Project WIP

8/14/2019 Project WIP

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ACKNOWLEDGEMENT

I would like to thank Dr. Amit Bhandari and Dr. K.K.Roy, faculty ofIISWBM, for their kind guidance and kind cooperation in carrying outthis project with a lot of moral support with their word of wisdom.Without their help this project would have been difficult to finish.

I would ofcourse like to thank Mr. ohit Handa , The Chief Manager ,KOTAK MAHINDRA BANK LTD. for providing me this opportunity ofundertaking this study and his kind support in carrying out the projectwith his vast experience and knowledge.

I would also like to pay my gratitude to Prof. Asoke Kr. Banerjee for hiscooperation and guidance.

SL. NO. CONTENTS PAGE NO.1 Acknowledgement

2 Introduction

3 About The Company

4 About TechnicalAnalysis

5678

9


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Lastly, I should and therefore I definitely would acknowledge thesupport my family and my friends for enduring me for these two

INTRODUCTION

This project was undertaken to find a brief analysis about themovements of the stock market in India. While making this analysis Ihave considered security of Kotak Mahindra Bank Ltd. And J PAssociate Ltd. for which a detail technical Analysis has been done onthe basis of past data available. Ultimate objective is to make atechnical forecasting of the security.


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Company History

Kotak Mahindra is one of India's leading financial conglomerates, offeringcomplete financial solutions that encompass every sphere of life. Fromcommercial banking, to stock broking, to mutual funds, to life insurance, toinvestment banking, the group caters to the financial needs of individuals and

corporates.

The group has a net worth of over Rs. 5,997 crore, employs over 20,000 people inits various businesses and has a distribution network of branches, franchisees,representative offices and satellite offices across 370 cities and towns in Indiaand offices in New York, London, San Francisco, Dubai, Mauritius and Singapore.The Group services around 5 million customer accounts.

The Company deals in Bill discounting, leasing and hire purchase, corporatefinance, management of fixed deposit mobilisation, financing against securities,money market operations, consumer finance, investment banking and clients'

money management.

In 1985The Kotak Mahindra Group was incorporated on 21st November as KotakCapital Management Finance Limited. This company has been promoted byUday Kotak, Sidney A. A. Pinto and Kotak & Company.

In 1986The company obtained the certificate of commencement of business on 11th

February 1986. Industrialists Harish Mahindra and Anand Mahindra took astake and that's when the company changed its name to Kotak Mahindra

Finance Limited on 8th April.

In 2003Kotak Mahidra Finance Limited Converts to a Commercial BankThe First Indian Company to do so.

Vision To MeetThe Unlimited Needs Of People In Infinite number Of

Ways .

Mission


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Business Vision Kotak Mahindra Finance LimitedIn 1986, = Activity of Bill DiscountingIn 1987, = Enter into the Market of Lease & Hire PurchasIn 1990, = The Autofinance Division StartedIn 1991, = The Investment Banking Division Started

Takes over FICOM - Indias largest Financial Retail Mktg.NetworkIn 1992, = Enters the Funds Syndication Sector

Kotak SecuritiesIn 1995, = Incorporated Brokerage and Distribution Business

Kotak Mahindra Capital CompanyIn 1995, = Incorporated Investment Banking Division

Kotak Mahindra Prime LimitedIn 1996, = The Auto Finance Business is Hived Of

= Takes a Significant Stake in Ford Credit kotak MahindraLimited

= The Launch of Matrix Information Services Limited

Kotak Mahindra Asset Management CompanyIn 1998, = Enter the Mutual Fund MarketIn 2000, = Kotak Mahindra ties up with the Old Mutual Plc. For Life

= Kotak Securities launches On Line Broking SiteIn 2001, = Launches Insurance Services

= Matrix sold to Friday Corporation

Kotak Mahindra Bank

In 2003, = Kotak Mahidra Finance Limited Converts to a CommercialBankThe First Indian Company to do so

In 2004, = Launches India Growth Funds, a Private Equity FundIn 2005, = Kotak Group realigns JV in Ford Credit

= Buys Kotak Mahindra Prime= Sells Ford Credit Kotak Mahidra= Launches a Real Estate Fund


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SCHEMES / PRODUCTS

KOTAK BANK

KOTAK SECURITIES

KOTAK CAR FINANCE

KOTAK LIFE INSURANCE

KOTAK MUTUAL FUND

KOTAK BANK KOTAK SECURITIES

KOTAK CAR FINANCE KOTAK LIFE INSURANCE KOTAK MUTUAL FUND

SERVICES

SERVICESKotak Mahindra Bank offers complete financial solutions for infinite customer needs. Thesavings account goes beyond the traditional role of savings, and provides a range ofservices, from funds transfer options, to attractive returns, earned through a comprehensivesuite of investment options that can be accessed through Internet or phone banking services.

Kotak Mahindra Bank offers tech-savvy products such as the Virtual Card and Kotak BillPay,

among others, that enable customers to shop, make payments, invest, redeem funds and

DEPOSIT

CREDIT CARDS

LOANS

INVESTMENT SERVICES NRI SERVICES

CONVENIENCE BANKING

CORPORATE BANKING

SMALLBUSINESSBANKING

COMMERCIAL LOAN

EASY EQUITY

EASY MF

P.M.S.

EASY INSURANCE EASY IPO

EASY DERIVATIVES

RESEARCH

MARGIN MONEY

SCHEME

SECURITY DEPOSITSCHEME

ADVANCE EMI

SCHEME

SPECIAL SCHEME

EQUITY SCHEME

DEBT SCHEME

BALANCED SCHEME

FOF SCHEME

KOTAK LIFE

INSURANCE

INDIVIDUALS

GROUPS

RURAL
http://www.moneycontrol.com/india/news/pressmarket/kotak-mahindra-bank-hikes-term-deposit-rates/17/36/355735http://www.moneycontrol.com/india/news/pressmarket/kotak-mahindra-bank-hikes-term-deposit-rates/17/36/355735


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track portfolio anywhere, anytime. Apart from SMS banking facility, Kotak Mahindra Banks

Mobile Banking platform enables transactions using GPRS, thereby allowing for a seamless

synergy of optimum service quality using advanced technology & higher security standards.

Kotak Mahindra Bank recently launched E-Tax, yet another convenience banking serviceextended to all our Current and Savings Account customers, where they can pay their Direct

Taxes online. E-Tax makes payment of taxes such as Income Tax for companies (corporationtax), Income Tax for individuals, TDS, Securities transaction tax, Interest tax, Hotel receiptstax, Estate duty, Wealth tax, Gift tax, Banking cash transaction tax, Fringe benefits tax or anyother tax collected by CBDT, convenient and hassle free

ORGANISATIONAL STRUCTURE

Network

BRANCHES

FRANCHISEES

REPRESENTATIVE OFFICE

SATTELITE OFFICE


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OVERSEAS OFFICE

Corporate Identity

TECHNICAL ANALYSIS

Meaning :- Technical Analysis can be defined as a study of the stock marketconsidering factors related to the supply and demand of stocks .

Technical Analysis does not look at underlying earnings potentialof company while evaluating stocks( i.e. It is not like fundamental analysis ).It uses charts and computerprograms to study the stocks trading volume and price movementsin the hope of identifying a trend. In fact the decision made on the

basis of Technical Analysis is doneonly after inferring a trend andjudging the future movementof the stock on the basis of thetrend.Technical Analysis assumes that the market is efficient and the pricehasalready taken into consideration the other factors related to thecompany and the industry. It is because of this assumption that manythink Technical Analysis is a tool, which is effective for short-terminvesting.


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History :- Technical Analysis, the tool of investment for the average investor,thrived in the late nineteenth century when Charles Dow, then editor ofthe Wall Street Journal, proposed the Dow Theory. He recognized thatthe movement is caused by the action / reaction of the people dealingin stocks rather the news in itself.

Walter Deemer was one of the technical analysts of that time. Hestarted at Merrill Lynch in New York as a member of Bob Farrellsdepartment. Then when the legendary Gerry Tsai moved from Fidelityto found the Manhattan Fund in 1996, Deemer joined him. Tsai used toconsult him before every majorblock trade, at the start of a time whenlarge volume institutional trading became the norm and the meal ticketfor brokers. Deemer,could recreate market history on the charts andcite statistics. He maintained contact with the group of other prosaround then, who shared their insights with each other in a collegial

confidence worthy of the priesthood.

