CHAPTER 1

INTRODUCTION

1.1 STOCK EXCHANGE IN INDIA

Most of the trading in the Indian stock market takes place on its two stock exchanges:
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been
in existence since 1875. The NSE, on the other hand, was founded in 1992 and started trading in
1994. However, both exchanges follow the same trading mechanism, trading hours, and
settlement process. As of November 2021, the BSE had 5,565 listed firms, whereas the rival
NSE had 1,920 as of Mar. 31, 2021. Almost all the significant firms of India are listed on both
the exchanges. The BSE is the older stock market but the NSE is the largest stock market, in
terms of volume. Both exchanges compete for the order flow that leads to reduced costs, market
efficiency, and innovation. The presence of arbitrageurs keeps the prices on the two stock
exchanges within a very tight range.

Trading Mechanism:

Trading at both the exchanges takes place through an open electronic limit order
book in which order matching is done by the trading computer. There are no market makers and
the entire process is order-driven, which means that market orders placed by investors are
automatically matched with the best limit orders. As a result, buyers and sellers remain
anonymous.

The advantage of an order-driven market is that it brings more transparency by

displaying all buy and sell orders in the trading system. However, in the absence of market
makers, there is no guarantee that orders will be executed.

All orders in the trading system need to be placed through brokers, many of
which provide an online trading facility to retail customers. Institutional investors can also take

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advantage of the direct market access (DMA) option in which they use trading terminals
provided by brokers for placing orders directly into the stock market trading system.

Settlement and Trading hours:

Equity spot markets follow a T+2 rolling settlement. This means that any trade
taking place on Monday gets settled by Wednesday. All trading on stock exchanges takes place
between 9:55 a.m. and 3:30 p.m., Indian Standard Time (+ 5.5 hours GMT), Monday through
Friday. Delivery of shares must be made in dematerialized form, and each exchange has its
own clearing house, which assumes all settlement risk by serving as a central counterparty.

Market Indexes:

The two prominent Indian market indexes are Sensex and Nifty. Sensex is the
oldest market index for equities; it includes shares of 30 firms listed on the BSE.

It was created in 1986 and provides time series data from April 1979, onward.
Another index is the Standard and Poor's CNX Nifty; it includes 50 shares listed on the NSE. It
was created in 1996 and provides time series data from July 1990, onward.

Market Regulations:

The overall responsibility of development, regulation, and supervision of the stock

market rests with the Securities and Exchange Board of India (SEBI), which was formed in
1992 as an independent authority. Since then, SEBI has consistently tried to lay down market
rules in line with the best market practices. It enjoys vast powers of imposing penalties on
market participants, in case of a breach.

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Who can invest in stock exchange:

India started permitting outside investments only in the 1990s. Foreign investments
are classified into two categories: foreign direct investment (FDI) and foreign portfolio
investment (FPI). All investments in which an investor takes part in the day-to-day management
and operations of the company are treated as FDI, whereas investments in shares without any
control over management and operations are treated as FPI.

For making portfolio investments in India, one should be registered either as a foreign
institutional investor (FII) or as one of the sub-accounts of one of the registered FIIs. Both
registrations are granted by the market regulator, SEBI.

Foreign institutional investors mainly consist of mutual funds, pension funds,

endowments, sovereign wealth funds, insurance companies, banks, and asset management
companies. At present, India does not allow foreign individuals to invest directly in its stock
market. However, high-net-worth individuals (those with a net worth of at least $50 million)
can be registered as sub-accounts of an FII.

Foreign institutional investors and their sub-accounts can invest directly into any of the stocks
listed on any of the stock exchanges. Most portfolio investments consist of investment in
securities in the primary and secondary markets, including shares, debentures, and warrants of
companies listed or to be listed on a recognized stock exchange in India.

FIIs can also invest in unlisted securities outside stock exchanges, subject to the approval of the
price by the Reserve Bank of India. Finally, they can invest in units of mutual funds and
derivatives traded on any stock exchange.

An FII registered as a debt-only FII can invest 100% of its investment into debt instruments.
Other FIIs must invest a minimum of 70% of their investments in equity. The balance of 30%
can be invested in debt. FIIs must use special non-resident rupee bank accounts in order to
move money in and out of India. The balances held in such an account can be fully repatriated.

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Restrictions and Investment ceilings:

The government of India prescribes the FDI limit, and different ceilings have been
prescribed for different sectors. Over a period of time, the government has been progressively
increasing the ceilings. FDI ceilings mostly fall in the range of 26% to 100%.

By default, the maximum limit for portfolio investment in a particular listed firm is decided by
the FDI limit prescribed for the sector to which the firm belongs. However, there are two
additional restrictions on portfolio investment. First, the aggregate limit of investment by all
FIIs, inclusive of their sub-accounts in any particular firm, has been fixed at 24% of the paid-up
capital. However, the same can be raised up to the sector cap, with the approval of the
company's boards and shareholders.

Secondly, investment by any single FII in any particular firm should not exceed 10% of the
paid-up capital of the company. Regulations permit a separate 10% ceiling on investment for
each of the sub-accounts of an FII, in any particular firm. However, in the case of foreign
corporations or individuals investing as a sub-account, the same ceiling is only 5%. Regulations
also impose limits for investment in equity-based derivatives trading on stock exchanges.

Investment of foreign entities:

Foreign entities and individuals can gain exposure to Indian stocks through
institutional investors. Many India-focused mutual funds are becoming popular among retail
investors. Investments could also be made through some of the offshore instruments,
like participatory notes (PNs), depositary receipts, such as American depositary
receipts (ADRs) and global depositary receipts (GDRs), exchange traded funds (ETFs), and
exchange traded notes (ETNs).

As per Indian regulations, participatory notes representing underlying Indian stocks can be
issued offshore by FIIs, only to regulated entities. However, even small investors can invest in
American depositary receipts representing the underlying stocks of some of the well-known
Indian firms, listed on the New York Stock Exchange and Nasdaq. ADRs are denominated in
dollars and subject to the regulations of the U.S. Securities and Exchange Commission (SEC).

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Likewise, global depositary receipts are listed on European stock exchanges. However, many
promising Indian firms are not yet using ADRs or GDRs to access offshore investors.

Retail investors also have the option of investing in ETFs and ETNs, based on Indian stocks.
India-focused ETFs mostly make investments in indexes made up of Indian stocks. Most of the
stocks included in the index are the ones already listed on the NYSE and Nasdaq.

As of 2020, two of the most prominent ETFs based on Indian stocks are the iShares MSCI India
ETF (INDA) and the Wisdom-Tree India Earnings Fund (EPI). The most prominent ETN is the
iPath MSCI India Index Exchange Traded Note (INPTF). Both ETFs and ETNs provide a good
investment opportunity for outside investors.

Technology:

NSE's trading systems are a state-of-the-art application. It has an uptime record of 99.99%
and processes more than a billion messages every day with a sub-millisecond response time.[22]

NSE has taken huge strides in technology in 20 years. In 1994, when trading started, NSE
technology was handling 2 orders a second. This increased to 60 orders a second in 2001. Today
NSE can handle 1,60,000 orders/messages per second, with infinite ability to scale up at short
notice on demand, NSE has continuously worked towards ensuring that the settlement cycle
comes down. Settlements have always been handled smoothly. The settlement cycle has been
reduced from T+3 to T+2/T+1.

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1.2 EQUITY SHARE

Equity, typically referred to as shareholders' equity, represents the amount of

money that would be returned to a company's shareholders if all of the assets were liquidated
and all of the company's debt was paid off in the case of liquidation. In the case of acquisition,
it is the value of company sales minus any liabilities owed by the company not transferred with
the sale.

In addition, shareholder equity can represent the book value of a company. Equity can
sometimes be offered as payment-in-kind. It also represents the pro-rata ownership of a
company's shares.

Equity can be found on a company's balance sheet and is one of the most common pieces of
data employed by analysts to assess a company's financial health.

History of equity shares:

The history of equity shares goes back to the 1400s in a small town in Belgium. A group
of merchants assembled in the middle of the town from all around the world. They started buying
non-perishable goods in anticipation that the prices might rise in the near future. This initially
introduced the practice of trading.

Later in 1611, the Dutch East Indian company shipped precious goods such as Gold, Porcelain,
Spices and Silks across the globe. As the shipping costs were expensive, the companies
approached citizens to invest money on the trip. In return, they offered a share of the profits that
the trip would make.

This practice introduced the first stock exchange in the world called ‗The Amsterdam Stock
Exchange‘. For many years, the shares of the Dutch East India company were actively traded on
this exchange.

At this point, other countries began creating similar stock exchanges and investors used to buy
and sell shares of companies.

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In the 1800s, this practice started in India where 5 stockbrokers met under a banyan tree. Here,
they exchanged shares of different companies. Two decades later, as the number of brokers
increased, a small group called ‗The Native Share & Stock Brokers Association‘ was formed.
Today, this small group is known as the Bombay Stock Exchange (BSE). BSE is the oldest stock
exchange in India and Asia where more than 4,000 equity shares of companies are listed and
traded on a daily basis.

Shareholders Equity works:

By comparing concrete numbers reflecting everything the company owns and

everything it owes, the "assets-minus-liabilities" shareholder equity equation paints a clear
picture of a company's finances, easily interpreted by investors and analysts. Equity is used as
capital raised by a company, which is then used to purchase assets, invest in projects, and fund
operations. A firm typically can raise capital by issuing debt ( loan or via bonds) or equity (by
selling stock). Investors usually seek out equity investments as it provides greater opportunity to
share in the profits and growth of a firm.

Equity is important because it represents the value of an investor's stake in a company,

represented by the proportion of its shares. Owning stock in a company gives shareholders the
potential for capital gains and dividends. Owning equity will also give shareholders the right to
vote on corporate actions and elections for the board of directors. These equity ownership
benefits promote shareholders' ongoing interest in the company.

Shareholder equity can be either negative or positive. If positive, the company has enough
assets to cover its liabilities. If negative, the company's liabilities exceed its assets; if prolonged,
this is considered balance sheet insolvency. Typically, investors view companies with negative
shareholder equity as risky or unsafe investments. Shareholder equity alone is not a definitive
indicator of a company's financial health; used in conjunction with other tools and metrics, the
investor can accurately analyze the health of an organization.

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Formulas and Calculation for shareholders equity:

The following formula and calculation can be used to determine the equity of a
firm, which is derived from the accounting equation:

Shareholders‘ Equity=Total Assets−Total Liabilities

This information can be found on the balance sheet, where these four steps should be followed:

1. Locate the company's total assets on the balance sheet for the period.
2. Locate total liabilities, which should be listed separately on the balance sheet.
3. Subtract total liabilities from total assets to arrive at shareholder equity.
4. Note that total assets will equal the sum of liabilities and total equity.

Shareholder equity can also be expressed as a company's share capital and retained earnings less
the value of treasury shares. This method, however, is less common. Though both methods yield
the exact figure, the use of total assets and total liabilities is more illustrative of a company's
financial health.

Components of shareholders equity:

Retained earnings are part of shareholder equity and are the percentage of net
earnings that were not paid to shareholders as dividends. Think of retained earnings as savings
since it represents a cumulative total of profits that have been saved and put aside or retained for
future use. Retained earnings grow larger over time as the company continues to reinvest a
portion of its income.

At some point, the amount of accumulated retained earnings can exceed the amount of equity
capital contributed by stockholders. Retained earnings are usually the largest component of
stockholders' equity for companies operating for many years.

