Tech Ana FMCG

Technical Analysis of Selected Indian FMCG Companies Stocks
Executive Summary
The main plot for my project is to study Technical Analysis, how it works and to find out different kind of indicators and to test the superiority of trading strategies based on Technical Analysis. Technical Analysis is not made up of only Indicators and oscillators; it has candlestick which is one type of a chart but at the same time mostly use for interpretation and very helpful in finding out the pattern. Candlestick and Moving Averages are the tools employed for Technical Analysis in this project. Both this tools are widely deployed by most of the analyst around the globe.
Trading & investing in stock market involves a significant risk factor. It (technical analysis) provides the base & insight for making trading strategies. It has a vital role in predicting the resistance level, support level, etc which ultimately helps in predicting the stock movement. This project study will help investors to understand the concept of Technical Analysis in depth with its application in evaluation of stock. It will also widen the investors horizon of framing & making of trading & investment strategies. The knowledge of technical analysis has a great value in security market & portfolio management. The Conclusion and Recommendation made in this project report is the outcome of the study done utilizing the tools of technical analysis i.e. candlestick & moving averages limited to selected stocks during the reference period and market situation at the time (reference period) of study. Hence this project (technical analysis) helps investor to take informed investment decision & will help to opt for the best stock amongst the pool of thousands of stocks.
1 Kishor Sawal, SBJITMR Nagpur
Chapter 1
Introduction The methods used to analyze securities and make investment decisions fall into two very broad categories. 1. Fundamental analysis 2. Technical analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians (sometimes called Chartists) are only interested in the price movements in the market. Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor. What is Technical Analysis? Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time. Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof. It must be understood that technical studies are based entirely on prices and do not include balance sheets, P&L accounts (fundamental analysis), the assumption being that the markets are efficient and all possible price sensitive information is built into the price graph of a security / index. Therefore, technical analysis supports the efficient market theory as against the "Random walk theory" which supports the belief that stocks can be bought / sold on random events like flipping a coin!!! Technical analysis is more dynamic as compared to Fundamental analysis based on one simple argument - fundamental analysts depend on corporate events like quarterly results and special announcements like earnings guidance and policy changes in operations to generate a buy / sell recommendation. If fundamental analysis was the single most reliable indicator of trends, prices would predominantly fluctuate only 4 - 5 times a year - around quarterly results and special announcements like mergers and acquisitions etc!! Why would prices fluctuate? Almost daily? If the prices fluctuate ever so often, is there a way to forecast them? Yes according to technical analysis!!
Overview of Technical Analysis Technical analysis involves the study of past market data related to price and volume with the purpose of forecasting future price movements. Technical analysis does not help in making absolute predictions. Rather it helps in projecting the likely" price movement over time. Technical analysis is applicable to commodities, stocks, futures, foreign exchange (forex), indices or any tradable instrument, the price of which is influenced by supply and demand trends. It is used by day traders and short-term investors participating in investment markets, such as the stock market and the foreign exchange (forex) market. This type of analysis is also very useful for hedgers. While fundamental analysis helps you decide what companies you may want to invest in - based on the company's management, products and services, financial records, and other information - it won't always help you figure out when to buy, sell or hold. There will be times when the stock of a solid company falters and times when a riskier company performs well. As a result, although fundamental analysis is important, it's not always sufficient to make investment decisions. Technical analysis, the study of price movements and trends, can help you figure out when to enter and exit the market. Technical analysis, which gained momentum in the late 1800s as Dow Theory, is one of the oldest techniques used to make market decisions. Based on the ideas of Charles Dow, technical analysts use a variety of technical indicators, or series of data points plotted on a price chart that has been formed using price or price and volume statistics for a particular security over a particular time period. The goal is to spot market trends and manage risks associated with price movements. While some indicators use complex formulas and others are simpler, all of them seek to establish visual patterns that make sometimes confusing price data easier to understand and interpret. Indicators can be applied to stock, indexes, futures contracts and any other tradable instruments whose prices move in response to supply and demand. While each indicator depicts patterns made by the price movements of securities, studying just one may not give you a complete picture of the direction the price is likely to head. For example, an indicator may make false signals, called whipsaws, where prices move in one direction and quickly revert to an original trajectory. Examining more than one study makes it easier to spot true signals How is Technical Analysis Done? Technical analysis is based on the premise that price discounts every aspect and information in the market. Technical analysis is also based on the belief that price movements are never completely arbitrary and follow a trend. A technical analyst believes that it is possible to identify an ongoing trend; trades based on the trend and generate profits as the trend unfolds. The methods used for technical analysis are: 1. Moving averages: This method is used to identify various support and resistance levels for the short and long term. The most commonly used moving averages are the 30-day moving average (DMAs) and 200-day moving average (DMAs). 2. Charts and patterns: Extensive charts are made based on historical data on price movements. These charts are used to identify patterns and shapes, such as double top, double bottom, head and shoulders and triple bottom.
Benefits of Technical Analysis The benefits of technical analysis are: 1. Helps to identify a trend, allowing investors to make predictions on future trends. 2. Allows investors to judge the direction of the current trend and enables them to gauge the best time to take a position in the market. 3. When it is used in conjunction with fundamental analysis and company and industry related news, it minimizes the chances of an investor incurring losses. Drawbacks of Technical Analysis The drawbacks of technical analysis are: 1. It draws heavily on a persons opinion or interpretation. 2. It is more a study of probabilities than of actual value. 3. Useful only for short-term investments.
History of Technical Analysis The history of technical analysis begins with Dow Theory. The Dow Theory was developed by Charles Dow through a series of editorials which he wrote in Wall Street Journal of which he was an editor and part owner until 1902. Though Dow Theory is the brain child of Charles Dow, he never wrote a book on it. It was S.A. Nelson and William Hamilton who refined the theory into what it is today known as Dow Theory. Further, William Hamilton further refined the theory by a series of articles in Wall Street Journal between 1902 and 1929. He later wrote a book The Stock Market Barometer. Later Robert Rhea read 252 articles written by Dow and Hamilton in Wall Street Journal and further refined the theory in his book The Dow Theory. There are various assumptions of Dow Theory. These assumptions form the platform of analyzing the stocks. The assumptions of Dow Theory are as follows: Manipulation The first assumption is: The manipulation of the primary trend is not possible when large amounts of money are at stake; the temptation to manipulate is bound to be present. Hamilton did not argue against the possibility that speculators, specialists or anyone else involved in the markets could manipulate the prices. He qualified his assumption by asserting that it was not possible to manipulate the primary trend. Intraday, day-to-day and possibly even secondary movements could be prone to manipulation. These short movements, from a few hours to a few weeks, could be subject to manipulation by large institutions, speculators, breaking news or rumors. Today, Hamilton would likely add message boards and day-traders to this list. Hamilton went on to say that individual shares could be manipulated. Examples of manipulation usually end the same way: the security runs up and then falls
back and continues the primary trend. Hamilton also pointed out that even if individual shares were being manipulated, it would be virtually impossible to manipulate the market as a whole. The market was simply too big for this to occur. Averages Discount Everything The market reflects all available information. Everything there is to know is already reflected in the markets through the price. Prices represent the sum total of all the hopes, fears and expectations of all participants. Interest rate movements, earnings expectations, revenue projections, presidential elections, product initiatives and all else are already priced into the market. The unexpected will occur, but usually this will affect the short-term trend. The primary trend will remain unaffected. The downtrend for Coca-Cola began with the sharp fall from above 90. The stock rallied with the market in October and November 1998, but by December started to decline again. According to Dow theory, the October/November rally would be called a secondary move (against the primary trend). It is likely that the stock was caught up in the general market advance at the time. However, when the major indices were hitting new highs in December, Coca-Cola was starting to flounder and resume its primary trend. Hamilton noted that sometimes the market would react negatively to good news. For Hamilton, the reasoning was simple: the market looks ahead. By the time the news hits the street, it is already reflected in the price. This explains the old Wall Street axiom, "buy the rumor, and sell the news". As the rumor begins to filter down, buyers step in and bid the price up. By the time the news hits, the price has been bid up to fully reflect the news. Technical Analysis a Pseudo Science Many academicians call technical analysis a pseudo science. They say there is no perfection in the theory of Charles Dow. Hamilton and Dow also readily admit that the Dow Theory is not a sure-fire means of beating the market. It is looked upon as a set of guidelines and principles to assist investors and traders with their own study of the market. The Dow Theory provides a mechanism for investors to use that will help remove some of the emotion. Hamilton warns that investors should not be influenced by their own wishes when analyzing the market, make sure you are objective and see what is there, not what you want to see. If an investor is long, he or she may want to see only the bullish signs and ignore any bearish signals. Conversely, if an investor is out of the market or short, he or she may be apt to focus on the negative aspects of the price action and ignore any bullish developments. Dow Theory provides a mechanism to help make decisions less ambiguous. The methods for identifying the primary trend are clear-cut and not open to interpretation. Even though the theory is not meant for short-term trading, it can still add value for traders. No matter what your time frame, it always helps to be able to identify the primary trend. According to Hamilton (writing in the early part of the 20th century), those who successfully applied the Dow Theory rarely traded more than four or five times a year. Remember that intraday, day-to-day and possibly even secondary movements can be prone to manipulation, but the primary trend is immune from manipulation. Hamilton and Dow sought a means to filter out the noise associated with daily fluctuations. They were not worried about a couple of points, or getting the exact top or bottom. Their main concern was catching the large moves. Both Hamilton and Dow recommended close study of the markets on a daily basis, but they also sought to minimize the effects of random movements and concentrate on the primary trend. It is easy to get caught up in the madness of the moment and forget the primary trend.
