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EXECUTIVE SUMMARY

Prices of securities in the stock market fluctuate daily on account of continuous buying and
selling. Stock prices move in trends and are never stable. Investors in the market are interested
in buying securities at low price and selling them at a high price so as to get a good return on
his investment.

Technical analysis is a method of evaluating securities by analyzing the statistics generated by


marketing activity, such as fast prices and volume. Technical analysis does not give the intrinsic
value of the security, but instead it includes charts and other tools to identify pattern that can
suggest future activity. The rationale behind technical analysis is that share price behavior
reports itself over time and analysts attempts to derive methods to predict this repetition. A
technical analysis look at the past price data to see if he can establish patterns. He then look at
the current price data to see if any of the established patterns are applicable and if so,
extrapolations can be made to predict the future price movement. Although past share prices
are the major data used by technical analysts, other statistics such as volume of trading and
stock market indices are also utilized to some extent.

The study was conduct with the objectives of study the investor’s perception towards
investment in automobile shares and to study the investor’s behavior towards investment in
share market. To study and analyze the technical analysis some of the selected automobile
companies like Tata motors, Marathi Suzuki, TVS, Mahindra and Mahindra, Eicher Motors
ltd,

In order to gain practical knowledge of the stock market, stock brokering company
B.M.A.Wealth Creators have been selected. Technical analysis has been criticized for being
too late. By the time the trend id identified, a substantial portion of the move already takes
place. Even after a new trend has been identified there is always another “important” level close
at hand. Technicians have been accused of setting on the face and never taking on unqualified
stance.

Accuracy of testing the performance of selected securities in comparison with market index
depends on experience of the researcher. The study is mainly based on the secondary data. As
such it is subjected to the limitations of secondary data.

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CHAPTER-1

INTRODUCTION

INTRODUCTION TO CONCEPT

TECHNICAL ANALYSIS: Technical analysis is the examination of past price movements to


forecast future price movements. Technical analysts are sometimes referred to as chartists
because they rely almost exclusively on charts for their analysis. It is important to form a view
on the likely trend of the overall market and it is helpful to have some idea of how to go about
selecting individual stocks. Naturally all investors would like their investment to appreciate
rapidly in price, but stocks which may satisfy this wish, tend to be accompanied by a
substantially greater amount of risk then many investors are normally willing to accept.
However it is important to understand that investors can be very conscious when it comes to
stock ownership.

Technical analysis is the use of numerical series generated by market activity, such as price
and volume to predict future price trends. The techniques applied to any market with a
comprehensive price history.

Three principles of technical analysis:

Market action discounts everything

Based on the premise that all relevant information is already reflected by prices, pure technical
analysts believe in redundant to do fundamental analysis. They say news and news events do
not significantly influence price and cite supporting research such as the study by Colter,
Poterba and summers titled what moves stock prices?

On most sizable return days the information that the press cities as the Couse of the market
move is not particularly important. Press reports on adjacent days also fail to reveal any
convincing accounts why future profits or discount rates might have changed. Inability to
identify the fundamental stocks that accounts for these significant market moves, it is difficult
to reconcile with the view that such stock accounts for most of the variation in stock in return.

Prices move in trends:

Technical analysts believe that prices trend directionally. Analysts say that market trends up
down, sideways. This basic definition of price trend is the one put forward by Dow Theory.

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An example of security that had an apparent trend is AOL from November 2001 through
August 2002. A technical analysts or trend follower recognizing this trend would look for
opportunity to sell security. AOL constantly moves downward in price. Each time the stock
rose, sellers would enter the market to sell the stock; hence the zigzag movement in the price.
The series of lower highs and lower lows is a telltale sign of a stock in a down trend. In other
words, each time the stock moved lower, it fell below its previous relative low price. Each time
stock moved higher, it could not reach the level of its previous relative high price.

Sequence of lower lows and lower highs did not begin until August. Then AOL makes a low
price that doesn’t pierce the relative low set earlier in the month. Later in the same month, the
stock makes a relative high equal to the most recent relative high. In this technician sees strong
indication that the down trend is the last pausing and possibly ending and would likely stop
actively selling the stock at the point.

History tends to repeat itself:

Technical analysts believe that investors collectively repeat the behavior of the investors that
preceded them. Everyone wants in on the MICROSOFT, if this stock ever gets to $50 again, I
will buy it, this company’s technology will revolutionize its industry, therefore this stock will
be skyrocket-these are all example of investor sentiment repeating itself. To a technician, the
emotions in the market may be irrational, but they exist. Because investor behavior repeats
itself so often, technicians believe that recognizable and predictable price pattern will develop
on chart.

Technical analysis is not limited to charting, but it always considers price trends. For example
many technicians monitor surveys of investor sentiment. These surveys gauge the attitude of
market participants, specifically whether they are bearish or bullish. Technicians use these
surveys to help determine whether a trend will continue if a reversal could develop; they are
most likely to anticipate a change when the surveys report extreme investor sentiment. Surveys
that show overwhelming bullishness, for example are evidence that an uptrend may reverse the
premise being that if most investors are bullish they have already bought the market. And
because most investors are bullish and invested, one assume that few buyers remain. These
leaves more potential sellers than buyers, despite the bullish sentiment. This suggests that
prices will trend down, and is an example of contrarian trading.

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Oscillators

Oscillators are mathematical indicators calculated with the help of the closing price data. They
help to identify overbought and oversold conditions and also possibility of trend reversals.
These indicators are called oscillators because they move across a reference point.

Rate of Change Indicator

Rate of Change (ROC) indicator measures the percentage change of the current price as
compared to the price a certain number of periods ago. The ROC indicator might be used to
confirm price moves or detect divergences; it might also be used as a guide for determining
overbought and oversold conditions. The formula for Rate of Change is expressed below:

INDUSTTY PROFILE:

INDIAN SECURITIES MARKET

Meaning of securities

The issues in stock exchanges are called securities. This includes shares and debentures issued
by public companies, government and semi government bonds, debentures bonds issued by
government companies, etc. Indian stock market has a long history dated back to 19th century.
At the end of 19th century Bombay stock exchange was established in MUMBAI.

Types of securities

Government Securities: Government securities refer to securities issued by the central


government or state government. Securities point of view, government securities are
considered to be better. It is called golden edge securities.

Semi-government Securities: The bonds and debentures issued by public utility services are
known as semi government securities. Security point of view, place for the category of
securities comes after the government securities. The payment of invested money with interest
on such securities is guaranteed by the government.

Investment Securities: The security that is suitable in view of investment is called investment
securities. A certain fixed income is expected from such securities, and comparatively price is

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also remaining stable. For example the government and semi-government securities, issued by
banks and insurance companies come under this category.

Speculative Securities: The prices of securities that fluctuate largely called speculative
securities. The speculators have special interest in such securities. They earn profit under the
impression of future increase or decrease in prices

Trustee Securities: Such securities in which some trust money can be invested, is called trustee
securities. Industrial Securities

Industrial security: is a wider term and it includes the securities of Bank, Insurance, and
industrial activities etc. Only the securities issued by business institutions are categorized
separately as industrial securities.

Registered Securities: Registered securities are those which are registered with the concerned
institutions book. Registered securities can be transferred from one person to another through
Registered.

Bearer Securities: Bearer securities can be transferred by mere delivery from one person to
another. The names of bearer securities are not deemed to be its owner.

Listed Securities: The securities that include in the list of recognized stock exchanges, is
called listed securities. Only listed securities are transacted in stock exchanges.

Cleared Securities: Those securities that have been recognized by the stock exchanges for
transactions are called cleared securities.

STEPS TO PURCHASE SECURITIES:

The following procedure may be followed by a purchaser of securities at a stock exchange:

1. Selection of a broker: Since only members can deal in securities at a stock exchange, the
intending buyer will have to take the help of a broker for purchase of securities. The broker
may be engaged either directly or through the mediation of a bank with which the intending
buyer has dealings. The latter, or course is generally preferred, since the banks are integrity of
the broker.

2. Placement of order: Ordinarily the broker recommends for purpose of investment a number
of securities and indicates in each case the advantages and disadvantages of investing funds in

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it, the risk involved, anticipated return, prospects of appreciation and deprecation. The investor,
on the basis of the advice of broker draws upon the order wherein he generally specifies the
price at which the different securities may be purchased.

3. Making of a contract: After receiving the order the broker or his authorized agent goes to
the hall of the stock exchange where the securities required are dealt with. He announces his
requirement by shouting in the hall during the time allotted for dealings in the particular class
of securities, In response to his 'shouting' another broker who has an order with him to sell
those securities, may accept his offer or may make a counter offers. Instead of shouting in the
hall, another alternative open to broker is to contact the members in their cabins and find out
whether they are willing to sell the securities he wants to buy After negotiations with them a
bargain is struck.

4. Preparation of contract note: A book called "sauda book" is maintained by each broker.
After recording the transaction of purchase or sale of securities in the book, the broker will get
the signatures of the other member brokers with whom he had the dealing in confirmation of
the purchase of sale. A copy of the transactions recorded in this book is submitted by the broker
to the stock exchanges at the end of the day. This facilitates reconciliation by stock exchanges
of all transactions for purchases with sales and vice versa.

5. Settlement of the transactions: The broker or members of the stocks exchanges settle the
transactions on the settlement day on behalf of their clients. The mode and time of settlement
depends on the nature of transactions, i.e. whether it is a ready delivery transactions or a
forward delivery transaction. In case a person wants to sell the securities, practically the same
procedure, as discussed above, will have to be followed.

HISTORY OF EQUITY MARKET

Market-oriented economic reforms in India began in 1991. With the removal of Administrative
controls on bank credit and the primary market for securities, the capital markets came to
occupy a larger role in shaping resource allocation in the country. This led to a heightened
interest amongst policy makers in the institutional development of securities markets. The
efforts towards empowering the securities market regulator (SEBI), and the first efforts towards
attracting foreign portfolio investment began early in the reforms process. Almost immediately
after the reforms began, there was a prominent scandal on the fixed income and equity markets,
which was exposed in April 1992.

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This set the stage for an unusual policy intervention: the establishment of a securities exchange,
the National Stock Exchange (NSE), by the government.

Contrary to most expectations, NSE succeeded, becoming the largest equity market in 1995.
NSE pioneered many important innovations in market design in India. The most important of
these included nationwide electronic trading (1994), the clearing corporation as a central
counterparty (1996) and paperless settlement at the depository (1996). NSE was a pioneer
amongst securities exchanges in the world in using a demutualised structure, where brokerage
firms did not own the exchange.

The demutualised structure helped in keeping NSE focused on the needs of investors as
opposed to the profit maximization of brokerage firms. The creation of the new exchange,
clearing corporation and depository were important accomplishments of institution building.
From 1996 onwards, debates about policy issues on the equity market were dominated by
questions about the role for leveraged trading. There was a proposal to have a spot market
based on ―rolling settlement‖ (where leverage is limited to intra–day positions only)

In 2001, a major crisis broke on the equity market. It involved numerous elements: large
leveraged positions which went wrong, accusations of market manipulation, a payments crisis
at the Calcutta exchange, fraud in the banking system, ethics violations at the Bombay Stock
Exchange,

This crisis was valuable in breaking this five–year deadlock and moving on with reforms. In
June 2001, trading in index options commenced & within a matter of weeks, liquidity improved
sharply.

Over the 1990s, the equity market became a nationwide platform with real–time capability for
trading and settling stock transactions. However, comparable improvements in the
infrastructure for funds transfer in the country have not taken place.

Beyond technical questions of market design, the most important concerns about the securities
markets today are questions of governance and policy formulation Securities markets have
made significant progress in terms of exploiting modern trading technology and modern
financial instruments. However, the regulatory capacity on the part of both exchange
institutions and SEBI is highly limited.

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STOCK MARKET:

The term 'the stock market' is a concept for the mechanism that enables the trading of company
stocks, other securities, and derivatives. The stocks are listed and traded on stock exchanges
which are entities (a corporation or mutual organization) specialized in the business of bringing
buyers and sellers of stocks and securities together.

Equity/Share Total equity capital of a company is divided into equal units of small
denominations, each called a share. For example, in a company the total equity capital of Rs
2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a
Share. Thus, the company then is said to have 20,00,000 equity shares of Rs 10 each. The
holders of such shares are members of the company and have voting rights.

There are now stock markets in virtually every developed and most developing economy, with
the world's biggest markets being in the United States, UK, Germany, France, India and Japan.

THE BOMBAY STOCK EXCHANGE IN INDIA

Function and purpose

The financial system performs three main


tasks: first, it handles transfer of payments;
second, it channels savings to investments
with a good return for future consumption;
and third, it spreads and reduces (local
enterprise) economic risks in relation to the players' targeted returns.

The smooth functioning of all these activities facilitates economic growth in that lower costs
and enterprise risks promote the production of goods and services as well as employment. In
this way the financial system contributes to increased prosperity. The stock market is one of
the most important sources for companies to raise money. Rising share prices, for instance,
tend to be associated with increased business investment and vice versa. Share prices also affect
the wealth of households and their consumption. Therefore, central banks tend to keep an eye
on the control and behaviour of the stock market and, in general, on the smooth operation of
financial system functions.

Trading: Participants in the stock market range from small individual stock investors to large
hedge fund traders, who can be based anywhere.

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Market Timings: Trading on the equities segment takes place on all days of the week (except
Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings
of the equities segment are: Normal Market Open: - 09:15 hours Normal Market Close: - 15:30
hours

LISTING

Listing means admission of securities of an issuer to trading privileges on a stock exchange


through a formal agreement. The prime objective of admission to dealings on the Exchange is
to provide liquidity and marketability to securities.

SECURITIES

"Securities" is a generic term describing a transferable certificate of ownership in an investment


product. An investment product includes notes, bonds, stocks, futures, contracts and options.
A Security gives the holder an ownership interest in the assets of a company. For example,
when a company issues security in the form of stock, they give the purchaser an interest in the
company's assets in exchange for money. There are a number of reasons why a company issues
securities: meeting a short-term cash crunch or obtaining money for an expansion is just two.

TRADING IN INDIA

NSE introduced for the first time in India, fully automated screen based trading. It uses a
modern, fully computerized trading system designed to offer investors across the length and
breadth of the country a safe and easy way to invest. The NSE trading system called 'National
Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system,
which adopts the principle of an order driven market.

REGULATOR

WHO REGULATES THE SECURITIES MARKET? The responsibility for regulating the
securities market is shared by Department of Economic Affairs (DEA), Department of
Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and Exchange Board of
India (SEBI).

WHAT IS SEBI AND WHAT IS ITS ROLE?

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India
established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of
Securities and Exchange Board of India (SEBI) with statutory powers for (a) protecting the

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interests of investors in securities (b) promoting the development of the securities market and
(c) regulating the securities market. Its regulatory jurisdiction extends over corporates in the
issuance of capital and transfer of securities, in addition to all intermediaries and persons
associated with securities market. SEBI has been obligated to perform the aforesaid functions
by such measures as it thinks fit. In particular, it has powers for:

1. Regulating the business in stock exchanges and any other securities markets
2. Registering and regulating the working of stock brokers, sub– brokers etc.
3. Promoting and regulating self-regulatory organizations
4. Prohibiting fraudulent and unfair trade practice.
5. Calling for information from, undertaking inspection, conducting inquiries and audits
of the stock exchanges, intermediaries, self – regulatory organizations, mutual funds
and other persons associated with the securities market

CLEARING CORPORATION

A Clearing Corporation is a part of an exchange or a separate entity and performs three


functions, namely, it clears and settles all transactions, i.e. completes the process of receiving
and delivering shares/funds to the buyers and sellers in the market, it provides financial
guarantee for all transactions executed on the exchange and provides risk management
functions. National Securities Clearing Corporation (NSCCL), a 100% subsidiary of NSE,
performs the role of a Clearing Corporation for transactions executed on the NSE.

Rolling settlement all open positions at the end of the day mandatorily result in payment/
delivery ‘n’ days later. Currently trades in rolling settlement are settled on T+2 basis where T
is the trade day. For example, a trade executed on Monday is mandatorily settled by Wednesday
(considering two working days from the trade day). The funds and securities pay-in and pay-
out are carried out on T+2 days.

FACTORS AFFECTING THE PRICES OF SECURITIES IN STOCK EXCHANGE

 Rates of dividend declared by companies.


 Changes in the capital structure of companies.
 Present economic condition of the institution.
 Change in the management and control.
 Strikes of employees.
 Government policies towards industrial licensing and taxation.

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 Rate of interest in money market and availability of credit.
 Business cycles.
 Circulation of money.
 National politics and change in government

Financial market can be divided into following sub-markets

Markets can be classified into different categories depending upon characteristics of market or
instrument used to create categories. Securities created by institutions in the markets normally
pay an interest on the nominal amount (the amount shown on the certificate or contract). The
interest-bearing securities market is split into money market and the capital market, based on
the term to maturity (the term left to redemption of the debt) of the securities.

The capital market is the market for issue and trade of long terms securities. The money market
is that of short-term securities.

The money market is basically concerned with the issue and trading of securities with short
term, maturities or quasi-money instrument.

The instruments traded in the money market are Treasury Bill, Certificates of Deposits (CDs),
Commercial paper (CPs), Bills of exchange and other such instruments of short term maturities
(i.e. not exceeding 1year with regard to the original maturity).

 The Bond market, which provide financing through the issuance of bonds, and enable the
subsequent trading thereof.
 Commodity markets, which facilitate the trading of commodities.
 The derivatives markets, which provide instrument for the management of financial risk.
 Futures markets, which provide standardized forward contracts for trading products at some
future date
 Insurance markets, which facilitate the redistribution of various risks.
 Foreign exchange markets, which facilitate the trading of Foreign exchange

CAPITAL MATKET

PRIMARY MARKET: The market for instruments (also called securities) issued for the time,
is called the primary market. Because the standardization of these instruments. Different needs

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in the market at different times, and different views of economic factors, these instruments are
traded between institutions after they have been issued for the first time. If a leader needs his
money before redemption date of the loan, the lender could trade the loan by selling the
certificate to another institution. The buyer of the instrument pays the seller and amount (the
present value the future cash flows of the loan), and the buyer becomes the new lender. The
market where instrument are traded subsequent to the first issue is called the secondary market.

SECONDARY MARKET: The secondary market in some of the securities is a very active,
market. Activities in the secondary market have strong determining influence on issue in the
primary market as liquidity, market rates, scale of demanded. Of specific instruments are
reflected in the secondary market. The variable of the economy in these markets are expressed
through the interest rate (the price mechanism) determined in the rate and value at which issue
can take place in the primary market. The secondary markets give the investor the opportunity
to manage his portfolio in terms of risk and return ratio, liquidity, etc. The investor receives or
wants to receive on his investment (called the yield); can be managed within certain parameters
and by using different strategies of buying and selling different instruments and investments in
the secondary market

TO BUY THE SHARES: There are basically two ways to buy the shares of the company. The
ways are:

 Buying from the primary market


 Buying from the secondary market

Buying from the primary Market: It means that buy the shares directly from companies when
the make new issues of shares or come out with IPOs. One can also get rights issue and bonus
shares.

Reasons to buy Shares from Primary Market: Listing gains are the chief attractions of
buying the shares I the primary market. The following are the important reasons to pick the
shares through IPOs, rather than buy them from the market:

The first reason is that often companies issue their shares cheaply and, later, when these shares
are listed on the stock Exchange, they list at a premium (higher than the price at which they
were issued). So make a lot of money if sell the shares soon.

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It also happens that companies who are going public or listing shares for the first time also
usually offer their shares cheap, and could go on to become very successful, IPOs thus offer
investors the chance to participate in their prosperity cheaply.

Buying from the Secondary Market: It means buy the shares of a company that is already
listed people can buy them from the stock exchange through brokers.

PRESENT SCENARIO

OVERVIEW

India has witnessed a consistently strong growth of over 7%+ over the past 5 years. This, along
with the positive regulatory environment, has attracted foreign investors to India. The number
of FIIs registered in India has increased to 1711 in April 2010 from 513 in 2003. Increasing
foreign participation has been significantly positive for capital market intermediaries in India.

FY09 remained a lackluster year, with FII being net sellers for ~US$10bn. Retail investor’s
participation also remained low during FY09, which impacted performance of capital market
intermediaries. With Indian economy moving on an up cycle during FY10, FIIs infused ~$20bn
in Indian capital markets, and retail participation also improved through insurance and mutual
fund route. Corporate fund raising activity (through QIPs, IPO, and debt syndication) has also
gained m momentum during FY102.

This has aided capital market intermediarie’s fee-income. The secondary capital market
volumes clocked a growth of 60% yoy to Rs. 978bn (annual average) during FY10 from
Rs609bn in FY09. Presently close to 77% of the capital market volumes comprise of F&O
volumes as compared to 61% in FY05. Change in the capital market volume mix has tempered
market share of top 10 capital market intermediaries during FY10.

Moreover, lower delivery volumes in the cash segment have impacted brokerage yields during
FY10. We opine that the market share of most of the capital market intermediaries will remain
under pressure going forward. With increased competition, brokerage yields are expected to
remain flat despite higher focus of the intermediaries on the cash segment. We have assumed
a 15% CAGR over FY11-12 in capital market volumes from current average of Rs 978bn.

Operating cost of capital market intermediaries is largely variable in nature. Cost effective
distribution model - franchisee and online trading through portals also helps in keeping a check
on operating cost. And, thus operating and net profit margins are likely to remain stable. Post

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recent correction stock prices of capital market intermediaries are trading at significant discount
to the benchmark index valuations.

The Indian retail brokerage industry consists of companies that primarily act as agents for the
buying and selling of securities (e.g. Stocks, shares, and similar financial instruments) on a
commission or transaction fee basis. It has two main interdependent segments.

RAPID GROWTH

The last decade has been exceptionally good for the Stock markets in India. In the back of wide
ranging reforms in regulation and market practice as also the growing participation of foreign
institutional investment, stock markets in India have showed phenomenal growth in the early
1990s. The stock market capitalization in mid-2007 is nearly the same size as that of the gross
domestic product as compared to about 25 percent of the latter in the early 2000s. Investor base
continued to grow from domestic and international markets. The value of share trading
witnessed a sharp jump too. Foreign institutional investment in Indian stock markets showed
continuous rise reaching about USD10 bn in each of these years between FY04 to FY06.

Electronic trading, digital certification, straight through processing, electronic contract notes,
online broking have emerged as major trends in technology. Risk management became robust
reducing the recurrence of payment defaults. Product expansion took place in a speedy m
manner. Indian equity markets now offer, in addition to trading in equities, opportunities in
trading of derivatives in futures and options in index and stocks.

Company profile

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Background and inception of the company

In the 1920s, Mr. Bhuramal Agarwalla, founder of the BMA Group, had made a foray into the
obscure energy industry with a mission to assume eminence in the coal mining business. With
his vision and character, he managed to place the business on a higher pedestal. By adhering
to a bi-pronged philosophy of risk-taking and fostering an ethic-based environment, he
cautiously promoted excellence through quality to meet the expectations of both domestic and
international clients. Taking inspiration from this, the group has scaled many heights venturing
into Refractories, Smelting, Ferrous Alloys, Coke & Coal, Steel Products, Export & Import and
Financial Services and is leading by example.

 Its Refractory vertical, National Refractories is an ISO 9001:2000 company established in


the year 1971. It produces the highest quality of Refractory Products that invariably goes
to the smelting plants of the renowned companies of India including Sail, Hindalco, Tisco,
Balco, IOC, Reliance, HPCL, Graphite India Ltd., Electrosteel Casting Ltd. Etc.
 Setting up of Anjaney Ferro Alloys Ltd., has marked the diversification of the BMA Group
into Ferro Alloys, an important import substitution area. It is the first Ferro Alloys plant in
the DVC area and holds a unique position as the manufacturer of MC Ferro Alloys (used
for manufacturing of high quality steels) in the country. This was helped in substituting
expensive imports and creating a loyal customer base including SAIL, TISCO, JINDAL,
Usha Martin, Mukand, Electro steel Casting Ltd. and Shah Alloys Ltd that makes repeated
purchases. Listed with the BSE, its networth is over Rs 60 crores.
 With the primary objective of supporting the nation's search for alternative sources of
energy and conservation of natural resources, Premium Fuels was founded in 1975.
Benefits from the coal business has contributed to the BMA Group's inclination towards
diversifying into the manufacture of hard coke. It is the first coke manufacturing plant in
the Private sector, in West Bengal.
 The group also hosts one of the market leaders in manufacturing & exporting of stainless
steel & allied products – BMA Stainless Ltd. Its products are manufactured in state-of-the-
art facility that encompass DRI, Blast Furnace, Steel Melting shop, AOD and LRF, Rolling
Mill, Captive Power Plant, etc. It has a production capacity of 3, 00,000 TPA of finished
steel.

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 The group has also recently ventured into the realty sector with its flagship project coined
“Swayam City”.

With a background that forms the base of a firm and growth enduring future, BMA Wealth
Creators Limited is positioned to contribute effectively to the society at large.

