1

CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY
1.1. Introduction
1.2. Scope of the Study
1.3. Review Of Literature
1.4. Objectives of the Study
1.5. Collection of data
1.6. Research Methodology
1.7. Framework of Analysis
1.8. Chapter scheme












2

CHAPTER I
1.1. Introduction
A stock exchange is an entity that provides services for stock brokers and
traders to trade stocks, bonds, and other securities. Stock exchanges also provide
facilities for issue and redemption of securities and other financial instruments, and
capital events including the payment of income and dividends. Securities traded on a
stock exchange include shares issued by companies, unit trusts, derivatives, pooled
investment products and bonds. To be able to trade a security on a certain stock
exchange, it must be listed there. Usually, there is a central location at least for record
keeping, but trade is increasingly less linked to such a physical place, as modern
markets are electronic networks, which gives those advantages of increased speed and
reduced cost of transactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to investors is by definition done in
the primary market and subsequent trading is done in the secondary market. A stock
exchange is often the most important component of a stock market. Supply and
demand in stock a market is driven by various factors that, as in all free markets,
affect the price of stocks (see stock valuation).
There is usually no compulsion to issue stock via the stock exchange itself, nor must
stock be subsequently traded on the exchange. Such trading is said to be off exchange
or over-the-counter. This is the usual way that derivatives and bonds are traded.
Increasingly, stock exchanges are part of a global market for securities.
Securities markets took centuries to develop. The idea of debt dates back to the
ancient world, as evidenced for example by ancient Mesopotamian clay tablets
recording interest-bearing loans. There is little consensus among scholars as to when
corporate stock was first traded. Some see the key event as the Dutch East India
Company's founding in 1602, while others point to earlier developments. Economist
Ulrike Malmendier of the University Of California At Berkeley argues that a share
market existed as far back as ancient Rome.
NASDAQ was the first electronic stock exchange. On February 8, 1971, NASDAQ,
the world's first electronic stock exchange, started its operations.
3

1.2. Scope of the study
The present study is to analyze the price movement and the performance of
nifty in Indian stock market.
The investors should have a fair knowledge of the sector and the companies to
make value investment. The Scope of the Study is limited to the top 10 nifty holdings.
An overall analysis of the companies has been undertaken in terms of the risk level
and returns yielded by the companies. The research process will bring visibility for
the company and facilitate investors to make informed investment decision. Thus, the
Study has much greater scope and applicability with respect to the suggestions given
from the analysis and interpretation if these properly implemented.
1.3. Review of Literature
Index Calculation On S&P Cnx Nifty
Asst. Author : K.LOGESHWARI
Professor, School of Management studies
Karpagam University,Coimbatore.

1. A futures contract is a type of derivative instrument or financial contract in
which two parties agree to transact a set of financial instruments or physical
commodities for future delivery at a particular price. In other words, a future contract
is a standardized agreement between the seller (short position holder) of the contract
and the buyer (long position holder), traded on a futures exchange, to buy or sell a
certain underlying instrument at a certain date in the future, at a pre-set price. The
future date is called the delivery date or final settlement date. The pre-set price is
called the futures price. The price of the underlying asset on the delivery date is
called the settlement price. The S&P CNX NIFTY is a 50 stock, India, accounting
for 21 diversified sectors of the economy. It is used for a variety of purposes, such as
benchmarking fund portfolios, index based derivatives and index funds. The S&P
CNX NIFTY is derived from economic research and is created for those interested in
investing and trading in Indian equities.
4

2.Stein (1987) in his pioneering theoretical model concluded that opening a
futures market improves risk sharing and therefore reduces price volatility. and if the
speculators observe a noisy but informative signal, the hedgers react to the noise in
the speculative trades producing an increase in volatility. These uninformed traders
could destabilize the cash market.

3. Raju and Karnade (2003) also studied the behavior of volatility of the S&P CNX
NIFTY index after the introduction of derivatives trading.
4. Thenmozhi (2002) reported decline in volatility due to increased flow of
information while Shenbagaraman (2003) did not find significant impact on market
volatility in India.
5. Bandivadekar and Ghosh (2003) studied volatility behaviour of both NSE Nifty
and BSE Sensex after the introduction of futures trading and documented futures
effects in the volatility behavior of NSE Nifty.
6. Naresh (2006) has found that in National Stock Exchange of India Ltd. (NSE), the
market participants are satisfied with the existing systems like the investors
protection, position limits, contract on the new indices, and use of derivatives by
mutual funds.
1.4. Objectives of the study
The following are the main objectives of the study
i. To analyze the Performance of Nifty price movement in National Stock
Exchange.
ii. To analyze the technical outlook of Nifty Price of NSE
iii. To forecast the future e price targets of Nifty through technical analysis.
iv. To make suggestions.
1.5. Collection of data
There are two kinds of data; they are primary data and secondary data. My
dissertation consists of both primary data and secondary data. The primary data is
5

collected directly from the branch Assistant manager of Sharekhan limited. And the
secondary data is collected through websites and the official documents from the
company and from company annual report.
1.6. Research Methodology
The methodology used in this study is analytical and descriptive in nature
where the researcher has used facts or information already available and studied the
characteristics of a particular group and thereby making a critical evaluation of the
study.
1.7. Framework of Analysis
The following tools are used for analysis.
i. Simple Moving Average Method
Short term moving average = Total of closing price for last 12 days/12
Medium term moving average = Total of closing price for last 48 days/48
Long term moving average = Total of closing price for last 200 days/200
ii. Retracement Theory
Retracement Levels = Cycle Difference*Theoretical level/100
Crucial Levels= One year high Retracement level
Crucial Levels (Upside) = One year high + Retracement levels
Resistance Levels (Downside) = One year low Retracement levels
1.8. Chapter Scheme
The dissertation consists of five chapters: They are
The first chapter contains Introduction and Design of the study. It includes Scope
of the study, objectives of the study, research methodology, period of the study,
framework of analysis, scheme of the report.
6

The second chapter contains An overview of stock market. It includes history of
stock exchange, roles of stock exchanges, derivatives market, and types of
Derivatives.
The third chapter contains Profile of Sharekhan limited. It includes company
profile, polices and procedure of the company, services provided by the company.
The fourth chapter contains Data Analysis and Interpretation.
The fifth chapter contains summary of findings, suggestions and conclusion of the
project report.
























7

CHAPTER II
AN OVERVIEW OF STOCK MARKET
2.1. Introduction
2.2. Brief history of stock exchanges
2.3. Market Basics
2.4. Stock Exchange board of India
2.5. Dematerialization
2.6. Advantages of Depository Services
2.7. Nifty Market













8

CHAPTER II
2.1. Introduction
The origin of the stock market in India goes back to the end of the eighteenth
century when long-term negotiable securities were first issued. However, for all
practical purposes, the real beginning occurred in the middle of the nineteenth century
after the enactment of the companies Act in 1850, which introduced the features of
limited liability and generated investor interest in corporate securities.
An important early event in the development of the stock market in India was
the formation of the native share and stock brokers 'Association at Bombay in 1875,
the precursor of the present day Bombay Stock Exchange. This was followed by the
formation of associations/exchanges in Ahmadabad (1894), Calcutta (1908), and
Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly
in buoyant periods to recede into oblivion during depressing times subsequently.
Stock exchanges are intricacy inter-woven in the fabric of a nation's economic
life. Without a stock exchange, the saving of the community- the sinews of economic
progress and productive efficiency- would remain underutilized. The task of
mobilization and allocation of savings could be attempted in the old days by a much
less specialized institution than the stock exchanges. But as business and industry
expanded and the economy assumed more complex nature, the need for 'permanent
finance' arose. Entrepreneurs needed money for long term whereas investors
demanded liquidity the facility to convert their investment into cash at any given
time. The answer was a ready market for investments and this was how the stock
exchange came into being.
Stock exchange means anybody of individuals, whether incorporated or not,
constituted for the purpose of regulating or controlling the business of buying, selling
or dealing in securities. These securities include:
(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities
of a like nature in or of any incorporated company or other body corporate;
(ii) Government securities; and
9

(iii) Rights or interest in securities.
The Bombay Stock Exchange (BSE) and the National Stock Exchange of
India Ltd (NSE) are the two primary exchanges in India. In addition, there are 22
Regional Stock Exchanges. However, the BSE and NSE have established themselves
as the two leading exchanges and account for about 80 per cent of the equity volume
traded in India. The NSE and BSE are equal in size in terms of daily traded volume.
The average daily turnover at the exchanges has increased from Rs 851 Crores in
1997-98 to Rs 1,284 Crores in 1998-99 and further to Rs 2,273 Crores in 1999-2000
(April - August 1999). NSE has around 1500 shares listed with a total market
capitalization of around Rs 9, 21,500 Crores.
The BSE has over 6000 stocks listed and has a market capitalization of around
Rs 9, 68,000 Crores. Most key stocks are traded on both the exchanges and hence the
investor could buy them on either exchange. Both exchanges have a different
settlement cycle, which allows investors to shift their positions on the bourses. The
primary index of BSE is BSE Sense comprising 30 stocks. NSE has the S&P NSE 50
Index (Nifty) which consists of fifty stocks. The BSE Sensex is the older and more
widely followed index.
Both these indices are calculated on the basis of market capitalization and
contain the heavily traded shares from key sectors. The markets are closed on
Saturdays and Sundays. Both the exchanges have switched over from the open outcry
trading system to a fully automated computerized mode of trading known as BOLT
(BSE on Line Trading) and NEAT (National Exchange Automated Trading) System.
It facilitates more efficient processing, automatic order matching, faster
execution of trades and transparency; the scrip's traded on the BSE have been
classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z' groups. The 'A' group shares represent
those, which are in the carry forward system (Badla). The 'F' group represents the debt
market (fixed income securities) segment. The 'Z' group scrip's are the blacklisted
companies. The 'C' group covers the odd lot securities in 'A', 'B1' & 'B2' groups and
Rights renunciations. The key regulator governing Stock Exchanges, Brokers,
Depositories, Depository participants, Mutual Funds, FIIs and other participants in
10

Indian secondary and primary market is the Securities and Exchange Board of India
(SEBI) Ltd.
2.2. Brief History of Stock Exchanges
Do you know that the world's foremost marketplace New York Stock
Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street)
over 200 years ago? Similarly, India's premier stock exchange Bombay Stock
Exchange (BSE) can also trace back its origin to as far as 125 years when it started as
a voluntary non-profit making association.
News on the stock market appears in different media every day. You hear
about it any time it reaches a new high or a new low, and you also hear about it daily
in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and
stock markets are important. Stocks of public limited companies are bought and sold
at a stock exchange. But what really are stock exchanges? Known also as the stock
market or bourse, a stock exchange is an organized marketplace for securities (like
stocks, bonds, options) featured by the centralization of supply and demand for the
transaction of orders by member brokers, for institutional and individual investors.
2.3. Market Basics
a. Electronic trading
Electronic trading eliminates the need for physical trading floors. Brokers can
trade from their offices, using fully automated screen-based processes. Their
workstations are connected to a Stock Exchange's central computer via satellite using
Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the
Exchange's central computer and are matched electronically.
b. Exchanges in India
The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE)
are the country's two leading Exchanges. There are 20 other regional Exchanges,
connected via the Inter-Connected Stock Exchange (ICSE). The BSE and NSE allow
nationwide trading via their VSAT systems.
11

c. Index
An Index is a comprehensive measure of market trends, intended for investors
who are concerned with general stock market price movements. An Index comprises
stocks that have large liquidity and market capitalization. Each stock is given a weight
age in the Index equivalent to its market capitalization. At the NSE, the capitalization
of NIFTY (fifty selected stocks) is taken as a base capitalization, with the value set at
1000. Similarly, BSE Sensitive Index or Sensex comprises 30 selected stocks. The
Index value compares the day's market capitalization vis--vis base capitalization and
indicates how prices in general have moved over a period of time.
d. Execute an order
Select a broker of your choice and enter into a broker-client agreement and fill
in the client registration form. Place your order with your broker preferably in writing.
Get a trade confirmation slip on the day the trade is executed and ask for the contract
note at the end of the trade date.
e. Need a broker
As per SEBI (Securities and Exchange Board of India.) regulations, only
registered members can operate in the stock market. One can trade by executing a
deal only through a registered broker of a recognized Stock Exchange or through a
SEBI-registered sub-broker.
f. Contract note
A contract note describes the rate, date, time at which the trade was transacted
and the brokerage rate. A contract note issued in the prescribed format establishes a
legally enforceable relationship between the client and the member in respect of
trades stated in the contract note. These are made in duplicate and the member and the
client both keep a copy each. A client should receive the contract note within 24 hours
of the executed trade.