Market Movements The Dow Theory identifies the following market movements. Primary Movement Primary movements represent the broad underlying trend of the market and can last from a few months to many years. These movements are typically referred to as bull and bear markets. Once the primary trend has been identified, it will remain in effect until proved otherwise. Hamilton believed that the length and the duration of the trend were largely indeterminable. Hamilton did study the averages and came up with some general guidelines for length and duration, but warned against attempting to apply these as rules for forecasting. Many traders and investors get hung up on price and time targets. The reality of the situation is that nobody knows where and when the primary trend will end. The objective of Dow Theory is to utilize what we do know, not to haphazardly guess about what we don't know. Through a set of guidelines, Dow Theory enables investors to identify the primary trend and invest accordingly. Trying to predict the length and the duration of the trend is an exercise in futility. Hamilton and Dow were mainly interested in catching the big moves of the primary trend. Success, according to Hamilton and Dow, is measured by the ability to identify the primary trend and stay with it. Secondary Movements Secondary movements run counter to the primary trend and are reactionary in nature. In a bull market a secondary move is considered a correction. In a bear market, secondary moves are sometimes called reaction rallies. Hamilton noted some characteristics that were common to many secondary moves in both bull and bear markets. These characteristics should not be construed as rules, but rather as loose guidelines to be used in conjunction with other analysis techniques. The first three characteristics have been applied to the example above based on historical observation; Hamilton estimated that secondary movements retrace 1/3 to 2/3 of the primary move, with 50% being the typical amount. Hamilton also noted that secondary moves tend to be faster and sharper than the preceding primary move. At the end of the secondary move, there is usually a dull period just before the turnaround. Little price movement, a decline in volume, or a combination of the two can mark this dullness. Lows are sometimes accompanied by a high-volume washout day. Hamilton characterized secondary moves as a necessary phenomenon to combat excessive speculation. Corrections and counter moves kept speculators in check and added a healthy dose of guesswork to market movements. Because of their complexity and deceptive nature, secondary movements require extra careful study and analysis. Investors often mistake a secondary move for the beginning of a new primary trend. How far does a secondary move have to go before the primary trend is affected? To answer this question it is necessary to understand the following stages of market for stocks. A primary bear market is defined as a long sustained decline marked by deteriorating business conditions and subsequent decrease in demand for stocks. In both primary bull markets and primary bear markets, there will be secondary movements that run counter to the major trend. Elow is a chart of the Dow Jones Transportation Average in 1992. Even though Hamilton and Dow did not make specific references to trend lines, a line has been drawn to emphasize the downward trajectory of the trend. Since the peak in February, a series of lower lows and lower highs formed to make a downtrend. There was a secondary rally in April and May (green circle), but the March high was not surpassed.
Dow Theory is a heterodox theory on stock price movements that includes what is now called technical analysis as well as some portion of sector rotation. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (18511902), journalist, founder and first editor of the Wall Street Journal and co-founder of Dow Jones and Company. Following Dow's death, William Peter Hamilton, Robert Rhea and E. George Schaefer organized and collectively represented "Dow Theory," based on Dow's editorials. Dow himself never used the term "Dow Theory," nor presented it as a trading system. The six basic tenets of Dow Theory as summarized by Hamilton, Rhea, and Schaefer are described below. Six basic tenets of Dow Theory 1. The market has three movements (1) The "main movement", primary movement or major trend may last from less than a year to several years. It can be bullish or bearish. (2) The "medium swing", secondary reaction or intermediate reaction may last from ten days to three months and generally retraces from 33% to 66% of the primary price change since the previous medium swing or start of the main movement. (3) The "short swing" or minor movement varies with opinion from hours to a month or more. The three movements may be simultaneous, for instance, a daily minor movement in a bearish secondary reaction in a bullish primary movement. 2. Market trends have three phases Dow Theory asserts that major market trends are composed of three phases: an accumulation phase, a public participation phase, and a distribution phase. The accumulation phase (phase 1) is a period when investors "in the know" are actively buying (selling) stock against the general opinion of the market. During this phase, the stock price does not change much because these investors are in the minority absorbing (releasing) stock that the market at large is supplying (demanding). Eventually, the market catches on to these astute investors and a rapid price change occurs (phase 2). This occurs when trend followers and other technically oriented investors participate. This phase continues until rampant speculation occurs. At this point, the astute investors begin to distribute their holdings to the market (phase 3). 3. The stock market discounts all news Stock prices quickly incorporate new information as soon as it becomes available. Once news is released, stock prices will change to reflect this new information. On this point, Dow Theory agrees with one of the premises of the efficient market hypothesis. 4. Stock market averages must confirm each other In Dow's time, the US was a growing industrial power. The US had population centers but factories were scattered throughout the country. Factories had to ship their goods to market, usually by rail. Dow's first stock averages were an index of industrial (manufacturing) companies and rail companies. To Dow, a bull market in industrials could not occur unless the railway average rallied as well, usually first. According to this logic, if manufacturers' profits are rising, it follows that they are producing more. If they produce more, then they have to ship more goods to consumers. Hence, if an investor is looking for signs of health in manufacturers, he or she should look at the performance of the companies that ship the output of them to market, the railroads. The two averages should be
moving in the same direction when the performance of averages diverges, it is a warning that change is in the air. Both Barron's Magazine and the Wall Street Journal still publish the daily performance of the Dow Jones Transportation Index in chart form. The index contains major railroads, shipping companies, and air freight carriers in the US. 5. Trends are confirmed by volume Dow believed that volume confirmed price trends. When prices move on low volume, there could be many different explanations why. An overly aggressive seller could be present for example. But when price movements are accompanied by high volume, Dow believed this represented the "true" market view. If many participants are active in a particular security, and the price moves significantly in one direction, Dow maintained that this was the direction in which the market anticipated continued movement. To him, it was a signal that a trend is developing. 6. Trends exist until definitive signals prove that they have ended Dow believed that trends existed despite "market noise". Markets might temporarily move in the direction opposite to the trend, but they will soon resume the prior move. The trend should be given the benefit of the doubt during these reversals. Determining whether a reversal is the start of a new trend or a temporary movement in the current trend is not easy. Dow Theorists often disagree in this determination. Technical analysis tools attempt to clarify this but they can be interpreted differently by different investors. Analysis There is little academic support for the profitability of the Dow Theory. Alfred Cowles in a study in Econometrica in 1934 showed that trading based upon the editorial advice would have resulted in earning less than a buy-and-hold strategy using a well diversified portfolio. Cowles concluded that a buy-and-hold strategy produced 15.5% annualized returns from 1902-1929 while the Dow Theory strategy produced annualized returns of 12%. After numerous studies supported Cowles over the following years, many academics stopped studying Dow Theory believing Cowles's results were conclusive. In recent years however, Cowles' conclusions have been revisited. William Goetzmann, Stephen Brown, and Alok Kumar believe that Cowles' study was incomplete and that Dow Theory produces excess risk-adjusted returns.
Specifically, the return of a buy-and-hold strategy was higher than that of a Dow Theory portfolio by 2%, but the riskiness and volatility of the Dow Theory portfolio was lower, so that the Dow Theory portfolio produced higher risk-adjusted returns according to their study. Many technical analysts consider Dow Theory's definition of a trend and its insistence on studying price action as the main premises of modern technical analysis.
FMCG (Fast Moving Consumer Goods) Sector

