Balaji Project

Technical Analysis of Cement Sector in India
Executive Summary
The main aim of the investor is to minimize the risk involved in investment &
maximize the return. Today there are number of options available to investor like Post
Office investment, Bank Deposit, Insurance, Mutual Fund, Stock Market etc...
Technical analysis is a financial markets technique that claims the ability to forecast
the future direction of security prices through the study of past market data, primarily
price and volume.
This project is about a brief introduction to Technical Analysis, different price

patterns and trends in financial markets and attempt to exploit that patterns.etc… The
contents in this project are made simple so as to make a layman understands the terms
used in the Technical Analysis.
The core area of this project focuses what a technical analysts may employ models
and trading rules based, for example, on price transformations, such as the Relative
Strength Index, moving averages, through recognition of chart patterns. This project
contains some elementary statistics which are used in calculation which help in
drawing inferences.
The objective of the study helps to predict or forecast the short, intermediate & long
term price movements. When to buy and sell stock by analyzing technical indicators.
And helps to measure to the rate of change between the current price and price in
past and to identify overbought& oversold region. The art of technical analysis for it
is an art is to identify trend changes at an early stage and to maintain an investment an
investment posture until the weight of the evidence indicates that the trend has been
reversed.
Technical Analysis also provides a comprehensive study on stock historical price

charts and predicts the future trend in the market. But still there is much controversial
opinion on the validity of technical trading rule. It requires more study to prove the
usefulness of technical analysis in investor’s buy/sell/hold decision making.
The Administrative management college, Bangalore. 1

INTRODUCTION
ABOUT TECHNICAL ANALYSIS:
Technical analysis is a financial markets technique that claims the ability to forecast
the future direction of security prices through the study of past market data, primarily
price and volume. In its purest form, technical analysis considers only the actual price
behavior of the market or instrument, on the assumption that price reflects all relevant
factors before an investor becomes aware of them through other channels.
Technical analysts may employ models and trading rules based, for example, on price
transformations, such as the Relative Strength Index, moving averages, regressions,
inter-market and intra-market price correlations, cycles or, classically, through
recognition of chart patterns.
General description
Technical analysts (or technicians) seek to identify price patterns and trends in
financial markets and attempt to exploit those patterns. While technicians use various
methods and tools, the study of price charts is primary. Technicians especially search
for archetypal patterns, such as the well-known head and shoulders reversal pattern,
and also study such indicators as price, volume, and moving averages of the price.
Many technical analysts also follow indicators of investor psychology.
Critics argue that these 'patterns' are simply random effects on which humans impose
causation. They state that human see patterns that aren't there and then ascribe value
to them.
Technical analysts also extensively use indicators, which are typically mathematical
transformations of price or volume. These indicators are used to help determine
whether an asset is trending, and if it is, its price direction. Technicians also look for
relationships between price, volume, and in the case of futures, open interest.
Examples include the relative strength index, and MACD. Other avenues of study

include correlations between changes in options [implied volatility] and put/call ratios
with price.
Technicians seek to forecast price movements such that large gains from successful
trades exceed more numerous but smaller losing trades, producing positive returns in
the long run through proper risk control and money management.
Technical analysis is frequently contrasted with fundamental analysis, the study of

economic factors that some analysts say can influence prices in financial markets.
Pure technical analysis holds that prices already reflect all such influences before
investors are aware of them, hence the study of price action alone. Some traders use
technical or fundamental analysis exclusively, while others use both types to make
trading decisions.
Lack of evidence
Critics of technical analysis include well known fundamental analysts. For example,
Peter Lynch once commented, "Charts are great for predicting the past." Warren
Buffet has said, "I realized technical analysis didn't work when I turned the charts
upside down and didn't get a different answer" and "If past history was all there was
to the game, the richest people would be librarians”.
Most academic studies say technical analysis has little predictive power, but some
studies say it may produce excess returns. For example, measurable forms of
technical analysis, such as non-linear prediction using neural networks, have been
shown to occasionally produce statistically significant prediction results. A Federal
Reserve working paper regarding support and resistance levels in short-term foreign
exchange rates "offers strong evidence that the levels help to predict intraday trend
interruptions," although the "predictive power" of those levels was "found to vary
across the exchange rates and firms examined."

