Project Title Project report submitted in partial fulfillment of the Requirement for the award of the degree by OU,

Hyderabad-500007

MASTER OF BUSINESS ADMINISTRATION By

SRIDHAR REDDY MEDIPELLI

(H.NO: 140810672057)

<<<<< COLLEGE LOGO >>>>>>>>>

DR.B.R.AMBEDKAR COLLEGE, Bhagalingampalli,Hyderabad. (2010-2012)

Declaration

I, SRIDHAR REDDY MEDIPELLI hereby declare that this Project Report

titled Short Term Trading Using Support and Resistance level submitted by me to the Department of Business Management, O.U., Hyderabad, is a bonafied work undertaken by me and it is not submitted to any other University or Institution for the award of any Degree/ Diploma/ Certificate or published any time before.

Date:09-03-2012 Place: Hyderabad Sridhar Reddy Medipelli STUDENT NAME

ACKNOWLEDGEMENT

I would like to express my sincere thanks to management from Last Mile Solutions for the permission to undertake the project in their organization. At the outset, I would like to express my deepest gratitude to Mr.Vijay Reddy,my External guide for his excellent guidance and encouragement during the course of the project work. My sincere thanks to my guide Mr.Jeevan Lecturer, Department of Business Management, Dr.B.R.Ambedkar College, my Internal guide for his dedicated guidance, suggestions and continuous encouragement to carry out the project successfully.

I would like to express my gratitude to Mr.Vijay Reddy, The Course Director, and Mrs. Pramada Srinivas Rao, HOD, Department of Business Management, Dr.B.R.Ambedkar College, for his/her guidance to carry out the project successfully.

Table of contents
Chapter I Need of the Study Objective of the Study Title Introduction Page No 8 9 10

II Scope of the Study Methodology III IV V VI 12 Source of Data Approach 1311

Review of literature Company Profile Data Analysis and Interpretation Findings, Conclusion, Suggestions and Bibliography

List of Tables

S No 1 2 3

Title

Page No

4 5

List of Charts and Figures

S No 1 2 3 4 5 6

Title

Page No

CHAPTER I INTRODUCTION

INTRODUCTION:

Financial market provides a wonderful opportunity for individuals to invest and make gains from these investment. The richest people of the world have made so much money starting from Warren Buffet, Carlos Slim to our own Indian investors Rakesh Junjunwala. Financial markets provide these opportunities everyday but the main point is what to invest and when. How to you choose these winning stocks, there are so many strategies called fundamental and technical analysis being used by professionals every day.

There are so many investors participating in the market and losing money because of lack of awareness of different strategies and investment guidelines. One such strategy is called VALUE INVESTING, which is used by many financial pundits and people who have made loads of money over a period of time.

Financial markets provide time and again opportunities for investors but how do we find the right stocks from so many of them being available through NSE and BSE. The project study looks at identifying these VALUE STOCKS from the select group of NIFTY stocks and provides a step by step process in finding these stocks which provide returns. One of the key factor in investing in stocks is finding the right stock and finding the value in the stock which drives them to higher prices.

The project study covers all these factors and provides the winning VALUE STOCKS as part of the analysis and study also looks at all the stocks in NIFTY which provide a buying opportunity.

NEED OF THE STUDY

The financial markets have different products derived from the fundamental instrument called STOCK or SHARE. This has allowed professionals and technicians to come up with different models. Several of them use the movements of these stocks to make profits from it by TRADING. Trading of any financial instrument depends on SUPPLY vs DEMAND and this concept applies to any market which trades items.

In matured economies the number of instruments available are many, heavy usage of technology and availability of information to common trader. The trading community has made TRADING as a profession and several thousands of folks across the world have made this as a living.

As people engage themselves in STOCK TRADING/INVESTING there are several techniques which are used to make sure they make right trading decisions so that they can profit from the same along with protecting losses quickly. The common criteria used among traders are that the total number of winning trades should be greater than losing trades.

Many Indian retail investors are not that much sophisticated and use rationale with the methods and tactics which the various stock market analysts, investors use for the investment decisions in the developed markets. The study provides with the methodology as to how the Value Investment Strategy can be used to make profits.

OBJECTIVES

1. Study equity markets and Nifty List of Stocks (Shares, Exchanges etc.,) 2. Study Value Investing 3. Identify Charts of Value Stocks from Nifty 4. Study the performance of Nifty Stocks and identify Value Stocks which have potential for appreciation

SCOPE: -

Study focuses only on Nifty Stocks Value Investment Strategy is used Performance is evaluated only on select Nifty Stocks which have value

LIMITATIONS: BSE Stocks are not considered Non Nifty Stocks are not considered Technical Analysis is not used Other Investment Strategies not considered Charts for 1 Year only are used

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METHODOLOGY:

The project study uses exploratory method by taking stocks of Nifty and using the value investment strategy to identify the value stocks from the 50 stocks. The data is collected from secondary sources of National Stock Exchange and Money Control along with quarterly balance sheet from SEBI.

Source of Data 1. Use live stock charts from TV18 Company 2. The data is gathered from various financial websites like www.investopedia.com , www.stockcharts.com , www.icharts.com , www.bloomberg.com , www.stockfetcher.com , www.bigcharts.com, nse-india.com, www.moneycontrol.com

Sample Size Nifty Stocks (50)

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CHAPTER II REVIEW OF LITERATURE

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LITERATURE

NATIONAL STOCK EXCHANGE

The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualisation of stock exchange governance, screen based trading, compression of settlement cycles, dematerialisation and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. It recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. The National Stock Exchange (NSE) operates a nation-wide, electronic market, offering trading in Capital Market, Derivatives Market and Currency Derivatives segments including equities, equities based derivatives, Currency futures and options, equity based ETFs, Gold ETF and Retail Government Securities. Today NSE network stretches to more than 1,500 locations in the country and supports more than 2, 30,000 terminals.

With more than 10 asset classes in offering, NSE has taken many initiatives to strengthen the
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securities industry and provides several new products like Mini Nifty, Long Dated Options and Mutual Fund Service System. Responding to market needs, NSE has introduced services like DMA, FIX capabilities, co-location facility and mobile trading to cater to the evolving need of the market and various categories of market participants.

NSE has made its global presence felt with cross-listing arrangements, including license agreements covering benchmark indexes for U.S. and Indian equities with CME Group and has also signed a Memorandum of Understanding (MOU) with Singapore Exchange (SGX) to cooperate in the development of a market for India-linked products and services to be listed on SGX. The two exchanges also will look into a bilateral securities trading link to enable investors in one country to seamlessly trade on the other countrys exchange.

NSE is committed to operate a market ecosystem which is transparent and at the same time offers high levels of safety, integrity and corporate governance, providing ever growing trading & investment opportunities for investors. National Stock Exchange of India (NSE) is India's largest Stock Exchange & World's third largest Stock Exchange in terms of transactions. Located in Mumbai, NSE was promoted by leading Financial Institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, NSE 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. Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000. NSE has played a catalytic role in reforming Indian securities market in terms of microstructure, market practices and trading volumes. NSE has set up its trading system as a nation-wide, fully automated screen based trading system. It has written for itself the mandate to create World-class Stock Exchange and use it as an instrument of change for the industry as a whole through competitive pressure. NSE is set up on a demutualised model wherein the ownership, management and trading rights are in the hands of three different sets of people. This has completely eliminated any conflict of interest. What is Nifty 50? The Nifty 50 was a list of Stocks during the 60s and 70s which had solid earnings growth and high price to earnings ratio. Many large institutions recommended these stocks to their clients as life
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long buy and holds. The fifty stocks where all large caps on the New York Stock Exchange. Nifty is one of the leading index in the Indian stock market and the prime index of the NSE. If you consider all the stocks in the NIFTY it accounts for almost 50% of the total traded volume in the NSE. History: Another reason the Nifty 50 was coined "50" was because the majority of the stocks on the list had price to earnings ratio of 50 or more. These stocks lost their luster during the bear market of 19731974, where these stocks were crushed in a matter of months. This sharp decline was changed the views of institutions on these stocks overnight, and the Nifty50 was all but forgotten. It wasn't until after the 87 crash through the late 90s did investors once again buy these stocks for long term investments and not for quick swing gains. About : NIFTY 50:The Nifty 50 was a group of the 50 most popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s. The group included Walt Disney, Dow Chemical, IBM and McDonald's. Nifty 50 stocks were widely regarded as solid buy-and-hold equities and the companies in the group were characterized by consistent earnings growth and high P/E Ratios. In addition, the Nifty 50 stocks were credited with propelling the bull market of the early 1970s. Due to their marked stability, Nifty 50 stocks were viewed as "one-decision" picks because investors were told to buy and hold them forever. In February 2008, Wall Street giant UBS devised the New Nifty 50, an expanded version of the list, which now includes international companies like Toyota, Samsung, Nokia and Swatch. The inclusion of international companies on the New Nifty 50 allows investors to take advantage of the solid returns and stability of companies in the UK, Japan and some European countries. What is Nifty Index? Nifty is a prime index of the 'The National Stock Exchange of India Limited', the Mumbai based Stock Exchange.NSE is the largest stock exchange in India in terms of daily turnover and trading volume in both equity and derivative trading. NSE is owned by the premiere financial institutions, banks, insurance companies and other financial intermediaries in India. But the ownership and the management of the exchange work as separate entities. The NSE S&P CNX Nifty 50 that is popularly known as NIFTY is the key index of the NSE. NIFTY is an index that is made of 50 major stocks listed at the NSE in terms of market capitalization. NIFTY is a well diversified index as these 50 companies are from 21 sectors. The index is owned and managed by India Index Services and Products Ltd.
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(IISL). IISL, which is a joint venture of NSE and CRISIL is the first specialized company in India on Index. The company has a marketing and licensing agreement with Standard & Poor's (S&P) the world market leader in index services. The NIFTY index is used for different purposes like benchmarking fund portfolios, index based derivative trading and index funds. NSE was set up with the objectives of:

Establishing nationwide trading facility for all types of securities Ensuring equal access to investors all over the country through an appropriate telecommunication network

Providing fair, efficient & transparent securities market using electronic trading system Enabling shorter settlement cycles and book entry settlements Meeting International benchmarks and standards

Within a very short span of time, NSE has been able to achieve its objectives for which it was set up. Indian Capital Markets are a far cry from what they were 12 years back in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service. To ensure continuity of business, NSE has built a full fledged BCP site operational for last 7 years. NSE's markets NSE provides a fully automated screen-based trading system with national reach in the following major market segments:

Equity OR Capital Markets {NSE's market share is over 65%} Futures & Options OR Derivatives Market {NSE's market share over 99.5%} Wholesale Debt Market (WDM) Mutual Funds (MF) Initial Public Offerings (IPO)

What are the IT initiatives of NSE in the last one year? NSE believes that technology shall continue to provide necessary impetus for any organisation to retain its competitive edge, ensure timeliness & satisfaction in customer service. Being fully dependant on Information Technology, NSE has stressed on innovation and sustained investment in technology on a continual basis to ensure customer satisfaction, improvement in services which
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automatically helps in sustaining business and remain ahead of competition. As a policy, NSE looks to improve the quality of Services to its customers. Projects are not initiated based on a business model to reap profits but from a strategic perspective of better productivity, Value-adds & features, improving efficiency, reducing operational costs, compliance, operational transparency etc for the customers, investors and to the entire Indian Securities Industry. Some of the projects taken by NSE last year are as follows:1. Trading System Capacity enhancement 2. Re-engineering of Online Position Monitoring (OPMS) 3. Augmentation of Data Warehouse (DWH) 4. STP Central Hub BOMBAY STOCK EXCHANGE Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as the BSE was established as "The Native Share & Stock Brokers' Association" in 1875. Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient capital raising platform.

Today, BSE is the world's number 1 exchange in the world in terms of the number of listed companies (over 4900). It is the world's 5th most active in terms of number of transactions handled through its electronic trading system. And it is in the top ten of global exchanges in terms of the market capitalization of its listed companies (as of December 31, 2009). The companies listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb, 2010.

BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE OnLine trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO version of BS 7799 for Information Security.

The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index. Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and

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options on the index are also traded at BSE.

Of the 22 stock exchanges in the country, Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognised and it is the only one that had the privilege of getting permanent recognition ab-initio.

Approximately 70,000 deals are executed on a daily basis, giving it one of the highest per hour rates of trading in the world. There are around 3,500 companies in the country which are listed and have a serious trading volume. The market capitalization of the BSE is Rs.5 trillion. The BSE `Sensex' is a widely used market index for the BSE. The main aims and objectives of the BSE is to provide a market place for the purchase and sale of security evidencing the ownership of business property or of a public or business debt. It aims to promote, develop and maintain a well regulated market for dealing in securities and to safeguard the interest of members and the investing public having dealings on the Exchange. It helps industrial development of the country through efficient resource mobilization. To establish and promote honourable and just practices in securities transactions The BSE Sensex is a value-weighted index composed of 30 companies with the base April 1979 = 100. It has grown by more than four times from January 1990 till date.The set of companies in the index is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE. We can use information from April 1979 onwards in estimating the long-run rate of return on the BSE Sensex and that comes to 0.52% per week (continuously compounded) with a standard deviation of 3.67%. This translates to 27% per annum, which translates to roughly 18% per annum after compensating for inflation. For the premier Stock Exchange that pioneered the stock broking activity in India, 133 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called 'The Stock Exchange, Mumbai' by paying a princely amount of Re.1/-. Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in
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1986 came out with a stock index that subsequently became the barometer of the Indian stock market. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media. The Index was initially calculated based on the 'Full Market Capitalization' methodology but was shifted to the free-float methodology with effect from September 1, 2003. The 'Free-float Market Capitalization' methodology of index construction is regarded as an industry best practice globally. All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float methodology. Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the pulse of the Indian stock market. As the oldest index in the country, it provides the time series data over a fairly long period of time (From 1979 onwards). Small wonder, the SENSEX has over the years become one of the most prominent brands in the country. The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. The SENSEX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market throughSENSEX. CALCULATION METHODOLGY SENSEX is calculated using the 'Free-float Market Capitalization' methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the Freefloat market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest
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trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time. SCRIP SELECTION CRITERIA The general guidelines for selection of constituents in SENSEX are as follows: Listed History:The scrip should have a listing history of at least 3 months at BSE. Exception may be considered if full market capitalisation of a newly listed company ranks among top 10 in the list of BSE universe. In case, a company is listed on account of merger/ demerger/ amalgamation, minimum listing history would not be required. Trading Frequency:The scrip should have been traded on each and every trading day in the last three months. Exceptions can be made for extreme reasons like scrip suspension etc. Final Rank:The scrip should figure in the top 100 companies listed by final rank. The final rank is arrived at by assigning 75% weightage to the rank on the basis of three-month average full market capitalisation and 25% weightage to the liquidity rank based on three-month average daily turnover & three-month average impact cost. Market Capitalization Weightage:The weightage of each scrip in SENSEX based on three-month average free-float market capitalisation should be at least 0.5% of the Index. Industry Representation:Scrip selection would generally take into account a balanced representation of the listed companies in the universe of BSE.

Track Record:In the opinion of the Committee, the company should have an acceptable track record.

DEFINITION OF FREE-FLOAT Share holdings held by investors that would not, in the normal course come into the open market for trading are treated as 'Controlling/ Strategic Holdings' and hence not included in free-float. In specific, the following categories of holding are generally excluded from the definition of Freefloat : Holdings by founders/directors/ acquirers which has control element Holdings by persons/ bodies with 'Controlling Interest' Government holding as promoter/acquirer Holdings through the FDI Route Strategic stakes by private corporate bodies/ individuals
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 Equity held by associate/group companies (cross-holdings) Equity held by Employee Welfare Trusts Locked-in shares and shares which would not be sold in the open market in normal course. The remaining shareholders would fall under the Free-float category. UNDERSTANDING FREE-FLOAT METHODOLOGY Concept : Free-float Methodology refers to an index construction methodology that takes into consideration only the free-float market capitalization of a company for the purpose of index calculation and assigning weight to stocks in Index. Free-float market capitalization is defined as that proportion of total shares issued by the company that are readily available for trading in the market. It generally excludes promoters' holding, government holding, strategic holding and other locked-in shares that will not come to the market for trading in the normal course. In other words, the market capitalization of each company in a Free-float index is reduced to the extent of its readily available shares in the market. In India, BSE pioneered the concept of Free-float by launching BSE TECk in July 2001 and BANKEX in June 2003. While BSE TECk Index is a TMT benchmark, BANKEX is positioned as a benchmark for the banking sector stocks. SENSEX becomes the third index in India to be based on the globally accepted Free-float Methodology. MAJOR ADVANTAGE OF FREE-FLOAT METHODOLOGY A Free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market. Free-float Methodology makes the index more broad-based by reducing the concentration of top few companies in Index. For example, the concentration of top five companies in SENSEX has fallen under the free-float scenario thereby making the SENSEX more diversified and broad-based. A Free-float index aids both active and passive investing styles. It aids active managers by enabling them to benchmark their fund returns vis-a-vis an investable index. This enables an appleto-apple comparison thereby facilitating better evaluation of performance of active managers. Being a perfectly replicable portfolio of stocks, a Free-float adjusted index is best suited for the passive managers as it enables them to track the index with the least tracking error.