The management team of BMA Wealth Creators Ltd

Anubhav Bhatter, Chairman & md


Mrugesh Devashrayi, Director & CEO

Dharmesh Rajdev, Head Research

Sarat Murarka, Head Broking

Nature of business carried:

 BMA Wealth Creators Ltd is one of the leading financial service providers to individuals
and corporate investors.
 The company provides broking service in the equity, derivatives, foreign exchange and
commodity segment in India.
 The company proactively delivers the full depth and breadth of brokering and other
financial services to its clients through a network of more than 8000+ business outlets
across India.
 Excellent research support, state of the art tools, smart risk management, capital
requirements, excellent order routing and efficient operational practices are the key
component of company’s offerings.
 The company provides superior pre and post trading services to clients through robust
technical architecture.

Company’s Vision and Mission statement

Vision: We aspire to be the global financial industry benchmark for providing integrated
financial services building investor wealth and confidence.

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Mission: We strive to be a global premier financial supermarket providing integrated
investment services to our clients thereby partnering their aspirations and the growth of the
society at large.

We make the difference through:

Our People: By fostering teamwork, nurturing talent, enhancing leadership capability and
acting with pace, pride and passion.

Our Service: By becoming the financial consultant of choice, delivering premium products
and services and creating value for our customers.

Our Technology: By trying unfalteringly to deliver better technological platforms that enable
our stakeholders into deriving better business with us.

Our Innovation: By continuously striving to innovate ways to better our service and enhance
the client connect experience.

Our Conduct: By providing a safe workplace, respecting the environment, caring for our
communities and demonstrating high ethical standards.

Products offering:

 Equities and equity derivatives (NSE,BSE)


 Commodity futures (MCX,NCDEX)
 Currency futures (MCX-SX)
 Depository services (NSDL,CDSL)
 Mutual funds (AMFI)
 Insurance-Life and -Non life/group insurance(IRDA)
 IPOs, Bonds and fixed deposits

Areas of operation:

BMA Wealth Creators being private financial service provider and brokerage firm operates
well in national market. In just over a decade, it has created a large pattern of 10,00,000
customers managed through a network of over 42 branches and 7000+ business patterns. It has
offices across 25 states with a network of 2000+ Crores.

17
Infrastructure Facilities:

Research facilities:

BMA customers get access to wide range of research resources and tools to help them make
right investment decisions.

Its team of finest financial analyst bring customer intensive report on how the stock market are
faring, winning investment ideas, entry and exit strategies, sector and economic outlook.

At BMA Wealth Creator, they understand that every investor investment needs and goals are
different and that’s why they provide comprehensive set of research report to serve customer
needs.

Training Facilities:

At BMA Wealth Creators Ltd, the newly appointed employees are trained at respective branch
itself. Also, a group of terminal operators provides the training for individual investors for their
own trading activity.

Competitors Information:

The major competitors are

 ICICI Securities Ltd


 Share Khan Ltd
 Motilal Oswal Securities Ltd
 Reliance Money Ltd
 Reliance Ltd
 Kotak Securities Ltd
 Angel Broking Ltd

Future growth and prospectus:

The company has a wide network of franchisee and offices in south India and is planning open
more branches in India. Additionally, the company is launching its IPO in the year 2021 and
hence a good growth is expected. The company aspires to become the market leader in coming
5 years.

18
SWOT ANALYSIS:

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats related to business
competition or project planning. It is intended to specify the objectives of the business venture
or project and identify the internal and external factors that are favorable and unfavorable to
achieving those objectives. Users of a SWOT analysis often ask and answer questions to
generate meaningful information for each category to make the tool useful and identify their
competitive advantage. SWOT has been described as the tried-and-true tool of strategic
analysis.

Strengths and weakness are frequently internally-related, while opportunities and threats
commonly focus on the external environment.

STRENGTHS:

 2500+ business outlets crosswise over India with less Intra Day broking charges (please
check with the organization before getting the affirmation) Strong industry focus
leading to groundbreaking and informed calculated advisory services.
 Strong industry focus leading to innovative and informed strategic advisory services.
 Dedicated research team for technical and fundamental analysis.
 Well- equipped customer support team, which will assist a new comer in the matters
relating to transactions, billing, De-mat and other technical queries.
 Comprehensive range of financial services for HNIs and retail investors.
 Well established and continuously expanding geographical footprints
 Unique, stable and scalable business model
 Adoption of technology-screen based trading, electronic matching, and paperless securities.

WEAKNESSES:

 Highly risk oriented business


 Slight entry level of investors
 Lack of promotion.
 Unlike some of its competitors like ICICI and Kotak, does not provide complete catalogue
of financial services.(e.g. banking facility)
 Lack of visible goodwill among minor players
 Lack of trust on companies by customers

19
 Psyche of people in India is converging

Opportunities:

 Booming financial market both country wide and worldwide.


 Increase in varied domestic assignments-follow on issues, buyback program, open offers,
IPOs.
 Strong momentum in franchise in the last two years.
 Critical mass and experience across the globe.
 BMA has tied up with other third party companies to sell their products.
 Market expansion i.e. opening branches at untapped areas, mostly in north India,
 Structure of the industry, market size, and growth rates-huge potential in Indian
market.
 Proactive and progressive nature of Indian brokerage industry (India ranks amongst
top five globally in this segment)
 Leveraging technology to enable best practices and processes Corporates looking at
consolidation/acquisitions restructuring opens out opportunities for the corporate advisory
business.

THREATS

 Unexpected changes in the capital market such as rules and regulations etc.
 Increasing competition in the industry.
 Banks with de-mat facilities jockeying for position.
 Fast changes in technology.
 Increasing number in the defaulter and threat of security in terminal.

Financial Statement:
Table Showing P&L Account of B.M.A Wealth Creators Ltd.1.1
STANDALONE PROFIT & LOSS ACCOUNT ------------- in Rs. Cr. -----------

Mar '18 Mar '17

INCOME

Sales Turnover 0.29 0.51

Net Sales 0.29 0.51

20
TOTAL INCOME 0.29 0.51

Expenditure

Employee Cost 0.07 0.03

Miscellaneous Expenses 0.11 0.09

TOTAL EXPENSES 0.18 0.12

Operating Profit 0.11 0.39

PBDIT 0.11 0.39

Interest 0.01 0.17

PBDT 0.1 0.22

Depreciation 0 0

Other Written Off 0 0

Profit Before Tax 0.1 0.22

PBT (Post Extra-ord Items) 0.1 0.22

Tax 0.01 0.03

REPORTED NET PROFIT 0.08 0.18

Table showing Balance sheet of B.M.A Wealth Creators Ltd 1.2


BALANCE SHEET -------- in Rs. Cr. -------

Mar 18 Mar-17

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 6.67 4.51

Reserves and Surplus 8.15 3.8

Total Shareholder’s Funds 14.82 8.31

NON-CURRENT LIABILITIES

Deferred Tax Liabilities [Net] 0.18 0

21
Total Non-Current Liabilities 0.18 0

CURRENT LIABILITIES

Short Term Borrowings 0 2.65

Trade Payables 0.02 0.01

Other Current Liabilities 0.02 0.25

Total Current Liabilities 0.04 2.91

Total Capital And Liabilities 15.04 11.23

ASSETS

NON-CURRENT ASSETS

Tangible Assets 0.01 0.01

Fixed Assets 0.01 0.01

Non-Current Investments 11.99 8.28

Deferred Tax Assets [Net] 0 0.01

Other Non-Current Assets 0.07 0.04

Total Non-Current Assets 12.07 8.33

CURRENT ASSETS

Trade Receivables 0.01 0

Cash And Cash Equivalents 2.7 2.62

Other Current Assets 0.26 0.27

Total Current Assets 2.97 2.89

Total Assets 15.04 11.23

22
CHAPTER-2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

OVERVIEW OF TECHNICAL ANALYSIS

A method of evaluating securities by analyzing statistics generated by market activity, such as


past prices and volume, Technical analysts do not attempt to measure a security’s intrinsic
value, but instead use charts to identify patterns that can suggest future activity.
Technical analysts believe that the historical performance of stocks and markets are indications
of future performance.
Technical Analysis has become increasingly popular over the past several years, as more and
more people believe that the historical performance of a stock is a strong indication of future
performance. People using fundamental analysis have always looked at the past performance
of companies by comparing fiscal data from previous quarters and years to determine future
growth. The difference lies in the technical analyst’s belief that securities move according to
very predictable trends and patterns. These trends continue until something happens to change
the trend, and until this change occurs, Price levels are predictable.
Investors successfully trade securities using only their knowledge of the security’s chart,
without even understanding what the company does. Although technical analysis is a terrific
tool, most agree it is much more effective when used in combination with fundamental analysis.

DOW THEORY
The ideas of Charles Dow, the first editor of the Wall Street Journal, form the basis of technical
analysis today. Charles Dow created the Industrial Average, of top blue chip stocks, and a
second average of top railroad stocks (now the Transport Average). He believed that the
behavior of the averages reflected the hopes and fears of the entire market. The behavior
patterns that he observed apply to markets throughout the world.

HOW TECHNICAL ANALYSIS IS DONE


Technical analysis done by identifying the trend from past movements and then using it as a
tool to predict future price movements of the stock with the use of the tools of technical
analysis.

23
ASSUMPTIONS OF TECHNICAL ANALYSIS

1. The Market Discounts Everything


A major criticism of technical analysis is that it only considers price movement, ignoring the
fundamental factors of the company. However, technical analysis assumes that, at any given
time, a stock's price reflects everything that has or could affect the company - including
fundamental factors. Technical analysts believe that the company's fundamentals, along with
broader economic factors and market psychology, are all priced into the stock, removing the
need to actually consider these factors separately.
This only leaves the analysis of price movement, which technical theory views as a product of
the supply and demand for a particular stock in the market.

2. Price Moves in Trends In technical analysis, price movements are believed to follow trends.
This means that after a trend has been established, the future price movement is more likely to
be in the same direction as the trend than to be against it. Most technical trading strategies are
based on this assumption.

3. History Tends To Repeat Itself


Another important idea in technical analysis is that history tends to repeat itself, mainly in
terms of price movement. The repetitive nature of price movements is attributed to market
psychology; in other words, market participants tend to provide a consistent reaction to similar
market stimuli over time. Technical analysis uses chart patterns to analyze market movements
and understand trends. Although many of these charts have been used for more than 100 years,
they are still believed to be relevant because they illustrate patterns in price movements that
often repeat themselves

INDICATORS OF THE STUDY:

1. Day Moving Average:


Day Moving averages are one of the most popular and easy to use tools available to the
technical analyst. They smooth a data series and make it easier to spot trends, something that
is especially helpful in volatile markets. They also form the building blocks for many other
technical indicators and overlays. The two most popular types of moving averages:

24
• Daily Moving Average (SMA) and
• Exponential moving Average (EMA). In this study day moving average has taken.
For example: a 5-day simple moving average is calculated by adding the closing prices for the
last 5 days and dividing the total by 5. 10 + 11 + 12 + 13 + 14 = 60 60 / 5 = 12.

The calculation is repeated for each price bar on the chart. The averages are then joined to form
a smooth curving line - the moving average line. Continuing our example, if the next closing
price in the average is 15, then this new period would be added and the oldest day, which is 10,
would be dropped. The new 5-day simple moving average would be calculated as follows:
11 + 12 + 13 + 14 + 15 =65
65 / 5 = 13
How Moving Averages are used:
The primary purpose of moving averages is to "smooth" data so that trends are more
discernable. They are used to construct market indicators and to assist in interpretation of price
charts. Moving average crossovers can also be used as signals to buy and sell. This is normally
done in two ways: (1) By watching for price to cross whatever moving average you may be
using, or (2) Running two moving averages of the same price or index, one faster than the other,
and buying or selling when the faster average crosses the slower. The weakness of moving
average buy and sell systems is that they will most likely become unprofitable when the stock
or index begins moving sideways in a narrow trading range. Under these circumstances price
never moves above or below the average far enough to become profitable.

2. Relative strength index:


The Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator.
The RSI compares the magnitude of a stock's recent gains to the magnitude of its recent losses
and turns that information into a number that ranges from 0 to 100. It takes a single parameter,
the number of time periods to use in the calculation.
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 basic components which are
25
the Average Gain, the Average Loss, the First RS, and the subsequent Smoothed RS's.
For a 20 -period RSI, the Average Gain equals the sum total all gains divided by 20. Even if
there are only 5 gains (losses), the total of those 5 gains (losses) is divided by the total number
of RSI periods in the calculation (7 in this case). The Average Loss is computed in a similar
manner. Calculation of the First RS value is straightforward: divide the Average Gain by the
Average Loss. All subsequent RS calculations use the previous period's Average Gain and
Average Loss for smoothing purposes.

Rate of change method:


The Rate of Change (ROC) indicator is a very simple yet effective oscillator that measures the
percent change in price from one period to the next. The ROC calculation compares the current
price with the price n periods ago.
ROC = Today’s Close-Close n periods ago /Close n period ago * 100
The plot forms an oscillator that fluctuates above and below the zero line as the Rate of Change
moves from positive to negative. The oscillator can be used as any other momentum oscillator
by looking for higher lows, lower highs, positive and negative divergences, and crosses above
and below zero for signals.
ROC can be plotted using different periods such as 10 days or 30 days by changing the value.
The longer the time span used, the greater the fluctuation in the indicator (in terms of both
magnitude and duration).

EVALUATION OF TECHNICAL ANALYSIS:


Technical analysis appears to be a highly controversial approach to security analysis. It has its
ardent votaries: it has its severe critics. The advocates of technical analysis offer the following
interrelated arguments in support of their position:
 Under the influence of crowed psychology, trend persists for quite some time.
Tools of technical analysis that help in identifying these trends early are helpful aids in
investment decision making.
 Shift in demand and supply are gradual rather than instantaneous. Technical analysis helps
in detecting these shifts rather early and hence provides clues to future price movement.
 Fundamental information about a company is absorbed and assimilated by the market over
a period. Hence, the price movement tends to continue in more or less the same direction
until the information is assimilated in the stock price.

26
 Charts provide what has happened in the past and hence give a sense of volatility that can
be expected from the stock. Future, the information on trading volume which is ordinarily
provide at the bottom of a bar chart gives a fair idea of the extent of the public interest in
the stock

The detractors of technical analysis believe that the technical analysis is a useless exercise.
Their arguments run as follows:
 Most technical analyst are not able to offer convincing explanation for the tools employed
by them
 Empirical evidence in support of the random-walk hypothesis casts its shadow over the
usefulness of technical analysis.
 By the time an uptrend or down may have been signaled by technical analysis, it already
have taken place.
 Ultimately, technical analysis must be a self-defeating proposition as more and more people
employ the value of such analysis tends to decline.

LITERATURE REVIEW:

1. Andrew W. Lo, Harry Mamaysky and Jiang Wang (August, 2000) had made
“Foundation of technical analysis: Computational Algorithms, Statistical Inference,
and Empirical Implementation” researcher investigate that methodical and automatic
approach to technical pattern recognition using nonparametric kernel regression applied on
U.S. stock from 1962 to 1996 to estimate the success of technical analysis.

2. Massoud Metghalachi, Xavier Garza-Gomez, Yong Glasure and Yung-Ho Chang


(September, 2007) in his paper “Profitable Technical Trading Rules for the Stock
Market” researcher studies that two moving average technical trading rule for the Austrian
Stock Market. Result point out that moving average rules certainly have predictive power
and could separate recurring price patterns for profitable trading.

3. R. Chitra (March, 2011) examined “Technical analysis on selected stocks of energy


sector” researcher has studies that trends and patterns in share price movement via moving

27
averages. By using technical analysis tools like Moving Averages and Relative Strength
Index for interpreting buy and sell price of the stock and by using beta of the stock to
discover the risk factor.

4. Adrin Taran-Morosan (July, 2011) in this paper titled “The relative strength index
revisited” researcher examined that relative strength index (RSI) one of the superlative and
extensively used technical analysis indicators. Researcher study aim to empirically
investigation the function of the RSI in its classic structure.

5. Chalothon Chootong and Ohm Sornil (November, 2012) in this paper titled “Trading
Signal Generation Using A Combination of Chart Pattern and Indicators” researcher
presents a trading tactic combining with price movement pattern, candlestick chart pattern
and trading indicators including Moving Averages, Exponential Moving Averages,
Bollinger Bands, On Balance Volume, Relative Strength Index, Moving Averages
Convergence Divergence and Stochastic Oscillators with intend to boost the return on
investment.

6. Dr. Sreemoyee Guha Roy (2013) had examined the title “Equity Research: Fundamental
and Technical Analysis” researcher examined that investor judgment most of the time
depends upon fundamental analysis of the stock. Fundamental analysis focus on identifying
and analyzing the factors that persuade security pricing whereas technical analysis
exclusively concerned with analyzing the market behavior.

7. Hemal Pandya (2013) in this research paper titled “Technical Analysis for Selected
Companies of Indian It Sector” researcher shows that different technical analysis tools
for analysis of the Indian IT sector companies which is listed on NSE and BSE. Foremost
tools and techniques used in this study are Line Chart, Column Chart, Candlestick Chart,
Exponential Moving Average (EMA), Moving Averages Convergence Divergence
(MACD), Relative Strength Index (RSI) and Rate of Change (ROC).

8. Ray R. Sturm (2013) in this paper titled “Market Efficiency and Technical Analysis
Can the Coexist?” researcher shows that market efficiency is generally accepted in the
academic society even though it cannot fully described truth. First and foremost due to
noise, prices simply reflect beliefs about a firm’s unknown true intrinsic value which makes
28
behavioral finance vital. Technical analysis attempts to determine changes in these beliefs
to predicting stock price.

9. J. G. Agrawal, Dr. V. S. Chourasia and Dr. A.K. Mittra (April, 2013) in his paper titled
“State-of-the-Art in Stock Prediction Techniques” analysis of stock prediction
techniques has been presented. There is exist gap between technologies and user
requirement for a secure and accurate stock predication system. There are various political
& economical factors which affect the stock market also taken into consideration other than
the technical indicators.

10. Magda B. Fayek, Hatem M. Ei-Boghdadi and Sherin M. Omran (April, 2013) had
examined the title “Multi-objective Optimization of Technical Stock Market Indicators
using GAs” researcher studies that core problem of technical analysis indicators usage is
to find out its appropriate parameters. In this paper new GA based technique for optimize
the parameters of a collection of technical indicators over two purpose functions Sharp ratio
and annual profit is anticipated. The techniques hold four indicators Double Exponential
Moving Averages (DEMAC), Relative Strength Index (RSI), Moving Averages
Convergence Divergence (MACD) and Moving Averages RSI (MARSI) and these
techniques improve profits.

11. Mr. Suresh A.S. (May, 2013) in this paper titled “A study on fundamental and technical
analysis” researcher found that fundamental factors of the companies is vital for
investment decision and economic as well as industry factor also persuade that investment
decision.

12. A. Jayakumar and K. Sumathi (September, 2013) he examined in his paper titled
“Technical Analysis of Share Price Movement with Special Reference to Public Sector
Bank” researcher found that various factors influence the share prices of banking
companies. For the analysis of bank share price internal and external factor also measured
which affects the share price.

13. Acheme David Ijegwa, Vincent Olufunke Rebecca, Folorunso Olusegun and Olusola
Olasunkanmi Isaac (2014) in this paper titled “A Predictive Stock Market Technical
Analysis Using Fuzzy Logic” researcher studies four indicators used in technical analysis.
29
Indicators are Moving Averages Convergence/Divergence (MACD), Relative Strength
Index (RSI), Stochastic Oscillator (SO) and On-Balance Volume (OBV). The fuzzy rules
are a combination of the trading rules for each of the indicators used as input variables of
the fuzzy system and for all four technical indicators used. The result is recommendation
to buy, sell or hold for that data is collected Nigerian Stock Exchange.

14. Jayakumar and K. Sumathi (January, 2014) his paper titled “Technical analysis of
Tata Motors with Special Reference to NSE” researcher has described about the uses of
technical analysis, while buying and selling decision of the Tata Motors stock taken with
technical analysis tool for that reason weekly average price is used for the analysis, to know
if the stock is technically strong or not.

15. C. Boobalan (January-March, 2014) in this paper titled “Technical analysis in selected
stocks of Indian companies” researcher has studies that by using fundamental analysis
and technical indicators future price of the stock have been predicted. Technical analysis
also required a fundamental understanding. Both technical and fundamental analysis helps
in investment decision.

16. Karuna Dhutti (February, 2014) examined “Stock price Movement of Information
Auto mobile Sector through Technical Analysis” researcher used Relative Strength
Index and chart patterns for IT sector stock analysis. Researcher also used statistical tools
like coefficient of variation and beta for risk and return relationship of security market. By
using these tools investors make judgment whether to buy or sell the stock.

17. Mrs. J. Nithya and Dr. G. Thamizhchelvan (July, 2014) examined “Effectiveness of
Technical Analysis in Banking Sector of Equity Market” researcher undertaking CNX
Nifty stock for technical analysis. To find out correct stock for investment Candlestick
charts and MACD, RSI indicator is used. By using RSI investor enhance their gain if RSI
increase and share price also increase this indicates that strong sell indication and if
decreasing share price and decreasing RSI which indicates strong buy indication for
investor. These indicators can play valuable role in the timing the stock market entry and
exit.

30
18. Bhamini Garg (October, 2014) in this Research article titled “Technical Analysis
Indicators: pathway towards Rewording Journey” researcher has endeavored to give an
insight into Technical Analysis Indicators as to how investor can attempt to improve the
success rate of increasing the profitability by taking right entry and exit positions into the
stock market. Technical analysis does not offer us with definite answers but it improves
trading capabilities to almost 80% that means 8 out of 10 trades will be successful.
Researcher provides an analysis of various indicators namely moving Averages, Relative
Strength Index, Average Directional Index, Moving Averages Convergence Divergence,
and Money Flow Index along with their application on the stock charts of the selected
companies, NSE Nifty and Bank Nifty in order to get clearer image.

19. George Joseph, Saranya G Das and Amrudha Romeo (February, 2015) examined “A
study on the formation of candlestick pattern with reference to nifty index for the past
five years” researcher study that unusual candlestick pattern and their precision. This
pattern helps to the investor in trading decision.

20. Mohd Naved and Prabhat Srivastava (April-June, 2015) his paper titled “Profitability
of Oscillators used in Technical analysis for Financial Market" researcher examine that
profitability of different kinds of oscillator used in technical analysis on market index of
NSE i.e. S&P CNX Nifty 50. Researcher used three kinds of oscillator i.e. stochastic
oscillator, RSI oscillator, Commodity Channel Index (CCI) and the outcome clearly
articulate that CCI outperform the remaining two oscillators.

21. Darshan ShivanandGadag and Manas Mayur (May, 2015) in this paper titled
“Technical analysis and stock market return” researcher study that moving average and
moving average crossover is the important technical analysis tool for any index and stock.
This tool helps to investor to recognize the current trend and the risk concerned in stock or
index.

22. Sudheer, V. (August, 2015) in this paper titled “Trading through technical analysis: an
empirical study from Indian stock market” researcher used Moving Average Convergence
Divergence (MACD) techniques to recognized stock is technically strong or not. MACD
amenities investor to recognize the current trend and risk associated with stock.

31
CHAPTER-3
RESEARCH DESIGN

TITLE OF THE STUDY:


“TECHNICAL ANALYSIS- STUDY ON SELECTED COMPANY’S STOCKS” at B.M.A
Wealth Creators Ltd. Bangalore

PROBLEM STATEMENT
The above study is undertaken to compare the selected technical analysis tools available for
forecasting. The study tries to capture the contradicting views of different tools used in
technical analysis. This study is aims to exploration of the topic “TECHNICAL ANALYSIS-
STUDY ON SELECTED COMPANY’S STOCKS”
Investment in the stock market and the process Portfolio management encompassing many
activities aimed at optimizing the investment of one’s funds. Five Phases can be identified in
this process:
1. Security analysis
2. Portfolio analysis
3. Portfolio selection
4. Portfolio revision
5. Portfolio evaluation
Each phase is an integral part of the whole process and the success of portfolio management
depends upon the efficiency in carrying out each of these phases.
The very first step consists of examining the risk –return characteristics of individual securities.
Security analysis is such a crucial activity because every investor has to decide on the type,
number and time timing of buying and selling of the shares.
Today, the thousands of securities available for an investor, he has to decide on;
Which stock to invest?
What type of security to buy?
When to sell the securities?
Where to Invest?
How to Invest?
Whether hold, sell or buy securities?
All these questions need to be answered before the investment can take place and also

32
determining prospective benefits from the investment in a security. The risk associated with
that investment.

OBJECTIVES OF THE STUDY


This study is aimed at undertaking technical analysis of selected companies included in the
Nifty. I will also demonstrate how technical analysis can be of invaluable use for the investors
in marketing their investment decisions.
The following are the main objectives of this study.
 To analyze tools of technical analysis can be used in forecasting stock prices.
 To know the movements (upward or downward) of stock prices of selected company stocks
through Technical analysis.
 To know how best we can utilize these analyses to meet the financial goals.