Treasury shares or stock represent stock that the company has bought back from existing
shareholders. Companies may do a repurchase when management cannot deploy all of the
available equity capital in ways that might deliver the best returns. Shares bought back by

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companies become treasury shares, and the dollar value is noted in an account called treasury
stock, a contra account to the accounts of investor capital and retained earnings. Companies can
reissue treasury shares back to stockholders when companies need to raise money.

Many view stockholders' equity as representing a company's net assets—its net value, so to
speak, would be the amount shareholders would receive if the company liquidated all of its
assets and repaid all of its debts.

Common variance of equity:

 A stock or any other security representing an ownership interest in a company.

 On a company's balance sheet, the amount of funds contributed by the owners or
shareholders plus the retained earnings (or losses). One may also call
this stockholders' equity or shareholders' equity.
 The value of securities in a margin account minus what the account holder borrowed
from the brokerage in margin trading.
 In real estate, the difference between the property's current fair market value and the
amount the owner still owes on the mortgage. It is the amount that the owner would
receive after selling a property and paying any liens. Also referred to as "real
property value."
 When a business goes bankrupt and has to liquidate, equity is the amount of money
remaining after the business repays its creditors. This is often called "ownership
equity," also known as risk capital or "liable capital‖.

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Features of equity shares:

1. Most types of equity shares include voting rights to an investor, allowing

him/her to choose individuals responsible to run the business. Electing efficient managers
allows a company to increase its annual turnover, thereby increasing investors' average dividend
income

2. Equity shareholders are eligible to realise additional profits generated by a

company in a fiscal year. This increases the total wealth of individual investors having a
considerable investment in equity shares of a company.

3. Even though equity shares are not repaid until a business closes down, equity
shares already issued can be traded in the secondary capital market. Thus, investors can
withdraw funds from a company upon their discretion. This ensures massive wealth creation
through capital appreciation of such shares.

Conclusion of equity shares:

Equity shares are a good contender when it comes to investment options. Holders
are allowed a say in business functions, and given that they hold a personal stake in the
company, are directly incentivised to take decisions that are in the interest of the company by
using their voting rights and seat at the company table. However, one must always assess all their
investment options and aim to attain a diverse portfolio to minimise risk. Investment shares
therefore, are an ideal addition to an already diverse investment portfolio.

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1.2 OBJECTIVES OF THE STUDY

 To analyse the performance of selected company stocks in National Stock

Exchange of india
 To predict the price movements of the stocks selected using appropriate
technical tools.
 To give suggestions to the investors to make better investment decisions.
 It helps to anticipate the future price based on the past price behaviour.
 To help the investors to invest in profit making shares.

1.3 SCOPE OF THE STUDY

This study is focused on analysis of selected equity listed in National Stock

Exchange of india and interprets on whether to buy, hold or sell them by using the technical
tools. This analysis would help the investors to identify the current trends and risks
involved in the market and take the investment decisions accordingly. This study shows
why and on what basis an investor should invest money in stock market. To know the
market trends due to financing investment activities inflows and outflows.

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1.4 LIMITATIONS OF STUDY

Limitations are the limiting lines that restrict the work in some way or other. In
this research study also their were some imiting factors some of them are as under

1. Data Collection:
The most important constraint in this study was data collection as Secondary data was
selected for study. Secondary data mears data that are already available is they refer to the
data which have already been collected and analyzed by someone else.

2. Time Period:
Time period was one of the main factoras only one month was alloted and the topic covered
in research has a wide scope. So. It was not possible to cover kina short span of time

3. Reliability:
The data collected in research work was secondary data. So, this puts a question mark on
the reliability of this data which a very important factor of this studyas conclusion has been
derived from this secondary data only.

4. Accuracy:
The facts and findings of the data cannot be accepted as accurate to some extent as firstly,
secondary data was collected. Secondly, for doing descriptive research time needed to be
more, because in short period you cannot cover each point accurately.

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1.5 SIGNIFICANCE OF THE STUDY

The significance of the analysis is to determine the investment behavior of

investors and investment preferences for the same Investors perception will provide a way
to account measure how the investors think about the products and services provided by the
company. Today's trying economic conditions has food difficult decisions for companies.
Most are making conservative decisions that reflect a survival mode in the business
operations. During these difficult times, understanding what investors on an ongoing basis
is critical for survival Executives need a third party understanding on where investor's
loyalties stand. More than ever management needs on going from the investors and
employees in order to continue to innovate and grow
The main objective of the project is to find out the needs of the current and future investors.
For this analysis, customer perception and awareness level will be measured in important
areas such as
1. To understand in depth about different investment avenues available in
India
2. To find out how investoes get information about the various financial
3. The type of financial instruments, they would prefer to invest
4. To know the awareness about the different avenues among the
5. To give a recommendations to the investoes that where they should invest

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 CHAPTER 2

REVIEW OF LITERATURE

 Daniel L. Chesler (2000)-Volatility and structure: building blocks of classical chart

pattern analysis: The oldest price charts have been traced to 17th century Japan, where
they are thought to have been used to record and evaluate the changes of the Japanese
rice market. In the United States, price charts did not develop until the nineteenth
century. Prior to the extensive usage of charts in the United States, price and volume
analysis were restricted to what one could see and remember as live quotes scrolled
across a mechanical ticker tape.

 Ashwani Gujral (2006)-ADX: The key to market trends: ADX Is the most powerful
indicator that tells an individual to do what is the right time to enter a particular market.
Because of the technical patterns most of the investors either book profits early or too
late. So, to avoid this confusion there is an indicator called Average directional
movement index (ADX). Usually, an uptrend comes with higher highs and higher lows
and a down trend comes with lower highs and lower lows. ADX gives timely movement
of strength of an underlying trend. It gives the signs on the directional movements but
not the direction.

 Terence Tai-Leung et.al (2008)-Technical analysis and London stock exchange: testing
the MACD & RSI rules using the FT30: Technical analysis examines previous price
patterns or trends, as well as any other pointers to future price changes. Making
investment judgments has become increasingly popular among financial practitioners in
recent years (Taylor and Allen, 1992; Neely, 1997). The question of whether technical
trading rules can create excess returns has long been debatable. If they do help investors

14
 earn higher returns, the efficient market hypothesis (EMH), which argues that asset
prices fully reflect all available information at any one time, is invalidated. A variety of
studies have been conducted to assess the effectiveness of various trading regulations. In
the NYSE, Kwon and Kish (2002) found that technical rules outperformed the buy-and-
hold strategy. Two oscillators will be tested in this article to see if their related rules are
profitable when compared to a buy-and-hold strategy.

 S K Mitra, (2010) Usefulness of moving average based trading rules in India: In recent
trends it is seen that people are using technical analysis tools and oscillators to make
gain in short terms. Fundamental analysis takes into consider the underlying economics
that re affecting the stock movement where as technical analysis takes the causes that
affect the market. The shorter the length of the moving average there is more chance of
the price sensitivity. If the moving average is longer there is less chance of the price
sensitivity. The stock signals buy when short- term moving average crosses long-term
moving average from below. The trading cost are also not fixed they vary with time and
bid-ask rates and other things. Trading cost for small investors are more than those for
the large investors. The simple moving average is calculated from 3 days to 60 days.
Depending on the annualized return the trading is done in this study. The S&P CNX
Nifty shows value from 1000 to around 6000 at peak and at the end of the year 2010.
CNX Nifty junior from as low as 2000 points to around 14000 points at the end of 2010.

 Adrian Taran- Morosan (2011), The relative strength index revisited: The goal of this
work is to empirically verify the functioning of the RSI in its traditional form on a set of
data, as well as to reconfigure the index by using trade volume in its calculation method.
The study will test its new form on the same set of data after modifying the indicator
with the trade volume. Finally, the findings obtained using the classic form of the
indicator will be compared to those obtained using the adjusted form. The study is to
investigate whether higher yields can be obtained by utilising the RSI compared to those

15
 obtained by using the buy and hold strategy in the future. This study attempted to check
the correctness of the RSI signals determined in the conventional form and those of the
RSIM at extreme points using the empirical data supplied. The study used the extreme
points as a starting point. Signal values the typical levels of 30 and 70. For the purpose
of the study employed a number of N equal to 14 days for EMA.

 Chalothon Chootong et.al(2012)-Trading signal generation using a combination of chart

patterns and indicators: The term "fundamental analysis" refers to economic, political,
and comprehensive investigations of a company's financial status. Traders use this
strategy to make long-term price predictions. Technical analysis is concerned with stock
price and volume changes. Indicators such as the Moving Average, Bollinger Band,
Relative Strength Index, Moving Average Convergence Divergence, and Stochastic
Oscillator are commonly used by traders to assess buy and sell signals. They might also
employ chart patterns like price movement patterns and candlestick chart patterns to
examine historical trade data and forecast future prices and trends. Moving average,
Bollinger band, On Balance Volume, moving average convergence divergence and
exponential moving average are some of the methods and tools that are used to get an
accurate result out of stocks.

 R. Rosillo et.al (2013)-Technical analysis and the Spanish stock exchange: testing the
RSI, MACD, momentum and stochastic rules using Spanish market companies:
Exchange decision-making is a topic that is always evolving. The exchange analysts
have mostly employed two types of study to create purchase and sale recommendations:
fundamental analysis and technical analysis. This research is mostly based on technical
analysis, namely the many signs of ‗quantitative analysis.' The emergence of
quantitative analysis began about 1970, when the first books on the subject were
published. The majority of automated trading systems employ a combination of the
previously listed indicators as well as chart analysis. In the case of the valuable
circumstance, an investor who bases his purchase and sale orders on quantitative

16
 analysis indicators finds himself in a tough predicament in which he cannot decide
which decision to make. This is referred to as indicator ambiguity

 Mr. Suresh A.S (2013) - A study on fundamental and technical analysis: The study of
the underlying dynamics that affect the economy, industry groups, and companies is
known as fundamental analysis. The purpose of this research, like most others, is to
create a forecast of future price movement and profit from it. Strength in fundamental
analysis are long-term trends, value spotting, business acumen, value drivers etc.
technical analysis tool are price, time, volume and width. Dow theory acts as a base for
every technical analysis. In this the author explains about basic trends and chart patterns.
Investment is a type of financial activity that entails some level of risk. It is the deposit
of funds with the expectation of receiving a return in the future. Investing can be done in
either financial or physical assets. In either situation, there's a chance the actual return
will differ from the predicted return. The two most crucial elements of any investment
are risk and return. An investor's safety and liquidity are also crucial. The goal of an
investor is to maximise profit while minimising risk.

 Alfred Ka Chun Ma et.al(2013), Technical trading strategies with market impact:

Institutional investors frequently use trading methods to manage their assets. While
institutional investors use a variety of trading techniques depending on their investment
objectives, they normally analyse and select the best ones by using historical data to
back-test them. The closing price is the most commonly used piece of information. The
assumption that institutional investors can always execute their huge orders at the
closing price without affecting the price can, however, be broken. We hypothesise in this
study that failing to implement trading methods at closing price can result in a
considerable loss of profit.

