A TRAINING REPORT ON

“TECHNICAL ANALYSIS ON HINDUSTAN AERONAUTICS

LIMITED”
Submitted To:
Satyug Darshan Institute of Engineering and Technology Bhupani
Lalpur Road, Village Bhupani Faridabad-121002, NCR, Haryana,
India
Submitted by: BASUDEV KUMAR
Roll No - 21020304019
Batch 2021-2024
In Partial Fulfillment of
Bachelor of Business Administration Industry Integrated (IIFSB)
HARYANA
(November, 2022)

Satyug Darshan Institute of Engineering and Technology

Bhupani Lalpur Road, Village Bhupani Faridabad-121002, NCR,
Haryana, India affiliated to:
JC BOSE UNIVERSITY OF SCIENCE & TECHNOLOGY
YMCA
 DECLARATION:

I BASUDEV KUMAR hereby declare that this training report titled “TECHNICAL ANALYSIS
ON HINDFUSTAN AERONAUTICAL LIMITED” is the record of authentic work carried out
by me during the period from 26 th September 2022 to13th December 2022 and has not been
submitted to any other university or institute for the award of any degree/diploma etc.

(Signature)
BASUDEV KUMAR
Date:
 BONAFIDE CERTIFICATE

This is to certify that BASUDEV KUMAR of Satyug Darshan Institute of Engineering and
Technology has successfully completed the Report work titled (TECHNICAL ANALYSIS OF
HINDUSTAN AERONAUTICAL LIMITED) in partial fulfillment of requirement for the
completion of Bachelors of Business Administration (BBA-IIFSB) course as prescribed by the
JC BOSE UNIVERSITY OF SCIENCE AND TECHNOLOGY, YMCA, FARIDABAD.

This project report is the record of authentic work carried out by him during the period from
23.09.22 to 13.12.22he has worked under my guidance.

(Signature)

Dr. Munish
Associate Professor, Management studies
PROJECT GUIDE

DATE:
 ACKNOWLEDGEMENT

I would like to express my gratitude and appreciation to all those who gave me the possibility to
complete this report. It gives me immense pleasure in presenting the Report work.
On “TECHNICAL ANALYSIS ON HINDUSTAN AERONAUTICAL LIMITED” The success
of this project is a result of sheer hard work and determination put in by me with the help of my
project guide. A special thanks to, Mr. JAYANT KWATRA, who help stimulating, suggestions
and encouragement, helped me to coordinate my project especially in writing this report.
I would also like to acknowledgement with much appreciation the crucial role of the Professor of
SATYUG DARSHAN INSTITUTE OF ENGINEERING AND TECHNOLOGY who helped me
in collecting all required information to complete the project report.
 PREFACE

Many students may have work on this project in different way. I have also tried to work on this
project in a different way. It was for the first time I got the opportunity to work in such a
prestigious and well known organization and things which I have experienced in my training
time are going to help throughout my life time. I have worked on this project with great
enthusiasm and zeal.

BASUDEV KUMAR

DATE:
 INDEX

S.NO PARTICULARS PAGE NO.

CHAPTER 1 Introduction to study and 7 to 24

company
Profile

CHAPTER 2 Research Methodology 25 to 27

Research design

CHAPTER 3 Data analysis and interpretation 28 to 33

CHAPTER 4 Finding 34

Conclusion 35

Bibliography 36
 CHAPTER – 1

INTRODUCTION TO THE STUDY

Technical analysis is a means of examining and predicting price movements in the financial
markets, by using historical price charts and market statistics. It is based on the idea that if a
trader can identify previous market patterns, they can form a fairly accurate prediction of future
price trajectories.
It is one of the two major schools of market analysis, the other being fundamental analysis.
Whereas fundamental analysis focuses on an asset’s ‘true value’, with the meaning of external
factors and intrinsic value both considered, technical analysis is based purely on the price charts
of an asset. It is solely the identification of patterns on a chart that is used to predict future
movements.

