 720.3 0.85 - 10.675 16.8875 0.632124 38.730168-Nov-07 707.55 - 12.75 10.675 17.70625 0.602894 37.612869-Nov-07 694.8 - 12.75 10.675 17.76875 0.600774 37.5302112-Nov-07 684.35 - 10.45 8.27 16.95556 0.487746 32.7842113-Nov-07 693.3 8.95 - 8.383333 16.45 0.509625 33.7583914-Nov-07 707.65 14.35 - 6.441667 16.45 0.391591 28.1397915-Nov-07 698.95 - 8.7 6.89 15.58889 0.441981 30.6509816-Nov-07 697.1 - 1.85 8 14.215 0.562786 36.011719-Nov-07 703.1 6 - 7.6 11.40556 0.666342 39.9883120-Nov-07 708.45 5.35 - 7.225 11.59375 0.623181 38.3925621-Nov-07 691.3 - 17.15 7.225 12.375 0.583838 36.8622422-Nov-07 694.5 3.2 - 6.45 12.375 0.521212 34.2629523-Nov-07 714.35 19.85 - 8.364286 12.05 0.694132 40.97271



26-Nov-07 711.75 - 2.6 8.364286 9.464286 0.883774 46.9150627-Nov-07 719.75 8 - 9.385714 9.464286 0.991698 49.79159

DateClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI28-Nov-07 721.25 1.5 - 8.4 8.916667 0.942056 48.5081829-Nov-07 718.2 - 3.05 8.4 7.3 1.150685 53.5031830-Nov-07 732.45 14.25 - 9.05 6.67 1.356822 57.569973-Dec-07 736.15 3.7 - 8.466667 6.67 1.269365 55.934824-Dec-07 741.3 5.15 - 7.444444 6.67 1.116109 52.743455-Dec-07 772.4 31.1 - 9.81 6.1625 1.591886 61.418066-Dec-07 775.45 3.05 - 9.195455 7.6 1.209928 54.749667-Dec-07 767.3 - 8.15 9.515 7.7375 1.229725 55.1514310-Dec-07 766.45 - 0.85 9.977778 6.36 1.568833 61.0718211-Dec-07 775.2 8.75 - 9.855 3.6625 2.690785 72.9054912-Dec-07 770.05 - 5.15 10.59444 3.96 2.675365 72.7918213-Dec-07 763.15 - 6.9 9.4375 4.45 2.120787 67.956814-Dec-07 744.85 - 18.3 9.4375 7.066667 1.335495 57.1825317-Dec-07 701.75 - 43.1 9.642857 12.21429 0.789474 44.1176518-Dec-07 702.2 0.45 - 9.492857 12.21429 0.777193 43.7314919-Dec-07 690.7 - 11.5 9.492857 13.42143 0.707291 41.4276820-Dec-07 710.15 19.45 - 10.23571 13.42143 0.76264 43.2669124-Dec-07 730.4 20.25 - 12.6 13.42143 0.938797 48.4216326-Dec-07 752.1 21.7 - 14.96429 13.42143 1.114955 52.7176627-Dec-07 736.75 - 15.35 12.275 13.6625 0.898445 47.325328-Dec-07 729.35 - 7.4 14.12 12.96667 1.088946 52.1289731-Dec-07 741.9 12.55 - 13.85833 13.56875 1.021342 50.527911-Jan-08 762.35 20.45 - 14.8 15.38571 0.961931 49.029822-Jan-08 793.55 31.2 - 18.00714 15.38571 1.170381 53.925133-Jan-08 791.6 - 1.95 18.00714 14.92857 1.20622 54.673614-Jan-08 781.65 - 9.95 18.00714 15.36429 1.172013 53.959767-Jan-08 785.4 3.75 - 16.225 14.875 1.090756 52.170428-Jan-08 774.9 - 10.5 16.225 9.441667 1.718447 63.214299-Jan-08 770.2 - 4.7 18.47857 8.764286 2.108394 67.8290510-Jan-08 749.2 - 21 18.47857 10.12143 1.825688 64.6103911-Jan-08 763.1 13.9 - 17.68571 10.12143 1.747354 63.6013414-Jan-08 765.6 2.5 - 15.15 10.12143 1.496824 59.9491215-Jan-08 769 3.4 - 12.53571 10.12143 1.238532 55.3278716-Jan-08 749.95 - 19.05 12.53571 10.65 1.177062 54.0665417-Jan-08 736.65 - 13.3 12.53571 11.49286 1.09074 52.1700418-Jan-08 714.3 - 22.35 12.53333 12.85 0.975357 49.3762321-Jan-08 653.65 - 60.65 10.95 18.16111 0.602937 37.614522-Jan-08 650.9 - 2.75 5.8875 16.62 0.354242 26.1579523-Jan-08 658.85 7.95 - 6.3 18.25 0.345205 25.6619124-Jan-08 658.55 - 0.3 6.3 17.17778 0.366753 26.8338925-Jan-08 710.45 51.9 - 15.93 17.17778 0.927361 48.11558



28-Jan-08 712.75 2.3 - 13.65833 18.0125 0.75827 43.125929-Jan-08 715.8 3.05 - 12.14286 19.91429 0.609756 37.87879

