Shah Dhwani Jitendra

Fundamental and
Technical Analysis
of Equity Market
Name :- Dhwani Shah Enrollment

No :- 0901202144
Most people get interested in stocks when everyone else is. The
time to get interested is when no one else is. You can‟t buy what
is popular and do well. – Warren Buffett
Fundamental and Technical Analysis of Equity Market
A REPORT
ON
FUNDAMENTAL AND TECHNICAL ANALYSIS
OF EQUITY MARKET
BY
SHAH DHWANI JITENDRA
(0901202144)
SUBMITTED TO:-
Company Guide Mr. Bhavik Shah

Advisory Head
(Angel Broking Ltd)
Faculty Guide Prof. Mayank Patel

IBS Ahmedabad
A Report submitted in partial fulfilment of the requirement of the

MBA Program of
The ICFAI University, Dehradun
DATE OF SUBMISSION: 15th May, 2010
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Authorization
The making of this project report is authorized by Mr Bhavik Shah ( Advisory Head) Angel
Broking Ltd, Ahmedabad (India).
I also express my honest confirmation in support of the fact that the said “Report” has neither
been used before to fulfill any other purpose nor it will be submitted to any other person or
authority in future.
The report is submitted only as partial fulfillment of the requirement of the MBA Program of
ICFAI University, Dehradun.
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Acknowledgements
This research project has been a very enlightening and rewarding experience for me in an
area that is of great personal interest. I would like to acknowledge and express my gratitude
to three groups of people who provided generous amounts of support and cooperation during
this scholarly endeavour.
First, I have benefited greatly from the never-ending patience, guidance, and encouragement
from my company guide Mr. Bhavik Shah. He gave me the support and knowledge required
to complete this project in a successful manner. Thank you Bhavik sir for your never-ending
encouragement and support for my scholarly pursuits. I would also like to thank Mr. Sachin
Rajveer for his constant support and help.
Second, I would like to thank Prof.Mayank Patel my faculty in-charge for providing me all
required support from his side in terms of knowledge and encouragement, for being there
whenever I have a question of doubt and to solve the same.
Lastly, a Special vote of thanks to Prof. Saji Kumar, Prof. Prashant Saxena and My Parents
for solving all the problems I faced in terms of sources required and for giving a constant
encouragement and aspire me to go ahead and fulfil my goals.
"Success in investing doesn't correlate with I.Q. once you're above the level of 25... Once
you have ordinary intelligence, what you need is the temperament to control the urges that
get other people into trouble in investing." - Warren Buffet
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Table of Contents
Authorization ........................................................................................................................ 3
Acknowledgements ............................................................................................................... 4
Abstract ................................................................................................................................ 7
Introduction .......................................................................................................................... 8
Purpose of the Study: ..................................................................................................................... 8
Limitations of the Study: ............................................................................................................... 8
Method of Collecting Data:............................................................................................................ 8
What Is Fundamental Analysis? ..................................................................................................... 9
The Indian Economy: .................................................................................................................. 10
The Industries in the Economy:.................................................................................................... 13
Financial Ratios: .......................................................................................................................... 23
What Is Technical Analysis? ........................................................................................................ 25
ABB. LTD................................................................................................................................... 34
ACC LTD.................................................................................................................................... 35
AMBUJA CEMENT ................................................................................................................... 36
AXIS BANK LTD. ...................................................................................................................... 37
BHARAT HEAVY ELECTRICALS LTD.. ................................................................................. 38
BHARAT PETROLEUM CORPORATION LTD. ....................................................................... 39
BHARTI AIRTEL LTD............................................................................................................... 40
CAIRN LTD. .............................................................................................................................. 41
CIPLA LTD. ............................................................................................................................... 42
DLF LTD. ................................................................................................................................... 43
GAIL (INDIA) LTD. ................................................................................................................... 44
GRASIM INDUSTRIES LTD ..................................................................................................... 45
HCL TECHNOLOGIES LTD. ..................................................................................................... 46
HDFC BANK LTD ..................................................................................................................... 47
HERO HONDA MOTORS LTD. ................................................................................................ 48
HINDALCO INDUSTRIES LTD. ............................................................................................... 49
HINDUSTAN UNILEVER LTD. ................................................................................................ 50
HOUSING DEVELOPMENT FINANCE CORPORATION LTD. .............................................. 51
ITC LTD. .................................................................................................................................... 52
ICICI BANK LTD....................................................................................................................... 53
IDEA CELLULAR LTD. ............................................................................................................ 54
INFOSYS TECHNOLOGIES LTD ............................................................................................. 55
INFRASTRUCTURE DEVELOPMENT FINANCE CO. LTD. ................................................... 56
JAIPRAKASH ASSOCIATES LTD. ........................................................................................... 57
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JINDAL STEEL & POWER LTD. .............................................................................................. 58
LARSEN & TURBO LTD. .......................................................................................................... 59
MAHINDRA & MAHINDRA LTD. ........................................................................................... 60
MARUTI SUZUKI INDIA LTD.................................................................................................. 61
NTPC LTD.................................................................................................................................. 62
OIL & NATURAL GAS CORPORATION LTD. ........................................................................ 63
POWERGRID CORPORATION OF INDIA LTD. ...................................................................... 64
PUNJAB NATIONAL BANK ..................................................................................................... 65
RANBAXY LABORATORIES LTD. ......................................................................................... 66
RELIANCE CAPITAL LTD. ...................................................................................................... 67
RELIANCE COMMUNICATION LTD ...................................................................................... 68
RELIANCE INDUSTRIES LTD. ................................................................................................ 69
RELIANCE INFRASTRUCTURE LTD. ..................................................................................... 70
RELIANCE POWER LTD. ......................................................................................................... 71
SIEMENS LTD. .......................................................................................................................... 72
STATE BANK OF INDIA .......................................................................................................... 73
STEEL AUTHORITY OF INDIA LTD ....................................................................................... 74
STERLITE INDUSTRIES (INDIA) LTD. ............................................................................... 75
SUN PHARMACEUTICAL INDUSTRIES LTD. ....................................................................... 76
SUZLON ENERGY LTD. ........................................................................................................... 77
TATA CONSULTANCY SERVICES LTD. ................................................................................ 78
TATA MOTORS LTD. ............................................................................................................... 79
TATA POWER CO. LTD............................................................................................................ 80
TATA STEEL LTD. .................................................................................................................... 81
UNITECH LTD........................................................................................................................... 82
WIPRO LTD. .............................................................................................................................. 83
Recommendations ............................................................................................................... 84
Glossary .............................................................................................................................. 85
References .......................................................................................................................... 86
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Abstract
Stock Market the word itself is enough to speak about itself. It works on two emotions carried
by individuals in the market greed and fear. Both emotions either lead to profits or losses.
Majority of the participants deal into the market in a speculative manner, buying and selling
based on, following the herd or market hear say. But remain an aware about the key reason
why a particular stock moved up or fell down. If a stock moves suddenly these individuals
say “Operator must have done that” but forget to find out the real reason. The reasons behind
the screen for a company‟s share prices going up or falling down, which are hidden in its
financial performances and past movement history. These facts can be known by the
Fundamental and Technical analysis.
Therefore, this report is intended to guide these new entrants and the current market movers
about Technical and Fundamental Analysis. To show how the same can lead to profit earning
investments and not speculative losses. In this report the basics of Fundamental Analysis
have been discussed and all the financial key ratios have been given for the Nifty50 for the 10
years time span from fiscal year 2000 to 2009. A brief idea about Industry and the over all
economy is also given. On the bases of these Fundamental tools we can get to know the
financial position of a company to back this Technical analysis is also been shown.
Initially a few patterns of technical analysis have been explained with an example and later
how the use of the same can be done to predicts the future price moves and further a few
patterns existing in charts for the current time period have been given.
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Introduction
Purpose of the Study:
Is the Stock Market a safe option to invest my savings? For how much time horizon should I
invest? What amount of returns should I expect? What are the ideal stocks for investment?
This report consists of answers to all these questions which rise in an investors mind before
entering into the stock market or when an existing investor buys a stock.
For this purpose, Fundamental Analysis of Nifty50 is done for which the economic analysis
of the Indian economy is done based on the Inflation Rate, GDPFC, Growth Rate and year on
year returns of Nifty. Then a brief Industry analysis is done based on the Industrial Ratios and
reason behind them. Finally, Company Analysis is done by analysing the Quality of
Management, Product Range of the Company; Financial Strength based certain ratios like
Price to Earnings Ratio, Dividend Yield, Price to Book Value, Earnings per Share, Market
Capitalization and Market Returns.
Following it, Japanese Candle Stick charts showing the chart patters of the market price for
each of the 50 scrips are given based on the technical analysis tools and techniques. As
Fundamental Analysis is only about identifying undervalued stocks or the booming sectors or
companies, but it does not say anything about the timings of the unlocking of that
undervaluation but its combination with Technical Analysis will give a better picture to the
Investor. As the combination of both enables an investor in taking decisions based on
Techno-Funda Analysis and find out the right entry and exit points.
This project will even help in knowing the economy as Nifty is the barometer for the Indian
Economy, through which the growth patterns and cyclical patterns of the various sectors can
also be known, through which scrips of midcap and small can also tracked for the same
sector.
Limitations of the Study:

 .Lesser importance is been given to Economic and Industry Analysis.
 Views for investment have been given for short term.
Method of Collecting Data:
Secondary Data is been used in this project report. This Secondary Data is been collected
from reliable sources like the Company Sites and the NSE Site for the Company Data and
Indian Bullion, Reserve Bank Of India, and Fimmda Sites for the Industry and Economic
Data and for Technical Charts i.charts is been used. Detailed information about the sources is
been given in referencing.
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What Is Fundamental Analysis?

Fundamental analysis is a method of evaluating a security that entails attempting to
measure its intrinsic value by examining related economic, financial and other qualitative and
quantitative factors. Fundamental analysis is an attempt to study everything that can affect
the security's value; including macroeconomic factors (like the overall economy and industry
conditions) and company-specific factors (like financial condition and management).There
are two approaches to Fundamental Analysis Top-Down Approach and a Bottom-Up
Approach.
 Top-down approach: In this approach, an analyst investigates both international and
national economic indicators, such as GDP growth rates, energy prices, inflation and
interest rates. The search for the best security then trickles down to the analysis of
total sales, price levels and foreign competition in a sector in order to identify the best
business in the sector.
 Bottom-up approach: In this approach, an analyst starts the search with specific
businesses, irrespective of their industry/region.
The end goal of performing fundamental analysis is to produce a value that an investor can
compare with the security's current price, with the aim of figuring out what sort of position to
take with that security (underpriced=buy, overpriced= sell or short).
Benefits of Fundamental Analysis:
 Identifying the intrinsic value of a security.
 Identifying long term investment opportunity, as it involves real time data.
Drawbacks of Fundamental Analysis:

 Too many economic indicators and extensive macroeconomic data can confuse novice
investors.
 The same set of information on macroeconomic indicators can have varied effects on
the same currencies at different times.
 It is beneficial only for long term investments.
Steps involved in Fundamental Analysis:
 Macroeconomic analysis, which involves considering currencies, commodities and
indices.
 Industry sector analysis, which involves the analysis of companies that are a part of
the sector.
 Financial analysis of the company.
Valuation of any security is done through the discounted cash flow (DCF) model, which
takes into consideration:
 Dividends received by investors.
 Earnings or cash flows of a company.
 Debt, which is calculated by using the debt to equity ratio and the current ratio
(current assets/current liabilities).
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The Indian Economy:

To understand the Indian Economy firstly we need to understand a few macroeconomic
indicators, as macro economy is the environment in which all the firms operate. These
indicators suggest the growth and development prospects of an economy as a whole. Given
below are the indicators along with a brief description about them and even figures
suggesting where the Indian Economy stands as per these indicators.
Gross Domestic Product (GDP): The India GDP statistics is a summarization of all the
differential factors that forms the basic foundation of the Indian economy. The India GDP
statistics is a cumulative report of the performance of all the major parameters of the Indian
economy. The statistics of the India GDP clearly reveals that the rise of the India GDP after
the 1990s was due to the open economy phenomenon. The paradigm shift of Indian economy
from that of a closed-market to open market was during the balance-of-payments crisis in the
late „80s. The Government of India remained flexible – it opened up the Indian markets such
that private investments could easily find an entry.
GDP calculated at purchaser‟s price is the total value calculated by all the domestic
producers, adding any product taxes and deducting the subsidies, if any (these elements are
excluded from the value of the products).
Due to the change in the economic policy of India, more foreign direct investments (FDIs)
and foreign institutional investors (FIIs) came into the country. This, in a way, strengthened
the foundation the Indian economy the confidence index of overseas investors was at a high.
GDP - real growth rate (%) 9.2 9

