Summer Internship Project (SIP) on

ANALYSIS OF EQUITY MARKETS IN BANKING

SECTOR

Submitted in partial fulfilment for the award of the

Degree of Post Graduate Diploma in Management (PGDM)
(AICTE)

Submitted By
Miss. SWAPNALI BHAVSAR
(Roll No. 173)

Under the Guidance of

Prof. K. V. Ramkrishnan

2020-22
VES Business School, Mumbai
 CERTIFICATE

This is to certify that the project titled, “An Analysis of

Equity Markets in Banking Sector” is successfully completed
by Miss. Swapnali Bhavsar during the 1st Year, in partial
fulfillment of the PGDM recognized by AICTE for the
academic year 2020-22 through VES Business School.

This project work is original and not submitted earlier for

the award of any degree diploma or associate ship of any other
University/ Institution.

Swapnali Bhavsar
14/08/2022

K. V. Ramkrishnan

1
 DECLARATION

I, Swapnali Bhavsar, PGDM student; hereby declare that

the Project “An Analysis of Equity Markets in Banking
Sector” submitted by me for the year 2020-22 to the VES
Business School is a bonafide work undertaken by me under
the guidance of Prof. K. V. Ramkrishnan and it is not
submitted to any other University or Institution for the award
of any degree diploma certificate or published any time
before.

Swapnali Bhavsar
Roll No. 173

Student’s Signature

2
 ACKNOWLEDGEMENT

First of all, I would like to take this opportunity to thank the AICTE for
giving me a chance to do this project.

I wish to express my heartfelt gratitude to the following individuals who

have played a crucial role in the research for this project. Without their
active cooperation, the preparation of this project could not have been
completed within the specified time limit.

The first person I would like to acknowledge is Prof. K. V. Ramkrishnan

(Project Guide & Mentor) who supported me throughout this project with
utmost cooperation and patience. I am very much thankful to them for
sparing their precious time for me and for helping me in doing this project.

Next, I would like to thank our Director, Dr. Sachin Deshmukh for
providing the necessary facilities required for the completion of the
project.

Lastly, I would like to thank every person who directly or indirectly helped
me in the project, especially my parents and peers who supported me
throughout my project.

3
 TABLE OF CONTENT

SR. NO. PARTICULARS PG. NO.

1 Executive Summary 6

2 About the company

2.1 Genesis of the company & its vision and values 7

2.2 Products & Services 8

2.3 Position in Industry 9

2.4 Shareholder’s Pattern 10

2.5 Company Financials 11

3 Introduction

3.1 Types of Financial Markets 13

3.2 Equity Market 15

3.3 Banking Sector 16

4 On the Job Training

4.1 Key Results Area 17

4.2 Target Assigned 17

4.3 Technical/ Soft Skills achieved 18

5 Analysis on Banking Sector

5..1 SWOT 19

5.2 PESTLE 19

6 Review of Literature 20

7 Research Methodology

4
 7.1 Objectives & Scope 21

7.2 Fundamental Analysis 21

7.3 Technical Analysis 24

8 Data Analysis & Interpretation 31

9 Conclusion 35

10 References 36

5
 1. Executive Summary

The banking industry is one of the oldest sectors. The Banking Industry has proved to
be one of the widespread and widely acknowledged industries. Banks today play a critical and
indispensable role in society, from inculcating the habit of savings to helping people with
financial instruments. Banking teaches us the value of money, gives us access to loans to
reach our dreams, and provides a host of other services related to credit cards, savings, and
bonds. It’s because of banking that we’ve seen such economic growth at home and
worldwide. Supply and demand have fostered this growth and also improved financial trade,
financial stability, and financial security.
This report is made on the basis of my Summer Internship at HDFC Life which is
divided in two parts: 1) Stock Trading and 2) Sales.
First we started with the basics of trading which is, buying, selling and learning
concepts like stop loss, trigger price, limit price. Also the stocks are executed either at CNC
(cash n carry) or MIS (Margin Intraday Square-off). Later, short-term strategies were given
which must be analysed and traded. Along with the technical knowledge, fundamental
knowledge such as analysis using SWOT and PESTLE and important ratios in the banking
sector were given to research. Further, long term strategies such as: Rounding bottom, Double
top, Head and shoulder, Cup with handle and Double bottom were also given for research
purposes.
Post learning we were asked to interact with customers and make them aware of the
products and services at HDFC Life.
This report provides us with detailed knowledge about the company, the role that I
played and how they helped me learn new things along with work ethics and environment.
Detailed research along with examples are given in the following report.

