analysis of stocks-new

8/12/2019 Analysis of Stocks-new

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SONA COLLE+E OF TECHNOLO+Y

SALEM -)- %%

Department of Master of Business Administration

PROJECT /ORK

JULY *%(%

This is to certify that the project work titled

ANALYSIS OF STOCKS RECOMMENDED BY

INDIA INFOLINE LTD

is the bonafide record of project work done by

HARISH KUMAR.S

%&'%%('%)%*'

Of MBA( Master of Business Administration) during the year !"!# !""$

################## ###########################

%roject &uide 'ead of the Department

ubmitted for the %roject i*a# oce e+amination held on

########################## #######################

,nternal -+aminer -+ternal -+aminer


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TABLE OF CONTENTS

CHAPTER NO. TITLE PA+E NO.

2, T O3 TAB2-2, T O3 /'A0T

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"$" ABO5T T'- T5D6 "

"$ ABO5T T'- ,4D5 T06 7

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$8 3,4D,4& A4D ,43-0-4/- 7

/O4/25 ,O4 7?

B,B2,O&0A%'6 9!

LIST OF TABLES

T0b1e

Numbe"P0"ti2u10"! P0 e N#.

"$ 0ate of 0eturn 9

$ Beta#Market 0isk


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7$ -arnings %er hare =

9$ %rice to earnings ratio 8

LIST OF CHARTS

T0b1e

Numbe"P0"ti2u10"! P0 e N#.

"$ Mo*ing a*erage of A// 2td ?

$ Mo*ing a*erage of Maruti 5dyog 2td 7!


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7$ Mo*ing a*erage of ,dea /ellular 2td 7"

9$ 0elati*e strength of A// 2td 7


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The role of Analysis is to pro*ide information to the market$ An

efficient market relies on information a lack of information creates inefficiencies that

result in stocks being misrepresented (o*er or under *alued)$ Analysts use their

e+pertise and spend a lot of time analy ing a stock. its industry and peer group to pro*ide earnings and *aluation estimates$ 0esearch is *aluable because it fills

information gaps so that each indi*idual in*estor does not need to analy e e*ery

stock$ This di*ision of labour makes the market more efficient$

THE FIELD OF SECURITY ANALYSIS IS BASED ON THREE

ASSUMPTIONS

"$ The market discounts e*erything

$ %rice mo*es in trends

7$ 'istory tends to repeat itself

These assumptions are e+plained in detail below

THE MARKET DISCOUNTS E3ERYTHIN+

A major criticism of security analysis is that it only considers price

mo*ements ignoring the fundamental factors of the company$ 'owe*er security

analysis assumes that. at any gi*en time. a stockCs price reflects e*erything that has or

could affect the company including fundamental factors$ ecurity analysts belie*e that

the companyCs fundamentals. along with broader economic factors and market

psychology. are all priced into the stock. remo*ing the need to actually consider these

factors separately$ This only lea*es the analysis of price mo*ements. which securitytheory *iews as a product of the supply and demand for a particular stock in the

market$

PRICE MO3ES IN TRENDS


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,n security analysis. price mo*ements are belie*ed to follow trends$ This

means that after a trend has been established. the future price mo*ement is more

likely to be in the same direction as the trend then to be against it$ Most important

security trading strategies are based on this assumption$

HISTORY TENDS TO REPEAT ITSELF

Another important idea in ecurity analysis is that history tends to repeat

itself. mainly in term of price mo*ement$ The repetiti*e nature of price mo*ements is

attributed to market psychology. in other words. Market participants tend to pro*ide a

consistent reaction in similar market stimuli o*ertime$ ecurity analysis uses chart

patterns to analysis market mo*ements and understands trends$ Although many of thecharts ha*e been used for more than "!! years. they are still belie*ed to be rele*ant

because they illustrate pattern in price mo*ement that often repeat them$

,n security analysis. it is the mo*ement of the highs and lows constitutes a

trend$ 3or e+ample an 5ptrend is classified as a series of higher highs and higher

lows. while a down trend is one of lower lows and lower highs$

SELECTION OF SHARES$

%roper selections of shares are of two types #

"$ Fu4d0me4t01 0401y!i!

,t in*ol*es in depth study and analysis of the prospecti*e company whose shares we

want to buy. the industry it operates in and the o*erall market scenario$ ,t can be done

by reading and assessing the companyCs annual reports. research reports published by

eEuity research houses. research analysis published by the media and discussions with

the companyCs management or the other e+perienced in*estors$

$Te254i201 0401y!i!