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 Free-float Methodology improves index flexibility in terms of including any stock from the universe of listed stocks. This improves market coverage and sector coverage of the index. For example, under a Full-market capitalization methodology, companies with large market capitalization and low free-float cannot generally be included in the Index because they tend to distort the index by having an undue influence on the index movement. However, under the Freefloat Methodology, since only the free-float market capitalization of each company is considered for index calculation, it becomes possible to include such closely held companies in the index while at the same time preventing their undue influence on the index movement. Globally, the Free-float Methodology of index construction is considered to be an industry best practice and all major index providers like MSCI, FTSE, S&P and STOXX have adopted the same. MSCI, a leading global index provider, shifted all its indices to the Free-float Methodology in 2002. The MSCI India Standard Index, which is followed by Foreign Institutional Investors (FIIs) to track Indian equities, is also based on the Free-float Methodology. NASDAQ-100, the underlying index to the famous Exchange Traded Fund (ETF) - QQQ is based on the Free-float Methodology. New Developments In November, 1996, as a move to reduce the counter party risk, the Exchange set up a trade guarantee scheme i.e. all trades carried out on the BOLT are guaranteed by the Clearing House of the Exchange. A depository has been set up as a joint venture by the Bank of India and the Exchange. However, it will be a subsidiary of the Bank of India. The Exchange introduced trading in fixed income securities under a separate group to give impetus to trading in debentures and other corporate debt instruments, to increase trading in government dated securities.

BSE Mid-Cap and BSE Small-Cap Index BSE introduced the new index series called 'BSE Mid-Cap' index and 'BSE Small-Cap' index to track the performance of the companies with relatively small market capitalization that would exclusively represent the mid and small cap companies listed on the Stock Exchange. BSE-500 index - the broad based index that is considered as a BSE Composite index represents more than 93% of listed universe. The movement of BSE-500 index used to get influenced by companies
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with large market capitalization and with the result, the need for a separate indicator to capture the trend in the specific class of companies (with lower market capitalisation) was felt. BSE Mid-Cap and BSE Small-Cap index would prove to be a great utility to the investing community as they would truly capture the movement of the segments they are represent (mid and small). Salient feature of these indices are: Base year of these indices would be 2002-2003 Base index value would be 1000 for each of these indices Based on a free-float methodology Constructed on 80%-15%-5% method whereby top 750 companies by average market capitalization and liquidity are categorized under large, mid and small cap segment respectively from the list of eligible universe of BSE. BSE Mid-Cap tracks the performance of scrips between 80 & 95% of 750 companies and BSE Small-Cap index tracks the performance of remaining 5% scrips (95-100%). Number of companies in each of these indices would be variable. On the date of launch (April 11, 2005), these indices comprised of 231 and 425 constituents in BSE Mid-Cap and BSE Small-Cap index respectively. Correlation of 0.98 and 0.93 for BSE Mid-Cap and BSE Small-Cap index respectively with broad based BSE-500 index Constituents of these indices are reviewed on a quarterly basis

SHARE In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself.

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In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price. A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price.

Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues

Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer no guarantee of any returns and can lose value, even in the long run

Investments in stocks can generate returns through dividends, even if the price

How does one trade in shares ? Every transaction in the stock exchange is carried out through licensed members called brokers. To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders. The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it . What are active Shares ?

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Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week. Easy to buy or sell. A share is simply a divided-up unit of the value of a company. If a company is worth 100 million, and there are 50 million shares in issue, then each share is worth 2 (usually listed as 200p in the money pages.) As the overall value of the company fluctuates so does the share price. Shares can, and do, go up and down in value for various reasons. However, such movements are not usually for the most obvious of reasons. It would be very simple if a share were priced solely on what the company in question owned - its buildings, cars, computers, value of contracts in the pipeline etc. The total value minus company borrowings would be divided by the number of shares in issue and there would be the value of each individual share. But there is a fly in the ointment called "sentiment". Why market sentiment matters In general, share prices rise on the expectation (rather than the publication) of increased future profits and fall on published facts. If this sounds entirely mad, bear in mind that if an analyst predicts that ABC company will double its profits then the price will rise at the time of the prediction. When the results come through, revealing that profits have gone up "only" 75%, the price will probably fall because the current facts are less exciting than the earlier prediction. Understanding this apparent nonsense is key to appreciating the behaviour of markets in general, and individual shares in particular. Why companies want to please shareholders Professional investors buy shares in the hope of benefiting from a rising stream of income over the long term.

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When profits are distributed to the shareholders the payments are known as "dividends". The capital value of a share - its quoted price - moves mostly in line with expectations of long term dividend payment. There are myriad reasons why the expectation may become better or worse. A reduction in alcohol duty would guarantee a rise in distilling companies making whisky. An increase in VAT would hit retailers. More technically, a positive or negative assessment of a company's management ability could change investor sentiment enormously. So why do companies go through all this daily public examination and give shareholders votes to in extremis - remove directors from their positions of power? The simple answer is that "floating" - selling shares in their companies to anonymous investors raises millions of pounds to allow those same companies to expand into bigger and hopefully better businesses. Companies and shareholders alike have a responsibility to each other. Face Value (par Value) of Share All companies issue shares with a fixed denomination called the face value (or par value) of the share. This face value be indicated on the share certificate. Generally Indian shares has a face value of Rs. 10/What are the risks in buying shares? The risk in buying shares is the capital that you've actually put into that share, which can be lost at any time. This can be minimized by investing in different areas, such as blue chips, or buying on recommendation from a professional. Whatever capital you put into a share is always at risk, and it is advisable to take advice before proceeding.

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Definition of 'Technical Analysis'

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

'Technical Analysis'
Technical analysts believe that the historical performance of stocks and markets are indications of future performance.

Technical Analysis: The Use of Trend

One of the most important concepts in technical analysis is that of trend. The meaning in finance isn't all that different from the general definition of the term - a trend is really nothing more than the general direction in which a security or market is headed. Take a look at the chart below:

Figure 1 It isn't hard to see that the trend in Figure 1 is up. However, it's not always this easy to see a trend:

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Figure 2

There are lots of ups and downs in this chart, but there isn't a clear indication of which direction this security is headed. Formal Definition Trends are not always easy to see. In other words, defining a trend goes well beyond the obvious. In any given chart, you will probably notice that prices do not tend to move in a straight line in any direction, but rather in a series of highs and lows. In technical analysis, it is the movement of the highs and lows that constitutes a trend. For example, an uptrend is classified as a series of higher highs and higher lows, while a downtrend is one of lower lows and lower highs.

Figure 3

Figure 3 is an example of an uptrend. Point 2 in the chart is the first high, which is determined after the price falls from this point. Point 3 is the low that is established as the price falls from the high. For this to remain an uptrend each successive low must not fall below the previous lowest point or the trend is deemed a reversal.

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Types of Trend There are three types of trend: Up trends Downtrends Sideways/Horizontal Trends As the names imply, when each successive peak and trough is higher, it's referred to as an upward trend. If the peaks and troughs are getting lower, it's a downtrend. When there is little movement up or down in the peaks and troughs, it's a sideways or horizontal trend. If you want to get really technical, you might even say that a sideways trend is actually not a trend on its own, but a lack of a well-defined trend in either direction. In any case, the market can really only trend in these three ways: up, down or nowhere.

Trend Lengths Along with these three trend directions, there are three trend classifications. A trend of any direction can be classified as a long-term trend, intermediate trend or a short-term trend. In terms of the stock market, a major of several intermediate trends, which often move against the direction of the major trend. If the major trend is upward and there is a downward correction in price movement followed by a continuation of the uptrend, the correction is considered to be an intermediate trend. The short-term trends are components of both major and intermediate t trend is generally categorized as one lasting longer than a year. An intermediate trend is considered to last between one and three months and a near-term trend is anything less than a month. A long-term trend is composed

Trends. Take a look a Figure 4 to get a sense of how these three trend lengths might look.

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Figure 4 When analyzing trends, it is important that the chart is constructed to best reflect the type of trend being analyzed. To help identify long-term trends, weekly charts or daily charts spanning a five-year period are used by chartists to get a better idea of the long-term trend. Daily data charts are best used when analyzing both intermediate and short-term trends. It is also important to remember that the longer the trend, the more important it is; for example, a one-month trend is not as significant as a five-year trend. Trendlines A trendline is a simple charting technique that adds a line to a chart to represent the trend in the market or a stock. Drawing a trendline is as simple as drawing a straight line that follows a general trend. These lines are used to clearly show the trend and are also used in the identification of trend reversals.