6
 2. About the Company
2.1 Genesis of the company and its vision and values:
HDFC Life is one of India's leading life insurance companies, offering a range of
individual and group insurance solutions that meet various life stage needs of customers. The
products include Protection, Pension, Savings & Investments, Health, etc.
HDFC Life Insurance Company Limited is a joint venture between HDFC Ltd.,
India’s leading housing finance institution and Standard Life Aberdeen, a global investment
company.
Established in 2000, HDFC Life is a leading long-term life insurance solutions
provider in India, offering a range of individual and group insurance solutions that meet
various customer needs such as Protection, Pension, Savings, Investment, Annuity and
Health. As on June 30, 2021, the Company had 37 individual and 13 group products in its
portfolio, along with 7 optional rider benefits, catering to a diverse range of customer needs.
HDFC Life continues to benefit from its increased presence across the country having
a wide reach with 390 branches and additional distribution touch-points through several new
tie-ups and partnerships. The count of their partnerships is around 300, comprising traditional
partners such as NBFCs, MFIs and SFBs, and including new-ecosystem partners. The
Company has a strong base of financial consultants.
Values are the most critical elements that reflect the conduct of an organisation. Below are the
vision, mission and values, the pillars that support the success of HDFC Life.

Vision
HDFC Life is one of the most successful and admired life insurance companies, which
means that we are the one of the most trusted companies, the easiest to deal with, offer the
best value for money and set the standards in the industry.
'The most obvious choice for all'
Values
Our values that we observe at work:
Excellence
People Engagement
Integrity
Customer Centricity
Collaboration

7
2.2 Products & Services

HDFC Life has a range of life insurance plans ranging from Term Plans to Unit
Linked plans with great features and benefits. All these plans come at competitive rates of
premiums and meet all types of requirements of the customers. HDFC Life's products include
Protection, Pension, Savings, Investment, Health along with Children and Women plans. The
company also provides an option of customizing the plans, by adding optional benefits called
riders, at an additional price. The Company has categorised its product portfolio covering five
principal segments across the individual and group categories namely participating, non-
participating protection term, non-participating protection health, other non participating and
unit-linked insurance products. The company currently has 37 retail and 11 group products,
along with 6 optional rider benefits (as on 24 March 2020).

● Protection Plans – insurance plans that provide protection and financial stability to
the family in case of any unforeseen events.
● Click2Protect life is their online term plan.
● Launched CSC Suraksha to be sold exclusively through the Common Services
Centre network.
● Click2Invest is their online ULIP investment plan.
● Health Plan – offers financial security to meet health related contingencies.
● Savings & Investment plans – These plans help in investment to achieve financial
goals.
● Retirement plans – financial security for life post retirement.
● Women's plans – plans catering to different financial needs of women.
● Children's plans – plans meant to secure children's future.
● Rural & social Plans – meant specifically for rural customers.
● Click2Retire completed their Click2 portfolio.
● ULIP Investment with more funds.

8
2.3 Position in Industry

HDFC Life is one of the leading long- term life insurance solutions providers in India.
The company’s consolidated total assets stood at ₹132,223.86 crore as of 2020. HDFC Life
currently has a network of 421 branches and is present in 980+ cities, villages and towns in
India and is supported by 16,544 employees.