12

g. Split
A Split is book entry wherein the face value of the share is altered to create a
greater number of shares outstanding without calling for fresh capital or altering the
share capital account. For example, if a company announces a two-way split, it means
that a share of the face value of Rs 10 is split into two shares of face value of Rs 5
each and a person holding one share now holds two shares.
h. Buy Back
As the name suggests, it is a process by which a company can buy back its
shares from shareholders. A company may buy back its shares in various ways: from
existing shareholders on a proportionate basis; through a tender offer from open
market; through a book-building process; from the Stock Exchange; or from odd lot
holders.
A company cannot buy back through negotiated deals on or off the Stock
Exchange, through spot transactions or through any private arrangement.
i. Settlement cycle
The accounting period for the securities traded on the Exchange. On the NSE, the
cycle begins on Wednesday and ends on the following Tuesday, and on the BSE the
cycle commences on Monday and ends on Friday. At the end of this period, the
obligations of each broker are calculated and the brokers settle their respective
obligations as per the rules, bye-laws and regulations of the Clearing Corporation. If a
transaction is entered on the first day of the settlement, the same will be settled on the
eighth working day excluding the day of transaction. However, if the same is done on
the last day of the settlement, it will be settled on the fourth working day excluding
the day of transaction.
j. Rolling settlement
The rolling settlement ensures that each day's trade is settled by keeping a fixed
gap of a specified number of working days between a trade and its settlement. At
present, this gap is five working days after the trading day. The waiting period is
13

uniform for all trades. In a Rolling Settlement, all trades outstanding at end of the
day have to be settled, which means that the buyer has to make payments for
securities purchased and seller has to deliver the securities sold. In India, we have
adopted the T+5 settlements cycle, which means that a transaction entered into on
Day 1 has to be settled on the Day 1 + 5 working days, when funds pay in or
securities pay out takes place.
Advantages of Rolling Settlement
As mentioned earlier, this is the system practiced in developed countries. Pay
outs are quicker than in weekly settlements, and investors will benefit from increased
liquidity. The other benefit of the modified system is that it keeps cash and forward
markets separate. In the current system, the trader has five days to square off his
transaction which leads to a high level of speculation as people even without funds
tend to "play" the market. During volatile markets, especially in a bearish market, this
often leads to a payment problem which has dogged the Indian stock exchanges for a
long time. It provides for a higher degree of safety, and once mechanisms such as
futures and stock-lending become popular, it would result in quality speculation and
genuine investor interest.
As a seller, in order to ensure smooth settlement you should deliver the shares
to your broker immediately after getting the contract note for sale but in any case
before the pay-in day. Similarly, as a buyer, one should pay immediately on the
receipt of the contract note for purchase but in any case before the pay-in day.
k. Short selling
Short selling is a legitimate trading strategy. It is a sale of a security that the seller
does not own, or any sale that is completed by the delivery of a security borrowed by
the seller. Short sellers take the risk that they will be able to buy the stock at a more
favorable price than the price at which they "sold short."
The selling of a security that the seller does not own, or any sale that is completed by
the delivery of a security borrowed by the seller, Short sellers assume that they will be
able to buy the stock at a lower amount than the price at which they sold short.
14

l. Auction
An auction is conducted for those securities that members fail to deliver/short
deliver during pay-in. Three factors primarily give rise to an auction: short deliveries,
un-rectified bad deliveries, and un-rectified company objections
i. Separate market for auctions
The buy/sell auction for a capital market security is managed through the
auction market. As opposed to the normal market where trade matching is an on-
going process, the trade matching process for auction starts after the auction period is
over.
ii. If the shares are not bought in the auction
If the shares are not bought at the auction i.e. if the shares are not offered for sale,
the Exchange squares up the transaction as per SEBI guidelines. The transaction is
squared up at the highest price from the relevant trading period till the auction day or
at 20 per cent above the last available Closing price whichever is higher. The pay-in
and pay-out of funds for auction square up is held along with the pay-out for the
relevant auction.
m. Bad Delivery
SEBI has formulated uniform guidelines for good and bad delivery of
documents. Bad delivery may pertain to a transfer deed being torn, mutilated,
overwritten, defaced, or if there are spelling mistakes in the name of the company or
the transfer. Bad delivery exists only when shares are transferred physically. In
"Demat" bad delivery does not exist.
2.4. Stock & Exchange Board of India
Regulation of business in the stock exchanges
Under the SEBI Act, 1992, the SEBI has been empowered to conduct
inspection of stock exchanges. The SEBI has been inspecting the stock exchanges
once every year since 1995-96. During these inspections, a review of the market
15

operations, organizational structure and administrative control of the exchange is
made to ascertain whether:
a. the exchange provides a fair, equitable and growing market to investors
b. the exchange's organization, systems and practices are in accordance with the
Securities Contracts (Regulation) Act (SC(R) Act), 1956 and rules framed
there under
c. the exchange has implemented the directions, guidelines and instructions
issued by the SEBI from time to time
d. The exchange has complied with the conditions, if any, imposed on it at the
time of renewal/ grant of its recognition under section 4 of the SC(R) Act,
1956.
During the year 1997-98, inspection of stock exchanges was carried out with a
special focus on the measures taken by the stock exchanges for investor's protection.
Stock exchanges were, through inspection reports, advised to effectively follow-up
and redress the investors' complaints against members/listed companies. The stock
exchanges were also advised to expedite the disposal of arbitration cases within four
months from the date of filing.
During the earlier years' inspections, common deficiencies observed in the
functioning of the exchanges were delays in post trading settlement, frequent clubbing
of settlements, delay in conducting auctions, inadequate monitoring of payment of
margins by brokers, non-adherence to Capital Adequacy Norms etc. It was observed
during the inspections conducted in 1997-98 that there has been considerable
improvement in most of the areas, especially in trading, settlement, collection of
margins etc.
2.5. Dematerialization
Dematerialization in short called as 'demat' is the process by which an investor
can get physical certificates converted into electronic form maintained in an account
with the Depository Participant. The investors can dematerialize only those share
certificates that are already registered in their name and belong to the list of securities
admitted for dematerialization at the depositories.
16

Depository: The organization responsible to maintain investor's securities in
the electronic form is called the depository. In other words, a depository can therefore
be conceived of as a "Bank" for securities. In India there are two such organizations
viz. NSDL and CDSL. The depository concept is similar to the Banking system with
the exception that banks handle funds whereas a depository handles securities of the
investors. An investor wishing to utilize the services offered by a depository has to
open an account with the depository through Depository Participant.
Depository Participant: The market intermediary through whom the
depository services can be availed by the investors is called a Depository Participant
(DP). As per SEBI regulations, DP could be organizations involved in the business of
providing financial services like banks, brokers, custodians and financial institutions.
This system of using the existing distribution channel (mainly constituting DPs) helps
the depository to reach a wide cross section of investors spread across a large
geographical area at a minimum cost. The admission of the DPs involves a detailed
evaluation by the depository of their capability to meet with the strict service
standards and a further evaluation and approval from SEBI. Realizing the potential,
all the custodians in India and a number of banks, financial institutions and major
brokers have already joined as DPs to provide services in a number of cities.
2.6. Advantages of a depository services
Trading in demat segment completely eliminates the risk of bad deliveries. In
case of transfer of electronic shares, you save 0.5% in stamp duty. Avoids the cost of
courier/ notarization/ the need for further follow-up with your broker for shares
returned for company objection No loss of certificates in transit and saves substantial
expenses involved in obtaining duplicate certificates, when the original share
certificates become mutilated or misplaced.
Lower interest charges for loans taken against demat shares as compared to the
interest for loan against physical shares. RBI has increased the limit of loans availed
against dematerialized securities as collateral to Rs 20 lakh per borrower as against Rs
10 lakh per borrower in case of loans against physical securities. RBI has also reduced
the minimum margin to 25% for loans against dematerialized securities, as against
50% for loans against physical securities. Fill up the account opening form, which is
17

available with the DP. Sign the DP-client agreement, which defines the rights and
duties of the DP and the person wishing to open the account. Receive your client
account number (client ID).
This client id along with your DP id gives you a unique identification in the
depository system. Fill up a dematerialization request form, which is available with
your DP, Submit your share certificates along with the form; write "surrendered for
demat" on the face of the certificate before submitting it for demat) Receive credit for
the dematerialized shares into your account within 15 days.
2.7. CNX Nifty Market
The CNX Nifty, also called the Nifty 50 or simply the Nifty, is a stock market
index and benchmark index for Indian equity market. Nifty is owned and managed
by India Index Services and Products Ltd. (IISL), which is a joint venture
between NSE and CRISIL (Credit Rating and Information Services of India
Ltd). IISL is India's first specialized company focused upon the index as a core
product. IISL has a marketing and licensing agreement with Standard & Poor's for
co-branding equity indices. 'CNX' in its name stands for 'CRISIL NSE Index'.
CNX Nifty has shaped up as the largest single financial product in India, with
an ecosystem comprising: exchange traded funds (onshore and offshore), exchange-
traded futures and options (at NSE in India and at SGX and CME abroad), other
index funds and OTC derivatives (mostly offshore).
The CNX Nifty covers 22 sectors of the Indian economy and offers investment
managers exposure to the Indian market in one portfolio. The CNX Nifty stocks
represents about 67.27% of the free float market capitalization of the stocks listed
at National Stock Exchange (NSE) as on September 30, 2012.
The CNX Nifty index is a free float market capitalisation weighted index. The
index was initially calculated on full market capitalisation methodology. From June
26, 2009, the computation was changed to free float methodology. The base period for
the CNX Nifty index is November 3, 1995, which marked the completion of one year
of operations of NSE's Capital Market Segment. The base value of the index has been
set at 1000, and a base capital of Rs 2.06 trillion.
Here is the list of 50 companies that form part of CNX Nifty Index.
18

Sl. No. Company Name
1 ACC Ltd.
2 Ambuja Cements Ltd.
3 Asian Paints Ltd.
4 Axis Bank Ltd.
5 Bajaj Auto Ltd.
6 Bank of Baroda
7 Bharat Heavy Electricals Ltd.
8 Bharat Petroleum Corporation Ltd.
9 Bharti Airtel Ltd.
10 Cairn India Ltd.
11 Cipla Ltd.
12 Coal India Ltd.
13 DLF Ltd.
14 Dr. Reddy's Laboratories Ltd.
15 GAIL (India) Ltd.
16 Grasim Industries Ltd.
17 HCL Technologies Ltd.
18 HDFC Bank Ltd.
19 Hero MotoCorp Ltd.
20 Hindalco Industries Ltd.
21 Hindustan Unilever Ltd.
22 Housing Development Finance Corporation Ltd.
23 I T C Ltd.
24 ICICI Bank Ltd.
25 IDFC Ltd.
26 IndusInd Bank Ltd.
27 Infosys Ltd.
28 Jaiprakash Associates Ltd.
29 Jindal Steel & Power Ltd.
30 Kotak Mahindra Bank Ltd.
31 Larsen & Toubro Ltd.
32 Lupin Ltd.
33 Mahindra & Mahindra Ltd.
34 Maruti Suzuki India Ltd.
35 NMDC Ltd.
36 NTPC Ltd.
37 Oil & Natural Gas Corporation Ltd.
38 Power Grid Corporation of India Ltd.
39 Punjab National Bank
40 Ranbaxy Laboratories Ltd.
41 Reliance Industries Ltd.
42 Reliance Infrastructure Ltd.
43 Sesa Goa Ltd.
44 State Bank of India
45 Sun Pharmaceutical Industries Ltd.
46 Tata Consultancy Services Ltd.
47 Tata Motors Ltd.
48 Tata Power Co. Ltd.
49 Tata Steel Ltd.
50 UltraTech Cement Ltd.
19

CHAPTER III
COMPANY PROFILE
3.1. Introduction
3.2. Products
3.3. Sharekhan tie up with Banks
3.4. Board of Directors
3.5. Competitors
3.6. Trading, Settlement and Accounts
3.7. Demat Account
3.8. Documents required for open an account
3.9. Core Services
3.10. Sharekhan first step
3.11. Market Share
3.12. Profit
3.13. Features of trading with Sharekhan
3.14. Financial capability
3.15. Policy and Procedures
3.16. Schedule of Charges

20

CHAPTER III
3.1 Introduction

a. Eight Decades of Brokerage Excellence
Sharekhan is leading India-based financial services group, part of Citi Financial
Ltd that offers Institutional Equities and Investment Banking services. Sharekhan
deals online trading with products like equities, derivatives, mutual funds and
portfolio management. Sharekhans online trading and investment site
www.sharekhan.com was launched in 2000. Sharekhans ground network includes
over Sharekhan has over 679 branches in 234 cities and about six lakh trading
members.
Name of the company was changed from SSKI Investor Services Private
Limited to Sharekhan Private Limited on 4th October 2005.
Sharekhan has won the prestigious Awaaz Consumer Vote Awards 2005 for the
Most Preferred Stock Broking Brand in India, in the Investment Advisors category.
b. Origin and Development of Sharekhan
Sharekhan Limited was promoted by Mr. Shripal S Moakhia and Mr. Shreyas S
Morakhia. It was established in 1999-2000. It is currently amongst India's largest
broking house. It is a member of the Stock Exchange, Mumbai. It is a depository
participant of the National Securities Depository Limited and Central Depository
Services (India) Limited. Its business includes stock broking, depository services,
portfolio management and derivatives.
The Company's core specialty lies in its retail distribution with a large network
of branches and sub-brokers/ authorized persons. Its strength lies in its investment
research capabilities. Its research division has several analysts continuously
monitoring global, national and regional political, economic and social situations so
as to assess their impact on the economy in general, the sectors and companies they
research which helps them in offering quality research and advice to clients.
21

Presently Citigroup is holding 73% and Baring Private Equity Asia 12% and IDFC
12% of the paid up equity capital of the Company and the Employees own the rest i.e
3%.
c. Promoters
The shareholders of Sharekhan Limited are Mr. Shripal Morakhia, Mr.Shreyas
Morakhia, Kalpana Morakhia, Foreign Private Equity Funds and key employees of
the company. The key promoter of the Company is Mr. Shripal Morakhia who as on
September 30, 2006 along with his family owns 43.58% (on non-diluted basis) of the
paid up equity capital of the Company. Company has also issued options to
employees under ESOP 2005.
Apart from Sharekhan, the SSKI Group also comprises of Institutional broking
and Corporate Finance. The institutional broking division caters to domestic and
foreign institutional investors, while the Corporate Finance Division Focuses on
niche areas such as infrastructure, telecom and media. SSKI has been voted as the
Top Domestic Brokerage House in the research category, twice by Euro money
survey and four times by Asia money Survey.
d. Vision
To empower the investor with quality advice and superior service to help him
take better investment decisions, we believe that our growth depends on client
satisfaction.
e. Mission
A. To provide the best customer service and product innovation tuned to diverse
needs of clientele
B. Continuous up-gradation with changing technology, while maintaining
human values.
C. Respond to progressive globalization and achieving international
standard.
D. Efficiency and effectiveness built on ethical practices.



