A PROJECT REPORT ON

“A STUDY ON ANALYSIS OF EQUITY SHARE PRICE MOVEMENT”

Submitted in Partial fulfilment of requirement for the award of the Degree

Of

BACHELOR OF COMMERCE

By

BIRADAR AKASH

HT.NO:208618407023

Under the guidance of

BHAVANI RECHINTHALA MAM

2018-2021

1
 AVINASH DEGREE COLLEGE
(Affiliated to Osmania University)
L.B. Nagar, Hyderabad
Department of commerce
Certificate

This is to certify that the Project Report titled “A STUDY ON ANALYSIS OF

EQUITY SHARE PRICE MOVEMENT” is the bonafide work done by
BIRADAR AKASH bearing Hall Ticket No: 208618407023 submitted in partial
fulfilment of requirements for the award of the degree of BACHELOR OF
COMMERCE (HONOURS) of Osmania University, Hyderabad during the
academic year 2018-2021.

Place: Hyderabad

Internal Guide External Examiner

Principal

2
DECLARATION

I hereby declare that the Project work entitled “A STUDY ON ANALYSIS OF

EQUITY SHARE PRICE MOVEMENT” submitted to Department of
Commerce, Avinash Degree College L.B.Nagar ,Hyderabad (affiliated to
Osmania University) is a bonafide record of original work done by me under the
guidance of Bhavani Rechinthala Mam and this project work is submitted in the
partial fulfilment of the requirements for the award of the degree of BACHELOR
OF COMMERCE .This record has not been submitted to any other University or
Institute for the award of any degree or diploma.

Place: L.B. Nagar, Hyderabad

Date:

((())
((((((((((((((( ((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((
((( ((((((((((((( (

BIRADAR AKASH

HT.NO:208618407023

3
ACKNOWLEDGEMENT

I would like to express sense of gratitude to our Management, Dr. Ratna Kalpeti,
Principal, Avinash Degree College, L.B.Nagar, Hyderabad,
I thank my Guide, Bhavani Rechinthala Mam for her valuable guidance and support
in completing the project. I am also thankful to the entire faculty and staff members of
our college for their kind co-operation.
Lastly, I would like to express my love and affection to my beloved parents and best
wishes towards our classmates providing us the moral support and encouragement.

(BIRADAR AKASH)

4
INDEX

CONTENTS PAGE No.

Abstract 2
CHAPTER 1 3-7
1.1 Introduction to study 4
1.2 Need of the study 5
1.3 Objectives 6
1.4 Scope of the study 6
1.5 Research methodology 7
CHAPTER 2 8-25
2.1 Theoretical Frame work 9-21
2.2 Articles/journals 22-26
CHAPTER 3 27-38
3.1 Industry profile 28-33
3.2 Company profile 34-38
CHAPTER 4
Data analysis and interpretation 39-50
CHAPTER 5
5.1 Findings 52-53
5.2 Suggestions 54

5.3 Conclusions 55
Bibliography 56

5
 ABSTRACT

Investment may be defined as an activity that commits funds in any financial form in
the present with an expectation of receiving additional return in the future. The
expectations bring with it a probability that the quantum of return may vary from a
minimum to a maximum. This possibility of variation in the actual return is known as
investment risk. Thus every investment involves a return and risk.
Investment is an activity that is undertaken by those who have savings. Savings can be
defined as the excess of income over expenditure. An investor earns/expects to earn
additional monetary value from the mode of investment that could be in the form of
financial assets.

The purpose of studying share price movements is to know how economic, business,
and sometimes human factors play important role in trading & to study proper
monitoring, market research and market timing for business. Stock trading entails a
lot of analysis from a company’s retained earnings for its outstanding shares to the
more complex algorithms expressed in stock market charts with all the technical
signals. Studying price movements and market fluctuations are now made easier
through computer monitor with the development of analysis software. Equity analysis
forms an integral part of the share trading experience. Equity analysis decides the
instance one would take in the share trading industry. Finding out the highs and lows
in the market and analyzing the equity is of utmost importance before making any sort
of investment. Technical analysis, fundamental analysis and others form a part of the
equity analysis.

6
 CHAPTER-I

INTRODUCTION

7
 1.1 INTRODUCTION

The Indian capital Market has witnessed a tremendous growth. There was an

explosion of investor interest during the nineties and an Equity Guilt emerged in

statutory legislations has helped the capital market. Foreign Exchange regulation act is

one such legislation in this direction. An important recent development has been the

Entry of Foreign Institutional investors are participants to the primary and secondary

markets for the securities the security prices reflect the performance of a company.

Both economic and noneconomic factors invariably affect stock return behavior.

Investment environment encompasses the kinds of marketable securities that exist and

where and how they are bought and sold. Investment process is concerned with how

an investor should proceed in making decisions about what marketable securities to

invest in, how extensive the investments should be and when the investments should

made.

Equity investment generally refers to buying and holding of shares of stock on a stock

market by individuals and firms in anticipation of income from dividend and capital

gain as the value of the stock rises. It also sometimes refers to the acquisition of equity

(ownership) participation in private (unlisted) company or start up (a company being

created or newly created). When investment is in infant companies, it is referred to as

venture capital investing and is generally understood to be higher risk than investment

in listed going-concern situation. How to invest in Equity Shares? Investors can buy

equity shares of a company from security market that is from primary market or

secondary. The primary market provides the channel for sale of new securities.

Primary market provides opportunity to issuers of securities; Government as well as

corporate, to raise resources to meet their requirements of investment and/or discharge

8
some obligations some obligations. Investors can buy shares of a company through

IPO (Initial Public Offerings) when it is first time issued to the public. Once shares are

issued to the public it is traded in the secondary market. Stock exchange only acts as

facilitator for trading of equity shares. Anyone who wishes to buy shares of company

can buy it from an existing shareholder of a company.

INVESTMENT AVENUES

There are a large number of investment avenues for savers in India. Some of them are

marketable and liquid, while others are non-marketable. Some of them are highly risky

while some others are almost risk less.

Investment avenues can be broadly categorized under the following heads:

 Corporate securities

 Equity shares.

 Preference shares.

 Debentures/Bonds.

 Derivatives.

 Others.

1.2 NEED FOR THE STUDY

The purpose of studying share price movements is to know how economic, business,

and sometimes human factors play important role in trading & to study proper

monitoring, market research and market timing for business. Stock trading entails a lot

of analysis from a company’s retained earnings for its outstanding shares to the more

complex algorithms expressed in stock market charts with all the technical signals.

Studying price movements and market fluctuations are now made easier through

9
computer monitor with the development of analysis software. Equity analysis forms an

integral part of the share trading experience. Equity analysis decides the instance one

would take in the share trading industry. Finding out the highs and lows in the market

and analyzing the equity is of utmost importance before making any sort of

investment. Technical analysis, fundamental analysis and others form a part of the

equity analysis.

1.3 OBJECTIVES

 To analyse the online trading and its process.

 To understand fluctuations of share price over a period of time

 To study the analysis of price movement of shares and company

performance with respect to information available with India info line.

 To evaluate present system of trading of securities at sharekhan,

Hyderabad

 To bring out suggestions on how to improve the trading system to reach

maximum people.

1.4 SCOPE OF THE STUDY

This study covers introduction to capital markets and trading to serve as basic material

for capital market operations.

