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A SYNOPSIS ON “TECHICAL ANALYSIS OF STOCK MARKET”
(Submitted in partial fulfilment of the requirement of Master of Business Administration, Distance Education, Guru Jambeshwar University of Science & Technology, Hisar)
Supervisor: Ms. Rainka Chaudhary Assistant Professor(Finance) JK Business School
Submitted By: Ashutosh Kumar Dubey Enrolment No. – 09061144009 Specialization- Finance
Remarks of Evaluators
Approved/Disapproved (I Evaluation)
Approved/Disapproved (II Evaluation)
Session: - 2009-2011 Directorate of Distance Education GJUS&T, Hisar
DIRECTORATE OF DISTANCE EDUCATION
GURU JAMBHESHWAR UNIVERSITY OF SC. & TECH., HISAR FORMAT FOR RESUME OF SUPERVISOR/GUIDE
1. 2. 3.
NAME DESIGNATION QUALIFICATION
: Rainka Chaudhary : Assistant Professor : MCOM, MBA, MPHIL(MKTG.) SLET(UGC)
AREA OF SPECIALIZATION EXPERIENCE
: Finance & Marketing : 14 Years : JK Business School, Gurgaon : 0124- 2266520 : 09958581384 : email@example.com
6. OFFICIAL ADDRESS
7. 8. 9.
TELEPHONE NO. MOBILE E-MAIL
I am willing to supervise Mr. Ashutosh Kumar Dubey Enrolment No. 09061144009 On the topic “Technical Analysis of Stock Market”
(Signature) with seal
Countersigned by the Employer with seal
Countersigned by Director of study centre with seal
This is to certify that Mr. Ashutosh Kumar Dubey Enrolment No. 09061144009 has proceeded under my supervision on his report “Technical Analysis of Stock Market” in Finance.
The work embodied in this report is original & is of the standard expected of an MBA student & has not been submitted in part or full to this or any other university for the award of any degree or diploma. He has completed all requirement or guidelines for research Project Report & the work is fit for evaluation
Signature of Supervisor/Guide (with seal)
NAME DESIGNATION ORGANISATION
: Rainka Chaudhary : Assistant Professor (Finance) : JK Business School
Forwarded by Head/Director of Study Centre (with seal)
TECHNICAL ANALYSIS OF STOCK MARKET “Technical analysis refers to the study of market generated data like prices & volume to determine the future direction of prices movements.” Technical analysis mainly seeks to predict the short term price travels. It is important criteria for selecting the company to invest. It also provides the base for decision-making in investment. The one of the most frequently used yardstick to check & analyze underlying price progress. For that matter a verity of tools was consider. This Technical analysis is helpful to general investor in many ways. It provides important & vital information regarding the current price position of the company. Technical analysis involves the use of various methods for charting, calculating & interpreting graph & chart to assess the performances & status of the price. It is the tool of financial analysis, which not only studies but also reflecting the numerical & graphical relationship between the important financial factors. The focus of technical analysis is mainly on the internal market data, i.e. prices & volume data. It appeals mainly to short term traders. It is the oldest approach to equity investment dating back to the late 19th century.
REVIEW OF LITERATURE
Brown and Jennings 1989 showed that technical analysis has value in a model in which prices are not fully revealing and traders have rational conjectures about the relation between prices and signals. Taylor and Allen 1992 report the results of a survey among chief foreign exchange dealers based in London in November 1988 and found that at least 90% of responds placed some weight on technical analysis, and that there was a
skew towards using technical rather than fundamental analysis at shorter time horizons. Neely 1998 reconciles the fact that using technical trading rules to trade against US intervention in foreign exchange markets can be profitable, yet long term the intervention tends to be profitable. Lee and Swaminathan 2000 demonstrate the importance of past trading volume. Neely and Weller 2001 use genetic programming to show the technical trading rules can be profitable during foreign exchange intervention. Cesari and Cremonini 2003 make an extensive simulation comparison of popular dynamic strategies of assets allocation and find the technical analysis only performs well in Pacific markets. Kavajecz and Odders-White 2004 show that support and resistance levels coincide with peaks in depth on limit order book and moving average forecast reveals information about the relative position of depth on the book. They also shows that these relationships stem from technical rules locating depth already in place on the limit order book.
Technical analysis and its emphasis on trading volume has been used to analyze movements in individual stock prices and make investment recommendations to either buy or sell that stock. Little attention has been paid to investigating the relationship between trading volume and various stock indices. By this project I try to answer the main two questions that have driven us to pick this project. We know that there is more than one way to make many in stocks and in the market in general. However, what I focus on in this project is how to make money by finding, buying, and holding stocks of good, solid companies and how to obtain the most return for the risk taken. Therefore, or main problems are:1.
How does the investor make money through capital appreciation of stocks of companies on major stock exchanges?
2. Hoe does the investor obtain the most return for the risk that he or she undertakes while investing?
OBJECTIVES OF THE STUDY
The objective of the study are
Technical analysis refers to the study of market generated data like prices & volume to determine the future direction of prices movements. Technical analysis provides information on the best entry and exit point for a trade.
On a chart, the trader can see where momentum is rising.
(A) Sources of Data: Secondary data: Data is collected from the BSE & NSE index.
Research Design: Exploratory study is applied because the Secondary data are used in my study.
Tools of Analysis: The tools which are used for analyzing the data are as follow:
• The use MS Excel for plotting a graph and analyzing the data.
The secondary data source is used like Historical data, magazines, Internet, etc.
SCOPE OF THE STUDY
Technical analysis includes the study of chart patterns, candlesticks, moving averages, and other indicators. It is easy to apply in any market, in which the raw data (prices and volume) is available. With the help of technical analysis, it is easy to understand the sentiments (psychology) of the market and to forecast the prices, without looking at the fundamental factors of a particular currency. Technical analysis is widely used by forex, equity, and commodity traders, to determine the short term as well as the long term trends of the market. The scope of technical analysis is increasing every day, as more and more people are trying to learn the skills of technical analysis to earn good returns. In technical analysis, there is an ample amount of opportunity for those who know how to read charts and how to take actions (buy/sell) by looking at the charts. Trend analysis, right time to enter and exit, and early trade signals are the biggest advantages of technical analysis, which should motivate all Forex players to learn about it and begin using this effective tool.
Prasanna Chandra(3rd Edition),Security Analysis and Portfolio Management, CFM-McGraw-Hill Professional Series in Finance. V.A. Avadhani(9th Revised Edition), Securities Analysis and Portfolio Management, Himalaya publishing House. V.K. Bhalla(13th Edition), Investment Management, S. Chand William G. Zikmund(7th Indian Edition), Business Research Methods, South-Western CENGAGE Learning.
Websites: www.bseindia.com www.nseindia.com www.moneycontrol.com www.technicalanalysis.org
This is to certify that the project report entitled “Technical Analysis of Stock Market” is an original work and has not been submitted is part or full to this or any other University/Institution the award of any degree or diploma.
Signature of candidate NAME: Ashutosh Kumar Dubey ENROLMENT NO. - 09061144009 SPECILIZATION: Finance SESSION: 2009-2011
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