A

SUMMER TRAINING REPORT

ON

“TECHNICAL ANALYSIS OF COMMODITY MARKET TAKING GOLD

AND CRUDE OIL”

AT

JAINAM SHARE AND SECURITIES PVT LTD, SURAT

SUBMITTED BY

SOYEB R. JINDANI

(MBA SEM III, 2008-2010 BATCH)

UNDER SUPERVISION OF

VARUN DHINGRA

(LECTURER)

JUNE-JULY 2009

BHAGAWAN MAHAVIR COLLEGE OF MANAGEMENT

NEW CITY LIGHT ROAD, SR NO 149,

AHEAD ASHIRWAD VILLA, B/H HEENA BANGLOWS,

BHARTHANA, VESU, SURAT-395017

1
 DECLARATION

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

MANAGEMENT, Which is affiliated to Veer Narmad South Gujarat

University, Surat hereby declare that the project entitled “TECHNICAL

ANALYSIS OF COMMODITY MARKET TAKING GOLD AND CRUDE OIL”

at Jainam Share and Security pvt ltd., is the original work done by me and the

information provided in the study is authentic to the best of my knowledge. This

study report has not been submitted to any other institution or university for the

award or any other degree and will not be submitted in near future.

This report is based on my personal opinion hence cannot be referred to

legal purpose.

(Soyeb Jindani)

Date:

2
 ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success
of any venture. In the present world of competition and success, training is like a
bridge between theoretical and practical working; willingly I prepared this particular
Project. First of all I would like to thank the supreme power, the almighty god, who is
the one who has always guided me to work on the right path of my life. I would like to
thank Miss Shital Mehta for granting me permission to undertake the training in
their esteemed organization.

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

(Lecturer) & others faculty members of M.B.A. department, for the valuable
suggestion and making this project a real successful.

I also thanks to Mr. Biranj Patel (Sr. Executive of HR), Chetna Bhandari
(Marketing Manager) for their time-to-time guidance and support in completing
the project. I also thank the other staff of Jainam who devoted their valuable time by
helping me to complete my project.
Last but not least, my sincere thanks to my parents and friends who directly
or indirectly helped me to bring this project into the final shape.

Soyeb Jindani
DATE:

3
 Executive Summary

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

and dynamic environment.”

The microstructure of the stock market in which brokers work is highly

dynamic and volatile. Many stocks are available to be bought and sold, each
exhibiting its own patterns and characteristics that are highly unpredictable. With so
many options and considerations that need to be taken into account, it is an
extremely arduous task for a broker to investigate aspects of the stock market and
consistently provide effective advice to their clients.

The study is done at stock broking firm to understand nature and functions of
the firm. Especially when the prices are being high and low within few seconds so at
that time each core functions of firm affects the work environment of whole culture.
Commodities are being traded since long years. To understand the predications
about prices of commodities like Gold, Crude Oil, and other precious metals, the
researcher has done study on technical analysis.

For the purpose of the study, researcher has collected data of Gold M and
Crude Oil from January 2007 to July 2009.

After the data analysis it has been predicted that Gold M is still in bearish
condition and at this time the investor should not enter into trading he or she should
wait till it goes on bullish level. And about Crude Oil it has been analyzed that in near
future prices of Crude Oil will be high so it is time of bull and so investor can take a
advantage of it.

In short, technical analysis is a forward-looking, graphical assessment tool that

anticipates bi-directional value-levels of a price-series over a given time horizon.

4
 This research will able to understand empower traders and investors with a

basic knowledge of charting, trading-skills, and decision-making abilities.

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

is reliable, accurate, and consistent with one's specific trading preferences, and

tolerance for risk.

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

from such analysis.

5
 Index:
Chapte Particulars Page No.
r No.

1 Introduction to training

1.1 Introduction to training 8

1.2 Objective of Study 9

1.3 Benefit of Study 10

2 Introduction to industry 11-34

3 About company

3.1 Company profile 35-43

3.2 About department 44-73

4 Theoretical framework 74-107

5 Research methodology

5.1 Objective of the study 109

5.2 Problem identification 109

5.3 Assumption and benefits of study 110

5.4 Research design 111

5.5 Sampling 111

5.6 Research tool used 111

5.7 Data collection 111

5.8 Limitation of the study 112

6 Data analysis 113-127

7 Findings, conclusion and suggestion 128-131

Bibliography 132

Annexure 133-141

6
CHAPTER-1

7
 INTRODUCTIONTO
TRAINING

1.1 Introduction to Training.

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

8
1.2 Objective of Study:

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

 To gain the knowledge about stock market and it operation.

 To become familiarize with organization, which help in applying theoretical

concepts into practical routine

 To understand the working system of different department.

 To get an experience of working environment.

 To become part of professionalism.

 To understand technical terms and its applications in study.

 To understand of working of different departments and its connectivity with

whole organization.

 To gain the detailed knowledge of core functions like Marketing, Human

Resources, Finance, Research.

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

1.3 Benefit of Study:

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

 Got the knowledge about stock market and its operations.

9
 Learnt about different scrip.

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

 The working of sensex and nifty its rules and regulation.

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

 How the top management is handling whole organization structure.

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

 As researcher has done detailed study on technical analysis of commodity

market so researcher has gained knowledge about technical terms of it.

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

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

10
 CHAPTER-2

INTRODUCTIONOF
INDUSTRY

Introduction to the Industry:

Financial System:

The economy of each and every country in based on the sound financial system
which helps in production, capital and economic growth by encouraging savings

11
habits, mobilizing savings from house holds and other segments and allocating
savings into productive usage such as trade, manufacture, commerce etc.

Thus, financial system provides bridge for surplus of the savers to be utilized by
the deficit spending units.

The financial system includes three basic elements:

Financial
System

Financial
Financial
Markets
Instruments
Financial
Intermediaries

Financial Market:

Credit Money
Market Market

Forex Capital
Market market

Market Purpose Players Regulatory

Money market Short Term ( from Banks,FIs,FIIs, RBI

one day to one Corporates,MF,Govt.
year)

Capital market Long Term (above Corporates,Banks, SEBI

12
 one year) FIs,FIIs,
MF,Individuals

Forex market Short Term Long Banks, Corporates, RBI

Term Foreign authorized forex
currency funds dealers

Credit market Short Term Long Banks,FIs, RBI

Term Rupee funds Corporates

Financial Intermediaries

Development Financial Institutions

Commercial Banks
Non banking financial Institutions
Insurance Organisation

Financial Instruments

Equity Shares
Preference Shares
Bonds
Debentures etc…

Structure of Capital Market:

13
 Capital
market

Debt
Equity market
market
Primary
market
Derivatives
-public issues Secondary market Primary Secondary
segment segment
-private marketNSE,
-exchange
placement BSE, traded
OTCEI,
ISE,
Regional
Futures and
Stock
Domestic International options
market Exchange
Market
s

Index Stock

Primary Market:

14
 For corporate enterprises, expansion, modernization, reorganization, and
mergers require long-term funds to be raised through the issue of shares, debentures
and bonds, all of which find their way to the secondary market through the new issue
market. The term does not necessarily refer to newly issued stocks, although initial
public offerings are the most commonly known new issues. Essentially, the function
of the New Issue market lies in facilitating the transfer of investible funds to
corporate organization. Initial issue of shares by new enterprises may substantially
account for volume of activities in the new issue market and it has been so during the
eighties and earlier at various times.

Secondary Market:

The market where securities are traded after they are initially offered in the
primary market. Most trading is done in the secondary market. To explain further, it
is trading in previously issued financial instruments. An organized market for
securities examples are the New York Stock Exchange(NYSE), Bombay Stock
Exchange(BSE), National Stock Exchange(NSE),bond market, over the counter
markets, residential mortgage loans, governmental guaranteed loans etc.

Role and Functions of Stock Exchange:

1. Established for the purpose of assisting, regulating and controlling business of

buying, selling and dealing in securities.
2. Provides a market for the trading of securities to individuals and
organizations seeking to invest their saving or excess funds through the
purchase of securities.
3. Provides a physical location for buying and selling securities that have been
listed for trading on that exchange.
4. Establishes rules for fair trading practices and regulates the trading activities
of its members according to those rules.
5. The exchange itself does not buy or sell the securities, nor does it set prices for
them.
6. The exchange assures that no investor will have an undue advantage over
other market participants.
7. This means that orders are executed and transactions are settled in the fastest
possible way.
8. Investors make informed and intelligent decision about the particular stock
based on information.
9. Listed companies must disclose information in timely, complete and
accurate manner to the Exchange and the public on a regular basis.

15
History of Stock Market:
The stock market has a long history. According to French historian Fernand
Braudel, in 11th century Cairo, Islamic and Jewish traders had already established
every form of trade association.

They were knowledgeable about credit and payment methods. Braudel's

suggestions negate the opinion that the Italians contrived these methods later.

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

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

The Bankers of Venice started trading in government securities in the middle of

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

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

16
World History of Market:

History of stock market trading in the United States can be traced back to over
200 years ago. Historically, The colonial government decided to finance the war by
selling bonds, government notes promising to pay out at profit at a later date.
Around the same time private banks began to raise money by issuing stocks, or
shares of the company to raise their own money. This was a new market, and a new
form of investing money, and a great scheme for the rich to get richer. A little further
on the history timeline, more specifically in 1792, a meeting of twenty four large
merchants resulted into a creation of a market known as the New York Stock
Exchange(NYSE). At the meeting, the merchants agreed to meet daily on Wall Street
to daily trade stocks and bonds.

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

growth. By 1900, millions of dollars worth of stocks were traded on the street market.
In 1921, after twenty years of street trading, the stock market moved indoors.

History brought us the Industrial Revolution, which also played a role in

changing the face of the stock market. New form of investing began to emerge when
people started to realize that profits could be made by re-selling the stock to others
who saw value in a company. This was the beginning of the secondary market, known
also as the speculators market. This market was more volatile than before, because it
was now fueled by highly subjective speculation about the company’s future.

This was the pretext for appearance of such stock market giants as NYSE.
History books tell us that the reason the NYSE is so highly regarded among stock
markets was primarily because they only trade in the very large and well-established
companies. It acted as a more stable investment alternative, for people interested in
throwing their capital into the stock market arena. The smaller companies making up
the stock market formed into what eventually became the American Stock Exchange
(AMEX). Contrary to the 80-year old history, today the NYSE, AMEX, NASDAQ and
hundreds of other exchange markets make a significant contribution to the national
and global economy.

17
 The growth in the number of market participants led the government to decide
that more regulation of the stock market was needed to protect those investing in
stock. History was made in 1934, when following the Great Crash, Congress passed
the Securities and Exchange Act. This act formed the Securities and Exchange
Commission (SEC), which, through the rules set out by the act and succeeding
amendments, regulates American stock market trading with the help of the
exchanges. It also includes overseeing the requirements for a company to issue stock
shares to the public and ensures that the company offers relevant information to
potential investors.