This study is conducted at Hyderabad and will not represent all India data. However

basic fundamentals have been brought out which can be for the study in large scale

studies.

10
 1.5 RESEARCH METHODOLOGY

Primary data has been collected by observing the share price movements at India info

line Hyderabad consisting of trading faculty experts and stock exchange people &

experts opinion from marketing.

Sources used to collect data are secondary data are as the following sources:

 Books

 Stock exchange bulletins

 BSE data

 NSE data

TECHNIQUES OF DATA ANALYSIS

MOVING AVERAGE METHOD:

 It is a technique to get an overall idea of the trend in a data set it is an average

of any subset of numbers. The moving average is extremely useful for

forecasting long term trends. You can calculate it for any period of time.

 Year over year analysis= (Last year sales – current year sales)/ Last year
volume*100.

 Difference between share price = Day closed price – Last trade closed price.

 Percentage change in share price = Difference between share price/Day closed

price.

11
.

CHAPTER-II

THEORITICAL FRAME WORK

LITERATURE REVIEW

12
 2.1 THEORITICAL FRAME WORK

INTRODUCTION OF STOCK EXCHANGE

The concept of capital market is in a way 127 years old. Capital market was known as

“share bazaar” it was also treated as a ”satta bazaar” starting of capital market concept

in India took place with the birth of Bombay Stock Exchange.

A securities contract (Regulation) Act of 1956 of India was first major step to

recognize capital market. Bombay Stock Exchange got first recognition in 1956 under

this act. Bombay Stock Exchange, which was the major stock exchange, in way had

monopoly in the Indian capital market till the birth of National Stock Exchange.

Bombay Stock Exchange celebrated its 125th jubilee year in the 2000. The capital

market, the stock exchange, the Equity concept was baby till 1960. And the concept of

mutual fund was introduced by the government with the formation of Unit Trust of

India in 1963-64.

Capital market in India is a new development compared to the western world. India

was known as under developed country from the view point of economic and

industrial growth. After getting freedom in 1947, India started thinking about planned

development in 1948. The first industrial policy development statement was made on

April 6th 1948.

The concept of capital market is directly linked with industrial development of

country. It is also treated as barometer of economic growth. Industrial development

started in India in 19th century, there were very few entrepreneurs known as Tatas,

13
Birlas, etc. who started industries in their own country i.e. India. In the 20 th century

first quarter, this group started big industries in major metropolitan cities.

By providing a market quotation of the prices of shares and bonds a sort of collective

judgment simultaneously reached by many buyers and sellers in the market. The stock

exchanges serve the role of barometer, not only the state of health of individual

companies, but also of the nation’s economy as a whole.

Another important function that the stock exchange in India discharge is of providing

market for gilt-edged securities i.e. securities issued by the government sectors,

municipalities, improvement trust, and other public bodies.

There are 22 stock exchange in India, the first being the Bombay Stock Exchange

(BSE),which began formal trading in 1875, making it one of the oldest in Asia. Over

the last few years, there has been a rapid change in the Indian securities market,

especially in the secondary market. Advanced technology and online-based

transactions have modernized the stock exchanges. In terms of the number of

companies listed and total market capitalization, the Indian equity market is

considered large relative to the country’s stage of economic development.

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BOMBAY STOCK EXCHANGE

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich

heritage. Popularly known as “BSE”, it was established as “The Native Share & stock

Brokers Association” in 1875. It is the first stock exchange in the country to obtain

permanent recognition in 1956 from the Government of India under the Securities

Contract Act, 1956. The Exchange’s pivotal and pre-eminent role in the development

of the Indian capital market is widely recognized and its index, SENSEX, is tracked

worldwide. Earlier an Association of persons (AOP), the Exchange is now a

demutualised and corporative entity incorporated under the provisions of the

Companies Act, 1956, pursuant to the BSE Scheme, 2005 notified by the securities

and Exchange Board of India (SEBI). With demutualization, the trading rights and

ownership rights have been de-linked effectively addressing concerns regarding

perceived and real conflicts of interest. The Exchange is professionally managed under

the overall direction of the Board of Directors. The Board comprises eminent

professionals, representatives of Trading members and the Managing Director of the

Exchange. The Board is inclusive and is designed to benefit from the participation of

market intermediaries. In terms of organization structure, the Board formulates larger

policy issues and exercises over-all control. The committees constituted by the Board

are broad-based.

NATIONAL STOCK EXCHANGE

NSE was incorporated in November 1992 with an equity capital of Rs. 25

crores. The International Securities Consultancy (ISC) of Hong Kong has

helped in setting up NSE. ISE has prepared the detailed business plans and

15
installation of hardware and software systems. The promotions for NSE were

financial institutions, insurances companies, banks and SEBI Capital Market

Ltd. It has been set up to strengthen the move towards professionalizing of the

capital market was well as provide nation wide securities trading facilities to

investors.

NSE is not an exchange in the traditional sense where brokers own and manage

the exchange. A two tier administrative set up involving a company board and

a governing board in envisaged.

NSE is a national market for shares PSU bonds, debentures and government

securities since infrastructure and trading facilities are provided.

INTRODUCTION OF CAPTIAL MARKET

INTRODUCTION

Companies raise long term funds from the capital markets. Finance managers should,

therefore, know the ways in which securities are traded and pried in the capital

markets. They should also know the procedures to be followed in issuing securities.

Securities will be fairly priced in the capital markets if they are efficient.

CAPITAL MARKET EFFICIENCY

Capital markets facilitate the buying and selling of securities such as shares and

bonds. They perform two valuable functions: liquidity and pricing securities.

Liquidity means the convenience and speed of transforming assets into cash, or

transferring assets from one person to another without any loss of value. Cash in the

16
most liquid asset as it can be readily converted into any other asset, or transferred to

another person without any decline in value.

Capital markets make securities liquid. They facilitate the buying and selling of

securities by a large number of investors continuously and instantaneously without

incurring significant cost. They help to reduce, if not eliminate, transaction costs. For

ensuring the liquidity, capital markets do require certain investors who are always

ready to buy or sell securities. These market makers enhance liquidity and reduce

transaction cost.

MEASURES TO PROMOTE CAPITAL MARKET

Many important policy measures were announced by the Government in Nineties to

promote the capital market which may be briefly set out below.

1. The utilization of the proceeds of the Mega issues of more than Rs.50 crores will

be monitored by the concerned financial institutions. A provision is also made for a

minimum subscription of 90% for a public issue before allotment can be made.

2. The Government has approved the creation of over the counter exchange of India

(OTC) sponsored by leading financial institutions which would help the introduction

of a multi-tiered market for securities.

3. The employee’s option scheme was partially modified restricting the allotment of

the unavailed portion of the public/rights issues earmarked for employee only to

financial or investment institutions or mutual funds.

4. In January 1990, the Government modified the guidelines for bonus shares.

According to the new guidelines, a company may make a further application for issue

of bonus shares after 12 months instead of 24 months previously, from the date of

sanction of the earlier issue, besides, it was announced in January 1991 that no prior

17
sanction of Govt. is necessary for the issue of bonus share up to Rs.1 crore, provided

the companies follow the normal guidelines.

SPECIAL FEATURES OF THE INDIAN CAPITAL MARKET

The capital market in India has exhibited some special features in the recent years

which are noting here.