10 8.3 8.4
7.4
8 6 6.2
5.5
6 4.3 4.3
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
With the stupendous growth of Indian Information Technology sector, Indian service industry
and the Indian BPO sector, the Indian GDP shot up to 6% during the period from 1988 to
2003. It was after 2004, that the growth of the gross domestic product of India showed
considerable improvements, mainly geared by the growth in the Indian service and
manufacturing industry. The Indian GDP figure stood at an extraordinary 8.5% during the
period thereafter. But thereafter, what hit us was the global meltdown and it‟s after impacts.
India got swayed off; the immediate repercussion fell on the growth pattern of the India
economy. The GDP growth rate started getting a setback and from then on it had only
experienced a downward pattern. A dramatic improvement might not be expected, but a slow
and steady growth path is surely desirable.
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Inflation: Inflation means a persistent rise in the price levels of commodities and services, leading to
a fall in the currency‟s purchasing power. Inflation Rate is the measure of inflation over a period of
time. Inflation rate is calculated for any time period weekly, monthly or annual.
The rising figures show us an increase in the rate of goods and services and a fall in the purchasing
power of the consumer with the same level of incomes. Therefore an individual must invest keeping
in mind the future rise in prices. Increasing inflation is really bad for retirement planning because the
target keeps on getting higher and higher to pay for the same quality of life. In other words, your
savings will buy less. As a result, you will need to save more today to pay for higher priced
goods and services in the future. Since everything you buy today costs more, so you have less
left-over income available to save.
Inflation rate (consumer prices) (%)

10 8.3
8 6.7 6.4
5.4 5.4 5.4 5.3
6 3.8 4.2 4.2
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Inflation has another effect too, once people start to expect inflation, they will spend now
rather than later. That's because they know things will only cost more lately. This consumer
spending heats up the economy even more, leading to further inflation. This situation is
known as spiraling inflation because it spirals out of control.
Inflation is important if you are holding bonds or Treasury notes. These fixed price assets
only give a fixed return each year. As inflation spirals faster than the return on these assets,
they become less valuable.Price Inflation greatly effects time value of money (TVM). It is a
major component of interest rates which are at the heart of all TVM calculations. Actual or
anticipated changes in the inflation rate cause corresponding changes in interest rates.
Lenders know that inflation will erode the value of their money over the term of the loan so
they increase the interest rate to compensate for that loss.
Nifty: India is a land of many cultures and languages. Its vibrancy and quest for growth
throws up as many questions as it throws up new answers. With globalization people are
constantly seeking broader horizon of knowledge and information. How much has the
country prospered? How well is the economy doing? Nifty is the platform on which India
finds these answers.
The Nifty Index is a composite of the top 50 stocks listed on the National Stock Exchange
(NSE). It is a simplified tool that helps investors and ordinary people alike, to understand
what is happening in the stock market and by extension, the economy. If the Nifty Index
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performs well, it is a signal that companies in India are performing well and consequently
that the country is doing well. An upbeat economy is usually reflected in a strong
performance of the Nifty Index. A rising index is also indicative that the investors are
positive about the future.
The Nifty Index is based upon solid economic research. It is internationally respected and
recognized as a pioneering effort in providing simpler understanding of stock market
complexities. Nifty is the flagship index of NSE, the 3rd largest stock exchange in the world
in terms of number of transactions (Stock Futures). Nifty has been used to represent S&P
CNX Nifty, owned and managed by India Index Services and Products Ltd. (IISL), a joint
venture between NSE and CRISIL.
 Nifty index can be used by individuals to track market movements and compare
performance of individual companies‟ vis-à-vis market performance.
 Shareholders evaluation of management decisions - performance of a company vis-à-
vis the market generally reflects the perception of the investor.
 Assist traders and market intermediaries to evaluate performance and sentiments
across the market.
 Index funds can replicate Nifty indices to earn market returns.
 Derivative trading - Investors can use Nifty indices for hedging their exposures in the
equity markets.
Benchmarking NAV performances - Nifty is the benchmark for performance of open ended
and close ended funds.
Nifty Returns (%)

100.00 81.29
67.13 73.59
80.00
60.00 41.19
40.00 23.94
14.91 12.29
20.00 -1.62
0.00 -13.42
-24.89 -36.21
-20.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-40.00
-60.00
Given above, are the annual returns of S&P CNX Nifty. In the fiscal year „03-„04 and „05-‟06
Nifty has given annual returns of 81.29% and 67.13%.
In the year ‟08-‟09 the time of Global Meltdown Nifty showed strength as compared to the
global markets(NASDAQ) and showed instant recovery and rose up to 73.59% in the fiscal
year ‟09-‟10.
Page | 12
The Industries in the Economy:

IT Industry: The Indian information technology (IT) industry has played a major role in
placing India on the international map. The industry is mainly governed by IT software and
facilities for instance System Integration, Software experiments, Custom Application
Development and Maintenance (CADM), network services and IT Solutions. According to
Nasscom's findings Indian IT-BPO industry expanded by 12% during the Fiscal year 2009
and attained aggregate returns of US$ 71.6 billion. Out of the derived revenue US$ 59.6
billion was solely earned by the software and services division. Moreover, the industry
witnessed an increase of around US$ 7 million in FY 2008-09 i.e. US$ 47.3 billion against
US$ 40.9 billion accrued in FY 2008-09
IT Outsourcing in India: As per NASSCOM, IT exports in business process outsourcing
(BPO) services attained revenues of US$ 48 billion in FY 2008-09 and accounted for more
than 77% of the entire software and services income. Over the years India has been the most
favorable outsourcing hub for firm on a lookout to offshore their IT operations. The factors
behind India being a preferred destination are its reasonably priced labor, favorable business
ambiance and availability of expert workforce. Considering its escalating growth, IBM has
plans to increase its business process outsourcing (BPO) functions in India besides employing
5,000 workforces to assist its growth. In the next few years, the industry is all set to witness
some multi-million dollar agreements namely:
 A 5 year agreement between HCL Technologies and News Corp for administering its
information centers and IT services in UK. As per the industry analysts, the pact is
estimated to be in the range of US$ 200-US$ 250 million
 US$ 50 million agreement between HCL Technologies and Meggitt, UK-based
security apparatus manufacturer, for offering engineering facilities.
 Global giant Wal-Mart has short listed there Indian IT dealers namely Cognizant
Technology Solutions, UST Global and Infosys Technologies for a contract worth
US$ 600 million.
India's domestic IT Market: India's domestic IT Market over the years has become one of the
major driving forces of the industry. The domestic IT infrastructure is developing contexts of
technology and intensity of penetration.
In the FY 2008-09, the domestic IT sector attained revenues worth US$ 24.3 billion as
compared to US$ 23.1 billion in FY 2007-08, registering a growth of 5.4%. Moreover, the
increasing demand for IT services and goods by India Inc has strengthened the expansion of
the domestic market with agreements worth rising up extraordinarily to US$ 100 million. By
the FY 2012, the domestic sector is estimated to expand to US$ 1.7 billion against the
existing from US$ 1 billion.
Government initiative in India's domestic IT Market:
 The Indian government has established a National Taskforce on IT with an aim of
formatting a durable National IT Policy for India
 Endorsement of the IT Act, which offers an authorized structure to assist electronic
trade and electronic operations.
Major investments in India's domestic IT Market:
 According to Andhra Pradesh Government the state's SEZs and Software Technology
Parks of India (STPI) will witness an investment of US$ 3.27 billion in the next few
years.
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 VMware Inc, San Francisco-based IT firm is looking forward to invest US$ 100
million by 2010 in India.
 EMC Corporation's total Indian assets is expected to reach US$ 2 billion by 2014
Future of Indian IT Industry: The Indian IT sector persists to be one of the flourishing sectors
of Indian financial system indicating a speedy expansion in the coming years. As per
NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion by 2020 out of
which the domestic sector will account for US$ 50 billion in earnings. In total the export and
domestic IT sector are expected to attain profits amounting to US$ 225 billion along with
new prospects from BRIC nations and Japan for its outsourcing operations.
Software Industry: It's the technological revolution that at times brings surprising
opportunities for some nations. India, though not among the front runners in terms of
economic growth, has successfully utilized such opportunities in the revolution to become an
IT hotspot. For the past several years, India has been an increasingly favored destination for
customized software development. As a result, a number of software companies in India have
come up. Not only the number of players has increased in the Indian IT market, but at the
same time, Indian software companies have done considerably well in the global market.
Such huge success of software companies in India has given birth to a new speculation –
whether other developing countries should imitate Indian example and whether the success of
India would constitute a competitive challenge to the software industry of the developed
world or not.
The Software Industry in India: With the huge success of the software companies in India, the
Indian software industry in turn has become successful in making a mark in the global arena.
This industry has been instrumental in driving the economy of the nation on to a rapid growth
curve. As per the study of NASSCOM-Deloitte, the contribution of IT/ITES industry to the
GDP of the country has soared up to a share of 5% in 2007 from a mere 1.2% in 1998.
Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33%
in the fiscal year ended in 2008.
The export of software has also grown up, which has been instrumental in the huge success of
the Indian software companies as well as the industry. In fact, software export from India
accounts for more than 65% of the total software revenue. The domestic software market
largely depends upon sale of software packages and products, which constitute major part of
revenues. Products account for almost 40% of the domestic market. On the other hand, more
than 80% of revenue from software exports comes from software services like custom
software development and consultancy services etc.
Reasons behind Success of Indian software companies: There are a number of reasons why
the software companies in India have been so successful. Besides the Indian software
companies, a number of multinational giants have also plunged into the India IT market.
India is the hub of cheap and skilled software professionals, which are available in
abundance. It helps the software companies to develop cost-effective business solutions for
their clients. As a result, Indian software companies can place their products and services in
the global market in the most competitive rate. This is the reason why India has been a
favorite destination for outsourcing as well. Many multinational IT giants also have their
offshore development centers in India.
IT Business Sectors: Most of the software companies in India are into varied types of
business. There can be several types of business in the IT sectors:
 Infrastructure Software: These include OS, middleware and databases.
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 Enterprise Software: These automate business process in diverse verticals like

finance, sales and marketing, production and logistics.
 Security Software
 Industry-specific Software
 Contract Programming
Top Companies in India: There are plenty of software companies in India which have been
doing well. However, some of the top Indian software companies can be listed as:
 Tata Consultancy Services
 Wipro Limited
 Infosys
 HCL Technologies
 Tech Mahindra
 Patni Computer Systems
 i-flex Solutions
 MphasiS
 L&T Infotech
 IBM India
Banking Industry: The growth in the Indian Banking Industry has been more qualitative
than quantitative and it is expected to remain the same in the coming years, based on the
projections made in the "India Vision 2020" prepared by the Planning Commission and the
Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks
is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010
are estimated at Rs 40, 90,000 crores. That will comprise about 65 per cent of GDP at current
market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an
annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate
of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be
large additions to the capital base and reserves on the liability side.
The Indian Banking Industry can be categorized into non-scheduled banks and scheduled
banks. Scheduled banks constitute of commercial banks and co-operative banks. There are
about 67,000 branches of Scheduled banks spread across India. As far as the present scenario
is concerned the Banking Industry in India is going through a transitional phase.
The Public Sector Banks (PSBs), which are the base of the Banking sector in India account
for more than 78 per cent of the total banking industry assets. Unfortunately they are
burdened with excessive Non Performing assets (NPAs), massive manpower and lack of
modern technology. On the other hand the Private Sector Banks are making tremendous
progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far
as foreign banks are concerned they are likely to succeed in the Indian Banking Industry.
In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank,
ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and
banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank,
Oriental Bank, Allahabad Bank among others. ANZ Grind lays Bank, ABN-AMRO Bank,
American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian
Banking Industry.
Cement Industry: The history of the cement industry in India dates back to the 1889 when a
Kolkata-based company started manufacturing cement from Argillaceous. But the industry
Page | 15
started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd
was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed.
The World War I gave the first initial thrust to the cement industry in India and the industry
started growing at a fast rate in terms of production, manufacturing units, and installed
capacity. This stage was referred to as the Nascent Stage of Indian Cement Industry. In 1927,
Concrete Association of India was set up to create public awareness on the utility of cement
as well as to propagate cement consumption.
The cement industry in India saw the price and distribution control system in the year 1956,
established to ensure fair price model for consumers as well as manufacturers. Later in 1977,
government authorized new manufacturing units (as well as existing units going for capacity
enhancement) to put a higher price tag for their products. A couple of year‟s later;
government introduced a three-tier pricing system with different pricing on cement produced
in high, medium and low cost plants.
Cement industry, in any country, plays a major role in the growth of the nation. Cement
industry in India was under full control and supervision of the government. However, it got
relief at a large extent after the economic reform. But government interference, especially in
the pricing, is still evident in India. In spite of being the second largest cement producer in
the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The
reason behind this is the poor rural people who mostly live in mud huts and cannot afford to
have the commodity. Despite the fact, the demand and supply of cement in India has grown
up. In a fast developing economy like India, there is always large possibility of expansion of
cement industry.
Cement Production and Growth: Domestic demand plays a major role in the fast growth of
cement industry in India. In fact the domestic demand of cement has surpassed the economic
growth rate of India. The cement consumption is expected to rise more than 22% by 2009-10
from 2007-08. In cement consumption, the state of Maharashtra leads the table with 12.18%
consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh
leads the list with 14.72% of production, while Rajasthan remains at second position. The
production of cement in India grew at a rate of 9.1% during 2006-07 against the total
production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the
production of cement in India was 101.04 MT comparing to 95.05 MT during the same
period in the previous year. During October 2009, the total cement production in India was
12.37 MT compared to a production of 11.61 MT in the same month in the previous year.
The cement companies are also increasing their productions due to the high market demand.
The cement companies have seen a net profit growth rate of 85%. With this huge success, the
cement industry in India has contributed almost 8% to India's economic development.
Technology Up-gradation: Cement industry in India is currently going through a
technological change as a lot of up-gradation and assimilation is taking place. Currently,
almost 93% of the total capacity is based entirely on the modern dry process, which is
considered as more environment-friendly. Only the rest 7% uses old wet and semi-dry
process technology. There is also a huge scope of waste heat recovery in the cement plants,
which lead to reduction in the emission level and hence improves the environment.
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Recent Investments in the Indian Cement Industry
 In a recent announcement, the second largest cement company in South India, Dalmia
Cement declared that it's going to invest more than US$ 652.6 million in the next 2-3
years to add 10 MT capacities.
 Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a
total capacity of yearly 20 MT in the next 5 years. For this, the company will invest
US$ 2.1 billion.
 India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil
Nadu at a cost of US$ 104 billion.
 Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated
cement plant in Maharashtra. It will invest US$ 463.2 million for that.
 Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development
Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$
221.36 million.
 Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT
cement plant in Orissa.
Automobile Industry: Driving the most luxurious car has been made possible by the stiff
competition in the automobile industry in India, with overseas players gathering the same
momentum as the domestic participants.
Every other day, we have been hearing about some new launches, some low cost cars – all
customized in a manner such that the common man is not left behind. In 2009, the automobile
industry is expected to see a growth rate of around 9%, with the disclaimer that the auto
industry in India has been hit badly by the ongoing global financial crisis.
The automobile industry in India happens to be the ninth largest in the world. Following
Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of
automobiles. Several Indian automobile manufacturers have spread their operations globally
as well, asking for more investments in the Indian automobile sector by the MNCs.
The figures show that the automobile sector in India has been growing robustly. The market
shares of the different types of vehicles will clearly depict the demand pattern in this sector.
16% Domestic Market Share for 2008-09

