Summer internship

DOMAIN: FINANCE

By:-
Manish
Meharia Kumar Bishnu
ROLL NO: 41
 COMPANY: RELIANCE MONEY

TOPIC :-
“ A STUDY ON FORECASTING OF STOCK PRICE
MOVEMENTS THROUGH TECHNICAL ANALYSIS ”
RELIANCE MONEY
Commenced commercial operations
in April 2007 and has over 2.7 million
customers and 10052 outlets in more
than 5000 locations across India
Ranked among the 25 most valuable

private companies in India

Ranks among the top 3 private

sector financial services and banking

Reliance Money
Basic Concepts Underlying
Chart Analysis
Objectives of the study :
ü To understand the concept of portfolio
management
ü
ü To understand the concept of technical analysis
along with its technical indicators & graphical
methods
ü
ü To understand the practical application of tools
of technical analysis.

üTo suggest how technical analysis can be
effectively used by the investors in
forecasting stock prices.
ü
üTo provide better information for the
investors while taking short term
investment decisions.
ü
THE DOW THEORY
Research Methodology
üFUNDAMENTAL ANALYSIS

üTECHNICAL ANALYSIS-:

Charting-: Studying stock price



trends using stock price charts (also

called technical analysis).

Research design of the study :

ü Sources of data: The data used for this study

is from two ends.
ü
ü Primary data:first hand information collected
during the interview with the traders in the
Reliance Capital.
ü
ü Secondary data: text books, articles, journals,
websites, magazines, etc.
ü
Technical Tools used in the
study :
 Moving Average Analysis:


 It is calculated by taking into account

the most recent ‘n’ observations. To
identify the trends moving averages
has been used



  Relative Strength Analysis:


It is based on the assumption that the

prices of some securities rise rapidly
during bull phase but fall slowly during the
bear phase in relation to the market as a
whole. Such securities possess greater
relative strength & hence outperform the
market.
STATE BANK OF INDIA
Moving average


C
D
MOAV E F
B G
A
1600
1400
MOAV

1200
1000 13DMOAV
800
600 31DMOAV
400
200
0

12/09
03/09

05/09

10/09

11/09
04/09

06/09

07/09

09/09
08/09

TIME
 RELATIVE STRENGTH INDEX:


RSI CHART
S S

90
80
70
60
50
RSI

40 RSI
30
20
10
B 0

08/09
07/09
01/09

04/09

09/09
03/09

05/09

06/09

12/09
02/09

10/09

11/09
TIME
CANARA BANK
Moving average:


MOAV
B
B S
350
300
MOAV

250
200 13DMOAV
150 31DMOAV
100
50
0 05/09

07/09

08/09

12/09
02/09

06/09

09/09
04/09

10/09
03/09

11/09
TIME
RELATIVE STRENGTH INDEX:

RSI CHARTS

90.0000
80.0000
70.0000
60.0000
50.0000
RSI

40.0000 RSI
30.0000
20.0000
10.0000
0.0000

11/09
05/09

08/09
03/09

04/09

10/09

12/09
01/09

02/09

06/09

07/09

09/09
TIME
B B
S
Syndicate bank
 MOAV

0
20
40
60
80
100
02/09

03/09
e
S

04/09

05/09
e
B
=

06/09

07/09
TIME
08/09
MOAV
MOVING AVERAGE:

09/09

10/09

11/09
e
S

12/09
31DMOAV
13DMOAV
RELATIVE STRENGTH INDEX:
RSI CHART S
S
90.0000
80.0000
70.0000
60.0000
50.0000
RSI

40.0000 RSI
30.0000
20.0000
10.0000
0.0000
03/09

06/09

12/09
01/09

02/09

04/09

05/09

07/09

08/09

09/09

10/09

11/09
TIME
B
B
Corporation bank
MOVING AVERAGE
B
:
S
MOAV
S B
450
400
350
MOAV

300
250 13DMOAV
200 31DMOAV
150
100
50
0

07/09

10/09

12/09
09/09
08/09
06/09

11/09
03/09
02/09

04/09

05/09

TIME
RELATIVE STRENGTH INDEX:
RSI CHART
S S
S
100.0000
80.0000
60.0000
RSI

RSI
40.0000
20.0000
0.0000
01/09

02/09

03/09

04/09

10/09

12/09
05/09

07/09

08/09

09/09
06/09

11/09
B B B
TIME B
INFOSYS TECHNOLOGIES
MOVING AVERAGE:
S
B MOAV
S S
B
3500
3000
MOAV

2500
2000 13DMOAV
1500 31DMOAV
1000
500
0

09/09
08/09

10/09

12/09
06/09

07/09

11/09
04/09

05/09
02/09

03/09

TIME
RELATIVE STRENGTH INDEX:
RSI CHART

100.0000
80.0000
60.0000
RSI

RSI
40.0000
20.0000
0.0000
01/09

12/09
04/09

07/09

11/09
02/09

03/09

05/09

06/09

08/09

09/09

10/09
TIME

S
S
Wipro technologies
MOVING AVERAGE:
MOAV

800
700
600
MOAV

500 13DMOAV
400
300 31DMOAV
200
100
0
06/09

09/09
04/09

08/09

10/09

12/09
07/09
05/09
03/09

B11/09
S

TIME
RELATIVE STRENGTH INDEX:
RSI CHART

90.0000
80.0000
70.0000
60.0000
RSI

50.0000 RSI
40.0000
30.0000
20.0000
10.0000
0.0000

05/09

07/09

08/09

09/09

10/09

10/09
02/09

03/09

04/09

06/09
01/09

12/09
11/09
S
TIME
 Thank you