1. Greater reliance on debt instruments as against equity and in particular,

borrowing from financial institutions.

2. Issue of debentures, particularly convertible debentures with automatic or

compulsory conversion into equity without the normal option given to investors.

3. Floatation of mega issues for the purpose of take over amalgamation, etc. and

avoidance of borrowing from financial institutions for the fear of their discipline and

conversion clause by the bigger companies, which has now become optional.

4. Avoidance of underwriting by some companies to reduce the costs.

5. Fast growth of mutual funds and subsidiaries of banks for financial services

leading to larger mobilization of saving from the capital market.

SEBI AND ITS ROLE

The Securities and Exchange Board of India (SEBI) is the regulatory Authority in

India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for

establishment of Securities and Exchange Board of India (SEBI) with statutory powers

for (a) protecting the interests of investors in securities (b) promoting the development

of the securities market and (c) regulating the securities market. Its regulatory

jurisdiction extends over corporate in the issuance of capital and transfer of securities,

in addition to all intermediaries and persons associated with securities market. SEBI

18
 has been obligated to perform the aforesaid functions by such measures as it thinks fit.

In particular, it has powers for:

 Regulating the business in stock exchanges and any other securities

Markets

 Registering and regulating the working of stock brokers, sub–brokers etc.

 Promoting and regulating self-regulatory organizations

 Prohibiting fraudulent and unfair trade practices

 Calling for information from, undertaking inspection, conducting

Inquiries and audits of the stock exchanges, intermediaries, self–Regulatory

organizations, mutual funds and other persons associated with the securities market.

PARTICIPANTS IN THE SECURITIES MARKET

The securities market essentially has three categories of participants, namely, the

issuers of securities, investors in securities and the intermediaries, such as merchant

bankers, brokers etc. While the corporate and government raise resources from the

securities market to meet their obligations, it is households that invest their savings in

the securities market.

The securities market can again be classified into

PRIMARY MARKET

A primary market is a market where securities are issued to the public for the first

time. New issues are dealt within this market. The new issues market has three

functions to perform – origination, underwriting and distributions. There are two ways

by which a company may raise capital in primary market.

i. Public issue

19
ii. Private placement

Primary market provides opportunity to issuers of securities; Government as well as

Corporate, to raise resources to meet their requirements of investment and/or discharge

some obligation. They may issue the securities at face value, or at a discount/premium

and these securities may take a variety of forms such as equity, debt etc. They may

issue the securities in domestic market and/or international market.

Intermediate in the primary market are merchant bankers, collecting bankers,

registrants and transfer agents, broker underwriters, underwriters, advertising agencies,

printers, sub-brokers and solicitors and mailing agents.

FACE VALUE OF A SHARE / DEBENTURE

The nominal or stated amount (in Rs.) assigned to a security by the issuer. For shares,

it is the original cost of the stock shown on the certificate; for Bonds, it is the amount

paid to the holder at maturity. Also known as par Value or simply par. For an equity

share, the face value is usually a very small amount (Rs. 1, Rs. 10) and does not have

much bearing on the price of the share, which may quote higher in the market, at Rs.

100 or Rs. 1000 or any other price. For a debt security, face value is the amount repaid

to the investor when the bond matures (usually, Government securities and corporate

bonds have a face value of Rs. 100). The price at which the security trades depends on

the fluctuations in the interest rates in the economy.

PREMIUM AND DISCOUNT IN A SECURITY MARKET

Securities are generally issued in one to any denominations. This is known as the Face

Value or Par Value of the security as discussed earlier. When a security is sold above

20
its face value, it is said to be issued at a Premium and if it is sold at less than its face

value, then it is said to be issued at a Discount.

ISSUE OF SHARES

WHY DO COMPANIES NEED TO ISSUE SHARES TO THE

PUBLIC?

Most companies are usually started privately by their promoter(s). However, the

promoters’ capital and the borrowings from banks and financial institutions may not

be sufficient for setting up or running the business over a long term. So companies

invite the public to contribute towards the equity and issue shares to individual

investors. The way to invite share capital from the public is through a ‘Public Issue’.

Simply stated, a public issue is an offer to the public to subscribe to the share capital

of a company. Once this is done, the company allots shares to the applicants as per the

prescribed rules and regulations laid down by SEBI.

WHAT ARE THE DIFFERENT KINDS OF ISSUES?

Primarily, issues can be classified as a Public, Rights or Preferential issues (also

known as private placements). While public and rights issues involve a detailed

procedure, private placements or preferential issues are relatively simpler.

THE CLASSIFICATION OF ISSUES IS ILLUSTRATED

BELOW

INITIAL PUBLIC OFFERING (IPO)

Is when an unlisted company makes either a fresh issue of securities or an offer for

sale of its existing securities or both for the first time to the public. This paves way for

listing and trading of the issuer’s securities.

21
A follow on public offering (Further Issue) is when an already listed company makes

either a fresh issue of securities to the public or an offer for sale to the public, through

an offer document.

RIGHTS ISSUE

Is when a listed company which proposes to issue fresh securities to its existing

shareholders as on a record date. The rights are normally offered in a particular ratio to

the number of securities held prior to the issue. This route is best suited for companies

who would like to raise capital without diluting stake of its existing shareholders.

A PREFERENTIAL ISSUE

Is an issue of shares or of convertible securities by listed companies to a select group

of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue

nor a public issue. This is a faster way for a company to raise equity capital. The issuer

company has to comply with the Companies Act and the requirements contained in the

Chapter pertaining to preferential allotment in SEBI guidelines which inter-alias

include pricing, disclosures in notice etc.

WHAT IS MEANT BY ISSUE PRICE?

The price at which a company's shares are offered initially in the primary market is

called as the Issue price. When they begin to be traded, the market price may be above

or below the issue price.

WHAT IS AN INITIAL PUBLIC OFFER (IPO)?

An Initial Public Offer (IPO) is the selling of securities to the public in the primary

market. It is when an unlisted company makes either a fresh issue of securities or an

offer for sale of its existing securities or both for the first time to the public. This paves

way for listing and trading of the issuer’s securities.

22
WHO DECIDES THE PRICE OF AN ISSUE?

Indian primary market ushered in an era of free pricing in 1992. Following this, the

guidelines have provided that the issuer in consultation with Merchant Banker shall

decide the price. There is no price formula stipulated by SEBI. SEBI does not play any

role in price fixation. The company and merchant banker are however required to give

full disclosures of the parameters which they had considered while deciding the issue

price. There are two types of issues, one where company and Lead Merchant Banker

fix a price (called fixed price) and other, where the company and the Lead Manager

(LM) stipulate a floor price or a price band and leave it to market forces to determine

the final price (price discovery through book building process).

PRICE DISCOVERY THROUGH BOOK BUILDING PROCESS

Book Building is basically a process used in IPO’s for efficient price discovery. It is a

mechanism where, during the period for which the IPO is open, bids are collected

from investors at various prices, which are above or equal to the floor price. The offer

price is determined after the bid closing date.

SECONDARY MARKET

Secondary market is a market where securities, which have already issued in the

primary market, are traded. Secondary market comprises of equity markets and the

debt markets. This market consists of all stock exchanges recognized by the Govt. of

India, and is regulated under the securities contract (regulation) Act 1956. The BSE is

the principle stock exchange in India, which sets the tone of the other stock markets.

