A

Project Report

On

“A STUDY OF TECHNICAL ANALYSIS ON EQUITY MARKET’’

For

“Angel Broking Private Limited’’

Submitted By

Vrishabh Rajendra Katariya

[MBA – FINANCE]

Under the Guidance of,

Dr. Rajesh Raut

Submitted To

Savitribai Phule Pune University

In the partial fulfillment of the requirements for the award of

Master of Business Administration (MBA)

Through
Progressive Education Society’s
Modern Institute of Business Management

BATCH 2018-20
 DECLARATION

I Vrishabh Rajendra Katariya, of MBA-II: Seat No. hereby declare that the project
work titled “A STUDY OF TECHNICAL ANALYSIS ON EQUITY MARKET’’ which
has been submitted to University of Pune, is an original work of the undersigned and has not
been reproduced from any other source. I further declare that the material obtained from other
sources has been duly acknowledged in the report.

Date: Signature:

Place: Name:
COMPANY PROFILE

About Angel Broking Pvt. Limited:

Angel Broking is an Indian stockbrokerage firm established in 1987. The company is a
member of the Bombay Stock Exchange (BSE), National Stock Exchange of
India (NSE), National Commodity & Derivatives Exchange Limited (NCDEX) and Multi
Commodity Exchange of India Limited (MCX).Our Company is one of the largest independent
full-service retail broking houses in India in terms of active clients on NSE as of July 31, 2018.
We are a technology-led financial services company, that provides broking and advisory
services, margin funding, loans against shares (through one of our Subsidiary, Angel Fincap
Private Limited), and financial products distribution to our clients under the brand "Angel
Broking". Our broking services are offered through (i) our online and digital platforms and (ii)
our network of more than 11,000 sub-brokers, as of June 30, 2018. We have more than 850,000
downloads of our Angel Broking mobile app and more than 450,000 downloads of Angel BEE
app, which enables our clients to avail our services digitally. Through our network of sub-
brokers and over 110 branches, we have a pan-India presence in over 1,800 cities and towns as
of June 30, 2018. As of June 30, 2018, our Company managed Rs. 113.02 billion in client
assets and over 1.11 million active broking accounts.

Angel Broking Limited (formerly known as Angel Broking Private Limited) is a member of
the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Metropolitan Stock
Exchange of India (MSEI), NCDEX & MCX. Angel Broking Limited (formerly known as
Angel Broking Private Limited) is also registered as a Depository Participant with CDSL

We believe that our experience of over two decades has helped us to integrate our knowledge
and expertise in the broking industry with the technology we provide to our retail clients
through various platforms. We have enhanced client engagement and experience through
application of technology to all our services, including the launch of our mobile application for
broking services in the year 2011, KYC authentication and complete client on-boarding
through the electronic and digital medium in the year 2015 and 2016, respectively.
KEY PERSONS OF ANGEL BROKING PVT. LIMITED

Sr. No. Key Persons Designation

1 Dinesh Thakkar CHAIRMAN & MANAGING

DIRECTOR
2 Vinay Agrawal CHIEF EXECUTIVE OFFICER

3 Naheed Rehan Patel COMPANY SECRETARY

4 Ketan Shah DIRECTOR

STRENGTHS

 One of the largest independent full-service retail broking houses in terms of number of
clients on NSE with strong brand equity
 Ensuring client satisfaction through the implementation of advanced technology and
digitisation.
 Strong client base through our online and digital platform and sub-broker network
 Significant market share in the cash and commodity segment
 Track record of continuous growth and strong financial performance.
 Proven and experienced management team and execution strength

VISION

To provide best value for money to investors through innovative products, investment
strategies, advanced technology, and personalized service.

MOTTO

To have complete harmony between quality in process and continuous improvement to deliver
exceptional service that will benefit our clients.
PRODUCTS

Angel Broking offers products such as Angel Eye, Angel BEE mutual fund app, Angel
SpeedPro, Angel Trade and Angel Swift for online trading. Angel Eye is a browser trading
application; SpeedPro is a trading platform application Angel Trade offers an online trading
platform for share investors, while Swift consists of a trading app for small devices.

Angel broking app has been incorporated with a machine learning technology called ARQ, that
keys in up to a billion data points and uses advanced nature-based algorithms, quantitative
analysis and the Nobel-prize winning Modern Portfolio Theory to enable personalized
investment advice to help users get better returns on their investments. ARQ is based on a
model whose performance has been optimized to provide recommendations with high
outperformance and strike rates. The model has been tested using scientific back-testing and
has also been validated based on its track record.

AWARDS

 2009 - 'Broking House with Largest Distribution Network' Award and 'Best Retail Broking
House' Award at BSE IPF-D&B Equity Broking Awards.
 2012 - BSE IPF-D&B Equity Broking Award for ‘Best Retail Broking House
 2012-13 - Among BSE Top 10 Performers in Equity Segment (Retail Trading) FY 2012-
13
 2013 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest Distribution
Network’
 2013 - BSE-IPF D&B Equity Broking Award for 'Best Retail Equity Broking House
 2013-14 - Awarded ‘Top Three Clients Traded Members in Equity’ by the BSE
 2014 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest Distribution
Network’
 2014 - Global Marketing Excellence Award for 'Best Mobile trading application'
 2017 - MCX Commodity broker of the year award
DATA ANALYSIS AND INTERPRETATION
RSI INDICATOR =

The relative strength index (RSI ). Is momentum indicator that measures the magnitude
of recent price changes to evaluate overbought or oversold conditions in the price of a
stock.THE RSI is displayed as an oscillator and can have a reading from 0 to 100…

RSI is indicator is useful for indicating trend in the stock prices.