SCOPE OF THE STUDY


This study mainly focuses on investment decisions by predicting futures stock price
movements through the use of Technical analysis. This study is based on five companies
selected from those listed in National Stock Exchange and Bombay Stock Exchange, belonging
to Automobiles.
Following are the main scope of this study
 To help the investor in making decisions based on report
 Analysis of the shares of companies.
 Studying the stock price movement of the security market.
 Helps to identify trend reversals at an earlier stage to formulate the buying and selling
strategy.

The stocks so selected are as follows.


Tata Motors Ltd
Maruti Suzuki
TVS
Mahindra and Mahindra
Eicher Motors limited

33
Techniques of data analysis:
Technical tools used for the study are:
Chart patterns
 Line charts
Indicators of the study
Simple Moving average
Relative strength index (RSI)
Rate of Change Indicator

RESEARCH DESIGN
Research design is a plan of action to be carried out in connection with a research project. The
research design use in this study is explanatory and descriptive research. It involves the
collection of data from both the primary and secondary sources. The data so collected was
subjected to analysis by using the necessary tools that are relevant and idealistic.

RESEARCH METHODOLOGY
For the study, 5 companies were selected from Auto mobile sector. There are following steps
in methodology:
 Use of technical tools i.e. Simple moving Average, Relative Strength Index and Rate of
Change Indicator.
 Identification of patterns and trends in the stock price movements.
 Preparation of Line chart showing the price and volume of the stocks over the period of
time and Interpret charts.

Source of Data
Data used in this study are publicly available data collected from secondary source.
The major source of the data is the website of NSE India. Text books and Business journals
and periodicals and newspapers are also to collect some data and information.

LIMITATIONS OF THE STUDY


 The analysis is focused on five companies.
 The study is only for academic purpose
 Study restricted to a smaller sample size because of lack of time and resources.

34
 The recommendations made may not be a perfect prediction of the future as technical
analysis is not an absolutely accurate practice.

35
CHAPTER-4

ANALYSIS AND INTERPRETATION:

1. TATA MOTORS LTD:


Table showing Moving Average of Tata Motors 4.1

Date Close 10 Days moving 20 Days moving


average average
2-Jul-18 267.25
3-Jul-18 269.5
4-Jul-18 267
5-Jul-18 261.5
6-Jul-18 271.15
9-Jul-18 273.35
10-Jul-18 275.4
11-Jul-18 267.85
12-Jul-18 266.5
13-Jul-18 264.15 268.365
16-Jul-18 251.55 266.795
17-Jul-18 257.6 265.605
18-Jul-18 251.95 264.1
19-Jul-18 252.45 263.195
20-Jul-18 253.4 261.42
23-Jul-18 258.25 259.91
24-Jul-18 259.2 258.29
25-Jul-18 257.3 257.235
26-Jul-18 258.5 256.435
27-Jul-18 267.7 256.79 262.5775
30-Jul-18 267.3 258.365 262.58
31-Jul-18 264.15 259.02 262.3125
1-Aug-18 264.95 260.32 262.21
2-Aug-18 260.95 261.17 262.1825
3-Aug-18 258.75 261.705 261.5625
6-Aug-18 254.7 261.35 260.63
7-Aug-18 251.85 260.615 259.4525
8-Aug-18 255 260.385 258.81
9-Aug-18 257.5 260.285 258.36
10-Aug-18 250.25 258.54 257.665
13-Aug-18 248.55 256.665 257.515
14-Aug-18 248.7 255.12 257.07
16-Aug-18 251.15 253.74 257.03
17-Aug-18 257.35 253.38 257.275
20-Aug-18 269.55 254.46 258.0825
21-Aug-18 269.05 255.895 258.6225

36
23-Aug-18 257.4 256.45 258.5325
24-Aug-18 255.6 256.51 258.4475
27-Aug-18 258.9 256.65 258.4675
28-Aug-18 260.3 257.655 258.0975
29-Aug-18 261.6 258.96 257.8125
30-Aug-18 259.65 260.055 257.5875
31-Aug-18 267.1 261.65 257.695
3-Sep-18 266.7 262.585 257.9825
4-Sep-18 262.05 261.835 258.1475
5-Sep-18 265.55 261.485 258.69
6-Sep-18 269.95 262.74 259.595
7-Sep-18 277.5 264.93 260.72
10-Sep-18 275.55 266.595 261.6225
11-Sep-18 267.2 267.285 262.47
12-Sep-18 262.65 267.39 263.175
14-Sep-18 266.45 268.07 264.0625
17-Sep-18 260.2 267.38 264.515
18-Sep-18 251.45 265.855 264.22
19-Sep-18 252.7 264.92 263.3775
21-Sep-18 250.2 263.385 262.435
24-Sep-18 240.25 260.415 261.5775
25-Sep-18 240.9 256.755 260.8425
26-Sep-18 233.3 252.53 259.5625
27-Sep-18 225.55 248.365 257.825
28-Sep-18 223.45 244.445 255.9175
1-Oct-18 229.25 240.725 254.3975
3-Oct-18 227.55 237.46 252.42
4-Oct-18 223.25 234.64 250.2475
5-Oct-18 216.55 231.025 247.9725
8-Oct-18 212.75 227.28 245.3325
9-Oct-18 184.25 221.68 241.0475
10-Oct-18 188.75 216.465 236.61
11-Oct-18 182.75 211.41 231.97
12-Oct-18 183.4 207.195 227.78
15-Oct-18 184.3 203.28 223.8625
16-Oct-18 185.5 198.905 219.815
17-Oct-18 179.2 194.07 215.765
19-Oct-18 174.8 189.225 211.9325
22-Oct-18 170.55 184.625 207.825
23-Oct-18 170.65 180.415 203.8475
24-Oct-18 170.55 179.045 200.3625
25-Oct-18 165.4 176.71 196.5875
26-Oct-18 168.85 175.32 193.365
29-Oct-18 175.35 174.515 190.855
30-Oct-18 177.3 173.815 188.5475
31-Oct-18 178.65 173.13 186.0175

37
1-Nov-18 178.75 173.085 183.5775
2-Nov-18 190 174.605 181.915
5-Nov-18 189.65 176.515 180.57
6-Nov-18 192.85 178.735 179.575
7-Nov-18 195.1 181.19 180.1175
9-Nov-18 195.4 184.19 180.45
12-Nov-18 185.95 185.9 180.61
13-Nov-18 179.8 186.345 180.43
14-Nov-18 176.8 186.295 180.055
15-Nov-18 179.95 186.425 179.7775
16-Nov-18 179.4 186.49 179.7875
19-Nov-18 184.3 185.92 180.2625
20-Nov-18 183.3 185.285 180.9
21-Nov-18 184.15 184.415 181.575
22-Nov-18 182.25 183.13 182.16
26-Nov-18 181.7 181.76 182.975
27-Nov-18 180 181.165 183.5325
28-Nov-18 174.35 180.62 183.4825
29-Nov-18 177.3 180.67 183.4825
30-Nov-18 171.95 179.87 183.1475
3-Dec-18 175.4 179.47 182.98
4-Dec-18 175.7 178.61 182.265
5-Dec-18 169.2 177.2 181.2425
6-Dec-18 162.4 175.025 179.72
7-Dec-18 162.45 173.045 178.0875
10-Dec-18 156.85 170.56 176.16
11-Dec-18 158.2 168.38 174.7725
12-Dec-18 163.9 167.335 173.9775
13-Dec-18 166.45 166.25 173.46
14-Dec-18 166.9 165.745 172.8075
17-Dec-18 173.75 165.58 172.525
18-Dec-18 174.4 165.45 172.03
19-Dec-18 173.65 165.895 171.5475
20-Dec-18 175.95 167.25 171.1375
21-Dec-18 175.9 168.595 170.82
24-Dec-18 172.3 170.14 170.35
26-Dec-18 170.9 171.41 169.895
27-Dec-18 168.8 171.9 169.6175
28-Dec-18 170.8 172.335 169.2925
31-Dec-18 172.6 172.905 169.325

38
RATE OF CHANGE INDICATOR:

Table showing ROC of Tata Motors 4.2

Date Close 20 DAY ROC


2-Jul-18 267.25
3-Jul-18 269.5
4-Jul-18 267
5-Jul-18 261.5
6-Jul-18 271.15
9-Jul-18 273.35
10-Jul-18 275.4
11-Jul-18 267.85
12-Jul-18 266.5
13-Jul-18 264.15
16-Jul-18 251.55
17-Jul-18 257.6
18-Jul-18 251.95
19-Jul-18 252.45
20-Jul-18 253.4
23-Jul-18 258.25
24-Jul-18 259.2
25-Jul-18 257.3
26-Jul-18 258.5
27-Jul-18 267.7
30-Jul-18 267.3 0.018709074
31-Jul-18 264.15 -1.985157699
1-Aug-18 264.95 -0.767790262
2-Aug-18 260.95 -0.210325048
3-Aug-18 258.75 -4.573114512
6-Aug-18 254.7 -6.82275471
7-Aug-18 251.85 -8.551198257
8-Aug-18 255 -4.797461266
9-Aug-18 257.5 -3.377110694
10-Aug-18 250.25 -5.262161651
13-Aug-18 248.55 -1.192605844
14-Aug-18 248.7 -3.454968944
16-Aug-18 251.15 -0.317523318
17-Aug-18 257.35 1.940978412
20-Aug-18 269.55 6.37332281
21-Aug-18 269.05 4.181994192
23-Aug-18 257.4 -0.694444444
24-Aug-18 255.6 -0.660707346
27-Aug-18 258.9 0.154738878
28-Aug-18 260.3 -2.764288383

39
29-Aug-18 261.6 -2.132435466
30-Aug-18 259.65 -1.703577513
31-Aug-18 267.1 0.811473863
3-Sep-18 266.7 2.203487258
4-Sep-18 262.05 1.275362319
5-Sep-18 265.55 4.259913624
6-Sep-18 269.95 7.18681755
7-Sep-18 277.5 8.823529412
10-Sep-18 275.55 7.009708738
11-Sep-18 267.2 6.773226773
12-Sep-18 262.65 5.672902836
14-Sep-18 266.45 7.137112988
17-Sep-18 260.2 3.603424248
18-Sep-18 251.45 -2.29259763
19-Sep-18 252.7 -6.25115934
21-Sep-18 250.2 -7.006132689
24-Sep-18 240.25 -6.662781663
25-Sep-18 240.9 -5.751173709
26-Sep-18 233.3 -9.88798764
27-Sep-18 225.55 -13.34998079
28-Sep-18 223.45 -14.58333333
1-Oct-18 229.25 -11.70806855
3-Oct-18 227.55 -14.80718832
4-Oct-18 223.25 -16.29171354
5-Oct-18 216.55 -17.36309865
8-Oct-18 212.75 -19.88326116
9-Oct-18 184.25 -31.74661974
10-Oct-18 188.75 -31.98198198
11-Oct-18 182.75 -33.67809835
12-Oct-18 183.4 -31.36227545
15-Oct-18 184.3 -29.83057301
16-Oct-18 185.5 -30.38093451
17-Oct-18 179.2 -31.12990008
19-Oct-18 174.8 -30.48319745
22-Oct-18 170.55 -32.50890384
23-Oct-18 170.65 -31.79456435
24-Oct-18 170.55 -29.01144641
25-Oct-18 165.4 -31.34080531
26-Oct-18 168.85 -27.62537505
29-Oct-18 175.35 -22.25670583
30-Oct-18 177.3 -20.65339002
31-Oct-18 178.65 -22.07197383
1-Nov-18 178.75 -21.44583608
2-Nov-18 190 -14.89361702

40
5-Nov-18 189.65 -12.42207342
6-Nov-18 192.85 -9.353701528
7-Nov-18 195.1 5.888738128
9-Nov-18 195.4 3.523178808
12-Nov-18 185.95 1.751025992
13-Nov-18 179.8 -1.962922574
14-Nov-18 176.8 -4.06945198
15-Nov-18 179.95 -2.991913747
16-Nov-18 179.4 0.111607143
19-Nov-18 184.3 5.434782609
20-Nov-18 183.3 7.475813544
21-Nov-18 184.15 7.910928802
22-Nov-18 182.25 6.860158311
26-Nov-18 181.7 9.854897219
27-Nov-18 180 6.603494226
28-Nov-18 174.35 -0.570287995
29-Nov-18 177.3 0
30-Nov-18 171.95 -3.750349846
3-Dec-18 175.4 -1.874125874
4-Dec-18 175.7 -7.526315789
5-Dec-18 169.2 -10.78302136
6-Dec-18 162.4 -15.78947368
7-Dec-18 162.45 -16.73500769
10-Dec-18 156.85 -19.72876151
11-Dec-18 158.2 -14.9233665
12-Dec-18 163.9 -8.843159066
13-Dec-18 166.45 -5.854072398
14-Dec-18 166.9 -7.252014448
17-Dec-18 173.75 -3.149386845
18-Dec-18 174.4 -5.371676614
19-Dec-18 173.65 -5.264593562
20-Dec-18 175.95 -4.452891664
21-Dec-18 175.9 -3.484224966
24-Dec-18 172.3 -5.173362686
26-Dec-18 170.9 -5.055555556
27-Dec-18 168.8 -3.183252079
28-Dec-18 170.8 -3.666102651
31-Dec-18 172.6 0.378016865

41
RELATIVE STRENGTH INDEX:

Table Showing RSI of Tata Motors 4.3

Date Close Change Gain loss Average gain Average loss RS 14 day RSI
2-Jul-18 267.25
3-Jul-18 269.5 2.25 2.25 0
4-Jul-18 267 -2.5 0 2.5
5-Jul-18 261.5 -5.5 0 5.5
6-Jul-18 271.15 9.65 9.65 0
9-Jul-18 273.35 2.2 2.2 0
10-Jul-18 275.4 2.05 2.05 0
11-Jul-18 267.85 -7.55 0 7.55
12-Jul-18 266.5 -1.35 0 1.35
13-Jul-18 264.15 -2.35 0 2.35
16-Jul-18 251.55 -12.6 0 12.6
17-Jul-18 257.6 6.05 6.05 0
18-Jul-18 251.95 -5.65 0 5.65
19-Jul-18 252.45 0.5 0.5 0
20-Jul-18 253.4 0.95 0.95 0 1.689286 2.678571 0.630667 38.67539
23-Jul-18 258.25 4.85 4.85 0 1.875 2.678571 0.7 41.17647
24-Jul-18 259.2 0.95 0.95 0 1.942857 2.5 0.777143 43.7299
25-Jul-18 257.3 -1.9 0 1.9 1.942857 2.242857 0.866242 46.41638
26-Jul-18 258.5 1.2 1.2 0 1.339286 2.242857 0.597134 37.38784
27-Jul-18 267.7 9.2 9.2 0 1.839286 2.242857 0.820064 45.05687
30-Jul-18 267.3 -0.4 0 0.4 1.692857 2.271429 0.745283 42.7027
31-Jul-18 264.15 -3.15 0 3.15 1.692857 1.957143 0.864964 46.37965
1-Aug-18 264.95 0.8 0.8 0 1.75 1.860714 0.940499 48.46686
2-Aug-18 260.95 -4 0 4 1.75 1.978571 0.884477 46.93487
3-Aug-18 258.75 -2.2 0 2.2 1.75 1.235714 1.416185 58.61244
6-Aug-18 254.7 -4.05 0 4.05 1.317857 1.525 0.864169 46.35678
7-Aug-18 251.85 -2.85 0 2.85 1.317857 1.325 0.994609 49.86486
8-Aug-18 255 3.15 3.15 0 1.507143 1.325 1.137466 53.21564
9-Aug-18 257.5 2.5 2.5 0 1.617857 1.325 1.221024 54.97573
10-Aug-18 250.25 -7.25 0 7.25 1.271429 1.842857 0.689922 40.82569
13-Aug-18 248.55 -1.7 0 1.7 1.203571 1.964286 0.612727 37.99324
14-Aug-18 248.7 0.15 0.15 0 1.214286 1.828571 0.664063 39.9061
16-Aug-18 251.15 2.45 2.45 0 1.303571 1.828571 0.712891 41.61916
17-Aug-18 257.35 6.2 6.2 0 1.089286 1.828571 0.595703 37.3317
20-Aug-18 269.55 12.2 12.2 0 1.960714 1.8 1.089286 52.13675
21-Aug-18 269.05 -0.5 0 0.5 1.960714 1.610714 1.217295 54.9
23-Aug-18 257.4 -11.65 0 11.65 1.903571 2.442857 0.77924 43.79622
24-Aug-18 255.6 -1.8 0 1.8 1.903571 2.285714 0.832813 45.43905
27-Aug-18 258.9 3.3 3.3 0 2.139286 2.128571 1.005034 50.12552
28-Aug-18 260.3 1.4 1.4 0 2.239286 1.839286 1.217476 54.90368
29-Aug-18 261.6 1.3 1.3 0 2.332143 1.635714 1.425764 58.77588

42
30-Aug-18 259.65 -1.95 0 1.95 2.107143 1.775 1.187123 54.27783
31-Aug-18 267.1 7.45 7.45 0 2.460714 1.775 1.386318 58.09444
3-Sep-18 266.7 -0.4 0 0.4 2.460714 1.285714 1.913889 65.6816
4-Sep-18 262.05 -4.65 0 4.65 2.460714 1.496429 1.644391 62.18412
5-Sep-18 265.55 3.5 3.5 0 2.7 1.496429 1.804296 64.34043
6-Sep-18 269.95 4.4 4.4 0 2.839286 1.496429 1.897375 65.486
7-Sep-18 277.5 7.55 7.55 0 2.935714 1.496429 1.961814 66.23691
10-Sep-18 275.55 -1.95 0 1.95 2.064286 1.635714 1.262009 55.79151
11-Sep-18 267.2 -8.35 0 8.35 2.064286 2.196429 0.939837 48.44929
12-Sep-18 262.65 -4.55 0 4.55 2.064286 1.689286 1.221987 54.99524
14-Sep-18 266.45 3.8 3.8 0 2.335714 1.560714 1.496568 59.945
17-Sep-18 260.2 -6.25 0 6.25 2.1 2.007143 1.046263 51.13043
18-Sep-18 251.45 -8.75 0 8.75 2 2.632143 0.759837 43.17656
19-Sep-18 252.7 1.25 1.25 0 1.996429 2.632143 0.75848 43.13272
21-Sep-18 250.2 -2.5 0 2.5 1.996429 2.671429 0.747326 42.7697
24-Sep-18 240.25 -9.95 0 9.95 1.464286 3.382143 0.432946 30.21371
25-Sep-18 240.9 0.65 0.65 0 1.510714 3.353571 0.450479 31.05727
26-Sep-18 233.3 -7.6 0 7.6 1.510714 3.564286 0.423848 29.76777
27-Sep-18 225.55 -7.75 0 7.75 1.260714 4.117857 0.306158 23.43958
28-Sep-18 223.45 -2.1 0 2.1 0.946429 4.267857 0.221757 18.15068
1-Oct-18 229.25 5.8 5.8 0 0.821429 4.267857 0.192469 16.14035
3-Oct-18 227.55 -1.7 0 1.7 0.821429 4.25 0.193277 16.19718
4-Oct-18 223.25 -4.3 0 4.3 0.821429 3.960714 0.207394 17.177
5-Oct-18 216.55 -6.7 0 6.7 0.821429 4.114286 0.199653 16.64255
8-Oct-18 212.75 -3.8 0 3.8 0.55 4.385714 0.125407 11.14327
9-Oct-18 184.25 -28.5 0 28.5 0.55 5.975 0.09205 8.429119
10-Oct-18 188.75 4.5 4.5 0 0.871429 5.35 0.162884 14.00689
11-Oct-18 182.75 -6 0 6 0.782143 5.778571 0.135352 11.92161
12-Oct-18 183.4 0.65 0.65 0 0.828571 5.6 0.147959 12.88889
15-Oct-18 184.3 0.9 0.9 0 0.892857 4.889286 0.182615 15.44163
16-Oct-18 185.5 1.2 1.2 0 0.932143 4.889286 0.19065 16.01227
17-Oct-18 179.2 -6.3 0 6.3 0.932143 4.796429 0.194341 16.27182
19-Oct-18 174.8 -4.4 0 4.4 0.932143 4.557143 0.204545 16.98113
22-Oct-18 170.55 -4.25 0 4.25 0.932143 4.710714 0.197877 16.51899
23-Oct-18 170.65 0.1 0.1 0 0.525 4.710714 0.111448 10.02729
24-Oct-18 170.55 -0.1 0 0.1 0.525 4.596429 0.114219 10.25105
25-Oct-18 165.4 -5.15 0 5.15 0.525 4.657143 0.11273 10.13094
26-Oct-18 168.85 3.45 3.45 0 0.771429 4.178571 0.184615 15.58442
29-Oct-18 175.35 6.5 6.5 0 1.235714 3.907143 0.316271 24.02778
30-Oct-18 177.3 1.95 1.95 0 1.375 1.871429 0.734733 42.35424
31-Oct-18 178.65 1.35 1.35 0 1.15 1.871429 0.614504 38.06147
1-Nov-18 178.75 0.1 0.1 0 1.157143 1.442857 0.80198 44.50549
2-Nov-18 190 11.25 11.25 0 1.914286 1.442857 1.326733 57.02128
5-Nov-18 189.65 -0.35 0 0.35 1.85 1.467857 1.260341 55.75888
6-Nov-18 192.85 3.2 3.2 0 1.992857 1.467857 1.357664 57.58514
7-Nov-18 195.1 2.25 2.25 0 2.153571 1.017857 2.115789 67.90541

43
9-Nov-18 195.4 0.3 0.3 0 2.175 0.703571 3.091371 75.55831
12-Nov-18 185.95 -9.45 0 9.45 2.175 1.075 2.023256 66.92308
13-Nov-18 179.8 -6.15 0 6.15 2.167857 1.514286 1.431604 58.87488
14-Nov-18 176.8 -3 0 3 2.167857 1.721429 1.259336 55.73921
15-Nov-18 179.95 3.15 3.15 0 2.392857 1.353571 1.76781 63.87035
16-Nov-18 179.4 -0.55 0 0.55 2.146429 1.392857 1.541026 60.64581
19-Nov-18 184.3 4.9 4.9 0 2.032143 1.392857 1.458974 59.33264
20-Nov-18 183.3 -1 0 1 1.892857 1.464286 1.292683 56.38298
21-Nov-18 184.15 0.85 0.85 0 1.857143 1.464286 1.268293 55.91398
22-Nov-18 182.25 -1.9 0 1.9 1.85 1.6 1.15625 53.62319
26-Nov-18 181.7 -0.55 0 0.55 1.046429 1.639286 0.638344 38.96277
27-Nov-18 180 -1.7 0 1.7 1.046429 1.735714 0.602881 37.61232
28-Nov-18 174.35 -5.65 0 5.65 0.817857 2.139286 0.382304 27.657
29-Nov-18 177.3 2.95 2.95 0 0.867857 2.139286 0.405676 28.85986
30-Nov-18 171.95 -5.35 0 5.35 0.846429 2.521429 0.335694 25.13256
3-Dec-18 175.4 3.45 3.45 0 1.092857 1.846429 0.591876 37.18104
4-Dec-18 175.7 0.3 0.3 0 1.114286 1.407143 0.791878 44.19263
5-Dec-18 169.2 -6.5 0 6.5 1.114286 1.657143 0.672414 40.20619
6-Dec-18 162.4 -6.8 0 6.8 0.889286 2.142857 0.415 29.32862
7-Dec-18 162.45 0.05 0.05 0 0.892857 2.103571 0.424448 29.79738
10-Dec-18 156.85 -5.6 0 5.6 0.542857 2.503571 0.216833 17.81946
11-Dec-18 158.2 1.35 1.35 0 0.639286 2.432143 0.262849 20.81395
12-Dec-18 163.9 5.7 5.7 0 0.985714 2.432143 0.405286 28.84013
13-Dec-18 166.45 2.55 2.55 0 1.167857 2.296429 0.508554 33.71134
14-Dec-18 166.9 0.45 0.45 0 1.2 2.257143 0.531646 34.71074
17-Dec-18 173.75 6.85 6.85 0 1.689286 2.135714 0.79097 44.16433
18-Dec-18 174.4 0.65 0.65 0 1.735714 1.732143 1.002062 50.05149
19-Dec-18 173.65 -0.75 0 0.75 1.525 1.785714 0.854 46.06257
20-Dec-18 175.95 2.3 2.3 0 1.689286 1.403571 1.203562 54.61894
21-Dec-18 175.9 -0.05 0 0.05 1.442857 1.407143 1.025381 50.62657
24-Dec-18 172.3 -3.6 0 3.6 1.421429 1.664286 0.854077 46.06481
26-Dec-18 170.9 -1.4 0 1.4 1.421429 1.3 1.093407 52.23097
27-Dec-18 168.8 -2.1 0 2.1 1.421429 0.964286 1.474074 59.58084
28-Dec-18 170.8 2 2 0 1.560714 0.964286 1.618519 61.81047
31-Dec-18 172.6 1.8 1.8 0 1.689286 0.564286 2.993671 74.96038

44
SHORT TERM MOVING AVERAGE:

Chart Showing the Short term Moving Average of Tata Motors 4.1

SHORT TERM MOVING AVERAGE


300
250
Stock Price

200
150
100
50
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 Days moving average

Interpretation: In the above chart, blue color indicates closing price. Orange color indicates
short term moving average (i.e., 10 days MV). Moving averages are used along with the price
of the scrip. In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during August &September.
Upward penetration of a falling average would indicate the possibility of the further rise.
Hence, the buy signal is generated during November & December.