RULES FOR TECHNICAL ANALYSIS

 WHAT is more important than WHY

 History tends to repeat itself
 No one knows at which price stock market close
 Trend is my friend, till end it went

TERMINOLOGY

1. Open: - This is the price of the first trade for the period (e.g., the first trade of the day).
When analyzing daily data, the open is especially important as it is the consensus price
after all interested parties were able to “Sleep on it”
2. High: - this is the highest price that Security traded during the period. It is the point at
which there are more sellers than buyers (i.e., there are always sellers willing to sell at
higher prices, but the High represents the highest price buyers were willing to pay).
3. Low: -This is the lowest price that the security traded during the period. It is the point at
which there are more buyers than sellers (i.e., there are always buyers willing to buy at
lower prices, but the Low represents the lowest price buyers were willing to accept).
4. Close: - This is the last price that the security traded during the period. Due to its
availability, the close is the most often used price for the analysis. The relationship
between the open (the first price) and the close (the last price) are considered significant
by most technicians. This relationship is emphasised in candlestick charts.
5. Volume: - This is the number of shares (or contracts) that were traded during the period.
The relationship between price and volume (e.g., increasing price accomplished by
increasing volume) is important. The higher the volume, more active the security.
 6. Stop Loss: - Stop-loss is a method that is used by traders to limit their losses. Figuring
out where to place stop loss mainly depends on your risk appetite—the price
should limit your loss. The percentage method is used to limit the stop-loss at a specific
percentage. If used correctly, they help to limit the losses on individual trades.
7. Short Sell: - A short sale is the sale of an asset or stock the seller does not own. It is
generally a transaction in which an investor sells borrowed securities in anticipation of a
price decline; the seller is then required to return an equal number of shares at some point
in the future.
8. Intraday; - As the name implies, intraday means shares are traded on the same day on
which they have been buyed.

Types Of Trade

Trading Style Time Frame Time Period of Trade

1 day max – do not hold positions

Day trade Short term
overnight

Swing Trade Short / Medium term Several days, sometimes weeks

Position Trade Long term Weeks, Months, Years

Stock Market
 What is stock market?

 Place where shares of pubic listed companies are traded. The primary market is where
companies float shares to the general public in an initial public offering (IPO) to raise
capital.
 It is a platform where buyers and sellers come together to trade on publicly listed shares
during specific hours of the day. People often use the terms 'share market' and 'stock
market' interchangeably.
 For example, you bought 100 shares of Rs. 2000 each of XYZ company, then you
become a shareholder of XYZ.

Stock market and Stock exchange are similar?

Stock Market Stock Exchange

Definition

A stock market is a collection of stock A stock exchange is a place where stockbrokers and
exchanges where the transactions for issuing, traders come together to buy and sell securities.
purchasing and selling of securities take place.

Scope

The stock market has a wider scope since it The stock exchange has a narrower scope since it is a part
consists of multiple stock exchanges of the stock market.

Trade Volume

The volume of trade is generally larger for a The volume of trade is generally smaller for a stock
stock market when compared to stock exchange when compared to the overall stock market.
exchanges.

Clearing House

The stock market does not work as a The stock exchange works as a clearinghouse.
clearinghouse.
 Motive

The main purpose of a stock market is to act The stock exchanges operate under the motive of earning
as a meeting place for various stock traders to a profit from the trading activities of investors.
conduct trading activities.

Example

Some of the examples of stock markets are the Some of the examples of stock exchanges are National
India Stock Market, European Stock Market, Stock Exchange, New York Stock Exchange, Shanghai
American Stock Market, Japanese Stock Stock Exchange, Bombay Stock Exchange, etc.
Market, etc.

MAINLY TWO SHARE MARKET

NSE- National Stock Exchange BSE- Bombay Stock Exchange

FACTS ABOUT STOCK MARKET

 The Stock Market Is More Than 400 Years Old

 There Are More Than 60 Stock Exchanges in the World
 Annually, The Stock Market Is Likely to Increase by 70%
 October Is the Most Volatile Month.
 The most expensive share in the world is Berkshire Hathaway. It has a current valuation
of about £214 billion, making it over three times as big as Pepsi or Coca-Cola.
 The Earliest Investing Book Dates from 1688.
  Microsoft Breached the £1 Trillion Threshold.
 Top 100 Companies Distributed £704 Billion to Shareholders.