9
2.4 Shareholder’s Pattern

Holder's Name No of Shares % Share Holding

Total No. Of Shares 2022140296 100%

Promoters 1009965325 49.95%

Foreign Institutions 527036038 26.06%

Non- Banks MF 77490731 3.83%

Others 133669232 6.61%

General Public 153686512 7.6%

Financial Institutions 41058519 2.03%

Foreign Promoter 78694105 3.89%

GDR 539834 0.03%

2.5 Company Financials

The P&L statement gives us information about the company’s profitability and
the balance sheet gives us information about the assets, liabilities, and shareholders
equity. The P&L statement discusses the profitability for the financial year under

10
consideration. However, the balance sheet is prepared on a flow basis, meaning, it
has financial information about the company right from the time it was incorporated.
Thus while the P&L talks about how the company performed in a particular financial
year; the balance sheet, on the other hand, discusses how the company has evolved
financially over the years. Following is the balance sheet of HDFC Life Insurance
Company for the past 3 years:

BALANCE SHEET OF HDFC LIFE INSURANCE CO. LTD.

(in Rs. Cr.)

Particulars MAR 21 MAR 20 MAR 19

EQUITIES AND LIABILITIES:

1) Shareholder’s Funds

Equity Share Capital 2,020.94 2,018.80 2,017.38

Reserves and Surplus 9,171.88 4,782.23 3,624.83

Total Shareholders Funds 11,192.83 6,801.03 5,642.21

2) Non-Current Liabilities

Long Term Borrowings 600.00 0.00 0.00

Other Long Term Liabilities 90,362.88 69,583.11 58,733.14

Long Term Provisions 70,963.52 50,844.19 60,521.25

Total Non-Current Liabilities 161,926.40 120,427.30 119,254.40

3) Current Liabilities

Other Current Liabilities 6,440.04 4,913.88 5,060.13

Short Term Provisions 80.01 76.05 58.71

Total Current Liabilities 6,520.06 4,989.93 5,118.84

TOTAL CAPITAL & 179,641.26 132,223.85 130,015.84

11
 LIABILITIES (1+2+3)

ASSETS:
1) Non-Current Assets

Tangible Assets 327.28 322.30 323.69

Intangible Assets 0.00 0.00 0.00

Capital Work-In-Progress 14.24 8.41 10.19

Fixed Assets 341.52 330.71 333.88

Non-Current Investments 173,820.96 127,255.71 112,693.76

Long Term Loans And Advances 424.05 299.05 79.59

Other Non-Current Assets 0.00 0.00 1,072.31

Total Non-current Assets 174,586.54 127,885.48 114,179.54

2) Current Assets

Current Investments 0.00 0.00 11,771.80

Trade Receivables 0.00 0.00 0.00

Cash And Cash Equivalents 1,099.26 690.75 1,244.45

Short Term Loans And Advances 3,955.46 3,647.63 2,820.05

Other Current Assets 0.00 0.00 0.00

Total Current Assets 5,054.72 4,338.37 15,836.30

TOTAL ASSETS 179,641.26 132,223.85 130,015.84

12
 3. Introduction
Financial markets are a type of marketplace that provides an avenue for the sale and
purchase of assets such as bonds, stocks, foreign exchange, and derivatives. Often, they are
called by different names, including ‘capital market’, but all of them still mean one and the
same thing. Simply put, businesses and investors can go to financial markets to raise money
to grow their business and to make more money, respectively.

