A

SUMMER TRAINING REPORT

ON

“TECHNICAL ANALYSIS OF COMMODITY MARKET TAKING GOLD

AND CRUDE OIL”

AT

JAINAM SHARE AND SECURITIES PVT LTD, SURAT

SUBMITTED BY

SOYEB R. JINDANI

(MBA SEM III, 2008-2010 BATCH)

UNDER SUPERVISION OF

VARUN DHINGRA

(LECTURER)

JUNE-JULY 2009

BHAGAWAN MAHAVIR COLLEGE OF MANAGEMENT

NEW CITY LIGHT ROAD, SR NO 149,

AHEAD ASHIRWAD VILLA, B/H HEENA BANGLOWS,

BHARTHANA, VESU, SURAT-395017

1

DECLARATION

I’m Soyeb Jindani, a student of BHAGAWAN MAHAVIR COLLEGE OF

MANAGEMENT, Which is affiliated to Veer Narmad South Gujarat

University, Surat hereby declare that the project entitled “TECHNICAL

ANALYSIS OF COMMODITY MARKET TAKING GOLD AND CRUDE

OIL” at Jainam Share and Security pvt ltd., is the original work done

by me and the information provided in the study is authentic to the best

of my knowledge. This study report has not been submitted to any other

institution or university for the award or any other degree and will not be

submitted in near future.

This report is based on my personal opinion hence cannot be

referred to legal purpose.

(Soyeb Jindani)

Date:

2

ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in

the success of any venture. In the present world of competition and

success, training is like a bridge between theoretical and practical

working; willingly I prepared this particular Project. First of all I would

like to thank the supreme power, the almighty god, who is the one who

has always guided me to work on the right path of my life. I would like to

thank Miss Shital Mehta for granting me permission to undertake the

training in their esteemed organization.

I express my sincere thanks to Dr. A.S.Abani. (Director), Varun

Dhingra (Lecturer) & others faculty members of M.B.A. department,

for the valuable suggestion and making this project a real successful.

I also thanks to Mr. Biranj Patel (Sr. Executive of HR), Chetna

Bhandari (Marketing Manager) for their time-to-time guidance and

support in completing the project. I also thank the other staff of Jainam

who devoted their valuable time by helping me to complete my project.

Last but not least, my sincere thanks to my parents and friends

who directly or indirectly helped me to bring this project into the final

shape.

Soyeb Jindani

DATE:

3

Executive Summary

“A good broker system must be able to cope with an extremely

complex and dynamic environment.”

The microstructure of the stock market in which brokers work is

highly dynamic and volatile. Many stocks are available to be bought and

sold, each exhibiting its own patterns and characteristics that are highly

unpredictable. With so many options and considerations that need to be

taken into account, it is an extremely arduous task for a broker to

investigate aspects of the stock market and consistently provide effective

advice to their clients.

The study is done at stock broking firm to understand nature and

functions of the firm. Especially when the prices are being high and low

within few seconds so at that time each core functions of firm affects the

work environment of whole culture. Commodities are being traded since

long years. To understand the predications about prices of commodities

like Gold, Crude Oil, and other precious metals, the researcher has done

study on technical analysis.

For the purpose of the study, researcher has collected data of

Gold M and Crude Oil from January 2007 to July 2009.

4

After the data analysis it has been predicted that Gold M is still in

bearish condition and at this time the investor should not enter into

trading he or she should wait till it goes on bullish level. And about Crude

Oil it has been analyzed that in near future prices of Crude Oil will be

high so it is time of bull and so investor can take a advantage of it.

In short, technical analysis is a forward-looking, graphical

assessment tool that anticipates bi-directional value-levels of a price-

series over a given time horizon.

This research will able to understand empower traders and

investors with a basic knowledge of charting, trading-skills, and decision-

making abilities.

Secondly, to set such a value, one must ask to what degree the

source of analysis is reliable, accurate, and consistent with one's specific

trading preferences, and tolerance for risk.

Finally, one must know to what extent one can expect to

consistently profit from such analysis.

5

Index:

Chapte

r No.

Particulars Page No.

1 Introduction to training

1.1 Introduction to training 8

1.2 Objective of Study 9

1.3 Benefit of Study 10

2 Introduction to industry 11-34

3 About company

3.1 Company profile 35-43

3.2 About department 44-73

4 Theoretical framework 74-107

5 Research methodology

5.1 Objective of the study 109

5.2 Problem identification 109

6

5.3 Assumption and benefits of study 110

5.4 Research design 111

5.5 Sampling 111

5.6 Research tool used 111

5.7 Data collection 111

5.8 Limitation of the study 112

6 Data analysis 113-127

7 Findings, conclusion and suggestion 128-131

Bibliography 132

Annexure 133-141

7

CHAPTER-1CHAPTER-1

INTRODUCTION TOINTRODUCTION TO

TRAININGTRAINING

8

1.1 Introduction to Training.

This project report is prepared as result of summer training of M.B.A. (Full time) which was of 8 weeks from 21st May 2009 to 15th July 2009. The researcher has taken training at JAINAM SHARES CONSULTANT PVT LTD which is simply related with stock market. Hence it is Stock broking firm which deals with different market like Equity, Commodity, and Derivatives etc.

1.2 Objective of Study:

To gain knowledge about different market such as capital market and its industry which is helpful in completing this report effectively.

To gain the knowledge about stock market and it operation.

To become familiarize with organization, which help in applying theoretical concepts into practical routine

To understand the working system of different department.

To get an experience of working environment.

9

To become part of professionalism.

To understand technical terms and its applications in study.

To understand of working of different departments and its connectivity with whole organization.

To gain the detailed knowledge of core functions like Marketing, Human Resources, Finance, Research.

To know how the scripts are being traded in Equity market, Derivatives, Commodity market.

1.3 Benefit of Study:

The research has gained some of the following benefit due to this study.

Got the knowledge about stock market and its operations.

Learnt about different scrip.

Learnt about equity and derivatives and how the prices are being volatile.

The working of sensex and nifty its rules and regulation.

How to invest in different security and at what time investor should exit or enter in trading.

How the top management is handling whole organization structure.

10

Learnt some technical terms of stock market and its application in trading.

As researcher has done detailed study on technical analysis of commodity market so researcher has gained knowledge about technical terms of it.

And moreover the study of technical analysis helped to understand the price movements of commodities and how to predict price for near future.

Even because of the study uses of charts how to make different kinds of charts and after analysis of charts what would be interpretation of it the all things can be answered after the detailed study.

CHAPTER-2CHAPTER-2

INTRODUCTION OFINTRODUCTION OF

INDUSTRYINDUSTRY

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Introduction to the Industry:

Financial System:

The economy of each and every country in based on the sound

financial system which helps in production, capital and economic growth

by encouraging savings habits, mobilizing savings from house holds and

other segments and allocating savings into productive usage such as

trade, manufacture, commerce etc.

Thus, financial system provides bridge for surplus of the savers to

be utilized by the deficit spending units.

The financial system includes three basic elements:

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Financial Market:

Market Purpose Players Regulatory

Money market Short Term ( from one day to one year)

Banks,FIs,FIIs,Corporates,MF,Govt.

RBI

Capital market

Long Term (above one year)

Corporates,Banks,FIs,FIIs, MF,Individuals

SEBI

Forex market Short Term Long Term Foreign

Banks, Corporates,authorized forex

RBI

13

Financial

System

Financial Markets

Financial Intermediaries

Financial Instruments

Credit Money

Market Market

Forex Capital

Market market

currency funds dealers

Credit market Short Term Long Term Rupee funds

Banks,FIs,Corporates

RBI

Financial Intermediaries

Development Financial InstitutionsCommercial BanksNon banking financial InstitutionsInsurance Organisation

Financial Instruments

Equity SharesPreference SharesBondsDebentures etc…

Structure of Capital Market:

14

Primary Market:

15

Capital market

Equity market

Debt market

Primary segment

Secondary segment

Primary market

-public issues

-private placement

Secondary market

Derivatives market

-exchange traded

Futures and options

Domestic

Market

NSE, BSE,

OTCEI, ISE,

Regional Stock

Exchanges

Index Stock

International market

For corporate enterprises, expansion, modernization,

reorganization, and mergers require long-term funds to be raised

through the issue of shares, debentures and bonds, all of which find their

way to the secondary market through the new issue market. The

term does not necessarily refer to newly issued stocks, although initial

public offerings are the most commonly known new issues.  Essentially,

the function of the New Issue market lies in facilitating the transfer of

investible funds to corporate organization. Initial issue of shares by new

enterprises may substantially account for volume of activities in the new

issue market and it has been so during the eighties and earlier at various

times.

Secondary Market:

The market where securities are traded after they are initially

offered in the primary market. Most trading is done in the secondary

market. To explain further, it is trading in previously issued financial

instruments. An organized market for securities examples are the New

York Stock Exchange(NYSE), Bombay Stock Exchange(BSE), National

Stock Exchange(NSE),bond market, over the counter markets, residential

mortgage loans, governmental guaranteed loans etc.

Role and Functions of Stock Exchange:

1. Established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities.

2. Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities.

3. Provides a physical location for buying and selling securities that have been listed for trading on that exchange.

4. Establishes rules for fair trading practices and regulates the trading activities of its members according to those rules.

5. The exchange itself does not buy or sell the securities, nor does it set prices for them.

6. The exchange assures that no investor will have an undue advantage over other market participants.

7. This means that orders are executed and transactions are settled in the fastest possible way.

8. Investors make informed and intelligent decision about the particular stock based on information.

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9. Listed companies must disclose information in timely, complete and accurate manner to the Exchange and the public on a regular basis.

History of Stock Market:

The stock market has a long history. According to French historian Fernand Braudel, in 11th century Cairo, Islamic and Jewish traders had already established every form of trade association.

They were knowledgeable about credit and payment methods. Braudel's suggestions negate the opinion that the Italians contrived these methods later.

In 12th Century France, the courratiers de change dealt with managing and regulating the debts of agricultural communities on behalf of the banks. They can be referred to as the first brokers, because they only dealt with debts. The people of Flanders and the neighboring counties also implemented this idea, and Beurzen was soon introduced in Ghent and Amsterdam.

In late 13th Century, commodity traders in Bruges gathered inside the house of a man named Van Der Beurse. In 1309, they were named the "Brugse Beurse," and institutionalized their unofficial meetings.

The Bankers of Venice started trading in government securities in the middle of the 13th century. In 1351, the Government of Venice prohibited the spread of rumors done with the intention of decreasing government fund prices. During the 14th century, the Bankers of Pisa, Verona, Genoa, and Florence also started trading in government securities. This was possible because these independent city-states were governed by a group of influential citizens, and not by a duke.

Later, joint stock companies were started in the Netherlands. This provided shareholders the opportunities to invest in business ventures and get a contribution of their profits or losses. In 1602, the Dutch East India Company issued their first shares through the Amsterdam Stock Exchange, and it was the first company to issue stocks and bonds. A stock exchange in London started trading stocks in 1688. The Amsterdam Stock Exchange (or Amsterdam Beurs) was the first stock exchange to introduce continuous trading in the earlier part of the 17th Century. According to Murray Sayle, the Dutch were the originators of short selling, option trading, debt-equity swaps, merchant banking, unit trusts, and other speculative instruments. Stock markets are currently present in every developed and most developing countries, but the biggest stock markets are present in the United States, Canada, China (Hong Kong), India, UK, Germany, France, and Japan.