LONG TERM MOVING AVERAGE:

Chart Showing Long Term Moving Average of Tata Motors 4.2

LONG TERM MOVING AVERAGE


300
250
Stock Price

200
150
100
50
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 20 Days moving average

45
Interpretation: This chart is similar to previous chart but it is long term moving average. In
the above chart, blue color indicates closing price. Orange color indicates long term moving
average (i.e., 20 days MV). Moving averages are used along with the price of the scrip. In the
above chart, downward penetration of the rising average indicates the possibility of a further
fall. Hence, the sell signal is generated during September. Upward penetration of a falling
average would indicate the possibility of the further rise. Hence, the buy signal is generated
during November & December.

LONG TERM AND SHORT TERM MOVING AVERAGE:


Chart showing he Short term and long term Moving Average of Tata Motors 4.3

SHORT TERM AND LONG TERM MOVING AVERAGE


300

250

200
Stock price

150

100

50

0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months
Close 10 Days moving average 20 Days moving average

Interpretation: In the above chart, green color indicates closing price. Orange color indicates
short term moving average (i.e., 10 days MV) & Grey color indicates long term moving average
(i.e., 20 days MV). When long term & short term moving averages are drawn, the intersection
of two moving averages generates buy or sell signal. In the above chart, the scrip price is
falling & the short term moving average intersects the long term moving average from above
falls below it during the month of September. Hence, the sell signal is generated. The scrip
price is rising & the short term moving average intersects the long term moving average from
below during the month of November & December, indicating a further rise in price, gives a
buy signal. The short term movement may not hold long. Hence, the investor should wait for
the long term average to turn up before buying or selling the scrip.

46
RATE OF CHANGE INDICATOR:

Chart Showing the ROC of Tata Motors 4.4

20 DAY ROC
20

10

0
Stock price

2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18


-10
20 DAY ROC
-20

-30

-40
Months

Interpretation: ROC measures the rate of change between the current price & the price ‘n’
number of days in past. ROC helps to find out the overbought & oversold positions in scrip. In
the above chart, scrip’s ROC reaches the historic high value in the month of November, the
scrip is in overbought region & a fall in the value can be anticipated. In November, the investor
can sell the scrip. Similarly, scrip’s ROC reaches the historic low value in the month of
October, the scrip is in oversold region & a rise in the scrip’s price can be anticipated. In
October, the investor can buy the scrip.

RELATIVE STRENGTH INDEX:

Chart Showing the RSI of Tata Motors 4.5

14 day RSI
80
70
60
Stock Price

50
40
30 14 day RSI
20
10
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Month

47
Interpretation: When the RSI value is 30 and below that value, then it is the signal for buying.
It indicates the oversold point. Where in the selling pressure is overtaken by slowly developing
buying pressure, curtailing the further downward movement of the stock price. Buying points
from the RSI graph for Tata Motors are 24th and 28th of September, 5th, 9th and 24th of October.
When it has crossed the 70, then sell signal is indicated. Following are the selling points from
the RSI graph for Tata Motors are 9th of Nov and 31st of December.

MARUTI SUZUKI:

Moving Average:

Table Showing the Moving average of Marti Suzuki 4.4

Date Close 10 day moving average 20 day moving average


2-Jul-18 8,771.30
3-Jul-18 8,825.60
4-Jul-18 8,821.05
5-Jul-18 8,975.15
6-Jul-18 9,220.80
9-Jul-18 9,347.05
10-Jul-18 9,317.50
11-Jul-18 9,374.90
12-Jul-18 9,531.00
13-Jul-18 9,384.70 9,156.91
16-Jul-18 9,347.00 9,214.48
17-Jul-18 9,431.05 9,275.02
18-Jul-18 9,385.30 9,331.45
19-Jul-18 9,445.40 9,378.47
20-Jul-18 9,366.80 9,393.07
23-Jul-18 9,389.10 9,397.28
24-Jul-18 9,398.95 9,405.42
25-Jul-18 9,701.00 9,438.03
26-Jul-18 9,832.45 9,468.18
27-Jul-18 9,758.95 9,505.60 9,331.25
30-Jul-18 9,396.25 9,510.53 9,362.50
31-Jul-18 9,310.40 9,498.46 9,386.74
1-Aug-18 9,381.90 9,498.12 9,414.78
2-Aug-18 9,520.55 9,505.64 9,442.05
3-Aug-18 9,341.60 9,503.12 9,448.09
6-Aug-18 9,142.40 9,478.45 9,437.86
7-Aug-18 9,187.00 9,457.25 9,431.34
8-Aug-18 9,286.40 9,415.79 9,426.91

48
9-Aug-18 9,411.50 9,373.70 9,420.94
10-Aug-18 9,207.40 9,318.54 9,412.07
13-Aug-18 9,146.05 9,293.52 9,402.02
14-Aug-18 9,080.85 9,270.57 9,384.51
14-Aug-18 9,148.25 9,247.20 9,372.66
16-Aug-18 9,132.60 9,208.41 9,357.02
16-Aug-18 9,200.55 9,194.30 9,348.71
17-Aug-18 9,152.10 9,195.27 9,336.86
20-Aug-18 9,074.35 9,184.01 9,320.63
21-Aug-18 9,113.30 9,166.70 9,291.24
23-Aug-18 9,223.30 9,147.88 9,260.79
24-Aug-18 9,163.80 9,143.52 9,231.03
27-Aug-18 9,245.25 9,153.44 9,223.48
28-Aug-18 9,427.95 9,188.15 9,229.36
29-Aug-18 9,368.10 9,210.13 9,228.67
30-Aug-18 9,205.80 9,217.45 9,212.93
31-Aug-18 9,096.40 9,207.04 9,200.67
3-Sep-18 8,902.15 9,182.04 9,188.66
4-Sep-18 8,868.50 9,161.46 9,172.73
5-Sep-18 8,896.10 9,139.74 9,153.22
6-Sep-18 8,759.85 9,093.39 9,120.63
7-Sep-18 8,719.20 9,048.93 9,096.22
10-Sep-18 8,639.40 8,988.35 9,070.89
11-Sep-18 8,517.05 8,897.26 9,042.70
12-Sep-18 8,493.95 8,809.84 9,009.99
14-Sep-18 8,626.70 8,751.93 8,984.69
17-Sep-18 8,537.80 8,696.07 8,951.55
18-Sep-18 8,399.15 8,645.77 8,913.91
19-Sep-18 8,210.35 8,579.96 8,870.71
21-Sep-18 8,040.15 8,494.36 8,817.05
24-Sep-18 7,793.05 8,397.68 8,745.54
25-Sep-18 7,999.45 8,325.71 8,687.32
26-Sep-18 7,842.55 8,246.02 8,617.18
27-Sep-18 7,553.05 8,149.62 8,523.44
28-Sep-18 7,347.95 8,035.02 8,422.43
1-Oct-18 7,463.95 7,918.75 8,335.34
3-Oct-18 7,246.00 7,789.57 8,242.82
4-Oct-18 7,198.75 7,669.53 8,157.65
5-Oct-18 6,904.35 7,538.93 8,059.44
8-Oct-18 6,889.75 7,423.89 7,959.12
9-Oct-18 6,699.45 7,314.53 7,856.10
10-Oct-18 6,985.85 7,213.17 7,769.44
11-Oct-18 6,875.50 7,116.46 7,681.24
12-Oct-18 7,287.20 7,089.88 7,619.75
15-Oct-18 7,182.00 7,073.28 7,554.15
16-Oct-18 7,150.90 7,041.98 7,480.36

49
17-Oct-18 6,885.60 7,005.94 7,397.75
19-Oct-18 6,756.45 6,961.71 7,315.62
22-Oct-18 6,812.20 6,952.49 7,245.71
23-Oct-18 6,771.30 6,940.65 7,182.27
24-Oct-18 6,768.30 6,947.53 7,131.03
25-Oct-18 6,723.20 6,921.27 7,067.22
26-Oct-18 6,717.30 6,905.45 7,010.95
29-Oct-18 6,798.70 6,856.60 6,973.24
30-Oct-18 6,697.00 6,808.10 6,940.69
31-Oct-18 6,616.40 6,754.65 6,898.31
1-Nov-18 6,711.75 6,737.26 6,871.60
2-Nov-18 7,135.45 6,775.16 6,868.43
5-Nov-18 7,177.25 6,811.67 6,882.08
6-Nov-18 7,075.00 6,842.04 6,891.34
7-Nov-18 7,127.90 6,878.00 6,912.76
9-Nov-18 7,283.50 6,934.03 6,927.65
12-Nov-18 7,087.80 6,971.08 6,938.26
13-Nov-18 7,150.45 7,006.25 6,931.42
14-Nov-18 7,369.05 7,073.46 6,940.78
15-Nov-18 7,478.30 7,159.65 6,957.15
16-Nov-18 7,341.20 7,222.59 6,979.93
19-Nov-18 7,411.65 7,250.21 7,012.69
20-Nov-18 7,333.95 7,265.88 7,038.77
21-Nov-18 7,424.50 7,300.83 7,071.43
22-Nov-18 7,411.10 7,329.15 7,103.57
26-Nov-18 7,554.70 7,356.27 7,145.15
27-Nov-18 7,647.60 7,412.25 7,191.66
28-Nov-18 7,574.20 7,454.63 7,230.44
29-Nov-18 7,546.75 7,472.40 7,272.93
30-Nov-18 7,661.60 7,490.73 7,325.19
3-Dec-18 7,779.95 7,534.60 7,378.60
4-Dec-18 7,721.65 7,565.60 7,407.91
5-Dec-18 7,554.05 7,587.61 7,426.75
6-Dec-18 7,209.70 7,566.13 7,433.48
7-Dec-18 7,313.95 7,556.42 7,442.78
10-Dec-18 7,350.50 7,536.00 7,446.13
11-Dec-18 7,305.35 7,501.77 7,457.01
12-Dec-18 7,471.85 7,491.54 7,473.08
13-Dec-18 7,670.50 7,503.91 7,488.15
14-Dec-18 7,662.15 7,503.97 7,497.35
17-Dec-18 7,734.05 7,499.38 7,516.99
18-Dec-18 7,772.35 7,504.45 7,535.02
19-Dec-18 7,936.00 7,542.64 7,565.13
20-Dec-18 7,807.05 7,602.38 7,584.25
21-Dec-18 7,536.30 7,624.61 7,590.51
24-Dec-18 7,529.15 7,642.48 7,589.24

50
26-Dec-18 7,569.10 7,668.85 7,585.31
27-Dec-18 7,499.95 7,671.66 7,581.60
28-Dec-18 7,505.55 7,655.17 7,579.54
31-Dec-18 7,465.50 7,635.50 7,569.73

Rate of change indicator:


Table Showing the ROC of Maruti Suzuki 4.5
Date Close 20 days ROC
2-Jul-18 8,771.30
3-Jul-18 8,825.60
4-Jul-18 8,821.05
5-Jul-18 8,975.15
6-Jul-18 9,220.80
9-Jul-18 9,347.05
10-Jul-18 9,317.50
11-Jul-18 9,374.90
12-Jul-18 9,531.00
13-Jul-18 9,384.70
16-Jul-18 9,347.00
17-Jul-18 9,431.05
18-Jul-18 9,385.30
19-Jul-18 9,445.40
20-Jul-18 9,366.80
23-Jul-18 9,389.10
24-Jul-18 9,398.95
25-Jul-18 9,701.00
26-Jul-18 9,832.45
27-Jul-18 9,758.95
30-Jul-18 9,396.25 7.12494157
31-Jul-18 9,310.40 5.49311095
1-Aug-18 9,381.90 6.35808662
2-Aug-18 9,520.55 6.07677866
3-Aug-18 9,341.60 1.31008155
6-Aug-18 9,142.40 -2.1894608
7-Aug-18 9,187.00 -1.4005903
8-Aug-18 9,286.40 -0.9440101
9-Aug-18 9,411.50 -1.2538034
10-Aug-18 9,207.40 -1.8892453
13-Aug-18 9,146.05 -2.1498877
14-Aug-18 9,080.85 -3.7132663
14-Aug-18 9,148.25 -2.5257584
16-Aug-18 9,132.60 -3.3116649
16-Aug-18 9,200.55 -1.7748858
17-Aug-18 9,152.10 -2.5242036
20-Aug-18 9,074.35 -3.4535773
21-Aug-18 9,113.30 -6.0581383
23-Aug-18 9,223.30 -6.1953023
24-Aug-18 9,163.80 -6.0985044
27-Aug-18 9,245.25 -1.6070241
28-Aug-18 9,427.95 1.26256659

51
29-Aug-18 9,368.10 -0.1470917
30-Aug-18 9,205.80 -3.3060065
31-Aug-18 9,096.40 -2.624818
3-Sep-18 8,902.15 -2.6278658
4-Sep-18 8,868.50 -3.4668553
5-Sep-18 8,896.10 -4.2029204
6-Sep-18 8,759.85 -6.923976
7-Sep-18 8,719.20 -5.3022569
10-Sep-18 8,639.40 -5.5395499
11-Sep-18 8,517.05 -6.2086699
12-Sep-18 8,493.95 -7.1521876
14-Sep-18 8,626.70 -5.5394959
17-Sep-18 8,537.80 -7.2033737
18-Sep-18 8,399.15 -8.2270736
19-Sep-18 8,210.35 -9.5213431
21-Sep-18 8,040.15 -11.775647
24-Sep-18 7,793.05 -15.506923
25-Sep-18 7,999.45 -12.705974
26-Sep-18 7,842.55 -15.172115
27-Sep-18 7,553.05 -19.886614
28-Sep-18 7,347.95 -21.564138
1-Oct-18 7,463.95 -18.921224
3-Oct-18 7,246.00 -20.342113
4-Oct-18 7,198.75 -19.134703
5-Oct-18 6,904.35 -22.147488
8-Oct-18 6,889.75 -22.553141
9-Oct-18 6,699.45 -23.520951
10-Oct-18 6,985.85 -19.879691
11-Oct-18 6,875.50 -20.416927
12-Oct-18 7,287.20 -14.439859
15-Oct-18 7,182.00 -15.4457
16-Oct-18 7,150.90 -17.107353
17-Oct-18 6,885.60 -19.351589
19-Oct-18 6,756.45 -19.557931
22-Oct-18 6,812.20 -17.029116
23-Oct-18 6,771.30 -15.781422
24-Oct-18 6,768.30 -13.149537
25-Oct-18 6,723.20 -15.954222
26-Oct-18 6,717.30 -14.348012
29-Oct-18 6,798.70 -9.9873561
30-Oct-18 6,697.00 -8.8589334
31-Oct-18 6,616.40 -11.355248
1-Nov-18 6,711.75 -7.3730334
2-Nov-18 7,135.45 -0.8793193
5-Nov-18 7,177.25 3.95258062
6-Nov-18 7,075.00 2.68877681
7-Nov-18 7,127.90 6.39530111
9-Nov-18 7,283.50 4.26075567
12-Nov-18 7,087.80 3.08777543
13-Nov-18 7,150.45 -1.8765781
14-Nov-18 7,369.05 2.60442774
15-Nov-18 7,478.30 4.57844467
16-Nov-18 7,341.20 6.61670733

52
19-Nov-18 7,411.65 9.69740026
20-Nov-18 7,333.95 7.65905288
21-Nov-18 7,424.50 9.64659667
22-Nov-18 7,411.10 9.49721496
26-Nov-18 7,554.70 12.3676226
27-Nov-18 7,647.60 13.8493145
28-Nov-18 7,574.20 11.4065924
29-Nov-18 7,546.75 12.6885172
30-Nov-18 7,661.60 15.7971102
3-Dec-18 7,779.95 15.9153723
4-Dec-18 7,721.65 8.21531929
5-Dec-18 7,554.05 5.24992163
6-Dec-18 7,209.70 1.90388693
7-Dec-18 7,313.95 2.61016569
10-Dec-18 7,350.50 0.91988742
11-Dec-18 7,305.35 3.06935862
12-Dec-18 7,471.85 4.494822
13-Dec-18 7,670.50 4.09075797
14-Dec-18 7,662.15 2.45844644
17-Dec-18 7,734.05 5.35130496
18-Dec-18 7,772.35 4.86666262
19-Dec-18 7,936.00 8.20908242
20-Dec-18 7,807.05 5.15253552
21-Dec-18 7,536.30 1.68935786
24-Dec-18 7,529.15 -0.3382001
26-Dec-18 7,569.10 -1.0264658
27-Dec-18 7,499.95 -0.9803015
28-Dec-18 7,505.55 -0.5459304
31-Dec-18 7,465.50 -2.5595176

RELATIVE STRENGTH INDEX:


Table Showing the RSI of Maruti Suzuki 4.6
Date Close change gain Loss average gain average loss RS 14 day RSI
2-Jul-18 8,771.30
3-Jul-18 8,825.60 54.30 54.3 0
4-Jul-18 8,821.05 -4.55 0 4.55
5-Jul-18 8,975.15 154.10 154.1 0
6-Jul-18 9,220.80 245.65 245.65 0
9-Jul-18 9,347.05 126.25 126.25 0
10-Jul-18 9,317.50 -29.55 0 29.55
11-Jul-18 9,374.90 57.40 57.4 0
12-Jul-18 9,531.00 156.10 156.1 0
13-Jul-18 9,384.70 -146.30 0 146.3
16-Jul-18 9,347.00 -37.70 0 37.7
17-Jul-18 9,431.05 84.05 84.05 0
18-Jul-18 9,385.30 -45.75 0 45.75
19-Jul-18 9,445.40 60.10 60.1 0
20-Jul-18 9,366.80 -78.60 0 78.6 66.99643 24.46071 2.73894 73.25445
23-Jul-18 9,389.10 22.30 22.3 0 64.71071 24.46071 2.645496 72.56889
24-Jul-18 9,398.95 9.85 9.85 0 65.41429 24.13571 2.710269 73.04778
25-Jul-18 9,701.00 302.05 302.05 0 75.98214 24.13571 3.148121 75.8927

53
26-Jul-18 9,832.45 131.45 131.45 0 67.825 24.13571 2.810151 73.75432
27-Jul-18 9,758.95 -73.50 0 73.5 58.80714 29.38571 2.001215 66.68017
30-Jul-18 9,396.25 -362.70 0 362.7 58.80714 53.18214 1.105769 52.5114
31-Jul-18 9,310.40 -85.85 0 85.85 54.70714 59.31429 0.922327 47.9797
1-Aug-18 9,381.90 71.50 71.5 0 48.66429 59.31429 0.820448 45.06847
2-Aug-18 9,520.55 138.65 138.65 0 58.56786 48.86429 1.198582 54.51614
3-Aug-18 9,341.60 -178.95 0 178.95 58.56786 58.95357 0.993457 49.8359
6-Aug-18 9,142.40 -199.20 0 199.2 52.56429 73.18214 0.718267 41.80181
7-Aug-18 9,187.00 44.60 44.6 0 55.75 69.91429 0.797405 44.36424
8-Aug-18 9,286.40 99.40 99.4 0 58.55714 69.91429 0.837556 45.5799
9-Aug-18 9,411.50 125.10 125.1 0 67.49286 64.3 1.049656 51.21132
10-Aug-18 9,207.40 -204.10 0 204.1 65.9 78.87857 0.835461 45.51779
13-Aug-18 9,146.05 -61.35 0 61.35 65.19643 83.26071 0.78304 43.91599
14-Aug-18 9,080.85 -65.20 0 65.2 43.62143 87.91786 0.496161 33.16228
14-Aug-18 9,148.25 67.40 67.4 0 39.04643 87.91786 0.444124 30.75387
16-Aug-18 9,132.60 -15.65 0 15.65 39.04643 83.78571 0.466027 31.78845
16-Aug-18 9,200.55 67.95 67.95 0 43.9 57.87857 0.758485 43.13285
17-Aug-18 9,152.10 -48.45 0 48.45 43.9 55.20714 0.795187 44.2955
20-Aug-18 9,074.35 -77.75 0 77.75 38.79286 60.76071 0.638453 38.96682
21-Aug-18 9,113.30 38.95 38.95 0 31.67143 60.76071 0.521248 34.26452
23-Aug-18 9,223.30 110.00 110 0 39.52857 47.97857 0.82388 45.17182
24-Aug-18 9,163.80 -59.50 0 59.5 39.52857 38 1.040226 50.98581
27-Aug-18 9,245.25 81.45 81.45 0 42.16071 38 1.109492 52.59523
28-Aug-18 9,427.95 182.70 182.7 0 48.11071 38 1.266071 55.87076
29-Aug-18 9,368.10 -59.85 0 59.85 39.175 42.275 0.926671 48.09699
30-Aug-18 9,205.80 -162.30 0 162.3 39.175 39.28929 0.997091 49.92717
31-Aug-18 9,096.40 -109.40 0 109.4 39.175 42.72143 0.916987 47.83481
3-Sep-18 8,902.15 -194.25 0 194.25 39.175 51.93929 0.754246 42.99545
4-Sep-18 8,868.50 -33.65 0 33.65 34.36071 54.34286 0.632295 38.73656
5-Sep-18 8,896.10 27.60 27.6 0 36.33214 53.225 0.682614 40.56867
6-Sep-18 8,759.85 -136.25 0 136.25 31.47857 62.95714 0.5 33.33333
7-Sep-18 8,719.20 -40.65 0 40.65 31.47857 62.4 0.504464 33.53116
10-Sep-18 8,639.40 -79.80 0 79.8 31.47857 62.54643 0.503283 33.47894
11-Sep-18 8,517.05 -122.35 0 122.35 28.69643 71.28571 0.402555 28.70155
12-Sep-18 8,493.95 -23.10 0 23.1 20.83929 72.93571 0.285721 22.22265
14-Sep-18 8,626.70 132.75 132.75 0 30.32143 68.68571 0.441452 30.6255
17-Sep-18 8,537.80 -88.90 0 88.9 24.50357 75.03571 0.326559 24.61699
18-Sep-18 8,399.15 -138.65 0 138.65 11.45357 84.93929 0.134844 11.88218
19-Sep-18 8,210.35 -188.80 0 188.8 11.45357 94.15 0.121652 10.84582
21-Sep-18 8,040.15 -170.20 0 170.2 11.45357 94.71429 0.120928 10.78817
24-Sep-18 7,793.05 -247.10 0 247.1 11.45357 104.55 0.109551 9.873464
25-Sep-18 7,999.45 206.40 206.4 0 26.19643 90.675 0.288905 22.41474
26-Sep-18 7,842.55 -156.90 0 156.9 26.19643 99.47857 0.263337 20.84458
27-Sep-18 7,553.05 -289.50 0 289.5 24.225 120.1571 0.201611 16.77839
28-Sep-18 7,347.95 -205.10 0 205.1 24.225 125.075 0.193684 16.22572
1-Oct-18 7,463.95 116.00 116 0 32.51071 122.1714 0.266107 21.01776
3-Oct-18 7,246.00 -217.95 0 217.95 32.51071 132.0393 0.24622 19.75735
4-Oct-18 7,198.75 -47.25 0 47.25 32.51071 126.675 0.256647 20.42314
5-Oct-18 6,904.35 -294.40 0 294.4 32.51071 146.0536 0.222594 18.20673
8-Oct-18 6,889.75 -14.60 0 14.6 23.02857 147.0964 0.156554 13.53627
9-Oct-18 6,699.45 -190.30 0 190.3 23.02857 154.3393 0.149207 12.98351
10-Oct-18 6,985.85 286.40 286.4 0 43.48571 144.4357 0.301073 23.14037
11-Oct-18 6,875.50 -110.35 0 110.35 43.48571 138.8321 0.313225 23.85159