As you can see in Figure 5, an upward trendline is drawn at the lows of an upward trend. This line represents the support the stock has every time it moves from a high to a low. Notice how the price is propped up by this support. This type of trendline helps traders to anticipate the point at which a stock's price will begin moving upwards again. Similarly, a downward trendline is drawn at the highs of the downward trend. This line represents the resistance level that a stock faces every time the price moves from a low to a high.

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Figure 5

Channels A channel, or channel lines, is the addition of two parallel trendlines that act as strong areas of support and resistance. The upper trendline connects a series of highs, while the lower trendline connects a series of lows. A channel can slope upward, downward or sideways but, regardless of the direction, the interpretation remains the same. Traders will expect a given security to trade between the two levels of support and resistance until it breaks beyond one of the levels, in which case traders can expect a sharp move in the direction of the break. Along with clearly displaying the trend, channels are mainly used to illustrate important areas of support and resistance.

Figure 6

Figure 6 illustrates a descending channel on a stock chart; the upper trendline has been placed on the highs and the lower trendline is on the lows. The price has bounced off of these lines several times, and has remained range-bound for several months. As long as the price does not fall below the lower line or move beyond the upper resistance, the rangebound downtrend is expected to continue.
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The Importance of Trend It is important to be able to understand and identify trends so that you can trade with rather than against them. Two important sayings in technical analysis are "the trend is your friend" and "don't buck the trend," illustrating how important trend analysis is for technical traders.

Technical Analysis: Support And Resistance Once you understand the concept of a trend, the next major concept is that of support and resistance. You'll often hear technical analysts talk about the ongoing battle between the bulls and the bears, or the struggle between buyers (demand) and sellers (supply). This is revealed by the prices a security seldom moves above (resistance) or below (support).

Figure 1 As you can see in Figure 1, support is the price level through which a stock or market seldom falls (illustrated by the blue arrows). Resistance, on the other hand, is the price level that a stock or market seldom surpasses (illustrated by the red arrows). Why Does it Happen? These support and resistance levels are seen as important in terms of market psychology and supply and demand. Support and resistance levels are the levels at which a lot of traders are willing to buy the stock (in the case of a support) or sell it (in the case of resistance). When these trendlines are broken, the supply and demand and the psychology behind the stock's movements is thought to have shifted, in which case new levels of support and resistance will likely be
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established. Round Numbers and Support and Resistance One type of universal support and resistance that tends to be seen across a large number of securities is round numbers. Round numbers like 10, 20, 35, 50, 100 and 1,000 tend be important in support and resistance levels because they often represent the major psychological turning points at which many traders will make buy or sell decisions. Buyers will often purchase large amounts of stock once the price starts to fall toward a major round number such as $50, which makes it more difficult for shares to fall below the level. On the other hand, sellers start to sell off a stock as it moves toward a round number peak, making it difficult to move past this upper level as well. It is the increased buying and selling pressure at these levels that makes them important points of support and resistance and, in many cases, major psychological points as well. Role Reversal Once a resistance or support level is broken, its role is reversed. If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role. For a true reversal to occur, however, it is important that the price make a strong move through either the support or resistance.

Figure 2 For example, as you can see in Figure 2, the dotted line is shown as a level of resistance that has prevented the price from heading higher on two previous occasions (Points 1 and 2). However, once the resistance is broken, it becomes a level of support (shown by Points 3 and 4) by propping up the price and preventing it from heading lower again. Many traders who begin using technical analysis find this concept hard to believe and don't realize that this phenomenon occurs rather frequently, even with some of the most well-known companies. For example, as you can see in Figure 3, this phenomenon is evident on the Wal-Mart Stores Inc. (WMT) chart between 2003 and 2006. Notice how the role of the $51 level changes from a strong level of support to a level of resistance.

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Figure 3 In almost every case, a stock will have both a level of support and a level of resistance and will trade in this range as it bounces between these levels. This is most often seen when a stock is trading in a generally sideways manner as the price moves through successive peaks and troughs, testing resistance and support.

The Importance of Support and Resistance Support and resistance analysis is an important part of trends because it can be used to make trading decisions and identify when a trend is reversing. For example, if a trader identifies an important level of resistance that has been tested several times but never broken, he or she may decide to take profits as the security moves toward this point because it is unlikely that it will move past this level. Support and resistance levels both test and confirm trends and need to be monitored by anyone who uses technical analysis. As long as the price of the share remains between these levels of support and resistance, the trend is likely to continue. It is important to note, however, that a break beyond a level of support or resistance does not always have to be a reversal. For example, if prices moved above the resistance levels of an upward trending channel, the trend has accelerated, not reversed. This means that the price appreciation is expected to be faster than it was in the channel. Being aware of these important support and resistance points should affect the way that you trade a stock. Traders should avoid placing orders at these major points, as the area around them is usually marked by a lot of volatility. If you feel confident about making a trade near a support or resistance level, it is important that you follow this simple rule: do not place orders directly at the support or resistance level. This is because in many cases, the price never actually reaches the whole number, but flirts with it instead. So if you're bullish on a stock that is moving toward an important support level, do not place the trade at the support level. Instead, place it above the support level, but within a few points. On the other hand, if you are placing stops or short selling, set up your trade price at or below the level of support.
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Technical Analysis: The Importance Of Volume To this point, we've only discussed the price of a security. While price is the primary item of concern in technical analysis, volume is also extremely important. What is Volume? Volume is simply the number of shares or contracts that trade over a given period of time, usually a day. The higher the volume, the more active the security. To determine the movement of the volume (up or down), chartists look at the volume bars that can usually be found at the bottom of any chart. Volume bars illustrate how many shares have traded per period and show trends in the same way that prices do.

Why Volume is Important Volume is an important aspect of technical analysis because it is used to confirm trends and chart patterns. Any price movement up or down with relatively high volume is seen as a stronger, more relevant move than a similar move with weak volume. Therefore, if you are looking at a large price movement, you should also examine the volume to see whether it tells the same story. Say, for example, that a stock jumps 5% in one trading day after being in a long downtrend. Is this a sign of a trend reversal? This is where volume helps traders. If volume is high during the day relative to the average daily volume, it is a sign that the reversal is probably for real. On the other hand, if the volume is below average, there may not be enough conviction to support a true trend reversal. Volume should move with the trend. If prices are moving in an upward trend, volume should increase (and vice versa). If the previous relationship between volume and price movements starts to deteriorate, it is usually a sign of weakness in the trend. For example, if the stock is in an uptrend but the up trading days are marked with lower volume, it is a sign that the trend is starting
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to lose its legs and may soon end.

When volume tells a different story, it is a case of divergence, which refers to a contradiction between two different indicators. The simplest example of divergence is a clear upward trend on declining volume. Volume and Chart Patterns The other use of volume is to confirm chart patterns. Patterns such as head and shoulders, triangles, flags and other price patterns can be confirmed with volume, a process which we'll describe in more detail later in this tutorial. In most chart patterns, there are several pivotal points that are vital to what the chart is able to convey to chartists. Basically, if the volume is not there to confirm the pivotal moments of a chart pattern, the quality of the signal formed by the pattern is weakened. Volume Precedes Price Another important idea in technical analysis is that price is preceded by volume. Volume is closely monitored by technicians and chartists to form ideas on upcoming trend reversals. If volume is starting to decrease in an uptrend, it is usually a sign that the upward run is about to end. Now that we have a better understanding of some of the important factors of technical analysis, we can move on to charts, which help to identify trading opportunities in prices movements.

Technical Analysis: Chart Types

There are four main types of charts that are used by investors and traders depending on the information that they are seeking and their individual skill levels. The chart types are: the line chart, the bar chart, the candlestick chart and the point and figure chart. In the following sections, we will focus on the S&P 500 Index during the period of January 2006 through May 2006. Notice how the data used to create the charts is the same, but the way the data is plotted and shown in the charts is different. Line Chart The most basic of the four charts is the line chart because it represents only the closing prices over a set period of time. The line is formed by connecting the closing prices over the time frame. Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices. However, the closing price is often considered to be the most important price in stock data compared to the high and low for the day and this is why it is the only value used in line charts.

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Figure 1: A line chart

Bar Charts The bar chart expands on the line chart by adding several more key pieces of information to each data point. The chart is made up of a series of vertical lines that represent each data point. This vertical line represents the high and low for the trading period, along with the closing price. The close and open are represented on the vertical line by a horizontal dash. The opening price on a bar chart is illustrated by the dash that is located on the left side of the vertical bar. Conversely, the close is represented by the dash on the right. Generally, if the left dash (open) is lower than the right dash (close) then the bar will be shaded black, representing an up period for the stock, which means it has gained value. A bar that is colored red signals that the stock has gone down in value over that period. When this is the case, the dash on the right (close) is lower than the dash on the left (open).