DateClosing

Price Gain Loss Avg.Gain Avg.Loss RS RSI30-Jan-08 696.95 - 18.85 12.14286 19.60714 0.619308 38.2452231-Jan-08 699.45 2.5 - 10.51429 19.60714 0.536248 34.906331-Feb-08 753.5 54.05 - 17.87857 19.60714 0.91184 47.694364-Feb-08 770 16.5 - 19.75 19.60714 1.007286 50.181495-Feb-08 754 - 16 19.75 19.17143 1.030179 50.743266-Feb-08 735.95 - 18.05 19.75 19.85 0.994962 49.873747-Feb-08 715.1 - 20.85 19.75 19.63571 1.00582 50.145098-Feb-08 710.95 - 4.15 19.75 11.56429 1.707844 63.0702611-Feb-08 700.85 - 10.1 19.75 12.61429 1.565685 61.0240612-Feb-08 693.9 - 6.95 21.71667 11.90625 1.823972 64.5888813-Feb-08 714.8 20.9 - 21.6 13.56429 1.592417 61.4259614-Feb-08 733.15 18.35 - 16.80714 13.56429 1.239073 55.3386615-Feb-08 751.85 18.7 - 19.15 13.56429 1.411796 58.5371218-Feb-08 732.7 - 19.15 21.83333 14.2625 1.530821 60.4871319-Feb-08 739.65 6.95 - 19.70714 13.60714 1.448294 59.1552320-Feb-08 710.3 - 29.35 22.575 15.575 1.449438 59.1743121-Feb-08 708.05 - 2.25 16.28 14.09444 1.155065 53.5976922-Feb-08 696.05 - 12 16.225 13.885 1.168527 53.8857525-Feb-08 705.85 9.8 - 14.94 13.65 1.094505 52.2560326-Feb-08 704.15 - 1.7 14.94 11.83333 1.262535 55.8017927-Feb-08 707.85 3.7 - 13.06667 10.70625 1.220471 54.9645128-Feb-08 709.8 1.95 - 11.47857 11.64286 0.98589 49.6447329-Feb-08 700.35 - 9.45 11.47857 11.55 0.993816 49.844913-Mar-08 695.1 - 5.25 11.47857 11.30714 1.015161 50.376184-Mar-08 702.2 7.1 - 9.507143 11.30714 0.840809 45.676055-Mar-08 704.35 2.15 - 7.192857 11.30714 0.636134 38.880317-Mar-08 671.8 - 32.55 5.275 13.9625 0.377798 27.420410-Mar-08 674.8 3 - 4.95 13.22143 0.374392 27.2405711-Mar-08 653.3 - 21.5 4.616667 14.25625 0.323835 24.4618612-Mar-08 645.1 - 8.2 4.616667 11.6125 0.39756 28.4467313-Mar-08 621.35 - 23.75 4.616667 14.3 0.322844 24.4052914-Mar-08 637.65 16.3 - 6.285714 14.62857 0.429688 30.0546417-Mar-08 609.4 - 28.25 5.7 16.33125 0.349024 25.8723418-Mar-08 619.45 10.05 - 6.321429 18.42143 0.343156 25.548519-Mar-08 650.65 31.2 - 10.25 18.42143 0.556417 35.7498824-Mar-08 663.2 12.55 - 11.76429 18.42143 0.63862 38.9730225-Mar-08 680.1 16.9 - 12.40625 19.91667 0.622908 38.3822126-Mar-08 678.75 - 1.35 12.40625 19.26667 0.643923 39.169927-Mar-08 655.35 - 23.4 13.16429 19.85714 0.66295 39.8658928-Mar-08 646.05 - 9.3 15 18.5375 0.809171 44.7260531-Mar-08 622.7 - 23.35 15 17.3875 0.862689 46.31416



Average 11.72519 12.89876

Relative Strength Index:

The RSI compares the magnitude of a stock's recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100

RSI of Tata Motors Scrip

0

10

20

30

40

50

60

70

80

90

4/2

/20

07

5/2

/20

07

6/2

/20

07

7/2

/20

07

8/2

/20

07

9/2

/20

07

10

/2/2

00

7

11

/2/2

00

7

12

/2/2

00

7

1/2

/20

08

2/2

/20

08

3/2

/20

08

Dates

RS

I

RSI

A 14 day RSI is calculated for stock it is recommended by wilder that a 14 period will be a good indicator. By using the simple formula RSI = {100- [100 / (1+RS)]}.It states that if RSI is below 30 buy & if it crosses above 70 then sell it.

From 2nd April 07 to 31st March 08 the RSI is calculated, the best time to sell the stock was between 27th Sep 07 to 4th October 07 and 10th December 07 to 12th December 07 since the RSI was above 70 & it had reached its peak level. The best time to buy the stock was between 8th August 07 to 23rd August 07 and 23rd Jan 08 to 24th Jan 08 as well as between 7th March to 18th March 08 since the RSI was below 30 for these many days.



TECHNICAL ANALYSIS: [By using Moving Average]

Company: Maruti Suzuki India Ltd.


10 Days Moving Average of Maruti Suzuki India Ltd. Scrip

DateOpen Price

High Price Low PriceClose Price

10 days moving average

2-Apr-07 795 795 741.35 749.25 #N/A3-Apr-07 745 765.8 745 756.45 #N/A4-Apr-07 765 768 743.55 745.95 #N/A5-Apr-07 746 763.9 741 755.9 #N/A9-Apr-07 754 795.9 754 789.45 #N/A

10-Apr-07 790 801 785 786.15 #N/A11-Apr-07 790 790 777.35 781.95 #N/A12-Apr-07 770 778 750.55 758.95 #N/A13-Apr-07 760 777 755 771.95 #N/A16-Apr-07 777.1 786 775.1 778 767.417-Apr-07 781.15 784.5 760.15 762.1 768.68518-Apr-07 765 774.35 761.25 764.25 769.46519-Apr-07 764 780 746 771.9 772.0620-Apr-07 778.1 791.8 772 778.6 774.3323-Apr-07 798.7 798.7 764 766.9 772.07524-Apr-07 770 810 762 796 773.0625-Apr-07 800 815 783 791 773.96526-Apr-07 840 840 785.55 797.5 777.8227-Apr-07 794.2 810 789.25 795.9 780.21530-Apr-07 798.5 808.75 783 806.1 783.0253-May-07 817.5 824.6 811 814.35 788.254-May-07 821 822 803 807.45 792.577-May-07 820 824 801.1 804.95 795.8758-May-07 811 814.9 782.5 800.75 798.099-May-07 801 814.45 791.1 802.3 801.6310-May-07 848.7 848.7 790.1 794.9 801.5211-May-07 795 806.5 751.25 795.5 801.9714-May-07 820 820 800.1 803.7 802.5915-May-07 801.1 808.9 791 806.55 803.65516-May-07 807 810 792.2 802.55 803.317-May-07 803 820 803 816.8 803.545



18-May-07 815 825 799 810.1 803.8121-May-07 810.1 825 800.25 821 805.41522-May-07 823 844 796 830.6 808.4