WAY OF TECHNICAL ANALYSIS

Technical Analysis is done by identifying the trend from pastmovements and then using it as a tool to predict future pricemovements of the stock. It can be done by using any of the following

methods:

a ) Moving AverageThis method is used to predict the trend and specify various supportand resistance levels in the short and long term period. Most commonlyused moving averages are 30 DMAs and 200 DMAs. Where DMA meansDays Moving Average.

b) Charts & Patterns

Some analysts' uses charts and patterns to decide on the trend andthen judge the future movement. The tool used by such analyst isconverting the chart in one of the many form of many shapescommonly formed by stocks. Some of such patterns are:


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TRENDSTrends can be classified broadly in 3 types. They are:

Uptrend: -Generally a stock moves in any direction with phases of consolidationor moving against the trend for a short period. But still it creates ahigher Highs and Lows in case of an uptrend. In short each short rallywill create new High for the stock.

Downward: -In this case as against Uptrend the stock creates lower Highs and Lows.Furthermore.in case of Downtrend the fall is much more steeper thanthe rise in case of Uptrend.

c) Range-bound: -In case of such a trend the price moves in a small range for the longperiod. There is no apparent direction as far as trend is concerned inthis case

Role of Volume:

Volume plays a key role in deciding about the kind of future movementin stock. Whenever there is a sudden rise in the volume of the stockand if it is not followed by a price fall, it is a sign of consolidation andthat the price may rise in near future. Generally if any stock breaks any

trend it is accompanied by huge rise in volume.

In case of range bound trend the volume tends to die down to a greatextent. Smart investors uses technical analysis to judge the rise involume and take early positions in the stock during breakthroughs.

Who uses technical Analysis?


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Investors for their short-term trading decisions use Technical

Analysis. This short-term may be further divided in day trading,

short-term investment and for hedging purposes. The role played

by Technical Analysis in each case is as follows:

1) Day Traders:

A day trader is one who takes and squares off his

position both on the same day. Mostly a day tradercounts on

turnover rather than margin. A day trader will interpret

the market movement through this idea.

2) Short term investors:

These people form the biggest clientele base of both the

brokers and the Technical Analyst. To explain the working

lets take the price movement curve of Infosys

3. Hedgers:

These are generally big investors, who have lot of money

at stake and hence they look to have some hedging of their

risk. The strategy followed by this section of investors is

that they compare the stock in consideration with the index

and on the basis of the result of this comparison they take

their position in the stock.

Is technicalAnalysis Helpful?

If we use only technical analysis in itself and do not


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consider other

aspects it is very unlikely that we will have much successin the

long run, particularly in case of short-term investments.But if we

use Technical analysis along with fundamental analysis or

discount the industry and company related news whileconsidering

the valuation, our chances of minimizing the riskbrightens.

One thing that we must realize is that technical analysisprovides

us only with the trend and judge future on that basis, it

can be farfrom actual in few cases, one of them was the day Infosys

crashed by 30% on a single day. By no imagination andno

analysis one

could have guessed the same or rather have come closedto it.

Therefore the best use of technical analysis is to realize

the trend

and levels at which it will break the trend so that one isprepared to

take positions when such trend breaks. It is because ofthis

disadvantage that Technical analysis more useful only forshort-

term investing...


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IISWBM

Indian Institute of Social Welfare and Business Management

Technical analysis

Technical analysis is a collection of methods to predict future stock prices taking into account only the

past and present data - prices and (optionally) volume. There is no consideration given to the

fundamentals of the company or the industry under consideration.

I personally use technical analysis(TA) only after I have zeroed in onto a company that I want to invest

in. That is, I use it to determine when to enter (buy) and when to exit (sell). Over and above that - I do

not execute blindly the output from TA. I look at the market sentiment, company and industry timing etc.

Even so, technical analysis does help me big time with the decision making.

How is TA performed?No need to understand that. Attached is a spreadsheet that will help you carry

out TA based on different indicators: Moving average, Moving Average Convergence / Divergence orRelative strength index.

Relative Strength Index ( RSI )

The RSI is a financial technical analysis oscillator showing price strength by comparing upward and

downward close-to-close movements.

The RSI is popular because it is relatively easy to interpret. It was developed by J. Welles Wilder andpublished in Commodities magazine (now called Futures magazine) in June 1978, and in his New

Concepts in Technical Trading Systems the same year. The term relative strength also refers to the

strength of a security in relation to its sector or the overall market. The Relative Strength Index is

described here.

For each day an upward change U or downward change D amount is calculated. On an up day, i.e.

today's close higher than yesterday's,

U = closetoday closeyesterday

D = 0

Or on the contrary, on a down day ( D is a positive number),

U = 0


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D = closeyesterday closetoday

If today's close is the same as yesterday's, both U and D are zero. An average for U is calculated with an

exponential moving average using a given N-days smoothing factor, and likewise for D. The ratio of

those averages is the Relative Strength,

This is converted to a Relative Strength Index between 0 and 100,

Technical Indicators

Most Popular Technical Analysis Articles

MACD - Easy to interpret moving average crossovers, MACD histogram, &

divergences.

Stochastics - Buy oversold, sell overbought, and interpreting stochastic price

divergences.

Relative Strength Index - Overbought/ oversold indicator, RSI divergences.

RELATIVE SRENGTH INDEX ( RSI)

One of the most popular technical analysis indicators, the Relative Strength Index

(RSI) is an oscillator that measures current price strength in relation to previous

prices. The RSI is a versatile tool, it can be used to:

RSI Alternative Buy and Sell Signals and Divergences:-

Generate buy and sell signals

Show overbought and oversold conditions

Confirm price movement

Warn of potential price reversals through divergences
http://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex2.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex2.html


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The chart below of WALMART shows how the RSI can generate easy to follow

overbought and oversold conditions :

The chart below of eBay (EBAY) shows how the RSI can generate easy to follow

buy and sell signals:

RSI Buy Signal

Buy when the RSI crosses above the oversold line (30).

RSI Sell Signal

Sell when the RSI crosses below the overbought line (70).


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Varying the time period of the Relative Strength Index can increase or decrease

the number of buy and sell signals. In the chart below of Gold, two RSI time

periods are shown, 14-day (default) and 5-day. Notice how decreasing the time

period made the RSI more volatile, increasing the number of buy and sell signals

substantially.

MACD

which stands for Moving Average Convergence / Divergence, is a technical analysis indicator created by

Gerald Appel in the 1960s. It shows the difference between a fast and slow exponential moving average

(EMA) of closing prices. During the 1980s MACD proved to be a valuable tool for any trader.

Since the crash of the market in2000, most strategies no longer recommend using MACD as the primary

method of analysis, but instead believe it should be used as a monitoring tool only. It is prone towhipsaw, and if a trader is not careful it is possible that they might suffer substantial loss, especially if

they are leveragedor trading options. The standard periods recommended back in the 1960s by Gerald

Appel are 12 and 26 days:

A signal line (or trigger line) is then formed by smoothing this with a further EMA. The standard period

for this is 9 days,

MACD is a indicator, and is designed to identify trend changes. It's generally not recommended for use

in ranging market conditions. Three types of trading signals are generated,

MACD line crossing itself.

MACD line crossing 10.

Divergence between price and 10.
http://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/2000http://en.wikipedia.org/wiki/2000http://en.wikipedia.org/wiki/2000http://en.wiktionary.org/wiki/whipsawhttp://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/2000http://en.wiktionary.org/wiki/whipsawhttp://en.wikipedia.org/wiki/Leverage_(finance)


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The signal line crossing is the usual trading rule. This is to buy when the MACD crosses up through the

signal line, or sell when it crosses down through the signal line. These crossings may occur too

frequently, and other tests may have to be applied.

The histogram shows when a crossing occurs. When the MACD line crosses through zero on the

histogram it is said that the MACD line has crossed the signal line. The histogram can also help

visualizing when the two lines are coming together. Both may still be rising, but coming together, so a

falling histogram suggests a crossover may be approaching.

A crossing of the MACD line up through zero is interpreted as bullish, or down through zero as bearish.

These crossings are of course simply the original EMA(12) line crossing up or down through the slower

EMA(26) line.

Positive divergence between MACD and price arises when price makes a new selloff low, but the

MACD doesn't make a new low (i.e. it remains above where it fell to on that previous price low). This is

interpreted as bullish, suggesting the downtrend may be nearly over. Negative divergence is the same

thing when rising (i.e. price makes a new rally high, but MACD doesn't rise as high as before), this is

interpreted as bearish.