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World History of Market:

History of stock market trading in the United States can be traced

back to over 200 years ago. Historically, The colonial government

decided to finance the war by selling bonds, government notes promising

to pay out at profit at a later date. Around the same time private banks

began to raise money by issuing stocks, or shares of the company to raise

their own money. This was a new market, and a new form of investing

money, and a great scheme for the rich to get richer. A little further on

the history timeline, more specifically in 1792, a meeting of twenty four

large merchants resulted into a creation of a market known as the New

York Stock Exchange(NYSE). At the meeting, the merchants agreed to

meet daily on Wall Street to daily trade stocks and bonds.

Further in history, in the mid-1800s, United States was

experiencing rapid growth. By 1900, millions of dollars worth of stocks

were traded on the street market. In 1921, after twenty years of street

trading, the stock market moved indoors.

History brought us the Industrial Revolution, which also played a

role in changing the face of the stock market. New form of investing

began to emerge when people started to realize that profits could be

made by re-selling the stock to others who saw value in a company. This

was the beginning of the secondary market, known also as the

speculators market. This market was more volatile than before, because

it was now fueled by highly subjective speculation about the company’s

future.

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This was the pretext for appearance of such stock market giants as

NYSE. History books tell us that the reason the NYSE is so highly

regarded among stock markets was primarily because they only trade in

the very large and well-established companies. It acted as a more stable

investment alternative, for people interested in throwing their capital

into the stock market arena. The smaller companies making up the stock

market formed into what eventually became the American Stock

Exchange (AMEX). Contrary to the 80-year old history, today the NYSE,

AMEX, NASDAQ and hundreds of other exchange markets make a

significant contribution to the national and global economy.

The growth in the number of market participants led the

government to decide that more regulation of the stock market was

needed to protect those investing in stock. History was made in 1934,

when following the Great Crash, Congress passed the Securities and

Exchange Act. This act formed the Securities and Exchange Commission

(SEC), which, through the rules set out by the act and succeeding

amendments, regulates American stock market trading with the help of

the exchanges. It also includes overseeing the requirements for a

company to issue stock shares to the public and ensures that the

company offers relevant information to potential investors.

Although historically, investing in stocks was a “hobby” for the

rich, an average person too soon came to realize the value of the

investing in stocks vs. traditional assets like land or a house.

Most stock markets around the world have undergone a process of steady evolution and have changed in relation to the process known as ‘globalization’. With information technology changing the way we do business all over the world it was but natural for stock markets to also integrate their functions in an IT enabled electronic environment. This has not just revolutionized the way companies raise money for expansion or new ventures but also brought about a level of transparency and ease in the functional areas of trade in shares that was never seen before.

The most famous stock markets of the world are:

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London Stock Exchange New York Exchange

Tokyo Stock Exchange

Hong Kong Stock Exchange

Singapore Stock Exchange

New York Stock Exchange

The New York Stock Exchange is a physical exchange, also

referred to as a listed exchange — only stocks listed with the exchange

may be traded. Orders enter by way of exchange members and flow down

to a floor broker, who goes to the floor trading post specialist for that

stock to trade the order. The specialist's job is to match buy and sell

orders using open outcry. If a spread exists, no trade immediately takes

place--in this case the specialist should use his/her own resources (money

or stock) to close the difference after his/her judged time. Once a trade

has been made the details are reported on the "tape" and sent back to

the brokerage firm, which then notifies the investor who placed the

order. Although there is a significant amount of human contact in this

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process, computers play an important role, especially for so-called

"program trading".

The NASDAQ is a virtual listed exchange, where all of the trading

is done over a computer network. The process is similar to the New York

Stock Exchange. However, buyers and sellers are electronically matched.

One or more NASDAQ market makers will always provide a bid and ask

price at which they will always purchase or sell 'their' stock.

The Paris Bourse, now part of Euronext, is an order-driven,

electronic stock exchange. It was automated in the late 1980s. Prior to

the 1980s, it consisted of an open outcry exchange. Stockbrokers met on

the trading floor or the Palais Brongniart. In 1986, the CATS trading

system was introduced, and the order matching process was fully

automated.

From time to time, active trading (especially in large blocks of

securities) have moved away from the 'active' exchanges. Securities

firms, led by UBS AG, Goldman Sachs Group Inc. and Credit Suisse

Group, already steer 12 percent of U.S. security trades away from the

exchanges to their internal systems. That share probably will increase to

18 percent by 2010 as more investment banks bypass the NYSE and

NASDAQ and pair buyers and sellers of securities themselves, according

to data compiled by Boston-based Aite Group LLC, a brokerage-industry

consultant.

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Now that computers have eliminated the need for trading floors

like the Big Board's, the balance of power in equity markets is shifting.

By bringing more orders in-house, where clients can move big blocks of

stock anonymously, brokers pay the exchanges less in fees and capture a

bigger share of the $11 billion a year that institutional investors pay in

trading commissions.

The London Stock Exchange

Participants in the stock market range from small individual stock

investors to large hedge fund traders, who can be based anywhere. Their

orders usually end up with a professional at a stock exchange, who

executes the order.

22

Some exchanges are physical locations where transactions are

carried out on a trading floor, by a method known as open outcry. This

type of auction is used in stock exchanges and commodity exchanges

where traders may enter "verbal" bids and offers simultaneously. The

other type of stock exchange is a virtual kind, composed of a network of

computers where trades are made electronically via traders.

Actual trades are based on an auction market model where a

potential buyer bids a specific price for a stock and a potential seller asks

a specific price for the stock. (Buying or selling at market means you will

accept any ask price or bid price for the stock, respectively.) When the

bid and ask prices match, a sale takes place on a first come first served

basis if there are multiple bidders or askers at a given price.

The purpose of a stock exchange is to facilitate the exchange of

securities between buyers and sellers, thus providing a marketplace

(virtual or real). The exchanges provide real-time trading information on

the listed securities, facilitating price discovery.

Broking industry in India:

The Indian retail brokerage industry consists of companies that

primarily act as agents for the buying and selling of securities (e.g.

stocks, shares, and similar financial instruments) on a commission or

transaction fee basis. It has two main interdependent segments: Primary

market and the Secondary market.

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Some of the main characteristics of the brokerage industry include

growth in e-broking, decline in brokerage fees, growing derivative

market and growing derivative market and many more.

There are several national as well as local players in stock trading

services which are providing various services to their customers like

online trading, portfolio management system, stock broking etc. They are

helping the investors to take decision about where to invest because

there is lots of Investment Avenue available with investors. Some of them

are Motilal Oswal, India Infoline, Anandrathi, India bulls etc

Lot of brokerage companies is moving towards consolidation with

the smaller ones becoming either franchisee for the larger brokers or

closing operations. There is an increasing demand for online trading due

to consumer’s growing preference for Internet as compared to

approaching the brokers.

New forms of trading including T+2 settlement system,

dematerialization etc are strengthening the retail brokerage market and

attracting foreign companies to enter the Indian industry Various

alternative forms of investment including fixed deposits with banks and

post offices etc act as substitutes to retail broking products and services.

An agent that charges a fee or commission for executing buys and

sells orders submitted by an investor. The firm that acts as an agent for a

customer, charge the customer the commission for its service. Roles

similar to that of a stockbroker include investment advisor, financial

advisor and probably many others. A stockbroker may or may not be also

an investment advisor.

A broker works for a brokerage firm (a sell-side institution). A

trader works for a buy-side institution (mutual fund, investment advisory

firm, insurance company, etc.) or for himself. Brokers don't care what

they sell and at what prices, as long as they get to sell a lot of it. Trades

(professional ones anyway) work to make sure that they are transacting

at the best possible price at the lowest possible cost.

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Indian Capital Market:

The Indian Capital Market is one of the oldest capital markets in

Asia which evolved around 200 years ago.The working of stock

exchanges in India started in 1875. BSE is the oldest stock market in

India. The history of Indian stock trading starts with 318 persons taking

membership in Native Share and Stock Brokers Association, which we

now know by the name Bombay Stock Exchange(BSE).

The National Stock Exchange of India Limited (NSE) is the largest

stock exchange established in 1992 by Industrial Development Bank of

India, Industrial Credi1992 by Industrial Development Bank of India,

Industrial Credit and Investment Corporation of India, in terms of daily

turnover and number of trades, for both equities and derivative trading.

The NSE's key index is the S&P CNX Nifty, known as the Nifty50, which

is an index of fifty major stocks weighted by market capitalization.BSE

and NSE represent themselves as synonyms of Indian stock market.

The 30 stock sensitive index or Sensex was first compiled in 1986.

The Sensex is compiled based on the performance of the stocks of 30

financially sound benchmark companies. In 1990 the BSE crossed the

1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in

1992. The reason for such huge surge in the stock market was the liberal

financial policies announced by the then financial minister Dr. Man

Mohan Singh.

The up-beat mood of the market was suddenly lost with Harshad

Mehta scam. It came to public knowledge that Mr. Mehta, also known as

the big-bull of Indian stock market diverted huge funds from banks

through fraudulent means. He played with 270 million shares of about 90

companies. Millions of small-scale investors became victims to the fraud

as the Sensex fell flat shedding 570 points.

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To prevent such frauds, the Government formed The Securities and

Exchange Board of India, through an Act in 1992. SEBI is the statutory

body that controls and regulates the functioning of stock exchanges,

brokers, sub-brokers, portfolio manager’s investment advisors etc. SEBI

oblige several rigid measures to protect the interest of investors. Now

with the inception of online trading and daily settlements the chances for

a fraud is nil, says top officials of SEBI.

Many foreign institutional investors (FII) are investing in Indian

stock markets on a very large scale. The liberal economic policies

pursued by successive Governments attracted foreign institutional

investors to a large scale.Apart from FIIs, the non-resident Indians also

invest hugely in the stock market.Diminishing returns from bank deposits

and the facilities of online trading made them turn to stock markets and

with the bull-run many have made a good fortune from stock markets.

The initial public offers by Tata Consultancy Services, Maruti

Udyog Limited, ONGC etc were big events in Indian stock market. Not

only did they put a great show, but also took the stock market to newer

heights. TCS is a big weight in the stock market from the day it was

listed. Traditional heavy weights are Reliance, Tata, Bharati etc. Now

new entrants like Biocon are also play significant roles in the market.

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National Stock Exchange (NSE)

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 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

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%}

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Futures & Options OR Derivatives Market {NSE's market share

over 99.5%}

Wholesale Debt Market (WDM)

Mutual Funds (MF)

Initial Public Offerings (IPO)

Bombay Stock Exchange (BSE)

Bombay Stock Exchange is the oldest stock exchange in Asia with a

rich heritage, now spanning three centuries in its 133 years of existence.

What is now popularly known as BSE was established as "The Native

Share & Stock Brokers' Association" in 1875.

