INTERNSHIP REPORT ON

“A STUDY ON TECHNICAL ANALYSIS ON SELECTED AUTOMOBILE

COMPANIES AT FEDERAL CAPITAL MARKETS LTD”

BY

GOVINDARAJU K
USN: 1NH14MBA35

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY

In partial fulfilment of the requirements for the award of degree

of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

Internal guide: External guide:

Mr SAINATH Mr Joseph Sebastian

Professor, Department of MBA Regional manager

NEW HORIZON COLLEGE OF ENGINEERING

MARATHALLI, BANGALORE -560103
BATCH: 2014-16
 ACKNOWLEDGEMENT

I am indebted to a number of people who made the successful completion of

our project possible with their constant guidance and acknowledgement. We wish to
express our sincere and heartfelt gratitude to the numerous personalities who lent their
support to make this project a successful one.

I would like to thank the management of New horizon college of engineering,

which provided me with all the facilities required for the project.

I thank Mr.Manjunatha, Principal, New horizon college of engineering ,

Bangalore and Ms.Sheelan Mishra, Head of the Department, Department of MBA,
New horizon college of engineering, Bangalore, for their constant support throughout
the coursework.

I am extremely grateful to my internal guide Prof. Sainath , Professor,

Department of MBA, , New horizon college of engineering, for her inspiration, advice
and guidance, by giving timely suggestions throughout the tenure of my project.

I would like to take this opportunity to thank the management of Federal

Capital Markets Ltd., Bangalore, who provided me with the opportunity to take up
my project work in their organization.

I am also thankful to all my lecturers who helped and guided me in the

successful completion of the project. I would also like to thank my parents, relatives
and all my friends for their constant encouragement.

GOVINDARAJU K
(1NH14MBA35)
 TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE
NO.

1. INTRODUCTION ABOUT THE INTERNSHIP 1-6

1.1 INTRODUCTION ABOUT THE INTERNSHIP
1.2 OBJECTIVE OF THE INTERNSHIP
1.3 TOPIC CHOSEN FOR STUDY
1.4 STATEMENT OF THE PROBLEM
1.5 LITERATURE REVIEW
1.6 OBJECTIVES OF THE STUDY
1.7 SCOPE OF THE STUDY
1.8 METHODOLOGY
1.9 DATE COLLECTION
1.10 LIMITATIONS OF THE STUDY

2. INDUSTRY AND COMPANY PROFILE 7-21

2.1 INDUSTRY PROFILE
2.2 COMPANY PROFILE
2.3 VISION , PURPOSE
2.4 PRODUCTS AND SERVICES
2.5 MARKETING TEAM
2.6 COMPETITORS
2.7 SWOT ANALYSIS
2.8 FUTURE GROWTH AND PROSPECTS
2.9 FINANCIAL STATEMENT
3. THEORETICAL BACKGROUND OF THE STUDY 22-26
3.1 INTRODUCTION
3.2 THEORETICAL FRAMEWORK
4. DATA ANALYSIS AND INTERPRETATION 27-73
5. SUMMARY OF FINDINGS, SUGGESTIONS & 74-78
CONCLUSIONS
BIBLIOGRAPHY 79
 LIST OF TABLES
TABLE NO PARTICULAR PAGE NO
CALCULATION OF SIMPLE MOVING AVERAGE OF
4.1 27-29
HERO MOTORS

CALCULATION OF SIMPLE MOVING AVERAGE OF TVS

4.2 31-32
MOTORS

CALCULATION SIMPLE MOVING AVERAGE OF

4.3 34-35
MARUTI SUZUKI

CALCULATION SIMPLE MOVING AVERAGE OF

4.4 37-38
MAHINDRA AND MAHINDRA

CALCULATION SIMPLE MOVING AVERAGE OF

4.5 40-41
ASHOK LEYLAND

CALCULATION OF RELATIVE STRENGTH INDEX OF

4.6 43-44
HERO MOTORS

CALCULATION OF RELATIVE STRENGTH INDEX OF

4.7 46-47
TVS MOTORS

CALCULATION OF RELATIVE STRENGTH INDEX OF

4.8 49-50
TVS MOTORS

CALCULATION OF RELATIVE STRENGTH INDEX OF

4.9 52-53
MAHINDRA AND MAHINDRA

CALCULATION OF RELATIVE STRENGTH INDEX OF

4.10 55-56
ASHOK LEYLAND

CALCULATION OF RATE OF CHANGE OF HERO

4.11 59-60
MOTORS

CALCULATION OF RATE OF CHANGE OF TVS

4.12 62-63
MOTORS

CALCULATION OF RATE OF CHANGE OF MARUTI

4.13 65-66
SUZUKI FOR SIX MONTHS PERIOD

CALCULATION OF RATE OF CHANGE OF MAHINDRA

4.14 68-69
AND MAHINDRA FOR SIX MONTHS PERIOD

CALCULATION OF RATE OF CHANGE OF ASHOK

4.15 71-72
LEYLAND FOR SIX MONTHS PERIOD
 LIST OF GRAPHS

GRAPH NO PARTICULAR PAGE NO

4.1 SHOWING SIMPLE MOVING AVERAGE 5 YEARS 30

OF HERO MOTOCORP

4.2 SHOWING SIMPLE MOVING AVERAGE 5 YEARS 33

OF TVS MOTORS

4.3 SHOWING SIMPLE MOVING AVERAGE 5 YEARS 36

OF MARUTI SUZUKI

4.4 SHOWING SIMPLE MOVING AVERAGE 5 YEARS 39

OF MAHINDRA AND MAHINDRA

4.5 SHOWING SIMPLE MOVING AVERAGE 5 YEARS 42

OF ASHOK LEYLAND

4.6 SHOWING OF RELATIVE STRENGTH INDEX OF 45

HERO MOTORS

4.7 SHOWING OF RELATIVE STRENGTH INDEX OF 48

TVS MOTORS

4.8 SHOWING OF RELATIVE STRENGTH INDEX OF 51

MARUTI SUZUKI MOTORS

4.9 SHOWING OF RELATIVE STRENGTH INDEX OF 54

MAHINDRA AND MAHINDRA

4.10 SHOWING OF RELATIVE STRENGTH INDEX OF 57

ASHOK LEYLAND

4.11 SHOWING OF RELATIVE STRENGTH INDEX OF 58

FIVE YEARS
4.12 RATE OF CHANGE OF HERO MOTORS 61

4.13 RATE OF CHANGE OF TVS MOTORS 64

4.14 CALCULATION OF RATE OF CHANGE OF 67

MARUTI SUZUKI FOR SIX MONTHS PERIOD

4.15 CALCULATION OF RATE OF CHANGE OF 70

MAHINDRA AND MAHINDRA FOR SIX MONTHS
PERIOD

4.16 CALCULATION OF RATE OF CHANGE OF ASHOK 73

LEYLAND FOR SIX MONTHS PERIOD
 EXECUTIVE SUMMARY

The price of securities in the stock market keep on fluctuating daily on the basics of
continuous buying and selling. The stock price never move stable, it will be either bullish or
bearish trend. An investor will buy the security when its price is low and sell them when its
prices are high in order to gain profit on his investment.

Technical analysis is a technique of estimating securities by analyzing the statistics produced

by movement in the market, such as past prices and volume. Technical analysts do not
attempt to measure a securities intrinsic value, by using use charts and other tools to identify
patterns that can suggest future price movements. Any layman knows that history reoccur
itself over time and analyst attempts to predict the future price movements. The technical
analysis is done with the help of tools like Simple Moving Average, Relative Strength Index
and Rate of change. Although the past share price are major data used by technical analysts,
other statistics such as volume of trading and stock market indices are also utilized to some
extent.

Technical analyst studies supply and demand in a market in an attempt to determine what
direction or the movement will be continue in the future. In other words technical analysis
helps to understand the reactions of the market itself, as opposed to its components.
 CHAPTER 1
INTRODUCTION ABOUT INTERNSHIP

1.1 INTRODUCTION
Internship is an integral part of academic curriculum of VTU MBA. Is an
initiative to bridge the gap between knowledge and its application through a series of
interventions that will enable students to gain insight and exposure to industry.

An internship is a learning situation where the student has the opportunity to gain practical
experience. When placed in this situation, students expand their concepts of different
organizational structures and different working relationships within the work place. In order
to obtain academic credit for this experience, the intern is required to complete an Internship
report as described below.

The intern is expected to provide information on the organisation in which he or she worked,
descriptions of specific work completed, and specific relevant to the assigned tasks. The
report also provides information on our communication skills and should indicate critical
thinking skills. Since a major part of our experience should be related to analysis and
interpretation of provided data that should be demonstrated in our report.

1.2 OBJECTIVE OF THE INTERNSHIP

 To give you the opportunity for college students to utilize theoretical thoughts in real-life
circumstances at work place
 To explain students towards degree of corporate traditions and also get familiar these
individuals with corporate code of behavior.
 To sharpen domain knowledge and provide cross functional skill.

I carried out my internship (project report) at Federal capital markets Ltd, Bangalore for a
period of 8 weeks, from 14th of Dec 2015 to 17th of Feb 2016. During this period, I got
practical exposure to the Indian stock markets. I learnt how to buy and sell stocks online , for
every trading , the operation head of the company Mr. Thomas A enlightened me about

1
behavior of various stocks across the industry and also gave insight in to “Technical analysis
On Automobile industry” .The staff were very friendly and they were clarifying my doubts
then and there itself and they were also inviting me to play outdoor games after market hours.

During the internship training officers Mr. Rahul helped me to understand the fundamentals
of technical analysis of automobile industry and its workings. In a particular, it helped me in
gaining an insight into the functional of automobile industry.

1.3 TOPIC CHOSEN FOR STUDY

“A STUDY OF TECHNICAL ANALYSIS OF SELECTED
AUTOMOBILE COMPANIES”

1.4 STATEMENT OF THE PROBLEM

Stock market is highly volatile in nature it‘s a great challenge for investors to predict
the price and equity. Risk and return directly linked with price movements of equity of
respective automobile companies like Hero Motocrop, TVS motors, Maruti Suzuki and
Ashok Leyland.
“A STUDY OF TECHNICAL ANALYSIS OF AUTOMOBILE INDUSTRY” at
FEDERAL CAPITAL MARKETS LTD”.

1.5 LITERATURE REVIEW

THE PIONEERS OF TECHNICAL ANALYSIS
CHARLES DOW
Charles Dow, great personality of finance originated the journal named ‗Wall Street
Journal‘. It became a benchmark for all financial papers‘ measurement and thereby created
the ―Dow Jones Industrial Index‖. It torches the way for technical analysis. He documented
the ups & downs of his every day, monthly & weekly by uniting the designs. After that he
may compose the reports viewing outside how particular designs verified & forecast earlier
market trends. Thus this short article might have just have acted as a point of view validation
of unfastened principles when it weren‘t for the William Hamilton.

2
The Dow Model was a gathering of market trend related to oceanic metaphors. The
fundamental long-term trend of 4 or even more year was the trend of the marketplace i .e
.increasing or even dropping therefore it may be known by understanding the temporary
waves that lasts between per week as well as a month.

Hamilton utilized these types of calculates along with a couple of guidelines –such since
railroad regular along with the commercial average verifying each one other‘s path.

Robert Rhea started to take Dow Principle and also he needed switched it into a practical
indicator for long-term and also temporary on the market. And then he have written a story
book on Dow Principle. ‗The Dow Theory‘. Therefore it had been profitable at utilizing the
philosophy .Later he didn‘t have to deal on his information, he just required to create it down.
As with Hamilton, even so, his life as a market prognosticator was brief and also he passed
away in the year 1929.

The almost all correct forecaster with greatest document, he as well created his cash from
creating newsletters instead of on trading or even selling subscriptions. Therefore he
managed to understand all of the bull & have market by producing the correct forecasts .He
utilized graphs ,market human behaviour& guidelines & he is used as effective in his deal
.later he was shown to be the correct on producing the forecasts in the year of 1949 .

John Magee have written a book on technical analysis ,‖Technical Analysis of Stock
Trends‖( 1948 ) he was the one that needed exchanged initial on the stock selling prices & it
is models on traditional graphs .he charted every thingi .e . Averages, individual stocks
investing levels etc. Afterwards he recognizes the designs along with the particular designs
such as triangle,flags,& shoulders etc. From his 40s to his at the age of 86, he was the among
the most self-disciplined technical analyst.

There would be a conflict with a listing i .e. Jesse Livermore, R .N Elliott &Gann. Hence
Livermore had completed on the parts of theorizing and then he passed away , Elliott came
out with by himself hypothesis , but these concepts were hard to check also to deal and
Gann‘s traces were helpful in theory but was so unstable to errors and it cannot be practically
applied .

3
Thus Dow,Hamilton,Rhea, Gould & Magee are taken into account as a primary path of
technical analysis, every holding the concept &practices. All the time as a trader –
fundamental or else technical analysis –talks regarding understanding the lower and higher
entrance & way out things, they might be spending homepage to all of these men as well as
methods for which they laid the basis.

1.6OBJECTIVE OF THE STUDY

 To find the degree of volatility in stocks of Hero motors, Tvsmotors, Maruti Suzuki,
Mahindra and Mahindra, Ashok Leyland
 To study the historical price behavior of stocks.
 To identify the securities to make investment.
 To give the valuable suggestion to investors

1.7 SCOPE OF THE STUDY

Technical analysis involving market information provides prolonged be a good
persistent activity in equally safety along with prospect market. Technical analyst consider
that cost and quantity data offer indicator of potential price actions , and also This coming
from exploratory most of these facts , particulars may be extracted on the fundamental
forceful income . no matter whether markets usually are capable at the logic how the present
cost impound almost the entire specifics after that these types of movement is actually
obviously worthless . But if the procedure by which costs correct to information is not instant
, than the marketplace statistic might impound data this is not yet integrated directly into the
present market rate . Technical analysis is extremely helpful because This offers instruments
The idea supply traders to recognize your signals It new data will be staying listed into a
share before information is launched. Stock that exchange abnormally often will thus since
the regarding critical new data, together positive and also negative. Applying this method
technical analysis will help to revels basic modifications in the organization before the wider
market aware about it. Whatever a longer listing of journals documenting that market
fluctuations is randomly at least extremely difficult to expect lots of hard work have been
made by foreseeing long term share rate. During this project report the market information is
compare to know the long term stock price actions. The graphs we are going to maintain
change into improving useful to the dealers like the graphs previous record increases

4
1.8 METHODOLOGY
The technical analysis is done based on the past data. Here we have selected major
companies in the automobile industry. During the study the historical share price of selected
companies for certain period is collected, based on this we have applied the different tools of
technical analysis to study the behavior of the share prices and its future trends. As the study
is predominantly based on the historical information, the historical data research is ideal for
the study on technical analysis.