Divergence may be similarly interpreted on the price versus the histogram, where the new price levels

are not confirmed by new histogram levels. Longer and sharper divergences (distinct peaks or troughs)

are regarded as more significant than small shallow patterns in this case.

It is recommended to look at a MACD on a weekly scale before looking at a daily

scale to avoid making short term trades against the direction of the intermediate trend.

Sometimes it is prudent to apply a price filter to the Bullish Moving Average

Crossover to ensure that it will hold. An example of a price filter would be to buy if

MACD breaks above the 9-day EMA and remains above for three days. The buy signal

would then commence at the end of the third day. For an example,

MACD

1. MACD Defined

The MACD indicator is one of the most popular technical analysis

tools. There are three main components of the MACD shown in the

picture below:

1. MACD: The 12-period exponential moving average (EMA) minus the 26-period EMA.

2. MACD Signal Line: A 9-period EMA of the MACD.


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3. MACD Histogram: The MACD minus the MACD Signal Line.

Daily Chart of Nasdaq 100 ETF

The MACD indicator is an effective and versatile tool. There are three main ways to

interpret the MACD technical analysis indicator,

1. Moving Average Crossovers

2. MACD Histograms3. MACD Divergences

Moving Average Crossovers

The primary method of interpreting the MACD is with moving

average crossovers. When the shorter-term 12-period exponential

moving average (EMA) crosses over the longer-term 26-period EMA

a buy signal is generated; this is seen on the Nasdaq 100 exchange

traded fund (QQQQ) chart below with the two purple lines.
http://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD2.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD3.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD4.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD2.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD2.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD3.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD4.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/MACD2.html


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MACD ( Daily Chart of Nasdaq 100 ETF)

Remember that the MACD line (the blue line) is created from the 12-period and

26-period EMA. Consequently:

1. When the shorter-term 12-period EMA crosses above the longer-term 26-

period EMA, the MACD line crosses above the Zero line.2. When the 12-period EMA crosses below the 26-period EMA, the MACD line

crosses below the Zero line.

Moving Average Crossover Buy Signal

A buy signal is generated when the MACD (blue line) crosses above the zero line.

Moving Average Crossover Sell Signal

When the MACD crosses below the zero line, then a sell signal is generated.

The prior buy and sell signals get a person into a trade later in the move of a stock

or future. A more common buy and sell signal is shown in the graph below of the

Nasdaq 100 exchange traded fund QQQQ:


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MACD ( Daily Chart of Nasdaq 100 ETF)

Online Trading Concepts

Most Common MACD Buy and Sell Signals

MACD Buy Signal

A buy signal is generated when the MACD (blue line) crosses above the MACD

Signal Line (red line).

MACD Sell Signal

Similarly, when the MACD crosses below the MACD Signal Line a sell signal is

generated.

The MACD moving average crossover is one of many ways to interpret the MACD

technical indicator. Using the MACD histogram and MACD divergence warnings are

two other important methods of using the MACD.

MACD Histograms
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The MACD Histogram is simply the difference between the MACD line (blue line)

and the MACD signal line (red line). The MACD histogram is illustrated in the chart

below of the Nasdaq 100 QQQQ's:

MACD ( Daily Chart of Nasdaq 100 ETF

Two important terms are derived from the MACD histogram and are illustrated

above in the chart of the QQQQ's:

Convergence: The MACD histogram is shrinking in height. This occurs

because there is a change in direction or a slowdown in the stock, future,bond, or currency trend. When that occurs, the MACD line is getting closer

to the MACD signal line.

Divergence: The MACD histogram is increasing in height (either in the

positive or negative direction). This occurs because the MACD isaccelerating faster in the direction of the prevailing market trend.


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The letter "T" represents when the top or peak of the MACD histogram occurs. In

contrast, the letter "B" shows when the bottom of the MACD histogram occurs.

Notice how closely the tops and bottoms of the MACD histogram are to the tops of

the Nasdaq 100 e-mini future.

MACD Histogram Buy Signal

When the MACD histogram is below the zero line and begins to converge towards

the zero line.

MACD Histogram Sell Signal

When the MACD histogram is above the zero line and begins to converge towards

the zero line.

Note: In the example above, three consecutive days of shrinking MACD histogram

from top or bottom served as the buy or sell signals shown with arrows. This is anagressive example. One could wait until the MACD histogram went to zero, but

that would be the same signal as the MACD moving average crossover.

The MACD is not only good for buy and sell signals, the MACD can be used for

warnings of potential change in the direction of stocks, futures, and currency pairs.


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MACD Divergences

Bearish divergence occurs when a technical analysis indicator is suggesting that a

price should be going down but the price of the stock, future, or currency pair is

continuing to maintain its current uptrend.

Bullish divergence occurs when the indicator is indicating that price should be

bottoming and heading higher, yet the actual price action is continuing downward.

These valuable divergences can signal to get out of a long or short position before

profits erode. The following chart of the E-mini S&P 500 Index Future shows some

of these divergences:

MACD ( Daily Chart E- mini S&P 500 Future ( ES )


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High 1 to High 2

Looking at the E-mini S&P 500 future, from High 1 to High 2, the futures contract

made higher highs, which is usually viewed as bullish. However, the MACD moving

average failed to make a new high. This bearish divergence was an early warningsign of things to come with the E-mini S&P 500 futures contract.

Low 1 to Low2

In yet another bearish sign for the E-mini S&P 500 futures contract, the future

made higher lows from Low 1 to Low 2, which again is usually considered positive.

Nevertheless, the MACD technical indicator made a clear lower low from Low 1 to

Low 2. This bearish divergence warned of the impending downturn of the S&P 500

future and the market as a whole.

Low 2 to Low 3

In addition to bearish and bullish divergences, the MACD can confirm price

movement as well. The E-mini S&P 500 futures contract made a substantial lower

low which was confirmed by the MACD when it made a lower low as well.

Simple Moving Average ( SMA )

The Simple Moving Average is arguably the most popular technical analysis tool

used by traders. The Simple Moving Average (SMA) is used mainly to identifytrend direction, but is commonly used to generate buy and sell signals. The

SMA is an average, or in statistical speak - the mean. An example of a Simple

Moving Average is presented below:

The prices for the last 5 days were 25, 28, 26, 24, 25. The average would

be (25+28+26+26+27)/5 = 25.6. Therefore, the SMA line below the last

days price of 27 would be 26.4. In this case, since prices are generallymoving higher, the SMA line of 26.4 would be acting as support .The

chart below of the Dow Jones Industrial Average exchange traded fund(DIA) shows a 20-day Simple Moving Average acting as support for prices.


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SMA ( Daily Chart Dow Jones Industrial Average ETF ( DIA)

Moving Average Acting as Support - Buy Signal

When price is in an uptrend and subsequently, the moving average is in an

uptrend, and the moving average has been tested by price and price has bounced

off the moving average a few times (i.e. the moving average is serving as a

support line), then buy on the next pullbacks back to the Simple Moving Average.

A Simple Moving Average can serve as a line of resistance as the chart of the DIA

shows:


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SMA ( Daily Chart Dow Jones Industrial Average ETF ( DIA)

Moving Average Acting as Resistance Sell Signal

At times when price is in a downtrend and the moving average is in a downtrend

as well, and price tests the SMA above and is rejected a few consecutive times (i.e.

the moving average is serving as a resistance line), then buy on the next

rally up to the Simple Moving Average.

The examples above have been only using one Simple Moving Average; however,

traders often use two or even three Simple Moving Averages. The advantages to

using more than one Simple Moving Average is discussed on the next page.

Stochastic RSI

The Stochastic RSI combines two very popular technical analysis indicators,

Stochastics and the Relative Strength Index (RSI). Whereas Stochastics and RSI

are based off of price, Stochastic RSI derives its values from the Relative Strength

Index (RSI); it is basically the Stochastic indicator applied to the RSI indicator.
http://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/RelativeStrengthIndex.html


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As will be shown below in the chart of the S&P 500 E-mini Futures contract, the

Stochastic RSI gives more profitable buy and sell signals and overbought and

oversold readings, than the Relative Strength Index.

Stochastic RSI :- Daily Chart E- mini S&P 500 Future ( ES )

In the chart above of the E-mini S&P 500 Futures contract, the RSI indicator spent

most of its time between overbought (70) and oversold (30), giving no buy or sell

signals. However, the Stochastic RSI used the RSI indicator to uncover many

profitable buy and sell signals.

How to interpret the buy and sell signals of the Stochastic RSI is given next in the

chart of the S&P 500 E-mini:


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Stochastic RSI :- Daily Chart E- mini S&P 500 Future ( ES )

Stochastic RSI Buy Signal

Buy when the Stochastic RSI crosses above the Oversold Line (20).