54
12-Oct-18 7,287.20 411.70 411.7 0 72.89286 126.675 0.575432 36.52535
15-Oct-18 7,182.00 -105.20 0 105.2 72.89286 116.5393 0.625479 38.47967
16-Oct-18 7,150.90 -31.10 0 31.1 58.15 118.7607 0.48964 32.86969
17-Oct-18 6,885.60 -265.30 0 265.3 58.15 126.5036 0.459671 31.4914
19-Oct-18 6,756.45 -129.15 0 129.15 58.15 115.05 0.505432 33.5739
22-Oct-18 6,812.20 55.75 55.75 0 62.13214 100.4 0.618846 38.2276
23-Oct-18 6,771.30 -40.90 0 40.9 53.84643 103.3214 0.521155 34.26046
24-Oct-18 6,768.30 -3.00 0 3 53.84643 87.96786 0.612115 37.96968
25-Oct-18 6,723.20 -45.10 0 45.1 53.84643 87.81429 0.613185 38.01084
26-Oct-18 6,717.30 -5.90 0 5.9 53.84643 67.20714 0.801201 44.48149
29-Oct-18 6,798.70 81.40 81.4 0 59.66071 66.16429 0.901706 47.41563
30-Oct-18 6,697.00 -101.70 0 101.7 59.66071 59.83571 0.997075 49.92678
31-Oct-18 6,616.40 -80.60 0 80.6 39.20357 65.59286 0.59768 37.40926
1-Nov-18 6,711.75 95.35 95.35 0 46.01429 57.71071 0.797327 44.36181
2-Nov-18 7,135.45 423.70 423.7 0 46.87143 57.71071 0.812179 44.81781
5-Nov-18 7,177.25 41.80 41.8 0 49.85714 50.19643 0.993241 49.83045
6-Nov-18 7,075.00 -102.25 0 102.25 49.85714 55.27857 0.901925 47.4217
7-Nov-18 7,127.90 52.90 52.9 0 53.63571 36.32857 1.476406 59.6189
9-Nov-18 7,283.50 155.60 155.6 0 64.75 27.10357 2.388984 70.49263
12-Nov-18 7,087.80 -195.70 0 195.7 60.76786 41.08214 1.479179 59.66407
13-Nov-18 7,150.45 62.65 62.65 0 65.24286 38.16071 1.709686 63.09536
14-Nov-18 7,369.05 218.60 218.6 0 80.85714 37.94643 2.130824 68.05952
15-Nov-18 7,478.30 109.25 109.25 0 88.66071 34.725 2.553224 71.85655
16-Nov-18 7,341.20 -137.10 0 137.1 88.66071 44.09643 2.01061 66.78414
19-Nov-18 7,411.65 70.45 70.45 0 87.87857 44.09643 1.992873 66.58729
20-Nov-18 7,333.95 -77.70 0 77.7 87.87857 42.38214 2.073481 67.4636
21-Nov-18 7,424.50 90.55 90.55 0 94.34643 36.625 2.576012 72.03589
22-Nov-18 7,411.10 -13.40 0 13.4 87.53571 37.58214 2.329184 69.96261
26-Nov-18 7,554.70 143.60 143.6 0 67.52857 37.58214 1.796826 64.24518
27-Nov-18 7,647.60 92.90 92.9 0 71.17857 37.58214 1.893947 65.44511
28-Nov-18 7,574.20 -73.40 0 73.4 71.17857 35.52143 2.003821 66.70906
29-Nov-18 7,546.75 -27.45 0 27.45 67.4 37.48214 1.79819 64.26261
30-Nov-18 7,661.60 114.85 114.85 0 64.48929 37.48214 1.720534 63.2425
3-Dec-18 7,779.95 118.35 118.35 0 72.94286 23.50357 3.10348 75.63044
4-Dec-18 7,721.65 -58.30 0 58.3 68.46786 27.66786 2.474635 71.22
5-Dec-18 7,554.05 -167.60 0 167.6 52.85357 39.63929 1.333363 57.14341
6-Dec-18 7,209.70 -344.35 0 344.35 45.05 64.23571 0.701323 41.22222
7-Dec-18 7,313.95 104.25 104.25 0 52.49643 54.44286 0.964248 49.08994
10-Dec-18 7,350.50 36.55 36.55 0 50.075 54.44286 0.919772 47.91047
11-Dec-18 7,305.35 -45.15 0 45.15 50.075 52.11786 0.960803 49.00049
12-Dec-18 7,471.85 166.50 166.5 0 55.5 52.11786 1.064894 51.57137
13-Dec-18 7,670.50 198.65 198.65 0 69.68929 51.16071 1.362164 57.66594
14-Dec-18 7,662.15 -8.35 0 8.35 59.43214 51.75714 1.148289 53.45132
17-Dec-18 7,734.05 71.90 71.9 0 57.93214 51.75714 1.119307 52.81477
18-Dec-18 7,772.35 38.30 38.3 0 60.66786 46.51429 1.304284 56.60258
19-Dec-18 7,936.00 163.65 163.65 0 72.35714 44.55357 1.624048 61.89094
20-Dec-18 7,807.05 -128.95 0 128.95 64.15357 53.76429 1.193238 54.40531
21-Dec-18 7,536.30 -270.75 0 270.75 55.7 73.10357 0.761933 43.24414
24-Dec-18 7,529.15 -7.15 0 7.15 55.7 69.45 0.802016 44.50659
26-Dec-18 7,569.10 39.95 39.95 0 58.55357 57.47857 1.018703 50.46323
27-Dec-18 7,499.95 -69.15 0 69.15 58.55357 37.82143 1.548159 60.75598
28-Dec-18 7,505.55 5.60 5.6 0 51.50714 37.82143 1.361851 57.66032
31-Dec-18 7,465.50 -40.05 0 40.05 48.89643 40.68214 1.201914 54.58496

55
SHORT TERM MOVING AVERAGE:
Chart showing the short term Moving Average of Maruti Suzuki 4.6

SHORT TERM MOVING AVERAGE


12,000.00
AxisStock Price Title

10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 day moving average

Interpretation: In the above chart, X axis indicates month and the Y axis indicates the price
of scrip. In the above chart, blue color indicates closing price. Orange color indicates short term
moving average (i.e., 10 days MV). Moving averages are used along with the price of the scrip.
In the above chart, downward penetration of the rising average indicates the possibility of a
further fall. Hence, the sell signal is generated during August, September and December.
Upward penetration of a falling average would indicate the possibility of the further rise.
Hence, the buy signal is generated during October and August.

LONG TERM MOVING AVERAGE:


Chart Showing the Long Term Moving Average of Maruti Suzuki 4.7

LONG TERM MOVING AVERAGE


12,000.00

10,000.00

8,000.00
Stock Price

6,000.00

4,000.00

2,000.00

0.00
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18

Months
Close 20 day moving average

56
Interpretation: In the above chart, blue color indicates closing price. Orange color indicates
long term moving average (i.e., 20 days MV). Moving averages are used along with the price
of the scrip. In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during September and December.
Upward penetration of a falling average would indicate the possibility of the further rise.
Hence, the buy signal is generated during October & November. The moving average is
continuously rising from August to September. The moving average is continuously falling in
the month of October.

SHORT TERM AND LONG TERM MOVING AVERAGE:


Chart Showing Short term and long term Moving Average of Maruti Suzuki 4.8

SHORT TERM AND LONG TERM MOVING AVERAGE


12,000.00

10,000.00

8,000.00
Stock price

6,000.00

4,000.00

2,000.00

0.00
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 day moving average 20 day moving average

Interpretation: In the above chart, blue color indicates closing price. Orange color indicates
short term moving average (i.e., 10 days MV) & gray color indicates long term moving average
(i.e., 20 days MV). When long term & short term moving averages are drawn, the intersection
of two moving averages generates buy or sell signal. In the above chart, the scrip price is
falling & the short term moving average intersects the long term moving average from above
falls below it during the month of September and December. Hence, the sell signal is generated.
The scrip price is rising & the short term moving average intersects the long term moving
average from below during the month of November, indicating a further rise in price, gives a
buy signal. The short term movement may not hold long. Hence, the investor should wait for
the long term average to turn up before buying or selling the scrip.

57
RATE OF CHANGE INDICATOR:

Chart Showing the ROC of Maruti Suzuki 4.9

20 days ROC
20
15
10
5
Stock price

0
2-Jul-18
-5 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
20 days ROC
-10
-15
-20
-25
-30
Months

Interpretation: In the above chart, scrip’s ROC reaches the historic high value in the month
of December, the scrip is in overbought region & a fall in the value can be anticipated. In
November, the investor can sell the scrip. Similarly, scrip’s ROC reaches the historic low value
in the month of October, the scrip is in oversold region & a rise in the scrip’s price can be
anticipated. In October, the investor can buy the scrip.

RELATIVE STRENGTH INDEX:

Chart Showing the RSI of Maruti Suzuki 4.10

14 day RSI
80
70
60
Stock Price

50
40
30 14 day RSI
20
10
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

58
Interpretation: When the RSI value is 30 and below that value, then it is the signal for buying.
It indicates the oversold point. Where in the selling pressure is overtaken by slowly developing
buying pressure, curtailing the further downward movement of the stock price. Buying points
from the RSI graph for Tata Motors are 12th, 19th and 24th of September. When it has crossed
the 70, then sell signal is indicated. Following are the selling points from the RSI graph for
Tata Motors are 25th of July. 9th, 15th and 22nd of Nov, 3rd December.

TVS:

MOVING AVERAGE:

Table Showing the Moving Average of TVS 4.7

10 day moving
Date Close 20 day moving average
average
2-Jul-18 556.15
3-Jul-18 561.15
4-Jul-18 581.4
5-Jul-18 570.5
6-Jul-18 576.8
9-Jul-18 588.55
10-Jul-18 584.9
11-Jul-18 580.7
12-Jul-18 578.5
13-Jul-18 584.4 576.305
16-Jul-18 570.2 577.71
17-Jul-18 573.3 578.925
18-Jul-18 569.15 577.7
19-Jul-18 563.05 576.955
20-Jul-18 564.9 575.765
23-Jul-18 542.05 571.115
24-Jul-18 552.75 567.9
25-Jul-18 540.35 563.865
26-Jul-18 522.35 558.25
27-Jul-18 525.3 552.34 564.3225
30-Jul-18 513.5 546.67 562.19
31-Jul-18 516.6 541 559.9625
1-Aug-18 512.45 535.33 556.515
2-Aug-18 512.35 530.26 553.6075
3-Aug-18 520.35 525.805 550.785
6-Aug-18 527.8 524.38 547.7475
7-Aug-18 549 524.005 545.9525
8-Aug-18 532.8 523.25 543.5575
9-Aug-18 538.45 524.86 541.555
10-Aug-18 534.1 525.74 539.04
13-Aug-18 519.6 526.35 536.51
14-Aug-18 519.4 526.63 533.815

59
16-Aug-18 519.3 527.315 531.3225
17-Aug-18 515.9 527.67 528.965
20-Aug-18 536.95 529.33 527.5675
21-Aug-18 541.1 530.66 527.52
23-Aug-18 545.5 530.31 527.1575
24-Aug-18 549.55 531.985 527.6175
27-Aug-18 563.25 534.465 529.6625
28-Aug-18 569.5 538.005 531.8725
29-Aug-18 557.6 541.805 534.0775
30-Aug-18 565.85 546.45 536.54
31-Aug-18 569.35 551.455 539.385
3-Sep-18 565.5 556.415 542.0425
4-Sep-18 558.4 558.56 543.945
5-Sep-18 562.75 560.725 545.6925
6-Sep-18 569.7 563.145 546.7275
7-Sep-18 589.85 567.175 549.58
10-Sep-18 589.2 569.77 552.1175
11-Sep-18 574.05 570.225 554.115
12-Sep-18 578.55 572.32 557.0625
14-Sep-18 586.65 574.4 560.425
17-Sep-18 588.45 576.31 563.8825
18-Sep-18 592.7 579.03 567.7225
19-Sep-18 599.15 583.105 570.8325
21-Sep-18 593.4 586.17 573.4475
24-Sep-18 574.35 586.635 574.89
25-Sep-18 592.65 586.915 577.045
26-Sep-18 584.35 586.43 578.1
27-Sep-18 586.9 587.715 578.97
28-Sep-18 560.05 585.865 579.0925
1-Oct-18 561.35 583.335 578.8675
3-Oct-18 538.45 578.335 577.3225
4-Oct-18 527.4 571.805 575.4175
5-Oct-18 503.95 562.285 572.695
8-Oct-18 504.85 553.43 569.8
9-Oct-18 494.7 545.465 566.05
10-Oct-18 533.1 539.51 563.2125
11-Oct-18 511.8 532.255 559.3425
12-Oct-18 534.1 526.975 557.345
15-Oct-18 528.8 523.85 554.8575
16-Oct-18 551.65 522.88 553.1075
17-Oct-18 532.9 522.325 550.33
19-Oct-18 516.1 521.195 546.5
22-Oct-18 516.3 522.43 542.3575
23-Oct-18 535.2 525.465 539.4475
24-Oct-18 528.05 528.8 537.1325
25-Oct-18 519.15 527.405 533.4575
26-Oct-18 525.45 528.77 530.5125
29-Oct-18 554.05 530.765 528.87
30-Oct-18 539.65 531.85 527.85
31-Oct-18 544.65 531.15 527.015
1-Nov-18 545.7 532.43 527.3775
2-Nov-18 553.45 536.165 528.68
5-Nov-18 559.6 540.495 531.4625

60
6-Nov-18 550.5 542.025 533.745
7-Nov-18 552.4 544.46 536.63
9-Nov-18 556.25 548.17 537.7875
12-Nov-18 540.5 549.675 539.2225
13-Nov-18 545.5 548.82 539.7925
14-Nov-18 554.15 550.27 541.06
15-Nov-18 549.8 550.785 540.9675
16-Nov-18 551.6 551.375 541.9025
19-Nov-18 554.95 551.525 543.845
20-Nov-18 538.15 549.38 544.9375
21-Nov-18 542.5 548.58 545.3025
22-Nov-18 527.2 546.06 545.26
26-Nov-18 536.3 544.065 546.1175
27-Nov-18 542.6 544.275 546.975
28-Nov-18 534.9 543.215 546.0175
29-Nov-18 552 543 546.635
30-Nov-18 557.4 543.76 547.2725
3-Dec-18 550.6 543.66 547.5175
4-Dec-18 555.05 543.67 547.5975
5-Dec-18 553.7 545.225 547.3025
6-Dec-18 532.3 544.205 546.3925
7-Dec-18 541.5 545.635 545.8475
10-Dec-18 547.85 546.79 545.4275
11-Dec-18 552.3 547.76 546.0175
12-Dec-18 570.6 551.33 547.2725
13-Dec-18 565.35 552.665 547.8325
14-Dec-18 570 553.925 548.8425
17-Dec-18 575.1 556.375 550.0175
18-Dec-18 574.5 558.32 550.995
19-Dec-18 576.8 560.63 552.9275
20-Dec-18 579.8 565.38 554.7925
21-Dec-18 572.9 568.52 557.0775
24-Dec-18 558.5 569.585 558.1875
26-Dec-18 558.8 570.235 558.9975
27-Dec-18 549.95 568.17 559.75
28-Dec-18 564.2 568.055 560.36
31-Dec-18 571.25 568.18 561.0525

RATE OF CHANGE INDICATOR:

Table showing the RSI of TVS 4.8

Date Close 20 day ROC


2-Jul-18 556.15
3-Jul-18 561.15
4-Jul-18 581.4
5-Jul-18 570.5
6-Jul-18 576.8
9-Jul-18 588.55
10-Jul-18 584.9
11-Jul-18 580.7

61
12-Jul-18 578.5
13-Jul-18 584.4
16-Jul-18 570.2
17-Jul-18 573.3
18-Jul-18 569.15
19-Jul-18 563.05
20-Jul-18 564.9
23-Jul-18 542.05
24-Jul-18 552.75
25-Jul-18 540.35
26-Jul-18 522.35
27-Jul-18 525.3
30-Jul-18 513.5 -7.6687944
31-Jul-18 516.6 -7.9390537
1-Aug-18 512.45 -11.859305
2-Aug-18 512.35 -10.192813
3-Aug-18 520.35 -9.7867545
6-Aug-18 527.8 -10.321978
7-Aug-18 549 -6.1378013
8-Aug-18 532.8 -8.2486654
9-Aug-18 538.45 -6.9230769
10-Aug-18 534.1 -8.6071184
13-Aug-18 519.6 -8.8740793
14-Aug-18 519.4 -9.4017094
16-Aug-18 519.3 -8.7586752
17-Aug-18 515.9 -8.3740343
20-Aug-18 536.95 -4.9477784
21-Aug-18 541.1 -0.1752606
23-Aug-18 545.5 -1.3116237
24-Aug-18 549.55 1.70260017
27-Aug-18 563.25 7.82999904
28-Aug-18 569.5 8.41423948
29-Aug-18 557.6 8.58812074
30-Aug-18 565.85 9.53348819
31-Aug-18 569.35 11.1035223
3-Sep-18 565.5 10.3737679
4-Sep-18 558.4 7.31238589
5-Sep-18 562.75 6.62182645
6-Sep-18 569.7 3.7704918
7-Sep-18 589.85 10.7075826
10-Sep-18 589.2 9.42520197
11-Sep-18 574.05 7.47987268
12-Sep-18 578.55 11.3452656
14-Sep-18 586.65 12.9476319
17-Sep-18 588.45 13.3160023
18-Sep-18 592.7 14.8866059
19-Sep-18 599.15 11.5839464
21-Sep-18 593.4 9.66549621
24-Sep-18 574.35 5.28872594
25-Sep-18 592.65 7.84278046
26-Sep-18 584.35 3.74611629
27-Sep-18 586.9 3.05531168
28-Sep-18 560.05 0.43938307

62
1-Oct-18 561.35 -0.7952638
3-Oct-18 538.45 -5.4272416
4-Oct-18 527.4 -6.7374005
5-Oct-18 503.95 -9.7510745
8-Oct-18 504.85 -10.288761
9-Oct-18 494.7 -13.164824
10-Oct-18 533.1 -9.6210901
11-Oct-18 511.8 -13.136456
12-Oct-18 534.1 -6.9593241
15-Oct-18 528.8 -8.5990839
16-Oct-18 551.65 -5.9660786
17-Oct-18 532.9 -9.4400544
19-Oct-18 516.1 -12.923908
22-Oct-18 516.3 -13.827923
23-Oct-18 535.2 -9.8078868
24-Oct-18 528.05 -8.0612867
25-Oct-18 519.15 -12.401924
26-Oct-18 525.45 -10.079576
29-Oct-18 554.05 -5.5972057
30-Oct-18 539.65 -3.6425319
31-Oct-18 544.65 -2.9749711
1-Nov-18 545.7 1.34645742
2-Nov-18 553.45 4.93932499
5-Nov-18 559.6 11.0427622
6-Nov-18 550.5 9.04228979
7-Nov-18 552.4 11.6636345
9-Nov-18 556.25 4.34252485
12-Nov-18 540.5 5.60765924
13-Nov-18 545.5 2.13443175
14-Nov-18 554.15 4.79387292
15-Nov-18 549.8 -0.3353576
16-Nov-18 551.6 3.50910114
19-Nov-18 554.95 7.52761093
20-Nov-18 538.15 4.23203564
21-Nov-18 542.5 1.36397608
22-Nov-18 527.2 -0.1609696
26-Nov-18 536.3 3.30347684
27-Nov-18 542.6 3.26386906
28-Nov-18 534.9 -3.4563668
29-Nov-18 552 2.28852034
30-Nov-18 557.4 2.34095291
3-Dec-18 550.6 0.89792927
4-Dec-18 555.05 0.28909567
5-Dec-18 553.7 -1.0543245
6-Dec-18 532.3 -3.3060854
7-Dec-18 541.5 -1.9732078
10-Dec-18 547.85 -1.5101124
11-Dec-18 552.3 2.18316374
12-Dec-18 570.6 4.60128323
13-Dec-18 565.35 2.02111342
14-Dec-18 570 3.6740633
17-Dec-18 575.1 4.26033358
18-Dec-18 574.5 3.5228399

63
19-Dec-18 576.8 7.18201245
20-Dec-18 579.8 6.87557604
21-Dec-18 572.9 8.66843703
24-Dec-18 558.5 4.13947417
26-Dec-18 558.8 2.98562477
27-Dec-18 549.95 2.81361002
28-Dec-18 564.2 2.21014493
31-Dec-18 571.25 2.48475063

RELATIVE STRENGTH INDEX:

Table Showing the RSI of TVS 4.9

Date Close change gain Loss average gain average loss RS 14 DAY RSI
2-Jul-18 556.15
3-Jul-18 561.15 5 5 0
4-Jul-18 581.4 20.25 20.25 0
5-Jul-18 570.5 -10.9 0 10.9
6-Jul-18 576.8 6.3 6.3 0
9-Jul-18 588.55 11.75 11.75 0
10-Jul-18 584.9 -3.65 0 3.65
11-Jul-18 580.7 -4.2 0 4.2
12-Jul-18 578.5 -2.2 0 2.2
13-Jul-18 584.4 5.9 5.9 0
16-Jul-18 570.2 -14.2 0 14.2
17-Jul-18 573.3 3.1 3.1 0
18-Jul-18 569.15 -4.15 0 4.15
19-Jul-18 563.05 -6.1 0 6.1
20-Jul-18 564.9 1.85 1.85 0 3.867857 3.242857 1.192731 54.39478
23-Jul-18 542.05 -22.85 0 22.85 3.510714 4.875 0.720147 41.86542
24-Jul-18 552.75 10.7 10.7 0 2.828571 4.875 0.58022 36.71766
25-Jul-18 540.35 -12.4 0 12.4 2.828571 4.982143 0.567742 36.21399
26-Jul-18 522.35 -18 0 18 2.378571 6.267857 0.379487 27.50929
27-Jul-18 525.3 2.95 2.95 0 1.75 6.267857 0.279202 21.82628
30-Jul-18 513.5 -11.8 0 11.8 1.75 6.85 0.255474 20.34884
31-Jul-18 516.6 3.1 3.1 0 1.971429 6.55 0.300981 23.13495
1-Aug-18 512.45 -4.15 0 4.15 1.971429 6.689286 0.294714 22.76289
2-Aug-18 512.35 -0.1 0 0.1 1.55 6.696429 0.231467 18.79602
3-Aug-18 520.35 8 8 0 2.121429 5.682143 0.37335 27.18535
6-Aug-18 527.8 7.45 7.45 0 2.432143 5.682143 0.428033 29.97359
7-Aug-18 549 21.2 21.2 0 3.946429 5.385714 0.732759 42.28856
8-Aug-18 532.8 -16.2 0 16.2 3.946429 6.107143 0.646199 39.254
9-Aug-18 538.45 5.65 5.65 0 4.217857 6.107143 0.690643 40.85092
10-Aug-18 534.1 -4.35 0 4.35 4.217857 4.785714 0.881343 46.84649
13-Aug-18 519.6 -14.5 0 14.5 3.453571 5.821429 0.593252 37.23527
14-Aug-18 519.4 -0.2 0 0.2 3.453571 4.95 0.697691 41.09647
16-Aug-18 519.3 -0.1 0 0.1 3.453571 3.671429 0.940661 48.47118
17-Aug-18 515.9 -3.4 0 3.4 3.242857 3.914286 0.828467 45.30938
20-Aug-18 536.95 21.05 21.05 0 4.746429 3.071429 1.545349 60.71265