BSE is the first stock exchange in the country which obtained

permanent recognition (in 1956) from the Government of India under the

Securities Contracts (Regulation) Act 1956. Over the past 133 years, BSE

has facilitated the growth of the Indian corporate sector by providing it

with an efficient access to resources. There is perhaps no major

corporate in India which has not sourced BSE's services in raising

resources from the capital market.

Today, BSE is the world's number 1 exchange in terms of the

number of listed companies and the world's 5th in transaction numbers.

The market capitalization as on December 31, 2007 stood at USD 1.79

trillion. An investor can choose from more than 4,700 listed companies,

which for easy reference, are classified into A, B, S, T and Z groups. The

number of companies listed on the BSE at the end of December 1994 was

4,702.

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Rapid Growth:

The last decade has been exceptionally good for the stock markets

in India. In the back of wide ranging reforms in regulation and market

practice as also the growing participation of foreign institutional

investment, stock markets in India have showed phenomenal growth in

the early 1990s.

The stock market capitalization in mid-2007 is nearly the same size

as that of the gross domestic product as compared to about 25 percent of

the latter in the early 2000s. Investor base continued to grow from

domestic and international markets. The value of share trading witnessed

a sharp jump too. Foreign institutional investment in Indian stock

markets showed continuous rise reaching about USD 10bn in each of

these years between FY04 to FY06.

Stock markets became intensely technology and process driven,

giving little scope for manual intervention that has been the source of

market abuse in the past. Electronic trading, digital certification, straight

through processing, electronic contract notes, online broking have

emerged as major trends in technology. Risk management became robust

reducing the recurrence of payment defaults. Product expansion took

29

place in a speedy manner. Indian equity markets now offer, in addition to

trading in equities, opportunities in trading of derivatives in futures and

options in index and stocks. ETFs are showing gradual growth. Within

five years of introduction of derivatives, Indian stock markets now are

ranked first in stock futures and fourth in index futures.

Indian stock markets are transaction intensive and thus rank

among the top five markets in this regard. Stock exchange reforms

brought in professional management separating conflicts of interest

between brokers as owners of the exchanges and traders/dealers.

The demutualization and Corporatisation of all stock exchanges is

nearing completion and the boards of the stock exchanges now have

majority of independent directors. Foreign institutions took stake in

India’s two leading domestic stock exchanges. While NYSE Group led

consortium took stake in the National Stock Exchange, Deutsche Börse

and Singapore Stock Exchange bought equity in the Bombay Stock

Exchange Ltd.

The Indian broking industry is one of the oldest trading industries

that has been around even before the establishment of the BSE in 1875.

Despite passing through a number of changes in the post liberalization

period, the industry has found its way towards sustainable growth. With

the purpose of gaining a deeper understanding about the role of the

Indian stock broking industry in the country’s economy, we present in

this section some of the industry insights gleaned from analysis of data

received through primary research.

For the broking industry, we started with an initial database of

over 1,800 broking firms that were contacted, from which 464 responses

were received. The list was further short-listed based on the number of

terminals and the top 210 were selected for profiling. 394 responses, that

provided more than 85% of the information sought have been included

for this analysis presented here as insights. All the data for the study was

collected through responses received directly from the broking firms. The

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insights have been arrived at through an analysis on various parameters,

pertinent to the equity broking industry, such as region, terminal,

market, branches, sub brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:

On the basis of geographical concentration, the West region has

the maximum representation of 52%. Around 24% firms are located in

the North, 13% in the South and 10% in the East 3% firms started

broking operations before 1950, 65between1950-19an32%post1995 On

the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in

Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities.

From this study, we find that almost 36% firm’s trade in cash and

derivatives and 27% are into cash markets alone.

Around 20% trade in cash, derivatives and commodities In the cash

market, around 34% firm’s trade at NSE, 14% at BSE and 52% trade at

both exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE

and 45% at both, whereas in the debt market, 31% trade at NSE, 26% at

BSE and 43% at both exchanges Majority of branches are located in the

North, i.e. around 40%. West has 31%, 24% are located in South and 5%

in East In terms of sub-brokers, around 55% are located in the South,

29% in West, 11% in North and 4% in East Trading, IPO’s and Mutual

Funds are the top three products offered with 90% firms offering trading,

67% IPO’s and 53% firms offering mutual fund transactions In terms of

various areas of growth, 84% firms have expressed interest in expanding

their institutional clients, 66% firms intend to increase FII clients and

43% are interested in setting up JV in India and abroad In terms of IT

penetration, 62% firms have provided their website and around 94%

firms have email facility.

Branches & Sub-Brokers:

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The maximum concentration of branches is in the North, with as

many as 40% of all branches located there, followed by the Western

region, with 31% branches. Around 24% branches are located in the

South and East constitutes for 5% of the total branches of the total

sample.

In case of sub-brokers, almost 55% of them are based in the South.

West and North follow, with 30% and 11% sub-brokers respectively,

whereas East has around 4% of total sub-broker.

Financial Markets in India:

The financial markets have been classified as cash market,

derivatives market, debt market and commodities market. Cash market,

also known as spot market, is the most sought after amongst investors.

Majority of the sample broking firms are dealing in the cash market,

followed by derivative and commodities. 27% firms are dealing only in

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the cash market, whereas 35% are into cash and derivatives. Almost 20%

firms trade in cash, derivatives and commodities market. Firms that are

into cash, derivatives and debt are 7%. On the other hand, firms into cash

and commodities are 3%, cash & debt market and commodities alone are

2%. 4% firms trade in all the markets.

In the cash market, around 34% firms’ trade at NSE, 14% at BSE

and 52% trade at both exchanges. In the equity derivative market, 48%

of the sampled broking houses are members of NSE and 7% trade at

BSE, while 45% of the sample operate in both stock exchanges. Around

43% of the broking houses operating in the debt market, trade at both

exchanges with 31% and 26% firms uniquely at NSE and BSE

respectively.

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Of the brokers operating in the commodities market, 57% firms

operate at NCDEX and MCX. Around 20% and 21% firms are solely in

NCDEX and MCX respectively, whereas 2% firms trade in NCDEX, MCX

and NMCE.

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Current Scenario:

The current consensus on India is very positive, and it is easy to

find a real bull among major market participants. Investment by private

corporate accountant for 41% of total investment in Indian economy in

2007-08. A significant proportion of corporate investment was financed

by equity raised from domestic and overseas markets. To that extent total

investment in Indian economy is directly influenced by the behavior of

capital market. Total financial savings of India’s household were Rs.

5,53,000 crore in 2007-08, accounting for 48% of their total savings.

Impact of budget 2009 on Indian capital market assumes specific

significance. Average level of Sensex increase sharply from 9540 in

January 2006 to 19,827 in December 2007. Indian company successfully

raised equity resources of Rs. 1,31,000 crore from the capital market in

2007, while FIIS pumped in U.S. $ 18 billion in Indian equity market in

2007.

As against this in 2008, Indian corporate could raise only Rs.

29,000 crore, while FIIs withdrew $ 12 billion from Indian market due to

the serve global financial crisis. This has adversely affected total

corporate investment in 2008, which has in turn lead to a significant slow

down in industrial growth. Fortunately second quarter of 2009 has

witnessed a remarkable recovery of global equity markets and, in this

process of market recovery Indian equity market has outperform almost

all leading global markets. During March to June 2009, Sensex has

increased by 75% as compared to 39% growth in china and 23% in U.S.

Indian market continues to outperform global capital markets,

during the rest 2009, would succeed in attracting huge inflows of both

foreign direct investment as well as FIIs investments. This would have a

significant impact on short-term as well as long term prospects for the

overall development of Indian economy. It would also enable the

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government to maximize resource mobilization through an aggressive

disinvestment programme.

Future of Indian Market:

India just keeps getting better and better. The economy is

growing rapidly surpassing some of Asia’s biggest economies. India is

now becoming the third largest country in Asia economically India has

created the best growth story that happen over a long time. Although

India is growing, there can still be corrections in the market. No matter

how well a country is doing, there is always something that can be fixed.

They would like to wait until the market is fixed to invest.

When thinking about all of the bad things in the news that can

affect the market in a negative way, think about the things that affect it

in a positive way as well. You need to look at a market in the long-term.

When seeing it in the short-term every market will look bad due to recent

news. An investor needs to look past that. It is never guaranteed that you

will make a lot of money when investing in market, including an

emerging one. However, India is said to be number one in the world right

now for investment opportunities.

Remember, that even with India doing so well, there are always

going to be flaws in the market, just like every market. Many things can

happen in which India can lose the things it relies on. Any news related

event that happens in any country will affect that countries market and

sometimes other countries as well. India, having a very rapid growing

economy is also a very expensive country in Asia. Many have high hopes

for India and if investors invest in India, they would be buying into a

country that has an excellent opportunity to make money over long-term.

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Major Players of Brokers:

NATIONAL PLAYERS REGIONAL PLAYERS

ANGEL BROKING R.WADIWALA SECURITIES

RELIANCE MONEY JAINAM

INDIA BULLS CONCEPT

INDIA INFOLINE MONARCH

RELIGARE SECURITIES

MOTILAL OSWAL

ANAND RATHI SECURITIES

SHAREKHAN

ICICI DIRECT

KARVY STOCK BROKING

LIMITED

KOTAK SECURITIES

HDFC SECURITIES

37

CHAPTER-3CHAPTER-3

3.1 COMPANY PROFILE3.1 COMPANY PROFILE

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2.1 Jainam Share Consultants Pvt. Ltd.

History:

Jainam Share Consultants Pvt. Ltd. was incorporated on 10th

November 2003 and it is mainly carrying on the broking business in the

equity market. The company has acquired memberships of the two major

stock exchanges of India; National Stock Exchange of India Ltd. (NSE)

and Bombay Stock Exchange Ltd. (BSE). The company is also registered

as a Depository Participant (DP) with Central Depository Services (I) Ltd.

(CDSL).

The company’s registered office is situated at,

M-5/6, Malhar Complex,

Dumas Road, Ichchanath,

Surat 395007.

The company commenced its BSE operations from 4th October

2004 and its NSE operations from 17th March 2005. Since incorporation

the company has been consistently growing with the present client base

of around 11000+ clients. The company has approximately 80 outlets to

cater to the needs of the investors for their equity trading in the stock

exchanges.

Jainam Commodities Pvt. Ltd.

39

Jainam Commodities Pvt. Ltd. was incorporated on 1st June 2005

and is mainly carrying on the broking business in the commodity market.

The company has acquired memberships of the two major commodity

exchanges of India viz. National Commodity & Derivatives Exchange Ltd.

(NCDEX) and Multi-Commodity Exchange of India Ltd. (MCX)

The Company’s registered office is situated at

M-11, Malhar Complex,

Dumas Road, Ichchanath,

Surat 395007.

Board of Directors:

1    Dr. Jitendra Shah

2   Mr. Chirag Shah

3    Mr. Milan Parikh

4    Mr. Nipun Shah

5    Mrs. Pinal Shah

6    Mrs. Purna Shah

Business Network:

Head Office: At registered address, Surat.

Local Branches: 8 Branches in Surat city.

