A REPORT

ON

FUNDAMENTAL AND TECHNICAL ANALYSIS OF IT SECTOR WITH

REFERENCE TO ADITYA BIRLA CAPITAL CO. LTD

By
Anish Kumar Basavannagari
17BSP0354

ADITYA BIRLA CAPITAL CO. LTD

1
 A REPORT
ON

FUNDAMENTAL AND TECHNICAL ANALYSIS ON IT SECTOR WITH

REFERENCE TO ADITYA BIRLA CAPITAL CO. LTD

By
Anish Kumar Basavannagari
17BSP0354

ADITYA BIRLA CAPITAL

(Formerly Aditya Birla Sun Life Insurance Company Ltd.)

A report submitted in partial fulfilment of the requirements of PGPM

Program of IBS GURGAON

SUBMITTED TO:

Nikesh Ruparel
(Company Guide)

Date of Submission: 06-06-2018

2
AUTHORISATION:
This is certify that the report is submitted in partial fulfilment of the requirement
of PGPM program of IBS Gurgaon.
The report titled “Fundamental and Technical analysis on IT sector” at Aditya
Birla Capital Ltd., is a submission of Anish Kumar work and the record is a
bonafide work carried out by his at Aditya Birla Capital LTD.

Signature

3
 ACKNOWLEDGEMENT

I would like to express my hearty gratitude to our college IBS, GURGAON for giving me the
opportunity to learn and visualize through practical implementation.
The internship opportunity I had with [ADITYA BIRLA CAPITAL] was a great chance for
learning and professional development. Therefore, I consider myself as a very lucky individual
as I was provided with an opportunity to be a part of it. I am also grateful for having a chance
to meet so many wonderful people and professionals who led me though this internship period.
I would like to thank Mr. Rakesh Qasba (Branch Manager) Aditya Birla Sun Life for being
supportive during the internship. Bearing in mind previous I am using this opportunity to
express my deepest gratitude and special thanks to Mr. Nikesh Ruparel (company guide) who
in spite of being extraordinarily busy with his duties, took time out to hear, guide and keep me
on the correct path and allowing me to carry out my project at their esteemed organization and
extending during the training.
I am also thankful to), Mr. Aniket Chandanshive (Trading Trainer).
I would like to express my great thanks to my Faculty Guide for being supportive, helping me
in all possible manners, guiding me with suggestions during the internship and updating me
with all possibilities and required information.
Nikesh Ruparel(company guide) and faculty guide both were very helpful and I am so delighted
that I got such valuable persons. I have learned so many things from them.
At last I am thankful to my parents for putting their belief on me and providing enough support
to my career development.

ANISH KUMAR
17BSP0354
IBS GURGAON

4
Table of contents Page no.
Authorisation i
Acknowledgement ii
Executive summary iii
1. introduction 6-11
1. 1. SWOT analysis of the company 12
1. 2. Flow chart of the organization 13
1. 3. My role at the company 14
1. 4. Analysis of IT sector 14
1. 5. Objectives of the report 15
1. 6. Methodology adopted 16
2. Live Trading 17
2. 1. Trading based on Demand and supply 17-8
2. 2. Candle sticks in trading 19-20
3. Fundamental analysis of IT sector 21
3. 1. Overview of IT 21-22
3. 2. General steps to fundamental analysis 22
3. 3. Steps for sectorial fundamental analysis 23-25
3. 4. procedure for creating index of IT Sector companies 25-35
3. 5. List of companies 26-27
4. Technical analysis 36-38
4. 1. Technical indicators 39-45
4. 2. Technical charts 46-47
4. 3. Technical charts of TCS 47-48
5. introduction to Derivatives 49
5. 1. Products in Derivatives 49
5. 2. Market participants 50
5. 3. Option strategies 51
Conclusion 52
Findings 52
Learnings from SIP 53
References 54

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 Executive Summary
IBS Gurgaon (ICFAI) curriculum gives the opportunity to work pursuing our PGPM Program
in order to understand various methods and modern day working environment.
Student information: I, Anish Kumar, a student of IBS Gurgaon from 2017-2019 batch,
enrolment number 17BSP0354 completed my summer internship at Aditya Birla Capital Ltd,
formerly Aditya Birla Sun Life Insurance at Delhi. Internship from 15th February 2018 to 25th
May 2018.
Organization Description: Aditya Birla Capital Limited (ABCL) is the holding company for
all financial businesses of the Aditya Birla Group.
Birla Sun Life Insurance Company Limited (BSLI), it is a joint venture between the Indian
conglomerate Aditya Birla Group, and Sun Life Financial Inc.
Address: Plot no: 22, LSC Madanghiri, near Pushpa Vihar, Saket, Delhi 110066.
Title: Fundamental and Technical analysis on IT sector with reference to Aditya Birla
Capital Ltd.
Objective: Aditya Birla Capital focuses on fund allocation and investing in different companies
stocks to make maximum returns. Therefore objectives are as follows:
• To understand about live trading.
• To maintain the index of IT Sector.
• To create a fund using top IT companies and analyse its performance.
• To understand how to use various technical tools and technical charts on stocks.
Methodology: The study is purely based on secondary data. the sample size for my analysis, I
have selected high Market Capitalization of Indian IT companies.

Primary Data:
• Interaction with the company guide
• Observing Live charts

Secondary Data:
• NSE website for recording of last traded price on a regular basis.
• Officials websites of the IT companies.
• Investing.com
• Money control

Findings and Conclusion: The report clearly tells about the initial stage which is how I have
done trading in a portal by using Demat Account, and mid shows steps of Fundamental analysis
on IT sector, and then report shows about Technical tools and charts for analysis of IT sector
stocks so that investment can be made easily by using those both analysis part.
• Analysis shows that IT sector has been developing continuously since.

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 • Since three months investors are gaining maximum returns by investing in the IT sector.
• Assumed mutual fund is allocated among top four well performing companies.as a result
is NAV is calculated on a regular basis.
• Technical analysis gives transparent results it reduces the risk while investing.
• Technical indicators shows that ups and downs trend of the stock.
• Derivatives are deals with high cost, but they are also generate large revenues.
During the internship following concepts were learned:
1. Preparation of INDEX of companies.
2. Fundamental Analysis on IT sector (Taken as main project):
• Analysis of the sector.
• Factors affecting sector.
• Evaluation of the sector.
3. Trading:
• Trade in Share Market (Intra-day).
• Stock Filtering.
• Trade on Terminal (Trade Tiger of Sharekhan).
4. Technical Analysis (Taken as main project):
• Use of technical tools to analyze scrip.
• Trade on Demand & Supply basis.
• Use of technical tools to analyse stocks.
5. Sector mutual fund:
• Investing in Mutual funds.
• Analyses of investment.
• Maintaining NAV index.
6. Derivatives
• Futures
• Options
• Strategies

Special achievements: gained knowledge for NISM certification course so, that I can give
exam.