Figure 2: A bar chart Candlestick Charts

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The candlestick chart is similar to a bar chart, but it differs in the way that it is visually constructed. Similar to the bar chart, the candlestick also has a thin vertical line showing the period's trading range. The difference comes in the formation of a wide bar on the vertical line, which illustrates the difference between the open and close. And, like bar charts, candlesticks also rely heavily on the use of colors to explain what has happened during the trading period. A major problem with the candlestick color configuration, however, is that different sites use different standards; therefore, it is important to understand the candlestick configuration used at the chart site you are working with. There are two color constructs for days up and one for days that the price falls. When the price of the stock is up and closes above the opening trade, the candlestick will usually be white or clear. If the stock has traded down for the period, then the candlestick will usually be red or black, depending on the site. If the stock's price has closed above the previous days close but below the day's open, the candlestick will be black or filled with the color that is used to indicate an up day.

Figure 3: A candlestick chart

Point and Figure Charts The point and figure chart is not well known or used by the average investor but it has had a long history of use dating back to the first technical traders. This type of chart reflects price movements and is not as concerned about time and volume in the formulation of the points. The point and figure chart removes the noise, or insignificant price movements, in the stock, which can distort traders' views of the price trends. These types of charts also try to neutralize the skewing effect that time has on chart analysis.

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Figure 4: A point and figure chart When first looking at a point and figure chart, you will notice a series of Xs and Os. The Xs represent upward price trends and the Os represent downward price trends. There are also numbers and letters in the chart; these represent months, and give investors an idea of the date. Each box on the chart represents the price scale, which adjusts depending on the price of the stock: the higher the stock's price the more each box represents. On most charts where the price is between $20 and $100, a box represents $1, or 1 point for the stock. The other critical point of a point and figure chart is the reversal criteria. This is usually set at three but it can also be set according to the chartist's discretion. The reversal criteria set how much the price has to move away from the high or low in the price trend to create a new trend or, in other words, how much the price has to move in order for a column of Xs to become a column of Os, or vice versa. When the price trend has moved from one trend to another, it shifts to the right, signaling a trend change.

Conclusion Charts are one of the most fundamental aspects of technical analysis. It is important that you clearly understand what is being shown on a chart and the information that it provides. Now that we have an idea of how charts are constructed, we can move on to the different types of chart patterns. Technical Analysis: Chart Patterns A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. Chartists use these patterns to identify current trends and trend reversals and to trigger buy and sell signals.

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In the first section of this tutorial, we talked about the three assumptions of technical analysis, the third of which was that in technical analysis, history repeats itself. The theory behind chart patters 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% certainty where a security is headed. This creates 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. There are two types of patterns within this area of technical analysis, reversal and continuation. A reversal pattern signals that a prior trend will reverse upon completion of the pattern. A continuation pattern, on the other hand, signals that a trend will continue once the pattern is complete. These patterns can be found over charts of any timeframe. In this section, we will review some of the more popular chart patterns. Head and Shoulders This is one of the most popular and reliable chart patterns in technical analysis. Head and shoulders is a reversal chart pattern that when formed, signals that the security is likely to move against the previous trend. As you can see in Figure 1, there are two versions of the head and shoulders chart pattern. Head and shoulders top (shown on the left) is a chart pattern that is formed at the high of an upward movement and signals that the upward trend is about to end. Head and shoulders bottom, also known as inverse head and shoulders (shown on the right) is the lesser known of the two, but is used to signal a reversal in a downtrend.

Figure 1: Head and shoulders top is shown on the left. Head and shoulders bottom, or inverse head and shoulders, is on the right. Both of these head and shoulders patterns are similar in that there are four main parts: two shoulders, a head and a neckline. Also, each individual head and shoulder is comprised of a high and a low. For example, in the head and shoulders top image shown on the left side in Figure 1, the left shoulder is made up of a high followed by a low. In this pattern, the neckline is a level of
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support or resistance. Remember that an upward trend is a period of successive rising highs and rising lows. The head and shoulders chart pattern, therefore, illustrates a weakening in a trend by showing the deterioration in the successive movements of the highs and lows. Cup and Handle A cup and handle chart is a bullish continuation pattern in which the upward trend has paused but will continue in an upward direction once the pattern is confirmed.

Figure 2 As you can see in Figure 2, this price pattern forms what looks like a cup, which is preceded by an upward trend. The handle follows the cup formation and is formed by a generally downward/sideways movement in the security's price. Once the price movement pushes above the resistance lines formed in the handle, the upward trend can continue. There is a wide ranging time frame for this type of pattern, with the span ranging from several months to more than a year. Double Tops and Bottoms This chart pattern is another well-known pattern that signals a trend reversal - it is considered to be one of the most reliable and is commonly used. These patterns are formed after a sustained trend and signal to chartists that the trend is about to reverse. The pattern is created when a price movement tests support or resistance levels twice and is unable to break through. This pattern is often used to signal intermediate and long-term trend reversals.

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Figure 3: A double top pattern is shown on the left, while a double bottom pattern is shown on the right. In the case of the double top pattern in Figure 3, the price movement has twice tried to move above a certain price level. After two unsuccessful attempts at pushing the price higher, the trend reverses and the price heads lower. In the case of a double bottom (shown on the right), the price movement has tried to go lower twice, but has found support each time. After the second bounce off of the support, the security enters a new trend and heads upward. (For more in-depth reading, Triangles Triangles are some of the most well-known chart patterns used in technical analysis. The three types of triangles, which vary in construct and implication, are the symmetrical triangle, ascending and descending triangle. These chart patterns are considered to last anywhere from a couple of weeks to several months.

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Figure 4 The symmetrical triangle in Figure 4 is a pattern in which two trendlines converge toward each other. This pattern is neutral in that a breakout to the upside or downside is a confirmation of a trend in that direction. In an ascending triangle, the upper trendline is flat, while the bottom trendline is upward sloping. This is generally thought of as a bullish pattern in which chartists look for an upside breakout. In a descending triangle, the lower trendline is flat and the upper trendline is descending. This is generally seen as a bearish pattern where chartists look for a downside breakout. Flag and Pennant These two short-term chart patterns are continuation patterns that are formed when there is a sharp price movement followed by a generally sideways price movement. This pattern is then completed upon another sharp price movement in the same direction as the move that started the trend. The patterns are generally thought to last from one to three weeks.

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Figure 5 As you can see in Figure 5, there is little difference between a pennant and a flag. The main difference between these price movements can be seen in the middle section of the chart pattern. In a pennant, the middle section is characterized by converging trendlines, much like what is seen in a symmetrical triangle. The middle section on the flag pattern, on the other hand, shows a channel pattern, with no convergence between the trendlines. In both cases, the trend is expected to continue when the price moves above the upper trendline. Wedge The wedge chart pattern can be either a continuation or reversal pattern. It is similar to a symmetrical triangle except that the wedge pattern slants in an upward or downward direction, while the symmetrical triangle generally shows a sideways movement. The other difference is that wedges tend to form over longer periods, usually between three and six months.

Figure 6 The fact that wedges are classified as both continuation and reversal patterns can make reading signals confusing. However, at the most basic level, a falling wedge is bullish and a rising wedge is bearish. In Figure 6, we have a falling wedge in which two trendlines are converging in a downward direction. If the price was to rise above the upper trendline, it would form a continuation pattern, while a move below the lower trendline would signal a reversal pattern. Gaps A gap in a chart is an empty space between a trading period and the following trading period. This occurs when there is a large difference in prices between two sequential trading periods. For example, if the trading range in one period is between $25 and $30 and the next trading period opens at $40, there will be a large gap on the chart between these two periods. Gap price movements can be found on bar charts and candlestick charts but will not be found on point and figure or basic line charts. Gaps generally show that something of significance has happened in the security, such as a better-than-expected earnings announcement. There are three main types of gaps, breakaway, runaway (measuring) and exhaustion. A breakaway gap forms at the start of a trend, a runaway gap forms during the middle of a trend and an exhaustion gap forms near the end of a trend. (For more insight, read Playing The Gap.)

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Triple Tops and Bottoms Triple tops and triple bottoms are another type of reversal chart pattern in chart analysis. These are not as prevalent in charts as head and shoulders and double tops and bottoms, but they act in a similar fashion. These two chart patterns are formed when the price movement tests a level of support or resistance three times and is unable to break through; this signals a reversal of the prior trend.