4%
4% Passenger Vehicles
Commercial Vehicles
Three Wheelers
76% Two Wheelers
Aluminum Industry: Aluminum Industry in India is a highly concentrated industry with the
top 5 companies constituting the majority of the country's production. With the growing
Page | 17
demand of aluminum in India, the Indian aluminum industry is also growing at an enviable
pace. In fact, the production of aluminum in India is currently outpacing the demand.
Though India's per capita consumption of aluminum stands too low (under 1 kg) comparing
to the per capita consumptions of other countries like US & Europe (range from 25 to 30
kgs), Japan (15 kgs), Taiwan (10 kgs) and China (3 kgs), the demand is growing gradually. In
India, the industries that require aluminum most include power (44%), consumer durables,
transportation (10-12%), construction (17%) and packaging etc.
The Background: Though the existence of Aluminum was first established in the year 1808, it
took almost 46 years to make its production commercially viable. The research work of
several years resulted in extracting the aluminum from the ore. Aluminum is third most
available element in the earth constituting almost 7.3% by mass. Currently it is also the
second most used metal in the world after steel. Due to the consistent growth of Indian
economy at a rate of 8%, the demand for metals, used for various sectors, is also on the
higher side. As a result, the Indian aluminum industry is also growing consistently. In FY09,
the aluminum industry in India saw a growth of about 9%.
The production of aluminum started in India in 1938 when the Aluminum Corporation of
India's plant was commissioned. The plant which was set up with a financial and technical
collaboration with Alcan, Canada had a capacity of producing 2,500 ton per annum.
Hindustan Aluminum Corporation (Hindalco) was set up in UP in the year 1959; it had a
capacity of producing 20,000 ton per annum. In 1965, a public sector enterprise Malco which
had a capacity of 10,000 ton per annum was commissioned; by 1987, National Aluminum
Company (NALCO) was commissioned to produce aluminum. It had a capacity of producing
0.218 million ton.
During the 1970s, the government started regulating and controlling the Indian aluminum
industry. Restrictions in entry and price distribution controls were quite common in the
Indian aluminum sector. Aluminum Control Order was implemented where the aluminum
producers had to sell 50% of their products for electrical usages. However, in 1989, the order
was removed as the government decontrolling was revoked. With de-licensing of industry in
1991, the liberal import of technologies and capital goods was started. The liberalization
resulted in a growth rate of 12% of the industry, comparing to the growth rate of 6% during
the 1980.
Aluminum Production in India: India is world's fifth largest aluminum producer with an
aluminum production competence of around 2.7 million tones, accounting almost 5% of the
total aluminum production in the world. India is also a huge reservoir of Bauxite with a
Bauxite reserve of 3 billion tones.
The Production: India lies at the eighth position in the list of leading primary aluminum
producers in the world. India saw a significant growth in aluminum production in the past
five years. In 2006-07, the production target of aluminum in India laid by the Ministry of
Mines, Government of India was 1,153 KT, which was augmented to 1,237 KT in the next
year (2007-08). Due to the growing demand from the construction, electrical, automobiles
and packaging industry, the production of aluminum also hiked up. In FY 09, the total
aluminum production in India was around 1.35 tones.
The Consumption: After a stagnant consumption of primary aluminum in India from the end
of 1990s to 2002 (when the consumptions were between 500 – 600 KT), it started rising
sharply since 2002. The consumption reached at 1,080 KT in 2006. The consumption of
aluminum in India is dominated by the industries like power, infrastructure, and
transportation etc.
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The Major Players: The Indian aluminum industry is dominated by four or five companies
that constitute the majority of India's aluminum production. Following are the major players
in the Indian aluminum industry:
 Hindustan Aluminum Company (HINDALCO): Hindalco is the biggest player in the

aluminum industry in India with around 39% of market share. An Aditya Birla Group
flagship company, Hindalco has its aluminum plant at Renukoot in Uttar Pradesh. It
has various aluminum products with a market share of 42% in primary aluminum,
20% in extrusions 63% in rolled products, 31% in wheels and 44% in foils.
 Sterlite Industries: The aluminum business of Sterlite Industries Limited comprises of
two Indian aluminum giants – BALCO and MALCO. While BALCO is a partially
integrated, MALCO is a fully integrated producer of aluminum. Sterlite has got a
market share of around 32%.
 National Aluminum Company (NALCO): It is also one of the leading aluminum
producers in India. Government of India has a stake of 87.15% in this company. Its
aluminum refinery is located at Damanjodi. It also has a smelter located at Angul,
Orissa. Currently, NALCO is concentrating on a capex programme to increase its
production from 345,000 tones to 460,000 tones.
 Bharat Aluminum Company (BALCO)
 MALCO
 JINDAL
Telecommunications Industry: The Communication Industry in India is one of the rapidly
emerging sectors in India and is estimated to surface as the second biggest international
telecom market. As per the report carried out by Telecom Regulatory Authority of India
(TRAI), Indian communication industry has registered a 3.5% increase in its total telecom
subscribers in December 2009. The sector touched 562.21 million in its total number of
subscribers within a month, against 543.20 million in November 2009.
The growth in communication industry was triggered by an increase in the revenues
generated from both landline and mobile facilities. On December 31, 2009 the sector earned
the revenue of USD 8.56 billion. As per the Business Monitor International report, the nation
is all set to include 8 to 10 million cellular phone subscribers on monthly basis. At this pace
the communication industry is expected to encompass more than half of India's population
i.e. 612 million cellular phone subscribers by mid 2012.
In addition, as per a research carried out by Nokia, the Telecommunications sector is
estimated to surface as the biggest driving component in India's GDP with a contribution of
about 15.4% by the FY2014.
India as an emerging Value-Added Services Market: As per a research conducted by Stanford
University, Indian mobile value-added services (MVAS) are expected to reach USD 2.74 bn
by the FY2010. To benefit from the emerging MVAS market in India, Reliance
Telecommunications and Bharti Airtel Limited are all set to introduce online cellular phone
applications in Indian retail stores. While Bharti Airtel will offer around 1,250 applications,
Reliance Telecommunications' applications will soon be accessible to its GSM customers by
Feb 2010.
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India as an emerging telecom equipment manufacturing Market: The manufacturing of

Cellular phone in India is predicted to expand at an annual rate of 28.3% till the FY 2011
which can be translated as a production of 107 million mobile handsets by 2010. The
production would automatically generate profits and is predicted to increase at an annual rate
of 26.6% till 2011, reaching the target of USD13.7 billion.
Chief Investments in the Communication Industry in India: Over the past one decade, the
flourishing Indian Communication industry has been successful in drawing the attention of
conglomerates that have invested and are willing to invest more in the sector. With the influx
of new telecom giants in Indian market, the investments are likely to gain immense
momentum:
 Investment of USD 6 bn by Vodafone Essar for the next 3 fiscal years in order to
expand its list of cellular phone subscribers to 100 million against the existing 40
million.
 By 2010, Reliance Communications (RCom) is expecting to increase the total number
of telecom towers by constructing 56,596 telecom towers and attaining the preset
target of 100,000.
 Telenor, Norway based telecom giant has purchased 7% of shares in Unitech Wireless
and now possesses 67.25% by bringing in an investment of USD 431.70 million
 Indian government owned telecom player, BSNL will invest USD1.17 billion in its
WiMax scheme
 A proposal of foreign direct investment worth USD 660.1 million by Federal Agency
for State Property Management of the Russian Federation has been recently approved
by the Indian government. The Agency would be acquiring 20% stake in Sistema-
Shyam after bringing in the investment.
 A USD 1 billion investment will be brought in by Tata Teleservices in its newly
introduced GSM facility Tata DoCoMo.
Future of Communication Industry in India: Indian Communication Industry has a
flourishing future in its value-added services market. The pre-set target of the 11th plan from
FY 2007 - 12 is to provide 600 million cellular phone connectivity aided by an investment of
USD 74 billion. Moreover, it is estimated that by the FY 2012 the profits generated by Indian
Communication Industry will touch USD 55 billion against the current USD 31 billion.
Pharma Industry: The pharmaceutical industry in India is among the most highly organized
sectors. This industry plays an important role in promoting and sustaining development in the
field of global medicine. Due to the presence of low cost manufacturing facilities, educated
and skilled manpower and cheap labor force among others, the industry is set to scale new
heights in the fields of production, development, manufacturing and research. In 2008, the
domestic pharma market in India was expected to be US$ 10.76 billion and this is likely to
increase at a compound annual growth rate of 9.9 per cent until 2010 and subsequently at 9.5
per cent till the year 2015.
Industry Trends:
 The pharma industry generally grows at about 1.5-1.6 times the Gross Domestic
Product growth
 Globally, India ranks third in terms of manufacturing pharma products by volume
 The Indian pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010
and after that 9.5 % till 2015
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 In 2007-08, India exported drugs worth US$7.2 billion in to the US and Europe
followed by Central and Eastern Europe, Africa and Latin America
 The Indian vaccine market which was worth US$665 million in 2007-08 is growing at
a rate of more than 20%
 The retail pharmaceutical market in India is expected to cross US$ 12-13 billion by
2012
 The Indian drug and pharmaceuticals segment received foreign direct investment to
the tune of US$ 1.43 billion from April 2000 to December 2008
Challenges: Every industry has its own sets of advantages and disadvantages under which
they have to work; the pharmaceutical industry is no exception to this. Some of the
challenges the industry faces are:
 Regulatory obstacles
 Lack of proper infrastructure.
 Lack of qualified professionals
 Expensive research equipments
 Lack of academic collaboration
 Underdeveloped molecular discovery program
 Divide between the industry and study curriculum
Government Initiatives: The government of India has undertaken several including policy
initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the
measures adopted are:
 Pharmaceutical units are eligible for weighted tax reduction at 150% for the research
and development expenditure obtained.
 Two new schemes namely, New Millennium Indian Technology Leadership Initiative
and the Drugs and Pharmaceuticals Research Program have been launched by the
Government.
 The Government is contemplating the creation of SRV or special purpose vehicles
with an insurance cover to be used for funding new drug research
 The Department of Pharmaceuticals is mulling the creation of drug research facilities
which can be used by private companies for research work on rent
Pharma Export: In the recent years, despite the slowdown witnessed in the global economy,
exports from the pharmaceutical industry in India have shown good buoyancy in growth.
Export has become an important driving force for growth in this industry with more than 50
% revenue coming from the overseas markets. For the financial year 2008-09 the export of
drugs is estimated to be $8.25 billion as per the Pharmaceutical Export Council of India,
which is an organization, set up by the Government of India. A survey undertaken by FICCI,
the oldest industry chamber in India has predicted 16% growth in the export of India's
pharmaceutical growth during 2009-2010.
Key Players in the Industry: There are several national and international pharmaceutical
companies that operate in India. Most of the country's requirements for pharmaceutical
products are met by these companies. Some of them are briefly described below:
 Ranbaxy Laboratories Limited is the biggest pharmaceutical manufacturing
company in India. The company is ranked at the 8th position among the global
generic pharmaceutical companies and has presence in 48 countries including
world class manufacturing facilities in 10 countries and serves to customers from
over 125 countries. Ranbaxy Laboratories 2009-2010 Q3 Net Profit Results
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showed a profit of Rs 116.6 crores as compared to Rs 394.5 crores deficit,

