CHAPTER-1 INTRODUCTION 1.

1 INTRODUCTION TO THE STUDY

Technical Analysis is the study of forecast future market activity. It is the study of market data such as historical and current price data and volume in an effort to forecast the future market activity. Historical price data is the most commonly used available data that is implemented into the analysis. Technical Analysis is a big deal it involves individuals own skill of interpretation. Technical Analysis knowledge one can really reduce their risk and make their investment decision more profitable one. Technical Analysis is not important to trade, but it is important to improve profitable trade. Technical Analysis is forecasting the future financial price movements. The main principle in Technical Analysis is History always repeats itself. Like weather forecasting, Technical Analysis does not result in absolute predictions about the future. Instead, Technical Analysis can help investors anticipating what is likely to happen to prices over time. Technical Analysis uses a wide variety of charts that shows price overtime. Technical Analysis is not just drawing a line or watching chart, it is an art. Art of predicting, Art of profit making, Art of listening charts. It gives wisdom, wisdom in the sense, whether I have to buy, sell or hold. It shows a path, direction and destination. However random walk theory says that stock market prices moves like drunked person walking on the street. But its my belief that technical analysis helps you in buy and sell decision making.

1.2 ABOUT THE INDUSTRY STOCK MARKET IN INDIA: Indian stock market started functioning from 1875. The name of the first share trading association in India was Native Share and Stock Brokers Association which later came to be known as Bombay Stock Exchange (BSE). This association kicked of with 318 members. Indian share market mainly consists of two stock exchanges: 1. Bombay Stock Exchange (BSE) 2. National Stock Exchange (NSE) Bombay Stock Exchange (BSE): Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as BSE, it was established as The Native Share & Stock Brokers Association in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the government of India under the Securities Contracts Act, 1956. The Exchanges pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an association of persons (AOP), the exchange is now a demutualised and corporatized entity incorporated under the provisions of the companies Act, 1956, pursuant to the BSE (Corporatization and demutualization) Scheme, 2005 notified by the Securities Exchange Board of India (SEBI). Bombay Stock Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of Commencement of business on 12th August, 2005. the Due Date for taking over the business and operations of the BSE, by the exchange was fixed forn19th, August, 2005, under the Scheme. The Exchange has succeeded the business and operations of BSE on going concern basis and its recognition as an Exchange has been continued by SEBI.

With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Directors of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terns of organization structure, the Board formulates larger policy issues and exercises over-all control. The committee constituted by the board is broad-based. The day-to-day operations of the exchange are managed by the Managing Director & CEO and a Management team of professionals. The exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. National Stock Exchange (NSE): The National Stock Exchange of India Limited (NSE), is a Mumbai based stock exchange. It is the largest Stock Exchange in India and the third largest in the world in terms of volume transactions. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operates as separate entities. The National Stock Exchange of India was promoted by leading financial institutions at the best of the government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a Stock Exchange under the Securities Contracts (Regulation) Act 1956.NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of NSE commenced operations in November1994, while operations in the Derivatives segment commenced in 2000. NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices.

Basics of stock trading: Making money in stocks is based on one sound, simple and straightforward principle; Buy low and Sell high. Merely following that one rule will result in profitable investing. You should buy a stock when its price is low and sell it when its price rises to yield a high profit. No investor, financial analyst, or economist would disagree with this principle. Understanding the rule is easy. Implementing it, however, is not so easy. Many economists would argue that it is impossible for an investor to predict consistently the moves that will yield the benefits of this strategy. However, practitioners spend countless hours attempting to pinpoint, at least with in certain limits, market lows and highs. Despite academics, disbelief, numerous claims of predictive success have come from these practitioners.

1.3 ABOUT THE COMPANY INDIA INFOLINE LIMITED

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business. India Infoline media and research services limited: The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global. It undertakes equities research which is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where India Infoline is amongst the most read Indian brokers. India Infoline Commodities Limited: India Infoline Commodities Private Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We

have a multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities. India Infoline Investment Services Limited: Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following stepdown subsidiaries. (a) (b) (c) Equities: India Infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerized access. India Infoline made it possible for clients to view transaction costs and ledger updates in real time. India Infoline Distribution Company Limited (distribution of retail loan products) Money line Credit Limited (consumer finance) India Infoline Housing Finance Limited (housing finance)

CHAPTER-2 MAIN THEME OF THE PROJECT 2.1 OBJECTIVES OF THE STUDY:

To forecast the price movements in safest buy and sell signal. To find buy and sell signal using Technical Tools. To find both Reversal and Continuation pattern for confirming buy and sell signal.

2.2 SCOPE OF THE STUDY:

This study is the art of using charts and other technical indicators to assess and to interpret market movements and trends. The study on fluctuations in equity market helps in understanding the fluctuations of equity market. It helps investors to be aware about deviations in the returns of the stocks. Analyses can advice of timing of stock buy and sell on the basis that the historical data. This study is useful to investor for Minimize the loss and makes profit.

2.3 LIMITATION OF THE STUDY:

Data collected only for the period of one year (Feb 10 Jan11).

Time available for the researcher is one of the major problems.

The analysis made by only for HDFC Bank, TCS, Hero Honda motors, and

Tata steel company scrips. The buy and sell for all trade only for one share price. We cannot predict the price movements accurately whether the price is moving up or Coming down. We can predict the price movements only based on the assumptions The research based on secondary data. The companies are selected on the basis of the Market Capitalization.

2.4 RESEARCH METHODOLOGY:

Type of Research: Data Source: Sampling Unit: Statistical Tools: Fast Stochastic Slow Stochastic Relative Strength Index (RSI) Chartism HDFC Bank TCS Hero Honda motors Tata Steel Secondary data Empirical research

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2.5 REVIEW OF LITERATURE

Warren Buffett said, I realized technical analysis didnt work when I turned the charts upside down and didnt get a different answer and if past history was all there was to the game, the richest people would be librarians. Peter Lynch commented Charts are great for predicting the past Cheol-Ho Park and Scott H. Irwin reviewed 95 modern studies on the profitability of technical analysis and said 56 of them find positive results, 20 obtained negative results, and 19 indicate mixed results: Despite the positive evidencemost empirical studies are subject to various problems in their testing procedures, e.g., data snooping, ex post selection of trading rules or search technologies, and difficulties in estimation of risk and transaction cost. Future research must address these deficiencies in testing in ordered to provide conclusive evidence on the profitability of technical trading strategies. Amsterdam economist Grewin Griffioen concludes that: for the U.S., Japanese and Western European stock market indices the recursive out-of-sample forecasting procedure does not show to be profitable, after implementing little transaction costs. Moreover, for sufficiently high transaction costs it is found, by estimating CAPMs, that technical trading shows no statistically significant risk-corrected out-of-sample forecasting power for almost all of the stock market indices. Paul Judor, Technical analyst says Those who think who know the market doesnt know the market really, who thinks he doesnt know the market knows the market really. D. Sarkar, studies the share price behavior using the time series data. He found that the retained earnings had on effect share price while the influence of divided was very much significant. Prof. Leopold A. Bernstein (1975) in his article had defended the function and value of fundamental investment analysis as the basis of successful investment in equity