Type of Research
For the study Descriptive Research is applied.

Descriptive Research
Descriptive Research is use towards explain personality of a population or experience being
studied. It does no reply question all about how/when/why your current personality
occurred. Relatively it addresses the ―what‖question (What are generally your functions
of your population or even position being considered).

1.9 DATE COLLECTION

1. Primary data can be collected through direct interaction with the clientsand
employee of Federal capital Ltd.
2. The Secondary information is gathered from the annual information of the
organisation, significant Text books information and company‘s representative websites. The
information gathered for research. Index rates were gathered throughout BSE website.

SAMPLING SIZE
In the automobile sector 5 companies have been selected. 2 two- wheelers (Hero
motocross market share is 42.85% and TVS motors 18.5%) companies have been elected
based on the market share, 2 four - wheeler companies have been elected based on market
share and 1 heavy vehicle company has been selected based on worst performance.

5
DATA ANALYSIS TOOLS
 Moving average analysis.

 Relative Strength index

 Rate of change

1.10 LIMITATIONSOFTHESTUDY
 The study is limited only to those 1 sector and 5 companies for the period of past five
years.

 Here, an attempt is made to forecast the future Movements stock. The accuracy of the
analysis is not been studied.

 Here, used only 3 Technical tools to predict the movement of scripts

6
 CHAPTER-2
INDUSTRY PROFILE AND COMPANY PROFILE

2.1 INDUSTRY PROFILE

INTRODUCTION TO STOCK MARKET

The Indian stock exchange is one among the old stock exchanges in Asia. Its history
dated back from the 18th century. It‘s about 200 years old when the East Indian Company
started to transact the loan securities. In the 1980s the cooperates stock, banks in shares and
cotton Presses took place in Bombay. During the year 1940 to 1950 the where only hardly 5
to 6 brokers even though the trading was broad.
Gradually the number of brokers started to increased and they formed a informal group and
started to trade under a banyan tree opposite to the town hall during the mid of 1950s. In
1960s the number of brokers has improved to 60. When the American civil war broke out the
share mania stated to begin as the cotton provide from U S to Europe was stopped. Later the
brokers enlarged to 250. The informal stock brokers have organized themselves as ―The
Native Stoke Brokers Association‖. Which have formally turned into the BSE in 1875.
The BSE was first recognized by the govt of India in the year 1956, under the Securities
Contract (Regulation) Act.
The major functions of the stock exchange are is to mobilize the fund for investing
immediately from traders, offering liquidity and monitoring the stock market.
The 2 leading stock markets of India are: -
 The national stock exchange (NSE).
 The Bombay stock exchange (BSE).

THE NATIONAL STOCK EXCHANGE (NSE)

The National stock market is the leading stock exchange in the country. Which cover
364 urban centers and also cities across the nation. The NSE has stock trading
system standard to the Worldwide Benchmarks. Then NSE was incorporated in the year 1992
by IDBI, IFCI , and All Insurance Cooperation and selected commercial banks . The NSE
was set up with fully automaticmonitor dependent stock trading system with wide
achieve .The Trade possesses introduced unequaled transparencyspeed& proficiency, securiy

7
also stockmarket stability.
The objectives of establishing of national stock market are : -
 Establishing a nationwide trading facility for equity, debt instruments and hybrid.
 Appropriate communication network for making sure similar use of almost
all traders throughout the nation.
 With the electronic trading system provide the investors with fair, efficient and
transparent security market.
 Meeting the international standards of security market.

NSE Nifty:
CNX Nifty comprise of well diversified 50 stock index from all the twenty two
market sectors of the economic system. This directory can be used for many purposes such as
for keeping standards or bench marking finance work portfolio, directory dependent
derivatives and also directory money. The National Stock Exchange is obtained & maintained
by Indian Directory Service & Product Ltd. ( IISL ) .

BOMBAY STOCK EXCHANGE

The Bombay Stock Market is amongst the an older stock market in the whole Asian
countries. It absolutely was started in 1875 by a grouping of people called ―Native Share &
Stock market Association‖. It will be the very first stock trading to obtain the legal
certification from the Govt of India in 1956. The Bombay Stock Market has played a vital
task in progression of the Indian money market. It is actually established world widely & the
directory is represented by SENSEX.

SENSEX: -
In 1986 the Bombay Stock Market arrived with directory which has become the
barometer for the Indian stock exchange .SENSEX is not just systematically developed and
which is globally accepted review methodology. The SENSEX consist of 30 stocks of well-
established and financially sound companies. The companies are well established and most
actively traded stock which is representing all industrial sectors in the Indian economy. The
index will represent the current market condition. BSE widely accepted by the Indian
investors so, it is the known as the pulse beat of the stock market of India. The boom and
burst of the Indian stock exchange through this indices.

8
THE ROLE OF STOCK EXCHANGE IN AN ECONOMY

 Raising capital for business:

The stock exchange will help the companies to raise the capital for their expansion
through issue of share for investing public.

 Allocation of savings:
The stock exchange will allocate the funds from those who have excess saving to the
people who want the funds. Either keeping it ideal in the bank deposits they can be used
for productive uses and for the economic growth of the country.

 Cooperate governance :
The stock exchange is the governing authority of the market. It lays down the frame work
according to which all the firms should perform or trade their securities.
 Creating investment opportunities:
Irrespective of the inventors large or small they can invest in the stock market. There is
no more number of shares (or) less number of shares to be traded. An investor can buy
only that number of share that can be affordable by them.

 Capital rising for government projects:

The government will have to borrow money from the public for various projects. The
government will issue short term bonds to the citizen for finance development.

 Economic barometer:
The share price falls and rise due to various market factors. This movement of the shares
are measured with the help stock market indexes.

9
2.2 COMPANY PROFILE

Federal capital markets Ltd is the financial service supplier, with the respective tothe
shares, Mutual funds &Insurances. The company having the group of stock market specialist
with the respective of specialist in stock exchange with the experience of more than 10 years
in stock market in India.

Federal Capital Markets Ltd wants to make financial products readily available &
understandable to all. They believe in customer responsibility, profit potential & easy
understanding of stock exchanges. Their main focus is on customized service to customers
depending on fundamental analysis, technical research and research on commodities.

2.3 VISION, PURPOSE

Vision:
Our vision is to be the best Financial Services provider in India. And to give the best
investment ideas and help our investors understand the economics of the stock market

Purpose:
The growing Indian financial market demands constant up-gradation of knowledge and
technology. With the financial markets being systematic and competitive, the need for
expertise has increased rapidly.

We at Federal Capital believe that the need of the hour is to be equipped with the best
available techniques and prepare for the challenging days ahead.

Quality Policy:
 To achieve and retain leadership, Federal Capital Markets Ltd shall aim for entire
client‘ssatisfaction, by joining its human power and technical resource, to offer higher
excellence Financial Services.

 In the process, Federal Capital Markets Ltd are going to attempt to go beyond Customer's
requirements. High quality Objectives According to the High quality Rules, Federal
Capital Markets Ltd will.

10
We emphasize

 Integrity

 Client commitment

 Strive for profitability

 Innovation

 Fundamental analysis

 Technical analysis

2.4NATURE OF THE BUSINESS AND PRODUCT PROFILE

Products:

1. Equity Federal Capital Markets Limited provides modified equity suggested

group to customers defends up on their profile page. Equity analysis is
an intrinsic power of Federal Capital Markets Ltd, converting analysis
to recommendation is the major operation of equity advisory. Investors
are accessible with clearly explored possibilities in organizations that is
able to cultivate in each markets viewed worth &progress. Together
with, the exchanging fraternity is catered with suggestions caused by
Technical Analysis & information movement technical analysis.

11
2. Derivatives Stock derivative is a members of the class of derivatives whose worth is
a minimum of partially produced from more than one under-lying
investment plans .alternatives as well as futures positions are the 2
important products under derivatives.
Federal Capital Markets Ltd offers the platform for customers to buy
and sell both the futures and options that are around on indices and also
equities. Derivatives can be used as a hedging tool to reduce risk or
could be used for speculation, but the contract has an expiry period.
Hence it can be risky for customers who are new to the stock market.
Derivatives trading are a good instrument for hedging, leveraging your
portfolio and making profits. Use of advanced investing methods, every
day derivative techniques, market information and also market
perspective to allow you to create advised investment decision
decisions.
The company offers good advice from their derivatives desk through
normal records, SMS notifications, technical analysis, real-time graphs
and information to guide clients determine chances and build
investment techniques. Customers may make different techniques
for example bull extended , possess extended , covers call up writing
and submitting , hedging techniques and implement the orders faster
and smarter and make good earnings by reducing risks

12
3. Insurance The company provides advice on extensive finance planning to
customers managing not just wealth generation ideas, and also wealth
security with sufficient risk management procedure.
With total focus on the answer to the problem offering , the company
methods customers , not merely with insurance product per se ,
however segment ( life profiler ) to help them to with goal based
planning for life , determine and recognize the different risk connected
to his/her life and later on consultant them with suitable personalized
answer to the problem .
The company‘s insurance partners provide insurance policies and
wealth creation chances to satisfy the clients‘ various financial
objectives during the various phases of their life. It will be created to
take away the troubles and make them secure in the knowledge that
clients and also their families are protected.

4. Mutual funds
Investment options may appear difficult &magical .As all the
investments done through the bank deposits, RBI issued Bonds and the
NSC, KVP etc. . Are unviable/unattractive with the inflation group up
& rate of interest dropping regularly, you require to seek further
investment choices. Mutual funds provide the best platform to be
involved in the stock exchanges straightly through professional
supervision.
Federal Capital Markets Ltd has a variety of choices available in mutual
fund products. Mutual funds are getting the most favored investment
vehicles providing a variety of schemes with different
investmentobjectives. Investment in mutual funds are the best option is
safe and easy&practical methods of creating effective investments. The
investment options are in equivalence to the slop down investment
objectives protecting the objectives & targets of the shareholders.
Federal Capital Markets Ltd realizes the importance of financial
objectives of esteemed customers & offers extensive solutions for all
financial requires. Through tailor made investment suggestions, the

13
 company serve customers requires better & help them to make
informed investment choices. Company‘s mutual fund desk provides
helpful advice supported services thus providing customers the edge
that one always wanted

5. Commodity Since ages of the investment in commodities has gives fantastic returns

trading In recent years goods markets are usually experiencing fantastic

progress , which can be evident from the truth that the trade in this
segment multiplied like never before and result is increasing number of
traders in the world has risen with good wealth creation . The promising
nature of these markets has created them an attractive investment
method for traders

6. IPO The word IPO represents the 1st issued to the company stocks to the
public. It assuming the company is large enough, successful
sufficientcapital,& has the needed track record to increase capital in the
public equity market.
Investing in an IPO is a unsafe & speculative investment. Only
speculators based on their investment goals & risk tolerance should
think about this kind of investment.
Federal Capital Markets Ltd helps the customers by providing an in
depth information regarding the prospects of the company planning for
IPO & advice the customers to apply for it as and when it is offered.

MARKETING
In this department where the Demat account is marketed, marketing executives seek
for prospective customers, they help in opening of an account and also these executives
collect AMCs and provide other door to door services.

Here all the records of investors are to maintained and kept confidentially and identifies the
customer‘s requirements and the department members try to fulfill their needs.

14
2.5 MANAGEMENT TEAM
JosephJohn.............................................................................................................................
Director
Joseph John is a Management Consultant and Founding Partner of Symmetry Advisory
Services LLP. Joseph carries wide ranging experience in the fields of management and
consulting for 26 years. Since 2011 he provides Consulting in the fields of Human Resources
and Organization Development to clients in India and advises some of the global consulting
firms on organization strategies and compensation policies. From 1988 to 2011 Joseph held
several senior executive positions in Wipro Limited where his last position was Vice
President-Human Resources in the IT Business. He holds Masters Degree in Management
from the prestigious Tata Institute of Social Sciences, Mumbai and a second Masters Degree
in Economics from Mahatma Gandhi University, Kerala.

Joseph John is a keen industry and business analyst and an investment advisor. He brings
entrepreneurial instinct coupled with rich capability in a variety of functional and business
areas.

Rajan K Samuel, (Director )

Rajan K. Samuel has about 30 years experience in Management and sales. He is an investor
in the stock market since the last 25 years and is very well versed with the Indian stock
market. He has experienced many bull and bear markets and hence advices Federal Capital
markets ltd on the market moves with his valuable inputs.

His disciplined approach in stock investments has given very good returns and he imparts the
same ideas to the investment/Portfolio/trading desk.

P.A Abraham,(Director )
Director has about 40 years of experience in Insurance and investments. Abraham worked
with LIC of India and is an expert on insurance products. He is also into fundamental analysis
and does a lot of Research on stocks.

Our New product Wealth@21 is his idea which we think would be the future of Stock market
investments because it automatically takes care of the volatility in the stock market. It also
involves systematic investment ideas which have already given handsome returns to our
clients.

15
Thomos.A
Head—Operations
Thomas A. is MBA finance with about fourteen years of practical experience in the Stock and
bond markets. He is actually heading the operations in Federal Capital Markets Ltd. Thomas
is also experienced in Fundamental analysis and regularly updates the investors about the
stock market and gives research based buy calls which is very beneficial for our clients.

He also heads the business/franchisee expansion in Federal Capital Markets Ltd.