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector. At the macro level, Indian economy is poised to remained buoyant and grow at more than 7%. The economic growth would impact large proportions of the population thus leading to more money in the hands of the consumer. Changes in demographic composition of the population and thus the market would also continue to impact the FMCG industry. Recent survey conducted by a leading business weekly, approximately 47 per cent of India's 1 + billion people were under the age of 20, and teenagers among them numbered about 160 million. Together, they wielded INR 14000 Cr worth of discretionary income, and their families spent an additional INR 18500 Cr on them every year. By 2015, Indians under 20 are estimated to make up 55% of the population - and wield proportionately higher spending power. Means, companies that are able to influence and excite such consumers would be those that win in the market place. The Indian FMCG market has been divided for a long time between the organized sector and the unorganized sector. While the latter has been crowded by a large number of local players, competing on margins, the former has varied between a two-player-scenario to a multi-player one. Unlike the U.S. market for fast moving consumer goods (FMCG), which is dominated by a handful of global players, India's Rs.460 billion FMCG market remains highly fragmented with roughly half the market going to unbranded, unpackaged home made products. This presents a tremendous opportunity for makers of branded products who can convert consumers to branded products. However, successfully launching and growing market share around a branded product in India presents tremendous challenges. Take distribution as an example. India is home to six million retail outlets and super markets virtually do not exist. This makes logistics particularly for new players extremely difficult. Other challenges of similar magnitude exist across the FMCG supply chain.
The fact is that FMCG is a structurally unattractive industry in which to participate. Even so, the opportunity keeps FMCG makers trying. The FMCG sector in India is expected to grow at a compounded annual growth rate (CAGR) of 9% to a size of Rs 33.4 BILLION US $ by 2015.
Indian FMCG Market Size (In US $ Billions)
2010
(Source: IBEF FMCG Analysis) According to estimates based on China's current per capita consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products.
Industry Overview Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG).The FMCG sector seems to have finally joined India Inc's growth party by posting surprising double-digit growth in sales in the past couple of years. With annual revenues of Rs 72,000 crore, it is the one of the largest sectors in the Indian economy. The industry's future prospects look bright, considering rising household incomes and the spread of modern retail. However, the per capita income level in India is still very low compared to the developed world. Besides, the penetration level of many products is also relatively low and several categories remain fairly unbranded. All these factors provide a huge untapped potential for the industry. In contrast to other manufacturing sectors, FMCG is relatively less capital-intensive, but demands immense skills and expenditure on branding and distribution. Most companies in the sector create value through product differentiation, package innovation, differential pricing and highlighting the functional aspect of foods. While inflation restricts the industry's growth, many companies in the sector thrive under inflationary pressures. Most companies pass on the cost inflation to consumers, via a judicious blend of price hikes, packaged size reduction and change in product mix. Few consumers react by down-trading to lower priced products, but most hang on to their preferred brands.
The top five FMCG companies constitute nearly 70% of the total revenues generated by this sector. Multinational FMCG companies like Hindustan Unilever, ITC, Nestle, Procter & Gamble, Dabur India and GlaxoSmithKline Consumer Healthcare traditionally comprise the first category of FMCG companies. They tend to spend nearly 10% of their revenues on an average on advertising and promoting their products, which is the highest ad spend figure in the industry. Justifying their high product pricing, these companies largely tend to capture value by addressing a felt need.
FMCG products are those that get replaced within a year. Example of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper product, and plastic good. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. Subsets of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products.
2.2 Structural Analysis of FMCG Industry Typically, a consumer buys these goods at least once a month. The sector covers a wide gamut of products such as detergents, toilet soaps, toothpaste, shampoos, creams, powders, food products, confectioneries, beverages, and cigarettes. Typical characteristics of FMCG products are: 1. The products often cater to 3 very distinct but usually wanted for aspects - necessity, comfort, luxury. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers. 2. Individual items are of small value (small SKU's) although all FMCG products put together account for a significant part of the consumer's budget.
3. The consumer spends little time on the purchase decision. He seldom ever looks at the technical specifications. Brand loyalties or recommendations of reliable retailer/ dealer drive purchase decisions. 4. Limited inventory of these products (many of which are perishable) are kept by consumer and prefers to purchase them frequently, as and when required. 5. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth.
FMCG Market Review FY 09-10 Result Highlights
Why FMCG Sector is Analyzed TATA Investment Corporation Limited, non non-banking financial company registered with Reserve Bank of India under the ' Investment Company' category. The company's activities comprise primarily of investing in long-term investments in equity shares and other securities of companies in a wide range of industries. TICL invested in almost all the sectors. TICLs portfolio proved to be a very successful portfolio. They had got a very good return from all the sectors. Among these sectors, Fast Moving Consumer Goods (FMCG) proved to be a very successful sector. It has a very good potentiality in long term in India. The overall cost of investment in FMCG sector was Rs. 13.69 crore on May 20, 2008, this investment valued Rs. 306.72 crore i.e. the cost of value of investment in FMCG sector was 5% of the overall investment that was increased in 2008 to 15% of the overall investment. Thus from this, we can conclude that, there is a 2140.47% increase in value of investment.
For this significant increase and also recent development of retails shops, malls, etc. in India, the FMCG sector is one of the booming sectors in India. For this reason, I had chosen this sector for my equity analysis. Below, I had given a which explains, the detail investment of TICL in FMCG sector:
Why India: A Potential Market with high internal consumption. Large domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total numbers of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2010-11. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 33.4 billion in 2015. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. India - a large consumer goods spender An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets.
(Source: KSA Technopak Consumer Outlook)
Consumer expenditure on food at International level Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging Markets, next only to China.
SWOT Analysis: Whole Industry!
Strengths Well established distribution networks extending to the rural areas Backed by strong brands Low cost operations Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector Weakness Low export levels Small scale sector reservations limit ability to invest in technology and achieve economies of scale Several Me-Too products Opportunities Large domestic market Export potential Increasing income levels will result in faster revenue growth High consumer goods spending Threats Tax & Regulatory Structures Slowdown in Rural Demands Removal of import restriction resulting in replacing of domestic brands
FMCG Strong & Defensive Sector In the year 2008, when almost all the stocks have been tumbled heavily on the Dalal Street, the one sector which completely outperformed the market is FMCG. During 2008 when the SENSEX has lost by around 53%, while BSE FMCG has just lost by below 10%.Sensex witnessed strong bull market journey with almost 7 fold gains from 3000 in 2003 to 21000 in 2008, the FMCG did not match the Index equivalently but managed to follow the trend by almost 3.5 times gain for the same period. And even in a bear market scenario, the FMCG is bucking the trend which is a big sigh of relief for investors. Hence FMCG is strong and defensive sector and one should consider this sector for his/her portfolio and allocate some portion for it.
Research Methodology
Problem Definition Trading & investing in stock market involves a significant risk factor. It provides the base & insight for making trading strategies. It has a vital role in predicting the resistance level, support level, etc which ultimately helps in predicting the stock movement. Hence technical analysis helps investor to take informed investment decision & will help to opt for the best stock amongst the pool of stocks. OBJECTIVES OF STUDY 1. To study the concept of technical analysis. 2. To study the role & importance of technical analysis in the stock evaluation & performance. 3. To study the various tools of technical analysis. 4. To study application of technical analysis by performing it on selected FMCG stocks. 5. To analyze and comment on the performance of company stock on the basis of technical analysis.
Scope of study
This project study will help me to understand the concept of Technical Analysis in depth with its application in evaluation of stock. It will widen my horizon of framing & making of trading & investment strategies. The knowledge of technical analysis has a great value in security market & portfolio management.
REFERENCE PERIOD: The reference period of the study is from 1st October 2010 to 31st December 2010.
DATA COLLECTION The data used for the project will be secondary data, which will be collected from various sources which are mentioned as follows. Sources of secondary data Various trade journals Magazines Newspapers Websites Books.
RESEARCH DESIGN The project titled Technical analysis of the selected Indian FMCG Sector Companies is the result of Exploratory research. REVIEW OF LITERATURE Annual Reports published by companies. Reports by Magazine like Capital Market. Newspapers Economic Times, Business Standard etc. Tools for Technical Analysis Candle Stick graph Moving average Graph with MACD LIMITATIONS 1. Study is restricted to Indian FMCG Sector Only. 2. Study is restricted to only selected stock from Indian FMCG Sector. 3. The result of study is based on selected tools of technical analysis and not all. 4. Fluctuation in value of stocks does not depend only on Internal factors. 5. External factors plays major role in fluctuation of value of stocks.
What is a Technical Chart? A Technical Chart is a image or a tool showing you the trend of a particular stock, Technical charts are build using the all or one of the 4 parameters for a particular stock, these parameters mainly include the open, high, low and close of a particular stock for a particular time period (say a minute of a day or a week). Below is a example of a Technical Chart