22

f. Core Value
a) Customer satisfaction through Providing quality service effectively
and efficiently Smile, it enhances your face value is a service
quality stressed on periodic customer service Audits.
b) Maximization of stakeholder value.
g. Features of Sharekhan ltd
i. Multiple exchanges on a single screen
ii. Intra-day calls and flash news
iii. Historical charts with technical tools
iv. Streaming quotes
v. 24x7 web enabled back office
vi. Auto pay-in of shares
vii. Online transfer of funds
E-broking facility is one such effort, which gives you access to state-of-the-art
trading platform with multiple exchanges, order and trade confirmations, research
reports, e-contracts and a 24x7 on-line web enabled centralized back-office system at
the click of a button.
h. Market Coverage
Ground Network Largest in India
a. 122 Franchisees and 28 branches
b. Covers 213 cities in 23 states across India
c. Also they cover 588-share shop in 213 cities.
d. Trade execution facility on BSE and NSE for Cash as well as
Derivatives
e. Depository/Demat account services
f. Personalized Sharekhan research advice
g. Uniform service standards
23

Sharekhan Ltd is set to launch four branches in Kerala on May 11 2009. The
new branches are to be set up away from the major cities of the state in places such as
Kannur, Angamaly, Chengannur and Thodupuzha. Backed by its strong online trading
platform, the new branches will offer services such as cash and derivatives
transactions on the BSE and NSE, depository services, mutual funds, initial public
offer and commodity future transactions on MCX and NCDEX. The Kerala branches
are an addition to the companys ground network of over 708 share shops across 280
cities in India.
i. Benefits of Sharekhan
A. Online trading is very user friendly and one doesn't need any software to
access.
B. They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
C. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct,
HDFC Sec, etc., so investor not really needs to open an account with a
particular bank as it can establish link with most modern banks.
Sharekhan is one of the top retail brokerage houses in India with a strong online
trading platform. The company provides equity based products (research, equities,
derivatives, depository, margin funding, etc.). It has one of the largest networks in the
country with 704 share shops in 280 cities and Indias premier online trading portal
www.sharekhan.com. With their research expertise, customer commitment and
superior technology, they provide investors with end-to-end solutions in investments.
They provide trade execution services through multiple channels - an Internet
platform, telephone and retail outlets.
Sharekhan provides 4 in 1 account.
a) Demat a/c
b) Trading a/c: for cash calculation
c) Bank a/c: for fund transfer
d) Dial and Trade: for query relating trading.



24

3.2. Products
a) Mutual fund schemes
b) Insurance
c) Portfolio Management System
d) Shares online and offline
e) Bonds
f) Fixed Deposits
g) Commodities

Services Provided by Sharekhan







25

3.3. Sharekhan has tie up with the following banks
a) HDFC
b) Axis Bank
c) IDBI
3.4. Board of directors
I. Tarun Shah CEO and director
II. Jaideep Arora
III. Jimmy Mahtani
IV. Shankar vailaya
3.5. Competitors
a. India Bulls
b. Motilal Oswal
c. Religare
d. Kotak Securities
e. ICICI Direct
f. Anand Rathi
g. India Infoline
h. Reliance Money
i. Angel Broking
j. 5 paisa.com
3.6. Trading, Settlement and Accounts:
i. The client acknowledge that all orders placed by
him for securities through the web-site and
through wireless technology shall be within the
parameters defined and mentioned in the terms
and conditions specified in the web-site.
ii. The client acknowledges that all orders placed
through the web-site and through wireless
technology shall be forwarded by the system to
exchange. All orders placed otherwise than
26

through the web-site shall be forwarded to the
system of the exchange through the exchange
terminals or any other order execution
mechanism at the discretion of the stock broker.
iii. All orders for purchase, sale or other dealings in
securities and other instructions routed through
the stock brokers website via the clients
username shall be deemed to have been given by
the client.
iv. On line confirmation will be available to the
client upon execution of trade of an order placed
by him through the stock brokers system. It
shall be the responsibility by the client to
review, immediately upon receipt, all
confirmation of orders, transactions, or
cancellations. It shall be the responsibilities of
the client follow up with the stock broker for all
such confirmations that are not received by him
within stipulated time.
v. The client shall bring any errors in any report,
confirmation or contract note of executed trades
to the stock brokers notice in writing by an
electronic mail or fax within twenty four hours
of receipt of the concerned report, confirmation
or contract note. Any other discrepancy in the
confirmation or account shall be notified by the
client to the stock broker in writing via
electronic mail or fax within twenty four hours
from the time of the receipt of the first notice.
In all cases the stock broker shall have a right to
accept or reject the clients objection.
vi. There may be a delay in the stock broker
receiving the reports of transaction, status from
the respective exchanges or other persons in
27

respect of or in connection with which the stock
broker has entered into contracts or transactions
on behalf of the clients. Accordingly the stock
broker may forward to the client late reports in
respect of such transaction that were previously
unreported to him as been expired, cancelled or
executed. The client shall not hold the stock
broker responsible for any losses suffered by the
client on account of any late reports, statements
or any errors in the report/statements computed
by or received from any exchange.
vii. The client acknowledges that if, in any
circumstance or for any reason, the market
closes before the acceptance of the order by the
exchange, the order may be rejected. The client
acknowledges further, that the stock broker may
reject orders if the same are rejected by the
exchange for any reason. In case of rejection of
an order due to rejection by the exchange, the
client acknowledges that the order shall remain
declined and shall not be re-processed in any
event.
viii. The stock broker may, as its sole discretion,
reject any order placed on the web-site or in any
other manner due to any reason, including but
not limited to the non-availability of funds in the
trading account of the client, non-availability of
securities in the demat account of the client with
a designated depository participant,
insufficiency of margin amount if the client opts
for margin trading, suspension of scrip-specific
trading activities by or on an exchange and the
applicability of circuit breaker to a scrip in
which orders are placed.
28

ix. The client aware that the stock broker may
provide a facility for reconfirmation of orders,
which are larger than those specified by the
stock brokers risk management, and is also
aware that the stock broker has the discretion to
reject the execution of such orders based on such
risk perception.
x. The client acknowledges further that the stock
broker shall have the right to reject any order
placed by the client for any reason and at any
time without notice to the client.
xi. The client acknowledges that, if any order is not
accepted or not executed or cancelled, on the
web-site or on direct terminals for any reason
whatsoever, the stock broker shall have the right
to treat the order as having lapsed. The client
cannot claim any notional profit or consequent
notional loss due to order not being executed or
cancelled by the exchange.
xii. The client is aware that the electronic trading
systems at the exchange or in the stock brokers
offices or the service provider for wireless
technology are vulnerable to temporary
disruptions, breakdowns or failures. In the event
of non execution of trade orders or trade
cancellation due to the happening of such events
or vulnerabilities due to
failure/disruption/breakdown of system or link,
stock broker shall be entitled to cancel relative
contracts with the client and shall not be able to
execute the desired transactions of the clients.
In such event, the stock broker does not accept
responsibility for any losses incurred including
loss of profit/notional profit/that may be
29

incurred by the client due to such eventualities
which are beyond the control of the stock
broker.
xiii. The stock broker may at its sole discretion
permit execution of orders in respect of
securities, irrespective of the amount in the
balance of the account of the client.
xiv. The client acknowledge to abide with and be
bound by all the rules and circulars that the
stock broker may issue from time to time, and
all rules, regulations and bye-laws of the
exchange as are in force pertaining to the
transactions on his behalf carried out by the
stock broker and the orders placed by him on the
web-site or any other manner.
xv. The systems used by the stock broker for
providing e-broking services or dial up services
are generally capable of assessing the risk of the
client as soon as the order comes in. However,
due to any reason whatsoever, if the order is
processed without sufficient risk cover from the
client, client shall be bound by such trade and
shall provide such sum as may be required to
meet his liability under the trade.
xvi. Any and all instructions issued by an authorized
representative of the client shall be binding on
the client on accordance with the letter
authorizing the said representative to deal on
behalf of the client. All authentication of the
authority of a client to instruct the stock broker
to deal on behalf of the client shall be
determined by the terms in this regard
mentioned on the website.
xvii. Cancellation or modification of the requests:
30

i. Cancellation or modification of an order
pursuant to the clients request in that
behalf is not guaranteed. The order will
be cancelled or modified only if the
clients request for cancellation and
modification is received and the order is
successfully cancelled or modified
before it is executed. Market orders are
subject to immediate execution wherever
possible.
3.7. The clients shall not be entitled to presume an order having been executed,
cancelled or modified until a confirmation from the stock broker is received by
the client.
3.8. Demat account
Sharekhan is a depository participant. This means that we can keep the shares
in dematerialized form in Sharekhan. But for this one has to the demat account in
Sharekhan. Dematerialization is the process by which a client can get physical
certificates converted into electronic balances maintained in his account with the DP.
3.9. Document required for open an account
a. 3 passport size photograph
b. copy of pan card (mandatory)
c. for identification proof-
d. Residence proof:-
e. a canceled cheque
f. bank statement (if cheque not personalized)
3.10. Core services
a) Equities, and Derivatives trading on the National Stock Exchange of India Ltd.
(NSE), and Bombay Stock Exchange Ltd. (BSE),
b) Commodities trading on National Commodity and Derivatives Exchange India
(NCDEX) and Multi Commodity Exchange of India Ltd. (MCX),
c) Depository services,
31

d) Online trading services,
e) IPO Services,
f) Dial-n-Trade
g) Portfolio management services,
h) Fundamental and Technical Research services,
i) In addition to this they also provide advisory services and distributions for
mutual funds.
j) Sharekhan Value Line (a monthly publication with reviews of
recommendations, stocks to watch out for etc.)
k) Daily research reports and market review (High Noon & Eagle Eye)
l) Pre-market Report
m) Daily trading calls based on Technical Analysis
n) Cool trading products (Daring Derivatives and Market Strategy)
o) Personalized Advice
p) Live Market Information
q) Sharekhan First Step
3.11. Sharekhan First Step
The Sharekhan First Step is a brand new program designed especially for
those who are new to investing in shares. All one have to do is open a Sharekhan First
Step account and they guide us through the investing process.
3.12. Market Share
Sharekhan enjoyed about 20 per cent market share in Web business (Internet
trading) in stock markets. Three years ago, Web trading showed lot of promise but
with the market witnessing a downturn, there was not much interest among retail
customers.
3.13. Profits
The share of Web trading constituted 22 per cent of the revenue. As
Sharekhan's daily trading volume was over Rs 200 crore, the share of Web trading at
about Rs 40 crore a day was substantial and a larger part of the volume was coming
from day traders.
32

3.14. Features of Trading With Sharekhan:
a) Freedom from paperwork
b) Instant credit and money transfer
c) Trade from any net enabled PC
d) After hour orders
e) Online orders on the phone
f) Timely advice and-research reports
g) Real-time Portfolio tracking
h) Information and Price alerts.
3.15. Financial capability
Taking in to consideration all its assets and liabilities company is valued at around
Rs. 750-850 Crores.
3.16. Policy and Procedures
Sharekhan as a SEBI registered intermediary is mandated to follow the rules
regulations circulars of the exchanges and SEBI issued from time and operates
through well defined procedures and policies.
The following policies have been mandated by SEBI to be made available to
the clients. It should not be construed that these are the only policies followed by
Sharekhan.
A. Refusal of orders for Penny stocks:
Penny stocks are scripts which have a very low value and may not be
illiquid. Most times there would be very few buyers/sellers for such
scrip. The exchange (NSE and BSE) releases a list of such scrip and
they are termed as illiquid securities. Sharekhan retains the right to
term a particular scrip as illiquid/penny stock based on the parameters
it deems fit. These parameters may include, the past volume of the
scrip, the volatility in the scrip among others, whether trading in a
particular scrip falls within the purview of fraudulent trades or trades
deemed to be fraudulent under the SEBI prohibition of fraudulent
and unfair trade practices relating to securities market regulation 2003.
33

Sharekhan reserves the right to facilitate clients for placing
orders nature of penny stocks/illiquid scrip. Sharekhan does not
encourage trades in penny stocks. Sharekhan may permit trades in
penny or illiquid scrip subject to certain conditions such conditions
may include.
i. Submission of declaration, by the client, such
declaration would include the reasons for entering into
the said transaction and also whether the client has
abided by the all the relevant regulations.
ii. In case of buy transaction the client may be asked to
deposit the full value of scrip which the clients intends
to purchase, in case of sale transaction the scrip will
necessarily be transferred to Sharekhans margin
account prior to placing the sale order.
iii. Assessment of the past trading pattern or records of the
client prior to giving permission.
iv. Conducting in person verification of the said client to
establish the genuineness of the intended trade.