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 C. Boobalan (2014), Technical analysis in select stocks of Indian companies: Technical
analysis is the art and science of predicting future prices based on the analysis of
previous price movements. For predicting prices, technical analysis is not astrology.
Technical analysis examines the present supply and demand of commodities, stocks,
indexes, futures, or any other trading asset. Technical analysis entails plotting stock data
such as prices, volumes, and open interest on a chart and analysing future price
movements using various patterns and indicators. Intraday (5-minute, 10-minute, 15-
minute, 30-minute, or hourly) price analysis, daily, weekly, or monthly price analysis
are all possibilities. Share prices of different companies were analysed on when to buy
and when to sell. The prediction of short-term and medium-term trend plays a vital role
in planning for the future course of action of the investor. The technician also requires a
fundamental knowledge, which would clear the idea about the investment decision.

 Bhamini Garg (2014), Technical analysis indicators: Pathway towards rewarding

journey: Unlike Fundamental Analysts, who examine the economy, industry, and
company to determine the inherent value of a firm's stock, Technical Analysts focus on
historical price movements in order to forecast future price behaviour. Technical
Analysis has both advantages and disadvantages, but it does provide us with a new set of
tools, indicators, or abilities that will help us become better investors. As a result,
Technical Analysis Indicators are an important aspect of traditional Technical Analysis
and are frequently used to forecast market/price moves. In this study, the authors have
attempted to provide insight into Technical Analysis Indicators and how investors might
seek to improve their performance. The study throws light on simple moving average,
weighted moving average and exponential moving average.

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 Dr Kavitha Lal(2014) - Investment in stocks may be made individually or through
portfolio managers. This study attempts at selecting an optimal portfolio for investment
in Indian equity stocks belonging to specific economic sectors. After reviewing the
relevant literature, the objectives and research methodology of the study have been spelt
out. This is followed by a coverage of the concepts and definitions which are relevant for
this study. A comparison of the different approaches to select an optimum portfolio has
been made to get an overview of the relative measures. In this paper, an optimum
portfolio of economic sectors in India, in which the investments could be made, has been
constructed, using Sharpe's index model and Treynor's index as appropriate. The choice
of individual stocks within each the selected sectors could be done by the individuals or
portfolio managers based on any subsequent analysis which generally aims at high return.

 Dr. B. Charumathi1 et.al(2014) - The aim of investors of bank stocks is to earn

reasonable returns. This paper presents the framework for valuing bank stocks using
different valuation models and investigates the explanatory power of each valuation
model in Indian stock market. This study is also trying to compare the performance of
different valuation models in determining bank stocks price. We selected a sample of 14
banks which constitute the BSE Bankex. The period of the study is from 2000-01 to
2010-11. The methodology used is based on the implications of the theory of financial
markets and fundamental analysis. The results show that adjusted R-squares of Ohlson
model and P/B Model are higher than adjusted R-squares of other valuation models such
as CAPM Model, DDM Model, P/E model and Excess return Model. The results of
empirical analysis support that Ohlson valuation model, P/B model and P/E Model are
more informative with high predictive power providing better and more accurate
estimations of equity market values for bank stocks. This study also concluded that
CAPM model and dividend model are not reliable.

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 Dr. S. Uma Prabha et.al(2015) - A Study on Technical Analysis of Stocks Listed in NSE
With Reference to Pharmaceutical Industries - The report states that technical analysis is
the study of the behaviour of the stock prices to predict the future price of the stock. It
also helps the investors to understand about the market trend and risk of the prices
before they go for investment. This helps them to get knowledge about the financial
market and to avoid getting into a high risk.

 Dr. Mayur Savsani et.al (2015) - The stock markets are contributing a voluminous extent
in progress of the economy in India. The banking sector engages major share among
other sectors in Indian stock trading scenario. The study examines the correlation
between risk and return of the Sensex and banking stocks of BSE (Sensex). In this study
different Sensex and banking stock indices have been used to examine the risk return
trade off of Sensex with that of HDFC Bank, ICICI Bank, Axis Bank and SBI. The study
is based on secondary data. The data for the analysis has taken from the BSE website
over a period of 13 years from January 1, 2005 to December 31, 2017. In this analysis for
testing the presence or absence of risk return trade off in the Indian equity markets and
for testing hypothesis, different methods like correlation, regression, descriptive statistic
and test have been discussed.

 Sudheer, V. (2015) - Trading through Technical Analysis: An Empirical Study from

Indian Stock Market - This research study on technical analysis helped the investors in
analysing the scrip based on technical oscillators to identify fruitful investments.
Technical Analysis is all about learning the Art of Making Profits in all market
conditions whether rising or falling. Knowledge of the stock market is key ingredient to
the success and focus should be on managing trading risk while technical analysis can
help the investors to control.

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 George Joseph et.al(2015)-A study on the formation of candlestick patterns with
reference to nifty index for the past 5 years: The purpose of this research on the
formation of candlestick patterns is to identify the various candlestick patterns and their
accuracy. It will assist investors in determining whether candlestick patterns are reliable
while making trading decisions. This research is based on the Nifty index for the last
five years. The research is being carried out for a month at ‗THE STRATEGIST,' a stock
trading firm in Ernakulam. One of the most common charting techniques used in
technical analysis is candlestick charts. Technical analysis is a security analysis
discipline that uses past market data, usually price and volume, to estimate the future
direction of prices. The research paper mainly focuses on the candle stick patterns that
occurs when trading happens. MACD and RSI with the candle stick patterns to get the
maximum gains.

 Dr. S. Umaprabha et.al (2015) -Technical Analysis is a study of the stock market with
respect to factors affecting the supply and demand of stocks helps to understand the
intrinsic value of shares and to know whether the shares are undervalued or overvalued.
The stock market indicators would help the investor to identify major market turning
points. This is a significant technical analysis of selected companies which helps to
understand the price behaviour of the shares, the signals given by them and the major
turning points of the market price. Any investor or trader must certainly consider
technical analysis as a tool whether to buy the stock at a particular point of time though it
is fundamentally strong. The objective of this paper is to make a study on the technical
analysis of selected stocks of Pharmaceutical sector and interpret whether to buy or sell
them by using techniques. This in turn would help investors to identify the current trend
and risks involved with the scrip on par with market. This study is purely based on data
provided on stocks listed in National Stock Exchange (NSE). For the purpose of analysis,
techniques like Beta, Relative Strength Index and Simple Moving average are used and
the strength of stock is inferred.

21
 Barnali Chaklader et.al (2016) - This study contributes to the capital structure literature
by investigating the determinants of capital structure of firms listed in NSE CNX 500.
The period of the study is 2008–2015, the period starting from the year of global
slowdown. This study is an attempt to study the capital structure of firms listed in
National Stock Exchange in the post liberalization period. The objectives of the study are
to study the impact of independent variables such as growth, profitability, tangibility,
liquidity, size and non-debt tax shield on financial leverage and also to find out whether
the results are in line with the pecking order theory or the trade-off theory of capital
structure. Size is taken as a control variable. Our study supports the trade-off theory for
all variables such as growth, profitability, size tangibility and non-debt tax shield.
Liquidity is the only independent variable that goes in accordance with the pecking order
theory. Thus, this study is more inclined towards the trade-off theory.

 Ghaith Hammouri, (2016)- Initial public offerings are gaining importance worldwide as
an important source of funds for the companies to accelerate their growth by using the
mobilised funds to implement innovative strategies as well as considered as an important
tool for investment since it offers huge profits on the listing day. In this study the short
run performance of the companies is analysed to understand the anomaly of abnormal
returns as well long term performance to analyse the performance of the IPO‘s in the long
run. The period of study is from Jan 2013 – Dec 2014. The sample for the study includes
9 companies listed in National Stock Exchange of India pertaining to the study period.
The results of this study will throw light on the performance of the IPO‘s which are
majorly considered as a speculative tool and hence aid in better decision making for the
investors. The findings will also help conclude if IPO can be a long term investment tool
or a speculative opportunity to earn booming profits.

22
 Anjala Kalsie et.al (2016) - This article seeks to examine the relationship between the
board size and firm performance. Existing literature on board size is based on different
theories of corporate governance. While agency theory and resource dependency theory
suggest that the board size positively affects performance, stewardship theory favours
smaller board size and argues that larger board size negatively impacts the firm
performance. The present article adds to the empirical literature by employing panel data
analysis of 145 non-financial companies listed in the NSE CNX 200 Index of India
corresponding to 16 industries. The study is carried out for a period of five years from
2008 to 2012. The firm performance has been measured using Tobin‘s Q and the market-
to-book value ratio (MBVR) as market-based measures and return on assets (ROA) and
return on capital employed (ROCE) as accounting-based measures. The fixed effect
model, random effect model and feasible generalised least square (FGLS) regression
models are applied to achieve the above-mentioned objectives. The results conclude that
the board size has a positive and significant impact on the firm performance.

 Shaini Mallikarjunappa (2016): The author believes that stock market is highly volatile
and it is up to the investors to decide how he could make use of the stock market to gain
higher returns. According to the author Beta would be very helpful in comparing the
relative systematic risk involved in different stocks. In practice investors use Beta to
judge the riskiness of each stock. An investor should remember risk is directly related to
return and hence he should ensure to keep risk associated proportional to returns. In
general it is believed that higher the risk, higher will be the returns, but seeking excessive
risk may not be advisable as it does not ensure excessive returns. At a particular level of
return, security has its own degree of risk. It is advised that investor should analyse the
market on a continuous basis, which in turn would help them pick the right stocks to
invest.

23
 Prathibha Dinakar (2016): The author analysed the risks of 12 banks listed in bank nifty
for a period starting from 7th December 2015 till 8th February 2016. The author found
from their research that, all the stocks had negative returns during the study period except
Yes bank and Kotak Mahindra bank. The author founded that Yes Bank had given the
highest return and the lowest return was given by Punjab National Bank. It was also
found that systematic risk was highest for SBI and lowest for Yes bank. The author
concluded that the Bank of India and Syndicate Bank where less affected by market risk
due the negative beta, while Punjab National bank and Bank of Baroda had the highest
market risk.

 H. Syed Ibrahim (2017), ―A Study on Technical Analysis of Select Steel Companies in

India‖: Technical analysis helps the investor to expect what is the possible price that
might be for the short run. It also helps to understand the market and where the trend
might change in the market. The time frame where technical analysis can be used is
Intraday, daily, weekly and monthly. The RSI formula is given by Wilder is used, if the
value is below 30 good time to invest and if its above 70 then right time to sell. study
suggests that the companies are interdependent and the change of price in one company
can lead to change in other. The best time to buys is when the company shows lowest
RSI and thus in the future the investor can gain huge profits from that particular action.
The study suggests the investor to go for long term position rather than for short term, as
the risk is minimized. Before investing the knowledge on the subject matter is a must,
technical analysis is enough for making decisions but fundamental along with technical
gives a better result and minimizes the risk

24
 C. Boobalan (2017)- Technical Analysis is the forecasting of future financial price
movements based on an examination of past price movements. Technical analysis does
not result in absolute predictions about the future with regard to forecasting. Instead,
technical analysis can help investors anticipate what is "possible" to happen to prices
over time. Technical analysis is study of predicting prices of securities for future the main
aim of technical analysis is to generate returns by charter person decide when to enter and
when to exit in the security. Technical Analysis is of the stock market relating to factors
affecting the supply and demand of stocks. It helps in understanding the intrinsic value of
shares and knowing whether the shares are undervalued or overvalued. The stock market
indicators would help the investor to identify major market turning points. This is a
significant technical analysis of selected companies which helps to understand the price
behaviour of the shares, the signals given by them and the major turning points of the
market price. This paper is aims at carrying out Technical Analysis of the securities of the
selected companies and to assist investment decision in market.

