Pavan Internship Reort - Final PDF

A STUDY ONTHE TECHNICAL ANALYSIS ON
EQUITY TRADING IN FMCG STOCK MARKET
Research Report submitted to Bharathidasan University in partial fulfillment of

the requirements for the award of
Masters of Business Administration

Submitted by
PAVAN H C
Register No.: 17418197
under the guidance of
Prof. PADMANABHAN V B
Professor
Jain College
Bangalore
Bharathidasan University
Tiruchirappalli
2018
DECLARATION
I hereby declare that the research entitled “STUDY OF

THE TECHNICAL ANALYSIS ON EQUITY TRADING IN FMCG STOCK
MARKET” submitted to Bharathidasan University in partial
fulfillment of the requirements for the award of MBA, is

a record of independent research work carried out by
me under the supervision and guidance of Prof.
Padmanabhan V B, Professor, Jain College, Bangalore.
This work has not formed the basis for the award of any
Degree and has not been submitted previously to any
other College/University.
Bengaluru
October, 2018 PAVAN HC

Prof. Padmanabhan V B
Professor
Jain College
Bangalore
CERTIFICATE
I certify that this research entitled “STUDY OF THE

TECHNICAL ANALYSIS ON EQUITY TRADING IN FMCG STOCK
MARKET” submitted to Bharathidasan University in partial
fulfillment of the requirements for the award of MBA, is a

record of independent research work carried out by
Mr.Pavan HC under my supervision and guidance. This
work has not formed the basis for the award of any
Degree and has not been submitted previously to any
other College/University.
Bengaluru Prof. Padmanabhan VB
October, 2018 Research Mentor

ACKNOWLEDGEMENT
I take this proud privilege to acknowledge gracefully the help we received
from different sources in preparation of this report.
I offer my heartfelt thanks to Prof Padmanabhan V B, Dept. of Master of

Business Administration Bharathidasan University for encouragement and
valuable suggestions, which he extended, to us from time to time in course
of completion of our Management In practice. I deeply indebted to Mr.
Ranjan S Business Associate Sunness Capital Private Limited who
rendered inestimable support in addition to his guidance, critical interest and
kind encouragement throughout the course of this work.
Finally, we acknowledge the help of various persons in the office as well as

in the college for the suggestions rendered from time to time towards the
preparation of this report.
PAVAN HC
Roll no:
17418153
EXECUTIVE SUMMARY
My entry level position with Sunness Capital India Private Limited was an
awesome learning background. I got a first-hand comprehension of how a
financier business is run.
In my internship period I learnt the basics of stock trading, Mutual fund,

Commodities, Insurance and Sunness products. The two fundamental essential
Functions which I am assigned to do is Client Acquisition and Investment
administration. Under Client Acquisition I am in charge of creating leads for the
organization. These Leads are created from LMS (containing subtle elements of
imminent customers) of the organization and leads of my own. The leads I
produce can be extensively arranged in three classifications Cold Leads, Warm
Leads and Hot Leads. I utilize the LMS database to contact customers and clarify
different sorts of administrations that Sunness capital brings to the table to its
client to make exchanging more straightforward Under speculation administration
my part is to deal with the customer documentation process, customers
"Focusing in process", finding out about exchanging values and items lastly
giving recommendation about stock costs. On some days I was taken to the
exchanging room where the merchants would execute exchanges in the interest
of the clients. I was additionally requested to open an exchanging account in the
organization and after that utilization their product to purchase/offer offers.
Sunness Capital has best in class programming where it empowers brokers to
get precise data of the stock costs and helps those makes exchanges flawlessly.
I was given a rundown of stocks to take after and I was approached to track their
execution for a specific period (typically multi week). I saw the effect of the Union
Budget on the share trading system.
The Budget empowered more foundation and provincial advancement.
Consequently, the foundation and protection stocks saw an incredible increment
in their esteem post the spending declaration. Mr. Ranjan a relationship
supervisor at Sunness, had a few one on one talks with me on subjects like; the
Indian economy, IT segment, Budget results and how to pick quality stocks.
The last 3 weeks of the entry level position was spent significantly in creating the
exposition report. I was educated on the best way to in a general sense evaluate
an organization and utilize diverse strategies, apparatuses, instruments,
diagrams, to foresee the future and investigate, to what extent a similar pattern
will remain in a similar example. At first, I depended on locales like
moneycontrol.com and Investing.com to aid my underlying investigation. I
additionally read past research investigates stocks identified with IT area from
different financier houses to comprehend their exploration procedure and the
manner in which they display their data. The general temporary job encounter
was very fulfilling and satisfying. I enhanced my investigative and relational
abilities amid the temporary position.
CONTENTS
Page No.
List of Tables
List of Graphs
Chapter I Introduction 1
1.1 Industry overview
1.2 History of industry
1.3 Stock Exchange
1.4 About FMCG Industry
1.5 Dow Theory
1.5.1 Primary Trend
1.5.2 Secondary Trend
1.5.3 Minor Trend
Chapter II Company Profile 18
2.1 History
2.2 Vision and Mission
2.3 Quality Policy
2.4 Products and Services
2.4.1 Equity
2.4.2 The Derivative
2.4.3 Other Benefits
2.4.4 Initial Public Offering

2.4.5 Mutual Fund
2.4.6 Government Securities
2.4.7 Corporate Bonds
2.5 Competitors Information
2.6 Growth and Prospectus
2.7 SWOT Analysis
Chapter III Research Methodology 33
3.1 Title of the Internship
3.2 Objectives of the study
3.3 Methodology
3.4 Methods of data collection
3.4.1 Secondary sources
3.5 Scope of the study
3.6 Steps used in methodology
3.7 Operational concept
3.8 Plan of analysis
3.8.1 Moving Average
3.8.2 Moving Average Convergence and

Divergence
3.8.3 Relative Strength Index
3.8.4 Rate Of Change
3.9 Limitations of the study

Chapter IV Data Analysis 44
4.1 Britannia
4.2 Marico
4.3 Nestle
4.4 ITC
4.5 Hindustan Unilever Limited
Chapter V Findings 71
5.1 Findings
Chapter VI Conclusions & Recommendations 73
6.1 Conclusions
6.2 Recommendations
Chapter VII Bibliography 78
7.1 Bibliography
LIST OF TABLES
Sl. Table Page

Title of table
No. No. No.
1 4.1 Britannia 45
2 4.2 Marico 50
3 4.3 Nestle 55
4 4.4 ITC 60
5 4.5 Hindustan Unilever Limited 66

LIST OF GRAPHS
Sl. Graph Page

Title of graph
No. No. No.
1 1.5. A Dow Theory – Uptrend 11
2 1.5 B Dow Theory – Downtrend 12
3 1.5.1 Primary Trend 13
4 1.5.2 Secondary Trend 14
5 1.5.3 Minor Trend 15
6 4.1 Britannia 46-49
7 4.2 Marico 51-54
8 4.3 Nestle 56-59
9 4.4 ITC 61-64
10 4.5 Hindustan Unilever Limited 66-69

CHAPTER- I
INTRODUCTION
1
1.1 ABOUT INDUSTRY:
A Stock Market, Equity Market or Share Market is the total of purchasers and
merchants (a free system of monetary exchanges, not a physical office or
discrete element) of stocks (additionally called shares), which speak to
proprietorship guarantees on organizations; these may incorporate securities
recorded on a stock trade and those exclusive exchanged secretly. A stock trade
is where, or an association through which, people and associations can
exchange stocks. Numerous huge organizations have their stock recorded on a
stock trade. This makes the stock more fluid and hence more alluring to
numerous financial specialists. It might likewise go about as an underwriter of
settlement. Different stocks might be exchanged "over the counter" (OTC), that
is, through a merchant. Some extensive organizations will have their stock
recorded on in excess of one trade in various nations, in order to pull in
worldwide speculators. Stock trades may likewise cover different kinds of
security, for example, settled intrigue securities (bonds) or (less as often as
possible) subordinates, which will probably be exchanged OTC.
A large portion of the exchanging the Indian securities exchange happens on its
two stock trades: the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE). The BSE has been in presence since 1875. The NSE, then
again, was established in 1992 and begun exchanging 1994. Notwithstanding,
the two trades take after a similar exchanging system, exchanging hours,
settlement process, and so on. At the last tally, the BSE had around 4,700
recorded firms, though the adversary NSE had around 1,200. Out of all the
recorded firms on the BSE, just around 500 firms constitute over 90% of its
market capitalization; whatever remains of the group comprises of exceptionally
illiquid shares.
2
1.2 HISTORY OF THE INDUSTRY;
Financial industry is the quickest developing, aggressive, complex industry which

has Potential. This industry is fundamental as it has coordinated impact on the
association improvement and furthermore the economy of our nation. Indian
money related industry is in procedure of quick change. It helps in enhancing the
efficiency and proficiency of the nation.
Budgetary administrations are not limited in the field of store taking development
and hypothesis organization on the opposite side it shows a wide range of
financial and business intermediation including the dispersal of cash related
things.
Monetary organization is required in each association at all the stages, it serves

to diminishes the associations costs while enhancing the customers nature on
choice and organization.
Fiscal administrations are a compelling efficient intensity of the nation and

additionally it is likewise useful for other business undertakings, models,
flourishing, and activities.
Financial organization frames storm cellar for their association reason, their
customers business reason, for their practices, direction and standards which
pays the best approach to make the benefits. Financial organization encourages
the people to wind up more extravagant easily to be touched base at redid cash
related things. Money related organization manages and hold the monetary
development. Indian fiscal organization are separated into different fragments
which goes about as the aggressive variables for boosting the business
development. As the consequence of the bargains as the GATS and basic zones
of advancement like outsourcing and off shoring encourages Indian budgetary
organization to develop and contend internationally.
3
1.3 STOCK EXCHANGE: -
Stock trade is a business focus or advertise or a place where people from the
affiliation amasses to trade associations stocks or diverse securities, it
additionally goes about as community for issue and recuperation of securities
and also other budgetary instruments and capital events including the portions of
pay and benefits.
The securities traded on a stock exchange incorporates: -
Offers issued by associations, units, trusts, subordinates, pooled wander things

and bonds. just the recorded or recorded stocks can be traded in the stock trade.
Current markets are electronic framework for security trade which gives positive
conditions of rate and costs of trade.
List of the stock exchanges: -
1. Bombay Stock Exchange

2. National Stock Exchange
➢ Bombay Stock Exchange: -
The Bombay Stock Exchange (BSE) is an Indian stock trade situated at Dall
Street, Kala Godha, Mumbai (earlier Bombay), Maharashtra, India. Set up in
1875, the BSE is Asia's first stock trade. Its cases to be the world's quickest
stock trade, with a middle exchange speed of 6 microseconds. The BSE is the
4
world's eleventh biggest stock trade with a general market capitalization of $1.43
Trillion as of March, 2016.
In excess of 5500 organizations are openly recorded on the BSE. Not at all like
nations like the United States where 70% of the GDP is gotten from bigger
organizations and the corporate division, the corporate part in India represents
just 12-14% of the national GDP. Of these, as of November 2016, there are just
7,800 recorded organizations of which just 4000 exchange on the stock trades at
BSE and NSE. Henceforth the stocks exchanging at the BSE and NSE represent
just around 4% of the Indian economy.
➢ NATIONAL STOCK EXCHANGE:
The National Stock Exchange of India Limited (NSE) is the main stock trade of
India, situated in Mumbai. NSE was built up in 1992 as the primary demutualized
electronic trade in the nation. NSE was the main trade in the nation to give a
cutting edge, completely mechanized screen-based electronic exchanging
framework which offered simple exchanging office to the speculators spread over
the length and expansiveness of the nation.
National Stock Exchange has an aggregate market capitalization of more than