B. Setting up clients exposure limit
Exposure is allowed to the client based on the margin available
in form of funds or, approved securities valued after deducting an
appropriate haircut. Client is liable le to pay applicable initial margins,
specials margins, withholding margins or such other margins as are
considered necessary by the exchange. Further Sharekhan at its
discretion may collect additional margin or may even reduce the
margin even though not required by the exchange. Clients are
supposed to maintain sufficient balance which Sharekhan pre trade
depending on the channel through which they trade. Sharekhan may
levy additional margin or relax the margin earlier imposed based on
factors such as, client level position, volatility in a particular stock or
market in general. Though it shall be our endeavor to ensure that a
proper notice is sent to the clients, this may not always be possible
taking in to consideration the market scenario. Exposure allowed to
34

clients may vary, basis the clients past trading performance, quality of
collateral, market circumstances and dynamics and other such factors.
C. Applicable brokerage
The brokerage applicable shall be as agreed upon from time to time. In
case of any modification in the brokerage rate, the client shall confirm the
same as required by Sharekhan. The client agrees to pay to Sharekhan,
brokerage, exchange related charges statutory levies and any other charges (
including but not limited to security handling charges on settlement) as are
prevailing from time to time and as they apply to the clients account,
transaction and to the services that member renders to the client. Sharekhan
does not charge brokerage more than the maximum brokerage permissible as
per the rules and regulation and byelaws of the exchanges /SEBI.
3.17. Schedule of charges
a. Account opening fees
b. SEBI turnover fees as applicable.
c. Exchange transaction charges as applicable
d. Securities transaction tax (STT):- The STT rates will vary with regards
to trades done on delivery basis, non delivery basis and trades done in
the derivative segments.
e. Service Tax
f. Stamp duty: - State wise stamp duty as applicable will be levied.
g. Education Cess and Higher Education Cess
h. In addition to the above Sharekhan shall debit the demat charges to the
trading account.
i. In case there are any bank charges or any other charges levied by the
exchange or any other authority on account of any violation done by
the client, the same shall be charged to
j. Delivery Handling Charges (DHC) would be levied on each sale
transaction would be difference of Rs.16/- and the brokerage charged.
k. In case where the brokerage levied as a percentage on the value of the
shares/contract is less than the minimum brokerage payable per
share/contract. The client will be charged such minimum rate of
brokerage as per share instead of the percentage. *These are
35

government levies and are subject to change from time to time and will
be charged in addition to the brokerage as applicable. All the above
charges would be subject to change from time to time. Such changes
shall be displayed on the website or such other URL used by
Sharekhan from time to time.
In case the brokerage rate is not specified on the brokerage chart within the
KYC, the default brokerage as mentioned below will be applicable.
Table 3.1
Default Brokerage
Cash Market Brokerage % Minimum Paise Per Share
First Leg 0.10 5
Second Leg(Same day Sq.off) 0.10 5
Delivery Brokerage 0.50 10
Sale Delivery trade minimum charge per scrip is Rs.16/-
Derivatives Segment Futures% Options%
First Leg 0.10% 2.50%
Same day square off 0.02% 2.50%
Next day square off 0.10% 2.50%
In case of futures, the minimum brokerage of 0.01 paise per share will be
charged.
In case of options brokerage is chargeable on the Premium. Minimum
Brokerage will be Rs. 100/- per lot or the above whichever is higher.
Currency Derivatives Future Segment
%
Options
Segment
%
First Leg 0.10 2.50
Same day square off Nil Nil
Next day square off 0.10 2.50
In case of futures, the minimum brokerage of 0.01 paisa per share will be
charged or the above whichever is higher.
In case of Options, the brokerage will be charged on the premium. Minimum
Brokerage will be Rs.30/- per lot or the above whichever is higher.
36

D. Imposition of Penalty/Delayed Payment charges by either party, specifying
the rate and period:
Delay pay-in charges are levied to clients for nonpayment or delay in
payment of their fund obligation on time which may be due to on account of
charges, margins or any other sum due to Sharekhan. Clients are required to
pay margins before placing any trades. Clients are allowed to place margins in
form of funds or securities. Exposure is given to the client based on the stocks
submitted by the client towards margin to Sharekhan. Appropriate haircut is
applied on such stocks. They are then expected to make the full payment for
the purchase on the settlement date. In case there is a debit balance in the
clients account, the same shall be liable for the delayed payment charges. The
calculation of these charges is an automated process. The charges to be levied
would be up to 2% per month. These charges have been introduced so that
they act as a deterrent for delaying the payment of funds. In case where any
penalty/ charges/ fess/ taxes etc. of whatever nature, is levied on Sharekhan on
account of trades or orders placed by clients, such penalty/charges/fees/taxes
etc. shall be debited to the clients account.

E. Right to sell clients securities or close clients positions, without giving notice
to the client on account of nonpayment of clients dues:-
Margin collection Margin is collected upfront from the clients i.e. prior to
executing any trades. Based on the margin thus available with Sharekhan
exposure is given to the client. The applicable margin may vary and the client
may be asked into replenish the margin by tendering additional funds or
securities.
In accordance with Exchange guidelines, Sharekhan retains the right to square
off the position without giving any notice to the client.
i. The client agrees to pay for the shares purchased through
Sharekhan before the pay- in date in order to enable Sharekhan
to make the requisite pay-in to the exchange. In case the client
fails to make the payment, Sharekhan may liquidate the
securities in the clients account in order to ensure that adequate
37

credit is received for the shares purchased. This square off may
be done on or before the 5
th
day from the settlement date.
ii. The client also agrees to maintain adequate margin for the
positions taken in any segment. However in case the credit
available is lower than the minimum margin required, the
clients positions would be liquidated in a manner that there is
no shortfall of margin.
iii. Sharekhan shall endeavor to ensure that adequate prior
information is given to the client for such liquidation. It shall
inform the client through the mobile number and or email id
updated with Sharekhan. For clients to whom a login and
password is given to access their account on the website
www.sharekhan.com, or such other URL that may be provided
by Sharekhan from time to time, where they are required to
login and check the limit statement uploaded therein. It shall
be the clients responsibility to ensure that adequate credit
balance is available in the account.
iv. The above guidelines may be changed based on the discretion
of Sharekhan and in terms of the market conditions. In case
where the market is volatile and there is a sudden spurt in scrip
price then Sharekhan may square off position without any
notice due to the paucity of time and other such circumstances.
v. Whenever Sharekhan endeavors that the position are to be
liquidated, it shall not be responsible for any liabilities in case
the same cannot be liquidated.
vi. The priority of the positions to be squared off, i.e. which
positions to be squared off first, would be at the discretion of
Sharekhan.
Sharekhan may follow the following priority for squaring-off positions:-
a) Lower margin scrips will be squared off first.
b) Only futures position will be squared off (option position to be square
off manually)
38

c) In case where there is a position in cash and derivative segment,
futures positions would be squared off first then cash positions would
be square off in case shortfall still exist.
F. Shortages in obligations arising out of internal netting of trades
Internal shortage policy:
BSE has a window wherein internal short deliveries can get auctioned
as per the normal auction process. Internal short deliveries are not covered by
the auction conducted on the NSE. It is due to this limitation on the NSE we
follow the procedure as mentioned below
a. The client may not receive shares on T+2 in case there is an
internal shortage situation within Sharekhan, i.e., the buyer and
seller are both Sharekhan clients and the seller defaults in
delivery due to which the buyer may not receive the shares.
b. In case of an internal shortage, firstly the defaulting seller
would be debited with a value as on the previous day of the
paying day + 30% for the default till such time the auction
process can be completed.
c. In case there is an internal shortage in BSE, the exchange
conducts an auction through which the shares would be
purchased and delivered to the buyer. The seller would be
debited at the rate at which the exchange would have purchased
these shares. Additionally, brokerage, statutory costs and other
incidental charges including penalty for non-delivery may be
debited to the client. In case the exchange is unable to
purchase these shares, the exchange will inform Sharekhan of a
close out rate, at which the buyer would be allowed credit and
the seller would be debited for the same amount.
d. In case there is an internal shortage in NSE, Sharekhan
purchases the shares from the normal market and provides the
shares to the buyer, on receipt of delivery. The defaulting
seller would be debited with the rate at which these shares were
purchased, including the brokerage, statutory charges and other
incidental charges including penalty if any. In case of non
receipt of delivery to purchase the shares, the buyer would be
39

offered credit at a close out rate application on T+4 day + 3%
or and the seller would be debited at the same rate. In case
where Sharekhan is unable to purchase the shares on account of
the scrip being in buying circuit, the position would then be
closed out on the closing price of the exchange on T+2 at the
circuit percentage of 2 days.
e. Sharekhan may also levy charges on the defaulting seller for
non-delivery of stocks within the stipulated time.
G. Conditions under which a client may not be allowed to take further position
or the broker may close existing position of a client/temporary suspending or
close a clients account at the clients request and deregistering a client:
a. In the event where overall position in any scrip or derivative contract
has reached the limit prescribed by regulators or exchanges. For
example, in case of NRI clients where the PIS limits are prescribed by
RBI are breached or in case of exchange wise, scrip wise limit
prescribed by exchanges for derivative contracts are breached. In all
such cases the client may not be permitted to take additional positions.
b. Sharekhan has the right to stop or block the client to trade in case
where there is a debit balance in his/her account.
c. Sharekhan retains the right to block the client to take a position in
certain specified scrip basis the risk management systems of
Sharekhan.
d. In case where Sharekhan is apprehensive the client to be an entity
debarred by any regulatory authority, it shall retain in the right to stop
the trading activities of such a client.
e. In case where Sharekhan perceives risk with regards to any regulatory
action or with regards to delay or nonpayment of margin or any other
obligation Sharekhan may temporary block or suspend the trades of
such clients.
f. In case where clients account s dormant for a period of more than 3
months Sharekhan may mark such clients as inactive, and trades in the
futures and options segment/cash segment will be restricted till the
receipt of the request from the clients for activating the account.
40

g. In case where suspicious transactions are observed, including but not
limited to off market transactions.
h. In case where clients are not reachable at their contact details
mentioned in the client registration form or in client master changes
form.
i. In case where unprofessional, or unruly behavior of the client is
observed.
j. In case of any ongoing dispute with the client, we may not permit the
client to take further positions and may even close out his open
positions.
k. Further in case of clients breaching the risk parameters mentioned in
point H above we may close the clients positions without any
intimation.
H. Confirmation and Acceptance of terms and conditions governing the services
provided by stock broker:
Preamble:
i. The client has opened an account with the stock broker for the purpose
of trading on the NSE of India limited, BSE Limited and MCX stock
exchange limited and has accepted statement of rights and obligations.
ii. For the purpose of taking additional services from the stock broker and
in order to define the operating terms and conditions, the stock broker
and the client have acknowledgement to the terms and conditions
herein contained.
iii. The client understands that some of the terms and conditions may be
more stringent than that provided in the rights and obligations and the
client has acknowledge and accepted such terms and conditions.
iv. The terms and conditions contained herein are binding on the client.
The client has acknowledge to avail of services from the stock
broker after fully understanding the terms and conditions. The terms
and conditions shall be subject to modification from time to time and
such modifications are binding on the client.

41

E-Brokers services, wireless securities trading and dial and trade services:
Whereas the stock broker is in the business of offering various services
including E-Broking services and securities trading through the use of wireless
technology to its clients and acknowledge to provide such services to the client and
client acknowledge to avail such services from stock broker subject to terms and
conditions of this annexure and/or on the stock brokers website and the exchange
provisions.
The stock broker agrees that it has complied/shall comply with all
requirements applicable to securities trading using wireless technology as may be
specified by SEBI and the exchange from time to time. The provisions of this terms
and conditions shall always be subject to government notifications, any rules,
regulations and guidelines issued by SEBI and stock exchanges rules, regulations and
bye-laws that may be in force from time to time.
Whereas the stock broker, as required under regulations, hereby conveys that
it is carrying on proprietary trading.











42

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
4.1. Introduction
4.2. Trend Analysis
4.2.1. Simple Moving Average Method
4.2.2. Short Term moving average Method
4.2.3. Medium Term moving average method
4.2.4. Long term moving average Method
4.3. Retracement Theory
4.3.1. Retracement level of Nifty
4.3.2. Future Price Targets of Nifty using Retracement (Upside)
4.3.3. Future Price Targets of Nifty using Retracement (Downside)
4.4. Comparison between Open price and Close price of Nifty
4.5. Comparison between High price and Low price of Nifty







43

CHAPTER IV
4.1. Introduction
In this chapter an attempt has been made to analyze the share price
movement of Nifty. The share price movement and financial performance of the
Nifty has been analyzed by calculating technical analysis and trend analysis.
Technical analysis is the process of analyzing a securitys historical prices in
an effort to determine probable future prices. This is done by comparing current price
action (i.e., current expectations) with comparable historical price action to predict a
reasonable outcome. The devout technician might define this process as the fact that
history repeats itself while others would suffice to say that we should learn from the
past. 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 doesnt care one bit
about the value of a company or a commodity. Technicians (sometimes called as
chartists) are only interested in the price movements in the market. 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 future. In other words, technical analysis attempts to understand the emotions in the
market by studying the market itself, as opposed to its components. If you understand
the benefits and limitations of technical analysis, it can give you a new set of tools or
skills that will enable you to be better trader or investor.
Technical analysis is a method of evaluating securities by analyzing the
statistics generated by market activity, such as past prices and volume. Technical
analysts do not attempt to measure a securitys intrinsic value, but instead use charts
and other tools to identify patterns that can suggest future activity. Just as there are
many investment styles on the fundamental side, there are also many different types
of technical traders. Some rely on chart patterns; others use technical indicators and
oscillators, and most use some combination of the two. In any case, technical
analysts exclusive use of historical prices and volume data is what separates them
from their fundamental counterparts. Unlike fundamental analysts, technical analysts
44

dont care whether a stock is undervalued the only thing that matters is a securitys
past trading data and what information this data can provide about where the security
might move in the future.
4.2. Trend Analysis
Trend Analysis is one of the tools used in Technical Analysis. Trend
Analysis is the practice of collecting information and attempting to spot a pattern,
or trend, in the information.
Although trend analysis is often used to predict future events, it could be used
to estimate uncertain events in the past, such as how many ancient kings probably
ruled between two dates, based on data such as the average years which other known
kings reigned.
4.2.1. Simple Moving Average Method
A moving average is commonly used with time series data to smooth out
short-term fluctuations and highlight long-term trends or cycles. The threshold
between short-term and long-term depends on the application, and the parameters of
the moving average will be set accordingly. For example, it is often used in technical
analysis of financial data, like stock prices, returns or trading volumes. It is also used
in economics to examine gross domestic product, employment or other
macroeconomic time series. Mathematically, a moving average is a type of
convolution and so it is also similar to the low-pass filter used in signal processing.
Simple Moving average may be classified as Short-term Moving Average, Medium-
term Moving Average and Long-term Moving Average.
4.2.2. Short Term Moving Average Method
An average is the sum of prices of a share for a specific number of days
divided by the number of days. In a simple moving average, a set of average are
calculated for a specific number of days, each average being calculated by including a
new price and excluding an old or previous price. In common if the share price stays
above 12 days moving average it is called as short-term moving average method.
Table 4.1 represents Short-term Moving Average Method.
45