Although historically, investing in stocks was a “hobby” for the rich, an average
person too soon came to realize the value of the investing in stocks vs. traditional
assets like land or a house.
Most stock markets around the world have undergone a process of steady evolution
and have changed in relation to the process known as ‘globalization’. With
information technology changing the way we do business all over the world it was but
natural for stock markets to also integrate their functions in an IT enabled electronic
environment. This has not just revolutionized the way companies raise money for
expansion or new ventures but also brought about a level of transparency and ease in
the functional areas of trade in shares that was never seen before.

The most famous stock markets of the world are:

 London Stock Exchange

 New York Exchange
 Tokyo Stock Exchange
 Hong Kong Stock Exchange
 Singapore Stock Exchange

18
 New York Stock Exchange

The New York Stock Exchange is a physical exchange, also referred to as a

listed exchange — only stocks listed with the exchange may be traded. Orders enter

by way of exchange members and flow down to a floor broker, who goes to the floor

trading post specialist for that stock to trade the order. The specialist's job is to

match buy and sell orders using open outcry. If a spread exists, no trade immediately

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

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

the details are reported on the "tape" and sent back to the brokerage firm, which then

notifies the investor who placed the order. Although there is a significant amount of

human contact in this process, computers play an important role, especially for so-

called "program trading".

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

computer network. The process is similar to the New York Stock Exchange. However,

buyers and sellers are electronically matched. One or more NASDAQ market makers

will always provide a bid and ask price at which they will always purchase or sell

'their' stock.

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

exchange. It was automated in the late 1980s. Prior to the 1980s, it consisted of an

open outcry exchange. Stockbrokers met on the trading floor or the Palais

Brongniart. In 1986, the CATS trading system was introduced, and the order

matching process was fully automated.

19
 From time to time, active trading (especially in large blocks of securities) have

moved away from the 'active' exchanges. Securities firms, led by UBS AG, Goldman

Sachs Group Inc. and Credit Suisse Group, already steer 12 percent of U.S. security

trades away from the exchanges to their internal systems. That share probably will

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

NASDAQ and pair buyers and sellers of securities themselves, according to data

compiled by Boston-based Aite Group LLC, a brokerage-industry consultant.

Now that computers have eliminated the need for trading floors like the Big

Board's, the balance of power in equity markets is shifting. By bringing more orders

in-house, where clients can move big blocks of stock anonymously, brokers pay the

exchanges less in fees and capture a bigger share of the $11 billion a year that

institutional investors pay in trading commissions.

20
 The London Stock Exchange

Participants in the stock market range from small individual stock investors to

large hedge fund traders, who can be based anywhere. Their orders usually end up

with a professional at a stock exchange, who executes the order.

Some exchanges are physical locations where transactions are carried out on a

trading floor, by a method known as open outcry. This type of auction is used in stock

exchanges and commodity exchanges where traders may enter "verbal" bids and

offers simultaneously. The other type of stock exchange is a virtual kind, composed of

a network of computers where trades are made electronically via traders.

Actual trades are based on an auction market model where a potential buyer

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

stock. (Buying or selling at market means you will accept any ask price or bid price

for the stock, respectively.) When the bid and ask prices match, a sale takes place on

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

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

between buyers and sellers, thus providing a marketplace (virtual or real). The

exchanges provide real-time trading information on the listed securities, facilitating

price discovery.

21
Broking industry in India:

The Indian retail brokerage industry consists of companies that primarily act as
agents for the buying and selling of securities (e.g. stocks, shares, and similar
financial instruments) on a commission or transaction fee basis. It has two main
interdependent segments: Primary market and the Secondary market.

Some of the main characteristics of the brokerage industry include growth in e-

broking, decline in brokerage fees, growing derivative market and growing derivative
market and many more.

There are several national as well as local players in stock trading services
which are providing various services to their customers like online trading, portfolio
management system, stock broking etc. They are helping the investors to take
decision about where to invest because there is lots of Investment Avenue available
with investors. Some of them are Motilal Oswal, India Infoline, Anandrathi, India
bulls etc

Lot of brokerage companies is moving towards consolidation with the smaller

ones becoming either franchisee for the larger brokers or closing operations. There is
an increasing demand for online trading due to consumer’s growing preference for
Internet as compared to approaching the brokers.

New forms of trading including T+2 settlement system, dematerialization etc

are strengthening the retail brokerage market and attracting foreign companies to
enter the Indian industry Various alternative forms of investment including fixed
deposits with banks and post offices etc act as substitutes to retail broking products
and services.

An agent that charges a fee or commission for executing buys and sells orders
submitted by an investor. The firm that acts as an agent for a customer, charge the
customer the commission for its service. Roles similar to that of a stockbroker
include investment advisor, financial advisor and probably many others. A
stockbroker may or may not be also an investment advisor.

A broker works for a brokerage firm (a sell-side institution). A trader works for
a buy-side institution (mutual fund, investment advisory firm, insurance company,

22
etc.) or for himself. Brokers don't care what they sell and at what prices, as long as
they get to sell a lot of it. Trades (professional ones anyway) work to make sure that
they are transacting at the best possible price at the lowest possible cost.

Indian Capital Market:

The Indian Capital Market is one of the oldest capital markets in Asia which
evolved around 200 years ago.The working of stock exchanges in India started in
1875. BSE is the oldest stock market in India. The history of Indian stock trading
starts with 318 persons taking membership in Native Share and Stock Brokers
Association, which we now know by the name Bombay Stock Exchange(BSE).

The National Stock Exchange of India Limited (NSE) is the largest stock
exchange established in 1992 by Industrial Development Bank of India, Industrial
Credi1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, in terms of daily turnover and number of trades,
for both equities and derivative trading. The NSE's key index is the S&P CNX Nifty,
known as the Nifty50, which is an index of fifty major stocks weighted by market
capitalization.BSE and NSE represent themselves as synonyms of Indian stock
market.

The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is
compiled based on the performance of the stocks of 30 financially sound benchmark
companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed
2000, 3000 and 4000 figures in 1992. The reason for such huge surge in the stock
market was the liberal financial policies announced by the then financial minister Dr.
Man Mohan Singh.

The up-beat mood of the market was suddenly lost with Harshad Mehta scam.
It came to public knowledge that Mr. Mehta, also known as the big-bull of Indian
stock market diverted huge funds from banks through fraudulent means. He played
with 270 million shares of about 90 companies. Millions of small-scale investors
became victims to the fraud as the Sensex fell flat shedding 570 points.

23
 To prevent such frauds, the Government formed The Securities and Exchange
Board of India, through an Act in 1992. SEBI is the statutory body that controls and
regulates the functioning of stock exchanges, brokers, sub-brokers, portfolio
manager’s investment advisors etc. SEBI oblige several rigid measures to protect the
interest of investors. Now with the inception of online trading and daily settlements
the chances for a fraud is nil, says top officials of SEBI.

Many foreign institutional investors (FII) are investing in Indian stock markets
on a very large scale. The liberal economic policies pursued by successive
Governments attracted foreign institutional investors to a large scale.Apart from
FIIs, the non-resident Indians also invest hugely in the stock market.Diminishing
returns from bank deposits and the facilities of online trading made them turn to
stock markets and with the bull-run many have made a good fortune from stock
markets.

The initial public offers by Tata Consultancy Services, Maruti Udyog Limited,
ONGC etc were big events in Indian stock market. Not only did they put a great show,
but also took the stock market to newer heights. TCS is a big weight in the stock
market from the day it was listed. Traditional heavy weights are Reliance, Tata,
Bharati etc. Now new entrants like Biocon are also play significant roles in the
market.

24
National Stock Exchange (NSE)

National Stock Exchange of India (NSE) is India's largest Stock Exchange &
World's third largest Stock Exchange in terms of transactions. Located in Mumbai,
NSE was promoted by leading Financial Institutions at the behest of the Government
of India, and was incorporated in November 1992 as a tax-paying company.

In April 1993, NSE was recognized as a Stock exchange under the Securities
Contracts (Regulation) Act-1956. NSE commenced operations in the Wholesale Debt
Market (WDM) segment in June 1994. Capital Market (Equities) segment of the NSE
commenced operations in November 1994, while operations in the Derivatives
segment commenced in June 2000.

NSE was set up with the objectives of

• Establishing nationwide trading facility for all types of securities

• Ensuring equal access to investors all over the country through an appropriate
telecommunication network
• Providing fair, efficient & transparent securities market using electronic
trading system
• Enabling shorter settlement cycles and book entry settlements
• Meeting International benchmarks and standards

NSE's markets

NSE provides a fully automated screen-based trading system with national

reach in the following major market segments:-

• Equity OR Capital Markets {NSE's market share is over 65%}

• Futures & Options OR Derivatives Market {NSE's market share over 99.5%}
• Wholesale Debt Market (WDM)
• Mutual Funds (MF)
• Initial Public Offerings (IPO)

25
Bombay Stock Exchange (BSE)

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich
heritage, now spanning three centuries in its 133 years of existence. What is now
popularly known as BSE was established as "The Native Share & Stock Brokers'
Association" in 1875.

BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities Contracts
(Regulation) Act 1956. Over the past 133 years, BSE has facilitated the growth of the
Indian corporate sector by providing it with an efficient access to resources. There is
perhaps no major corporate in India which has not sourced BSE's services in raising
resources from the capital market.

Today, BSE is the world's number 1 exchange in terms of the number of listed
companies and the world's 5th in transaction numbers. The market capitalization as
on December 31, 2007 stood at USD 1.79 trillion. An investor can choose from more
than 4,700 listed companies, which for easy reference, are classified into A, B, S, T
and Z groups. The number of companies listed on the BSE at the end of December
1994 was 4,702.

26
Rapid Growth:

The last decade has been exceptionally good for the stock markets in India. In
the back of wide ranging reforms in regulation and market practice as also the
growing participation of foreign institutional investment, stock markets in India have
showed phenomenal growth in the early 1990s.

The stock market capitalization in mid-2007 is nearly the same size as that of
the gross domestic product as compared to about 25 percent of the latter in the early
2000s. Investor base continued to grow from domestic and international markets.
The value of share trading witnessed a sharp jump too. Foreign institutional
investment in Indian stock markets showed continuous rise reaching about USD
10bn in each of these years between FY04 to FY06.

Stock markets became intensely technology and process driven, giving little
scope for manual intervention that has been the source of market abuse in the past.
Electronic trading, digital certification, straight through processing, electronic
contract notes, online broking have emerged as major trends in technology. Risk
management became robust reducing the recurrence of payment defaults. Product
expansion took place in a speedy manner. Indian equity markets now offer, in
addition to trading in equities, opportunities in trading of derivatives in futures and
options in index and stocks. ETFs are showing gradual growth. Within five years of
introduction of derivatives, Indian stock markets now are ranked first in stock
futures and fourth in index futures.