“IF YOU THINK IT IS A GAMBLE

IT WILL PAY LIKE YOU A GAMBLE
IF YOU THINK IT IS A BUSINESS
IT WILL PAY YOU LIKE A BUSINESS.”

TYPES OF CHARTS

 Line Charts
This form represents price in a line format. The closing price points are considered to draw a line
chart which together form something akin to ECG pattern, and the information revealed is very
concrete. As the closing price is considered as the strongest move of the price, the direction of
the line (upside or downside) assists in identifying the underneath strength.

 Candlestick Charts

This chart represents price in the structure of High, Low, Open, and Close price. All the four
information is charted in the form of a candle. The area from the open price to high is called
as 'upper shadow', the level from close to low is named as 'lower shadow' and the region
between open and close is the 'body'.
  Point and Figure charts
This chart format represents price in 'X' and 'O' columns. The 'X' indicates a rise in price and 'O'
represents a fall in price. The idea is to filter out the noise and lag that is formed during heavy
swings in the market. Each column shows a value that the price should reach to form the next 'X'
or 'O' symbol. Here, time and volume has no relevance. It's the price strength that determines the
value of a trend. The formation of 'X' or 'O' may remain stagnant till a major move is
ascertained. This also assists in identifying support and resistance areas
TYPES OF CANDLES
There are 3 types of candles
1. Bullish: - Bullish Market shows three clear-cut peaks, each peak is higher than the
previous peak, the bottom are always higher than the previous bottoms. When the close is
higher than the open (usually green or white)
2. Bearish: - Bearish market exhibits trend. The peaks are lower than the previous peak, the
bottom are also lower than the previous bottom. When the close is lower than the open
(usually red or black)
3 Doji: - When a candlestick for a security has an open and close that are virtually equal. Doji
candle looks like a plus sign.

CANDLESTICK PATTERNS
There are three types of candlesticks
1) Single candle:- Trade on single candle (65% accuracy)
2) Double candle:- Trade on double candle (85% accuracy)
3) Triple candle:- Trade on triple candle (95% accuracy)

SINGLE CANDLE
 (i) Hammer: -
Key Takeaways
 Prior trend may be falling or downward
 Lower shadow must be 2X of the body
 Volume must be high than the average of preceding candle
 Profit booking at 2%
 Loss booking at 1%

(ii) Shooting star: -

Key takeaways

 Prior trend should be bullish

 Shadow must be 2X of body
 Low=close
 Volume must be high
 Make profit by SHORT SELL (Sell first, buy later)

DOUBLE CANDLE
(i) Bullish engulfing: -
Key Takeaways
 Market Should be into a downtrend.
 Green candle shall cover full body of red candle
 Volume must be high
 Profit = 3 %
  Loss = low price

(ii) Bearish engulfing: -

Key Takeaways
 Market Should be in bullish
 Red candle shall cover full body of green candle
 Volume must be high
 Profit = 2 %
 Loss = high of the red candle

TRIPLE CANDLE

(i) Morning star: -

The Morning Star Pattern is a bullish reversal pattern, usually occurring at the
bottom of a downtrend
Key Takeaways
 Market should be in downtrend
 Body of one candle shall not overlap each other
 Volume of candle III should be high
 Target Price- 5%
 Stop loss is the low price of candle II.
 (ii) Evening Star: -
The Evening Star Pattern is a bearish reversal pattern, usually occurring at the top
of an uptrend.
Key Takeaways
 Market should be into bullish trend
 Body of candle I shallnot overlap the body of candle II and same for II
& III.
 Volume must be rising
 Target price is 5%
 Stop loss is high price of candle II.

USA CLASSICAL PATTERNS:

1) Symmetrical Triangle
A symmetrical triangle is formed of higher lows and lower highs which usually signals
that the market is balanced and ready to move either way. As the triangle is being formed,
 the volume shrinks, and the breakout would be accompanied with great volume which
leads the market to the next move

2) Head and Shoulder Pattern: -

Head and Shoulders patterns consist of three peaks with the middle peak being the
highest, the left and right peaks holding similar or close price levels. The volume will be
the largest in the first shoulder and starts to decrease until we break out from this
formation.

