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Equity Research Using Technical Analysis

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

Equity Research Using Technical Analysis

Varshini Venu1, Dr. Bhavya Vikas2, Charithra C M3
1
MBA 2nd year, BNM Institute of Technology, Bangalore, Karnataka, India
2
Associate Professor, BNM Institute of Technology, Bangalore, Karnataka, India
3
Assistant Professor, BNM Institute of Technology, Bangalore, Karnataka, India

Abstract:- Technical analysis is a financial market technique that movement. Stock price changes in stock market depends on
claim the ability to forecast the future direction of stock through the demand and supply in stock market. In this various tools
the study past market data, price movement patterns, price and are used to calculate technical analysis and technique are
volume correlation; these data are widely used by traders. available to analysis the stock price which can help the
Technical analysis also considers the actual price and volume
investor to make right decision regarding to buy or sell the
behaviour of the market or instruments on the assumption that
price and volume are two most relevant factors in determining stock in stock exchange at right time to earn maximum return.
the future direction and behaviour of a particular stock or There are two method of analyzing stock in the security
market. The investor will have the question in mind that in market are fundamental analysis and technical analysis. The
trading period which stock should be buy, how much to be buy
and when to sell or to hold for future date to gain the maximum
fundamental information are in financial and nonfinancial
profit. So this research helps in making appropriate discussion aspect of the business and focuses on actual price movement
for short term traders. This study aims to analyse the trends of may use. The technical analyst assumes that 90%of
stock price movement of twelve companies from three different psychological and 10% logical to predict. Technical analysis
sectors during the year 2018-19. is a method of evaluating the market activity such as past
price and volume.
Key Words: Technical analysis, relative strength index, rate of
change, simple moving average The study of technical analysis of selected companies will
I. INTRODUCTION help to predict the future by understanding the intrinsic value
of share. Further it will help in understanding the price

T he method of studying is to analyse securities and

investment decision will follows two categories:
Fundamental analysis and technical analysis. In fundamental
behaviour of the shares. The signal represents the major
turning point to the market price.

analysis it analysis the company value theoretically for the II. LITERATURE REVIEW
purpose of long term investment and also analysis the Dr. Pallavi, 2000: The study is concern to know the different
economy, industry and company based information in detail. systems are government, private and banking institution. The
But in technical analysis it will only studies the demand and RBI controlling body of banking sector in India. It has
supply in a market. The main aim is study the technical changes the banking business after 1969 and the demand got
indicator by was various database. It focuses on short term increased on the customer value and customer based.
investment as intraday trading where the trading should be
done within a day. Technical analysis will use various tool to Christopher Neely and Paul Weller 2002: The study is
predict market activity and by the support of chart it will analysed or estimates the profitability through trading in
represent the data to identify the pattern of future activity. exchange rate market. To identify the profitability has used
Technical analysis will help the investor to evaluate strength the statistical tool for predict the issues regarding stock. These
and weakness of the securities. help the investor to analysis the price of share in market.

Need of the Study: Aronson, David R 2006: The study on approach of simple
testing to determine the historical price of the industry and
This study involves technical analysis method to analyze the also their strategy to adapt to measuring their forecasting of
stock, with the help of technical tool are simple moving statistics. The analysis is take by specialists should focus on
average like 7days and 12days and also ROC, RSI it will help unbiased of price pattern and strategies that can be tested.
to analysis the day trader and short term investor to make right
decision to invest the money in stock which is comparing the Lukas Menkhoff, Mark P Taylor 2006: This study are set up
price movement with the help of above technique. These tools on the facts which used to analysis both Indian and foreign
are used to check daily price movement in stock market. exchange market for the constant period of time for estimate
positive returns on their stocks.
Technical Analysis:
Lo Andrew W, Mamaysky, Harry 2007: The study on
Technical analysis helps to analysis the historical price empirical distribution which has been used different method is
movement in stock market to predict the future share price conditional and nonconditional analysis of indication for