Indian stock markets are transaction intensive and thus rank among the top
five markets in this regard. Stock exchange reforms brought in professional
management separating conflicts of interest between brokers as owners of the
exchanges and traders/dealers.

The demutualization and Corporatisation of all stock exchanges is nearing

completion and the boards of the stock exchanges now have majority of independent
directors. Foreign institutions took stake in India’s two leading domestic stock
exchanges. While NYSE Group led consortium took stake in the National Stock
Exchange, Deutsche Börse and Singapore Stock Exchange bought equity in the
Bombay Stock Exchange Ltd.

27
 The Indian broking industry is one of the oldest trading industries that has
been around even before the establishment of the BSE in 1875. Despite passing
through a number of changes in the post liberalization period, the industry has found
its way towards sustainable growth. With the purpose of gaining a deeper
understanding about the role of the Indian stock broking industry in the country’s
economy, we present in this section some of the industry insights gleaned from
analysis of data received through primary research.

For the broking industry, we started with an initial database of over 1,800
broking firms that were contacted, from which 464 responses were received. The list
was further short-listed based on the number of terminals and the top 210 were
selected for profiling. 394 responses, that provided more than 85% of the
information sought have been included for this analysis presented here as insights.
All the data for the study was collected through responses received directly from the
broking firms. The insights have been arrived at through an analysis on various
parameters, pertinent to the equity broking industry, such as region, terminal,
market, branches, sub brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:

On the basis of geographical concentration, the West region has the maximum
representation of 52%. Around 24% firms are located in the North, 13% in the South
and 10% in the East 3% firms started broking operations before 1950,
65between1950-19an32%post1995 On the basis of terminals, 40% are located at
Mumbai, 12% in Delhi, 8% in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29%
are from other cities. From this study, we find that almost 36% firm’s trade in cash
and derivatives and 27% are into cash markets alone.

Around 20% trade in cash, derivatives and commodities In the cash market,
around 34% firm’s trade at NSE, 14% at BSE and 52% trade at both exchanges. In the
derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in the
debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges Majority of
branches are located in the North, i.e. around 40%. West has 31%, 24% are located in
South and 5% in East In terms of sub-brokers, around 55% are located in the South,
29% in West, 11% in North and 4% in East Trading, IPO’s and Mutual Funds are the
top three products offered with 90% firms offering trading, 67% IPO’s and 53% firms

28
offering mutual fund transactions In terms of various areas of growth, 84% firms
have expressed interest in expanding their institutional clients, 66% firms intend to
increase FII clients and 43% are interested in setting up JV in India and abroad In
terms of IT penetration, 62% firms have provided their website and around 94%
firms have email facility.

Branches & Sub-Brokers:

The maximum concentration of branches is in the North, with as many as 40%

of all branches located there, followed by the Western region, with 31% branches.
Around 24% branches are located in the South and East constitutes for 5% of the
total branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and
North follow, with 30% and 11% sub-brokers respectively, whereas East has around
4% of total sub-broker.

29
Financial Markets in India:

The financial markets have been classified as cash market, derivatives market,
debt market and commodities market. Cash market, also known as spot market, is
the most sought after amongst investors. Majority of the sample broking firms are
dealing in the cash market, followed by derivative and commodities. 27% firms are
dealing only in the cash market, whereas 35% are into cash and derivatives. Almost
20% firms trade in cash, derivatives and commodities market. Firms that are into
cash, derivatives and debt are 7%. On the other hand, firms into cash and
commodities are 3%, cash & debt market and commodities alone are 2%. 4% firms
trade in all the markets.

In the cash market, around 34% firms’ trade at NSE, 14% at BSE and 52% trade
at both exchanges. In the equity derivative market, 48% of the sampled broking
houses are members of NSE and 7% trade at BSE, while 45% of the sample operate in
both stock exchanges. Around 43% of the broking houses operating in the debt
market, trade at both exchanges with 31% and 26% firms uniquely at NSE and BSE
respectively.

30
 Of the brokers operating in the commodities market, 57% firms operate at
NCDEX and MCX. Around 20% and 21% firms are solely in NCDEX and MCX
respectively, whereas 2% firms trade in NCDEX, MCX and NMCE.

31
Current Scenario:

The current consensus on India is very positive, and it is easy to find a real bull
among major market participants. Investment by private corporate accountant for
41% of total investment in Indian economy in 2007-08. A significant proportion of
corporate investment was financed by equity raised from domestic and overseas
markets. To that extent total investment in Indian economy is directly influenced by
the behavior of capital market. Total financial savings of India’s household were Rs.
5,53,000 crore in 2007-08, accounting for 48% of their total savings.

Impact of budget 2009 on Indian capital market assumes specific significance.

Average level of Sensex increase sharply from 9540 in January 2006 to 19,827 in
December 2007. Indian company successfully raised equity resources of Rs. 1,31,000
crore from the capital market in 2007, while FIIS pumped in U.S. $ 18 billion in
Indian equity market in 2007.

As against this in 2008, Indian corporate could raise only Rs. 29,000 crore,
while FIIs withdrew $ 12 billion from Indian market due to the serve global financial
crisis. This has adversely affected total corporate investment in 2008, which has in
turn lead to a significant slow down in industrial growth. Fortunately second quarter
of 2009 has witnessed a remarkable recovery of global equity markets and, in this
process of market recovery Indian equity market has outperform almost all leading
global markets. During March to June 2009, Sensex has increased by 75% as
compared to 39% growth in china and 23% in U.S.

Indian market continues to outperform global capital markets, during the rest
2009, would succeed in attracting huge inflows of both foreign direct investment as
well as FIIs investments. This would have a significant impact on short-term as well
as long term prospects for the overall development of Indian economy. It would also
enable the government to maximize resource mobilization through an aggressive
disinvestment programme.

32
Future of Indian Market:

India just keeps getting better and better. The economy is growing rapidly
surpassing some of Asia’s biggest economies. India is now becoming the third largest
country in Asia economically India has created the best growth story that happen
over a long time. Although India is growing, there can still be corrections in the
market. No matter how well a country is doing, there is always something that can be
fixed. They would like to wait until the market is fixed to invest.

When thinking about all of the bad things in the news that can affect the market
in a negative way, think about the things that affect it in a positive way as well. You
need to look at a market in the long-term. When seeing it in the short-term every
market will look bad due to recent news. An investor needs to look past that. It is
never guaranteed that you will make a lot of money when investing in market,
including an emerging one. However, India is said to be number one in the world
right now for investment opportunities.

Remember, that even with India doing so well, there are always going to be
flaws in the market, just like every market. Many things can happen in which India
can lose the things it relies on. Any news related event that happens in any country
will affect that countries market and sometimes other countries as well. India, having
a very rapid growing economy is also a very expensive country in Asia. Many have
high hopes for India and if investors invest in India, they would be buying into a
country that has an excellent opportunity to make money over long-term.

33
Major Players of Brokers:

NATIONAL PLAYERS REGIONAL PLAYERS

ANGEL BROKING R.WADIWALA SECURITIES

RELIANCE MONEY JAINAM

INDIA BULLS CONCEPT

INDIA INFOLINE MONARCH

RELIGARE SECURITIES

MOTILAL OSWAL

ANAND RATHI SECURITIES

SHAREKHAN

ICICI DIRECT

KARVY STOCK BROKING LIMITED

KOTAK SECURITIES

HDFC SECURITIES

34
 CHAPTER-3

3.1COMPANYPROFILE

2.1 Jainam Share Consultants Pvt. Ltd.

History:

35
 Jainam Share Consultants Pvt. Ltd. was incorporated on 10th November 2003
and it is mainly carrying on the broking business in the equity market. The company
has acquired memberships of the two major stock exchanges of India; National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Ltd. (BSE). The company
is also registered as a Depository Participant (DP) with Central Depository Services
(I) Ltd. (CDSL).

The company’s registered office is situated at,

M-5/6, Malhar Complex,

Dumas Road, Ichchanath,

Surat 395007.

The company commenced its BSE operations from 4th October 2004 and its
NSE operations from 17th March 2005. Since incorporation the company has been
consistently growing with the present client base of around 11000+ clients. The
company has approximately 80 outlets to cater to the needs of the investors for their
equity trading in the stock exchanges.

Jainam Commodities Pvt. Ltd.

Jainam Commodities Pvt. Ltd. was incorporated on 1st June 2005 and is
mainly carrying on the broking business in the commodity market. The company has
acquired memberships of the two major commodity exchanges of India viz. National
Commodity & Derivatives Exchange Ltd. (NCDEX) and Multi-Commodity Exchange
of India Ltd. (MCX)

The Company’s registered office is situated at

M-11, Malhar Complex,

Dumas Road, Ichchanath,

Surat 395007.

Board of Directors:

36
 1 Dr. Jitendra Shah
2 Mr. Chirag Shah

3 Mr. Milan Parikh

4 Mr. Nipun Shah

5 Mrs. Pinal Shah

6 Mrs. Purna Shah

Business Network:
 Head Office: At registered address, Surat.

 Local Branches: 8 Branches in Surat city.

 Regional Branches:

 Rajkot

 Bhavnagar

 Mumbai

Jainam Organisation Hirearchy:

37
 Board of Directors:

HRM Finance Marketing

Operation
Shital Mehta Hemal Zaveri Chetna Bhandari

General
Account &
Banking

Customer
Demat a/c care Research Commodity
Mutual System/
Kamlesh Dhawal technical Rohan Devesh
Fund
Patel Panchal Mehta Shah
Abhishek

Shah

RMS (Risk Account It &

Opening Security &
management Software
KYC
system) Nisha Nikhil
Dudhwala Hetal Shah
Dilip Morakhia Tandel

38
Milestone of company:

Jainam Share Consultants Pvt. Ltd.

2005 15th December Acquired Membership of

Central Depository

service (India) Ltd.

2004 23rd December Acquired Membership of

National Stock Exchange
of India Ltd. (Cash Seg.)

2004 17th December Acquired Membership of

National Stock Exchange
of India Ltd. (F & O Seg.)

2004 30th December Acquired Membership of

Bombay Stock Exchange
Ltd. (Cash Seg.)

2003 10th November Company Registered

Jainam Commodities Pvt. Ltd.

2006 06th February Acquired Membership of

National Commodity and
Derivatives Exchange of
India Ltd.

39
2005 08th December Acquired Membership of
Multi Commodity
Exchange of India Ltd.

2005 1st June Company Registered

Mission:

“TO PROVIDE WORLD CLASS SERVICES AND CREAT WEALTH FOR EVERY
ONE”

Vision 2015:

“TO BE THE MOST PREFERRED ORGANIZATION PROVIDING ALL FINANCIAL

SERVICES ACROSS THE COUNTRY”

Five CORE VALUES of company:

1. Change

2. People Development

40
3. Security

4. Team Work

5. Integrity

 Jainam Share Consultants Pvt. Ltd.

