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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research


problem. It may be understood as a science of studying how research is done
scientifically. The various steps that are generally adopted by a researcher in
studying research problem along with the logic behind them. It is necessary for the
researcher to know not only the research methods techniques but also the
methodology. Researcher can be defined as the search for knowledge, or as any
systematic investigation, with an open mind to establish novel facts, solve new
ideas, or develop new theories, usually using a scientific method.

RESEARCH DESIGN:
Research design was based on analytical research, on the other hand,
the researcher has to use facts or information already available, and analyze these
to make a critical evaluation of the material.

DATA COLLECTION:
Nature of data:- the study is based on the secondary data.
Secondary data:- The secondary data are those which have already collected and
stored. Secondary data collected from newspaper, magazine, journals,website,
refernce books,etc.
PERIODS OF THE STUDY
The periods of the study was 90 days.The data were collected for five years from jan
2012 feb 2016.

TOOLS FOR TECHNICAL ANALYSIS


SIMPLE MOVING AVERAGE:- The market indices do not rise or fall in straight line.The
upward and downward are interrupted by counter moves. The underlying trend can
be studied by smoothening of the data. To smooth the data moving average
technique is used.
RELATIVE STRENGTH INDEX:-
RSI is an oscillator used to inherent technical strength
weakness of a particular scrip or market. RSI can be calculated for scrip by
adopting the following formula
RSI= 100-100/1+ RS
RS=Average gain per month/ Average loss per month
The RSI can be calculated for any number days depending on the wish of technical
analysist and the time frame of trading adopted in the particular stOck market

SECTOR SELECTED FOR ANALYSIS

Information technology
Automobile industries

Companies are
TCS
Infosys
Wipro
TATAMotors
Tech Mahindra
EICHER MOTORS

LIMITATONS OF THE STUDY

Financial data is dynamic in nature hence analysis, recommendations are


confined to the time period of study
The study does not concentrate on other investment alternatives of the
concern
The study is confined only to a particular unit and in depth analysis of data is
not possible due to time ocnstriant