DateOpen Price



23-May-07 840 840 811.25 815.2 809.6924-May-07 805.55 818 805.55 810.4 811.2425-May-07 805 819.5 795 810.3 812.7228-May-07 819.4 831.7 812 825.95 814.94529-May-07 826.5 833 815.1 819.95 816.28530-May-07 825 826 802 804.6 816.4931-May-07 808 820 805 817.1 816.521-Jun-07 820 829.95 808.15 811.25 816.6354-Jun-07 876 876 804 806.55 815.195-Jun-07 839.8 839.8 796 799.8 812.116-Jun-07 823.75 823.75 772.65 776.6 808.257-Jun-07 774 784 740.3 760.95 803.3058-Jun-07 751.55 758 731 737.55 796.0311-Jun-07 740.1 748.8 728.1 733.35 786.7712-Jun-07 735 739.9 717 719.65 776.7413-Jun-07 721 734 715.05 721.2 768.414-Jun-07 729 733 724.7 729.15 759.60515-Jun-07 734.9 747 729.25 740.1 752.4918-Jun-07 741 749.9 738.15 742.85 746.1219-Jun-07 742.05 753.9 735.5 751.45 741.28520-Jun-07 751.45 772.4 751.45 767.9 740.41521-Jun-07 771 772 756 759.05 740.22522-Jun-07 753.1 763.75 750 761.35 742.60525-Jun-07 769 769 751 753.3 744.626-Jun-07 749 759.9 747.15 757.3 748.36527-Jun-07 760 760 746.1 751.3 751.37528-Jun-07 748 758.9 738.95 748.7 753.3329-Jun-07 758 758 740.1 744.15 753.7352-Jul-07 745 786.6 745 770.6 756.513-Jul-07 777 785 772 783.5 759.7154-Jul-07 790 799 776.25 791.4 762.0655-Jul-07 792.05 810.1 792 805.05 766.6656-Jul-07 760.3 808.9 760.3 797 770.239-Jul-07 802 805 790 795.7 774.4710-Jul-07 795.7 819 786.15 813.75 780.11511-Jul-07 810 814.8 795.2 806.3 785.61512-Jul-07 806.3 830.75 804 828.35 793.5813-Jul-07 830 839 824 831.3 802.29516-Jul-07 833 843.5 820.3 827.65 80817-Jul-07 829.85 841.1 818 824.85 812.13518-Jul-07 824.9 826 808.2 820.65 815.0619-Jul-07 824 830.4 812.35 827.05 817.2620-Jul-07 834.4 845 821 826.9 820.2523-Jul-07 821 839.3 815.1 830.05 823.685



24-Jul-07 831 837.8 815.25 819.55 824.26525-Jul-07 819.55 826.8 808 809.9 824.62526-Jul-07 812 857.35 810 839.4 825.73

DateOpen Price



27-Jul-07 835 845 808 830.25 825.62530-Jul-07 860 860 806.5 845.85 827.44531-Jul-07 848 854.95 820 844.55 829.4151-Aug-07 831.1 835 806.1 821.2 829.472-Aug-07 825.2 851 821 832.3 829.9953-Aug-07 834 856 828.8 850.65 832.376-Aug-07 845 847 819.5 824.9 831.8557-Aug-07 847 847 821 824.85 832.3858-Aug-07 832 841 825.1 836.6 835.0559-Aug-07 844 869 817 826.85 833.810-Aug-07 810 816 795.5 809.55 831.7313-Aug-07 815 836.9 813.05 832.7 830.41514-Aug-07 843 843 817.15 823.55 828.31516-Aug-07 829.95 829.95 780 793.45 825.5417-Aug-07 793.8 793.8 715 778.65 820.17520-Aug-07 800 815.9 780.2 783.75 813.48521-Aug-07 790 791 761 767.5 807.74522-Aug-07 765 789 749 765.8 801.8423-Aug-07 795 804.05 760.15 775.95 795.77524-Aug-07 789 802.9 766.1 790.05 792.09527-Aug-07 804 848 802.25 833.45 794.48528-Aug-07 834 838 815.3 832.5 794.46529-Aug-07 820 838 810.3 833.55 795.46530-Aug-07 845 849.75 831 836.75 799.79531-Aug-07 825 872.9 825 867.7 808.73-Sep-07 876.7 901 875.3 881.65 818.494-Sep-07 889.95 898.8 870 893.3 831.075-Sep-07 893.5 900 868.1 873.75 841.8656-Sep-07 839.7 883 839.7 880.65 852.3357-Sep-07 884.9 887.9 870 873.3 860.6610-Sep-07 837 880.9 837 874.6 864.77511-Sep-07 879 881.8 856 861.15 867.6412-Sep-07 869.8 869.8 854.6 859.55 870.2413-Sep-07 803.55 894 803.55 891.7 875.73514-Sep-07 895 904.8 863.5 866.75 875.6417-Sep-07 865 880.9 863.2 874.95 874.9718-Sep-07 876 884 868 875.4 873.1819-Sep-07 889 934 889 923.85 878.1920-Sep-07 930 930 907.2 910.15 881.1421-Sep-07 909 935.5 909 931.4 886.9524-Sep-07 931.4 1001.2 931.4 980.75 897.56525-Sep-07 980 1001 950.3 991.15 910.56526-Sep-07 992 1000 955 961.95 920.80527-Sep-07 970.2 984.8 956.6 980.15 929.65



28-Sep-07 980.25 1028 971.25 998.75 942.851-Oct-07 1008.8 1010 978.75 990.15 954.373-Oct-07 985 1034.7 960.25 1019.25 968.755

DateOpen Price



4-Oct-07 1020 1048 1011 1042.25 980.5955-Oct-07 1045 1053.7 1020 1034.85 993.0658-Oct-07 1051 1051 1001.05 1025.25 1002.459-Oct-07 1023.8 1114.7 1010 1105.05 1014.88

