A comparative STUDY ON technical ANALYSIS IN IT SECTORs AND

INDUSTRIAL SECTORs WITH special REFERNCE TO PATERSON SECURITIES

ABSTRACT

Technical analysis involves a study of market generated data like price and volumes to
determine the future directions of price movements. The term technical analysis is used to mean
a wide range of techniques all based on the concept that past information on the prices and
trading volume of stocks gives the enlightened investor a picture of what lies ahead. It attempts
to explain and forecast changes in security prices by studying only the market data rather than
information about a company or its prospects as is done in fundamental analysis.

The required data are collected from the Paterson securities PVT LTD. This is
divided into two categories. They are primary and secondary data. Secondary data are already
existing data like previous months stock prices.

The major objective of the projects is to find our appropriate time to buy and sell
securities based on selected indicators.

The different methods use to analysis the trends of the securities are exponential moving
average (EMA), moving average convergence divergence (MACD), Relative strength index
(RSI), Candle stick and rate of change (ROC).
 COMPANY PROFILE

ABOUT PATERSON

Over the years the Paterson Group has built a diversified customer profile consisting of
leading financial institutions, large corporate groups, high net worth individual clients, NRIs and
a large retail clientele of over 12,000.

Many men, able and experienced, have steered the firm over the years, through changes and
developments, yet on the same guiding principles. As a result, the operations have always been
contemporary in their currency, and historic upon review.

Started in 1892 as Huson, Tod & Co., the firm was the first stock broking house in South India,
and was trading across global stock broking platforms, like the London Stock Exchange,
Malaysian Stock Exchange, Singapore Stock Exchange, to name a few.

In 1935, it was acquired by Mr. R. C. Paterson, who was later joined by Mr. H. Haddow as a
partner. Subsequently >K. S. Vaidyanathan and Mr. E. V. Rajagopalan, successfully steered the
company in the early years and developed it into a formidable force in the Indian capital
markets.

Mr. Vepa Ramesam, who retired in 1993, played a considerable role in the development of the
company.

Mr. V. Sriram, former Chairman of the company, had been with the company for close to 45
years at the time of retiring in 2009 and played a significant role in positioning the company for
its next phase of growth. He smoothly managed the transition from being a privately held
company to becoming a part of a global conglomerate, thus preparing a historic brand like
Paterson for a new era of growth.

In 2009, Paterson became a subsidiary of Hinduja Bank (Switzerland) Ltd. and the organisation
is currently headed by Mr. Ivan Schouker as Chairman and Mr. M. Amarnath as the CEO.
Shareholding Structure

Hinduja Bank (Switzerland) Ltd.

Owns 50.99% stake in Paterson Securities Pvt Ltd, while the rest of the stake is held by
the promoters.

Hinduja Bank (Switzerland) Ltd.,

Our parent company, Hinduja Bank (Switzerland) Ltd., previously known as Amas Bank
(Switzerland) Ltd., was founded as a finance company in 1978 and became a Swiss regulated
bank in 1994.

Headquartered in Geneva, the Bank has developed its network in Switzerland with offices in
Zurich, Lucerne, Basle and St Margrethen. Its global reach includes a presence in Dubai,
London, Paris, New York and Mauritius.

Over the years, its core businesses have expanded to comprise Wealth Management, Trade
Finance Services and Corporate Advisory. The latter includes Mergers & Acquisitions and
advice to companies investing in the emerging markets where Hinduja Bank (Switzerland) Ltd.
has long-standing expertise.