3.1 Types of Financial Markets

1. Stock market
The stock market trades shares of ownership of public companies. Each share comes with a
price, and investors make money with the stocks when they perform well in the market. It is
easy to buy stocks. The real challenge is in choosing the right stocks that will earn money for
the investor. There are various indices that investors can use to monitor how the stock market
is doing, such as the moneycontrol. When stocks are bought at a cheaper price and are sold at
a higher price, the investor earns from the sale.
2. Bond market
The bond market offers opportunities for companies and the government to secure money to
finance a project or investment. In a bond market, investors buy bonds from a company, and
the company returns the amount of the bonds within an agreed period, plus interest.
3. Over-the-counter Market
Over-the-counter markets are those in which participants trade directly between two parties,
without the use of a central exchange or other third party. OTC markets do not have physical
locations or market-makers. Some of the products most commonly traded over-the-counter
include bonds, derivatives, structured products, and currencies.
4. Commodities market
The commodities market is where traders and investors buy and sell natural resources or
commodities such as corn, oil, meat, and gold. A specific market is created for such resources
because their price is unpredictable. There is a commodities futures market wherein the price
of items that are to be delivered at a given future time is already identified and sealed today.
5. Derivatives market
Such a market involves derivatives or contracts whose value is based on the market value of
the asset being traded. The futures mentioned above in the commodities market is an example
of a derivative.

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 6. Cryptocurrency
Cryptocurrencies are systems that allow for secure payments online which are denominated in
terms of virtual ‘tokens’. Any investor can purchase cryptocurrency through crypto exchanges
like Coinbase, Cash app, and more. Cryptocurrencies allow for secure payments online which
are denominated in terms of virtual ‘tokens’, which are represented by ledger entries internal
to the system. Investors can make money with cryptocurrency by mining Bitcoin, or simply
selling their Bitcoin at a profit.
7. Forex Market
The forex market allows participants, such as banks and individuals, to buy, sell or exchange
currencies for both hedging and speculative purposes. The foreign exchange (forex) market is
the largest financial market in the world and is made up of banks, commercial companies,
central banks, investment management firms, hedge funds, retail forex brokers, and investors.
The forex market is made up of two levels- the interbank market and the over-the-counter
(OTC) market. There are three key types of forex markets- spot, forward, and futures.
8. Money Market
The money market is a component of the economy which provides short-term funds. The
money market deals in short-term loans, generally for a period of a year or less. As short-term
securities became a commodity, the money market became a component of the financial
market for assets involved in short-term borrowing, lending, buying and selling with original
maturities of one year or less. Trading in money markets is done over the counter and is
wholesale.

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3.2 Equity/ Stock Market
A stock market, equity market, or share market is the aggregation of buyers and sellers
of stocks (also called shares), which represent ownership claims on businesses; these may
include securities listed on a public stock exchange, as well as stock that is only traded
privately, such as shares of private companies which are sold to investors through equity
crowdfunding platforms. Investment in the stock market is most often done via stock
brokerages and electronic trading platforms. Investment is usually made with an investment
strategy in mind.
The stock market refers to the collection of markets and exchanges where regular
activities of buying, selling, and issuance of shares of publicly-held companies take place.
Such financial activities are conducted through institutionalized formal exchanges or over-
the-counter (OTC) marketplaces which operate under a defined set of regulations. There can
be multiple stock trading venues in a country or a region which allow transactions in stocks
and other forms of securities. Though it is called a stock market or equity market and is
primarily known for trading stocks/equities, other financial securities - like exchange traded
funds (ETF), corporate bonds and derivatives based on stocks, commodities, currencies, and
bonds are also traded in the stock markets.
As a primary market, the stock market allows companies to issue and sell their shares
to the common public for the first time through the process of initial public offerings (IPO).
This activity helps companies raise necessary capital from investors. It essentially means that
a company divides itself into a number of shares (say, 20 million shares) and sells a part of
those shares (say, 5 million shares) to the common public at a price.

Functions of a Stock Market

➔ A stock market primarily serves the following functions:
➔ Fair Dealing in Securities Transactions
➔ Efficient Price Discovery
➔ Liquidity Maintenance
➔ Security and Validity of Transactions
➔ Support All Eligible Types of Participants
➔ Investor Protection
➔ Balanced Regulation

15
Stock Market Participants
Along with long-term investors and short term traders, there are many different types of
players associated with the stock market. Each has a unique role, but many of the roles are
intertwined and depend on each other to make the market run effectively.
➔ Stockbrokers
➔ Portfolio managers
➔ Investment bankers
➔ Custodian and depot service providers
➔ Market maker

3.3 Banking Sector

The banking sector is an industry and a section of the economy devoted to the holding of
financial assets for others and investing those financial assets as a leveraged way to create
more wealth. The sector also includes the regulation of banking activities by government
agencies, insurance, mortgages, investor services, and credit cards.