 Sumithra C.G et.al (2017) - Investment Decision Making Using Technical analysis: A
Study on Select Stocks in Indian Stock Market – Indicators such as RSI & MACD gives
strong signals of direction in which the company is heading as well as it helps to identify
oversold, overbought and trend reversals. RSI value of 50 and above indicates the
company‘s shares are overbought and it is a good signal for selling the stocks

25
 Karnawi Kamar (2017) - The purpose of this research is to determine the effect
simultaneously and partially variable of financial factors consisting of Return on Equity
(ROE) and Debt to Equity Ratio (DER) on stock price. Population in this research is
cement industry listed in Indonesia Stock Exchange totaling 3 cement companies. The
method of data collection used is documentation method, while the method of analysis
used is Ordinary Least Square (OLS) method with linear regression model facilitated by
SPSS 23. The results shows that Return on Equity (ROE) has significant effect on the
stock price, and Debt to Equity Ratio (DER) has effect but not significant on stock price.
Through this research it is suggested that the investors in implementing the investment
not only consider financial factor, but also pay attention to other factor that is not raised
in this study, such as politic, economic and other in order to the investment decision.

 Afshan Jabeen et.al (2017) - Technical Study of Pharmaceutical Stocks Listed in NSE –
The study has represented the behaviour of share prices, market trend and the future
movements those share prices and future trend. Using the various technical tools, it has
evaluated the performance and risk involved in the stocks has predicted. It states the
pharmaceutical companies are moving uptrend and they will move in same direction and
they will give good returns in upcoming years.

 Suresh A. S.(2017)-The Logistics sectors is one of thefastest growing sector in Indian

Stock Market. The study is organized to analyse the risk and returns of selected logistic
stockslisted on BSEand to compare their performance against the benchmark for the
period of 5 years i.e. from 1st January 2013 to 31st December 2017. This paper analyses
the performance of logistic sector taking BSE Sensex as benchmark. This study is based
on secondary data collected from BSE. The date were collected based on monthly prices
of the logistic sector and with the help of monthly prices, annual returns were calculated
for a period of five years. The study shows that the shares of Corporate Courier and cargo
limited has given the highestreturns during the study period, whereas the returns of

26
 Skypak service specialists limited was negative during the same period. The beta of all
the stocks were more than one, indicating that all the shares

 Dr. M. Muthu Gopalakrishnan et.al(2017) -Every individual always wishes to get a

decent return on his/her investments because investor makes the investment from the
hard earned savings. Among the various schemes of investment, equity market is
considered to be one of the most rewarding avenues even though it involves more risk.
Since the risk is very high in equity investment, the investors need to make equity
analysis that helps them to know about the risk return characteristics of those equity
shares and those industries in which he/she wishes to park the savings. In this outlook a
study has been undertaken to analyse the equity shares of companies in automobile
industry of Indian stock market. Indian automobile industry is one of the largest in the
world and considered to be one of the fastest growing sectors. In order to maintain the
growing demand many auto makers have started to invest in this industry. So the study
on equity analysis of this industry will help the potential investors in taking informed
and rational investment decision. This study is conducted for a period of 5 years,
covering from 2012 to 2017. It takes only 50% of the total companies forming NIFTY
Auto index as on 21st April 2017. That is 8 companies. From the analysis, it is found
that among all other companies Mahindra & Mahindra Ltd is the best company to invest
because its beta value is less than one (0.9082) and it has a positive alpha value
(0.0073).

 Kavya (2018) analysed the performance of nationalized banks from NSE with return,
risk and beta from 1st Jan to 31st Dec 2017. This study considered Bank Nifty Index as
benchmark. Risk and return of banking stocks as well as Data Envelopment analysis
method is used for analysing the efficiency of banks. The findings of the study showed
that Bank of India and Punjab National Bank carry high risk & return & Axis Bank
stock is less risky.

27
 Aistis Rausys et.al(2018), Optimising the smoothness and accuracy of moving average
for stock price data: Noise can be removed by smoothing time series. In the financial
world, moving averages are used to smooth stock price series and forecast trend
direction. We present an optimised bespoke moving average that is best suited for
smoothing stock time series. Smoothness and precision are two factors that indicate
suitability. Previous studies concentrated solely on one of the two criteria. This is
referred to as multi-criteria analysis. On synthetic and real-world stock data, compare
the achieved success to the five most common moving average methods in the Pareto
optimization problem. The comparison was made with data that had never been seen
before. In 99.5 percent of synthetic examples and 91 percent of real-world scenarios, the
new approach outperforms other methods. The study is detailed on the moving average

 Patel (2018) investigated return of 10 pharmaceutical organizations in Indian securities

exchange for period of 2013 to 2018. The examination inferred that among selected
companies Sun Pharmaceutical Industries Ltd gives exceptional yield yet the market
danger of the offers is much high. So, the value offers of Divi's Laboratories Ltd are
increasingly great to potential speculators since it gives exceptional yield and the hazard
related with those offers less.

 Faisal (2018) made thorough analysis of stocks from different sectors to estimate beta
values and thus creating optimum portfolio of estimated low β values. Therefore, this
paper is an attempt to inculcate some basic & advance knowledge to create awareness
about various types of risks involved in their investments. This study has considered
beta to be measured of different stocks taken from various sectors in the stock market.

28
 Shrishti Chhetri_et.al (2019)- A study on technical analysis of stocks and their price
movement with reference to Indian stock market: Technical analysis is the process of
predicting future exchange rate or any other asset-price movements based on an
inductive analysis of past movements, using either qualitative (e.g., the recognition of
certain patterns in data for visual inspection of a time-series plot) or quantitative (e.g.,
based on an analysis of moving averages) techniques, or a combination of both.
Earnings, dividends, assets, quality, ratios, new products, research, and other factors are
examined by fundamental analysts. Technicians use a variety of methods, equipment,
and procedures, including the usage of charts. Every market participant has the
opportunity to invest in a security. As a result, if they gain a thorough understanding of
the market, they will be able to make the necessary investments, resulting in higher
returns on their investment. As a result, as an investor or a firm, you may be exposed to
identifying securities through technical analysis.

 Patricia L.Chelley-Steeley(2019) - This paper assesses the extent to which the equity
markets of Hungary, Poland the Czech Republic and Russia have become less segmented.
Using a variety of tests it is shown there has been a consistent increase in the co-
movement of some Eastern European markets and developed markets. Using the variance
decompositions from a vector autoregressive representation of returns it is shown that for
Poland and Hungary global factors are having an increasing influence on equity returns,
suggestive of increased equity market integration. In this paper we model a system of
bivariate equity market correlations as a smooth transition logistic trend model in order to
establish how rapidly the countries of Eastern Europe are moving away from market
segmentation. We find that Hungary is the country which is the integreated the most
quickly.

29
 Partha Mohanram(2019) -Technical Analysis is a trading practice to identify and observe
the changes in stock movements to anticipate future movement. It operates mainly by
observing patterns discovered among the historical closing prices in numeric form.
Studies have shown that sentiments play a significant role in stocks movement prediction
[1]-[3]. This work studies the effect of adding text data into stocks and index prediction.
We studied major technological stocks and NASDAQ index movement which are highly
volatile in nature. We set up experiments to predict the 10-day forward momentum of
stock and index. In this work, we make use of machine learning techniques to establish
10 different models including decision tree, random forest, K-nearest neighbors, support
vector machine, recurrent neural network, long-short term memory network, gated
recurrent unit network to observe their ability to make prediction. The results illustrate
that the non-neural network models experience over-fitting issue despite the good
accuracy. On the other hand, neural network models require more data. The addition of
news and sentiments can improve deep learning model performance of accuracy of
50.1% to 78.5%

 Dr. Smita Jape(2019) - Investment in the equity market is always considered risky.
Market sentiment is one of the factors that move stock prices. The present study aims to
understand the impact of economic variables during crisis on the bank stock prices during
COVID crisis. Analysis of banking stocks were considered with economic variables viz.
Nifty, Sensex, Exchange Rate, FII movement, and G-sec coupon rate. The significance of
variables is tested by regression and correlation test using SPSS. Tracking the
performance of Nifty give direction of future corrections in the prices of bank stocks.
After a sharp fall in the market, there is correction in the stock prices for private sector
banks but not for public sector bank. During the first half of the study, there is a strong
correlation and between Nifty, Sensex and selected stocks but moderate with FII, G-Sec
rate and Exchange rate. During the second half of the study, the relationship.

30
 Shubhangi Anil Patil1 et.al (2020)-A Fast Moving Consumer Goods (FMCG) sector is an
escalating sector among all other growing sectors in India. It is the fourth largest sector in
India. Changing lifestyles, growing awareness and easier access are the major drivers for
the growth of the FMCG sector. The government's growing focus on agriculture, health
care, infrastructure and employment in the union budget is expected to directly influence
the FMCG sector. FMCG sector consists of a huge number of companies servicing the
society by proving various kinds of goods and services which fulfill the growing needs of
the society. The FMCG sector in the last few years has shown more growth in rural areas
as compared to urban areas. It is projected that the FMCG sector will continue to grow by
13-14 percent in the next 5-10 years and is likely to become a $220-240 billion industry
by 2025. Among the various companies the most rapidly growing companies like Marico
Ltd, Godrej Industries Ltd, Dabur India Ltd, Emami Ltd, and Nestle India Ltd listed on
the National Stock Exchange (NSE) have been studied for getting an idea about their
performance. For the purpose of analyzing the companies, various parameters have been
used to compare the growth performance of the companies. The ratios like Price/
Earnings ratio, Total/Debt to equity ratio, Return on Equity ratio and Dividend yield ratio
are calculated to compare the performance of the companies which also gives the further
idea about the financial position of the selected companies. The focus of this paper is on
giving the idea to investors about how the companies and their stocks are to be chosen
which will benefit them in the long term and will grow their investments.

 Nupur Makkar et.al (2020) - Risk and return analysis plays a most important role while
making any investment decisions. Every rational investor, analyse the risk and return
before investing in any stock or security. The investment process must be considered in
terms of both risk and return. It is generally believed that if the investor wants to earn
higher return then he will have to take more risk for earning higher return, if he doesn‘t
want to take higher risk then he can‘t earn higher return. So, higher return commensurate
with higher risk. However, lots of studies had been conducted to analyse risk and return,
few studies stated that higher risk is commensurate with higher return while other studies
criticizes it and stated that higher risk do not generally commensurate with higher return.

31
 The purpose of this paper is to review the past literature available on risk and return to
throw the light on the relationship between them.

 Dr. Nalla bala kalian(2020) - Stock market is a market where a number of securities are
traded such as equity shares, debentures, bonds, insurance products, mutual funds etc.
mostly the existing securities are traded in this market. India has one of the oldest stock
markets in Asia and this stock exchange is the Bombay Stock Exchange which was
established in 1875. It was started under the banner of ―The Native Stock and Share
Brokers Association‖. The main aim of this article is to study the fluctuations in share
prices of selected companies in India. The Stock exchange is a market for old securities
which have been already issued and listed on a stock exchange. These Securities are
purchased and sold continuously among investors without involvement of companies.
The Stock exchange provides not only free transferability of shares but also makes
continuous evaluation of securities traded in the market. The present study is deliberate to
examine the Risk & Return Analysis of Selected Stocks in India. Risk may be defined as
the chance of variations in actual return. Return is defined as the gain in the value of
investment. The return on an investment portfolio helps an investor to evaluate the
financial performance.