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 1. INTRODUCTION MY COMPANY

About the ADITYA BIRLA CAPITAL

Aditya Birla Capital Limited (ABCL) is the holding company for all financial businesses of
the Aditya Birla Group. It was incorporated in 2007 and is a Non-Banking Financial Institution.
Aditya Birla Capital Limited (ABCL) is a part of the Aditya Birla Group. Aditya Birla Group
operates in 36 countries across the globe, about 50% of its revenues flow from its overseas
operations. Aditya Birla Group has a strong presence across the Life insurance, Asset
management, Private equity, corporate lending, structured finance, general insurance broking,
online finance management, housing finance, pension fund management and health insurance
management.

Products and services offered by the company include

• life insurance
• asset management
• private equity
• corporate finance
• structured finance
• insurance broking
• wealth management
• equity broking
• currency broking
• commodity broking
• financial advisory services
• housing loans
• pension fund management and health insurance.

The Aditya Birla Group announced a plan to restructure its business in 2016. As part of this
plan, it was announced that the financial services business would be listed as a separate entity
on stock exchanges. In September 2017, Aditya Birla Financial Services was restructured as
Aditya Birla Capital Limited listed on the Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE) after demerging from its parent entity, Grasim Industries.

8
In 2017, all financial services of the Aditya Birla Group came under one brand, Aditya Birla
Capital.] The company came out with a strategy of a single brand, single point of contact for
clients and focus on money in general in place of individual products.

Key people:
• kumara Mangalam Birla (chairman)
• Ajay Srinivasan (chief executive)

Revenue :
• 560.8 Billion (US$ 8.6 Billion) in the record of 2017.

Total assets:
The company is having 7.813 trillion(US$ 120 Billion) in the record of 2017.
Mission :
The endeavour is to become a preferred financial services brand of choice for all
our customers needs across their life cycle – “a brand that customers will not only just trust but
also happily endorse”.

Vision :
To be a leader and role model in a broad – based and integrated financial services
business. The 4 pillar of our vision that will helps us achieve it are:
• To be a leader
• To be a role model
• To be a broad – based model
• We aim to be integrated player

Total assets: 2017- 5155.42 cr, 2016-3146.32 cr

As a result Aditya Birla Capital is developing in financially , and it is strong at maintaining
required fund.

9
 Aditya Birla sun Life insurance co Ltd

As I works under Birla Sun Life Insurance Company Limited (BSLI), it is a joint venture
between the Indian conglomerate Aditya Birla Group, and Sun Life Financial Inc., an
international financial services organisations from Canada. BSLI has a customer base of over
two and half million policy holders.
Birla Sun Life Insurance Company Limited was founded in 2000. The company is based
in Mumbai, India. It is a joint venture between Indian Aditya Birla Group and Canadian Sun
Life Financial Inc. In April 2016, Sun Life Financial increased their stake in Birla Sun Life
Insurance to 49%.
I understand and deal with different products which are offered by the company, the following
are products which company offers:

• Protection
• Wealth & Protection
• Children’s Future
• Health & Wellness
• Retirement
• Saving with Protection

Key people:
• Aditya Vikram Birla (founder)
• kumara Mangalam Birla (chairman)
• Pankaj Razdan (MD and CEO)
• Amit Jain (chief financial officer)

Vision:
To be a world class provider of financial security to individuals and corporates and to be
amongst the top three private sector life insurance companies in India.

Mission:
To be the first preference of our customers by providing innovative, need based life insurance
and retirement solutions to individuals as well as corporates.

10
Total assets:
$4.59 billion in the records of 2015, it represents that quick profits and development of
the company.

Growth of company:
BSLI is the first Indian Insurance Company to introduce "Free Look Period", by which
consumer can return the policy to an insurance company within this period after receiving the
policy. “Free Look Period” was later made mandatory by for all other life insurance companies
In 2013. Additionally, BSLI pioneered the launch of Unit Linked Plan. BSLI has a policy of
disclosing their portfolio on a monthly basis. On 5 February 2015, Birla Sun Life Insurance
signed an IT outsourcing deal with (IBM) with a view to leveraging mobility and cloud
solutions developed by IBM Research and the IBM India Software Lab.
As of September 2017, total AUM of ABSLI stood at Rs. 357,314 million. (Source: Life
Insurance Council). ABSLI recorded a gross premium income of Rs. 24,331 million in H1 FY
2017-18 and registering a y-o-y growth of 21% in First Year Premium and posted a net profit
of Rs. 70 Crore. ABSLI has a nation-wide distribution presence through 433 branches, 6
bancassurance partners, 7 distribution channels, over 80,000 direct selling agents, other
Corporate Agents and Brokers and through its website. The company has over 8,000 employees.

The Company offers a complete range of protection solutions to help secure your family's future
and provide financial support for your child's education, wealth with protection solutions, health
and wellness solutions, retirement solutions and savings with protection solutions to help you
stay financially secure in the future with small disciplined savings at regular intervals. ABSLI
puts people's need first and aims to protect what is dear to the customer, with assurance. While,
Life Insurance cannot prevent risk, it can definitely compensate financial losses arising from
risk.

11
 1.1. SWOT Analysis of Birla Sun Life Insurance:

STRENGTHS 1. Has network of 600 branches and advisor spread over 1500
towns in India having over 130000 advisors.

2. Backed by Aditya Birla Brand and Sun Life financial

services.

3. Emphasis on customer satisfaction through transparent

functioning.

4. Strong Capital Base.

WEAKNESSES 1. Low presence in rural market.

2. Lesser advertising as compared to competition.

OPPORTUNITIES 1. Growing potential in rural market.

2. Alignment with government schemes.
3. Better awareness amongst people for getting insurance.

Threats 1. Economic crisis and economic instability.

2. Entry of new NBFCs in the sector.

12
1.2. Flow chart of the Aditya Birla group

13
 1.3. My role at the company

• The operational work at the company included trading to understand how market
fluctuates.
• Applying technical indicators like Bollinger band, RSI, SMA, DMA, etc
• Maintaining the index of IT sector. To find the index movement of the IT sector.
• Fund allocation among top companies.

1.4. Analysis of IT sector

• Index movement on a regular basis.