Technical Charting has become increasingly popular over the past several years, as more and more people believe that the historical performance of a stock is a strong indication of future performance Types of Charts In technical analysis various types of charts are used. For any investor or person who is involved in the stock market it becomes very important to know what will happen to prices of stocks tomorrow. Technical Analysis is one of the ways to forecast future price movements. Use of historical price charts forms the premise of Technical Analysis. There are a number of indicators which have been developed over a period of time to determine the future price movements of stocks. Each indicator has got its own interpretation, strengths and weaknesses. Therefore, as said earlier different indicators should be used in conjunction with each other to determine the strength or weakness of a trend and the possible future price movement. A price chart is a sequence of prices plotted over a specific time frame. Technical analysis is based on charts. Therefore sometimes technical Analysts are called Chartists. On the chart, the y-axis (vertical axis) represents the price scale and the x-axis (horizontal axis) represents the time scale. Prices are plotted from left to right across the x-axis with the most recent plot being the furthest right. A graphical historical record makes it easy to spot the effect of key events on a security's price, its performance over a period of time and whether it's trading near its highs, near its lows, or in between.
There are basically three types of charts which are as follows: 1. Line Charts 2. Bar Charts 3. Candle Stick Chart 1. Line Charts: A line Chart is the simplest type of chart. Line Chart is drawn by plotting the closing price of the stock on a given day and connecting them to make charts. They are widely used charts. The price is marked on the Y-axis and the period of time on the Xaxis. Line charts strength comes from its simplicity. The most basic of the four charts is the line chart because it represents only the closing prices over a set period of time. The line is formed by connecting the closing prices over the time frame. Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices. However, the closing price is often considered to be the most important price in stock data compared to the high and low for the day and this is why it is the only value used in line charts.
2. Bar Charts A bar chart displays any securitys open, low, high and closing prices. The bar chart expands on the line chart by adding several more key pieces of information to each data point. The chart is made up of a series of vertical lines that represent each data point. This vertical line represents the high and low for the trading period, along with the closing price. The close and open are represented on the vertical line by a horizontal dash. The opening price on a bar chart is illustrated by the dash that is located on the left side of the vertical bar. Conversely, the close is represented by the dash on the right.
Generally, if the left dash (open) is lower than the right dash (close) then the bar will be shaded black, representing an up period for the stock, which means it has gained value. A bar that is colored red signals that the stock has gone down in value over that period. When this is the case, the dash on the right (close) is lower than the dash on the left (open)
3. Candle Stick Chart The candlestick chart is similar to a bar chart, but it differs in the way that it is visually constructed. Similar to the bar chart, the candlestick also has a thin vertical line showing the period's trading range. The difference comes in the formation of a wide bar on the vertical line, which illustrates the difference between the open and close. And, like bar charts, candlesticks also rely heavily on the use of colors to explain what has happened during the trading period. A major problem with the candlestick color configuration, however, is that different sites use different standards; therefore, it is important to understand the candlestick configuration used at the chart site you are working with. There are two color constructs for days up and one for days that the price falls. When the price of the stock is up and closes above the opening trade, the candlestick will usually be white or clear. If the stock has traded down for the period, then the candlestick will usually be red or black, depending on the site. If the stock's price has closed above the previous days close but below the day's open, the candlestick will be black or filled with the color that is used to indicate an up day. The candlestick chart & its patterns are discussed in detail in later chapter. The stock investing basics of Japanese Candlesticks results in clear and easy way to identify patterns that demonstrate highly accurate turns in investor sentiment. Whether totally unfamiliar with
investment concepts or very sophisticated in investment experience, the Japanese Candlestick trading formations are easily utilized. A stock price closing higher than where it opened will produce a white candle. A stock price closing lower than where it opened creates a black candle. The boxes formed are called "the body". The extremes of the daily price movement, represented by lines extending from the body, are called "shadows or tails. A stock price closing where it opened or closing at where it opened is called a doji. Memorizing the Japanese Candlesticks names and descriptions of the candlestick trading formations is not necessary for successful trading.
Many investors believe that candlestick charts are easy to read because of the relationship between the open and the close. White (clear) candlesticks form when the close is higher than the open and black (solid) candlesticks form when the close is lower than the open. The white and black portion formed from the open and close is called the body (white body or black body). The lines above and below are called shadows and represent the high and low.
Tools of study for Technical Analysis Japanese Candlesticks Moving Averages MACD (Moving Average Convergence Divergence) Candlesticks are one of the most important tools we have in the forex and stock market technical analysis. The information that the candlesticks give us are the best and most accurate. . What are the Japanese Candlesticks? Candlesticks were invented by a Japanese rice trader, Sakata, in 17th century. He spent about ten years of his life in researching and analyzing of the effect of weather, psychology of buyers and sellers and many different conditions on the rice price. As highlighted the psychology of buyers and sellers because candlesticks are the indicators of the market psychology. This is the first and most important thing you have to know about the candlesticks. Price volatility is the result of nothing but the behavior of the buyers (Bulls) and sellers (Bears). Candlestick is basically a rectangle that gives four different information in a special time frame. If you use the daily time frame, for each day we will have one candlestick and if you use a 5 minutes time frame, for each 5 minutes you will have a candlestick and so on. Each candlestick includes 4 numbers: 1. Open price 2. Close price 3. High price 4. Low price So lets say when a candlestick is just started in the one hour chart, the price is 1.9825. This is the open price. The price goes up and down during one hour and finally, when one hour is over, the price is 2.0080. This is the close price. When the close price is higher than the open price, the candle is Bullish. It means the price has gone up during the formation of the candlestick. If the open price is higher than the close price, the formed candlestick is a Bearish candlestick. It means the price has gone down during the formation of the candlestick. High price is the maximum price and low price is the minimum price during the formation of the candlesticks.
Candlesticks have two main parts: 1. Body and 2. Shadows
Psychology of the market: Candlesticks are the indicators of the market psychology. They show us if there is more buying than selling or there is more fear than greed in the market and visa versa. Different shapes of the candlesticks: Because of the price changes, candlesticks can have several different shapes. For example the open price and close price can be the same. Or the high price can be the same as the close price. Lets see how many different shapes the candlesticks can have: 1. Typical candlesticks: All of the four prices are different from each other. A typical candlestick can be Bullish or Bearish. Typical Candlesticks
2. Marubozu: Marubozu means shaven. The candlesticks that have no shadow are called Marubozu.
What does Marubozu mean in the market? In Bullish Marubozu, the open price is the same as the low price and the close price is the same as the high price. Bullish Marubozu means that Bulls are so strong and didnt let the Bears take the price down when the candlestick became completed. It means there is a lot of buying activity in the market. The longer the candlestick, the stronger the Bulls. In Bearish Marubozu, the open price is the same as the high price and the close price is the same as the low price. A Bearish Marubozu means that Bears are strong and there is a lot of sell activity in the market especially when the Bearish Marubozu is longer than the previous candlesticks. What does it mean in general? 1. When you see a Bullish Marubozu, you should not take a short position because the Bulls are strong and the price can go higher. 2. When you see a Bearish Marubozu, you should not take a long position. 3. When you see a Bullish Marubozu at end of a downtrend, it is a reversal signal. You can just wait for the next candlestick and if it is Bullish too, you can take a long position. 4. When you see a Bearish Marubozu at end of an uptrend, it is a reversal signal. You can just wait for the next candlestick and if it is Bearish too, you can take a short position. 5. If you already have a long position and you see a Bearish Marubozu at the end of the uptrend, you should close your position and take your profit. 6. If you already have a short position and you see a Bullish Marubozu at the end of the downtrend, you should close your position and take your profit.
3. Doji: Doji means unskillfully. These kinds of candlesticks are called Doji or unskillfully because they dont have a body. When the open price and close price are the same we will have a Doji. So Doji candlesticks have no color and so they are neither Bullish nor Bearish. It means Both Bulls and Bears have the same power and are matched and the price doesnt know where to go. It doesnt know if it goes up or down .So Doji candlesticks are indecision and uncertainty signals. There are different types of Doji candlesticks. The most important one is called Rickshaw man. In Rickshaw man the cross bar is roughly central. Rickshaw man is a strong indecision signal. So you when you see it at the top of an uptrend, it means the price can go higher, or go down or becomes range. Another kind of Doji is called Gravestone: This kind of Doji also means indecision and when it is seen at the top of an uptrend it means the prices wants to bounce down. At the bottom of the market sometimes you see the Inverted Gravestone: Inverted Gravestone is also known as Dragonfly. Of course it doesnt mean that inverted gravestone or gravestone can not be seen at the top or bottom of the market. In both cases they signal indecision.
Doji can be seen in some other different shapes too:
Sometimes Doji has a small body
What should you do when you see a Doji? Doji means indecision and uncertainty. When it is seen at the top of an uptrend or at the bottom of a downtrend, it means the price is uncertain to go up or down or sideways. When you see a Doji, if you already have a position, you have to take your profit and if you dont have any position, you have to wait for the confirmation to choose a direction and enter to a trade. Confirmation The next candle sticks can work as a confirmation. For example when you see a Gravestone at the top of an uptrend, you should get ready to go short but first you have to wait for the next candlestick or even next two candlesticks. If they are Bearish, it means the price has changed the direction and you can go short.
Please note that Doji candlesticks that have longer shadows are stronger. As you see the Doji is confirmed by the next candlestick and the price went down.