recorded during the corresponding period last fiscal.
 Dr. Reddy's Laboratories manufactures and markets a wide range of
pharmaceuticals both in India and abroad. The company has 60 active
pharmaceutical ingredients to manufacture drugs, critical care products, diagnostic
kits and biotechnology products. The company has 6 FDA plants that produce
active pharma ingredients and 7 FDA inspected and ISO 9001 and ISO 14001
certified plants. Dr. Reddy's Q1 FY10 result shows the revenues of the company
at Rs. 18,189 million which is up by 21%. During this quarter the company
introduced 24 new generic products, applied for 22 new generic product
registrations and filed 4 DMFs.
 Cipla is an Indian pharmaceutical company renowned for the manufacture of low
cost anti AIDS drugs. The company's product range comprises of anthelmintics,
oncology, anti-bacterial, cardiovascular drugs, antibiotics, nutritional
supplements, anti-ulcerants, anti-asthmatics and corticosteroids. Cipla also offers
other services like quality control, engineering, project appraisal, plant supply,
consulting, commissioning and know-how transfer, support. For the financial year
2008-09 the company registered an increase of 22% in sales and other income
over the previous year.
 Nicholas Piramal is the second largest pharmaceutical healthcare company in
India. The brands manufactured by the company include Gardenal, Ismo, Stemetil,
Rejoint, Supradyn, Phensedyl and Haemaccel. Nicholas Piramal has entered into
join ventures and alliances with several international corporations like Cheissi,
Italy; IVAX Corp; UK, F. Hoffmann-La Roche Ltd., Allergan Inc., USA etc.
 Glaxo Smithkline (GSK) is a United Kingdom based pharma company; it is the
world's second largest pharmaceutical company. The company's portfolio of
pharma products consist of central nervous system, respiratory, oncology,
vaccines, anti-infectives and gastro-intestinal/metabolic products among others.
On November 2009, the FDA had announced that the H1N1 vaccine
manufactured by GSK would join the list of the four vaccines approved.
 Zydus Cadila also known as Cadila Healthcare is an Indian pharmaceutical
company located in Gujarat. The company's 1QFY2010 results show the net sales
at Rs880.3cr which is higher than the estimated Rs773cr. The net profit was
Rs124.8cr which was increase of 39%; the increase was on account of higher sales
and improvement in the OPM.
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Financial Ratios:
Earnings per Share( EPS): The portion of a company's profit allocated to each outstanding
share of common stock. Earnings per share serves as an indicator of a company's
profitability. Calculated as :
When calculating, it is more accurate to use a weighted average number of shares outstanding
over the reporting term, because the number of shares outstanding can change over time.
An important aspect of EPS that's often ignored is the capital that is required to generate the
earnings (net income) in the calculation. Two companies could generate the same EPS
number, but one could do so with less equity (investment) - that company would be more
efficient at using its capital to generate income and, all other things being equal, would be a
"better" company. Investors also need to be aware of earnings manipulation that will affect
the quality of the earnings number. It is important not to rely on any one financial measure,
but to use it in conjunction with statement analysis and other measures.
Price to Book Value (P/B): A ratio used to compare a stock's market value to its book value.
It is calculated by dividing the current closing price of the stock by the latest quarter's book
value per share. Also known as the "price-equity ratio". Calculated as:
A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that
something is fundamentally wrong with the company. As with most ratios, be aware that this
varies by industry. This ratio also gives some idea of whether you're paying too much for
what would be left if the company went bankrupt immediately.
Price to Earnings Ratio (P/E): A valuation ratio of a company's current share price
compared to its per-share earnings. Calculated as:
For example, if a company is currently trading at Rs.43.00 a share and earnings over the last
12 months were Rs 1.95 per share, the P/E ratio for the stock would be 22.05 (Rs43/Rs1.95).
In general, a high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the
whole story by itself. It's usually more useful to compare the P/E ratios of one company to
other companies in the same industry, to the market in general or against the company's own
historical P/E. It would not be useful for investors using the P/E ratio as a basis for their
investment to compare the P/E of a technology company (high P/E) to a utility company (low
P/E) as each industry has much different growth prospects.
The P/E is sometimes referred to as the "multiple", because it shows how much investors are
willing to pay per Re. of earnings. If a company were currently trading at a multiple (P/E) of
20, the interpretation is that an investor is willing to pay Rs.20 for Re.1 of current earnings.
Page | 23
It is important that investors note an important problem that arises with the P/E measure, and
to avoid basing a decision on this measure alone. The denominator (earnings) is based on an
accounting measure of earnings that is susceptible to forms of manipulation, making
the quality of the P/E only as good as the quality of the underlying earnings number.
Dividend Yeild (D.Y): A financial ratio that shows how much a company pays out in
dividends each year relative to its share price. In the absence of any capital gains, the
dividend yield is the return on investment for a stock. Dividend yield is calculated as follows:
Dividend yield is a way to measure how much cash flow you are getting for each dollar
invested in an equity position. Investors who require a minimum stream of cash flow from
their investment portfolio can secure this cash flow by investing in stocks paying relatively
high, stable dividend yields.
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What Is Technical Analysis?

Technical analysis is a method of evaluating securities by analyzing the statistics generated
by market activity, such as past prices and volume. Technical analysts do not attempt to
measure a security's intrinsic value, but instead use charts and other tools to identify patterns
that can suggest future activity.
Just as there are many investment styles on the fundamental side, there are also many
different types of technical traders. Some rely on chart patterns; others use technical
indicators and oscillators, and most use some combination of the two. In any case, technical
analysts' exclusive use of historical price and volume data is what separates them from their
fundamental counterparts. Unlike fundamental analysts, technical analysts don't care whether
a stock is undervalued - the only thing that matters is a security's past trading data and what
information this data can provide about where the security might move in the future.
The field of technical analysis is based on three assumptions:
 The market discounts everything.
 Price moves in trends.
 History tends to repeat itself.
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
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.
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.
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.
Although technical analysis and fundamental analysis are seen by many as polar opposites -
the oil and water of investing - many market participants have experienced great success by
combining the two. For example, some fundamental analysts use technical analysis
techniques to figure out the best time to enter into an undervalued security. Oftentimes, this
Page | 25
situation occurs when the security is severely oversold. By timing entry into a security, the
gains on the investment can be greatly improved.
Alternatively, some technical traders might look at fundamentals to add strength to a
technical signal. For example, if a sell signal is given through technical patterns and
indicators, a technical trader might look to reaffirm his or her decision by looking at some
key fundamental data. Oftentimes, having both the fundamentals and technical‟s on your side
can provide the best-case scenario for a trade.
Not Just for Stocks: Technical analysis can be used on any security with historical trading
data. This includes stocks, futures and commodities, fixed-income securities, forex, etc. In
this tutorial, we'll usually analyze stocks in our examples, but keep in mind that these
concepts can be applied to any type of security. In fact, technical analysis is more frequently
associated with commodities and forex, where the participants are predominantly traders.
Now that the philosophy behind technical analysis is understood, with the help of certain
examples let‟s see how it really works.
Trend: One of the most important concepts in technical analysis is that of trend. The
meaning in finance isn't all that different from the general definition of the term - a trend is
really nothing more than the general direction in which a security or market is headed. There
are three types of trend:
 Uptrends: Higher Highs and Higher Lows
 Downtrends: Lower Highs and Lower Lows
 Sideways/Horizontal Trends: Little movement up or down in the peaks and troughs
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.
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It is important to be able to understand and identify trends so that you can trade with the trend
rather than against them. Two important sayings in technical analysis are "the trend is your
friend" and "don't buck the trend". Trendline is the tool used to draw trends and even identify
the support and resistance.
Support and Resistance:
Support: The price level through which a stock or market seldom falls.
Resistance: The price level that a stock or market seldom surpasses.
Once a resistance or support level is broken, its role is reversed. If the price 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.
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 by
anyone who uses technical analysis. As long as the price of the share remains between these
levels of support and resistance, the trend is likely to continue. It is important to note,
however, that a break beyond a level of support or resistance does not always have to be a
reversal. For example, if a price moved above the resistance levels of an upward trending
channel, the trend has accelerated, not reversed. This means that the price appreciation is
expected to be faster than it was in the channel.
Being aware of these important support and resistance points should affect the way that you
trade a stock. Traders should avoid placing orders at these major points, as the area around
them is usually marked by a lot of volatility. If you feel confident about making a trade near a
support or resistance level, it is important that you follow this simple rule: do not place orders
directly at the support or resistance level. This is because in many cases, the price never
actually reaches the whole number, but flirts with it instead. So if you're bullish on a stock
that is moving toward an important support level, do not place the trade at the support level.
Instead, place it above the support level, but within a few points. On the other hand, if you are
placing stops or short selling, set up your trade price at or below the level of support.
Volumes: 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 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.
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. Therefore, if you are
Page | 27
looking at a large price movement, you should also examine the volume to see whether it tells
the same story.
The other use of volume is to confirm chart patterns. Patterns such as head and shoulders,
triangles, flags and other price patterns can be confirmed with volume. In most chart patterns,
there are several pivotal points that are vital to what the chart is able to convey. Basically, if
the volume is not there to confirm the pivotal moments of a chart pattern, the quality of the
signal formed by the pattern is weakened.
Another important idea in technical analysis is that price is preceded by volume. Volume is
closely monitored to form ideas on upcoming trend reversals. If volume is starting to
decrease in an uptrend, it is usually a sign that the upward run is about to end.
Now that some of the important factors of technical analysis are understood, we can move on
to charts, which help to identify trading opportunities in prices movements.
Charts: In technical analysis, charts are similar to the charts that you see in any business
setting. A chart is simply a graphical representation of a series of prices over a set time frame.
For example, a chart may show a stock's price movement over a one-year period, where each
point on the graph represents the closing price for each day the stock is traded
There are several things that you should be aware of when looking at a chart, as these factors
can affect the information that is provided. They include the time scale, the price scale and
the price point properties used.
The Time Scale: The time scale refers to the range of dates at the bottom of the chart, which
can vary from decades to seconds. The most frequently used time scales are intraday, daily,
weekly, monthly, quarterly and annually. The shorter the time frame, the more detailed the
chart. Each data point can represent the closing price of the period or show the open, the high,
the low and the close depending on the chart used.
The Price Scale and Price Point Properties: The price scale is on the right-hand side of the
chart. It shows a stock's current price and compares it to past data points. This may seem like
a simple concept in that the price scale goes from lower prices to higher prices as you move
along the scale from the bottom to the top. The problem, however, is in the structure of the
scale itself. A scale can either be constructed in a linear (arithmetic) or logarithmic way, and
both of these options are available on most charting services.
Charts: There are four 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 and the point and figure chart.
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. 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.
Page | 28
Bar Charts: The bar chart expands on the line chart by adding several more key pieces of
information to each data point. 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
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. Generally, if
the left dash (open) is lower than the right dash (close) then the bar will be shaded black,
representing an up period for the stock, which means it has gained value. A bar that is colored
red signals that the stock has gone down in value over that period. When this is the case, the
dash on the right (close) is lower than the dash on the left (open)
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. And, like bar
charts, candlesticks also rely heavily on the use of colors to explain what has happened
during the trading period. A major problem with the candlestick color configuration,
however, is that different sites use different standards; therefore, it is important to understand
the candlestick configuration used at the chart site you are working with. There are two color
constructs for days up and one for days that the price falls. When the price of the stock is up
and closes above the opening trade, the candlestick will usually be white or clear. If the stock
has traded down for the period, then the candlestick will usually be red or black, depending
on the site. If the stock's price has closed above the previous day‟s close but below the day's
open, the candlestick will be black or filled with the color that is used to indicate an up day.
Page | 29
Charts are one of the most fundamental aspects of technical analysis. Now let us look at
different types of chart patterns and how these chart patterns work in understanding and
predicting the future price movements of a stock.
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. 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 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. As it is seen clearly in the given below
chart which depicts an inverse head and shoulders pattern. Here an investor can buy above
the neckline price.
Entry
Point
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
confirmed. As you can see in chart below, 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. There is a wide ranging time frame for this type of pattern, with the span ranging
from several months to more than a year.
Page | 30
Flag and Pennant: These two short-term chart patterns are continuation patterns that are
formed when there is a sharp price movement followed by a generally sideways price
movement. This pattern is then completed upon another sharp price movement in the same
direction as the move that started the trend. The patterns are generally thought to last from
one to three weeks.
As you can see in the chart, there is little difference between a pennant and a flag. The main
difference between these price movements can be seen in the middle section of the chart
pattern. In a pennant, the middle section is characterized by converging trendlines, much like
what is seen in a symmetrical triangle. The middle section on the flag pattern, on the other
hand, shows a channel pattern, with no convergence between the trendlines. In both cases, the
trend is expected to continue when the price moves above the upper trendline.
Triangle Formation: Triangles are some of the most well-known chart patterns used in
technical analysis. The three types of triangles, which vary in construct and implication, are
the symmetrical triangle, ascending and descending triangle. These chart patterns are
considered to last anywhere from a couple of weeks to several months.
The symmetrical triangle is a pattern in which two trendlines converge toward each other.
This pattern is neutral in that a breakout to the upside or downside is a confirmation of a trend
in that direction. In an ascending triangle, the upper trendline is flat, while the bottom
trendline is upward sloping. This is generally thought of as a bullish pattern in which chartists
look for an upside breakout. In a descending triangle, the lower trendline is flat and the upper
trendline is descending. This is generally seen as a bearish pattern where chartists look for a
downside breakout.
Page | 31
Entry
Point
Moving Averages: Most chart patterns show a lot of variation in price movement. This can
make it difficult for traders to get an idea of a security's overall trend. One simple method
traders use to combat this is to apply moving averages. 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 and increase the probability that it will work in their favour.
There are 3 types of moving averages:
 Simple Moving Average
 Linear Moving Average
 Exponential Moving Average
The moving average used in this report is the Exponential Moving Average as it reacts
quickly to the price changes as compared to the other two. 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.
As shown in the two charts below moving averages is even useful in identifying the support
and resistance levels also:
Page | 32
Indicators and Oscillators: Indicators are calculations based on the price and the volume of a
security that measure such things as money flow, trends, volatility and momentum. Indicators
are used as a secondary measure to the actual price movements and add additional
information to the analysis of securities. Indicators are used in two main ways: to confirm
price movement and the quality of chart patterns, and to form buy and sell signals
Different types of Indicators and Oscillators:
 Accumulation/Distribution Line
 Average Directional Index
 Moving Average Convergence
 Relative Strength Index
Now that we know what is Fundamental and Technical Analysis and how it helps an investor
for better investment in to any stock. Following it is the data and analysis of Nifty50 stocks.
Page | 33
ABB. LTD
Industry: Electric Equipment Switchgear/Circuit Face Value: Rs2.00
Breaker. Market Value: Rs.426.7
NSE Scrip Code: ABB Beta: 0.89 Book Value : 103.02
Rs.103.02
3% Share Holding Directors