• Analysing graph charts.
• Proper analysis of current, gross profit, debt to equity ratios of large cap companies.
• Analysis of bullish and bearish stocks.
• Analysis of candle sticks.
• Determining the financial statements of different companies.

14
 1.5. OBJECTIVES OF THE REPORT

• To understand live trading.

• To maintain the index of IT Sector.
• To create a fund using top IT companies and analyse its performance.
• To understand how to use various technical tools and technical charts on stocks.

15
 1.6. Methodology:
Primary Data:
• Interaction with the company guide for information purpose.
• Live view of the technical indicators and charts.

Secondary data:
The study is purely based on secondary data. the sample size for my analysis, I
have selected IT top ten companies mentioned below:
• Infosys
• Wipro Technologies
• Infibeam
• Tata consultancy services
• Oracle Financial Services Software Limited
• Tata Elxsi Limited
• Tech Mahindra Limited
• KPIT Technologies limited
• HCL Technologies Limited
• Mindtree Limited
Mainly I use secondary data to get require information for my report, the following are the tools
which I used for collecting required information for my equity study purpose,
• NSE website:
This site is very crucial and important for my project. I was visited everyday to keep
track on last traded price and to analyse which company is performing better.

• Money control:
This website was used to fetch details such as financial ratios, PE multiple, EPS, Profit
and loss.

• Officials websites of the company such as financial reports

• Screeners and I charts:

It is used to find out effective shares it makes the best way of buying the share.

• Technical analysis information:

This is used to search candle sticks, various technical charts, technical tools for
analysis of individual stocks.

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 2. Live Trading

Online trading is basically the act of buying and selling financial products through an online
trading platform. These platforms are normally provided by internet-based brokers and are
available to every single person who wishes to try to make money from the market.

INDEX
An index is an indicator or measure of something, and in finance, it typically refers to a
statistical measure of change in a securities market. In the case of financial markets, stock and
bond market indices consist of a hypothetical portfolio of securities representing a particular
market or a segment of it. (You cannot invest directly in an index.) The S&P 500 and the US
Aggregate Bond Index are common benchmarks for the American stock and bond markets,
respectively. In reference to mortgages, it refers to a benchmark interest rate created by a third
party. Each index related to the stock and bond markets has its own calculation methodology.
In most cases, the relative change of an index is more important than the actual numeric value
representing the index. For example, if the Financial Times Stock Exchange (FTSE) 100 is at
6,670.40, that number tells investors the index is nearly seven times its base level of 1,000.
However, to assess how the index has changed from the previous day, investors must look at
the amount the index has fallen, often expressed as a percentage.

2.1 TRADING BASED ON SUPPLY AND DEMAND ZONE:-

After opening the chart of a stock in any brokerage interface, we use the following steps to
see the demand and supply zone:-

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STEPS TO IDENTIFY DEMAND ZONE:-

• Start with the current price on the chart.

• Look left and down until you find origin of a strong rally in the prices.

• Draw proximal and distal lines and extend them forward.

• Proximal line is drawn at the top of the candle body.

• Distal line is drawn at the bottom of the candle body.

• Time period will be set for 30 days, 5 minutes for long term investment trading
and daily, 5 minutes for intraday trading.

• In demand zone we buy the stock and sell it further at a higher price for making profit.

BUYING ENTRIES: -
1. Limit entry
2. Zonal entry
3. Confirmation entry

STEPS TO IDENTIFY SUPPLY ZONE:-

• Start with the current price on the chart.
• Look left and up until you find the origin of a strong drop in the price.
• Draw proximal and distal line and extend them.

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2.2 CANDLE STICK IN TRADING:
A candlestick is a chart that displays the high, low, opening and closing prices of a security for
a specific period. The wide part of the candlestick is called the "real body" and tells investors
whether the closing price was higher or lower than the opening price. Black/red indicates that
the stock closed lower and white/green indicates that the stock closed higher. It shows the
growth or decline of a particular stock for a particular time period.

Candle basics :
The difference between the open and the close is called the “real body” of the candlestick. The
higher of these values creates the upper extreme of the real body, and the lower of these values
creates the lower extreme. The amount the stock rose in price above the real body is called the
upper shadow. The amount that the stock fell below the real body is called the lower shadow.
If the candle is green or white, it means the lower extreme is defined by the opening price and
that the stock’s price rose during the period being charted. If the candle is red or black, then the
lower extreme identifies the closing price, and the stock fell during the period.

Candles may be created for any time period: Monthly, weekly, hourly or even a minute.
Regardless of the time frame, candlesticks should not be judged in isolation; traders should
always look for follow-up action to confirm any signals during the following applicable period.

19
HOW TO CALCULATE CANDEL STICK

UP TREND DEMAND ZONE

DOWN TREND SUPPLY ZONE
SIDE TREND NO ZONE

We buy the stock when the candle stick goes below that.

20
 3. Fundamental analysis of IT sector:
Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic
value, by examining related economic, financial and other qualitative and quantitative factors.
Fundamental analysts study anything that can affect the security's value, including
macroeconomic factors such as the overall economy and industry conditions, and
microeconomic factors such as financial conditions and company management. The end goal
of fundamental analysis is to produce a quantitative value that an investor can compare with a
security's current price, thus indicating whether the security is undervalued or overvalued.
Fundamental analysis uses real, public data in the evaluation a security's value. Although most
analysts use fundamental analysis to value stocks, this method of valuation can be used for just
about any type of security. For example, an investor can perform fundamental analysis on a
bond's value by looking at economic factors such as interest rates and the overall state of the
economy. He can also look at information about the bond issuer, such as potential changes in
credit ratings. For stocks and equity instruments, this method uses revenues, earnings, future
growth, return on equity, profit margins and other data to determine a company's underlying
value and potential for future growth. In terms of stocks, fundamental analysis focuses on the
financial statements of the company being evaluated. One of the most famous and successful
fundamental analysts is the so-called "Oracle of Omaha", Warren Buffett, who is well known
for successfully employing fundamental analysis to pick securities. His abilities have turned
him into a billionaire
My project deals with IT sector, which is one of the best performing sector among few top
sectors. higher Officials are trying to invest in IT sector, because IT sector is giving more returns
to investors. I am delight that my deals with IT sector so that I can gain much finance knowledge
by analysing their performances:
• maintaining index movement.
• financial ratio analysis.
• Fund allocation among top performed companies.
• Analysing their P&L, Balance sheets, and so on.