10-Oct-07 1105 1135 1076 1101.05 1025.8711-Oct-07 1107 1134.05 1084.25 1119.35 1041.6112-Oct-07 1119.9 1119.9 1084 1096.75 1053.2715-Oct-07 1095 1177.4 1095 1160.7 1069.46516-Oct-07 1161 1190 1123.1 1184.7 1088.9217-Oct-07 1075.55 1224 1075.55 1174 1104.39518-Oct-07 1175 1210 1125 1139.35 1114.10519-Oct-07 1160 1180 1048 1076.6 1118.2822-Oct-07 1059.9 1094.9 1025 1060.15 1121.7723-Oct-07 1061 1116.85 1061 1102.9 1121.55524-Oct-07 1112 1139 1088 1118.45 1123.29525-Oct-07 1110 1184.9 1090 1164.2 1127.7826-Oct-07 1140.1 1199 1130 1182.2 1136.32529-Oct-07 1194.4 1248 1175.55 1189.85 1139.2430-Oct-07 1189.85 1203 1080 1087.4 1129.5131-Oct-07 1090 1128.9 1045 1073.85 1119.4951-Nov-07 1100 1100 997.05 1006.55 1106.2152-Nov-07 1000 1033 969 1021.2 1100.6755-Nov-07 1026.15 1036.5 970.3 994.65 1094.1256-Nov-07 1010 1023.8 962.8 972 1081.0357-Nov-07 995 1011.9 960 999.35 1069.1258-Nov-07 990 1010 961.25 994.5 1052.1559-Nov-07 1010 1010.4 980 990.05 1032.9412-Nov-07 972 1001 957.05 995.5 1013.50513-Nov-07 997.95 1020 981 1003.05 1005.0714-Nov-07 1010 1046 1010 1038.25 1001.5115-Nov-07 1037.5 1065.5 1025 1037.15 1004.5716-Nov-07 1020 1059.9 1007 1046.95 1007.14519-Nov-07 1051 1065.4 1051 1053.8 1013.0620-Nov-07 1048 1048 995.7 1007 1016.5621-Nov-07 1016 1016 945 954.25 1012.0522-Nov-07 954.25 986 940 965.25 1009.12523-Nov-07 970 986 938.05 947.45 1004.86526-Nov-07 950.1 974 948 951.7 1000.48527-Nov-07 951.7 954 930.25 937.45 993.92528-Nov-07 945.5 974.8 945.05 967.5 986.8529-Nov-07 984.35 1008.8 975.05 990.1 982.14530-Nov-07 1000 1024.95 996.4 1014.15 978.8653-Dec-07 1030 1049 1021.5 1032.85 976.774-Dec-07 1020 1035 973.45 1027.95 978.865



5-Dec-07 1012 1044 1012 1034.4 986.886-Dec-07 1040 1064.8 1035 1040.8 994.4357-Dec-07 1050 1056 1004.3 1041.45 1003.835

DateOpen Price



10-Dec-07 1059.9 1059.9 1034.75 1045.65 1013.2311-Dec-07 1050 1085 1040 1077.6 1027.24512-Dec-07 1080 1098 1058.05 1073.3 1037.82513-Dec-07 1083 1089.8 1026.2 1037 1042.51514-Dec-07 1045 1048.95 1021.1 1042.35 1045.33517-Dec-07 1042 1044 1006.75 1012.8 1043.3318-Dec-07 1000 1042.7 1000 1018 1042.33519-Dec-07 1037.8 1042 980 998 1038.69520-Dec-07 1005 1028 981.1 993.6 1033.97524-Dec-07 1000 1012.5 982.3 990.25 1028.85526-Dec-07 994.7 1007 988.7 993.1 1023.627-Dec-07 999 1014.8 992.25 995.2 1015.3628-Dec-07 992 1010 978.5 986.6 1006.6931-Dec-07 1000 1009.9 985.1 994.5 1002.441-Jan-08 1000 1000 986 991.55 997.362-Jan-08 1005 1009.95 978.6 997.05 995.7853-Jan-08 999 999 969.95 973.2 991.3054-Jan-08 975 982.5 959 964.15 987.927-Jan-08 952 970 952 963.75 984.9358-Jan-08 965 970 936 939.8 979.899-Jan-08 944.9 1055 912.5 924.75 973.05510-Jan-08 931 941.75 905.05 909.2 964.45511-Jan-08 927 927 888 899.7 955.76514-Jan-08 899.7 909 840 863.45 942.6615-Jan-08 873.95 881.35 852 871.35 930.6416-Jan-08 868 868 827 847.7 915.70517-Jan-08 855 894.9 842.15 864.8 904.86518-Jan-08 860 865.55 835.1 842 892.6521-Jan-08 824 834.5 755.05 803.2 876.59522-Jan-08 780 840 700 807.05 863.3223-Jan-08 835 859 785 826.15 853.4624-Jan-08 850 850 761 788.75 841.41525-Jan-08 823 845 794 833.7 834.81528-Jan-08 775.05 874 775.05 864.7 834.9429-Jan-08 870 881 816.3 863 834.10530-Jan-08 870 870 833 844.9 833.82531-Jan-08 843 864.8 825 850.2 832.3651-Feb-08 833.15 918 826 905.75 838.744-Feb-08 920 923.9 891.2 897.35 848.1555-Feb-08 912 920 869 872.6 854.716-Feb-08 855.1 860 827 832.25 855.327-Feb-08 845 845 790 800 856.4458-Feb-08 802 814 780.1 805.75 853.65

11-Feb-08 805.75 850 775 813.35 848.515



12-Feb-08 815.4 827 796.25 807.7 842.98513-Feb-08 812 824.95 802.15 817.25 840.2214-Feb-08 821.1 845 820 829.2 838.12

DateOpen Price



15-Feb-08 825 829 805 812.45 828.7918-Feb-08 830 830 801 806.2 819.67519-Feb-08 813 819 805.15 809.4 813.35520-Feb-08 808 808 763 769.7 807.121-Feb-08 777 790 754.45 763.15 803.41522-Feb-08 765 774.8 750.1 766.35 799.47525-Feb-08 775 805.5 768.25 800.55 798.19526-Feb-08 811.3 816 791 813.3 798.75527-Feb-08 815 840 815 832.9 800.3228-Feb-08 830 843 816.7 837.15 801.11529-Feb-08 830 875 825 868.2 806.693-Mar-08 859.7 909 847.5 872.65 813.3354-Mar-08 875 915 875 904.55 822.855-Mar-08 907 944.5 902 940.2 839.97-Mar-08 921.25 938.1 873.55 927.85 856.37

10-Mar-08 919 938 883 895.05 869.2411-Mar-08 885 892 852 866.65 875.8512-Mar-08 876 884.9 851.1 857.4 880.2613-Mar-08 850 874.9 806 840.35 881.00514-Mar-08 840 849.8 805 832.7 880.5617-Mar-08 810 829.9 800 806.55 874.39518-Mar-08 810 824.85 805.15 813.35 868.46519-Mar-08 830 836.25 801.6 822.45 860.25524-Mar-08 863.55 863.55 790 810.2 847.25525-Mar-08 825 863.95 816 843.85 838.85526-Mar-08 850 856 835.05 845.6 833.9127-Mar-08 840.25 848.5 831 838.3 831.07528-Mar-08 834.75 855 822 837.8 829.11531-Mar-08 840 840 811 827 827.78