3) Reverse Head and Shoulder

4) Bullish Flag
A bullish flag is a type of rectangle or channel. With a bull flag, we often see it move in
one of two ways: horizontally or in a downward channel. The most common is a
downward channel.
 CHAPTER 2

COMPANY’S PROFILE

 HAL was established as Hindustan Aircraft Limited in Bangalore on 23 December 1940

by Walchand Hirachand in association with the then Kingdom of Mysore. Walchand
Hirachand became chairman of the company. The company's office was opened at a
bungalow called "Eventide" on Domlur Road.
 The organisation and equipment for the factory at Bangalore was set up by William D.
Pawley of the Intercontinental Aircraft Corporation of New York. Pawley obtained a
large number of machine-tools and equipment from the United States.

 Company had built aircraft and engines of foreign design under licence, such as Prentice,
Vampire & Gnat. It also undertook the design and development of aircraft indigenously.

 In August 1951, the HT-2 Trainer aircraft, designed and produced by the company under
the able leadership of Dr. V.M.Ghatge flew for the first time. Over 150 Trainers were
manufactured and supplied to the Indian Air Force and other customers.

 With the gradual building up of its design capability, the company successfully designed
and developed four other aircraft i.e. two seater 'Pushpak' suitable for flying clubs,
'Krishak' for Air Observatory Post (AOP) role, HF-24 Jet Fighter '(Marut)' and the HJT-
16 Basic Jet Trainer '(Kiran)'.
 BOARD OF DIRECTORS

S.NO Name of director Designation

1 Shri C.B. Director (Finance) & CFO with Addl.

Ananthakrishnan Charge of Chairman and Managing
Director

2 Shri Jayadeva E. P
Director (Operations) with Addl Charge of
Director(HR

Our Vision
To be a global leader in the Aerospace & Defense Industry.
Our Mission
We are committed to deliver superior technology solutions to the customers by leveraging our
infrastructure and Design, Manufacture & Service skills, for achieving business excellence.
Our Values
Customer satisfaction
We are dedicated to building a relationship with our customers where we become partners in
fulfilling their mission. We strive to understand our customers' needs and to deliver products and
services that fulfill and exceed all their requirements.

Commitment to total quality

We are committed to continuous improvement of all our activities. We will supply products and
services that conform to highest standards of design, manufacture, reliability, maintainability and
fitness for use as desired by our customers.

Cost and time consciousness

We believe that our success depends on our ability to continually reduce the cost and shorten the
delivery period of our products and services. We will achieve this by eliminating waste in all
activities and continuously improving all processes in every area of our work.

Innovation and creativity

We believe in striving for improvement in every activity involved in our business by pursuing
and encouraging risk-taking, experimentation and learning at all levels within the company with
a view to achieving excellence and competitiveness.

SUSTAINABILITY
HAL, as a responsible PSU, strives to accomplish the vision of becoming a significant global
player in the Aerospace Industry and at the same time is focused on environment protection,
conservation of natural resources, welfare of employees and the society at large. HAL has been
demonstrating its sense of responsibility towards both the community and the environment
through various initiatives over the years, proactively nurturing community growth and
development. Several initiatives and measures have been undertaken over the past few years to
reduce the impact of HAL’s operations on environment.

Water

1. The Company has installed Rain Water Harvesting (RWH) systems at all its locations.
Suitable buildings are identified and RWH systems are put in place to collect and store the rain
water. The stored rain water is used for gardening and other non-potable uses.

2. The Company actively promotes water conservation by taking effective measures like
arresting of leakages, spreading awareness, etc.

3. The Company ensures that its operations do not pollute the environment. Sewage and
Effluent Treatment Plants are installed and the treated water is used for gardening and other non-
potable uses. All the operations of the Company are in full compliance with the local Pollution
Control Board norms.