Regional Branches:

Rajkot

Bhavnagar

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Mumbai

Jainam Organisation Hirearchy:

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Milestone of company:

42

Board of Directors:

HRM

Shital Mehta

Operation Finance

Hemal Zaveri

Marketing

Chetna Bhandari

Research

Rohan Mehta

System/ technical

Commodity

Devesh Shah

Customer care

Dhawal Panchal

Demat a/c

Kamlesh Patel

Security & KYC

Hetal Shah

Account Opening

Nisha Dudhwala

RMS (Risk management

system)

Dilip Morakhia

General Account & Banking

Mutual Fund

Abhishek

Shah

It & Software

Nikhil Tandel

Jainam Share Consultants Pvt. Ltd.

2005 15th December Acquired Membership

of

Central Depository

service (India) Ltd.

2004 23rd December Acquired Membership

of National Stock

Exchange of India Ltd.

(Cash Seg.)

2004 17th December Acquired Membership

of National Stock

Exchange of India Ltd.

(F & O Seg.)

2004 30th December Acquired Membership

of Bombay Stock

Exchange Ltd. (Cash

Seg.)

2003 10th November  Company Registered

Jainam Commodities Pvt. Ltd.

2006 06th February  Acquired Membership

of National Commodity

and  Derivatives

Exchange of India Ltd.

2005 08th December  Acquired Membership

of Multi Commodity

Exchange of India Ltd.

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2005 1st June  Company Registered

Mission:

“TO PROVIDE WORLD CLASS SERVICES AND CREAT WEALTH FOR

EVERY ONE”

Vision 2015:

“TO BE THE MOST PREFERRED ORGANIZATION PROVIDING ALL

FINANCIAL SERVICES ACROSS THE COUNTRY”

Five CORE VALUES of company:

1. Change

2. People Development

3. Security

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4. Team Work

5. Integrity

Jainam Share Consultants Pvt. Ltd.

Member: Bombay Stock Exchange Ltd. (BSE)

Trading Member ID: 2001

SEBI Registration No: INB011211639 (CM Segment)

Member: National Stock Exchange of India Ltd. (NSE)

Trading Member ID: 12169

SEBI Registration No:  INB231216939 (CM Segment)

SEBI Registration No:  INF231216939 (Derivatives Segment)

Member: Central Depository Services (I) Ltd. (CDSL)

DP ID: 41500

SEBI Registration No: IN-DP-CDSL-322-2005

Jainam Commodities Pvt. Ltd.

Member: Multi-Commodity Exchange of India Ltd. (MCX)

Trading Member ID: 29735

FMC Registration No: MCX/TCM/CORP/0924

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Member: National Commodities & Derivatives Exchange Ltd.

(NCDEX)

Trading Member ID: 00738

FMC Registration No: NCDEX/TCM/CORP/0723

Core Strength of Jainam:

Milan Parikh who has excellent contacts and relationship with sub-brokers in surat.

Nipun Shah has the knowledge that is needed to complete the difficult procedure of getting various memberships.

Dr. Jitendra Shah – the senior and most respectable member of team Jainam who has the ability to motivate all to reach great heights.

Even the name ‘Jainam’ derived from the first letter of the above three directors.

Strategy:

Build long term relationship with customer by winning their trust.

Give decided services to all customers by protecting their investment in volatile circumstances and adding value to their wealth.

Integrate the best in technology, research and analysis into the business model ensuring growth not only in business but also in customer relationship.

Jainam Strengths:

Every customer is provided one stop solution for trading in the equities market and commodities market.

Provisions of free, state of art research to all clients. Dedicated and experienced team for any type work, Inspiring and powerful leadership. Customer base of more than 14000+

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Products and services of the company:

Products

Equity

Derivatives

Depository Services

Commodities

IPO -Initial Public Offerings

Insurance

Portfolio Tracking

E-Trading

Mutual Funds

General Information about company:

No. of Employee 160

Working Hours 9:45 am to 6:15 pm

Lunch Time 20 minute during 12:00 noon to 2:00 pm

Salary Payment 5th of every month

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Attendance Regular recording

Leave As per its policy

Conduct & Discipline

High degree of discipline, positive conflict is good between employees

3.2 About Department:

Human Resource Department

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Human Resources Department Structure:

49

Managing Director

Senior Executive

Department Head

Junior ExecutiveJunior Executive

Introduction:

The JAINAM shares company’s HR department plays a significant role in day to day life activities. Its activities and functions are related with other departments.

Discussion with HR manager:

As Researcher has discussed with HR manager about how they are performing their task of HRM? She immediately told me that first they are considering two factors like GOAL and ACTIVITY. They are giving importance to each goal and activity.

Activities carried by HRD:

Attendance Management Personal file updating Leave Management Contract Management for labor

Maintaining Attendance Statutory Compensation Salary & Bonus Welfare Activity

Medical Education Health check up

ISO Documentation HR Budget MIS Report Training and development

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Recruitment & Selection Induction and Orientation Performance Appraisal Separation

Transfer Resignation

Human Resource Systems support the mentioned driving forces in the following manner at Jainam Shares Consultant pvt. ltd:

Salary and basic needs Competitive with the industry Parity within the organisation Providing growth compared to the industry Compensation strategy concentrated towards Retention

of Employees

Work Environment Employee engagement measurement Policy formulation and its strict adherence

• Administration policies• Performance management policies

Clarity of Job, Role, responsibility and accountability

Growth prospects Career planning Learning need identification Opportunities to gain knowledge Opportunities apply the knowledge gained.

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1)Job Analysis:

Definition of Job Analysis:

The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it

They have suggest us a below uses of job analysis for their organization.

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2) Man Power Planning:

After doing job analysis they are always done a Manpower Planning. As we know that success of any organization depends upon the quantity and quality of its human resources. JAINAM has accepted a strategy of putting right person on the right job. They doing MPP as per the business plan. They are doing MPP for one year period.

They are using a technique of managerial judgment for the forecast of the future human resource. They are doing MPP on the basis

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Uses of Job Analysis Information

Job Analysis

Recruiting and

Selection

Decisions

Performance

Appraisal

Job Evaluation—

Wage and Salary

Decisions

(Compensation)

Training

Requirements

Job Description

And

Job Specification

of future supply of human resource. They make assumption of future expected loss of human resource. They are done MPP on continuous basis.

3) Recruitment and Selection:

After doing Job analysis and HRP, they recruit and select the person as per job requirement. The below diagram shows hoe Job analysis and HRP helpful in Recruiting and Selection Every firm can hire a person after the Job analysis and HRP has been done.

Sources of recruitment:

They generally use both the internal and external sources for the Recruitment.

Internal sources:

They generally use internal sources for Recruitment and Selection. They generally recruit the require person through Promotion and Transfer. They used past employee of company for the Recruitment

External sources:

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Recruiting and

Selection

As a external sources of Recruitment they used a service of a agency which are providing a skilled Human Resources. Currently they are Recruiting a persons from “MAFOIA consultancy Ltd.”

Interview:

After recruiting a necessary employee for the job they select a right person who has all necessary skills and ability to do job. They select a person through a Interview process. Interviews are taken by a HR Manager of the JAINAM and by the Manager of respected department in which the person is required.

Test during Interview:

If any special test is required during interview, they are planning to put it in action for checking the abilities of applicant.

Final placement:

After the test and final interview call over, right person at right place to be placed in the JAINAM by the HR manager.

Induction training:

As new employee is placed in the organization, the following are some important task which is done to make him/her familiar with the organization.

As I have joined the organization for the purpose of my MBA summer training, they have consider me as a new employee of the firm and given me induction manual to be familiarize with the JAINAM.

Purpose of Induction Manual:

1. To make familiar with organization and its culture 2. Accelerate socialization process for the individual.3. Aware of responsibilities and privileges.4. Integrate with the organization.

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The Organization expects the following from their employees,

1. We need to clearly define roles, goals and rules to be most efficient.

2. We meet deadlines and issue reports on time.

3. Have confidence in your skills and it is good to seek advice. No one knows it all.

4. We will GRIP (Goals Roles Issues Process) our problems and challenges, we will not let them fester.

5. We must work co-operatively as equals and support each other.

6. Careful, calm rational, respectful communication is key, no raised voices.

7. Respect each other’s ideas and views.

8. We support independent thinking and opinion with reasons up and down the organization.

9. We expect people to voice their disagreement.

10. Positive conflict is good.

11. Continue to be open about our feeling and assumptions.

12. Avoid issues of personalities, prestige, point scoring, put downs, negative cements, fear and what did they say about me? Move on.

13. The decision maker must listen, seek input and explain rationale behind decisions.

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14. Once a decision is made irrespective of your view, you implement it with good will. As it is company’s decision.

Terminal Process:

Most involuntary separations are due to poor performance, poor attendance, or violation of some other company policy.

Acts:

Two acts are following as HR acts

1. Provident fund act 1952

2. ESIC- Employees’ state insurance act 1948:

"An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto."

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Marketing & Sales Department:

Marketing & Sales Department:

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Introduction:

Marketing is so basic that it cannot be considered as a separate function. Marketing has been defined in various ways. The definition that serves our purpose best is as follows: “marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.”

This definition of marketing rests on the following core concepts, needs, wants& demands, products, value, cost & satisfaction, exchange and transactions, relationship and networks, markets and marketers and prospects.

“Marketing management is the process of planning and executing the conception, pricing, promotion & distribution of ideas, good and services to create exchanges that satisfy individual and organizational goals.” This definition recognizes that marketing management is a process involving analysis, planning, implementation and control; that it covers goods, services and ideas; that it rests on the notion of exchange, and that he goal is to produce satisfaction of the parties involved.

Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving the desired responses from the other parties. Marketing management has the task of influencing the level; timing and composition of demand in a way that will the organization achieve its objectives. Marketing management is essentially demand management.

This department was started before one year in the organization.

Discussion with manager:

When Researcher talked to marketing manager, Chetna Bhandari who has 10 years experience in share broking firm, about requirement of this department in the company , she replied like “ on demand of 300 sub brokers and to make easy transactions and to facilitate them, they have established the marketing and sales department last year”

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Functions of department:

1. Taking reverences from sub brokers.2. Making call for appointment to explain detailed information.3. Fixing meeting with client and sharing information.4. Problem solving of clients and sub brokers.5. Meeting with existing sub brokers in 15 days.6. Meeting with new clients in every week.7. For potential consumers they are appointing one special guide

Advertisement:

When Researcher asked her about advertisement and its rules, she said that if the firm wants to put single banner they need to take permission from SEBI. If there are any changes in the matter immediately they have to inform to SEBI about changes.

Strategy:

She said about the strategy to stabilize their firm in this competitive environment. In her words “If we think that ANGEL, SHARE KHAN and other big firms are our competitors then we will not be able to survive in the market. So we believe that we, ourselves are competitors of the firm”

Promotion Method:

1. Telephone & E-mail:

Customer Satisfaction Measures.

E-mail and Telephonic Complaint.

By appointing employee to special customers.

Order Conformation.

By giving daily reports about market and industry to customers.