Chart:

10 DAYS MOVING AVERAGE OF MARUTI SCRIP

0

200

400

600

800

1000

1200

1400

4/2/

2007

5/2/

2007

6/2/

2007

7/2/

2007

8/2/

2007

9/2/

2007

10/2

/200

7

11/2

/200

7

12/2

/200

7

1/2/

2008

2/2/

2008

3/2/

2008

DATES

ST

OC

K P

RIC

E

Actual

Forecast

Interpretation:

Here, the Moving Average is almost equal to the Actual line. So it indicates that it is a right time to buy the security. In this Graph, we can observe that moving Average of Maruti Suzuki Ltd. Stock has been decreased. So, it is giving clear picture of future movement of the scrip. This Graph provides a message to the investor that it is a right time to buy the Stock of Maruti Suzuki Ltd. And, if we observe the trend of this graph then we can also notice that Moving Average line has been decreased, so it is also a right time to buy the stock.

Here, in this case, the Stock price of Maruti Suzuki Ltd. is just equal to its moving average line. But if we see the trend of Moving Average then it indicates that investors are becoming increasingly bullish from bearish pattern on the Stock Price of Maruti Suzuki Ltd.



Company: Tata Motors.

Sector: Automobile

10 days Moving Average of Tata Motors Scrip

DateOpening

PriceHigh Price Low Price

Closing Price


2-Apr-07 711 711 661.05 670.9 #N/A3-Apr-07 679.7 685.85 671 681.4 #N/A4-Apr-07 686.1 690.95 669.1 682.8 #N/A5-Apr-07 680 694.75 679.1 686.1 #N/A9-Apr-07 690 709.75 690 703.7 #N/A

10-Apr-07 711.5 725.6 708.2 721.55 #N/A11-Apr-07 721.55 731 713.65 722.8 #N/A12-Apr-07 718.8 719 707.05 712.4 #N/A13-Apr-07 714.1 727.5 704 726.3 #N/A16-Apr-07 735 754.9 730 750.25 705.8217-Apr-07 751 761.5 728 730.6 711.7918-Apr-07 711.25 741 711.25 722.5 715.919-Apr-07 717 722.2 704.2 713.1 718.9320-Apr-07 722 733.45 720.1 722.9 722.6123-Apr-07 729.7 733.7 715 718.15 724.05524-Apr-07 728.8 754 725.1 741.6 726.0625-Apr-07 750.1 767.45 750.05 759.05 729.68526-Apr-07 777 789.85 747.5 766.6 735.10527-Apr-07 768.15 774.4 739 749.35 737.4130-Apr-07 740.15 761 732 751.75 737.563-May-07 780 780 729.1 733.1 737.814-May-07 734 744.7 726 731.5 738.717-May-07 735 743 718.6 728.3 740.238-May-07 728.3 735 720.05 725.1 740.459-May-07 730 731.5 713 723.25 740.9610-May-07 728.1 733.75 712 714.85 738.28511-May-07 713 720.85 690 716.1 733.9914-May-07 728.7 729.8 709.1 715.2 728.8515-May-07 717.9 719.9 713 714.35 725.3516-May-07 715 737.9 715 734.65 723.6417-May-07 754.7 756.8 737 750.6 725.3918-May-07 752 757 740 741.8 726.4221-May-07 741 745 723 725.45 726.13522-May-07 727 743.65 724.3 726.95 726.3223-May-07 647.9 733.85 647.9 708 724.79524-May-07 706.85 717 705.25 712.7 724.5825-May-07 708 729 703.05 726.95 725.66528-May-07 730 740.9 728.2 732.75 727.42



29-May-07 735 743.9 730.15 740.85 730.0730-May-07 745.9 745.9 736 742.1 730.815

DateOpening


Closing Price


31-May-07 744 764.4 742 755.7 731.3251-Jun-07 753.35 759.7 742.2 747.95 731.944-Jun-07 745 745 707.55 710.85 730.485-Jun-07 714.8 721.3 707.7 710.5 728.8356-Jun-07 705 710 656.1 688 726.8357-Jun-07 676 709.7 672.4 677.85 723.358-Jun-07 677.85 677.85 646.55 652.2 715.87511-Jun-07 676.1 676.1 646 653.2 707.9212-Jun-07 575 659 575 641.2 697.95513-Jun-07 645 657.3 642 645.2 688.26514-Jun-07 665.15 665.15 638.3 642.25 676.9215-Jun-07 647 685 645 650.4 667.16518-Jun-07 658 658 642.9 644.95 660.57519-Jun-07 644 664.95 644 663.5 655.87520-Jun-07 666.15 690.05 666.15 686.4 655.71521-Jun-07 695 698 682.1 687.5 656.6822-Jun-07 682 687.5 663.15 684.3 659.8925-Jun-07 685 690.5 673.15 678.15 662.38526-Jun-07 678 688 671.05 684.6 666.72527-Jun-07 683.5 685.5 666 671.7 669.37528-Jun-07 673.7 675.85 659.75 664.4 671.5929-Jun-07 666.05 675 666 670.2 673.572-Jul-07 669.5 687.4 666.2 682.2 677.2953-Jul-07 684 694.9 676.2 685.85 679.534-Jul-07 693.9 707.5 687 701.35 681.0255-Jul-07 700 712.9 695.35 709.55 683.236-Jul-07 709 718 695.65 711.2 685.929-Jul-07 711.05 722.5 711.05 716.3 689.73510-Jul-07 720 746.6 720 743.25 695.611-Jul-07 742 743.25 727.15 736.1 702.0412-Jul-07 736.1 745 727 739.85 709.58513-Jul-07 749 772.1 743.05 767.05 719.2716-Jul-07 786 786 751.3 759.5 72717-Jul-07 759.5 767 745.1 748.8 733.29518-Jul-07 750 755 731.5 743.35 737.49519-Jul-07 750 785 743 776.75 744.21520-Jul-07 830 830 760 767.6 749.85523-Jul-07 770 780 756 766.6 754.88524-Jul-07 769 779 745 747.1 755.2725-Jul-07 747.1 747.1 722.5 726 754.2626-Jul-07 730.9 762.25 718.2 731.85 753.4627-Jul-07 735 735 695 699.15 746.6730-Jul-07 720.5 720.5 696 707.25 741.44531-Jul-07 706 718.8 685.55 699.4 736.5051-Aug-07 699 699 660.6 667.4 728.91