Efficient market hypothesis
The efficient market hypothesis (EMH) contradicts the basic tenets of technical
analysis, by stating that past prices cannot be used to profitably predict future prices.
Thus it holds that technical analysis cannot be effective. Economist Eugene Fame
published the seminal paper on the EMH in the Journal of Finance in 1970, and said
"In short, the evidence in support of the efficient markets model is extensive, and
contradictory evidence is sparse”. EMH advocates say that if prices quickly reflect all
relevant information, no method (including technical analysis) can "beat the market."
Developments which influence prices occur randomly and are unknowable in
advance.
Technicians say that EMH ignores the way markets work, in that many investors base
their expectations on past earnings or track record, for example. Because future stock
prices can be strongly influenced by investor expectations, technicians claim it only
follows that past prices influence future prices.
Random walk hypothesis
The random walk hypothesis may be derived from the weak-form efficient markets
hypothesis, which is based on the assumption that market participants take full
account of any information contained in past price movements."The problem is that
once such regularity is known to market participants, people will act in such a way
that prevents it from happening in the future”.
History
The principles of technical analysis derive from the observation of financial markets
over hundreds of years. The oldest known example of technical analysis was a
method used by Japanese traders as early as the 18th century, which evolved into the
use of candlestick techniques, and is today a main charting tool. Many more technical
tools and theories have been developed and enhanced in recent decades, with an
increasing emphasis on computer-assisted techniques.

Principles of technical analysis
Technicians say that a market's price reflects all relevant information, so their analysis
looks more at "internals" than at "externals" such as news events. Price action also
tends to repeat itself because investors collectively tend toward patterned behavior --
hence technicians' focus on identifiable trends and conditions.
Market action discounts everything
On most of the sizable return days the information that the press cites as the cause of
the market move is not particularly important. Press reports on adjacent days also fail
to reveal any convincing accounts of why future profits or discount rates might have
changed. Our inability to identify the fundamental shocks that accounted for these
significant market moves is difficult to reconcile with the view that such shocks
account for most of the variation in stock returns.
Prices move in trends
Technical analysts believe that prices trend. Technicians say that markets trend up,
down, or sideways (flat). An example of a security that had an apparent trend is AOL
from November 2001 through August 2002. A technical analyst or trend follower
recognizing this trend would look for opportunities to sell this security. AOL
consistently moves downward in price. Each time the stock rose, sellers would enter
the market and sell the stock; hence the "zig-zag" movement in the price. In other
words, each time the stock edged lower, it fell below its previous relative low price.
History tends to repeat itself
Technical analysts believe that investors collectively repeat the behavior of the
investors that preceded them. Technical analysis is not limited to charting, yet is
always concerned with price trends. For example, many technicians monitor surveys
of investor sentiment.. Technicians use these surveys to help determine whether a
trend will continue or if a reversal could develop; they are most likely to anticipate a
change when the surveys report extreme investor sentiment.

Rule-based trading
Rule-based trading is an approach to make one's trading plans by strict and clear-cut
rules. Unlike some other technical methods or most fundamental analysis, it defines a
set of rules that determines all trades, leaving minimal discretion. For instance, a
trader might make a set of rules stating that he will take a long position whenever the
price of a particular instrument closes above its 50-day moving average, and shorting
it whenever it drops below.
Combining Technical Analysis with other Market Forecast Methods
John Murphy in his book "Technical Analysis of the Financial Markets", says that the
principal sources of information available to technicians are price, volume and open
interest. Other data, such as indicators and sentiment analysis are considered
secondary. Technical analysis is also often combined with quantitative analysis and
economics. For example, neural networks may be used to help identify inter market
relationships. A few market forecasters combine financial astrology with technical
analysis.
Charting terms and indicators
Widely-known technical analysis concepts include:
• Breakout - when a price passes through and stays above an area of support or
resistance
• Commodity Channel Index - identifies cyclical trends
• Momentum - the rate of price change
• Moving average - lags behind the price action
• Relative Strength Index (RSI) - oscillator showing price strength
• Resistance - an area that brings on increased selling

AN OVERVIEW OF STOCK MARKET:
A stock market is a private or public market for the trading of company stock and
derivatives of company stock at an agreed price; both of these are securities listed on
a stock exchange as well as those only traded privately.
Definition:
The expression 'stock market' refers to the market that enables the trading of company
stocks (collective shares), other securities, and derivatives. Bonds are still
traditionally traded in an informal, over-the-counter market known as the bond
market. Commodities are traded in commodities markets, and derivatives are traded in
a variety of markets (but, like bonds, mostly 'over-the-counter').
Market participants:
Many years ago, worldwide, buyers and sellers were individual investors, such as
wealthy businessmen, with long family histories to particular corporations. Over time,
markets have become more "institutionalized"; buyers and sellers are largely
institutions (e.g., pension funds, insurance companies, mutual funds, hedge funds,
investor groups, and banks).
The rise of the institutional investor has brought with it some improvements in market
operations. Thus, the government was responsible for "fixed" fees being markedly
reduced for the 'small' investor, but only after the large institutions had managed to
break the brokers' solid front on fees (they then went to 'negotiated' fees, but only for
large institutions).