US$1.41 trillion, making it the world's twelfth biggest stock trade as of March
2016. NSE's leader record, the NIFTY 50, the 51-stock list (50 organizations with
51 securities comprehensive of DVR), is utilized broadly by financial specialists in
India and around the globe as a gauge of the Indian capital markets. Be that as it
5
may, just around 4% of the Indian economy/GDP is really gotten from the stock
trades in India.
NSE offers exchanging, clearing and settlement benefits in value, value

subordinates, obligation and cash subsidiaries portions. It is the main trade in
India to present electronic exchanging office accordingly interfacing together the
financial specialist base of the whole nation. NSE has 2500 VSATs and 3000
rented lines spread over in excess of 2000 urban communities crosswise over
India.
The trade was fused in 1992 as an assessment paying organization and was
perceived as a stock trade in 1993 under the Securities Contracts (Regulation)
Act, 1956, when P. V. Narasimha Rao was the Prime Minister of India and
Manmohan Singh was the Finance Minister. NSE initiated tasks in the Wholesale
Debt Market (WDM) section in June 1994. The capital market (values) portion of
the NSE started activities in November 1994, while tasks in the subordinate’s
section initiated in June 2000.
DEVELOPMENT AND PROSPECTS OF THE INDUSTRY
➢ BSE remains as one of the most established stock trades in Inia

being known as "The Native Share and Stock Brokers Association"
in 1875.
➢ NSE fused in November 1992, however perceived as stock trade
on April 1993 under Securities Contract Act 1956.
➢ Over the previous 136 years BSE gives capital arrangement to the
corporates and profiting profits and liquidity for the ventures for the
financial specialists.
➢ BSE is World’s No.1 trade based on most elevated recorded
organizations in it (more than 4900).
➢ Worlds fifth most dynamic as far as number of exchanges took care
of over the electronic mediums is BSE.
6
➢ NSE is few among the world best trades which exchanges a few
kinds of securities on a solitary stage.
➢ Among top 10 worldwide trades BSE holds eighth Rank (Market
capitalization 1,631 USD Billions) and Trade esteem 258 USD
Billion.
➢ NSE held ninth Rank (M.C 1,596 USD Billion) and Trade esteem
801 USD Billion.
➢ Companies recorded under NSE, known for most elevated turnover
volume for values and subsidiaries provided food 1.59 Trillion USD
showcase capitalization.
➢ BSE is the principal trade in India and second in world to acquire an
ISO 9001:2000 Certification, additionally to get "Data SECURITY
MANAGEMENT SYSTEM STANDARD BS 7799-2-2002"
Certification for its BSE On-Line Trading System (BOLT).
1.4 ABOUT FMCG INDUSTRY:
As I have taken just FMCG division stocks for examine reason, presentation on
FMCG part or FMCG industry is given underneath.
In India FMCG segment has got fast development which is considered as fourth
biggest area in Indian economy. The market estimate was US $ 30 billion of
every 2011 and it is relied upon grow up to US $ 74 billion out of 2018. In FMCG
area there are numerous fragments in those sections sustenance items is the
best FMCG portion with 43% of piece of the pie at that point comes individual
care items with 22% piece of the pie and texture with 12% piece of the overall
industry.
FMCG items are called as shopper merchandise which customer will get them at
standard interims a portion of the illustrations are cleanser, cleanser, cleansers,
tooth glue, nourishment items, refreshments and soda pops like coco cola, Pepsi,
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sprite and so on, additionally house hold frill and some electronic things. These
are a portion of the thing’s purchasers utilize every now and again.
Provincial territory plays a noteworthy part being developed of FMCG division in

the nation, as they help in guide circulation of the items to the diverse piece of
the nation and rustic region individuals likewise begins to buy FMCG items as
they discover the best approach to enhance their way of life. What's more, FMCG
organizations additionally demonstrating enthusiasm to deliver the items focusing
on the country populace as they are helping in coordinate dissemination the
FMCG items government is likewise helping them by giving the advances to
them to abrogate the joblessness in rustic territory and make them as self-
representative and it is additionally giving them the base supporting cost to
expand their buying power.
Mid – high wage bunches in urban territories are moved their inclination to
premium items so firm began to expand their top-notch items line, and the
exploration done on test size of 2000 individuals has uncovered that the general
population matured between 18-24 resemble spend progressively and they
generally buy the prescribed items, this gathering dependably give significance
for speed than gigantic items. The present age needs to have speed, savvy, all
around bundled products.
FMCG organizations should offer significance to innovative work, as it discovers

purchaser’s knowledge and furthermore can know the future pattern or what the
age is expecting with the goal that the organization can create the items as per
the changing needs and inclinations of the customers.
Presently multi day's all FMCG organizations are putting resources into wellbeing
and health area. As it is the pattern going on. FMCG can develop and maintain
just when it reacts or create the merchandise as per the customers inclinations
and patterns.
8
FOR FURTHER ANALYSIS, SELECTED FMCG COMPANIES ARE AS
FOLLOWS
ABOUT THE SUBJECT;
As we realize that the costs of the stocks in the share trading system isn't steady
and it continues fluctuating each day because of persistent obtaining and offering
of stocks each day. On account of this the dealers and examiners in the share
trading system will go for buying the securities at most reduced cost and offering
them for most noteworthy cost when the cost of the specific stock will increment
to make some benefit. The theorists and the merchants use to anticipate the
future before obtaining any stocks by utilizing diverse apparatuses and strategies
and their experience likewise encourages them to appraise the future pattern.
Particular examination or specialized investigation is the technique for assessing

the future patterns which going to be happened where the dealers and theorists
who are in the share trading system, use past costs, past patterns, and graphs
which demonstrates the past pattern to appraise the future development how it
might happen by dissecting and translating the outlines and past value, volume.
By along these lines they teach their customers in choosing stocks, making their
redid portfolios and contributing or offering the stocks.
9
There are many specific specialists and specialized investigator who utilizes
distinctive techniques, devices, instruments, diagrams, to foresee the future and
to examine, to what extent a similar pattern will remain in a similar example and
they likewise put outlines and charts for future reference.
Specialized examination takes a crucial part to in future esteem estimation and

concentrates the request and supply which use to know the what pattern or
example will continue later on.
Presently a day every last one who needs put resources into securities exchange
will utilize specialized investigation and each financial specialist needs need to
counsel with specialized examiner before putting resources into stocks. That
much significance the specialized examination has picked up in the share trading
system today.
1.5 DOW THEORY: -
Any attempt to follow the beginnings of specialized examination would

unavoidably prompt Dow Theory. While over 100 years of age, Dow Theory
remains the establishment of quite a bit of what we know today as specialized
investigation.
Dow Theory was planned from a progression of Wall Street Journal publications
created by Charles H. Dow from 1900 until the season of his demise in 1902.
These articles mirrored Dow's convictions on how the share trading system
carried on and how the market could be utilized to gauge the soundness of the
business condition.
Dow trusted that the share trading system in general was a solid measure of by
and large business conditions inside the economy and that by breaking down the
general market; one could precisely check those conditions and recognize the
course of significant market patterns and the imaginable bearing of individual
stocks.
10
A vital piece of Dow Theory is recognizing the general bearing of the market. To
do this, the hypothesis utilizes slant examination. Before we can get into the
specifics of Dow Theory slant investigation, we have to comprehend patterns. In
the first place, it's essential to take note of that while the market tends to move in
a general course, or pattern, it doesn't do as such in a straight line. The market
will rally up to a high (pinnacle) and after that auction to a low (trough), yet will by
and large move one way.
Figure A: An Uptrend
An upward pattern is separated into a few encourages, where each rally has a
high and a low. For a market to be considered in an uptrend, each crest in the
rally must achieve a more elevated amount than the past rally's pinnacle, and
each low in the rally must be higher than the past rally's low.
A descending pattern is separated into a few offer offs, in which each auction
likewise has a high and a low. To be viewed as a downtrend in Dow terms, each
new low in the auction must be lower than the past auction's low and the crest in
the auction must be lower than the crest in the past auction.
11
Figure B: A Downtrend
Since we see how Dow hypothesis characterizes a pattern, we can take a gander
at the better purposes of pattern investigation.
Dow hypothesis recognizes three patterns inside the market: essential, auxiliary
and minor. An essential pattern is the biggest pattern going on for all the more
than a year, while an optional pattern is a middle pattern that endures three
weeks to three months and is frequently connected with a development against
the essential pattern. At last, the minor pattern frequently keeps going under
three weeks and is related with the developments in the moderate pattern.
Let us now take a look at each trend.
1.5.1 PRIMARY TREND: -
In Dow Theory, the essential pattern is the real pattern of the market, which
makes it the most imperative one to decide.
This is on the grounds that the abrogating pattern is the one that influences the
developments in stock costs. The essential pattern will likewise affect the
auxiliary and minor patterns inside the market.
12
Dow verified that an essential pattern will for the most part last somewhere in the
range of one and three years however could shift in a few occasions.
Figure 1: an uptrend with rectifications
Regardless of trend length, the primary trend stays as a result until there is an
affirmed inversion. For instance, if in an uptrend the value closes underneath the
low of a formerly settled trough, it could be an indication that the market is going
lower, and not higher.
While reviewing trend, a standout amongst the most troublesome things to

decide is to what extent the value development inside a primary trend will last
before it turns around.
The most imperative viewpoint is to recognize the bearing of this trend and to
exchange with it, and not against it, until the point that the heaviness of proof
proposes that the primary trend has turned around.
13
1.5.2 SECONDARY OR INTERMIDIATERY TREND: -
In Dow Theory, an essential pattern is the principle heading in which the market
is moving. On the other hand, an auxiliary pattern moves the other way of the
essential pattern, or as an adjustment to the essential pattern.
For instance, an upward essential pattern will be made out of auxiliary

descending patterns. This is the development from a sequentially higher high to a
successively bring down high. In an essential descending pattern, the optional
pattern will be an upward move, or a rally. This is the development from a
continuously bring down low to a sequentially higher low.
The following is a delineation of an optional pattern inside an essential uptrend.