 Venkatesh P Krıshna_et.al (2021) - Technical Analysis is a study of the stock market

relating to factors affecting the supply and demand of stocks and also helps in
understanding the intrinsic value of shares and to know whether the shares are
undervalued or overvalued. The stock market indicators would help the investor to
identify major market turning points. This is a significant technical analysis of selected
companies which helps to understand the price behaviour of the shares, the signals given
by them and the major turning points of the market price. Any investor or trader must
certainly consider technical analysis as a tool whether to buy the stock at a particular
point of time though it is fundamentally strong. The objective of the study is the technical
analysis on selected stocks of steel sector and interprets on whether to buy or sell them by
using techniques. The study is purely based on secondary sources which includes the

32
 historical data available from the website. For the purpose of analysis, techniques like
Candlestick Charts, Simple moving average, ROC and RSI is used for the analysis to
know if the stock is technically strong.

 B. Senthil Arasu et.al (2021) - This study deploys data envelopment analysis (DEA) to
identify the appropriate variables for the performance valuation of stocks. For this
purpose, sixty-nine non-financial stocks of the Nifty 100 index of The National Stock
Exchange of India Ltd (NSE) were selected as a sample for this study. We segregated the
selected stocks into three groups of inputs and outputs for DEA based on fundamental
indicators (financial ratios); technical indicators (momentum indicators); and both,
fundamental and technical indicators. The stock performance indicators are sourced from
the ACE database from financial year 2014 to 2019. The results of the study suggest that
all three sets of stock performance indicators help in the identification of efficient stocks.
However, stocks identified under momentum indicators are seen to have been better
performing in stock return compared to the other two groups. The outcome of this study
may help academicians and investors construct an effective portfolio and analyse/study
its performance evaluation

 Faizan Ulhaqq Ansari(2021) - The present study is an attempt to diagnose the risk return
profile of equity stocks of selected Indian IT companies listed on IT Index of NSE. The
risk return profile of selected IT companies has been examined on various parameters
including the absolute return, abnormal return, required rate of return as per CAPM
model, volatility of return, systematic risk and risk adjusted return. Authors found that
Tata Elxsi, Infibeam Avenues and NIIT technologies have offered highest rate of return.
The returns of Infibeam avenues, Tata Elxsi and Mindtree are highly volatile. The risk
adjusted return is highest in case of Mindtree and Tech Mahindra. Stocks prices of
Infosys, HCL technologies and Tech Mahindra are highly sensitive to market movement
indicating the highest degree of systematic risk. Except HCL Technologies, Wipro and

33
 Oracle Fin Serv, remaining seven IT companies have offered higher rate of return at
higher rate of return.

 Aggarwal et.al - : The motivation behind this paper was to see if financial statement
analysis could be employed by investors to design portfolios of low book-to-market
stocks that could help them earn excess returns in the Indian context. Using a modified
framework from Mohanram (2005), which employs a G_SCORE, capable of separating
ex post winners from losers among low book-to-market companies, and portfolio
formation on the basis of the G_SCORE, we find convincing evidence that financial
statement analysis can help investors form profitable portfolios among low book-to-
market stocks. We show that portfolios with high G_SCORE (6 to 7) provide outstanding
returns both on absolute and riskadjusted basis and far outperform the markets. At the
same time, portfolios with low G_SCORE (0 to 3) offer very poor returns and always
underperform the markets on both absolute and risk-adjusted returns. Thus a growth
investor could shift his distribution of returns rightwards by investing in portfolios of
only high G_SCORE stocks; simultaneously shorting low G_SCORE portfolios would
further amplify the returns.

 Renuka N et.al(2021) - A stock or any other security representing an ownership interest.

On a company balance sheet funds contributed by the owners and the retained earnings
also refereed as equity. In terms of investment strategies an equity is one of the principal
asset. In finance the equity as ownership in any asset after all debts associated with the
asset are paid off. In Indian stock market has returned about 17% to investors on an
average in terms of increase in share prices or capital appreciation annually. Besides that
on an average, stocks have paid 1.5 % dividend annually. Dividend is a percentage of the
face value of a share that a company returns to its shareholders from its annual profits.
Comparing the most other forms of investments investing in equity shares offers the
highest rate of returns if invested over a long duration. Banks are the major part of any
economic system. They provide a strong base to Indian economy as well. Even in the
share markets, the performance of banks shares is of great importance. Thus, the

34
 performance of the share market, the rise and the fall of market is greatly affected by the
performance of the banking sector shares and this study revolves around all factor.

 Ms. ShilpiPal(2021) - Mutual funds allow for portfolio diversification and relative risk
aversion through collection of funds from the households and investment of the same in
the stock and debt markets. Fixed- Income Funds in India are a kind of mutual fund
which makes investment in debt securities that have been issued either by the companies,
banks, or government. Fixed- Income Funds in India are also known as debt funds and
income funds. Using various statistical measures the present study aims to evaluating the
performance of a few selected income or debt mutual funds schemes of India on the basis
of their daily NAV. Popularity of income schemes has only increased in the last decade.
Income mutual funds they have seen tremendous growth in their number of schemes from
91 on 31st march 2001 to 330 on 31st march 2010. 506 in 2008 was the maximum ever in
terms of total schemes floating in the market. This category has seen a decline only twice
in the last decade. First fall was posted in the year 2003 and the second fall was reported
in the year 2010. One striking fact which comes to light is the huge percentage
contribution of income schemes towards the total AUM of the industry.

 Frank K. Reilly et.al (2021) - The association between interest rate changes and stock
returns has long been of interest to investors, all the more so recently as investors and the
financial and popular press have zeroed in on the effect of Federal Reserve actions on
interest rates. The interest rate sensitivity of common stocks can be measured using an
alternative specification of duration, empirical duration, a measure that has become
accepted by fixed-income analysts and portfolio managers. Analysis of the interest rate
sensitivity of the aggregate stock market considers alternative economic sectors and
many industries and stock indexes that reflect different sizes and investment styles. Five
important results are documented: 1) dramatic changes over time in the empirical
duration of common stocks; 2) substantial differences in the total-period empirical
duration for different economic sectors and different industries; 3) a significant negative

35
 relation between market risk and interest rate risk for different industries; 4) significantly
different patterns of empirical duration over time for different sectors and industries; and
5) differences in interest rate sensitivity for various economic sectors, industries, and
investment styles that are generally consistent with economic expectations.

 Dr. G. Sabitha et.al(2021)- Equity analysis is to provide information to the investors in

the markets. An efficient market relies on information. In today‘s scenario, most
investors are tending to invest in stock market. The main aim of this project is to equity
analysis on banking sector and to find out the opportunities of investment in these sectors
where returns can be maximised. As companies grow their shareholders are benefited
with good dividend and capital appreciation on investment in equity shares of such
companies. Number of companies listed in stock exchange (BSE&NSE) has been
increasing every year with new IPOs coming in the market. This report starts from the
fundamental analysis where EIC (Economy, Industry, and Company) analysis of the six
banks (SBI, BANK OF BARODA, CANARA Bank, AXIS Bank ICICI Bank, HDFC
Bank). Fundamental analysis is a method of measuring a security's intrinsic value by
examining related economic and financial factors. Fundamental analysts study anything
that can affect the security's value, from macroeconomic factors such as the state of the
economy and industry conditions to microeconomic factors like the effectiveness of the
company's management. Then the technical analysis is of the top banks has been done.
Technical analysis is used to study stock chart pattern of these banks. The observed
patterns are tested with various oscillators and decision about particular stock is made.
Based on these factors, a trend of a particular stock is observed. Then the participation of
selected banks in share market and comparing the performance of selected banks in the
share market.

36
 Nupur Makkar1_et.al(2021) - Risk and return analysis plays a most important role while
making any investment decisions. Every rational investor, analyse the risk and return
before investing in any stock or security. The investment process must be considered in
terms of both risk and return. It is generally believed that if the investor wants to earn
higher return then he will have to take more risk for earning higher return, if he doesn‘t
want to take higher risk then he can‘t earn higher return. So, higher return commensurate
with higher risk. However, lots of studies had been conducted to analyse risk and return,
few studies stated that higher risk is commensurate with higher return while other studies
criticizes it and stated that higher risk do not generally commensurate with higher return.
The purpose of this paper is to review the past literature available on risk and return.

 Sonia Lobo (2022) - Indian stock markets are channelizing financial resources for the
economic progress of the country. The Indian Financial Services sector is the subset of
the stock market which is playing a key role in stock trading. The Indian Financial
Services industry is multifaceted and is growing rapidly both in terms of the robust
growth of existing firms and the entry of new players playing a stellar role. This surge in
growth of the Financial Services sector led many investors to divert their investment
towards the financial services segment. To construct an attractive portfolio, the individual
investor should perform a risk-return analysis well in advance. This will assist the
investor in determining the risk-return relationship in various securities. Given this
background, the study is undertaken to evaluate the risk-return pattern

 R. Chitra(2022) - Technical Analysis is a study of the stock market relating to factors

affecting the supply and demand of stocks and also helps in understanding the intrinsic
value of shares and to know whether the shares are undervalued or overvalued. The stock
market indicators would help the investor to identify major market turning points. This is
a significant technical analysis of selected companies which helps to understand the price
behaviour of the shares, the signals given by them and the major turning points of the
market price. Any investor or trader must certainly consider technical analysis as a tool

37
 whether to buy the stock at a particular point of time though it is fundamentally strong.
The objective of the present project is to make a study on the technical analysis on
selected stocks of energy sector and interpret on whether to buy or sell them by using
techniques. This in turn would help investors to identify the current trend and risks
involved with the scrip on par with market. The study is purely based on secondary
sources which includes the historical data available from the website. For the purpose of
analysis, techniques like Beta, Relative Strength Index and Simple Moving average is
used for analysis

 Disouza (2022) studied security return, Market return, Beta, Standard deviation,
Correlation Coefficient, Skewness and Kurtosis of 6 public limited mining companies
from BSE from 2011 to 2016. The author examined the relationship between the security
return and market return & Sensex is used as market proxy. Author found positive
relationship between the security & market return and the beta are unstable during the
study period

 Gautam (2022) studied the fluctuations in share prices of selected companies in India.
The present study is deliberated to examine the Risk & Return Analysis of Selected
Stocks in India. Risk may be defined as the chance of variations in actual return. Return
is defined as the gain in the value of investment. The return on an investment portfolio
helps an investor to evaluate the financial performance of the investment.

 Imran (2022) studied the bank stocks in present scenario with risk and volatility. Author
concluded that investor expects to get back the initial amount as early as possible on
maturity without loss and delay. Recent changes, political, economic growth and other
national and international factors effecting the volume of trade leading to volatility in the
Indian stock market.

38
 Faisal (2022) made thorough analysis of stocks from different sectors to estimate beta
values and thus creating optimum portfolio of estimated low β values. Therefore, this
paper is an attempt to inculcate some basic & advance knowledge to create awareness
about various types of risks involved in their investments. This study has considered beta
to be measured of different stocks taken from various sectors in the stock market.

 Gopalakrishnan (2020) undertaken a study to analyse the risk return relationship of

selected companies in pharmaceutical industry of Indian stock market. This study use
data from 2012 to 2017. The study finds the risk return characteristics of selected 10
pharmaceutical co., & concluded that Sun Pharmaceutical Industries Ltd carry high return
high risk & Divi‘s Laboratories Ltd gives high return and the risk associated with those
shares less.