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,t in*ol*es studying the prices mo*ement of the stock o*er an e+tended period of time

in the past to judge the trend of the future price mo*ement$ ,t can be done by software

programs. which generate stock prices charts indicating upward$ Downward and

sideways mo*ements of the stock price o*er the stipulated time period$

/HEN TO BUY 6 SELL SHARES$

:ith high *olatility pre*ailing in the market. major price fluctuations in eEuities are

not uncommon$ Therefore. apart from ascertaining FwhichC stock to buy or sell. it

becomes eEually important to consider FwhenC to buy or sell$ Any in*estor should be

aware of the fact where all the in*estor is following i$e$. Buy Low. Sell High $ That

means we should buy stocks at a low price and sell them at a high price$

ABOUT THE E7UITY MARKET

,ndian tock -+changes are a structured marketplace for the proper conduct of

trading in company stocks and other securities$ There are 7 recogni ed stock

e+changes in ,ndia. including the O*er the /ounter -+change of ,ndia for pro*iding

trading access to small and new companies$ The main ser*ices of the ,ndian tock

-+changes all o*er the country are to pro*ide nation#wide ser*ices to in*estors and to

facilitate the issue and redemption of securities and other financial instruments$

A stock market (also known as a stock e+change) is intricately interwo*en in

the fabric of a nationCs economic life$ :ithout a stock e+change the sa*ings of the

community. the signs of the economic progress and producti*e efficiency would

remain underutili ed$ The task of mobili ation and allocation of sa*ings could be

attempted in the old days by a much less speciali ed institution than the stocke+change$ But as businesses and industry e+panded and the economy assumed more

comple+ nature. the need for permanent finance arose$ -ntrepreneurs needed money

for long term whereas in*estors demanded liEuidity i$e$ the facility to con*ert their

in*estments into cash at any gi*en time$ The answer was a ready market for

in*estments and this was how the stock e+change came into e+istence$

The stock e+change means anybody of indi*iduals. whether incorporated or not.

constituted for purpose of regulating or controlling the business of buying. selling ordealing in securities$


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a) hares. scripCs. stocks. bonds. debentures stock or other marketable securities of a

like nature in or of any incorporated company or other body corporate$

b)&o*ernment securities$

c) 0ights or interests in securities$

,n your neighbourhood. you probably ha*e a supermarket that sells groceries$

The reason you go the supermarket is because e*erything you need to run your home

is a*ailable under one roof$ ,tGs far more con*enient than ha*ing to make "! stops at

different stores$ The tock -+change is a supermarket for stocks$ The stock e+change

is like a big room where e*eryone who wants to buy and sell shares can go to conducttheir transactions$

The -+change makes buying and selling easy$ 6ou do not ha*e to actually

tra*el to the tock -+changeH rather. you can call a stock broker who does business

with the -+change. and he or she will go there on your behalf to buy or sell your

stock$ :ith an -+change in place. you can buy and sell shares instantly$

The tock -+change has an interesting side effect$ Because all the buying and selling

is concentrated in one place. it allows the price of a stock to be known e*ery second

of the day$ Therefore. in*estors can watch as a stockGs price fluctuates based on news

from the company. media reports. economic news and a range of other factors$ mart

buyers and sellers take all of these factors into account before making decisions$

The stock e+change has two main functions$

The first function is to pro*ide companies with a way of issuing shares to

people who want to in*est in the company$

The second function of the stock market. related to the first. is to pro*ide a

*enue for the buying and selling of shares$

NSE$


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The 4ational tock -+change of ,ndia 2imited has genesis in the report of the

'igh %owered tudy &roup on -stablishment of 4ew tock -+changes$ ,t

recommended promotion of a 4ational tock -+change by financial institutions (3,s)

to pro*ide access to in*estors from all across the country on an eEual footing$ Basedon the recommendations. 4 - was promoted by leading 3inancial ,nstitutions at the

behest of the &o*ernment of ,ndia and was incorporated in 4o*ember "?? as a ta+#

paying company unlike other stock e+changes in the country$

On its recognition as a stock e+change under the ecurities /ontracts

(0egulation) Act. "?


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demutualised entity incorporated under the pro*isions of the /ompanies Act. "?