2-Aug-07 665 677.6 646.6 651.8 716.4153-Aug-07 660.4 673 653.25 656.35 705.29

DateOpening


Closing Price


6-Aug-07 650 655 631.2 648.8 693.517-Aug-07 655 667 655 657.7 684.578-Aug-07 665 670.45 657 658.95 677.8659-Aug-07 664 680 659.2 663.55 671.03510-Aug-07 648.65 672.5 648.65 669.4 668.0613-Aug-07 675 696 670.15 692.55 666.5914-Aug-07 696 698.5 681 691.15 665.76516-Aug-07 661 673.8 650 660.5 665.07517-Aug-07 660.5 669 638.4 641.15 664.0120-Aug-07 660 667 644.1 649.85 663.3621-Aug-07 650 655 628.15 634.15 661.89522-Aug-07 633 642.5 616.1 619.5 658.07523-Aug-07 629.9 642 613 620.8 654.2624-Aug-07 628.1 664 628.1 656.6 653.56527-Aug-07 665.35 682 665.35 675.4 654.16528-Aug-07 679 679 656.4 663.05 651.21529-Aug-07 660 677.6 645 674.15 649.51530-Aug-07 680.2 699 674 680.75 651.5431-Aug-07 680 711 680 701.75 657.63-Sep-07 704 709 692.2 702.85 662.94-Sep-07 700.05 707.9 682.05 691.35 668.625-Sep-07 700 712.9 687 698.85 676.5556-Sep-07 701 716.9 690 712.05 685.687-Sep-07 714 718 692.15 695.15 689.53510-Sep-07 686.5 704.85 681.2 702.7 692.26511-Sep-07 704 704.5 686.3 689.15 694.87512-Sep-07 692 698.9 681 684.75 695.93513-Sep-07 684.75 699 684.4 695 697.3614-Sep-07 701 704.9 689.25 693.75 696.5617-Sep-07 698 698 688.55 694.75 695.7518-Sep-07 698 701 692.15 696.1 696.22519-Sep-07 703 734.95 700 720.4 698.3820-Sep-07 728.9 747.8 724 731.25 700.321-Sep-07 729.05 747.45 720 741 704.88524-Sep-07 749.8 755 737.35 747.2 709.33525-Sep-07 747.2 747.9 733.1 740.9 714.5126-Sep-07 740.9 747 721.5 739.9 720.02527-Sep-07 747 760.7 740 751.3 725.65528-Sep-07 755 822 742.1 776.9 733.971-Oct-07 807 807 765 773.3 741.8253-Oct-07 778 809.6 752.1 788.1 751.0254-Oct-07 800 807.4 777.4 799.45 758.935-Oct-07 799.45 800.05 770 779.05 763.718-Oct-07 780.15 787 745 764.35 766.0459-Oct-07 745 800 745 796.15 770.94



10-Oct-07 773.65 818.9 773.65 806.7 777.5211-Oct-07 811 841.9 800.1 830.55 786.585

DateOpening


Closing Price


12-Oct-07 830 838.9 789.05 803.35 791.7915-Oct-07 807 825 807 818.3 795.9316-Oct-07 837.1 837.1 805 820.8 800.6817-Oct-07 776.65 814.8 741 806.95 802.56518-Oct-07 801.25 821.7 755 791.35 801.75519-Oct-07 779.6 801 758.25 785.15 802.36522-Oct-07 779 784 760 772.9 803.2223-Oct-07 781 808.4 781 795.6 803.16524-Oct-07 798.9 805 770 774.6 799.95525-Oct-07 784 816.8 775 800.6 796.9626-Oct-07 799.8 815 775.2 804.8 797.10529-Oct-07 816.8 836.8 801 807.25 79630-Oct-07 810 816.9 756.05 767.75 790.69531-Oct-07 767.3 805.95 750.05 757.85 785.7851-Nov-07 770 771.9 739 746.95 781.3452-Nov-07 730 759 725 754.8 778.315-Nov-07 750 750 735 740.15 775.0356-Nov-07 740.15 744.8 716.3 719.45 767.427-Nov-07 720 734.5 710.2 720.3 761.998-Nov-07 715 724.7 704.6 707.55 752.6859-Nov-07 718.4 718.4 687 694.8 741.68512-Nov-07 687 694.35 675 684.35 729.39513-Nov-07 690 705.2 673.1 693.3 721.9514-Nov-07 700 731.8 700 707.65 716.9315-Nov-07 705 718.5 695.55 698.95 712.1316-Nov-07 685 711 685 697.1 706.3619-Nov-07 705 715.9 697 703.1 702.65520-Nov-07 700 718 691 708.45 701.55521-Nov-07 739.2 739.2 686.1 691.3 698.65522-Nov-07 702 709.8 678.15 694.5 697.3523-Nov-07 700 723.7 698.3 714.35 699.30526-Nov-07 720.1 728 705 711.75 702.04527-Nov-07 710 722.5 706 719.75 704.6928-Nov-07 720 725.95 714 721.25 706.0529-Nov-07 722 744 714 718.2 707.97530-Nov-07 724 744 714 732.45 711.513-Dec-07 736 749 733.35 736.15 714.8154-Dec-07 737 746 728.35 741.3 718.15-Dec-07 744 783.9 744 772.4 726.216-Dec-07 775.5 782 763.25 775.45 734.3057-Dec-07 775 781.7 760.55 767.3 739.610-Dec-07 772 777.7 745.05 766.45 745.0711-Dec-07 770 777.3 761 775.2 750.61512-Dec-07 776.9 780 762 770.05 755.49513-Dec-07 770 787.8 747.1 763.15 759.99