4. Hammer and Hanging Man: Hammer is kind of candlestick that can be seen at the bottom of a downtrend. Hammer has no or a very small lower shadow. The hammer candlestick which is seen at the top of an uptrend is called Hanging Man. Hammer and Hanging Man have three identifying features: 1. The body is in the upper third of the price range. 2. The lower shadow is twice of the length of the body. 3. They have no or a very short upper shadow
Like Doji, Hammer and Hanging man signal indecision and uncertainty and need confirmation.
5. Shooting Star: It is an inverted hammer at the top of the uptrend. Its color can be Bullish or Bearish. A Shooting Star at the bottom of a downtrend is called Inverted Hammer. Like Doji and Hammer, Shooting Star and inverted Hammer need confirmation.
A gap between the Shooting Start or Inverted Hammer and the next candlestick is one of the confirmations. A big Bearish candlestick after the Shooting Start is another confirmation. Generally, confirmation is something that confirms that the price has changed the direction. Combination of Candlesticks: Candlesticks are important signals individually. However combination of candlesticks can also generate very strong reversal signals. 1. High Wave A group of candlesticks that have small bodies and long shadows are called High Wave. High Wave is a very strong reversal signal at the top of an uptrend or bottom of a downtrend.
2. Engulfing Pattern This pattern is a very strong reversal signal at the end of a trends. Engulfing pattern is formed by two candlesticks with different colors. The body of the second candlestick should completely engulf the first one. The shadows may also be engulfed but it is not necessary. The first candlestick can also be a Doji.
Engulfing pattern is stronger when the first candlestick has a small and the second candlestick has a big body. Also when the second candlestick engulfs more than one candlestick, the pattern is stronger. 3. Dark Cloud Cover It is a Bearish reversal signal that can be formed at the top of an uptrend by two candlesticks. The first one is Bullish and the second one is Bearish. Dark Cloud Cover is formed when the second candlestick is started above the high price of the first candlestick but goes down and becomes finished above the open price of the first candlestick.
Dark Cloud Cover can be considered as a stronger reversal signal when: 1. The closing price of the bearish candlestick is close to the opening price of the previous candlestick. 2. Both candlesticks are shaven (they have no shadow) and the bearish candlestick is opened at the close of the bullish candlestick and also is closed at the close of the bullish candlestick. 3. When the bearish candlestick is opened above a strong resistance and then goes down.
3. Piercing Line A Dark Cloud Cover that happens at the bottom of a downtrend is known is as Piercing Line.
When you see a Dark Cloud Cover at the top of an uptrend or a Piercing Line at the bottom of a downtrend you have to wait for the next candlestick. If the next candlesticks after a Dark Cloud Cover is a Bullish candlestick that keeps on going up and goes higher than the high price of the second candlestick, then you should consider the Dark Cloud Cover as a continuation signal. But if the next candlesticks after a Dark Cloud Cover is a Bearish candlestick that goes down and preferably lower than the close price of the second candlestick, then the Dark Cloud Cover you have is a reversal signal. The same thing is correct about the Piercing Line: If the next candlestick after a Piercing Line is a Bearish candlestick that goes down and goes lower than the close price of the second candlestick, then the Piercing Line you have is a continuation signal.
But if the next candlesticks after a Piercing Line is a Bullish candlestick that keeps on going up and preferably goes higher than the high price of the second candlestick in the Piercing Line, then the Piercing Line you have is a reversal signal.
4. Harami Harami means pregnant in Japanese. Harami pattern is formed by two candlesticks. One big (the mother) and one small (the baby). The bigger one covers the whole or at least the real body of the smaller one. Harami can be seen both at the top of an uptrend or at the bottom of a downtrend. The small candle can be formed any where along the length of the big candle but the important thing is that it should be covered by the big candlestick. The more difference between the size of two candlesticks, the more effective and potent the signal is.
Like the Dark Cloud Cover, Piercing Line and Harami can work as reversal signals but they have to be confirmed by the next candlesticks. These patterns can not be known as reliable and strong reversal signals. When the small candlestick in Harami pattern is a Doji, the pattern is called Harami Cross. A long body candlestick followed by a Doji which is covered by the long candlestick should not be ignored at all:
5. Morning and Evening Star and Abandoned Baby: Morning star becomes formed by three candlesticks. This pattern can be seen at the bottom of a downtrend. It is known as a strong reversal signal. 1. The first candlestick should be a Bearish candlestick with a considerable body. 2. The second candlestick is a small candlestick that is formed lower than the first one. This candlestick can be Bearish or Bullish. In fact Morning star is the second candlestick but we have to have the first and the second candlesticks for a Morning Star signal. 3. The third candlestick is a Bullish candlestick that is formed higher than the second one and its body covers a significant portion of the first candlestick.
This pattern is called Evening Star when formed at the top of an uptrend: The effectiveness and potency of the Morning Star and Evening Start patterns as reversal signals is dependent on some special factors that you have to consider: 1. The distance (gap) between the morning or evening star with the first and third candlesticks. The bigger gap, the stronger signal. 2. The degree of the coverage of the first candlestick by the third one. The bigger coverage, the stronger signal. 3. The bigger trading volume in the third candlestick than the first one.
Sometimes, the Morning or Evening Star is a very small candlestick with small or no shadows. The gap is so big and even none of the candlesticks shadows cover any part of the Morning or Evening Star. This pattern is called Abandoned Baby which is a very strong reversal signal. Because of the high volatility, this pattern is very rare in the forex market and can only be seen in bigger time frames but it can be seen in the stock market in smaller time frames like one hour. Abandoned baby can be seen both at the top of an uptrend or bottom of a downtrend.
6. Tweezers Tweezers is made up of two candlesticks that are next or so close to each other. They have identical highs at the top of the market or identical lows at the bottom of the market. The Tweezers usually becomes formed by the candlesticks shadows but it can also be made by the bodies of the shaven candlesticks. The two candlesticks that form Tweezers can have small bodies like Doji and Hammer candlesticks.
Tweezers that are formed right under resistance lines or above the support lines and also under or above the Fibonacci levels that act as resistance or support are important especially when they are made up of two Doji candlesticks. The longer the shadows, the more potent the Tweezers signal. When there are several candlesticks between the two that make the Tweezers pattern, they may form Double Tops or Double Bottoms patterns that show the levels of resistance or support.
How to Use Technical Analysis Indicators to Analyze Stock Charts Technical analysis indicators are statistics that traders use to analyze stock charts. Traders use software to plot one more indicators on a stocks price chart, usually in real time. Indicators help traders identify points at which to buy or sell stocks, known as entry points and exit points, respectively. Indicators are classified as lagging, time-current, or leading, to indicate whether they reflect a stocks price movement in the past, present, or future. Traders use dozens of indicators. The most popular indicators break down into two main groups: Moving average indicators Momentum indicators
Moving Average Indicators A moving average (MA) is a lagging indicator that shows the average share price of a stock during a given time period. Traders use a stocks MA to identify trends and to track when the stock might break through a support or resistance level. For instance, a stock trading consistently above its MA might be at the beginning of a new uptrend. A stock trading steadily below its MA might be poised to break through its support level. Four of the most popular MA indicators that traders use are the SIMPLE MOVING AVERAGE, EXPONENTIAL MOVING AVERAGE, MOVING AVERAGE CONVERGENCE/DIVERGENCE BOLLINGER BANDS.
Simple Moving Average (SMA) The simple moving average (SMA) is the average (arithmetic mean) of the share prices at which a stock traded during a specific time period. For instance, a 15-day SMA plots the average price of a stock during the previous 15 trading days. Traders usually plot two or more SMAs on the same chart, each of which plots a different number of daysthe 15-day, 30-day, 50-day, and 200-day SMAs are the most popular. Traders then look for crossovers, points at which the shorter (more recent) SMA crosses over the longer SMA.
Points at which the more recent SMA surpasses the longer SMA tend to indicate a new uptrend in share price, so traders would tend to buy the stock. Points at which the more recent SMA falls below the longer SMA tend to indicate a possible downtrend, so traders would tend to sell the stock.
Exponential Moving Average (EMA) The exponential moving average (EMA) weights the recent share prices more heavily than older share prices. Some traders think of the EMA as a more time-current version of the SMA, but in reality the EMA often differs only slightly from the SMA and is used in much the same way for trading purposes.
Moving Average Convergence/Divergence (MACD) The moving average convergence/divergence (MACD) shows the difference between two MAs of different time periods. For instance, a trader might use the MACD indicator to track a stocks 15-day and 30-day MAs . The MACD plots the average of those two MAs and compares it to another, more recent SMA or EMAcalled the signal line or trigger linesuch as the 5-day EMA. Traders then examine points of divergence at which the signal and the MACD differ. The extent of the divergence is usually plotted as a histogram in which longer lines indicate a greater divergence between the MACD and the signal. If the MACD falls below the signal, traders sell. If the MACD moves above the signal, traders buy. If the MACD rises significantly, traders sell. If the MACD falls significantly, traders buy.
Bollinger Bands
Bollinger bands are lines drawn at set standard deviations above and below a stocks MA during a given timeframe. By default, Bollinger bands use a 20-day MA and plot lines two standard deviations above and below that MA. Traders use Bollinger bands to get a sense of a stocks trading range, the range of prices between its support level and its resistance level. Traders often use Bollinger bands with other indicators, such as the SMA, to try to identify opportune exit and entry points. For instance, on a chart that plots a stocks 30-day SMA and its Bollinger bands, a trader would look for points at which the SMA moved either above the top band or below the bottom band.
When the SMA approaches the upper band, traders would tend to interpret that move as a sign of a breakout and a possible new uptrend. They would buy the stock. When the SMA approaches the bottom band, traders would tend to interpret that move as a sign of a possible new downtrend. They would sell the stock.
Chapter
In the technical analysis of FMCG sector we have chosen five FMCG companies. These are as follows,
1. Dabur India 2. P&G 3. Nestle 4. ITC 5. HUL