Stochastic RSI Sell Signal

Sell when the Stochastic RSI crosses below the Overbought Line (80).

The Stochastic RSI is an effective and potentially profitable use of the popular

Stochastic indicator and RSI indicator. To read more about the Stochastic indicator

and the RSI indicator, click the links below

Stochastics

1. Stochastics Fast & Slow

2. Stochastic Buy & Sell Signals3. Stochastic Price Divergences
http://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics2.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics3.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics2.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics3.html


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Stochastics Fast & Slow

Stochastic Fast

Stochastic Fast plots the location of the current price in relation to the range of a

certain number of prior bars (dependent upon user-input, usually 14-periods). In

general, stochastics are used to measure overbought and oversold

conditions. Above 80 is generally considered overbought and below 20 is

considered oversold. The inputs to Stochastic Fast are as follows:

Fast %K: [(Close - Low) / (High - Low)] x 100

Fast %D: Simple moving average of Fast K (usually 3-period moving

average)

Stochastic Slow

Stochastic Slow is similar in calculation and interpretation to Stochastic Fast. The

difference is listed below:

Slow %K: Equal to Fast %D (i.e. 3-period moving average of Fast %K)

Slow %D: A moving average (again, usually 3-period) of Slow %K

The Stochastic Slow is generally viewed as superior due to the smoothing

effects of the moving averages which equates to less false buy and sell signals. A

comparison of the two stochastics, fast and slow, is shown below in the chart of

the Nasdaq 100 ETF (QQQQ):

Stochastic Fast & Slow

Daily chart - Nasdaq 100 ETF


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As will be shown on the next page, Stochastics offer clear buy and sell signals and

help in determining overbought or oversold price conditions.

Stochastic Buy & Sell Signals

Stochastics Buy Signal

When the Stochastic is below the 20 oversold line and the %K line crosses over the

%D line, buy.

Stochastics Sell Signal

When the Stochastic is above the 80 overbought line and the %K line crosses

below the %D line, sell.

Stochastic Fast buy and sell signals are illustrated below in the chart of the E-mini

S&P 500 Future:

Stochastic Fast :- Daily Chart E- mini S&P 500 Future ( ES )
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Stochastic Slow is presented below in the chart of the E-mini Russell 2000 Futures

contract. Notice how much smoother the %K and %D lines are and how many

fewer false signals were given by the Stochastic Slow than were given by the

Stochastic Fast indicator.

Stochastic Slow :- Daily Chart E- mini Russel 2000 Future ( ER2 )


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In addition to giving clear buy and sell signals, the Stochastic technical analysis

indicator is also helpful in detecting price divergences and confirming trend.

4. Stochastic Price Divergences

Stochastics can be used to confirm price trend. In the example below of the

Nasdaq 100 ETF (QQQQ), the Stochastic indicator spent most of its time in the

overbought area. When Stochastics get stuck in the overbought area, like at the

very right of the chart, this is a sign of a strong bullish run. Signals to sellshort

would be ignored; however, before the signal not to short was given, many losses

unfortunately would have accrued from failed shorting attempts on the left half of

the chart.

Stochastic Fast & Slow

Daily chart - Nasdaq 100 ETF
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A powerful and more common occurence is Stochastic divergences. The chart

below of Gold futures illustrates Stochastic divergences and confirmations:

Stochastic Slow

Daily chart 100 OZ GOLD ( ZG )


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Low 1 to Low 2

The Stochastic Slow confirmed the upward movement of gold futures prices by

making a higher low.

High 1 to High 2

Gold futures rallied to make a higher high; however, the Stochastic Slow indicator

failed to make a higher high, instead it made a lower high. This divergence coupled

with a trendline break in the price of gold would be a strong warning to futures

traders that the recent rally had probably ended and any long futures positions

should be exited or at least scaled back.

Low 3 to Low 4

Gold prices continued its downward tumble, making a lower low at Low 4. On the

other hand, the Stochastic Slow indicator was signaling a higher low. This bullish

divergence would have warned traders to exit their shortsells, the price of gold had

a strong potential of bottoming.

Option Strategies

Most Popular Option Strategy Articles


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Call Option - If bullish, buy call options to maximize leverage and minimize risk to

the downside.

Put Option - Puts are a risk defined alternative to shorting stock, puts max

leverage and minimize risk

Bull Call Spread - A risk defined and reward defined alternative to buying call

options.

Bear Put Spread - A cheaper alternative to buying put options outright, however,

defines max reward.

Candlestick Patterns

Most Popular Candlestick Chart Pattern Articles

Candlestick Basics - If the closing price is above the opening price,

then candlestick is bullish.

Doji - A doji formation is a sign of indecision, neither bulls nor bears

can take control. Bearish Engulfing - When new highs are rejected and the bears push

prices below yesterday's low.

Bullish Engulfing - When new lows are rejected and bulls push prices

above yesterday's high.

O Online Trading ConceptCandlestick Basics

Candlestick charts are an effective way of visualizing price movements. There are

two basic candlesticks:

Bullish Candle: When the close is higher than the open (usually green or

white)

Bearish Candle: When the close is lower than the open (usually red or

black)
http://www.onlinetradingconcepts.com/Options/CallOptions.htmlhttp://www.onlinetradingconcepts.com/Options/PutOptions.htmlhttp://www.onlinetradingconcepts.com/Options/BullCallSpread.htmlhttp://www.onlinetradingconcepts.com/Options/BearPutSpread.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/CandlestickBasics.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/Doji.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/Doji.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/BearishEngulfing.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/BullishEngulfing.htmlhttp://www.onlinetradingconcepts.com/Options/CallOptions.htmlhttp://www.onlinetradingconcepts.com/Options/PutOptions.htmlhttp://www.onlinetradingconcepts.com/Options/BullCallSpread.htmlhttp://www.onlinetradingconcepts.com/Options/BearPutSpread.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/CandlestickBasics.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/Doji.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/BearishEngulfing.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/BullishEngulfing.html


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Candlestick Parts

There are three main parts to a candlestick:

1) Upper Shadow: The vertical line between the high of the day and the close (bullishcandle) or open (bearish candle)

2) Real Body: The difference between the open and close; colored portion of thecandlestick

3) Lower Shadow: The vertical line between the low of the day and the open (bullish

candle) or close (bearish candle)

Candlestick Patterns

The power of Candlestick Charts is with multiple candlesticks forming reversal and

continuation patterns. OnlineTradingConcepts.com has many detailed explanations of these

candlestick patterns; the links are given below:

Bullish Engulfing Pattern

Bearish Engulfing Pattern

Dark Cloud Cover

Doji

Dragonfly Doji

Evening Star

Gravestone Doji

Hammer

Hanging Man

Harami
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Inverted Hammer

Morning Star

Piercing Pattern

Shooting Star

Tweezer Tops & Bottoms

Windows

Doji

The Doji is a powerful Candlestick formation, signifying indecision between bulls and bears.

A Doji is quite often found at the bottom and top of trends and thus is considered as a sign

of possible reversal of price direction, but the Doji can be viewed as a continuation pattern

as well.

A Doji is formed when the opening price and the closing price are equal. A long-legged Doji,

often called a "Rickshaw Man" is the same as a Doji, except the upper and lower shadows

are much longer than the regular Doji formation.

The creation of the Doji pattern illustrates why the Doji represents such indecision. After theopen, bulls push prices higher only for prices to be rejected and pushed lower by the bears.

However, bears are unable to keep prices lower, and bulls then push prices back to the

opening price.

Of course, a Doji could be formed by prices moving lower first and then higher second,

nevertheless, either way, the market closes back where the day started.

The chart below of General Electric (GE) stock shows two examples of Doji's:
http://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/InvertedHammer.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/MorningStar.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/PiercingPattern.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/ShootingStar.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/TweezerTopBottom.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/Windows.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/InvertedHammer.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/MorningStar.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/PiercingPattern.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/ShootingStar.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/TweezerTopBottom.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Candlesticks/Windows.html


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DOJI : - Daily Chart General Electric ( GE )

In a Doji pattern, the market explores its options both upward and downward, but cannot

commit either way. After a long uptrend, this indecision manifest by the Doji could be

viewed as a time to exit one's position, or at least scale back. Similarly, after a long

downtrend, like the one shown above of General Electric stock, reducing one's position size

or exiting completely could be an intelligent move.