11

shares. He had argued that even though psychological and other factors accounted 50% of price changes the other 50% of it was only due to fundamental factors. Balasubramaniam. K. (1994) examined the behavior of stock returns in India. He took the daily and weekly prices of 90 shares listed in NSE. He applied technical analysis; runs test and filter techniques for the study. He concluded that share price behavior is not random and hence random walk hypothesis cannot be established for Indian stock market. Ritter (1988) analyzed the buy/ sell details of NSE stocks over a period of 15 years from Dec 17, 1970 to Dec 16, 1985. Ritter proposed the parking- the proceeds hypothesis i.e., the individual investors who sell the stocks prior to the late December for tax loss selling and they buy the shares in early January, mostly small stocks. He concluded that the ratio of stock purchases to sales by individual investor displays a seasonal pattern, with individuals having a below-normal and buy/sell ratio in late December and above normal ratio in early January. Eugene F. Fama studied, the Behavior of stock market prices. The main objective of the theory is to find answer to the question: to what extent can be used to make meaningful predictions concerning the future prices of stocks? Chan and Chen (1991) examined the difference in structural characteristics that lead firms of different size to react differently to the same economic news. By using technical analysis they found the future market prices.

CHAPTER-3

12

DATA ANALYSIS AND INTERPRETATION

WHAT IS TECHNICAL ANALYSIS? Technical analysis is a method of evaluating securities by market activity, such as past prices and volume. Technical analysts do not attempt to measure a securitys intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. Just as there are many investment styles on the fundamental side, there are also many different types of technical traders. Some rely on chart patterns; others use technical indicators and oscillators, and most use some combination of the two. In any case, technical analysts exclusive use of historical price and volume data is what separates them from their fundamental counterparts. Unlike fundamental analysts, technical analyst dont care whether a stock is undervalued the only thing that matters is a securitys past trading data and what information this data can provide about where the security might move in the future. The field of technical analysis is based on three assumptions: 1. The market discounts everything. 2. Price moves in trends 3. History tends to repeat itself. 1. The market discounts everything: A major criticism of technical analysis is that it only considers price movements, ignoring the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stocks price reflects everything that has or could affect the company including fundamental factors. Technical analysts believe that the companys fundamentals, along with broader economic factors and market psychology, are all priced

13

into stock, removing the need to actually consider these factors separately. This only leaves the analysis of price movement, which technical theory views as a product of the supply and demand for a particular stock in the market. 2. Price moves in trends: In technical analysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption. 3. History tends to repeat itself: Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze market movements and understand trends. Although many of these charts have been used for more than hundred years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves. CHART PATTERNS: A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a signal of future price movements. Chartist uses these patterns to identify current trends and trend reversal and to trigger buy and sell signals. The theory behind chart pattern is based on this assumption. The idea is that certain patterns are seen many times, and that these patterns signal a certain high probability move in a stock. Based on the historic trend of a chart pattern setting up a certain price movement, chartists look for these patterns to identify trading opportunities. While there are general ideas and components to every chart pattern, there is no chart pattern that will tell you with 100% certainly where a security is headed. This creates

14

some leeway and debate as to what a good pattern looks like, and is a major reason why charting is often seen as more of an art than a science.

Types of chart patterns: There are two types of patterns within this area of technical analysis: 1. Reversal pattern 2. Continuation pattern 1. Reversal Pattern: Double Top: This type of formation signals the end of one trend and the beginning of another. If the Double top is formed when a stock price rises to a certain level, falls rapidly, again rises to the same height or more, and turns down. Its pattern resembles the letter M. The Double top may indicate the onset of the bear market. But the results should be confirmed with volume and trend. Double tops are identified by two peaks of similar height, followed by a break below the level of the intervening trough. They are treacherous to trade, partly because of their similarity to triple tops and trading ranges. The target for a breakout move is measured vertically from the highest peak to the support line drawn through the intervening trough. This is then projected downwards from the breakout point. Double Bottom: In a Double Bottom, the price of the stock falls to a certain level and increase with diminishing activity. Then it falls again to the same or to a lower price and turns up to a

15

higher level. The Double Bottom resembles the letter W. Technical analysts view double bottom as a sign for bull market. Double bottoms are also treacherous to trade, in part because of the similarity to triple bottoms and trading ranges. The target is measured from the lowest to the level of the intervening peak. It is then projected up from the break out above the resistance line. Head and Shoulders: This pattern is easy to identify and the signal generated by this pattern is considered to be reliable. In the head and shoulder pattern there are three rallies resembling the left shoulder, a head and right shoulder. A neck line is drawn connecting the lows of the tops. When the stock price cuts the neckline from above, it signals the bear market. The upward trend of the price for some duration created the left shoulder. At the top of the left shoulder people who bought during the uptrend begin to sell resulting in a dip. Near the bottom there would be reaction and people who have not bought in the first uptrend start buying at relatively low prices thus pushing the price upward. The alternating forces of demand and supply create new ups and lows. Inverted Head and Shoulder: Here the reverse of the previous pattern holds true. The price of stocks falls and rises that makes the inverted right shoulder. As the process of all and rise in price continues head and left shoulder are created. Connecting the tops of the inverted head and shoulders gives the neckline. When the price pierces the neckline from below, it indicates the end of bear market and the beginning of the bull market. These patterns have to be confirmed with the volume and trend of the market. 2. Continuation pattern: Cup with Handle:

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The cup with handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. It was developed by William O Neil. As its name implies, there are two parts to the pattern: cup and the handle. The cup forms after an advance and look like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right hand side and the handle is formed. A subsequent breakout from the handles trading range signals a continuation of the prior advance. STOCHASTIC: Introduction: The Stochastic Oscillator compares where a security price closed relative to its price range over a given time period. The Stochastic Oscillator is displayed as two lines. The main line is called %K. The second line, called %D, is a Moving Average of %K. The %K line is usually displayed as a solid line and the %D line is usually displayed as a dotted line. The indicator is made up of two lines, generally posted below the bar chart. These lines are referred to as %K and %D lines and are calculated as shown be Stochastic variable; The stochastic Oscillator has four variables: %K periods. This is the number of time periods used in the stochastic calculation; %K Slowing Periods. This value controls the internal smoothing of %K. A value of 1 is considered a fast stochastic; a value of 3 is considered a slow stochastic; %D periods this is the number of time periods used when calculating a moving average of %K; %D method. The method (i.e., Exponential, Simple, Smoothed, or

Weighted) that is used to calculated %D.