 Member: Bombay Stock Exchange Ltd. (BSE)

Trading Member ID: 2001

SEBI Registration No: INB011211639 (CM Segment)

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

Trading Member ID: 12169

SEBI Registration No: INB231216939 (CM Segment)

SEBI Registration No: INF231216939 (Derivatives Segment)

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

DP ID: 41500

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

 Jainam Commodities Pvt. Ltd.

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

Trading Member ID: 29735

FMC Registration No: MCX/TCM/CORP/0924

41
  Member: National Commodities & Derivatives Exchange Ltd.
(NCDEX)

Trading Member ID: 00738

FMC Registration No: NCDEX/TCM/CORP/0723

Core Strength of Jainam:

• Milan Parikh who has excellent contacts and relationship with sub-brokers in
surat.
• Nipun Shah has the knowledge that is needed to complete the difficult
procedure of getting various memberships.
• Dr. Jitendra Shah – the senior and most respectable member of team Jainam
who has the ability to motivate all to reach great heights.

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

Strategy:

• Build long term relationship with customer by winning their trust.

• Give decided services to all customers by protecting their investment in
volatile circumstances and adding value to their wealth.
• Integrate the best in technology, research and analysis into the
business model ensuring growth not only in business but also in customer
relationship.

Jainam Strengths:

• Every customer is provided one stop solution for trading in the equities
market and commodities market.
• Provisions of free, state of art research to all clients.
• Dedicated and experienced team for any type work,
• Inspiring and powerful leadership.
• Customer base of more than 14000+

42
Products and services of the company:
Products

Equity

Derivatives

Depository Services

Commodities

IPO -Initial Public Offerings

Insurance

Portfolio Tracking

E-Trading

Mutual Funds

General Information about company:

No. of Employee 160

Working Hours 9:45 am to 6:15 pm

Lunch Time 20 minute during

12:00 noon to 2:00
pm

Salary Payment 5th of every month

Attendance Regular recording

Leave As per its policy

43
Conduct & Discipline High degree of
discipline,
positive conflict is
good between
employees

3.2 About Department:

Human Resource Department

44
Human Resources Department Structure:

Managing Director

Department Head

Senior Executive

Junior Executive Junior Executive

45
Introduction:
The JAINAM shares company’s HR department plays a significant role in day
to day life activities. Its activities and functions are related with other departments.

Discussion with HR manager:

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

Activities carried by HRD:

 Attendance Management
 Personal file updating
 Leave Management
 Contract Management for labor
 Maintaining Attendance
 Statutory Compensation
 Salary & Bonus
 Welfare Activity
 Medical
 Education
 Health check up
 ISO Documentation
 HR Budget
 MIS Report
 Training and development
 Recruitment & Selection
 Induction and Orientation
 Performance Appraisal
 Separation

46
  Transfer
 Resignation

Human Resource Systems support the mentioned driving forces in the

following manner at Jainam Shares Consultant pvt. ltd:

 Salary and basic needs

 Competitive with the industry
 Parity within the organisation
 Providing growth compared to the industry
 Compensation strategy concentrated towards Retention of
Employees

 Work Environment
 Employee engagement measurement
 Policy formulation and its strict adherence
• Administration policies
• Performance management policies
 Clarity of Job, Role, responsibility and accountability

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

47
1) Job Analysis:

Definition of Job Analysis:

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

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

48
 Uses of Job Analysis Information

Job Analysis

Job Description

And

Job Specification

Recruiting and Performance Job Evaluation— Training

Selection Appraisal Wage and Salary Requirements

Decisions Decisions

(Compensation)

2) Man Power Planning:

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

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

49
 resource. They make assumption of future expected loss of human resource. They are
done MPP on continuous basis.

3) Recruitment and Selection:

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

Recruiting
and

Selection

 Sources of recruitment:
They generally use both the internal and external sources for the Recruitment.

 Internal sources:

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

 External sources:

50
 As a external sources of Recruitment they used a service of a agency which are
providing a skilled Human Resources. Currently they are Recruiting a persons from
“MAFOIA consultancy Ltd.”

 Interview:

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

 Test during Interview:

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

 Final placement:

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

 Induction training:

As new employee is placed in the organization, the following are some

important task which is done to make him/her familiar with the organization.

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

 Purpose of Induction Manual:

1. To make familiar with organization and its culture

2. Accelerate socialization process for the individual.
3. Aware of responsibilities and privileges.
4. Integrate with the organization.

51
The Organization expects the following from their employees,

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

2. We meet deadlines and issue reports on time.

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

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

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

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

7. Respect each other’s ideas and views.

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

9. We expect people to voice their disagreement.

10. Positive conflict is good.

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

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

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

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

52
 Terminal Process:
Most involuntary separations are due to poor performance, poor attendance, or
violation of some other company policy.

 Acts:
Two acts are following as HR acts

1. Provident fund act 1952

2. ESIC- Employees’ state insurance act 1948:

"An Act to provide for certain benefits to employees in case of sickness,

maternity and employment injury and to make provision for certain other matters in
relation thereto."

Marketing & Sales Department:

53
Marketing & Sales Department:

Introduction:

Marketing is so basic that it cannot be considered as a separate function.

Marketing has been defined in various ways. The definition that serves our purpose
best is as follows: “marketing is a social and managerial process by which individuals
and groups obtain what they need and want through creating, offering and
exchanging products of value with others.”

54
 This definition of marketing rests on the following core concepts, needs,
wants& demands, products, value, cost & satisfaction, exchange and transactions,
relationship and networks, markets and marketers and prospects.

“Marketing management is the process of planning and executing the

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

Marketing management takes place when at least one party to a potential

exchange thinks about the means of achieving the desired responses from the other
parties. Marketing management has the task of influencing the level; timing and
composition of demand in a way that will the organization achieve its objectives.
Marketing management is essentially demand management.

This department was started before one year in the organization.

Discussion with manager:

When Researcher talked to marketing manager, Chetna Bhandari who has 10

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

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

55
 Advertisement:
When Researcher asked her about advertisement and its rules, she said that if
the firm wants to put single banner they need to take permission from SEBI. If there
are any changes in the matter immediately they have to inform to SEBI about
changes.

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

 Promotion Method:

1. Telephone & E-mail:

 Customer Satisfaction Measures.

 E-mail and Telephonic Complaint.

 By appointing employee to special customers.

 Order Conformation.

 By giving daily reports about market and industry to customers.

Distribution Channel:

Zero Level:

56
 Jainam Shares consultant

Direct Indirect
customer customer

(Sub-brokers) (Clients)

One level:
Jainam Shares
consultant

Direct customer

(Sub-brokers)

Indirect customer

(Clients)

57
 IT & Software department:

IT & Software department:

This department was stared before 2 months.

Discussion with manager:

58
 When Researcher talked to in charge of the department Mr. Nihkil Tandel
about the need for staring this department, he explained me the various reasons like,

Reasons for establishment of the department:

1. To build, stabilize, and deploy IT services, applications, and infrastructure

improvements in the most efficient way possible.
2. Software service problem was in very high degree
3. To become self dependent in making software for the business
4. In future to apply for innovations and creative ideas in business for growth
and expansion of the firm
5. To facilitate the A/C & trading department
6. To solve it problems quickly.
7. Reliability and security of business plan
8. Asset protection
9. Restoration of a service to health when things go wrong

The department is still in underdevelopment process. Top management is supporting

as best to make it efficient for making all processes of the firm.

59
 KYC (know your client)
department & DP:

KYC (know your client) department & DP:

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

Introduction:

60
 In order to prevent identity theft, identity fraud, money laundering, terrorist

financing, etc, the RBI had directed all banks and financial institutions to put in

place a policy framework to know their customers before opening any account.

This involves verifying customers' identity and address by asking them to

submit documents that are accepted as relevant proof.

Mandatory details required under KYC norms are proof of identity and proof of

address. Passport, voter's ID card, PAN card or driving license are accepted as proof

of identity, and proof of residence can be a ration card, an electricity or telephone bill

or a letter from the employer or any recognised public authority certifying the

address.

Some banks may even ask for verification by an existing account holder.

Though the standard documents which are accepted as proof of identity and

residence remain the same across various banks, some deviations are permitted,

which differ from bank to bank.

So, all documents shall be checked against banks requirements to ascertain if

those match or not before initiating an account opening process with any bank. Thus

opening a new bank account is no longer a cake walk. Those are the basic

requirements of KYC to identify a customer at the account opening stage.

DP department:

Demat refers to a dematerialized account.

Introduction:

Just as one have to open an account with a bank if he/she want to save his/her

61
money, make cheque payments etc, one need to open a demat account if one want to
buy or sell stocks. So it is just like a bank account where actual money is replaced by
shares.

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

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

Nowadays, practically all trades have to be settled in dematerialised form.

Although the market regulator, the Securities and Exchange Board of India (SEBI),
has allowed trades of upto 500 shares to be settled in physical form, nobody wants
physical shares any more. So a demat account is a must for trading and investing.

Process to start DP:

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

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

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

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

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

62
• PAN card

• Voter's ID

• Passport

• Ration card

• Driver's license

• Photo credit card

• Employee ID card

• Bank attestation

• IT returns

• Electricity/ Landline phone bill

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

Not so with a demat account. A demat account can be opened with no

balance of shares.And there is no minimum balance to be maintained either. You
can have a zero balance in your account.

Charges for it:

63
 The charges for account opening, annual account maintenance fees and
transaction charges vary between DPs. To get a comparative idea, visit the websites
of NSDL and CDSL.

Nomination:

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

After starting Dp:

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

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

Difference between a depository and a depository participant:

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

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

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

Changes of Bank account details:

Since in the depository system monetary benefits on the security balances are

paid as per the bank account details provided by you at the time of account opening,

64
you must ensure that any subsequent change in bank account details is informed to

your DP immediately.

Closing or Transfer:

One can submit account closure request to your DP in the prescribed form. The

DP will transfer all the securities lying in the account, as per the instruction, and

close the demat account.

Freeze or locking account:

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

Accounts can be frozen for debits (preventing transfer of securities out of accounts)

or for credits (preventing any movements of securities into accounts) or for both.

65
 Customer Care Department:

Customer Care Department:

Definition

66
 Customer Care is the processing of meeting (and exceeding) your customer

expectations of service.

Mission of the department:

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

Objectives of Customer Care

• create a culture of customer focus

• creating rapport and building loyalty
• achieving customer satisfaction

They are committed to providing customers with efficient, local, support to

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

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

• Provide customers and staff with clear standards and expectations

• Ensure all customer contact reaches an appropriate conclusion
• Minimize incidences of repeat contact
• Seek to provide a seamless service for customers
• Provide equal and easy access to our services at a time, place and channel that
meet the needs of residents, businesses and other stakeholders
• Cater for customers needs irrespective of age, gender, physical or financial
ability, ethnic origin, race, religion or geographical location
• Provide a prompt, courteous and knowledgeable response to all customer
enquiries.
• Equip our staff to provide customers with an excellent standard of service
• Enable our customers to provide feedback easily, through complaints,
customer surveys, etc
• Use customer compliments, comments and complaints to drive improvements
to service
• Improve the speed, quality and consistency of response to enquiries by having
our information in a format that can be easily accessed
• Integrate customer care into mainstream service provision
• Continually increase the level of resources going into front line services

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

• Delight the customer by providing excellent standards of service

• Maximize satisfaction with the quality of the service provided

Developing Customer Care strategies:

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 Finance Department

Finance Department:

Introduction:

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

Financial management is the application of planning and control to the finance

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

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

 Account Department

 Banking Department

Functions of Account Department:

 Payment of expenses.

