Technical Analysis of Indian Stock Market

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    A COMPREHENSIVE STUDY ONFINANCIAL ANALYSIS

    Presented By:

    Abhishek Sharma

    MBA 4th Sem.

    International School of Informatics and

    Management

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    Understanding the financial Analysis of HDFC bank.

    To determine the performance of HDFC over the pastyears.

    To understand the software used for financial analysis inthe bank.

    To guide the company in right direction by the results ofthe analysis.

    To inform the various investors of HDFC about the variousinvestment avenues of the bank.

    Objectives of the Study

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    HDFC Bank Ltd. was incorporated as a Public LimitedCompany in August, 1944.

    With its registered office in Mumbai, India, HDFC Bank commencedoperations as scheduled commercial bank in January 1995.

    Since its inception in 1997, the corporation has maintained a consistentand healthy growth in its operations to remain a market leader inmortgage.

    Times bank limited (another new private sector bank promoted byBennett, Coleman & Co. times group) was merged with HDFC bank ltd.,

    effective February 26, 2000. The bank at present has an enviable network of 535branches spread

    over 312 cities across the country.

    About HDFC Bank Ltd.

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    The first stock exchange was setup in Bombay in1875.

    Since then over 23 stock exchanges have been

    listed including NSE. In Both BSE and NSE, about 2000 companies are

    listed with total market capitalization ofRs.5466750 Crore.

    For the smooth running of the stock market,SEBI was established in 1988 and enacted in1992.

    A Brief about the Indian Stock

    Market

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    Fundamental Analysis: It involves researchingand evaluating the characteristic of a company

    including financial statement.

    Technical analysis: It is method of predictingprice movements and market trends by studyingthe charts of historical data.

    Methods of Analyzing the Stock

    Market

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    Price: It measure profit, loss, sell and buy ofshares in technical analysis only by price.

    Volume: Volume includes accumulation and

    distribution, market breadth, open interest, andtrade count.

    Time: It Includes cycles, seasonality, andrelationships between patterns and trends from

    a duration point of view. Sentiments: It is a subjective area of technical

    analysis.

    The Pillars of The Technical

    Analysis

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    SUPPORT: Indicates a specific price level at which acurrency will have inability to cross below.

    RESISTANCE: It indicates a specific price level at

    which a currency will have inability to cross above. TRENDS: It is simply, the overall direction prices

    moving up, down or flat.

    CHANNELS: When prices trend between two paralleltrend lines. they form a Channel. When hit low itsindicate buy and at high it indicate sales.

    Required background for

    technical analysis

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    Support Level of Nifty

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    Resistance Level of Nifty

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    Trend Level of Nifty

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    Channel Level of Nifty

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    Moving Average: A moving average perform amathematical function in which selected period isaveraged and moves as new data included and olddata is removed.1. Simple moving average2. Moving average weight3. Moving average exponential

    Bollinger Band: These are charted by calculating asimple moving average of price, then creating twobands, a specified no. of standard deviations above andbelow the moving average. It is used to identify OverBought and Over sold markets.

    Indicators of Technical Analysis

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    The type of research done is exploratory and isdone on secondary data.

    The data has been taken from NSE and prowesssoftware.

    The sampling method used is cluster sampling.

    The sample size is of 210 companies( 21 sectorsand 10 companies from each).

    The scope of the study is confined to NSE.

    Research Methodology

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    Simple Moving Average Chart

    of Maruti Suzuki Ltd.

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    Bollinger Band Chart of Maruti

    Suzuki Ltd.

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    Simple Moving Average Chart

    ICICI Bank Ltd.

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    Bollinger Band Chart of ICICI

    Bank Ltd.

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    IT sector looks very good and attractive. Consumer durable sector is in buy and hold category. FMCG, Media, metal, textile and transport sectors are

    looking good and should be at hold. Power, Oil and Gas are at high so these should be avoided.

    Telecom sector should be avoided but shares like BhartiAirtel can be bought. Banking, Automobile and Real Estate are in wait and watch

    category. Moving average chart helps in identifying the trends in

    security.

    Bollinger band helps in studying the volatility of thesecurity.

    Facts and Findings

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    The historical relationships between certain priceaverages and market indicators can be used topredict the future trends.

    Despite the past data, no exact future predictioncan be done because stock market depends onhuman Psychology.

    Also for working in the stock market for shortterm, these technical indicators are very helpful.

    Conclusion

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    www.nseindia.com

    www.bseindia.com

    www.metastock.com

    www.moneycontrol.com www.hdfcsec.com

    Bibliography

    http://www.nseindia.com/http://www.bseindia.com/http://www.metastock.com/http://www.monecontrol.com/http://www.hdfcsec.com/http://www.hdfcsec.com/http://www.monecontrol.com/http://www.metastock.com/http://www.bseindia.com/http://www.nseindia.com/
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