In India, Hinduja Bank (Switzerland) Ltd has a strategic alliance with IndusInd Bank, and to
facilitate FII investments in Indian equity, it has a Mauritius registered subsidiary.
Board of Directors

Mr. Ivan Schouker

Chairman cum Director

Mr. V. Sriram
Director

Mr. M. Amarnath
Director cum CEO

Mr. Chidambaram Muthukaruppan

Director

Mr. P Raghu Raman

Director

Mr. Kapparath Muraleedharan

Director

Mr. Sathia Solomon Raj

Director

Mr. Prabal Banerjee

Director

Mr. T T Rammohan
Director
Senior Management Team

Mr. M Amarnath
Director cum CEO

Mr. Paresh Sheth

Deputy Chief Executive Officer

Mr. Chidambaram Muthukaruppan

Director

Mr. M. Hari Haran

Compliance Officer

Mr. Jaishankar
Head – Business Development, Corporate Clients Group

Mr. R. M. Meyyappan
Debt Market-In-Charge

Mr. S. R. Nataraj
Head – Distribution

Mr. W. Oliver Samuel

Manager – Business Development, Currency Trading

Mr. S. Ramachandran
Depository – In-charge

Mr. Sanjeev Kesu

Principal Officer – Portfolio Management Services

Mr. S. Sathya Narayanan

Vice President – Equity Sales & Franchisee Network

Mr. V. Subramanian
Chief Dealer

Ms. Vidhi Kumar

Senior Manager – Marketing
Mr. Vignesh S.
Market Strategist

Core Activities

Stock Broking
Member of the National Stock Exchange
NSE SEBI Registration No. INB 0230838835
Member of the Bombay Stock Exchange
BSE SEBI Registration No. INB 010838838
Member of the Madras Stock Exchange
MSE-SEBI Registration No. INB 041 251431

Actively trading in the Derivatives market – Futures and Options

NSE SEBI Registration No. INF 0230838835

SEBI Approved Portfolio Managers

PMS Registration No. PM/INP 000003856

Depository Participant with CDSL

Membership of MCX SX and NSE in the Currency Derivatives Segment .

Mutual Fund Distribution

AMFI Registration No. ARN 3077

Advisory services on Investment avenues.

Currency Derivatives Trading

MCX SX Membership Registration No. - INE260838835

NSE Membership Registration No. - INE230838835
Milestones

1892 - Tod & Co., the first stock broking firm in South India

1935 - Huson, Tod & Co. taken over by Mr. R.C. Paterson and promoted as “Paterson &
Company”, later joined by Mr. H. Haddow as partner

1937 - Founder Member of Madras Stock Exchange

1996 - Commencement of NSE Capital Market operation

2001 - Commencement of NSE Futures and Options Market operations

2004 - Commencement of SEBI approved Portfolio Management Services

2005 - Depository Participant with CDSL; Membership of the BSE

2008 - Membership with NSE and MCX for Currency Derivatives

2009 - Paterson Securities Pvt. Ltd. becomes a subsidiary of Hinduja Bank (Switzerland) Ltd.

Equities

We offer Equity Broking Services through Paterson Securities Pvt. Ltd. The company is a
corporate member of both The Bombay Stock Exchange and The National Stock Exchange of
India Limited, providing equity broking services, as well as marketing of equity related products,
including IPOs/FCCBs, to retail as well as institutional investors. Our range of services includes:

Equity Broking – Retail

Equity Broking – Institutional

Depository
Wealth Management

Paterson Securities offers Wealth Management advisory services that incorporate financial
planning, portfolio management, mutual funds and other aggregated financial services. We have
been pioneers in the this field, even before it came of age, and have been servicing four
generations of investors in their wealth management needs.

WE FOLLOW A TWO-FOLD STRATEGY IN MANAGING WEALTH:

1. Capital preservation
2. Tapping growth opportunities for wealth maximization

OUR SERVICES INCLUDE:

• Portfolio Management Services

• Mutual Funds
• Derivative Strategies
• Gold
• IPOs

BENEFITS OF WEALTH MANAGEMENT:

• Tax optimization through right mix of asset classes and products

• Systematic approach to wealth maximization
• Improving returns on investment through professional expertise
• Diversification of investment avenues to minimize risk
Investment Banking

Paterson Consulting Group Pvt. Ltd. (PCG) is the investment banking subsidiary of Paterson
Securities Pvt. Ltd., one of India’s leading financial services organizations.