17

FAST STOCHASTIC: Fast Stochastic Oscillator is a momentum indicator that measures the price of a security relative to the high/low range over a fixed period of time. The indicator values range between 0 and 100, with readings below 20 considered oversold and readings above 80 considered overbought. A 5-perod Fast Stochastic Oscillator reading of 30 world indicate that the current price was 30% above the lowest low of the last 5 days and 70% below the highest high. Fast Stochastic Oscillators was developed by George Lane in 1950s. Calculation: The formula for %K is:

Fast %D: Simple moving average of Fast K (usually 3-period moving average) Interpretation: The 80% value is used as an overbought warning signal and the 20% is used as an oversold warning signal. The signals are most reliable if you wait until the %K and %D lines turn upward below 5% before buying, and the lines turn downward above 95% before selling. An overbought or oversold level indicates that a market may be vulnerable to a retracement.

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These signals are particularly important with monthly charts. Buying into a market with as overbought %K or selling into one that is oversold may involve above-average risk, particularly if the Markey is pressing against previous levels of support or resistance. SLOW STOCHASTIC: The original; stochastic is sometimes referred to as the fast stochastic to differentiate it from the slow stochastic. Some traders feel the fast stochastic %k line is too sensitive and, to improve their analysis, they replace the original %d line with a new slow %k line. The new slow %d line formula is then calculated from the new %k line. The result is a pair of smoothed oscillators that some traders believe provides more accurate signals.

Calculation: %K (slow) = 3-day SMA of %K (fast)

%D (slow) = y-day SMA of %K (slow)Interpretation:

The 80% value is used as an overbought warning signal and the 20% is used as an oversold warning signal. The signals are most reliable if you wait until the %K and %D lines turn upward below 5% before buying, and the lines turn downward above 95% before selling. An overbought or oversold level indicates that a market may be vulnerable to a retrenchment. These signals are particularly important with monthly charts. Buying into a market with as overbought %K or selling into one that is oversold may involve above-average risk, particularly if the Market is pressing against previous levels of support or resistance. RELATIVE STRENGTH INDEX (RSI): Introduction:
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RSI was developed by J. Welles Wilder and introduced in his 1978 book, New Concepts in Technical Trading Systems; the Relative Strength Index (RIS) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stocks recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods. Meaning: The name Relative Strength Index is slightly misleading, as the RSI does not compare the relative strength of two securities but rather then internal strength of a single security. A more appropriate name might be Internal Strength Index. Relative strength charts that compare two market indices, which are often referred to as Comparative Relative Strength. The RSI full name is actually rather unfortunate as it is easily confused with other forms of Relative Strength analysis such as John Murphys Relative Strength charts and IBDs Relative Strength ranking. Most other kinds of Relative Strength stuff involve using more than one stock in the calculation, Like most true indicators, the RSI only needs one stock to be computed. In order to avoid confusion, many people avoid using the RSIs full name and just call it the RSI. Calculation:

Average Gain =

Average Loss =

20

First RS =

For a 14-period RSI, the Average Gain equals the sum total all gains divided by 14. Even if there are only 5 gains (/losses), the total of those 5 gains (losses) is divided by the total number of RSI period in the calculation (14 in this case). The Average Loss is computed in a similar manner. Note: It is important to remember that the Average Gain and Average Loss is not true averages! Instead of dividing by the number of gaining (losing) periods, total gains (losses) are always divided by the specified number of time periods-14 in this case.

When the Average Gain is greater than the Average Loss, The RSI rises because RS will be greater than 1. Conversely, when the average loss is greater than the average gain, the RSI declines, because RS will be less than 1. Use of RSI: Overbought/Oversold: Wilder recommended using 70 and 30 for overbought and oversold levels respectively. Generally, if the RSI rises above 30 it is considered bullish for the underlying stock. Conversely, if the RSI falls below 70, it is a bearish signal. Some traders identify the long-term trend and the use extreme readings for entry points. If the long term trend is bullish, then oversold readings could mark potential entry points.

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CHAPTER-3 DATA ANALYSIS AND INTERPRETATION

FAST STOCHASTIC: RULES FOR BUY AND SELL IN FAST STOCHASTIC Buy when the Fast Stochastic falls below 20% and then rises above that level. Sell when the Fast Stochastic rises above 80% and then falls below that level. Cross Over: When the Fast %K line rises above the Fast %D line is the right time to buy. When the Fast %K line falls below the Fast %D line is the right time to sell.

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TABLE-1 FAST STOCHASTIC-HDFCBANK (FEB-10 TO JAN-11)

HDFCBANK FAST STOCHASTIC S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Buy Date 3-Feb-10 6-Feb-10 13-Feb-10 18-Feb-10 24-Feb-10 4-Mar-10 18-Mar-10 20-Mar-10 31-Mar-10 13-Apr-10 21-Apr-10 29-Apr-10 11-May-10 27-May-10 9-Jun-10 15-Jun-10 19-Jun-10 23-Jun-10 Buy Value 898.2 898.4 944.15 876.4 854.5 839 843 839.3 973.4 1098.35 1087.1 1100.35 1147 1409.1 1420.25 1533.05 1558.85 1485.45 Sell Date 5-Feb-10 11-Feb-10 16-Feb-10 20-Feb-10 27-Feb-10 17-Mar-10 19-Mar-10 25-Mar-10 6-Apr-10 15-Apr-10 27-Apr-10 5-May-10 13-May-10 1-Jun-10 12-Jun-10 17-Jun-10 22-Jun-10 24-Jun-10 Sell Value 884.25 934.5 913.95 866.5 889.5 828.15 832.4 972.15 1064.15 1082.75 1115.4 1193.25 1164.3 1433.65 1528.15 1544.75 1543.1 1457.7 P/L -13.95 36.1 -30.2 -9.9 35 -10.85 -10.6 132.85 90.75 -15.6 28.3 92.9 17.3 24.55 107.9 11.7 -15.75 -27.75

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19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

15-Jul-10 23-Jul-10 30-Jul-10 10-Aug-10 18-Aug-10 9-Sep-10 29-Sep-10 6-Oct-10 12-Oct-10 29-Oct-10 30-Nov-10 7-Dec-10 22-Dec-10 31-Dec-10 15-Jan-11 28-Jan-11