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

period of 31 years of sample taken to the measure of their Varathan N &Tamilenthi, 2012: the study is concerned about
statistics by technical pointer provide information about the the analysis of past present and future price of market
specific value which can help to increase the profit. condition through technical analysis. It shows clear picture
about the future gain and losses effect closer to make control
Deepti Narwhal 2007: The study is concerned about both
on the trading activities. The main aim to reduce the risk in
fundamental and technical analysis of the stock price. Both
long term investment which can make more profit and return.
the fundamental and technical analysis provides details about
the sell and buy signal to calculate profitability decision in Archana Mishra2012: It would be depend on both
trade market. In technical analysis has focus on the short term fundamental and technical analysis which indicates the trading
investment. and other one indicate the technique adapted to analysis of
their trading stocks. It has used diverse method of techniques
Suresh A.S 2010: The study that researcher are finding the
to measure the value in this research paper.
way of identify stock which are suitable for investment
decision. This research used different type of analysis which MohdNaved 2012: The study has been used to analyse the
is required to make investment. It will analysis the pattern of technical analysis to evaluate the market nifty stock of India,
volume and the strategy of the investor to gain more return. they are used to examine the average moving of stocks in nifty
market to know profit from their trading. The measures which
Matthew C. Roberts 2010: It research that supports the
have been used in this study are Moving Averages, Moving
usefulness of technical analysis and the stock market that
Averages cross rules and Moving Averages
spread across the Indian markets. They are mechanically
Convergence/Divergence. Later this study also includes the
generated from simple arithmetic operators; they are free of
usage and application of Moving Average on Nifty stocks.
the data snooping bias common in technical analysis research.
It may capable of strong and weak significant analysis of Hemalatha, 2013: the study is conducted about the equity
market through the economic analysis of investor. holding in canara bank. To know the price movement in
market they were used future analysis trend which may collect
AsifUllah Khan and Dr.Bhupesh 2011: Selections of stocks
data from secondary information. The research analysis the
that are suitable for investment are always a complex task.
price movement of company and compare between the market
The main aim of every investor is to identify a stock that has
price in future.
potential to go up so that the investor can maximize possible
returns on investment. There are many conventional Jayakumar&Sumathi, 2013: In this research the banking
techniques being used and these include technical and company are spread across the country to make their affects
fundamental analysis. The main issue with any approach is the the share market. It will analysis the share price through trend
proper weighting of criteria to obtain a list of stocks that are analysis for price movement and also gives information about
suitable for investments. the trend.
R Chitra2011: The study of research are made on analysis the 19. RajatSingla 2014: In this study the researcher was use
technical basis of stock market which help to understand value two different tools are relative strength index and exponential
of share which shows the undervalue and overvalue indicator. moving average and then there was take decision regarding
The investor will able to analyse the turning point in which market stocks. Conclusion of the study claims that the markets
stage it be invest. can be predicted if proper and timely decisions are taken by
using EMA and RSI. Key Words: - RSI, EMA, Brock t
Venkatesh&Tyagi 2011: The study is based on both technical
statistics, Alpha ratio, Sharpe ratio.
and fundamental analysis which helps the investor to predict
the stock market in future forecasting and changes happens in Sahana Jaen, Afghan Jabeen 2017: The main objective of this
market on the price at particular time where future price paper is to identify the performance of pharmaceutical‟s stock
movement are shown. which is listed in National Stock Exchange (NSE) and risk
involvement has been predicted on account of applied
Dr. Ayyappan& Mr. Sakthivadivel, 2012: The study is on the
technical indicators. It would be researcher who make analysis
private investment sector are increasing their service area and
of day to day earn if their potential investor which the price
product into different part of country and there are actual
factors are fluctuate day to day in the market. This attempt to
competition to public sector bank. The study analysed that
know each stock in NSE and their average moving price per
development and movement of certain financial parameter of
day.
public and private bank sector.
III. OBJECTIVES OF THE STUDY
Sudheer V, 2012:The technical analysis is study of forecasting
the price of securities for the future the main objective of  To identify the trend of the stock prices of selected
technical analysis is to produce incomes by letting person companies which are listed in NSE by using
decide when to enter and exit the security market. When Technical Analysis.
bottom line represent buying signal and high peak line
represent selling and considerable amount of profit.