Figure 7 Confusion can form with triple tops and bottoms during the formation of the pattern because they can look similar to other chart patterns. After the first two support/resistance tests are formed in the price movement, the pattern will look like a double top or bottom, which could lead a chartist to enter a reversal position too soon.

Rounding Bottom A rounding bottom, also referred to as a saucer bottom, is a long-term reversal pattern that signals a shift from a downward trend to an upward trend. This pattern is traditionally thought to last anywhere from several months to several years.

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Figure 8 A rounding bottom chart pattern looks similar to a cup and handle pattern but without the handle. The long-term nature of this pattern and the lack of a confirmation trigger, such as the handle in the cup and handle, makes it a difficult pattern to trade. We have finished our look at some of the more popular chart patterns. You should now be able to recognize each chart pattern as well the signal it can form for chartists. We will now move on to other technical techniques and examine how they are used by technical traders to gauge price movements.

Technical Analysis: Moving Averages Most chart patterns show a lot of variation in price movement. This can make it difficult for traders to get an idea of a security's overall trend. One simple method traders use to combat this is to apply moving averages. A moving average is the average price of a security over a set amount of time. By plotting a security's average price, the price movement is smoothed out. Once the day-today fluctuations are removed, traders are better able to identify the true trend and increase the probability that it will work in their favor. Types of Moving Averages There are a number of different types of moving averages that vary in the way they are calculated, but how each average is interpreted remains the same. The calculations only differ in regards to the weighting that they place on the price data, shifting from equal weighting of each price point to more weight being placed on recent data. The three most common types of moving averages are simple, linear and exponential. Simple Moving Average (SMA) This is the most common method used to calculate the moving average of prices. It simply takes the sum of all of the past closing prices over the time period and divides the result by the number of prices used in the calculation. For example, in a 10-day moving average, the last 10 closing prices are added together and then divided by 10. As you can see in Figure 1, a trader is able to make the average less responsive to changing prices by increasing the number of periods used in the calculation. Increasing the number of time periods in the calculation is one of the best ways to gauge the strength of the long-term trend and the likelihood that it will reverse.

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Figure 1 Many individuals argue that the usefulness of this type of average is limited because each point in the data series has the same impact on the result regardless of where it occurs in the sequence. The critics argue that the most recent data is more important and, therefore, it should also have a higher weighting. This type of criticism has been one of the main factors leading to the invention of other forms of moving averages. Linear Weighted Average This moving average indicator is the least common out of the three and is used to address the problem of the equal weighting. The linear weighted moving average is calculated by taking the sum of all the closing prices over a certain time period and multiplying them by the position of the data point and then dividing by the sum of the number of periods. For example, in a five-day linear weighted average, today's closing price is multiplied by five, yesterday's by four and so on until the first day in the period range is reached. These numbers are then added together and divided by the sum of the multipliers. Exponential Moving Average (EMA) This moving average calculation uses a smoothing factor to place a higher weight on recent data points and is regarded as much more efficient than the linear weighted average. Having an understanding of the calculation is not generally required for most traders because most charting packages do the calculation for you. The most important thing to remember about the exponential moving average is that it is more responsive to new information relative to the simple moving average. This responsiveness is one of the key factors of why this is the moving average of choice among many technical traders. As you can see in Figure 2, a 15-period EMA rises and falls faster than a 15-period SMA. This slight difference doesnt seem like much, but it is an important factor to be aware of since it can affect returns.

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Figure 2 Major Uses of Moving Averages Moving averages are used to identify current trends and trend reversals as well as to set up support and resistance levels. Moving averages can be used to quickly identify whether a security is moving in an uptrend or a downtrend depending on the direction of the moving average. As you can see in Figure 3, when a moving average is heading upward and the price is above it, the security is in an uptrend. Conversely, a downward sloping moving average with the price below can be used to signal a downtrend.

Figure 3 Another method of determining momentum is to look at the order of a pair of moving averages. When a short-term average is above a longer-term average, the trend is up. On the other hand, a long-term average above a shorter-term average signals a downward movement in the trend. Moving average trend reversals are formed in two main ways: when the price moves through a moving average and when it moves through moving average crossovers. The first common signal is when the price moves through an important moving average. For example, when the price of a security that was in an uptrend falls below a 50-period moving average, like in Figure 4, it is a sign that the uptrend may be reversing.
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Figure 4 The other signal of a trend reversal is when one moving average crosses through another. For example, as you can see in Figure 5, if the 15-day moving average crosses above the 50-day moving average, it is a positive sign that the price will start to increase.

Figure 5 If the periods used in the calculation are relatively short, for example 15 and 35, this could signal a short-term trend reversal. On the other hand, when two averages with relatively long time frames cross over (50 and 200, for example), this is used to suggest a long-term shift in trend.

Another major way moving averages are used is to identify support and resistance levels. It is not uncommon to see a stock that has been falling stop its decline and reverse direction once it hits the support of a major moving average. A move through a major moving average is often used as a signal by technical traders that the trend is reversing. For example, if the price breaks through the 200-day moving average in a downward direction, it is a signal that the uptrend is reversing.

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Figure 6 Moving averages are a powerful tool for analyzing the trend in a security. They provide useful support and resistance points and are very easy to use. The most common time frames that are used when creating moving averages are the 200-day, 100-day, 50-day, 20-day and 10-day. The 200day average is thought to be a good measure of a trading year, a 100-day average of a half a year, a 50-day average of a quarter of a year, a 20-day average of a month and 10-day average of two weeks. Moving averages help technical traders smooth out some of the noise that is found in day-to-day price movements, giving traders a clearer view of the price trend. So far we have been focused on price movement, through charts and averages. In the next section, we'll look at some other techniques used to confirm price movement and patterns.

Technical Analysis: Indicators And Oscillators

Indicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. Indicators are used as a secondary measure to the actual price movements and add additional information to the analysis of securities. Indicators are used in two main ways: to confirm price movement and the quality of chart patterns, and to form buy and sell signals. There are two main types of indicators: leading and lagging. A leading indicator precedes price movements, giving them a predictive quality, while a lagging indicator is a confirmation tool because it follows price movement. A leading indicator is thought to be the strongest during periods of sideways or non-trending trading ranges, while the lagging indicators are still useful during trending periods. There are also two types of indicator constructions: those that fall in a bounded range and those that do not. The ones that are bound within a range are called oscillators - these are the most common type of indicators. Oscillator indicators have a range, for example between zero and 100, and signal periods where the security is overbought (near 100) or oversold (near zero). Non50

bounded indicators still form buy and sell signals along with displaying strength or weakness, but they vary in the way they do this. The two main ways that indicators are used to form buy and sell signals in technical analysis is through crossovers and divergence. Crossovers are the most popular and are reflected when either the price moves through the moving average, or when two different moving averages cross over each other. The second way indicators are used is through divergence, which happens when the direction of the price trend and the direction of the indicator trend are moving in the opposite direction. This signals to indicator users that the direction of the price trend is weakening. Indicators that are used in technical analysis provide an extremely useful source of additional information. These indicators help identify momentum, trends, volatility and various other aspects in a security to aid in the technical analysis of trends. It is important to note that while some traders use a single indicator solely for buy and sell signals, they are best used in conjunction with price movement, chart patterns and other indicators. Accumulation/Distribution Line The accumulation/distribution line is one of the more popular volume indicators that measures money flows in a security. This indicator attempts to measure the ratio of buying to selling by comparing the price movement of a period to the volume of that period. Calculated:

Acc/Dist = ((Close - Low) - (High - Close)) / (High - Low) * Period's Volume This is a non-bounded indicator that simply keeps a running sum over the period of the security. Traders look for trends in this indicator to gain insight on the amount of purchasing compared to selling of a security. If a security has an accumulation/distribution line that is trending upward, it is a sign that there is more buying than selling. Average Directional Index The average directional index (ADX) is a trend indicator that is used to measure the strength of a current trend. The indicator is seldom used to identify the direction of the current trend, but can identify the momentum behind trends. The ADX is a combination of two price movement measures: the positive directional indicator (+DI) and the negative directional indicator (-DI). The ADX measures the strength of a trend but not the direction. The +DI measures the strength of the upward trend while the -DI measures the strength of the downward trend. These two measures are also plotted along with the ADX line. Measured on a scale between zero and 100, readings below 20 signal a weak trend while readings above 40 signal a strong trend. Aroon The Aroon indicator is a relatively new technical indicator that was created in 1995. The Aroon is a trending indicator used to measure whether a security is in an uptrend or downtrend and the magnitude of that trend. The indicator is also used to predict when a new trend is beginning.
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The indicator is comprised of two lines, an "Aroon up" line (blue line) and an "Aroon down" line (red dotted line). The Aroon up line measures the amount of time it has been since the highest price during the time period. The Aroon down line, on the other hand, measures the amount of time since the lowest price during the time period. The number of periods that are used in the calculation is dependent on the time frame that the user wants to analyze.