2.6 COMPETITOR’S INFORMATION

 Share khan Ltd. (www.sharekhan.com)

 ICICI Securities Ltd. (www.icicidirect.com)

 Kotak Securities Ltd. (www.kotaksecurities.com)

 India bulls Financial Services Limited (www.indiabulls.com)

 India Info line (www.5paisa.com)

 Motilal Oswal Securities (www.motilaloswal.com)

 Angel Brokering

16
2.7 SWOT ANALYSIS
SWOT analysis means analysis of the internal strengths and weakness of the company and
also analysis of external opportunities and threats of the company.

Strengths-
1. Good Research team.

2. And ability of individuals to visualize the implication of present policies and actions for
future in practical terms, and a fair for figures.

3. It is recognized for good people driven relationship.

4. Highly sophisticated and advanced research team makes it possible for the clients to earn
good returns.

5. Well experienced and dedicated employees in organization.

Weakness-
1. Lack of funds for advertisement

2. Lack of access to rural markets.

17
Opportunity-
1. Federal Capital Market Ltd having good customer relation strategy so that it create good
opportunity to create goodwill and capture the market.

2. Growing initial public offer create opportunity to capture the new market

3. Positive Outlook of People towards Financial Products because most of investors more
about financial instrument and working strategy of stock brokers

4. Attraction New investor to financial market through media this creates new opportunity to
Federal Capital Market Ltd.

Threats-
1. Increased competition by rival firms and entry of new players to the market.

2. Disinvestment by customers.

3. Global economic slowdown.

4. The Indian capital market is fluctuating.

2.8 FUTURE GROWTH AND PROSPECTS

18
2.9FINANCIAL STATEMENT ANALYSIS
A finance report is a gathering of information recognized depending on logic & continuous
recording procedure. The perfect source of finance information on a business is a finance
funds fact sheets records. This may be a basic basis of data for analyzing the investments
prospectus in the specific company stock.
Balance sheet: (in lacks)
Mar ' 15 Mar ' 14 Mar ' 13
Sources of funds
Owner's fund
Equity share capital 23.29 23.29 23.28
Share application money - - -
Preference share capital - - -
Reserves & surplus 49.54 58.61 63.3
Loan funds
Secured loans 5.6 - -
Unsecured loans 6.39 - -
Total 84.81 81.89 86.58
Uses of funds
Fixed assets
Gross block 31.38 31.53 32.95
Less : revaluation reserve - - -
Less : accumulated depreciation 23.57 18.24 15.11
Net block 7.81 13.29 17.84
Capital work-in-progress 0.03 0.07 0.37
Investments 36.69 37.19 42.2
Net current assets
Current assets, loans & advances 55.25 61.9 67.76
Less : current liabilities &
provisions 14.97 30.55 41.6
Total net current assets 40.27 31.34 26.16
Miscellaneous expenses not
written - - -
Total 84.81 81.89 86.58
Notes:
Book value of unquoted
investments 36.69 37.28 42.29
Market value of quoted
investments - - -
Contingent liabilities 15.52 14.11 9.84
Number of equity shares
outstanding (Laces) 233.53 233.53 233.06

19
RATIO ANALYSIS:-
RATIO 2013 2014 2015
Current ratio 1.62 2.02 3.69
Debt equity ratio 0 0 0.16

Proprietary ratio 1 1 0.85

EPS 0.01 -0.024 -0.034

DPS 0 0 0

Current ratio:
The ratio will increasing in the year 2014 and 2015 the ratio is increased and thus the
high current ratio, the more efficient the company is of paying for its responsibilities. The
standard ratio is 1:1.
Debt equity ratio:
The ratio is in between 2013 to 2014 is zero. Because the Company is fully depends
on internal source. This indicates that the Company depends more on internal sources than on
external sources i.e. it indicates that company depends upon insiders i.e. on shareholders
fund. But in 2015 it has also undergone with outside fund i.e loan therefore in 2015 its ratio is
0.16
Proprietary ratio:
The ratio is 1.00 in 2013 and 2014 But in the year 2014 the ratio is decreased to 0.85, which
is quite normal hence negligible. It indicates that company‘s dependence on shareholders
fund is increasing in year by year. It shows that the financial position of the company is quite
good.
EPS:
The earnings per share of Company is very less. In 2013 EPS is 0.01 but in 2014 -2015
continuously its negative is decrease to -0.03 in 2015 it‘s because company is having losses
and having negative PAT.
DPS:
In the 2014-2015 year the divided is not declared because EPS is negative therefore its zero,
thus it indicates the company is not in good condition.

20
LEARNING EXPERIENCE
In a span of ten weeks doing the project has exposed to working of Mutual Fund sector
provided a good opportunity to learn and the manager give a general outlook of the office. He
has also explained the growth and development of the Stock Market. It was really good
experience in gaining a practical idea about the working of Federal Capital Market Ltd
Securities Share Market particularly which helped to understand the aspects relating to
financial sector in the economy.
There is a big gap between knowledge of management and practically of it. This helped to
realize what additional competencies has to be developed to be a successful professional in
the corporate world. Studying the policies and procedure regarding AMC‘s in the
organization from holistic dimension was not only challenging but also provided a good
learning platform.

MARKETING: The experience in Federal Capital Market Ltd Securities regarding

marketing is that how to attract and convince the customer‘s to concerning its products &
services.
HUMAN RESOURCEMANAGEMENT: The learning here is that how to recruit
employees for various departments and also retaining existing staff from leaving
organization.
FINANCE:The knowledge gained here is about maximizing shareholders wealth, balancing
cash flows, giving optimum benefit to the investors and insurance, loan and credit facilities.

Benefits derived from the in plant training:

 Knowledge about the company and industry operations.

 The working of the employees and their interpersonal relationships.

 Knowledge about stock market and trading mechanism.

 Observation about Investor behavior, preferences, attitude etc.

 Helped in comparing the theoretical concepts to the practical corporate world.

 The training, in essence, molded me to take up challenges in my career once I

complete my MBA course.
21
 CHAPTER-3
BACKGROUND OF THE STUDY

3.1 INTRODUCTION
Technical analysis is a utilization of statistical sequence created by current market
exercise, for example price as well as volume level, to forecast long term price trends. The
method used on any specific market place with a thorough price previous record. Technical
analysis basically looks for to forecast the short-run price moves. It is necessary standards for
choosing the company to make investments. This also offers the bottom for making definite
decisions in investment decision.

The regularly used yardstick to verify & evaluate underlying price development. In that case
a number of different methods were regarded. This technical analysis is advantageous to
overall trader in lots of ways. It offers crucial & necessary information relating to the present
price position of the company.

It utilizes graphs & laptop or computer software to study the stock's exchanging quantity and
the price movements with the expectation of pinpointing a trend. In reality the option created
on the schedule of Technical analysis is conducted only after interfering a trend & comparing
and contrasting the near future movements of the stock of the system of the tendency.

Technical Analysis considers that the market is useful along with the price has already taken
into account the additional factors associated with the company as well as the sector. This is
because of this belief that many believe technical analysis is an instrument that is useful for
short-term investing.

3.2 THEORETICAL FRAMEWORK

a) Stock Exchange:Where the place selling and buying the stocks, bonds, and other
securities we call it as the stock exchange or stock market. The stock market provides
the options are issue and redemption of financial instruments & the payment income
and dividend are also taken place.

22
b) Stock broking firms:The firms are basically financial institutions these firms are
providing the place to buy and sell the stocks in stock markets and also the firms will
act like middle person between the customer and the stock market.

c) Market capitalization:The market capitalization means the total value of the firm it
mean that how many shares are outstanding in the firm, the market capitalization is
calculated by the multiple of number of shares by the current market price of the
shares.

d) Technical analysis: The technical analysis is the method of calculating the share
value based up on the statistics through the market activity , it will based up on the
three aspects they are as follows
 market discounts
 price moving trends
 Historical data information

e) Oversold: This is a situation where the value of the share falls below its true value.
The oscillator reaches the lower bound. This market condition creates panic selling of
shares due to the fall in the value. In this situation it is advised, the investors to buy
the share due to fall in price.

f) Overbought: This is the situation where the value of the shares goes above the true
value due to its demand. The oscillator reaches the upper bound and the investors are
advised to sell the shares to earn more return.

g) Upper Bound & Lower Bound: The fluctuation made by the oscillator above and
below signifying the extreme price levels. With the help of this oscillators we can
identify the overbought and oversold situation. Upper bound is known as overbought
and the lower bound is known as oversold condition.

h) Trend: GenerallyThe trend indicates the route of the market it may be upward trend
or downward trend. The technical analysis will help the investor in identify the
various trend with the help of charts.

23
i) Bullish trend: The upward trend in the share price of a firm or the market indices is
known as bullish trend

j) Bearish trend: The downward trend in the share price of a firm or the market indices
is known as bearish trend. Bearish trend is the heavy downward declining the prices is
called as bearish.

k) Speculation: Speculation involves trading of monetary instrument with high risk with
a motive of getting high return. Their main purpose of speculation I is to earn

l) Technical analysis is done on the basis of price and the volume of share traded in the
market. Below are the fields used to define securities price and volume:

 Open – the price at which a security is first trade on a given trading day.
 High - this is the highest price quoted on a given trading day. At this point the
most of the selling will done than buying.
 Low – this is the lowest price quoted on a given trading day. At this point the
most buyers will buy the securities.
 Close – this is the last price in which the securities are traded during the period.
 Volume – The volume shows the number of shares that were traded during the
period.
 Bid –This the price at which the market maker is willing to pay for the
securities.
 Ask – This is the price a market maker is will to accept to purchase the
securities.
 These are the fields that are used in technical analysis that helps to study price,
relationship, trend, patterns etc.

24
3.3 TOOLS AND TECHNIQUES USED IN TECHNICAL ANALYSIS
Simple Moving Average (SMA)
A simple moving average is created by calculating the average (mean) price of a
security for a certain variety of durations. That is easy to create moving averages from the
open up, the lighting, and lower data point, most moving averages are made utilizing the
closing price. For example: a 5-day simple moving average is determined by attaching the
closing prices for the last five days & dividing the total by 5.

10 + 11 + 12 + 13 + 14 = 60

(60/5)=12

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a very helpful and the common progress
oscillator . The RSI matches the magnitude of a stock's latest gains to the importance of it is
latest losses and the changes that data into a variety that ranges from 0 to 100. It will take
just one parameter , the number of time periods to utilize in the estimation .

Calculation of RSI=( 100 ) ̇-100/( 1+RS )

Average Gain=( Total gains/n )

Average Loss=( Total loss/n )

Relative Strength=Average gain/Average loss

Relative Strength Index=100-100/( 1+RS )

N= Number of RSI periods .

To simplify the formula , the RSI has been broken down into its elements that are the
Average Gain , the Average Loss , the First RS , and the subsequent Smoothed RS's

25
Rate of Change ( ROC )

The Rate Of Change ( ROC ) sign is a very simple yet helpful oscillator that
calculates the % difference in price from one time to the next . The ROC computation
compares the price with the price N periods ago .

ROC=( Today^' close-close N periods ago )/( close N periods ago )*100

The plot forms an oscillator that changes above & below the zero line as the Rate of Change
moves from positive to negative . The oscillator can be utilized as another progress oscillator
by searching for greater lows , lesser highs , good and bad divergences , and the exceeds
above & below zero for indicators .

ROC may be plotted utilizing various periods for example 10 days or 30 days by altering the
value . The longer the time frame used , the greater the fluctuation in the warning ( when it
comes to each significance & duration ) .

26
 CHAPTER - 4
DATA ANALYSIS AND INTERPRETATION

TABLE NO: - 4.1

CALCULATION OF SIMPLE MOVING AVERAGE OFHERO MOTORS

3 MONTHS MOVING LONG TERM MOVING

DATE CLOSING PRICE AVERAGE AVERAGE (12 MONTHS)
01-01-2010 1630.5 - -
01-02-2010 1464.95 - -
01-03-2010 1586.55 1560.666667 -
01-04-2010 1709.65 1587.05 -
03-05-2010 1853.15 1716.45 -
01-06-2010 1877.75 1813.516667 -
01-07-2010 1787.2 1839.366667 -
02-08-2010 2047.85 1904.266667 -
01-09-2010 1941.85 1925.633333 -
01-10-2010 2175.7 2055.133333 -
01-11-2010 2003.25 2040.266667 -
01-12-2010 1905.25 2028.066667 1831.970833
03-01-2011 1863.9 1924.133333 1851.420833
01-02-2011 1950.45 1906.533333 1891.879167
01-03-2011 2054.85 1956.4 1930.904167
01-04-2011 2234.9 2080.066667 1974.675
02-05-2011 1837 2042.25 1973.329167
01-06-2011 2142.1 2071.333333 1995.358333
01-07-2011 2005.7 1994.933333 2013.566667
01-08-2011 2234.9 2127.566667 2029.154167
02-09-2011 1879.3 2039.966667 2023.941667
03-10-2011 1878.95 1997.716667 1999.2125
01-11-2011 1827.9 1862.05 1984.6

27
01-12-2011 1898.35 1868.4 1984.025
02-01-2012 1822.1 1849.45 1980.541667
01-02-2012 1667.45 1795.966667 1956.958333
01-03-2012 1542 1677.183333 1914.220833
02-04-2012 1644.45 1617.966667 1865.016667
01-05-2012 1736.35 1640.933333 1856.629167
01-06-2012 1663.05 1681.283333 1816.708333
02-07-2012 1819.4 1739.6 1801.183333
01-08-2012 2046.5 1842.983333 1785.483333
03-09-2012 2009.25 1958.383333 1796.3125
01-10-2012 2078.4 2044.716667 1812.933333
01-11-2012 2052.95 2046.866667 1831.6875
03-12-2012 2075.3 2068.883333 1846.433333
01-01-2013 1970.45 2032.9 1858.795833
01-02-2013 1951.1 1998.95 1882.433333
01-03-2013 2272.8 2064.783333 1943.333333
01-04-2013 2145.2 2123.033333 1985.0625
01-05-2013 2332.85 2250.283333 2034.770833
03-06-2013 2627.2 2368.416667 2115.116667
01-07-2013 2596.05 2518.7 2179.8375
01-08-2013 2602.54 2608.596667 2226.174167
02-09-2013 2863.7 2687.43 2297.378333
01-10-2013 3061.6 2842.613333 2379.311667
01-11-2013 3258.25 3061.183333 2479.753333
02-12-2013 3150.85 3156.9 2569.3825
01-01-2014 2869.55 3092.883333 2644.3075
03-02-2014 2670.35 2896.916667 2704.245
03-03-2014 2642.6 2727.5 2735.061667
01-04-2014 2329.45 2547.466667 2750.415833
01-05-2014 2696 2556.016667 2780.678333
02-06-2014 2524.35 2516.6 2772.1075
01-07-2014 2674.45 2631.6 2778.640833