4. Plantation of tree saplings is a continuous activity. Many Divisions of the Company located
in cities such as Bangalore, Lucknow, Hyderabad provide green lung space in an otherwise
concrete jungle.

Energy

1. Energy Conservation is an ongoing effort in HAL’s operations. HAL has implemented

several energy conservation measures down the years which has resulted in lowering the energy
intensity of the operations. Few examples are listed below:

a. Refurbishing of furnace insulations

b. Replacement of Reciprocating Compressors with Screw Compressors.
c. Replacement of old Air Conditioners with star rated Air Conditioners.

Management Discussion Analysis

• Strength
 o Low salary
o Good ROI
o Good Training and Development Programs for its Employees

• Weakness
o High Attrition Rate
o Depending on Foreign Markets
o Emerging markets

 Opportunities

o Acquisition of New Startups

o Digital Transformation
o Concentrate on emerging markets

• Threats
o Concentrate on emerging markets
o Liability Laws

FINANCIAL STATEMENT OF COMPANY

Balance Sheet (All Figures are in Crores.)
PARTICULARS MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022

Equity and Liabilities

Share Capital 334.39 334.39 334.39 334.39 334.39

Total Reserves 9,151.26 11,740.54 12,865.19 15,033.79 18,929.61

Borrowings 100 100 0 0 0

Other N/C liabilities 11,977.14 10,059.64 8,411.45 10,855.03 13,471.57

Current liabilities 26,097.94 28,193.22 31,128.53 25,414.19 25,019.85

Total Liabilities 47,660.73 50,427.79 52,739.56 51,637.40 57,755.42

Assets
PARTICULARS MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022

Net Block 7,566.03 7,454.26 7,351.45 7,157.92 6,758.11

Capital WIP 616.92 699.15 857.42 662.15 948.01

Intangible WIP 840.90 799.86 1,182.69 1,286.27 1,523.84

Investments 989.41 901.83 940.18 1,054.98 1,294.17

Loans & Advances 277.96 580.03 676.95 752.21 1,860.21

Other N/C Assets 358 348.43 338.54 338.03 363.96

Current Assets 37,011.51 39,644.23 41,392.33 40,385.84 45,007.12

Total Assets 47,660.73 50,427.79 52,739.56 51,637.40 57,755.42

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022

Net Sales 18,519.25 20,008.47 21,445.37 22,882.36 24,620.21

Total
15,059.02 15,439.68 16,565.22 17,540.98 19,200.39
Expenditure

Operating
3,460.23 4,568.79 4,880.15 5,341.38 5,419.82
Profit

Other Income 761.21 375.51 295.99 357.89 986.34

Interest 34.62 177.49 359.43 266.72 65.14

Depreciation 946.97 1,024.47 997.63 1,157.19 1,109.87

Exceptional
0 0 118.92 2.02 0
Items

Profit Before
3,239.85 3,742.34 3,938 4,277.38 5,231.15
Tax

Tax 1,252.43 1,396.28 1,095.99 1,037.93 144.65

Net Profit 1,987.42 2,346.06 2,842.01 3,239.45 5,086.50

PARTICULARS MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022

Adjusted EPS
59.43 70.16 84.99 96.88 152.11
(Rs.)

Cash Flows (All Figures are in Crores.)

PARTICULARS MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022

Profit from operations 3,239.85 3,742.34 3,938 4,277.38 5,231.15

Adjustment 2,100.50 2,480.94 2,600.40 2,477.04 4,603.17

Changes in Assets &

-4,564.10 -12,824.67 -3,181.85 9,244.99 1,258.94
Liabilities

Tax Paid -1,509.92 -1,092.22 -1,819.90 -875.47 -1,053.18

Operating Cash Flow -733.67 -7,693.61 1,536.65 15,123.94 10,040.08

Investing Cash Flow 594.14 5,292.29 -1,334.09 -1,190.11 -12,763.37

Financing Cash Flow -2,540.35 2,321.16 63.94 -7,070.18 -1,349.05

Net Cash Flow -2,679.88 -80.16 266.50 6,863.65 -4,072.34

“DUMP IT WHEN IT DUMPS YOU”

 CHAPTER – 2

RESEARCH METHODOLOGY

Research
Research is "creative and systematic work undertaken to increase the stock of knowledge". It
involves the collection, organization, and analysis of information to increase understanding of a
topic or issue. A research project may be an expansion on past work in the field.