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Distribution Channel:

Zero Level:

Jainam Shares consultant

One level:

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Direct customer

(Sub-brokers)

Indirect customer

(Clients)

Jainam Shares consultant

Direct customer

(Sub-brokers)

Indirect customer

(Clients)

IT & Software department:

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IT & Software department:

This department was stared before 2 months.

Discussion with manager:

When Researcher talked to in charge of the department Mr. Nihkil Tandel about the need for staring this department, he explained me the various reasons like,

Reasons for establishment of the department:

1. To build, stabilize, and deploy IT services, applications, and infrastructure improvements in the most efficient way possible.

2. Software service problem was in very high degree3. To become self dependent in making software for the business4. In future to apply for innovations and creative ideas in business for

growth and expansion of the firm 5. To facilitate the A/C & trading department 6. To solve it problems quickly.7. Reliability and security of business plan 8. Asset protection9. Restoration of a service to health when things go wrong

The department is still in underdevelopment process. Top management is supporting as best to make it efficient for making all processes of the firm.

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KYC (know your client) department & DP:

64

KYC (know your client) department & DP:

The department plays significant role in the stock market transaction and in company.

Introduction:

In order to prevent identity theft, identity fraud, money laundering,

terrorist financing, etc, the RBI had directed all banks and financial

institutions to put in place a policy framework to know their customers

before opening any account.

This involves verifying customers' identity and address by asking

them to submit documents that are accepted as relevant proof.

Mandatory details required under KYC norms are proof of identity

and proof of address. Passport, voter's ID card, PAN card or driving

license are accepted as proof of identity, and proof of residence can be a

ration card, an electricity or telephone bill or a letter from the employer

or any recognised public authority certifying the address.

Some banks may even ask for verification by an existing account

holder. Though the standard documents which are accepted as proof of

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identity and residence remain the same across various banks, some

deviations are permitted, which differ from bank to bank.

So, all documents shall be checked against banks requirements to

ascertain if those match or not before initiating an account opening

process with any bank. Thus opening a new bank account is no longer a

cake walk. Those are the basic requirements of KYC to identify a

customer at the account opening stage.

DP department:

Demat refers to a dematerialized account.

Introduction:

Just as one have to open an account with a bank if he/she want to save his/her money, make cheque payments etc, one need to open a demat account if one want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares.

One have to approach the DPs (remember, they are like bank branches), to open one’s demat account.Let's say one’s portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.All these will show in one’s demat account.So don’t have to possess any physical certificates showing that one own these shares. They are all held electronically in your account.

As one buy and sell the shares, they are adjusted in one’s account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to

66

be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.

Process to start DP:

Look for a DP to have an account with most banks are also DP participants, as are many brokers. One can choose your very own DP. A broker is separate from a DP. A broker is a member of the, who buys and sells shares on his behalf and on behalf of his clients.

A DP will just give you an account to hold those shares. One do not have to take the same DP that your broker takes. You can choose your own.

But many brokers offer special incentives in the form of lower charges for opening demat accounts with their DPs. Get one’s documents in placeOnce you approach your DP, you will be guided through the formalities of opening an account. One must fill up an account opening form and sign an agreement with one’s DP. The DP will ask for some documents as proof of one’s identity and address.

Check with them what they require. For instance, some may accept a driver's license, others may not.

Here is a broad list (One won't need all of them though):

• PAN card

• Voter's ID

• Passport

• Ration card

• Driver's license

• Photo credit card

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• Employee ID card

• Bank attestation

• IT returns

• Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for verification. One shall have to submit a passport size photograph on which you sign across. How many shares one need to have to open an accountWhen opening an account with a bank, one need a minimum balance.

Not so with a demat account. A demat account can be opened with no balance of shares.And there is no minimum balance to be maintained either. You can have a zero balance in your account.

Charges for it:

The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.

Nomination:

By filling up the nominee form while opening the demate account.

After starting Dp:

When one open an account, the DP will allot a unique BO ID

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(Beneficial Owner Identification) Number, which one need to quote for all future transactions. If you want to sell your shares, you need to place an order with one’s broker and give a 'Delivery Instruction' too one’s DP.

The DP will debit one’s account with the number of shares sold. One will receive the payment from one’s broker. If one want to buy shares, inform one’s broker about your Depository Account Number, so that the shares bought are credited into one’s account.

Difference between a depository and a depository participant:

A depository is a place where the stocks of are held in electronic form. The depository has agents who are called depository participants (DPs).

Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DPs are the branches that cater to individuals.

There are only two depositories in India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). There are over a 100 DPs.

Changes of Bank account details:

Since in the depository system monetary benefits on the security

balances are paid as per the bank account details provided by you at the

time of account opening, you must ensure that any subsequent change in

bank account details is informed to your DP immediately.

Closing or Transfer:

One can submit account closure request to your DP in the

prescribed form. The DP will transfer all the securities lying in the

account, as per the instruction, and close the demat account.

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Freeze or locking account:

One can freeze or lock one’s account for any given period of time,

if so desired. Accounts can be frozen for debits (preventing transfer of

securities out of accounts) or for credits (preventing any movements of

securities into accounts) or for both.

Customer Care Department:

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Customer Care Department:

Definition

Customer Care is the processing of meeting (and exceeding) your

customer expectations of service.

Mission of the department:

“One satisfied customer is more valuable than 5 lakh rs, Advertisement”.

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Objectives of Customer Care

create a culture of customer focus creating rapport and building loyalty

achieving customer satisfaction

They are committed to providing customers with efficient, local, support to help them achieve the maximum benefit from their solution. They have structured their business so that, no matter where customers are located, they have direct access to local sales, support and management to ensure they are responsive to all customers' needs - not just product maintenance.

The objectives/functions of the Customer Relations Strategy are to:

Provide customers and staff with clear standards and expectations  Ensure all customer contact reaches an appropriate conclusion 

Minimize incidences of repeat contact 

Seek to provide a seamless service for customers 

Provide equal and easy access to our services at a time, place and channel that meet the needs of residents, businesses and other stakeholders 

Cater for customers needs irrespective of age, gender, physical or financial ability, ethnic origin, race, religion or geographical location 

Provide a prompt, courteous and knowledgeable response to all customer enquiries. 

Equip our staff to provide customers with an excellent standard of service 

Enable our customers to provide feedback easily, through complaints, customer surveys, etc 

Use customer compliments, comments and complaints to drive improvements to service 

Improve the speed, quality and consistency of response to enquiries by having our information in a format that can be easily accessed 

Integrate customer care into mainstream service provision 

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Continually increase the level of resources going into front line services

It is their belief that by meeting these objectives they will:

Delight the customer by providing excellent standards of service  Maximize satisfaction with the quality of the service provided

Developing Customer Care strategies:

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Finance Department

Finance Department:

74

Introduction:

The primary purpose of any business is to earn profits. To earn profit, the business has to produce goods or render services. To do either, management of business must have adequate supply of funds. It is the responsibility of the finance department to ensure the supply of the needed funds.

Financial management is the application of planning and control to the finance function of a business to ensure that the funds needed are raised and used effectively for its benefits. Financial management means procurement of funds at minimum cost and its effective use in order to maximize the wealth of shareholders.

The company’s Finance department is divided into two parts:

Account Department

Banking Department

Functions of Account Department:

Payment of expenses.

Final accounts.

All types of taxes.

Auditing and statutory auditing. (Quarterly)

Daily or time to time banking match.

Pay in pay out.

Collection of check and entry maintenance.

Enquiry and third party check.

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Functions of Banking Department:

Capital Structure maintenance

Pay in pay out of checks with exchanges.

Maintenance of OD

Fulfillment of necessary requirement of department of financial needs.

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Research Department:

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Introduction:

In the firm of share broking organization research department

plays crucial role for time to time updates and other technical services

for clients as well as internal purpose.

The Jainam shares consultants’ pvt ltd is providing the following

technical services.

Technical Services:

Intra-day Calls

For day traders’ Jainam provides intraday calls with entry, exit

and stop loss levels during the market hours and our calls are flashed on

our terminals. Our analysts continuously track the calls and provide the

recommendations according to the market movements. Past performance

of these calls in terms of profit/loss is also available to our associates to

enable them to judge the success rate.

Posting Trading Calls

Jainam’s “Position Trading Calls” are based on a through analysis of

the price movements in selected scripts and provides calls for taking

positions with a 10 - 15 days time span with stop losses and targets.

These calls are also flashed on our terminals during market hours.

78

Derivative strategies:

Our analyst take a view on the NIFTY and selected scripts based on

derivatives and technical tools and devise suitable “Derivative Strategies” ,

which are flashed on our terminals and published in our derivative reports.

Daily Services:

Market Outlook at 9:30 AM

A crisp pre-market report that arms our clients with sensitive

information before the opening bell. Key corporate developments, policy

announcements, geo-political news and views are analyzed for their

impact on the market.

Technical Report at 6:00 PM

This report analyses trading patterns, historical background,

market position of key stocks and offer short term (1 to 5 days) as well as

medium term (10 to 20 days) views. Tracking individual scripts as well as

the Sensex and Nifty, its insight cuts through the market maze.

Derivative Analysis Report

The report provides FII activity in derivative segments, change in

open interest, put call ratio, cost of carry of stock and index based

79

derivative products. Our derivative analysts use the above tolls to project

the movement during the next trading sessions

CHAPTER-4CHAPTER-4

THEORETICALTHEORETICAL

FRAMEWORKFRAMEWORK

TECHNICALTECHNICAL

ANALYSISANALYSIS

& &

COMMODITYCOMMODITY

MARKETMARKET

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Technical Analysis:

Introduction:

The methods used to analyze securities and make investment

decisions fall into two very broad categories: fundamental analysis and

technical analysis. Fundamental analysis involves analyzing the

characteristics of a company in order to estimate its value. Technical

analysis takes a completely different approach; it doesn't care one bit

about the "value" of a company or a commodity. Despite all the fancy and

exotic tools it employs, technical analysis really just studies supply and

demand in a market in an attempt to determine what direction, or trend,

will continue in the future. In other words, technical analysis attempts to

understand the emotions in the market by studying the market itself, as

opposed to its components.

Definition:

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Technical analysis is the forecasting of future financial price

movements based on an examination of past price movements. Like

weather forecasting, technical analysis does not result in absolute

predictions about the future. Instead, technical analysis can help

investors anticipate what is "likely" to happen to prices over time.

Technical analysis uses a wide variety of charts that show price over

time.

The field of technical analysis is based on three assumptions:

1.     The market discounts everything.

2.     Price moves in trends.

3.     History tends to repeat itself.

1. The Market Discounts Everything.

A major criticism of technical analysis is that it only considers

price movement, ignoring the fundamental factors of the company.

However, technical analysis assumes that, at any given time, a stock's

price reflects everything that has or could affect the company - including

fundamental factors. Technical analysts believe that the company's

fundamentals, along with broader economic factors and market

psychology, are all priced into the stock, removing the need to actually

consider these factors separately. This only leaves the analysis of price

movement, which technical theory views as a product of the supply and

demand for a particular stock in the market.

2. Price Moves in Trends.

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In technical analysis, price movements are believed to follow

trends. This means that after a trend has been established, the future

price movement is more likely to be in the same direction as the trend

than to be against it. Most technical trading strategies are based on this

assumption.