28
01-08-2014 2397.35 2532.05 2761.541667
01-09-2014 2395.65 2489.15 2722.5375
01-10-2014 2625.75 2472.916667 2686.216667
03-11-2014 2702.75 2574.716667 2639.925
01-12-2014 2695.25 2674.583333 2601.958333
01-01-2015 2562.8 2653.6 2576.395833
02-02-2015 355.2 1871.083333 2383.466667
02-03-2015 393.3 1103.766667 2196.025
01-04-2015 381.1 376.5333333 2033.6625
01-05-2015 425.6 400 1844.4625
01-06-2015 420.05 408.9166667 1669.104167
01-07-2015 418.8 421.4833333 1481.133333
03-08-2015 354.3 397.7166667 1310.879167
01-09-2015 337.85 370.3166667 1139.395833
01-10-2015 349.05 347.0666667 949.6708333
02-11-2015 334.35 340.4166667 752.3041667
01-12-2015 340.4 341.2666667 556.0666667

29
 GRAPH:4.1
Showing Simple Moving Average 5 YEARS of HERO MOTOCORP:

ANALYSIS AND INTERPRETATION

 In the above chart, short term moving average indicates 3 months moving average and
the long term moving average indicates 12 months moving average along with the
closing price .
 When the long& short term moving averages are intersects we will show the point is
selling point or the buying point.
 In the above chart, theclosing price curve is falling down& the short term moving
average interconnects with the long term moving average from the above to falls
below during September 2012, may 2015. So it generates a sell signal. And there will
be further fall in price due to increased selling pressure and distress selling.
 The closing price curveis showing increasing trend & the short term moving average
intersects with the long term moving average from the lowerto up during July 2014
which is indicating a further rise in price and buying signal is generated.
30
 TABLE NO: - 4.2
CALCULATION OF SIMPLE MOVING AVERAGE OF TVS MOTORS

3 MONTHS MOVING LONG TERM MOVING

DATE CLOSING PRICE AVERAGE AVERAGE (12 MONTHS)
Jan-11 50.75 - -
Feb-11 60 - -
Mar-11 56.35 55.70 -
Apr-11 54.15 56.83 -
May-11 53.65 54.72 -
Jun-11 49.35 52.38 -
Jul-11 55.3 52.77 -
Aug-11 61 55.22 -
Sep-11 68.8 61.70 -
Oct-11 59.25 63.02 -
Nov-11 51.9 59.98 -
Dec-11 52.4 54.52 56.08
Jan-12 47.2 50.50 55.78
Feb-12 41 46.87 54.20
Mar-12 41 43.07 52.92
Apr-12 34 38.67 51.24
May-12 36.45 37.15 49.80
Jun-12 37.9 36.12 48.85
Jul-12 39.15 37.83 47.50
Aug-12 42.25 39.77 45.94
Sep-12 38.8 40.07 43.44
Oct-12 38.95 40.00 41.75
Nov-12 41.8 39.85 40.91
Dec-12 43.85 41.53 40.20
Jan-13 38.45 41.37 39.47
Feb-13 32.3 38.20 38.74
Mar-13 38.35 36.37 38.52
Apr-13 35.9 35.52 38.68

31
May-13 32.85 35.70 38.38
Jun-13 31.15 33.30 37.82
Jul-13 30.65 31.55 37.11
Aug-13 36.85 32.88 36.66
Sep-13 50.75 39.42 37.65
Oct-13 54.75 47.45 38.97
Nov-13 75.95 60.48 41.82
Dec-13 78.95 69.88 44.74
Jan-14 77.5 77.47 48.00
Feb-14 85.45 80.63 52.43
Mar-14 97.4 86.78 57.35
Apr-14 95.25 92.70 62.29
May-14 130.1 107.58 70.40
Jun-14 162.55 129.30 81.35
Jul-14 147.6 146.75 91.09
Aug-14 186.35 165.50 103.55
Sep-14 228.7 187.55 118.38
Oct-14 259.6 224.88 135.45
Nov-14 229.15 239.15 148.22
Dec-14 268.3 252.35 164.00
Jan-15 308.15 268.53 183.22
Feb-15 277.95 284.80 199.26
Mar-15 263.75 283.28 213.12
Apr-15 235.6 259.10 224.82
May-15 237.95 245.77 233.80
Jun-15 243.75 239.10 240.57
Jul-15 237.95 239.88 248.10
Aug-15 223.45 235.05 251.19
Sep-15 230.2 230.53 251.32
Oct-15 265.45 239.70 251.80
Nov-15 306.9 267.52 258.28
Dec-15 290.2 287.52 260.11

32
 GRAPH:4.2
Showing Simple Moving Average 5 YEARS of TVS MOTORS:

ANALYSIS AND INTERPRETATION

 In the above chart, short term moving average indicates 3 months moving average &
long term moving average indicates 12 months moving average and closing price
curve.
 In the above chart the price curve is falling & the short term moving average
interconnects with the long term moving average from the above to falls down during
June 2015. So it generates a sell signal. And there will be further fall in price due to
increased selling pressure and distress selling.
 The script is showing increasing trend & the short term moving average
intersectingwith the long term moving average from the below to upward during
October 2013 which is indicating a further rise in price and buying signal is
generated.

33
 TABLE NO: - 4.3
CALCULATION SIMPLE MOVING AVERAGE OF MARUTI SUZUKI

CLOSING 3 MONTHS MOVING LONG TERM MOVING

DATE PRICE AVERAGE AVERAGE (12 MONTHS)
Jan-11 1252.8 - -
Feb-11 1206.7 - -
Mar-11 1263.55 1241.02 -
Apr-11 1319.75 1263.33 -
May-11 1227.5 1270.27 -
Jun-11 1158.45 1235.23 -
Jul-11 1207.9 1197.95 -
Aug-11 1092.35 1152.90 -
Sep-11 1081.4 1127.22 -
Oct-11 1125.65 1099.80 -
Nov-11 968.65 1058.57 -
Dec-11 920.05 1004.78 1152.06
Jan-12 1187.55 1025.42 1146.63
Feb-12 1256.25 1121.28 1150.75
Mar-12 1349.1 1264.30 1157.88
Apr-12 1369.9 1325.08 1162.06
May-12 1106.45 1275.15 1151.98
Jun-12 1169.75 1215.37 1152.92
Jul-12 1133.05 1136.42 1146.68
Aug-12 1138.55 1147.12 1150.53
Sep-12 1349.9 1207.17 1172.90
Oct-12 1436.25 1308.23 1198.79
Nov-12 1473.55 1419.90 1240.86
Dec-12 1488.95 1466.25 1288.27
Jan-13 1581 1514.50 1321.06
Feb-13 1354.35 1474.77 1329.23
Mar-13 1281.2 1405.52 1323.58
Apr-13 1669.6 1435.05 1348.55

34
May-13 1065.6 1338.80 1345.15
Jun-13 1537.75 1424.32 1375.81
Jul-13 1326.3 1309.88 1391.92
Aug-13 1243.55 1369.20 1400.67
Sep-13 1358.55 1309.47 1401.39
Oct-13 1636.2 1412.77 1418.05
Nov-13 1676.15 1556.97 1434.93
Dec-13 1763.9 1692.08 1457.85
Jan-14 1635.35 1691.80 1462.38
Feb-14 1586.3 1661.85 1481.70
Mar-14 1971.4 1731.02 1539.22
Apr-14 1918 1825.23 1559.92
May-14 2269.5 2052.97 1660.25
Jun-14 2438.35 2208.62 1735.30
Jul-14 2524.5 2410.78 1835.15
Aug-14 3784.35 2915.73 2046.88
Sep-14 3064.35 3124.40 2189.03
Oct-14 3242.15 3363.62 2322.86
Nov-14 3336.1 3214.20 2461.19
Dec-14 3328.3 3302.18 2591.55
Jan-15 3645.25 3436.55 2759.05
Feb-15 3618.25 3530.60 2928.38
Mar-15 3699.25 3654.25 3072.36
Apr-15 3732.05 3683.18 3223.53
May-15 3785.45 3738.92 3349.86
Jun-15 4022.7 3846.73 3481.89
Jul-15 4330.4 4046.18 3632.38
Aug-15 4167.5 4173.53 3664.31
Sep-15 4689.3 4395.73 3799.73
Oct-15 4448.65 4435.15 3900.27
Nov-15 4576.5 4571.48 4003.63
Dec-15 4615.35 4546.83 4110.89

35
 GRAPH:4.3
Showing Simple Moving Average 5 YEARS of MARUTI SUZUKI:

ANALYSIS AND INTERPRETATION

 In the above chart, short term moving average indicates 3 months moving average &
long term moving average indicates 12 months moving average and the closing price
curve.
 The closing scrip price is showing rising trend & the short term moving average
intersecting with the long term moving average from below to above during August
2012 and November 2013.which is indicating a further rise in price and buying signal
is generated.

36
 TABLE NO: - 4.4
CALCULATION SIMPLE MOVING AVERAGE OF MAHINDRA AND
MAHINDRA
CLOSING 3 MONTHS LONG TERM MOVING
DATE PRICE MOVING AVERAGE AVERAGE (12 MONTHS)
Jan-11 712.05 - -
Feb-11 614.1 - -
Mar-11 698.6 674.92 -
Apr-11 753.8 688.83 -
May-11 672.15 708.18 -
Jun-11 701.3 709.08 -
Jul-11 718.25 697.23 -
Aug-11 737.55 719.03 -
Sep-11 802.55 752.78 -
Oct-11 863.2 801.10 -
Nov-11 723.85 796.53 -
Dec-11 683.05 756.70 723.37
Jan-12 672.85 693.25 720.10
Feb-12 707.65 687.85 727.90
Mar-12 696.9 692.47 727.76
Apr-12 710.15 704.90 724.12
May-12 651.7 686.25 722.42
Jun-12 706.9 689.58 722.88
Jul-12 700.45 686.35 721.40
Aug-12 765.15 724.17 723.70
Sep-12 864.5 776.70 728.86
Oct-12 884.25 837.97 730.62
Nov-12 944.85 897.87 749.03
Dec-12 930 919.70 769.61
Jan-13 889.25 921.37 787.65
Feb-13 873.7 897.65 801.48
Mar-13 861.3 874.75 815.18
Apr-13 924.1 886.37 833.01

37
May-13 967.55 917.65 859.33
Jun-13 970.6 954.08 881.31
Jul-13 911.4 949.85 898.89
Aug-13 783.25 888.42 900.40
Sep-13 827.45 840.70 897.31
Oct-13 887.85 832.85 897.61
Nov-13 945.25 886.85 897.64
Dec-13 944.2 925.77 898.83
Jan-14 890.45 926.63 898.93
Feb-14 973.45 936.03 907.24
Mar-14 980.65 948.18 917.18
Apr-14 1072.15 1008.75 929.52
May-14 1230.5 1094.43 951.43
Jun-14 1147.9 1150.18 966.21
Jul-14 1203.9 1194.10 990.58
Aug-14 1406.8 1252.87 1042.55
Sep-14 1362.3 1324.33 1087.12
Oct-14 1303.4 1357.50 1121.75
Nov-14 1323.75 1329.82 1153.29
Dec-14 1234.5 1287.22 1177.48
Jan-15 1263 1273.75 1208.53
Feb-15 1291.5 1263.00 1235.03
Mar-15 1187.15 1247.22 1252.24
Apr-15 1145.15 1207.93 1258.32
May-15 1260.2 1197.50 1260.80
Jun-15 1281.2 1228.85 1271.90
Jul-15 1361.8 1301.07 1285.06
Aug-15 1222.95 1288.65 1269.74
Sep-15 1260.7 1281.82 1261.28
Oct-15 1182.5 1222.05 1251.20
Nov-15 1367.25 1270.15 1254.83
Dec-15 1271.55 1273.77 1257.91

38
 GRAPH:4.4
Showing Simple Moving Average 5 YEARS of MAHINDRA AND
MAHINDRA:

ANALYSIS AND INTERPRETATION

 In the above chart, short term moving average indicates 3 months moving average &
long term moving average indicates 12 months moving average and closing price .
 In the above chart the closing pricecurve is falling down& the short term moving
average interconnecting with the long term moving average from above to below
during Aug 2013. So it generates a sell signal. And there will be further fall in price
due to increased selling pressure and distress selling.
 The scrip price is showing increasing trend & the short term moving average
intersecting with the long term moving average from the below to above during July
2012 and November 2013 which is indicating a further rise in price and buying signal
is generated.

