A synopsis

Submitted by:
Ajay kumar sah Roll. No. 11-MBA-3

Enrollment No. 11-5915 Under the supervision of:

Dr. Taufeeque Ahmad Siddiqui Assistant Professor CENTER FOR MANAGEMENT STUDIES JAMIA MILLIA ISLAMIA

1. NAME / TITLE OF THE PROJECT

Technical analysis of BSE IT sector index and investors perspective Towards IT stocks
2. EXECUTIVE SUMMURY
This Project study discuss about the analysis of BSE IT sector index along with investor perspective toward IT stock and this study explain in brief about various option strategies which is important tool that can use by the investor for analyzing the investment portfolio to obtain detail and valuable insight before making any investment. For successful investment of funds, an investor must have adequate knowledge about the securities market and how the securities traded in the stock market. The investor must be well aware of the historical performance of the stocks and also the trends in the market. Welldefined information about the fluctuations of securities traded in the market helps the investors to invest in the right type of securities at right time.

3. OBJECTIVE AND SCOPE OF THE PROJECT

To analyze the market movement of the IT index by using technical analysis. To explore investors perspective towards the BSE IT sector stocks. To know the implementation of various strategies for technical analysis this can help in generating income for the Investors under various market conditions.

4. LIMITATION OF THE STUDY

The study has been conducted exclusively on the basis of secondary data. Analysis of this project Report is based on the historical data and as such cannot be guarantying any future movement of the stock. Lack of time Complex method of calculation. Difficulty in forecasting market trend.

 Technical analysis is a terrific tool, but it is much more effective when combined with fundamental analysis.

5. REASEARCH METHODOLOGY
The researcher has a wide variety of methods to consider, either singly or in Combination. They can be grouped to as: Primary sources of data. Questionnaire method is used for the survey to know the investors perspective towards IT sector stocks. The questionnaire method is quite effective in getting information. Secondary sources of data. Textbooks: Security Analysis and Portfolio Management by Donald E. Fischer and Ronald J. Jordan (Sixth Edition). Technical Analysis from A to Z by Steven B Achelis (Second Edition). . Stock Market Book Financial Management by I.M. Pandey (Eight Edition). Investment Management by Preeti Singh (Thirteenth Edition). Research Methodology Methods and Techniques . Magazines: Business Today Business World The Week Journals: Newspapers Economic Times Business Line Dalal Street Journal

Websites: www.investopedia.com www.wikipedia.com www.stockcharts.com www.bseindia.com www.economictimes.com www.crownsex.com SAMPLING The sampling method used for the study is convenience sample. SAMPLE SIZE The number of samples used to know the investors perception is thirty (30) and it is collected from the investors who are trading at Cochin Stock Exchange. INSTRUMENTATION TECHNIQUE This dissertation is basically focused on technical analysis of shares in BSE IT sector Index. To get the data, the secondary data source was used. In this study the data was collected from newspapers especially from Economic Times and Business Line. The information related to the IT Index movement is collected from the Cochin Stock Exchange. OTHER SOFTWARE TOOLS USED FOE DATA ANALYSIS Basically whole data analysis has been performed using spreadsheet in Excel by using different statistical functions inbuilt in Excel. The following statistical functions have been employed during the data analysis. Average: Calculates the average of a given data. The Simple Moving Averages of different days are calculated i.e. 10,50.100 and 200 days

TOOLS:
The tools used in for analysis are Momentum Rate of Change Trend lines Simple Moving Average

6. CONCLUSION:
The prime objective of the study is to analyze the market movement of the BSE IT sector index by using technical analysis. For technical analysis of the index different tools are used they are the Momentum, Rate of Change, Trend line and Simple Moving Average. These technical tools help in analyzing the market movement and also they can use these tools to predict the trends in the market. Investors main objective in the share market is to get profit by buying and selling of the securities. Technical analysis helps in predicting the price and it helps the investor to gain benefits. Also the technical analysis provides indicators of different stocks i.e. where the stocks are heading or there exist a bull, bear or stag in the market etc. These indicators help the investors in reducing the risk and to gain better return. Another objective of the study is to explore investors perspective towards the IT stocks. The investors feel good about the sensex new heights and they are optimistic about the trend in the market. Most of the investors analyze the market trends and the past performance of the stocks before them going to invest. The investors are willing to invest in the IT stocks and the majority thinks IT sector stocks will give more returns than other sectors. The investors also rank the IT sector stocks as their second best preference after the Automobile Sector stocks. But majority of the investors are not considering IT as their safer investment option. Finally we can conclude that the Sensex and other Sectoral Indices will continue their good performance and hope it will boost up the Indian economy to make India a super power in the near future.