3.1 OVERVIEW OF IT SECTOR:

• Information technology in India is an industry consisting of two major components: IT
services and business process outsourcing(BPO). The sector has increased its
contribution to India’s GDP from 1.2% in 1998 to 7.5% in 2012. According to
NASSCOM, the sector aggregated revenues US$160 billion in 2017, with export
revenue standing at US$99 billion and domestic revenue at US$48 billion, growing by
over 13%. USA accounts for more than 60% of Indian IT exports.
• The Indian IT market currently focuses on providing low-cost solutions in the services
business of global IT, the presence of Indian companies in the product development
business of global IT is very meagre, however, this number is slowly on the rise. The
other prominent trend is that IT jobs, once confined to Bangalore, are slowly on the
rise. The other prominent trend is that IT jobs, once confined to Bangalore, are slowly
starting to experience a geographical diffusion into other cities like Chennai,
Hyderabad.

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PRFORMANCE OF IT SECTOR IN INDIA:
The global sourcing market in India continues to grow at a higher pace compared to the IT-
BPM industry. The global IT & ITeS market (excluding hardware) reached US$ 1.2 trillion in
2016-17, while the global sourcing market increased by 1.7 times to reach US$ 173-178 billion.
India remained the world’s top sourcing destination in 2016-17 with a share of 55 per cent.
Indian IT & ITeS companies have set up over 1,000 global delivery centres in over 200 cities
around the world.
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their
offerings and showcasing leading ideas in blockchain, artificial intelligence to clients using
innovation hubs, research and development centres, in order to create differentiated offerings.

3.2 General steps to fundamental analysis

Economic Forecast:
First and foremost, in a top-down approach would be an overall evaluation of the general
economy. The economy is like the tide and the various industry groups and individual
companies are like boats. When the economy expands, most industry groups and companies
benefit and grow. When the economy declines, most sectors and companies usually suffer.
Many economists link economic expansion and contraction to the level of interest rates. Interest
rates are seen as a leading indicator for the stock market as well.

Group Selection:
If the prognosis is for an expanding economy, then certain groups are likely to benefit more
than others. An investor can narrow the field to those groups that are best suited to benefit from
the current or future economic environment. If most companies are expected to benefit from an
expansion, then risk in equities would be relatively low and an aggressive growth-oriented
strategy might be advisable. A growth strategy might involve the purchase of technology,
biotech, semiconductor and cyclical stocks. If the economy is forecast to contract, an investor
may opt for a more conservative strategy and seek out stable income-oriented companies. A
defensive strategy might involve the purchase of consumer staples, utilities, and energy-related
stocks.

Narrow Within the Group:

Once the industry group is chosen, an investor would need to narrow the list of companies
before proceeding to a more detailed analysis. Investors are usually interested in finding the
leaders and the innovators within a group. The first task is to identify the current business and
competitive environment within a group as well as the future trends. How do the companies
rank according to market share, product position, and competitive advantage? Who is the
current leader and how will changes within the sector affect the current balance of power? What
are the barriers to entry Success depends on an edge, be it marketing, technology, market share
or innovation.

22
Company Analysis:
With a shortlist of companies, an investor might analyze the resources and capabilities within
each company to identify those companies that are capable of creating and maintaining a
competitive advantage. The analysis could focus on selecting companies with a sensible
business plan, solid management, and sound financials.
• Financial Ratio analysis
• Analysis of P&L, Balance Sheets of the selected companies

3.3 STEPS FOR DOING SECTORAL FUNDAMENTAL ANALYSIS: -

1. Select a sector for doing the analysis (for e.g. IT, Automobile, and Telecom etc.).
2. As the investment in mutual funds is long term, therefore take large cap (>5000cr. Mkt value)
stocks from that sector and some mid cap (>500cr. Mkt value) stocks also if there’s less stocks.
3. Check the last closing share price of every stock in the list and note it down.
4. Get the P/E value of every stock. It can be calculated or can be seen in the company details.
[P/E = Price / EPS (earnings per share)]
5. Calculate Industrial P/E by taking the average of the P/E’s of the stocks in the list.
6. Calculate EPS by multiplying P/E by Price of the stock.
7. By comparing the P/E value of the stock by the Industrial P/E we can see if the stock is
overvalued or undervalued.
8. If the value is above Industrial P/E then it’s overvalued and If below then Undervalued.
9. Overvalued stock shows that its value will decrease in future and undervalued shows that its
price will increase. So it’s obvious to buy the U.V. stock and sell O.V. stock.
10. We can calculate the future price i.e. LTPT (long term price target) by multiplying the
industrial P/E by EPS of that particular stock.

23
Finding the value pick stocks:

1. Next step is to take all the undervalued stocks and analyzing their revenue and
profit. The motive is to see weather both of them are increasing or decreasing.
2. Also we’ll see the topline factors on the company according to the sector in which
it’s lying.
3. If both revenue and profit is increasing then we will definitely take that stock. If
both have decreased then it will be rejected.
4. If one is increasing and the other is decreasing then it will be considered by seeing
topline factors.
5. We will reject some stocks after this analysis and the left one will be value pick stocks.

Finding the growth pick stocks:

1. We will take all the Overvalued stocks and calculate their PEG value.

[PEG = P/E / EPS growth]

2. The EPS growth is the percentage growth in the EPS of the company compared to
last financial year.
3. The value that we will put in the EPS growth should be the percentage value. For e.g.
If the EPS has increased by 20% then we will right the value 20, not 0.2.
4. If the EPS has decreased then the stock is removed. And we will take the stocks
whose PEG value is 1 or below that. 1.1 can be considered but not above that,
5. We will be having the list of growth pick stocks after this analysis.

24
RANKING:
Now when we have value pick and growth pick stocks list, we’ll see how much
investment should be done in which stock and for that we have to rank them. The highest
ranked will get the maximum allocation of the fund and the lowest ranked will have
minimum. The ranking is done by comparing the important financial ratios of the sector
in which the companies are lying. And we also see the factors of the companies. Ranking
is given to all the value pick stocks separately and the growth pick stocks separately.
The highest ranked stock will get the highest investment in value pick stocks and growth
pick stocks. As a mutual fund manager we will allocate the fund according to the ranking
of the stocks.

After the allocation of the funds the daily NAV (net asset value) is calculated of
the portfolio according to the change in the price of the stocks.

NAV= AUM / NUMBER OF SHARES

AUM = asset under management.

3.4 procedure for creating index of IT Sector companies

LARGE CAPITALIZATION
• Large cap (sometimes "big cap") refers to a company with a
market capitalization value of more than 5000 cr
• Large cap is a shortened version of the term "large market capitalization.
• " Market capitalization” is calculated by multiplying the number of a company's shares
outstanding by its stock price per share.
• A company’s stock is generally classified as large cap, mid cap or small cap.

