A Study on

Security Analysis Of Selected stocks

Under Guidence Of
Dr. C.V.Krishna
By
T.Prathap Reddy
15691E0087
Fundamental analysis:
Fundamental analysis is a method of evaluating a security in an

attempt to measure its intrinsic value, by examining related

economic, financial and other qualitative and quantitative
factors.
Technical Analysis:
Technical Analysis is the forecasting of future financial price

movements based on an examination of earlier period price

movements.
Technical analysis is related to stocks, indices, commodities,

futures or any tradable instrument where the price is influenced

by the forces of supply and demand.
Industries Revenue (in US$) CAGR

Financial service industry 206.86 bn 12.4 (2007-2016)

Textile industry 108 bn 13 (2007-2016)

Pharmaceutical industry 36.7 bn 17.46 (2005-2016)

Tourism & Hospitality Industry 136.2 bn 6.8 (2010-2016)

Retail Industry 600 bn 13 (2008-2015)

Company Established Year Headquarters
Bajaj Finance ltd 2007 Pune, Maharashtra
L&T Finance ltd 2006 Kolkata
Sutlej textile & industries ltd 2005 Bhawanimandi, Rajasthan
Garware wall ropes limited 1976 Pune

Sun Pharma 1983 Mumbai

Shilpa Medicare ltd 1987 Raichur, Karnataka
Bata India ltd 1931 Kolkata
Trent ltd 1998 Mumbai
Indian hotels company limited 1902 Mumbai
The Leela Palace ltd 1986 Mumbai
 Before an investor invests in any stock, he needs to be aware
how the stock market behaves. Investing in a good stock but at
a bad time can have disastrous results, while investment in a
mediocre stock at the right time can bear profits. Financial
investors are today facing this problem of trading as they do
not properly understand as to which stocks to buy or which
stocks to sell in order to get optimum profits.
 This study is related to understand and identify the
Overbought and Oversold price levels of the stocks. To help
the investors in making decisions based on report. Analysis
of the stock price movement in the security market.
Today, the thousands of securities available for an investor,
he has to decide on: When to buy , when to sell, where to
invest, how to invest, where hold, Sell or Buy securities?.
These questions need to be answered before the investment
can take place and also determining prospective benefits
from the investment in a security.
 To understand and identify the Overbought and
Oversold price levels as derived from using all the
historical data.
To forecast the trend and provide suitable suggestions
to the investors.
To represent the trend of the stock price through charts
of the technical analysis and fundamental analysis.
 Sampling method:
Non probability sampling method
Convenience sampling
Sampling Size:

Sample size-10 from NSE companies are selected belonging to

5 different industries
Time period:

The period of five years from Jan, 2012 to Dec, 2016 have
been taken to carry out the present study.
Secondary data:

The major source of data collected from NSE India website.

 Null Hypothesis (H0):
There is a no significant relationship between Nifty and
Selected stocks
Alternative Hypothesis (H1):

There is a significant relationship between Nifty and

Selected stocks
 Relative Strength Index: (14 days RSI)
RSI = 100 - 100 / (1 + RS)
RS = Average Gain / Average Loss
Moving Average:
The simple moving average (SMA) is the most basic of the moving
averages used for trading. The simple moving average formula is
calculated by taking the average closing price of a stock over the last x
periods.
Stochastic Oscillator:
= 100(C - L14)/(H14 - L14)
Line Chart:
The most basic of the four 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.
Economic Analysis:
GDP/growth rate
Inflation
Interest rates
Tax rates
FDI/FII
Balance of payments
Industry Analysis:
Key demand drivers
Current demand-supply position
Estimated market size
Industry structure
 Preference dividend cover:
Net Profit after Tax
-------------------------
Preference Dividend
Equity Dividend Cover
Net Profit After Tax Preference Dividend
-------------------------------------------------
Equity Dividend
Dividend Yield On Equity Shares Or Yield Ratio:
Dividend Per Share
--------------------------- X 100
Market Price Per Share
 Price Earning Ratio:
Market Price Per Share
---------------------------
Earnings Per Share
Dividend Pay Out Ratio
Dividend Per Equity Share
-------------------------------
Earnings Per Share
Earnings Per Share (EPS):
Net Profit After Tax Preference Dividend
----------------------------------------------------
Number Of Equity Shares
Net Profit Ratio:
Net Profit
---------------- X 100
Sales
 In this study used to analyze only limited financial
ratios, economic and industry analysis for fundamental
analysis
Technical Analysis is used to predict the stock prices of
the companies.
This security analysis cant be applicable to newly
listed companies script.
Chapter 1 : Industry Profile, Company Profile
Chapter 2 : Theoretical Concepts
Chapter 3 : Research Methodology
Chapter 4 : Data Interpretation and Analysis
Chapter 5 : Summary Findings, Suggestions, Conclusion