Notice how the transient highs (appeared by the level lines) neglect to make
progressively higher pinnacles, proposing that a fleeting downtrend is available.
Since the retracement does not fall underneath the October low, dealers would
utilize this to affirm the legitimacy of the rectification inside an essential uptrend.
Figure 2: a secondary trend w/a primary uptrend
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By and large, an optional, or middle, slant regularly endures between three
weeks and three months, while the retracement of the auxiliary pattern by and
large ranges between 33% to 66% of the essential pattern's development. For
instance, if the essential upward pattern moved from 10,000 to 12,500 (2,500
focuses), the optional pattern would be relied upon to send the DJIA down no
less than 833 focuses (33% of 2,500). Another important characteristic of
secondary trend is that its moves are regularly more unpredictable than those of
the secondary move.
1.5.3 MINOR TREND:
The remainder of the three pattern composes in Dow Theory is the minor pattern,
which is characterized as a market development enduring under three weeks.
The minor pattern is by and large the remedial moves inside an optional move, or
those moves that conflict with the course of the auxiliary pattern.
Figure 3
15
Because of its transient nature and the more extended term focal point of Dow
Theory, the minor pattern isn't of real worry to Dow Theory supporters. Be that as
it may, this doesn't mean it is totally unessential; the minor pattern is viewed
because of the expansive picture, as these fleeting value developments are a
piece of both the essential and auxiliary patterns.
Dow Theory speaks to the start of specialized examination. Understanding this

hypothesis should lead you to a superior comprehension of specialized
examination and of an examiner's perspective of how advertises function.
How about we recap what we have learned:
➢ Dow Theory was defined from a progression of Wall Street Journal

publications created by Charles H. Dow, which mirrored Dow's convictions
on how the stock exchange carried on and how the market could be
utilized to gauge the wellbeing of the business condition.
➢ Dow trusted that the stock exchange all in all was a dependable measure
of generally business conditions inside the economy and that by
dissecting the general market; one could precisely check those conditions
and recognize the heading of significant market patterns and the
imaginable bearing of individual stocks.
➢ The market discounts everything.
➢ Dow Theory utilizes incline examination to figure out which way the market
is going.
➢ Primary patterns are significant market patterns.
➢ Secondary patterns are remedies of the essential pattern.
➢ Primary patterns are comprised of three stages. For an upward pattern,
these stages are: the gathering stage, general society investment stage
and the overabundance stage. For a descending pattern, the three stages
are: the dissemination stage, people in general interest stage and the
frenzy stage.
16
➢ Market records must affirm each other. At the end of the day, a noteworthy
inversion from a bull or bear showcase can't be flagged except if both
records (by and large the Dow Industrial and Rail Averages) are in
understanding.
➢ Volume must affirm the pattern. The records are the primary flags that
show a security's development, however volume is utilized as an optional
pointer to help affirm what the value development is recommending.
➢ A pattern will stay essentially until the point when a reasonable inversion
happens.
➢ Dow depended exclusively on shutting costs for deciding patterns, not
intraday value developments.
➢ Peak-and-trough examination is a key method used to distinguish drifts in
Dow Theory.
➢ Since the coming of Dow Theory, further developed methods and
apparatuses have developed this hypothesis and started to have its spot.
➢ One issue with Dow Theory is that devotees can pass up a great
opportunity for expansive increases because of the preservationist idea of
a pattern inversion flag.
➢ Another issue with Dow Theory is that after some time, the economy - and
the files initially utilized by Dow - has changed.
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CHAPTER: 2
COMPANY PROFILE
18
COMPANY OVERVIEW: -
Business Security Issue Status Indian Non-Government

Company Founded India, 2009
Status Indian Non-Government Company
Founded India,2009
Headquarters Bangalore, Mangalore
Key People Pramod B K: Regional Head
Website www.sunness.in
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2.1 Organization Profile which incorporates History of the Company.
SUNNESS CAPITAL INDIA PRIVATE LIMITED (SCIPL), was introduced in

2009, is a functioning capital firm that has some expertise in ventures. SCIPL is
headquartered in Bangalore with branch office in Mangalore. SCIPL is a venture
administration firm that boosts rate of return, offering partners a one of a kind
conductor of hazard controlled exceptional yield on speculation. Our way to deal
with values keeps on being through esteem arranged, central research and
trained portfolio administration.
2.2 VISION and MISSION: -
➢ Vision statement
Vision Statement "To give world-class Wealth Management Services

by organizing all possible budgetary administrations under one-
rooftop at moderate expenses through financially savvy conveyance
frameworks, and to accomplish natural development in business by
including more current lines of business, with the assistance of self-
persuaded and forceful group of youthful experts"
➢ Mission statement
Statement of purpose Providing long haul esteem expansion to

customers, while keeping up the most elevated principles of
perfection, morals and polished skill. We trust our prosperity is
identified with confidence in our controlling standards.
2.3 QUALITY POLICY;
"Quality Policy: To accomplish and hold initiative, SUNNESS will go for finish
consumer loyalty, by consolidating its human and mechanical assets, to give
prevalent quality money related administrations. All the while, SUNNESS will
endeavor to surpass Customer's desires.
20
Quality Objectives: according to the Quality Policy, SUNNESS will:
➢ Work in-house frames that will ensure direct and friendly relationship with
its clients and examiners to give high gauge of organizations.
➢ Set up an assistant relationship with its monetary expert organization
administrators and dealers that will help in keeping up its obligations to the
customers.
➢ Give high gauge of work life for each one of its delegates and outfit them
with tasteful learning and capacities to respond to customer's needs.
➢ Keep on keeping up the estimations of dependability and respectability
and try to set up unparalleled benchmarks in business ethics.
➢ Use front line information advancement in becoming new and inventive
money related things and organizations to meet the changing needs of
monetary masters.
2.4 Products and Services Profile
2.4.1 Equity; -
Putting resources into offers or securities exchange is inarguably the best course
to long haul riches gathering. Sunness Capital India Pvt. Ltd gives direction in the
energizing universe of securities exchange with appropriate exchanging
arrangements and esteem added instruments and administrations to upgrade
your exchanging background.
Organization services: -
Online Trading:
➢ Excellent online items custom-made for brokers and financial specialists.

➢ Customized single screen Market Watch for numerous trades, MCX and
NCDEX with BSE, NSE &MCX-SX.
➢ Streaming quotes.
➢ Real-time rates.
➢ Flash news and intra-day Research reports.
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➢ Intra-day and historical charts with specialized instruments.
➢ Online research
Quality Research:
➢ Wide scope of day by day, week by week and exceptional Research

reports.
➢ Expert Sector Analysts with proficient industry encounter
Advisory:
➢ Real-time advertise data with News refreshes.

➢ Investment Advisory administrations.
➢ Dedicated Relationship Managers
2.4.2 THE DERIVATIVE: -
The subordinate portion is an exceedingly lucrative market that gives financial

specialists a chance to procure superlative benefits (or misfortunes) by paying an
ostensible measure of edge. Over recent years, Future and Options section has
developed as a famous medium for exchanging money related markets. Future
contracts are accessible on Equities, Indices, Currency and Commodities.
Sunness with its participation as Trading and Clearing Member of NSE F&O
Segment and BSE Derivatives Segment, gives you a door to the energizing
universe of subordinate market.
Sunness expects to bridle the colossal capability of the Commodities showcase

by giving you a straightforward yet viable interface, research and learning.
22
Organization Advantages:
SCIPL gives easy to use online stages to item exchanging the main product
trades
Top quality Research:
I. The organization done in house explore on in excess of 25 items.

II. The association have top gifted Analysts with proficient industry
encounter.
III. The association look after Daily, Weekly and Monthly Research Reports
Pro-Active Relationship Management:
➢ Active warning work area.

➢ The association have proficient and countrywide system.
➢ The association gives courses, workshops and venture camps for financial
specialists
Advantages:
➢ Automated pay-in office.

➢ Access data – Anytime, Anywhere.
➢ Quarterly Demit articulations with valuation.
➢ Statements on request.
➢ View Demit A/C proclamation online.
➢ Competitive exchange charges
23
Appreciate restrictive advantages by enlisting with SUNNESS:
➢ No danger of misfortune, wrong exchange, mutilation or burglary of offer

testaments.
➢ Hassle free mechanized pay-in of your offer commitment with no
requirement for physical direction.
➢ Reduced printed material.
➢ Speedy settlement process bringing about expanded liquidity of your
securities.
➢ Instant payment of non-money benefits like Bonus and Rights.
➢ Efficient vow system.
➢ Wide branch scope.
➢ Personalized administrations of prepared Help work area.
➢ No charges for additional Transaction explanation and Holding
proclamation
2.4.3 Other Benefits:
➢ Low Commissions: Brokerage charges are low as the market is

exceptionally aggressive.
➢ Standardized Lot Size: In the fate’s markets, trades decide part or
contract sizes which are settled in nature. This enables dealers to
exchange numerous parts.
➢ Low Transaction Cost The retail exchange cost (the offer/ask spread) is
regularly under 0.1% under ordinary economic situations. In expansive
arrangements, the spread could be as low as 0.07%.
➢ High Liquidity: With a normal exchanging volume of over $4 trillion every
day, Forex advertise has high liquidity. It implies that a merchant can enter
or leave the market voluntarily in any economic situation.
➢ Instant Transactions: This is an extremely favorable result of high
liquidity.
➢ Low Margin, High Leverage: These variables increment the potential for
higher benefits (and misfortunes).
24
➢ Online Access: The enormous blast in Forex accompanied the
appearance of web-based exchanging stages.
➢ Interbank Market: The foundation of the Forex advertise comprises of a
worldwide system of merchants. They are for the most part real business
banks that convey and exchange with each other and with their customers
through electronic systems and by phone.
There is no sorted out trade to serve as a focal area to encourage
exchanges the manner in which the New York Stock Exchange serves the
value markets. The Forex showcase works in a way like that of the
NASDAQ market in the United States. Along these lines, it is likewise
alluded to as an over-the counter (OTC) advertise.
➢ Self-administrative: The Forex advertise is so huge and has such a
significant number of members that no single element, not in any case a
Central Bank, can control the market cost for an expanded period. Indeed,
even mediations by strong Central Banks are ending up progressively
inadequate and brief. In this way, Central banks are winding up less and
less slanted to intercede and control money costs.
➢ No Insider Trading: Because of the Forex market's size and
noncentralized nature, there is for all intents and purposes no possibility
for sick impacts caused by insider exchanging. Misrepresentation
conceivable outcomes, in any event against the framework overall, are
fundamentally not exactly in some other money related instruments.
➢ Limited Regulation: There is constrained administrative impact through
direction in the Forex markets, primarily in light of the fact that there is no
incorporated area or trade.
➢ Internet Trading: Making the correct exchange at the perfect time!
Welcome to our E-Broking administration which presents to you an ordeal
of web-based purchasing and offering of offers with only a tick. A detail
asset like live statements, outlines, research and guidance encourages
you take legitimate choices.
25
➢ Depository Participant: Enjoy the double advantages of exchanging and
store benefits under one rooftop and experience effective, hazard free and
incite safe administration. SUNNESS is enlisted as a Depository
Participant with CDSL. In the seasons of T+2 having a Demit account
connected to your exchanging account turns out to be more
advantageous. You get customary record reports and an effective
administration constantly.
2.4.4 INITIAL PUBLIC OFFERING (IPO)
We offer esteem included administrations like data expected IPO, brief profiles of
Companies entering capital market and so on, which empowers the customer to
improve assets assignment.
Our Services
➢ Availability of all IPO frames.