3. History Tends To Repeat Itself.

Another important idea in technical analysis is that history tends

to repeat itself, mainly in terms of price movement. The repetitive nature

of price movements is attributed to market psychology; in other words,

market participants tend to provide a consistent reaction to similar

market stimuli over time. Technical analysis uses chart patterns to

analyze market movements and understand trends. Although many of

these charts have been used for more than 100 years, they are still

believed to be relevant because they illustrate patterns in price

movements that often repeat themselves.

Technical Analysis: The Use of Trend

One of the most important concepts in technical analysis is that of

trend. 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:

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

easy to see a trend:

A More Formal Definition

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.

Types of Trend

There are three types of trend:

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Uptrend

Downtrend

Sideway

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.

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 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 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 trends. In Figure to get a sense of how these three trend lengths might look.

Trend lines:

85

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.

In Figure, 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.

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”.Technical Analysis:

Support and Resistance Once 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

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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).

In Figure, support is the

price level through which a stock or market seldom falls (blue arrows).

Resistance, on the other hand, is the price level that a stock or market

seldom surpasses (red arrows).

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 established.

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,

87

however, it is important that the price make a strong move through

either the support or resistance.

In Figure, 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.

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.Technical Analysis: The

Importance of VolumeIntroduction:

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.

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Importance of Volume:

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.

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. Technical

Analysis: 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-to-day fluctuations are

removed, traders are better able to identify the true trend. Types of

Moving AveragesSimple 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.

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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.

Exponential Moving Average (EMA):

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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.

Introduction to charts:

A price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots.

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Technicians, technical analysts and chartists use charts to analyze

a wide array of securities and forecast future price movements. The word

"securities" refers to any tradable financial instrument or quantifiable

index such as stocks, bonds, commodities, futures or market indices. Any

security with price data over a period of time can be used to form a chart

for analysis.

Types of Charts:

There are three 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.

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Line Chart:

The most basic of the three 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.

Bar chart:

93

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. A bar that is colored red signals that the stock has gone down and

colored blue it means it has gone up.

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.

White (clear) candlesticks form when the close is higher than the open

and black (solid) candlesticks form when the close is lower than the

open. The white and black portion formed from the open and close is

called the body (white body or black body). The lines above and below

are called shadows and represent the high and low.

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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.

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.

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. In Figure, 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.

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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.

In Figure, 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.

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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.

In the case of the double top pattern, 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, 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.

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Price Channel:

Bound by a lower and upper trendline, the price channel is a

continuation pattern that either slopes up or down as the price action is

being maintained within established and sloping resistance and support

lines. A negative or downwardly sloping channel is considered bearish

while a positive or upwardly sloping channel is comparatively bullish. In

this instance, traders will wait to buy when the price action touches

support as a rebound is expected. Conversely, sellers will take a sell

position after a touch of resistance.

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.

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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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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.

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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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.

MACD= shorter term moving average - longer term moving

average

In Figure 2, one of the most common buy signals is generated when the

MACD crosses above the signal line (blue dotted line), while sell signals

often occur when the MACD crosses below the signal.

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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 security’s price has been unreasonably pushed to current

levels and whether a reversal may be on the way.

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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.

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

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.

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Pivot Point Analysis:

Pivot Points offer the trader a method of determining support and

resistance for a given time frame. Pivots can be used with any time

frame, daily, weekly, monthly, even any intra-day chart. A common

technique is to calculate Pivots for a variety of time frames using

common levels as a way of developing confidence parameters. There are

five basic parameters calculated in Pivot Point Analysis. They are the

Pivot (P), 1st Resistance (R1), 2nd Resistance (R2), 1st Support (S1) and

2nd Support (S2).These levels are used in much the same manner as you

would trendline support and resistance levels.

First here is the mathematical formula where P= Pivot point; C=

Close: H= High: and L= Low. The Pivot point number is the high, low;

close added up and then divided by three. P= (H+L+C)/3= pivot point.

Now for the first resistance level take the pivot point number times

two and then subtracts the low. (Px2)-L=Resistance 1

For the second resistance, take the pivot point number add the high

and then subtract the low. P+H-L= Resistance2

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For the first support take the pivot point number times two and

then subtracts the high. (Px2)-H = Support 1

For the second support, take the pivot point number subtract the

high and then add the low. P-H+L= Support 2

All right, now that we have that established we can see it is a

detailed formula. So let’s try to simplify it. Consider the Pivot Point as the

average of the previous sessions trading range combined with the closing

price. The numbers of support and resistance that are calculated indicate

the potential ranges for the next time frame based on the past weight of

the markets strength or weakness derived from the calculations of the

high, low and distance from the close of those points. Pivot Point analysis

is also used for identifying breakout points from the support and

resistance numbers.

Commodity and Commodities market

Introduction:

India, a commodity based economy where two-third of the one

billion population depends on agricultural commodities, surprisingly has

an under developed commodity market. Unlike the physical market,

futures markets trades in commodity are largely used as risk

management (hedging) mechanism on either physical commodity itself or

open positions in commodity stock.

For instance, a jeweler can hedge his inventory against perceived

short-term downturn in gold prices by going short in the future markets.

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The article aims at know how of the commodities market and how

the commodities traded on the exchange. The idea is to understand the

importance of commodity derivatives and learn about the market from

Indian point of view. In fact it was one of the most vibrant markets till

early 70s. Its development and growth was shunted due to numerous

restrictions earlier. Now, with most of these restrictions being removed,

there is tremendous potential for growth of this market in the country.

Commodity:

A commodity may be defined as an article, a product or material

that is bought and sold. It can be classified as every kind of movable

property, except Actionable Claims, Money & Securities.

Commodities actually offer immense potential to become a

separate asset class for market-savvy investors, arbitrageurs and

speculators. Retail investors, who claim to understand the equity

markets, may find commodities an unfathomable market. But

commodities are easy to understand as far as fundamentals of demand

and supply are concerned. Retail investors should understand the risks

107

and advantages of trading in commodities futures before taking a leap.

Historically, pricing in commodities futures has been less volatile

compared with equity and bonds, thus providing an efficient portfolio

diversification option.

In fact, the size of the commodities markets in India is also quite

significant. Of the country's GDP of Rs 13, 20,730 crore (Rs 13,207.3

billion), commodities related (and dependent) industries constitute about

58 per cent.

Currently, the various commodities across the country clock an

annual turnover of Rs 1, 40,000 crore (Rs 1,400 billion). With the

introduction of futures trading, the size of the commodities market grows

many folds here on.

Commodity Market:

Commodity market is an important constituent of the financial markets of any

country. It is the market where a wide range of products, viz., precious metals, base metals,

crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to

develop a vibrant, active and liquid commodity market. This would help investors hedge their

commodity risk, take speculative positions in commodities and exploit arbitrage opportunities

in the market.

Table:

Turnover in Financial Markets and Commodity Market

              (Rs in Crores)

108

S

No.

Market segments 2002-03 2003-04 2004-05 (E)

1 Government Securities

Market

1,544,37

6

(63) 2,518,32

2

(91.2

)

2,827,872 (91)

2 Forex Market 658,035 (27) 2,318,53

1

(84) 3,867,936 (124.4

)

3 Total Stock Market

Turnover (I+ II)

1,374,40

5

(56) 3,745,50

7

(136) 4,160,702 (133.8

)

I National Stock Exchange

(a+b)

1,057,85

4

(43) 3,230,00

2

(117) 3,641,672 (117.1

)

  a)Cash 617,989   1,099,53

4

  1,147,027  

  b)Derivatives 439,865   2,130,46

8

  2,494,645  

II Bombay Stock Exchange

(a+b)

316,551 (13) 515,505 (18.7

)

519,030 (16.7)

  a)Cash 314,073   503,053   499,503  

  b)Derivatives 2,478   12,452   19,527  

4 Commodities Market NA   130,215 (4.7) 500,000 (16.1)

Note: Fig. in bracket represents percentage to GDP at market prices

Source: SEBI bulletin

109

(http://www.indianmba.com/Occasional_Papers/OP62/op62.html)

It’s EVOLUTION IN INDIA

Bombay Cotton Trade Association Ltd., set up in 1875, was the first

organized futures market. Bombay Cotton Exchange Ltd. was established

in 1893 following the widespread discontent amongst leading cotton mill

owners and merchants over functioning of Bombay Cotton Trade

Association. The Futures trading in oilseeds started in 1900 with the

establishment of the Gujarati Vyapari Mandali, which carried on futures

trading in groundnut, castor seed and cotton. Futures' trading in wheat

was existent at several places in Punjab and Uttar Pradesh. But the most

notable futures exchange for wheat was chamber of commerce at Hapur

set up in 1913. Futures trading in bullion began in Mumbai in 1920.

Calcutta Hessian Exchange Ltd. was established in 1919 for futures

trading in raw jute and jute goods. But organized futures trading in raw

jute began only in 1927 with the establishment of East Indian Jute

Association Ltd. These two associations amalgamated in 1945 to form the

East India Jute & Hessian Ltd. to conduct organized trading in both Raw

Jute and Jute goods. Forward Contracts (Regulation) Act was enacted in

1952 and the Forwards Markets Commission (FMC) was established in

1953 under the Ministry of Consumer Affairs and Public Distribution. In

due course, several other exchanges were created in the country to trade

in diverse commodities.

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Structure of Commodity Market:

Different types of commodities traded:

World-over one will find that a market exits for almost all the

commodities known to us. These commodities can be broadly classified

into the following:

Precious Metals: Gold, Silver, Platinum etc

Other Metals: Nickel, Aluminum, Copper etc

Agro-Based Commodities: Wheat, Corn, Cotton, Oils, Oilseeds.

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Soft Commodities: Coffee, Cocoa, Sugar etc

Live-Stock: Live Cattle, Pork Bellies etc

Energy: Crude Oil, Natural Gas, Gasoline etc

Different segments in Commodities market:

The commodities market exits in two distinct forms namely the

Over the Counter (OTC) market and the Exchange based market.

Also, as in equities, there exists the spot and the derivatives segment.

The spot markets are essentially over the counter markets and the

participation is restricted to people who are involved with that

commodity say the farmer, processor, wholesaler etc. Derivative trading

takes place through exchange-based markets with standardized

contracts, settlements etc.

Leading commodity markets of world

Some of the leading exchanges of the world are New York

Mercantile Exchange (NYMEX), the London Metal Exchange (LME) and

the Chicago Board of Trade (CBOT).

Leading commodity markets of India

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The government has now allowed national commodity exchanges,

similar to the BSE & NSE, to come up and let them deal in commodity

derivatives in an electronic trading environment. These exchanges are

expected to offer a nation-wide anonymous, order driven, screen based

trading system for trading. The Forward Markets Commission (FMC) will

regulate these exchanges.

Consequently four commodity exchanges have been approved to

commence business in this regard. They are:

Multi Commodity Exchange (MCX) located at Mumbai.

National Commodity and Derivatives Exchange Ltd (NCDEX) located at Mumbai.

National Board of Trade (NBOT) located at Indore.

National Multi Commodity Exchange (NMCE) located at Ahmedabad.

