Name: Kaaira Singhania

Roll No.: 074

Section: A1
Subject: SAPM(COM601AF)
Assignment No.: 3

Eicher Motors Ltd.

Eicher Motors Ltd, incorporated in 1982, is the flagship company of the Eicher Group in India
and a leading player of the Indian automobile industry.
The company is listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
in India. It has been part of the NSE’s benchmark Nifty 50 Index since April 1,2016.

The above graph represents the company’s stock trend over the last 10 years. The major
points of analysis are:

1. Engulfing Candlestick- Engulfing candles tend to signal a reversal of the current trend
in the market. This specific pattern involves two candles with the latter candle
‘engulfing’ the entire body of the candle before it. The engulfing candle can be bullish
or bearish depending on where it forms in relation to the existing trend. The image
below presents the bullish engulfing candle. Engulfing bearish can be observed on
17.01.2019, 23.05.2019 and 13.08.2019. Engulfing bullish can be observed on
17.01.2018, 13.09.2018 and 10.12.2018.
2. Doji Candlestick- It forms when a security's open and close are virtually equal for the
given time period and generally signals a reversal pattern for technical analysts. Alone
a doji is neutral signal, but it can be found in reversal patterns such as the bullish
morning star and bearish evening star. A doji star bearish can be observed on
19.05.2020, evening doji on 06.03.2019 and morning doji on 26.12.2018.
3. Three Black Crows- Three black crows is a phrase used to describe a bearish
candlestick pattern that may predict the reversal of an uptrend. This pattern consists of
three consecutive long-bodied candlesticks that have opened within the real body of the
previous candle and closed lower than the previous candle. It can be observed on
21.01.2019, 22.09.2018, 28.02.2019 & 21.09.2018.
4. Falling Three Methods- Falling three methods occurs when a downtrend stalls as bears
lack the impetus, or conviction, to keep pushing the security's price lower. This leads to
a counter move that is often the result of profit-taking and, possibly, an attempt by
some eager bulls anticipating a reversal.It can be observed on 14.02.2020, 30.07.2019.
5. Advance Block Bearish- The pattern is a three-candle bearish setup that is considered
to be a reversal pattern, a suggestion that price action is about to change from what had
been an upward trend to a downward trend in relatively short time frames. It can be
observed on 01.06.2020, 08.08.2017, 02.01.2017.
6. Three Inside Up-Three inside up and three inside down are three-
candle reversal patterns that appear on candlestick charts. The pattern requires three
candles to form in a specific sequence, showing that the current trend has lost
momentum and a move in the other direction might be starting. The up version of the
pattern is bullish, indicating the price move lower may be ending and a move higher is
starting. The down version of the pattern is bearish. It shows the price move higher is
ending and the price is starting to move lower. It can be observed on 31.05.2021,
07.05.2021 and 06.09.2019.
7. Homing Pigeon- It is a candlestick pattern where one large candle is followed by a
smaller candle with a body is located within the range of the larger candle's body. It
can be observed on 21.08.2019, 07.19.2016.
8. Dark Cloud Cover- It is a bearish reversal candlestick pattern where a down candle
opens above the close of the prior up candle and then closes below the midpoint of the
up candle. It can be observed on 04.10.2019, 30.07.2018 and 19.09.2017.
9. Moving Average- It is a simple, technical analysis tool. It is a stock indicator that is
commonly used in technical analysis. The reason for calculating the moving average of
a stock is to help smooth out the price data by creating a constantly updated
average price. The blue line in the graph indicates the moving average. We can observe
an uptrend from 2011-2017 and a downtrend after 2017.
10. Exponential moving averages- It is a weighted average that gives greater importance to
the price of a stock on more recent days, making it an indicator that is more responsive
to new information. It is designed to improve on the idea of a simple moving average
by giving more weight to the most recent price data, which is considered to be more
relevant than older data. The pink line in the graph indicates the exponential moving
average.