➢ Guidance for all new IPO's by experienced experts
➢ Distribution and accumulation of structures up to 5 pm.
➢ Facility of HNI financing.
➢ Prompt New Demit account opening for IPO financial specialists Facility to
advise about apportioning in Demit a/c through SMS.
➢ Facility of telephonic request of demit adjust.
➢ Competitive administration duty in the business.
2.4.5 MUTUAL FUND:
Contribute securely and safely, at a decreased cost, in a different scope of

securities, spread over a wide range of ventures and parts.
26
2.4.6 GOVERNMENT SECURITIES:
Government securities guarantee reimbursement of chief upon development and

in addition coupon or premium instalments periodically Examples of government
securities incorporate investment funds bonds, treasury bills and notes. Since
they are okay, the arrival on the securities is by and large.
2.4.7 CORPORATE BONDS:
A corporate bond is a security issued by a partnership. It is a security that an

organization issues to fund-raise successfully so as to extend its business. The
term is typically connected to longer-term obligation instruments, by and large
with a development date falling no less than a year after their issue date
2.5 Competitors Information
2.5.1 Share khan
: Share khan is one of the fundamental retail breakages of Citi Venture which is
running adequately from 1922 in the country. Share khan renders its customers a
broad assortment of significant worth related organizations including trade
execution on BSE, NSE, Derivatives, store organizations, web trading, wander
direction et cetera.
2.5.2. Angel Broking Limited: Angel Broking, Ltd. gives retail individual money
related administrations in India. The organization offers e-broking, portfolio
administration, common store, private customer gathering, wares broking,
speculation warning, riches administration, IPO, and safe administrations. The
organization was established in 1987 and central station in Mumbai, India.
2.5.3 Karvy Stock Broking Limited: Karvy Stock Broking Limited gives stock
broking and research admonitory organizations in India. The association offers
portfolio examination, safe part, and cash related masterminding and
organization organizations for individuals and institutional clients.
27
Additional to that, multi month to month magazine, Fin polis, which surrenders
dated business part information on business segment designs, hypothesis
options, and suppositions. The association was built up in 1990 and is arranged
in Hyderabad, India. Karvy Stock Broking Ltd. fills in as a helper of Karvy
Consultants Limited.
2.5.4. Motilal Oswal Securities Ltd: Motilal Oswal Securities is a main research
and advising in view of stock broking place of India, with transcendent
circumstance in both institutional and retail broking. Motilal Oswal Securities
Provide direction-based broking both with qualities and auxiliaries, portfolio
administration services (PMS), e-broking, store organizations, things trading, IPO
and shared reserve theory consultative organizations, has seen quick regular
growth. FY05 and FY06 saw the association turn out to be inorganically through
acquisition of three basic neighborhood broking firms from Andhra Pradesh,
Karnataka and Kerala.
2.5.5. VLS FINANCE LTD: VLS Group is a multi-faceted multi-divisional fused

fiscal organization bundle with critical region in each part of cash related
organizations, for instance, Asset Management, Strategic Private Equity
Investments, Arbitrage and all the more particularly in Stock broking and
Corporate Consulting and Advisory Services. The present business division
capitalization stays at Rs 177.07 crore. The association has detailed an
independent offer of Rs 896.82 crore and a Net Profit of Rs 1.76 crore for the
quarter completed September 2014.
2.5.6. BNK SECURITIES PRIVATE LTD: BNK Securities Pvt. Ltd. (ISO
9001:2008 Certified) is the person from National Stock Exchange, Bombay Stock
Exchange, DP with CDSL and the association is moreover the person from MCX-
SX and Calcutta Stock Exchange (CSE). It gives broking and vault organizations
to a lot of high aggregate resources examiners, corporate and business houses,
cash related foundations, banks and basic resources. It is moreover incorporated
into dissemination of cash related things. The present business division
capitalization stays at Rs 48.85 crore. The association has announced an
28
independent offer of Rs 0.74 crore and a Net Profit of Rs 2.71 crore for the
quarter completed September 2014.
2.5.7.GEOJIT BNP PARIBAS: Geojit BNP Paribas has support in, and is
recorded on, the National Stock Exchange (NSE) and the Bombay Stock
Exchange (BSE). The association rides on its rich contribution in the capital
business part to offer its clients a wide course of action of hold subsidizes and
wander game plans. The degree of value included things and organizations
offered ranges from qualities and auxiliaries to Mutual Funds, Life and General
Insurance and outcast Fixed Deposits. The present business segment
capitalization stays at Rs 869.44 crore. The association has detailed a
consolidated offer of Rs 66.38 crore and a Net Profit of Rs 17.65 crore for the
quarter completed December 2014.
2.5.8. R K GLOBAL SHARES and SECURITIES LTD: R K Global is India based

fastest creating Share and Commodity Broking Company. RK Global moved its
retail encouraging business in year 2004 and starting now and into the
foreseeable future turn out to be exponentially. Association today gives
organizations under Equities, Derivatives, Commodities, Currency, Depository,
IPO Distribution, Mutual Fund Distribution and Consultancy areas. RK Global
today has Pan India region with its thing contributions in excess of 150 urban
networks across finished India anyway its business accomplices.
2.5.9. ZERODHA:
Zerodha is a Bangalore, India based Flat Free Share Broker for trading Stock,
Commodity and Currency Derivative. It charges lender of 0.01% or Rs 20 per
executed ask for, whichever is lower, free to number of offers or their expenses.
Zerodha is first and No. 1 markdown expert in India by volume, number of
customers and improvement. Like other online stock trading associations,
Zerodha offers trading organizations to buy and offer stocks, destinies and
options (in Equity, Currency and Commodity divides). Zerodha's offer trading
stage is filled by Omnesys 'Home Trader'.
29
2.6 FUTURE GROWTH AND PROSPECTS:
In a continually propelling business part, they consistently search for worth for
their clients and they intend to add more organizations to their ebb and flow
Investment Banking cluster and be the favored choice for clients for their raising
help and advising needs. A portion of their game plans include:
➢ Value-based proactive Portfolio Management Services (PMS) to Resident

and Non-resident Indians.
➢ Significant bit of the general business in Commodities Futures Trading
Segment in India.
➢ Value based Global Portfolio and Asset Allocation access to Resident
Indians.
➢ Clearing, execution and overseer organizations for Non-Resident Indians,
Foreign Institutional Investors and Overseas Corporate Bodies.
➢ Debt showcase trading both Retail and Whole-bargain divide for occupant
money related experts and furthermore abroad bodies.
2.7 SWOT ANALYSIS: -
Strength:
➢ Brand name: SUNNESS has a decent name in the market because of its
noticeable administrations and in addition with the huge customers added
to its repertoire. Additionally, due to its 66 delayed long periods of
amazing administrations to the customers.
➢ Original research: According to the examination in view of realities,
speculations, thoughts which have not yet been liable to peer audit by
specialists which are dependable production.
➢ The organization has a coordinated innovation: It is a merged
arrangement with the issues identifying with framework and innovation.
30
➢ The innovation as a great deal apparatus to upgrade the learning territory
in a multidisciplinary and powerful joining to accomplish the data in
auspicious way breaks down and show professionally.
➢ One stop searches for every one of the customers: It is the
organization which has an umbrella of administrations to its clients where
they can get all they require in only one shop.
➢ Company has committed research group who takes a gander at the for the
duration of the day where to contribute and where to offer.
➢ Company has a developing turnover and gainfulness according to
monetary record examination.
➢ Sound budgetary condition gives the preferred standpoint over the
contenders as they have high benefits and turnover when contrasted with
different firms.
➢ Satisfying the need of the customers
➢ Meeting up the customer prerequisite in time
➢ Innovation and imaginative in notice portion
➢ Quality in promotion
➢ Efficient cooperation condition
➢ Expertise and experienced workforce
Weakness:
➢ Market share is constrained because of numerous contenders.

➢ Geographic entrance is additionally restricted.
➢ Turnover of representatives: At SUNNESS it is the way toward
supplanting one laborer to other with regards to execution or some other
reason inside a given time. This prompts the higher rates of
representatives.
➢ High cost structure in IT division: Investment on expensive
programming's and programming gadgets expands the cost for the
organization.
31
➢ Lack of utilization and inadequate phone gadgets to speak with the client
and customers.
Opportunities:
➢ Decentralized basic leadership is useful as nearby showcasing needs shift

starting with one area then onto the next.
➢ Entering in worldwide market to draw in worldwide customers.
➢ Dissatisfied clients of contenders.
➢ Market development for the company's fundamental item and
administrations.
➢ Economy is relied upon to increment by 8% one year from now.
➢ Well-prepared address the consistently changing difficulties and regarded
customers give a steady undertaking for the organization.
Threats:
➢ New or expanded rivalry is one of the significant dangers to the

organization in view of free government strategies and directions make
different firms to go into the market.
➢ Adverse government approaches: The change in monetary and political
arrangements or laws influences the Brokerage antagonistically which
comes about the negative result of budgetary condition.
➢ Increasing claims because of sheer carelessness in planning of
advertisements.
➢ Recession may hit the business as cut is fundamentally on showcasing
spending plan of corporates.
➢ Cut-throat rivalry offered by different players in the business.
➢ Changes in the taste and inclinations of customers.
32
CHAPTER: 3
INTERNSHIP METHODOLOGY
33
PROJECT PROFILE
3.1 TITLE OF THE REPORT
“A STUDY TECHNICAL ANALYSIS ON EQUITY TRADING IN FMCG STOCK

MARKET”
The study aims at extracting the price movements and analyzing the price
movements of selected companies’ stocks.
3.2 OBJECTIVES OF THE STUDY:
➢ It aims at analyzing the tools of technical analysis used for forecasting

stock prices and interpreting whether to buy or sell them.
➢ To interpret the movements of stock prices.
➢ To analyses the Company’s performance and project the returns the
investor can get.
➢ To give suitable investment suggestions to an investor.
3.3 RESEARCH METHODOLOGY: -
Research technique is an approach to methodically take care of the examination

issue. It might be comprehended as an investigation of concentrate how explore
is done deductively. In it we examine the different advances that are for the most
part embraced by a specialist in concentrate his exploration issue alongside the
rationale behind them. It is essential for the specialist to know the examination
strategies/systems as well as the approach.
3.4 METHODS OF DATA COLLECTION;
The study aims at extracting the price movements and analyzing the price
movements of selected companies’ stocks. Secondary method has been used to
collect the data. The research design is descriptive and conclusive in nature.
34
3.4.1 SECONDARY SOURCES: -
➢ From the different sites like moneycontrol.com, NSEINDIA.com,

BSEINDIA.com, Googlesearch.com, Investopedia.com.
➢ Different budgetary diaries, newspapers, books.
➢ Reports by overseers, authorities, scientists and so on.
3.5 SCOPE OF THE STUDY;
➢ The research depends on the costs of 5 FMCG organizations, i.e. ITC,

NESTLE, HUL, MARICO, and BRITANNIA.
➢ The research depends on the oscillators, apparatuses for specialized
investigation and includes the figuring of four oscillators that are MA,
ROC, RSI and MACD.
➢ The exploration information incorporates week by week shutting costs
cited on "The National Stock Exchange".
➢ Moving Average is been taken from 20 days normal in every month.
➢ RSI and ROC is figured on a year.
➢ MACD, Convergence is taken for 12 days and Divergence is been taken
for 26 days.
3.6 FOLLOWING STEPS ARE USED IN METHODOLOGY: -
➢ Use of technical tools like moving average, relative strength index,

moving average convergence and divergence.
➢ Identification of patterns and trends in the stock price movements.
➢ Putting the charts that are line charts disclosing the value and volume of
the stock
35
3.7 OPERATIONAL DEFINITIONS OF CONCEPT;
FMCG Sector: Fast Moving Consumer Goods Sector is one that arrangements
with the merchandise that are basically utilized by the purchasers for day by day
reason and are short sturdy ones.
Moving Average: A progression of midpoints got from progressive sections

(normally of steady size and covering) of a progression of qualities.
Rate of Change: ROC is regularly utilized when talking about force, and it can
for the most part be communicated as a proportion between an adjustment in
one variable in respect to a relating change in another; graphically, the rate of
progress is spoken to by the incline of a line.
Relative Strength Index: The Relative Strength Index (RSI), created by J.

