FINTRON PROJECTS – AY 25

1. Evaluate the performance of a broad based market index. Take details for the last 10 years
and study the impact of various factors that has impacted the overall Indian markets.
Select some leading sectors and do the analysis for the same over the same period and
come out with your findings.
a. Download data of broad based market index like Nifty 50, and plot a graph. Monthly
time interval can be selected.
b. Download data of sectoral indices like Bank Nifty etc and plot similar graphs.
c. Corelate the impact of market events and the movement of the indices and its
inferences.

2. Select a company of your choice. Look back at the performance of the stock over the past
10 years and analyse the reasons for the price fluctuations. Plot the graph in excel sheet.
Monthly data can be considered. Compare the performance of the stock with that of
Market performance for the same period of analysis.

a.Use Excel's "Get External Data" feature to import historical stock prices and financial data
for your chosen stock and market index. Alternatively, download data from financial websites and
paste it into your spreadsheet.

b. Create line charts for the stock price and that of the index. Compare their trends over the past

c. Attribute the impacts of market events and company specific events and company specific financial
performance on Index movement and on the stock price.

3. Perform fundamental analysis using Excel, focusing on financial ratios. Choose a company
and analyze its financial health by calculating and interpreting key ratios. Discuss the
significance of these ratios in assessing a company's performance and make
recommendations based on the fundamental analysis conducted in Excel

a. Import or manually enter financial data for the chosen company, including income statement,
balance sheet, and cash flow statement. Calculate key financial ratios like profitability ratios (e.g., P/E
ratio), liquidity ratios (e.g., current ratio), and solvency ratios (e.g., debt-to-equity ratio).

b. Analyze each ratio based on industry benchmarks and compare them to historical trends for the
company.

c. Identify strengths and weaknesses in the company's financial health based on the ratio
analysis. Offer recommendations for improvement based on the insights gained from the analysis.

4. Using Excel conduct a detailed analysis and come out with the reasons and factors that led
to the financial distress in an Organisation. Analyse the financials from different angles –
leverage, profitability, liquidity, efficiency point view and explain early warning signals
from their financials perspective.
A. Select a listed company that has undergone financial turmoil in the past and download
their financials for detailed analysis.
B. Conduct peer analysis / industry analysis and benchmark the ratios
 C. Identify early warning signals from their 3 financials and come out with corrective
measures

5. Utilizing R or Excel, perform a comprehensive analysis of the Net Present Value (NPV) in
capital budgeting for 2 hypothetical projects. Include time value of money considerations
and demonstrate how Excel can be used to calculate and visualize NPV. Similarly build the
model for other methods of evaluation. Discuss the significance of the models in
investment decision-making and come out with your conclusions.

a. Create 2 tables with columns for Year, Initial Investment, Cash Flow, Discount Rate, and
NPV. Enter the project's initial investment, annual cash inflows, and chosen discount rate. Use the
NPV function in Excel for each year, taking the cash flow and discount rate as arguments. Add up all
NPV values from each year to get the total project NPV.

b. Create a chart showing the NPV over time (y-axis) and years (x-axis). Analyze the chart and
NPV value to understand project profitability. A positive NPV signifies a return on investment, and a
higher NPV implies greater profitability.

c.Use excel short cuts or calculate using excel sheets and show the output for all the different
methods of evaluating project feasibility. Methods to be used are NPV, IRR, XIRR, Payback Period,
Discounted Payback Period, Profitability Index (PI), Accounting Rate of Return (ARR). Evaluate the
outcomes of both the project across different models and come out with your recommendation of
the project to be selected.

6. In your entrepreneur journey, you are planning to start a new project. Prepare a detailed
techno commercial feasibility report to be presented to your bank covering the following
aspects.
a. Project assumptions, including plant & machinery and other capex expenses along with
working capital requirements for next 12 months
b. Projections of sales and cash flows in the coming months
c. Project viability and Project break even point and the amount of loan requested for and its
logic

7. Perform bond valuation using R or Excel, considering different types of bonds. Illustrate the
steps involved in bond valuation and showcase how Excel can be utilized for this purpose.
Extend the analysis to explore more advanced aspects of bond valuation and discuss their
impact on investment decisions.

