INTRODUCTION

A share of a company held by an individual or group. Corporations raise capital by

issuing stocks and entitle the stock owners (share holders) to partial ownership of the
corporation. Stocks are bought and sold on what is called an exchange. There are several types of
stocks and the two most typical forms are preferred stock and common stock.
Japanese candlesticks are a way of presenting the price action over a set period of time.
They provide useful information, such as the market sentiment or possible reversals in the
markets, by showing the price movement in a specific way.
The line chart is a very simple way of showing the price movement. It displays the
information with a simple line using a series of data points. It is the type of chart that you may be
used to seeing in magazines and newspapers that shows the price movement of stocks and shares.
The Japanese candlestick chart shows the same price movement, however it is made up of
individual candlesticks. Traders prefer to read candlestick charts because they include more
information than a line chart and can be more useful for making trading decisions. If a Japanese
candlestick chart is set to a 30 minute time period, then each individual candle will form over
thirty minutes. Likewise, if the chart is set to a 15 minute time period, then each candle will take
fifteen minutes to form.

Each candle shows the open, close, high and low price

Take a look at the following image:

The wide part of the candlestick is called the body. It represents the open and close of the
period. This means that if the chart is a 1 hour chart, then each candlestick body will show the
opening price for that 1 hour period and the closing price for that 1 hour period. The wicks at the
top and the bottom of the candlestick show the highest and lowest price reached during that 1
hour period. A chart that displays the open, high, low and close price for a given period is
referred to as an OHLC chart.

The different colors of the body tell you if the candlestick is bullish (rising) or bearish (falling).
If the candlestick is bullish, then the opening price is always at the bottom and the closing price
is always at the top. If the candlestick is bearish, then the opening price is always at the top and
the closing price is always at the bottom.

Here, the changes in share prices of five companies, such as Tata Consutancy se for five days are
shown with the help of Japanese Candlestick Chart.

1. Tata Consultancy Services (TCS)

TCS is an Indian multinational Information Technology (IT) service
and consulting company headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the
Indian multinational conglomerate Tata Group, TCS is a multinational IT services company
providing business and consulting solutions to its clients. The company was established in 1968.
It is not only a top Indian firm but also Asia's largest IT services firm. TCS has its foothold in
around 46 countries across the globe. TCS provides assurance services, BI and performance
management services, business process services, consulting services, digital enterprise services,
eco-sustainability services to name a few. In January 2015, TCS overtook Reliance Industries
Ltd. as the top firm in India. TCS’ market capitalization amounted to 2090 core USD in 2019.
TCS became the first Indian IT company to reach $100million market capitalization and second
Indian company ever(after Reliance Industries achieved in 2007) after its market capitalization
stood at Rs.6,79,332.81crore ($102.6 billion) on the Bombay Stock Exchange.

The changes in share prices of Tata Consultancy Services for last five days are shown below,

OPENING
DATE PRICE HIGH PRICE LOW PRICE CLOSING PRICE
16/09/19 2159.35 2159.35 2130.05 2015
17/09/19 2137.25 2137.25 2113 2126.4
18/09/19 2123.3 2141.15 2128.3 2141.15
19/09/19 2114.1 2114.1 2096 2096.9
20/09/19 2090 2116.5 2069 2069
 2200

2150

2100
OPENING PRICE

2050 HIGH PRICE

LOW PRICE
2000 CLOSING PRICE

1950

1900
16/09/19 17/09/19 18/09/19 19/09/19 20/09/19

INTERPRETATION

 White candles represents that the closing price is high, i.e., on 18/09/2019 closing
price is higher than other 4 days.
 Black candles shows that the opening price is high.
 The candle is black because it shows the bearish trend. This means that over the
course of five days the price of the shares decreased. The prices was higher at the
opening of the day than when it is closed.
 Throughout the course of the five days the highest price that the buyers pushed the
share price was 2159.35(16/09/2019).
 Throughout the course of the five days the lowest price the sellers pushed the share
price was 2069(20/09/2019).
 The graph of changes in share price shows a decreasing trend.

2. Reliance Industries Limited (RIL)

Reliance Industries Ltd. is an Indian multinational conglomerate operating
in various sectors in and outside India, founded in 1966. RIL is based in Mumbai,
Maharashtra. RIL deals in miscellaneous industries such as construction, energy,
petrochemicals, communication, science and technology, healthcare, textiles, retails,
natural resources and logistics. The principal shareholders, the Ambani family, hold close
to 45.34 percent shares in the company, while the rest of the shares are held by
approximately three million shareholders. In September 2019, the market capitalization
of RIL amounted to Rs. 6.23 lakh crore.
 The huge network has made Reliance Industries the numero
uno in Indian private sector. In addition, Reliance Industries launched 4G mobile
telephony and internet service in 2016 in the name of Reliance Jio which has taken the
telecom sector by storm and for which Reliance Industries share price has shown a major
re-rating. High-end technology using VOLTE technology (first in India) provided
cheapest ever telephone service to common Indian. Such is the popularity of these
services RIL’s customer base saw the fastest growth in Indian telephone history. Earnings
from this sector have started reflecting in the balance sheet and Reliance share price
and are expected to supersede others very soon.