Other Companies
10% 3%
Foreign NRI
Foreign Institutions
11%
Others
52% N Banks Mutual Funds
General Public
21%
Financial Institutions
Foreign Promoter
Year EPS P/B P/E
11.43 2.50 19.08
Market Price
1999-2000
2000-2001 13.04 2.54 18.29 4000
2001-2002 15.36 2.66 17.28 3000
2002-2003 19.33 2.40 14.81 2000
2003-2004 25.72 5.58 30.99 1000
2004-2005 38.02 6.69 30.61 0
2005-2006 57.21 13.20 51.18
2006-2007 80.3 12.74 44.21
2007-2008 24.67 14.46 47.83
2008-2009 23.98 4.14 17.79
Page | 34
ACC LTD.
Industry: Cement & Cement Products Face Value: Rs10.00

Market Value: Rs.574.4
NSE Scrip Code: ACC Beta: 0.70
Book Value : Rs.284.11
0% Promoters
Shares Holding Other Companies
19% Foreign NRI
46% Foreign Industries
15% Central Govt
Others
N Banks Mutual Funds
1% General Public
13%
1% 5% Foreign Promoter
Year EPS P/B P/E

Market Price
1999-2000 -4.31 1.76 -32.80
2000-2001 -3.16 1.63 -41.12 1000
2001-2002 11.16 2.13 13.75 800
2002-2003 3.85 2.20 35.97 600
2003-2004 11.21 3.33 22.72 400
200
2004-2005 19.46 4.03 18.53
0
2005-2006 32.25 6.14 24.25
2006-2007 57.16 4.38 12.86
2007-2008 65.33 3.44 12.65
2008-2009 66.48 2.02 8.64
Page | 35
AMBUJA CEMENT
Industry: Cement & Cement Products. Face Value: Rs2.00
NSE Scrip Code: AMBUJACEM Beta: 0.88 Book Value : Rs.39.45
1% 1% 1% Promoters
Share Holding
Other Companies
Foreign NRI
23% Foreign O c b
46% Foreign Institutions
Others
1% General Public
9%
Foreign Promoter
16%
Year EPS P/B P/E

Market Price
1999-2000 12.61 2.19 16.87
2000-2001 8.67 1.54 17.71 500
2001-2002 14.52 1.90 13.78 400
2002-2003 11.84 1.42 13.51 300
2003-2004 15.04 2.40 19.65 200
2004-2005 24.63 3.07 16.26 100
2005-2006 4.53 5.30 22.80 0
2006-2007 9.81 4.65 10.88
2007-2008 8.14 3.70 14.87
2008-2009 9.19 1.79 7.68
Page | 36
AXIS BANK LTD.
Industry: Banking Services Face Value: Rs10.00

NSE Scrip Code: AXISBANK Beta: 1.38
4% 2% Promoters
Share Holding
6% Other Companies
Foreign NRI
8%
39% Foreign O c b
Foreign Others
Others
9% General Public
1% Financial Institutions
Year EPS P/B P/E D.Y

Market Price
1999-2000 3.87 2.19 10.26 34.5
2000-2001 6.34 1.11 3.94 28.11 1000
2001-2002 6.26 1.27 6.37 21.41 800
2002-2003 8.35 0.98 4.71 24.82 600
2003-2004 12.02 3.03 12.37 23.46 400
2004-2005 12.22 2.69 19.44 26.22 200
2005-2006 17.41 3.44 20.45 23.2 0
2006-2007 21.26 4.14 23.07 22.57
2007-2008 29.94 3.22 26.38 23.49
2008-2009 50.57 1.46 8.21 23.16
Page | 37
BHARAT HEAVY ELECTRICALS LTD..

Industry: Prime Movers - Boilers & turbines Face Value: Rs10.00
NSE Scrip Code: BHEL Beta: 1.02
2% 4% Promoters
Share Holding
7% Directors
Other Companies
15% Foreign NRI

Others
4%
General Public
Market Price
1999-2000 26.46 0.85 4.75 9.9
2000-2001 12.75 1.02 11.19 27.51 2500
2001-2002 26.52 1.05 6.37 20.92 2000
2002-2003 24.44 1.14 9.13 24.84 1500
2003-2004 36.28 2.79 16.66 25.2 1000
2004-2005 39.69 3.11 19.31 23.33 500
2005-2006 68.6 7.52 32.68 24.09 0
2006-2007 87.12 6.46 25.96 28.67
2007-2008 58.65 9.37 35.15 30.54
2008-2009 62.53 5.71 24.16 31.02
Page | 38
BHARAT PETROLEUM CORPORATION LTD.
Industry: Petroleum products (Refineries) Face Value: Rs10.00

NSE Scrip Code: BPCL Beta: 0.52
Share Holding Promoters
13% Other Companies

3%
Foreign NRI
7%
Central Govt
9% Others
55%
1% 8% General Public
4%
Market Price
1999-2000 46.93 1.12 5.55 32.49
27.15 1.38 7.06 31.27 600
2000-2001
500
2001-2002 22.66 2.16 14.50 38.83 400
2002-2003 42.18 1.40 5.26 39.99 300
2003-2004 56.9 2.46 8.42 34.95 200
2004-2005 30.97 1.66 11.41 44.21 100
0
2005-2006 9.69 1.41 43.89 35.33
2006-2007 77.98 1.07 3.88 37.12
2007-2008 43.72 1.26 9.34 9.72
2008-2009 20.35 1.12 18.48 38.66
Page | 39
BHARTI AIRTEL LTD.
Industry: Telecommunications – Service Face Value: Rs5.00

Market Value: Rs. 625.75
NSE Scrip Code:BHARTIAIRTEL Beta: 0.96 Book Value: Rs.145.62
Promoters
22%
Share Holding Other Companies
Foreign NRI
Foreign O c b
46%
Foreign Industries
2%
3% Others
18%
General Public
4%
Foreign Promoter

Market Price
2001-2002 0.07 2.85 550.71
2002-2003 0.03 1.08 940.00 1000
800
2003-2004 0 5.99 600
400
2004-2005 6.53 8.49 31.76 200
2005-2006 10.62 10.65 38.87 0
2006-2007 17.15 14.35 44.54
2007-2008 32.9 7.75 25.11
2008-2009 40.79 4.30 15.34 5.73
Page | 40
CAIRN LTD.
\
Industry: Face Value: Rs 10.00
PLA LTD. Oil Drilling and Exploration
NSE Scrip Code: CAIRN Beta: 1.00 Book Value: Rs. 168.67
2%
Share Holding Directors
Other Companies
15%
Foreign NRI
Foreign O c b
10%
Others
63% 3%
2% General Public
5%
Foreign Promoter
Year EPS P/B P/E

Market Price
2006-2007 -0.16 0.80 -825.94
2007-2008 -0.53 1.36 -422.83 250
2008-2009 0.32 1.09 575.31 200
150
100
50
0
2006-2007 2007-2008 2008-2009
Page | 41
CIPLA LTD.
Industry: Pharmaceuticals. Face Value: Rs 2.00

NSE Scrip Code: CIPLA Beta: 0.51 Book Value: Rs. 55.86
16%
21% Share Holding Promoters
3% Other Companies
3% Foreign NRI
Foreign O c b
17% Others
General Public
22% 5% Financial Institutions
1%
Foreign Promoter

Market Price
1999-2000 22.19 12.04 51.07 14.83
2000-2001 28.87 8.45 34.57 16.6 1400
1200
2001-2002 33.66 6.92 30.22 17.85 1000
2002-2003 41.31 4.04 17.28 27.3 800
600
2003-2004 52.75 5.61 22.25 33.08 400
2004-2005 13.66 4.97 18.73 29.27 200
0
2005-2006 20.26 10.06 32.69 29.17
2006-2007 9.34 7.33 25.35 27.22
2007-2008 9.02 4.56 24.39 25.92
2008-2009 9.99 3.94 22.03 23.41
Page | 42
DLF LTD.
Industry: Construction and Contracting - Real Face Value: Rs 2.00

Estate.
GAIL (INDIA) LTD. Market Value: Rs. 167.30
NSE Scrip Code: DLF Beta: 1.54 Book Value: Rs. 72.91

Other Companies
Foreign NRI
15% Foreign O c b
Foreign Industries
Others
General Public

Market Price
1999-2000 2.27
700
2000-2001 5.7
600
2001-2002 4.2
500
2002-2003 6.01
400
2003-2004 0
300
2004-2005 2.34
200
2005-2006 0.77
100
2006-2007 98.3
0
2007-2008 15.1 9.77 42.76 30.99
2007-2008 2008-2009
2008-2009 9.13 2.29 18.32 23.79
Page | 43
GAIL (INDIA) LTD.

Industry: Oil Drilling and Exploration. Face Value: Rs 10.00
NSE Scrip Code: GAIL Beta: 0.79 Book Value: Rs. 116.44
14% Promoters
2% Share Holding
Other Companies
Foreign NRI
5%
7% Central Govt
58% Others
12%
General Public
1%
Market Price
1999-2000 10.18 1.02 5.62 32.69
500
2000-2001 11.44 0.75 4.24 33.1
400
2001-2002 13.24 1.02 5.75 32.09
300
2002-2003 19.38 1.00 3.86 38.75
200
2003-2004 22.21 2.42 9.60 40.82
100
2004-2005 23.11 2.08 9.18 39.35
0
2005-2006 27.32 2.70 11.66 41.74
2006-2007 25.01 1.92 10.58 40.61
2007-2008 34.13 2.77 12.47 38.03
2008-2009 22.1 2.11 11.11 37.05
Page | 44
GRASIM INDUSTRIES LTD

HCL TECHNOLOGIES LTD
Industry: Diversified Face Value: Rs 10.00
NSE Scrip Code: GRASIM Beta: 0.72 Book Value: Rs. 1033.46

15% Other Companies
26%
Foreign NRI
12% Foreign O c b
5%
4% Others
3% 1%
23% General Public

Market Price
1999-2000 25.43 1.02 12.09 30.99
2000-2001 29.09 0.77 8.63 21.38 3000
2500
2001-2002 41.61 0.79 6.90 21.32 2000
2002-2003 34.1 1.02 9.69 28.13 1500
2003-2004 85.01 2.72 12.56 18.57 1000
2004-2005 102.91 2.57 11.80 18.92 500
0
2005-2006 93.71 3.80 22.01 24.21
2006-2007 143.98 3.18 14.54 18.71
2007-2008 238.03 2.90 10.82 15.45
2008-2009 179.76 1.53 8.80 19.19
Page | 45
HCL TECHNOLOGIES LTD.
Industry: Computers - Software Face Value: Rs 2.00

NSE Scrip Code: HCLTECH Beta: 1.00 Book Value: Rs. 59.99

18% Other Companies
3% Foreign NRI
Foreign O c b
50%
Others
General Public
Foreign Promoter
1% 3%

Market Price
1999-2000 11.87 19.89 145.08 22.16
2000
2000-2001 11.62 7.09 31.82 22.16
2001-2002 15.05 3.83 17.16 22.91 1500
2002-2003 10.47 1.88 14.43 22.55 1000
2003-2004 12.44 2.74 19.91 23.99 500
2004-2005 9.48 4.67 39.29 22.15
0
2005-2006 18.15 6.28 36.04 24.74
2006-2007 11.3 6.20 25.79 23.68
2007-2008 17.82 3.99 14.21 25.55
2008-2009 11.81 1.70 8.64 30.16
Page | 46
HDFC BANK LTD

HERO HONDA MOTORS LTD
Industry: Finance – Banks – Private Face Value: Rs 10.00
Sector Market Value: Rs. 973.40
NSE Scrip Code: HDFCBANK Beta: 1.04 Book Value: Rs. 344.44
Promoters
8% Share Holding Other Companies
10% 24% Foreign NRI
4%
Foreign O c b
Foreign Institution
18%
Others
1% NBanksMutualFun
26% General Public
0%

Market Price
1999-2000 4.93 8.18 52.17 30.16
2000-2001 7.64 6.09 29.89 25.55 1400
1200
2001-2002 9.68 3.41 24.44 23.68 1000
2002-2003 13.74 2.94 17.07 24.74 800
600
2003-2004 17.89 4.00 21.17 22.15 400
2004-2005 21.48 3.74 25.37 23.99 200
2005-2006 27.81 4.57 27.84 22.55 0
2006-2007 33.22 4.99 28.72 22.91
2007-2008 44.87 4.10 29.67 22.16
2008-2009 52.77 2.83 18.45 22.16
Page | 47
HERO HONDA MOTORS LTD.