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3.5 LIST OF IT LARGE CAP COMPANIES:
A. Infosys
Total assets 1,225 crores USD
Stock proce RS 1,180.25
CEO Salil parekh

B. Wipro Technologies
Total assets 1,223 crore USD
Stock price(NSE) RS 271.85
Founders Azim premji, MH Hasham
Premji
C. Infibeam
Total revenue 300crore
Stock price(NSE) 160.50
Founder Vishal Mahata

D. Tata Consultancy Services

Total assets 1666 crores USD
Stock price(INFY) RS 3473.75
Foundrs F C Kohli and J R D Tata

E. Oracle Financial Services Software Limited

Total assets 166.27 crores
Stock price(OFSS) RS 4043.45
CEO Chaitanya M. kamat

F. Tata Elxsi Limited

Total assets RS 1,249.41 crores
Stock price(TATAELXSI) RS 1002
CEO & MD Madhukar DEV

26
 G. Tech Mahindra Limited
Total revenue US$4.35 billion
Stock price(TECHM) RS 584.35
CEO JP Gunani

H. KPIT Technologies limited

Total revenue US$ 494 million
Stock price(KPIT) RS 209.10
founders Ravi Nadar and Kishor pandit

I. HCL Technologies Limited

Total revenue US$ 7.4 billion
Stock price(HCLTECH) 937.10
CEO Roshini Nadar Malhotra

J. Mindtree Limited
Total revenue US$ 846.8 Million
Stock price(MINDTREE) RS 713.27
CEO Rostow Ravanan

3.6 Record of Index Movement:

Index is a statistical indicator that measures changes in the economy in general or in particular
areas. In case of financial markets, an index is a portfolio of securities that represent a particular
market or a portion of a market. Each index has its own calculation methodology and usually
is expressed in terms of a change from a base value. And here in my project I recorded every
day’s closing price of the companies to maintain the index correct. It gives the way us to which
stock to buy, which stock to sell. It all happens based on the analysis of past data and predicting
the future.

Significance of Index
• A stock index is an indicator of the performance of overall market or a particular
• Sector.
• It serves as a benchmark for portfolio performance ‐ Managed portfolios,
belonging either to individuals or mutual funds; use the stock index as a measure fore
valuation of their performance.
• It gives the idea about fluctuations of the individual stocks.

27
 DAYS CLOSING PRICES:

• This is the first step involved in maintaining the index movement.

• This table is used to record everyday closing prices of the individual companies.
• As I started recording closing prices of individual companies from February 16th, and
recorded till the date of internship ends.
• It is very important step to find out Market capitalization.

Market capitalization weighted index :

In this method of calculation, each is given weight according to its market capitalization. So
higher the market capitalization of a constituent, higher is its weight in the index. Market
capitalization value of a company, calculated by multiplying the total number of shares
outstanding to its current market price.

• To calculate the market cap of individual company, the daily price is multiplied with
the no. of shares.
• Sectoral market cap is the sum of market caps of all the listed companies of that sector.

28
 DAYS WEIGHT

• Days weight is the proportion of individual company stock in the total trading done in
the particular sector.
• It is calculated by dividing market cap of individual stock of company by sectoral
market cap.

PRICE PERCENTAGE CHANGE:

• It represents the daily price movements of in the stocks.

• Calculated by using the formula Todays price-previous days price /previous days
price*100.

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 INDEX VALUE

• The base index price is assumed as 1000.

• Daily index price is calculated as the proportion of price percentage in days weight.
• Index movement is the change in the index value due to fluctuations in the prices of
individual stocks/companies.
• The graph of the index movement shows the daily fluctuations occurring in that sector.
• Traditionally these indices are used as measure to understand the overall performance
of the sector.

GRAPHICAL REPRESENTATION OF SECTOR PERFORMANCE

• X- axis includes Date, Y- axis includes value of index.

• IT sector has phenomenal growth since many days, the above graph shows that
development of the sector.
• Consistently the graph is raising , which represents that it has been good to invest in
this sector.

30
 Finding the value pick stocks:

1. Next step is to take all the undervalued stocks and analyzing their revenue and
profit. The motive is to see weather both of them are increasing or decreasing.
2. Also we’ll see the topline factors on the company according to the sector in which
it’s lying.
3. If both revenue and profit is increasing then we will definitely take that stock. If
both have decreased then it will be rejected.
4. If one is increasing and the other is decreasing then it will be considered by seeing
topline factors.
5. We will reject some stocks after this analysis and the left one will be value pick stocks.

The following are the steps

• This is involved to find out undervalued and overvalued stocks among the top ten
companies.
• EPS is calculated by dividing the price by sum of sector P/E.
• LTPT is calculated by multiplying the EPS with the sum of sector P/E.

31
 Finding the growth pick stocks:

1. We will take all the Overvalued stocks and calculate their PEG value.

[PEG = P/E / EPS growth]

6. The EPS growth is the percentage growth in the EPS of the company compared to
last financial year.
7. The value that we will put in the EPS growth should be the percentage value. For e.g.
If the EPS has increased by 20% then we will right the value 20, not 0.2.
8. If the EPS has decreased then the stock is removed. And we will take the stocks
whose PEG value is 1 or below that. 1.1 can be considered but not above that,
9. We will be having the list of growth pick stocks after this analysis.

Overvalued stocks valuations

Undervalued stocks valuation

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 RANKING ON THE BASIS OF THEIR PERFORMANCE:
Now when we have value pick and growth pick stocks list, we’ll see how much investment
should be done in which stock and for that we have to rank them. The highest ranked will get
the maximum allocation of the fund and the lowest ranked will have minimum. The ranking is
done by comparing the important financial ratios of the sector in which the companies are lying.
And we also see the factors of the companies. Ranking is given to all the value pick stocks
separately and the growth pick stocks separately. The highest ranked stock will get the highest
investment in value pick stocks and growth pick stocks. As a mutual fund manager we will
allocate the fund according to the ranking of the stocks.