Turnover on Commodity Futures Markets

    (Rs. In Crores)

Exchange 2003-04 2004-05 FIRST

Half

NCDEX 1490 54011

NBOT 53014 51038

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MCX 2456 30695

NMCE 23842 7943

ALL EXCHANGES 129364 170720

Source:

http://www.indianmba.com/Occasional_Papers/OP62/op62.html

Volumes in Commodity Derivatives Worldwide

Commodity Futures Trading in India

Introduction:

Derivatives as a tool for managing risk first originated in the

Commodities markets. They were then found useful as a hedging tool in

financial markets as well. The basic concept of a derivative contract

remains the same whether the underlying happens to be a commodity or

a financial asset. However there are some features, which are very

peculiar to commodity derivative markets. In the case of financial

derivatives, most of these contracts are cash settled. Even in the case of

physical settlement, financial assets are not bulky and do not need

special facility for storage. Due to the bulky nature of the underlying

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assets, physical settlement in commodity derivatives creates the need for

warehousing. Similarly, the concept of varying quality of asset does not

really exist as far as financial underlyings are concerned. However in the

case of commodities, the quality of the asset underlying a contract can

vary largely. This becomes an important issue to be managed.

Benefits to Industry from Futures trading

Hedging the price risk associated with futures contractual

commitments.

Spaced out purchases possible rather than large cash

purchases and its storage.

Efficient price discovery prevents seasonal price volatility.

Greater flexibility, certainty and transparency in procuring

commodities would aid bank lending.

Facilitate informed lending.

Hedged positions of producers and processors would reduce the

risk of default faced by banks.

Lending for agricultural sector would go up with greater

transparency in pricing and storage.

Commodity Exchanges to act as distribution network to retail

agri-finance from Banks to rural households.

Provide trading limit finance to Traders in commodities

Exchanges.

Benefits to Exchange Member

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Access to a huge potential market much greater than the

securities and cash market in commodities.

Robust, scalable, state-of-art technology deployment.

Member can trade in multiple commodities from a single point,

on real time basis.

Traders would be trained to be Rural Advisors and Commodity

Specialists and through them multiple rural needs would be met,

like bank credit, information dissemination, etc.

Chapter 4

Research Methodology

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4.1 Objective of Study:

Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet.

To make investment decisions.

To determine the trend of commodity like Gold and Crude Oil.

To forecast future financial price movements.

To take an approach that what is “likely” to happen in price over time.

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To understand emotions of market by using market itself.

To understand the chart patterns and technical terms and how decisions are being made with the help of it.

4.2 Problem identification:

Research always starts with a problem. In this study, the problem statement is “Technical Analysis of commodity market taking Gold and Crude Oil.”

4.3 Assumptions and benefits of study:

The field of technical analysis is based on three assumptions : 1.     The market discounts everything. 2.     Price moves in trends. 3.     History tends to repeat itself.

Benefits of study:

This study will help those investors who are interested in commodity trading in future.

Technical analysis focuses on price movement. The primary focus of technical analysis is on the movement of prices. Charts show how prices are moving (or not moving), when prices are trending, and the strength of those trends. Volume, oscillators and momentum give a clearer picture of market action. And this information can be obtained at a glance.

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Trends are easily found. Taking a look at a moving average line quickly displays a price that is trending or stuck in a range. Whether it is up, down, or sideways, a chart can quickly display a currency that is exhibiting a trend. Trends are critical to technicians because a currency is likely to continue moving in the direction of the trend. Charts show them clearly and quickly.

Patterns are easily identified. One of the basic tenets of market action is that it repeats itself in clear, unmistakable patterns. Using charts helps the trader to find patterns and predict price movements based on these patterns. Like star constellations, patterns can be complex and complicated. Head-and-shoulders patterns, rounding tops and bottoms, ascending and descending triangles, and double and triple tops are proven patterns that many currency prices will follow. Hence, they have strong predictive powers. They can be impossible to detect without using a chart.

Charting is quick and inexpensive. Computers have relieved us from the burden of performing complex mathematical operations. The Internet has a wealth of different technical indicators available that can help the trader to make more profitable and more reliable trades. Many brokers offer these types of technical indicators to their clients as part of their package. Technical analysis is less time consuming and less costly than fundamental analysis. It can be performed in less than five minutes and the services are very often offered for free or at a nominal cost.

Charts provide a wealth of information. Charts and indicators can provide a huge amount of information in only a few moments. Trends are easily found. Support and resistance levels are quickly identified. Momentum, volatility, and trading patterns appear quickly and easily. There are more than fifty kinds of indicators and they each provide information on different aspect of how a currency is moving. This information is critical to technicians to make sound and profitable trades.

4.4 Research design:

“A research design is the arrangement of conditions for collections and analysis of data in a manner that aims to relevance to the research purpose with economy in procedure. In fact, research design is the

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conceptual structure within which research is conducted; it constitutes the blue print for collection, measurement and analysis of data.”

A number of different design approaches exist; they may be exploratory study, formal study, causal, cross sectional, descriptive etc.

For this study Researcher has chosen DESCRIPTIVE research design.

4.5 Sampling:

Sample Design: Selecting Commodity market for analysis.

Sample Size: Selecting Gold and Crude Oil data of last three years.

4.6 Research tools:

Secondary data: last three years of Gold and Crude Oil.

Software: Meta stock Professionals

Charts: RSI, MACD, BAR, EMA.

4.7 Data collection:

Secondary data sources:

Internet

Books

4.8 Limitation of study:

Below are the five ways that technical analysis can fail.

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Geopolitical events.

Economic data.

Natural disasters.

Acts of terrorism.

Internal Conflict or war.

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CHAPTER 5

DATA ANALYSIS

Introduction to Chart of Gold:

122

In the chart, First top part is showing Relative Strength Index of

Gold for January 2007 to first week of July 2009.

The middle part of the chart is showing MACD (Moving Average

Convergence and Divergence) of Gold for January 2007 to first

week of July 2009.

The bottom part of the chart contains three parts as follows.

1. Bar chart of crude oil for January 2007 to first week

of July 2009.

2. (Exponential Moving Average) 30 days EMA (Blue line) (Short

term) and 100 days EMA (Red line) (Long term).

3. Volume of Gold for the same period.

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124

125

126

Analysis of Bar Chart and EMA:

Last week of August 2007

Let us have a look at what the 3 years bar chart pattern of Gold is

indicating:

The 30 days EMA crosses 100 days EMA from downside by giving a

buy signal at a price of around 9500, which is long-term bullish

crossover. The 14 days RSI is already in strong buy mode, Volumes

accompanying the breakout are encouraging, MACD is also in positive

zone and thereby has given the confirmation to a bullish outlook that led

to the sharp high from 9500 to above 13000.

Last week of November 2008

On the daily chart 30 days EMA is still above the 100 days EMA

from upside, by giving a sell signal at a price of around 13500, which is

long-term bullish crossover. The 14 days RSI is already in strong buy

mode, Volumes accompanying the breakout are encouraging, MACD is

also in positive zone and thereby has given the confirmation to a bullish

outlook that led to the sharp high from 13500 to above 16000 high.

Last week of June 2009

As we see on the chart after accumulating between14000 to

15000 for last 3 months, stock had broken out from trading range with

lower volumes and MACD is going negative and RSI also indicating same

thing.

RSI is in the middle range which suggest that Gold is still

negatively pressured, forming consecutive bearish crossover.

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Analysis of RSI:

Sell period:

RSI shows the Sell period as it reaches to 70, in the following time.

For year 2007.

1. Whole month of February.

2. Last week December.

For year 2008.

1. Last week of January.

2. Mid week of March.

3. Last three weeks of September.

4. Last two weeks of November.

5. Last week of December.

For year 2009.

1. Last week of January.

Over Bought Zone:

RSI shows the Over Bought zone as it reaches above 70, in the following time

For year 2007.

3. Whole month of September.

4. Last three weeks of October.

5. First week of November.

For year 2008.

1. First two weeks of January.

2. Last week of February.

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3. Mid week of March.

For year 2009.

1. Mid week of February.

Buy Period:

RSI shows the Buy period as it reaches to 30, in the following time

For year 2007.

1. First week of January.

2. Last week of April.

3. Last week of June

4. First week of July.

For year 2008.

1. Ending of March.

2. Ending of April.

3. Second week of September.

For year 2009.

1.First three week of March.

Over Sold Zone:

RSI shows the Over Sold Zone as it reaches Below 30, in the following time

For year 2007.

1. Last three week of May.

For year 2008.

1. First two week of April.

For year 2009.

There is no over sold zone till June 2009.

129

Introduction to Chart of Crude Oil:

In the chart, First top part is showing Relative Strength Index of

Crude oil for January 2007 to first week of July 2009.

The middle part of the chart is showing MACD (Moving Average

Convergence and Divergence) of Crude oil for January 2007 to first

week of July 2009.

The bottom part of the chart contains three parts as follows.

1. Bar chart of crude oil for January 2007 to first week of July 2009.

2. (Exponential Moving Average) 30 days EMA (Blue line) (Short

term) and 100 days EMA (Red line) (Long term)

3. Volume of Crude Oil for the same period.

130

131

132

133

134

Analysis of Bar Chart and EMA:

Last week of June 2007

Let us have a look at what the 3 years bar chart pattern of Crude Oil

is indicating:

The 30 days EMA crosses 100 days EMA from downside by giving a

buy signal at a price of 2860, which is long-term bullish crossover. The

14 days RSI is already in strong buy mode, Volumes accompanying the

breakout are encouraging, MACD is also in positive zone and thereby has

given the confirmation to a bullish outlook that led to the sharp high from

2860 to above 6000.

Last week of October 2008

On the daily chart 30 days EMA crosses 100 days EMA from

upside, by giving a sell signal at a price of 4600, which is long-term

bearish crossover. The 14 days RSI is already in selling mode as it is

heading lower, MACD is in negative zone and Volumes too are very high

showing delivery base selling in market that led to the sharp decline in

price of the script from high 4600 to 1600 low.

First Week of July 2009

As we see on the chart after accumulating between 2500 to 3500

for last 3 months, stock had broken out from trading range with higher

volumes and 30 days EMA also sustaining above 100 days EMA which

again shown a bullish sign. RSI and MACD both indicators also confirms

the signal.

After the 1st target the stock has corrected a bit we recommended to still

hold for a target as July 2008.

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Analysis of RSI:

Sell period:

RSI shows the Sell period as it reaches to 70, in the following time

For year 2007.

1. In last two week of March.

2. Mid week of June.

3. Last week of November and December.

For year 2008.

1. First week of January.

2. Mid week of February.

3. Whole April month.

4. First and last of week June.

5. Last week of July.

For year 2009.

1. Last three weeks of March.

2. First week of May and June.

Over Bought Zone:

RSI shows the Over Bought zone as it reaches above 70, in the following time

For year 2007.

1. Mid week of July.

2. Second week of September.

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3. Last week of October.

4. First week of November.

For year 2008.

1. Last week of February.

2. First two week of March.

3. Whole May month.

For year 2009.

1. Last week of May.

2. Second week of June.

Buy Period:

RSI shows the Buy period as it reaches to 30, in the following time

For year 2007.