Importance of stock market:
Function and purpose:
The stock market is one of the most important sources for companies to raise money.
This allows businesses to go public, or raise additional capital for expansion. The
liquidity that an exchange provides affords investors the ability to quickly and easily
sell securities. This is an attractive feature of investing in stocks, compared to other
less liquid investments such as real estate.
Relation of the stock market to the modern financial system:
The financial system in most western countries has undergone a remarkable

transformation. One feature of this development is disintermediation. A portion of the
funds involved in saving and financing flows directly to the financial markets instead
of being routed via banks' traditional lending and deposit operations. The general
public's heightened interest in investing in the stock market, either directly or through
mutual funds, has been an important component of this process. Statistics show that in
recent decades shares have made up an increasingly large proportion of households'
financial assets in many countries.
1. The Stock Market, individual investors & financial risk:
Riskier long-term saving requires that an individual possess the ability to manage the
associated increased risks. Stock prices fluctuate widely, in marked contrast to the
stability of bank deposits or bonds. This is something that could affect not only the
individual investor or household, but also the economy on a large scale. This is
certainly more important now that so many newcomers have entered the stock market,
or have acquired other 'risky' investments.
Irrational behavior:
Sometimes the market tends to react irrationally to economic news, even if that news
has no real affect on the technical value of securities itself. Therefore, the stock

market can be swayed tremendously in either direction by press releases, rumors,

euphoria and mass panic. Over the short-term, stocks and other securities can be
battered or buoyed by any number of fast market-changing events, making the stock
market difficult to predict.
4. The Crashes:
A stock market crash is often defined as a sharp dip in share prices of equities listed
on the stock exchanges. In parallel with various economic factors, a reason for stock
market crashes is also due to panic. Often, stock market crashes end up with
speculative economic bubbles.
Stock market index:
The movements of the prices in a market or section of a market are captured in price
indices called stock market indices, of which there are many, e.g., the S&P, the FTSE
and the Euro next indices. Such indices are usually market capitalization (the total
market value of floating capital of the company) weighted, with the weights reflecting
the contribution of the stock to the index. The constituents of the index are reviewed
frequently to include/exclude stocks in order to reflect the changing business
environment.
Derivative instruments:
Financial innovation has brought many new financial instruments whose pay-offs or
values depend on the prices of stocks. Some examples are exchange-traded funds
(ETFs), stock index and stock options, equity swaps, single-stock futures, and stock
index futures. These last two may be traded on futures exchanges (which are distinct
from stock exchanges—their history traces back to commodities futures exchanges),
or traded over-the-counter. As all of these products are only derived from stocks, they
are sometimes considered to be traded in a (hypothetical) derivatives market, rather
than the (hypothetical) stock market.

Leveraged Strategies:
Stock that a trader does not actually own may be traded using short selling; margin
buying may be used to purchase stock with borrowed funds; or, derivatives may be
used to control large blocks of stocks for a much smaller amount of money than
would be required by outright purchase or sale.
1. Short selling:
In short selling, the trader borrows stock (usually from his brokerage which holds its
clients' shares or its own shares on account to lend to short sellers) then sells it on the
market, hoping for the price to fall. The trader eventually buys back the stock, making
money if the price fell in the meantime or losing money if it rose. Exiting a short
position by buying back the stock is called "covering a short position." This strategy
may also be used by unscrupulous traders to artificially lower the price of a stock.
Hence most markets either prevent short selling or place restrictions on when and how
a short sale can occur.
2. Margin buying:
In margin buying, the trader borrows money (at interest) to buy a stock and hopes for
it to rise. Most industrialized countries have regulations that require that if the
borrowing is based on collateral from other stocks the trader owns outright, it can be a
maximum of a certain percentage of those other stocks' value. A margin call is made
if the total value of the investor's account cannot support the loss of the trade.
Regulation of margin requirements (by the Federal Reserve) was implemented after
the Crash of 1929. Before that, speculators typically only needed to put up as little as
10 percent (or even less) of the total investment represented by the stocks purchased.