The banking industry is the foundation of the financial services group. It is most concerned
with direct saving and lending, while the financial services sector incorporates investments,
insurance, the redistribution of risk, and other financial activities. Banking services are
provided by large commercial banks, community banks, credit unions, and other entities.
Banks earn revenue primarily on the difference in the interest rates charged for credit
accounts and the rates paid to depositors. Financial services like these primarily earn revenue
through fees, commissions, and other methods like the spread on interest rates between loans
and deposits.

Regulation of Banking Activities

Because banks are the underpinning of a modern economy, governments naturally have laws
in place to prevent banks from engaging in dangerous activities that could threaten the
economy. These laws are often enacted after hard financial lessons, such as the creation of the
Federal Deposit Insurance Corporation (FDIC) in 1933 after the bank panics of the previous
50 years. However, such laws are campaigned against by banks and are sometimes removed,
and this has led to history repeating itself.

16
 4. On the Job Training
At HDFC Life, the selected interns were given a hands-on learning experience. Opportunities
like real-time Stock Market trading and sales of Insurance were given which were very
beneficial.
The assigned mentor handholds the interns at various learning points such as how to open a
demat a/c, basic concepts of trading, short term as well as long term patterns in equity along
with commodities & cryptocurrency. During the internship, I got the opportunity to learn the
market movement by studying fundamental and technical aspects of the selected sector. My
contribution to the company was that we were given the opportunity to sell Insurance policies
which benefited the company.

4.1 Key Results Areas

➔ Trading in the selected sector on daily basis
➔ Identifying the patterns formed and trade in them on day to day basis
➔ Learning 3 short term & 5 long term patterns
➔ Studying market movements

4.2 Target Assigned

Following are the worked assigned for the internship:
➔ Buy & sell stocks daily only in selected sector i.e. Banking.
➔ Share quantity must be only 1.
➔ Trading must be done in Large cap. companies only.
➔ Trade order must be MIS (margin intraday square-off).
➔ Use strategies: Bull 180, Bear 180 & ORB 45.
➔ Maintain an excel sheet with daily trade information along with screenshots.
➔ Analyse which stock is better on the basis of fundamentals.
➔ Communicate with clients and make them aware of benefits by Life Insurance.
➔ Try to sell 1 insurance.

17
4.3 Technical/ Soft Skills Required
➔ Analytical skills
➔ Research skills
➔ Management skills
➔ Approach to think new
➔ Communication skills
➔ Work ethics

18
 5. Analysis on Banking Sector
5.1 SWOT Analysis

5.2 PESTLE Analysis

19
 6. Review of Literature

K.S. Nemavathi & Dr. V.R Nedunchezhian, (2012) in their Study Technical Analysis the
researchers found that the selected securities had high fluctuations during the period to
accomplish the objectives set out for this research, the effective tools are used.

Dr. Sreemoyee Guha Roy (2013) in her study Equity Research: Fundamental and Technical
Analysis, examines the economic environment, industry performance and company
performance before making an investment decision. The study arrived at a conclusion about
the decision making behavior of the investors.

Mrs.J. Nithya & Dr.G. Thamizhchelvan (2014) has found in their study The Effectiveness
of Technical Analysis in Banking Sector of Equity Market, aimed at undertaking technical
analysis of selected companies included in the CNX Nifty. The purpose of the study
demonstrates how technical analysis can be of valuable use for the investors in making their
investment decisions. Various analytical tools of technical analysis have been used for
forecasting stock prices.