When level goes to below 20 then it’s considered as oversold situation where as level80 or
above is overbought zone .That levels is important for trading perspective.

Bollinger Bonds –

It is the different strategy when it comes to using this strategy.in this Two levels are made and
from that stock prices expand or move to any side whether it’s upside or downside .It is useful
for indicating trend in the stock prices.

E.g..

VWAP
VWAP is very important indicator amongst traders .VWAP is widely used in day trading
and short term tradings. VWAP Is volume weighted average price. VWAP Provides valuable
information to buy and hold traders,especially post execution.

E.g
VIX

VIX IS the not comes under actually as technical indicator but it is term which is useful for
trading.VIX Is the volatility index which shows how much volatility is in the market at current
juncture. So while trading it is important to look at this point for further trading or near term
investing. VIXabove 16-17 is considered as high volatility market where as VIX below 14
considered as low volatility in the market. It’s only relative for reference while trading.

E.g

In the technical analysis main part is candlestick charts.

Candlestick chart is originates from Japan .it is first used in japan while their rice traders used
this technique for future prices prediction.Candlestick is popular method in the market
participants for intraday, short term ,long term market investing..
In the candlestick pattern there are many different patterns we look few of them for our
understanding.

The marubozu –
The word marubozu means bald in nature.there are two types of marubozu -the bullish
marubozu and the bearish marubozu.The red candle represents the bearish marubozu and the
blue represents the bullish marubozu.
Bullish Marubozu
Open =low and High = close, a bullish marubozu is formed.
A bullish marubozu indicates that there is so much buying interest in the stock that the market
participants were willing to buy the stock.

Bearish marubozu. - It indicates extreme bearishness. Open = High and Close =low…
A bearish marubozu indicates that there is so much selling pressure in the stock that the
market participants actually sold at every price point during the day..

The bullish Engulfing pattern

It is a two candlestick pattern which appears at the bottom of the down trend .a bullish
pattern which prompts the trader to go long.The two day bullish engulfing pattern which
prompts the trader to go long.

Marubozu means “Bald” in Japanese. We will understand the context of the terminology soon.
There are two types of marubozu – the bullish marubozu and the bearish marubozu.

Before we proceed, let us lay down the three important rules pertaining to candlesticks. We
looked at it in the previous chapter; I’ve reproduced the same for quick reference:

Buy strength and sell weakness

Be flexible with patterns (verify and quantify)
Look for prior trend
Marubozu is probably the only candlestick pattern which violates rule number 3 i.e look for
prior trend. A Marubozu can appear anywhere in the chart irrespective of the prior trend, the
trading implication remains the same.
text book defines Marubozu as a candlestick with no upper and lower shadow (therefore
appearing bald). A Marubozu has just the real body as shown below. However there are
exceptions to this. We will look into these exceptions shortly.
The red candle represents the bearish marubozu and the blue represents the bullish marubozu.

absence of the upper and lower shadow in a bullish marubozu implies that the low is equal to
the open and the high is equal to the close. Hence whenever the, Open = Low and High =
close, a bullish marubozu is formed.

A bullish marubozu indicates that there is so much buying interest in the stock that the market
participants were willing to buy the stock at every price point during the day, so much so that
the stock closed near its high point for the day. It does not matter what the prior trend has
been, the action on the marubozu day suggests that the sentiment has changed and the stock in
now bullish.

The expectation is that with this sudden change in sentiment there is a surge of bullishness and
this bullish sentiment will continue over the next few trading sessions. Hence a trader should
look at buying opportunities with the occurrence of a bullish marubozu. The buy price should
be around the closing price of the marubozu.
In the chart above (ACC Limited), the encircled candle is a bullish marubozu. Notice the bullish
marubozu candle does not have a visible upper and a lower shadow. The OHLC data for the
candle is: Open = 971.8, High = 1030.2, Low = 970.1, Close = 1028.

4 – The Dojis
The Doji’s are very similar to the spinning tops, except that it does not have a real body at all.
This means the open and close prices are equal. Doji’s provide crucial information about the
market sentiments and is an important candlestick pattern.

The classic definition of a doji suggests that the open price should be equal to the close price
with virtually a non existant real body. The upper and lower wicks can be of any length.

Obviously the color of the candle does not matter in case of a wafer thin real body. What
matters is the fact that the open and close prices were very close to each other.

The Dojis have similar implications as the spinning top. Whatever we learnt for spinning tops
applies to Dojis as well. In fact more often than not, the dojis and spinning tops appear in a
cluster indicating indecision in the market.
Technical analysis is depend upon how one use it .it is not 100% accuracy.but it gives most of
the times right direction for trading.For the trading in the derivatives market or equity market it
is important to follow proper technical analysis for the profits making.