Our Investment Banking arm is dedicated to providing corporations and investors, the highest
quality independent financial advice and transaction execution encompassing

• Equity and Debt Capital Markets

• M&A Advisory
• Restructuring and Recapitalization
• Structured Finance services
• Private Equity Advisory
• Infrastructure Advisory

PCG has unparalleled experience across all major industry sectors –

• Banking & Financial services

• FMCG
• Pharmaceuticals & Healthcare
• Power
• Transportation
• Logistics
• Automobiles

• SEZs
• Media & Entertainment
• Retailing
• Metals and Minerals
• Technology
• Renewable Energy
• Telecom

Our focused effort and research-driven approach enable our professionals to be among the most
knowledgeable and best in the business. Our business has been built on strong relationships,
innovation, and uncompromising ethical standards over more than 10 decades. We aim to create
significant value for companies by helping them execute the right strategy.

Debt Instuments

WHAT ARE DEBT INSTRUMENTS?

Paterson Securities offers its clients the opportunity to participate in one of the safest financial
instruments – Debt. A debt instrument is any document used or issued for raising money, for
example, a bill of exchange, bond, or promissory note. It is in essence a contractual or written
promise to repay a debt.

WE SPECIALIZE IN THE OFFERING THE FOLLOWING SERVICES:

• Government Securities
• Bonds issued by Corporate bodies, including Banks and Public Financial Institutions
In most cases a debt instrument can be sold, traded, or otherwise used as a form of currency or
barter, with the debt owed to the debt instrument's current holder. A debt instrument backed by a
government agency – such as a Government of India Treasury Bond – or a highly-rated
corporate bond with a fixed rupee payment may be defined as an asset. Defaulting on a debt
instrument may result in the loss of the pledged collateral, or in a reduction of the credit rating of
the entity which issued the debt instrument.

BENEFITS OF INVESTING IN DEBT INSTRUMENTS:

• Relativelysafer investment avenue

• Easily Transferable ownership of debt
• Guaranteed rate of return (coupon rate)

THE PATEDGE: OUR VALUE PROPOSITION

• Personalised Service
• Expertise in buying and selling bonds to suit client’s needs
• Pioneers in the field with strong network
Currency Derivatives

WHAT ARE CURRENCY DERIVATIVES?

Currency derivative is a contract between the seller and buyer, whose value is to be derived from
the underlying asset, the currency amount. A derivative based on currency exchange rates is a
future contract which stipulates the rate at which a given currency can be exchanged for another
currency as at a future date.

CURRENCY FUTURES

Paterson offers its clients advisory and brokerage services for trading in the world's most traded
financial instrument – Currency Futures – through MCX-SX and NSE. Currency Futures, an
instrument in the Currency Derivatives segment, are similar in nature to Stock or Index Futures
contracts.

Contract Period: Available for the ensuing 12 months from the date of the contract

Expiry: Monthly expiry on the last business day of the month.

Settlement: The Mark-to-Market for Currency Futures is settled on a daily basis

We offer a comprehensive portfolio with the most traded exchange rates as the underlying for
currency futures contracts:

• INR: USD
• INR:EUR
• INR:CHF
• INR:JPR

BENEFITS OF CURRENCY FUTURES

• Hedging forex risks

• Potential to monetize fluctuations in exchange rates
• High Liquidity
• Extended trading hours - 9 am to 5 pm (Monday to Friday)
• Small lot size of only US $1000 with low exchange specified margins
CURRENCY FUTURES IS IDEALLY SUITED FOR THOSE WHO HAVE FOREIGN
CURRENCY EXPOSURE SUCH AS

• SMEs / Individuals involved in Imports/Exports

• Corporate/ Institutions involved in Imports/Exports

THE PATEDGE: OUR VALUE PROPOSITION

• Personalised Service
• Flexible Brokerage
• Hedging Capability
• Online and offline platforms available