Research methodology
The process used to collect information and data for the purpose of making business decision.
The methodology may include publication, research, interviews, surveys and other research
techniques and present historical information. My research is based on the “HINDFUSTAN
AERONAUTICAL LIMITED”.
Research Design
This research is a technical study of stock price movements of the HAL stock in the last 2 years,
wherein some charts / patterns / indicators have been identified, studied and analysed.

The closing prices of share prices were taken and the future price movement was analyzed using
various tools.

Data has been collected from trading of equity market in NSE, various books, journals,
magazines and websites. The research is based on tools of technical analysis and involves the
calculation of MA, Charts & RSI.

In this project simple moving average has been calculated by taking the difference of long-term
moving average and short-term moving average i.e. short-moving average is average of 3
weeks and long-term moving average is the average of 7 weeks, RSI has been calculated by
taking 6 weeks and weekly ROC has been calculated.

Statement of the Problem

Investment is a common term which means money commitment or present sacrifice to get a
future return. The return on investment largely depends on investment strategy. The success of
investment largely depends on timing of investment.

Timing here means “When to enter?” and “when to Exit?”

For this, technical analysis will help the investor to make buy signal or sell signal.
Although, both fundamental and technical analysis will lead wise investment decision wherein
fundamental analysis will help calculate intrinsic value of the securities, technical analysis will
help to know the price trend, support, and resistance level of share prices.

Therefore, this study is to apply technical tools such as Chart, Moving Average, Relative
Strength Index etc.

Objectives of the Research:

1) To do a study on Technical Analysis on HINDFUSTAN AERONAUTICAL LIMITED

Limited stock and to find out buy or sell signal using different methods.
2) To forecast the future trends and provide suitable suggestions to the investors.
3) To analyze price movements using Relative Strength Index, Moving Average and Charts.

Area of Study / Scope of Study

The scope of this study is limited to below considerations:
1. This is a technical study based on charts and patterns analysis of HINDFUSTAN
AERONAUTICAL LIMITED Limited stock’s historical prices and their movements.
2. The data has been taken into consideration for the last financial year i.e. 2018 – 2022
only.
3. The researcher has used 5 patterns / charts / indicators only (as per his / her discretion
and understanding), to understand, analyse and interpret the performance of the stock
taken for study.

Research Approach
The researcher has followed a Quantitative Research Approach, wherein numerical data has
been used; taken from the various stock research websites available in public domain.

Type of Data
The researcher has used Secondary Data available on the Internet.

Tools used for Research

The researcher has analysed the performance by using below tools:
  Line Charts
 Candle Stick Charts

Limitations of the Study

1) The study is confined to a period of 5 years March 2018 to March 2022.

2) The accuracy is limited as the data collection was strictly confined to secondary sources.
3) The accuracy of the study is based on the data presented in the NSE website.
4) The study is only for academic purpose
 CHAPTER-3

DATA ANALYSIS AND INTEPRETATION

 Double bottom Pattern: -

It comes after a prolonged bearish trend, highly considered as a bullish reversal chart pattern. In
order to form the specific pattern downtrend reversal is necessary. After a prolonged downtrend,
there is a short-term reversal to the upside, creates its first bottom. Shortly after forming the first
bottom, the price rebound a little and creates the neckline. Subsequently, in the second phase, the
price moves back towards the support created by the first level and rallies to the neckline again.

CONDITION :-

 Firstly, the market pulls back up to 10% to 20% and creates a neckline.
 Though the difference between the two bottoms can be higher in higher time frame chart,
generally not more than 2% to 3%
 A double bottom has a 'W' shape and is a signal for a bullish price movement.
 After it market is bullish.
 Before the double bottom market should be bearish.
 CUP AND HANDLE
The cup and handle is considered a bullish signal, with the right-hand side of the pattern
typically experiencing lower trading volume. The pattern's formation may be as short as
seven weeks or as long as 65 weeks..