Industry: 2 & 3 Wheelers Face Value: Rs 2.00
NSE Scrip Code: HERO Beta: 0.36 Book Value: Rs. 190.33
Promoters
26% 29% Foreign NRI
Others
5%
8%
General Public
3%
Foreign Promoter

Market Price
1999-2000 48.1 8.64 20.17 23.07
2000-2001 12.67 4.43 11.18 26.73 1200
1000
2001-2002 18.28 7.20 18.52 75.53 800
2002-2003 29.08 4.36 6.47 69.82 600
2003-2004 36.47 8.60 13.45 61.86 400
200
2004-2005 40.59 7.33 13.50 56.25
0
2005-2006 48.64 8.85 18.31 46.88
2006-2007 46.58 5.15 14.79 46.29
2007-2008 48.47 4.64 14.33 45.86
2008-2009 64.19 5.63 16.69 36.45
Page | 48
HINDALCO INDUSTRIES LTD.

Industry: Aluminium Face Value: Rs 1.00
HINDUSTAN UNILEVER
NSE Scrip Code: LTD
HINDALCO Beta: 1.18 Book Value: Rs. 139.73
Promoters
Foreign NRI
8% 32%
Foreign O c b
3%
Central Govt
9%
Others
0% General Public
29%

Market Price
1999-2000 85.29 1.45 8.64 10.87
1400
2000-2001 92.92 1.33 8.30 14.52 1200
2001-2002 88.86 1.18 8.69 14.65 1000
80.61 0.80 6.63 24.01 800
2002-2003 600
2003-2004 90.72 1.65 13.45 20.51 400
2004-2005 144.27 1.57 8.98 15.94 200
0
2005-2006 14.82 2.20 12.33 14.93
2006-2007 21.86 1.32 5.96 7.88
2007-2008 18.91 1.17 8.73 9.27
2008-2009 12.23 0.37 4.26 12.04
Page | 49
HINDUSTAN UNILEVER LTD.

Industry: Personal Care Face Value: Rs 1.00
NSE Scrip Code: HUL Beta: 0.44 Book Value: Rs. 9.45
4% Directors
Foreign NRI
15% Foreign O c b
3%
Foreign Industries
Central Govt
52% Others
15%
General Public
Foreign Promoter
Year EPS P/B P/E

Market Price
1999-2000 50.87 22.45 47.42
2000-2001 5.95 19.40 36.85 3000
2500
2001-2002 7 16.29 32.16
2000
2002-2003 7.87 8.08 18.85 1500
2003-2004 7.55 13.97 20.45 1000
2004-2005 5.09 12.40 25.92 500
6.05 21.79 44.96 0
2005-2006
2006-2007 6.98 16.63 29.40
2007-2008 8.06 27.40 28.39
2008-2009 10.35 25.13 22.95
Page | 50
HOUSING DEVELOPMENT FINANCE CORPORATION LTD.

Industry: Finance - Housing Face Value: Rs 10.00
ITC
NSELTD
Scrip Code: HDFC Beta: 1.24 Book Value: Rs. 461.85
2% Directors
11%
Foreign NRI
10%
Foreign O c b
Central Govt
Others
73%
General Public

Market Price
1999-2000 33.73 2.23 11.65 62.52
37.78 2.70 14.46 34.92 2500
2000-2001
43.64 3.00 15.68 52.46 2000
2001-2002
1500
2002-2003 28.24 2.66 11.73 43.93
1000
2003-2004 34.54 4.67 18.62 44.09
500
2004-2005 41.61 4.68 17.52 46.58
0
2005-2006 50.38 7.47 26.53 45.26
2006-2007 57.19 7.00 26.57 41.46
2007-2008 63.37 5.66 37.55 34.1
2008-2009 80.24 3.06 17.60 43.55
Page | 51
ITC LTD.
Industry: Cigarettes Face Value: Rs 1.00
NSE Scrip Code: ITC Beta: 0.53 Book Value: Rs. 444.94
1%
5%
Foreign NRI
22% Foreign O c b
Central Govt
12%
Others
15% General Public
13%

Market Price
1999-2000 5.35 4.57 49.92 28.33
2000-2001 7.3 2.58 22.67 26.87 1000
800
2001-2002 11.43 1.80 10.84 28.08
600
2002-2003 9.19 1.18 14.55 30.54
400
2003-2004 26.45 2.28 11.20 35.08
200
2004-2005 27.22 2.31 14.43 40.29
0
2005-2006 28.55 2.36 20.63 50.76
2006-2007 34.2 3.13 24.95 50.53
2007-2008 37.37 1.84 20.59 49.45
2008-2009 33.76 0.75 9.86 50.06
Page | 52
ICICI BANK LTD

Industry: Finance–Banks–Private Sector Face Value: Rs 10.00
NSE Scrip Code: ICICI Beta: 1.64 Book Value: Rs. 36.24
3% 0%
0% 0% Directors
18% Foreign NRI
Foreign O c b
Foreign Others
37%
Foreign Industries
7%
Central Govt
Others
29% General Public
Market Price
1999-2000 32.29 6.65 22.96 26.09
38.59 5.77 21.09 30.14 1600
2000-2001 1400
2001-2002 46.94 3.92 14.84 18.8 1200
1000
2002-2003 55.41 2.93 11.34 43 800
600
2003-2004 64.31 4.07 16.22 37.49 400
2004-2005 60.4 4.25 22.22 36.05 200
0
2005-2006 6.07 8.14 32.15 34.08
2006-2007 6.96 5.14 21.72 33.89
2007-2008 8.2 6.48 25.15 33.12
2008-2009 8.65 5.10 21.37 36.6
Page | 53
IDEA CELLULAR LTD.
Industry: Telecommunication-Services Face Value: Rs 10.00

NSE Scrip Code: IDEA Beta: 1.09 Book Value: Rs. 36.43
1%
0% 4% 7% Promoters
Share Holding
Directors
7% Other Companies
Foreign NRI
49%
Foreign O c b
30% Others
General Public
0%2% 0%
Year EPS P/B P/E
Market Price
2006-2007 1.18 6.63 80.17
3.96 7.63 25.92 150
2007-2008
2008-2009 3.23 1.38 15.51 100
50
0
2006-2007 2007-2008 2008-2009
Page | 54
INFOSYS TECHNOLOGIES LTD

NSE Scrip Code: INFOSYS Beta: 0.70 Book Value: Rs. 310.90
4% Promoters
16%
14%
Foreign NRI
4% 6% Foreign Institutions
1%
Others
36% General Public
Market Price
1999-2000 43.23 71.21 207.50 11.55
10000
2000-2001 81.71 21.10 49.98 11.9
8000
2001-2002 118.11 12.48 31.74 17
6000
2002-2003 148.2 9.39 27.35 19.95 4000
2003-2004 186.59 10.12 26.47 78.24 2000
2004-2005 70.38 11.65 32.07 18.84 0
2005-2006 87.21 11.91 34.19 58.32
2006-2007 59.33 11.78 34.02 19.85
2007-2008 76.03 6.11 18.94 49.77
2008-2009 101.58 4.26 13.03 27.03
Page | 55
INFRASTRUCTURE DEVELOPMENT FINANCE CO. LTD.
Industry: Finance – Term Lending Face Value: Rs 10.00

Institution Market Value: Rs. 54.10
NSE Scrip Code: IFDC Beta: 1.54 Book Value: Rs. 46.55
4% 0% Other Companies
Share Holding
Foreign O c b
16%
9% Central Govt
44% Others
6%
20% General Public

Market Price
2000-2001 53.85
51.78 200
2001-2002
2002-2003 62.69 150
2003-2004 43.53
100
2004-2005 37.58
2005-2006 3.35 2.94 19.88 34.14 50
2006-2007 3.99 3.22 20.98 28.53 0
2007-2008 5.17 3.58 29.21 27.19 2005-2006 2006-2007 2007-2008 2008-2009
2008-2009 5.68 1.16 9.52 23.8
Page | 56
JAIPRAKASH ASSOCIATES LTD.
Industry: Construction & Contracting- Face Value: Rs 2.00

Civil Market Value: Rs. 84.10
NSE Scrip Code: JPASSO Beta: 1.85 Book Value: Rs. 52.27
5% 0% Promoters
Share Holding
Other Companies
11% Foreign NRI
5%
0% Foreign O c b
Others
26%
General Public
Market Price
2002-2003 26.6
2003-2004 17.57 600
500
2004-2005 11.75 2.83 16.76 23.22 400
300
2005-2006 33.65 4.21 13.94 10.34 200
2006-2007 16.84 4.69 32.02 21.91 100
0
2007-2008 5.1 6.82 44.42 21.99
2008-2009 7.54 1.61 11.15 15.9
Page | 57
JINDAL STEEL & POWER LTD.
Industry: Steel – Sponge Iron Face Value: Rs 1.00

NSE Scrip Code: JINDAL Beta: 1.18 Book Value: Rs. 350.09
0% Promoters
8% Share Holding
Other Companies
9% Foreign NRI
0% 3%
Foreign Industries
51% Others
General Public
5%
1% Foreign Promoter

Market Price
1999-2000 42.39 0.92 5.64 10.58
2000-2001 82.2 0.58 2.27 8.59 2500
2000
2001-2002 81.75 0.38 1.81 9.26
1500
2002-2003 130.88 0.82 2.47 14.59
1000
2003-2004 99.2 1.83 5.12 11.38
500
2004-2005 167.48 2.43 6.22 10.18
0
2005-2006 186.07 3.17 10.19 9.19
2006-2007 211.38 3.12 11.25 9.14
2007-2008 80.34 8.49 25.77 5.86
2008-2009 99.35 3.44 12.13 5.55
Page | 58
LARSEN & TURBO LTD.