Figure 1 Aroon Oscillator An expansion of the Aroon is the Aroon oscillator, which simply plots the difference between the Aroon up and down lines by subtracting the two lines. This line is then plotted between a range of -100 and 100. The centerline at zero in the oscillator is considered to be a major signal line determining the trend. The higher the value of the oscillator from the centerline point, the more upward strength there is in the security; the lower the oscillator's value is from the centerline, the more downward pressure. A trend reversal is signaled when the oscillator crosses through the centerline. For example, when the oscillator goes from positive to negative, a downward trend is confirmed. Divergence is also used in the oscillator to predict trend reversals. A reversal warning is formed when the oscillator and the price trend are moving in an opposite direction. The Aroon lines and Aroon oscillators are fairly simple concepts to understand but yield powerful information about trends. This is another great indicator to add to any technical trader's arsenal. Moving Average Convergence The moving average convergence divergence (MACD) is one of the most well known and used indicators in technical analysis. This indicator is comprised of two exponential moving averages, which help to measure momentum in the security. The MACD is simply the difference between these two moving averages plotted against a centerline. The centerline is the point at which the two moving averages are equal. Along with the MACD and the centerline, an exponential moving average of the MACD itself is plotted on the chart. The idea behind this momentum indicator is to measure short-term momentum compared to longer term momentum to help signal the current direction of momentum.

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MACD= shorter term moving average - longer term moving average When the MACD is positive, it signals that the shorter term moving average is above the longer term moving average and suggests upward momentum. The opposite holds true when the MACD is negative - this signals that the shorter term is below the longer and suggest downward momentum. When the MACD line crosses over the centerline, it signals a crossing in the moving averages. The most common moving average values used in the calculation are the 26-day and 12day exponential moving averages. The signal line is commonly created by using a nine-day exponential moving average of the MACD values. These values can be adjusted to meet the needs of the technician and the security. For more volatile securities, shorter term averages are used while less volatile securities should have longer averages. Another aspect to the MACD indicator that is often found on charts is the MACD histogram. The histogram is plotted on the centerline and represented by bars. Each bar is the difference between the MACD and the signal line or, in most cases, the nine-day exponential moving average. The higher the bars are in either direction, the more momentum behind the direction in which the bars point while sell signals often occur when the MACD crosses below the signal.

Figure 2 Relative Strength Index The relative strength index (RSI) is another one of the most used and well-known momentum indicators in technical analysis. RSI helps to signal overbought and oversold conditions in a security. The indicator is plotted in a range between zero and 100. A reading above 70 is used to suggest that a security is overbought, while a reading below 30 is used to suggest that it is oversold. This indicator helps traders to identify whether a securitys price has been unreasonably pushed to current levels and whether a reversal may be on the way.

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Figure 3 The standard calculation for RSI uses 14 trading days as the basis, which can be adjusted to meet the needs of the user. If the trading period is adjusted to use fewer days, the RSI will be more volatile and will be used for shorter term trades. On-Balance Volume The on-balance volume (OBV) indicator is a well-known technical indicator that reflects movements in volume. It is also one of the simplest volume indicators to compute and understand. The OBV is calculated by taking the total volume for the trading period and assigning it a positive or negative value depending on whether the price is up or down during the trading period. When price is up during the trading period, the volume is assigned a positive value, while a negative value is assigned when the price is down for the period. The positive or negative volume total for the period is then added to a total that is accumulated from the start of the measure. It is important to focus on the trend in the OBV - this is more important than the actual value of the OBV measure. This measure expands on the basic volume measure by combining volume and price movement.

Stochastic Oscillator The stochastic oscillator is one of the most recognized momentum indicators used in technical analysis. The idea behind this indicator is that in an uptrend, the price should be closing near the highs of the trading range, signaling upward momentum in the security. In downtrends, the price should be closing near the lows of the trading range, signaling downward momentum. The stochastic oscillator is plotted within a range of zero and 100 and signals overbought conditions above 80 and oversold conditions below 20. The stochastic oscillator contains two lines. The first line is the %K, which is essentially the raw measure used to formulate the idea of
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momentum behind the oscillator. The second line is the %D, which is simply a moving average of the %K. The %D line is considered to be the more important of the two lines as it is seen to produce better signals. The stochastic oscillator generally uses the past 14 trading periods in its calculation but can be adjusted to meet the needs of the user.

Figure 4

Technical Analysis: Conclusion This introductory section of the technical analysis tutorial has provided a broad overview of technical analysis. Tends to repeat itself. Technicians believe that all the information they need about a stock can be found in its charts. Technical traders take a short-term approach to analyzing the market. Criticism of Here's a brief summary of what we've covered: Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity. It is based on three assumptions: 1) the market discounts everything, 2) price moves in trends and 3) history technical analysis stems from the efficient market hypothesis, which states that the market price is always the correct one, making any historical analysis useless. One of the most important concepts in technical analysis is that of a trend, which is the general direction that a security is headed. There are three types of trends: uptrends, downtrends and sideways/horizontal trends. A trendline is a simple charting technique that adds a line to a chart to represent the trend in the market or a stock. A channel, or channel lines, is the addition of two parallel trendlines that act as strong areas of support and resistance.

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Support is the price level through which a stock or market seldom falls. Resistance is the price level that a stock or market seldom surpasses. Volume is the number of shares or contracts that trade over a given period of time, usually a day. The higher the volume, the more active the security. A chart is a graphical representation of a series of prices over a set time frame. The time scale refers to the range of dates at the bottom of the chart, which can vary from decades to seconds. The most frequently used time scales are intraday, daily, weekly, monthly, quarterly and annually. The price scale is on the right-hand side of the chart. It shows a stock's current price and compares it to past data points. It can be either linear or logarithmic. There are four main types of charts used by investors and traders: line charts, bar charts, candlestick charts and point and figure charts. A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. There are two types: reversal and continuation. A head and shoulders pattern is reversal pattern that signals a security is likely to move against its previous trend. A cup and handle pattern is a bullish continuation pattern in which the upward trend has paused but will continue in an upward direction once the pattern is confirmed. Double tops and double bottoms are formed after a sustained trend and signal to chartists that the trend is about to reverse. The pattern is created when a price movement tests support or resistance levels twice and is unable to break through. A triangle is a technical analysis pattern created by drawing trendlines along a price range that gets narrower over time because of lower tops and higher bottoms. Variations of a triangle include ascending and descending triangles. Flags and pennants are short-term continuation patterns that are formed when there is a sharp price movement followed by a sideways price movement. The wedge chart pattern can be either a continuation or reversal pattern. It is similar to a symmetrical triangle except that the wedge pattern slants in an upward or downward direction. A gap in a chart is an empty space between a trading period and the following trading period. This occurs when there is a large difference in prices between two sequential trading periods. Triple tops and triple bottoms are reversal patterns that are formed when the price movement tests a level of support or resistance three times and is unable to break through, signaling a trend reversal. A rounding bottom (or saucer bottom) is a long-term reversal pattern that signals a shift from a downward trend to an upward trend. A moving average is the average price of a security over a set amount of time. There are three types: simple, linear and exponential. Moving averages help technical traders smooth out some of the noise that is found in dayto-day price movements, giving traders a clearer view of the price trend. Indicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. There are two types: leading and lagging. The accumulation/distribution line is a volume indicator that attempts to measure the ratio of buying to selling of a security.
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The average directional index (ADX) is a trend indicator that is used to measure the strength of a current trend. The Aroon indicator is a trending indicator used to measure whether a security is in an uptrend or downtrend and the magnitude of that trend. The Aroon oscillator plots the difference between the Aroon up and down lines by subtracting the two lines. The moving average convergence divergence (MACD) is comprised of two exponential moving averages, which help to measure a security's momentum. The relative strength index (RSI) helps to signal overbought and oversold conditions in a security. The on-balance volume (OBV) indicator is one of the most well-known technical indicators that reflects movements in volume. The stochastic oscillator compares a security's closing price to its price range over a given time period.