Table 4.1
Short Term Moving Average
S.No. Date Closing Price
1.
30-Dec-2012 4624.30
2.
02-Jan-2013 4636.75
3.
03-Jan-2013 4765.30
4.
04-Jan-2013 4749.65
5.
05-Jan-2013 4749.95
6.
06-Jan-2013 4754.10
7.
07-Jan-2013 4746.90
8.
09-Jan-2013 4742.80
9.
10-Jan-2013 4849.55
10.
11-Jan-2013 4860.95
11.
12-Jan-2013 4831.25
12.
13-Jan-2013 4866.00

Total 57177.50
Short term moving average method = Total of closing prices for the last 12 days
12
= 57177.50/12
= 4764.792
It is inferred from the table 4.1 that the short term moving average of nifty
price (12 days moving average) is 4764.792 on 13-jan-2012. As the current market
price of the nifty 4873.90 as on 16-jan-2012 is above the short term trend line the
outlook of nifty for short term is positive. The following chart 4.1 represents the Short
term moving average method.
46

Chart 4.1
Short term moving average


4.2.3. Medium Term Moving Average Method
A moving average represents the underlying trend in the share price
movement; the period of average indicates the type of trend being identified. A 48
days moving average would indicate the medium term trend of a stock. Table 4.2
represents Medium-term Moving Average Method.
Table 4.2
Medium term moving average method
S.No. Date Closing Price
1.
08-Nov-2012 5289.35
2.
09-Nov-2012 5221.05
3.
11-Nov-2012 5168.85
4500
4550
4600
4650
4700
4750
4800
4850
4900
3
0
-
D
e
c
-
1
2
2
-
J
a
n
-
1
3
3
-
J
a
n
-
1
3
4
-
J
a
n
-
1
3
5
-
J
a
n
-
1
3
6
-
J
a
n
-
1
3
7
-
J
a
n
-
1
3
9
-
J
a
n
-
1
3
1
0
-
J
a
n
-
1
3
1
1
-
J
a
n
-
1
3
1
2
-
J
a
n
-
1
3
1
3
-
J
a
n
-
1
3
1 2 3 4 5 6 7 8 9 10 11 12
Closing Price
Closing Price
47

4.
14-Nov-2012 5148.35
5.
15-Nov-2012 5068.50
6.
16-Nov-2012 5030.45
7.
17-Nov-2012 4934.75
8.
18-Nov-2012 4905.80
9.
21-Nov-2012 4778.35
10.
22-Nov-2012 4812.35
11.
23-Nov-2012 4706.45
12.
24-Nov-2012 4756.45
13.
25-Nov-2012 4710.05
14.
28-Nov-2012 4851.30
15.
29-Nov-2012 4805.10
16.
30-Nov-2012 4832.05
17.
01-Dec-2012 4936.85
18.
02-Dec-2012 5050.15
19.
05-Dec-2012 5039.15
20.
07-Dec-2012 5062.60
21.
08-Dec-2012 4943.65
22.
09-Dec-2012 4866.70
23.
12-Dec-2012 4764.60
24.
13-Dec-2012 4800.60
25.
14-Dec-2012 4763.25
26.
15-Dec-2012 4746.35
27.
16-Dec-2012 4651.60
28.
19-Dec-2012 4613.10
29.
20-Dec-2012 4544.20
30.
21-Dec-2012 4693.15
31.
22-Dec-2012 4733.85
32.
23-Dec-2012 4714.00
33.
26-Dec-2012 4779.00
34.
27-Dec-2012 4750.50
35.
28-Dec-2012 4705.80
36.
29-Dec-2012 4646.25
48

37.
30-Dec-2012 4624.30
38.
02-Jan-2012 4636.75
39.
03-Jan-2012 4765.30
40.
04-Jan-2012 4749.65
41.
05-Jan-2012 4749.95
42.
06-Jan-2012 4754.10
43.
07-Jan-2012 4746.90
44.
09-Jan-2012 4742.80
45.
10-Jan-2012 4849.55
46.
11-Jan-2012 4860.95
47.
12-Jan-2012 4831.25
48.
13-Jan-2012 4866.00

Total 232002.10
Medium Moving average = Total of closing prices for last 48 days
48
= 232002.10/48
= 4833.37
It is inferred from the table 4.2 that the medium term moving average of nifty
price (48 days moving average) is 4833.37 on 13-jan-2012. As the current market
price of the nifty 4873.90 as on 16-jan-2012 is above the medium term trend line the
outlook of nifty for medium term is positive. The following chart 4.2 represents the
Medium term moving average method.






49

Chart 4.2
Medium term moving average method










4000
4200
4400
4600
4800
5000
5200
5400
8-Nov-12 9-Nov-12 11-Nov-12 14-Nov-12 15-Nov-12 16-Nov-12 17-Nov-12 18-Nov-12 21-Nov-12 22-Nov-12 23-Nov-12 24-Nov-12
25-Nov-12 28-Nov-12 29-Nov-12 30-Nov-12 1-Dec-12 2-Dec-12 5-Dec-12 7-Dec-12 8-Dec-12 9-Dec-12 12-Dec-12 13-Dec-12
14-Dec-12 15-Dec-12 16-Dec-12 19-Dec-12 20-Dec-12 21-Dec-12 22-Dec-12 23-Dec-12 26-Dec-12 27-Dec-12 28-Dec-12 29-Dec-12
30-Dec-12 2-Jan-12 3-Jan-12 4-Jan-12 5-Jan-12 6-Jan-12 7-Jan-12 9-Jan-12 10-Jan-12 11-Jan-12 12-Jan-12 13-Jan-12
50

4.2.4. Long Term Moving Average Method.
Technical analysis stands in contrast to the fundamental analysis approach to
security and stock analysis. Technical analysis analyzes price, volume and other
market information, whereas fundamental analysis looks at the facts of the company,
market, currency or commodity. Most large brokerage, trading group, or financial
institutions will typically have both a technical analysis and fundamental analysis
team
The cumulative moving average is also frequently called a running average or
a long running average although the term running average is also used as synonym for
a moving average. This article uses the term cumulative moving average or simply
cumulative average since this term is more descriptive and unambiguous. Table 4.3
represents Long-term Moving Average Method.
Long term moving average
S.No. Date Closing Price
1 28-Mar-2012 5687.25
2 29-Mar-2012 5736.35
3 30-Mar-2012 5787.65
4 31-Mar-2012 5833.75
5 01-Apr-2012 5826.05
6 04-Apr-2012 5908.45
7 05-Apr-2012 5910.05
8 06-Apr-2012 5891.75
9 07-Apr-2012 5885.70
10 08-Apr-2012 5842.00
11 11-Apr-2012 5785.70
12 13-Apr-2012 5911.50
13 15-Apr-2012 5824.55
14 18-Apr-2012 5729.10
15 19-Apr-2012 5740.75
16 20-Apr-2012 5851.65
17 21-Apr-2012 5884.70
18 25-Apr-2012 5874.50
19 26-Apr-2012 5868.40
20 27-Apr-2012 5833.90
21 28-Apr-2012 5785.45
22 29-Apr-2012 5749.50
23 02-May-2012 5701.30
24 03-May-2012 5565.25
25 04-May-2012 5537.15
26 05-May-2012 5459.85
51

27 06-May-2012 5551.45
28 09-May-2012 5551.10
29 10-May-2012 5541.25
30 11-May-2012 5565.05
31 12-May-2012 5486.15
32 13-May-2012 5544.75
33 16-May-2012 5499.00
34 17-May-2012 5438.95
35 18-May-2012 5420.60
36 19-May-2012 5428.10
37 20-May-2012 5486.35
38 23-May-2012 5386.55
39 24-May-2012 5394.85
40 25-May-2012 5348.95
41 26-May-2012 5412.35
42 27-May-2012 5476.10
43 30-May-2012 5473.10
44 31-May-2012 5560.15
45 01-Jun-2012 5592.00
46 02-Jun-2012 5550.35
47 03-Jun-2012 5516.75
48 06-Jun-2012 5532.05
49 07-Jun-2012 5556.15
50 08-Jun-2012 5526.85
51 09-Jun-2012 5521.05
52 10-Jun-2012 5485.80
53 13-Jun-2012 5482.80
54 14-Jun-2012 5500.50
55 15-Jun-2012 5447.50
56 16-Jun-2012 5396.75
57 17-Jun-2012 5366.40
58 20-Jun-2012 5257.90
59 21-Jun-2012 5275.85
60 22-Jun-2012 5278.30
61 23-Jun-2012 5320.00
62 24-Jun-2012 5471.25
63 27-Jun-2012 5526.60
64 28-Jun-2012 5545.30
65 29-Jun-2012 5600.45
66 30-Jun-2012 5647.40
67 01-Jul-2012 5627.20
68 04-Jul-2012 5650.50
69 05-Jul-2012 5632.10
70 06-Jul-2012 5625.45
71 07-Jul-2012 5728.95
72 08-Jul-2012 5660.65
73 11-Jul-2012 5616.10
74 12-Jul-2012 5526.15
75 13-Jul-2012 5585.45
52

76 14-Jul-2012 5599.80
77 15-Jul-2012 5581.10
78 18-Jul-2012 5567.05
79 19-Jul-2012 5613.55
80 20-Jul-2012 5567.05
81 21-Jul-2012 5541.60
82 22-Jul-2012 5633.95
83 25-Jul-2012 5680.30
84 26-Jul-2012 5574.85
85 27-Jul-2012 5546.80
86 28-Jul-2012 5487.75
87 29-Jul-2012 5482.00
88 01-Aug-2012 5516.80
89 02-Aug-2012 5456.55
90 03-Aug-2012 5404.80
91 04-Aug-2012 5331.80
92 05-Aug-2012 5211.25
93 08-Aug-2012 5118.50
94 09-Aug-2012 5072.85
95 10-Aug-2012 5161.00
96 11-Aug-2012 5138.30
97 12-Aug-2012 5072.95
98 16-Aug-2012 5035.80
99 17-Aug-2012 5056.60
100 18-Aug-2012 4944.15
101 19-Aug-2012 4845.65
102 22-Aug-2012 4898.80
103 23-Aug-2012 4948.90
104 24-Aug-2012 4888.90
105 25-Aug-2012 4839.60
106 26-Aug-2012 4747.80
107 29-Aug-2012 4919.60
108 30-Aug-2012 5001.00
109 02-Sep-2012 5040.00
110 05-Sep-2012 5017.20
111 06-Sep-2012 5064.30
112 07-Sep-2012 5124.65
113 08-Sep-2012 5153.25
114 09-Sep-2012 5059.45
115 12-Sep-2012 4946.80
116 13-Sep-2012 4940.95
117 14-Sep-2012 5012.55
118 15-Sep-2012 5075.70
119 16-Sep-2012 5084.25
120 19-Sep-2012 5031.95
121 20-Sep-2012 5140.20
122 21-Sep-2012 5133.25
123 22-Sep-2012 4923.65
124 23-Sep-2012 4867.75
53

125 26-Sep-2012 4835.40
126 27-Sep-2012 4971.25
127 28-Sep-2012 4945.90
128 29-Sep-2012 5015.45
129 30-Sep-2012 4943.25
130 03-Oct-2012 4849.50
131 04-Oct-2012 4772.15
132 05-Oct-2012 4751.30
133 07-Oct-2012 4888.05
134 10-Oct-2012 4979.60
135 11-Oct-2012 4974.35
136 12-Oct-2012 5099.40
137 13-Oct-2012 5077.85
138 14-Oct-2012 5132.30
139 17-Oct-2012 5118.25
140 18-Oct-2012 5037.50
141 19-Oct-2012 5139.15
142 20-Oct-2012 5091.90
143 21-Oct-2012 5049.95
144 24-Oct-2012 5098.35
145 25-Oct-2012 5191.60
146 26-Oct-2012 5201.80
147 28-Oct-2012 5360.70
148 31-Oct-2012 5326.60
149 01-Nov-2012 5257.95
150 02-Nov-2012 5258.45
151 03-Nov-2012 5265.75
152 04-Nov-2012 5284.20
153 08-Nov-2012 5289.35
154 09-Nov-2012 5221.05
155 11-Nov-2012 5168.85
156 14-Nov-2012 5148.35
157 15-Nov-2012 5068.50
158 16-Nov-2012 5030.45
159 17-Nov-2012 4934.75
160 18-Nov-2012 4905.80
161 21-Nov-2012 4778.35
162 22-Nov-2012 4812.35
163 23-Nov-2012 4706.45
164 24-Nov-2012 4756.45
165 25-Nov-2012 4710.05
166 28-Nov-2012 4851.30
167 29-Nov-2012 4805.10
168 30-Nov-2012 4832.05
169 01-Dec-2012 4936.85
170 02-Dec-2012 5050.15
171 05-Dec-2012 5039.15
172 07-Dec-2012 5062.60
173 08-Dec-2012 4943.65
54

174 09-Dec-2012 4866.70
175 12-Dec-2012 4764.60
176 13-Dec-2012 4800.60
177 14-Dec-2012 4763.25
178 15-Dec-2012 4746.35
179 16-Dec-2012 4651.60
180 19-Dec-2012 4613.10
181 20-Dec-2012 4544.20
182 21-Dec-2012 4693.15
183 22-Dec-2012 4733.85
184 23-Dec-2012 4714.00
185 26-Dec-2012 4779.00
186 27-Dec-2012 4750.50
187 28-Dec-2012 4705.80
188 29-Dec-2012 4646.25
189 30-Dec-2012 4624.30
190 02-Jan-2013 4636.75
191 03-Jan-2013 4765.30
192 04-Jan-2013 4749.65
193 05-Jan-2013 4749.95
194 06-Jan-2013 4754.10
195 07-Jan-2013 4746.90
196 09-Jan-2013 4742.80
197 10-Jan-2013 4849.55
198 11-Jan-2013 4860.95
199 12-Jan-2013 4831.25
200 13-Jan-2013 4866.00
Total 1048051
Long term moving average method = Total of closing prices for last 200 days
200
= 1048051/200
= 5240.25
It is inferred from the table 4.3 that the long term moving average of
nifty price (200 days moving average) is 5240.25 on 13-jan-2012. As the current
market price of the nifty 4873.90 as on 16-jan-2012 is below the long term trend line
the outlook of nifty for long term is negative. The following chart 4.3 represents the
long term moving average method.