 Final accounts.

 All types of taxes.

 Auditing and statutory auditing. (Quarterly)

 Daily or time to time banking match.

 Pay in pay out.

 Collection of check and entry maintenance.

 Enquiry and third party check.

Functions of Banking Department:

 Capital Structure maintenance

 Pay in pay out of checks with exchanges.

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 Maintenance of OD

 Fulfillment of necessary requirement of department of financial needs.

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 Research Department:

Introduction:

In the firm of share broking organization research department plays crucial role
for time to time updates and other technical services for clients as well as internal
purpose.

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The Jainam shares consultants’ pvt ltd is providing the following technical services.

Technical Services:

Intra-day Calls

For day traders’ Jainam provides intraday calls with entry, exit and stop loss
levels during the market hours and our calls are flashed on our terminals. Our
analysts continuously track the calls and provide the recommendations according to
the market movements. Past performance of these calls in terms of profit/loss is also
available to our associates to enable them to judge the success rate.

Posting Trading Calls

Jainam’s “Position Trading Calls” are based on a through analysis of the price
movements in selected scripts and provides calls for taking positions with a 10 - 15
days time span with stop losses and targets. These calls are also flashed on our
terminals during market hours.

Derivative strategies:

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

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technical tools and devise suitable “Derivative Strategies” , which are flashed on our
terminals and published in our derivative reports.

Daily Services:

Market Outlook at 9:30 AM

A crisp pre-market report that arms our clients with sensitive information
before the opening bell. Key corporate developments, policy announcements, geo-
political news and views are analyzed for their impact on the market.

Technical Report at 6:00 PM

This report analyses trading patterns, historical background, market position of
key stocks and offer short term (1 to 5 days) as well as medium term (10 to 20 days)
views. Tracking individual scripts as well as the Sensex and Nifty, its insight cuts
through the market maze.

Derivative Analysis Report

The report provides FII activity in derivative segments, change in open interest,
put call ratio, cost of carry of stock and index based derivative products. Our
derivative analysts use the above tolls to project the movement during the next
trading sessions

CHAPTER-4

74
 THEORETICAL
FRAMEWORK

TECHNICALANALYSIS

&

COMMODITYMARKET

Technical Analysis:

Introduction:

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 The methods used to analyze securities and make investment decisions fall into
two very broad categories: fundamental analysis and technical analysis.
Fundamental analysis involves analyzing the characteristics of a company in order to
estimate its value. Technical analysis takes a completely different approach; it
doesn't care one bit about the "value" of a company or a commodity. Despite all the
fancy and exotic tools it employs, technical analysis really just studies supply and
demand in a market in an attempt to determine what direction, or trend, will
continue in the future. In other words, technical analysis attempts to understand the
emotions in the market by studying the market itself, as opposed to its components.

Definition:

Technical analysis is the forecasting of future financial price movements based

on an examination of past price movements. Like weather forecasting, technical
analysis does not result in absolute predictions about the future. Instead, technical
analysis can help investors anticipate what is "likely" to happen to prices over time.
Technical analysis uses a wide variety of charts that show price over time.

The field of technical analysis is based on three assumptions:

1. The market discounts everything.
2. Price moves in trends.
3. History tends to repeat itself.

1. The Market Discounts Everything.

A major criticism of technical analysis is that it only considers price movement,

ignoring the fundamental factors of the company. However, technical analysis
assumes that, at any given time, a stock's price reflects everything that has or could
affect the company - including fundamental factors. Technical analysts believe that

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the company's fundamentals, along with broader economic factors and market
psychology, are all priced into the stock, removing the need to actually consider these
factors separately. This only leaves the analysis of price movement, which technical
theory views as a product of the supply and demand for a particular stock in the
market.

2. Price Moves in Trends.

In technical analysis, price movements are believed to follow trends. This

means that after a trend has been established, the future price movement is more
likely to be in the same direction as the trend than to be against it. Most technical
trading strategies are based on this assumption.

3. History Tends To Repeat Itself.

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

itself, mainly in terms of price movement. The repetitive nature of price movements
is attributed to market psychology; in other words, market participants tend to
provide a consistent reaction to similar market stimuli over time. Technical analysis
uses chart patterns to analyze market movements and understand trends. Although
many of these charts have been used for more than 100 years, they are still believed
to be relevant because they illustrate patterns in price movements that often repeat
themselves.

Technical Analysis: The Use of Trend

One of the most important concepts in technical analysis is that of trend. A

trend is really nothing more than the general direction in which a security or market
is headed. Take a look at the chart below:

77
It isn't hard to see that the trend in is up. However, it's not always this easy to see a
trend:

A More Formal Definition

In any given chart, you will probably notice that prices do not tend to move in a
straight line in any direction, but rather in a series of highs and lows. In technical
analysis, it is the movement of the highs and lows that constitutes a trend. For
example, an uptrend is classified as a series of higher highs and higher lows, while a
downtrend is one of lower lows and lower highs.

Types of Trend

There are three types of trend:

 Uptrend

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  Downtrend

 Sideway

When each successive peak and trough is higher, it's referred to as an upward
trend. If the peaks and troughs are getting lower, it's a downtrend. When there is
little movement up or down in the peaks and troughs, it's a sideways or horizontal
trend.

Trend Lengths:

Along with these three trend directions, there are three trend classifications. A
trend of any direction can be classified as a long-term trend, intermediate trend or a
short-term trend. In terms of the stock market, a major trend is generally categorized
as one lasting longer than a year. An intermediate trend is considered to last between
one and three months and a near-term trend is anything less than a month. A long-
term trend is composed of several intermediate trends, which often move against the
direction of the major trend. If the major trend is upward and there is a downward
correction in price movement followed by a continuation of the uptrend, the
correction is considered to be an intermediate trend. The short-term trends are
components of both major and intermediate trends. In Figure to get a sense of how
these three trend lengths might look.

Trend lines:

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 A trendline is a simple charting technique that adds a line to a chart to
represent the trend in the market or a stock. Drawing a trendline is as simple as
drawing a straight line that follows a general trend. These lines are used to clearly
show the trend and are also used in the identification of trend reversals.
In Figure, an upward trendline is drawn at the lows of an upward trend. This line
represents the support the stock has every time it moves from a high to a low. Notice
how the price is propped up by this support. This type of trendline helps traders to
anticipate the point at which a stock's price will begin moving upwards again.
Similarly, a downward trendline is drawn at the highs of the downward trend. This
line represents the resistance level that a stock faces every time the price moves from
a low to a high.

The Importance of Trend

It is important to be able to understand and identify trends so that you can

trade with rather than against them. Two important sayings in technical analysis are
"the trend is your friend" and "don't buck the trend”.

Technical Analysis: Support and Resistance

Once understand the concept of a trend, the next major concept is that of
support and resistance. You'll often hear technical analysts talk about the ongoing
battle between the bulls and the bears, or the struggle between buyers (demand) and

80
sellers (supply). This is revealed by the prices a security seldom moves above
(resistance) or below (support).

In Figure, support is the price level through which a stock or market seldom
falls (blue arrows). Resistance, on the other hand, is the price level that a stock or
market seldom surpasses (red arrows).

These support and resistance levels are seen as important in terms of market
psychology and supply and demand. Support and resistance levels are the levels at
which a lot of traders are willing to buy the stock (in the case of a support) or sell it
(in the case of resistance). When these trendlines are broken, the supply and demand
and the psychology behind the stock's movements is thought to have shifted, in
which case new levels of support and resistance will likely be established.

Role Reversal

Once a resistance or support level is broken, its role is reversed. If the price

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falls below a support level, that level will become resistance. If the price rises above a
resistance level, it will often become support. As the price moves past a level of
support or resistance, it is thought that supply and demand has shifted, causing the
breached level to reverse its role. For a true reversal to occur, however, it is
important that the price make a strong move through either the support or
resistance.

In Figure, the dotted line is shown as a level of resistance that has prevented
the price from heading higher on two previous occasions (Points 1 and 2). However,
once the resistance is broken, it becomes a level of support (shown by Points 3 and 4)
by propping up the price and preventing it from heading lower again.

The Importance of Support and Resistance

Support and resistance analysis is an important part of trends because it can be

used to make trading decisions and identify when a trend is reversing. For example,
if a trader identifies an important level of resistance that has been tested several
times but never broken, he or she may decide to take profits as the security moves
toward this point because it is unlikely that it will move past this level. Support and
resistance levels both test and confirm trends and need to be monitored.

Technical Analysis: The Importance of Volume

Introduction:
Volume is simply the number of shares or contracts that trade over a given
period of time, usually a day. The higher the volume, the more active the security. To

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determine the movement of the volume (up or down), chartists look at the volume
bars that can usually be found at the bottom of any chart. Volume bars illustrate how
many shares have traded per period and show trends in the same way that prices do.

Importance of Volume:

Volume is an important aspect of technical analysis because it is used to

confirm trends and chart patterns. Any price movement up or down with
relatively high volume is seen as a stronger, more relevant move than a similar
move with weak volume.

Volume should move with the trend. If prices are moving in an upward
trend, volume should increase (and vice versa). If the previous relationship
between volume and price movements starts to deteriorate, it is usually a sign of
weakness in the trend.

Technical Analysis: Moving Averages

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 A moving average is the average price of a security over a set amount of time.
By plotting a security's average price, the price movement is smoothed out. Once the
day-to-day fluctuations are removed, traders are better able to identify the true
trend.

Types of Moving Averages

 Simple Moving Average (SMA):

This is the most common method used to calculate the moving average of
prices. It simply takes the sum of all of the past closing prices over the time period
and divides the result by the number of prices used in the calculation. For example,
in a 10-day moving average, the last 10 closing prices are added together and then
divided by 10.

Many individuals argue that the usefulness of this type of average is limited
because each point in the data series has the same impact on the result regardless of
where it occurs in the sequence. The critics argue that the most recent data is more
important and, therefore, it should also have a higher weighting. This type of

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criticism has been one of the main factors leading to the invention of other forms of
moving averages.

 Linear Weighted Average:

This moving average indicator is the least common out of the three and is
used to address the problem of the equal weighting. The linear weighted moving
average is calculated by taking the sum of all the closing prices over a certain time
period and multiplying them by the position of the data point and then dividing by
the sum of the number of periods.

