AMITY UNIVERSITY

-----UTTAR PRADESH-----





Amity Business School
SUMMER INTERNSHIP - Synopsis

Student Name RUCHITA SINGH
Enrollment No A0101911176
Programme MBA
Company's Name
and Address
G-36 , FF Marina Arcade , Connaught Circus,
New Delhi-110 001

Industry Guide
Name Mr.Krishna Dev Dubey
Designation Branch Manager


Contact Number

Ph.(O) : .: 011-4987 1084/384 (R) :
Mobile : 9650698754
Fax : 011-23354944
E-mail : krishna.dubey@religare.com | www.religare.com




2) Topic



Study of currency trading models and consumer behavior towards trading market.



3) Project Objectives


To study the various methods to forecast the future trends of four major
currency pairs traded in India.
To study and compare the magnitude of recent gains to recent losses in
currency market, to determine the overbought and oversold conditions of a
currency pair using RSI model.
To study the consumer behavior towards investment in trading market.



4) Methodology to be adopted


Object 1:
To study the various methods to forecast the future trends of four major currency pairs
traded in India:

Methods:
Fundamental Analysis.

Interest rate parity principle
Future Rate = (spot rate) {1 + interest rate on home currency * period}
{1 + interest rate on foreign currency * period}



Pricing futures cost of carry model
The cost of carry model used for pricing futures is:

Future Price=Se^(r-rf)T

where:
r=Cost of financing (using continuously compounded interest rate)
rf= one year interest rate in foreign
T=Time till expiration in year
E=2.71828


Object:2
To study and compare the magnitude of recent gains to recent losses in currency
market, to determine the overbought and oversold conditions of a currency pair using
RSI model.


Methods:
Technical analysis
Relative Strength Model


100
RSI = 100 - --------
1 + RS
RS = Average Gain / Average Loss



Object:3
To study the consumer behavior towards investment in Trading market.
Methods:
SPSS
software
In home interview
Snowball sampling
Judgmental sampling
Telephone Interview
Mail Survey








5) Brief Summary of project


Traders in currency market often consider the information in currency
forecasting while making assessments about future rates. The purpose of this study is
to systematically assess the future values of various currency pairs (whose trading in
done in India). Dataset consists of over 3 years of bi-annual data on avg. Interests of
that period. All the data were collected from Indias exchange rate database. The
forecasting has been done in two segments i.e., Fundamental and technical analysis.

Fundamental Analysis is based on the study of the factors which affects the
supply and demand of a particular market. It is different than technical analysis since
it focuses, not on Interest but on factors like weather, government policies, domestic
and foreign political and economic events & changing trade prospects. Fundamental
Analysis is an approach to analyze market behaviour that stresses the study of supply
and demand. It is done in the belief that such an analysis will enable one to profit by
being able to anticipate Interest trends. Technical Analysis operates on the theory that
market Interests at any given point in time reflect all known factors affecting supply
and demand for a particular market. The analysis and interpretations are done to check
out the behaviour of various internationally traded currencies with respect to Indian
currency.

The study also tries to find out the awareness of consumers towards the trading
market. Also it tries to find out what investment options are the hot favourites of
majority of investors in share market. The study focuses on various shortcomings the
company is facing in terms of its customers. Recommendations have also been made
in regard of these problems.




Company profile:
Vision
"To be the leading emerging markets financial services group driven by innovation, delivering
superior value for all stakeholders globally"


In India, Religare continues to rank among the foremost financial services franchises we have
come a long way from being a standalone retail equity broking business less than a decade ago to
an integrated financial services platform today.