55

Chart 4.3
Long term moving average

4.3. Retracement Theory
A price movement is in opposite direction of the previous trend. Retracement
theory is a tool used in technical analysis which plots the Fibonacci ratios on a graph
which displays a stocks price over time. The key Fibonacci ratios are 23.6%, 38.2%,
61.8% and 78.6%. The different Fibonacci ratios are used to predict how likely it is
for the stock to return to that price by retracing its previous actions. A price
movement in a security market is counter to its previous trend. For example, in a
rising market, a 25 percent retracement would indicate a price decline equal to 25
percent of the previous advance.
0
1000
2000
3000
4000
5000
6000
7000
3
/
2
8
/
2
0
1
2
4
/
1
1
/
2
0
1
2
4
/
2
5
/
2
0
1
2
5
/
9
/
2
0
1
2
5
/
2
3
/
2
0
1
2
6
/
6
/
2
0
1
2
6
/
2
0
/
2
0
1
2
7
/
4
/
2
0
1
2
7
/
1
8
/
2
0
1
2
8
/
1
/
2
0
1
2
8
/
1
5
/
2
0
1
2
8
/
2
9
/
2
0
1
2
9
/
1
2
/
2
0
1
2
9
/
2
6
/
2
0
1
2
1
0
/
1
0
/
2
0
1
2
1
0
/
2
4
/
2
0
1
2
1
1
/
7
/
2
0
1
2
1
1
/
2
1
/
2
0
1
2
1
2
/
5
/
2
0
1
2
1
2
/
1
9
/
2
0
1
2
1
/
2
/
2
0
1
3
Cl osi ng Pri ce
56

4.3.1. Retracement Levels of Nifty (One Year High and Low)
The theoretical levels used here are 23.8%, 31.2%, 50%, 61.8%, 75% and
100%. The 52 week high for Nifty is 5944.45 and 52 week low for Nifty is 4531.15.
Table 4.4 represents the Retracement levels of Nifty.
Table 4.4
Retracement Levels of Nifty
One year
High
One year
Low
Cycle
Difference
Theoretical
Level (%)
Retracement
Level
Crucial
Level


5944.45


4531.15


1413.3
23.8 336.37 5608.08
31.2 440.95 5503.50
50 706.65 5237.80
61.8 873.42 5071.03
75 1059.98 4884.47
100 1413.30 4531.15
It is inferred from the table 4.4 that the crucial support levels for Nifty are
5608.08, 5503.50, 5237.80, 5071.03, 4884.47 and 4531.15 whereas the resistance
levels are 6280.82, 6385.40, 6651.10, 6817.87, 7004.43 and 7357.75 from table 4.5
and hence within the cycle of 5944.45 and 4531.15, the above said levels would act as
important support and resistance levels.






57

Chart 4.4
Retracement levels of Nifty

4.3.2. Future Price Targets of Nifty using Retracement (Upside)
Using the one year high price of Nifty its future high prices to which it
may increase can be calculated as follows: Table 4.5 represents the future
price targets of Gold Bees (Upside).

0
1000
2000
3000
4000
5000
6000
7000
One year High One year Low Cycle Difference
Retracement Level Crucial Level
58

Table 4.5
Future price target of Nifty using Retracement (upside)
One year
high
Cycle
difference
Theoretical
levels
Retracement
levels
Crucial
levels
(upside)



5944.45



1413.30
23.8 336.37
6280.82
31.2 440.95
6385.40
50 706.65
6651.10
61.8 873.42
6817.87
75 1059.98
7004.43
100 1413.30
7357.75

It is inferred from the table 4.5 that the long term targets for Nifty, if
breaks 5944.45 will be 6280.82, 6385.40, 6651.10, 6817.87, 7004.43 and
7357.75.







59

Chart 4.5
Future price target of Nifty using Retracement (upside)

Theoritical Level
(%)
Retracement level
Crucial level (upside)
23.8 31.2 50 61.8 75 100
336.37 440.95
706.65
873.42
1059.98
1413.3
6280.82 6385.4
6651.1
6817.87
7004.43
7357.75
60

4.3.3. Future Price Targets of Nifty using Retracement (Downside)
Using the one year low price of Nifty its future low prices to which it may
decrease can be calculated as follows: Table 4.6 represents future price targets of
Nifty (Downside)
Table 4.6
Future price target of Nifty using retracement (downside)
One year
Low
Cyclical
Difference
Theoretical
Levels
Retracement
Levels
Crucial
Levels
(Downside)



4531.15



1413.30
23.8 336.37
4194.78
31.2 440.95
4090.20
50 706.65
3824.50
61.8 873.42
3657.73
75 1059.98
3471.17
100 1413.30
3117.85
It is inferred from the table 4.6 that on a violation and break below 4531.15,
Nifty may take supports at 4194.78, 4090.20, 3824.50, 3657.73, 3471.17 and 3117.85.





61




Chart 4.6
Future price target of Nifty using retracement (downside)

0
500
1000
1500
2000
2500
3000
3500
4000
4500
23.8 31.2 50
75
100
336.37
440.95
706.65
1059.98
1413.3
4194.78
4090.2
3824.5
3471.17
3117.85
Theoretical Levels Retracement Levels Crucial Levels (Downside)
62

4.4. Comparison between Open Price and Close Price of Gold Bees
Nifty shares open price and close price are collected from 01-Dec-2012 to 13-
Jan-2012 and their difference is calculated. Table 4.7 represents the comparison
between open price and close price of Nifty.
Table 4.7
Comparison between open price and close price of Nifty
S.No. Open Price (Rs.) Close Price (Rs.) Difference
1.
4970.85 4936.85
34
2.
4940.85 5050.15
-109.30
3.
5036.50 5039.15
-2.65
4.
5050.10 5062.60
-12.5
5.
5037.40 4943.65
93.75
6.
4870.75 4866.70
4.05
7.
4906.85 4764.60
142.25
8.
4733.60 4800.60
-67
9.
4788.70 4763.25
25.45
10.
4712.80 4746.35
-33.55
11.
4752.50 4651.60
100.9
12.
4623.15 4613.10
10.05
13.
4635.80 4544.20
91.6
14.
4636.45 4693.15
-56.7
15.
4636.90 4733.85
-96.95
16.
4763.20 4714.00
49.2
17.
4718.15 4779.00
-60.85
18.
4780.20 4750.50
29.7
19.
4756.20 4705.80
50.4
20.
4681.15 4646.25
34.9
21.
4659.95 4624.30
35.65
22.
4640.20 4636.75
3.45
23.
4675.80 4765.30
-89.5
24.
4774.95 4749.65
25.3
63

25.
4749.00 4749.95
-0.95
26.
4724.15 4754.10
-29.95
27.
4755.60 4746.90
8.7
28.
4747.55 4742.80
4.75
29.
4771.85 4849.55
-77.7
30.
4863.15 4860.95
2.2
31.
4840.95 4831.25
9.7
32.
4861.95 4866.00
-4.05

Average
3.573
It is inferred from the table 4.7 that the difference between the open price and
close price of Nifty is approximately Rs.4. Here the Open price is greater than the
Close price. The following chart 4.7 represents the open price versus close price of
Nifty.












64

Chart 4.7
Comparison between open price and close price of Nifty

4200
4300
4400
4500
4600
4700
4800
4900
5000
5100
5200
Open Price (Rs.)
Close Price (Rs.)
65

4.5. Comparison between High Price and Low Price of Nifty
Nifty shares high price and low price are collected from 01-Dec-2012 to 13-
Jan-2013 and their difference is calculated. Table 4.8 represents the comparison
between high price and low price of Nifty.
Table 4.8
Comparison between High Price and Low price of Nifty
S.No. High Price (Rs.) Low Price (Rs.) Difference
1.
5011.90 4916.70
95.2
2.
5062.55 4918.40
144.15
3.
5055.40 5002.55
52.85
4.
5099.25 5032.25
67
5.
5049.05 4921.45
127.6
6.
4918.35 4841.75
76.6
7.
4910.25 4755.55
154.7
8.
4824.70 4728.50
96.2
9.
4839.55 4750.40
89.15
10.
4768.65 4673.85
94.8
11.
4818.85 4628.20
190.65
12.
4623.15 4555.90
67.25
13.
4637.25 4531.15
106.1
14.
4707.35 4601.95
105.4
15.
4740.60 4632.95
107.65
16.
4763.45 4693.20
70.25
17.
4787.25 4718.15
69.1
18.
4800.50 4723.65
76.85
19.
4756.20 4685.65
70.55
20.
4701.80 4639.05
62.75
21.
4690.45 4608.90
81.55
22.
4645.95 4588.05
57.9
23.
4773.10 4675.80
97.3
24.
4782.85 4728.85
54
66

25.
4779.80 4730.15
49.65
26.
4794.90 4686.85
108.05
27.
4759.40 4743.05
16.35
28.
4758.70 4695.45
63.25
29.
4855.90 4768.25
87.65
30.
4877.20 4841.60
35.6
31.
4869.20 4803.90
65.3
32.
4898.85 4834.20
64.65

Average
84.56
It is inferred from the table 4.8 that the average difference between the high
price and low price of Nifty is Rs.85 approximately. The following chart 4.8
represents the high price versus low price of Nifty.
Chart 4.8
Comparison between High Price and Low price of Nifty

4200
4300
4400
4500
4600
4700
4800
4900
5000
5100
5200
High Price (Rs.) Low Price (Rs.)
67

CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1.1. Introduction
5.1.2. Findings
5.1.3. Suggestions
5.1.4. Conclusion

68

CHAPTER V
5.1. Introduction
This chapter deals with the findings and suggestions of the researcher.
Findings are based on the analysis of the data collected and hence suitable suggestions
are given by the researcher. This chapter ends with the conclusion of the study.
5.2. Summary of Findings
The following are the major findings of the researcher
i. The short term moving average of Nifty is 4764.792 as on
13/01/2013.
ii. The Medium term moving average of Nifty is 4833.37 as on
13/01/2013.
iii. The Long term moving average of Nifty is 5240.25 as on
13/01/2013.
iv. The crucial support levels of Nifty within 52 week high and 52
week low are 5608.08, 5503.50, 5237.80, 5071.03, 4884.47 and
4531.15.
v. The Resistance level of Nifty within 52 week high (5944.45)
and 52 week low (4531.15) are 6280.82, 6385.40, 6651.10,
6817.87, 7004.43 and 7357.75.
vi. The long term targets for Nifty, if breaks 5944.45 will be
6280.82, 6385.40, 6651.10, 6817.87, 7004.43 and 7357.75.
69

vii. The violation and break below 4531.15, Nifty may take
supports at 4194.78, 4090.20, 3824.50, 3657.73, 3471.17 and
3117.85.
viii. The average price between Open and Close price of Nifty is
Rs.4 it is the close price greater than the open price.
ix. The average price between High and Low price of Nifty is
Rs.85.
5.3. Suggestion
A. The following are the suggestions made related to the findings.
i. The current market price of Nifty is above in two simple moving
averages that are Short term and Medium term moving averages.
Hence, the investors can invest in both short and medium term
investment.
ii. And in case of Long term moving average the current price is less
than the long term moving average price. So that the investors can
avoid the long term investments.
iii. The full hedged technical analysis through simple moving averages
and retracement levels indicate that long term price outlook of
Nifty in Negative.
iv. The full hedged technical analysis through simple moving averages
and retracement levels indicate that Short and medium price
outlook of Nifty in positive.

70

A. The following are the suggestions made related to Trading.
1. Trading for excitement & thrill not for profits.
Many traders consider stock market as casino and trade for
thrill and fun only. As soon as one has a losing trade, he wants to
quickly make back the lost money. He thinks about the other things
he could have done with the money, regret taking the trade and
want to recover as quickly as possible. This in turn leads to further
mistakes. Be patient and wait for the next high probability
opportunity. Don't rush
2. Trading with a high ego.
Many individuals who have remained highly successful in other
business ventures have failed miserably in trading game. Because
they have a fairly big ego and thought they couldnt fail. Their egos
become their downfall because they cannot except that they would
be wrong and refuse to get out of bad trades. Once again, whoever
or wherever any one come from has does not concern the markets.
3. Three 4-letter words that will kill you! HOPE--WISH--
FEAR--PRAY
If you ever find yourself doing one or more of the above while
in a trade then you are in big trouble! Markets has own system of
moving up & down. All the hoping, wishing and praying or being
fearful in the world is not going to turn a losing trade into a
71

winning one. When you are wrong just use a simple 4-letter word
to correct the situation-GET OUT!
4. Trading with money you can't afford to lose.
One of the greatest obstacles to successful trading is using
money that you really cant afford to lose. Examples of this would
be money that is supposed to be used in any other business, money
to be paid for college/school fee, trading with borrowed money etc.
Ultimately what happens is that when someone knows in the back
of their mind that they are risking the money they can not afford to
lose, they trade out of fear and emotion versus logic and no
emotion.
5. No Trading Plan
If you consider yourself a trader, ask yourself these questions:
Do I have a set of rules that tell me what to buy, when to buy and
how much to buy, not just for the next trade, but for the next 10
trades? Before I enter a trade, do I know when I will take profits?
Do I know when I will get out if I am wrong? These questions from
the first part of a trading strategy. There simply cannot be any
expectation of success if we can't answer these questions clearly
and concisely.