 Exponential Moving Average (EMA):

This moving average calculation uses a smoothing factor to place a higher

weight on recent data points and is regarded as much more efficient than the linear
weighted average. Having an understanding of the calculation is not generally
required for most traders because most charting packages do the calculation for you.
The most important thing to remember about the exponential moving average is that
it is more responsive to new information relative to the simple moving average.

Introduction to charts:

A price chart is a sequence of prices plotted over a specific time frame. In

statistical terms, charts are referred to as time series plots.

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 Technicians, technical analysts and chartists use charts to analyze a wide array
of securities and forecast future price movements. The word "securities" refers to any
tradable financial instrument or quantifiable index such as stocks, bonds,
commodities, futures or market indices. Any security with price data over a period of
time can be used to form a chart for analysis.

Types of Charts:

There are three main types of charts that are used by investors and traders
depending on the information that they are seeking and their individual skill levels.
The chart types are: the line chart, the bar chart, the candlestick chart.

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  Line Chart:

The most basic of the three charts is the line chart because it represents only
the closing prices over a set period of time. The line is formed by connecting the
closing prices over the time frame. Line charts do not provide visual information of
the trading range for the individual points such as the high, low and opening prices.
However, the closing price is often considered to be the most important price in stock
data compared to the high and low for the day and this is why it is the only value
used in line charts.

 Bar chart:

The chart is made up of a series of vertical lines that represent each data point.
This vertical line represents the high and low for the trading period, along with the
closing price. The close and open are represented on the vertical line by a horizontal

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dash. The opening price on a bar chart is illustrated by the dash that is located on the
left side of the vertical bar. Conversely, the close is represented by the dash on the
right. A bar that is colored red signals that the stock has gone down and colored blue
it means it has gone up.

 Candlestick Charts:

The candlestick chart is similar to a bar chart, but it differs in the way that it
is visually constructed. Similar to the bar chart, the candlestick also has a thin
vertical line showing the period's trading range. The difference comes in the
formation of a wide bar on the vertical line, which illustrates the difference between
the open and close. White (clear) candlesticks form when the close is higher than the

88
open and black (solid) candlesticks form when the close is lower than the open. The
white and black portion formed from the open and close is called the body (white
body or black body). The lines above and below are called shadows and represent the
high and low.

Technical Analysis: Chart Patterns

A chart pattern is a distinct formation on a stock chart that creates a trading

signal, or a sign of future price movements. Chartists use these patterns to identify
current trends and trend reversals and to trigger buy and sell signals.
There are two types of patterns within this area of technical analysis, reversal and
continuation. A reversal pattern signals that a prior trend will reverse upon

89
completion of the pattern. A continuation pattern, on the other hand, signals that a
trend will continue once the pattern is complete. These patterns can be found over
charts of any timeframe.

 Head and Shoulders:

This is one of the most popular and reliable chart patterns in technical
analysis. Head and shoulders is a reversal chart pattern that when formed, signals
that the security is likely to move against the previous trend. In Figure, there are two
versions of the head and shoulders chart pattern. Head and shoulders top (shown on
the left) is a chart pattern that is formed at the high of an upward movement and
signals that the upward trend is about to end. Head and shoulders bottom, also
known as inverse head and shoulders (shown on the right) is the lesser known of the
two, but is used to signal a reversal in a downtrend.

 Cup and Handle:

A cup and handle chart is a bullish continuation pattern in which the upward
trend has paused but will continue in an upward direction once the pattern is

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confirmed.

In Figure, this price pattern forms what looks like a cup, which is preceded by
an upward trend. The handle follows the cup formation and is formed by a generally
downward/sideways movement in the security's price. Once the price movement
pushes above the resistance lines formed in the handle, the upward trend can
continue.

 Double Tops and Bottoms:

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 This chart pattern is another well-known pattern that signals a trend reversal
- it is considered to be one of the most reliable and is commonly used. These patterns
are formed after a sustained trend and signal to chartists that the trend is about to
reverse. The pattern is created when a price movement tests support or resistance
levels twice and is unable to break through. This pattern is often used to signal
intermediate and long-term trend reversals.

In the case of the double top pattern, the price movement has twice tried to
move above a certain price level. After two unsuccessful attempts at pushing the
price higher, the trend reverses and the price heads lower. In the case of a double
bottom, the price movement has tried to go lower twice, but has found support each
time. After the second bounce off of the support, the security enters a new trend and
heads upward.

Price Channel:

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

pattern that either slopes up or down as the price action is being maintained within

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established and sloping resistance and support lines. A negative or downwardly
sloping channel is considered bearish while a positive or upwardly sloping channel is
comparatively bullish. In this instance, traders will wait to buy when the price action
touches support as a rebound is expected. Conversely, sellers will take a sell position
after a touch of resistance.

Major Uses of Moving Averages:

Moving averages are used to identify current trends and trend reversals as well
as to set up support and resistance levels.

Moving averages can be used to quickly identify whether a security is moving in

an uptrend or a downtrend depending on the direction of the moving average.

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 Another method of determining momentum is to look at the order of a pair of
moving averages. When a short-term average is above a longer-term average, the
trend is up. On the other hand, a long-term average above a shorter-term average
signals a downward movement in the trend.

Moving average trend reversals are formed in two main ways: when the price
moves through a moving average and when it moves through moving average
crossovers. The first common signal is when the price moves through an important
moving average. For example, when the price of a security that was in an uptrend
falls below a 50-period moving average, like in Figure 4, it is a sign that the uptrend
may be reversing.

The other signal of a trend reversal is when one moving average crosses through
another. For example, as you can see in Figure 5, if the 15-day moving average
crosses above the 50-day moving average, it is a positive sign that the price will start
to increase.

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 If the periods used in the calculation are relatively short, for example 15 and 35,
this could signal a short-term trend reversal. On the other hand, when two averages
with relatively long time frames cross over (50 and 200, for example), this is used to
suggest a long-term shift in trend.

Another major way moving averages are used is to identify support and
resistance levels. It is not uncommon to see a stock that has been falling stop its
decline and reverse direction once it hits the support of a major moving average. A
move through a major moving average is often used as a signal by technical traders
that the trend is reversing. For example, if the price breaks through the 200-day
moving average in a downward direction, it is a signal that the uptrend is reversing.

Moving Average Convergence:

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 The moving average convergence divergence (MACD) is one of the most well
known and used indicators in technical analysis. This indicator is comprised of two
exponential moving averages, which help to measure momentum in the security. The
MACD is simply the difference between these two moving averages plotted against a
centerline. The centerline is the point at which the two moving averages are equal.
Along with the MACD and the centerline, an exponential moving average of the
MACD itself is plotted on the chart. The idea behind this momentum indicator is to
measure short-term momentum compared to longer term momentum to help signal
the current direction of momentum.

MACD= shorter term moving average - longer term moving average

In Figure 2, one of the most common buy signals is generated when the MACD
crosses above the signal line (blue dotted line), while sell signals often occur when
the MACD crosses below the signal.

Relative Strength Index

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 The relative strength index (RSI) is another one of the most used and well-
known momentum indicators in technical analysis. RSI helps to signal overbought
and oversold conditions in a security. The indicator is plotted in a range between zero
and 100. A reading above 70 is used to suggest that a security is overbought, while a
reading below 30 is used to suggest that it is oversold. This indicator helps traders to
identify whether a security’s price has been unreasonably pushed to current levels
and whether a reversal may be on the way.

The standard calculation for RSI uses 14 trading days as the basis, which can
be adjusted to meet the needs of the user. If the trading period is adjusted to use
fewer days, the RSI will be more volatile and will be used for shorter term trades.

Stochastic Oscillator

The stochastic oscillator is one of the most recognized momentum indicators

used in technical analysis. The idea behind this indicator is that in an uptrend, the
price should be closing near the highs of the trading range, signaling upward

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momentum in the security. In downtrends, the price should be closing near the lows
of the trading range, signaling downward momentum.

The stochastic oscillator is plotted within a range of zero and 100 and signals
overbought conditions above 80 and oversold conditions below 20. The stochastic
oscillator contains two lines. The first line is the %K, which is essentially the raw
measure used to formulate the idea of momentum behind the oscillator. The second
line is the %D, which is simply a moving average of the %K. The %D line is
considered to be the more important of the two lines as it is seen to produce better
signals. The stochastic oscillator generally uses the past 14 trading periods in its
calculation but can be adjusted to meet the needs of the user.

Pivot Point Analysis:

Pivot Points offer the trader a method of determining support and resistance
for a given time frame. Pivots can be used with any time frame, daily, weekly,
monthly, even any intra-day chart. A common technique is to calculate Pivots for a
variety of time frames using common levels as a way of developing confidence
parameters. There are five basic parameters calculated in Pivot Point Analysis. They
are the Pivot (P), 1st Resistance (R1), 2nd Resistance (R2), 1st Support (S1) and 2nd
Support (S2).These levels are used in much the same manner as you would trendline
support and resistance levels.

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 First here is the mathematical formula where P= Pivot point; C= Close: H=
High: and L= Low. The Pivot point number is the high, low; close added up and then
divided by three. P= (H+L+C)/3= pivot point.

Now for the first resistance level take the pivot point number times two and
then subtracts the low. (Px2)-L=Resistance 1

For the second resistance, take the pivot point number add the high and then
subtract the low. P+H-L= Resistance2

For the first support take the pivot point number times two and then subtracts
the high. (Px2)-H = Support 1

For the second support, take the pivot point number subtract the high and then
add the low. P-H+L= Support 2

All right, now that we have that established we can see it is a detailed formula.
So let’s try to simplify it. Consider the Pivot Point as the average of the previous
sessions trading range combined with the closing price. The numbers of support and
resistance that are calculated indicate the potential ranges for the next time frame
based on the past weight of the markets strength or weakness derived from the
calculations of the high, low and distance from the close of those points. Pivot Point
analysis is also used for identifying breakout points from the support and resistance
numbers.

Commodity and Commodities market

Introduction:

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

population depends on agricultural commodities, surprisingly has an under

developed commodity market. Unlike the physical market, futures markets trades in

99
commodity are largely used as risk management (hedging) mechanism on either

physical commodity itself or open positions in commodity stock.

For instance, a jeweler can hedge his inventory against perceived short-term

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

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

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

commodity derivatives and learn about the market from Indian point of view. In fact

it was one of the most vibrant markets till early 70s. Its development and growth was

shunted due to numerous restrictions earlier. Now, with most of these restrictions

being removed, there is tremendous potential for growth of this market in the

country.

Commodity:

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

and sold. It can be classified as every kind of movable property, except Actionable

Claims, Money & Securities.

Commodities actually offer immense potential to become a separate asset class

for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim

100
 to understand the equity markets, may find commodities an unfathomable market.

But commodities are easy to understand as far as fundamentals of demand and

supply are concerned. Retail investors should understand the risks and advantages of

trading in commodities futures before taking a leap. Historically, pricing in

commodities futures has been less volatile compared with equity and bonds, thus

providing an efficient portfolio diversification option.