Intermediate in secondary market are brokers, jobbers, dealers, arbitrators, investment

advisors, portfolio managers and sub-brokers.

ROLE OF SECONDARY MARKET

23
For the general investor, the secondary market provides an efficient platform for

trading of his securities. For the management of the company, Secondary equity

markets serve as a monitoring and control conduit—by facilitating value-enhancing

control activities, enabling implementation of incentive-based management contracts,

and aggregating information (via price discovery) that guides management decisions.

PRODUCTS IN THE SECONDARY MARKET

Following are the main financial products/instruments dealt in the Secondary market

which may be divided broadly into Shares and Bonds:

SHARES

EQUITY SHARES

An equity share, commonly referred to as ordinary share, represents the form of

fractional ownership in a business venture.

RIGHTS ISSUE/ RIGHTS SHARES

The issue of new securities to existing shareholders at a ratio to those already held, at a

price. For e.g. a 2:3 rights issue at Rs. 125, would entitle a shareholder to receive

2shares for every 3 shares held at a price of Rs. 125 per share.

BONUS SHARES

Shares issued by the companies to their shareholders free of cost based on the number

of shares the shareholder owns.

PREFERENCE SHARES

Owners of these kind of shares are entitled to a fixed dividend or dividend calculated

at a fixed rate to be paid regularly before dividend can be paid in respect of equity

share. They also enjoy priority over the equity shareholders in payment of surplus. But

24
in the event of liquidation, their claims rank below the claims of the company’s

creditors, bondholders/debenture holders.

CUMULATIVE PREFERENCE SHARES

A type of preference shares on which dividend accumulates if remained unpaid. All

arrears of preference dividend have to be paid out before paying dividend on equity

shares.

CUMULATIVE CONVERTIBLE PREFERENCE SHARES

A type of preference shares where the dividend payable on the same accumulates, if

not paid. After a specified date, these shares will be converted into equity capital of

the company.

DIFFERENCE BETWEEN THE PRIMARY MARKET AND THE

SECONDARY MARKET

In the primary market, securities are offered to public for subscription for the purpose

of raising capital or fund. Secondary market is an equity trading venue in which

already existing/pre-issued securities are traded among investors. Secondary market

could be either auction or dealer market. While stock exchange is the part of an

auction market, Over-the-Counter (OTC) is a part of the dealer market

25
 LITERATURE REVIEW

A Study on Market Statics and Technical Analysis

Lawrence Blume, David Easly and Meureen O'Hara Wiley for American finance

Association, March 2010.

The Role of Volume researchers explore that role of volume and its application for

technical analysis. Researcher also shows that how volume, information and price are

associated with each other and shows that how volume and price are edifying and also

shows that trader who uses information contained in market statistics do better than

traders who do not. Technical analysis of market data has long been a pervasive

activity in both security and futures market, technical analysis believe that price and

volume data provide indicators of future price movements, and that by examing these

data, information may be extracted on the fundamentals driving returns if markets are

efficient in the sense that the current price impounds all information, then such activity

is clearly pointless. But if the process by which prices adjust to information is not

immediate, then market statistics may impound information that is not at incorporated

into the current market price. In particular, volume may be informative about the

process of security returns.

26
A Study on Technical analysis on selected stocks of energy sector

R chithra, International Journal of Management & Business Studies, March 2011.

Technical analysis of market data has long been a pervasive activity in both security

and futures market, technical analysis believe that price and volume data provide

indicators of future price movements, and that by examing these data, information may

be extracted on the fundamentals driving returns if markets are efficient in the sense

that the current price impounds all information, then such activity is clearly pointless.

But if the process by which prices adjust to information is not immediate, then market

statistics may impound information that is not at incorporated into the current market

price. In particular, volume may be informative about the process of security returns.

A Study on Trading Signal Generation Using a Combination of Chart Pattern

and Indicators

Chalothon Chootong and Ohm Sornil, International Journal of Computer Science,

Nov 2012.

Researcher presents a trading tactic combining with price movement pattern,

candlestick chart pattern and trading indicators including Moving Averages,

Exponential Moving Averages, Bollinger Bands, On Balance Volume, Relative

Strength Index, Moving Averages Convergence Divergence and Stochastic Oscillators

with intend to boost the return on investment. Chart patterns and indicators are popular

technical tools for making investment decisions. This article presents a trading strategy

combining price movement patterns, candlestick chart patterns, and trading indicators,

including Moving Average, Exponential Moving Average, Bollinger Bands, On

Balance Volume, Relative Strength Index, Moving Average Convergence Divergence,

and Stochastic Oscillator, with the aim to increase the return on investment. A neural

27
network ensemble is employed to determine buy and sell signals on the next trading

day. Experimental results, using stocks from five different industries in Stock

Exchange of Thailand, show that the proposed strategy yields higher returns than do

traditional technical trading methods Keywords Stock Trading Signals, Chart P

A study on Price Momentum and Trading Volume

CHARLES M. C. LEE and BHASKARAN SWAMINATHAN , THE JOURNAL OF

FINANCE • VOL. LV, NO. 5 • OCT. 2000

This study shows that past trading volume provides an important link between

“momentum” and “value” strategies. Specifically, we find that firms with high low!

Past turnover ratios exhibit many glamour value! Characteristics, earn lower higher!

Future returns, and have consistently more negative positive! Earnings surprises over

the next eight quarters. Past trading volume also predicts both the magnitude and

persistence of price momentum. Specifically, price momentum effects reverse over the

next five years, and high low! Volume winners losers! Experience faster reversals.

Collectively, our findings show that past volume helps to reconcile intermediate-

horizon “underreaction” and long-horizon “overreaction” effects.

A Study on Intraday Liquidity Pattern in Indian Stock Market

R. Krishnan and Vinod Mishra, Monash Economics Working Papers

Researcher study the liquidity pattern and to identify any commonality across liquidity

mearsures, using one year intraday data from India’s National Stock Exchange (NSE).

28
Researcher found that most of the volume ans spread connected liquidity mearsures

display an intraday U-shape pattern.

A Study on Technical Analysis of Share Price Movement with Special Reference

to Public Sector Bank

A. Jayakumar and K. Sumathi International Research Journal of Business and

Management, sept 2013.

Researcher found that various factors influence the share prices of banking companies.

For the analysis of bank share price internal and external factor also measured which

affects the share price.

A Study on Equity Share Price Volatility of Selected Private Banks in (NSE)

Stock Exchange

A. JOHN WILLIAM & T. VIMALA, International Journal of Research in Applied, Natural

and Social Sciences.

Banks play a vital role in building the economics of an individual as well as nation. In

India banking sector has greater importance as its forms the lifeline of economic

activity of both rural and urban areas. So the Changes in stock price volatility of

banks will be influencing the individual as well as nation further the study analyzed

the a group of select banks and its market volatility by using mean, standard deviation

and beta value using the opening and closing prices.

A Study on Analysis of Stock Price Movement

Robert P. Schumaker and Nick Maida, Communications of the IIMA: Vol. 16 : Iss. 1 ,

Article 1, 2018.