64
21-Aug-18 541.1 4.15 4.15 0 4.821429 3.071429 1.569767 61.08597
23-Aug-18 545.5 4.4 4.4 0 5.135714 2.775 1.850708 64.92099
24-Aug-18 549.55 4.05 4.05 0 5.425 2.767857 1.96 66.21622
27-Aug-18 563.25 13.7 13.7 0 5.832143 2.767857 2.107097 67.81561
28-Aug-18 569.5 6.25 6.25 0 5.746429 2.767857 2.076129 67.49161
29-Aug-18 557.6 -11.9 0 11.9 4.232143 3.617857 1.169793 53.91265
30-Aug-18 565.85 8.25 8.25 0 4.821429 2.460714 1.959361 66.20893
31-Aug-18 569.35 3.5 3.5 0 4.667857 2.460714 1.896952 65.48096
3-Sep-18 565.5 -3.85 0 3.85 4.667857 2.425 1.92489 65.81067
4-Sep-18 558.4 -7.1 0 7.1 4.667857 1.896429 2.461394 71.1099
5-Sep-18 562.75 4.35 4.35 0 4.978571 1.882143 2.645161 72.56637
6-Sep-18 569.7 6.95 6.95 0 5.475 1.875 2.92 74.4898
7-Sep-18 589.85 20.15 20.15 0 6.914286 1.632143 4.236324 80.90263
10-Sep-18 589.2 -0.65 0 0.65 5.410714 1.678571 3.223404 76.32242
11-Sep-18 574.05 -15.15 0 15.15 5.114286 2.760714 1.852523 64.94331
12-Sep-18 578.55 4.5 4.5 0 5.121429 2.760714 1.85511 64.97508
14-Sep-18 586.65 8.1 8.1 0 5.410714 2.760714 1.959897 66.21503
17-Sep-18 588.45 1.8 1.8 0 4.560714 2.760714 1.652005 62.29268
18-Sep-18 592.7 4.25 4.25 0 4.417857 2.760714 1.600259 61.54229
19-Sep-18 599.15 6.45 6.45 0 4.878571 1.910714 2.553271 71.85692
21-Sep-18 593.4 -5.75 0 5.75 4.289286 2.321429 1.847692 64.88385
24-Sep-18 574.35 -19.05 0 19.05 4.039286 3.682143 1.096993 52.31267
25-Sep-18 592.65 18.3 18.3 0 5.346429 3.407143 1.569182 61.07711
26-Sep-18 584.35 -8.3 0 8.3 5.346429 3.492857 1.530675 60.48485
27-Sep-18 586.9 2.55 2.55 0 5.217857 3.492857 1.493865 59.9016
28-Sep-18 560.05 -26.85 0 26.85 4.721429 5.410714 0.872607 46.59852
1-Oct-18 561.35 1.3 1.3 0 3.375 5.410714 0.623762 38.41463
3-Oct-18 538.45 -22.9 0 22.9 3.375 7 0.482143 32.53012
4-Oct-18 527.4 -11.05 0 11.05 3.375 6.707143 0.503195 33.47503
5-Oct-18 503.95 -23.45 0 23.45 3.053571 8.382143 0.364295 26.70206
8-Oct-18 504.85 0.9 0.9 0 2.539286 8.382143 0.30294 23.25049
9-Oct-18 494.7 -10.15 0 10.15 2.410714 9.107143 0.264706 20.93023
10-Oct-18 533.1 38.4 38.4 0 4.85 9.107143 0.532549 34.74923
11-Oct-18 511.8 -21.3 0 21.3 4.389286 10.62857 0.41297 29.22711
12-Oct-18 534.1 22.3 22.3 0 5.982143 10.21786 0.58546 36.92681
15-Oct-18 528.8 -5.3 0 5.3 5.982143 9.235714 0.647718 39.31002
16-Oct-18 551.65 22.85 22.85 0 6.307143 9.235714 0.682908 40.57904
17-Oct-18 532.9 -18.75 0 18.75 6.307143 9.982143 0.631843 38.71958
19-Oct-18 516.1 -16.8 0 16.8 6.125 11.18214 0.547748 35.39001
22-Oct-18 516.3 0.2 0.2 0 6.139286 9.264286 0.662683 39.85625
23-Oct-18 535.2 18.9 18.9 0 7.396429 9.264286 0.798381 44.39443
24-Oct-18 528.05 -7.15 0 7.15 7.396429 8.139286 0.908732 47.6092
25-Oct-18 519.15 -8.9 0 8.9 7.396429 7.985714 0.926208 48.08451
26-Oct-18 525.45 6.3 6.3 0 7.846429 6.310714 1.24335 55.42381
29-Oct-18 554.05 28.6 28.6 0 9.825 6.310714 1.556876 60.88977
30-Oct-18 539.65 -14.4 0 14.4 9.825 6.614286 1.485421 59.76537
31-Oct-18 544.65 5 0 0.97 7.082143 6.683571 1.059634 51.4477
1-Nov-18 545.7 1.05 1.05 0 7.157143 5.162143 1.386467 58.09706
2-Nov-18 553.45 7.75 7.75 0 6.117857 5.162143 1.185139 54.23632
5-Nov-18 559.6 6.15 6.15 0 6.557143 4.783571 1.370763 57.81949

65
6-Nov-18 550.5 -9.1 0 9.1 4.925 5.433571 0.906402 47.54517
7-Nov-18 552.4 1.9 1.9 0 5.060714 4.094286 1.236043 55.27815
9-Nov-18 556.25 3.85 3.85 0 5.335714 2.894286 1.843534 64.83249
12-Nov-18 540.5 -15.75 0 15.75 5.321429 4.019286 1.323974 56.97025
13-Nov-18 545.5 5 5 0 4.328571 4.019286 1.07695 51.85249
14-Nov-18 554.15 8.65 8.65 0 4.946429 3.508571 1.409813 58.503
15-Nov-18 549.8 -4.35 0 4.35 4.946429 3.183571 1.553736 60.84168
16-Nov-18 551.6 1.8 1.8 0 4.625 3.183571 1.452771 59.22978
19-Nov-18 554.95 3.35 3.35 0 2.821429 3.183571 0.886246 46.98466
20-Nov-18 538.15 -16.8 0 16.8 2.821429 3.355 0.840962 45.68058
21-Nov-18 542.5 4.35 4.35 0 3.132143 3.285714 0.953261 48.80356
22-Nov-18 527.2 -15.3 0 15.3 3.057143 4.378571 0.698206 41.11431
26-Nov-18 536.3 9.1 9.1 0 3.153571 4.378571 0.720228 41.86818
27-Nov-18 542.6 6.3 6.3 0 3.164286 4.378571 0.722675 41.95076
28-Nov-18 534.9 -7.7 0 7.7 3.164286 4.278571 0.739566 42.5144
29-Nov-18 552 17.1 17.1 0 4.25 4.278571 0.993322 49.8325
30-Nov-18 557.4 5.4 5.4 0 4.360714 4.278571 1.019199 50.4754
3-Dec-18 550.6 -6.8 0 6.8 4.360714 3.639286 1.198234 54.50893
4-Dec-18 555.05 4.45 4.45 0 4.321429 3.639286 1.187439 54.28443
5-Dec-18 553.7 -1.35 0 1.35 3.703571 3.735714 0.991396 49.78397
6-Dec-18 532.3 -21.4 0 21.4 3.703571 4.953571 0.747657 42.78053
7-Dec-18 541.5 9.2 9.2 0 4.232143 4.953571 0.854362 46.07309
10-Dec-18 547.85 6.35 6.35 0 4.446429 4.953571 0.897621 47.30243
11-Dec-18 552.3 4.45 4.45 0 4.764286 3.753571 1.269267 55.93291
12-Dec-18 570.6 18.3 18.3 0 5.760714 3.753571 1.534729 60.54805
13-Dec-18 565.35 -5.25 0 5.25 5.760714 3.035714 1.897647 65.48924
14-Dec-18 570 4.65 4.65 0 5.442857 3.035714 1.792941 64.19545
17-Dec-18 575.1 5.1 5.1 0 5.357143 3.035714 1.764706 63.82979
18-Dec-18 574.5 -0.6 0 0.6 5.357143 2.528571 2.118644 67.93478
19-Dec-18 576.8 2.3 2.3 0 4.3 2.528571 1.700565 62.97071
20-Dec-18 579.8 3 3 0 4.128571 2.528571 1.632768 62.01717
21-Dec-18 572.9 -6.9 0 6.9 4.128571 2.535714 1.628169 61.9507
24-Dec-18 558.5 -14.4 0 14.4 3.810714 3.564286 1.069138 51.6707
26-Dec-18 558.8 0.3 0.3 0 3.832143 3.467857 1.105046 52.49511
27-Dec-18 549.95 -8.85 0 8.85 3.832143 2.571429 1.490278 59.84384
28-Dec-18 564.2 14.25 14.25 0 4.192857 2.571429 1.630556 61.98522
31-Dec-18 571.25 7.05 7.05 0 4.242857 2.571429 1.65 62.26415

66
SHORT TERM MOVING AVERAGE:
Chart Showing the Short term Moving Average of TVS 4.11

SHORT TERM MOVING AVERAGE


700
600
500
Stock Price

400
300
200
100
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 day moving average

Interpretation: In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during September and October
Upward penetration of a falling average would indicate the possibility of the further rise.
Hence, the buy signal is generated during August & October

LONG TERM MOVING AVERAGE:


Chart Showing the Long term Moving Average of TVS 4.12

LONG TERM MOVING AVERAGE


700
600
500
Stock price

400
300
200
100
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 20 day moving average

Interpretation: In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during October and December.
Upward penetration of a falling average would indicate the possibility of the further rise.
Hence, the buy signal is generated during, August &November. The moving average is

67
continuously rising from August to September. The moving average is continuously falling
from July to October.

SHORT TERM AND LONG TERM MOVING AVERAGE:


Chart Showing the Long term and short term Moving Average 4.13

SHORT TERM AND LONG TERM MOVING AVERAGE


700
600
500
Srtock price

400
300
200
100
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 day moving average 20 day moving average

Interpretation: In the above chart, the scrip price is falling & the short term moving average
intersects the long term. When long term & short term moving averages are drawn, the
intersection of two moving averages generates buy or sell signal. Moving average from above
falls below it during the month of September. Hence, the sell signal is generated. The scrip
price is rising & the short term moving average intersects the long term moving average from
below during the August & October, indicating a further rise in price, gives a buy signal. The
short term movement may not hold long. Hence, the investor should wait for the long term
average to turn up before buying or selling the scrip. There is a constant growth from October
to December.

68
RATE OF CHANGE INDICATOR:

Chart Showing ROC of TVS 4.14

20 day ROC
20
15
10
Stock Price

5
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18 20 day ROC
-5
-10
-15
-20
Months

Interpretation: In the above chart, scrip’s ROC reaches the historic high value in the month
of September, the scrip is in overbought region & a fall in the value can be anticipated. In
December, the investor can sell the scrip. Similarly, scrip’s ROC reaches the historic low value
in the month of October, the scrip is in oversold region & a rise in the scrip’s price can be
anticipated. In October, the investor can buy the scrip.

RELATIVE STRENGTH INDEX:


Chart Shoeing the RSI of TVS 4.15

14 DAY RSI
90
80
70
Stock price

60
50
40
30 14 DAY RSI
20
10
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Interpretation: When the RSI value is 30 and below that value, then it is the signal for buying.
It indicates the oversold point. Where in the selling pressure is overtaken by slowly developing
buying pressure, curtailing the further downward movement of the stock price. Buying points
from the RSI graph for TVS are 30th July 2nd August and 9th of October. When it has crossed

69
the 70, then sell signal is indicated. Following are the selling points from the RSI graph for
Tata Motors are 7th of September.

MAHINDRA AND MAHINDRA:


MOVING AVERAGES:
Table showing the Moving Average of Mahindra and Mahindra 4.10
10 day moving
Date close 20 day moving average
average
2-Jul-18 887.25 897.17
3-Jul-18 892.35 897.165
4-Jul-18 898.5 896.75
5-Jul-18 910.5 899.44
6-Jul-18 924.95 901.12
9-Jul-18 932.9 904.015
10-Jul-18 931.1 907.295
11-Jul-18 930.6 911.22
12-Jul-18 917.55 912.25
13-Jul-18 908.4 913.41
16-Jul-18 900.4 914.725
17-Jul-18 921.1 917.6
18-Jul-18 902.25 917.975
19-Jul-18 910.65 917.99
20-Jul-18 909.55 916.45
23-Jul-18 907.7 913.93
24-Jul-18 920.4 912.86
25-Jul-18 909.45 910.745
26-Jul-18 913.3 910.32
27-Jul-18 909.75 910.455 911.9325
30-Jul-18 932.7 913.685 914.205
31-Jul-18 933.9 914.965 916.2825
1-Aug-18 927.75 917.515 917.745
2-Aug-18 911 917.55 917.77
3-Aug-18 919.6 918.555 917.5025
6-Aug-18 933.05 921.09 917.51
7-Aug-18 926.3 921.68 917.27
8-Aug-18 928.05 923.54 917.1425
9-Aug-18 933.25 925.535 917.9275
10-Aug-18 945 929.06 919.7575
13-Aug-18 954.05 931.195 922.44
14-Aug-18 952.05 933.01 923.9875
16-Aug-18 949.2 935.155 926.335
17-Aug-18 961 940.155 928.8525
20-Aug-18 968.4 945.035 931.795
21-Aug-18 957.55 947.485 934.2875
23-Aug-18 961.65 951.02 936.35
24-Aug-18 968.8 955.095 939.3175
27-Aug-18 977.65 959.535 942.535
28-Aug-18 978.5 962.885 945.9725
29-Aug-18 981.65 965.645 948.42

70
30-Aug-18 982.4 968.68 950.845
31-Aug-18 965.25 970.285 952.72
3-Sep-18 945.95 968.78 954.4675
4-Sep-18 931.65 965.105 955.07
5-Sep-18 930.25 962.375 954.93
6-Sep-18 934.95 959.705 955.3625
7-Sep-18 973.45 960.17 957.6325
10-Sep-18 938 956.205 957.87
11-Sep-18 940.45 952.4 957.6425
12-Sep-18 937.05 947.94 956.7925
14-Sep-18 950.5 944.75 956.715
17-Sep-18 947.2 942.945 956.615
18-Sep-18 947.3 943.08 955.93
19-Sep-18 947.3 944.645 954.875
21-Sep-18 957.2 947.34 954.8575
24-Sep-18 895.4 943.385 951.545
25-Sep-18 893.45 935.385 947.7775
26-Sep-18 890.95 930.68 943.4425
27-Sep-18 876.15 924.25 938.325
28-Sep-18 860.7 916.615 932.2775
1-Oct-18 847.6 906.325 925.5375
3-Oct-18 791.15 890.72 916.8325
4-Oct-18 795.25 875.515 909.2975
5-Oct-18 768.6 857.645 901.145
8-Oct-18 774.45 839.37 893.355
9-Oct-18 763.95 826.225 884.805
10-Oct-18 764.15 813.295 874.34
11-Oct-18 730.2 797.22 863.95
12-Oct-18 768.8 786.485 855.3675
15-Oct-18 748.6 775.275 845.945
16-Oct-18 778.3 768.345 837.335
17-Oct-18 760.05 765.235 827.9775
19-Oct-18 741.5 759.86 817.6875
22-Oct-18 734.5 756.45 807.0475
23-Oct-18 728.8 751.885 795.6275
24-Oct-18 732.65 748.755 787.49
25-Oct-18 733.8 745.72 779.5075
26-Oct-18 728.85 745.585 771.4025
29-Oct-18 747.8 743.485 764.985
30-Oct-18 745.2 743.145 759.21
31-Oct-18 763.35 741.65 754.9975
1-Nov-18 755.25 741.17 753.2025
2-Nov-18 784.45 745.465 752.6625
5-Nov-18 777.5 749.765 753.1075
6-Nov-18 778.2 754.705 753.295
7-Nov-18 793.5 760.79 754.7725
9-Nov-18 796.7 767.08 756.4
12-Nov-18 780.3 772.225 758.905
13-Nov-18 791.15 776.56 760.0225
14-Nov-18 770.4 779.08 761.1125
15-Nov-18 765.8 779.325 760.4875
16-Nov-18 767.35 780.535 760.8525
19-Nov-18 780.35 780.125 762.795

71
20-Nov-18 782.7 780.645 765.205
21-Nov-18 769 779.725 767.215
22-Nov-18 745.75 774.95 767.87
26-Nov-18 749.05 770.185 768.6325
27-Nov-18 752.4 767.395 769.81
28-Nov-18 748.35 763.115 769.8375
29-Nov-18 773.1 763.385 771.2325
30-Nov-18 790.2 765.825 772.575
3-Dec-18 760.25 765.115 772.825
4-Dec-18 742.3 761.31 770.7175
5-Dec-18 717.6 754.8 767.7225
6-Dec-18 710.9 748.99 764.3575
7-Dec-18 720.65 746.48 760.715
10-Dec-18 710.8 742.655 756.42
11-Dec-18 723.4 739.755 753.575
12-Dec-18 749.35 739.855 751.485
13-Dec-18 757.75 738.32 750.8525
14-Dec-18 755.8 734.88 750.3525
17-Dec-18 758.5 734.705 749.91
18-Dec-18 770.8 737.555 749.4325
19-Dec-18 780.55 743.85 749.325
20-Dec-18 795.35 752.295 750.6425
21-Dec-18 780.35 758.265 752.3725
24-Dec-18 788.4 766.025 754.34
26-Dec-18 787.65 772.45 756.1025
27-Dec-18 795.4 777.055 758.455
28-Dec-18 803.15 781.595 759.9575
31-Dec-18 803.7 786.385 760.6325

RATE OF CHANGE INDICATOR:


Table showing the ROC of Mahindra and Mahindra 4.11
date close 20 DAY ROC
2-Jul-18 887.25
3-Jul-18 892.35
4-Jul-18 898.5
5-Jul-18 910.5
6-Jul-18 924.95
9-Jul-18 932.9
10-Jul-18 931.1
11-Jul-18 930.6
12-Jul-18 917.55
13-Jul-18 908.4
16-Jul-18 900.4
17-Jul-18 921.1
18-Jul-18 902.25
19-Jul-18 910.65
20-Jul-18 909.55
23-Jul-18 907.7
24-Jul-18 920.4
25-Jul-18 909.45
26-Jul-18 913.3

72
27-Jul-18 909.75
30-Jul-18 932.7 5.12257
31-Jul-18 933.9 4.656245
1-Aug-18 927.75 3.255426
2-Aug-18 911 0.054915
3-Aug-18 919.6 -0.57841
6-Aug-18 933.05 0.016079
7-Aug-18 926.3 -0.51552
8-Aug-18 928.05 -0.27402
9-Aug-18 933.25 1.711078
10-Aug-18 945 4.029062
13-Aug-18 954.05 5.958463
14-Aug-18 952.05 3.360113
16-Aug-18 949.2 5.203658
17-Aug-18 961 5.529018
20-Aug-18 968.4 6.470233
21-Aug-18 957.55 5.491903
23-Aug-18 961.65 4.481747
24-Aug-18 968.8 6.525922
27-Aug-18 977.65 7.045878
28-Aug-18 978.5 7.557021
29-Aug-18 981.65 5.248204
30-Aug-18 982.4 5.193276
31-Aug-18 965.25 4.042037
3-Sep-18 945.95 3.836443
4-Sep-18 931.65 1.310352
5-Sep-18 930.25 -0.30009
6-Sep-18 934.95 0.933823
7-Sep-18 973.45 4.891978
10-Sep-18 938 0.508974
11-Sep-18 940.45 -0.48148
12-Sep-18 937.05 -1.78188
14-Sep-18 950.5 -0.16281
17-Sep-18 947.2 -0.2107
18-Sep-18 947.3 -1.4256
19-Sep-18 947.3 -2.17885
21-Sep-18 957.2 -0.03655
24-Sep-18 895.4 -6.8892
25-Sep-18 893.45 -7.77766
26-Sep-18 890.95 -8.8682
27-Sep-18 876.15 -10.4599
28-Sep-18 860.7 -12.3211
1-Oct-18 847.6 -13.7215
3-Oct-18 791.15 -18.0368
4-Oct-18 795.25 -15.9311
5-Oct-18 768.6 -17.5012
8-Oct-18 774.45 -16.7482
9-Oct-18 763.95 -18.2897
10-Oct-18 764.15 -21.5008
11-Oct-18 730.2 -22.1535

73
12-Oct-18 768.8 -18.2519
15-Oct-18 748.6 -20.111
16-Oct-18 778.3 -18.1168
17-Oct-18 760.05 -19.7582
19-Oct-18 741.5 -21.7249
22-Oct-18 734.5 -22.4638
23-Oct-18 728.8 -23.8613
24-Oct-18 732.65 -18.1762
25-Oct-18 733.8 -17.8689
26-Oct-18 728.85 -18.1941
29-Oct-18 747.8 -14.6493
30-Oct-18 745.2 -13.4193
31-Oct-18 763.35 -9.93983
1-Nov-18 755.25 -4.5377
2-Nov-18 784.45 -1.35806
5-Nov-18 777.5 1.15795
6-Nov-18 778.2 0.484215
7-Nov-18 793.5 3.868054
9-Nov-18 796.7 4.259635
12-Nov-18 780.3 6.861134
13-Nov-18 791.15 2.907128
14-Nov-18 770.4 2.912103
15-Nov-18 765.8 -1.60606
16-Nov-18 767.35 0.960463
19-Nov-18 780.35 5.23938
20-Nov-18 782.7 6.562287
21-Nov-18 769 5.515917
22-Nov-18 745.75 1.78803
26-Nov-18 749.05 2.078223
27-Nov-18 752.4 3.231118
28-Nov-18 748.35 0.073549
29-Nov-18 773.1 3.743961
30-Nov-18 790.2 3.51739
3-Dec-18 760.25 0.662032
4-Dec-18 742.3 -5.37319
5-Dec-18 717.6 -7.70418
6-Dec-18 710.9 -8.64816
7-Dec-18 720.65 -9.18084
10-Dec-18 710.8 -10.782
11-Dec-18 723.4 -7.29207
12-Dec-18 749.35 -5.28345
13-Dec-18 757.75 -1.642
14-Dec-18 755.8 -1.30582
17-Dec-18 758.5 -1.15332
18-Dec-18 770.8 -1.22381
19-Dec-18 780.55 -0.27469
20-Dec-18 795.35 3.426528
21-Dec-18 780.35 4.639625
24-Dec-18 788.4 5.253321
26-Dec-18 787.65 4.685008

74
27-Dec-18 795.4 6.287165
28-Dec-18 803.15 3.886949
31-Dec-18 803.7 1.708428

RELATIVE STRENGTH INDEX:


Table showing the ROC of Mahindra and Mahindra 4.12
Average Average 14 DAY
Date close change gain loss RS
gain loss RSI
2-Jul-18 887.25
3-Jul-18 892.35 5.1 5.1 0
4-Jul-18 898.5 6.15 6.15 0
5-Jul-18 910.5 12 12 0
6-Jul-18 924.95 14.45 14.45 0
9-Jul-18 932.9 7.95 7.95 0
10-Jul-18 931.1 -1.8 0 1.8
11-Jul-18 930.6 -0.5 0 0.5
12-Jul-18 917.55 -13.05 0 13.05
13-Jul-18 908.4 -9.15 0 9.15
16-Jul-18 900.4 -8 0 8
17-Jul-18 921.1 20.7 20.7 0
18-Jul-18 902.25 -18.85 0 18.85
19-Jul-18 910.65 8.4 8.4 0
20-Jul-18 909.55 -1.1 0 1.1 5.3392857 3.746429 1.425167 58.76572
23-Jul-18 907.7 -1.85 0 1.85 4.975 3.878571 1.282689 56.19201
24-Jul-18 920.4 12.7 12.7 0 5.4428571 3.878571 1.403315 58.3908
25-Jul-18 909.45 -10.95 0 10.95 4.5857143 4.660714 0.983908 49.59444
26-Jul-18 913.3 3.85 3.85 0 3.8285714 4.660714 0.821456 45.09886
27-Jul-18 909.75 -3.55 0 3.55 3.2607143 4.914286 0.663517 39.88641
30-Jul-18 932.7 22.95 22.95 0 4.9 4.785714 1.023881 50.58997
31-Jul-18 933.9 1.2 1.2 0 4.9857143 4.75 1.049624 51.21056
1-Aug-18 927.75 -6.15 0 6.15 4.9857143 4.257143 1.171141 53.94127
2-Aug-18 911 -16.75 0 16.75 4.9857143 4.8 1.03869 50.94891
3-Aug-18 919.6 8.6 8.6 0 5.6 4.228571 1.324324 56.97674
6-Aug-18 933.05 13.45 13.45 0 5.0821429 4.228571 1.201858 54.58381
7-Aug-18 926.3 -6.75 0 6.75 5.0821429 3.364286 1.510616 60.16913
8-Aug-18 928.05 1.75 1.75 0 4.6071429 3.364286 1.369427 57.7957
9-Aug-18 933.25 5.2 5.2 0 4.9785714 3.285714 1.515217 60.24201
10-Aug-18 945 11.75 11.75 0 5.8178571 3.153571 1.844847 64.84873
13-Aug-18 954.05 9.05 9.05 0 5.5571429 3.153571 1.762174 63.79664
14-Aug-18 952.05 -2 0 2 5.5571429 2.514286 2.210227 68.84956
16-Aug-18 949.2 -2.85 0 2.85 5.2821429 2.717857 1.943495 66.02679
17-Aug-18 961 11.8 11.8 0 6.125 2.464286 2.485507 71.30977
20-Aug-18 968.4 7.4 7.4 0 5.0142857 2.464286 2.034783 67.04871
21-Aug-18 957.55 -10.85 0 10.85 4.9285714 3.239286 1.521499 60.34106
23-Aug-18 961.65 4.1 4.1 0 5.2214286 2.8 1.864796 65.0935
24-Aug-18 968.8 7.15 7.15 0 5.7321429 1.603571 3.57461 78.14021
27-Aug-18 977.65 8.85 8.85 0 5.75 1.603571 3.585746 78.1933
28-Aug-18 978.5 0.85 0.85 0 4.85 1.603571 3.024499 75.15219
29-Aug-18 981.65 3.15 3.15 0 5.075 1.121429 4.525478 81.90202