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

the country's GDP of Rs 13, 20,730 crore (Rs 13,207.3 billion), commodities related

(and dependent) industries constitute about 58 per cent.

Currently, the various commodities across the country clock an annual turnover

of Rs 1, 40,000 crore (Rs 1,400 billion). With the introduction of futures trading, the

size of the commodities market grows many folds here on.

Commodity Market:

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

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

metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It

is important to develop a vibrant, active and liquid commodity market. This would

help investors hedge their commodity risk, take speculative positions in commodities

and exploit arbitrage opportunities in the market.

Table:
Turnover in Financial Markets and Commodity Market
(Rs in Crores)
S Market segments 2002-03 2003-04 2004-05 (E)

No.

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1 Government Securities Market 1,544,376 (63) 2,518,322 (91.2) 2,827,872 (91)
2 Forex Market 658,035 (27) 2,318,531 (84) 3,867,936 (124.4)
3 Total Stock Market Turnover 1,374,405 (56) 3,745,507 (136) 4,160,702 (133.8)

(I+ II)
I National Stock Exchange (a+b) 1,057,854 (43) 3,230,002 (117) 3,641,672 (117.1)
a)Cash 617,989 1,099,534 1,147,027
b)Derivatives 439,865 2,130,468 2,494,645
II Bombay Stock Exchange (a+b) 316,551 (13) 515,505 (18.7) 519,030 (16.7)
a)Cash 314,073 503,053 499,503
b)Derivatives 2,478 12,452 19,527
4 Commodities Market NA 130,215 (4.7) 500,000 (16.1)
Note: Fig. in bracket represents percentage to GDP at market prices
Source: SEBI bulletin

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

It’s EVOLUTION IN INDIA

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

futures market. Bombay Cotton Exchange Ltd. was established in 1893 following the

widespread discontent amongst leading cotton mill owners and merchants over

functioning of Bombay Cotton Trade Association. The Futures trading in oilseeds

started in 1900 with the establishment of the Gujarati Vyapari Mandali, which

carried on futures trading in groundnut, castor seed and cotton. Futures' trading in

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

notable futures exchange for wheat was chamber of commerce at Hapur set up in

1913. Futures trading in bullion began in Mumbai in 1920. Calcutta Hessian

Exchange Ltd. was established in 1919 for futures trading in raw jute and jute goods.

But organized futures trading in raw jute began only in 1927 with the establishment

of East Indian Jute Association Ltd. These two associations amalgamated in 1945 to

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

102
Jute and Jute goods. Forward Contracts (Regulation) Act was enacted in 1952 and

the Forwards Markets Commission (FMC) was established in 1953 under the

Ministry of Consumer Affairs and Public Distribution. In due course, several other

exchanges were created in the country to trade in diverse commodities.

Structure of Commodity Market:

Different types of commodities traded:

103
 World-over one will find that a market exits for almost all the commodities

known to us. These commodities can be broadly classified into the following:

 Precious Metals: Gold, Silver, Platinum etc

 Other Metals: Nickel, Aluminum, Copper etc

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

 Soft Commodities: Coffee, Cocoa, Sugar etc

 Live-Stock: Live Cattle, Pork Bellies etc

 Energy: Crude Oil, Natural Gas, Gasoline etc

Different segments in Commodities market:

The commodities market exits in two distinct forms namely the Over the

Counter (OTC) market and the Exchange based market. Also, as in equities,

there exists the spot and the derivatives segment. The spot markets are essentially

over the counter markets and the participation is restricted to people who are

involved with that commodity say the farmer, processor, wholesaler etc. Derivative

trading takes place through exchange-based markets with standardized contracts,

settlements etc.

Leading commodity markets of world

104
 Some of the leading exchanges of the world are New York Mercantile Exchange

(NYMEX), the London Metal Exchange (LME) and the Chicago Board of Trade

(CBOT).

Leading commodity markets of India

The government has now allowed national commodity exchanges, similar to the

BSE & NSE, to come up and let them deal in commodity derivatives in an electronic

trading environment. These exchanges are expected to offer a nation-wide

anonymous, order driven, screen based trading system for trading. The Forward

Markets Commission (FMC) will regulate these exchanges.

Consequently four commodity exchanges have been approved to

commence business in this regard. They are:

Multi Commodity Exchange (MCX) located at Mumbai.

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

National Board of Trade (NBOT) located at Indore.

National Multi Commodity Exchange (NMCE) located at Ahmedabad.

Turnover on Commodity Futures Markets

(Rs. In Crores)

Exchange 2003-04 2004-05 FIRST

Half

105
 NCDEX 1490 54011
NBOT 53014 51038
MCX 2456 30695
NMCE 23842 7943
ALL EXCHANGES 129364 170720
Source: http://www.indianmba.com/Occasional_Papers/OP62/op62.html

Volumes in Commodity Derivatives Worldwide

Commodity Futures Trading in India

Introduction:

Derivatives as a tool for managing risk first originated in the Commodities

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

The basic concept of a derivative contract remains the same whether the underlying

happens to be a commodity or a financial asset. However there are some features,

which are very peculiar to commodity derivative markets. In the case of financial

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

settlement, financial assets are not bulky and do not need special facility for storage.

Due to the bulky nature of the underlying assets, physical settlement in commodity

derivatives creates the need for warehousing. Similarly, the concept of varying

quality of asset does not really exist as far as financial underlyings are concerned.

106
However in the case of commodities, the quality of the asset underlying a contract

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

Benefits to Industry from Futures trading

 Hedging the price risk associated with futures contractual commitments.

 Spaced out purchases possible rather than large cash purchases and its

storage.

 Efficient price discovery prevents seasonal price volatility.

 Greater flexibility, certainty and transparency in procuring commodities

would aid bank lending.

 Facilitate informed lending.

 Hedged positions of producers and processors would reduce the risk of

default faced by banks.

 Lending for agricultural sector would go up with greater transparency in

pricing and storage.

 Commodity Exchanges to act as distribution network to retail agri-finance

from Banks to rural households.

 Provide trading limit finance to Traders in commodities Exchanges.

Benefits to Exchange Member

 Access to a huge potential market much greater than the securities and

cash market in commodities.

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

 Member can trade in multiple commodities from a single point, on real

time basis.

107
 Traders would be trained to be Rural Advisors and Commodity Specialists

and through them multiple rural needs would be met, like bank credit,

information dissemination, etc.

Chapter 4
Research Methodology

108
 4.1 Objective of Study:

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

 To make investment decisions.

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

 To forecast future financial price movements.

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

 To understand emotions of market by using market itself.

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

4.2 Problem identification:

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

109
4.3 Assumptions and benefits of study:

The field of technical analysis is based on three assumptions:

1. The market discounts everything.
2. Price moves in trends.
3. History tends to repeat itself.

Benefits of study:

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

 Technical analysis focuses on price movement. The primary focus of

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

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

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

110
  Charting is quick and inexpensive. Computers have relieved us from the
burden of performing complex mathematical operations. The Internet has a
wealth of different technical indicators available that can help the trader to
make more profitable and more reliable trades. Many brokers offer these types
of technical indicators to their clients as part of their package. Technical
analysis is less time consuming and less costly than fundamental analysis. It
can be performed in less than five minutes and the services are very often
offered for free or at a nominal cost.

 Charts provide a wealth of information. Charts and indicators can

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

4.4 Research design:

“A research design is the arrangement of conditions for collections and analysis of

data in a manner that aims to relevance to the research purpose with economy in
procedure. In fact, research design is the conceptual structure within which research
is conducted; it constitutes the blue print for collection, measurement and analysis of
data.”

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

For this study Researcher has chosen DESCRIPTIVE research design.

4.5 Sampling:

 Sample Design: Selecting Commodity market for analysis.

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

4.6 Research tools:

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

 Software: Meta stock Professionals

111
 Charts: RSI, MACD, BAR, EMA.

4.7 Data collection:

Secondary data sources:

 Internet

 Books

4.8 Limitation of study:

Below are the five ways that technical analysis can fail.

 Geopolitical events.

 Economic data.

 Natural disasters.

 Acts of terrorism.

 Internal Conflict or war.

112
 CHAPTER 5
DATA ANALYSIS

113
Introduction to Chart of Gold:

 In the chart, First top part is showing Relative Strength Index of Gold for
January 2007 to first week of July 2009.
 The middle part of the chart is showing MACD (Moving Average Convergence
and Divergence) of Gold for January 2007 to first week of July 2009.
 The bottom part of the chart contains three parts as follows.

Bar chart of crude oil for January 2007 to first week of July 2009.
2. (Exponential Moving Average) 30 days EMA (Blue line)
(Short term) and 100 days EMA (Red line) (Long term).
Volume of Gold for the same period.

114
115
116
117
118
  Analysis of Bar Chart and EMA:

 Last week of August 2007

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

The 30 days EMA crosses 100 days EMA from downside by giving a buy signal
at a price of around 9500, which is long-term bullish crossover. The 14 days RSI is
already in strong buy mode, Volumes accompanying the breakout are encouraging,
MACD is also in positive zone and thereby has given the confirmation to a bullish
outlook that led to the sharp high from 9500 to above 13000.

 Last week of November 2008

On the daily chart 30 days EMA is still above the 100 days EMA from upside, by
giving a sell signal at a price of around 13500, which is long-term bullish crossover.
The 14 days RSI is already in strong buy mode, Volumes accompanying the breakout
are encouraging, MACD is also in positive zone and thereby has given the
confirmation to a bullish outlook that led to the sharp high from 13500 to above
16000 high.

 Last week of June 2009

As we see on the chart after accumulating between14000 to 15000 for last 3

months, stock had broken out from trading range with lower volumes and MACD is
going negative and RSI also indicating same thing.

RSI is in the middle range which suggest that Gold is still negatively
pressured, forming consecutive bearish crossover.

119
  Analysis of RSI:

 Sell period:

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

• For year 2007.

1. Whole month of February.

2. Last week December.

• For year 2008.

Last week of January.

Mid week of March.

Last three weeks of September.

Last two weeks of November.

Last week of December.

• For year 2009.

Last week of January.

 Over Bought Zone:

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

• For year 2007.

3. Whole month of September.

4. Last three weeks of October.

5. First week of November.

• For year 2008.

First two weeks of January.

Last week of February.

Mid week of March.

• For year 2009.

Mid week of February.

120
  Buy Period:

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

• For year 2007.

1. First week of January.

2. Last week of April.

3. Last week of June

4. First week of July.

• For year 2008.

1. Ending of March.

2. Ending of April.

3. Second week of September.

• For year 2009.

1. First three week of March.

 Over Sold Zone:

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

• For year 2007.

1. Last three week of May.

• For year 2008.

First two week of April.

• For year 2009.

There is no over sold zone till June 2009.

121
Introduction to Chart of Crude Oil:

 In the chart, First top part is showing Relative Strength Index of Crude oil for
January 2007 to first week of July 2009.
 The middle part of the chart is showing MACD (Moving Average Convergence
and Divergence) of Crude oil for January 2007 to first week of July 2009.
 The bottom part of the chart contains three parts as follows.