Conditions:-

 Prior trend can be upward or downward.

 There should be similarity between left and right shoulder.
 Target price is the gap between head and neck line.
 Stop loss : low of second candle.

 Bullish Harami
A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a
smaller bearish or bullish
candle on Day 2.
Again, the most important aspect of the bullish Harami
is that prices gapped up on Day 2 and price was held up and unable to move lower back
to the bearish close of Day 1.
CONDITION
 Market is in downward trend
 Body of green candle should absorb in green candle.
 Profit booking- 3%
 Stop loss is the low of green candle
  ASCENDING TRIANGLE

An ascending triangle is a chart pattern used in technical analysis. It is created by price

moves that allow for a horizontal line to be drawn along the swing highs and a rising trendline
to be drawn along the swing lows. The two lines form a triangle. Traders often watch
for breakouts from triangle patterns. The breakout can occur to the upside or downside.

CONDITION:-

 A long trade is taken if the price breaks above the top of the pattern.
 A short trade is taken if the price breaks below the lower trendline.
 A stop loss is typically placed just outside the pattern on the opposite side from the
breakout.
 A profit traget is calculated by taking the height of the triangle, at its thickest point, and
adding or subtracting that to/from the breakout point.


Bearish Engulfing

A bullish engulfing candlestick shows a pattern of trading prices for a particular security,
indicating a reversal in price trends. A candlestick is a type of chart that represents the four
important prices for intraday trading: opening, closing, day’s high and day’s low, for any
security.

CONDITION

 A bullish candlestick pattern shows a reversal in the trend of stock prices, from a
downward to an upward trend.
 In the phenomenon, a red candlestick showing a downtrend is completely engulfed by a
larger green candlestick showing an uptrend on the next day
 The bullish engulfing candle encourages traders to assume a long position; that is, they
should buy the stock and hold on to it, with the intention of selling it in the future at a
higher price.
`
 A long trade is taken if the price breaks above the top of the pattern a short trade is
taken if the price breaks below the lower trendline.

A stop loss is typically placed just outside the pattern on the opposite side from the
breakout.

A profit target is calculated by taking the height of the triangle, at its thickest point, and
adding or subtracting that to/from the breakout point.

CONDITION

 Hammer candlesticks typically occur after a price decline. They have a small real body
and a long lower shadow.
 The hammer candlestick occurs when sellers enter the market during a price decline. By
the time of market close, buyers absorb selling pressure and push the market price near
the opening price.
 The close can be above or below the opening price, although the close should be near the
open for the real body of the candlestick to remain small.
 The lower shadow should be at least two times the height of the real body.
 Hammer candlesticks indicate a potential price reversal to the upside. The price must
start moving up following the hammer; this is called
 CHAPTER 5

FINDINGS
 Stock Range must go from wide to narrow.
 Target price must be gap between first variations.
 Stop loss: low of last candle
 Buy at breakout.
 Conclusion
Technical analysis works best on currency markets, intermediate on futures markets, and worst
on stock markets. Chart patterns work better on stock markets than currency markets. Nonlinear
methods work best overall. Technical analysis doesn't work as well as it used to.
The basic philosophy of trading system and why objective is better than subjective.
Trading system can improve your performance and help to make you successful trader. The
reasons for that are clear:
 They force you to do your homework before making a trade.
 They provide a disciplined framework, making it easier for you to follow the rules.
 They enable you to increase your level of diversification.

SUGGESTIONS

 It should try to analyse its 4th Position & try to move up in ranking.
 There should be more number of Branches
 Various special & attractive offers should be introduced.
 It is advised to the company that rather than selling its service only inleading
Company better to tie up with the SME’S.
 They should work more to get profit.
 Bibliography

 investopedia

 https://www.ibef.org/

 https://www.investors.com/

 https://chartink.com/stocks/NIFTY.html

 https://in.tradingview.com/

 https://www.bseindia.com/

 https://www.nseindia.com/