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186
2454

 To analyse price movements of 1years data in 3 Analysis and Interpretation:

different sectors by using Relative Strength Index,
Simple Moving Average, Rate of changes.  In the above chart the closing price, SMA for 7days
 To study the importance of technical analysis in and SMA for 12days trend have been moved in same
Indian stock market. direction till 7months.
 To assist the investors in making investment decision  7 days SMA crosses above the 12days SMA from
based on the line chart indicator. September, November and December which shows
the buying signal.
IV. ANALYSIS AND INTERPRETATION
 In above chart 7days SMA has crossed below the
Information Technology:: In Indian the IT Sector plays a 12days SMA during October which shows the selling
major role in growth of economy. This sector contributes 7.7% signal.
of GDP to the economy. IT industry policy has changed the
standard of living for the common people. Most of IT
companies are set up in urban areas.
The top IT companies are considered for analysis, they are:
1. TCS
2. WIPRO
3. INFOSYS
4. TECHMAHINDRA
1. Tata Consultancy Services (TCS):
SMA SMA
Date closing price ROC RSI
7DAY 12DAYS
01-01-18 1469.96 1345.73 1348.96 0.03 78.61
01-02-18 1502.28 1488.34 1416.67 -0.01 63.24
01-03-18 1441.04 1497.41 1472.24 -0.02 48.34
01-04-18 1640.27 1482.64 1510.00 0.04 72.41 Graph: 4.1.2
01-05-18 1751.21 1684.80 1591.78 0.00 76.52 Analysis and Interpretation:
01-06-18 1811.18 1760.91 1700.04 0.02 71.95
 ROC indicates the overbought and oversold region.
01-07-18 1222.77 1202.06 1215.67 0.01 54.14  In above chart ROC indicate August month it is
01-08-18 2031.81 1977.46 1915.00 0.01 78.23 overbought and October month is in oversold region.
01-09-18 6585.53 2039.23 2376.72 2.25 79.28  Head shoulders are from August and reverse head
and shoulder on October
ctober time.
01-10-18 1929.29 5290.93 3526.89 -0.20 46.07
01-11-18 1894.15 1904.37 3478.42 0.01 46.12
01-12-18 1930.73 1918.04 2527.73 -0.01 46.27

Table: 4.1

Graph: 4.1.3

Graph: 4.1.1

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

Analysis and Interpretation: 01-03-18 574.79 570.55 559.87 -0.01 65.91

 In RSI research have board rule that if RSI is below 01-04-18 578.94 574.76 571.78 0.01 62.29
30 to buy and if RSI is above 70 to sell the securities. 01-05-18 596.91 584.61 580.24 0.01 69.55
 During January, May, August and September the RSI 01-06-18 635.81 608.58 595.75 0.02 76.87
across above the 70 its time tosell.
01-07-18 668.73 644.83 624.97 0.01 74.74
 During October, November and December the RSI is
less it is the time to buy. 01-08-18 629.40 639.31 636.63 0.10 47.20