1381.75 1459.05 1464.35 1375.35 1440.9 1475.45 1611.35 1659.65 1702.25 1613.2 1766.25 1797.35 1646.55 1702.25 1694.15 1593.25 45188.95

21-Jul-10 27-Jul-10 3-Aug-10 17-Aug-10 21-Aug-10 16-Sep-10 1-Oct-10 7-Oct-10 15-Oct-10 10-Nov-10 3-Dec-10 9-Dec-10 29-Dec-10 11-Jan-11 20-Jan-11 29-Jan-11

1460.9 1433.4 1493.45 1406.2 1465.95 1516.8 1644.3 1677.7 1722.3 1703.45 1806.95 1804.35 1696.95 1708.15 1756.1 1631.05 46176.6

79.15 -25.65 29.1 30.85 25.05 41.35 32.95 18.05 20.05 90.25 40.7 7 50.4 5.9 61.95 37.8 987.65

TABLE-2 FAST STOCHASTIC-HDFCBANK OUTCOME

Gross Profit No of Trades No of wins No of loss

987.65 34 25 9

24

Strike% Less Brokerage Tax Net Profit

73.53

456.82 54.99 475.84

25

CHART-1 FAST STOCHASTIC-HDFC BANK

INTERPRETATION:
28th January 2011 From the chart number 2, it is clear that the price of the scrip has crossed the Fast Stochastic line 20 and below. It also obvious clear that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

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TABLE-3 FAST STOCHASTIC-HEROHONDA (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 HEROHONDA FAST STOCHASTIC Buy Date Buy Value Sell Date Sell Value P/L 6-Feb-10 880 9-Feb-10 885.45 5.45 11-Feb-10 902.45 16-Feb-10 934.5 32.05 17-Feb-10 945.15 18-Feb-10 932.45 -12.7 26-Feb-10 927.1 2-Mar-10 902.5 -24.6 3-Mar-10 900.7 6-Mar-10 928.5 27.8 9-Mar-10 935.45 13-Mar-10 961.5 26.05 16-Mar-10 964.6 19-Mar-10 990.9 26.3 20-Mar-10 997.65 27-Mar-10 1090.8 93.15 31-Mar-10 1071.15 1-Apr-10 1039.75 -31.4 6-Apr-10 1063.95 9-Apr-10 1066.45 2.5 15-Apr-10 1068.6 20-Apr-10 1125.25 56.65 23-Apr-10 1124.9 27-Apr-10 1129.9 5 29-Apr-10 1182.65 4-May-10 1203.45 20.8 6-May-10 1203.55 11-May-10 1221.95 18.4 13-May-10 1194.85 18-May-10 1487.3 292.45 22-May-10 1298.2 28-May-10 1327.5 29.3 29-May-10 1337.15 3-Jun-10 1387.9 50.75 5-Jun-10 1453.95 10-Jun-10 1484.35 30.4 18-Jun-10 1444.45 23-Jun-10 1434.75 -9.7 24-Jun-10 1445.95 25-Jun-10 1412.05 -33.9 30-Jun-10 1397.6 2-Jul-10 1381.8 -15.8 6-Jul-10 1359.25 9-Jul-10 1475.7 116.45 15-Jul-10 1490.4 20-Jul-10 1651.7 161.3 23-Jul-10 1666.55 24-Jul-10 1735.1 68.55 30-Jul-10 1638.35 31-Jul-10 1605.3 -33.05 3-Aug-10 1624.25 4-Aug-10 1617.05 -7.2 7-Aug-10 1479.25 10-Aug-10 1425.4 -53.85 11-Aug-10 1422.05 14-Aug-10 1478.1 56.05 18-Aug-10 1391.6 19-Aug-10 1359.2 -32.4 20-Aug-10 1413.65 3-Sep-10 1547.75 134.1 4-Sep-10 1610.9 8-Sep-10 1668.85 57.95 15-Sep-10 1615.65 17-Sep-10 1663.05 47.4 18-Sep-10 1679.7 22-Sep-10 1695.6 15.9 29-Sep-10 1655.8 1-Oct-10 1633.95 -21.85 14-Oct-10 1643.85 16-Oct-10 1643.9 0.05
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36 37 38 39 40 41 42 43

17-Oct-10 23-Oct-10 3-Nov-10 11-Nov-10 20-Nov-10 16-Dec-10 22-Dec-10 15-Jan-11

1652.4 1582.8 1511.35 1513.7 1651.8 1654.3 1698.75 1625.35 58321.75

21-Oct-10 27-Oct-10 9-Nov-10 17-Nov-10 26-Nov-10 21-Dec-10 29-Dec-10 19-Jan-11

1610.45 1587.65 1554.3 1686.4 1740.5 1670.1 1743.8 1664.1 59786.95

-41.95 4.85 42.95 172.7 88.7 15.8 45.05 38.75 1465.2

TABLE-4 FAST STOCHASTIC-HEROHONDA OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

1465.2 43 31 12 72.09

590.54 90.61 784.05

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CHART-2 FAST STOCHASTIC-HEROHONDA

INTERPRETATION:
25th January 2011 From the chart number 3, it is clear that the price of the scrip has crossed the Fast Stochastic line 20 and below. It also obvious clear that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

29

TABLE-5 FAST STOCHASTIC-TATASTEEL (FEB-10 TO JAN-11)

S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Buy Date 4-Feb-10 13-Feb-10 19-Feb-10 25-Feb-10 4-Mar-10 6-Mar-10 12-Mar-10 18-Mar-10 20-Mar-10 25-Mar-10 31-Mar-10 29-Apr-10 7-May-10 15-May-10 25-May-10 27-May-10 1-Jun-10 9-Jun-10 19-Jun-10 1-Jul-10 14-Jul-10 23-Jul-10 30-Jul-10 20-Aug-10 2-Sep-10 14-Sep-10 22-Sep-10 29-Sep-10 6-Oct-10 12-Oct-10 4-Nov-10 13-Nov-10 20-Nov-10 27-Nov-10 15-Dec-10 22-Dec-10 TATASTEEL FAST STOCHASTIC Buy Value Sell Date Sell Value P/L 179.55 10-Feb-10 196.85 194.15 16-Feb-10 184.15 172.45 20-Feb-10 168.1 162.4 2-Mar-10 159.05 156.65 5-Mar-10 151.8 156.75 9-Mar-10 152.35 155.9 17-Mar-10 168.6 176.5 19-Mar-10 172.95 176.25 24-Mar-10 187.35 194.75 27-Mar-10 223.2 205.9 9-Apr-10 261.1 238.1 6-May-10 270.7 294.35 8-May-10 282.4 272 21-May-10 365.65 368.75 26-May-10 361.85 373.5 29-May-10 405.35 439.3 2-Jun-10 474.5 438.2 15-Jun-10 433.8 412.55 22-Jun-10 402.75 395.95 3-Jul-10 437.95 357.8 20-Jul-10 391.2 415.75 28-Jul-10 471.2 452.15 4-Aug-10 475.35 442.05 25-Aug-10 457.85 415.1 11-Sep-10 469 478.85 17-Sep-10 520.95 522.4 23-Sep-10 520.6 504.05 1-Oct-10 510.8 510.4 9-Oct-10 532.55 545.6 15-Oct-10 574.65 469 10-Nov-10 504.65 520.75 19-Nov-10 537.15 552.95 23-Nov-10 573.05 544.85 1-Dec-10 581.65 546.5 18-Dec-10 563.25 577.2 29-Dec-10 622.05
30