29
What effect does a financial news article have on stock price? To answer this question

we investigate stock price movements within the minutes following financial news

releases, broken down by media outlet, time of release and article sentiment. Using a

Sharpe ratio (a measure for calculating risk-adjusted return) we demonstrated an

abnormal return of 1.81 versus a random dataset of -0.06, indicating significant price

movement immediately following article release. Second, we found that articles

released through WSJ, Reuters – UK Focus, NYT and FT experienced significant

positive returns, whereas articles in Barrons, MarketWatch, Forbes and Bloomberg

experienced significant negative returns. Third, we found that articles released at

certain times of the day had abnormally high price movements associated with them,

more so than could be attributed to random chance. Lastly we discovered a minority

of positive news articles trending upwards and suddenly reversing direction following

a financial news article release. In one particular case there was a several days period

where IBM news articles triggered large price declines. We believe these findings

could be used by companies as a form of stock price management.

30
 CHAPTER-III

INDUSTRY PROFILE

&

COMPANY PROFILE

31
 3.1 INDUSTRY PROFILE

BOMBAY STOCK EXCHANGE

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich

heritage. Popularly known as "BSE", it was established as "The Native Share & Stock

Brokers Association" in 1875. BSE has played a pioneering role in the Indian

Securities Market - one of the oldest in the world. Much before actual legislations

were enacted, BSE had formulated comprehensive set of Rules and Regulations for the

Indian Capital Markets. It also laid down best practices adopted by the Indian Capital

Markets after India gained its Independence.

VISION

"Emerge as the premier Indian stock exchange by establishing global benchmarks"

BSE is the first stock exchange in the country to obtain permanent recognition in

1956 from the Government of India under the Securities Contracts (Regulation) Act,

1956.The Exchange's pivotal and pre-eminent role in the development of the Indian

capital market is widely recognized and its index, SENSEX, is tracked worldwide.

SENSEX, first compiled in 1986 was calculated on a "Market Capitalization-

Weighted" methodology of 30 component stocks representing a sample of large, well-

established and financially sound companies. The base year of SENSEX is 1978-79.

32
From September 2003, the SENSEX is calculated on a free-float market capitalization

methodology. The "free-float Market Capitalization-Weighted" methodology is a

widely followed index construction methodology on which majority of global equity

benchmarks are based.

The launch of SENSEX in 1986 was later followed up in January 1989 by introduction

of BSE National Index (Base: 1983-84 = 110). It comprised of 110 stocks listed at five

major stock exchanges in India at Mumbai, Calcutta, Delhi, Ahmadabad and Madras.

The BSE National Index was renamed as BSE-110 Index from October 14, 1996 and

since then it is calculated taking into consideration only the prices of stocks listed at

BSE. The Exchange launched dollar-linked version of BSE-110 index i.e. Dollex-110

on May 22, 2006. The Exchange constructed and launched on 27th May, 1994, two

new index series viz., the 'BSE-200' and the 'DOLLEX-200' indices. The launch of

BSE-200 Index in 1994 was followed by the launch of BSE-500 Index and 5 sectoral

indices in 1999. In 2001, BSE launched the BSE-PSU Index, DOLLEX-30 and the

country's first free-float based index - the BSE TECK Index. The Exchange shifted all

its indices to a free-float methodology (except BSE PSU index).

The Exchange has a nation-wide reach with a presence in 417 cities and towns of

India. The systems and processes of the Exchange are designed to safeguard market

integrity and enhance transparency in operations. During the year 2005-2006, the

trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debt

instruments and derivatives. The BSE's On Line Trading System (BOLT) is a

33
proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance

and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

The Exchange is professionally managed under the overall direction of the Board of

Directors. The Board comprises eminent professionals, representatives of Trading

Members and the Managing Director of the Exchange. The Board is inclusive and is

designed to benefit from the participation of market intermediaries.

BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is the

benchmark equity index that reflects the robustness of the economy and finance. It was

the

 First in India to introduce Equity Derivatives

 First in India to launch a Free Float Index

 First in India to launch US$ version of BSE Sensex

 First in India to launch Exchange Enabled Internet Trading Platform

 First in India to obtain ISO certification for Surveillance, Clearing & Settlement

 'BSE On-Line Trading System’ (BOLT) has been awarded the globally

recognized the Information Security Management System standard

BS7799-2:2002.

 First to have an exclusive facility for financial training

 Moved from Open Outcry to Electronic Trading within just 50 days

In 2002, the name The Stock Exchange, Mumbai, was changed to BSE. BSE, which

had introduced securities trading in India, replaced its open outcry system of trading in

1995, when the totally automated trading through the BSE Online trading (BOLT)

system was put into practice. The BOLT network was expanded, nationwide, in 1997.

It was at the BSE's International Convention Hall that India’s 1st Bell ringing

34
ceremony in the history Capital Markets was held on February 18th, 2002. It was the

listing ceremony of Bharti Tele ventures Ltd.

BSE with its long history of capital market development is fully geared to continue its

contributions to further the growth of the securities markets of the country, thus

helping India increase its sphere of influence in international financial markets.

NATIONAL STOCK EXCHANGE OF INDIA

LIMITED
The National Stock Exchange of India Limited has genesis in the report of the High

Powered Study Group on Establishment of New Stock Exchanges, which

recommended promotion of a National Stock Exchange by financial institutions (FIs)

to provide access to investors from all across the country on an equal footing. Based

on the recommendations, NSE was promoted by leading Financial Institutions at the

behest of the Government of India and was incorporated in November 1992 as a tax-

paying company.

On its recognition as a stock exchange under the Securities Contracts (Regulation)

Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market

(WDM) segment in June 1994. The Capital Market (Equities) segment commenced

operations in November 1994 and operations in Derivatives segment commenced in

June 2000.

The national stock exchange of India ltd is the largest stock exchange of the country.

NSE is setting the agenda for change in the securities markets in India. For last 5 years

35
it has played a major role in bringing investors from 347 cities and towns online,

ensuring complete transparency, introducing financial guarantee to settlements,

ensuring scientifically designed and professionally managed indices and by nurturing

the dematerialization effort across the country.

NSE is a complete capital market prime mover. It’s wholly owned subsidiaries,

National securities cleaning corporation ltd (NSCCL) provides cleaning and settlement

of securities, India index services and products ltd (IISL) provides indices and index

services with a consulting and licensing agreement with Standard & Poor’s (S&P), and

IT ltd forms the technology strength that NSE works on.

Today, NSE is one of the largest exchanges in the world and still forging ahead. At

NSE, we are constantly working towards creating a more transparent, vibrant and

innovative capital market.

OVER THE COUNTR EXCHANGE OF INDIA

OTCEI was incorporated in 1990 as a section 25 company under the companies Act

1956 and is recognized as a stock exchange under section 4 of the securities Contracts

Regulation Act, 1956. The exchange was set up to aid enterprising promotes in raising

finance for new projects in a cost effective manner and to provide investors with a

transparent and efficient mode of trading Modeled along the lines of the NASDAQ

market of USA, OTCEI introduced many novel concepts to the Indian capital markets

such as screen-based nationwide trading, sponsorship of companies, market making

and scrip less trading. As a measure of success of these efforts, the Exchange today

has 125 listings and has assisted in providing capital for enterprises that have gone on

36
to build successful brands for themselves like VIP Advanta, Sonora Tiles & Brilliant

mineral water, etc.