P. Devika & Dr. S. Poornima (2015) found in their study of Fundamental Analysis as a
Method of Share Valuation in Comparison with Technical Analysis, envisages different trends
of the stock market and it relates the trends towards the usage of Fundamental and Technical
analysis.

Darshan Shivanand Gadag & Manas Mayur (2016) has founded in their study,
Understanding Technical Analysis: A Conceptual Framework, the stock market indicators
would help the investor to identify major market turning points. The indicators like Moving
averages and MACD is a significant technical analysis tool on any index or stock which helps
to understand the price behavior of the shares.

20
 7. Research Methodology
Research methodology means collecting, analyzing and interpreting the data.
The population of the selected banks is listed from NSE- Large cap and it is a secondary
data sample collection.
7.1 Objectives
➔ To select large cap stocks from the selected sector and trade.
➔ To understand the basics of equity research.
➔ To study the fundamental analysis of selected banks.
➔ To understand the technical analysis of selected banks.
➔ To understand the participation of the selected banks in the share market.
➔ To observe and compare the performance of the selected banks in the share market.
Scope
Scope of the study covers the banking sectors in India. There is a huge emerging issue of the
financial condition of the banking sector in India. But, study is only going to cover selected
nationalized five private banks and two public banks in India. The scope of the project is
limited to understanding the basics of fundamental analysis and technical analysis and
applying it to take a decision of investing in the banking sector.

7.2 Fundamental Analysis

Fundamental analysis of a business involves analyzing its financial statements and
health, its management and competitive advantages, and its competitors and markets. When
analyzing stock, futures contracts, or currency using fundamental analysis there are two basic
approaches one can use; bottom up analysis and top down analysis. The term is used to
distinguish such analysis from other types of investment analysis such as quantitative analysis
and technical analysis.
Fundamental analysis includes:
a. Economic analysis
b. Industry analysis
c. Company analysis
On the basis of these three analyses the intrinsic value of the shares are determined. This is
considered as the true value of the share. If the intrinsic value is higher than the market price it
is recommended to buy the share. If it is equal to market price then hold the share and if it is
less than the market price then sell the share.

21
We know how to read Financial Statements but the best way to analyze the financial
statements is by studying the ‘Financial Ratios’. The theory of financial ratios was made
popular by Benjamin Graham, who is popularly known as the fundamental analysis father.
Financial ratios help interpret the results and compare with previous years and other
companies in the same industry. A typical financial ratio utilizes data from the financial
statement to compute its value.

Following are some of the important ratios w.r.t. Banking Sector:

1) P/E ratio:
The Price to Earnings ratio is perhaps the most popular financial ratio. Everybody likes to
check the P/E of a stock. Because of the popularity, the P/E ratio is often considered the
‘financial ratio superstar’. P/E indicates how expensive or cheap the stock is trading at. Never
buy stocks that are trading at high valuations.
The P/E of a stock is calculated by dividing the current stock price by the Earning Per Share
(EPS).
Formula: P/E = Share price
EPS
Higher the EPS, better it is for its shareholders.

2) NPA’s
Gross Non- Performing Assets: GNPA is an absolute amount. It tells you the total value of
gross non-performing assets for the bank in a particular quarter or financial year as the case
may be.
Net Non- Performing Assets: NNPA subtracts the provisions made by the bank from the gross
NPA. Therefore net NPA gives you the exact value of non-performing assets after the bank
has made specific provisions for it. It gives us an idea of how much of the total advances is
not recoverable.
High NPAs may not be favourable for a bank. This is because they are assets that are not
performing. High NPAs mean that banks have too many loans that have become non-
functional or are not rendering any interest income to the bank.