 Patjoshi (2021) examined the correlation between risk and return of the Sensex and
banking stocks of BSE 30 (Sensex). In this study different Sensex and banking stock
indices have been used to examine the risk return trade off of Sensex with that of HDFC
Bank, ICICI Bank, Axis Bank and SBI. The study undertaken from 1 Jan, 2001 to 31
Dec, 2015. In this analysis, different methods like correlation, regression, descriptive
statistics and t test have been employed.

39
 Chandrika Kadirvel Mani_et.al(2022)- One of the primary challenges with stock
selection is the identification of the best stock features to use for the selection of winning
stocks. Typically, there are easily more than 50 variables that can be used for stock
selection. Many stock investors prefer to keep stock selection as simple as possible and
therefore are interested in identifying a few stock variables to use for the identification of
winning stocks. Principal Component Analysis is a statistical technique that reduces a
large number of inputs of data to a few factors. Once the factors are established, they are
displayed in a perceptual map. The perceptual map provides a clear picture of the
winning stocks that should be selected for trading.

 Gerald H. Lander(2022)- I investigate the mean reversion tendency of small growth

stocks. Using a carefully articulated research design employing established and
empirically tested principles, my findings should support or refute the anecdotal evidence
that small growth stocks make superior investments. The primary motivation for the
study springs from the documented differential preference among investors for value and
growth stocks. Despite evidence that value stocks tend to outperform growth stocks,
investors retain strong interest in growth stocks. Yet in examining the performance
of Business Week‘s (BW), smaller capitalization companies (called ―Hot Growth
Companies‖) with respect to the overall financial market, Bauman et al. [2002] found
positive excess returns in the pre-publication period but negative excess returns in the
post-publication periodThe results of the expanded study substantiate Bauman et al.‘s
study showing that there are positive excess returns in the pre-publication period, but
negative excess returns in the post-publication period. An expanded future study will
look at five additional variables to see if they make a significant difference on the effects
of the returns of small growth stocks.

40
 CHAPTER 3

METHODOLOGY

3.1 REASON FOR SELECTING THE STOCK

Stock investors face a tough challenge in choosing where to invest.

Reviewing the massive amount of data available on public companies is vital for assessing the
quality of companies and determining whether they‘re suitable for their portfolios. But, it can be
an arduous process.

When you‘re evaluating something like bonds, the overriding consideration is credit quality.
With stocks, there‘s no such silver bullet. So individual investors interested in buying equities
are faced with a much tougher task: performing personal due diligence or, if they have advisors,
evaluating their recommendations.

Consideration for selecting the stock:

Decades ago the problem for individual investors was getting enough information
without buying costly subscription services. Thanks to the internet, investors now have access to
free, real-time data at the click of a button.

The challenge lies in selecting the right information for assessing a specific stock and evaluating
it correctly. The process of selecting what stocks to invest in can be simplified by using five
basic evaluative criteria.

41
 1. Good current and projected profitability

When choosing stocks, it‘s important to consider a

company‘s financial fundamentals, including earnings, operating margins and cash flow.
Together, these factors can paint a reasonable picture of the company‘s current financial health
and how profitable it‘s likely to be in the near and long-term.

On the earnings side, investors should consider how stable

those earnings are and how they‘re trending. Higher operating margins are typically more
favorable than lower operating margins, in terms of measuring how efficiently a company
operates. Reviewing the company‘s cash-flow figures, specifically cash flow per share, is helpful
in gauging profitability. It‘s also a way to assess whether a stock is over- or undervalued.

2. Favorable asset utilization

Favorable asset utilization is the ratio of revenue earned for

each dollar of assets a company owns. For example, if a company has an asset utilization ratio of
40 percent, it‘s earning 40 cents for each dollar of assets it owns. Different ratios are favorable in
different industries. Similar to operating margin, the asset utilization ratio is a way to measure
efficiency over time.

3. Conservative capital structure

Capital structure refers to how a company funds its business

operations, using both debt and equity. A conservative capital structure means that a company
characteristically marshals capital in ways that create enough short-term liquidity to cover
operating costs, while also reserving enough finance expansion without significantly increasing
long-term debt.

42
 4. Earnings momentum

Current or recent earnings, the fixation of many investors, are

nothing more than snapshots of where a company is, or was, at a given point in time. To see
where companies are likely headed, look for earnings momentum the slowing or acceleration of
earnings growth from one period to the next as demonstrated by patterns.

Look for these patterns by examining earnings reports over the previous eight quarters, and
reading analysts‘ projections for future earnings. If a company posted its best earnings of the last
five years, two years ago, and has been lackluster since, it may be under increasing competitive
pressure.

5. Intrinsic value

Intrinsic value is determined by analysts using complex absolute and

relative valuation models. Available to individual investors online, these figures are a way to cut
through market buzz to get a handle on a stock‘s real value. In the short term, intrinsic value can
vary significantly from market value, which is influenced by perception and behavioral investing
factors. Ideally, you want stocks whose intrinsic value is higher than the market value, as this can
suggest eventual price growth.

43
3.2 DATA COLLECTION TECHINIQUE

Secondary Data:

Secondary data is second-hand data collected by other parties and already having
undergone statistical analysis. This data is either information that the researcher has tasked other
people to collect or information the researcher has looked up. Simply put, it‘s second-hand
information. Although it‘s easier and cheaper to obtain than primary information, secondary
information raises concerns regarding accuracy and authenticity. Quantitative data makes up a
majority of secondary data.

Source of Data:

All secondary data used for the study will be extracted from the annual reports,
manuals and other published materials and the official website of companies, NSE website,
MoneyControl.com, Screener.com. For analysis the data is collected from NSE Website. Daily
Open, High, Low and closing values are taken for the data analysis. The study is also done to
find out among these tools which tool is best and the investor or trader can rely on that tool.

44
1.3 RESEARCH TOOLS

 Moving Average:

The moving average (MA) is a simple technical analysis tool

that smooths out price data by creating a constantly updated average price. The average is taken
over a specific period of time, like 10 days, 20 minutes, 30 weeks, or any time period the trader
chooses. There are advantages to using a moving average in your trading, as well as options on
what type of moving average to use. Moving average strategies are also popular and can be
tailored to any time frame, suiting both long-term investors and short-term traders.

 PE ratio (Price Earning ratio):

The price-to-earnings ratio (P/E) is one of the most widely

used tools by which investors and analysts determine a stock's relative valuation. The P/E ratio
helps one determine whether a stock is overvalued or undervalued. A company's P/E can also be
benchmarked against other stocks in the same industry or against the broader market, such as
the S&P 500 Index.

 Average Directional Index (ADX):

ADX stands for Average Directional Movement Index and

can be used to help measure the overall strength of a trend. The ADX indicator is an average of
expanding price range values. The ADX is a component of the Directional Movement System
developed by Welles Wilder. This system attempts to measure the strength of price movement in
positive and negative direction using the DMI+ and DMI- indicators along with the ADX. ADX
is simply the mean, or average, of the values of the DX over the specified Period.

45
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1. Punjab National Bank (PNB):

Punjab National Bank (PNB), India‘s first Swadeshi Bank,

commenced its operations on April 12, 1895 from Lahore, with an authorized capital of ₹ 2 lac
and working capital of ₹ 20,000. The Bank was established by the spirit of nationalism and was
the first bank purely managed by Indians with Indian Capital. During the long history of the
Bank, 9 banks have been merged/ amalgamated with PNB.

PNB is the second largest Public Sector Bank (PSB) in

the country with Global Gross Business at ₹ 19,31,322 Crore. The Bank continues to maintain its
forte in low cost CASA deposits with a share of 47.43%. Bank‘s focus has been on qualitative
business growth, recovery and arresting fresh slippages. PNB has constantly been achieving
National Goals and Targets allocated under flagship schemes of the nation for upliftment and
employment of targeted groups. The outstanding under Priority Sector as on March‘22 stood at ₹
2,83,712 Crore. National Goal achievement of Priority Sector Advances was 42.42% of ANBC
against the National Goal of 40% as at the end of March‘22. Agriculture advances stood at
₹122708 Crore, exceeding the National Goal of 18 % and was at 18.35 % of ANBC as at the end
of March‘22. Credit to Small and Marginal farmers stood at ₹65979 Crore in March‘22. National
Goal achievement is 9.87 % of ANBC, exceeding the target of 9 %. Credit to Weaker Sections
stood at ₹90002 Crore in March‘22. National Goal achievement is 13.46 % of ANBC, exceeding
the target of 11 %. Credit to Micro Enterprises stood at ₹53963 Crore as on March‘22. The Bank
has achieved National Goal at 8.07 % of ANBC as against the target of 7.5 %.

46
Mission:

―To offer quality financial services by leveraging technology to create value for customers
and other stakeholders, opportunities for employees and thus, contributing to the economic
growth of nation.‖

Vision:

―To be a globally trusted banking partner through customer-centric innovations,

empowering employees and enriching lives of all stakeholders.‖

Ratios:

 Capital Adequacy Ratio - 13.88%

 Net Interest Margin - 3.09%
 Gross NPA - 12.99%
 Net NPA - 4.03%
 CASA Ratio - 44.66%

Objectives:

 Market Cap₹ 33,529 Cr.

 Current Price₹ 30.4
 High / Low₹ 48.2 / 28.4
 Stock P/E8.68
 Book Value₹ 84.0
 Dividend Yield2.10 %
 ROCE4.09 %
 ROE4.17 %
 Face Value₹ 2.00

47
Pros:

 Stock is trading at 0.36 times its book value

 Company has delivered good profit growth of 26.71% CAGR over last 5 years
Cons:

 Company has low interest coverage ratio.

 The company has delivered a poor sales growth of 9.67% over past five years.
 Company has a low return on equity of 3.04% for last 3 years.
 Contingent liabilities of Rs.425881.70 Cr.
 Company might be capitalizing the interest cost

Listing & Shareholding:

Shareholders Shareholding

Promoter Group (Government of India) 83.2%

FIs / Banks / Insurance 5.6%

Resident Individual 5.7%

Mutual Funds 2.3%

Foreign Institutional Investors (FIIs) 2.2%

Others 1.1%

Total 100.0%

48
Peer comparison

Sector: Banks Industry: Banks - Public Sector

Source: Screener.in

Interpretation: Punjab National Bank‘s P/E ratio is the third highest compared to others. It has
the market capital of 33528.54 cr. Dividend yield percentage is better compared to IOB and
Union Bank. ROCE percentage is low compared to others peers. Quarterly profit is in negative
so the company is in loss. Quarterly sales is less compared to other competators.

49
Quarterly Results

Interpretation: Expense is increasing which is not good and its increasing over the years.
Financing profit is in negative. Tax percentage is high compared to all the years. It doesn‘t have
any physical assets so it doesn‘t have depreciation. Other income is some how consistent may be
increased in some years. At last earning per share is 0.31 which is less than last year.

50
Profit & Loss

Interpretation: The above table is the profit and loss statement of PNB. The expense for the year
2022 is high compared to 2011. The financing margin is in negative. Other income is high
compared to other years. They some how reduced the tax compared to the previous year.
Earnings per share is 3.51. Dividend pay out ratio is 18% which is good.

51
Balance Sheet

Interpretation: The company‘s sharecapital is increased over the years. Reserves are also
increased higher. Total liabilities are increased more than 428,268. Fixed asset is increased over
a years. The company‘s investment is increased more than 200,000. CWIP is 0 over a period.

52
Shareholding Pattern

Interpretation: Promotors shareholding is constant for the last four years. Government
shareholding pattern is 0 for the more than 2019. Public holding is increased in last years.