17.3 -10 -4.35 -3.35 -4.85 -4.4 12.7 -3.55 11.1 28.45 55.2 32.6 -11.95 93.65 -6.9 31.85 35.2 -4.4 -9.8 42 33.4 55.45 23.2 15.8 53.9 42.1 -1.8 6.75 22.15 29.05 35.65 16.4 20.1 36.8 16.75 44.85

37 38 39 40 41

31-Dec-10 7-Jan-11 13-Jan-11 19-Jan-11 27-Jan-11

617.7 649.8 639.25 637.65 559.65 16123.4

6-Jan-11 8-Jan-11 15-Jan-11 21-Jan-11 28-Jan-11

642.05 648.45 645.15 648 585.4 16935.45

24.35 -1.35 5.9 10.35 25.75 812.05

TABLE-6 FAST STOCHASTIC-TATASTEEL OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

812.05 41 29 12 70.73

165.30 67.00 579.75

31

CHART-3 FAST STOCHASTIC-TATASTEEL

INTERPRETATION:
27th January 2011 From the chart number 2, it is clear that the price of the scrip has crossed the Fast Stochastic line 20 and below. It also obvious clear that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

32

TABLE-7 FAST STOCHASTIC-TCS (FEB-10 TO JAN-11)

S.No Buy Date 1 3-Feb-10 2 6-Feb-10 3 13-Feb-10 4 19-Feb-10 5 25-Feb-10 6 3-Mar-10 7 12-Mar-10 8 18-Mar-10 9 23-Mar-10 10 31-Mar-10 11 23-Apr-10 12 15-May-10 13 27-May-10 14 4-Jun-10 15 19-Jun-10 16 23-Jun-10 17 10-Jul-10 18 17-Jul-10 19 23-Jul-10 20 29-Jul-10 21 3-Aug-10 22 10-Aug-10 23 13-Aug-10 24 20-Aug-10 25 2-Sep-10 26 7-Sep-10 27 11-Sep-10 28 29-Sep-10 29 12-Oct-10 30 16-Oct-10 31 23-Oct-10 32 4-Nov-10 33 9-Nov-10 34 20-Nov-10 35 3-Dec-10 TCS FAST STOCHASTIC Buy Value Sell Date Sell Value P/L 499.85 5-Feb-10 482.9 502.8 11-Feb-10 514.75 511.2 16-Feb-10 500.75 489.5 20-Feb-10 474.05 480.75 2-Mar-10 459.85 446.2 9-Mar-10 463 477.4 17-Mar-10 497.55 505.15 20-Mar-10 509.8 519.65 27-Mar-10 574.85 538.55 6-Apr-10 579.55 568.1 4-May-10 666.4 644.05 19-May-10 669.75 648.55 1-Jun-10 697.65 707.2 9-Jun-10 782.15 379.8 22-Jun-10 369.65 366.65 25-Jun-10 380.5 395.15 16-Jul-10 419.8 434.1 21-Jul-10 477.6 475.65 27-Jul-10 480.3 499.8 31-Jul-10 525.95 531.65 4-Aug-10 530.15 539.05 11-Aug-10 541.9 526.75 14-Aug-10 521.5 501 27-Aug-10 547.75 534.6 3-Sep-10 533.65 550.95 10-Sep-10 556.55 560.35 14-Sep-10 559.1 610.4 1-Oct-10 629.85 579.85 15-Oct-10 581.8 598.3 22-Oct-10 625.85 639.8 26-Oct-10 644.55 625.7 5-Nov-10 624.5 622.75 16-Nov-10 665.75 693.15 25-Nov-10 702.8 690.05 10-Dec-10 705.65
33

-16.95 11.95 -10.45 -15.45 -20.9 16.8 20.15 4.65 55.2 41 98.3 25.7 49.1 74.95 -10.15 13.85 24.65 43.5 4.65 26.15 -1.5 2.85 -5.25 46.75 -0.95 5.6 -1.25 19.45 1.95 27.55 4.75 -1.2 43 9.65 15.6

36 37 38 39 40 41

16-Dec-10 18-Dec-10 23-Dec-10 30-Dec-10 11-Jan-10 15-Jan-10

713.15 727.5 746.55 742.75 714.2 791.4 23330

17-Dec-10 21-Dec-10 24-Dec-10 4-Jan-10 14-Jan-10 18-Jan-10

722.75 734.05 749.3 751.65 779.85 802.2 24037.95

9.6 6.55 2.75 8.9 65.65 10.8 707.95

TABLE-8 FAST STOCHASTIC-TCS OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

707.95 41 30 11 73.17

236.84 48.81 422.30

34

CHART-4 FAST STOCHASTIC-TCS

INTERPRETATION:
18th January 2011 From the chart number 5, it is clear that the price of the scrip has crossed the Fast Stochastic line 80 and above. It also obvious clear that Fast %K is about to cut the Fast %D at the top. It indicates clear signal to sell the scrip.

35

SLOW STOCHASTIC: RULES FOR BUY AND SELL IN SLOW STOCHASTIC

Buy when the Slow Stochastic falls below 20% and then rises above that level. Sell when the Slow Stochastic rises above 80% and then falls below that level. Cross Over: When the Slow %K line rises above the Slow %D line is the right time to buy. When the Slow %K line falls below the Slow %D line is the right time to sell.