The profile of the above companies given in this chapter.
Dabur India
Dabur India Limited is the fourth largest FMCG Company in India with Revenues of US$750 Million (Rs 3416 Crore) & Market Capitalization of US$3.5 Billion (over Rs 16,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods. Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves. Leading consumer goods Company in India with a turnover of Rs. 2834.11 Crore (FY09) 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD) and 3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA). Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India and 17 ultra-modern manufacturing units spread around the globe. Products marketed in over 60 countries. Consumer Care Division (CCD) addresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods. Master brands: Dabur - Ayurvedic healthcare products, Vatika - Premium hair care, Hajmola - Tasty digestives, Ral - Fruit juices & beverages, Fem - Fairness bleaches & skin care products,9 BillionRupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day. Leader in herbal digestives with 90% market share.
P&G Home Products Limited is one of India's fastest growing Fast Moving Consumer Goods Companies that has in its portfolio P&G's global brands such as Ariel and Tide in the Fabric Care segment, and in the Hair Care segment: Head & Shoulders - world's largest selling anti-dandruff shampoo; Pantene - world's No. 1 beauty shampoo; and Rejoice - Asia's No. 1 shampoo. P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company, USA that in India, has carved a reputation for delivering superior quality, value-added products to meet the needs of consumers. In 1993, Procter & Gamble Home Products is incorporated as a 100% subsidiary of The Procter & Gamble Company, USA. Procter & Gamble Home Products launches Ariel Super Soaker. Procter & Gamble India divests the Detergents business to Procter & Gamble Home Products. In 1995, Procter & Gamble Home Products enters the Hair care Category with the launch of Pantene Pro-V. In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In June 2000, Procter & Gamble Home Products Limited launched Pantene Lively Clean its unique Pro-Vitamin formula. In August 2000, Procter & Gamble Home Products Limited launched New Ariel Power Compact detergent with a new global technology that breathes new life into clothes. During this period, Procter & Gamble Home Products also re-launched the international range of Head & Shoulders, best-ever Anti-dandruff shampoo with an improved formula, new pack-design and logo, in three variants - Clean & Balanced, Smooth & Silky and Refreshing Menthol in partnership with the Association of Beauty Therapy & Cosmetology (ABTC). P&Gs Beauty Business is over US$ 10 Billion in Global Sales, making it one of the worlds largest beauty companies. The P&G beauty business sells more than 50 different beauty brands including Pantene, Olay, SK-II, Max Factor, Cover Girl, Joy, Hugo Boss, Herbal Essences and Clairol Nice n Easy. In India, P&Gs beauty care business comprises of Pantene, the worlds largest selling shampoo, Head & Shoulders, the worlds No. 1 Anti-dandruff shampoo and Rejoice Asias No. 1 Shampoo.
Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a large number of copackers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.
Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita. Nestl India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region. Nestle Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006.
ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 billion and a turnover of US $ 6 billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'eChoupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC delivered an impressive performance for the quarter ended December 2010 with Net Turnover growing by 19% to touch Rs.5453 crore driven by Foods, Agri and Paperboards. The Companys Pre-tax profits for the quarter ended 31st December 2010 recorded a growth of 19.4% over last year and crossed the Rs.2000 crore mark driven primarily by the Branded Packaged Foods, Agri and Cigarette businesses. Post-tax profits at Rs.1389 crore grew by 21.4%. Earnings Per Share for the quarter stood at Rs.1.81.
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages.
HUL's brands touch the lives of two out of three Indians. They endow the company with turnover of Rs.17, 523 crore (for the 12 month period April 1, 2009 to March 31, 2010).
The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to help people feel good, look good and get more out of life with brands and services that are good for them and good for others. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.
The Company has over 15,000 employees and has an annual turnover of Rs.17,523 crore (financial year 2009 - 2010). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 44.3 billion in 2010. Unilever has about 52% shareholding in HUL.
Initially charts exhibit Doji (cross) Candlesticks which signals indecision and uncertainty for further move Doji followed by Bearish Marubozu which indicates downfall Although some white (bullish) candlesticks formed but are very weak as body very small with long stronger shadow and unable to make new high thus are immaterial Further Strong Bearish Candlesticks depicts Downtrend in the stock Although there was a Doji followed by a strong Bullish Candlestick but stock unable to sustain the trend in next candlestick Bears more stronger than Bulls October overall had a downtrend (bearish) In the first week of November stocks seems to be range bound although signals downtrend but unable to break support level of 98 As soon as support level of 98 broken a further strong downfall occurred A new support level of 92 formed with the resistance at 96 November also had a downtrend December starts off with a reversal signal by strong Bullish Candlestick (longer length body) As soon as stock broke the 96 resistance levels it headed for a uptrend December overall had a Uptrend Overall chart shows a straight downtrend from October to November and a role reversal thereof in December shows Uptrend (bounce back). Hereafter as the chart ends with a Doji candlestick further move of the stock is uncertain But as there are no clues and strong reason for a downtrend the short term upward rally may persist in the first week of January
This chart quite similar to P & G chart but this charts movements are more convincing as had good volumes. Overall depicts the bearish trend traded mostly below 30 day EMA whereas in December MACD gave the indication of upward move which seems to be a correction in the stock after a long bearish rally.
Stock has a very poor volume due to its high price not traded frequently Initially in the October stock traded in bonded range with a bearish movement In the mid of October Bears very strongly pulled the stock down The overall sentiments of the market for the stock seems to be bearish At no point of time in the chart Bulls being able to pull the stock upward However very few bullish candlestick formed that may be due to covering of stock and also those few white candlestick unable to make new high and has been engulfed by the following bearish candlesticks thus make no sense at all Overall chart depicts a strong downtrend in the stock At the end of December stock bounced back from 1700 level acting as a strong support level Further if stock broke the support level of 1700 then perhaps may a follow a downward rally upto the levels of 1500 which then becomes the support level for the stock Similarly if breaches 1900 level the may follow a upward trend All these levels must be backed and confirmed by strong volumes
The above chart is crystal clear depicting strong Bearish trend overall as stock traded below it 30 day EMA. An also very low volume depicts market not very much interested in this stock. At the end as expected after long downward rally a small upward rally seems to take place(same signaled by MACD, 30 Day EMA also being down & price now crossing it upward) but yet not convincing as not backed by volumes.