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,n*estment Banking. &o,d bonds and other small sa*ings instruments$

A network of o*er .

and towns across ,ndia facilitates the smooth acEuisition and ser*icing of a

large customer base$ All our offices are connected with the corporate office in

Mumbai with cutting edge networking technology$ The group caters to a

customer base of about a million customers. o*er a *ariety of mediums *i $

online. o*er the phone and at our branches$

A/ARDS AND CREDIENTIALS$

,,32 recently recei*ed an in#principle appro*al for ecurities Trading and

/learing memberships from ingapore -+change ( &I) pa*ing the way for,,32 to become the first ,ndian brokerage to get a membership of the &I$

,,32 also recei*ed membership of the /olombo tock -+change becoming the

first foreign broker to enter ri 2anka$

,,32 owns and manages the website. www$indiainfoline$com. which is one of

,ndiaCs leading online destinations for personal finance. stock markets.

economy and business$

,,32 has been awarded the FBest Broker. ,ndiaC by 3inance Asia and the FMost

impro*ed brokerage. ,ndiaC in the Asia Money polls$

,ndia ,nfoline was also adjudged as F3astest &rowing -Euity Broking 'ouse #

2arge firmsC by Dun 1 Bradstreet$


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THE TEAM$

BOARD OF DIRECTORS$

M". Ni"m01 J0i4

/hairman 1 Managing Director. ,ndia ,nfoline

2td$

M". R. 3e480t0"0m04

-+ecuti*e Director. ,ndia ,nfoline 2td$

M". Ni1e!5 3i80m!ey

,ndependent Director. ,ndia ,nfoline 2td

M". S0t P01 K50tt0"

4on -+ecuti*e Director. ,ndia ,nfoline 2td$

M". K"04ti Si450

,ndependent Director. ,ndia ,nfoline 2td$

M". A. K. Pu"90"

,ndependent Director . ,ndia ,nfoline 2td

,nstitutional -Euities '$4emkumar ,n*estment Banking Ajit Menon. Donald DG ou a


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/onsumer 3inance Apul 4ayyar 0etail Broking 4andip aidya:ealth Management Karan Bhagat,nternational Operations Bharat %arajiaOffshore Asset Management Deepesh %andey,nsurance Distribution Mukesh Kumar ingh

IIFL:S PHILOSOPHY ON CORPORATE +O3ERNANCE$

,,32( ,ndia ,nfoline) is committed to placing the ,n*estor 3irst. by

continuously stri*ing to increase the efficiency of the opersations as well as the

systems and processes for use of corporate resources in such a way so as to ma+imi e

the *alue to the stakeholders$ The group aims at achie*ing not only the highest

possible standards of legal and regulatory compliances. but also of effecti*e

management$

,,32 / 0 ,4,T,AT, -

,n line with our *ision to be the Fmost respected company in the financial ser*ices

spaceC. we recogni e the importance of contributing to and sustaining social

transformation$ :ith this end in mind. we ha*e setup the ,,32 foundation. which will

work for the support and upliftment of the underpri*ileged$

(.; RE3IE/ ON LITERATURE

0OB 0-4 ( !!>). L:'AT , TO/K B-TA /A2/52AT,O4

ABSTRACT

tock beta calculation measures a stockCs *olatility. the degree to which its

price sways and mo*es as related to the o*erall market$ ,t can measure the risk of a

particular in*estment and or sector in relationship to the current market

trends conditions$ A stock Beta /alculation of " indicates a strong correlation

between an indi*idual stock and the market direction$ A stock beta calculation of

greater then " indicates that the price of the gi*en security tends to mo*e in a manner

more *olatile then the market$ Meanwhile. a stock Beta calculation of less then "

means that a stock security or sector mo*es in a manner less *olatile then the market$

'6AM 54D'A0 1 0AM K5MA0 KAKA4,. I20, (MA0/'. !!=).L%0O3,T,4& 30OM T-/'4,/A2 A4A26 , ,4 ,4D,A4 -@5,T6 MA0K-T5 ,4& MO ,4& A -0A&- N


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growth and corporate capital e+penditure. along with political stability and impro*ed

fund a*ailability$ According to the go*ernment.the ,ndian economy is poised to grow

at 8$ in !!?#"!. >$< in !"!#"" and ? in !""#" $ 3or !!?#"!. the total

in*estment in infrastructure is estimated at 8$< of &D%$ The go*ernment aims toincrease this to 8$?9 and >$78 in !"!#"" and !""#" respecti*ely$