14-Dec-07 760 764 738 744.85 761.2317-Dec-07 743.8 749.7 690 701.75 757.79

DateOpening


Closing Price


18-Dec-07 709.1 720 697 702.2 753.8819-Dec-07 716 717.4 681.2 690.7 745.7120-Dec-07 692 714.9 692 710.15 739.1824-Dec-07 727 733.7 717 730.4 735.4926-Dec-07 736 755.5 730 752.1 734.05527-Dec-07 756 760 731.4 736.75 730.2128-Dec-07 732 739.7 688 729.35 726.1431-Dec-07 744 745 733 741.9 724.0151-Jan-08 742 766.5 737 762.35 725.7652-Jan-08 766.85 797 753 793.55 734.9453-Jan-08 800 816 780.05 791.6 743.8854-Jan-08 800 824.1 771.15 781.65 752.987-Jan-08 783 807.8 763 785.4 760.5058-Jan-08 790 799.5 765.4 774.9 764.9559-Jan-08 767 787 754 770.2 766.76510-Jan-08 783 802 744.1 749.2 768.0111-Jan-08 779.95 779.95 736.15 763.1 771.38514-Jan-08 764.9 779.5 758.9 765.6 773.75515-Jan-08 777.7 790 758.65 769 774.4216-Jan-08 750 755 730.3 749.95 770.0617-Jan-08 750 755 730.35 736.65 764.56518-Jan-08 736.65 737.7 706.3 714.3 757.8321-Jan-08 714 716 637.15 653.65 744.65522-Jan-08 635 690 530.5 650.9 732.25523-Jan-08 680 710 639 658.85 721.1224-Jan-08 673 693.4 645 658.55 712.05525-Jan-08 667.1 718 667 710.45 706.7928-Jan-08 705 739.7 670 712.75 701.50529-Jan-08 720.1 737.5 701 715.8 696.18530-Jan-08 723.9 723.9 686.25 696.95 690.88531-Jan-08 709 720 686.6 699.45 687.1651-Feb-08 708 760 706 753.5 691.0854-Feb-08 765 787.8 754 770 702.725-Feb-08 770 774 745 754 713.036-Feb-08 733.95 743 702.6 735.95 720.747-Feb-08 740 748.9 698.05 715.1 726.3958-Feb-08 717 730 697.05 710.95 726.445

11-Feb-08 707.3 723.8 685 700.85 725.25512-Feb-08 700.85 710.4 688.65 693.9 723.06513-Feb-08 700 719.9 700 714.8 724.8514-Feb-08 724.1 743.8 721.55 733.15 728.2215-Feb-08 725 756 715 751.85 728.05518-Feb-08 724.05 755 724.05 732.7 724.32519-Feb-08 740 750.8 735.1 739.65 722.8920-Feb-08 738.8 738.8 700 710.3 720.325



21-Feb-08 715 729 703.2 708.05 719.6222-Feb-08 708.5 708.5 690 696.05 718.13

DateOpening


Closing Price


25-Feb-08 700.1 715 695 705.85 718.6326-Feb-08 710 714 700.15 704.15 719.65527-Feb-08 705.1 717.95 705 707.85 718.9628-Feb-08 705 714.9 703.35 709.8 716.62529-Feb-08 709.8 715 686.3 700.35 711.4753-Mar-08 700.35 709.95 685 695.1 707.7154-Mar-08 703 706.95 688.4 702.2 703.975-Mar-08 703 711.95 700 704.35 703.3757-Mar-08 701.1 701.1 658 671.8 699.75

10-Mar-08 672.5 699.7 611.65 674.8 697.62511-Mar-08 675 675 650.1 653.3 692.3712-Mar-08 669 669 638.3 645.1 686.46513-Mar-08 640 675 614.15 621.35 677.81514-Mar-08 624 645 624 637.65 670.617-Mar-08 625 629.7 597.1 609.4 661.50518-Mar-08 609.4 625 597 619.45 653.9419-Mar-08 633.1 655 632 650.65 648.78524-Mar-08 651.95 669.95 651.95 663.2 644.6725-Mar-08 670 685 670 680.1 645.526-Mar-08 690 694 651.05 678.75 645.89527-Mar-08 670 673.6 628.35 655.35 646.128-Mar-08 654 654 633.1 646.05 646.19531-Mar-08 641 645 617.35 622.7 646.33



Chart:

10 DAYS MOVING AVERAGE OF TATA SCRIP

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100

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500

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900

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2007

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DATES

ST

OC

K P

RIC

E

Actual

Forecast

Interpretation:

Here, In this case, Moving Average is above the Actual line. So it indicates that it is a right time to buy the security. In this Graph, we can see that the moving average of Tata Motors Stock has been decreased. So, it is giving clear picture of future movement of the scrip. This Graph provides a message to the investor that it is a right time to buy the Stock of Tata Motors.

Here, in this case, the actual Stock price of Tata Motors is just below its moving average line. It indicates that investors are becoming increasingly bullish on the Stock Price of Tata Motors.

Moreover, Stock price and moving Average of Tata Motors has been decreased. It indicates that investors are becoming increasingly bullish from bearish pattern on the Stock Price of Tata Motors.



TECHNICAL ANALYSIS: [By Using Candle Stick Charting]

Company Name: Maruti Suzuki Ltd.

Candle Stick of Maruti Suzuki scrip

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200

400

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2/2/

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3/2/

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Dates

Sto

ck P

rice

s Opening Price

High Price

Low Price

Closing Price

Interpretation:

Japanese Candle Stick is used to analyze the pattern of stock movement. Candle is same as bar chart but the color is different red candle is used to indicate the bearish trend and green candle is a indicator of bullish trend

Japanese candle use historical prices of a stock in the prescribed manner i.e. Open, High, Low, Close. The size of the candle is known by its magnitude of open and close, and the size of the shadow is known by high and close.

In the above Candle Stick Chart it is clear that Stock Price of Maruti Suzuki Ltd. has been decreased. Simply Share Prices of Maruti Suzuki Ltd is falling down. It indicates that the investors are becoming more bearish than bullish. Here, as far as Maruti



Suzuki is concerned, bearish market trend is taking place. It is a right time to buy the Scrip.Company: Tata Motors

Candle Stick for TATA Motors Scrip

0

100

200

300

400

500

600

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800

900

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2007

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7

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Sto

ck P

rice

s

Opening Price

High Price

Low Price

Closing Price

Interpretation:

From the above Candle Stick Chart it is clear that Stock Price of Tata Motors is falling down. Here, we can observe lot of volatility in stock price. Both the Bullish and Bearish trends are taking place. The Bullish trend is following by Bearish Trend. It indicates that the investors are becoming more bearish than bullish. At present Situation Bearish Trend is going on. It is a right time to buy the Scrip.



FINDINGS, SUGGESTIONS & CONCLUSION



CHAPTER: 10

FINDINGS, SUGGESTIONS AND CONCLUSION

Findings of the study:

In case of RSI of Maruti Suzuki Scrip, the best time to sell the stock was between 12 th

July 07 to 31st July 07 and 9th October 07 to 18th October 07 since the RSI was above

70 & it had reached its peak level. The best time to buy the stock was between 2nd Jan

08 to 24th Jan 08 since the RSI was below 30 for these many days.