36

TABLE-9 SLOW STOCHASTIC-HDFCBANK (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Buy Date 6-Feb-10 20-Feb-10 6-Mar-10 20-Mar-10 2-Apr-10 21-Apr-10 5-May-10 12-May-0 28-May-10 9-Jun-10 15-Jul-10 30-Jul-10 12-Aug-10 4-Sep-10 22-Sep-10 29-Sep-10 8-Oct-10 12-Oct-10 26-Oct-10 3-Nov-10 24-Nov-10 1-Dec-10 23-Dec-10 18-Jan-11 28-Jan-11 HDFCBANK SLOW STOCHASTIC Buy Value Sell Date Sell Value 898.4 12-Feb-10 933.85 866.5 27-Feb-10 889.5 801.8 19-Mar-10 832.4 839.3 30-Mar-10 945.5 1036.55 8-Apr-10 1046.75 1087.1 28-Apr-10 1071.85 1193.25 7-May-10 1176.35 1195.3 15-May-10 1184.95 1439.95 2-Jun-10 1397.8 1420.25 18-Jun-10 1524.85 1381.75 28-Jul-10 1424.45 1464.35 4-Aug-10 1469.05 1406.25 26-Aug-10 1460.6 1454.25 18-Sep-10 1524.45 1546.35 23-Sep-10 1569.6 1611.35 5-Oct-10 1634.05 1687.35 9-Oct-10 1675.65 1702.25 17-Oct-10 1703.15 1692.9 27-Oct-10 1670.1 1600.5 16-Nov-10 1723.6 1776.9 25-Nov-10 1802.7 1789.7 4-Dec-10 1789.55 1690.35 11-Jan-11 1708.15 1766.65 21-Jan-11 1711.65 1593.25 29-Jan-11 1631.05 34942.55 35501.6 P/L 35.45 23 30.6 106.2 10.2 -15.25 -16.9 -10.35 -42.15 104.6 42.7 4.7 54.35 70.2 23.25 22.7 -11.7 0.9 -22.8 123.1 25.8 -0.15 17.8 -55 37.8 559.05

37

TABLE-10 SLOW STOCHASTIC-HDFCBANK OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

559.05 24 17 7 70.83

352.22 21.43 185.40

38

CHART-5 SLOW STOCHASTIC-HDFCBANK

INTERPRETATION:
29th January 2011 From the chart number 7, it is clear that the price of the scrip has crossed the Slow Stochastic line 20 and below. It also obvious clear that Slow %K is about to cut the Slow %D at the bottom. It indicates clear signal to buy the scrip.

39

TABLE-11 SLOW STOCHASTIC-HEROHONDA (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Buy Date 9-Feb-10 13-Feb-10 26-Feb-10 4-Mar-10 18-Mar-10 24-Mar-10 8-Apr-10 16-Apr-10 24-Apr-10 5-May-10 7-May-10 15-May-10 25-May-10 4-Jun-10 19-Jun-10 3-Jul-10 15-Jul-10 11-Aug-10 20-Aug-10 15-Sep-10 30-Sep-10 15-Oct-10 26-Oct-10 3-Nov-10 13-Nov-10 24-Nov-10 18-Dec-10 12-Jan-11 18-Jan-11 HEROHONDA SLOW STOCHASTIC Buy Value Sell Date Sell Value 885.45 10-Feb-10 888.5 932.15 18-Feb-10 932.45 927.1 2-Mar-10 902.5 928.25 17-Mar-`10 973.7 997.9 23-Mar-10 1000.95 1008.1 27-Mar-10 1090.8 1078.25 13-Apr-10 1058.8 1077.6 21-Apr-10 1100.95 1147.3 28-Apr-10 1122.45 1199.25 6-May-10 1203.55 1219.3 11-May-10 1221.95 1221.9 18-May-10 1487.3 1324.1 29-May-10 1337.15 1369.3 11-Jun-10 1473.8 1464.85 23-Jun-10 1434.75 1370.1 9-Jul-10 1475.7 101490.4 21-Jul-10 1645.15 101422.05 17-Aug-10 1389.75 1413.65 8-Sep-10 1668.85 1615.65 18-Sep-10 1679.7 1672.4 1-Oct-10 1633.95 1656.4 20-Oct-10 1657.8 1598.5 29-Oct-10 1544.85 1511.35 10-Nov-10 1496.85 1578.9 19-Nov-10 1640.55 1689.6 26-Nov-10 1740.5 1672.9 30-Dec-10 1705.75 1644.75 13-Jan-11 1625.75 1694.6 21-Jan-11 1653.2 38812.05 39787.95 P/L 3.05 0.3 -24.6 45.45 3.05 82.7 -19.45 23.35 -24.85 4.3 2.65 265.4 13.05 104.5 -30.1 105.6 154.75 -32.3 255.2 64.05 -38.45 1.4 -53.65 -14.5 61.65 50.9 32.85 -19 -41.4 975.9

40

TABLE-12 SLOW STOCHASTIC-HEROHONDA OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

975.9 29 19 10 65.52

393.00 60.39 522.51

41

CHART-6 SLOW STOCHASTIC-HEROHONDA

INTERPRETATION:
28th January 2011 From the chart number 8, it is clear that the price of the scrip has crossed the Slow Stochastic line 20 and below. It also obvious clear that Slow %K is about to cut the Slow %D at the bottom. It indicates clear signal to buy the scrip.

42

TABLE-13 SLOW STOCHASTIC-TATASTEEL (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TATASTEEL SLOW STOCHASTIC Buy Date Buy Value Sell Date Sell Value P/L 5-Feb-10 181.8 12-Feb-10 185.6 3.8 26-Feb-10 163.05 2-Mar-09 10159.05 -4 6-Mar-10 156.75 24-Mar-09 10187.35 30.6 25-Mar-10 194.75 30-Mar-09 10196.35 1.6 2-Apr-10 225.1 15-Apr-09 10293 67.9 24-Apr-10 261.15 28-Apr-09 10234.35 -26.8 4-May-10 263.2 8-May-09 10282.4 19.2 18-May-10 318.25 21-May-09 10365.65 47.4 27-May-10 373.5 2-Jun-09 10474.5 101 11-Jun-10 452.5 15-Jun-09 10433.8 -18.7 23-Jun-10 400.4 24-Jun-09 10407 6.6 25-Jun-10 399.85 26-Jun-09 10388.55 -11.3 1-Jul-10 395.95 7-Jul-09 10396.5 0.55 13-Jul-10 339 28-Jul-09 10471.2 132.2 3-Aug-10 485.2 5-Aug-09 10473.3 -11.9 11-Aug-10 463.1 12-Aug-09 10443.7 -19.4 13-Aug-10 470.25 17-Aug-09 10437.95 -32.3 21-Aug-10 444.95 27-Aug-10 435.7 -9.25 3-Sep-10 420.65 11-Sep-10 469 48.35 15-Sep-10 492.45 18-Sep-10 517.85 25.4 8-Oct-10 534.95 16-Oct-10 566.65 31.7 30-Oct-10 471.55 19-Nov-10 537.15 65.6 20-Nov-10 552.95 24-Nov-10 558.7 5.75 30-Nov-10 579.2 3-Dec-10 583.6 4.4 16-Dec-10 557.65 21-Dec-10 555.9 -1.75 22-Dec-10 577.2 30-Dec-10 614.8 37.6 4-Jan-11 633.75 6-Jan-11 642.05 8.3 11-Jan-11 648.5 12-Jan-11 625.55 -22.95 15-Jan-11 645.15 18-Jan-11 637.5 -7.65 20-Jan-11 653.7 22-Jan-11 624.55 -29.15 12756.45 13199.25 442.8

