OUTLINE FOR THESIS PGDM SEMESTER-IV

SESSION: 2010-2012
AREAS OF SPECIALIZATION : FINANCE

TITLE :

A COMPARATIVE STUDY BETWEEN TECHNICAL ANALYSIS AND FUNDAMENTAL ANALYSIS, A CASE OF WEALTH CREATION ON NIFTY 50.

PROBLEM STATEMENT

(INTRODUCTION TO THE TOPIC)

Investor invests in different class of assets such as equity ,debt, securities, real estate, currency, commodity, derivatives , etc,with the objective of maximizing wealth. There has always been an argument at the time of investment, while selecting a stock that whether stock selection should be based on fundamental analysis or technical analysis, in order to maximize our profit. Fundamental analysts recommendations are based on either top down approach or bottoms up approach. In the case of specific stock selection, different parameters such as companys financial performance and valuation such as P/E, P/B, etc are used as a basis for buying the stock. In the case of stock selection being done by a technical analyst recommendation are based on different technical studies such as chart patterns, Dow Theory, Indicators & Oscillators like MACD,MOVING AVERAGE ,RSI ,etc. Fundamental analyst believes technical is only used and recommended for short term trading and generating brokerage and not for holding a stock for a long duration. On the contrary technical analyst have an opinion that BUY AND HOLD strategy takes off all the profit in a long term because market are unpredictable, hence it is only technical which can be used for timing of entry and exit not only for trading but also for investments. So it has always been a debatable argument and conflict between fundamental analysts and technical analysts. This research paper aims to study the effectives of investment style based on the application of technical and fundamental analysis when used by the investor in the financial market for wealth maximization and risk minimization.

SPECIFIC OBJECTIVES

1. Identifying the parameters for fundamental analysis based stock selection? 2. Identifying the parameters for technical analysis based stock selection? 3. Whether or not the profits provided by technical indicators economically significant and hence outperform simple BUY and HOLD (SBH) based on fundamental analysis?

4. Do some of the technical indicators work better for portfolios formed on specific company characteristics? 5. Are prices determined by rational factors or psychological factors? 6. Do fundamental analysis based trading strategies are feasible for portfolio selection?

RESEARCH METHODOLOGY : (a) Primary Data : Primary data will be collected through a structured questionnaire. The sample size will be 30, who will be the representatives of different brokerage house, mutual fund agency, and analyst.

(b) Secondary Data 1. NSE INDIA 2. BSE

: Secondary data will include various sources such as:

3. MONEY CONTROL 4. REUTERS 5. COMPANY ANNUAL REPORT.

CONTENT OF THESIS 1. Title Page

2. Outline-Approved by the Executive President (Original) 3. Undertaking 4. Acknowledgements 5. Contents 6. Synopsis 7. Introduction 8. Methodology 9. Main analysis/report 10. Observations & Findings 11. Conclusions & Recommendations 12. Limitations of the Study 13. Appendices 14. Bibliography

RECOMMENDATION FOR APPROVAL Guides Signature : _____________________________ Guides Name : Prof. INDERPREET SINGH. OUTLINE APPROVED BY: PROJECT OUTLINE SUBMITTED BY:

Name : VAIBHAV AGRAWAL Roll No.:010-F1-118 Course : PGDM (Finance) RESEARCH DIVISION : Session: 2010-2012

Dr. Jagjit Singh Executive President & Sr. Professor INSTITUTE OF MARKETING & MANAGEMENT B-11, Qutab Institutional Area New Delhi 110 016

Dr. Robert Kr. Das-Pattanayak Professor & COE