Ratio’s used for analysis:

Current ratio:

The current ratio is a liquidity ratio that measures a company's ability to pay
short-term and long-term obligations. To gauge this ability, the current ratio considers
the current total assets of a company (both liquid and illiquid) relative to that company’s
current total liabilities.
Current Ratio = Current Assets/Current Liabilities

Total debt to total equity ratio:

The debt to equity ratio is a financial, liquidity ratio that compares a company’s
total debt to total equity. The debt to equity ratio shows the percentage of company financing
that comes from creditors and investors. A higher debt to equity ratio indicates that more
creditor financing (bank loans) is used than investor financing (shareholders).
Debt to equity ratio= total liabilities/equity

Gross profit ratio

It is a profitability ratio that shows the relationship between gross profit and total net
sales revenue. It is a popular tool to evaluate the operational performance of the business. The
ratio is computed by dividing the gross profit figure by net sales.
Gross profit ratio= sales-cogs(o/s+purchases-c/s)/sales

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Price to earning ratio
The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its
current share price relative to its per-share earnings. The price-earnings ratio is also sometimes
known as the price multiple or the earnings multiple.
P/E ratio= Market Value per Share / Earnings per Share

FUND ALLOCATION AMONG THE SELECTED COMPANIE:

A mutual fund is an investment vehicle made up of a pool of money collected from many
investors for the purpose of investing in securities such as stocks, bonds, money market
instruments and other assets. Mutual funds are operated by professional fund managers, who
allocate the fund's investments and attempt to produce capital gains and/or income for the fund's
investors. A mutual fund's portfolio is structured and maintained to match the investment
objectives stated in its prospectus. Mutual funds give small or individual investors access to
professionally managed portfolios of equities, bonds and other securities. Each shareholder,
therefore, participates proportionally in the gains or losses of the fund. Mutual funds invest in a
wide amount of securities, and performance is usually tracked as the change in the total market cap
of the fund, derived by aggregating performance of the underlying investments. Mutual fund units,
or shares, can typically be purchased or redeemed as needed at the fund's current net asset value
(NAV) per share, which is sometimes expressed as NAVPS. A fund's NAV is derived by
dividing the total value (AUM) of the securities in the portfolio by the total amount of shares
outstanding.

After the allocation of the funds the daily NAV (net asset value) is calculated of the
portfolio according to the change in the price of the stocks.

NAV= AUM / NUMBER OF SHARES

AUM = asset under management.

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Fund Allocation

• The total Mutual fund is assumed as 100 crores.

• The fund is allocated among the top four companies.
• NAV is arrived according to the fund allocation.

• The graph shows that fund allocation manager gained maximum profits.
• In between time period the fund beats the bench mark.

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 4. TECHNICAL ANALYSIS:
Technical analysis is the examination of past price movements to forecast future price
movements. Technical analysts are sometimes referred to as chartists because they rely
almost exclusively on charts for their analysis.

36
STOCK FILTERING FOR INTRADAY TRADING:-

STEPS:-

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FOR BEARISH SHARES

STEPS:-

1. LAST CLOSE LESS THAN SMA

2. LAST CLOSE GREATER THAN BBAND LOWER

STEPS NO. 3. TO 11. ARE SAME AS FOR BULLISH.

3.
% CHANGE 1 WEEK LESS THAN OR EQUAL TO 2.34

4. % CHANGE 1 MONTH LESS THAN OR EQUAL TO 8.97

SEARCH
Click on
% change in one month

This process gives the list of Bearish and Bullish stocks. We take top 5 stocks of both for
analysis and trading. This type of procedures used by professional investors, to make maximum
returns on their investments.

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 4.1 Technical indicators:
BOLLINGER BAND: Bollinger bands are one of the most popular technical indicators for
traders in any financial market, whether investors are trading stocks, bonds or foreign
exchange (FX). Many traders use Bollinger Bands to determine overbought and oversold
levels, selling when a price touches the upper Bollinger Band and buying when it hits the
lower Bollinger Band. In range-bound markets, this technique works well, as prices travel
between the two bands like balls bouncing off the walls of a racquetball court. However,
Bollinger Bands don't always give accurate buy and sell signals.

STEPS:- Steps vary with different types of trading platforms, we will follow the steps in
TRADETIGER :

1. Double click on the share on which you want to invest.

2. A window will open showing the graphical representation of the stock and its values.
3. Go to the corner and click the small symbol square, a small window will pop up.
4. Select Bollinger band in it and give the time period according to your investment
plan. For example- 1 week or 1 month
5. By clicking ok you will have two graphical lines above and below the stock price line.
6. The above line shows the highest limit of the share price to which it went for
the particular time period. We sell the stock when the candle stick goes above
it.
7. Shift + DJ shows the candle sticks of the share price.
8. The below line shows the lowest limit of the share price in the particular time period
that you have given.

As John Bollinger was first to acknowledge: "tags of the bands are just that – tags, not signals.
A tag of the upper Bollinger Band is not in and of itself a sell signal. A tag of the lower Bollinger
Band is not in and of itself a buy signal."

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Moving Average:
A Moving Average is an indicator that shows the average value of a security's
price over a period of time. When calculating a moving average, a mathematical analysis of
the security's average value over a predetermined time period is made. As the securities price
changes, its average price moves up or down.
There are several popular ways to calculate a moving average. Meta Stock for
Java calculates a "simple" moving average meaning that equal weight is given to each
price over the calculation period.

Interpretation:

The most popular method of interpreting a moving average is to compare the

relationship between moving average of the security's price with the security's price itself.
A buy signal is generated when the security's price rises above its moving average and a sell
signal is generated when the security's price falls below its moving average. This type of
moving average trading system is not intended to get you in at the exact bottom nor out
at the exact top. Rather, it is designed to keep you in line with the security's price trend
by buying shortly after the security's price bottoms and selling shortly after it tops. The
critical element in a moving average is the number of time periods used in calculating the
average. When using hindsight, you can always find a moving average that would have
been profitable. The key is to find a moving average that will be consistently profitable.
The most popular moving average is the 39-week (or 200-day) moving average. This
moving average has an excellent track record in timing the major (long-term) market cycles.

40
Advantages:

The advantage of moving average system of this type (i.e., buying and selling
when prices break through their moving average) is that you will always be on the "right"
side of the market: prices cannot rise very much without the price rising above its average
price. The disadvantage is that you will always buy and sell some late. If the trend does
not last for a significant period of time, typically twice the length of the moving average,
you will lose your money.

Support and Resistance:

Support and resistance represent key junctures where the forces of supply and
demand meet. In the financial markets, prices are driven by excessive supply (down) and
demand (up). Supply is synonymous with bearish, bears and selling. Demand is
synonymous with bullish, bulls and buying. These terms are used interchangeably throughout
this and other articles. As demand increases, prices advance and as supply increases, prices
decline. When supply and demand are equal, prices move sideways as bulls and bears slug
it out for control.

Support:

Support is the price level at which demand is thought to be strong enough to prevent the
price from declining further. The logic dictates that as the price declines towards support
and gets cheaper, buyers become more inclined to buy and sellers become less inclined to
sell. By the time the price reaches the support level, it is believed that demand will overcome
supply and prevent the price from falling below support.