2. WIPRO: 01-09-18 725.46 678.62 666.81 0.00 58.20

01-10-18 676.56 707.39 685.27 -0.02 48.53
SAM 12
Date closing price SMA ROC RSI
DAYS 01-11-18 649.64 665.46 688.24 0.00 44.89
01-01-18 313.97 305.50 300.32 -0.01 63.10 01-12-18 668.46 660.32 667.91 0.00 50.47
01-02-18 290.88 305.40 301.49 -0.01 41.92
01-03-18 286.65 291.43 300.90 -0.01 41.25 Analysis and Interpretation:
01-04-18 284.44 287.42 291.97 -0.01 44.02  Blue line is closing price, brown line is 7days SMA
01-05-18 266.69 278.39 283.09 -0.01 32.42 and green line is 12days SMA.
01-06-18 262.66 265.89 274.98 0.00 35.08  In this 7days SMA is across above the 12days SMA
01-07-18 275.83 267.36 269.21 0.01 54.44 from January to October which represent buying
signal.
01-08-18 288.08 279.03 271.93 0.02 65.70
 In November and December the 7days SMA is
01-09-18 328.53 301.59 288.03 0.02 80.97
across below the 12days SMA which represent
01-10-18 320.75 323.04 306.69 0.00 63.27 selling signals.
01-11-18 320.70 321.03 320.31 0.01 57.51  ROC indicates the overbought and oversold region.
01-12-18 328.60 324.15 323.54 0.00 57.88  The high value represent overbought and low value
represent oversold region.
Table: 4.2
 During January and August ROC is over bought.
Analysis and Interpretation:  During March and October ROC is oversold.
 SMA analysis the buying and selling signal by using  In RSI research have board rule that if RSI is below
the 7days moving average and 12days moving 30 to buy and if RSI is above 70 to sell the securities.
average.  RSI is above 70 in the month of January, June, and
 If 7 days moving average is across the above the 12 July to sell the securities.
days it is buying signal and below means selling RSI has fewer prices in November can buy the securities.
signal.
 In this 7days moving average is above 12days from 4. TECHMAHINDRA:
January to June it is buying signal. Date closing price
SMA 7 SAM 12
ROC RSI
 From July to December the 12days moving average DAYS DAYS
is above the 7days SMA means the selling signal. 01-01-18 569.40 520.69 505.01 0.04 81.67
 ROC shows the overbought and oversold region. 01-02-18 603.24 581.40 547.88 0.00 71.35
 In this year from June to September of ROC is 01-03-18 628.99 612.86 589.21 0.01 71.84
overbought region.
01-04-18 664.68 640.98 625.66 0.01 67.43
 From February to May the ROC is oversold region
 In RSI research have board rule that if RSI is below 01-05-18 690.83 674.13 654.89 0.01 68.38
30 to buy and if RSI is above 70 to sell the securities. 01-06-18 690.20 691.78 679.51 -0.02 61.33
 In September the RSI is time to sell it are greater 01-07-18 648.65 670.23 677.56 0.00 42.54
than70.
01-08-18 704.50 663.12 672.17 0.04 62.41
 In May is the less price of the RSI to buy the
securities. 01-09-18 754.05 721.01 691.75 -0.01 68.43
01-10-18 688.66 726.97 714.68 -0.01 42.32
3. INFOSYS:
01-11-18 707.99 696.29 717.01 0.01 52.01
SMA SAM 12
Date closing price ROC RSI
7DAYS DAYS 01-12-18 699.46 701.97 699.98 -0.01 48.91
01-01-18 550.90 520.59 504.13 0.02 72.34
Table: 4.4
01-02-18 564.73 557.07 535.90 0.00 65.66