39
 TABLE NO: - 4.5
CALCULATION SIMPLE MOVING AVERAGE OF ASHOK LEYLAND

DATE CLOSING PRICE 3 MONTHS MOVING LONG TERM MOVING

AVERAGE AVERAGE (12 MONTHS)
Jan-11 58.95 - -
Feb-11 46.7 - -
Mar-11 56.9 54.18 -
Apr-11 53.05 52.22 -
May-11 51.1 53.68 -
Jun-11 48.65 50.93 -
Jul-11 51.05 50.27 -
Aug-11 24.85 41.52 -
Sep-11 26.1 34.00 -
Oct-11 27.25 26.07 -
Nov-11 24.6 25.98 -
Dec-11 22.75 24.87 41.00
Jan-12 27.4 24.92 38.37
Feb-12 28.3 26.15 36.83
Mar-12 30.3 28.67 34.62
Apr-12 32.25 30.28 32.88
May-12 25 29.18 30.71
Jun-12 24.95 27.40 28.73
Jul-12 22.3 24.08 26.34
Aug-12 20.7 22.65 25.99
Sep-12 24 22.33 25.82
Oct-12 23.45 22.72 25.50
Nov-12 28.35 25.27 25.81
Dec-12 26.95 26.25 26.16
Jan-13 24.45 26.58 25.92
Feb-13 22.25 24.55 25.41
Mar-13 21.85 22.85 24.71
Apr-13 22.8 22.30 23.92

40
May-13 23.75 22.80 23.82
Jun-13 20.1 22.22 23.41
Jul-13 13.55 19.13 22.68
Aug-13 12 15.22 21.96
Sep-13 15.15 13.57 21.22
Oct-13 17.2 14.78 20.70
Nov-13 16.8 16.38 19.74
Dec-13 17.25 17.08 18.93
Jan-14 16.45 16.83 18.26
Feb-14 15.65 16.45 17.71
Mar-14 23.7 18.60 17.87
Apr-14 22.25 20.53 17.82
May-14 32.3 26.08 18.53
Jun-14 36.5 30.35 19.90
Jul-14 34.1 34.30 21.61
Aug-14 38.75 36.45 23.84
Sep-14 41.1 37.98 26.00
Oct-14 46.35 42.07 28.43
Nov-14 52.35 46.60 31.40
Dec-14 51.35 50.02 34.24
Jan-15 65.7 56.47 38.34
Feb-15 69.75 62.27 42.85
Mar-15 73.55 69.67 47.00
Apr-15 69.55 70.95 50.95
May-15 71.45 71.52 54.21
Jun-15 72.5 71.17 57.21
Jul-15 84.5 76.15 61.41
Aug-15 90.55 82.52 65.73
Sep-15 92.2 89.08 69.98
Oct-15 93.65 92.13 73.93
Nov-15 94.5 93.45 77.44
Dec-15 88 92.05 80.49

41
 GRAPH:4.5
Showing Simple Moving Average 5 Years of ASHOK LEYLAND

ANALYSIS AND INTERPRETATION

 In the above chart, short term moving average indicates 3 months moving average &
long term moving average indicates 12 months moving average.
 In the above chart, the price is dropping down and the short term moving average
interconnects the long term moving average from the above your head and drops
below during December 2012. So it generates a sell signal. And there will be further
fall in price due to increased selling pressure and distress selling.
 The scrip price is showing rising trend & the short term moving average intersects the
long term moving average from below to above during March 2014. which is
indicating a further rise in price and buying signal is generated.

42
 RELATIVE STRENGTH INDEX

TABLE:4.6
CALCULATION OF RELATIVE STRENGTH INDEX OF HERO
MOTORS
Close Chance Advantage Decline Average Average RS RSI
Month price gain loss
Jan-11 1630.50 0.00 0.00 0.00 - - - -
Feb-11 1464.95 -165.55 0.00 166.55 - - - -
Mar-11 1586.55 121.60 121.60 0.00 - - - -
Apr-11 1709.65 123.10 123.10 0.00 - - - -
May-11 1853.15 143.50 143.50 0.00 - - - -
Jun-11 1877.75 24.60 24.60 0.00 - - - -
Jul-11 1787.20 -90.55 0.00 90.35 - - - -
Aug-11 2047.85 260.65 260.65 0.00 - - - -
Sep-11 1941.85 -106.00 0.00 106.00 - - - -
Oct-11 2175.70 233.85 233.85 0.00 - - - -
Nov-11 2003.25 -172.45 0.00 172.45 90.73 53.54 1.69 62.89
Dec-11 1905.25 -98.00 0.00 9.00 90.73 37.78 2.40 70.60
Jan-12 1863.90 -41.35 0.00 41.35 78.57 41.92 1.87 65.21
Feb-12 1950.45 86.55 86.55 0.00 74.92 41.92 1.79 64.12
Mar-12 2054.85 104.40 104.44 0.00 71.01 41.92 1.69 62.88
Apr-12 2234.90 180.05 180.05 0.00 86.55 41.92 2.06 67.37
May-12 1837.00 -397.90 0.00 397.90 86.55 72.67 1.19 54.36
Jun-12 2142.10 305.10 305.10 0.00 91.00 72.67 1.25 55.60
Jul-12 2005.70 -136.40 0.00 136.40 91.00 75.71 1.20 54.59
Aug-12 2234.90 229.20 229.20 0.00 90.53 75.71 1.20 54.46
Sep-12 1879.30 -355.60 0.00 355.60 90.53 94.03 0.96 49.05
Oct-12 1878.95 -0.35 0.00 0.35 90.53 93.16 0.97 49.29
Nov-12 1827.90 -51.05 0.00 51.05 90.53 94.13 0.96 49.03
Dec-12 1898.35 70.45 70.45 0.00 88.92 94.13 0.94 48.58
Jan-13 1822.10 -76.25 0.00 76.25 78.48 101.76 0.77 43.54
Feb-13 1667.45 -154.65 0.00 154.65 60.48 117.22 0.52 34.03
Mar-13 1542.00 -125.45 0.00 125.45 60.48 89.98 0.67 40.20

43
Apr-13 1644.45 102.45 102.40 0.00 40.21 89.98 0.45 30.88
May-13 1736.35 91.90 91.90 0.00 49.40 76.34 0.65 39.29
Jun-13 1663.05 -73.30 0.00 73.30 26.48 83.67 0.32 24.04
Jul-13 1819.40 156.35 156.35 0.00 42.11 48.11 0.88 46.68
Aug-13 2046.50 227.10 227.10 0.00 64.82 48.07 1.35 57.42
Sep-13 2009.25 -37.25 0.00 37.25 64.82 46.69 1.39 58.13
Oct-13 2078.40 69.15 69.15 0.00 64.69 46.69 1.39 58.08
Nov-13 2052.95 -25.45 0.00 25.45 64.69 41.61 1.55 60.86
Dec-13 2075.30 22.35 22.35 0.00 66.93 26.15 2.56 71.91
Jan-14 1970.45 -104.85 0.00 104.85 66.93 24.09 2.78 73.54
Feb-14 1951.10 -19.35 0.00 19.35 56.69 26.02 2.18 68.54
Mar-14 2272.80 321.70 321.70 0.00 79.67 26.02 3.06 75.38
Apr-14 2145.20 -127.60 0.00 127.60 79.67 31.45 2.53 71.70
May-14 2332.85 187.65 187.65 0.00 82.80 31.45 2.63 72.47
Jun-14 2627.20 294.35 294.35 0.00 89.52 31.45 2.85 74.00
Jul-14 2596.05 -31.15 0.00 31.15 89.52 30.84 2.90 74.38
Aug-14 2602.54 6.49 6.49 0.00 83.25 30.84 2.70 72.97
Sep-14 2863.70 261.16 261.16 0.00 109.37 28.30 3.87 79.45
Oct-14 3061.60 197.90 197.90 0.00 126.93 28.30 4.49 81.77
Nov-14 3258.25 196.65 196.65 0.00 146.59 17.81 8.23 89.17
Dec-14 3150.85 -107.40 0.00 107.40 146.59 26.62 5.51 84.63
Jan-15 2869.55 -281.30 0.00 281.30 114.42 54.75 2.09 67.64
Feb-15 2670.35 -199.20 0.00 199.20 114.42 61.91 1.85 64.89
Mar-15 2642.60 -27.75 0.00 27.75 95.66 64.68 1.48 59.66
Apr-15 2329.45 -313.15 0.00 313.15 66.22 96.00 0.69 40.82
May-15 2696.00 366.55 366.55 0.00 102.88 92.88 1.11 52.55
Jun-15 2524.35 -171.65 0.00 171.65 102.23 110.05 0.93 48.16
Jul-15 2674.45 150.10 150.10 0.00 91.12 110.05 0.83 45.30
Aug-15 2397.35 -277.10 0.00 277.10 71.33 137.76 0.52 34.12
Sep-15 2395.65 -1.70 0.00 1.70 51.67 137.93 0.37 27.25
Oct-15 2625.75 230.10 230.10 0.00 74.68 127.19 0.59 36.99
Nov-15 2702.75 77.00 77.00 0.00 82.38 99.06 0.83 45.40
Dec-15 2695.25 -7.50 0.00 7.50 82.38 79.89 1.03 50.77

44
 GRAPH:4.6
SHOWING OF RELATIVE STRENGTH INDEX OF HERO MOTORS

ANALYSIS AND INTERPRETATION

 Normally RSI value above 70 is considered to denote overbought condition and value below
30 are considered to denote oversold situation.
 Here RSI value has crossed the 70 points in the month November 2014 and there from its
falling below which is an overbought situation, so it indicates a sell signal.
 RSI value crossed the 30 point line during October 2015 and June 2013 which indicate a
buying signal.

45
 TABLE:4.7
CALCULATION OF RELATIVE STRENGTH INDEX OF TVS MOTORS

Close Chan Advant Decline Averag Averag RS RSI

Month price ce age e gain e loss
Jan-11 50.75 0.00 0.00 0.00 - - - -
Feb-11 60.00 9.25 9.25 0.00 - - - -
Mar-11 56.35 -3.65 0.00 3.65 - - - -
Apr-11 54.15 -2.20 0.00 2.20 - - - -
May-11 53.65 -0.50 0.00 0.50 - - - -
Jun-11 49.35 -4.30 0.00 4.30 - - - -
Jul-11 55.30 5.95 5.95 0.00 - - - -
Aug-11 61.00 5.70 5.70 0.00 - - - -
Sep-11 68.80 7.80 7.80 0.00 - - - -
Oct-11 59.25 -9.55 0.00 9.55 - - - -
Nov-11 51.90 -7.35 0.00 7.35 2.87 2.76 1.04 51.02
Dec-11 52.40 0.50 0.50 0.00 2.00 2.76 0.72 42.00
Jan-12 47.20 -5.20 0.00 5.20 2.00 2.91 0.69 40.67
Feb-12 41.00 -6.20 0.00 6.20 2.00 3.31 0.60 37.61
Mar-12 41.00 0.00 0.00 0.00 2.00 3.26 0.61 37.96
Apr-12 34.00 -7.00 0.00 7.00 2.00 3.53 0.57 36.11
May-12 36.45 2.45 2.45 0.00 1.65 3.53 0.47 31.79
Jun-12 37.90 1.45 1.45 0.00 1.22 3.53 0.35 25.68
Jul-12 39.15 1.25 1.25 0.00 0.57 3.53 0.16 13.80
Aug-12 42.25 3.10 3.10 0.00 0.88 2.58 0.34 25.36
Sep-12 38.80 -3.45 0.00 3.45 0.88 2.19 0.40 28.59
Oct-12 38.95 0.15 0.15 0.00 0.84 2.19 0.38 27.77
Nov-12 41.80 2.85 2.85 0.00 1.13 1.67 0.68 40.32
Dec-12 43.85 2.05 2.05 0.00 1.33 1.05 1.27 56.00
Jan-13 38.45 -5.40 0.00 5.40 1.33 1.59 0.84 45.63
Feb-13 32.30 -6.15 0.00 6.15 1.33 1.50 0.89 47.00
Mar-13 38.35 6.05 6.05 0.00 1.69 1.50 1.13 52.98
Apr-13 35.90 -2.45 0.00 2.45 1.55 1.75 0.89 46.96

46
May-13 32.85 -3.05 0.00 3.05 1.42 2.05 0.69 40.92
Jun-13 31.15 -1.70 0.00 1.70 1.11 2.22 0.50 33.33
Jul-13 30.65 -0.50 0.00 0.50 1.11 1.93 0.58 36.57
Aug-13 36.85 6.20 6.20 0.00 1.72 1.93 0.89 47.12
Sep-13 50.75 13.90 13.90 0.00 2.82 1.93 1.46 59.43
Oct-13 54.75 4.00 4.00 0.00 3.02 1.93 1.57 61.03
Nov-13 75.95 21.20 21.20 0.00 5.14 1.39 3.71 78.76
Dec-13 78.95 3.00 3.00 0.00 5.44 0.77 7.06 87.59
Jan-14 77.50 -1.45 0.00 1.45 4.83 0.92 5.28 84.07
Feb-14 85.45 7.95 7.95 0.00 5.63 0.67 8.40 89.36
Mar-14 97.40 11.95 11.95 0.00 6.82 0.37 18.68 94.92
Apr-14 95.25 -2.15 0.00 2.15 6.82 0.41 16.63 94.33
May-14 130.10 34.85 34.85 0.00 10.31 0.36 28.63 96.62
Jun-14 162.55 32.45 32.45 0.00 12.93 0.36 35.92 97.29
Jul-14 147.60 -14.95 0.00 14.95 11.54 1.86 6.22 86.15
Aug-14 186.35 38.75 38.75 0.00 15.02 1.86 8.09 89.00
Sep-14 228.70 42.35 42.35 0.00 17.13 1.86 9.23 90.23
Oct-14 259.60 30.90 30.90 0.00 19.92 1.86 10.74 91.48
Nov-14 229.15 -30.45 0.00 30.45 19.92 4.76 4.19 80.73
Dec-14 268.30 39.15 39.15 0.00 23.04 4.76 4.85 82.89
Jan-15 308.15 39.85 39.85 0.00 25.83 4.76 5.43 84.45
Feb-15 277.95 -30.20 0.00 30.20 25.83 7.56 3.42 77.36
Mar-15 263.75 -14.20 0.00 14.20 22.35 8.98 2.49 71.33
Apr-15 235.60 -28.15 0.00 28.15 19.10 11.80 1.62 61.82
May-15 237.95 2.35 2.35 0.00 19.34 10.30 1.88 65.24
Jun-15 243.75 5.80 5.80 0.00 16.04 10.30 1.56 60.90
Jul-15 237.95 -5.80 0.00 5.80 11.81 10.88 1.09 52.04
Aug-15 223.45 -14.50 0.00 14.50 8.72 12.33 0.71 41.41
Sep-15 230.20 6.75 6.75 0.00 9.39 9.29 1.01 50.28
Oct-15 265.45 35.25 35.25 0.00 9.00 9.29 0.97 49.22
Nov-15 306.90 41.45 41.45 0.00 9.16 9.29 0.99 49.66
Dec-15 290.20 -16.70 0.00 16.70 9.16 7.94 1.15 53.58

47
 GRAPH:4.7
SHOWING OF RELATIVE STRENGTH INDEX OF TVS MOTORS

ANALYSIS AND INTERPRETATION

 Normally RSI value above 70 is measured to denote overbought condition & the value below
30 are measured to denote oversold situation.
 Here RSI value has crossed the 70 points in the month June 2014 and there from its falling
below which is an overbought situation, so it indicates a sell signal.
 RSI value crossed the 30 line during July 2012 which indicate a buying signal.