New issuance:
Global issuance of equity and equity-related instruments totaled $505 billion in 2004,
a 29.8% increase over the $389 billion raised in 2003. Initial public offerings (IPOs)
by US issuers increased 221% with 233 offerings that raised $45 billion, and IPOs in
Europe, Middle East and Africa (EMEA) increased by 333%, from $ 9 billion to $39
billion.
Investment strategies:
One of the many things people always want to know about the stock market is, "How
do I make money investing?" There are many different approaches; two basic
methods are classified as either fundamental analysis or technical analysis.
Fundamental analysis refers to analyzing companies by their financial statements
found in SEC Filings, business trends, general economic conditions, etc. Technical
analysis studies price actions in markets through the use of charts and quantitative
techniques to attempt to forecast price trends regardless of the company's financial
prospects.
Taxation:
According to each national or state legislation, a large array of fiscal obligations must
be respected regarding capital gains, and taxes are charged by the state over the
transactions, dividends and capital gains on the stock market, in particular in the stock
exchanges. However, these fiscal obligations may vary from jurisdiction to
jurisdiction because, among other reasons, it could be assumed that taxation is already
incorporated into the stock price through the different taxes companies pay to the
state, or that tax free stock market operations are useful to boost economic growth.

RESEARCH DESIGN:
Research design is the blue print of the study. It provides a framework under which
the research has been conducted. It includes title of the study, problem statement,
objectives, scope & limitations of the study, methods used for data collection and
interpretation and an overview of chapter scheme.
2.1 Title of the Project

A Study on Technical analysis of cement sector in India.
2.2 Statement of Problem

Technical analysts (or technicians) seek to identify price patterns and trends in
financial markets and attempt to exploit those patterns; the main problem is that these
patterns are simply random effects on which humans impose causation.
2.3 Review of Literature

Neftci (1991) showed that few of the rules used in technical analysis generate well-
defined techniques of forecasting, but even well –defined rules are shown to be
useless in prediction if the economic times series in Gaussain. How ever, if the
processes under consideration are nonlinear, then the rules might capture some
information. Tests showed that this may indeed to be the case for the following
average rule.
Taylor and Allen (1992) report the results of the survey among chief foreigner
exchange dealer based in London in November 1988 and found that at least 90
percent of respondent placed some weights on technical analysis and that there was
skew towards using technical, rather than fundamental analysis at shorter time
horizons.
In a comprehensive and influential study Brock, Lakonishok and Lebaron (1992)

analyzed 26 technical trading rules using 90 years of daily stock prices from the Dow
Jones industrial average up to 1987 and found that they all outperformed market.

Blume, Easiey and O’ Hara (1994) show that volume provides information on
information quality that cannot be deducted from price. They also show that traders
who use information contained in market statistics do better than traders who do not
Kavajecz and Odders – White (2004) show that support and resistance levels coincide
with peaks in depth on the limit order book and moving average forecasts reveal
information about the relative position of depth on the book. They also show that
these relationships stem from technical rules locating depth already in place on the
limit order book
2.4 Objective of Study

1. To find out the accuracy of technical analysis in individual stock price prediction.
2. To determine the trend of the stock prices using technical analysis.
3. To predict the future share price movements of particular scripts.
2.5 Scope of the Study

Technical analysis is widely used by forex, equity, and commodity traders, to
determine the short term as well as the long term trends of the market. The scope of
technical analysis is increasing every day, as more and more people are trying to learn
the skills of technical analysis to earn good returns.
2.6 Methodology
The data collected for the research purpose are secondary data. Closing prices of
scripts were collected through National Stock Exchange website. The data employed
in this study comprises of five year observations on the Cement Sector companies’
Closing price.

SECONDARY DATA:
Secondary data refers to those data that has already been collected and
analyzed by someone else. In other words secondary data is the information
that already exists somewhere having been collected for another purpose. It this
study secondary data was collected from various sources like:
• Web sites
• Text Books
• Business magazines.

2.7 Statistical Tools Used in Analysis of Study:

1. Moving Average.
2. Relative strength index.
1) Moving Average.
Moving average is an indicator that shows the average value of a security's price over
a period of time. To find the 50-day moving average you would add up the closing
prices (but not always…more later) from the past 50 days and divide them by 50. And
because prices are constantly changing it means the moving average will move as
well.
The most commonly used moving averages are the 20, 30, 50, 100, and 200-day
averages. Each moving average provides a different interpretation on what the stock
price will do. Moving averages with different time spans each tell a different story.
The shorter the time span, the more sensitive the moving average will be to price
changes. The longer the time span, the less sensitive or the more smoothed the
moving average will be. Moving averages are used to emphasize the direction of a
trend and smooth out price and volume fluctuations or that can confuse interpretation.
The general assumption behind all moving averages is that once the stock price moves
above the average it may have substantial momentum behind it and is worth buying.
The opposite is true if the price of a security moves below the moving average.
Typically, when a stock price moves below its moving average it is a bad sign
because the stock is moving on a negative trend. The opposite is true for stocks that
exceed their moving average - in this case, hold on for the ride.