A4,2 -T'. ( !"!) L,4D,A4 ,430A T05/T50- -/TO0#%A ,4& T'-:A6 3O0 TOMO00O:C &0O:T'N

ABSTRACT

The ,nfrastructure sector in ,ndia is trans*ersing through one of its interesting

phases today$ ,nfrastructure projects. such as urban public transport systems likemetros. e+pressways. superior Euality highways. flyo*ers. and worldclass airports will

enable us achie*e our dreams# howe*er these projects need to be en*isioned with a

long term perspecti*e$ There is a huge opportunity for other allied sectors to

participate in the infrastructure sectorCs growth across ,ndia$ A huge gap in demand

and supply of power. additionally plagued by the losses in transmission and

distribution pro*ides opportunity to augment this reEuirement


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CHAPTER *

MAIN THEME OF THE PROJECT

*.( NEED OF THE STUDY

The study is based on e*aluating performance of stocks recommended by

L,ndia infoline 2tdN$

*.* SCOPE FOR THE STUDY

The present study. conducted within 9! days. sought to study the performance

of the stocks recommended by ,ndia ,nfoline 2td$ The study is an outcome of a

research and is offered as tool to understand performance$ To understand the study

3undamental and Technical analysis tools are used$

*.) OBJECTI3ES OF THE STUDY

Any in*estorCs *ision is a long term in*estment ad short term in*estment and

gets high returns by bearing high risk$ 3or that objecti*e need to be climbed

successfully an so objecti*es of this project are.

") To find out whether there is a difference in recommended share price and actual

price$

) To analysis the performance of the stocks that was recommended

7) To know how analysis was carried out$

9) To know the outcome of stocks$

*.; LIMITATIONS OF THE STUDY

"$ The study is constrained only to ,ndia ,nfoline 2td$

$ The organi ation has its own rules 1 regulations where the project

suggestions can be less considered$

7$ ,n*estment in ecurities carry risk so in*estment in -Euity is also carrying

risk on the basis of the market$


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Most of the data used for the study is limited to a period of 9! days so the analysis

results will be only for short term$

*. RESEARCH METHODOLO+Y

SECONDARY DATA$

econdary Data is one which is already a*ailable to the researcher in any

form$ These include books. internet. company brochures. the company

website. journal articles. studies and research work carried out in the past. etc$

TOOLS USED FOR ANALYSIS$

3or e*aluating the performance of -@5,T6. the key dimensions are as follows

Accounting tools

FUNDAMENTAL ANALYSIS

ECONOMIC ANALYSIS

ystematic approach to determining the optimum use of scarce resources . in*ol*ing

comparison of two or more alternati*es in achie*ing a specific objecti*e under the

gi*en assumptions and constraints $ ,t takes into account the opportunity costs of

resources employed and attempts to measure in monetary terms the pri*ate and social

costs and benefits of a project to the community or economy

INDUSTRY ANALYSIS

A market assessment tool designed to pro*ide a business with an idea of the

comple+ity of a particular industry $ ,ndustry analysis in*ol*es re*iewing the

economic . political and market factors that influence the way the industry de*elops $

Major factors can include the power wielded by suppliers and buyers . the condition of

competitors . and the likelihood of new market entrants$

COMPANY ANALYSIS

R0te #< Retu"4
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tion.htmlhttp://www.businessdictionary.com/definition/competitor.htmlhttp://www.businessdictionary.com/definition/systematic-approach.html


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The gain or loss on an in*estment o*er a specified period. e+pressed as a percentage

increase o*er the initial in*estment cost$ &ains on in*estments are considered to

be any income recei*ed from the security plus reali ed capital gains$

E0"4i4 ! =e" !50"e

The portion of a companyGs profit allocated to each outstanding share of common

stock$ -arnings per share ser*es as an indicator of a companyGs profitability$

P"i2e t# e0"4i4 ! "0ti#

A *aluation ratio of a companyGs current share price compared to its per#share

earnings$

/alculated as

M0"8et >01ue =e" !50"eP

E0"4i4 ! =e" !50"e

3or e+ample. if a company is currently trading at Q97 a share and earnings o*er the

last " months were Q"$?< per share. the % - ratio for the stock would be $!#? $

S/OT A401y!i!

St"e4 t5!

2arge domestic market

ustainable labor cost ad*antage

/ompetiti*e auto component *endor base

&o*ernment incenti*es for manufacturing plants

trong engineering skills in design etc

/e084e!!e!