48
 TABLE:4.8
CALCULATION OF RELATIVE STRENGTH INDEX OF MARUTI
SUZUKI MOTORS

Close Chance Advantage Decline Average Average RS RSI

Month
price gain loss
Jan-11 1252.80 0.00 0.00 0.00 - - - -
Feb-11 1206.70 -46.10 0.00 46.10 - - - -
Mar-11 1263.55 56.85 56.85 56.85 - - - -
Apr-11 1319.75 56.20 56.20 0.00 - - - -
May-11 1227.50 -92.25 0.00 92.25 - - - -
Jun-11 1158.45 -69.05 0.00 69.05 - - - -
Jul-11 1207.90 49.45 49.45 0.00 - - - -
Aug-11 1092.35 -115.60 0.00 115.60 - - - -
Sep-11 1081.40 -10.95 0.00 10.95 - - - -
Oct-11 1125.65 44.25 44.25 0.00 - - - -
Nov-11 968.65 -157.00 0.00 157.00 20.68 54.78 0.38 27.40
Dec-11 920.05 -48.60 0.00 48.60 20.68 55.03 0.38 27.31
Jan-12 1187.55 267.50 267.50 0.00 41.74 49.34 0.85 45.83
Feb-12 1256.25 68.70 68.70 0.00 42.99 49.34 0.87 46.56
Mar-12 1349.10 92.85 92.85 0.00 52.28 40.12 1.30 56.58
Apr-12 1369.90 20.80 20.80 0.00 54.36 33.21 1.64 62.07
May-12 1106.45 -263.50 0.00 263.50 49.41 59.56 0.83 45.35
Jun-12 1169.75 63.30 63.30 0.00 55.74 48.00 1.16 53.73
Jul-12 1133.05 -36.70 0.00 36.70 55.74 50.58 1.10 52.43
Aug-12 1138.55 5.50 5.50 0.00 51.87 50.58 1.03 50.63
Sep-12 1349.90 211.40 211.35 0.00 73.00 34.88 2.09 67.67
Oct-12 1436.25 86.35 86.35 0.00 81.64 30.02 2.72 73.12
Nov-12 1473.55 37.30 37.30 0.00 58.62 30.02 1.95 66.13
Dec-12 1488.95 15.40 15.40 0.00 53.29 30.02 1.78 63.97
Jan-13 1581.00 92.05 92.05 0.00 53.21 30.02 1.77 63.93
Feb-13 1354.35 -226.70 0.00 226.70 51.13 52.68 0.97 49.25
Mar-13 1281.20 -73.15 0.00 73.15 51.13 33.65 1.52 60.31

49
Apr-13 1669.60 388.40 388.40 0.00 83.64 33.65 2.49 71.31
May-13 1065.60 -604.00 0.00 604.00 83.64 90.38 0.93 48.06
Jun-13 1537.75 472.20 472.15 0.00 130.30 90.38 1.44 59.05
Jul-13 1326.30 -211.50 0.00 211.50 109.17 111.53 0.98 49.47
Aug-13 1243.55 -82.75 0.00 82.75 100.53 119.80 0.84 45.63
Sep-13 1358.55 115.00 115.00 0.00 108.30 119.80 0.90 47.48
Oct-13 1636.20 277.70 277.65 0.00 134.53 119.80 1.12 52.90
Nov-13 1676.15 39.95 39.95 0.00 129.32 119.80 1.08 51.91
Dec-13 1763.90 87.75 87.75 0.00 138.09 97.14 1.42 58.71
Jan-14 1635.35 -128.60 0.00 128.60 138.09 102.68 1.34 57.36
Feb-14 1586.30 -49.05 0.00 49.05 99.25 107.58 0.92 47.99
Mar-14 1971.40 385.10 385.10 0.00 137.76 47.18 2.92 74.49
Apr-14 1918.00 -53.40 0.00 53.40 90.55 52.52 1.72 63.29
May-14 2269.50 351.50 351.50 0.00 125.70 31.38 4.01 80.03
Jun-14 2438.35 168.90 168.85 0.00 142.58 23.10 6.17 86.06
Jul-14 2524.50 86.15 86.15 0.00 139.70 23.10 6.05 85.81
Aug-14 3784.35 1260.00 1259.90 0.00 237.92 23.10 10.30 91.15
Sep-14 3064.35 -720.00 0.00 720.00 233.92 95.10 2.46 71.10
Oct-14 3242.15 177.80 177.80 0.00 242.93 95.10 2.55 71.87
Nov-14 3336.10 93.95 93.95 0.00 252.32 82.25 3.07 75.42
Dec-14 3328.30 -7.80 0.00 7.80 252.32 78.12 3.23 76.36
Jan-15 3645.25 317.00 316.95 0.00 245.51 78.12 3.14 75.86
Feb-15 3618.25 -27.00 0.00 27.00 245.51 75.48 3.25 76.49
Mar-15 3699.25 81.00 81.00 0.00 218.46 75.48 2.89 74.32
Apr-15 3732.05 32.80 32.80 0.00 204.85 75.48 2.71 73.08
May-15 3785.45 53.40 53.40 0.00 201.58 75.48 2.67 72.76
Jun-15 4022.70 237.30 237.25 0.00 99.32 75.48 1.32 56.82
Jul-15 4330.40 307.70 307.70 0.00 130.09 3.48 37.38 97.40
Aug-15 4167.50 -162.90 0.00 162.90 112.31 19.77 5.68 85.03
Sep-15 4689.30 521.80 521.80 0.00 155.09 19.77 7.84 88.69
Oct-15 4448.65 -240.70 0.00 240.70 155.09 43.06 3.60 78.27
Nov-15 4576.50 127.90 127.85 0.00 136.18 43.06 3.16 75.98
Dec-15 4615.35 38.85 38.85 0.00 140.07 40.36 3.47 77.63

50
 GRAPH:4.8
SHOWING OF RELATIVE STRENGTH INDEX OF MARUTI SUZUKI
MOTORS

ANALYSIS AND INTERPRETATION

 Normally RSI value above 70 is considered to denote overbought condition and value below
30 are considered to denote oversold situation.
 Here RSI value has crossed the 70 points in the month sept 2014 and July 2015 there from its
falling below which is an overbought situation, so it indicates a sell signal.
 RSI value crossed 30 line and It increase during December 2011 and June 2013 which
indicate a buying signal.

51
 TABLE:4.9
CALCULATION OF RELATIVE STRENGTH INDEX OF MAHINDRA
AND MAHINDRA

Month Close Chance Advantag Decline Avera Avera RS RSI

price e ge ge
gain loss
Jan-11 712.05 0 0 0 - - - -
Feb-11 614.1 -97.95 0 0 - - - -
Mar-11 698.6 84.5 182.45 0 - - - -
Apr-11 753.8 55.2 0 182.45 - - - -
May-11 672.15 -81.65 0 0 - - - -
Jun-11 701.3 29.15 110.8 0 - - - -
Jul-11 718.25 16.95 0 110.8 - - - -
Aug-11 737.55 19.3 2.35 0 - - - -
Sep-11 802.55 65 45.7 0 - - - -
Oct-11 863.2 60.65 0 45.7 - - - -
Nov-11 723.85 -139.35 0 0 34.13 33.895 1.006933 50.17273
Dec-11 683.05 -40.8 98.55 0 43.985 33.895 1.297684 56.47791
Jan-12 672.85 -10.2 30.6 67.95 28.8 40.69 0.707791 41.44481
Feb-12 707.65 34.8 45 0 33.3 22.445 1.483627 59.7363
Mar-12 696.9 -10.75 0 45 33.3 26.945 1.235851 55.2743
Apr-12 710.15 13.25 24 0 24.62 26.945 0.913713 47.74556
May-12 651.7 -58.45 0 24 24.62 18.265 1.347933 57.40935
Jun-12 706.9 55.2 113.65 0 35.75 18.265 1.957295 66.18532
Jul-12 700.45 -6.45 0 113.65 31.18 29.63 1.052312 51.27446
Aug-12 765.15 64.7 71.15 0 38.295 25.06 1.528132 60.44511
Sep-12 864.5 99.35 34.65 36.5 41.76 28.71 1.454545 59.25926
Oct-12 884.25 19.75 0 34.65 31.905 32.175 0.991608 49.78933
Nov-12 944.85 60.6 40.85 0 32.93 25.38 1.297478 56.47402
Dec-12 930 -14.85 0 40.85 28.43 29.465 0.964874 49.10614
Jan-13 889.25 -40.75 0 0 28.43 24.965 1.138794 53.24469

52
Feb-13 873.7 -15.55 25.2 0 28.55 24.965 1.143601 53.34953
Mar-13 861.30 -12.4 3.15 22.05 28.865 24.77 1.165321 53.81747
Apr-13 924.10 62.8 75.2 0 25.02 24.77 1.010093 50.25105
May-13 967.55 43.45 0 75.2 25.02 20.925 1.195699 54.45642
Jun-13 970.60 3.05 0 0 17.905 20.925 0.855675 46.11125
Jul-13 911.40 -59.2 0 0 14.44 17.275 0.83589 45.53051
Aug-13 783.25 -128.15 0 0 14.44 13.81 1.045619 51.11504
Sep-13 827.45 44.2 172.35 0 27.59 13.81 1.997828 66.64251
Oct-13 887.85 60.4 16.2 156.15 29.21 25.34 1.152723 53.5472
Nov-13 945.25 57.4 0 16.2 29.21 26.96 1.083457 52.00285
Dec-13 944.2 -1.05 0 0 26.69 26.96 0.989985 49.74837
Jan-14 890.45 -53.75 0 0 26.375 24.755 1.065441 51.5842
Feb-14 973.45 83 136.75 0 32.53 24.755 1.314078 56.78624
Mar-14 980.65 7.2 0 136.75 32.53 30.91 1.05241 51.2768
Apr-14 1072.15 91.5 84.3 0 40.96 30.91 1.325137 56.99179
May-14 1230.5 158.35 66.85 17.45 47.645 32.655 1.459041 59.33375
Jun-14 1147.9 -82.6 0 66.85 47.645 39.34 1.211108 54.77381
Jul-14 1203.9 56 138.6 0 44.27 39.34 1.125318 52.94821
Aug-14 1406.8 202.9 146.9 0 57.34 23.725 2.41686 70.73336
Sep-14 1362.3 -44.5 0 146.9 57.34 36.795 1.558364 60.91252
Oct-14 1303.4 -58.9 0 0 57.34 36.795 1.558364 60.91252
Nov-14 1323.75 20.35 79.25 0 65.265 36.795 1.773746 63.94768
Dec-14 1234.5 -89.25 0 79.25 51.59 44.72 1.153623 53.56661
Jan-15 1263 28.5 117.75 0 63.365 31.045 2.041069 67.11683
Feb-15 1291.5 28.5 0 117.75 54.935 42.82 1.282929 56.19661
Mar-15 1187.15 -104.35 0 0 48.25 41.075 1.17468 54.01623
Apr-15 1145.15 -42 62.35 0 54.485 34.39 1.584327 61.3052
May-15 1260.2 115.05 157.05 0 56.33 34.39 1.637976 62.09215
Jun-15 1281.2 21 0 157.05 41.64 50.095 0.831221 45.39162
Jul-15 1361.8 80.6 59.6 0 47.6 35.405 1.344443 57.34594
Aug-15 1222.95 -138.85 0 59.6 47.6 41.365 1.150731 53.50419
Sep-15 1260.7 37.75 176.6 0 57.335 41.365 1.386075 58.09017
Oct-15 1182.5 -78.2 0 176.6 57.335 51.1 1.122016 52.87499
Nov-15 1367.25 184.75 262.95 0 71.855 51.1 1.406164 58.44008
Dec-15 1271.55 -95.7 0 262.95 71.855 65.62 1.095017 52.26769

53
 GRAPH:4.9
SHOWING OF RELATIVE STRENGTH INDEX OF MAHINDRA AND
MAHINDRA

ANALYSIS AND INTERPRETATION

 Normally RSI value above 70 is considered to denote overbought condition and value below
30 are considered to denote oversold situation.
 Here RSI value has crossed the 70 points in the month slept2014 there from its falling below
which is an overbought situation, so it indicates a sell signal.
 RSI valuedidn't follow the under 30 and it is near the 40 in the June 2012