It is important to emphasize that the Doji pattern does not mean reversal, it means

indecision. Doji's are often found during periods of resting after a significant move higher or

lower; the market, after resting, then continues on its way. Nevertheless, a Doji pattern is agreat sign that a prior trend is losing its strength, and taking some profits might be well

advised.

stick Patterns Candlestick Basics

Bearish Engulfing

Bullish Engulfing

Dark Cloud Cover

Hammer

Hanging Man

Inverted Hammer

Morning Star Piercing Pattern

Shooting Star

Gravestone Doji

The Gravestone Doji is a significant bearish reversal candlestick pattern that mainly occurs

at the top of uptrends.
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The Gravestone Doji is created when the open, low, and close are the same or about the

same price (Where the open, low, and close are exactly the same price is quite rare). The

most important part of the Graveston Doji is the long upper shadow.

The long upper shadow is generally interpreted by technicians as meaning that the market

is testing to find where supply and potential resistance is located.

The construction of the Gravestone Doji pattern occurs when bulls are able to press prices

upward.

However, an area of resistance is found at the high of the day and selling pressure is able to

push prices back down to the opening price. Therefore, the bullish advance upward was

entirely rejected by the bears.

Gravestone Doji Example

The chart below of Altria (MO) stock illustrates a Gravestone Doji that occured at the top of

an uptrend:

Gravestone Doji

Daily Chart Altria ( MO )


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In the chart above of Altria (MO) stock, the market began the day testing to find where

support would enter the market. Altria eventually found resistance at the high of the day,

and subsequently fell back to the opening's price.

The Gravestone Doji is an extremely helpful Candlestick reversal pattern to help traders

visually see where resistance and supply is likely located. After an uptrend, the Gravestone

Doji can signal to traders that the uptrend could be over and that long positions should

probably be exited. But other indicators should be used in conjunction with the Gravestone

Doji pattern to determine an actual sell signal. A potential trigger could be a break of the

upward trendline support.

Evening Star

The Evening Star Pattern is a bearish reversal pattern, usually occuring at the top of an

uptrend. The pattern consists of three candlesticks:

LargeBullish Candle(Day 1)

Small Bullish or Bearish Candle (Day 2)

LargeBearish Candle(Day 3)
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The first part of an Evening Star reversal pattern is a large bullish green candle. On the first

day, bulls are definitely in charge, usually new highs were made.

The second day begins with a bullish gap up. It is clear from the opening of Day 2 that bulls

are in control. However, bulls do not push prices much higher. The candlestick on Day 2 is

quite small and can be bullish, bearish, or neutral (i.e. Doji).

Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal.

But it is Day 3 that is the most significant candlestick.

Day 3 begins with a gap down, (a bearish signal) and bears are able to press prices even

further downward, often eliminating the gains seen on Day 1.

Evening Star Candlestick Chart Example

The chart below of Exxon-Mobil (XOM) stock shows an example a Evening Star bearish

reversal pattern that occured at the end of an uptrend:

Evening Star Pattern
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Daily Chart : - Exxon Mobil ( XOM )

Day 1 of the Evening Star pattern for Exxon-Mobil (XOM) stock above was a strong bullish

candle, in fact it was so strong that the close was the same as the high (very bullish sign).

Day 2 continued Day 1's bullish sentiment by gapping up. However, Day 2 was a Doji, which

is a candlestick signifying indecision. Bulls were unable to continue the large rally of the

previous day; they were only able to close slightly higher than the open.

Day 3 began with a bearish gap down. In fact, bears took hold of Exxon-Mobil stock the

entire day, the open was the same as the high and the close was the same as the low (a

sign of very bearish sentiment). Also, Day 3 powerfully broke below the upward trendline

that had served as support for XOM for the past week. Both the trendline break and the

classic Evening Star pattern gave traders a signal to sell short Exxon-Mobil stock.

The Evening Star pattern is a very powerful three candlestick bearish reversal pattern. The

bullish equivalent of the Evening Star is the Morning Star pattern

Online Trading Concepts

Morning Star
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The Morning Star Pattern is a bearish reversal pattern, usually occuring at the bottom of a

downtrend. The pattern consists of three candlesticks:

LargeBearish Candle(Day 1)

Small Bullish or Bearish Candle (Day 2)

LargeBullish Candle(Day 3)

The first part of a Morning Star reversal pattern is a large bearish red candle. On the first

day, bears are definitely in charge, usually making new lows.

The second day begins with a bearish gap down. It is clear from the opening of Day 2 that

bears are in control. However, bears do not push prices much lower. The candlestick on Day

2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).

Generally speaking, a bullish candle on Day 2 is a stronger sign of an impending reversal.

But it is Day 3 that holds the most significance.

Day 3 begins with a bullishgap up, and bulls are able to press prices even further upward,

often eliminating the losses seen on Day 1.

Morning Star Candlestick Chart Example

The chart below of the S&P 400 Midcap exchange traded fund (MDY) shows an example a

Morning Star bullish reversal pattern that occured at the end of a downtrend:
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Morning Star Pattern

Dialy Chart S&P Midcap 400 Depository Receipts ( MDY )

Day 1 of the Morning Star pattern for the Midcap 400 (MDY) chart above was a strong

bearish red candle. Day 2 continued Day 1's bearish sentiment by gapping down. However,Day 2 was a Doji, which is a candlestick signifying indecision. Bears were unable to continue

the large decreases of the previous day; they were only able to close slightly lower than the

open.

Day 3 began with a bullish gap up. The bulls then took hold of the Midcap 400 exchange

traded fund for the entire day. Also, Day 3 broke above the downward trendline that had

served as resistance for MDY for the past week and a half. Both the trendline break and the

classic Morning Star pattern gave traders a signal to go long and buy the Midcap 400

exchange traded fund.

The Morning Star pattern is a very powerful three candlestick bullish reversal pattern. The

bearish equivalent of the Morning Star is the Evening Star pattern (see:Evening Star).


The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, usually occuring at

the top of an uptrend. The pattern consists of two Candlesticks:
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Smaller Bullish Candle (Day 1)

Larger Bearish Candle (Day 2)

Generally, the bullish candle real body of Day 1 is contained within the real body of the

bearish candle of Day 2.

The market gaps up (bullish sign) on Day 2; but, the bulls do not push very far higher

before bears take over and push prices further down, not only filling in the gap down from

the morning's open but also pushing prices below the previous day's open.

With the Bullish Engulfing Pattern, there is an incredible change of sentiment from the

bullish gap up at the open, to the large bearish real body candle that closed at the lows of

the day. Bears have successfully overtaken bulls for the day and possibly for the next few

periods.

The chart below of Verizon (VZ) stock shows an example two Bearish Engulfing Patterns

occuring at the end of uptrends:


Daily Chart Verizon ( VZ )
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Bearish Engulfing Sell Signal

Three methodologies for selling using the Bearish Engulfing Pattern are listed below in order

of most aggressive to most conservative:

1. Sell at the close of Day 2. An even stronger indication to sell is given when there isa substantial increase in volume that accompanies the large move downward inprice

2. Sell on the day after the Bearish Engulfing Pattern occurs; by waiting until the nextday to sell, a trader is making sure that the bearish reversal pattern is for real andwas not just a one day occurance. In the chart above of Verizon, a trader wouldprobably entered on the day after the Bearish Engulfing Pattern because the selling

continued.3. Usually trader's wait for other signals, such as a price break below the upward

support line , before entering a sell order. However, in the case of Verizon above,the Bearish Engulfing Pattern occured at the same time as the trendline break belowsupport.


The Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occuring at

the bottom of a downtrend. The pattern consists of two Candlesticks:

Smaller Bearish Candle (Day 1)

Larger Bullish Candle (Day 2)
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The bearish candle real body of Day 1 is usually contained within the real body of the bullish

candle of Day 2.

On Day 2, the market gaps down; however, the bears do not get very far before bulls take

over and push prices higher, filling in the gap down from the morning's open and pushing

prices past the previous day's open.

The power of the Bullish Engulfing Pattern comes from the incredible change of sentiment

from a bearish gap down in the morning, to a large bullish real body candle that closes at

the highs of the day. Bears have overstayed their welcome and bulls have taken control of

the market.

The chart below of the S&P 500 Depository Receipts Exchange Traded Fund (SPY) shows an

example of a Bullish Engulfing Pattern occuring at the end of a downtrend:


Daily Chart - S & P depository ETF


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Bullish Engulfing Buy Signal

There are three main times to buy using the Bullish Engulfing Pattern; the buy signals that

are presented below are ordered from the most aggressive to most conservative:

1. Buy at the close of Day 2 when prices rallied upwards from the gap down in themorning. A strong indication that the rally on Day 2 was significant and truly areversal of market sentiment, is if there was a substantial increase in volume thataccompanied the large move upward in price (see: Volume).