72

6. Spending profits before you make them.
Nothing is more exciting than getting into a trade that blasts off and
puts you into a highly profitable situation. This can cause major
problems however, because this type of trade puts you in a highly
euphoric state and leads to daydreaming about the huge profits still
to come. The real problem occurs as you get caught up in the
daydream and expectations. This causes you to not be prepared to
get out as the market reverses and wipes off all your profits
because you have convinced yourself of the eventual outcome and
will deny the reality of the situation. The simple remedy for this is
to know where and how you will take profits once you enter the
trade.
7. Not Cutting Losses or letting Profits run.
One of the most common mistakes made by traders is that they let
their losses grow too large. Nobody likes to take a loss, but failing
to take a small loss early will often result in being forced to take a
large loss later. A great trader is not someone who has never had a
loss. Great traders have made many losses. But what makes them
great is their ability to recover quickly from a string of
losses. Every trader needs to develop a method for getting out of
losing trades quickly. Research and learn to apply the best methods
for placing protective stop loss orders. The only way to recover
from many (small) losing trades is to make sure the winning trades
are much larger. After a series of losing trades, it becomes difficult
73

to hold a winning trade because we fear that it will also turn into a
loss. Let your profitable trades run. Give them room to move and
give them time to move.
8. Not Sticking to your plans & Changing strategies during
market hours
If you find yourself changing your strategy during the day while
the markets are still open, be mindful of the fact that you are likely
to be subject to emotional reactions of fear and greed. With rare
exception, the most prudent thing to do is to plan your trading
strategy before the market opens and then strictly stick to it during
trading hours.
9. Not knowing how to get out of a losing trade.
Its amazing that most of the traders dont have any clear escape
plan for getting out of a bad trade. Once again they hope, pray wish
and rationalize their position. It must be kept in mind that market
does not care what you think. It does what it does and when you
are wrong you are wrong! The easiest way to keep a bad trade from
going really bad is to determine before you get in, where you will
get out.
10. Falling in love with a stock (Just Flirt).
Many traders get fascinated by just a stock or two and look for
opportunities to trade in those stocks only ignoring the other
74

profitable trading opportunities. It is because they have simply
fallen in love with a stock to trade with. Such tendencies can be
suicidal as for as trading is concerned. It may cost any one dearly.
Important Note:
1. Never chase a stock.


2. Buy when markets are in the grip of panic.


3. Only buy fundamentally strong stocks, which are undervalued.


4. Buy stocks grown in top line and bottom line over the past years.


5. Invest in companies with proven management.


6. Avoid loss-making companies.


7. PE Ratio and Growth in earnings per share are the key.


8. Look for the dividend paying record.


9. Invest in stocks for sure returns.


10. Stocks have been the high yielding asset class over the past.


11. Stocks are an asset class.


12. The basic property of any asset class is to grow.


13. Buy when everyone is selling and sell when everyone buys.








75


Conclusion
The study has been undertaken with the main objectives to study the Nifty
price Movements in National Stock Exchange. By carrying out this project work the
researcher has gained knowledge in Capital Market. Nifty price movement is studied
through the share price movement in National Stock Exchange. By this project work
the researcher has learnt how to use technical tools to predict the future price of a
share.
76

Annexure a
Historical data of NSE Nifty Indices

Date Open High Low Close
Shares
Traded
Turnover
(Cr)
24-Jan-2012 5717.10 5756.00 5697.75 5743.25 108832157 6641.96
25-Jan-2012 5763.30 5801.55 5680.65 5687.40 126128667 7302.14
27-Jan-2012 5725.30 5726.10 5594.95 5604.30 201496674 9182.79
28-Jan-2012 5614.00 5614.40 5459.55 5512.15 173107003 8122.35
31-Jan-2012 5452.55 5526.85 5416.65 5505.90 177847681 7873.96
01-Feb-2012 5537.30 5539.15 5402.00 5417.20 171232063 7797.43
02-Feb-2012 5469.55 5490.60 5415.65 5432.00 172198228 7860.06
03-Feb-2012 5430.45 5532.65 5418.00 5526.75 154228754 6254.00
04-Feb-2012 5519.90 5556.30 5369.05 5395.75 187819542 7685.49
07-Feb-2012 5430.15 5440.35 5376.95 5396.00 150447066 5905.38
08-Feb-2012 5432.35 5432.35 5303.40 5312.55 155600262 6479.05
09-Feb-2012 5293.05 5339.45 5225.65 5253.55 246525934 9294.77
10-Feb-2012 5246.05 5272.60 5196.80 5225.80 225237990 8309.47
11-Feb-2012 5219.65 5319.45 5177.70 5310.00 211250584 7717.69
14-Feb-2012 5340.25 5463.80 5340.25 5456.00 175710338 7073.77
15-Feb-2012 5467.75 5506.50 5408.35 5481.00 170459703 7071.00
16-Feb-2012 5467.60 5504.80 5460.35 5481.70 140517190 5258.76
17-Feb-2012 5501.70 5553.00 5463.40 5546.45 143669623 5601.73
18-Feb-2012 5557.55 5599.25 5441.95 5458.95 180906498 7684.74
21-Feb-2012 5456.60 5526.25 5413.10 5518.60 137634026 6109.38
22-Feb-2012 5504.40 5519.45 5437.30 5469.20 166271411 7383.12
23-Feb-2012 5452.45 5495.20 5427.55 5437.35 173584660 7203.80
24-Feb-2012 5408.75 5423.40 5242.50 5262.70 259347677 11011.16
25-Feb-2012 5321.05 5338.20 5232.75 5303.55 193536325 7679.23
28-Feb-2012 5330.15 5477.00 5308.60 5333.25 317245759 10276.18
01-Mar-2012 5382.00 5533.05 5373.55 5522.30 210498269 7411.09
03-Mar-2012 5478.45 5570.75 5468.25 5536.20 218804792 8848.97
04-Mar-2012 5586.20 5608.20 5524.10 5538.75 162006860 6522.01
07-Mar-2012 5490.05 5491.25 5408.45 5463.15 134581629 5145.87
08-Mar-2012 5466.10 5530.55 5464.75 5520.80 127506672 5176.59
09-Mar-2012 5542.40 5563.30 5477.45 5531.00 149822867 5595.45
10-Mar-2012 5516.10 5516.30 5468.45 5494.40 135730117 4854.41
11-Mar-2012 5456.15 5502.70 5411.55 5445.45 133441964 5586.59
14-Mar-2012 5436.50 5537.30 5434.25 5531.50 173521756 5310.24
15-Mar-2012 5420.00 5497.85 5373.65 5449.65 191037598 7745.78
16-Mar-2012 5475.95 5535.10 5475.95 5511.15 135196748 5724.84
17-Mar-2012 5455.40 5510.05 5435.30 5446.65 135255698 5962.69
18-Mar-2012 5475.35 5483.05 5366.40 5373.70 129492420 5729.27
21-Mar-2012 5408.75 5413.30 5348.20 5364.75 107174731 4222.09
22-Mar-2012 5390.85 5428.15 5376.15 5413.85 94938100 3978.80
77

23-Mar-2012 5411.40 5484.95 5401.95 5480.25 112036402 4852.75
24-Mar-2012 5501.80 5529.00 5496.10 5522.40 115262055 4766.56
25-Mar-2012 5588.65 5667.10 5560.95 5654.25 133451382 6457.47
28-Mar-2012 5645.25 5709.10 5643.20 5687.25 130717964 6675.09
29-Mar-2012 5686.50 5770.35 5680.70 5736.35 140479340 6737.62
30-Mar-2012 5755.80 5803.15 5753.90 5787.65 133208726 6161.99
31-Mar-2012 5803.05 5872.00 5778.65 5833.75 219441114 11741.25
01-Apr-2012 5835.00 5860.20 5810.40 5826.05 118321855 5698.58
04-Apr-2012 5842.00 5918.70 5833.20 5908.45 106392427 5424.67
05-Apr-2012 5923.85 5928.65 5855.85 5910.05 110625437 5386.96
06-Apr-2012 5908.00 5944.45 5868.80 5891.75 125960708 6114.96
07-Apr-2012 5888.55 5906.10 5866.25 5885.70 98160761 5029.08
08-Apr-2012 5886.75 5926.95 5822.00 5842.00 99854772 5071.12
11-Apr-2012 5805.35 5830.30 5777.90 5785.70 92734132 4636.40
13-Apr-2012 5747.95 5923.60 5735.55 5911.50 145699909 6888.51
15-Apr-2012 5898.75 5907.35 5806.45 5824.55 140590405 9198.80
18-Apr-2012 5824.35 5897.90 5722.25 5729.10 121111083 7626.14
19-Apr-2012 5716.00 5762.95 5693.25 5740.75 101237488 5510.81
20-Apr-2012 5786.05 5857.35 5759.65 5851.65 117896054 6097.39
21-Apr-2012 5882.85 5912.90 5864.35 5884.70 119753918 7240.13
25-Apr-2012 5859.60 5906.60 5857.00 5874.50 94377009 5323.17
26-Apr-2012 5876.85 5893.20 5791.55 5868.40 117166769 6155.73
27-Apr-2012 5884.20 5892.35 5819.95 5833.90 108740523 5893.38
28-Apr-2012 5851.35 5856.40 5776.95 5785.45 159344933 8773.70
29-Apr-2012 5782.50 5804.30 5706.05 5749.50 184751755 7259.00
02-May-2012 5766.90 5775.25 5687.70 5701.30 86514383 4614.18
03-May-2012 5689.70 5710.80 5554.85 5565.25 125522829 7457.00
04-May-2012 5567.70 5578.80 5503.00 5537.15 119083244 6150.25
05-May-2012 5531.60 5560.30 5443.65 5459.85 126424541 5953.85
06-May-2012 5477.65 5564.40 5472.45 5551.45 122684321 5969.39
09-May-2012 5575.20 5586.05 5502.40 5551.10 75438946 3387.89
10-May-2012 5555.55 5592.90 5514.55 5541.25 88822800 3931.01
11-May-2012 5547.20 5574.70 5525.00 5565.05 82509136 4309.88
12-May-2012 5537.80 5572.50 5476.30 5486.15 91624740 4342.75
13-May-2012 5492.35 5605.00 5472.15 5544.75 119423852 5690.93
16-May-2012 5541.70 5541.80 5487.65 5499.00 94219161 4343.66
17-May-2012 5496.10 5523.85 5421.05 5438.95 109199263 6356.90
18-May-2012 5448.20 5460.50 5401.25 5420.60 107357672 6250.15
19-May-2012 5448.15 5452.60 5411.25 5428.10 94180687 5509.73
20-May-2012 5450.65 5517.55 5432.75 5486.35 127399855 5791.89
23-May-2012 5456.70 5456.70 5373.00 5386.55 94674110 5037.85
24-May-2012 5385.10 5422.60 5367.45 5394.85 100052471 4819.47
25-May-2012 5389.10 5389.10 5328.70 5348.95 99917758 5133.01
26-May-2012 5372.75 5422.20 5356.35 5412.35 161608076 7601.74
27-May-2012 5413.70 5485.80 5413.60 5476.10 117233303 5553.69
30-May-2012 5493.75 5509.30 5458.60 5473.10 100764849 4451.38
31-May-2012 5492.00 5571.60 5489.70 5560.15 149409715 6946.23
01-Jun-2012 5561.05 5597.35 5559.45 5592.00 98629277 4670.86
02-Jun-2012 5529.90 5568.20 5521.95 5550.35 110949186 4709.42
78