In case of RSI of Tata Motors, the best time to sell the stock was between 27 th Sep 07

to 4th October 07 and 10th December 07 to 12th December 07 since the RSI was above

70 & it had reached its peak level. The best time to buy the stock was between 8 th

August 07 to 23rd August 07 and 23rd Jan 08 to 24th Jan 08 as well as between 7th

March to 18th March 08 since the RSI was below 30 for these many days.

The 10 days moving average of Maruti Suzuki scrip, provides a message to the

investor that it is a right time to buy the Stock and, the trend of the Moving Average

line has been decreased, so it is also a right time to buy the stock.

In case of 10 days Moving Average of Tata Motors Ssrip, the actual Stock price is

just below its moving average line. It indicates that investors are becoming

increasingly bullish on the Stock Price of Tata Motors.

In Japanese Candle Stick Chart of Maruti Suzuki Ltd. we can see that the stock price

has been decreased. Simply Share Prices of Maruti Suzuki Ltd is falling down. It

indicates that the investors are becoming more bearish than bullish.

In case of Japanese Candle Stick Chart of Tata Motors, we can observe lot of

volatility in stock price. Both the Bullish and Bearish trends are taking place. The

Bullish trend is following by Bearish Trend



Fundamentally, financial performance of these companies in respect of sales and

profit is good.

If an investor opts for long term investment then he will earn huge amount of return.

Long term Investment is known to be less risky.

This study may not provide any guidelines to Speculators. It is useful to Long Term

Investors.

Technical analysts evaluate securities by analyzing statistics generated by market

activity, past prices and volume.

One of the most basic and easy to use technical analysis indicators is the moving

average, which shows the average value of a security's price over a period of time.

The most commonly used moving averages are 10 days, 20 days, 30 days, 50 days,

100 days and 200-days moving average..

One of the most important areas for any investor to look when researching a company

is the financial statement. Financial reports are required by law and are published

both quarterly and annually.

Indian Economy is consistently achieving a tremendous growth in these Sectors.

If we consider RSI then almost all the scrips of these companies are lying between 30

and 70. It means an investor should hold the scrips until it reaches 70 to sell and 30 to

buy.

The stock prices always take a correction after a major climb.

Moving average is one of the best methods of predicting future movement of Stock

Price. If we use 200 Day Moving Average for Analysis then volatility of stock will be

less. It gives clear picture of movement of Stock.



Conclusion of the study:

As we all know India is one of the fastest growing economies in the world. India

is consistently achieving growth in automobile sector. The automotive industry is

witnessing tremendous and unprecedented changes these days. On a global scale, the

assets of the top ten automotive corporations accounts for 28% of the assets of the

world’s top 50 companies, 29% of their employment and 30% of their total sales.

The Indian automobile industry is going through a technological change where

each firm is engaged in changing its processes and technologies to sustain the

competitive advantage and provide customers with the optimized products and services.

The automobile industry had a growth of 15.4 % during April-January 2007, with

the average annual growth of 10-15% over the last decade or so. With the incremental

investment of $35-40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the

second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-

largest commercial vehicle manufacturer in the world. The Indian automobile market is

among the largest in Asia.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016,

with the motive of making India the most popular manufacturing hub for automobiles and

its components in Asia. The plan focuses on the removal of all the bottlenecks that are

inhibiting its growth in the domestic as well as international arena.

With comparatively higher rate of economic growth rate index against that of

great global powers, India has become a hub of domestic and exports business. The

automobile sector has been contributing its share to the shining economic performance of

India in the recent years.

The Indian automobile industry is going through a phase of rapid change and high

growth. With new projects coming up on a regular basis, the industry is undergoing

technological change. The major players are expanding their plants and focusing on mass

customization, mass production, etc





Apart from domestic production, the industry is consistently focusing on the

automobile exports. The auto component segment is contributing a lot in the export

arena. The liberalized policies of the government are now making the companies go for

more and more exports.

Because of these reasons, the shares of automobile industry are performing well

and therefore the share market is attracting people to invest their hard earned money and

find fortune. But lack of knowledge about shares and stock market is making them

cautious of investing in this market. They need to be educated as well as guided to

minimize the risk and to assess the return on their investment.

Suggestions:

1. Before going to invest, an investor should have clear and adequate knowledge of

capital market.

2. It is better to go for Long term Investment rather than the Short term Investment.

Because it is less risky and also provides sufficient return.

3. The investors should know the value of money.

4. Practically, stock market activities are very risky. So, investors should be careful

while investing.

5. In case of half knowledge about stock market is very dangerous. So, whenever a

person wants to invest in stock market he should take necessary tips from the experts

or Technical Analysts.

6. Investors should also look into global pressure and market movement in order to look

for avenues of investing in different stocks and to take position; some of the sources

for understanding global pressure are CNBC TV18, News Paper, Economy watch etc.




BIBLIOGRAPHY



CHAPTER 11

BIBLIOGRAPHY

BOOKS REFERRED:

1. Security Analysis & Portfolio Management, By, Punithavathy Pandian.

2. Investment Analysis & Portfolio Management, By Prasanna Chandra

3. Financial Markets & Institutions, By, Dr. S. Guruswamy

4. Security Analysis And Portfolio Management, By, Donald E.Fisher And Ronald J.

Jordan,

WEB SITES:

1. www.bseindia.com

2. www.nseindia.com

3. www.stockchart.com

4. www.icicidirect.com

5. www.marutisuzuki.com

6. www.tatamotors.com

7. www.investopedia.com

8. www.moneycontrol.com

9. www.equitymaster.com

MAGZINES AND JOURNALS:

1. Annual Reports of Companies.


http://www.equitymaster.com/

http://www.moneycontrol.com/

http://www.investopedia.com/

http://www.tatamotors.com/

http://www.marutisuzuki.com/

http://www.icicidirect.com/

http://www.stockchart.com/

http://www.nseindia.com/

http://www.bseindia.com/


2. Factsheet of Geojit Securities.


A project report on fundamental & technical analysis of automobile sector at giojit pnb paribas ltd

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Transcript of A project report on fundamental & technical analysis of automobile sector at giojit pnb paribas ltd