53
30 Days Moving Average

Interpretation: The blue line is the price of the company share in NSE. The yellow line is 50 days
moving average. A moving average is a widely used technical indicator that smooths out price
trends by filtering out the noise from random short-term price fluctuations. Moving averages can
be constructed in several different ways and employ different numbers of days for the averaging
interval. If the two lines intercept it means that the price is at equlibirium.

54
200 Days Moving Average

Interpretation: The blue line is the price of the company share in NSE. The yellow line is 50 days
moving average. The black line is 200 days moving average. During the year 2021 between
august to October the line is intercepting two times which means the price is increase two times
in that year.

55
2. InterGlobe Avaiation:

Since 1989, InterGlobe Enterprises has been bridging gaps between people
and markets. Our unswerving commitment to this purpose has allowed us to establish a
strong foothold in businesses such as civil aviation, hospitality, travel commerce, airline
management, aircraft maintenance engineering, and advanced pilot training.
Over the past three decades, we have continued to expand our vision and become India‘s
leading and one of the most respected conglomerates. Headquartered in Gurugram and
driven by a workforce of over 27,000 people spread across 28+ countries and 115+ cities
globally, our passion for quality, value and innovation is set to power us into the future.

IndiGo was founded in 2006 as a private company by Rahul Bhatia

of InterGlobe Enterprises and Rakesh Gangwal. InterGlobe had a 51.12% stake in
IndiGo and 47.88% was held by Gangwal's Virginia-based company Caelum
Investments. IndiGo placed a firm order for 100 Airbus A320-200 aircraft in June 2005
with plans to begin operations in mid-2006. IndiGo took delivery of its first aircraft on 28
July 2006, nearly a year after placing the order. It commenced operations on 4 August
2006 with a service from New Delhi to Imphal via Guwahati By the end of 2006, the
airline had six aircraft, and nine more were acquired in 2007. In December 2010, IndiGo
replaced state-run carrier Air India as the third largest airline in India, behind Kingfisher
Airlines and Jet Airways with a passenger market share of 17.3%.

56
Mission:

―Provide safe, secure, affordable and sustainable air travel with access to various parts of
India and the world.‖

Vision:

Creating value, forging meaningful connections and representing brands with genuine
resonance and meaning. Breaking through existing conventions by adopting new perspectives.

Leadership in domestic segment:

The company has a 54% market share in the domestic passenger traffic in India
as per the latest records. It also has a significant share of international market with ~12% per cent
share of total international seat capacity to or from India.

Revenue Break:
Sale of tickets contributes 92% of total revenue, followed by cargo services (4%) & in-flight sales
(1.5%).

Airplanes Fleet:
Presently, it operates a fleet of ~260 airplanes. Back in 2011 & 2015, the company ordered 430
fuel-efficient Airbus A320 NEO family aircrafts out of which 114 has been delivered till FY20. In
addition to this, in 2019, the company placed an additional firm order for the 300 A320 NEO family
aircrafts.

Expansion of destinations:
During FY20, the company added 18 new destinations (10 domestic & 8 international) to serve a
total of 86 destinations domestically & internationally.

57
Objectives:

 Market Cap₹ 70,188 Cr.

 Current Price₹ 1,822
 High / Low₹ 2,380 / 1,555
 Stock P/E
 Book Value₹ -155
 Dividend Yield0.00 %
 ROCE-12.5 %
 ROE%
 Face Value₹ 10.0

PROS:

 Company is expected to give good quarter

CONS:

 Company has low interest coverage ratio.

 The company has delivered a poor sales growth of 6.89% over past five
years.
 Earnings include an other income of Rs.725.60 Cr.

58
Peer comparison
Sector: Air Transport Service Industry: Transport - Airlines

Interpretation: InterGlobe avaitation‘s market capital is the highest compared to other

competators. There is no P/E ratio available. And also there is no dividend yield percentage.
Quarterly sales is the highest compared to other peers. ROCE percentage is in negative.
Company quarterly sales is better.

59
Quarterly Results

Interpretation: The company‘s expense is high compared to all other years. OPM% is 0. Other
income earned in 2022 is the highest compared to last 4 years. Interest rate is high over a period
of time. Depreciation is increased at last year. Earning per share is in negative.

60
Profit & Loss

Interpretation: Sales is high compared to last few years. Interest rate is high compared to
previous year. Profit before tax is in negative. Tax is in negative because the there is loss in
sales. Net profit is also in negative. Earning per share is -159.94. dividend payout percentage is 0
percentage.

61
Balance Sheet

Interpretation: Share capital is constant for the last three years. Reserves are in negative so there
is no reserve. Borrowings is high in last year. Other liabilities is increased. Fixed asset is high
compared to the first year. The investment is high compared to previous year.

62
Shareholding Pattern

Interpretation: The above table is the shareholding pattern of Interglobe avaitation. Promotors
shareholding pattern is constant for few years. Public holding is 2.05 during the year 2022.

63
30 Days Moving Average

Interpretation: The above chart is the 30 days moving average of the interglobe avaitation. Since
the price of the shares is low during june 2020. And the price is increased during the year 2021 at
December. Since the P/E ratio is good it can be buy during certain period which makes us profit.

64
200 Days Moving Average

Interpretation: During the year 2019 at December the both line intercepts and also the 30 days
moving average is intercept below the 200 days moving average that means it‘s the selling point.
At December 2020 the yellow line intercept and it also indicate it is buying point.

65
 3. Ceat

CEAT Limited is an Indian multinational tyre manufacturing company owned by

the RPG Group. It was established in 1924 in Turin, Italy. It has a presence in global markets.
CEAT produces over 165 million tyres a year and manufactures tyres for passenger cars, two-
wheelers, trucks and buses, light commercial vehicles, earth-movers, forklifts, tractors, trailers,
and auto-rickshaws. The current capacity of CEAT tyres' plants is over 800 tonnes per day.

CEAT, established in 1958, is one of the largest tyre manufacturers and is one of
the fastest growing tyre companies in India. For the year 2020, CEAT ranked 35th amongst India‘s
100 best companies to work for by the Great Place to Work Institute and was recognised as one of
the best companies amongst the auto and auto component industry category. The company was
founded as Cavi Elettrici e Affini Torino (Electrical Cables and Allied Products of Turin) by
Virginio Bruni Tedeschi in 1924, in Turin, Italy. On 10 March 1958, the company was
incorporated as CEAT Tyres of India, in Mumbai. Initially, the company collaborated with
the Tata Group. In 1972, the company set up a research and development unit at Bhandup. In
1981, Deccan Fibre Glass Limited was merged with the company.

In 1982, RPG Group acquired the company, and in 1990, the company was
renamed as CEAT. In 1993, the company collaborated with Yokohama Rubber Company, to
manufacture radial tyres at their Nashik unit. In 1999, CEAT formed a joint-venture, named as
CEAT Kelani, with Asia MotorWorks (AMW) and Kelani Tyres, to manufacture and
market CEAT tyres in Sri Lanka. in 2006, CEAT Kelani commissioned their first Sri Lanka-
based radial-tyre manufacturing unit in Kalutara. In 2009, AMW exited the joint-venture.

66
Mission:

CEAT works toward a mission of imparting knowledge and skilled training to engineers
who are looking to excel in automation industry. In addition to it, CEAT dreams of inspiring
fresh graduate students and nurture them with qualities and proficiency which automation
industry needs.

Vision:

Not only we at, CEAT would like to become one of the top training providers in India but a
trusted name in the world of automation technology which could be seen as the pool of talented
professionals. Moreover, we want each and every student who imparts training from India to
become the change makers in the world of automation.

At present, training modules and practical exposure meets the standards

of automation industry and fulfills all the requirements which is needed to make a professional
fit for a place in an automation company. We are looking at the network of automation
companies across the globe which are masters in automation industry and make students exposed
to global standards and opportunities.

Diversified Revenue Profile:

Presently, trucks & buses category contributes majority of revenues at 33%,
followed by 2/3 wheelers (30%), Passenger cars (13%), Farm (9%), LCV (8%) & specialty category
contributes the rest 7% of revenues.

Revenue Breakup by Market:

Replacement business accounts for majority of revenues at 71%, followed by
sales to OEMs (17%) & Exports (13%).

Brand Building:
To continue with building the brand 'CEAT', the company is associated with sports
like Women's T20 & football clubs. It has appointed Amir Khan as its official brand sponsor as
well.

67
Objectives

 Market Cap₹ 4,088 Cr.

 Current Price₹ 1,011
 High / Low₹ 1,478 / 919
 Stock P/E52.0
 Book Value₹ 809
 Dividend Yield1.78 %
 ROCE6.08 %
 ROE2.38 %
 Face Value₹ 10.0

Pros:

 Company has been maintaining a healthy dividend payout of 18.30%.

Cons

 Company has low interest coverage ratio.

 The company has delivered a poor sales growth of 10.18% over past five years.
 Company has a low return on equity of 8.61% for last 3 years.
 Promoter holding has decreased over last 3 years: -3.97%

68
Peer comparison

Sector: Tyres Industry: Tyres

Interpetation: ceat tyre profit earning ratio is high compared to others. Dividend yield ratio is
1.78%. quarterly sales is the second highest. ROCE percentage is 6.08 which is low compared to
others. Quarterly profit percentage is in negative in all companies.

69
Quarterly Results

Interpretation: The above table is the quarterly result of ceat tyres limited. It shows the operating
profit is good compared to other years. Other income is low compared to others. Interest rate is
higher than the other years. Tax percentage is low over a period of time. And EPS is 6.24.

70
Profit & Loss

Interpretation: sales is more over the years but expenses are also increased. Other income is the
second highest in the table. Net profit is low 71 which is low. Depreciation in 2022 is highest
435. Dividend payout percentage is 17%. Earnings per share is 17.60.

71
Balance Sheet

Interpretation: Share capital is constant over 8 years. Other liabilities is increased in the last few
years. Other assets are increased over a period of time. Investment is low compared to previous
year. Total assets and liabilities are increased compared with all the years.

72
Shareholding Pattern

Interpretation: promotors holding is constant on an average of 2 months. Government holdings

are 0 for 9 months. Public holding is higher in march 2022.

73
50 Days Moving Average

Interpretation: A 30-days moving average is an essential part of moving averages and technically
defines the movement of stock prices over 30 days. It is a short-term technical indicator which
is the average of the closing price of a particular stock over 30 days. In june 2020 the price of the
stock is low.

74
200 Days Moving Average

Interpretation: The 200-day moving average is represented as a line on charts and represents the
average price over the past 200 days (or 40 weeks). The moving average can give traders a sense
regarding whether the trend is up or down, while also identifying potential support or resistance
areas.

75
 4. Trident

In the early years of the great Indian economic liberalisation when India had stepped
on the economic accelerator and multiple waves of transformation were sweeping across its
states, a young, first- generation entrepreneur, Padma Shri Rajinder Gupta, sowed the first seeds
of industry on the fertile lands of Punjab. It was the birth of Trident Group.

The group began with a solitary unit making high-quality yarn. However, in due
course, the group catapulted to become the largest manufacturer of terry towels and one of the
largest integrated home textile manufacturers in the world; a feat nonpareil.

Today, we have travelled far beyond being a home textile manufacturer, by

successfully diversifying into paper, chemicals, energy and more.