2. Buy on the day after the Bullish Engulfing Pattern occurs; by waiting until the nextday to buy, a trader is making sure that the bullish reversal and enthusiasm of theprior day is continuing and was not just a one day occurance like a short coveringrally. In the chart above of the SPY's, a trader would likely not enter the market longon the day after the Bullish Engulfing Pattern because the market gapped down

significantly and even made new lows. A trader using methodology #2, would likelywait for a more concrete buy signals such as the one presented in method #3 next.

3. After a trader sees the Bullish Engulfing Pattern, the trader would wait for anothersignal, mainly a price break above the downward resistance line (see: Support &Resistance), before entering a buy order.

Chart Patterns

Double Bottom - Buy after a breakout of upside resistance, uses support &

resistance concepts.

Head & Shoulders - Sell after prices fall below support created by left shoulder

and head.

Flag - Continuation pattern, buy a breakout above consolidation or sell a

breakout below support.
http://www.onlinetradingconcepts.com/TechnicalAnalysis/Volume.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/SupportResistance.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/SupportResistance.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/DoubleBottom.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/HeadShoulders.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/Flag.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/Volume.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/SupportResistance.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/SupportResistance.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/DoubleBottom.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/HeadShoulders.htmlhttp://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/Flag.html


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Support & Resistance - Buy at support and sell at resistance; if support or

resistance is broken through, buy in direction of move.

Support and ResistanceSupport and Resistance is one of the most important and fundamental part of technical

analysis:

Support: Prices should rise after touching support.

Resistance: Prices should fall after hitting resistance.

An example of price respecting support and resistance lines is given next in the chart of the

Semiconductor HOLDRS (SMH):

Support and ResistanceDaily Chart - semiconductor Holdrs ( SMH )

When support and resistance has been firmly established: Buy Signal - Price touches

support

Buy Signal

Buy when price touches the support line

Sell Signal

Sell when price touches the resistance line.
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Breaking Support & Resistance

Another fundamental concept of support and resistance is listed next and is shown in the

chart below of Alcoa (AA) stock:

If price breaks below support, then that support level becomes the new

resistance level.

If price breaks above support, then that resistance level becomes the new

support level.

Support and Resistance

Daily Chart - Alcoa ( AA )

Support and Resistance are basic yet vitally important technical analysis tools. On every

time frame, intra-day, daily, weekly, and monthly, Support and Resistance levels are

respected by traders. Knowledge of these levels helps keep a trader on the correct side of

the market, thus helping the trader profit.


52/62


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Income Statement(Sep '08) (Mar '08)

Quarterly Annual

Net Sales 746.13 2535.37

Other Income 60.64 463.46

PBDIT 455.26 1707.35

Net Profit 47.87 293.93

Profit & Loss

Half Yearly Results

Quarterly Results

Key Financial Ratios

Balance Sheet

Total Share Capital 344.67

Net Worth 3593.71

Total Debt 21542.90

Net Block 210.25

Investments 9141.99

Net Current Assets 12682.30

Total Assets 28312.36

Balance Sheet

Half Yearly Results

Quarterly Results

Key Financial

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 288.42 420.30 694.02 1,354.10 2,535.36

Other Income 97.46 132.13 237.33 287.83 310.48

Total Income 385.88 552.43 931.35 1,641.93 2,845.84

Expenditure

Interest expended 117.83 194.82 339.09 699.24 1,309.56

Employee Cost 44.14 85.13 171.39 292.98 519.23

Selling and Admin Expenses 65.52 103.78 142.87 286.82 326.66

Depreciation 16.05 23.46 29.60 34.74 50.86

Miscellaneous Expenses 63.61 60.36 130.17 186.79 345.60

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 144.60 240.26 399.02 696.06 999.25

Provisions & Contingencies 44.72 32.47 75.01 105.27 243.10

Total Expenses 307.15 467.55 813.12 1,500.57 2,551.91



Net Profit for the Year 78.73 84.89 118.23 141.37 293.93

Extraordionary Items 0.00 0.00 0.00 0.00 0.00
http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/profitloss/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/halfyearly/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/quarterlyresults/marketprice/KMBhttp://www.moneycontrol.com/stocks/company_info/financial_ratios.php?sc_did=KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/balancesheet/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/balancesheet/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/halfyearly/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/quarterlyresults/marketprice/KMBhttp://www.moneycontrol.com/stocks/company_info/financial_ratios.php?sc_did=KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/profitloss/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/halfyearly/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/quarterlyresults/marketprice/KMBhttp://www.moneycontrol.com/stocks/company_info/financial_ratios.php?sc_did=KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/balancesheet/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/halfyearly/marketprice/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/17/50/quarterlyresults/marketprice/KMBhttp://www.moneycontrol.com/stocks/company_info/financial_ratios.php?sc_did=KMB


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Profit brought forward 157.83 182.04 194.42 503.12 354.18

Total 236.56 266.93 312.65 644.49 648.11

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 14.29 15.42 19.46 22.86 25.87

Corporate Dividend Tax 1.83 2.20 2.73 3.88 4.40

Per share data (annualised)

Earning Per Share (Rs) 13.22 6.88 3.82 4.33 8.53

Equity Dividend (%) 24.00 12.50 6.00 7.00 7.50

Book Value (Rs) 101.85 61.38 27.95 50.95 104.26

Appropriations

Transfer to Statutory Reserves 30.40 50.65 1.10 39.55 74.98

Transfer to Other Reserves 8.00 4.24 3.00 224.02 14.70

Proposed Dividend/Transfer to Govt 16.12 17.62 22.19 26.74 30.27

Balance c/f to Balance Sheet 182.04 194.42 286.36 354.18 528.17

Total 236.56 266.93 312.65 644.49 648.12

Source : Asian CERC

Balance Sheet ------------------- in Rs. Cr. -------------------



Capital and Liabilities:

Total Share Capital 59.53 123.32 309.29 326.16 344.67

Equity Share Capital 59.53 123.32 309.29 326.16 344.67

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 546.78 633.61 555.30 1,335.77 3,249.04

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 606.31 756.93 864.59 1,661.93 3,593.71

Deposits 4,459.34 4,299.54 6,565.92 11,000.09 16,423.65

Borrowings 511.63 985.51 1,609.23 5,099.75 5,119.25

Total Debt 4,970.97 5,285.05 8,175.15 16,099.84 21,542.90

Other Liabilities & Provisions 239.68 470.89 1,135.38 2,153.65 3,175.75

Total Liabilities 5,816.96 6,512.87 10,175.12 19,915.42 28,312.36



Assets

Cash & Balances with RBI 126.85 238.73 418.80 751.22 1,710.29


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Balance with Banks, Money at Call 551.57 181.66 173.71 544.75 439.18

Advances 2,097.02 4,017.14 6,348.54 10,924.07 15,552.22

Investments 2,882.77 1,826.97 2,855.53 6,861.96 9,141.99

Gross Block 134.46 168.57 205.28 273.57 391.42

Accumulated Depreciation 49.20 71.47 100.05 132.48 181.17

Net Block 85.26 97.10 105.23 141.09 210.25

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 73.48 151.26 273.31 692.33 1,258.43