54
 TABLE:4.10
CALCULATION OF RELATIVE STRENGTH INDEX OF ASHOK LEYLAND

Month Close Chance Advantage Decline Average Average RS RSI

price gain loss
Jan-11 58.95 0.00 0.00 0.00 - - - -
Feb-11 46.70 -12.25 0.00 12.25 - - - -
Mar-11 56.90 10.20 10.20 0.00 - - - -
Apr-11 53.05 -3.85 0.00 3.85 - - - -
May-11 51.10 -1.95 0.00 1.95 - - - -
Jun-11 48.65 -2.45 0.00 2.45 - - - -
Jul-11 51.05 2.40 2.40 0.00 - - - -
Aug-11 24.85 -26.20 0.00 26.20 - - - -
Sep-11 26.10 1.25 1.25 0.00 - - - -
Oct-11 27.25 1.15 1.15 0.00 - - - -
Nov-11 24.60 -2.65 0.00 2.65 1.50 4.94 0.30 23.31
Dec-11 22.75 -1.85 0.00 1.85 1.50 3.90 0.39 27.80
Jan-12 27.40 4.65 4.65 0.00 0.53 3.90 0.14 12.04
Feb-12 28.30 0.90 0.9 0.00 0.60 3.51 0.17 14.60
Mar-12 30.30 2.00 2 0.00 0.69 3.32 0.21 17.14
Apr-12 32.25 1.95 1.95 0.00 0.80 3.07 0.26 20.67
May-12 25.00 -7.25 0.00 7.25 0.40 3.80 0.11 9.54
Jun-12 24.95 -0.05 0.00 0.05 0.40 1.18 0.34 25.32
Jul-12 22.30 -2.65 0.00 2.65 0.19 1.45 0.13 11.71
Aug-12 20.70 -1.60 0.00 1.60 O.75 1.61 0.46 31.84
Sep-12 24.00 3.30 3.35 0.00 0.56 1.34 0.42 29.41
Oct-12 23.45 -0.55 0.00 0.60 0.56 1.22 0.46 31.48
Nov-12 28.35 4.90 4.90 0.00 1.18 1.22 0.97 49.24
Dec-12 26.95 -1.40 0.00 1.40 1.03 1.36 0.76 43.22
Jan-13 24.45 -2.50 0.00 2.50 0.92 1.61 0.57 36.35
Feb-13 22.25 -2.20 0.00 2.20 0.83 1.83 0.45 31.13
Mar-13 21.85 -0.40 0.00 0.40 0.83 1.14 0.72 41.98
Apr-13 22.80 0.95 0.95 0.00 0.92 1.14 0.81 44.77

55
May-13 23.75 0.95 0.95 0.00 1.02 0.87 1.17 53.85
Jun-13 20.10 -3.65 3.65 0.00 1.38 0.71 1.94 66.03
Jul-13 13.55 -6.55 0.00 6.55 1.05 1.37 0.77 43.36
Aug-13 12.00 -1.55 0.00 1.55 1.05 1.46 0.72 41.72
Sep-13 15.15 3.15 3.15 0.00 0.87 1.46 0.60 37.34
Oct-13 17.20 2.05 2.05 0.00 1.08 1.32 0.81 44.89
Nov-13 16.80 -0.40 0.00 0.40 1.08 1.11 0.97 49.20
Dec-13 17.25 0.45 0.45 0.00 1.12 0.89 1.26 55.72
Jan-14 16.45 -0.80 0.00 0.80 1.12 0.93 1.20 54.63
Feb-14 15.65 -0.80 0.00 0.80 1.03 1.01 1.01 50.37
Mar-14 23.70 8.05 8.05 0.00 1.74 1.01 1.72 63.21
Apr-14 22.25 -1.45 0.00 1.45 1.37 1.16 1.19 54.26
May-14 32.30 10.05 10.05 0.00 2.38 0.50 4.75 82.61
Jun-14 36.50 4.20 4.20 0.00 2.80 0.35 8.10 89.01
Jul-14 34.10 -2.40 0.00 2.40 2.48 0.59 4.24 80.91
Aug-14 38.75 4.65 4.65 0.00 2.74 0.59 4.68 82.41
Sep-14 41.10 2.35 2.35 0.00 2.98 0.55 5.46 84.52
Oct-14 46.35 5.25 5.25 0.00 3.46 0.55 6.34 86.38
Nov-14 52.35 6.00 6.00 0.00 4.06 0.47 8.72 89.71
Dec-14 51.35 -1.00 0.00 1.00 4.06 0.49 8.36 89.32
Jan-15 65.70 14.35 14.35 0.00 4.69 0.49 9.66 90.62
Feb-15 69.75 4.05 4.05 0.00 5.09 0.34 14.97 93.74
Mar-15 73.55 3.80 3.80 0.00 4.47 0.34 13.13 92.92
Apr-15 69.55 -4.00 0.00 4.00 4.05 0.74 5.47 84.54
May-15 71.45 1.90 1.90 0.00 4.24 0.50 8.47 89.44
Jun-15 72.50 1.05 1.05 0.00 3.88 0.50 7.75 88.57
Jul-15 84.50 12.00 12.00 0.00 4.84 0.50 9.68 90.64
Aug-15 90.55 6.05 6.05 0.00 4.92 0.50 9.84 90.77
Sep-15 92.20 1.65 1.65 0.00 4.49 0.50 8.97 89.97
Oct-15 93.65 1.45 1.45 0.00 4.63 0.40 11.58 92.05
Nov-15 94.50 0.85 0.85 0.00 3.28 0.40 8.20 89.13
Dec-15 88.00 -6.50 0.00 6.50 2.88 1.05 2.74 73.25

56
 GRAPH:4.10
SHOWING OF RELATIVE STRENGTH INDEX OF ASHOK LEYLAND

ANALYSIS AND INTERPRETATION

 Normally RSI value above 70 is measured to denote overbought condition and value below
30 are measured to denote oversold situation.
 Here RSI value has crossed the 70 points in the month June 2014 and July 2015 there from
its falling below which is an overbought situation, so it indicates a sell signal.
 Here RSI value has decreased below 30 points in the month of Dec 2011 and may , June
2012 there from it started to increase so its indicates buying signal.

57
 GRAPH:4.11
SHOWING OF RELATIVE STRENGTH INDEX OF FIVE YEARS

ANALYSIS AND INTERPRETATION

 The above the graph the hero motors initially slowly coming down and
later it increased to high and again decreased so we should be aware the
stock movements.
 The TVS motors initially same like hero it decreased later it increased to
slowly and same like hero again it decreased.
 The Maruti initially good and it more fluctuating we should be care full
while investing in Maruti.
 The Mahindra motors very fluctuating so we should be very careful to
invest in Mahindra motors.
 The Ashok Leyland is from initially it increased its good company to
long term invest

58
 RATE OF CHANGE
TABLE NO: - 4.11
CALCULATION OF RATE OF CHANGE OF HERO MOTORS
Date Close HERO MOTORS
Jan-11 1630.5 -
Feb-11 1464.95 -
Mar-11 1586.55 -
Apr-11 1709.65 -
May-11 1853.15 -
Jun-11 1877.75 15.16
Jul-11 1787.2 22.00
Aug-11 2047.85 29.08
Sep-11 1941.85 13.58
Oct-11 2175.7 17.41
Nov-11 2003.25 6.68
Dec-11 1905.25 6.61
Jan-12 1863.9 -8.98
Feb-12 1950.45 0.44
Mar-12 2054.85 -5.55
Apr-12 2234.9 11.56
May-12 1837 -3.58
Jun-12 2142.1 14.93
Jul-12 2005.7 2.83
Aug-12 2234.9 8.76
Sep-12 1879.3 -15.91
Oct-12 1878.95 2.28
Nov-12 1827.9 -14.67
Dec-12 1898.35 -5.35
Jan-13 1822.1 -18.47
Feb-13 1667.45 -11.27
Mar-13 1542 -17.93
Apr-13 1644.45 -10.04

59
May-13 1736.35 -8.53
Jun-13 1663.05 -8.73
Jul-13 1819.4 9.11
Aug-13 2046.5 32.72
Sep-13 2009.25 22.18
Oct-13 2078.4 19.70
Nov-13 2052.95 23.44
Dec-13 2075.3 14.07
Jan-14 1970.45 -3.72
Feb-14 1951.1 -2.89
Mar-14 2272.8 9.35
Apr-14 2145.2 4.49
May-14 2332.85 12.41
Jun-14 2627.2 33.33
Jul-14 2596.05 33.06
Aug-14 2602.54 14.51
Sep-14 2863.7 33.49
Oct-14 3061.6 31.24
Nov-14 3258.25 24.02
Dec-14 3150.85 21.37
Jan-15 2869.55 10.26
Feb-15 2670.35 -6.75
Mar-15 2642.6 -13.69
Apr-15 2329.45 -28.51
May-15 2696 -14.44
Jun-15 2524.35 -12.03
Jul-15 2674.45 0.15
Aug-15 2397.35 -9.28
Sep-15 2395.65 2.84
Oct-15 2625.75 -2.61
Nov-15 2702.75 7.07
Dec-15 2695.25 0.78

60
 GRAPH: 4.12
RATE OF CHANGE OF HERO MOTORS

ANALYSIS AND INTERPRETATION

 The above chart the lines indicates the ROC.
 In the above chart, scrip‘s ROC reaches the historic high value during June 2013 and
June , September 2014 the scrip is in overbought region & a fall in the value can be
anticipated. So in June 2013 and June , September 2014 the scrip can be sold.
 Similarly the scrip‘s ROC reaches the low value during April 2015, the scrip is in
oversold region & a rise in the scrip‘s price can be anticipated. So in April 2015, the
investor can buy the scrip.

61
 TABLE NO: - 4.12
CALCULATION OF RATE OF CHANGE OF TVS MOTORS
DATE CLOSING PRICE ROC
Jan-11 50.75 -
Feb-11 60 -
Mar-11 56.35 -
Apr-11 54.15 -
May-11 53.65 -
Jun-11 49.35 -2.76
Jul-11 55.3 -7.83
Aug-11 61 8.25
Sep-11 68.8 27.05
Oct-11 59.25 10.44
Nov-11 51.9 5.17
Dec-11 52.4 -5.24
Jan-12 47.2 -22.62
Feb-12 41 -40.41
Mar-12 41 -30.80
Apr-12 34 -34.49
May-12 36.45 -30.44
Jun-12 37.9 -19.70
Jul-12 39.15 -4.51
Aug-12 42.25 3.05
Sep-12 38.8 14.12
Oct-12 38.95 6.86
Nov-12 41.8 10.29
Dec-12 43.85 12.01
Jan-13 38.45 -8.99
Feb-13 32.3 -16.75
Mar-13 38.35 -1.54
Apr-13 35.9 -14.11
May-13 32.85 -25.09

62
Jun-13 31.15 -18.99
Jul-13 30.65 -5.11
Aug-13 36.85 -3.91
Sep-13 50.75 41.36
Oct-13 54.75 66.67
Nov-13 75.95 143.82
Dec-13 78.95 157.59
Jan-14 77.5 110.31
Feb-14 85.45 68.37
Mar-14 97.4 77.90
Apr-14 95.25 25.41
May-14 130.1 64.79
Jun-14 162.55 109.74
Jul-14 147.6 72.73
Aug-14 186.35 91.32
Sep-14 228.7 140.10
Oct-14 259.6 99.54
Nov-14 229.15 40.97
Dec-14 268.3 81.78
Jan-15 308.15 65.36
Feb-15 277.95 21.53
Mar-15 263.75 1.60
Apr-15 235.6 2.81
May-15 237.95 -11.31
Jun-15 243.75 -20.90
Jul-15 237.95 -14.39
Aug-15 223.45 -15.28
Sep-15 230.2 -2.29
Oct-15 265.45 11.56
Nov-15 306.9 25.91
Dec-15 290.2 21.96

63
 GRAPH:4.13
RATE OF CHANGE OF TVS MOTORS

ANALYSIS AND INTERPRETATION

 In the above chart the lines indicates the ROC.
 In the above chart, scrip‘s ROC reaches the high value during December 2013 and
November 2014 and in December 2013 and November 2014 the scrip can be sold.
 ROC reaches the low value during Feb 2012, the scrip is in oversold and in Feb 2012,
the investor can buy the scrip.

64
 TABLE NO: - 4.13
CALCULATION OF RATE OF CHANGE OF MARUTI SUZUKI FOR SIX
MONTHS PERIOD
DATE CLOSING PRICE ROC
Jan-11 1252.8 -
Feb-11 1206.7 -
Mar-11 1263.55 -
Apr-11 1319.75 -
May-11 1227.5 -
Jun-11 1158.45 -7.53
Jul-11 1207.9 0.10
Aug-11 1092.35 -13.55
Sep-11 1081.4 -18.06
Oct-11 1125.65 -8.30
Nov-11 968.65 -16.38
Dec-11 920.05 -23.83
Jan-12 1187.55 8.72
Feb-12 1256.25 16.17
Mar-12 1349.1 19.85
Apr-12 1369.9 41.42
May-12 1106.45 20.26
Jun-12 1169.75 -1.50
Jul-12 1133.05 -9.81
Aug-12 1138.55 -15.61
Sep-12 1349.9 -1.46
Oct-12 1436.25 29.81
Nov-12 1473.55 25.97
Dec-12 1488.95 31.41
Jan-13 1581 38.86
Feb-13 1354.35 0.33
Mar-13 1281.2 -10.80
Apr-13 1669.6 13.30

65
May-13 1065.6 -28.43
Jun-13 1537.75 -2.74
Jul-13 1326.3 -2.07
Aug-13 1243.55 -2.94
Sep-13 1358.55 -18.63
Oct-13 1636.2 53.55
Nov-13 1676.15 9.00
Dec-13 1763.9 32.99
Jan-14 1635.35 31.51
Feb-14 1586.3 16.76
Mar-14 1971.4 20.49
Apr-14 1918 14.43
May-14 2269.5 28.66
Jun-14 2438.35 49.10
Jul-14 2524.5 59.14
Aug-14 3784.35 91.96
Sep-14 3064.35 59.77
Oct-14 3242.15 42.86
Nov-14 3336.1 36.82
Dec-14 3328.3 31.84
Jan-15 3645.25 -3.68
Feb-15 3618.25 18.08
Mar-15 3699.25 14.10
Apr-15 3732.05 11.87
May-15 3785.45 13.74
Jun-15 4022.7 10.35
Jul-15 4330.4 19.68
Aug-15 4167.5 12.66
Sep-15 4689.3 25.65
Oct-15 4448.65 17.52
Nov-15 4576.5 13.77
Dec-15 4615.35 6.58

66
 GRAPH : - 4.14
CALCULATION OF RATE OF CHANGE OF MARUTI SUZUKI FOR SIX
MONTHS PERIOD

ANALYSIS AND INTERPRETATION

 The above chart the lines indicates the ROC.
 In the above chart, scrip‘s ROC reaches the high value during October 2014 scrip can
be sold.
 Similarly, scrip‘s ROC reaches the low value during Feb 2012 and July 2013, So in
Feb 2012 and July 2013, the investor can buy the scrip.

