ANNEXURE-I

A SYNOPSIS
ON
“TECHICAL ANALYSIS
OF
STOCK MARKET”
(Submitted in partial fulfilment of the requirement of Master of Business
Administration, Distance Education, Guru Jambeshwar University of Science &
Technology, Hisar)

Supervisor: Submitted By:

Ms. Rainka Chaudhary Ashutosh Kumar Dubey

Assistant Professor(Finance) Enrolment No. – 09061144009

JK Business School Specialization- Finance

Remarks of Evaluators

Approved/Disapproved Approved/Disapproved

(I Evaluation) (II Evaluation)

Session: - 2009-2011

Directorate of Distance Education

GJUS&T, Hisar
 ANNEXURE-II

DIRECTORATE OF DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF SC. & TECH., HISAR

FORMAT FOR RESUME OF SUPERVISOR/GUIDE

1. NAME : Rainka Chaudhary

2. DESIGNATION : Assistant Professor

3. QUALIFICATION : MCOM, MBA, MPHIL(MKTG.)

SLET(UGC)

4. AREA OF SPECIALIZATION : Finance & Marketing

5. EXPERIENCE : 14 Years

6. OFFICIAL ADDRESS : JK Business School, Gurgaon

7. TELEPHONE NO. : 0124- 2266520

8. MOBILE : 09958581384

9. E-MAIL : ranika.chaudhary@jkbschool.org

I am willing to supervise Mr. Ashutosh Kumar Dubey

Enrolment No. 09061144009

On the topic “Technical Analysis of Stock Market”

(Signature) with seal

Countersigned by the Employer with seal

 Countersigned by Director of study centre with seal

ANNEXURE-III

CERTIFICATE

This is to certify that Mr. Ashutosh Kumar Dubey Enrolment No.

09061144009 has proceeded under my supervision on his report “Technical
Analysis of Stock Market” in Finance.

The work embodied in this report is original & is of the standard expected of an
MBA student & has not been submitted in part or full to this or any other
university for the award of any degree or diploma. He has completed all
requirement or guidelines for research Project Report & the work is fit for
evaluation

Signature of Supervisor/Guide (with seal)

NAME : Rainka Chaudhary

DESIGNATION : Assistant Professor (Finance)

ORGANISATION : JK Business School

 Forwarded by Head/Director of Study Centre (with seal)

TECHNICAL ANALYSIS OF STOCK MARKET

“Technical analysis refers to the study of market generated data like

prices & volume to determine the future direction of prices movements.”
Technical analysis mainly seeks to predict the short term price travels. It
is important criteria for selecting the company to invest. It also provides the
base for decision-making in investment. The one of the most frequently used
yardstick to check & analyze underlying price progress. For that matter a verity
of tools was consider.
This Technical analysis is helpful to general investor in many ways. It
provides important & vital information regarding the current price position of
the company.
Technical analysis involves the use of various methods for charting,
calculating & interpreting graph & chart to assess the performances & status of
the price. It is the tool of financial analysis, which not only studies but also
reflecting the numerical & graphical relationship between the important
financial factors.
The focus of technical analysis is mainly on the internal market data, i.e.
prices & volume data. It appeals mainly to short term traders. It is the oldest
approach to equity investment dating back to the late 19th century.

REVIEW OF LITERATURE
Brown and Jennings 1989 showed that technical analysis has value in a model
in which prices are not fully revealing and traders have rational conjectures
about the relation between prices and signals.

Taylor and Allen 1992 report the results of a survey among chief foreign
exchange dealers based in London in November 1988 and found that at least
90% of responds placed some weight on technical analysis, and that there was a
skew towards using technical rather than fundamental analysis at shorter time
horizons.

Neely 1998 reconciles the fact that using technical trading rules to trade against
US intervention in foreign exchange markets can be profitable, yet long term
the intervention tends to be profitable.

Lee and Swaminathan 2000 demonstrate the importance of past trading volume.

Neely and Weller 2001 use genetic programming to show the technical trading
rules can be profitable during foreign exchange intervention.

Cesari and Cremonini 2003 make an extensive simulation comparison of

popular dynamic strategies of assets allocation and find the technical analysis
only performs well in Pacific markets.

Kavajecz and Odders-White 2004 show that support and resistance levels
coincide with peaks in depth on limit order book and moving average forecast
reveals information about the relative position of depth on the book. They also
shows that these relationships stem from technical rules locating depth already
in place on the limit order book.

PROBLEM STATEMENT
Technical analysis and its emphasis on trading volume has been used to analyze
movements in individual stock prices and make investment recommendations to
either buy or sell that stock. Little attention has been paid to investigating the
relationship between trading volume and various stock indices.

By this project I try to answer the main two questions that have driven us
to pick this project. We know that there is more than one way to make many in
stocks and in the market in general. However, what I focus on in this project is
how to make money by finding, buying, and holding stocks of good, solid
companies and how to obtain the most return for the risk taken. Therefore, or
main problems are:-

1. How does the investor make money through capital appreciation of

stocks of companies on major stock exchanges?
 2. Hoe does the investor obtain the most return for the risk that he or she
undertakes while investing?

OBJECTIVES OF THE STUDY

The objective of the study are-

 Technical analysis refers to the study of market generated data like prices
& volume to determine the future direction of prices movements.

 Technical analysis provides information on the best entry and exit point

for a trade.

 On a chart, the trader can see where momentum is rising.

RESEARCH METHODOLOGY
(A) Sources of Data:

Secondary data: Data is collected from the BSE & NSE

index.

(B) Research Design:

Exploratory study is applied because the Secondary data are

used in my study.

(C) Tools of Analysis:

The tools which are used for analyzing the data are as follow:
 • The use MS Excel for plotting a graph and analyzing the
data.

• The secondary data source is used like Historical data,

magazines, Internet, etc.

SCOPE OF THE STUDY

Technical analysis includes the study of chart patterns, candlesticks, moving
averages, and other indicators. It is easy to apply in any market, in which the
raw data (prices and volume) is available. With the help of technical analysis, it
is easy to understand the sentiments (psychology) of the market and to forecast
the prices, without looking at the fundamental factors of a particular currency.

Technical analysis is widely used by forex, equity, and commodity

traders, to determine the short term as well as the long term trends of the
market. The scope of technical analysis is increasing every day, as more and
more people are trying to learn the skills of technical analysis to earn good
returns.

In technical analysis, there is an ample amount of opportunity for those who

know how to read charts and how to take actions (buy/sell) by looking at the
charts. Trend analysis, right time to enter and exit, and early trade signals are
the biggest advantages of technical analysis, which should motivate all Forex
players to learn about it and begin using this effective tool.
 REFERENCES
Books:

 Prasanna Chandra(3rd Edition),Security Analysis and Portfolio

Management, CFM-McGraw-Hill Professional Series in Finance.
 V.A. Avadhani(9th Revised Edition), Securities Analysis and Portfolio
Management, Himalaya publishing House.
 V.K. Bhalla(13th Edition), Investment Management, S. Chand
 William G. Zikmund(7th Indian Edition), Business Research Methods,
South-Western CENGAGE Learning.

Websites:

 www.bseindia.com
 www.nseindia.com
 www.moneycontrol.com
 www.technicalanalysis.org
 ANNEXURE-IV

DECLARATION

This is to certify that the project report entitled “Technical Analysis of Stock
Market” is an original work and has not been submitted is part or full to this or
any other University/Institution the award of any degree or diploma.

Signature of candidate

NAME: Ashutosh Kumar Dubey

ENROLMENT NO. - 09061144009

SPECILIZATION: Finance

SESSION: 2009-2011