NEED FOR OTCEI

Studies by NASSCOM, software technology parks of India, the venture capitals funds

and the government’s IT tasks Force, as well as rising interest in IT, Pharmaceutical,

Biotechnology and Media shares have repeatedly emphasized the need for a national

stock market for innovation and high growth companies.

Innovative companies are critical to developing economics like India, which is

undergoing a major technological revolution. With their abilities to generate

employment opportunities and contribute to the economy, it is essential that these

companies not only expand existing operations but also set up new units. The key

issue for these companies is raising timely, cost effective and long term capital to

sustain their operations and enhance growth. Such companies, particularly those that

have been in operation for a short time, are unable to raise funds through the

traditional financing methods, because they have not yet been evaluated by the

financial world.

WHO WOULD FIND OTCEI HELPFUL?

 High-technology enterprises

 Companies with high growth potential

 Companies focused on new product development

 Entrepreneurs seeking finance for specific business projects

37
The Indian economy is demonstrating signs of recovery and it is essential that these

companies have suitable financing alternative to fund their growth and maintain

competitiveness.

3.2 COMPANY PROFILE

SSKI, a veteran equities solutions company with over 8 decades of experience in the

Indian stock markets. The SSKI Group companies of institutional Broking and

Corporate Finance. The institutional broking division caters to domestic and foreign

institutional investors, while the Corporate Finance Division focuses on ninche areas

such as infrastructure, telecom and media, SSKI has been voted as the Top Domestic

Brokerage House in the research category, by the Euro Money survey and Asia Money

survey.

Share khan is also about focus. Sharekhan does not claim expertise in too many things.

Sharekhan’s exoertise lies in stocks and that’s what he talks about with authority. So

when he says that investing in stocks should not be confused with trading in stocks or

a portfolio-based strategy is better than betting on a single horse, it is some thing that

is spoken with years of focused learning and experience in the stock markets. And

these beliefs are reflected in everything Sharekhan does for you!

38
Share khan India’s leading stockbroker is the retail arm of SSKI, An organization

with over eighty years experience in the stock market. With over 240share shops in

111 Cities, and India’s premier online trading destinations-www.sharekhan.com, ours

customer enjoy multi-channel access at the stock markets, share khan offer u trade

execution facilities for cash as well as derivatives on the BSE &NSE and most

importunity we bring you investment advice tempered by eighty years of broking

experience.

Through our portal Sharekhan.com, we’ve been providing investors a powerful online

trading platform, the latest news, research and other knowledge-based tools for over

5years now. We have dedicated terms for fundamental and technical research so that

you get all the information you need to take the right investment decisions. With

branches and outlets across the country, our ground network is one of the biggest in

India. We have a talent pool of experienced professionals specially designated to guide

you when you need assistance, which is why investing with us is bound to be a hassle-

free experience for you!

REASON WHY YOU SHOULD CHOOSE SHARE KHAN

1. EXPERIENCE

SSKI has more than eight decades of trust and credibility in the Indian stock market.

In the Asia Money Broker’s poll held recently, SSKI won the ‘India’s best broking

division in February 2000, it has been providing institutional-level research and

broking services to individual investors.

2. TECHNOLOGY

39
With our online trading account you can buy and sell shares in an instant from any PC

with an Internet connection. You will get access to our powerful inline trading tools

that will help you take complete control over your investment in shares.

3. ACCESSIBILITY

In addition to our online and phone trading services, we also have a ground network of

240 share shops across 111 cities in India where you can get personalized services.

4. KNOWLEDGE

In a business where the right information at the right time can translate into direct

profit, you get access to wide range of information on our content- rich portal,

Sharekhan.com. You will also get a useful set of knowledge-based tools that will

empower you to take informed decisions.

5. CONVENIENCE

You can all our Dial-n-Trade number to get investment and execute your transaction.

We have a dedicated call-center to provide this service via a toll-free number from

anywhere in India.

6. CUSTOMER SERVICE

Our customer service team will assist you for any help that you need relating to

transactions, billing, demat and other queries, our customer service can be contacted

via a toll-free number, email or live chat on sharekhan.com

7. INVESTMENT ADVICE

40
Sharekhan has dedicated research teams for fundamental and technical research. Our

analysts constantly track the pulse of the market and provide timely investment advice

to you in the form of daily research emails, online chat, printed reports on SMS on

your phone. Customers of Share Khan Experience language, presentation style,

content or for that matter the online trading facility find a common thread; one that

helps the customers make informed decisions and simplifies investing in stocks. The

common thread of empowerment is what Sharekhan’s all about! Sharekhan is also

about focus. Share khan does not claim expertise in too many things. Sharekhan’s

expertise lies in stocks and that’s what he talks about with authority. So when he says

that investing in stocks should not be confused with trading in stocks or a portfolio-

based strategy is better than betting on a single horse, it is something that is spoken

with years of focused learning and experience in the stock markets. And these beliefs

are reflected in everything Sharekhan does for customers.

To sum up, Sharekhan brings to customers a user-friendly online trading facility,

coupled with a wealth of content that will help customers stalk the right shares.

Those of customers who feel comfortable dealing with a human being and would

rather visit a brick-and-mortar outlet than talk to a PC; Sharekhan offers customers the

facility to visit (or talk to) any of sharekhan’s share shops across the country. In fact

Sharekhan runs India’s largest chain of share shops with over hundred outlets in 80

cities!

SHAREKHAN SERVICES

Sharekhan, one of India’s leading brokerage houses, is the retail arm of SSKI. With

over 511 share shops in 170 cities, and India’s premier online trading portal

41
www.sharekhan.com, sharekhan’s customers enjoy multi-channel access to the stock

markets.

ONLINE SERVICES TO SUIT CUSTOMERS NEEDS

With a Sharekhan online trading account, customers can buy and sell shares in an

instant! Anytime customers like trading account that suits customer’s trading habits

and preferences – the Classic Account for most investors and Speed trade for active

day traders. Customer’s Classic Account also comes with Dial-n-Trade completely

free, which is an exclusive service for trading shares by using customer’s telephone.

When beginning customer’s foray in investing in shares, customers need a lot of things

– from the right information at customer’s disposal, to assistance when customers need

it and advice on investing. Sharekhan have been in this business for over 80 years

now, and with sharekhan customers get a host of services and tools that are difficult to

fing in one place anywhere else. The Sharekhan First Step program, built specifically

for new investors. All customers have to do is walk into any of sharekhan’s 511 share

shops across 170 cities in India to get a host of trading related services – sharekhan’s

friendly customer service staff will also help customers with any accounts related

queries customers may have.