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

Analysis and Interpretation: the 7days moving average and 12days moving
average.
 SMA analysis the buying and selling signal by using
 During August to December the 7days SMA is above
the 7days moving average and 12days moving
the 12days SMA it is buying signal.
average.
 ROC indicates the overbought and oversold region.
 7days SMA is above the 12days SMA from January
 The high value represent overbought and low value
to June and in October which show the buying
represent oversold region.
signal.
 During May, August, October and December of ROC
 From July, August and November are indicating
is overbought region.
selling signal.
 During March, April and September of ROC is
 ROC indicates the overbought and oversold region.
oversold region.
 The high value represent overbought and low value
 In RSI research have board rule that if RSI is below
represent oversold region.
30 to buy and if RSI is above 70 to sell the securities
 During May and August of ROC is overbought
 The value are below the 30 there can only buy and
region.
hold for future to sell.
 During June, September and November of ROC is
oversold region. 2. HDFC Bank:
 In RSI research have board rule that if RSI is below SMA SAM 12
30 to buy and if RSI is above 70 to sell the securities. Date closing price ROC RSI
7DAYS DAYS
 From January to April the RSI is above 70 it time to 01-01-18 1920.81 1881.19 1861.41 0.01 72.27
sell. 01-02-18 1870.75 1905.91 1888.43 -0.01 47.36
Banking Sector: 01-03-18 1857.93 1874.49 1888.30 0.00 44.73
01-04-18 1943.24 1892.93 1891.50 0.01 65.87
It is a financial institution which provide services to company.
It will devote the economy by holding financial asset for 01-05-18 2035.67 1971.05 1928.75 0.02 76.15
other. It is also one of the major sectors in stock market. The 01-06-18 2067.69 2036.45 1993.48 0.00 65.73
most of the investor are investing on bank share. 01-07-18 2161.78 2109.92 2070.27 0.00 73.52

The few banks are taken as follows: 01-08-18 2080.71 2136.56 2112.28 -0.01 46.37
01-09-18 2015.71 2067.34 2103.65 -0.01 34.07
1. ICICIBANK
01-10-18 1965.11 1996.91 2038.36 -0.01 32.17
2. HDFCBANK
3. SBI 01-11-18 2020.91 1976.06 1992.14 0.02 52.28
4. PUNJAB NATIONALBANK 01-12-18 2110.97 2057.17 2020.56 0.00 67.86

1. ICICI Bank: Table: 4.6

SMA SAM 12 Analysis and Interpretation:

Date closing price ROC RSI
7DAYS DAYS
01-01-18 336.02 319.38 316.58 0.01 24.31  SMA analysis the buying and selling signal by using
the 7days moving average and 12days moving
01-02-18 318.88 332.55 323.67 -0.02 1.16
average.
01-03-18 289.76 311.68 320.31 -0.02 3.04  In this 7days moving average is above 12days from
01-04-18 283.46 288.03 302.63 0.01 8.82 May to August it is buying signal.
01-05-18 293.89 287.13 289.11 0.01 17.40
 From September to November the 12days moving
average is above the 7days SMA means the selling
01-06-18 290.18 291.60 288.12 0.00 9.05 signal.
01-07-18 274.44 282.84 286.67 0.00 8.76  ROC indicates the overbought and oversold region.
01-08-18 325.94 292.31 290.33 0.03 27.47  The high value represent overbought and low value
represent oversold region.
01-09-18 330.79 325.42 305.45 -0.01 8.38
 During, March, May and November of ROC is
01-10-18 312.67 321.64 319.50 0.00 6.46 overbought region.
01-11-18 357.73 329.56 328.73 0.03 27.88  During February, September and October of ROC is
01-12-18 354.84 352.71 338.75 0.00 10.12 oversold region.
 In RSI research have board rule that if RSI is below
Table: 4.5 30 to buy and if RSI is above 70 to sell the securities
Analysis and Interpretation:  RSI high the value above 70 from May, June and
September it indicate to sell.
 SMA analysis the buying and selling signal by using

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

3. State Bank of India: 01-11-18 71.61 68.26 71.30 0.00 47.59

SMA 7 SAM 12 01-12-18 74.95 71.65 69.60 0.03 55.94
Date closing price ROC RSI
DAYS DAYS
01-01-18 305.67 311.06 315.92 -0.01 48.93 Table: 4.8

01-02-18 276.56 297.26 304.03 -0.03 30.51 Analysis and Interpretation:

01-03-18 247.56 268.78 284.61 -0.01 22.82  SMA analysis the buying and selling signal by using
01-04-18 247.28 249.88 262.78 -0.01 35.41 the 7days moving average and 12days moving
01-05-18 255.71 247.99 249.42 0.03 48.58 average.
01-06-18 270.72 260.62 255.04 -0.01 58.36  From January to December the 12days moving
average is above the 7days SMA means the selling
01-07-18 272.49 267.59 261.75 0.03 57.01
signal.
01-08-18 304.15 284.70 277.99 0.01 75.16  ROC indicates the overbought and oversold region.
01-09-18 279.60 296.16 285.34 -0.04 45.03  The high value represent overbought and low value
01-10-18 263.33 272.84 283.58 0.02 37.56 represent oversold region.
01-11-18 285.38 271.69 275.50 0.00 57.10  During July and October a of ROC is overbought
region.
01-12-18 289.79 284.73 276.81 0.01 58.48
 During February and September of ROC is oversold
Table: 4.7 region.
 In RSI research have board rule that if RSI is below
Analysis and Interpretation: 30 to buy and if RSI is above 70 to sell the securities
 SMA analysis the buying and selling signal by using  In March the RSI value is 30 which indicate to buy.
the 7days moving average and 12days moving Automobile sector:
average.
 In this 7days moving average is above 12days from Indian Automobile industry is known as 4thlargest which
June to August it is buying signal. increasing sales at 9.5% in the world. By this foreign direct
 From January to April the 12days moving average is investment are been started investing in this sectors. It has
above the 7days SMA means the selling signal. contributed GDP growth rate of 7%. Automobiles industry is
 ROC indicates the overbought and oversold region. also supporting Indian economy and known as best
 The high value represent overbought and low value manufacturing sector in the world.
represent oversold region. The few companies are taken for analysis, they are:
 During May to August, October and December of
ROC is overbought region. 1. TATA Motors
2. Mahindra and Mahindra
 During March and September of ROC is oversold
3. Maruti Suzuki
region.
4. Hero Motocarp
 In RSI research have board rule that if RSI is below
30 to buy and if RSI is above 70 to sell the securities 1. Tata Motors:
 In august the RSI value is 70 which indicate to sell. SMA 7 SAM 12
 In March the RSI value is 30 which indicate to buy. Date closing price ROC RSI
DAYS DAYS
01-01-18 414.16 419.75 420.77 -0.02 46.94
4. Punjab National Bank:
01-02-18 367.61 396.18 405.29 -0.01 27.87
SMA 7 SAM 12
Date closing price ROC RSI 01-03-18 334.74 359.09 383.19 -0.03 21.95
DAYS DAYS
01-01-18 173.87 174.29 178.94 -0.01 52.68 01-04-18 345.69 343.96 355.22 0.01 40.67
01-02-18 123.96 159.01 165.21 -0.11 21.71 01-05-18 304.19 331.00 336.30 -0.04 24.19
01-03-18 95.73 117.56 140.92 -0.01 16.61 01-06-18 297.55 306.28 321.57 -0.01 35.13
01-04-18 96.40 97.55 112.26 -0.01 26.10 01-07-18 262.89 281.72 294.68 -0.01 27.59

01-05-18 82.46 90.96 93.91 -0.02 24.04 01-08-18 257.84 259.84 273.56 0.01 35.41

01-06-18 84.59 84.94 89.59 -0.02 36.64 01-09-18 254.51 260.51 262.35 -0.04 39.51

01-07-18 79.30 80.83 82.77 0.03 37.95 01-10-18 186.70 226.49 240.49 -0.03 19.94

01-08-18 85.16 81.34 82.11 0.00 50.93 01-11-18 182.41 185.69 212.02 -0.02 31.57
01-12-18 169.48 175.66 181.97 0.00 32.75
01-09-18 74.94 83.18 81.19 -0.09 35.92
01-10-18 66.31 71.25 76.79 0.03 34.51 Table: 4.9

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Analysis and Interpretation: region.