Welles Wilder, is a force oscillator that measures the speed and change of value
developments. The RSI wavers somewhere in the range of zero and 100.
Customarily the RSI is considered overbought when over 70 and oversold when
underneath 30.
Moving Average Convergence and Divergence: MACD, short to move normal

joining/difference, is an exchanging pointer utilized as a part of specialized
examination of stock costs, made by Gerald Appel in the late 1970s. It should
uncover changes in the quality, bearing, force, and length of a pattern in a stock's
cost.
Oscillators: The stochastic oscillator is a standout amongst the most perceived

energy pointers utilized as a part of specialized examination. The thought behind
this marker is that in an uptrend, the cost ought to close to the highs of the
exchanging range, flagging upward force in the security.
Trend: A general heading in which something is creating or evolving.
EMA: An exponential moving normal (EMA) is a kind of moving normal that is

like a basic moving normal, aside from that more weight is given to the most
36
recent information. It's otherwise called the exponentially weighted moving
normal.
Stock: The capital raised by an organization or partnership through the issue

and membership of offers.
Analysis: Detailed examination of the components or structure of something.
Opening Price: The opening cost is the cost at which a security first exchanges
upon the opening of a trade on a given exchanging day; for instance, the New
York Stock Exchange opens at correctly 9:30 a.m. Eastern. The cost of the
primary exchange for any recorded stock is its every day opening cost.
Closing Price: The end cost is the last cost at which a security is exchanged on
a given exchanging day.
DVR: Differential Voting Right (DVR) shares are same as conventional value
shares with the exception of these give less voting rights to the holder.
Subsequently they for the most part exchange at a markdown and may offer
higher profits for surrender of the voting rights.
PC's: (Personal Computer), A PC intended for use by one individual at any given
moment.
GDP: Gross residential item (GDP) is the financial estimation of all the completed
merchandise and enterprises delivered inside a nation's outskirts in a particular
era. Despite the fact that GDP is typically computed on a yearly premise, it can
be figured on a quarterly premise also. Gross domestic product incorporates all
private and open utilization, government costs, speculations and fares short
imports that happen inside a characterized an area. Put just, GDP is a wide
estimation of a country's general monetary action.
Derivatives: A course of action or item, (for example, a future, choice, or

warrant) whose esteem gets from and is subject to the estimation of a basic
resource, for example, a product, money, or security.
Debts: An aggregate of cash that is owed or due.

37
3.8 PLAN OF ANALYSIS
The Research for the present examination covers the arrangement of

investigation by following certain apparatuses for the investigation based on 1
year (2016), for example,
3.8.1.MOVING AVERAGE:
Moving normal is the technique to dissect information focuses by making

arrangement of normal of subsets of the full informational collections. It gives a
thought regarding in which way the cost is moving or in it demonstrates the
heading how the cost is moving. It knows whether the cost climbing, moving
down, sideways, or in likely range. Moving normal = (total of the end cost of n
period)/n period.
3.8.2. MACD (Moving Average Convergence and Divergence):
MACD is utilized to anticipate developments in the market. An examiner is by

and large in issue whether to utilize long haul moving normal or here and now
moving normal.
The answer for this predicament is to utilize MACD. MACD is the distinction
between here and now and long haul moving normal. The distinction helps in
recognizing, regardless of whether costs in the ongoing past have moved upward
or descending when contrasted with longer period development. With the
assistance of MACD line different signs can be produced.
MACD = Short period moving normal – Long term moving normal
38
Basic purchase and offer signs can be created with the assistance of MACD,
when MACD is in a positive zone it demonstrates purchasing as offer costs are
probably going to move upward later on one should purchase the offers. In
actuality, when MACD is in negative zone it demonstrated descending
development of the market sooner rather than later and one should offer the
offers.
PARAMETERS USED TO STUDY THE TRENDS
➢ Whenever the MACD line is over the zero-check line, it demonstrates the
flag of bullish market for the scrip.
➢ Whenever the MACD line is over the zero line, however declining it is
early cautioning sign of a bearish market.
➢ Whenever the MACD line is beneath the zero-check line, it demonstrates
the flag of bearish market.
➢ Whenever the MACD line is underneath the zero-check line however
raising then it demonstrates bullish market.
➢ Whenever MACD line shapes a crest at the best, it gives flags that the
market will before long turn bearish, i.e., it alludes overbought
circumstance.
3.8.3. RSI (Relative Strength Index)
The Relative Strength Index (RSI) is an exchanging pointer in the specialized

examination of money related markets. It is expected to show the present and
verifiable quality or shortcoming of a market in light of the end costs of finished
exchanging periods. It expects that the costs close higher in solid market periods,
39
and lower in weaker periods and processes this as a proportion of the quantity of
incrementally higher closes to the incrementally bring down closes.
This is a great pointer that signs purchasing and offering openings in front of the
market. RSI for an offer is figured by utilizing the accompanying equation.
RSI = 100 – [100/(1+RS)]
Where, RS = Average pick up every day/Average misfortune every day
The most ordinarily utilized day and age for the count of RSI is 14 days. For the
estimation a 14 days RSI, the pickup period every day or misfortune period every
day is touched base at by looking at the end cost of the day with that of earlier
day for a time of 14 days.
The increases/misfortunes are included by partitioned by 14 to acquire normal

pick up/misfortune every day. The normal pick up/misfortune every day is been
utilized as a part of the above expressed equation for computing RSI every day.
Along these lines’ RSI esteems can be computed from various number of days.
PARAMETERS USED TO IDENTIFY THE TRENDS
➢ When RSI crosses 50 stamp line. It recognizes a bullish market ahead for
the scrip.
➢ As soon as RSI crosses 70 check line it connotes the overbought
advertise. Presently it is normal that the pinnacle will be contacted.
➢ When RSI decays in the wake of contacting the pinnacle, it means the
bearish market ahead.
➢ When RSI crosses 50 check line from upward and ceaselessly decays,
however has not achieved the 30-stamp line, it connotes the bearish
market.
➢ When RSI is above 30-mark line and progressing towards 50 mark, it
signifies a bullish market.
40
BUYING SIGNALS
➢ When RSI value is more than 50 and moving upwards continuously, it

indicates that market is likely to move upwards.
➢ When RSI line is less than 50 and moving upwards continuously, it
indicates that the market has come out of the red and in the near future is
expected to have a northward (upward) movement.
➢ When RSI is moving downside below the 50 mark but pace of decline has
decreased, it indicates that market is likely to reach ‘oversold’ level and
after that it will start rising, an opportunist who can take the risk can buy at
this level.
SELLING SIGNALS
➢ When RSI line is increasing above 50 mark but the pace of increasing has
been declined, it indicates that market is about to reach the overbought
zone, after which it is likely to decline. One should take precaution or a
risk adverse investor can sell at this moment.
➢ When RSI line has made peak at around 70 level it is the identification of
overbought market, and market is likely to move southward (downward)
direction, one should sell.
➢ When RSI is more than 50 but declining, it indicates that the market will
enter the south zone, i.e. declining zone, and one should sell at this level.
3.8.4. RATE OF CHANGE (ROC):
In calculating ROC current day’s market price is divided by the price which is
prevailed a few days ago for shares. The value achieved so is identified as the
‘Rate of Change’ indicating whether the prices at present are moving upward or
downward as compared with the prices that prevailed a few days ago.
41
ROC is an indicator which helps in identifying overbought or oversold market with
the help of this buying and selling signals are generated much before the market
movement, generally 10 days (values). It is calculated on a rolling basis that is in
the eleventh day’s price is divided by the first day’s price and the twelfth day’s
prices and so on.
GENERATING SIGNALS WITH THE HELP OF ROC:
BUYING SIGNALS
➢ When ROC is more than one (ROC>1) and moving upward continuously,
it indicates that market is likely to move upwards.
➢ When ROC is less than one (ROC<1) and moving upward continuously, it
indicates that market has come out of the red and in the near future it is
expected to have a northward (upward) movement.
➢ When ROC is moving downside but the pace of decline has decreased, it
indicates that market is likely to reach oversold level and after that it will
start rising. An opportunist who can take a risk can buy at this level.
SELLING SIGNALS
➢ When ROC line is increasing but the pace of increase has declined, it
indicates that the market is about to reach the overbought zone, after
which it is likely to decline. One should take precaution or a risk adverse
investor can sell at this moment.
➢ When ROC line has made a peak, it is the identification of the overbought
market, and the market is likely to move towards southward (downward)
direction, one should sell.
➢ When ROC is more than one (ROC>1) but declining, it indicates that
market will enter in south zone, i.e. declining zone, and one should sell at
this level.
42
3.9 THE STOCKS SO SELECTED ARE AS FOLLOWS;
1. BRITANNIA INDUSTRY LTD

2. MARICO LTD
3. ITC LIMITED
4. NESTLE
5. HINDUSTAN UNILEVER
LIMITATIONS OF THE STUDY
The study is also having some limitations which restricts the study to some
extent.
PARAMETERS USED FOR IDENTIFYING THE TRENDS:
1. ROC is the peak, it signifies the overbought market.
2. When ROC is above one-mark line but declining, it signifies the bearish trend
in the markets for the scrip.
3. When ROC has reached at its bottom, it signifies the oversold market.
4. When ROC is below one (after reaching the bottom), it signifies the conversion
of selling pressure into buying pressure and it is the early signal of the bullish
market.
43
CHAPTER - 4
DATA ANALYSIS
44
DATA ANALYSIS AND INTERPRETATION
4.1 - TABLE NO. 1 -- BRITANIA
Date Open High Low Close Change Gain Loss RS Value RSI
31-08-2015 2900 3145 2765 3082
30-09-2015 3109.75 3326.45 3083.5 3231.9 149.9 149.9 0
31-10-2015 3223.7 3239 2829 2923.05 -308.85 -308.85 308.85
30-11-2015 2926.1 3013 2721.05 2966.3 43.25 43.25 0
31-12-2015 2962.4 3006 2588.75 2689.45 -276.85 -276.85 276.85
31-01-2016 2710 2953.35 2505.05 2756.25 66.8 66.8 0
29-02-2016 2756 2914.5 2519.05 2686.5 -69.75 -69.75 69.75
31-03-2016 2661.5 2918 2607.15 2862.6 176.1 176.1 0
30-04-2016 2856 3035.05 2610 2706.2 -156.4 -156.4 156.4
31-05-2016 2740 2822.3 2519.1 2758.95 52.75 52.75 0
30-06-2016 2753.75 2944.2 2751.55 2933.8 174.85 174.85 0
31-07-2016 2947.9 3499 2811.95 3460.55 526.75 526.75 0
31-08-2016 3466 3584.25 3199.7 3364 -96.55 -96.55 96.55
30-09-2016 3397.85 3522 3195 3311.95 -52.05 -52.05 52.05
31-10-2016 3315 3380 2781.2 3032.9 -279.05 -279.05 279.05 -0.0396 -4.1247
30-11-2016 3036.05 3082.8 2772.85 2886.3 -146.6 -146.6 146.6 -0.2493 -33.2148
31-12-2016 2901.1 3162 2830.45 3130.45 244.15 244.15 0 0.1925 16.1445
31-01-2017 3133.7 3296 3112.75 3229.4 98.95 98.95 0 0.2442 19.6292
28-02-2017 3232 3432.95 3045.3 3374 144.6 144.6 0 0.8553 46.0992
31-03-2017 3377 3639 3272.8 3624.55 250.55 250.55 0 1.0848 52.0345
30-04-2017 3624.55 3799.5 3371.5 3532.65 -91.9 -91.9 91.9 1.0287 50.7071
31-05-2017 3585 3714 3523 3690.05 157.4 157.4 0 1.006 50.1485
30-06-2017 3726 3956.6 3656.05 3921.6 231.55 231.55 0 1.8245 64.5957
31-07-2017 3919.8 4339.85 3830 4230.95 309.35 309.35 0 2.2097 68.8446
31-08-2017 4220 4409 4151 4344.25 113.3 113.3 0 2.1173 67.9211
30-09-2017 4344.25 4770 4302.3 4639.5 295.25 295.25 0 1.7698 63.8963
31-10-2017 4642 4926.6 4584.8 4815.6 176.1 176.1 0 2.5485 71.8187
30-11-2017 4841.05 4963.9 4598.4 4709.25 -106.35 -106.35 106.35 2.2396 69.1322
31-12-2017 4750 4786 4601 4684.15 -25.1 -25.1 25.1 4.4634 81.6965
31-01-2018 4684.25 5065.8 4400 4994.25 310.1 310.1 0 9.4379 90.4195
28-02-2018 4985 5004 4780 4970.6 -23.65 -23.65 23.65 7.45 88.1657
31-03-2018 4998 5536.45 4974.4 5513.2 542.6 542.6 0 9.2461 90.2402
30-04-2018 5513.2 6015.8 5301 5923.95 410.75 410.75 0 10.3237 91.1689
31-05-2018 5974 6257.95 5710.6 6213.75 289.8 289.8 0 10.4826 91.2912
30-06-2018 6227 6574.2 6170.15 6542.2 328.45 328.45 0 19.4039 95.099
31-07-2018 6580 6934.35 6170 6736.75 194.55 194.55 0 19.6434 95.1558
45
4.1.1 ANALYSIS OF PRICES OF BRITANNIA LTD BY MOVINGAVERAGE
METHOD.
The above table no. 1 figures which are computed by using Moving Average
Method, the values generated are been interpreted in the below line chart.
2 MOVING AVERAGE OF BRITANNIA
In the above chart you can see the major crossover in the month of February
2016 which indicates the BUY signal at the price of 2500 which rally to the price
to 3500 till the month of OCT 2016. The next major crossover in the month of the
JAN indicates the BUY signal at the price of 3000 which rallied till 6500 till the
mid of Aug 201. The current crossover indicates the SELL signal.
4.1.2 ANALYSIS OF PRICES OF BRITANNIA LTD BY RELATIVE STRENGTH