A SHAREKHAN OUTLET OFFERS THE FOLLOWING

SERVICES:

 Online BSE and NSE execution (through BOLT & NEAT terminals)Free

access to investment advice from Sharekhan value line (a monthly publication with

reviews of recommendations, stocks to watch out for etc)

 Daily research reports and market review (High Noon & Eagle Eye)

 Pre-market Report (Morning Cuppa)

42
 Daily trading calls based on Technical Analysis

 Cool trading products (Darling Derivatives and Market Strategy)

 Personalized Advice

 Live Market Information

 Depository Services: Demat & Remat Transactions

 Derivatives Trading (Futures and Option)

CHAPTER-IV
DATA ANALYSIS

AND

INTERPRETATION

43
 4 DATA ANALYSIS & INTERPRETATION

4.1 COMPARISON OF MARKET PRICES BETWEEN

DIFFERENT COMPANIES - BHARAT PETROLEUM

CORPORATION LTD

BHARAT PETROLEUM CORPORATION

Last Trade: 375.00 Day's 330.55 - 392.55

Range:
Trade Time: Mar 12 52wk N/A
Range:
Change: ↓29.40(-7.27%) Volume: 17,596,008
Prev Close: 404.40 Avg Vol N/A
(3m):
Open: 391.30 Avg Vol N/A
(3m):
Bid: 330.55 P/E (ttm): N/A
Ask: 392.55 EPS (ttm): N/A
1y Target N/A Div & N/A
Est: Yield:

44
INTERPRETATION

The graph represents price percentage on Y-axis and time on X- axis. The trading

started at negative value and as the day passed on, it reached +3% after 10.20

am .from there fluctuations took place and finally it got down and closed at

+0.85%.Bharat Petroleum’s previous day share price was closed at 465.00 and last

trade closed at 468.95. The difference between the two share prices is 3.95 Rs

approximately 0.85 % increase.

HINDUSTAN PETROLEUM CORPORATION

Last Trade: 309.55 Day's Range: 290.20 - 319.70

Trade Time: Feb 15 52wk Range: 205.00 - 404.80
Change: 11.15 (3.74%) Volume: 3,115,436
Prev Close: 298.40 Avg Vol 1,872,510
(3m):
Open: 301.00 Market Cap: N/A
Bid: 309.55 P/E (ttm): N/A
Ask: 305.90 EPS (ttm): N/A
1y Target Est: N/A Div & Yield: N/A

45
INTERPETATION

The graph represents price percentage on Y-axis and time on X- axis. The trading

started at positive value i.e 298.40 and as the day passed on, it reached nearly 320

points after 12. 00pm from there fluctuations took place and finally it got down and

closed at 309.55.On Feb 14 the share price of Hindustan Petroleum was closed at

298.40 and last trade share price on Feb. 15 was 309.55. The difference between the

share price of previous and last days trade is 11.15 Rs increase i.e. 3.74% greater

than the previous days share price.

HINDUSTAN PETROLEUM CORPORATION VS BHARAT

PETROLEUM LIMITED

46
INTERPRETATION

On Feb 14 the share price of Hindustan Petroleum was closed at 298.40 and last trade

share price on Feb. 15 was 309.55. The difference between the share price of previous

and last days trade is 11.15 Rs increase i.e. 3.74% greater than the previous days share

price. While that of Bharat Petroleum’s previous day share price was closed at 465.00

and last trade closed at 468.95. The difference between the two share prices is 3.95 Rs

approximately 0.85 % increase.

The increase in the percentage i.e. 3.74% of Hindustan petroleum and 0.85 % of

Bharat Petroleum is due to increase in the volumes of both petroleum companies.

JK CEMENT LIMITED

Last Trade: 168.30 Day's Range: 162.10 -

170.00
Trade Time: Feb 15 52wk Range: 125.05 -
252.90
Change: 5.30 Volume: 19,004
(3.25%)
Prev Close: 163.00 Avg Vol 150,220
(3m):
Open: 165.90 Market Cap: N/A

47
 Bid: 167.05 P/E (ttm): N/A
Ask: 168.30 EPS (ttm) N/A
1y Target Est: N/A Div & Yield: N/A

INTERPRETATION

The graph represents price percentage on Y-axis and time on X- axis. The trading

started at 163.00 as the day passed on, it increased 5.30 points and finally it reached

and closed at 168.30.JK Cements Ltd previous day share price was closed at 163.00

and last trade closed at 168.30. The difference between the two share prices is 5.30 Rs

approximately 3.25 % increase.

ULTRATECH CEMENT LTD

Last Trade: 901.65 Day's Range: 850.00 -

920.00
Trade Feb 15 52wk Range: 662.00 -
Time: 1,165.00
Change: 35.05 Volume: 31,971
(4.04%)
Prev Close: 866.60 Avg Vol 90,390.2
(3m):
Open: 865.00 Market Cap: N/A
Bid: 901.65 P/E (ttm): N/A
Ask: 904.95 EPS (ttm): N/A

48
 1y Target N/A Div & Yield: N/A
Est:

INTERPRETATION

The graph represents price percentage on Y-axis and time on X- axis. The trading

started at 866.60 as the day passed on, it increased 35.05 points and finally it reached

and closed at 901.65.Ultratech Cement Ltd previous day share price was closed at

866.60 and last trade closed at 901.65. The difference between the two share prices is

35.05 Rs approximately 4.04 % increase

JK CEMENT LIMITED VS ULTRATECH CEMENT LTD

ULTRATE ULTRATE
JK CH CH
CEMENT CEMENT JK CEMENT CEMENT
Last 168.30 901.65 Day's Range: 162.10 - 850.00 -
Trade: 170.00 920.00
Trade Feb 15 Feb 15 52wk Range: 125.05 - 662.00 -
Time: 252.90 1,165.00
Change 5.30 35.05(4.04 Volume: 19,004 31,971
: (3.25%) %)
Prev 163.00 866.60 Avg Vol 150,220 90,390.2
Close: (3m):
Open: 165.90 865.00 Market Cap: N/A N/A
Bid: 167.05 901.65 P/E (ttm): N/A N/A

49
 Ask: 168.30 904.95 EPS (ttm): N/A N/A
1y N/A N/A Div & Yield: N/A N/A
Target
Est:

INTERPRETATION

This graph represents the comparison of JK Cements and Ultratech Cements. In which

JK Cements is represented by blue colour while Ultratech Cements indicated by Red

colour.

JK Cements Ltd previous day share price was closed at 163.00 and last trade closed at

168.30. The difference between the two share prices is 5.30 Rs approximately 3.25 %

increase.

Ultratech Cement Ltd previous day share price was closed at 866.60 and last trade

closed at 901.65. The difference between the two share prices is 35.05 Rs

approximately 4.04 % increase

50
RELIANCE POWER LIMITED

Last Trade: 384.50 Day's Range: 356.00 -

388.95

Trade Time: Feb 15 52wk Range: 355.30 -

530.00

Change: 14.55 (3.93%) Volume: 17,584,303

Prev Close: 369.95 Avg Vol (3m): 75,988,400

Open: 359.10 Market Cap: N/A

Bid: 384.50 P/E (ttm): N/A
Ask: 384.50 EPS (ttm): N/A
1y Target N/A Div & Yield N/A
Est:

INTERPRETATION

The graph represents price percentage on Y-axis and time on X- axis. The trading

started at 369.95 as the day passed on, it increased 14.55 points and finally it reached

51
and closed at 384.50.Reliance Power Ltd previous day share price was closed at

369.95 and last trade closed at 384.50. The difference between the two share prices is

14.55 Rs approximately 3.93 % increase.

POWER

TATA POWER (Bombay)

Last Trade: 1,294.65 Day's Range: 1221.10 -

1335.00
Trade Time: Feb 15 52wk Range: N/A
Change: 18.85 (1.48%) Volume: 81,066
Prev Close: 1,275.80 Avg Vol (3m): N/A
Open: 1,270.00 Market Cap: N/A
Bid: 1290.00 P/E (ttm): N/A
Ask: 1294.65 EPS (ttm) N/A
1y Target Est: N/A Div & Yield: N/A

INTERPRETATION

The graph represents price percentage on Y-axis and time on X- axis. The trading

started at 1,275.80 as the day passed on, it increased 18.85 points and finally it reached

and closed at 1,294.65.Tata Power previous day share price was closed at 1,275.80 and

52
last trade closed at 1,294.65. The difference between the two share prices is 18.85 Rs

approximately 1.48 % increase.