Initially chart depicts the bearish move by the few initial candles but their strength not enough to bring a strong downward trend A Hammer and a Doji followed by the engulfing strong bullish candlesticks signals a strong upward rally in the stock A upward trend seen from october mid to mid of november Stock made significant new high above 4200 level but unable to sustain the levels and closes at 4000 level Reversal bearish signal given by Dark Cloud Cover pattern by Candlestick (This is a bearish pattern. The pattern is more significant if the second line's body is below the center of the previous line's body) Hereafter Bears pull down the stock upto the level of 3500 (new low) 3600 level acting as strong support level although tested number of time but not significantly broken November started with initial steep upward move and thereafter witnesses the downward trend December started with Bullish Engulfing lines .This pattern is strongly bullish if it occurs after a significant downtrend (i.e., it acts as a reversal pattern). It occurs when a small bearish (filled-in) line is engulfed by a large bullish (empty) line. Stock headed for a upward move but unable to make new high Traded range bound between 3900-3600 level Chart ends with some bullish candles but not strong enough to confirm the upward move Stock may further follow a steep upward move if make high above 4000 level rally may continue Whereas if broken the support level of 3600 may further fall down
The overall chart seems to be Bullish but not convincing as volumes are very poor. Initially price is below the 30 days average as soon as it crossed the 30 day EMA, followed the upward bullish trend same confirmed by MACD thereafter Traders remorse brought stock back to 30 day EMA and flat movement afterwards but the December ends with signaling a upward trend as MACD crossed above the signal line.
ITC chart initially signaling a strong downtrend as number of long length prominent Bearish candlesticks formed October ovelall had a downtrend although some bullish candlesticks existed in between but unable to replicate themselves (bulls) succesively and has been engulfed by bearish candlesticks November starts with a reversal uptrend but unable to make new high 180 level acting as strong resistance for the stock After a small upward trend the Dark Cloud Cover pattern occurred signaling the further bearish trend Overall November has a downward movement December strats with strong bullish signals by a Hammer followed by a prominent long length white bullish candlestick signaling further reversal upward trend Further for the 3 weeks stock traded in the range bound between 166-172 The last week of December depicts a strong Bullish signal as number of prominent white candlesticks observed and broke 174 hurdle with a high of 176 Thus the upward rally may exist for a very short run hereafter and if stock broke the resistance of 180 level then it may follow further bullish trend with 164 as strong support level .
The above ITC showing somewhat similar pattern as of the HUL. Overall chart seems to be bearish as trading below 30 day EMA .Although MACD depicted a UPWARD RALLY with the start of November thereafter trading flat below 30 day EMA whereas December ended with a Upward move as price crossed upward the 30 day SMA i.e. 170 same Bullish trend depicted by MACD as it significantly crossed upwardly Signal line.
Initially chart depicts Doji like candlestick followed by a Bullish candlestick The strong long bullish candlesticks thereafter confirms a downtrend A steep downfall in the first week of October 55
Kishor Sawal, SBJITMR Nagpur
Uptill this point of time bears seems to be more strong and succeeded in a steep fall in the stock A offtrend strong long length white (Bullish) candlestick formed hindered further fall in the stock Stock seems to be range bound between the levels of 290 and 310 traded flat in the second week of October In the end of October chart depicts a upward reversal trend as a Doji followed by a long lenth Bullish candlestick but movementum not persisted A short steep downfall occurred in the last week of OctoberM as the high formed by the previous Bullish candlestick not accomadated by the following candlesticks(bearish) Stock found strong support at 290 levels November trading starts with a upward reversal signal i.e. Hammer candlestick followed by a number of small but prominent bullish candlesticks Stock steeply moved upward from 295 levels to 305 level As soon as stock broke the resistance of 310 levels reached new high of 320 Market not accepted this levels and stock further saw a small consolidation correction Stock unable to maintain new high and followed a downtrend Strong continuous Bearish candlestick depicts Bears more stronger than Bulls and pulling down the stock Overall November had a downtrend after a steep upward rally initially Again 290 level acting as strong support level for the stock and if broken can cause a further downtrend December starts with Bullish candlestick but not strong enough for a sudden upward movement Stock trading in the bounded range of 295-300 level flat movement in the first week of december The bullish trends depicted by the reversal signal Doji followed by the two strong white candlesticks Again the support level of 290 tested by the stock and bounces back from it forming a upward signal The few last candlesticks (long length white bullish ) confirms the upward rally for the stock Overall chart shows downward movement in october followed by a small steep upward movement in November thereafter downtrend till second last week of december Chart ends with a strong signal of upward movement One can go long for short term considering support level of 300/295 as stop loss 56
In the above chart MACD (red line in the bottom of chart) line is below the Signal line (blue EXP9) depicts the down trend until the mid of October and thereafter coming close to signal line depicting the bounce back then MACD crossed upward Signal line confirming a Bullish trend (November) , this upward rally simultaneously reversed as soon as price felled below the 30 SMA even MACD signals bearish trend as it crossed blue signal line in downward direction thereafter in whole December MACD & Signal line moved simultaneously close to each other which means if further MACD significantly crossed signal line in either direction will result in major fall or upward movement ultimately in December end MACD crossed above signal line depicting a Bullish rally further.
Conclusion & Recommendations
Sr.No. 1.
Stock Nestle
Returns (%) 9.24
Future expected trend as per charts Bearish signal given by Dark Cloud Cover pattern Candlestick Chart ends with a strong upward movement signal One can go long for short term considering support level of 300/295 as stop loss
2.
HUL
-3.37
3.
ITC
-4.11
Upward rally may exist for a very short run hereafter and if stock broke the resistance of 180 level then it may follow further bullish trend with 164 as strong support level Uncertain & Indecision If stock broke the support level of 1700 then perhaps may a follow a downward rally up to the levels of 1500 which then becomes the support level for the stock Similarly if breaches 1900 level may follow a upward trend 58
4. 5.
DABUR P&G
-9.26 -17.09
Performance of various indices as of end March 2011 (in %)
Indices
1 month 9.38 8.93 10.98 7.95 9.09 7.23 12.17 9.16 19.17
3 month -4.9 -6.37 -4.45 -7.79 -9.22 -4.58 -0.73 -5.35 -17.54
6 month -3.25 -6.06 -2.45 -10.38 -12.27 8.09 -5.34 -4.41 -36.29
1 year 11.14 7.26 12.08 4.69 4.35 22.07 23.74 10.09 26.75 10.11 5.1 26.33 0.74 12.92 -5.3 34.46 16.46 16.38 20.94 13.18
S&P CNX Nifty S&P CNX 500 S&P CNX Defty CNX Nifty Junior CNX Midcap CNX IT Index CNX Bank Index CNX 100 CNX Realty Index
CNX Infrastructure Index CNX ENERGY CNX FMCG CNX MNC CNX PHARMA CNX PSE CNX PSU BANK CNX SERVICE Finance Petrochemicals Pharmaceuticals
9.47
-11.02
-17.28
9.22 5.25 3.71 4.73 7.6 7.96 10.5 8.96 9.02 5.19
-3.02 -2.35 -8.04 -10.81 -7.43 -0.79 -2.94 -6.46 -7.65 -10.43
-3.74 -4 -7.36 0.86 -13.47 -8.4 -2.1 -10.32 -16.32 0.22
The above data concludes that Technical analysis works on Market Sentiments (buyers & sellers psychology, emotions, sentiments & expectations) As such fundamentals are immaterial as far as technical analysis is concerned but it is assumed that market knows everything and the prices reflect all this. (I.e. Dow Theorys assumption that the stock market discounts all news. Stock prices quickly incorporate new information as soon as it becomes available. Once news is released, stock prices will change to reflect this new information.) For higher returns one should have long term investment horizon in the market. In short term investors may find market more Volatile and hence short term investment are more risky. FMCG index returns outperformed the Nifty and only PSU Banks index is above the FMCG in terms of % returns across varies indices of Nifty. FMCG index returns stands on 26.33% whereas Nifty returns is only 11.14%.
Conclusion and Recommendations