a. Choose a bond type (e.g., coupon bond, zero-coupon bond) and input its parameters like
face value, maturity date, coupon rate, and current market price. Create formulas in Excel to
calculate bond yield, price volatility, and duration based on the specific bond type.

b. Compare the calculated bond price with its current market price to assess its fair value.
Analyze how factors like interest rates, creditworthiness, and time to maturity impact bond value.

c. Explore concepts like embedded options and convexity, and their impact on bond valuation.
Discuss how understanding these advanced aspects helps make informed investment decisions
regarding bonds
 8. Implement the Capital Asset Pricing Model (CAPM) in R or EXCEL, emphasizing the basic
concepts of finance. Code the CAPM equation in R, plot the development of prices, and
explore the creation of portfolios with multiple risky assets. Discuss the implications of
portfolio weights and the construction of possible portfolio

a. Enter historical asset prices and the risk-free rate into your spreadsheet. Code the CAPM equation
in Excel, using functions like AVERAGE and STDEV to calculate required return and beta coefficients.

b. Plot the development of asset prices and expected returns over time. Experiment with different
portfolio weights (proportions of each asset) and analyze their impact on portfolio risk and return.

c. After arriving at the portfolio structure, find out the portfolio beta.

9. Identify a stock of your choice and find out the intrinsic value of the stock by building a
simple DCF model. Assume your expected rate of return as the discount rate and find the
intrinsic value. Compare the same with current market price of the stock. Come out with
your findings whether the stock is fairly priced or under priced or over priced, from your
point of view.
a. Find out free cash flow forecasts by projecting (compounding) the Free cash flows from the
past years average.
b. Find out the present value of all these flows by discounting the values with your expected
rate of return or using WACC.
c. Find the intrinsic value by removing the net debt from the enterprise value and dividing the
same with the number of shares. Based on the derived value, find out whether the stock is
currently fairly priced or under priced or over priced, from your point of view.

UNIT 2 – TECHNICAL ANALYSIS

10. Choose a stock of your choice and conduct a thorough analysis of its stock price movement
using Excel. Apply technical analysis techniques and see how market has responded for the
company specific and market specific events. Construct 2 simple indicators in excel and
compare the same with web resources providing the same.

a.Use Excel's "Get External Data" feature to import historical stock prices and financial data
for your chosen stocks. Alternatively, download data from financial websites and paste it into your
spreadsheet.

b. Create line charts for each stock price, comparing their trends over time on the same
graph. Apply technical analysis tools like moving averages or Bollinger Bands to identify potential
entry or exit points.

c. Discuss the observed trends and potential reasons for price differences between stocks.

11. As a technical Analyst, analyze the historical stock prices of a company using candlestick
charts. Identify and interpret different candlestick patterns and chart patterns, including bullish
and bearish candles, and explain their significance in predicting price movements. Discuss how
a trader or investor can use candlestick analysis for decision-making.
 a. Collect historical stock prices and import them into Excel or a similar tool. Create
candlestick charts using the price data to visually analyze the historical price movements

b. Identify various candlestick patterns, such as doji, hammer, and engulfing patterns.
Interpret the significance of each pattern in predicting bullish or bearish price movements.
( Screenshots from websites can also be considered)

c. Explain how traders or investors can use candlestick analysis to make informed decisions.
Discuss the practical implications of recognizing specific candlestick patterns for trading strategies.

12. Choose a stock or market index from Nifty , Next 50 Index and conduct a technical analysis to
identify support and resistance lines. Explain the importance of recognizing these patterns in
the context of trading strategies.

a. Choose a stock or index from Nifty Next50 on Investing.com or your preferred platform.
Select a long-term candlestick chart (e.g., daily or weekly) to capture significant price swings.

b. Look for areas where price consolidates or bounces repeatedly (support) or struggles to
break through (resistance). Analyze historical volumes at these levels to confirm their strength and
validity.

c. Consider buying near support levels with potential for a bounce upward. Sell near
resistance levels with potential for a price downturn.