From Punjab to the homes of millions of customers across 100 countries, Trident
is on a verge of becoming the most trusted brand that takes conscious care of its customers,
employees and all stakeholders, and treats them ‗the best.

Trident Limited, the flagship company of the Trident Group, is a leading

manufacturer of yarn, Bath Linen, Bed Linen and wheat straw-based paper, Chemicals and Captive
Power. Currently, the company has manufacturing facilities in Barnala (Punjab) and Budhni
(Madhya Pradesh)

76
Mission:

Growth with Excellence‖ is our motto. We as a group believe in growing at all levels
ensuring excellence in our respective job roles

Vision:

Having more than 20 years of hard-core organized retail exposure in the city of
Ahmedabad, we aim at being the no. 1 retail powerhouse of the city with a kitty of leading
brands in respective segments.

Society has played a major role in our growth so far, and we would like to give it back to
them with our various Corporate Social Responsibility initiatives

Products

 Yarn (26% of Revenues): 100% cotton combed yarn, Slub yarn, Open-End yarn, Blended
yarn, etc.
 Home Textiles (54% of Revenues): It includes Bath and Bed linen. Some of the products are
Comforters, Solid/ Printed Sheets, Decorative pillows, etc.
 Paper (20% of Revenues): Includes Branded copiers, Maplitho paper, Bible and offset
printing paper.
 Chemicals: North India‘s largest commercial and battery-grade sulphuric acid manufacturer

Leadership

Largest Manufacturer of terry towels in the world. World‘s largest wheat straw-based paper
manufacturer. Forward & Backward integration of operation. Trident is the second-largest player in
home textiles and the third-largest yarn manufacturer in India

77
Objectives:

 Market Cap₹ 23,339 Cr.

 Current Price₹ 45.8
 High / Low₹ 70.9 / 15.6
 Stock P/E30.8
 Book Value₹ 7.00
 Dividend Yield0.79 %
 ROCE10.0 %
 ROE10.5 %
 Face Value₹ 1.00

Pros

 Company has reduced debt.

 Company is expected to give good quarter
 Company has been maintaining a healthy dividend payout of 49.32%

Cons

 Stock is trading at 6.54 times its book value

 The company has delivered a poor sales growth of 4.28% over past five years.
 Company has a low return on equity of 11.57% for last 3 years.
 Company might be capitalizing the interest cost

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Peer comparison

Sector: Textiles Industry: Textiles - Products

Interpretation: Trident‘s market capital is highest compared to others. Quarterly sales is highest.
ROCE percentage is less except swan energy. CMP is low compared to others. Trident is more
effective company.

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Quarterly Results

Interpretation: Trident‘s sale for the month December 2021 is increased. The expenses are also
increased over a period of time. Other income is in negative. Depreciation is decreased compared
with previous 12 months. Interest is also decreased compared with previous year.

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Profit & Loss

Interpretation: sales is increased along with the expenses so that operating profit also increased.
OPM percentage is the highest in the last year. Net profit is increased over the period. Earning
per share is 0.68. profit before tax for the last year is 445.

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Balance Sheet

Interpretation: share capital for the Trident is constant for the past 6 years. Reserves are also
increased. Borrowings is reduced which is good for the company. Total liabilities is increased.
Fixed asset is also increased. Investment is decreased.

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Shareholding Pattern

Interpretation: Promotors holds more share than any others. Government doesn‘t hold any of the
share. Public holds 22.13% shares. Others share holding is increased over six months.

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30 Days Moving Average

Interpretation: A 30-days moving average is an essential part of moving averages and technically
defines the movement of stock prices over 30 days. It is a short-term technical indicator which
is the average of the closing price of a particular stock over 30 days. from October 2021 the price
of the share has been increased.

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200 Days Moving Average

Interpretation: The 200-day moving average is represented as a line on charts and represents the
average price over the past 200 days (or 40 weeks). The moving average can give traders a sense
regarding whether the trend is up or down, while also identifying potential support or resistance
areas. The two lines does not intercept so that there is no buying and selling point.

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 5. Indus Tower

Indus Towers Limited is an independently managed company offering

passive infrastructure services to telecom operators and other wireless services providers such as
broadband service providers. Incorporated in November 2006, Indus Towers Limited has been
promoted under a joint venture between entities of Bharti Group including Bharti
Infratel (rendering telecom and tower infrastructure services in India under the brand
name Airtel and Bharti Infratel Limited respectively) and Vodafone Idea Limited (rendering
telecom services under the brand name Vodafone and Idea) to render passive infrastructure
services to telecom service providers.

Indus Towers Limited has over 172,094 towers and 314,106 co-locations and a
nationwide presence covering all 22 telecom circles, It has the widest coverage in India and has
already achieved 288,013 tenancies, a first in the telecom tower industry globally.Indus Towers
Limited is formed by the merger of Bharti Infratel Limited and Indus Towers. This combined
strength makes Indus Towers one of the largest telecom tower companies in the world. Some of
its major customers are Airtel, Bharti Hexacom, Vodafone Idea Limited and Reliance Jio.

Indus Towers Limited has over 185,447 towers and 335,791 co-locations (as on 31st
March 2022) and a nationwide presence covering all 22 telecom circles. Indus‘ leading
customers are Bharti Airtel (together with Bharti Hexacom), Vodafone Idea Limited and
Reliance Jio Infocomm Limited, which are the leading wireless telecommunications service
providers in India by revenue

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Vision:

Chief Executive Officer Indus Towers Limited Keeping in line with our vision
―Transforming lives by enabling communication‖, Indus Towers drives a business connect by
transformation the communications infrastructure across India.

High Customer Concentration:

The company's customers are Bharti Airtel, Vodafone Idea Ltd and Reliance Jio Infocomm
Limited. Due to massive consolidation and exits in the Indian telecom industry, the tenancy ratio of
the company has declined from 2.3 times in 2018 to 1.8 times in 2021.

Pre-Merger Details:
The company (Bharti Infratel) held 42% stake in Indus Towers Ltd before it merged with it.
It had an economic interest in ~97,000 towers before the merger.

Merger with Indus Towers:

Bharti Infratel merged with Indus Towers on 19th November 2020.
As per the scheme, the company issued ~76 crore equity shares to the various entities of Vodafone
Group and ~8.7 crore equity shares to P5 Asia Holding Investments Ltd aggregating to 28% and 3%
respectively in the post-issue share capital of the company.
The equity capital of the company increased from ₹1850 crores to 2695 crores post the merger
Vodafone Idea Ltd received cash consideration of ~3,760 crores for its 11.15% stake in Indus
Towers as it was elected/ decided by the same.
The name of the company was changed to Indus Towers Ltd as per the scheme of amalgamation

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Objectives:

 Market Cap₹ 54,020 Cr.

 Current Price₹ 200
 High / Low₹ 333 / 181
 Stock P/E8.48
 Book Value₹ 82.2
 Dividend Yield10.0 %
 ROCE25.0 %
 ROE33.5 %
 Face Value₹ 10.0

Pros

 Company is expected to give good quarter

 Company has delivered good profit growth of 22.21% CAGR over last 5 years
 Company has a good return on equity (ROE) track record: 3 Years ROE 27.24%
 Company has been maintaining a healthy dividend payout of 82.96%

CONS

 Promoter holding has decreased over last quarter: -2.36%

 Company might be capitalizing the interest cost
 Promoters have pledged 31.18% of their holding.
 Debtor days have increased from 70.99 to 92.95 days.

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Peer comparison
Sector: Telecomm Equipment & Infra Service Industry: Transmisson Line
Towers / Equipment

Interpretation: there is only two companies are there is these sector. Price earning ratios is less
compared to the other company which is good to buy these share. Sales is more when compared
to Suyog telematics. Dividend yield ratio is 10.4%.

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Quarterly Results

Interpretation: sales is more march 2022. Expenses is less compared to previous year. Operating
profit is more in the last year. OPM% is 57% which is high compared to last four years.
Depreciation is increased. Tax percentage is constant for last two years. Earning per share is high
during the last year.

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Profit & Loss

Interpretation: Sales is increased in march 2022. Expenses are also increased double the previous
year. Profit before tax is also doubled the previous year. Depreciation is increased way more than
the previous year. Dividend payout% is decreased. Net profit is 2 times more than the previous
year. Tax percentage is 24%.

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Balance Sheet

Interpretation: Share capital is constant for the last two years. Reserves are more than the
previous year. Borrowings are reduced compared to last year. Total liabilities is increased. Fixed
asset is increased. There is no Investment in the last year. Other assets are increased.

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Shareholding Pattern

Interpretation: Promotors holds more share than any others. Government doesn‘t hold any of the
share. Public holds 1.33% shares. Others share holding is decreased over previous year.

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30 Days Moving Average

Interpretation: A 30-days moving average is an essential part of moving averages and technically
defines the movement of stock prices over 30 days. It is a short-term technical indicator which
is the average of the closing price of a particular stock over 30 days. From December 2020 the
price of the share has been increased

94
200 Days Moving Average

Interpretation: The 200-day moving average is represented as a line on charts and represents the
average price over the past 200 days (or 40 weeks). The moving average can give traders a sense
regarding whether the trend is up or down, while also identifying potential support or resistance
areas. The two lines does not intercept so that there is no buying and selling point.

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 CHAPTER 5

FINDINGS AND CONCLUSION

1.6 FINDINGS, SUGGESTION AND CONCLUSION

Findings:

Here the researcher had considered 5 companies listed in NSE, and used the three
technical tools for analysis such as Moving average, Price Earning ratio, Average
Directional Index.

❖ From the study it is found that technical tools used in the study behaves

differently with different companies.

❖ It is found that the traders who enter the market at consolidation stage bags more

returns when the market is on strong trend.

❖ The technical tool Moving average was applied for all five selected companies,

it performed better on Ceat, Indus Tower, Trident ltd.

❖ The technical tool ADX was applied on all five selected companies, it performed

better on Ceat, Indus Tower, Tridend ltd.

❖ The technical tool Price Earning ratio was applied for all five selected companies,

it performed better on all the companies except Punjab National Bank.

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Suggestion:

❖ It is suggested to the trader/ investor to have basic knowledge of the tools,

trends and patterns is a must before investing in the stock market.

❖ From the analysis it can be suggested to the investor to invest in Tridend and

Ceat.

❖ It is suggested to the investor that by using more than one tool for getting more

accurate result.

❖ Those who wish to invest into very short-term/ short term as a trader it is always

suggest them to use the technical analysis tool for better returns.

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Conclusion:

The attempts have been made to understand the stock listed in National stock
exchange of India. The performance of the five selected has become increased after the
pandemic. It has become normal after the pandemic but except PNB.
Based on the objective framed in research has been identified the
performance of the technical tools such as the Moving average, ADX and the Price Earning
ratio. The price movements are combination of open, high, low or closing price over a
period of time. The analysis tool is used mainly for short term and it can get maximum profit
if used correctly.
From the research done based on technical analysis tools it is found that
the Moving Average gives accurate result when used with the ADX or the price earning
ratio. The ADX give the direction of the trend movement and the PE gives the price earning
from the share. As the success rate of Moving average is more than half and can give
excellent results when used with proper knowledge of the particular stock.
Based on the study the researcher wants to conclude that the
selected companies give strong result when used with two or more technical tools. However,
to gain maximum profit proper knowledge of the market is necessary.

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www.indianresearchjournals.com

Websites:

1. https://www.nseindia.com
2. https://www.screener.in/
3. https://www.investopedia.com
4. www.goole.com
5. www.wikipedia.com

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