Total Assets 5,816.95 6,512.86 10,175.12 19,915.42 28,312.36

Contingent Liabilities 925.81 3,593.29 3,836.39 4,049.54 7,172.79

Bills for collection 12.68 48.33 298.97 502.31 826.55

Book Value (Rs) 101.85 61.38 27.95 50.95 104.26

Source : Asian CERC

Quarterly Results ------------------- in Rs. Cr. -------------------

Sep '07 Dec '07 Mar '08 Jun '08 Sep '08

Sales Turnover 591.82 682.65 763.67 712.47 746.13

Other Income 122.35 204.54 39.35 83.13 60.64

Total Income 714.16 887.19 803.02 795.59 806.77

Total Expenses 297.48 410.73 348.55 353.71 351.51

Operating Profit 294.34 271.92 415.12 358.76 394.62

Profit On Sale Of Assets -- -- -- -- --

Profit On Sale Of Investments -- -- -- -- --

Gain/Loss On Foreign Exchange -- -- -- -- --

VRS Adjustment -- -- -- -- --

Other Extraordinary Income/Expenses -- -- -- -- --

Total Extraordinary Income/Expenses -- -- -- -- --

Tax On Extraordinary Items -- -- -- -- --

Net Extra Ordinary Income/Expenses -- -- -- -- --

Gross Profit 416.69 476.46 454.47 441.89 455.26

Interest 308.42 335.21 372.89 360.00 380.59

PBDT 108.27 141.25 81.59 81.88 74.68

Depreciation -- -- -- -- --

Depreciation On Revaluation Of Assets -- -- -- -- --

PBT 108.27 141.25 81.59 81.88 74.68

Tax 32.89 39.58 12.38 27.35 26.81


56/62

Net Profit 75.38 101.67 69.21 54.53 47.87

Prior Years Income/Expenses -- -- -- -- --

Depreciation for Previous Years Written Back/Provided

-- -- -- -- --

Dividend -- -- -- -- --

Dividend Tax -- -- -- -- --

Dividend (%) -- -- -- -- --

Earnings Per Share 2.31 2.95 2.01 1.58 1.39

Book Value -- -- -- -- --

Equity 326.95 344.21 344.67 345.05 345.34

Reserves -- -- 3,190.82 -- --

Face Value 10.00 10.00 10.00 10.00 10.00

Source : Asian CERC

Quarterly Results ------------------- in Rs. Cr. -------------------

Sep '07 Dec '07 Mar '08Jun '0

urnover 591.82 682.65 763.67 712.4

come 122.35 204.54 39.35 83.1

ome 714.16 887.19 803.02 795.5

penses 297.48 410.73 348.55 353.7

ng Profit 294.34 271.92 415.12 358.7

n Sale Of Assets -- -- --

n Sale Of Investments -- -- --

Gain/Loss On Foreign Exchange -- -- --

ustment -- -- --

xtraordinary Income/Expenses -- -- --

traordinary Income/Expenses -- -- --

Extraordinary Items -- -- --

a Ordinary Income/Expenses -- -- --

rofit 416.69 476.46 454.47 441.8

308.42 335.21 372.89 360.0

108.27 141.25 81.59 81.8

ation -- -- --

ation On Revaluation Of Assets -- -- --

108.27 141.25 81.59 81.8

32.89 39.58 12.38 27.3

it 75.38 101.67 69.21 54.5

ars Income/Expenses -- -- --


57/62

ation for Previous Years Written Back/ Provided -- -- --

d -- -- --

d Tax -- -- --

d (%) -- -- --

s Per Share 2.31 2.95 2.01 1.5

lue -- -- --

326.95 344.21 344.67 345.0

s -- -- 3,190.82

lue 10.00 10.00 10.00 10.0

: Asian CERC

s DatePrev

Close

Open

PriceHigh Price Low Price Last Price

Close

Price

Average

Price

Total Traded

Quantity

Turnover

in Lacs

EQ03-Sep-

2007706.85 719.50 729.00 707.00 723.55 724.15 720.88 770346 5,553.29

EQ04-Sep-

2007724.15 777.00 777.00 720.10 726.05 730.10 731.69 714624 5,228.81

EQ05-Sep-

2007730.10 705.15 737.00 705.15 715.00 717.70 723.22 355274 2,569.43

EQ06-Sep-

2007717.70 651.65 735.00 651.65 733.00 732.50 728.53 460914 3,357.88

EQ07-Sep-

2007732.50 738.00 739.90 715.60 719.00 717.90 726.70 320417 2,328.46

EQ10-Sep-

2007717.90 703.65 750.00 703.65 748.00 748.00 736.68 725574 5,345.19

EQ11-Sep-

2007748.00 751.00 760.95 736.10 738.15 738.55 748.79 870543 6,518.51

EQ12-Sep-

2007738.55 744.75 756.35 744.00 750.10 748.55 749.56 540374 4,050.45

EQ13-Sep-

2007748.55 754.00 777.00 748.00 773.50 774.05 762.56 1093513 8,338.74

EQ14-Sep-

2007774.05 783.00 792.00 768.00 781.00 772.15 781.63 1022022 7,988.39

EQ17-Sep-

2007772.15 760.00 803.90 760.00 795.00 797.75 787.33 737686 5,807.99


58/62

EQ18-Sep-

2007797.75 773.40 820.50 714.40 816.00 816.25 808.74 1245320 10,071.46

EQ19-Sep-

2007816.25 830.00 849.50 828.90 839.10 837.60 839.95 748204 6,284.56

EQ

20-Sep-

2007 837.60 847.50 865.90 833.35 854.95 853.55 853.24 868688 7,411.97

EQ21-Sep-

2007853.55 835.50 876.70 835.50 870.00 869.05 868.74 659038 5,725.31

EQ24-Sep-

2007869.05 869.05 897.90 868.10 891.00 890.40 883.16 523446 4,622.87

EQ25-Sep-

2007890.40 890.00 899.50 860.35 891.00 888.80 880.02 576483 5,073.16

EQ26-Sep-

2007

888.80 881.00 932.80 870.15 923.00 912.10 909.97 960576 8,740.92

EQ27-Sep-

2007912.10 930.00 938.00 883.05 895.75 893.05 907.58 1019684 9,254.43

EQ28-Sep-

2007893.05 895.00 927.00 895.00 926.00 922.20 915.90 558461 5,114.93

EQ 01-Oct-2007 922.20 925.00 950.00 915.15 944.15 945.25 937.02 764631 7,164.77

EQ 03-Oct-2007 945.25 948.00 998.00 915.15 996.75 988.35 970.82 1257017 12,203.39

EQ 04-Oct-2007 988.35 992.00 1,012.70 980.00 997.00 1,001.30 997.06 665826 6,638.69

EQ 05-Oct-2007 1,001.30 961.20 1,009.80 947.50 953.00 957.60 974.98 573152 5,588.14

EQ 08-Oct-2007 957.60 967.00 988.90 884.00 915.00 911.80 916.50 882673 8,089.71

EQ 09-Oct-2007 911.80 915.15 976.00 892.70 972.05 972.30 951.77 752123 7,158.51

EQ 10-Oct-2007 972.30 980.00 991.00 954.00 976.05 978.95 976.32 538257 5,255.12

EQ 11-Oct-2007 978.95 976.00 999.90 962.65 987.00 985.85 984.69 292647 2,881.68

EQ 12-Oct-2007 985.85 971.45 988.20 956.00 968.00 965.10 975.66 300604 2,932.88

EQ 15-Oct-2007 965.10 984.10 1,009.00 971.00 998.00 996.20 988.32 479846 4,742.41

EQ 16-Oct-2007 996.20 998.00 1,034.00 971.55 993.50 999.35 1,002.83 647386 6,492.20


59/62

EQ 17-Oct-2007 999.35 940.00 959.75 808.00 926.70 933.75 930.55 750463 6,983.42

EQ 18-Oct-2007 933.75 939.75 982.00 895.00 900.00 909.15 946.85 698080 6,609.75

EQ 19-Oct-2007 909.15 900.00 910.00 801.00 832.15 830.80 847.06 828917 7,021.40

EQ 22-Oct-2007 830.80 831.10 858.95 810.00 839.00 838.95 836.76 786399 6,580.30

EQ 23-Oct-2007 838.95 900.00 959.95 845.00 950.50 951.30 925.05 1065376 9,855.27

EQ 24-Oct-2007 951.30 970.00 987.70 948.00 958.20 959.05 967.66 734376 7,106.23

EQ 25-Oct-2007 959.05 969.00 1,005.00 951.00 974.00 972.95 980.09 1484402 14,548.50

EQ 26-Oct-2007 972.95 996.00 1,052.90 982.10 1,028.00 1,027.05 1,022.91 1280074 13,094.01

EQ 29-Oct-2007 1,027.05 1,050.00 1,067.90 1,028.00 1,039.00 1,042.20 1,047.17 575662 6,028.14

EQ 30-Oct-2007 1,042.20 1,036.00 1,058.00 1,002.00 1,012.45 1,013.20 1,029.10 738869 7,603.69

EQ 31-Oct-2007 1,013.20 1,017.00 1,037.00 991.00 1,000.05 1,000.85 1,015.27 536346 5,445.35