2) Relative strength index:

There are a few different tools that can be used to interpret the strength of a stock.
One of these is the Relative Strength Index (RSI), which is a comparison between the
days that a stock finishes up and the days it finishes down. This indicator is a big tool
in momentum trading.
The RSI is a reasonably simple model that anyone can use. It is calculated using the
following formula.
RSI = 100 - [100/ (1 + RS)]
RS = (Avg. of n-day up closes)/(Avg. of n-day down closes)
The RSI ranges from 0 to 100. At around the 70 levels, a stock is considered
overbought and you should consider selling. In a bull market some believe that 80 is a
better level to indicate an overbought stock since stocks often trade at higher
valuations during bull markets. Likewise, if the RSI approaches 30, a stock is
considered oversold and you should consider buying. Again, make the adjustment to
20 in a bear market.
The smaller the number of days used, the more volatile the RSI is and the more often
it will hit extremes. A longer term RSI is more rolling, fluctuating a lot less. Different
sectors and industries have varying threshold levels when it comes to the RSI. Stocks
in some industries will go as high as 75-80 before dropping back, while others have a
tough time breaking past 70. A good rule is to watch the RSI over the long term (one
year or more) to determine at what level the historical RSI has traded and how the
stock reacted when it reached those levels.

2.9 Overview of Report
Chapter scheme:
Chapter 1: Introduction
This chapter includes Introduction of Technical analysis and Cement sector.
Chapter 2: Research design

Research design is the blue print of the study. It provides a framework under which
the research has been conducted. It includes title of the study, problem statement,
objectives, scope & limitations of the study, methods used for data collection and
interpretation and an overview of chapter scheme.
Chapter 3: Industry profile

This chapter covers the industry profile.
Chapter 4: Analysis and Interpretation of data

This chapter includes the data collected for the purpose of research and the
interpretation of the data, tables and graphs are used wherever necessary.
Chapter 5: Summary of Findings, Conclusions &Recommendations

This chapter provides major findings and conclusions of the study for it also includes
the recommendation made by the researcher.
Bibliography
Annexure

3. INDUSTRY PROFILE
INTRODUCTION TO CEMENT SECTOR
India is today the second largest producer of cement in world with an installed
capacity of close to 155 million tonnes per year. 95 % is consumed domestically and
only 5% is exported. Demand is growing at more than 10 % per annum. More than
90 % of production comes from large cement plants. There are a total of 130 large and
more than 350 small cement manufacturing units in the country. More than 80% of
the cement-manufacturing units use modern environment friendly “dry” process.
The forms of cement produced:
• Ordinary Portland Cement

• Portland Pozzolana Cement
• Portland Slag Cement
• Blended Cement
Major players in Indian cement sector:
• Heidelberg
• Lafarge
• Italcementi
• Holcim
• Gujrat Ambuja Cement
• ACC
• Ultratech Cement
• India Cements
• Century Cements
• Jaypee Group
• Madras Cements
• Dalima cements
India’s per capita cement production: 130 kg per annum. World average of per capita
cement production: More than 280 kg per annum.

Bottlenecks of Cement Industry:
• A comparison of the energy efficiency of Indian cement industry with that of

other developed nations shows Indian companies are lagging.
• Regional imbalances in cement production.
• High transportation cost involved.
I have taken five Cement Sector Companies which are as follows:
1. ACC
2. ULTRATECH.
3. GRASIM.
4.BIRLA SUPER
5.AMBUJA
1. ACC:
ACC Limited is India’s foremost manufacturer of cement and ready mix concrete
with a countrywide network of factories and marketing offices. Established in 1936,
ACC has been a pioneer and trendsetter in cement and concrete technology. ACC’s
brand name is synonymous with cement and enjoys a high level of equity in the
Indian market. It is the only cement company that figures in the list of Consumer
SuperBrands of India. Among the first companies in India to include commitment to
environment protection as a corporate objective, ACC has won several prizes and
accolades for environment friendly measures taken at its plants and mines. The
company has also been felicitated for its acts of good corporate citizenship.
ACC was the first recipient of ASSOCHAM’s first ever National Award for
outstanding performance in promoting rural and agricultural development activities in
1976. Decades later, PHD Chamber of Commerce and Industry selected ACC as
winner of its Good Corporate Citizen Award for the year 2002. Over the years, there

have been many awards and felicitations for achievements in Rural and community
development, Safety, Health, Tree plantation, afforestation, clean mining,
Environment awareness and protection.
2. ULTRATECH:
Ultratech Cement Limited, a Grasim subsidiary has an annual capacity of 17 million

tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast
Furnace Slag Cement and Portland Pozzolana Cement.
UltraTech has five integrated plants, five grinding units and three terminals — two in
India and one in Sri Lanka. These include an integrated plant and two grinding units
of the erstwhile Narmada Cement Company Limited, a subsidiary, which has been
amalgamated with the company in May 2006.UltraTech is the country's largest
exporter of cement clinker. The company exports over 2.5 million tonnes per annum,
which is about 30 per cent of the country's total exports. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East.
The cement division of L&T was demerged in 2004 after Grasim made the 30 per
cent open offer for equity shares, gaining control over the new company, christened
UltraTech. Ready Mix Concrete is likely to see substantial growth in the coming
years. Recognizing the opportunities that this business will offer, UltraTech has
commenced setting up of Ready Mix Concrete plants at various places in the country.
UltraTech's subsidiaries are: Dakshin Cements Limited and UltraTech Ceylinco
(Private) Limited.

3. GRASIM:
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks
among India's largest private sector companies, with consolidated net revenues of
Rs.141 billion and a consolidated net profit of Rs.20 billion(FY2007).
Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise
viscose staple fiber (VSF), cement, sponge iron, chemicals and textiles. Its core
businesses are VSF and cement, which contribute to over 90 per cent of its venues
and operating profits.
The Aditya Birla Group is the world’s largest producer of VSF, commanding a 21 per
cent global market share. Grasim, with an aggregate capacity of 270,100 tpa has a
global market share of 11 per cent. It is also the second largest producer of caustic
soda (which is used in the production of VSF) in India.
In cement(grey cement and white cement), Grasim along with its subsidiary
UltraTech Cement Ltd. has a capacity of 30 million tpa and is a leading cement player
in India. In July 2004, Grasim acquired a majority stake and management control in
UltraTech Cement Limited. One of the largest of its kind in the cement sector, this
acquisition catapulted the Aditya Birla Group to the top of the league in India.
All of Grasim's units have earned ISO 9002 and 14001 certifications.
Product quality, innovation and eco-friendliness are a hallmark of all the company's
divisions.

2. BIRLA SUPPER
It is a unit of Grasim Birla Super Cement is a grinding unit of 1.5 Million Tons
capacity with a modern technology manufacturing process involves a level of
sophistication & new to the Cement industry.
The technology was supplied by 'Krupp Polysis" of Germany such as Roller Press,
Grinding Mill. Electronic Packer enables for automatic packing & weighing of
Cement Bags. Unloading of raw material (Clinker), which is being received from
railway, Wagons are unloaded by atomised 'Wagon Tippler'. All the process of
manufacturing and packing are atomized & is controlled through electronic devices &
PLC at Central Control Rooms Plant, Packing Plant & Wagon Tippler.
Three grades of Products i.e. OPC 43 Grade, OPC 53 & PPC are manufactured. The
brand names of these qualities are 'Rajashree', 'Birla Super' & 'Birla Plus' respectively.
The plant power is connected to 132 KV Power supply of MSEB grid & having
connected load of 12650 KW. All Electrical & Instruments equipment is of latest
design & high efficiency.
The unit has won the National Award for the "Excellence in Energy conservation"
from the CII for
the 2000-'00 & 2001-'02 consecutively for the outstanding saving in energy.
The unit has bagged 'National Award' for 'Energy Conservation & Energy
Management' organised by CII for twice i.e., 2000-'00 & 2001-'02.
Management of 'Birla Super Cement' takes keen interest in reduction of 'energy cost'
by implementing energy conservation activities and managing plant operating times
to avail the maximum benefits from the State Electricity Board in 'Power factor',
'Night Consumption rebate
& 'Bulk discount'.
Following are the major Environmental & Safety Activities done at our plant.
• Inclusion of PPC grade Cement to utilize waste fly ash from power plant.
• Atomized handling of fly ash through air tight tankers to avoid fugitive natural
escape of fly ash to environment.
• Pneumatic unloading systems for dust free unloading of fly ash from tankers.
• Installation of additional two dust collectors at W/T to avoid dust emission.
• Installation of gypsum shed of 2*5000 MT to avoid land contamination.
• Development of rain water harvesting reservoir.
• Covering of belt conveyors to avoid dust emission during transportation