67
 TABLE NO: - 4.14
CALCULATION OF RATE OF CHANGE OF MAHINDRA AND
MAHINDRA FOR SIX MONTHS PERIOD
DATE CLOSING PRICE ROC
Jan-11 712.05 -
Feb-11 614.1 -
Mar-11 698.6 -
Apr-11 753.8 -
May-11 672.15 -
Jun-11 701.3 -1.51
Jul-11 718.25 16.96
Aug-11 737.55 5.58
Sep-11 802.55 6.47
Oct-11 863.2 28.42
Nov-11 723.85 3.22
Dec-11 683.05 -4.90
Jan-12 672.85 -8.77
Feb-12 707.65 -11.82
Mar-12 696.9 -19.27
Apr-12 710.15 -1.89
May-12 651.7 -4.59
Jun-12 706.9 5.06
Jul-12 700.45 -1.02
Aug-12 765.15 9.79
Sep-12 864.5 21.73
Oct-12 884.25 35.68
Nov-12 944.85 33.66
Dec-12 930 32.77
Jan-13 889.25 16.22
Feb-13 873.7 1.06
Mar-13 861.3 -2.60
Apr-13 924.1 -2.20

68
May-13 967.55 4.04
Jun-13 970.6 9.15
Jul-13 911.4 4.31
Aug-13 783.25 -9.06
Sep-13 827.45 -10.46
Oct-13 887.85 -8.24
Nov-13 945.25 -2.61
Dec-13 944.2 3.60
Jan-14 890.45 13.69
Feb-14 973.45 17.64
Mar-14 980.65 10.45
Apr-14 1072.15 13.43
May-14 1230.5 30.32
Jun-14 1147.9 28.91
Jul-14 1203.9 23.67
Aug-14 1406.8 43.46
Sep-14 1362.3 27.06
Oct-14 1303.4 5.92
Nov-14 1323.75 15.32
Dec-14 1234.5 2.54
Jan-15 1263 -10.22
Feb-15 1291.5 -5.20
Mar-15 1187.15 -8.92
Apr-15 1145.15 -13.49
May-15 1260.2 2.08
Jun-15 1281.2 1.44
Jul-15 1361.8 5.44
Aug-15 1222.95 3.02
Sep-15 1260.7 10.09
Oct-15 1182.5 -6.17
Nov-15 1367.25 6.72
Dec-15 1271.55 -6.63

69
 GRAPH : - 4.15
CALCULATION OF RATE OF CHANGE OF MAHINDRA AND
MAHINDRA FOR SIX MONTHS PERIOD

OVERSOLD

ANALYSIS AND INTERPRETATION

 In the above chart the lines indicates the ROC.
 In the above chart, scrip‘s ROC reaches the high value during July 2014 ,So in July
2014 the scrip can be sold.
 Similarly, scrip‘s ROC reaches the low value during Dec 2011 and may 2013, So in
Dec 2011 and may 2013, the investor can buy the scrip.

70
 TABLE NO: - 4.15
CALCULATION OF RATE OF CHANGE OF ASHOK LEYLAND FOR SIX
MONTHS PERIOD
MONTHS CLOSE PRICE ROC

Jan-11 58.95 -
Feb-11 46.7 -
Mar-11 56.9 -
Apr-11 53.05 -
May-11 51.1 -
Jun-11 48.65 -17.47
Jul-11 51.05 9.31
Aug-11 24.85 -56.33
Sep-11 26.1 -50.80
Oct-11 27.25 -46.67
Nov-11 24.6 -49.43
Dec-11 22.75 -55.44
Jan-12 27.4 10.26
Feb-12 28.3 8.43
Mar-12 30.3 11.19
Apr-12 32.25 31.10
May-12 25 9.89
Jun-12 24.95 -8.94
Jul-12 22.3 -21.20
Aug-12 20.7 -31.68
Sep-12 24 -25.58
Oct-12 23.45 -6.20
Nov-12 28.35 13.63
Dec-12 26.95 20.85
Jan-13 24.45 18.12
Feb-13 22.25 -7.29
Mar-13 21.85 -6.82
Apr-13 22.8 -19.58

71
May-13 23.75 -11.87
Jun-13 20.1 -17.79
Jul-13 13.55 -39.10
Aug-13 12 -45.08
Sep-13 15.15 -33.55
Oct-13 17.2 -27.58
Nov-13 16.8 -16.42
Dec-13 17.25 27.31
Jan-14 16.45 37.08
Feb-14 15.65 3.30
Mar-14 23.7 37.79
Apr-14 22.25 32.44
May-14 32.3 87.25
Jun-14 36.5 121.88
Jul-14 34.1 117.89
Aug-14 38.75 63.50
Sep-14 41.1 84.72
Oct-14 46.35 43.50
Nov-14 52.35 43.42
Dec-14 51.35 50.59
Jan-15 65.7 69.55
Feb-15 69.75 69.71
Mar-15 73.55 58.68
Apr-15 69.55 32.86
May-15 71.45 39.14
Jun-15 72.5 10.35
Jul-15 84.5 21.15
Aug-15 90.55 23.11
Sep-15 92.2 32.57
Oct-15 93.65 31.07
Nov-15 94.5 30.34
Dec-15 88 4.14

72
 GRAPH : - 4.16
CALCULATION OF RATE OF CHANGE OF ASHOK LEYLAND FOR SIX
MONTHS PERIOD

ANALYSIS AND INTERPRETATION

 In the above chart the lines indicates the ROC.
 In the above chart, scrip‘s ROC reaches the high value during May2014and in may
2014 the scrip can be sold.
 Similarly, scrip‘s ROC reaches the low value during July 2011,December 2011 and
July 2013in July 2011 ,December 2011 and July 2013, the investor can buy the scrip.

73
 CHAPTER-5
FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

The study has been conducted using stock prices of Hero MOTOCORP, TVS Motors, Maruti
Suzuki, Mahindra & Mahindra AND Ashok Leyland using technical analysis indicator for 5
year (2011 – 2015) study analyzed using 3 technical analysis indicators.

HERO MOTORS

 The Moving average graph of HERO MOTORS indicate a rising trend from Rs 1542
to Rs 3258.25 in the month of march 2013 to November 2014 and also in the month
of June 2013 the short term moving average intersecting with the long term moving
averagewhich indicates a buying signal. And the scrip price is falling in the month of
September 2012, and March 2015 because the short term moving average intersecting
with the long term moving average from above to falls below this indicating a sell
signal to investor.
 Relative strength index Here RSI value has crossed the 70 points in the month
November 2014 and there from its falling below which is an overbought situation, so
it indicates a sell signal. RSI value crossed the 30 point line during October 2015 and
June 2013 which indicate a buying signal.
 In the above chart scrip‘s ROC reaches the historic high value during June 2013 and
June , September 2014, So in June 2013 and June, September 2014 the scrip can be
sold. Similarly, scrip‘s ROC reaches the low value during April 2015, So in April
2015, the investor can buy the scrip.

TVS MOTORS

 The TVS motors price is showing growing trend from the month Jan 2013 Rs 32.3 to
Jan 2015 Rs 308.15and short term moving average was fluctuating month by month
and it was rising from September 2013 to June 2015. The short term moving average
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 intersects the long term moving average from the below to above which is indicating a
buy indication. The closing pricecurve decreases & the short term moving average
intersecting with the long term moving average from the above to falls below during
June 2015, it generates a sell signal to investor.
 Here RSI value has crossed the 70 points in the month June 2014 and there from its
falling below which is an overbought situation, so it indicates a sell signal. and RSI
value crossed the 30 line during July 2012 which indicate a buying signal.
 The TVS motors ROC reaches the historic high value during December 2013 and
November 2014,So in December 2013 and November 2014 the scrip can be sold.
Similarly, scrip‘s ROC reaches the low value during Feb 2012, So in Feb 2012, the
investor can buy the scrip.

MARUTI SUZUKI

 The Maruti Suzuki price is increasing from the month of May 2013 Rs 1065.6 to Aug
2014 Rs 3784.4& the Short term moving average intersects the Long term moving
average from the below to above during August 2012 and November 2013. which is
indicating a further rise in price and buying signal is generated.
 Relative strength index shows Here RSI value has crossed the 70 points in the month
slept 2014 and July 2015 there from its falling below which is an overbought
situation, so it indicates a sell signal. and RSI value crossed 30 line and It increase
during December 2011 and June 2013 which indicate a buying signal
 In the above chart, scrip‘s ROC extends to the high value during October 2014, So in
October 2014 the scrip can be sold. Similarly, scrip‘s ROC extends to the low value
during Feb 2012 and July 2013,So in Feb 2012 and July 2013, the investor can buy
the scrip.

MAHINDRA AND MAHINDRA

 The Mahindra and Mahindra price is increasing from the month of May 2012 to Aug
2014 Rs 1406 and it decreasing further and the short term moving average
intersecting with the long term moving average from the above to falls below during
Aug 2013. So it generates a sell signal. And there will be further fall in price due to
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 increased selling pressure and distress selling. The average price is showing growing
trend & the short term moving average intersects the long term moving average from
the below to above during July 2012 and November 2013 which is indicating a further
rise in price and buying signal is generated
 Relative strength index shows Here RSI value has crossed the 70 points in the month
slept2014 there from its falling below which is an overbought situation, so it
indicates a sell signal. and RSI value didn't follow the under 30 and it is near the 40
in the June 2012
 ROC extends to the high value during July 2014,So in July 2014 the scrip can be sold.
Similarly, scrip‘s ROC extends to the low value during Dec 2011 and May 2013, So
in Dec 2011 and May 2013, the investor can buy the scrip.

ASHOK LEYLAND

 The Ashok Leyland price is from the initial stage itsdecliningfrom month of May
2011 Rs 56.9 to Aug 2013 Rs 12 again it increased from this month to October 2015
Rs 94.4 and the short term moving average intersecting with the long term moving
average from the above to falls below during December 2012. So it generates a sell
signal. And there will be further fall in price due to increased selling pressure and
distress selling. The average scrip price is showing growing trend & the short term
moving average intersects the long term moving average from the below to above
during March 2014. which is indicating a further rise in price and buying signal is
generated.
 Relative Strength Index shows a RSI value has crossed the 70 points in the month
June 2014 and July 2015 there from its falling below which is an overbought
situation, so it indicates a sell signal. and Here RSI value has decreased below 30
points in the month of Dec 2011 and may , June 2012 there from it started to increase
so its indicates buying signal
 In the above chart, scrip‘s ROC extends to the high value during May 2014,So in may
2014 the scrip can be sold. Similarly, scrip‘s ROC extends to the low value during
July 2011 ,December 2011 and July 2013 , So in July 2011 ,December 2011 and July
2013, the investor can buy the scrip.

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 SUGGESTIONS

It is very difficult for an investor to select any scrip for investment in stock market. Before
investing, the investor should go for a detailed study of the scrip,

1. 1The stock prices of Hero Motors Showing upward trend and it is recommended to
buy shares of hero Motors at Rs.1950 and sell the stock around Rs.2550

2. The stock prices of TVS Motors Showing upward trend and it is recommended to
buy shares of TVS Motors at Rs.110 and sell the stock around Rs.260

3. The price behavior of Maruti Suzuki India Ltd is highly volatile in nature. So for long
term investors it is recommended to buy at low price and sell it when the prices go
up. An investor should buy stocks of Maruti Suzuki India Ltd at Rs.2100 and sell at
Rs.4530. Short term investors should buy the share and sell it as soon as the prices
increase because Maruti Suzuki stock is fluctuating in nature.

4. The price behavior of Mahindra & Mahindra Ltd has an upward trend. So it is good
for the investors to buy the shares and hold it for long term. An investor should buy
stocks of Mahindra & Mahindra Ltd at Rs.835 and sell at Rs.1254

5. The price behavior of Ashok Leyland is so volatile in nature the investor should buy
stock around Rs. 25 and should sell stock above Rs. 80.

6. The investors recommended to invest in a particular stock in the beginning of upward

trend and when the stock price line moves above the moving average line, and exit
when the stock price line in the beginning has a downward trend or falls below the
moving average line

7. In the basis of moving average chart pattern, it is good for an investor to invest while
the short term and long term moving averages intersects each otherThe investors can
make use of ROC chart to find out the overbought and oversold situations and also to
make decision on whether to invest or not.An investor can determine the timing of
stock market entry and exit by analyzing the Relative Strength Index chart.The
investors can also use more number of charts which will depict a true picture on the
movement of the securities

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 CONCLUSION

Technical analysis is a plan which gives a suggestion just about future share price ranges of
chosen organizations wherein we invest .On the basis of the understanding of technical
analysis anybody can forecast the better investment decision of the stock exchange . By
utilizing the technical indicators the future market of securities would be known wherein to
make investments . To understand the more correct forecast of stock price ranges of chosen
organizations , the shareholder has to carry out fundamental analysis of stock price ranges
and thus forecast the future tendency of stock prices . On the basis of forecast of 5
organizations i .e . HERO MOTOCORP , TVS MOTORS , MARUTI SUZUKI
,MAHINDRA AND MAHINDRA , ASHOK LEYLAND different pattern of stock prices of
those organizations provide a solid idea of future trend of those organizations could be
analyzed with the correct technical analysis tools . Technical analysis is of greatest
importance to forecast trend of short and medium term price movement & assist the traders to
choose the correct strategy & decisions to invest in the remunerative stocks . The technician
also needs a fundamental understanding , which might clear an idea relating to the investment
decision

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 BIBLIOGRAPHY:

Books Referred:
 Technical analysis of stock trends, 9th Edition, Robert D, Edwards, and John Magee.
 Technical analysis of stock trends by Martin Pring.
 Prasanna Chandra, Security Analysis and Portfolio management.
 Financial Markets and Services- Gordon E and Nataraj. K, Himalaya Publishing House.
 Security Analysis and Portfolio Management- Punithavathypandian, 1stdition,Vikas
Publications.

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