INDEX METHOD.
The above table no.1 figures which are computed by using Relative Strength
Index Method, the values generated are been interpreted in the below line chart.
46
RELATIVE STRENGTH INDEX OF BRITANNIA
The RSI indicator follows the 30:70 rule and it shows the stocks of BRITANIA
fluctuates between the support and resistance level of 20 major times during the
3 year. The stock touches resistance level 7 times and support level touches 13
times in the 3 year. The current RSI value is below30.
4.1.3 ANALYSIS OF PRICES OF BRITANNIA LTD BY RATE OF CHANGE

METHOD.
The above table no.1 figures which are computed by using Rate of Change
47
RATE OF CHANGE OF BRITANNIA INDUSTRY
Here if the ROC is below zero the price is falling and if the ROC is above zero
line the price is rising. The rising price indicates bullish market and the falling
price indicates bearish market. In the month of August 2016, the ROC reached
highest price indicates bullish markets which gives sell signal that means it has
over brought. In the month of November 2016, the ROC is below zero line its
shows bearish market indicating oversold situation gives signal to buy.
4.1.4 ANALYSIS OF PRICES OF BRITANNIA LTD BY MOVING AVERAGE

CONVERGENCE & DIVERGENCE METHOD.
The above table no.1 figures which are computed by using Moving Average
Convergence & Divergence Method, the values generated are been interpreted
in the below line chart.
48
MOVING AVERAGE CONVERGENCE AND DIVERGENENCE OF
BRITANNIA
It can be observed that the moving average lines (EMA-9 and EMA-24) had 12
crossovers during the past 3 year. The stock of BRITANIA was range bound for
the past 3 year between the prices of Rs.2500 to Rs. 7000.The major cross over
in the SEP15 shows the signal to sell till mid NOV15. The next major crossover in
the mid of AUG 2016 indicated the trend would turn bullish till the NOV 2016. The
divergence in next cross over at the AUG2018 was so prominent and clear which
indicates the sell signal till SEPT 2018. The MACD shows the sell signal in the
current scenario 2018.
49
4.2 - TABLE NO. 2 -- MARICO
Date Open High Low Close CHANGE GAIN LOSS RSVALUE RSI
31-08-2015 201.9 207.25 190.15 202.1
30-09-2015 204 204.5 190.575 193.6 -8.5 0 -8.5
31-10-2015 193.95 219 189.3 211.725 18.125 18.125 0
30-11-2015 212.675 234.3 208.825 226.15 14.425 14.425 0
31-12-2015 225.9 233.8 207.3 221.65 -4.5 0 -4.5
31-01-2016 225.9 246 215.6 236.75 15.1 15.1 0
29-02-2016 237 252.9 234.4 244.3 7.55 7.55 0
31-03-2016 244.55 263.5 240 259.1 14.8 14.8 0
30-04-2016 261.9 269.25 240.05 249.2 -9.9 0 -9.9
31-05-2016 250.1 266.5 247.25 263.6 14.4 14.4 0
30-06-2016 264.9 289.35 262.5 284.25 20.65 20.65 0
31-07-2016 286.55 306.9 278.75 291.5 7.25 7.25 0
31-08-2016 291.9 302.75 269.2 275.5 -16 0 -16
30-09-2016 277.5 289.9 272.6 281.95 6.45 6.45 0
31-10-2016 278.1 278.15 234.8 252.65 -29.3 0 -29.3 -1.7412 234.916
30-11-2016 252.65 261.6 238.05 250.35 -2.3 0 -2.3 -1.9153 209.2511
31-12-2016 260 264.5 252.65 257.25 6.9 6.9 0 -1.7343 236.189
31-01-2017 257.1 282.8 252.55 281.2 23.95 23.95 0 -1.8879 212.6249
28-02-2017 281 299.95 276.25 294.85 13.65 13.65 0 -2.273 178.5519
31-03-2017 296.45 325.3 293.05 315.2 20.35 20.35 0 -2.3643 173.2951
30-04-2017 315.2 328 301 314 -1.2 0 -1.2 -2.1874 184.2181
31-05-2017 313.75 326.05 304.5 314.35 0.35 0 0.35 -1.9469 205.6109
30-06-2017 314 335.9 312.8 334.7 20.35 20.35 0 -2.7647 156.6667
-
31-07-2017 334.7 337.85 309.7 315.45 -19.25 0 19.25 -1.7659 230.569
31-08-2017 315.9 348.7 307.4 310.75 -4.7 0 -4.7 -1.366 373.2076
30-09-2017 310.75 323.9 307.5 315.25 4.5 4.5 0 -1.328 404.8422
31-10-2017 317 318.2 288.25 306 -9.25 0 -9.25 -1.4646 315.246
30-11-2017 307 325.3 293.05 322.5 16.5 16.5 0 -1.6177 261.899
31-12-2017 322.5 328 304.4 309.4 -13.1 0 -13.1 -2.1476 187.1366
31-01-2018 307.75 319 284.15 308.15 -1.25 0 -1.25 -2.1942 183.7371
28-02-2018 308.25 333.8 299.55 326.05 17.9 17.9 0 -2.4215 170.3489
31-03-2018 327.25 334.35 313.2 332.55 6.5 6.5 0 -2.0609 194.2552
30-04-2018 332.55 347.8 304.55 321.85 -10.7 0 -10.7 -1.4569 318.8889
31-05-2018 323.5 352.9 319.8 331.65 9.8 9.8 0 -1.2783 459.2709
30-06-2018 331.65 374.75 330 364.1 32.45 32.45 0 -1.8653 215.5688
31-07-2018 365.5 387.85 345.3 369.45 5.35 5.35 0 -1.9459 205.7169
50
4.2.1 ANALYSIS OF PRICES OF MARICO BY MOVING AVERAGE METHOD.
2 MOVING AVERAGE OF MARICO
In the above chart you can see the major crossover in the month of Oct 2015
which indicates the BUY signal at the price of 210 which rally to the price to 300
till the month of Aug 2016. The next major crossover in the month end of the Dec
indicates the BUY signal at the price of 260 which rallied till 370 till the mid of
Aug 2018. The current crossover indicates the SELL signal.
4.2.2 ANALYSIS OF PRICES OF MARICO BY RELATIVE STRENGTH INDEX

METHOD.
51
RELATIVE STENGTH INDEX OF MARICO
The RSI indicator follows the 30:70 rule and it shows the stocks of MARICO
times in the 3 year. The current RSI value is above 30.
4.2.3 ANALYSIS OF PRICES OF MARICO BY RATE OF CHANGE METHOD.
52
RATE OF CHANGE INDEX FOR MARICO
price indicates bearish market. In the month of March 2018, the ROC reached
4.2.4 ANALYSIS OF PRICES OF MARICO BY MOVING AVERAGE

53
MOVING AVERAGE CONVERGENCE AND DIVERGENCE OF
MARICO
crossovers during the past 3 year. The stock of MARICO was range bound for
the past 3 year between the prices of Rs.180 to Rs. 380.The major cross over in
the DEC15 shows the signal to sell till mid JAN15. The next major crossover in
the mid of AUG 2016 indicated the trend would turn bullish till the NOV 2016. The
divergence in next cross over at the MARCH 2018 was so prominent and clear
which indicates the sell signal till MAY 2018. The MACD shows the sell signal in
the current scenario 2018.
54
4.3 TABLE NO. 3 -- NESTLE
Date Open High Low Close CHANGE GAIN LOSS RS RSI

VALUE
31-08-2015 5935 6398 5850 6367.65
30-09-2015 6364 6669.95 6105.15 6173.9 -193.75 0.00 193.75
31-10-2015 6160 6474 5850 5860.05 -313.85 0.00 313.85
30-11-2015 5858.9 5950 5630 5828 -32.05 0.00 32.05
31-12-2015 5820.05 5850 5375 5488 -340 0.00 340.00
31-01-2016 5575 5575 4981 5008 -480 0.00 480.00

29-02-2016 5050 5849 5000.55 5757.35 749.35 749.35 0.00
31-03-2016 5690 6246.75 5558.05 5725.45 -31.9 0.00 31.90
30-04-2016 5739.95 6359 5482.05 6097.35 371.9 371.90 0.00
31-05-2016 6116 6705 6109.05 6492.35 395 395.00 0.00
30-06-2016 6514.9 7369 6390 7188.35 696 696.00 0.00
31-07-2016 7172 7215.15 6470 6525.55 -662.8 0.00 662.80

31-08-2016 6525 6625 6200 6432.85 -92.7 0.00 92.70
30-09-2016 6432.9 7000 6432.9 6985.75 552.9 552.90 0.00
31-10-2016 6925 6960.75 5656.05 6289.7 -696.05 0.00 696.05 0.97 49.31
30-11-2016 6243 6392.7 5746 6028.35 -261.35 0.00 261.35 0.95 48.72
31-12-2016 6030 6081.05 5828 5851.85 -176.5 0.00 176.50 1 49.93