 During February, October and December of ROC is
 SMA analysis the buying and selling signal by using
oversold region.
the 7days moving average and 12days moving
 In RSI research have board rule that if RSI is below
average.
30 to buy and if RSI is above 70 to sell the securities
 From January to Dec ember the 12days moving
 In August the RSI value is 70 which indicate to sell.
average is above the 7days SMA means the selling
signal.  In October the RSI value is 30 which indicate to buy.
 ROC indicates the overbought and oversold region.
3. Maruti Suzuki:
 The high value represent overbought and low value
represent oversold region. Date closing price
SMA 7 SAM 12
ROC RSI
 During April, August of ROC is overbought region. DAYS DAYS
 During March, May to July and September to 01-01-18 9197.60 9375.76 9044.72 -0.01 59.77
December of ROC is oversold region. 01-02-18 8767.45 9035.55 9196.84 -0.01 40.63
 In RSI research have board rule that if RSI is below
30 to buy and if RSI is above 70 to sell the securities 01-03-18 8837.78 8777.19 8975.53 0.02 47.91
 In January the RSI value is 70 which indicate to sell. 01-04-18 8872.16 8890.47 8858.53 -0.01 48.38
 In October the RSI value is 30 which indicate to buy.
01-05-18 8700.10 8771.96 8804.25 0.01 44.93
2. Mahindra & Mahindra:
01-06-18 8992.40 8795.33 8837.38 0.01 57.87
SMA SAM 12
Date closing price ROC RSI 01-07-18 9295.13 9141.38 8965.57 0.00 63.78
7DAYS DAYS
01-01-18 763.46 745.59 726.79 0.01 73.21 01-08-18 9032.88 9213.24 9135.73 -0.01 46.21
01-02-18 736.25 755.05 746.57 -0.01 48.50 01-09-18 7729.79 8681.60 8930.95 -0.06 13.65
01-03-18 735.26 738.19 747.55 0.00 49.43 01-10-18 7035.98 7457.29 8106.64 0.01 26.51
01-04-18 815.61 762.50 754.47 0.03 77.11
01-11-18 7431.96 7161.73 7427.91 0.00 44.41
01-05-18 866.10 832.82 794.44 0.01 73.58
01-12-18 7451.80 7457.44 7285.44 0.00 46.36
01-06-18 906.75 880.32 847.87 0.00 75.70
Table: 4.11
01-07-18 914.38 908.12 889.95 0.01 68.65
Analysis and Interpretation:
01-08-18 960.26 928.53 919.06 0.01 79.92
 SMA analysis the buying and selling signal by using
01-09-18 936.61 953.59 936.70 -0.03 59.25 the 7days moving average and 12days moving
01-10-18 758.20 860.49 897.80 -0.02 19.88
average.
 In this 7days moving average is above 12days from
01-11-18 774.96 767.29 830.04 0.00 37.36 July and august it is buying signal.
01-12-18 757.73 764.20 768.99 -0.01 42.88
 From September to December the 12days moving
average is above the 7days SMA means the selling
Table: 4.10 signal.
 ROC indicates the overbought and oversold region.
Analysis and Interpretation:
 The high value represent overbought and low value
 SMA analysis the buying and selling signal by using represent oversold region.
the 7days moving average and 12days moving  During March, May, June of ROC is overbought
average. region.
 In this 7days moving average is above 12days from  During September of ROC is oversold region.
April to August it is buying signal.  In RSI research have board rule that if RSI is below
 From September to December the 12days moving 30 to buy and if RSI is above 70 to sell the securities
average is above the 7days SMA means the selling  In august the RSI value is 70 which indicate to sell.
signal.  In September the RSI value is 30 which indicate to
 ROC indicates the overbought and oversold region. buy.
 The high value represent overbought and low value
represent oversold region.
 During March, May, August, of ROC is overbought