2ow labor producti*ity

'igh interest costs and high o*erheads make the productionuncompetiti*e


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arious forms of ta+es push up the cost of production

2ow in*estment in 0esearch and De*elopment

,nfrastructure bottleneck

O==#"tu4itie!

/ommercial *ehicles / ban on o*erloading

'ea*y thrust on mining and construction acti*ity

,ncrease in the income le*el

/ut in e+cise duties

T5"e0t!

0ising input costs

0ising interest rates

/ut throat competition

I4di04 Te1e2#m I4du!t"y

Te1e2#m I4du!t"y i4 I4di0 has a big market potentiality and is a fast growing

sector$ &o*ernment of ,ndia is eager to reconstitute this telecom industry by

enacting effecti*e policies for more in*estments from foreign companies.

which results in a *ery competiti*e and deregulated market in the world$

P#1i2ie! #< te1e2#m i4du!t"y i4 I4di0 $ &o*ernment of ,ndia implemented the

unified access licensing regime. which enables basic and cellular mobile

ser*ice to use any modern technology$ ,n "??8. Telecom 0egulatory Authority

of ,ndia (T0A,) was formed to facilitate the growth of the telecom sector in

,ndia$

M0?#" !e">i2e! 04d m0"8et =#te4ti01ity #< Te1e2#m i4du!t"y i4 I4di0

Telecommunication sector in ,ndia is primarily subdi*ided into two

segments.


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3i+ed er*ice %ro*ider (3 %s)

/ellular er*ices$

Telecom industry in ,ndia constitutes some essential telecom ser*ices like

telephone. radio. tele*ision and ,nternet$

Telecom industry in ,ndia is specifically emphasi ing on latest technologies

& M( &lobal ystem for Mobile /ommunications).

/DMA(/ode Di*ision Multiple Access).

%M0T (%ublic Mobile 0adio Trunking er*ices).

3i+ed 2ine and :22(:ireless 2ocal 2oop )$

,ndia has a prospering market specifically in & M mobile ser*ice and the

number of subscribers is growing *ery fast$

- Although ,ndiaGs tele#density has impro*ed from under 9 in March !!" to

o*er 7= by the end of March !!?. we are still way behind other de*eloping

nations$

/ellular telephony has emerged as the fastest growing segment in the ,ndian

telecom industry$

The mobile subscriber base (& M and /DMA combined) has grown fromunder m at the end of 36!! to touch 7?" m at the end of March !!?

(compounded annual growth of nearly >! during this nine year period)$

As far as broadband connections ( P figure in May !!>$

The subscriber base stood at $< m in May !!8$

conomic perspecti*e of telecom industry in ,ndia

A>e"0 e Re>e4ue Pe" U!e" ARPU $ 5sed most in the conte+t of a telecom

operatorGs subscriber base. A0%5 sometimes offers a useful measure of growth

performance$ A0%5 le*els get tougher to sustain competition. and increased churn

e+erts a downward pressure$ A0%5 for data ser*ices ha*e been slowly increasing$

-arnings can be a tricky issue when analy ing telecom companies$ Many

companies ha*e little or no earnings to speak of$ Analysts. as a result. are often forcedto turn to measures besides price#earnings ratio(% -) to gauge *aluation$ %rice#to#sales


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ratio(price sales) is the probably simplest of the *aluation approaches take the market

capitali ation of a company and di*ide it by sales o*er the past " months$ 4o

estimates are in*ol*ed$ The lower the ratio. the better$ %rice sales is a reasonably

effecti*e alternati*e when e*aluating telecom companies that ha*e no earningsH it isalso useful in e*aluating mature companies$

-B,TDA pro*ides a way for in*estors to gauge the profit performance and

operating results of telecom companies with large capital e+penses$ /ompanies that

ha*e spent hea*ily on infrastructure will generally report large losses in their earnings

statements$ -B,TDA helps determine whether that new multimillion dollar fiber optic

network. for instance. is making money each month. or losing e*en more$ By

stripping away interest. ta+es and capital e+penses. it allows in*estors to analy ewhether the baseline business is profitable on a regular basis$

,n*estors should be mindful of cash flow$ -B,TDA gi*es an indication of

profitability. whereas cash flow measures how much money is actually flowing

through the telecom operator at any gi*en period of time$ ,s the company making

enough to repay its loans and co*er working capitalU A telecom company can be

recording rising profits year#by#year while its cash flow is ebbing away$ /ash flow is

the sum of new borrowings plus money from any share issues. plus trading profit. plusany depreciation$ Telecom operators freEuently ha*e to ring up substantial debt to

finance capital e+penditure$ 4et debt -B,TDA pro*ides a useful comparati*e

measure$ Again. the lower the ratio. the more comfortably the operator can handle its

debt obligations$

COMPANY ANALYSIS

Ne9! "e10ti4 t# t5e 2#m=04ie!