31-01-2017 5898 6450 5834.75 6254.25 402.4 402.40 0.00 1.16 53.61
28-02-2017 6235.15 6720 6089 6680.65 426.4 426.40 0.00 1.5 59.95
31-03-2017 6612.05 6785.9 6267.75 6697.75 17.1 17.10 0.00 1.88 65.27
30-04-2017 6697.75 7000 6450 6645.1 -52.65 0.00 52.65 1.45 59.18
31-05-2017 6642 6850 6530 6736.8 91.7 91.70 0.00 1.52 60.33
30-06-2017 6746.5 6989 6674.95 6767.15 30.35 30.35 0.00 1.34 57.35
31-07-2017 6732 7140 6532 7121.25 354.1 354.10 0.00 1.32 56.97
31-08-2017 7100 7410 6851.1 7216.5 95.25 95.25 0.00 1.01 50.36
30-09-2017 7216.5 7483 7110.05 7239 22.5 22.50 0.00 1.56 60.9
31-10-2017 7264 7974.15 7160 7663.5 424.5 424.50 0.00 2.04 67.07
30-11-2017 7659.95 8039.05 7630.05 7870.9 207.4 207.40 0.00 1.75 63.58
31-12-2017 7900 7968.85 7405.05 7469.15 -401.75 0.00 401.75 2.32 69.9
55
31-01-2018 7499 7874 6887.25 7761.65 292.5 292.50 0.00 3.75 78.94
28-02-2018 7777 8250 7566 8203.55 441.9 441.90 0.00 6.18 86.06
31-03-2018 8199.85 9448 8169.95 9396.55 1193 1193.00 0.00 7.92 88.78
30-04-2018 9396.55 9889.95 8934.65 9654 257.45 257.45 0.00 7.54 88.3
31-05-2018 9669 10198 9490 9810.1 156.1 156.10 0.00 7.85 88.7
30-06-2018 9890 10580 9727.65 10530.4 720.3 720.30 0.00 10.67 91.43
31-07-2018 10600 11705 10210 11582.2 1051.8 1051.80 0.00 13.06 92.89
4.3.1 ANALYSIS OF PRICES OF NESTLE BY MOVING AVERAGE METHOD.
2 MOVING AVERAGE OF NESTLE
In the above chart you can see the major crossover in the mid of Oct 201 which
indicates the sell signal at the price of 6400 which rally to the price to 5400 till the
end of March 2016 and later it started to indicate buy signal.
56
The next major crossover in the month of the JAN 2018 mid indicates the BUY
signal at the price of 7400 which rallied till 10,900 till the mid of Aug 2018. The
current crossover indicates the SELL signal.
4.3.2 ANALYSIS OF PRICES OF NESTLE BY RELATIVE STRENGTH INDEX

METHOD.
RELATIVE STRENGTH INDEX OF NESTLE
The RSI indicator follows the 30:70 rule and it shows the stocks of NESTLE
57
4.3.3 ANALYSIS OF PRICES OF NESTLE BY RATE OF CHANGE METHOD.
RATE OF CHANGE INDEX OF NESTLE
price indicates bearish market. In the month of August 2016, the ROC reached
58
4.3.4 ANALYSIS OF PRICES OF NESTLE BY MOVING AVERAGE
MOVING AVERAGE CONVERGENCE AND DIVERGENCE OF

NESTLE
crossovers during the past 3 year. The stock of NESTLE was range bound for
the past 3 year between the prices of Rs.6000 to Rs. 11275.The major cross
over in the AUG16 shows the signal to sell till mid-MARCH 16. The next major
crossover in the mid of OCT 2016 indicated the trend would turn bullish till the
NOV 2016. The divergence in next cross over at the DEC 2017 was so
prominent and clear which indicates the sell signal till FEB 2018. The MACD
shows the sell signal in the current scenario 2018.
59
4.4 - TABLE NO. 4 -- ITC
Date Open High Low Close CHANGE GAIN LOSS RSVALUE RSI
31-08-
2015 215 219.9 204.667 219.2
30-09-
2015 218.033 239.867 217.867 223.1 3.9 3.9 0
31-10-
2015 222 235.333 218.067 230.767 7.667 7.667 0
30-11-
2015 230.133 233.167 207.033 218.533 -12.234 0 12.234
31-12-
2015 218.4 219.333 201.733 213.467 -5.066 0 5.066
31-01-
2016 212.433 217.3 178.667 197.1 -16.367 0 16.367
29-02-
2016 203.333 224.133 203.333 218.833 21.733 21.733 0
31-03-
2016 217.4 225.567 208.333 216.633 -2.2 0 2.2
30-04-
2016 215.5 242.667 204 234.033 17.4 17.4 0
31-05-
2016 235.333 247.8 230.433 245.6 11.567 11.567 0
30-06-
2016 243.3 259.75 242.2 252.45 6.85 6.85 0
31-07-
2016 252 262 245.8 260.05 7.6 7.6 0
31-08-
2016 261 265.9 240.5 241.35 -18.7 0 18.7
30-09-
2016 244.2 246.55 233.5 243.1 1.75 1.75 0
31-10-
2016 242.8 259.65 222.1 232.5 -10.6 0 10.6 1.2041 54.6298
30-11-
2016 232.8 242.4 222 241.65 9.15 9.15 0 1.2847 56.2297
31-12-
2016 242 266.95 238.6 258.1 16.45 16.45 0 1.4194 58.668
31-01-
2017 260 292.15 257.85 262.2 4.1 4.1 0 1.8249 64.6011
28-02-
2017 262.4 288.9 258.15 280.3 18.1 18.1 0 2.3962 70.5555
31-03-
2017 282.8 292.9 270.9 278 -2.3 0 2.3 3.3935 77.2391
30-04-
2017 278 319.85 271 311.8 33.8 33.8 0 3.7505 78.9496
31-05-
2017 312 324.7 299.15 323.65 11.85 11.85 0 4.3866 81.4355
30-06-
2017 346 354.8 276.4 285.25 -38.4 0 38.4 1.7317 63.3924
31-07-
2017 285.3 289.9 270.1 282.25 -3 0 3 1.5021 60.0329
31-08-
2017 282.2 284.35 256.8 258.3 -23.95 0 23.95 1.0603 51.4643
30-09-
2017 258.3 276 258.3 265.7 7.4 7.4 0 1.0583 51.4157
31-10-
2017 267 271.2 250.4 256.05 -9.65 0 9.65 1.1672 53.8583
30-11-
2017 256.95 267.5 250 263.25 7.2 7.2 0 1.2292 55.1416
31-12-
2017 263.25 283.3 259.55 271.4 8.15 8.15 0 1.5032 60.0517
60
31-01-
2018 272 290.3 262.15 265.05 -6.35 0 6.35 1.2797 56.1353
28-02-
2018 264.2 272 252.5 255.5 -9.55 0 9.55 0.9721 49.2927
31-03-
2018 257 283.85 255.45 281.45 25.95 25.95 0 1.2065 54.6803
30-04-
2018 281.45 289.7 268.75 271.65 -9.8 0 9.8 0.916 47.8085
31-05-
2018 271.15 274.6 259 266.2 -5.45 0 5.45 0.8888 47.0574
30-06-
2018 267 307.15 260.05 297.7 31.5 31.5 0 0.8672 46.443
31-07-
2018 298.05 322.6 296.1 319.85 22.15 22.15 0 0.9642 49.0887
4.4.1 ANALYSIS OF PRICES OF ITC LTD BY MOVING AVERAGE METHOD
The above figures which are computed by using Moving Average Method, the
values generated are been interpreted in the below line chart.
61
2 MOVING AVEARGE OF ITC LTD
Here in the below chart horizontal axis how date and vertical axis shows the price
and the blue line inside the chart represents moving average.
Here, in the above chart you can see the major crossover in the month of March
2016 which indicates the BUY signal at the price of 210 which rally to the price to
250 till the month of September 2016. The next major crossover in the month of
the JAN indicates the BUY signal at the price of 230 which rallied till 330 till the
mid of July 2017. The current crossover indicates the SELL signal.
4.4.2 ANALYSIS OF PRICES OF ITC LTD BY RELATIVE STRENGTH INDEX

METHOD.
The above tableno.4 figures which are computed by using Relative Strength
62
RELATIVE STRENGTH INDEX OF ITC
In the following chart horizontal axis shows date, vertical axis shows price and
red line indicates RSI and blue line represents Relative Strength.
The RSI indicator follows the 30:70 rule and it shows the stocks of ITC fluctuates
between the support and resistance level of 12 major times during the 3 year.
The stock touches resistance level 5 times and support level touches 7 times in
the 3 year. The current RSI value is above 30.
4.4.3 ANALYSIS OF PRICES OF ITC LTD BY RATE OF CHANGE METHOD.
63
RATE OF CHANGE INDEX FOR ITC LTD
price indicates bearish market. In the month of March 2016, the ROC reached
4.4.4 ANALYSIS OF PRICES OF ITC LTD BY MOVING AVERAGE