13. As a Technical advisor for short term investment of 30-60 days investment horizon, identify 3
company for each of these technical logic BB + RSI, BB + ROC and Pivot Levels. and take
screenshot of the charts using Investing.com (or) tradingview.com and prepare a detailed
report.

a. Identify stocks with oversold conditions on RSI (<30) within Bollinger Bands. Look for
potential bullish signals like RSI divergence from price action.

b. Choose stocks with rising ROC values (>0) within Bollinger Bands. Look for confirmation
signals like price moving above the upper Bollinger band for momentum buying.

c. Select stocks experiencing recent price drops and consolidating near daily or weekly pivot
points. Look for bullish signals like candlestick patterns or indicators suggesting potential for a
bounce off pivot support.

UNIT 3 – DERIVATIVES

14. Choose a specific commodity, equity, or index and compare the features of futures and
forwards contracts. Construct payoff charts for futures contracts and explain the pricing
mechanism for futures. Investigate the uses of futures in hedging, speculation, and arbitrage,
providing real-world examples.

a. Select a specific commodity, equity, or index for analysis. Gather relevant data on both
futures and forwards contracts for the chosen asset.

b. Construct payoff charts for futures contracts based on different scenarios. Explain the
pricing mechanism for futures, considering factors like spot price, interest rates, and dividends.

c. Investigate real-world examples of using futures for hedging against price fluctuations.
Provide examples of speculative and arbitrage strategies using futures contracts.
15. Create moneyness chart for different Option strike prices for both CALL and PUT options with
practical examples.

a. Choose an optionable commodity, equity, or index for analysis. Collect data on different
strike prices for both CALL and PUT options.

b. Create a moneyness chart, plotting option strike prices against moneyness levels. Provide
practical examples of options at-the-money, in-the-money, and out-of-the-money.

c. Explain how moneyness impacts option pricing and investor behavior. Highlight
considerations for option traders in different market scenarios.

Unit 4: Currency and Commodity Derivatives

16. Explore the commodity market, including commodity exchanges, market participants, and
various instruments offered in this market. Analyze Commodity hedging strategies employed in
the commodity market and discuss the role of risk management in commodities. Provide
insights into settlement and delivery processes in commodity trading.

a. Identify key players (producers, consumers, speculators) and traded instruments (futures,
options). b. Analyze risk management strategies (hedging) used. Long hedge and Short hedge with
real life examples.
c. Explain procedures for physically settling contracts or cash-settling through exchange
platform.

17. Explore the Currency market segments in India, including exchange traded platform, trading
participants, and various instruments traded in this market. Analyse Currency hedging
strategies used by exporters, importers and corporates as a part of currency risk management.

a. Identify key players (exporters, importers, corporates, Institutions..) and hedging

instruments (futures, options, forwards..)
b. Analyze risk management strategies (hedging, natural hedging, ) from an
importer and exporter’s perspective from OTC and Exchange traded platforms.
c. Explain arbitrage opportunities between the different platforms for exporters and importers.

18. Explore the trading opportunities in Commodity market segments in India, including
exchanges, trading participants, and various instruments traded in this market. Analyse the
linkages with International markets prices of commodities with that of the Indian
Commodity prices and its uses in trading.
a. Analyse different Commodity exchanges in India like MCX, NSE, NCDEX etc for trading
volumes in different contracts of Futures & Options.
b. Shortlist contracts having higher volume and higher Open interest across Energy, Base
Metals, Bullion, Agri commodities and study demand supply / seasonality patterns.
c. Track international prices of commodities and find their correlation levels and use it for
trading decisions.

UNIT 5 – ROBO ADVISORY IN DERIVATIVES

19. You are a research analyst with a hedge fund. You are expected to provide the logic for
writing the code for a high frequency algo trading set up on Nifty Futures to the coding
team. Provide a no code or a pseudo code logic flow for the trade
a. Suggest the relevant historic data for back testing. Define the trade set up and work on data
collection for the stipulated strategy
b. Define the entry & exit strategy and position sizing with logic based on technical indicators
like EMA crossover, RSI etc to generate BUY / SELL signals.
c. Come out with logic for stop loss based on indicators and test the efficacy of the strategy.

20. As a research head, you are required to build a trade set up for initiating trading on Futures
contracts, on a low frequency trade mode. Suggest the steps to the coding team for them
to develop the code for a low frequency algo trade.
a. Gather data on prices of the future contract and shortlist indicators to be used.
b. Come out with your rules for signal generation for trade initiation and execution
c. Identify key levels of trailing stop loss and take profit levels and continuous monitoring.