AMBUJA CEMENT
Ambuja Cements was set up in 1986. In the last decade the company has grown
tenfold. The total cement capacity of the company is 18.5 million tonnes.
Its plants are some of the most efficient in the world. With environment protection
measures that are on par with the finest in the developed world.
The company's most distinctive attribute, however, is its approach to the business.
Ambuja follows a unique homegrown philosophy of giving people the authority to set
their own targets, and the freedom to achieve their goals. This simple vision has
created an environment where there are no limits to excellence, no limits to
efficiency. And has proved to be a powerful engine of growth for the company.
As a result, Ambuja is the most profitable cement company in India, and one of the
lowest cost producer of cement in the world.
environment policy is built around two simple truths. One, no cement plant can
flourish at the cost of the environment. As one of the countrys largest producers of
cement, with a large presence around the country, we have an obligation to protect the
environment we function in.
Also, as we discovered, being environmentally conscious, almost never interfered

with running a profitable business. In fact its quite the contrary.
Our efforts to achieve world standards in environment protection, for instance, have
had the happy outcome of substantially improving efficiency and profitability. The
fact is, a cleaner environment isnt just better for the people, it reduces wear and tear
on plants and machinery as well. Thus directly contributing to the bottom line.
Besides dust in cement plants is nothing but cement itself, which we capture and bag.
Our approach has made us the one of the worlds most environment friendly cement
companys. And the most profitable.

4. ANALSIS AND DATA INTERPRETATION:
Calculation:
1) ACC Ltd: MOVEING AVERAGE
MONT CLOSING SUM OF 12 AVERA SUM OF 3 AVERA

H PRICE MONTHS GE MONTHS GE
Apr-
05 365.7
May-
05 380.0295
38473.
Jun-05 379.965 115420 33
38503.
Jul-05 419.712 115511 67
Aug- 38534.
05 454.265 115603 33
Sep-
05 476.661 115695 38565
Oct- 38595.
05 459.95 115787 67
Nov- 38626.
05 491.927 115879 33
Dec- 38656.
05 537.302 115970 67
38687.
Jan-06 550.105 116062 33
Feb-
06 591.089 116154 38718
Mar- 487.76
06 746.45 5853.1555 3 116244 38748
Apr- 533.99
06 920.461 6407.9165 3 116334 38778
May- 575.04 38807.
06 872.668 6900.555 63 116423 67
605.55 38838.
Jun-06 746.121 7266.711 93 116515 33
638.50 38868.
Jul-06 815.035 7662.034 28 116606 67
Aug- 674.69 38899.
06 888.531 8096.3 17 116698 33
Sep- 714.19
06 950.759 8570.398 98 116790 38930

Oct- 757.88 38960.

06 984.125 9094.573 11 116882 67
Nov- 804.25 38991.
06 1048.402 9651.048 4 116974 33
Dec- 848.78 39021.
06 1071.675 10185.421 51 117065 67
891.57 39052.
Jan-07 1063.631 10698.947 89 117157 33
Feb- 926.10
07 1005.389 11113.247 39 117249 39083
Mar- 928.41
07 774.149 11140.946 22 117339 39113
Apr- 916.19
07 773.819 10994.304 2 117429 39143
May- 916.25 39172.
07 873.429 10995.065 54 117518 67
923.67 39203.
Jun-07 835.143 11084.087 39 117610 33
944.05 39233.
Jul-07 1059.651 11328.703 86 117701 67
Aug- 953.39 39264.
07 1000.509 11440.681 01 117793 33
Sep- 967.83
07 1124.04 11613.962 02 117885 39295
Oct- 981.20 39325.
07 1144.627 11774.464 53 117977 67
Nov- 982.30 39356.
07 1061.566 11787.628 23 118069 33
Dec- 980.75 39386.
07 1053.104 11769.057 48 118160 67
964.88 39417.
Jan-08 873.152 11578.578 15 118252 33
Feb- 945.61
08 774.209 11347.398 65 118344 39448
Mar- 946.90 39478.
08 789.572 11362.821 18 118435 33
Apr- 949.91 39508.
08 809.955 11398.957 31 118526 67
May- 934.96 39538.
08 694.103 11219.631 93 118616 67
916.91 39569.
Jun-08 618.516 11003.004 7 118708 33
873.67 39599.
Jul-08 540.741 10484.094 45 118799 67
Aug- 839.44 39630.
08 589.755 10073.34 5 118891 33
Sep- 795.88
08 601.319 9550.619 49 118983 39661
Oct- 743.44 39691.
08 515.392 8921.384 87 119075 67
Nov- 441.019 8300.837 691.73 119167 39722.