NSE Scrip Code: L&T Beta:1.12 Book Value: Rs. 212.32
1% Directors
1%
6% 0%
Foreign NRI
25%
14% Foreign O c b
0%
Foreign Industries
15% Others

General Public
14%

Market Price
1999-2000 13.24 1.89 21.95 47.36
8.85 1.41 24.98 56.61 3500
2000-2001 3000
2001-2002 16.77 1.09 10.78 50.27 2500
2002-2003 16.96 1.30 10.88 48.65 2000
1500
2003-2004 21.41 4.82 26.83 42.15 1000
2004-2005 75.72 3.89 13.20 41.32 500
0
2005-2006 68.59 7.25 35.47 34.05
2006-2007 40.99 8.64 39.52 30.04
2007-2008 74.35 9.31 40.83 26.29
2008-2009 46.26 3.16 14.51 20.58
Page | 59
MAHINDRA & MAHINDRA LTD.
Industry: Auto – Cars & Jeeps Face Value: Rs 5.00

NSE Scrip Code: M&M Beta:0.98 Book Value: Rs. 188.51
2% Promoters
Foreign NRI
21% 24% Foreign O c b
Foreign Industries
Central Govt
9% 8% Others
0% General Public
4%
0%0%

Market Price
1999-2000 23.93 1.73 13.28 25.6
2000-2001 14.78 0.62 8.11 55.54 1000
4.19 0.64 27.22 46.85 800
2001-2002
600
2002-2003 7.91 0.74 12.55 49.46
400
2003-2004 27.5 3.06 16.89 33.79
200
2004-2005 43.02 2.92 11.55 33.54
0
2005-2006 26.86 5.20 23.35 32.45
2006-2007 35.45 5.10 22.01 30.39
2007-2008 37.87 3.94 18.41 29.1
2008-2009 30.01 2.04 12.78 37.29
Page | 60
MARUTI SUZUKI INDIA LTD.
Industry: Auto – Cars & Jeeps Face Value: Rs 2.00

NSE Scrip Code: MARUTI Beta:0.72 Book Value: Rs. 323.45
0% Other Companies
6% Share Holding Foreign NRI
21%
Foreign Industries
0% Others
54% 0%
3%
2% General Public
14%
Foreign Promoter

Market Price
1999-2000 12.23
2000-2001 0 1000
800
2001-2002 37.99
600
2002-2003 32.92 400
2003-2004 18.77 4.00 26.50 9.02 200
2004-2005 29.71 2.78 14.18 7.73 0
2005-2006 41.16 4.63 21.24 9.69
2006-2007 51.03 3.61 16.07 9.72
2007-2008 60.22 2.84 13.73 9.78
2008-2009 42.18 2.41 18.49 9.7
Page | 61
NTPC LTD.
Industry: Power – Generation & Face Value: Rs 10.00

Distribution Market Value: Rs. 179.85
NSE Scrip Code: NTPC Beta:0.79 Book Value: Rs. 72.66
Promoters
2% 2% Share Holding
1%
Foreign NRI
Foreign O c b
Foreign Industries
Others
90% General Public

Market Price
1999-2000 22.19
2000-2001 22.04 250
2001-2002 20 200
2002-2003 20.72 150
2003-2004 23.2 100
2004-2005 7.19 1.67 11.86 38.69 50
2005-2006 8 2.44 16.76 45.23 0
2006-2007 8 2.45 18.78 44.11
2007-2008 8.99 3.00 21.87 45.53
2008-2009 9.95 2.48 18.08 42.31
Page | 62
OIL & NATURAL GAS CORPORATION LTD.
Industry: Oil Drilling & Exploration Face Value: Rs 10.00

NSE Scrip Code: ONGC Beta:0.85 Book Value: Rs. 368.12
2% 2% Promoters
6% Share Holding
4%
Other Companies
Foreign NRI
12%
Others

74% General Public

Market Price
1999-2000 25.45 0.73 5.36 29.42
2000-2001 33.65 0.62 3.94 33.05 1400
1200
2001-2002 40.98 1.12 6.70 32.23 1000
2002-2003 71.8 1.42 4.95 42.88 800
600
2003-2004 63.07 2.96 13.33 44.55 400
2004-2005 91.03 2.69 9.73 49.91 200
2005-2006 97.36 3.47 13.47 50.7 0
2006-2007 72.03 2.82 12.23 48.85
2007-2008 76.28 2.97 12.85 47.94
2008-2009 72.6 2.12 10.75 49.65
Page | 63
POWERGRID CORPORATION OF INDIA LTD.
Industry: Power-Transmission Face Value: Rs 10.00

NSE Scrip Code: POWERGRID Beta:0.82 Book Value: Rs. 35.28
2% 1%
4% Promoters
5% Share Holding
2% Other Companies
Foreign NRI
Foreign O c b
Foreign Industries
Others
General Public
86% Employees

Market Price
1999-2000 0
2000-2001 7.41 99
2001-2002 7.35 98
2002-2003 16.55 97
2003-2004 18.84
96
2004-2005 26.64
2005-2006 34.2 95
2006-2007 34.82 94
2007-2008 3.85 3.01 25.53 40.79 2007-2008 2008-2009
2008-2009 4.18 2.71 22.87 34.95
Page | 64
PUNJAB NATIONAL BANK
Industry: Finance – Banks - Public Sector Face Value: Rs 10.00

NSE Scrip Code: PNB Beta:0.96 Book Value: Rs. 416.74
Promoters
15%
3% Foreign NRI
Foreign O c b
19% 58%
Others
General Public
1%

Market Price
1999-2000 13.9
2000-2001 0 600
500
2001-2002 11.32 400
2002-2003 31.74 0.73 3.21 12.43 300
2003-2004 41.79 1.89 8.00 10.79 200
44.72 1.58 8.80 14.01 100
2004-2005
0
2005-2006 45.65 1.63 10.30 14.98
2006-2007 61.14 1.44 7.76 30.71
2007-2008 64.98 1.49 7.85 23.4
2008-2009 98.03 0.99 4.20 23.86
Page | 65
RANBAXY LABORATORIES LTD.
Industry: Pharmaceuticals Face Value: Rs 5.00

NSE Scrip Code: RANBAXY Beta:0.70 Book Value: Rs. 65.74
7% 3% Share Holding
Foreign O c b
13%
Others
Foreign Promoter
Year EPS P/B P/E

Market Price
1999-2000 12.8 5.34 55.30
15.05 4.21 38.21 1200
2000-2001
1000
2001-2002 11.17 6.34 78.50 800
2002-2003 41.55 5.37 15.01 600
2003-2004 33.8 7.07 27.80 400
2004-2005 25.07 7.29 40.24 200
0
2005-2006 4.8 6.63 90.07
2006-2007 10.21 5.58 34.47
2007-2008 13.26 6.20 33.07
2008-2009 -47.97 2.52 -3.45
Page | 66
RELIANCE CAPITAL LTD.
Industry: Finance - Investments Face Value: Rs 10.00

NSE Scrip Code: RELCAP Beta:1.56 Book Value: Rs. 277.08
4% Promoters
No of Shares Other Companies
15%
1% Foreign NRI
Central Govt
54% Others
20%
General Public

Market Price
1999-2000 7.91 1.63 21.38 43.76
2000-2001 8.12 0.57 7.70 43.56 1400
1200
2001-2002 8.85 0.32 5.95 36.71 1000
2002-2003 8.06 0.46 6.03 40.58 800
600
2003-2004 8.31 1.20 15.84 39.37 400
2004-2005 8.31 1.58 21.48 41.24 200
2005-2006 24.12 2.84 21.52 15.12 0
2006-2007 25.23 3.35 26.49 15.56
2007-2008 41.75 5.01 29.43 15.41
2008-2009 39.41 1.28 8.97 19.29
Page | 67
RELIANCE COMMUNICATION LTD
Industry: Telecommunications - Services Face Value: Rs 5.00

NSE Scrip Code: RCOM Beta:1.50 Book Value: Rs. 250.43
Promoters
1% 11% Foreign NRI
Central Govt
8%
Others
1%
3%
General Public

Market Price
2005-2006 0.23 2.45 1342.17 0
2006-2007 6.28 5.04 67.02 4.96 600
500
2007-2008 12.53 4.24 40.68 7 400
300
2008-2009 8.43 0.70 20.74 4.02 200
100
0
Page | 68
RELIANCE INDUSTRIES LTD.

NSE Scrip Code: RELIANCE Beta: Beta:1.25 Book Value: Rs. 727.66
Promoters
7% Share Holding
Other Companies
12% Foreign NRI
3%
9% Central Govt
Others
0%
17%
5% General Public

Market Price
1999-2000 22.8 3.05 13.88 18.19
2000-2001 24.11 3.21 16.16 18.7 2500
2000
2001-2002 24.14 2.24 12.44 20.45
1500
2002-2003 29.39 1.41 9.46 19.28
1000
2003-2004 37.95 2.37 14.18 15.98
500
2004-2005 54.34 2.02 10.05 15.73 0
2005-2006 65.08 2.45 12.22 17.52
2006-2007 79.87 3.55 17.16 13.75
2007-2008 101.3 4.17 22.37 9.8
2008-2009 99.63 2.10 15.30 14.49
Page | 69
RELIANCE INFRASTRUCTURE LTD.
Industry: Power–Generation/Distribution Face Value: Rs 10.00

NSE Scrip Code: RELINFRA Beta:1.79 Book Value: Rs. 466.06
Promoters
Share Holding
Other Companies
20%
Foreign NRI
12% Central Govt
Others
7%
14%
General Public
Market Price
1999-2000 22.28 1.45 10.76 19.46
2000-2001 22.09 1.03 8.48 19.73 1400
1200
2001-2002 23.93 1.11 9.32 21.28 1000
2002-2003 9.83 1.16 21.92 56.09 800
600
2003-2004 20.96 3.07 36.45 21.25 400
2004-2005 28.03 1.96 18.90 19.01 200
0
2005-2006 34.42 1.85 17.77 18.37
2006-2007 35.69 1.33 13.85 17.68
2007-2008 42.08 2.87 29.73 15.93
2008-2009 47.19 1.11 10.92 16.19
Page | 70
RELIANCE POWER LTD.
Industry: Power-Generation/Distribution Face Value: Rs 10.00

NSE Scrip Code: RPOWER Beta:1.04 Book Value: Rs. 57.55

2% 4% 8% Other Companies
Foreign NRI
General Public
85%
Year EPS P/B P/E

Market Price
2007-2008 0.45 5.31 706.67
1.04 1.78 98.41 400
2008-2009
300
200
100
0
2007-2008 2008-2009
Page | 71
SIEMENS LTD.
Industry: Instrumentation & Process Ctrl Face Value: Rs 2.00

NSE Scrip Code: SIEMENS Beta: Book Value: Rs. 77.82
Directors
3% 4% Share Holding Other Companies
6%
Foreign NRI
Foreign O c b
15% Central Govt
Others
17% General Public
Foreign Promoter
Year EPS P/B P/E

Market Price
1999-2000 21.32 7.73 13.31
25.97 2.93 9.51 6000
2000-2001
5000
2001-2002 22.12 2.47 11.47 4000
2002-2003 30.06 2.06 9.32 3000
2003-2004 41.78 5.92 23.52 2000
2004-2005 59.62 7.87 28.56 1000
0
2005-2006 92.2 20.18 61.55
2006-2007 24.27 15.53 44.94
2007-2008 11.45 11.62 53.83
2008-2009 28.2 3.45 9.51
Page | 72
STATE BANK OF INDIA
Industry: Finance-Banks-Public Sector Face Value: Rs 10.00

NSE Scrip Code: SBIN Beta:1.00 Book Value: Rs. 912.73
Promoters
13% Share Holding
Other Companies
Foreign NRI
6%
Foreign O c b
Central Govt
60%
10% Others
General Public

Market Price
1999-2000 38.98 0.89 5.25 14.94
2000-2001 42.02 0.79 4.78 18.07 2000
2001-2002 37.98 0.76 5.79 12.98 1500
2002-2003 59 0.83 4.58 16.25 1000
2003-2004 69.94 1.58 8.66 17.74
500
2004-2005 81.79 1.43 8.01 17.46
2005-2006 83.73 1.84 11.57 19.06 0
2006-2007 74.13 1.71 13.41 18.98
2007-2008 106.56 2.06 15.02 22.64
2008-2009 143.67 1.17 7.43 22.9
Page | 73
STEEL AUTHORITY OF INDIA LTD
Industry: Steel Face Value: Rs 10.00

NSE Scrip Code: STEEL Beta:1.28 Book Value: Rs. 67.75
1% Promoters
2% Share Holding
Foreign NRI
Foreign O c b
Others
86% General Public

Market Price
1999-2000 -4.16 0.63 -1.94
2000-2001 -0.82 0.51 -6.89 200
2001-2002 -3.2 0.61 -1.50 150
2002-2003 -0.76 1.45 -11.64 100
2003-2004 6.08 2.64 5.30 50
2004-2005 16.4 2.54 3.86 22.71
0
2005-2006 9.71 2.73 8.56 23.47
2006-2007 13 2.79 8.79 23.83
2007-2008 17.48 3.32 10.60 23.71
2008-2009 14.78 1.42 6.53 20.32
Page | 74
STERLITE INDUSTRIES (INDIA) LTD.
Industry: Metals-Non Ferrous-Copper Face Value: Rs 2.00

NSE Scrip Code: STER Beta:1.34 Book Value: Rs. 198.15
3% 5% Promoters
Foreign NRI
14% Foreign Others
49%
Central Govt
17% Others
General Public

Market Price
1999-2000 21.21 2.86 36.79 26.1
2000-2001 23.79 0.33 4.27 27.53 2000
2001-2002 20.55 0.42 6.28 19.33 1500
2002-2003 20.02 0.57 7.12 13.33 1000
2003-2004 12.32 500
2004-2005 22.85 2.20 31.23 35.38
0
2005-2006 45.74 4.77 38.28 15.59
2006-2007 17 5.61 27.60 32.49
2007-2008 14.18 3.85 50.39 34.49
2008-2009 16.67 1.80 21.45 23.46
Page | 75
SUN PHARMACEUTICAL INDUSTRIES LTD.
Industry: Pharmaceuticals Face Value: Rs 5.00

NSE Scrip Code: SUNPHARMA Beta:0.28 Book Value: Rs. 248.72
3% 3% Promoters
5%
Foreign NRI
Foreign O c b
20%
Central Govt
64% Others
5%
General Public

Market Price
1999-2000 19.4 8.54 32.64 20.72
2000-2001 25.72 5.73 21.13 20.36 1400
1200
2001-2002 35.53 5.49 18.79 13.84 1000
2002-2003 24.82 3.72 10.93 22.73 800
600
2003-2004 30.23 7.16 21.55 28.44 400
2004-2005 16.48 7.84 28.31 26 200
0
2005-2006 24.84 10.91 34.60 25.29
2006-2007 30.6 8.36 34.52 23.57
2007-2008 61.09 6.05 20.12 25.11
2008-2009 61.09 4.47 18.19 26.33
Page | 76
SUZLON ENERGY LTD.
Industry: Cement & Cement Products Face Value: Rs 2.00

NSE Scrip Code: SUZLON Beta:1.55 Book Value: Rs. 43.28
1%
Shares Holding Promoters
Other Companies
16%
Foreign NRI
53% Others
16%
General Public
6%

Market Price
2000-2001 7.87
2001-2002 15.57 1400
1200
2002-2003 16.18 1000
800
2003-2004 18.87 600
400
2004-2005 11.01 200
0
2005-2006 28.56 13.34 45.60 20.02
2006-2007 34.18 8.40 29.30 15.5
2007-2008 10.24 5.68 25.76 12.36
2008-2009 -0.86 0.98 -49.24 0
Page | 77
TATA CONSULTANCY SERVICES LTD.