The above figures which are computed by using Moving Average Convergence &
Divergence Method, the values generated are been interpreted in the below line
chart.
64
MOVING AVERAGE CONVERGENCE AND DIVERGENCE FOR ITC LTD
crossovers during the past 3 year. The stock of ITC was range bound for the past
3 year between the prices of Rs.180 to Rs.360.The major cross over in the
SEP15 shows the signal to sell till mid OCT15. The next major crossover in the
month of MAY 2017 indicated the trend would turn bullish till the JUNE 2017. The
divergence in next cross over at the JULY 2017 was so prominent and clear
which indicates the sell signal till AUG 2017. The MACD shows the sell signal in
the current scenario 2018.
65
4.5 – TABLE 05 -- HINDHUSTAN UNILEVER
Date Open High Low Close change gain loss RS Value RSI
31-08-2015 855 862.4 776.25 814.75
30-09-2015 817.8 832 769 785 -29.75 0 29.75
31-10-2015 799.25 826 780.1 812 27 27 0
30-11-2015 811.85 875.6 805 862.75 50.75 50.75 0
31-12-2015 860 868.7 766.4 816.9 -45.85 0 45.85
31-01-2016 816 866 789.75 830.4 13.5 13.5 0
29-02-2016 829.85 883 818.1 869.5 39.1 39.1 0
31-03-2016 867.1 906.9 845.1 867.9 -1.6 0 1.6
30-04-2016 867 869.7 806.15 848.2 -19.7 0 19.7
31-05-2016 852.15 908 835 898.55 50.35 50.35 0
30-06-2016 898.6 951.45 886.1 922.55 24 24 0
31-07-2016 930 947 900 917.05 -5.5 0 5.5
31-08-2016 917.1 954 865 867.85 -49.2 0 49.2
30-09-2016 878 889.7 818.4 836.5 -31.35 0 31.35
31-10-2016 835 866.4 783.25 844 7.5 7.5 0 1.1599 53.7011
30-11-2016 844 855.7 781.95 826.35 -17.65 0 17.65 1.242 55.3975
31-12-2016 828 875.95 816.55 855.4 29.05 29.05 0 1.254 55.6349
31-01-2017 857 872 837.5 865.9 10.5 10.5 0 1.0184 50.4567
28-02-2017 868.4 923.8 862.2 911.75 45.85 45.85 0 1.7588 63.7524
31-03-2017 914 951 898.55 934.95 23.2 23.2 0 1.8364 64.744
30-04-2017 934.95 1077 922.6 1067 132.05 132.05 0 2.58 72.067
31-05-2017 1067 1129 1046.1 1079.6 12.6 12.6 0 2.7156 73.0861
30-06-2017 1093 1195.05 1081.1 1155.75 76.15 76.15 0 3.9658 79.8621
31-07-2017 1154 1222.8 1143.55 1219.75 64 64 0 4.0974 80.3821
31-08-2017 1216.25 1287.6 1169 1173.9 -45.85 0 45.85 2.6807 72.8313
30-09-2017 1173.9 1288.65 1171 1237.45 63.55 63.55 0 3.2242 76.327
31-10-2017 1238.7 1315 1226.35 1272.45 35 35 0 5.2657 84.04
30-11-2017 1272.45 1382.8 1241.2 1367.85 95.4 95.4 0 9.3677 90.3547
31-12-2017 1367 1410 1328.55 1369.35 1.5 1.5 0 9.2732 90.266
31-01-2018 1373 1384.8 1299 1317.75 -51.6 0 51.6 6.0426 85.8007
28-02-2018 1320 1340 1281.1 1333.35 15.6 15.6 0 5.9046 85.5168
31-03-2018 1315 1513.55 1315 1508.9 175.55 175.55 0 7.5983 88.3697
30-04-2018 1508.9 1619.4 1441.6 1611.45 102.55 102.55 0 8.1801 89.1069
31-05-2018 1613 1656.65 1547.05 1641.15 29.7 29.7 0 8.2468 89.1854
30-06-2018 1640.9 1780 1625.05 1731.65 90.5 90.5 0 7.8204 88.6627
31-07-2018 1732.95 1808.65 1715.05 1780.1 48.45 48.45 0 8.1883 89.1166
66
4.5.1 ANALYSIS OF PRICES OF HINDUSTAN UNILEVER INDUSTRY BY
MOVING AVERAGE METHOD.
The above figures which are computed by using Moving Average Method, the
values generated are been interpreted in the below line chart.
2 MOVING AVERAGE OF HINDUSTAN UNILEVER INDUSTRY
In the above chart you can see some major crossover in the mid of Dec 2016
which indicates the BUY signal at the price of 850 which rally to the price to 1425
till the mid of Jan 2018. The next major crossover in the month of the April 2018
indicates the BUY signal at the price of 1300 which rallied till 1725 till the mid of
Aug 201. The current crossover indicates the SELL signal.
67
4.5.2 ANALYSIS OF PRICES OF HINDUSTHAN UNILEVER BY RELATIVE
STRENGTH INDEX METHOD.
RELATIVE STRENGTH INDEX OF HINDUSTAN UNILEVER INDUSTRIES
The RSI indicator follows the 30:70 rule and it shows the stocks of HUL
4.5.3 ANALYSIS OF PRICES OF HINDUSTAN UNILEVER LTD BY RATE OF

CHANGE METHOD.
68
RATE OF CHANGE INDEX OF HINDUSTAN UNILEVER INDUSTRY
Here in the above chart the prize above zero line means price increasing and
price below zero line means price is decreasing.
4.5.4 ANALYSIS OF PRICES OF HINDUSTAN UNILEVER LTD BY MOVING

AVERAGE CONVERGENCE & DIVERGENCE METHOD.
The above table no. figures which are computed by using Moving Average
69
MOVING AVERAGE CONVERGENCE AND DIVERGENCE
OFHINDUSTAN UNILEVER
crossovers during the past 3 year. The stock of sun pharma was range bound for
the past 3 year between the prices of Rs.800 to Rs.1800.The major cross over in
the SEPT15 shows the signal to sell till mid DEC15. The next major crossover in
the mid of JAN 2016 indicated the trend would turn bullish till the FEB 2016. The
divergence in next cross over at the MARCH 2018 was so prominent and clear
which indicates the sell signal till the mid of august 2018. The MACD shows the
sell signal in the current scenario 2018.
70
CHAPTER - 5
FINDINGS
71
FINDINGS
For the study purpose I have selected 4 companies from FMCG sector even
though all companies belong to the same industry we can compare their
performance of each company, where investor always wants to compare
between the companies before trading. Some of them are stated as below;
1. There are different methods we can use for technical analysis and each
method will have its own uniqueness in giving the result so even though the data
use for all the methods is same they will provide some unique results and
interpretation. Selecting the method for calculation is depends on the preference
of investor and his trading style.
2. Every method has its own pros and cons so every method will give different
kind of interpretation.
3. Line chart has been used for this study because it can be understood by
everybody and instead of get into dilemma by using difficult and different
methods it’s better to stick to one chart type which is easy to understand and
interpret.
4. And we should learn to understand and interpret the signals in that chart
properly.
5. The analysis satisfies both the individual investor and the company side by
side.
6. It helps in taking major decisions on buying or selling by factoring internal &

external forces.
7. Interpretation, designing is purely based on the past price movements and with
those findings future trend is been anticipated.
8. Suggests investor to buy or sell immediately in a future period that could

sometimes benefit him and sometimes do not.
72
CHAPTER - 6
CONCLUSION AND
RECOMMENDATIONS
73
6.1 CONCLUSION: -
As we all in all understand that particular examination is so basic to analyses or

check the future expense and it in like manner helps in hypothesis decision. In
the wake of focus the four procedures which associated for 4 associations of
FMCG section , we came to understand that particular system will give assorted
explanation like in moving typical when the esteem accomplishes high it is the
offer banner, when it accomplishes cut down esteem it the buy signal anyway in
RSI when esteem tends to fall it is the offer banner and remembering that
esteem rising it is the banner to buy, like wise in MACD when the transitory EMA
line crosses above long-term EMA which accomplishes surprising expense in
bullish market it is the banner to offer and the a different way.
Choosing outcomes of the similar organizations with different yield planned to

comfort tendencies of unmistakably scattered money related pros for better
future decisions for reducing danger for some level and giving liquidity on fiscal
gain.
If both major and concentrated examination uses together it will give more
appropriate result notwithstanding the way that it won't give 100% result anyway
it gives generally perfect answers. As the assorted systems gives different kinds
of result and unmistakable understanding money related pro should think about
how to interpret the result, diagram and outline or else it will give false
declaration.
It isn't that these techniques will give adjust suggestion to buy or offer the stocks
it gives advised about the future examples that is its essential authority will
depend upon the money related pro.
74
There is package of systems to do particular examination anyway the monetary
authority pick versatile procedure and should settle with that particular method or
else he will get mix up for the examination. If particular examination use
improperly it will give false banner for obtaining or offering, so fitting and right
information should be use with any procedure money related pro approves of to
gain appealing results.
All scholars and operators use this particular examination with the essential
examination to anticipate the future examples or future esteem, volume of the
stocks. Notwithstanding the way that the esteem changes routinely and difficult to
measure redress design in any occasion we can know unpleasant result and plan
for the future situation.
75
6.2 RECOMMENDATIONS
Technical analysis takes vital role in making regarding the stocks, in the stock
market. It is also easy to get the required information or data which we use in
technical analysis.
➢ The investor should beware of marketing terms so it is easy to analyses

and earn profit.
➢ If the investor is new entry for the stock market he should carefully study
the past performance, charts, graphs of the stocks.
➢ Investor should have knowledge regarding methods that use commonly
for technical analysis.
➢ Investor should know how to analyze the charts and graphs because
interpretation is different for different methods.
➢ Different analysis represents different output that is been tailored to satisfy
different class of clients or investors.
➢ Typical Technical Analysis couldn’t establish the exact accurate results as
the analysis is based on past performance of the price and moreover
predictions.
➢ The report suggests the buying and selling signals or behavior in order to
guide an investor whether could be existing or new entrants to ease the
decisions on making various investments.
➢ As the study itself suggests that investor gets an insight of future trading
meanwhile the ratio of the risk is highly associated with the return.
➢ In current scenario the analysis is benefitting most of the speculators,
brokers and investors to be aware of price movements.
➢ Line charts are specifically used in order to get a clear picture of the price
fluctuations as in the current market the same is been used.
76
➢ Investor who is considering trend analysis should keep in mind that the
data presented in order to get the price movement could even be from
false sources in order to get people buying stocks.
➢ Only provides some tentative outcome from the calculations made by
different oscillators as per the investment made or the preference of the
client.
➢ Technical analysis is very common in order to get the price moments and
make anyone understand the fluctuating situations using aids like charts,
graphs, etc.
➢ The main function of the analysis is to suggest the investor the right time
to buy or sell the securities that could avoid a huge amount of risk taken
without analysis.
➢ The oscillators or tools used in this study are very common and easily
understandable in nature, just to show that the analysis output for the
same companies differs from one another.
➢ Technical Analysis doesn’t describe the exact future situation as it is all
based on anticipation and past price performance for some period.
➢ Accuracy of the analysis depends on the accuracy of the data to interpret
the chart.
77
CHAPTER - 7
BIBLIOGRAPHY
78
7.1 BIBLIOGRAPHY
www.lkpsec.com/Static/aboutus.aspx
www.moneycontrol.com/stocksmareketsindia
www.nseindia.com
www.venturaindia.com
www.investing.com
www.sunness.in
79

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A STUDY ONTHE TECHNICAL ANALYSIS ON

EQUITY TRADING IN FMCG STOCK MARKET

Research Report submitted to Bharathidasan University in partial fulfillment of

Masters of Business Administration

under the guidance of

I hereby declare that the research entitled “STUDY OF

fulfillment of the requirements for the award of MBA, is

October, 2018 PAVAN HC

I certify that this research entitled “STUDY OF THE

fulfillment of the requirements for the award of MBA, is a

Bengaluru Prof. Padmanabhan VB

October, 2018 Research Mentor

I offer my heartfelt thanks to Prof Padmanabhan V B, Dept. of Master of

Finally, we acknowledge the help of various persons in the office as well as

In my internship period I learnt the basics of stock trading, Mutual fund,

1.1 Industry overview

1.2 History of industry

1.3 Stock Exchange

1.4 About FMCG Industry

1.5 Dow Theory

1.5.1 Primary Trend

1.5.2 Secondary Trend

1.5.3 Minor Trend

Chapter II Company Profile 18

2.2 Vision and Mission

2.3 Quality Policy

2.4 Products and Services

2.4.2 The Derivative

2.4.3 Other Benefits

2.4.4 Initial Public Offering

2.4.6 Government Securities

2.4.7 Corporate Bonds

2.5 Competitors Information

2.6 Growth and Prospectus

2.7 SWOT Analysis

Chapter III Research Methodology 33

3.1 Title of the Internship

3.2 Objectives of the study

3.4 Methods of data collection

3.4.1 Secondary sources

3.5 Scope of the study

3.6 Steps used in methodology

3.7 Operational concept

3.8 Plan of analysis

3.8.1 Moving Average

3.8.2 Moving Average Convergence and

3.8.3 Relative Strength Index

3.8.4 Rate Of Change

3.9 Limitations of the study

4.5 Hindustan Unilever Limited

Chapter VI Conclusions & Recommendations 73

Sl. Table Page

5 4.5 Hindustan Unilever Limited 66

Sl. Graph Page

1 1.5. A Dow Theory – Uptrend 11

2 1.5 B Dow Theory – Downtrend 12

3 1.5.1 Primary Trend 13

4 1.5.2 Secondary Trend 14

5 1.5.3 Minor Trend 15

6 4.1 Britannia 46-49

7 4.2 Marico 51-54

8 4.3 Nestle 56-59

9 4.4 ITC 61-64