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

2. (Exponential Moving Average) 30 days EMA (Blue line) (Short term) and
100 days EMA (Red line) (Long term)

3. Volume of Crude Oil for the same period.

122
123
124
125
126
  Analysis of Bar Chart and EMA:

 Last week of June 2007

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

The 30 days EMA crosses 100 days EMA from downside by giving a buy signal
at a price of 2860, which is long-term bullish crossover. The 14 days RSI is already in
strong buy mode, Volumes accompanying the breakout are encouraging, MACD is
also in positive zone and thereby has given the confirmation to a bullish outlook that
led to the sharp high from 2860 to above 6000.

 Last week of October 2008

On the daily chart 30 days EMA crosses 100 days EMA from upside, by giving a
sell signal at a price of 4600, which is long-term bearish crossover. The 14 days RSI is
already in selling mode as it is heading lower, MACD is in negative zone and Volumes
too are very high showing delivery base selling in market that led to the sharp decline
in price of the script from high 4600 to 1600 low.

 First Week of July 2009

As we see on the chart after accumulating between 2500 to 3500 for last 3
months, stock had broken out from trading range with higher volumes and 30 days
EMA also sustaining above 100 days EMA which again shown a bullish sign. RSI and
MACD both indicators also confirms the signal.
After the 1st target the stock has corrected a bit we recommended to still hold for a
target as July 2008.

127
  Analysis of RSI:

 Sell period:

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

• For year 2007.

1. In last two week of March.

2. Mid week of June.

3. Last week of November and December.

• For year 2008.

First week of January.

Mid week of February.

Whole April month.

First and last of week June.

Last week of July.

• For year 2009.

Last three weeks of March.

First week of May and June.

 Over Bought Zone:

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

• For year 2007.

1. Mid week of July.

2. Second week of September.

3. Last week of October.

4. First week of November.

• For year 2008.

Last week of February.

First two week of March.

128
Whole May month.

• For year 2009.

Last week of May.

Second week of June.

 Buy Period:

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

• For year 2007.

1. First week of March.

2. Third week of August.

3. First week of December.

• For year 2008.

1. Third week of January.

2. Last week of June.

3. Last three weeks of October.

4. Whole November month.

• For year 2009.

1. Mid week of January.

2. Second week of February.

 Over Sold Zone:

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

• For year 2007.

1. First three weeks of January.

• For year 2008.

1. Second week of October.

• For year 2009.

There is no over sold zone till June 2009.

129
 CHAPTER 6
Findings, Conclusions and
suggestions

130
 Findings:
As base on study, there are some findings such as…

 Gold 2007-2009

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

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

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

• Where in 2007 it was highest low.

• And as in last three months of chart May to July 2009; MACD is

continuously going downtrend by showing negative effect. Which suggest
traders and investors should be ready for bearish crossover for future.

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

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

 Crude Oil 2007-2009

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

• And highest low was in staring of 2009.

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

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

• Moreover MACD is in its Positive direction or trend.

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

131
  Conclusions:
Technical analysis has its strengths, most importantly its timeliness. Technical
analysis is concerned with what is actually happening in a market. This discipline
also has its weaknesses, namely its reliance, for the most part, on normal
probabilities and repetition in trading patterns.

It should be remembered that volume can sometimes sputter for reasons

unrelated to market momentum. Volume, for example, is typically light ahead of
market holidays or in the advent of key report or statistical releases.

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

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

In Summary
 Technically, gold's chart indicates:

• Prices: an intermediate-term downtrend following a failure to score new highs

in early July
• RSI: a continuing downtrend
• MACD: a continuing downtrend(negative)
• Volume/Open Interest: a recent shift to bearish sentiment, matching the
strength of the market's previous bullish conviction.
 Technically, Crude oil's chart indicates:

• Prices: an intermediate-term uptrend following a success to score new highs

in early July
• RSI: a continuing uptrend
• MACD: a continuing uptrend (positive)
• Volume/Open Interest: a recent shift to bullish sentiment, matching the
strength of the market's previous bearish conviction.

132
 Suggestions:

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

 In Gold, general trend is going downward, so it is advisable to investors for

making new buy or stop loss.

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

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

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

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

133
  Bibliography:

 Website:

www.bseindia.com

www.nseindia.com

www.mcxindia.com

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

www.investopedia.com/university/technical/

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

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

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

www.jainam.in

www.kitco.com

www.indiamba.com

www.amfiindia.com

 Reference Books:
• Security analysis and portfolio management 14th edition V.K. Bhalla (for
technical analysis)

• Business Research Methodology J.K. Sachdeva Himalaya Publishing

House.

 Software:
Meta Stock Professionals

134
Annexure:

 List of Person Contacted in Organization:

Sr. No. Name Designation Contact No.

1 Mr. Kamlesh Patel Head of Dp 0261-3087011

2 Ms. Vibhati Arya Operator 0261-3087007

3 Mr. Hardik Shah Research Exe. 0261-3087008

4 Mr. Rohan Mehta Research Manager 0261-3087014

5 Mrs. Jigna Patel Researcher 0261-3087014

6 Mrs. Chetna Bhandari Marketing Manager 9925282225

7 Mr. Devesh Shah Commodity Head 0261-3087015

8 Miss Rupal Pachhayaa Trading Officer 0261-3087013

9 Mr. Nikhil Tandel IT Exe. 0261-3087006

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

11 Mr. Dhawal Panchal Customer Care Head 0261-3087009

12 Miss Shital Mehta HR head 0261-3087003

13 Mr. Biranj Patel HR Seniro Exe. 9375798005

135
  Weekly Reports
Week No: 1

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

1. On Thursday (Dt.. 21/5/2009) History of Jainam Share Consultant Pvt. Ltd. &
information about BSE
2. On Friday (Dt. 22/5/2009) Discussion about various department of Jainam
pvt. Ltd.
3. On Saturday (Dt. 23/5/2009) Holiday from organization

Project Report Progress:

1. Some portion of Industry profile.

Submitted To: Varun Dhingra

Date of reporting: 23rd may, 2009

136
Week No: 2

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

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

4. On Tuesday (Dt. 26/5/2009) HR department activities, Role of HR manager
5. On Wednesday (Dt. 27/5/2009) Reading Induction manual
6. On Thursday (Dt. 28/5/2009) Visiting Marketing Department
7. On Friday (Dt. 29/5/2009) Marketing Dept. functions and other information
8. On Saturday (Dt. 30/5/2009) Holiday from organization

Project Report Progress:

1. Some portion of Industry profile.

2. Company profile
3. Department like HR and marketing

Submitted To: Varun Dhingra

Date of reporting: 30th may, 2009

137
Week No: 3

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

2. On Monday (Dt. 1/6/2009) Visiting IT department

3. On Tuesday (Dt. 2/6/2009) Visiting R & D department
4. On Wednesday (Dt. 3/6/2009) Visiting Mutual Fund department
5. On Thursday (Dt. 4/6/2009) Visiting Mutual Fund department
6. On Friday (Dt. 5/6/2009) Discussion of Various topics for Project report
7. On Saturday (Dt. 6/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.
2. Company profile
3. Department like HR and marketing
4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual Fund

Submitted To: Varun Dhingra

Date of reporting: 6th June, 2009

138
Week No: 4

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

8. On Monday (Dt. 8/6/2009) Visiting customer care department

9. On Tuesday (Dt. 9/6/2009) Visiting commodity department
10. On Wednesday (Dt. 10/6/2009) Visiting MCX
11. On Thursday (Dt. 11/6/2009) Visiting DP department
12. On Friday (Dt. 12/6/2009) Visiting KYC department
13. On Saturday (Dt. 13/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.
2. Company profile
3. Department like HR and marketing
4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual Fund
5. Department like (a) Customer care (b) Commodity (c) KYC & DP

Submitted To: Varun Dhingra

Date of reporting: 13th June, 2009

139
Week No: 5

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

14. On Monday (Dt. 15/6/2009) Visiting Security department

15. On Tuesday (Dt. 16/6/2009) Visiting General A/C department
16. On Wednesday (Dt. 17/6/2009) Visiting A/C & Banking Department
17. On Thursday (Dt. 18/6/2009) Visiting Collection department
18. On Friday (Dt. 19/6/2009) Visiting Marketing & Sales Department
19. On Saturday (Dt. 20/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.
2. Company profile
3. Department like HR and marketing
4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual Fund
5. Department like (a) Customer care (b) Commodity (c) KYC & DP

Submitted To: Varun Dhingra

Date of reporting: 20th June, 2009

140
Week No: 6

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

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

21. On Tuesday (Dt. 23/6/2009) study on detailed topic on commodity market
22. On Wednesday (Dt. 24/6/2009) study on detailed topic on commodity market
23. On Thursday (Dt. 25/6/2009) study on detailed topic on commodity market
24. On Friday (Dt. 26/6/2009) study on detailed topic on commodity market
25. On Saturday (Dt. 27/6/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.
2. Company profile
3. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual Fund (e) HR
4. Department like (a) Customer care (b) Commodity (c) KYC & DP

Submitted To: Varun Dhingra

Date of reporting: 27th June, 2009

141
Week No: 7

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

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

27. On Tuesday (Dt. 30/6/2009) study on detailed topic on commodity market
28.On Wednesday (Dt. 01/7/2009) study on detailed topic on commodity market
29. On Thursday (Dt. 02/7/2009) study on detailed topic on commodity market
30.On Friday (Dt. 03/7/2009) study on detailed topic on commodity market
31. On Saturday (Dt. 04/7/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

1. Industry profile.
2. Company profile
3. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual Fund (e) HR
4. Department like (a) Customer care (b) Commodity (c) KYC & DP
5. Collection of Secondary Data.

Submitted To: Varun Dhingra

Date of reporting: 4th July, 2009

142
Week No: 8

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

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

Officer in charge in the company: Mr. Biranj Patel

Contact No: 9375798005

Work completed in this Week:

32. On Monday (Dt.. 6//2009) study on detailed topic on technical analysis of gold
and crude oil
33. On Tuesday (Dt. 7/7/2009) study on detailed topic on technical analysis of gold
and crude oil
34. On Wednesday (Dt. 8/7/2009) study on detailed topic on technical analysis of
gold and crude oil
35. On Thursday (Dt. 9/7/2009) study on detailed topic on technical analysis of gold
and crude oil
36. On Friday (Dt. 10/7/2009) study on detailed topic on technical analysis of gold
and crude oil
37. On Saturday (Dt. 11/7/2009) Holiday from organization

Project Report Progress: (Cumulating Work)

a) Chapter 1 Industry profile

b) Chapter 2 Company profile
c) Chapter 3 Theoretical Framework – Technical analysis
d) Chapter 4 Research , Data collection , data presentation

Submitted To: Varun Dhingra

Date of reporting: 11th July, 2009

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