1. First week of March.

2. Third week of August.

3. First week of December.

For year 2008.

1. Third week of January.

2. Last week of June.

3. Last three weeks of October.

4. Whole November month.

For year 2009.

1. Mid week of January.

2. Second week of February.

Over Sold Zone:

RSI shows the Over Sold Zone as it reaches below 30, in the following time

For year 2007.

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1. First three weeks of January.

For year 2008.

1. Second week of October.

For year 2009.

There is no over sold zone till June 2009.

CHAPTER 6

Findings, Conclusions and suggestions

138

Findings:

As base on study, there are some findings such as…

Gold 2007-2009

There is up and down in the year 2007 in gold. And it is following head and shoulder pattern of chart.

In year 2008, the gold was in bullish crossover in some of the month.

Where in staring of 2009, it was highest high in last three years.

Where in 2007 it was highest low.

And as in last three months of chart May to July 2009; MACD is continuously going downtrend by showing negative effect. Which suggest traders and investors should be ready for bearish crossover for future.

Even the RSI for last three months may to July 2009; it is neither in buy nor in sell position.

Even number of volumes for Gold is also declining in the last three months.

Crude Oil 2007-2009

The prices of Crude oil have gone highest high in year July 2008.

And highest low was in staring of 2009.

At the end of June 2009, RSI is showing same position as gold.

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No. of Volume for Crude Oil is increasing in last three months may to July 2009.

Moreover MACD is in its Positive direction or trend.

So it leads to the hope for highs of Crude oil in future.

Conclusions:

Technical analysis has its strengths, most importantly its timeliness. Technical analysis is concerned with what is actually happening in a market. This discipline also has its weaknesses, namely its reliance, for the most part, on normal probabilities and repetition in trading patterns.

It should be remembered that volume can sometimes sputter for reasons unrelated to market momentum. Volume, for example, is typically light ahead of market holidays or in the advent of key report or statistical releases.

Volume The volume section of the chart indicates the number of commodity contracts changing hands on a given day. The greater the volume, the higher the vertical bar on the chart. Volume is a useful measure of the strength of price movements. High volume tends to confirm a price trend, while low volume warns of flagging trading interest, creating doubt regarding the viability of the prevailing trend.

It should be remembered that volume can sometimes sputter for reasons unrelated to market momentum. Volume, for example, is typically light ahead of market holidays or in the advent of key report or statistical releases.

In Summary

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Technically, gold's chart indicates:

Prices: an intermediate-term downtrend following a failure to score new highs in early July

RSI: a continuing downtrend

MACD: a continuing downtrend(negative)

Volume/Open Interest: a recent shift to bearish sentiment, matching the strength of the market's previous bullish conviction.

Technically, Crude oil's chart indicates:

Prices: an intermediate-term uptrend following a success to score new highs in early July

RSI: a continuing uptrend

MACD: a continuing uptrend (positive)

Volume/Open Interest: a recent shift to bullish sentiment, matching the strength of the market's previous bearish conviction.

Suggestions:

Based on the charts and explanation above, there are some suggestions like...

In Gold, general trend is going downward, so it is advisable to investors for making new buy or stop loss.

In Crude oil, the trend is going upward so investors can make profitable contracts in future.

Investor and Traders should get knowledge about technical terms and chart patterns to sustain their loss.

The firm like Jainam is providing daily technical services to their sub brokers and clients so this type of approach should be taken care to make aware about the current market and its analysis.

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The trading of commodity is being done through the time of Jesus where he has said in the bible about wheat traded so it is not a new that commodities are being trade. But there is lack of knowledge about the commodity market and its analysis which can be fulfilled by this type of technical analysis.

Bibliography:

Website:

www.bseindia.com

www.nseindia.com

www.mcxindia.com

http://www.economywatch.com/stock-markets-in-world/

www.investopedia.com/university/ technical /

http://www.indianmba.com/Occasional_Papers/OP62/op62.html

http://forextrading.about.com/od/technicalanalysis/a/5benefitsta_ro.htm

http://forextrading.about.com/od/technicalanalysis/a/taproblems_ro.htm

www.jainam.in

www.kitco.com

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www.indiamba.com

www.amfiindia.com

Reference Books:

Security analysis and portfolio management 14th edition V.K. Bhalla (for technical analysis)

Business Research Methodology J.K. Sachdeva Himalaya Publishing House.

Software:

Meta Stock Professionals

Annexure:

List of Person Contacted in Organization:

Sr. No. Name Designation Contact No.

1 Mr. Kamlesh Patel Head of Dp 0261-3087011

2 Ms. Vibhati Arya Operator 0261-3087007

3 Mr. Hardik Shah Research Exe. 0261-3087008

143

4 Mr. Rohan Mehta Research Manager 0261-3087014

5 Mrs. Jigna Patel Researcher 0261-3087014

6 Mrs. Chetna Bhandari Marketing Manager

9925282225

7 Mr. Devesh Shah Commodity Head 0261-3087015

8 Miss Rupal Pachhayaa Trading Officer 0261-3087013

9 Mr. Nikhil Tandel IT Exe. 0261-3087006

10 Mr. Mahavir Shah Mutual Fund Exe. 0261-3087004

11 Mr. Dhawal Panchal Customer Care Head

0261-3087009

12 Miss Shital Mehta HR head 0261-3087003

13 Mr. Biranj Patel HR Seniro Exe. 9375798005

Weekly Reports

Week No: 1

Start date: 21 st may 2009 End date: 23 rd may 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

144

1. On Thursday (Dt.. 21/5/2009) History of Jainam Share Consultant Pvt. Ltd. & information about BSE

2. On Friday (Dt. 22/5/2009) Discussion about various department of Jainam pvt. Ltd.

3. On Saturday (Dt. 23/5/2009) Holiday from organization

Project Report Progress:

1. Some portion of Industry profile.

Submitted To: Varun Dhingra

Date of reporting: 23rd may, 2009

Week No: 2

Start date: 25 th may 2009 End date: 30 th may 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

3. On Monday (Dt.. 25/5/2009) Visiting HR department

145

4. On Tuesday (Dt. 26/5/2009) HR department activities, Role of HR manager

5. On Wednesday (Dt. 27/5/2009) Reading Induction manual 6. On Thursday (Dt. 28/5/2009) Visiting Marketing Department7. On Friday (Dt. 29/5/2009) Marketing Dept. functions and other

information 8. On Saturday (Dt. 30/5/2009) Holiday from organization

Project Report Progress:

1. Some portion of Industry profile.2. Company profile3. Department like HR and marketing

Submitted To: Varun Dhingra

Date of reporting: 30th may, 2009

Week No: 3

Start date: 1 st June 2009 End date: 6 th June 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

146

Work completed in this Week:

2. On Monday (Dt. 1/6/2009) Visiting IT department3. On Tuesday (Dt. 2/6/2009) Visiting R & D department4. On Wednesday (Dt. 3/6/2009) Visiting Mutual Fund department5. On Thursday (Dt. 4/6/2009) Visiting Mutual Fund department6. On Friday (Dt. 5/6/2009) Discussion of Various topics for Project

report7. On Saturday (Dt. 6/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.2. Company profile3. Department like HR and marketing4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual

Fund

Submitted To: Varun Dhingra

Date of reporting: 6th June, 2009

Week No: 4

Start date: 8 th June 2009 End date: 13 th June 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

147

Work completed in this Week:

8. On Monday (Dt. 8/6/2009) Visiting customer care department9. On Tuesday (Dt. 9/6/2009) Visiting commodity department10. On Wednesday (Dt. 10/6/2009) Visiting MCX 11. On Thursday (Dt. 11/6/2009) Visiting DP department12. On Friday (Dt. 12/6/2009) Visiting KYC department13. On Saturday (Dt. 13/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.2. Company profile3. Department like HR and marketing4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual

Fund5. Department like (a) Customer care (b) Commodity (c) KYC &

DP

Submitted To: Varun Dhingra

Date of reporting: 13th June, 2009

Week No: 5

Start date: 15 th June 2009 End date: 20 th June 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

148

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

14. On Monday (Dt. 15/6/2009) Visiting Security department15. On Tuesday (Dt. 16/6/2009) Visiting General A/C department16. On Wednesday (Dt. 17/6/2009) Visiting A/C & Banking Department17. On Thursday (Dt. 18/6/2009) Visiting Collection department18. On Friday (Dt. 19/6/2009) Visiting Marketing & Sales Department19. On Saturday (Dt. 20/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.2. Company profile3. Department like HR and marketing4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual

Fund5. Department like (a) Customer care (b) Commodity (c) KYC &

DP

Submitted To: Varun Dhingra

Date of reporting: 20th June, 2009

Week No: 6

Start date: 22 nd June, 2009 End date: 27 th June, 2009

149

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

20. On Monday (Dt.. 22/6/2009) study on detailed topic on commodity market

21. On Tuesday (Dt. 23/6/2009) study on detailed topic on commodity market

22. On Wednesday (Dt. 24/6/2009) study on detailed topic on commodity market

23. On Thursday (Dt. 25/6/2009) study on detailed topic on commodity market

24. On Friday (Dt. 26/6/2009) study on detailed topic on commodity market

25. On Saturday (Dt. 27/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.2. Company profile3. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual

Fund (e) HR4. Department like (a) Customer care (b) Commodity (c) KYC &

DP

Submitted To: Varun Dhingra

Date of reporting: 27th June, 2009

150

Week No: 7

Start date: 29 th June, 2009 End date: 04 th July, 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

26. On Monday (Dt.. 29/6/2009) study on detailed topic on commodity market

27. On Tuesday (Dt. 30/6/2009) study on detailed topic on commodity market

28. On Wednesday (Dt. 01/7/2009) study on detailed topic on commodity market

29. On Thursday (Dt. 02/7/2009) study on detailed topic on commodity market

30. On Friday (Dt. 03/7/2009) study on detailed topic on commodity market

31. On Saturday (Dt. 04/7/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.2. Company profile3. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual

Fund (e) HR4. Department like (a) Customer care (b) Commodity (c) KYC &

DP5. Collection of Secondary Data.

151

Submitted To: Varun Dhingra

Date of reporting: 4th July, 2009

Week No: 8

Start date: 6 th July, 2009 End date: 11 th July, 2009

Roll No: 14 Name of the student: Soyeb R. Jindani

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

32. On Monday (Dt.. 6//2009) study on detailed topic on technical analysis of gold and crude oil

33. On Tuesday (Dt. 7/7/2009) study on detailed topic on technical analysis of gold and crude oil

34. On Wednesday (Dt. 8/7/2009) study on detailed topic on technical analysis of gold and crude oil

35. On Thursday (Dt. 9/7/2009) study on detailed topic on technical analysis of gold and crude oil

36. On Friday (Dt. 10/7/2009) study on detailed topic on technical analysis of gold and crude oil

37. On Saturday (Dt. 11/7/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

a) Chapter 1 Industry profileb) Chapter 2 Company profile

152

c) Chapter 3 Theoretical Framework – Technical analysisd) Chapter 4 Research , Data collection , data presentation

Submitted To: Varun Dhingra

Date of reporting: 11th July, 2009

153