75
30-Aug-18 982.4 0.75 0.75 0 5.0035714 1.121429 4.461783 81.69096
31-Aug-18 965.25 -17.15 0 17.15 4.6321429 2.346429 1.974125 66.37666
3-Sep-18 945.95 -19.3 0 19.3 3.7928571 3.725 1.018217 50.45131
4-Sep-18 931.65 -14.3 0 14.3 3.1464286 4.746429 0.662904 39.86425
5-Sep-18 930.25 -1.4 0 1.4 3.1464286 4.703571 0.668945 40.08189
6-Sep-18 934.95 4.7 4.7 0 3.4821429 4.5 0.77381 43.62416
7-Sep-18 973.45 38.5 38.5 0 5.3892857 4.5 1.197619 54.49621
10-Sep-18 938 -35.45 0 35.45 4.8607143 7.032143 0.691214 40.87087
11-Sep-18 940.45 2.45 2.45 0 5.0357143 6.257143 0.804795 44.59203
12-Sep-18 937.05 -3.4 0 3.4 4.7428571 6.5 0.72967 42.18551
14-Sep-18 950.5 13.45 13.45 0 5.1928571 6.5 0.798901 44.41051
17-Sep-18 947.2 -3.3 0 3.3 4.5607143 6.735714 0.677094 40.37306
18-Sep-18 947.3 0.1 0.1 0 4.5071429 6.735714 0.669141 40.08895
19-Sep-18 947.3 0 0 0 4.2821429 6.735714 0.635737 38.86548
21-Sep-18 957.2 9.9 9.9 0 4.9357143 6.735714 0.732768 42.28886
24-Sep-18 895.4 -61.8 0 61.8 4.9357143 9.925 0.497301 33.21317
25-Sep-18 893.45 -1.95 0 1.95 4.9357143 8.685714 0.568257 36.23492
26-Sep-18 890.95 -2.5 0 2.5 4.9357143 7.842857 0.629326 38.62493
27-Sep-18 876.15 -14.8 0 14.8 4.9357143 8.8 0.560877 35.93344
28-Sep-18 860.7 -15.45 0 15.45 4.6 9.903571 0.464479 31.71633
1-Oct-18 847.6 -13.1 0 13.1 1.85 10.83929 0.170675 14.57923
3-Oct-18 791.15 -56.45 0 56.45 1.85 12.33929 0.149928 13.03801
4-Oct-18 795.25 4.1 4.1 0 1.9678571 12.33929 0.159479 13.75437
5-Oct-18 768.6 -26.65 0 26.65 1.9678571 14 0.140561 12.32386
8-Oct-18 774.45 5.85 5.85 0 1.425 14 0.101786 9.23825
9-Oct-18 763.95 -10.5 0 10.5 1.425 14.51429 0.098179 8.940175
10-Oct-18 764.15 0.2 0.2 0 1.4321429 14.51429 0.098671 8.980963
11-Oct-18 730.2 -33.95 0 33.95 1.4321429 16.93929 0.084546 7.79549
12-Oct-18 768.8 38.6 38.6 0 3.4821429 16.93929 0.205566 17.05142
15-Oct-18 748.6 -20.2 0 20.2 3.4821429 13.96786 0.249297 19.95497
16-Oct-18 778.3 29.7 29.7 0 5.6035714 13.82857 0.405217 28.83661
17-Oct-18 760.05 -18.25 0 18.25 5.6035714 14.95357 0.374731 27.25851
19-Oct-18 741.5 -18.55 0 18.55 5.6035714 15.22143 0.368137 26.90791
22-Oct-18 734.5 -7 0 7 5.6035714 14.61786 0.383337 27.71106
23-Oct-18 728.8 -5.7 0 5.7 5.6035714 14.08929 0.397719 28.45484
24-Oct-18 732.65 3.85 3.85 0 5.8785714 10.05714 0.584517 36.88929
25-Oct-18 733.8 1.15 1.15 0 5.6678571 10.05714 0.563565 36.04361
26-Oct-18 728.85 -4.95 0 4.95 5.6678571 8.507143 0.666247 39.98488
29-Oct-18 747.8 18.95 18.95 0 6.6035714 8.507143 0.776238 43.70125
30-Oct-18 745.2 -2.6 0 2.6 6.6035714 7.942857 0.831385 45.39651
31-Oct-18 763.35 18.15 18.15 0 7.8857143 7.942857 0.992806 49.81949
1-Nov-18 755.25 -8.1 0 8.1 7.8857143 6.096429 1.293497 56.39847
2-Nov-18 784.45 29.2 29.2 0 7.2142857 6.096429 1.183363 54.19909
5-Nov-18 777.5 -6.95 0 6.95 7.2142857 5.15 1.400832 58.34778
6-Nov-18 778.2 0.7 0.7 0 5.1428571 5.15 0.998613 49.9653
7-Nov-18 793.5 15.3 15.3 0 6.2357143 3.846429 1.62117 61.8491
9-Nov-18 796.7 3.2 3.2 0 6.4642857 2.521429 2.563739 71.93959
12-Nov-18 780.3 -16.4 0 16.4 6.4642857 3.192857 2.024609 66.93787
13-Nov-18 791.15 10.85 10.85 0 7.2392857 2.785714 2.598718 72.21233
14-Nov-18 770.4 -20.75 0 20.75 6.9642857 4.267857 1.631799 62.00318
15-Nov-18 765.8 -4.6 0 4.6 6.8821429 4.596429 1.49728 59.95644
16-Nov-18 767.35 1.55 1.55 0 6.9928571 4.242857 1.648148 62.23776
19-Nov-18 780.35 13 13 0 6.5678571 4.242857 1.54798 60.75322

76
20-Nov-18 782.7 2.35 2.35 0 6.7357143 4.057143 1.660211 62.409
21-Nov-18 769 -13.7 0 13.7 5.4392857 5.035714 1.080142 51.92636
22-Nov-18 745.75 -23.25 0 23.25 5.4392857 6.117857 0.889083 47.06428
26-Nov-18 749.05 3.3 3.3 0 3.5892857 6.117857 0.58669 36.97572
27-Nov-18 752.4 3.35 3.35 0 3.8285714 5.621429 0.681067 40.51398
28-Nov-18 748.35 -4.05 0 4.05 3.7785714 5.910714 0.639275 38.99742
29-Nov-18 773.1 24.75 24.75 0 4.4535714 5.910714 0.753474 42.97037
30-Nov-18 790.2 17.1 17.1 0 5.4464286 5.910714 0.92145 47.95597
3-Dec-18 760.25 -29.95 0 29.95 5.4464286 6.878571 0.791796 44.19009
4-Dec-18 742.3 -17.95 0 17.95 4.6714286 8.160714 0.572429 36.40412
5-Dec-18 717.6 -24.7 0 24.7 4.6714286 8.442857 0.553299 35.62092
6-Dec-18 710.9 -6.7 0 6.7 4.6714286 8.592857 0.543641 35.21809
7-Dec-18 720.65 9.75 9.75 0 5.2571429 8.592857 0.611804 37.95771
10-Dec-18 710.8 -9.85 0 9.85 4.3285714 9.296429 0.465617 31.76933
11-Dec-18 723.4 12.6 12.6 0 5.0607143 9.296429 0.544372 35.24876
12-Dec-18 749.35 25.95 25.95 0 6.9142857 8.317857 0.831258 45.39273
13-Dec-18 757.75 8.4 8.4 0 7.5142857 6.657143 1.128755 53.02419
14-Dec-18 755.8 -1.95 0 1.95 7.2785714 6.796429 1.070941 51.71276
17-Dec-18 758.5 2.7 2.7 0 7.2321429 6.796429 1.064109 51.55295
18-Dec-18 770.8 12.3 12.3 0 8.1107143 6.507143 1.246432 55.48497
19-Dec-18 780.55 9.75 9.75 0 7.0392857 6.507143 1.081778 51.96414
20-Dec-18 795.35 14.8 14.8 0 6.875 6.507143 1.056531 51.37443
21-Dec-18 780.35 -15 0 15 6.875 5.439286 1.263953 55.82947
24-Dec-18 788.4 8.05 8.05 0 7.45 4.157143 1.792096 64.18462
26-Dec-18 787.65 -0.75 0 0.75 7.45 2.446429 3.045255 75.27968
27-Dec-18 795.4 7.75 7.75 0 8.0035714 1.967857 4.067151 80.26504
28-Dec-18 803.15 7.75 7.75 0 7.8607143 1.967857 3.994555 79.9782
31-Dec-18 803.7 0.55 0.55 0 7.9 1.264286 6.248588 86.20421

SHORT TERM MOVING AVERAGE:


Chart showing the short term Moving Average of Mahindra and Mahindra 4.16

SHORT TERM MOVING AVERAGE


1200
1000
Stock Price

800
600
400
200
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

close 10 day moving average

Interpretation: In the above chart, X axis indicates month and the Y axis indicates the price
of scrip. In the above chart, blue color indicates closing price. Orange color indicates short term
moving average (i.e., 10 days MV). Moving averages are used along with the price of the scrip.

77
In the above chart, downward penetration of the rising average indicates the possibility of a
further fall. Hence, the sell signal is generated during September. Upward penetration of a
falling average would indicate the possibility of the further rise. Hence, the buy signal is
generated from January to August, November & December.

LONG TERM MOVING AVERAGE:


Chart showing the Long term Moving Average of Mahindra and Mahindra 4.17

LONG TERM MOVING AVERAGE


1200

1000

800
Stock price

600

400

200

0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

close 20 day moving average

Interpretation: In the above chart, blue color indicates closing price. Orange color indicates
long term moving average (i.e., 20 days MV). Moving averages are used along with the price
of the scrip. In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during September. Upward
penetration of a falling average would indicate the possibility of the further rise. Hence, the
buy signal is generated in the month of November and December. The moving average is
continuously falling in the month of October to December.

78
SHORT TERM AND LONG TERM MOVING AVERAGE:
Chart showing the short term and Long term Moving Average of Mahindra and Mahindra 4.18

SHORT TERM AND LONG TERM MOVING AVERAGE


1200
1000
Stock price

800
600
400
200
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

close 10 day moving average 20 day moving average

Interpretation: In the above chart, Orange color indicates closing price. Orange color indicates
short term moving average (i.e., 10 days MV) & gray color indicates long term moving average
(i.e., 20 days MV). When long term & short term moving averages are drawn, the intersection
of two moving averages generates buy or sell signal. In the above chart, the scrip price is
falling & the short term moving average intersects the long term moving average from above
falls below it during the month of September and December. Hence, the sell signal is generated.
The scrip price is rising & the short term moving average intersects the long term moving
average from below continuously from November to December indicating a further rise in
price, gives a buy signal. The short term movement may not hold long. Hence, the investor
should wait for the long term average to turn up before buying or selling the scrip.

RATE OF CHANGE INDICATOR:


Chart showing the ROC of Mahindra and Mahindra 4.19

20 DAY ROC
10
5
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Stock Price

-5
-10
20 DAY ROC
-15
-20
-25
-30
Months

79
Interpretation: ROC measures the rate of change between the current price & the price ‘n’
number of days in past. ROC helps to find out the overbought & oversold positions in scrip. In
the above chart, scrip’s ROC reaches the historic high value in the month of November, the
scrip is in overbought region & a fall in the value can be anticipated. In November, the investor
can sell the scrip. Similarly, scrip’s ROC reaches the historic low value in the month of
October, the scrip is in oversold region & a rise in the scrip’s price can be anticipated. In
October, the investor can buy the scrip

RELATIVE STRENGTH INDEX:


Chart showing the ROC of Mahindra and Mahindra 4.20

14 DAY RSI
100
90
80
70
Stock price

60
50
40 14 DAY RSI
30
20
10
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Interpretation: When the RSI value is 30 and below that value, then it is the signal for buying.
It indicates the oversold point. Where in the selling pressure is overtaken by slowly developing
buying pressure, curtailing the further downward movement of the stock price. Buying points
from the RSI graph for Mahindra and Mahindra are 3rd and 11th of Oct. When it has crossed
the 70, then sell signal is indicated. Following are the selling points from the RSI graph for
Mahindra and Mahindra are 24th and 30th of August, 9th and 13th of November and 31st of
December.

80
EICHER MOTORS LTD:
MOVING AVERAGE:
Table showing the Moving Average of Eicher Motors ltd 4.13
Date Close 10 DAYS MOVING AVERAGE 20 DAYS MOVING AVERAGES
2-Jul-18 28,187.70
3-Jul-18 28,079.00
4-Jul-18 28,238.00
5-Jul-18 27,888.00
6-Jul-18 27,626.30
9-Jul-18 27,632.50
10-Jul-18 28,289.00
11-Jul-18 28,160.50
12-Jul-18 27,995.30
13-Jul-18 27,529.20 27,962.55
16-Jul-18 27,424.30 27,886.21
17-Jul-18 27,153.70 27,793.68
18-Jul-18 27,222.60 27,692.14
19-Jul-18 26,980.70 27,601.41
20-Jul-18 27,048.10 27,543.59
23-Jul-18 27,023.40 27,482.68
24-Jul-18 27,697.80 27,423.56
25-Jul-18 27,288.30 27,336.34
26-Jul-18 28,265.70 27,363.38
27-Jul-18 28,946.20 27,505.08 27,733.82
30-Jul-18 28,594.70 27,622.12 27,754.17
31-Jul-18 27,798.60 27,686.61 27,740.15
1-Aug-18 27,298.70 27,694.22 27,693.18
2-Aug-18 26,960.80 27,692.23 27,646.82
3-Aug-18 26,995.70 27,686.99 27,615.29
6-Aug-18 27,037.50 27,688.40 27,585.54
7-Aug-18 27,523.60 27,670.98 27,547.27
8-Aug-18 27,593.20 27,701.47 27,518.91
9-Aug-18 27,438.80 27,618.78 27,491.08
10-Aug-18 28,997.70 27,623.93 27,564.51
13-Aug-18 28,406.60 27,605.12 27,613.62
14-Aug-18 28,992.30 27,724.49 27,705.55
16-Aug-18 28,803.80 27,875.00 27,784.61
17-Aug-18 28,476.20 28,026.54 27,859.39
20-Aug-18 28,382.80 28,165.25 27,926.12
21-Aug-18 28,611.20 28,322.62 28,005.51
23-Aug-18 28,766.90 28,446.95 28,058.97
24-Aug-18 28,869.80 28,574.61 28,138.04
27-Aug-18 28,982.10 28,728.94 28,173.86
28-Aug-18 28,677.90 28,696.96 28,160.45
29-Aug-18 28,188.80 28,675.18 28,140.15
30-Aug-18 27,602.20 28,536.17 28,130.33
31-Aug-18 28,059.80 28,461.77 28,168.39
3-Sep-18 28,885.80 28,502.73 28,264.64
4-Sep-18 28,807.20 28,545.17 28,355.21
5-Sep-18 29,055.00 28,589.55 28,456.09
6-Sep-18 28,844.20 28,597.28 28,522.12

81
7-Sep-18 28,682.20 28,578.52 28,576.57
10-Sep-18 28,623.10 28,542.62 28,635.78
11-Sep-18 28,069.60 28,481.79 28,589.38
12-Sep-18 28,812.20 28,544.13 28,609.66
14-Sep-18 29,383.80 28,722.29 28,629.23
17-Sep-18 29,663.70 28,882.68 28,672.23
18-Sep-18 28,900.30 28,884.13 28,693.43
19-Sep-18 28,410.50 28,844.46 28,694.82
21-Sep-18 27,940.20 28,732.98 28,661.27
24-Sep-18 25,852.80 28,433.84 28,515.56
25-Sep-18 25,599.70 28,125.59 28,352.06
26-Sep-18 25,180.80 27,781.36 28,161.99
27-Sep-18 24,902.20 27,464.62 27,973.21
28-Sep-18 24,185.40 27,001.94 27,773.04
1-Oct-18 24,749.50 26,538.51 27,630.40
3-Oct-18 23,235.80 25,895.72 27,389.20
4-Oct-18 21,907.80 25,196.47 27,040.30
5-Oct-18 21,190.40 24,474.46 26,659.46
8-Oct-18 22,134.80 23,893.92 26,313.45
9-Oct-18 21,085.70 23,417.21 25,925.53
10-Oct-18 22,582.30 23,115.47 25,620.53
11-Oct-18 22,357.40 22,833.13 25,307.25
12-Oct-18 23,903.80 22,733.29 25,098.96
15-Oct-18 23,434.50 22,658.20 24,830.07
16-Oct-18 23,002.20 22,483.47 24,510.99
17-Oct-18 21,978.10 22,357.70 24,126.71
19-Oct-18 21,625.30 22,329.45 23,762.96
22-Oct-18 22,425.10 22,452.92 23,463.69
23-Oct-18 22,258.20 22,465.26 23,179.59
24-Oct-18 22,624.70 22,619.16 23,018.19
25-Oct-18 22,092.20 22,570.15 22,842.81
26-Oct-18 21,806.40 22,515.05 22,674.09
29-Oct-18 21,461.90 22,270.86 22,502.08
30-Oct-18 21,026.20 22,030.03 22,344.12
31-Oct-18 21,864.60 21,916.27 22,199.87
1-Nov-18 21,992.10 21,917.67 22,137.69
2-Nov-18 22,674.10 22,022.55 22,176.00
5-Nov-18 22,552.20 22,035.26 22,244.09
6-Nov-18 22,559.70 22,065.41 22,265.34
7-Nov-18 22,650.30 22,067.97 22,343.57
9-Nov-18 22,495.20 22,108.27 22,339.21
12-Nov-18 21,933.60 22,120.99 22,318.02
13-Nov-18 23,241.80 22,298.98 22,284.92
14-Nov-18 23,240.10 22,520.37 22,275.20
15-Nov-18 23,945.30 22,728.44 22,322.36
16-Nov-18 24,735.00 23,002.73 22,460.20
19-Nov-18 24,897.10 23,225.03 22,623.79
20-Nov-18 24,595.80 23,429.39 22,732.33
21-Nov-18 24,216.40 23,595.06 22,830.24
22-Nov-18 24,109.10 23,740.94 22,904.46
26-Nov-18 23,848.30 23,876.25 22,992.26
27-Nov-18 23,807.60 24,063.65 23,092.32
28-Nov-18 23,111.30 24,050.60 23,174.79

82
29-Nov-18 23,521.30 24,078.72 23,299.55
30-Nov-18 23,405.30 24,024.72 23,376.58
3-Dec-18 23,567.30 23,907.95 23,455.34
4-Dec-18 23,401.40 23,758.38 23,491.71
5-Dec-18 22,793.40 23,578.14 23,503.77
6-Dec-18 22,211.30 23,377.63 23,486.35
7-Dec-18 22,369.20 23,203.64 23,472.29
10-Dec-18 22,404.80 23,059.29 23,467.77
11-Dec-18 22,640.60 22,942.59 23,503.12
12-Dec-18 23,722.00 23,003.66 23,527.13
13-Dec-18 23,305.40 22,982.07 23,530.40
14-Dec-18 23,716.20 23,013.16 23,518.94
17-Dec-18 23,697.80 23,026.21 23,467.08
18-Dec-18 23,865.70 23,072.64 23,415.51
19-Dec-18 23,955.70 23,188.87 23,383.51
20-Dec-18 24,092.00 23,376.94 23,377.29
21-Dec-18 23,597.60 23,499.78 23,351.71
24-Dec-18 23,210.70 23,580.37 23,319.83
26-Dec-18 23,081.30 23,624.44 23,283.52
27-Dec-18 22,994.50 23,551.69 23,277.68
28-Dec-18 23,124.10 23,533.56 23,257.82
31-Dec-18 23,158.30 23,477.77 23,245.47

RATE OF CHANGE INDICATOR:


Table showing the ROC of Eicher Motors ltd 4.14
Date Close 20 DAY ROC
2-Jul-18 28,187.70
3-Jul-18 28,079.00
4-Jul-18 28,238.00
5-Jul-18 27,888.00
6-Jul-18 27,626.30
9-Jul-18 27,632.50
10-Jul-18 28,289.00
11-Jul-18 28,160.50
12-Jul-18 27,995.30
13-Jul-18 27,529.20
16-Jul-18 27,424.30
17-Jul-18 27,153.70
18-Jul-18 27,222.60
19-Jul-18 26,980.70
20-Jul-18 27,048.10
23-Jul-18 27,023.40
24-Jul-18 27,697.80
25-Jul-18 27,288.30
26-Jul-18 28,265.70
27-Jul-18 28,946.20
30-Jul-18 28,594.70 1.443892
31-Jul-18 27,798.60 -0.99861
1-Aug-18 27,298.70 -3.32637
2-Aug-18 26,960.80 -3.32473

83
3-Aug-18 26,995.70 -2.28261
6-Aug-18 27,037.50 -2.15326
7-Aug-18 27,523.60 -2.70565
8-Aug-18 27,593.20 -2.01452
9-Aug-18 27,438.80 -1.98783
10-Aug-18 28,997.70 5.334336
13-Aug-18 28,406.60 3.58186
14-Aug-18 28,992.30 6.771085
16-Aug-18 28,803.80 5.808409
17-Aug-18 28,476.20 5.542851
20-Aug-18 28,382.80 4.934543
21-Aug-18 28,611.20 5.875649
23-Aug-18 28,766.90 3.859873
24-Aug-18 28,869.80 5.795524
27-Aug-18 28,982.10 2.534521
28-Aug-18 28,677.90 -0.92689
29-Aug-18 28,188.80 -1.41949
30-Aug-18 27,602.20 -0.70651
31-Aug-18 28,059.80 2.788045
3-Sep-18 28,885.80 7.139996
4-Sep-18 28,807.20 6.710328
5-Sep-18 29,055.00 7.461859
6-Sep-18 28,844.20 4.798064
7-Sep-18 28,682.20 3.946625
10-Sep-18 28,623.10 4.316151
11-Sep-18 28,069.60 -3.2006
12-Sep-18 28,812.20 1.427837
14-Sep-18 29,383.80 1.350359
17-Sep-18 29,663.70 2.98537
18-Sep-18 28,900.30 1.489314
19-Sep-18 28,410.50 0.097594
21-Sep-18 27,940.20 -2.34524
24-Sep-18 25,852.80 -10.13
25-Sep-18 25,599.70 -11.3271
26-Sep-18 25,180.80 -13.116
27-Sep-18 24,902.20 -13.1659
28-Sep-18 24,185.40 -14.2021
1-Oct-18 24,749.50 -10.335
3-Oct-18 23,235.80 -17.1919
4-Oct-18 21,907.80 -24.1572
5-Oct-18 21,190.40 -26.4406
8-Oct-18 22,134.80 -23.8176
9-Oct-18 21,085.70 -26.898
10-Oct-18 22,582.30 -21.2672
11-Oct-18 22,357.40 -21.8904
12-Oct-18 23,903.80 -14.841
15-Oct-18 23,434.50 -18.6647
16-Oct-18 23,002.20 -21.7181
17-Oct-18 21,978.10 -25.9091
19-Oct-18 21,625.30 -25.1727

84
22-Oct-18 22,425.10 -21.0676
23-Oct-18 22,258.20 -20.3363
24-Oct-18 22,624.70 -12.4865
25-Oct-18 22,092.20 -13.7013
26-Oct-18 21,806.40 -13.4007
29-Oct-18 21,461.90 -13.8152
30-Oct-18 21,026.20 -13.0624
31-Oct-18 21,864.60 -11.6564
1-Nov-18 21,992.10 -5.35252
2-Nov-18 22,674.10 3.497841
5-Nov-18 22,552.20 6.426495
6-Nov-18 22,559.70 1.919602
7-Nov-18 22,650.30 7.420195
9-Nov-18 22,495.20 -0.3857
12-Nov-18 21,933.60 -1.89557
13-Nov-18 23,241.80 -2.76943
14-Nov-18 23,240.10 -0.82955
15-Nov-18 23,945.30 4.100043
16-Nov-18 24,735.00 12.54385
19-Nov-18 24,897.10 15.1295
20-Nov-18 24,595.80 9.679778
21-Nov-18 24,216.40 8.797657
22-Nov-18 24,109.10 6.560971
26-Nov-18 23,848.30 7.948959
27-Nov-18 23,807.60 9.177122
28-Nov-18 23,111.30 7.685247
29-Nov-18 23,521.30 11.86662
30-Nov-18 23,405.30 7.04655
3-Dec-18 23,567.30 7.162572
4-Dec-18 23,401.40 3.207625
5-Dec-18 22,793.40 1.069519
6-Dec-18 22,211.30 -1.54435
7-Dec-18 22,369.20 -1.24104
10-Dec-18 22,404.80 -0.40186
11-Dec-18 22,640.60 3.223365
12-Dec-18 23,722.00 2.066105
13-Dec-18 23,305.40 0.28098
14-Dec-18 23,716.20 -0.95676
17-Dec-18 23,697.80 -4.19325
18-Dec-18 23,865.70 -4.14265
19-Dec-18 23,955.70 -2.60248
20-Dec-18 24,092.00 -0.5137
21-Dec-18 23,597.60 -2.12161
24-Dec-18 23,210.70 -2.67357
26-Dec-18 23,081.30 -3.05071
27-Dec-18 22,994.50 -0.50538
28-Dec-18 23,124.10 -1.68868
31-Dec-18 23,158.30 -1.05532