EQ01-Nov-

20071,000.85 1,016.00 1,043.00 991.00 999.00 999.35 1,010.82 538268 5,440.95

EQ02-Nov-

2007999.35 975.00 1,017.00 960.00 1,011.00 1,011.80 995.46 289660 2,883.44

EQ05-Nov-

20071,011.80 1,007.80 1,035.00 975.00 986.00 981.90 999.90 679604 6,795.35

EQ06-Nov-

2007981.90 1,000.00 1,008.70 943.00 960.10 954.05 974.46 474671 4,625.46

EQ07-Nov-

2007954.05 964.70 977.00 925.00 934.80 934.40 945.13 455725 4,307.18

EQ08-Nov-

2007934.40 945.00 989.00 895.00 964.65 966.35 956.37 548043 5,241.31

EQ09-Nov-

2007

966.35 979.00 980.00 935.00 941.00 944.20 950.71 54232 515.59

EQ12-Nov-

2007944.20 937.60 948.75 910.20 929.00 934.10 932.55 484890 4,521.84

EQ13-Nov-

2007934.10 940.00 990.00 930.10 983.00 978.35 968.87 497629 4,821.40


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EQ14-Nov-

2007978.35 997.00 1,021.00 986.05 1,007.30 1,009.25 1,005.32 454802 4,572.21

EQ15-Nov-

20071,009.25 1,005.00 1,099.00 1,002.10 1,060.00 1,061.50 1,049.31 803554 8,431.80

EQ

16-Nov-

2007 1,061.50 1,090.00 1,114.00 1,001.60 1,096.00 1,091.85 1,094.23 844561 9,241.45

EQ19-Nov-

20071,091.85 1,109.90 1,141.90 1,103.00 1,115.00 1,112.65 1,121.06 958197 10,741.92

EQ20-Nov-

20071,112.65 1,115.00 1,168.00 1,101.00 1,152.00 1,140.00 1,143.26 773255 8,840.31

EQ21-Nov-

20071,140.00 1,150.00 1,170.00 1,071.00 1,103.00 1,087.25 1,110.29 600987 6,672.71

EQ22-Nov-

2007

1,087.25 1,085.00 1,140.00 1,020.05 1,137.00 1,118.10 1,077.54 783290 8,440.23

EQ23-Nov-

20071,118.10 1,082.70 1,160.00 1,082.70 1,130.00 1,125.05 1,128.22 669808 7,556.91

EQ26-Nov-

20071,125.05 1,150.00 1,174.00 1,129.10 1,133.05 1,142.65 1,141.81 417174 4,763.34

EQ27-Nov-

20071,142.65 1,130.00 1,149.80 1,112.00 1,125.60 1,124.65 1,123.55 359329 4,037.23

EQ28-Nov-

20071,124.65 1,085.15 1,167.00 1,085.15 1,105.00 1,109.40 1,139.34 556308 6,338.22

EQ29-Nov-

20071,109.40 1,209.80 1,209.80 1,117.80 1,121.00 1,123.50 1,129.38 617392 6,972.70

EQ30-Nov-

20071,123.50 1,140.00 1,248.00 1,126.00 1,243.05 1,233.50 1,207.32 1188042 14,343.51

EQ03-Dec-

20071,233.50 1,248.00 1,274.00 1,206.25 1,256.00 1,249.05 1,254.15 587481 7,367.91

EQ04-Dec-

20071,249.05 1,254.00 1,277.00 1,211.25 1,268.80 1,269.05 1,262.53 525021 6,628.56

EQ05-Dec-

20071,269.05 1,275.00 1,311.00 1,272.05 1,307.90 1,305.05 1,291.68 486078 6,278.56

EQ06-Dec-

20071,305.05 1,310.00 1,330.00 1,295.20 1,308.00 1,305.95 1,308.33 372437 4,872.70


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EQ07-Dec-

20071,305.95 1,310.00 1,315.00 1,254.00 1,286.00 1,294.35 1,274.05 646004 8,230.43

EQ10-Dec-

20071,294.35 1,335.80 1,335.80 1,241.00 1,313.00 1,309.80 1,296.81 1077122 13,968.21

EQ

11-Dec-

2007 1,309.80 1,399.00 1,399.00 1,308.05 1,317.00 1,318.10 1,320.12 387717 5,118.33

EQ12-Dec-

20071,318.10 1,300.00 1,324.80 1,297.00 1,310.00 1,311.70 1,310.99 666394 8,736.33

EQ13-Dec-

20071,311.70 1,315.00 1,325.85 1,282.00 1,300.00 1,300.50 1,310.52 422126 5,532.04

EQ14-Dec-

20071,300.50 1,251.65 1,308.70 1,251.65 1,262.00 1,263.55 1,283.47 450580 5,783.06

EQ17-Dec-

2007

1,263.55 1,301.80 1,301.80 1,140.25 1,185.00 1,162.00 1,201.06 645434 7,752.06

EQ18-Dec-

20071,162.00 1,155.35 1,245.00 1,112.00 1,151.10 1,144.00 1,145.22 598607 6,855.39

EQ19-Dec-

20071,144.00 1,189.00 1,189.85 1,090.00 1,140.00 1,123.80 1,140.29 844984 9,635.28

EQ20-Dec-

20071,123.80 1,150.00 1,178.00 1,124.10 1,165.00 1,164.35 1,161.21 757623 8,797.57

EQ24-Dec-

20071,164.35 1,170.00 1,204.00 1,161.90 1,197.00 1,195.85 1,177.37 578304 6,808.80

EQ26-Dec-

20071,195.85 1,200.00 1,260.00 1,199.00 1,256.00 1,255.35 1,235.54 322031 3,978.83

EQ27-Dec-

20071,255.35 1,260.00 1,295.95 1,231.15 1,242.00 1,239.85 1,248.25 552503 6,896.60

EQ28-Dec-

20071,239.85 1,250.00 1,301.00 1,220.95 1,284.00 1,291.30 1,270.91 478346 6,079.36

EQ31-Dec-

20071,291.30 1,339.80 1,339.80 1,261.00 1,300.00 1,296.60 1,291.35 322451 4,163.96

EQ 01-Jan-2008 1,296.60 1,350.00 1,350.00 1,275.00 1,285.00 1,290.90 1,292.58 210980 2,727.08

EQ 02-Jan-2008 1,290.90 1,315.00 1,405.00 1,286.10 1,384.00 1,396.75 1,359.32 764443 10,391.19

EQ 03-Jan-2008 1,396.75 1,409.00 1,409.00 1,338.00 1,356.95 1,347.25 1,363.99 549662 7,497.31


62/62

EQ 04-Jan-2008 1,347.25 1,355.00 1,398.00 1,355.00 1,372.00 1,378.50 1,376.12 413789 5,694.22

EQ 07-Jan-2008 1,378.50 1,350.00 1,438.00 1,323.10 1,391.00 1,387.40 1,393.41 605739 8,440.43

EQ 08-Jan-2008 1,387.40 1,403.50 1,404.90 1,291.40 1,330.15 1,328.15 1,346.48 524820 7,066.59

EQ 09-Jan-2008 1,328.15 1,276.20 1,341.50 1,276.20 1,297.00 1,297.30 1,312.39 672411 8,824.64

EQ 10-Jan-2008 1,297.30 1,304.90 1,338.70 1,245.00 1,247.55 1,252.55 1,301.58 757188 9,855.42

EQ 11-Jan-2008 1,252.55 1,232.00 1,265.00 1,196.05 1,232.20 1,233.65 1,227.16 1192499 14,633.86

EQ 14-Jan-2008 1,233.65 1,233.65 1,286.00 1,215.00 1,277.55 1,280.30 1,265.78 910659 11,526.90

EQ 15-Jan-2008 1,280.30 1,240.15 1,318.00 1,240.15 1,262.95 1,265.20 1,290.40 597359 7,708.34

EQ 16-Jan-2008 1,265.20 1,258.00 1,258.00 1,186.00 1,251.90 1,243.40 1,228.19 779515 9,573.90

EQ 17-Jan-2008 1,243.40 1,257.95 1,288.45 1,220.05 1,265.90 1,262.50 1,251.65 674959 8,448.11

EQ 18-Jan-2008 1,262.50 1,205.65 1,260.00 1,100.00 1,134.00 1,126.60 1,181.73 1001748 11,837.97

EQ 21-Jan-2008 1,126.60 1,120.00 1,139.90 860.00 985.00 963.70 1,022.00 1602273 16,375.24

EQ 22-Jan-2008 963.70 930.00 1,049.70 800.00 999.00 1,011.30 894.59 2302467 20,597.67

EQ 23-Jan-2008 1,011.30 1,208.80 1,208.80 1,022.00 1,109.80 1,103.70 1,066.04 3292822 35,102.69

Project WIP

Documents

Transcript of Project WIP