Technical Analysis does not answer what will prices be tomorrow, next week, or next year? It simply helps in making logical investing decision by predicting the trend and patterns with the help of past data. Only a minority of technicians can consistently and accurately determines future prices. However, even if investors are unable to accurately forecast prices, technical analysis can be used to consistently reduce risks and improve profits. Investors goal should simply be to improve the odds of making profitable trades. Even if analysis is as simple as determining the long-, intermediate-, and short-term trends of the security, they will have gained an edge that you would not have without technical analysis. A security's price represents the fair market value as agreed between buyers (bulls) and sellers (bears). Changes in price are the result of changes in investor expectations of the security's future price. Support levels occur when the consensus is that the price will not move lower. It is the point where buyers outnumber sellers. Resistance levels occur when the consensus is that the price will not move higher. It is the point where sellers outnumber buyers. The penetration of a support or resistance level indicates a change in investor expectations and a shift in the supply/demand lines. Volume is useful in determining how strong the change of expectations really is. Traders' remorse often follows the penetration of a support or resistance level as prices retreat to the penetrated level. Don't compound your losses by averaging down (i.e., don't keep buying additional shares at lower prices). It is tempting to think that a loss "doesn't count" until the position is closed-but it does! Anytime you own a security, ask yourself if you would buy it today. If you wouldn't buy it, you should consider selling it. Don't get distracted by others' investment prowess. Most investors only discuss their successes, threatening your focus and confidence. Wise investments aren't made with Ouija boards, they are made using logical approaches that minimize risks and maximize opportunities.
Master the basics. Most investors spend their time looking for easy money (which is not an easy search) instead of learning the key factors to security prices--supply and demand. Knowledge is the edge, for higher returns in long run pick up the stocks with Strong Fundamentals by applying fundamental analysis and then employs technical analysis for right timing the buying and selling point/level thus maximizes the return by following the right trend & pattern as suggested by stock chart. Fundamental analysis coupled with Technical analysis provides higher returns and reduces risk.
Bibliography
Websites www.investopedia.com www.icharts.in www.moneycontrol.com www.wikipedia.com www.equis.com/free/taaz/ www.yahoofinance.com www.googlefinance.com www.nseindia.com www.bseindia.com www.weboma.com/the-language-of-japanese-candlesticks-the-only-real-time-indicators/ Official Websites of, ITC DABUR INDIA HUL INDIA P&G INDIA NESTLE INDIA
E-books Technical Analysis from A to Z by Steven B. Achelis Appel, Gerald and Hitschler, Fred. Stock Market Trading Systems. Homewood, IL: Dow Jones-Irwin, 1980 Appel, Gerald. The Moving Average Convergence-Divergence Method. Great Neck, NY: Signalert, 1979. Edwards. Rpberts D. and Magee, John. Technical Analysis of Stock Trends. Sixth Edition. Boston, MA: John Magee, Inc., 1992 (Distributed by New York Institute of Finance.) Fosback, Norman G. Stock Market Logic. Chicago, IL: Dearborn Financial Publishing, Inc., 1992. Granville, Joseph E. New Strategy of Daily Stock Market Timing form Maximum Profits. Englewood Cliffs, NJ: Prentice-Hall Nison, Steve. Japanese Candlestick Charting Techniques. New York, NY: McGrawHill, Inc., 1991. O'Neil, William J. How to Make Money in Stocks. Second Edition. New York, NY: McGraw-Hill, Inc., 1995.

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Technical Analysis of Selected Indian FMCG Companies Stocks

1 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

2 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

8 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

FMCG (Fast Moving Consumer Goods) Sector

Technical Analysis of Selected Indian FMCG Companies Stocks

Indian FMCG Market Size (In US $ Billions)

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

FMCG Market Review FY 09-10 Result Highlights

Technical Analysis of Selected Indian FMCG Companies Stocks

(Source: KSA Technopak Consumer Outlook)

13 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

SWOT Analysis: Whole Industry!

Technical Analysis of Selected Indian FMCG Companies Stocks

15 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

17 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

21 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

22 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Candlesticks have two main parts: 1. Body and 2. Shadows

Technical Analysis of Selected Indian FMCG Companies Stocks

24 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Doji can be seen in some other different shapes too:

Sometimes Doji has a small body

Technical Analysis of Selected Indian FMCG Companies Stocks

26 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

27 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

28 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

30 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

32 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

33 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

Technical Analysis of Selected Indian FMCG Companies Stocks

35 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks

36 Kishor Sawal, SBJITMR Nagpur

Technical Analysis of Selected Indian FMCG Companies Stocks