A Study on Technical Analysis. PCS Securities Ltd.
MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE DEPARTMENT OF MANAGEMENT STUDIES SYNOPSIS Calculating the share movement of selected industries at pcs securities ltd. BY PROJECT GUIDE B. Surendra NaikB. Sreekanth ROLL NO: 11691E0051 ASSISTANT PROFESSOR INTRODUCTION The primary motive of investors investing in the secondary market is buying shares and selling them subsequently at a higher price to earn profit. The price of shares goes up and down owing to a number of factors.
These factors include High Prices, Interest rates, GDP, Demand and Supply, Market capitalization etc.
Objective of the study is to provide information to individual investors regarding their risk, and choosing the best investment options to match their goals and attitude to risk. INDUSTRY PROFILE Brokerage firms are the business entities that deal with stock trading. Indian brokerage industry dates back to 1850s, but started growing strongly in the 1990s after the creation of the regulatory body, the Securities Exchange Board of India (SEBI) and incorporation of NSE. The total trading volume of the Indian brokerage companies stood at US$ 2013. 1 billion in the year 2010.
This increased to US$ 2512. billion in 2011. It is further expected to reach US$ 6535. 7 billion by the year 2015. COMPANY PROFILE PCS Securities Ltd. Powered by Generations.
.. Inspired by Trust! | | PCS Securities Ltd. adds the dynamic growth factor to your savings and investments by guiding you through the land of opportunities and maximizing your returns. PCS is a fourth generation stock broking powerhouse – one among the top 100 national brokerage firms in India and has served thousands of investors over the past six decades. PCS is now present at over 340 locations across the Nation and one of the top CDSL Participants in South India.
PCS was born out of the aspirations of Late Mr. K. C. Shrimal – founder member of Hyderabad Stock Exchange – and nurtured through generations by Late Mr. S.
C. Shrimal and his son Mr. P. C. Shrimal, Promoter and Chairman of PCS Securities Ltd.
, twice President of HSE, who has also served as the Chairman of the FISE – Federation of Indian Stock Exchanges. He is currently assisted by his son, Mr. Prashant Shrimal. The Board consists not only of the highly experienced generational hierarchy, but also industry stalwarts with a wealth of expertise including Whole-time Director Mr.
Paresh Shah and Director Mr.
Jagdish Ahuja (Ex-President, Bangalore Stock Exchange). | LITERATURE REVIEW 1. A study on performance evaluation of equity shares done by J. Hassan and Scott E. Harrington.
STATEMENT OF THE PROBLEM It is always difficult to the customers to trace the market trend due to dynamic changes of the market. It is also difficult to find future trend moment of the market because of uncertainty in the market unless or until one should have close watch on the market and other factors which are influencing the market.
The factors include risk, return, changes in government policies, gross domestic product (GDP), inflation rate, balance of payments, foreign direct investments etc. , NEED FOR THE STUDY The stock market is highly volatile in nature. The investors should posses’ high analytical abilities to assess the risk and return.
Many investors are not rationally investing. So, Stock Brokers need some information about the scripts to give suggestions to their clients to form their portfolios. So that this study on the scripts traded in Karvy Stock Broking centre would help them. OBJECTIVES . To analyze the equity performance of selected scripts using fundamental and technical analysis 2. To study the risk and return of the securities.
3. To construct multiple portfolios from these scripts for investors with different objectives 4. To analyze the current market trends SCOPE OF THE STUDY In the fundamental analysis Indian economy and some selected industries were taken. Regarding company only the financial highlights of the company have been mentioned. The scope of the study is, 5 selected industries and 25 companies and economy related the study.
It acts as a source of information of the capital market and stock exchange in India. It gives the idea of Risk and Return of NSE NIFTY index companies. The data is taken for March 2013 to May 2013. SAMPLING From the NSE listed sectors five industries were selected based on the trading of particular Trade. Top five industries were selected from each industry five companies were selected based on the growth of that company. Among different companies top five companies were selected.
DATA SOURCES Secondary data The secondary data will be collected through the following: * General business publications Magazine and newspaper articles * Annual reports * Academic publications * Library sources * Computerized bibliographies. TOOLS OF ANALYSIS Fundamental Tools * MARKET * ECONOMIC * INDUSTRY Technical Tools * SIMPLE MOVING AVERAGE * EXPONENTIAL MOVING AVERAGE * RATE OF CHANGE ABOUT TECHNICAL ANALYSIS The aim of technical analysis is to forecast price trends in future basing on the historical data along with the one of the volume. Technical analysts are sure that any fundamentals and even expectations have affection to exchange rates changing being the factors of the market.
Any private investor can have an access to the technical analysis tools in order to compute his or her trading decisions. Though, we cannot state that these tools figure out unreliable estimations.
Technical analysis has been in use for centuries, that’s why its premises are based on the experience, prolonged observation and can be considered quite reliable. Japan traders started using the technique of candlestick which is still popular in the 18th century, so, it is thought as the oldest one. There are three suppositions laying at the basis of technical analysis: 1.
Everything should be considered at the market movement 2. Price movement has a purpose 3.
History is to repeat its occasions Relying on these statements, technical analysis can be described as the mathematical analyzing of historical data and carrying out price forecasts. LIMITATIONS OF THE STUDY 1. Study is limited to portfolio consisting of only 25 companies. 2. Data collection was strictly confined to secondary source.
No primary data is associated with project. 3. It is a onetime study, so that it may not valid for long period. REFERENCE WWW. MONEY CONTROL.
COM WWW. BSEPLUS. COM