TABLE-14
43

SLOW STOCHASTIC-TATASTEEL OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

442.8 30 18 12 60.00

129.77 32.43 280.60

CHART-7

44

SLOW STOCHASTIC-TATASTEEL

INTERPRETATION:
29th January 2011 From the chart number 6, it is clear that the price of the scrip has crossed the Slow Stochastic line 20 and below. It also obvious clear that Slow %K is about to cut the Slow %D at the bottom. It indicates clear signal to buy the scrip.

45

TABLE-15 SLOW STOCHASTIC-TCS (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Buy Date 4-Feb-10 24-Feb-10 5-Mar-10 20-Mar-10 25-Mar-10 2-Apr-10 23-Apr-10 12-May-10 14-May-10 27-May-10 4-Jun-10 23-Jun-10 2-Jul-10 9-Jul-10 24-Jul-10 20-Aug-10 3-Sep-10 15-Sep-10 29-Sep-10 14-Oct-10 11-Nov-10 23-Nov-10 4-Dec-10 16-Dec-10 23-Dec-10 31-Dec-10 12-Jan-11 TCS SLOW STOCHASTIC Buy Value Sell Date 498.65 11-Feb-10 468.9 2-Mar-10 463.2 16-Mar-10 509.8 24-Mar-10 526 26-Mar-10 578.75 9-Apr-10 568.1 5-May-10 641.1 13-May-10 619.8 15-May-10 648.55 3-Jun-10 707.2 11-Jun-10 366.65 1-Jul-10 390 8-Jul-10 388.15 16-Jul-10 482 4-Aug-10 501 31-Aug-10 533.65 9-Sep-10 571.9 18-Sep-10 610.4 5-Oct-10 592.95 28-Oct-10 645.25 18-Nov-10 694.1 26-Nov-10 695.2 14-Dec-10 713.15 21-Dec-10 746.55 30-Dec-10 750.25 6-Jan-110 750.05 18-Jan-11 15661.3 Sell Value 514.75 459.85 519.8 521.65 558.45 602.55 651 621.7 644.05 696.85 775.1 392.95 381.15 419.8 530.15 527.05 560.45 584 615.3 642.85 686.9 687.9 705.1 734.05 742.75 734.85 802.2 16313.2 P/L 16.1 -9.05 56.6 11.85 32.45 23.8 82.9 -19.4 24.25 48.3 67.9 26.3 -8.85 31.65 48.15 26.05 26.8 12.1 4.9 49.9 41.65 -6.2 9.9 20.9 -3.8 -15.4 52.15 651.9

TABLE-16
46

SLOW STOCHASTIC-TCS OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit

651.9 27 21 6 77.78

159.88 50.97 441.05

47

CHART-8 SLOW STOCHASTIC-TCS

INTERPRETATION:
18th January 2011 From the chart number 10, it is clear that the price of the scrip has crossed the Slow Stochastic line 80 and above. It also obvious clear that Slow %K is about to cut the Slow %D at the top. It indicates clear signal to sell the scrip.

48

TABLE-17 RSI-HDFCBANK (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 Buy Date 3-Mar-10 16-Jul-10 28-Jul-10 13-Aug-10 2-Sep-10 5-Nov-10 18-Dec-10 15-Jan-11 HDFCBANK RSI Buy Value Sell Date Sell Value P/L 831.5 24-Mar-10 941.7 110.2 1390.45 24-Jul-10 1449.95 59.5 1424.45 4-Aug-10 1469.05 44.6 1424.55 1-Sep-10 1446.1 21.55 1438.75 22-Sep-10 1546.35 107.6 1623.35 10-Nov-10 1703.45 80.1 1664.1 11-Jan-11 1708.15 44.05 1694.15 20-Jan-11 1756.1 61.95 11491.3 12020.85 529.55

TABLE-18 RSI-HDFCBANK OUTCOME Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit 529.55 8 8 0 100.00 117.56 42.68 369.31

CHART-9 RSI-HDFC BANK

49

INTERPRETATION: 28th January 2011 From the chart number 12, it is clear that RSI has crossed thirty, so there may occur an upturn and it indicates a buy signal.

50

TABLE-19 RSI-HEROHONDA (FEB-10 TO JAN-11)

HEROHONDA RSI Buy Value Sell Date 1370.1 16-Jul-10 1482.9 20-Oct-10 1565.75 14-Dec-10 1625.35 20-Jan-11 1550.15 29-Jan-11 7594.25

S.No 1 2 3 4 5

Buy Date 3-Jul-10 21-Aug-10 30-Oct-10 15-Jan-11 27-Jan-11

Sell Value 1537.85 1657.8 1684.4 1688.65 1559 8127.7

P/L 167.75 174.9 118.65 63.3 8.85 533.45

TABLE-20 RSI-HEROHONDA OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit 533.45 5 5 0 100.00 78.61 47.12 407.72

51

CHART-10 RSI-HEROHONDA MOTORS

INTERPRETATION:
28th January 2011 From the chart number 13, it is clear that RSI has crossed thirty, so there may occur an upturn and it indicates a buy signal.

52

TABLE-21 RSI-TATASTEEL (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 Buy Date 20-Feb-10 28-Apr-10 10-Jul-10 3-Sep-10 30-Oct-10 11-Dec-10 TATASTEEL RSI Buy Value Sell Date 168.1 26-Mar-10 234.35 18-May-10 352.9 14-Aug-10 420.65 15-Sep-10 471.55 8-Dec-10 546.55 31-Dec-10 2194.1 Sell Value 205.45 318.25 469.95 492.45 568.2 617.7 2672 P/L 37.35 83.9 117.05 71.8 96.65 71.15 477.9

TABLE-22 RSI-TATASTEEL OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit 477.9 6 6 0 100.00 24.33 46.99 406.58

53

CHART-11 RSI-TATASTEEL

INTERPRETATION:
26 January 2011 From the chart number 14, it is clear that RSI has crossed thirty, so there may occur an upturn and it indicates a buy signal.