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C#m=04y 301ue

A// 2td #


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*.-.* Bet0 M0"8et "i!8

C#m=04y 301ue

A// 2td #!$!9=?

,dea /ellular 2td !$!7!8>

INFERENCES

The beta *alue of A// 2td is negati*e which implies when the market raises by

*alue of " the stock price reduces by #!$!9=?$

The beta *alue of ,dea cellular 2td is positi*e and less than " which implies when

the market raises by *alue of " the stock price raises by !$!7!8>$


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*.-.) E0"4i4 ! =e" !50"e

C#m=04y 301ue

A// 2td ">$="

Maruti 5dyog 2td "=$""

,dea /ellular 2td !$="

INFERENCES

The -% of all the abo*e company has been reduced compared to same

Euarter of the pre*ious year$


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*.-.; P"i2e t# e0"4i4 ! "0ti#

C#m=04y 301ue

A// 2td 98$">97!?

INFERENCES

According to the %- ratio of A// 2td people are willing to pay a premium of

98 abo*e its earings$

According to the %- ratio of Maruti 5dyog 2td people are willing to pay a

premium of >= abo*e its earings$

According to the %- ratio of ,dea /ellular 2td people are willing to pay a

premium of ?8 abo*e its earings$


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*.-. P"#?e2ted e0"4i4 ! t# "#9t5

C#m=04y 301ue

A// 2td #!$!8"?8" 98>

INFERENCES

According to the abo*e figures of A// 2td the earings growth compared to the

same Euarter of pre*ious year it has been reduced by !$!8"?8" 98>$


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Te254i201 A401y!i!

*.-.- M#>i4 0>e"0 e!E =#4e4ti01 m#>i4 0>e"0 e

INFERENCE

As shown in the abo*e chart of A// 2td$. it can be seen that on 9 th of ;une

markets ha*e shown an o*erbought position which denotes that it is the right time for

the in*estors to book their profits$

As shown in the abo*e chart of A// 2td$. it can be seen that on "7 th of ;uly

markets ha*e shown an o*ersold position which denotes that it is the right time for the

in*estors to enter the market$


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INFERENCE

As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on "th

of ;uly markets ha*e shown an o*erbought position which denotes that it is the right

time for the in*estors to book their profits$

As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on "? th

of ;une markets ha*e shown an o*erbought position which denotes that it is the right

time for the in*estors to enter the market$


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INFERENCE

As shown in the abo*e chart of ,dea cellular 2td$. it can be seen that on "< th of

;une markets ha*e shown an o*ersold position which denotes that it is the right time

for the in*estors to enter the market$

As shown in the abo*e chart of ,dea cellular 2td$. it can be seen that on " th of

;uly markets ha*e shown an o*erbought position which denotes that it is the right



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*.-. Re10ti>e !t"e4 t5 0401y!i!

INFERENCE

As shown in the abo*e chart of Acc 2td$. it can be seen that on "? th. 7" th of

;une !"! and " st of ;uly !"! the 0 , has gone abo*e 8! which indicates that it is

o*er*alued and it may pullback$

As shown in the abo*e chart of Acc 2td$. it can be seen that from " st ;uly to

"9 th of ;uly !"! the 0 , has gone below 7! le*el which indicates that it is

under*alued and it may take an uptrend$


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INFERENCE

As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on "8 th.