NSE Scrip Code:TCS Beta: 0.90 Book Value: Rs. 136.38
5% Promoters
3% 5%
Foreign O c b
1% Central Govt
Others
74%
General Public

Market Price
2004-2005 44.36 20.70 32.28 34.21
2005-2006 55.53 16.71 34.49 27.72 2500
2000
2006-2007 35.04 14.57 35.21 34.46 1500
1000
2007-2008 42.48 7.27 19.08 35.55 500
0
2008-2009 43.66 3.95 12.34 34.2
Page | 78
TATA MOTORS LTD.
Industry: Auto-LCVs/HCVs Face Value: Rs 10.00

NSE Scrip Code: TATAMOTORS Beta:1.15 Book Value: Rs. 273.55
Promoters
15% Share Holding Directors
Other Companies
Foreign NRI
9% 38% Foreign O c b
Foreign Others
Foreign Industries
12% Central Govt
Others

Market Price
1999-2000 -2.47 0.93 -55.18 109.59
-13.95 0.49 -4.68 0 1000
2000-2001
800
2001-2002 -14.01 1.06 -8.99 0
600
2002-2003 9.58 1.92 16.25 48.08
400
2003-2004 25.79 4.78 18.84 39.27
200
2004-2005 34.46 3.64 12.01 41.68
0
2005-2006 39.68 6.47 23.48 37.13
2006-2007 46.33 4.09 15.72 35.34
2007-2008 52.63 3.07 11.83 32.51
2008-2009 22.26 0.66 8.10 34.52
Page | 79
TATA POWER CO. LTD.
Industry: Power-Generation/Distribution Face Value: Rs 10.00

NSE Scrip Code:TATAPOWER Beta:1.03 Book Value: Rs. 392.56
Promoters
Share Holding
Other Companies
22% Foreign O c b
31%
Foreign Industries
16% Central Govt
1%
Others
1%
7% 18% N Banks Mutual Funds
General Public

Market Price
1999-2000 20.09 0.42 3.35 23.51
19.29 0.87 5.17 28.02 1400
2000-2001 1200
2001-2002 22.17 0.52 5.11 19.56 1000
2002-2003 23.33 0.47 4.85 27.94 800
600
2003-2004 30.58 1.48 12.33 30.73 400
2004-2005 25.9 1.38 13.85 30.81 200
0
2005-2006 28.2 2.07 20.65 31.41
2006-2007 27.43 1.64 18.57 31.6
2007-2008 39.42 3.22 29.72 30.84
2008-2009 41.65 1.96 18.45 31.2
Page | 80
TATA STEEL LTD.
Industry: Steel Face Value: Rs 10.00

NSE Scrip Code:TATASTEEL Beta:1.44 Book Value: Rs. 338.13
Promoters
Share Holding
Other Companies
21%
31% Foreign O c b
Central Govt
21% Others
21% General Public
Market Price
1999-2000 7.81 0.96 14.74 40.67
2000-2001 16.56 0.95 7.39 39.31 800
700
2001-2002 7.89 0.74 12.39 78.73 600
500
2002-2003 27.21 1.54 4.91 32.89 400
2003-2004 47.33 3.13 8.11 23.83 300
200
2004-2005 62.77 3.14 6.39 23.64 100
2005-2006 63.35 3.04 8.47 23.39 0
2006-2007 66.62 1.83 6.75 26.15
2007-2008 66.21 2.32 10.49 29.39
2008-2009 71.2 0.61 2.89 27.15
Page | 81
UNITECH LTD.
Industry: Construction & Contracting- Face Value: Rs 2.00

Civil Market Value: Rs. 34.9
NSE Scrip Code:UNITECH Beta:1.68 Book Value: Rs. 17.61
3% Promoters
1% 10% Foreign NRI
Foreign O c b
Others
34%
General Public
8% Foreign Promoter

1999-2000 8.41 0.43 4.89 43.5 Market Price
2000-2001 8.78 0.33 3.84 31.91 3000
2001-2002 5.2 0.49 10.01 46.86 2500
2000
2002-2003 9.31 0.38 4.53 26.54 1500
2003-2004 11.26 0.70 7.52 30.04 1000
500
2004-2005 23.95 2.41 14.00 18.87 0
2005-2006 55.78 15.52 50.03 26.57
2006-2007 8.15 36.97 47.54 4.82
2007-2008 6.35 20.91 43.50 4.6
2008-2009 4.56 1.98 7.65 3.23
Page | 82
WIPRO LTD.
Industry: Computer-Software Face Value: Rs 2.00

NSE Scrip Code:WIPRO Beta:0.52 Book Value: Rs. 85.42
5% 1% Promoters
2% 1% Share Holding
Directors
Foreign NRI
3%
Foreign Industries
Others
General Public

Market Price
1999-2000 13.12 200.08 426.25 3.22
2000-2001 23.57 18.22 56.78 1.95 6000
5000
2001-2002 37.05 15.66 45.90 2.68 4000
2002-2003 36.1 8.61 34.17 3.22 3000
2003-2004 39.31 9.03 34.63 83.23 2000
1000
2004-2005 21.25 9.65 31.57 26.83 0
2005-2006 14.17 12.43 39.50 40.23
2006-2007 18.37 9.64 30.45 35.2
2007-2008 20.96 5.47 20.62 33.47
2008-2009 20.3 2.88 12.11 23.05
Page | 83
Recommendations
Scrip Name Strategy CMP Target % Upside Return
Axis Bank BUY 1190 1459 23
Hindalco Ltd. BUY 163 207 27
GAIL BUY 419 553 32
Reliance Industries BUY 1034 1260 22
Notes:
 The investment horizon for the above given recommendations is for 12 months.
 The given CMP is as on 7th May, 2010.
Disclaimer:
The given recommendations are on basis of personal opinion and examination of chart
patterns, they have no connection with Angel Broking Ltd.
The final decision and consequences based on this information is solely yours. Moreover, in
keeping with regulatory guidelines, there is no guarantee of any returns on investments.
Prospective investors and others are cautioned that any forward-looking statements are not
predictions and may be subject to change without notice.
Page | 84
Glossary
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in
comparison to the market as a whole.
A Doji is formed when the open and the close are the same or very close. The length of the
shadows are not important. The Japanese interpretation is that the bulls and the bears are
conflicting. The appearance of a Doji should alert the investor of major indecision.
The Gravestone Doji is formed when the open and the close occur at the low of the day. It is
found occasionally at market bottoms, but it's forte is calling market tops. The name,
Gravestone Doji, is derived by the formation of the signal looking like a gravestone.
The Long-legged Doji has one or two very long shadows. Long-legged Doji's are often signs
of market tops. If the open and the close are in the center of the session's trading range, the
signal is referred to as a Rickshaw Man. . The Japanese believe these signals to mean that the
trend has "lost it's sense of direction."
The Bullish Engulfing Pattern is formed at the end of a downtrend. A white body is formed
that opens lower and closes higher than the black candle open and close from the previous
day. This complete engulfing of the previous day's body represents overwhelming buying
pressure dissipating the selling pressure.
The Bearish Engulfing Pattern is directly opposite to the bullish pattern. It is created at the
end of an up-trending market. The black real body completely engulfs the previous day's
white body. This shows that the bears are now overwhelming the bulls.
The Dark Cloud Cover is a two-day bearish pattern found at the end of an upturn or at the
top of a congested trading area. The first day of the pattern is a strong white real body. The
second day's price opens higher than any of the previous day's trading range.
The Piercing Pattern is a bottom reversal. It is a two candle pattern at the end of a declining
market. The first day real body is black. The second day is a long white body. The white day
opens sharply lower, under the trading range of the previous day. The price comes up to
where it closes above the 50% level of the black body.
Hammer and Hanging-man are candlesticks with long lower shadows and small real bodies.
The bodies are at the top of the trading session. This pattern at the bottom of the down-trend
is called a Hammer. It is hammering out a base. The Japanese word is takuri, meaning "trying
to gauge the depth"
The Morning Star is a bottom reversal signal. Like the morning star, the planet Mercury, it
foretells the sunrise, or the rising prices. The pattern consists of a three day signal.
The Evening Star is the exact opposite of the morning star. The evening star, the planet
Venus, occurs just before the darkness sets in. The evening star is found at the end of the
uptrend.
A Shooting Star sends a warning that the top is near. It got its name by looking like a
shooting star.The Shooting Star Formation, at the bottom of a trend, is a bullish signal. It is
known as an inverted hammer. It is important to wait for the bullish verification. Now that we
have seen some of the basic signals, let's take a look at the added power of some of the other
formations.
Page | 85
References
Websites:
 Available from: http://www.nseindia.com/ [Assessed March and April 2010]
 Available from: http://economictimes.indiatimes.com/Markets/Stocks/listpage/
[Assessed April 2010]
 Available from: http://www.icharts.in/charts-old.html [Assessed May 2010]
 Available from: https://www.cia.gov/library/publications/the-world-factbook/
[Assessed March, April and May 2010]
Software:
 Prowess (Cmie)
 Iris (Spider Software)
Magazine:
 Data Bank, Dalal Street, 28th March 2010, Volume xxv. No.7
Books:
 Steven Achelis,2003, Technical Analysis from A-Z, Equis International Inc.
 Technical and Fundamental Analysis by Indian Institute of Banking and Finance
 Bodie, Kane, Marcus and Mohanty,2010,8th Edition, Investments, Tata McGraw Hill.
Page | 86

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Fundamental and

Name :- Dhwani Shah Enrollment

FUNDAMENTAL AND TECHNICAL ANALYSIS

Company Guide Mr. Bhavik Shah

Faculty Guide Prof. Mayank Patel

A Report submitted in partial fulfilment of the requirement of the

DATE OF SUBMISSION: 15th May, 2010

Limitations of the Study:

What Is Fundamental Analysis?

Drawbacks of Fundamental Analysis:

The Indian Economy:

GDP - real growth rate (%) 9.2 9

Inflation rate (consumer prices) (%)

Nifty Returns (%)

The Industries in the Economy:

 Enterprise Software: These automate business process in diverse verticals like

Recent Investments in the Indian Cement Industry

16% Domestic Market Share for 2008-09

 Hindustan Aluminum Company (HINDALCO): Hindalco is the biggest player in the

India as an emerging telecom equipment manufacturing Market: The manufacturing of

showed a profit of Rs 116.6 crores as compared to Rs 394.5 crores deficit,

What Is Technical Analysis?

3% Share Holding Directors

Industry: Cement & Cement Products Face Value: Rs10.00

Year EPS P/B P/E

Year EPS P/B P/E

AXIS BANK LTD.

Industry: Banking Services Face Value: Rs10.00

Year EPS P/B P/E D.Y

BHARAT HEAVY ELECTRICALS LTD..

15% Foreign NRI

BHARAT PETROLEUM CORPORATION LTD.

Industry: Petroleum products (Refineries) Face Value: Rs10.00

Share Holding Promoters

13% Other Companies

BHARTI AIRTEL LTD.

Industry: Telecommunications – Service Face Value: Rs5.00

Year EPS P/B P/E D.Y

Year EPS P/B P/E

Industry: Pharmaceuticals. Face Value: Rs 2.00

Year EPS P/B P/E D.Y

Industry: Construction and Contracting - Real Face Value: Rs 2.00

4% Share Holding Promoters

Year EPS P/B P/E D.Y

GAIL (INDIA) LTD.

GRASIM INDUSTRIES LTD

Share Holding Promoters

Year EPS P/B P/E D.Y

HCL TECHNOLOGIES LTD.

Industry: Computers - Software Face Value: Rs 2.00

Share Holding Promoters

Year EPS P/B P/E D.Y

HDFC BANK LTD

Year EPS P/B P/E D.Y

HERO HONDA MOTORS LTD.

Year EPS P/B P/E D.Y

HINDALCO INDUSTRIES LTD.

Year EPS P/B P/E D.Y

HINDUSTAN UNILEVER LTD.

Year EPS P/B P/E

HOUSING DEVELOPMENT FINANCE CORPORATION LTD.