Support does not always hold and a break below support signals that the bears have won
out over the bulls. A decline below support indicates a new willingness to sell and/or a lack
of incentive to buy. Support breaks and new lows signal that sellers have reduced their
expectations and are willing sell at even lower prices. In addition, buyers could not be

41
coerced into buying until prices declined below support or below the previous low. Once
support is broken, another support level will have to be established at a lower level.

Where Is Support Established?

Support levels are usually below the current price, but it is not uncommon for a
security to trade at or near support. Technical analysis is not an exact science and it is
sometimes difficult to set exact support levels. In addition, price movements can be
volatile and dip below support briefly. Sometimes it does not seem logical to consider a
support level broken if the price closes 1/8 below the established support level. For this
reason, some traders and investors establish support zones.

Resistance:

Resistance is the price level at which selling is thought to be strong enough to prevent the
price from rising further. The logic dictates that as the price advances towards resistance, sellers
become more inclined to sell and buyers become less inclined to buy. By the time the price
reaches the resistance level, it is believed that supply will overcome demand and prevent the
price from rising above resistance.

Resistance does not always hold and a break above resistance signals that the
bulls have won out over the bears. A break above resistance shows a new willingness to
buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers
have increased their expectations and are willing to buy at even higher prices. In addition,
sellers could not be coerced into selling until prices rose above resistance or above the
previous high. Once resistance is broken, another resistance level will have to be established
at a higher level.

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Where is the Resistence Zone established?

Resistance levels are usually above the current price, but it is not uncommon for a
security to trade at or near resistance. In addition, price movements can be volatile and
rise above resistance briefly. Sometimes it does not seem logical to consider a resistance
level broken if the price closes 1/8 above the established resistance level. For this reason,
some traders and investors establish resistance zones. So, Here, Identification of key support
and resistance levels is an essential ingredient to successful technical analysis. Even
though it is sometimes difficult to establish exact support and resistance levels, being aware
of their existence and location can greatly enhance analysis and forecasting abilities. If a
security is approaching an important support level, it can serve as an alert to be extra
vigilant in looking for signs of increased buying pressure and a potential reversal. If a
security is approaching a resistance level, it can act as an alert to look for signs of increased
selling pressure and potential reversal. If a support or resistance level is broken, it signals
that the relationship between supply and demand has changed. A resistance breakout
signals that demand (bulls) has gained the upper hand and a support break signals that
supply (bears) has won the battle.

Price Oscillator:
The Price Oscillator displays the difference between two moving averages of a security's
price. The difference between the moving averages can be expressed in either points or
percentages. The Price Oscillator is almost identical to the MACD, except that the Price
Oscillator can use any two user-specified moving averages. (The MACD always uses 12 and
26-day moving averages, and always expresses the difference in points.)

43
Interpretation:
Moving average analysis typically generates buy signals when a short-term moving average
(or the security's price rises above a longer-term moving average. Conversely, sell signals
are generated when a shorter-term moving average (or the security's price) falls below a
longer-term moving average. The Price Oscillator illustrates the cyclical and often profitable
signals generated by these one or two moving average systems.

Price Rate-Of-Change:
The Price Rate-of-Change ("ROC") indicator displays the difference between the current
price and the price x-time periods ago. The difference can be displayed in either points or as
a percentage. The Momentum indicator displays the same information, but expresses it as a
ratio.

Interpretation:

It is a well-recognized phenomenon that security prices surge ahead and retract in a cyclical
wave-like motion. This cyclical action is the result of the changing expectations as bulls
and bears struggle to control prices. The ROC displays the wave-like motion in an oscillator
format by measuring the amount that prices have changed over a given time period. As prices
increase, the ROC rises; as prices fall, the ROC falls. The greater the change in prices,
the greater the change in the ROC. The time period used to calculate the ROC may range
from 1-day (which results in a volatile chart showing the daily price change) to 200-days
(or longer). The most popular time periods are the 12- and 25-day ROC for short to
intermediate-term trading. These time periods were popularized by Gerald Appel and Fred
Hitschler in their book, Stock Market Trading Systems. The 12-day ROC is an excellent short-
to intermediate-term overbought/oversold indicator. The higher the ROC, the more overbought
the security; the lower the ROC, the more likely a rally. However, as with all
overbought/oversold indicators, it is prudent to wait for the market to begin to correct (i.e.,
turn up or down) before placing your trade. A market that appears overbought may remain
overbought for some time. In fact, extremely overbought/oversold readings usually imply
a continuation of the current trend. The 12-day ROC tends to be very cyclical, oscillating

44
back and forth in a fairly regular cycle. Often, price changes can be anticipated by studying
the previous cycles of the ROC and relating the previous cycles to the current market.

Relative Strength Index (RSI):

The Relative Strength Index ("RSI") is a popular oscillator. It was first introduced
by Welles Wilder in an article in Commodities (now known as Futures) Magazine in
June, 1978.
The name "Relative Strength Index" is slightly misleading as the Relative Strength Index
does not compare the relative strength of two securities, but rather the internal strength
of a single security. A more appropriate name might be "Internal Strength Index."

Interpretation:

When Wilder introduced the Relative Strength Index, he recommended using a

14-day Relative Strength Index. Since then, the 9-day and 25-day Relative Strength
Indices have also gained popularity. The fewer days used to calculate the Relative
Strength Index, the more volatile the indicator. The Relative Strength Index is a price-
following oscillator that ranges between 0 and 100. A popular method of analyzing the
Relative Strength Index is to look for a divergence in which the security is making a new
high, but the Relative Strength Index is failing to surpass its previous high. This divergence
is an indication of an impending reversal. When the Relative Strength Index then turns
down and falls below its most recent trough, it is said to have completed a "failure
swing." The failure swing is considered a confirmation of the impending reversal.

45
 4.2 Technical analysis charts:
Line chart:
line charts are the most basic type of chart because it represents only the closing prices
over a set period. The line is formed by connecting the closing prices for each period over the
timeframe. While this type of chart doesn’t provide much insight into intraday price
movements, many investors consider the closing price to be more important than the open, high,
or low price within a given period. These charts also make it easier to spot trends since there’s
less ‘noise’ happening compared to other chart types.

BAR chart:
Bar charts are expand upon the line chart by adding the open, high, low, and close – or the
daily price range, in other words – to the mix. The chart is made up of a series of vertical lines
that represent the price range for a given period with a horizontal dash on each side that
represents the open and closing prices. The opening price is the horizontal dash on the left side
of the horizontal line and the closing price is located on the right side of the line. If the opening
price is lower than the closing price, the line is often shaded black to represent a rising period.
The opposite is true for a falling period, which is represented by a red shade.