RELIANCE POWER VS TATA POWER

RELIANCE TATA RELIANCE TATA

POWER POWER POWER POWER
Last 384.50 1,294.65 Day's 356.00 - 1221.10 -
Trade: Range: 388.95 1335.00
Trade Feb 15 Feb 15 52wk 355.30 - N/A
Time: Range: 530.00
Change: 14.55 18.85 Volume: 17,584,303 81,066
(3.93%) (1.48%)
Prev 369.95 1,275.80 Avg Vol 75,988,400 N/A
Close: (3m):
Open: 359.10 1,270.00 Market N/A N/A
Cap:
Bid: 384.50 1290.00 P/E (ttm): N/A N/A
Ask: 384.50 1294.65 EPS (ttm): N/A N/A
1y N/A N/A Div & N/A N/A
Target Yield:
Est:

53
INTERPRETATION

This graph represents the comparison of Reliance Power and Tata Power. In which

Reliance Power is represented by blue colour while Tata Power indicated by Red

colour.Reliance Power Ltd previous day share price was closed at 369.95 and last

trade closed at 384.50. The difference between the two share prices is 14.55 Rs

approximately 3.93 % increase.

Tata Power previous day share price was closed at 1,275.80 and last trade closed at

1,294.65. The difference between the two share prices is 18.85 Rs approximately 1.48

% increase

54
CHAPTER – V

FINDINGS

SUGGESTIONS

CONCLUSION

BIBLIOGRAPHY

5.1 FINDINGS

55
The trading started at negative value and as the day passed on, it reached +3% after

10.20 am .from there fluctuations took place and finally it got down and closed at

+0.85%.Bharat Petroleum’s previous day share price was closed at 465.00 and last

trade closed at 468.95. The difference between the two share prices is 3.95 Rs

approximately 0.85 % increase.

The trading started at positive value i.e 298.40 and as the day passed on, it reached

nearly 320 points after 12. 00pm from there fluctuations took place and finally it got

down and closed at 309.55.On Feb 14 the share price of Hindustan Petroleum was

closed at 298.40 and last trade share price on Feb. 15 was 309.55. The difference

between the share price of previous and last days trade is 11.15 Rs increase i.e. 3.74%

greater than the previous days share price.

On Feb 14 the share price of Hindustan Petroleum was closed at 298.40 and last trade

share price on Feb. 15 was 309.55. The difference between the share price of previous

and last days trade is 11.15 Rs increase i.e. 3.74% greater than the previous days share

price. While that of Bharat Petroleum’s previous day share price was closed at 465.00

and last trade closed at 468.95. The difference between the two share prices is 3.95 Rs

approximately 0.85 % increase

The trading started at 163.00 as the day passed on, it increased 5.30 points and finally

it reached and closed at 168.30.JK Cements Ltd previous day share price was closed at

163.00 and last trade closed at 168.30. The difference between the two share prices is

5.30 Rs approximately 3.25 % increase.

The trading started at 866.60 as the day passed on, it increased 35.05 points and finally

it reached and closed at 901.65.Ultratech Cement Ltd previous day share price was

56
closed at 866.60 and last trade closed at 901.65. The difference between the two share

prices is 35.05 Rs approximately 4.04 % increase.

JK Cements Ltd previous day share price was closed at 163.00 and last trade closed at

168.30. The difference between the two share prices is 5.30 Rs approximately 3.25 %

increase Ultratech Cement Ltd previous day share price was closed at 866.60 and last

trade closed at 901.65. The difference between the two share prices is 35.05 Rs

approximately 4.04 % increase

The trading started at 369.95 as the day passed on, it increased 14.55 points and finally

it reached and closed at 384.50.Reliance Power Ltd previous day share price was

closed at 369.95 and last trade closed at 384.50. The difference between the two share

prices is 14.55 Rs approximately 3.93 % increase.

The trading started at 1,275.80 as the day passed on, it increased 18.85 points and

finally it reached and closed at 1,294.65.Tata Power previous day share price was

closed at 1,275.80 and last trade closed at 1,294.65. The difference between the two

share prices is 18.85 Rs approximately 1.48 % increase.

Tata Power previous day share price was closed at 1,275.80 and last trade closed at

1,294.65. The difference between the two share prices is 18.85 Rs approximately 1.48

% increase

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 5.2 SUGGESTIONS

Of course, a price movement in online trading has many pros. There are several

wonderful reasons to invest online and consider online trading.

 Money saving opportunities depends primarily on the online brokerage

firm that you choose. No two firms are the same. There may be different regulations,

similar to bank regulations. There are minimum deposits required that must be

maintained. As mentioned above, this will depend on the online brokerage firm.

 Instant online access we can gain instant access to our account, the value of

our portfolio updates immediately before our eyes.

 Online traders can enter online trading at anytime and from anywhere. This

is very convenient if you live in a different time zone than the country you are trading

in. Not to mention, it is especially fit for investors with busy schedules.

 With online trading traders can control of there investments. No sales

pitches and no hassles can occurred.

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 5.3 CONCLUSION

SEBI must make a policy to give guidelines to companies that certain portion of their

capital must be from house hold sector/small investors. This will give perfection to

small investor because companies are issuing shares to private operators. For this

SEBI can defined small investors investment quantum as ≤ Rs 10000 for e.g., reserve

says 50% of the issue amount to small investors to attract funds from this sector. This

is good for the companies also, because small investors do not expect abnormal

returns.

 Guidelines should also be issued to advertise such a way that the issue details

reach general public.

 Companies are getting the public issue and under written by banks and financial

institutions. So, companies are not keen to reach general public hence norms must be

fixed for under writing only a limited portion [50%] of the issue and balance 50%

from the public.

 Public also invests in government securities and funds floated by government.

Companies are getting loan return market. How every private company is operating in

high risk and return markets because they can predict risk well. Hence government

companies must change over current out look of safe investments and operating high

risk and high return markets. So, they can give high returns to small investors.

 SEBI must prepare norms and make it compulsory for companies to refund with

in a few days {say 25 days}. The applicable money and pass certificate.

 Investor must choose blue chip shares for investment.

 Mutual fund is the best option for a rural investor.

A single window for grievances redressal system

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 BIBLIOGRAPHY

TEXT BOOKS

 Security Analysis and portfolio management By Donald .Fisher, Ronald J. Jordan.

 Essentials of Financial Management by I M Pandey.

 Venture Capital and the Indian Financial sector by Ramesh, S and A Gupta.

JOURNALS

 Indian management journal.

 International journal of management and business science.

 The journal of Finance.

NEWSPAPER

 Indian Express

 Business line

 Financial express

WEBSITES

1. www.nseindia.com

2. www.capitalmarket.com

3. www.sharekhan.com

4. www.bseindia.com

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