3) CAR
Capital Adequacy Ratio is also known as Capital to Risk Assets Ratio, is the ratio of a bank's
capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a
reasonable amount of loss and complies with statutory Capital requirements.
The CAR provides shareholders with a better understanding of the risks a bank is taking with

22
the equity they provide. A bank that continually takes more risks than it can reasonably
sustain leaves potential shareholders with a sense their equity investments are more at risk. A
bank must maintain a professional level of risk management and sound lending practice to
attract the capital that acts as its first line of defense against loss, both expected and
unforeseen.
Formula: CAR = Tier 1 Capital - Tier 2 Capital
Risk Weighted Assets

4) CASA
A current account savings account (CASA) is aimed at combining the features of savings and
checking accounts to entice customers to keep their money in the bank. It pays very low or no
interest on the current account and an above-average return on the savings portion.
Formula: CASA = Deposits in Current & Saving Account
Total Deposit
A higher ratio means a larger portion of a bank’s deposits are in current and savings accounts,
rather than term deposit accounts. This is beneficial to a bank because it gets money at a
lower cost. Therefore, the CASA ratio is an indicator of the expense to raise funds and,
therefore, is a reflection of a bank’s profitability or likelihood of generating profit.

5) NIM
Net interest margin (NIM) is a measurement comparing the net interest income a financial
firm generates from credit products like loans and mortgages, with the outgoing interest it
pays holders of savings accounts and certificates of deposit (CDs). Expressed as a percentage,
the NIM is a profitability indicator that approximates the likelihood of a bank or investment
firm thriving over the long haul.
Formula: NIM = Interest received - Interest paid
Average Assets
A positive net interest margin suggests that an entity operates profitably, while a negative
figure implies investment inefficiency.

6) RoA
Return on Assets (RoA) evaluates the effectiveness of the entity’s ability to use the assets to
create profits. A well-managed entity limits investments in non-productive assets. Hence RoA
indicates the management’s efficiency at deploying its assets. Needless to say, the higher the
ROA, the better it is.
Formula: RoA = Net income z
Total Average Assets

23
7.3 Technical Analysis
Technical Analysis (also abbreviated as TA) is a popular technique that helps you
develop a point of view on a particular stock or index and helps you define the trade, keeping
in mind the entry, exit, and risk perspective. Like all research techniques, Technical Analysis
also comes with its own attributes, some of which can be highly complex. However,
technology makes it easy to understand.
Technical Analysis is a research technique to identify trading opportunities in the
market based on market participants’ actions. The actions of market participants can be
visualized, utilizing a stock chart. Over time, patterns are formed within these charts, and each
pattern conveys a certain message. The job of a technical analyst is to identify these patterns
and develop a point of view. Like any research technique, technical analysis stands on a
bunch of assumptions.
Candles can be classified as a bullish or bearish candle usually represented by green
and red candles. As mentioned earlier, one of the key assumptions in technical analysis is that
we rely on the fact that history tends to repeat itself. This probably is one of the most
important assumptions in Technical Analysis. It would make sense to explore this assumption
in greater detail at this juncture as candlestick patterns are heavily dependent on it.

Following are some short- term multiple candlestick patterns used with actual application:
1) Bull 180

Company: Kotak Mahindra Bank Date: 28/06/2021

Buy Price: 1731.85 Trigger/ Sell Price: 1736.85
Stop Loss: 1727 Profit: Rs. 5

24
 2) Bear 180

Company: Axis Bank Date: 201/07/2021

Sell Price: 749 Trigger/ Buy Price: 745.5
Stop Loss: 753 Profit: Rs. 3.5
3) ORB 45

Company: Indusind Bank Date: 04/08/2021

Buy Price: 1033 Trigger/ Sell Price: 1043
Stop Loss: 1025 Profit: Rs. 10

25
Following are some long- term patterns identified in equity, commodities and cryptocurrency:
1) Rounding bottom
Equity

Commodities

Cryptocurrency

2) Head & Shoulder

26
 Equity

Commodities

Cryptocurrency

3) Double top
Equity

27
 Commodities

Cryptocurrency

4) Cup with handle

Equity

28
 Commodities

Cryptocurrency

5) Double bottom
Equity

29
Commodities

Cryptocurrency

30
 8. Data Analysis & Interpretation
8.1 Capital Adequacy Ratio
Bank 2021 2020 2019 2018 2017