46
Candle stick charts:
originated in Japan over 300 years ago, but have since become extremely popular among
traders and investors. Like a bar chart, candlestick charts have a thin vertical line showing the
price range for a given period that’s shaded different colors based on whether the stock ended
higher or lower. The difference is a wider bar or rectangle that represents the difference between
the opening and closing prices.

Falling periods will typically have a red or black candlestick body, while rising periods will
have a white or clear candlestick body. Days where the open and closing prices are the same
will not have any wide body or rectangle at all.

4.3 Charts of TCS:

line chart of TCS:

47
Bar chart of TCS

Candle stick chart of TCS

Interpretation:
• As above charts shows that there is no constant movement of every day price.
• The price of TCS is raising as charts showing.
• It is better to sell the stock to profit.

48
 5. Introduction to Derivatives:
Derivatives is a contract or a product whose value is derived from value of some other assets
known as underlying assets.

These includes:
• Metal such as gold, silver, aluminium, copper, zinc, nickel, tin, lead etc.
• Energy resources such as oil (cruid oil, products, cracks, coal, electricity, natural gas
etc.
• Agriculture commodities such as wheat, sugar, coffee, cotton, pulses etc, and
• Financial assets such as shares, bonds and foreign exchange.

5.1 Products in Derivatives Market

•• Forwards
It is a contractual agreement between two parties to buy/sell an underlying
asset at a certain future date for a particular price that is pre‐decided on the date of
contract. Both the contracting parties are committed and are obliged to honour the
transaction irrespective of price of the underlying asset at the time of delivery. Since
forwards are negotiated between two parties, the terms and conditions of contracts
are customized. These are Over‐the‐counter (OTC) contracts.

• Futures
A futures contract is similar to a forward, except that the deal is made through
an organized and regulated exchange rather than being negotiated directly between
two parties. Indeed, we may say futures are exchange traded forward contracts.

• Options
An Option is a contract that gives the right, but not an obligation, to buy or sell
the underlying on or before a stated date and at a stated price. While buyer of option
pays the premium and buys the right, writer/seller of option receives the premium
with obligation to sell/ buy the underlying asset, if the buyer exercises his right.

•• Swaps
A swap is an agreement made between two parties to exchange cash flows in
the future according to a prearranged formula. Swaps are, broadly speaking, series
of forward contracts. Swaps help market participants manage risk associated with
volatile interest rates, currency exchange rates and commodity prices.

49
 5.2 Market Participants
There are broadly three types of participants in the derivatives market ‐ hedgers, traders (also
called speculators) and arbitrageurs. An individual may play different roles in different market
circumstances.

Hedgers
They face risk associated with the prices of underlying assets and use derivatives to
reduce their risk. Corporations, investing institutions and banks all use derivative
products to hedge or reduce their exposures to market variables such as interest rates,
share values, bond prices, currency exchange rates and commodity prices.

Speculators/Traders
They try to predict the future movements in prices of underlying assets and based
on the view, take positions in derivative contracts. Derivatives are preferred over
underlying asset for trading purpose, as they offer leverage, are less expensive (cost of
transaction is generally lower than that of the underlying) and are faster to execute in
size (high volumes market).

Arbitrageurs

Arbitrage is a deal that produces profit by exploiting a price difference in a product

in two different markets. Arbitrage originates when a trader purchases an asset cheaply in
one location and simultaneously arranges to sell it at a higher price in another location. Such
opportunities are unlikely to persist for very long, since arbitrageurs would rush in to these
transactions, thus closing the price gap at different locations.
Significance of the derivative market:
Like other segments of Financial Market, Derivatives Market serves following specific
functions:

• Derivatives market helps in improving price discovery based on actual valuations

and expectations.

• Derivatives market helps in transfer of various risks from those who are exposed to
risk but have low risk appetite to participants with high risk appetite. For example
hedgers want to give away the risk where as traders are willing to take risk.

• Derivatives market helps shift of speculative trades from unorganized market to

organized market. Risk management mechanism and surveillance of activities of
various participants in organized space provide stability to the financial system.

50
5.3 Option trading stratigies:
Spreads involve combining options on the same underlying and of same type (call/ put) but w
ith different strikes and maturities. These are limited profit and limited loss positions.They ar
e primarily categorized into three sections as:
• Vertical Spreads
• Horizontal Spreads
• Diagonal Spreads

Vertical Spreads:
Vertical spreads are created by using by using options having same expiry but
different strike prices. Further , these can be created either using calls as combination or
puts as :
Bullish Vertical Spread
• Using Calls
• Using Puts
Bearish Vertical Spread
• Using Calls
• Using Puts

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 6. Conclusion:
• Aditya Birla Capital is a investing and financial advisory company therefore my data
may be helpful to them while investing into IT sector.
• They may take help of my report while suggesting another companies investing in the
IT sector.
• As I concerned with financial ratios more, it may helps them to analyse in a transparent
way.
• According to my report IT sector is performing in a positive manner.
• For long term investment IT sector is suitable.
• Technical analysis showed transparent results. It reduces the risk while investing.

7. Findings:
• Information technology sector has phenomenal development since last year according
to the analysis.
• Since three months investors are gaining maximum returns by investing in the IT sector.
• Derivatives are deals with high cost, but they also generate large revenues.
• Assumed mutual fund is allocated among top four well performing companies.as a result
is NAV is calculated on a regular basis.
• Technical analysis plays a vital while investing in Equities, it predicts the future.

52
 8. Learning from SIP

• I feel my duties were diverse, and ever-changing. Internship plays a vital role in
inhabiting the knowledge to the individual’s mind set.
• Gained insight into the working environment and understood the culture of the Aditya
Birla Capital.
• Developed time management skills and the ability to be responsible for more than one
task at a time.
• Improvement in the area of report writing.
• Learned basic formulas of the excel like Average, sum, and how to maintain index in
excel etc.
• Developed skills required to interact with customer and gained confidence while
interacting.
• Learned key financial ratios.
• Skills such as multitasking, communicating, learning to deal with diversity, and
deadline.

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 9. References
• https://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.
htm
• https://www.moneycontrol.com/
• http://www.icharts.in/screener-eod.html
• http://stockcharts.com/school/doku.php?id=chart_school:overview:technical_analysis.
• https://en.wikipedia.org/wiki/Information_technology_in_India.
• http://stockcharts.com/school/doku.php?id=chart_school:overview:technical_analysis
• http://www.moneycontrol.com/india/stockpricequote/computerssoftware/tataconsultancyservi
ces/charts/technical-chart-analysis/TCS

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