industry internship project report presentation (iifl)
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Industry Internship Project ReportPresentation
on “TECHNICAL ANALYSIS OF NIFTY”
BY:-
Debashish Sahoo
Institute For Technology And Management( Warangal)
PGDM( 2013-15 )
Roll No.:- 201311917
Faculty Guide:- Dr. S. Sirisha And Prof. Mubasher Ahmed
Company:- India Infoline Ld.
Technical Analysis
Technical analysis is a method of predicting price movements and future
market trends by studying charts of historical data. The initial data for atechnical analysis are prices: the highest and the lowest prices, the price ofopening and closing within a certain period of time, and the volume oftransactions.
The Pillars of Technical Analysis:
1) Price
2) Time
3) Volume
4) Sentiments
Objective of Study
• To understand the trends in the stock prices
• when to enter the market and when to exit.
• Developing suitable model comprising ofvarious technical indicators.
Collection of data:-Secondary Data ( From NIFTY Index)
Steps involved in technical analysis
• Look for quick results.
• Read charts to spot price trends
• Understanding the concepts of support and
resistance.
• Pay attention to the volume of trading.
• Use moving averages to smooth out minor price
fluctuations
• Use oscillators and indicators to support what the
price movements are telling
Advantage of Technical Analysis
• Short Term trends of a stock can be easilyidentifiable.
• Good for short term investors.
• Provide suggestions regarding selection onas script.
• Results are very much accurate.
Limitations of Technical Analysis
• Analyst Bias
• Open to Interpretation
• Too Late
• Always Another Level
• Trader's Remorse:- When trader thinks that asupport or resistance level have been broken.
DOW THEORY
1. The market has three movements
• The "main movement", primary movement for1year and more, It can be bullish or bearish.
• The "medium swing", secondary reaction orintermediate reaction may last from ten days tothree months.
• The "short swing" or minor movement varieswith opinion from hours to a month or more.
2. Market trends have three phases have
three phases
• The accumulation phase (phase 1)
• Rapid price change occurs (phase 2)
• Investor distributes its wealth in marketmarket (phase 3)
3. The stock market discounts all news.
4. Stock market averages must confirm each other.
5. Trends are confirmed by volume.
6. Trends exist until definitive signals prove thatthey have ended
Company Profile
• IIFL was founded in 1995 by Mr. Nirmal Jain (Chairmanand Managing Director) as an independent businessresearch and information provider.
• A network of 4000 business locations.
• spread over more than 900 cities and towns acrossIndia.
• Global Reach:- Singapore, Dubai, New York, Mauritius,Hong Kong, United Kingdom, Switzerland.
• Date of listing 17th May 2005.
Organizational Structure of IIFL
Chairman
President- Retail Brokering
Vice President
Assistant Vice President
Senior Manager
Branch Manager (Ramesh Joseph)
Relationship Manager
Charts Patterns
Double Top chart
Cup And Handel
Head and Shoulder
Comparison of NIFTY and SENSEX
An overview of 4 months performance of
NIFTY
Date Last Open High Low Vol. Change %
Sep 01, 2014 7964.80 7990.35 8180.20 7841.80 2.93M 0.13%
Aug 01, 2014 7954.35 7662.50 7968.25 7540.10 2.48M 3.02%
Jul 01, 2014 7721.30 7629.00 7840.95 7422.15 3.32M 1.44%
Jun 01, 2014 7611.35 7264.05 7700.05 7239.50 3.62M 5.28%
Highest: 8180.20 Lowest: 7239.50 Difference: 940.70 Average: 7812.95 Change %: 10.16
Technical Strength:
• MOVING AVERAGE CONVERGENCE DIVERGENCE
Indicator Analysis Signal Chart
MACD MACD: 183.0 and Signal Line: 169.0. According to
MACD analysis, nifty is technically strong.
8.0 NIFTY MACD
Chart
SimpleMoving
Average
According to simple moving average analysis, nifty is in a
strong uptrend. Major support levels are 7396.83,
7031.15, 6345.559.
10.0 NIFTY Simple
Moving Average
Chart
Exponential
Moving
Average
According to exponential moving average analysis, nifty is
in a
strong uptrend. Major support levels are 7389.795,
7088.41, 6483.634.
10.0 NIFTY Exponential
Moving
Average Chart
CONCLUSIONS
• Technical analysis is a method of evaluating securities by analyzing thestatistics generated by market activity. It is based on three assumptions:
• 1) Market discounts everything, 2) Price moves in trends and 3) Historytends to repeat itself.
• Technical traders take a short-term approach to analyzing the market.
• A trend line is a simple charting technique that adds a line to a chart torepresent the trend in the market or a stock.
• Volume is the number of shares or contracts that trade over a given periodof time, usually a day. The higher the volume, the more active the security.
RECOMMENDATIONS for investors
• Stock markets are highly volatile. so before investingpeople should take a close look of technicalsoundness of the stock.
• Technical Analysis is a very effective tool indetermining profit levels as well as stop-losses and itshould ideally be used along with FundamentalAnalysis.
• A word of caution-Technical Analysis is not infallible,as it is linked to the approach of the analyst.
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