Kotak 22.26 18.00 17.00 18.00 17.00

HDFC 18.79 19.00 17.00 15.00 15.00

Indusind 17.38 15.04 14.16 15.00 15.00

Axis 19.12 17.53 16.00 17.00 15.00

ICICI 19.12 16.00 17.00 18.00 17.00

SBI 13.74 13.13 13.00 13.00 13.00

PNB 14.32 14.00 10.00 10.00 12.00

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8.2 Current Account Saving Account Ratio (CASA)

Bank 2021 2020 2019 2018 2017

Kotak 60.47 56.35 52.46 50.84 44.34

HDFC 46.07 42.18 42.35 43.48 48.03

Indusind 41.73 40.36 43.14 44.00 36.85

Axis 44.84 41.00 44.18 53.48 51.22

ICICI 46.16 44.83 48.77 51.32 49.90

SBI 45.40 44.17 -- 44.45 43.70

PNB 44.44 42.86 42.14 40.97 41.66

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8.3 Net Interest Margin Ratio

Bank 2021 2020 2019 2018 2017

Kotak 4.14 3.96 3.73 3.74 3.93

HDFC 3.85 3.79 3.97 3.88 3.94

Indusind 3.72 3.92 3.18 3.38 3.39

Axis 2.94 2.77 2.72 2.70 3.00

ICICI 2.95 2.91 2.64 2.48 2.64

SBI 2.51 2.59 2.50 2.27 2.36

PNB 2.42 2.10 2.21 -- 2.09

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8.4 Return on Assets Ratio

Bank 2021 2020 2019 2018 2017

Kotak 2.08 1.93 1.82 1.83 1.78

HDFC 1.76 1.72 1.72 1.67 1.70

Indusind 0.80 1.45 1.18 1.62 1.60

Axis 0.71 0.19 0.61 0.06 0.64

ICICI 1.16 0.69 0.34 0.68 1.03

SBI 0.46 0.47 0.05 -0.12 --

PNB 0.20 0.05 -1.21 -- 0.16

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 9. Conclusion

Equity analysis is the process of analysing sectors and companies to give advice to
professional fund managers and private clients on which shares to buy.
Sell-side analysts work for brokers who sell shares to the investors mainly for private clients.
Buy-side analysts work for fund management firms.

Equity analysis is to provide information to the investors in the markets. An efficient

market relies on information. Banks were considered as a backbone to the financial system
and play an important role in economic development of a nation. They act as intermediaries in
channelizing funds from surplus units to deficit units to the fully utilization of the funds.

An efficient banking system of nations has significant positive externalities which

increase the efficiency of economic transactions in general. The financial system's
contribution to the economy depends upon the quantity and quality of its service and
efficiency with which it provides them. Financial System of any country consists of financial
markets, financial intermediation and financial instruments or financial products. The term
"finance" in our simple understanding is perceived as equivalent to 'Money'. The word
"system", in the term "financial system", implies a set of complex and closely connected or
interlinked institutions, agents, practices, markets, transactions, claims, and liabilities in the
economy. The financial system is concerned about money, credit, and finance-the three terms
are intimately related yet are somewhat different from each other. The Indian financial system
consists of the financial market, financial instruments, and financial intermediation.

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 10.References

http://www.hdfclife.com
https://en.wikipedia.org/wiki/HDFC_Life
https://www.ibef.org/industry/insurance-sector-india.aspx
https://economictimes.indiatimes.com/hdfc-life-insurance-company-ltd/
shareholding/companyid-3068.cms
https://corporatefinanceinstitute.com/resources/knowledge/trading-
investing/financial-markets/
https://www.investopedia.com/terms/c/cryptocurrency.asp
https://www.investopedia.com/terms/f/financial-market.asp
https://zerodha.com/varsity
https://www.moneycontrol.com/

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