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

4. Hero Motocorp: 5. In Automobile sector Maruti Suzuki and Mahindra

SMA 7 SAM 12
and Mahindra showing good opportunities to long
Date closing price ROC RSI term investor can gain more by holding the stock.
DAYS DAYS
01-01-18 3643.28 3666.56 3655.98 -0.01 45.53 6. Technical analysis provide clear picture of stock
movement by which trader can make the decision for
01-02-18 3527.98 3596.69 3621.72 0.00 37.91
earn profit.
01-03-18 3522.25 3538.34 3589.28 0.00 42.04 7. By analysis of chart line investor can think about the
01-04-18 3724.26 3614.01 3586.28 0.01 59.74 short term and long term investment in market. 8.
More buyer quantity reflect the high demand of stock
01-05-18 3614.63 3676.13 3626.91 0.00 47.34
and give signal that stock price will go up and
01-06-18 3610.00 3629.26 3654.37 -0.01 47.95 similarly high quantity of seller will give signal that
01-07-18 3384.89 3538.28 3580.36 -0.01 36.32 stock price will come down.
01-08-18 3256.95 3325.86 3443.98 0.00 35.31 VI. SUGGESTION
01-09-18 3156.11 3237.78 3310.78 -0.02 34.50 1. If price shows a slight upward trend, then it is
01-10-18 2789.88 2992.05 3103.39 0.00 28.55 advisable to buy the share during that period and sell
01-11-18 2972.89 2855.66 2964.36 0.01 48.09 it later when it goes down.
2. There is high rate of fluctuation. Therefore it is
01-12-18 3163.21 3053.69 2961.15 0.00 58.55
advisable for the speculators to anticipate the price of
Table: 4.12 the stock and invest, depending upon the risk and
return.
Analysis and Interpretation: 3. It is advisable to invest in long term in order to
 SMA analysis the buying and selling signal by using reduce the risk in the volatile market.
the 7days moving average and 12days moving 4. The investor should buy different companies of stock
average. if investor can set off losses, incurred on the
 In this 7days moving average is above 12days from particular share to the profit earned in the other
April to June it is buying signal. shares.
 From July to December the 12days moving average 5. Apart of technical analysis, the investor should also
is above the 7days SMA means the selling signal. study the behaviour of stock in daily base and an
issue relating to company‟s and sector.
 ROC indicates the overbought and oversold region.
6. Through the study on technical by using ROC it seen
 The high value represent overbought and low value
the stock price perdition power and the investor are
represent oversold region.
suggested to use the ROC for making profitable
 During February to May, August and November of trades.
ROC is overbought region. 7. The technical indicators like RSI, 7 days and 12 days
 During August and October of ROC is oversold SMA generates superior buy or sell signal and
region. indicating that the stock prices.
 In RSI research have board rule that if RSI is below
30 to buy and if RSI is above 70 to sell the securities VII. CONCLUSION
 In April the RSI value is 70 which indicate to sell. The technical approach to invest is essentially a reflection of
 In October the RSI value is 30 which indicate to buy. the idea the price moves which is determined by challenging
V. FINDINGS attitude of investors towards a variety of economic, monetary
forces. Technical analysis works best on current market,
1. If share price shows upward trend, then it is intermediate on future market and stock market. Chart
advisable to buy the shares during a period patterns work better on stock markets than currency markets.
2. The IT sector, banking sector and Automobile sector The study is concerned with features of technical analysis and
is booming, and all average are in upward direction about its indicators. Technical analysis is widely accepted
the investors are will to make investment. worldwide and a very useful tool for the analysis of share
3. In IT sector TCS and Tech Mahindra are showing price behaviour. The share market is more challenging,
upward trend to buy the share, it is good opportunity fulfilling and rewarding to resourceful investors should able to
to do intraday and long term investing compare to learn the study of technical analysis. It is risky in trading in
Wipro and Infosys the share are less downward volatile market because any point of time the stock can be
trend. drop down and can go up. Sometimes there will be difficult to
4. In banking sector HDFC bank and SBI are showing decide when to entering and exiting the share.
moving trends in rapid growth compare to other two
banks the SMA indicate the buying signal of the
share and share are overbought by the investors.

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International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue VII, July 2019|ISSN 2454-6186

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