54

TABLE-23 RSI-TCS (FEB-10 TO JAN-11)

S.No 1 2 3 4 5 6 7 8 9 Buy Date 5-Feb-10 12-Mar-10 22-Apr-10 26-May-10 16-Jun-10 21-Aug-10 12-Oct-10 1-Dec-10 11-Jan-11 TCS RSI Buy Value Sell Date 482.9 16-Feb-10 477.4 27-Mar-10 542.95 4-May-10 624.45 9-Jun-10 389.15 20-Aug-10 509.25 18-Sep-10 579.85 18-Nov-10 685.75 10-Dec-10 714.2 15-Jan-11 5005.90 Sell Value 500.75 574.85 666.4 782.15 501 584 686.9 705.65 791.4 5793.1 P/L 17.85 97.45 123.45 157.7 111.85 74.75 107.05 19.9 77.2 787.2

TABLE-24 RSI-TCS OUTCOME

Gross Profit No of Trades No of wins No of loss Strike% Less Brokerage Tax Net Profit 787.2 9 9 0 100.00 54 75.96 657.24

CHART-12 RSI-TCS

55

INTERORETATION:
15th January 2011 From the chart number 15, it is clear that RSI has crossed seventy, so there may occur an downturn and it indicates a sell signal.

56

CHART-13 REVERSAL PATTERN HEAD AND SHOULDER-HDFCBANK

INTERPRETATION: The Head and Shoulder was form in the month of October, and it will continue till January. Once the pattern was confirmed the trend is coming down.

57

CHART-14 DOUBLE TOP-HERO HONDA MOTORS

INTERPRETATION: Double Top pattern was formed in the month of November. This type of formation signals the end of one trend and the beginning of another. If the Double top is formed when a stock price rises to a certain level, falls rapidly, again rises to the same height or more, and turns down.

58

CHART-15 INVERTED HEAD AND SHOULDER-TATA STEEL

INTERPRETATION:
Inverted head and shoulder was formed in the month of june and it will continue till September. Once the pattern was confirmed the trend was going up.

59

CHART-16 CONTINUATION PATTERN CUP WITH HANDLE-HDFCBANK

INTERPRETATION: Cup with handle is a bullish continuation pattern, once the pattern was confirmed then it wills continuation. In July, breakout from the handle portion of the pattern should occur on strong continuation.

60

CHART-17 CUP WITH HANDLE-TATASTEEL

INTERPRETATION:
Cup with handle is a bullish continuation pattern, once the pattern was confirmed then it wills continuation. In April, breakout from the handle portion of the pattern should occur on strong continuation.

61

CHAPTER-4 FINDINGS AND SUGGESTIONS 4.1 FINDINGS

Fast Stochastic:
In case of DLF, Fast Stochastic clear that the price of the scrip has crossed

the Fast Stochastic line 20 and below. It also obvious that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

In case of HDFCBANK, Fast Stochastic clear that the price of the scrip has

crossed the Fast Stochastic line 20 and below. It also obvious that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

In case of HERO HONDA, Fast Stochastic clear that the price of the scrip

has crossed the Fast Stochastic line 20 and below. It also obvious that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

In case of TATA STEEL, Fast Stochastic clear that the price of the scrip has

crossed the Fast Stochastic line 20 and below. It also obvious that Fast %K is about to cut the Fast %D at the bottom. It indicates clear signal to buy the scrip.

In case of TCS, Fast Stochastic clear that the price of the scrip has crossed

the Fast Stochastic line 80 and above. It also obvious that Fast %K is about to cut the Fast %D at the top. It indicates clear signal to sell the scrip.

62

Slow Stochastic:

In case of HDFC BANK, Slow Stochastic clear that the price of the scrip

has crossed the Slow Stochastic line 20 and below. It also obvious that Slow %K is about to cut the Slow %D at the bottom. It indicates clear signal to buy the scrip.

In case of HERO HONDA, Slow Stochastic clear that the price of the scrip

has crossed the Slow Stochastic line 20 and below. It also obvious that Slow %K is about to cut the Slow %D at the bottom. It indicates clear signal to buy the scrip.

In case of TATA STEEL, Slow Stochastic clear that the price of the scrip

has crossed the Slow Stochastic line 20 and below. It also obvious that Slow %K is about to cut the Slow %D at the bottom. It indicates clear signal to buy the scrip.

In case of TCS, Slow Stochastic clear that the price of the scrip has crossed

the Slow Stochastic line 80 and above. It also obvious that Slow %K is about to cut the Slow %D at the top. It indicates clear signal to sell the scrip.

63

RSI:

In case of HDFC BANK, clear that RSI has crossed thirty, so there may

occur a up turn and it indicates a buy signal.

In case of HERO HONDA, clear that RSI has crossed thirty, so there may

occur a upturn and it indicates a buy signal. In case of TATA STEEL, clear that RSI has crossed thirty, so there may

occur a upturn and it indicates a buy signal. In case of TCS, clear that RSI has crossed seventy, so there may occur a

downturn and it indicates a sell signal.

64

4.2 SUGGESTIONS
Stochastic Oscillators can be used as both short- and intermediate-term trading oscillators depending on the number of time periods used when calculating the oscillator. RSI tools are simple, easy and reliable, and investor should use it to determine trends. It makes the investor to predict the future price movement and depend on it. Investor has to wait for the indicator to form trend reversal to buy or sell signal Scrips can move contrary to what the indicators predicted and every trader has to be prepared for these events. During the study period the market is in downtrend and it indicate buy signal for all the selected scrips.

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4.3 CONCLUSION
If you'd like to make profits in up markets, make profits in down markets and put these profits in your trading account over short periods of time, then the technique which can make this happen is Technical Analysis. Emotions can whipsaw a trader until all reason is lost, and buy and sell orders are made without a sound basis. This does not have to happen. Find stocks that are in position where big gains can be made, either up or down; in relatively short periods of time. We can apply detailed technical analysis to determine if it is time to be bullish or bearish. We can see whether a stock is overbought, oversold, basing, breaking out or breaking down. If you want to make money irrespective of whichever way the market goes-the key is doing the homework to determine what move is the right one so you can enter a trade with confidence and without hesitation, and exit with the same precision.

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BIBLIOGRAPHY
1. Security analysis and portfolio management -Punithavathi pandian 2. Technical Analys is explained -Martin.J.Pring 3. The Technical Analysis course -Thomas & Meyers 4. Market momentum -Martin.J.Pring

WEBLIOGRAPHY
www.stockcharts.com www.icharts.com www.nseindia.com www.onlinetradingconcepts.com www.chartpatterns.com

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