85
RELATIVE STRENGTH INDEX:
Table Showing the RSI of Eicher Motors Ltd 4.15
Average Average 14 day
Date Close Change Gain loss RS
gain loss RSI
2-Jul-18 28,187.70
3-Jul-18 28,079.00 -108.70 0 108.7
4-Jul-18 28,238.00 159.00 159 0
5-Jul-18 27,888.00 -350.00 0 350
6-Jul-18 27,626.30 -261.70 0 261.7
9-Jul-18 27,632.50 6.20 6.2 0
10-Jul-18 28,289.00 656.50 656.5 0
11-Jul-18 28,160.50 -128.50 0 128.5
12-Jul-18 27,995.30 -165.20 0 165.2
13-Jul-18 27,529.20 -466.10 0 466.1
16-Jul-18 27,424.30 -104.9 0 104.9
17-Jul-18 27,153.70 -270.6 0 270.6
18-Jul-18 27,222.60 68.9 68.9 0
19-Jul-18 26,980.70 -241.9 0 241.9
20-Jul-18 27,048.10 67.4 67.4 0 68.42857 149.8286 0.456712 31.35227
23-Jul-18 27,023.40 -24.7 0 24.7 68.42857 143.8286 0.475765 32.23852
24-Jul-18 27,697.80 674.4 674.4 0 105.2429 143.8286 0.731724 42.25409
25-Jul-18 27,288.30 -409.5 0 409.5 105.2429 148.0786 0.710723 41.54519
26-Jul-18 28,265.70 977.4 977.4 0 175.0571 129.3857 1.352987 57.50082
27-Jul-18 28,946.20 680.5 680.5 0 223.2214 129.3857 1.72524 63.30599
30-Jul-18 28,594.70 -351.5 0 351.5 176.3286 154.4929 1.141338 53.30023
31-Jul-18 27,798.60 -796.1 0 796.1 176.3286 202.1786 0.872143 46.58527
1-Aug-18 27,298.70 -499.9 0 499.9 176.3286 226.0857 0.779919 43.81767
2-Aug-18 26,960.80 -337.9 0 337.9 176.3286 216.9286 0.812842 44.83798
3-Aug-18 26,995.70 34.9 34.9 0 178.8214 209.4357 0.853825 46.05747
6-Aug-18 27,037.50 41.8 41.8 0 181.8071 190.1071 0.95634 48.88415
7-Aug-18 27,523.60 486.1 486.1 0 211.6071 190.1071 1.113094 52.67603
8-Aug-18 27,593.20 69.6 69.6 0 216.5786 172.8286 1.253141 55.61751
9-Aug-18 27,438.80 -154.4 0 154.4 211.7643 183.8571 1.151787 53.527
10-Aug-18 28,997.70 1,558.90 1558.9 0 323.1143 182.0929 1.774448 63.95679
13-Aug-18 28,406.60 -591.1 0 591.1 274.9429 224.3143 1.225704 55.07039
14-Aug-18 28,992.30 585.7 585.7 0 316.7786 195.0643 1.62397 61.88981
16-Aug-18 28,803.80 -188.5 0 188.5 246.9643 208.5286 1.184319 54.21913
17-Aug-18 28,476.20 -327.6 0 327.6 198.3571 231.9286 0.855251 46.09894
20-Aug-18 28,382.80 -93.4 0 93.4 198.3571 213.4929 0.929104 48.16247
21-Aug-18 28,611.20 228.4 228.4 0 214.6714 156.6286 1.370576 57.81617
23-Aug-18 28,766.90 155.7 155.7 0 225.7929 120.9214 1.867269 65.12361
24-Aug-18 28,869.80 102.9 102.9 0 233.1429 96.78571 2.408856 70.66465
27-Aug-18 28,982.10 112.3 112.3 0 238.6714 96.78571 2.465978 71.14811
28-Aug-18 28,677.90 -304.2 0 304.2 235.6857 118.5143 1.988669 66.54029
29-Aug-18 28,188.80 -489.1 0 489.1 200.9643 153.45 1.30964 56.70321
30-Aug-18 27,602.20 -586.6 0 586.6 195.9929 195.35 1.003291 50.08213
31-Aug-18 28,059.80 457.6 457.6 0 228.6786 184.3214 1.240651 55.37011
3-Sep-18 28,885.80 826 826 0 176.3286 184.3214 0.956636 48.89188
4-Sep-18 28,807.20 -78.6 0 78.6 176.3286 147.7143 1.193714 54.4152
5-Sep-18 29,055.00 247.8 247.8 0 152.1929 147.7143 1.030319 50.74666
6-Sep-18 28,844.20 -210.8 0 210.8 152.1929 149.3071 1.019327 50.47856

86
7-Sep-18 28,682.20 -162 0 162 152.1929 137.4786 1.10703 52.53982
10-Sep-18 28,623.10 -59.1 0 59.1 152.1929 135.0286 1.127116 52.98799
11-Sep-18 28,069.60 -553.5 0 553.5 135.8786 174.5643 0.778387 43.76927
12-Sep-18 28,812.20 742.6 742.6 0 177.8 174.5643 1.018536 50.45914
14-Sep-18 29,383.80 571.6 571.6 0 211.2786 174.5643 1.21032 54.75767
17-Sep-18 29,663.70 279.9 279.9 0 223.25 174.5643 1.278898 56.11915
18-Sep-18 28,900.30 -763.4 0 763.4 223.25 207.3643 1.076608 51.84454
19-Sep-18 28,410.50 -489.8 0 489.8 223.25 207.4143 1.076348 51.83852
21-Sep-18 27,940.20 -470.3 0 470.3 223.25 199.1071 1.121256 52.85811
24-Sep-18 25,852.80 -2,087.40 0 2087.4 190.5643 348.2071 0.547273 35.37015
25-Sep-18 25,599.70 -253.1 0 253.1 131.5643 366.2857 0.359185 26.42649
26-Sep-18 25,180.80 -418.9 0 418.9 131.5643 390.5929 0.336832 25.1963
27-Sep-18 24,902.20 -278.6 0 278.6 113.8643 410.4929 0.277384 21.71503
28-Sep-18 24,185.40 -716.8 0 716.8 113.8643 446.6357 0.254938 20.31477
1-Oct-18 24,749.50 564.1 564.1 0 154.1571 435.0643 0.354332 26.16285
3-Oct-18 23,235.80 -1,513.70 0 1513.7 154.1571 538.9643 0.286025 22.241
4-Oct-18 21,907.80 -1,328.00 0 1328 154.1571 594.2857 0.259399 20.59705
5-Oct-18 21,190.40 -717.4 0 717.4 101.1143 645.5286 0.156638 13.54252
8-Oct-18 22,134.80 944.4 944.4 0 127.7429 645.5286 0.197889 16.5198
9-Oct-18 21,085.70 -1,049.10 0 1049.1 107.75 720.4643 0.149556 13.00992
10-Oct-18 22,582.30 1,496.60 1496.6 0 214.65 665.9357 0.322328 24.37582
11-Oct-18 22,357.40 -224.9 0 224.9 214.65 647.0143 0.331755 24.91109
12-Oct-18 23,903.80 1,546.40 1546.4 0 325.1071 613.4214 0.52999 34.64009
15-Oct-18 23,434.50 -469.3 0 469.3 325.1071 497.8429 0.653032 39.50509
16-Oct-18 23,002.20 -432.3 0 432.3 325.1071 510.6429 0.636662 38.90005
17-Oct-18 21,978.10 -1,024.10 0 1024.1 325.1071 553.8714 0.586972 36.98692
19-Oct-18 21,625.30 -352.8 0 352.8 325.1071 559.1714 0.581409 36.76524
22-Oct-18 22,425.10 799.8 799.8 0 382.2357 507.9714 0.752475 42.93784
23-Oct-18 22,258.20 -166.9 0 166.9 341.9429 519.8929 0.657718 39.67611
24-Oct-18 22,624.70 366.5 366.5 0 368.1214 411.7714 0.893995 47.20154
25-Oct-18 22,092.20 -532.5 0 532.5 368.1214 354.95 1.037108 50.9108
26-Oct-18 21,806.40 -285.8 0 285.8 368.1214 324.1214 1.135752 53.17808
29-Oct-18 21,461.90 -344.5 0 344.5 300.6643 348.7286 0.862173 46.29929
30-Oct-18 21,026.20 -435.7 0 435.7 300.6643 304.9143 0.986062 49.6491
31-Oct-18 21,864.60 838.4 838.4 0 253.65 304.9143 0.831873 45.41107
1-Nov-18 21,992.10 127.5 127.5 0 262.7571 288.85 0.909666 47.63483
2-Nov-18 22,674.10 682 682 0 201.0143 288.85 0.695912 41.03469
5-Nov-18 22,552.20 -121.9 0 121.9 201.0143 264.0357 0.761315 43.22423
6-Nov-18 22,559.70 7.5 7.5 0 201.55 233.1571 0.864438 46.36455
7-Nov-18 22,650.30 90.6 90.6 0 208.0214 160.0071 1.300076 56.52317
9-Nov-18 22,495.20 -155.1 0 155.1 208.0214 145.8857 1.42592 58.77853
12-Nov-18 21,933.60 -561.6 0 561.6 150.8929 186 0.811252 44.78957
13-Nov-18 23,241.80 1,308.20 1308.2 0 244.3357 174.0786 1.403594 58.39564
14-Nov-18 23,240.10 -1.7 0 1.7 218.1571 174.2 1.252337 55.60167
15-Nov-18 23,945.30 705.2 705.2 0 268.5286 136.1643 1.972093 66.35367
16-Nov-18 24,735.00 789.7 789.7 0 324.9357 115.75 2.80722 73.73412
19-Nov-18 24,897.10 162.1 162.1 0 336.5143 91.14286 3.692163 78.68787
20-Nov-18 24,595.80 -301.3 0 301.3 336.5143 81.54286 4.12684 80.49481
21-Nov-18 24,216.40 -379.4 0 379.4 276.6286 108.6429 2.54622 71.80096
22-Nov-18 24,109.10 -107.3 0 107.3 267.5214 116.3071 2.300129 69.69815
26-Nov-18 23,848.30 -260.8 0 260.8 218.8071 134.9357 1.621566 61.85486
27-Nov-18 23,807.60 -40.7 0 40.7 218.8071 129.1357 1.694397 62.88594
28-Nov-18 23,111.30 -696.3 0 696.3 218.2714 178.8714 1.22027 54.96043

87
29-Nov-18 23,521.30 410 410 0 241.0857 178.8714 1.347816 57.40722
30-Nov-18 23,405.30 -116 0 116 241.0857 176.0786 1.369194 57.79155
3-Dec-18 23,567.30 162 162 0 252.6571 135.9643 1.858261 65.01369
4-Dec-18 23,401.40 -165.9 0 165.9 159.2143 147.8143 1.077124 51.8565
5-Dec-18 22,793.40 -608 0 608 159.2143 191.1214 0.833053 45.4462
6-Dec-18 22,211.30 -582.1 0 582.1 108.8429 232.7 0.467739 31.86799
7-Dec-18 22,369.20 157.9 157.9 0 63.71429 232.7 0.273804 21.49501
10-Dec-18 22,404.80 35.6 35.6 0 54.67857 232.7 0.234975 19.02667
11-Dec-18 22,640.60 235.8 235.8 0 71.52143 211.1786 0.338677 25.29941
12-Dec-18 23,722.00 1,081.40 1081.4 0 148.7643 184.0786 0.808156 44.69505
13-Dec-18 23,305.40 -416.6 0 416.6 148.7643 206.1714 0.721556 41.91302
14-Dec-18 23,716.20 410.8 410.8 0 178.1071 187.5429 0.949688 48.70973
17-Dec-18 23,697.80 -18.4 0 18.4 178.1071 185.95 0.957823 48.92285
18-Dec-18 23,865.70 167.9 167.9 0 190.1 136.2143 1.395595 58.25672
19-Dec-18 23,955.70 90 90 0 167.2429 136.2143 1.227792 55.11251
20-Dec-18 24,092.00 136.3 136.3 0 176.9786 127.9286 1.383417 58.04343
21-Dec-18 23,597.60 -494.4 0 494.4 165.4071 163.2429 1.013258 50.32927
24-Dec-18 23,210.70 -386.9 0 386.9 165.4071 179.0286 0.923915 48.02265
26-Dec-18 23,081.30 -129.4 0 129.4 165.4071 144.8429 1.141977 53.31415
27-Dec-18 22,994.50 -86.8 0 86.8 165.4071 109.4643 1.51106 60.17619
28-Dec-18 23,124.10 129.6 129.6 0 163.3857 109.4643 1.492594 59.88115
31-Dec-18 23,158.30 34.2 34.2 0 163.2857 109.4643 1.49168 59.86644

SHORT TERM MOVING AVERAGE:


Chart showing the Moving Average of Eicher Motors Ltd 4.21

SHORT TERM MOIVNG AVERAGE


35,000.00
30,000.00
Stock Price

25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 DAYS MOVING AVERAGE

Interpretation: In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during & November. Upward
penetration of a falling average would indicate the possibility of the further rise. Hence, the
buy signal is generated during October. We can see that there is a continuous fall from October
to December.

LONG TERM MOVING AVERAGE:

88
Chart showing the Long term Moving Average of Eicher Motors Ltd 4.22

LONG TERM MOVING AVERAGE


35,000.00
30,000.00
25,000.00
Stock price

20,000.00
15,000.00
10,000.00
5,000.00
0.00
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 20 Dayes moving average

Interpretation: In the above chart, blue color indicates closing price. Orange color indicates
long term moving average (i.e., 20 days MV). Moving averages are used along with the price
of the scrip. In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during September and December.
Upward penetration of a falling average would indicate the possibility of the further rise.
Hence, the buy signal is generated during November. The moving average is continuously
falling from June to September.

SHORT TERM AND LONG TERM MOVING AVERAGE:


Chart showing the Short term and long term Moving Average of Eicher Motors Ltd 4.23

89
SHORT TERM AND LONG TERM MOVING AVERAGE
35,000.00
30,000.00
25,000.00
Stock Price

20,000.00
15,000.00
10,000.00
5,000.00
0.00
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

Close 10 DAYS MOVING AVERAGE 20 Dayes moving average

Interpretation: In the above chart, blue color indicates closing price. Orange color indicates
short term moving average (i.e., 10 days MV) & Gray color indicates long term moving average
(i.e., 20 days MV). When long term & short term moving averages are drawn, the intersection
of two moving averages generates buy or sell signal. In the above chart, the scrip price is falling
& the short term moving average intersects the long term moving average from above falls
below it during the month of September and December. Hence, the sell signal is generated. The
scrip price is rising & the short term moving average intersects the long term moving average
from below during the October & November, indicating a further rise in price, gives a buy
signal. The short term movement may not hold long. Hence, the investor should wait for the
long term average to turn up before buying or selling the scrip.

RATE OF CHANGE INDICATOR:


Chart showing the ROC of Eicher Motors Ltd 4.24

20 DAY ROC
20

10
AxiStock Prices Title

0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
-10
20 DAY ROC
-20

-30 months

Interpretation: ROC measures the rate of change between the current price & the price ‘n’
number of days in past. ROC helps to find out the overbought & oversold positions in scrip. In

90
the above chart, scrip’s ROC reaches the historic high value in the month of November, the
scrip is in overbought region & a fall in the value can be anticipated. In November, the investor
can sell the scrip. Similarly, scrip’s ROC reaches the historic low value in the month of
October, the scrip is in oversold region & a rise in the scrip’s price can be anticipated. In
October, the investor can buy the scrip.

RELATIVE STRENGTH INDEX:

Chart showing the Moving Average of Eicher Motors Ltd 4.25

14 day RSI
100
80
Stock price

60
40
20
0
2-Jul-18 2-Aug-18 2-Sep-18 2-Oct-18 2-Nov-18 2-Dec-18
Months

14 day RSI

Interpretation: When the RSI value is 30 and below that value, then it is the signal for buying.
It indicates the oversold point. Where in the selling pressure is overtaken by slowly developing
buying pressure, curtailing the further downward movement of the stock price. Buying points
from the RSI graph for Eicher Motors ltd are 28th September, 9th and 5th of Oct, 10th of Dec.
When it has crossed the 70, then sell signal is indicated. Following are the selling points from
the RSI graph for Eicher Motors are 24th of August and 20th of November.

91
CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSIONS:

FINDINGS:

TATA MOTORS LTD

Table Showing the Buy and Sell signal of Tata Motors 5.1

TECHNICAL INDICATOR BUY SIGNAL SELLING SIGNAL


Short Term Moving Average November and December August and September
Long Term Moving Average November and December September
Long Term and Short Term November and December September
Moving Average
Rate of Change Indicator October November
Relative Strength Index September and October November and
December

 The moving average of 10 days & 20 days, was flat from July to August. It was rising in
the month of September. It was falling from October to December.
 In RSI chart, the double bottom, double top formations were generated.
 November and December months were overbought region; the investor can sell the scrip.
 The September and October were oversold region, the investor can buy the scrip.
 In ROC chart, ROC reaches the historic high value in the month of November, the scrip is
in overbought region & a fall in the value can be anticipated. In November, the investor
can sell the scrip.
 Similarly, scrip’s ROC reaches the historic low value in the month of October, the scrip is
in oversold region & a rise in the scrip’s price can be anticipated. In October, the investor
can buy the scrip.

92
MARTI SUZUKI:

Table Showing the Buy and Sell signal of Marti Suzuki 5.2

TECHNICAL INDICATOR BUY SIGNAL SELLING SIGNAL


Short Term Moving Average October and December September and December
Long Term Moving Average October and November September and December
Long Term and Short Term July and November September and December
Moving Average
Rate of Change Indicator October November
Relative Strength Index September July and November,
December
 The moving average of 10 days & 20 days, was rising in the months of September and
December. It was falling in the month of November.
 In the RSI chart July, November and December months were overbought region; the
investor can sell the scrip.
 September month is oversold region, the investor can buy the scrip.
 In ROC chart, ROC reaches the historic high value in the month of December, the scrip is
in overbought region & a fall in the value can be anticipated. In this month, the investor
can sell the scrip.
 Similarly, scrip’s ROC reaches the historic low value in the month of October, the scrip is
in oversold region & a rise in the scrip’s price can be anticipated. In October, the investor
can buy the scrip.

TVS:
Table Showing the Buy and Sell signal of TVS 5.3

TECHNICAL BUY SIGNAL SELLING SIGNAL


INDICATOR
Short Term Moving Average August September and October
Long Term Moving Average August and November October and December
Long Term & Short Term August and October September
Moving Average
Rate of Change Indicator October December
Relative Strength Index July, August and October September

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 The moving average of 10 days & 20 days, was flat from mid of the October to end of the
November. It was rising in the month of September. It was falling from August to October.
 In the RSI chart February, March, September, October months were overbought region; the
investor can sell the scrip.
 April, June and September were oversold region, the investor can buy the scrip.
 In ROC chart, ROC reaches the historic high value in the month of December, the scrip is
in overbought region & a fall in the value can be anticipated. In this month, the investor
can sell the scrip.
 Similarly, scrip’s ROC reaches the historic low value in the month of October, the scrip is
in oversold region & a rise in the scrip’s price can be anticipated. In October, the investor
can buy the scrip.

MAHINDRA AND MAHINDRA:

Table Showing the Buy and Sell signal of Mahindra and Mahindra 5.4

TECHNICAL INDICATOR BUY SIGNAL SELLING SIGNAL


Short Term Moving Average August November and September
December
Long Term Moving Average October to December. September
Long Term and Short Term November September and
Moving Average December
Rate of Change Indicator October November
Relative Strength Index October August

 The moving average of 10 days & 20 days, was flat from July to September. It was rising
from September to December. It was falling in the month of November
 In the RSI chart August is overbought region; the investor can sell the scrip.
 October is oversold region, the investor can buy the scrip.
 In ROC chart, ROC reaches the historic high value in the month of April, the scrip is in
overbought region & a fall in the value can be anticipated. In this month, the investor can
sell the scrip.

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 Similarly, scrip’s ROC reaches the historic low value in the month of October, the scrip is
in oversold region & a rise in the scrip’s price can be anticipated. In October, the investor
can buy the scrip.

EICHER MOTORS LTD:

Table Showing the Buy and Sell signal of Eicher Motors Ltd 5.1

TECHNICAL INDICATOR BUY SIGNAL SELLING SIGNAL


Short Term Moving Average October and November September and December
Long Term Moving Average November September and December
Long Term and Short Term October and November and September and December
Moving Average
Rate of Change Indicator October November
Relative Strength Index September, October, and November
December

 The moving average of 10 days & 20 days, was flat from July to mid of the September. It
was falling from November to December.
 In the RSI chart November month is overbought region; the investor can sell the scrip.
 September and October, December were oversold region, the investor can buy the scrip.
 In ROC chart, ROC reaches the historic high value in the month of November, the scrip is
in overbought region & a fall in the value can be anticipated. In this month, the investor
can sell the scrip.
 Similarly, scrip’s ROC reaches the historic low value in the month of October, the scrip is
in oversold region & a rise in the scrip’s price can be anticipated. In October, the investor
can buy the scrip.

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SUGGESTIONS:

 Technical analysis is simple and more reliable then fundamental analysis because the
information required for technical analysis is free available as compared to fundamental
analysis
 Investor should have knowledge regarding the market terms so that they can take maximum
return from maximum investment
 In case a trader entering in a new industries first he has to select stock to buy in new
industries after making careful study prospects and charts of the stock
 Even though technical analysis is enough for making decision in stock market,
simultaneous usage of both fundamental and technical analysis will reduce errors in
forecasting future prices.
 Investor should undertake an analysis before investing into the stock market, as most of the
investor do not undertake any study before entering into a particular stock.
 Through the study on technical by using ROC it seen the stock price perdition power and
the investor are suggested to use the ROC for making profitable trades.
 The ROC will also indicates the bullish market thus the exciting investors can sell the
shares. The bearish indicates either to sell or hold the shares and prospective investors can
buy the shares as the price are low.
 Through the ROC it is seen the bearish engulfing it is the most accurate and investors are
suggested to follow the pattern.
 Investor should have a deep knowledge about the ROC and the other technical indicator
and also required to consider other factors affecting the market movements.

CONCLUSION:

The Global market is fast growing in investment business. Countries like US, whole of Europe
spread their investment in different investment alternatives with the help of advisory services
to recommend investor.

In Indian scenario the investments are spread over Bank Deposits, Savings Certificate, Post
Office, Equity Markets and the latest Mutual Fund. Since Mutual Funds are subject to market
risk the investor take help of advisory services for financial planning which helps the investor
to take calculated risk.

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The recent correction in the stock market has left many investors unsettled. It is quite
common to see many investors moving to side lines every time the market turns volatile or
corrects itself. I’m sure as the market starts rallying again, some of them will move back quickly
but would be willing to move out even more quickly at the next sign of downside volatility.

No doubt, watching the value of investments go down day after day can be pretty tough.
However, the pain becomes more bearable if one follows a proper investment plan and invests
for the long term. Having a well-diversified portfolio as well as a plan to rebalance it from time
to time also helps a great deal.

Technical analysis can offer great insight, but if used improperly, they can also produce false
signals. While trend lines have become a very popular aspect of technical analysis, they are
merely one tool for establishing, analyzing, and confirming a trend. Trend lines should not be
the final arbiter, but should serve merely as a warning that a change in trend may be very useful.

The price set by the market reflects the sum knowledge of all participants,
and we are not dealing with lightweights here. These participants have considered (discounted)
everything under the sun and settled on a price to buy or sell. These are the forces of supply
and demand at work. By examining price action to determine which force is prevailing,
technical analysis focuses directly on the bottom line: What is the price? Where has it been?
Where is it going?

Even though there are some universal principles and rules that can be applied, it must be
remembered that technical analysis is more an art form than a science. As an art form, it is
subject to interpretation. However, it is also flexible in its approach and each investor should
use only that which suits his or her style. Developing a style takes time, effort and dedication,
but the rewards can be significant.

BIBLIOGRAPHY:

Reference

 Lo, A.W., Mamaysky, H. and Wang, J., 2000. Foundations of technical analysis: Computational
algorithms, statistical inference, and empirical implementation. The journal of finance, 55(4),
pp.1705-1765.

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 Metghalchi, M., Glasure, Y., Garza-Gomez, X. and Chen, C., 2007. Profitable technical trading
rules for the Austrian stock market. INTERNATIONAL BUSINESS AND ECONOMICS
RESEARCH JOURNAL, 6(9), p.49.

 Chitra, R. "Technical analysis on selected stocks of energy sector." International Journal of


Management & Business Studies 1, no. 1 (2011): 42-46.
 Ţăran-Moroşan, Adrian. "The relative strength index revisited." African Journal of Business
Management 5, no. 14 (2011): 5855-5862.
 Pandya, Hemal. "Technical Analysis for Selected Companies of Indian IT Sector." International
Journal of Advanced Research 1, no. 4 (2013): 430-446.

 Agrawal, J. G., V. S. Chourasia, and A. K. Mittra. "State-of-the-art in stock prediction


techniques." International Journal of Advanced Research in Electrical, Electronics and
Instrumentation Engineering 2, no. 4 (2013): 1360-1366.

 Jayakumar, A., and K. Sumanthi. "TECHNICAL ANALYSIS OF SHARE PRICE MOVEMENT


WITH SPECIAL REFERENCE TO PUBLIC SECTOR BANK." International Research Journal
of Business and Management: 11-20.
 Naved, Mohd, and Prabhat Srivastava. "Profitability of Oscillators used in Technical Analysis
for Financial Market." International Journal of Advance Research 1, no. 6 (2015): 230-255.

Websites.

• www.nseindia.com

• www.investopedia.com

• www.StockCharts.com

• www.wikipedia.com

Magazines.

• Fortune India • Dalal Street

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