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CHAPTER III COMPANY PROFILE

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COMPANY PROFILE: LAST MILE SOLUTIONS

About Last Mile Solutions:

We live in a dynamically changing world! The world has become so dynamic that it has become very difficult to plan ahead of time without the proper knowledge. Planning a career or your personal finance has become just that. It has become synonymous to shooting a moving target. At Last Mile Solutions, we do extensive research to obtain the knowledge so that we can advice our customers to plan ahead of time. We live in a busy world! Our lives have become very busy these days. A lot of that is due to work pressures, commuting, and personal commitments. We are so busy these days that we cannot spend all our time on planning our childrens career or managing our finances for a better future. In fact, future planning is something we do not think about on a constant basis. At Last Mile Solutions, we spend all our time on managing our customers career and finances. We live in a dishonest world! These days we get a lot of phone calls regarding insurance policies, mutual funds or real estate. Almost all of these callers want to make a sale with complete disregard to our needs. At Last Mile Solutions, we give the best solutions to our customers that will benefit our customers. We work for our customer and our customer only. We shield our customer from the telephone/internet/media hawkers. With innovative solutions such as Career Transformation and Financial Management, we at Last Mile Solutions, provide benefit to our customer by BRIDGING THE GAP between our world now and the future

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world where we want to be. Our motto is to Grow along with our customer. Our success is rated on how successful our customers are.

Company Vision:
Provide customer centric solutions in the areas of careers and finance services.

Company Motto:
Provide unbiased solutions in a biased world.

Management Team:
Vijay Pentareddy Founder & CEO Vijay has over 18+ years of experience in technology industry and provided solutions to customers in 40+ countries. The passion for teaching and finances has transformed into Last Mile Solutions. Dr. I.G. Kannan Coach Dr. Kannan has variety of teaching experience in organizational and human resource management. He catered his services to many of the top companies in India and abroad in transforming organizations in this ever changing environment. He currently took retirement from teaching but has been part of the media in the areas of spirituality and teaching. Mr. Soumitro Ghosh, Director Aldrich Pharma (Strategic Advisor) Mr. Ghosh currently works for Aldrich Pharma as a director but has held several positions through his 25+ years of career across the globe. He is also the member panel for IEEE in instrumentation and has been guest of honor lecturer in MIT and other premium institutes. The company is also supported with several advisors from premium institutes across the globe and several professors in India from premium universities.

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Background:
Last Mile provides solutions in the areas of Career and Finance. Vijay Pentareddy, Founder & CEO has spent close to 14+ years outside of India and worked with variety of customers in 40+ countries. Last Mile has board of advisors from reputed companies and universities across the globe which helps it to give right solution to all its customers. Last Mile has its satellite offices in USA and UK to cater customers in these regions. Career Solutions Services

Career Track Career Direction Career Planning Career Transformation Career Management

Financial Solutions Services

Financial Planning Kids Financial Planning Financial Management

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CHAPTER IV DATA ANALYSIS, INTERPRETATION & FINDINGS

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In the analysis performance of the nifty 50 stocks is considered. The project study uses the following steps in finding value stocks from the list of 10 Step I Identify 10 Stocks Which are in Nifty Stock Exchange . Step II Taking their share values to calculate Support & Resistance level Step III Calculate high, low and close of each of the 10 stocks Step IV Pointing it on the Graphs Step V watching whether the stock is performing according to this values Step VI Identify the stocks which are performing according to this analysis The stocks that I chosen for Calculating the Support & Resistance are as follows.. The 10 stocks which are performing well during the last year and are considered as better stocks for Applying Technical Analysis of Support And Resistance level are shown below.

1. ABB Ltd: ELECTRICAL EQUIPMENT 2. BHEL: Bharath Heavy Electrical Limited 3.BPCL : Bharat Petroleum Corporation Ltd 4.HDFC: HOUSING AND FINANCE DEVELOPMENT CORPORATION OF INDIA 5.HINDALCO: 6.HEROMOTOCO: HEROMOTORS 7.SBIN: STATE BANK OF INDIA 8.INFY: INFOSYS 9.DRREDDY : Dr.REDDY S LABARATORIES 10.ITC: INDIAN TOBACO COMPANY
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11.RCOM: RELIANCE COMMUNICATIONS LTD. 12.LT: LARSEN & TOUBRO Ltd

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1. ABB Ltd: ELECTRICAL EQUIPMENT

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2. BHEL

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3. BPCL

BPCL

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4.HDFC

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5.HINDALCO

HINDALCO

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6.HEROMOTOCO

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7.SBIN

SBIN

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8.INFOSYS

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9.DR. REDDYS LAB

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10.RANBAXY

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11.ITC

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12.RCOM

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13.LT: LARSEN & T

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Identify STOCKS As shown in the analysis 10 stocks from the nifty, each company stock price, correction in the stock price and the valuation of quarterly revenue and net profit. It is clear that all stocks are not a value just because of correction but only a handful look very attractive because of the correction supported by the company revenues and profitability. Clearly ABB, Reliance Cap, Tata Power does not provide any value with decrease in revenue and profitability. If we look at the RCap, there is substantial drop in revenue and very poor profitability which justifies the decrease in price of 52%. The other stocks namely BPCL, HERO HONDA, MARUTI SUZUKI look interesting because of increased revenue and decent profitability but each company has its own issues. BPCL being dependent on Govt. of India of any price increase and the auto companies are usually cyclical in nature with dependence on the festive seasons. There is some value but so compelling to buy the stocks at these levels. Its clear that Axis, L&T, PNB provide very good value for investors to buy as the revenue are consistent along with good profitability. There is also the uptrend seen in these stocks, with corrections of 27.7%, 32.1% and 29.5% it provides wonderful opportunity for investors to pick them up for investment. These stocks are bound to bounce back in the near term and falls in this project study VALUE STOCKS. FINDINGS:

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The study identified 14 stocks in Nifty which have corrected during last year. The corrections range from 27% - 52% in stock price

There are 4 stocks namely DLF, UNITECH, CIPLA and RANBAXY eliminated from the list of 14 stocks because of sector being in bad shape and internal issues such as mergers.

There are 10 stocks corrected during last one year eligible for analysis to identify the winning VALUE STOCKS

There are certain stocks such as MARUTI or BPCL or HERO HONDA which are eliminated because of cyclical in nature or too much dependence on Govt. policies

The study found that there are 3 stocks which provide wonderful value at current price levels, these are L&T, Axis and Punjab National Bank.

Investor could enter at current levels in these stocks for an appreciation of 20-30% It can contain more than 5 points

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CHAPTER V CONCLUSION, SUGGESTIONS

SUGGESTIONS: 1. Investor can apply VALUE INVESTMENT Model to select stocks 2. At any given time investors can find VALUE STOCKS 3. Analyze stocks which have correct and use steps shown in the analysis to identify the VALUE STOCKS 4. Patience is required while investing in VALUE STOCKS as it takes time for appreciation 5. Individuals can make 20-30% returns by selecting value stocks, if this done every year decent returns can be expected 6. Diversify into multiple stocks rather than buying one VALUE STOCK

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CONCLUSION: The study looked at different investment strategies, stock exchanges, nifty and then selecting the stocks which have corrected substantially during past one year. The Value Investment Model is used to identify VALUE stocks. The study found that there are potential 14 stocks out which 4 stocks were eliminated for different reasons. The remaining 10 stocks are evaluated using past one year quarterly reports and evaluating the revenue sales along with net profit. The study found 3 such stocks which have very good value for investment as shown in the interpretation and findings. Value Investment Model provides a wonderful model for individuals to make investment and make gains.

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CHAPTER 6 BIBLIOGRAPHY
IBLIOGRAPHY:
http://ezinearticles.com/?What-Is-NSE-NIFTY-Indexing?&id=5919407 http://www.nse-india.com/ http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=28461 http://www.articlesbase.com/investing-articles/what-is-nifty-50-and-nifty-index-2207406.html http://www.bseindia.com/about/introbse.asp http://finance.indiamart.com/india_business_information/bse.html http://www.caclubindia.com/forum/what-is-bombay-stock-exchange-bse--131944.asp http://www.differencebetween.net/miscellaneous/difference-between-bse-and-nifty/ http://www.sharemarketbasics.com/what-is-a-share.htm http://www.guardian.co.uk/money/2001/jul/18/shares.investinginshares1 http://www.keralabanking.com/html/what_is_the_risk_of_investing_.html http://www.moneyextra.com/guides/buying-shares-8-035230.html http://www.videojug.com/expertanswer/is-trading-for-me-2/what-are-the-risks-in-buying-shares http://www.essortment.com/value-investing-18125.html http://www.investopedia.com/terms/v/valueinvesting.asp http://www.stocktradingtogo.com/2009/04/07/benefits-risks-relative-value-investing/ http://www.numeraire.com/risk.htm

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http://nse2rich.com/list-of-nifty-50-stocks-in-nse-along-with-equity-capital/

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