03-Jun-2012 5565.70 5604.95 5507.20 5516.75 101017578 4757.10
06-Jun-2012 5504.30 5542.65 5479.85 5532.05 77137320 3486.68
07-Jun-2012 5509.15 5570.10 5507.80 5556.15 81858402 3830.70
08-Jun-2012 5535.25 5556.60 5514.90 5526.85 92928675 3869.33
09-Jun-2012 5523.55 5540.10 5502.05 5521.05 87033655 3859.17
10-Jun-2012 5518.05 5521.45 5457.45 5485.80 84190282 3995.15
13-Jun-2012 5469.85 5496.70 5436.95 5482.80 80104906 3807.22
14-Jun-2012 5485.60 5520.15 5484.20 5500.50 97840485 4714.26
15-Jun-2012 5494.45 5499.35 5438.95 5447.50 95878889 4562.47
16-Jun-2012 5419.65 5447.50 5389.80 5396.75 128063494 5341.03
17-Jun-2012 5412.50 5421.15 5355.85 5366.40 97876272 4480.59
20-Jun-2012 5372.20 5377.40 5195.90 5257.90 135334880 5956.17
21-Jun-2012 5280.80 5322.45 5257.00 5275.85 107191673 4765.02
22-Jun-2012 5304.65 5310.50 5262.50 5278.30 95769497 4151.39
23-Jun-2012 5269.10 5330.60 5252.25 5320.00 89001344 3756.75
24-Jun-2012 5343.40 5477.85 5343.40 5471.25 140100077 6791.80
27-Jun-2012 5441.20 5552.65 5434.25 5526.60 143402407 6707.54
28-Jun-2012 5548.85 5558.30 5496.35 5545.30 114413706 5127.85
29-Jun-2012 5566.50 5608.65 5566.50 5600.45 124593981 5463.96
30-Jun-2012 5614.50 5657.90 5606.10 5647.40 179224275 8133.27
01-Jul-2012 5705.75 5705.80 5609.75 5627.20 141092473 5590.28
04-Jul-2012 5679.55 5679.65 5633.10 5650.50 103528865 4266.62
05-Jul-2012 5659.85 5659.85 5612.30 5632.10 100776400 4938.19
06-Jul-2012 5622.70 5655.40 5610.75 5625.45 86109914 4239.98
07-Jul-2012 5633.35 5737.15 5632.95 5728.95 112220298 5439.55
08-Jul-2012 5734.65 5740.40 5651.05 5660.65 129276449 5659.53
11-Jul-2012 5648.05 5652.90 5601.70 5616.10 78899703 3579.63
12-Jul-2012 5556.90 5580.25 5496.95 5526.15 104907108 5294.13
13-Jul-2012 5542.05 5596.15 5541.40 5585.45 106019573 4702.05
14-Jul-2012 5569.00 5653.95 5541.70 5599.80 123015471 5390.44
15-Jul-2012 5602.95 5631.70 5562.75 5581.10 80426784 3668.42
18-Jul-2012 5581.75 5596.60 5550.95 5567.05 73604991 3305.34
19-Jul-2012 5569.85 5627.65 5557.20 5613.55 86555649 3983.28
20-Jul-2012 5642.05 5645.40 5555.10 5567.05 87093214 3825.45
21-Jul-2012 5554.60 5578.90 5532.70 5541.60 76327640 3681.07
22-Jul-2012 5576.95 5642.20 5567.10 5633.95 106781617 5040.43
25-Jul-2012 5633.80 5700.55 5616.70 5680.30 142008190 5622.44
26-Jul-2012 5688.45 5702.25 5560.15 5574.85 134108563 6270.33
27-Jul-2012 5588.55 5591.70 5521.50 5546.80 122321153 5358.36
28-Jul-2012 5492.40 5512.10 5475.65 5487.75 164522151 6883.18
29-Jul-2012 5479.00 5520.30 5453.95 5482.00 156128914 5901.53
01-Aug-2012 5527.50 5551.90 5486.45 5516.80 98962726 4048.98
02-Aug-2012 5493.20 5496.30 5433.65 5456.55 110372244 4236.41
03-Aug-2012 5402.00 5422.60 5378.85 5404.80 133223864 5339.25
04-Aug-2012 5412.40 5434.50 5323.15 5331.80 118482440 4820.07
05-Aug-2012 5204.35 5229.65 5116.45 5211.25 196016865 7543.44
08-Aug-2012 5083.85 5204.20 5054.05 5118.50 188307028 7326.93
09-Aug-2012 4947.90 5167.00 4946.45 5072.85 233869015 9385.01
10-Aug-2012 5196.55 5197.95 5123.35 5161.00 158404456 6289.41
79

11-Aug-2012 5128.00 5184.95 5121.00 5138.30 113043482 4723.01
12-Aug-2012 5194.40 5194.45 5053.35 5072.95 128834807 5909.91
16-Aug-2012 5125.75 5132.20 5015.40 5035.80 130896704 5081.61
17-Aug-2012 5030.30 5112.15 5017.25 5056.60 143342008 5472.63
18-Aug-2012 5077.95 5078.60 4932.15 4944.15 139816131 5686.22
19-Aug-2012 4859.30 4893.60 4796.10 4845.65 166702431 7317.33
22-Aug-2012 4843.70 4910.05 4808.75 4898.80 123813921 5186.04
23-Aug-2012 4925.15 4965.80 4863.80 4948.90 130010440 5519.36
24-Aug-2012 4934.35 4962.40 4875.30 4888.90 129410652 5241.50
25-Aug-2012 4914.65 4915.85 4825.05 4839.60 184913414 7921.11
26-Aug-2012 4839.25 4872.00 4720.00 4747.80 149717732 5850.84
29-Aug-2012 4806.20 4934.40 4806.05 4919.60 145125304 5576.71
30-Aug-2012 4973.25 5016.25 4927.55 5001.00 181539730 7051.77
02-Sep-2012 5109.80 5113.70 4993.35 5040.00 195055967 7689.70
05-Sep-2012 4998.90 5030.30 4964.45 5017.20 162898218 6359.59
06-Sep-2012 4993.35 5072.90 4942.90 5064.30 183680006 7278.00
07-Sep-2012 5080.15 5154.50 5076.30 5124.65 193856202 6883.16
08-Sep-2012 5139.20 5169.25 5098.25 5153.25 140855342 6093.78
09-Sep-2012 5161.30 5163.75 5046.80 5059.45 158713071 6482.27
12-Sep-2012 4981.70 4985.60 4911.25 4946.80 135500219 5175.51
13-Sep-2012 4977.80 5030.15 4911.05 4940.95 146005268 5305.87
14-Sep-2012 4965.05 5026.15 4917.40 5012.55 154276761 6416.57
15-Sep-2012 5062.35 5091.45 4967.45 5075.70 153648925 5935.88
16-Sep-2012 5123.35 5143.60 5068.10 5084.25 225187238 8379.56
19-Sep-2012 5068.40 5068.40 5019.25 5031.95 115737842 4042.27
20-Sep-2012 5042.55 5149.90 5035.25 5140.20 146599496 5504.69
21-Sep-2012 5153.75 5168.40 5109.85 5133.25 132918171 5142.01
22-Sep-2012 5054.45 5059.85 4907.75 4923.65 147608376 5675.35
23-Sep-2012 4873.75 4930.25 4829.60 4867.75 205769423 7364.65
26-Sep-2012 4878.60 4879.80 4758.85 4835.40 156079487 5475.64
27-Sep-2012 4905.15 4982.95 4905.15 4971.25 151313966 5284.66
28-Sep-2012 5005.50 5006.05 4918.45 4945.90 166872414 6078.49
29-Sep-2012 4924.20 5034.25 4906.00 5015.45 216156088 8284.97
30-Sep-2012 4990.15 5025.55 4924.30 4943.25 201962105 6764.12
03-Oct-2012 4874.40 4879.15 4823.90 4849.50 148921569 5230.17
04-Oct-2012 4823.50 4869.75 4728.30 4772.15 184413296 6736.87
05-Oct-2012 4791.30 4827.80 4741.00 4751.30 179140481 6385.35
07-Oct-2012 4883.65 4922.60 4861.20 4888.05 198288782 6914.62
10-Oct-2012 4886.85 4991.15 4882.05 4979.60 188839545 6247.21
11-Oct-2012 5019.90 5045.10 4964.00 4974.35 182038763 6386.80
12-Oct-2012 5011.20 5109.80 4997.65 5099.40 188008562 7528.09
13-Oct-2012 5130.80 5136.95 5067.65 5077.85 157302816 6319.82
14-Oct-2012 5057.35 5141.40 5056.60 5132.30 157781872 6140.27
17-Oct-2012 5156.20 5160.20 5084.50 5118.25 130460983 5029.13
18-Oct-2012 5049.45 5057.50 5011.05 5037.50 125550565 5148.86
19-Oct-2012 5080.45 5148.05 5075.30 5139.15 117468754 4776.09
20-Oct-2012 5086.55 5099.00 5033.95 5091.90 119333986 4582.47
21-Oct-2012 5106.60 5120.75 5037.95 5049.95 109893599 4733.71
24-Oct-2012 5114.70 5145.65 5084.75 5098.35 126073195 4927.43
80

25-Oct-2012 5137.90 5211.00 5085.55 5191.60 221084588 9967.24
26-Oct-2012 5214.95 5219.25 5196.15 5201.80 27496887 1059.46
28-Oct-2012 5341.90 5399.70 5322.80 5360.70 246078412 9151.20
31-Oct-2012 5358.90 5360.25 5314.60 5326.60 149483502 5937.99
01-Nov-2012 5278.60 5310.85 5238.30 5257.95 152491922 5651.67
02-Nov-2012 5216.75 5300.10 5204.95 5258.45 144375106 4918.34
03-Nov-2012 5241.55 5281.60 5201.85 5265.75 160282802 5716.17
04-Nov-2012 5325.40 5326.45 5256.80 5284.20 149015829 5401.13
08-Nov-2012 5292.25 5304.25 5252.00 5289.35 120652007 4159.75
09-Nov-2012 5309.70 5317.50 5211.75 5221.05 146428609 6720.83
11-Nov-2012 5159.75 5198.60 5142.25 5168.85 168514208 6929.85
14-Nov-2012 5217.35 5228.90 5140.55 5148.35 134448100 5263.81
15-Nov-2012 5131.20 5158.75 5052.85 5068.50 149592578 5201.21
16-Nov-2012 5059.10 5065.20 4989.50 5030.45 161406885 5757.81
17-Nov-2012 5027.10 5036.80 4919.45 4934.75 149238976 5277.65
18-Nov-2012 4899.15 4915.90 4837.95 4905.80 192274363 6481.17
21-Nov-2012 4873.80 4873.80 4764.80 4778.35 154119333 5509.53
22-Nov-2012 4794.85 4854.00 4782.55 4812.35 174212435 6275.86
23-Nov-2012 4779.50 4779.50 4640.95 4706.45 178819371 6199.31
24-Nov-2012 4707.55 4771.10 4639.10 4756.45 213363083 7327.52
25-Nov-2012 4731.30 4767.30 4693.10 4710.05 162839558 5812.61
28-Nov-2012 4769.30 4859.10 4766.40 4851.30 145259101 4869.41
29-Nov-2012 4864.20 4866.10 4787.10 4805.10 155570321 5786.83
30-Nov-2012 4766.15 4851.55 4754.80 4832.05 282217865 11393.19
01-Dec-2012 4970.85 5011.90 4916.70 4936.85 183915785 6699.33
02-Dec-2012 4940.85 5062.55 4918.40 5050.15 180190935 6527.43
05-Dec-2012 5036.50 5055.40 5002.55 5039.15 137254409 4689.58
07-Dec-2012 5050.10 5099.25 5032.25 5062.60 169428273 6005.21
08-Dec-2012 5037.40 5049.05 4921.45 4943.65 178853365 6029.68
09-Dec-2012 4870.75 4918.35 4841.75 4866.70 173612823 6040.22
12-Dec-2012 4906.85 4910.25 4755.55 4764.60 178338170 5926.00
13-Dec-2012 4733.60 4824.70 4728.50 4800.60 181043707 5816.38
14-Dec-2012 4788.70 4839.55 4750.40 4763.25 176252160 6324.86
15-Dec-2012 4712.80 4768.65 4673.85 4746.35 200317864 6976.68
16-Dec-2012 4752.50 4818.85 4628.20 4651.60 202060039 7284.93
19-Dec-2012 4623.15 4623.15 4555.90 4613.10 176447660 6302.29
20-Dec-2012 4635.80 4637.25 4531.15 4544.20 195304596 6279.01
21-Dec-2012 4636.45 4707.35 4601.95 4693.15 211310871 6689.82
22-Dec-2012 4636.90 4740.60 4632.95 4733.85 170789015 6017.00
23-Dec-2012 4763.20 4763.45 4693.20 4714.00 141982548 4676.75
26-Dec-2012 4718.15 4787.25 4718.15 4779.00 90847991 3034.39
27-Dec-2012 4780.20 4800.50 4723.65 4750.50 104828343 3342.15
28-Dec-2012 4756.20 4756.20 4685.65 4705.80 117463489 3657.52
29-Dec-2012 4681.15 4701.80 4639.05 4646.25 146003804 5137.28
30-Dec-2012 4659.95 4690.45 4608.90 4624.30 113900727 3785.33
02-Jan-2013 4640.20 4645.95 4588.05 4636.75 108460668 3590.96
03-Jan-2013 4675.80 4773.10 4675.80 4765.30 146621115 5021.29
04-Jan-2013 4774.95 4782.85 4728.85 4749.65 165938849 5661.16
05-Jan-2013 4749.00 4779.80 4730.15 4749.95 177862936 5873.79
81

06-Jan-2013 4724.15 4794.90 4686.85 4754.10 176057282 5234.69
07-Jan-2013 4755.60 4759.40 4743.05 4746.90 18783880 414.88
09-Jan-2013 4747.55 4758.70 4695.45 4742.80 147534537 4548.30
10-Jan-2013 4771.85 4855.90 4768.25 4849.55 201661174 6222.27
11-Jan-2013 4863.15 4877.20 4841.60 4860.95 209079758 6364.00
12-Jan-2013 4840.95 4869.20 4803.90 4831.25 183068697 7271.44
13-Jan-2013 4861.95 4898.85 4834.20 4866.00 230940604 7117.50
16-Jan-2013 4844.00 4880.80 4827.05 4873.90 160479891 5297.89
17-Jan-2013 4904.50 4975.55 4904.00 4967.30 223004183 7170.72
18-Jan-2013 4977.75 4980.65 4931.05 4955.80 211198796 7424.79
19-Jan-2013 4995.00 5023.80 4991.40 5018.40 203487608 6634.33
20-Jan-2013 5044.85 5064.15 5004.30 5048.60 221048007 8120.35
23-Jan-2013 5025.35 5059.55 5021.35 5046.25 158177571 5934.04
24-Jan-2013 5064.80 5141.05 5049.80 5127.35 202006565 8172.43




82

BIBLIOGRAPHY
Books:
a. Investment Portfolio Management Gordon Natarajan
b. Research Methodology Cooper
c. Indian Capital Market V. A Avadhani
d. Security and Portfolio Management Donald E. Fischer and Ronald J. Jordan
Newspaper:
Business Line
Websites:
a) www.google.com
b) www.nseindia.com
c) www.sharekhan.com
d) http://www.nseindia.com/content/indices/ind_histvalues.htm
e) www.wikipedia.com