DATE OPENING PRICE HIGH PRICE LOW PRICE CLOSING PRICE

16/09/19 1201.5 1214 1201.5 1210.6
17/09/19 1209.2 1209.2 1196.9 1196.95
18/09/19 1209 1209.9 1200.6 1209
19/09/19 1203.4 1206.4 1178.3 1179
20/09/19 1179 1258 1175.8 1254.35

1280

1260
OPENING
1240 PRICE
HIGH PRICE
1220

1200 LOW PRICE

1180
CLOSING
PRICE
1160

1140

1120
16/09/19 17/09/19 18/09/19 19/09/19 20/09/19

INTERPRETATION

 White candles represents that the closing price is high, i.e., on 16/09/2019 and20/09/2019
closing price is higher than other 3 days.
 Black candles shows that the opening price is high.
  On 20/09/2019 the difference between opening price and closing price is comparatively
higher than other four days.
 On 18/009/2019 opening price and closing price are same, so the graph shows neutral.

3. State Bank of India

State Bank of India is a financial services and public sector banking company. Owned by the
government, SBI originated in India. SBI was founded in 1921 and is headquartered in Mumbai, Maharashtra.
SBI is India's largest banking and financial services company in terms of assets. SBI has spread its operations
in over 40 countries with close to 200 offices. The market capitalization of SBI amounted to Rs. 2,10,037.93
crore in May 2014.

OPENING
DATE PRICE HIGH PRICE LOW PRICE CLOSING PRICE
16/09/19 290 290 284.3 284.3
17/09/19 286.25 286.25 274 274
18/09/19 278.1 281.3 275.75 280.4
19/09/19 276.55 278.35 274.5 274.5
20/09/19 271.9 302.85 269.6 301.75

310

300

290
OPENING PRICE

280 HIGH PRICE

LOW PRICE
270 CLOSING PRICE

260

250
16/09/19 17/09/19 18/09/19 19/09/19 20/09/19

INTERPRETATION

 The opening price is high on 20/09/2019, so the graph shows a bullish trend and candle is
shown as white.
 The variance between opening and closing price is very high.
  On 19/09/2019, variance opening price and closing price are comparatively low.


4. Infosys

Based in Bengaluru, Karnataka and established in 1981, Infosys is an Indian multinational IT company
having its prime business in software engineering, information technology, business consulting and
outsourcing. After TCS, Infosys is the second largest IT company in India in terms of market value. Infosys
benefits its clients in over 50 countries. In May 2015, the market capitalization of Infosys was valued at Rs.
2,31,600.93 crore.

OPENING
DATE PRICE HIGH PRICE LOW PRICE CLOSING PRICE
16/09/19 830.5 830.5 821.75 827.6
17/09/19 824.95 832.35 821.7 832.35
18/09/19 827.8 830 827.15 831.45
19/09/19 823.1 824 818.6 820.3
20/09/19 822.2 830.4 807.3 807.3

835

830

825

820
OPENING PRICE
815
HIGH PRICE
810 LOW PRICE
805 CLOSING PRICE

800

795

790
16/09/19 17/09/19 18/09/19 19/09/19 20/09/19

INTERPRETATION

 From 16/09/2019 to 20/09/2019 there are no higher changes in the share price.
  Black candle shows a bearish trend where opening price is high (20/09/2019).


5. ITC
An Indian multinational conglomerate, ITC was established in August 1910 (as Imperial Tobacco
Company of India Limited) and is headquartered in Kolkata, West Bengal. It operates over five diversified
segments – Information Technology, Fast Moving Consumer Goods (FMCG), Agriculture, Hotels and
Paperboards and Packaging. The name of the company was changed in 1970 and it came to be known as India
Tobacco Company Ltd. The company's flagship segment is the FMCG segment consisting of personal care
products, food processing items, branded apparel and so on. The market capitalization of ITC reached Rs.
2,57,658.88 crore in May 2015.

OPENING
DATE PRICE HIGH PRICE LOW PRICE CLOSING PRICE
16/09/19 238.65 239.95 238.65 239.2
17/09/19 240 240 237.05 237.05
18/09/19 237.2 240.75 234.4 238.9
19/09/19 238 238.05 236.4 236.4
20/09/19 236.25 245.7 235.1 237.3

248
246
244
242
240 OPENING PRICE

238 HIGH PRICE

236 LOW PRICE

CLOSING PRICE
234
232
230
228
16/09/19 17/09/19 18/09/19 19/09/19 20/09/19

INTERPRETATION

 There is only slight change in the share prices in these five days.
 The variance between opening price and closing price are comparatively low.
 On 16/09/2019 the closing price is a smaller amount higher than the opening price, it
shows a bullish trend.
 On the next day opening price was low and closing price became high. The candle shown
as black color and it represent a bearish trend.