7rd . 7! th of ;une !"! and ? th of ;uly !"! the 0 , has gone abo*e 8! which indicates

that it is o*er*alued and it may pullback$

As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on =ht

;uly and from "9 th ;uly to nd ;uly !"! the 0 , has gone below 7! le*el which

indicates that it is under*alued and it may take an uptrend$


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INFERENCE

As shown in the abo*e chart of ,dea cellular 2td$. it can be seen that on "= th of

;une !"! to 7 rd of ;uly !"! often the 0 , has gone abo*e 8! which indicates that it

is o*er*alued and it may pullback$

As shown in the abo*e chart of ,dea cellular 2td$. it can be seen that on "> th

;une !"! the 0 , has gone below 7! le*el which indicates that it is under*alued and

it may take an uptrend$


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*. FINDIN+ AND INFERENCE

R0te #< Retu"4

,n case of A// 2td the 0ate of return has gone done by < $ The ,n*estement

would ha*e depriciated$

,n case of Maruti 5dyog 2td the rate of return has gone up by "$"7 which is a

lower return for a period of 9! days$

,n case of ,dea /ellular 2td the rate of return has gone up by "9 which is

compariti*ely a high return$

Bet0 M0"8et "i!8

The beta *alue of A// 2td is negati*e which implies when the market raises by

*alue of " the stock price reduces by #!$!9=?$

The beta *alue of ,dea cellular 2td is positi*e and less than " which implies when

the market raises by *alue of " the stock price raises by !$!7!8>$

E0"4i4 ! =e" !50"e

The -% of all the abo*e company has been reduced compared to same Euarter of the

pre*ious year$

P"i2e t# e0"4i4 !

According to the %- ratio of A// 2td people are willing to pay a premium of

98 abo*e its earings$

According to the %- ratio of Maruti 5dyog 2td people are willing to pay a

premium of >= abo*e its earings$


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According to the %- ratio of ,dea /ellular 2td people are willing to pay a

premium of ?8 abo*e its earings$

P"#?e2ted e0"4i4 ! t# "#9t5

According to the abo*e figures of A// 2td the earings growth compared to thesame Euarter of pre*ious year it has been reduced by !$!8"?8" 98>$

M#>i4 0>e"0 e 0401y!i!

As shown in the abo*e chart of A// 2td$. it can be seen that on 9 th of ;une

markets ha*e shown an o*erbought position which denotes that it is the right time

for the in*estors to book their profits$

As shown in the abo*e chart of A// 2td$. it can be seen that on "7 th of ;uly

markets ha*e shown an o*ersold position which denotes that it is the right time for

the in*estors to enter the markert$

As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on " th of




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As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on "? th of

;une markets ha*e shown an o*erbought position which denotes that it is the right


As shown in the abo*e chart of ,dea cellular 2td$. it can be seen that on "< th of

;une markets ha*e shown an o*ersold position which denotes that it is the right


As shown in the abo*e chart of ,dea cellular 2td$. it can be seen that on " th of



Re10ti>e !t"e4 t5 0401y!i!

As shown in the abo*e chart of Acc 2td$. it can be seen that on "? th. 7" th of

;une !"! and " st of ;uly !"! the 0 , has gone abo*e 8! which indicates

that it is o*er*alued and it may pullback$

As shown in the abo*e chart of Acc 2td$. it can be seen that from " st ;uly to

"9 th of ;uly !"! the 0 , has gone below 7! le*el which indicates that it is

under*alued and it may take an uptrend$

As shown in the abo*e chart of Maruti udyog 2td$. it can be seen that on "8 th.

7rd . 7! th of ;une !"! and ? th of ;uly !"! the 0 , has gone abo*e 8! which

indicates that it is o*er*alued and it may pullback$


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Due to market uncertainty the stocks that are not performing well now may

raise up in the near future as Technical analysis$

3undamental Analysis must always backed up by technical analysis and it is

better to do a personal technical analysis at point of in*estment $

).* CONCLUSION

The study tries to pro*e the accuracy of the predictions or recommendationsmade by ,ndia ,nfoline 2td$

There are number of institutions conducting eEuity research in the country are

following their own ideology to carry on the research therefore their results are

bound to differ according different perception of different in*estors$

The selected tools used for the fundamental and technical analysis though are

limited try to throw light on the performance of the stocks and the findings arenot in correlation


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with the recommendation of ,ndia ,nfoline 2td$

BIBLIO+RAPHY

B##8!$

P04dey . I .M Fi4042i01 M040 eme4t

A"ti21e!$

+ el*am. M$. anitha. $. 1 Babu ( !!9). L A study on financial health of

cement industry#LV score analysisN. The Management Accountant. ;uly.

ol$7?. 4o$8. pp


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$ Bagechi K ( !!9). L Accounting 0atios 3or 0isk -*aluationN. The

Management Accountant. ;uly. ol$7?. 4o$8. pp

analysis of stocks-new

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