08 64 33
Dec- 642.92 39752.
08 467.342 7715.075 29 119258 67
611.82 39783.
Jan-09 499.93 7341.853 11 119350 33
Feb- 592.77
09 545.61 7113.254 12 119442 39814
Mar- 572.76
09 549.44 6873.122 02 119532 39844
Apr- 556.96
09 620.388 6683.555 29 119622 39874
May- 555.79 39903.
09 680.067 6669.519 33 119711 67
571.66 39934.
Jun-09 808.976 6859.979 49 119803 33
593.93 39964.
Jul-09 808.0152 7127.2532 78 119894 67
Aug- 613.38 39995.
09 823.126 7360.6242 54 119986 33
Sep- 630.13
09 802.297 7561.6022 35 120078 40026
Oct- 655.65 40056.
09 821.678 7867.8882 74 120170 67
Nov- 681.28 40087.
09 748.605 8175.4742 95 120262 33
Dec- 712.22 40117.
09 838.564 8546.6962 47 120353 67
747.41 40148.
Jan-10 922.207 8968.9732 44 120445 33
Feb- 775.80
10 886.24 9309.6032 03 120537 40179
Mar- 810.85
10 970.09 9730.2532 44 120627 40209
2.)RSI

MONT CLOSING
H PRICE GAIN LOSS
Apr-05 365.7
May- 14.329
05 380.0295 5
Jun-05 379.965 0.0645
Jul-05 419.712 39.747

Aug-
05 454.265 34.553
Sep-
05 476.661 22.396
Oct-05 459.95 16.711

Nov-
05 491.927 31.977
Dec-
05 537.302 45.375
Jan-06 550.105 12.803

Feb-
06 591.089 40.984
Mar- 155.36
06 746.45 1
174.01
Apr-06 920.461 1
May-
06 872.668 47.793
Jun-06 746.121 126.547
571.53 191.11
SUM 65 55
AVE 38.102 12.741
RAGE 43 03
29.911
RS 4
96.764
RSI 95

CLOSING
MONTH PRICE GAIN LOSS
Jul-06 815.035
Aug-06 888.531 73.496
Sep-06 950.759 62.228
Oct-06 984.125 33.366
Nov-06 1048.402 64.277
Dec-06 1071.675 23.273
Jan-07 1063.631 8.044
Feb-07 1005.389 58.242
Mar-07 774.149 231.24
Apr-07 773.819 0.33
May-07 873.429 99.61
Jun-07 835.143 38.286
224.50
Jul-07 1059.651 8
Aug-07 1000.509 59.142
123.53
Sep-07 1124.04 1
704.28 395.28
SUM 9 4
AVE 46.952 26.352
RAGE 6 27
1.7817
RS 29
RSI 64.05
MONT CLOSING
H PRICE GAIN LOSS
Oct-07 1144.627
Nov-
07 1061.566 83.061
Dec-
07 1053.104 8.462
Jan-08 873.152 179.952
Feb-
08 774.209 98.943
Mar-
08 789.572 15.363
Apr-08 809.955 20.383
May-
08 694.103 115.852
Jun-08 618.516 75.587
Jul-08 540.741 77.775
Aug- 589.755 49.014

08
Sep-
08 601.319 11.564
Oct-08 515.392 85.927
Nov-
08 441.019 74.373
Dec-
08 467.342 26.323
122.64 799.9
SUM 7 32
AV 8.1764 53.32
ERAGE 67 88
0.0102
RS 21
1.0117
RSI 59
MONT CLOSING
H PRICE GAIN LOSS
Jan-09 499.93
Feb-
09 545.61 45.68
Mar-
09 549.44 3.83
Apr-09 620.388 70.948
May-
09 680.067 59.679
Jun-09 808.976 128.909
Jul-09 808.0152 0.9608
Aug-
09 823.126 15.1108
Sep-
09 802.297 20.829
Oct-09 821.678 19.381
Nov-
09 748.605 73.073
Dec-
09 838.564 89.959
Jan-10 922.207 83.643
Feb-
10 886.24 35.967

Mar-
10 970.09 83.85
600.98 130.82
SUM 98 98
AV 40.065 8.7219
ERAGE 99 87
4.5936
RS 77
82.122
RSI 67
ULTRATECH
MOVING AVERAGE
MONT CLOSING SUM OF 12 SUM OF 3

H PRICE MONTHS AVG MONTHS AVG
Apr-05 355.14
May-
05 337.986
340.24
Jun-05 327.613 1020.739 63
345.39
Jul-05 370.587 1036.186 53
Aug- 368.10
05 406.115 1104.315 5

Sep-
05 451.978 1228.68 409.56
427.83
Oct-05 425.4 1283.493 1
Nov- 441.90
05 448.335 1325.713 43
Dec- 436.55
05 435.936 1309.671 7
457.48
Jan-06 488.197 1372.468 93
497.76
Feb-06 569.171 1493.304 8
Mar- 436.10 558.06
06 616.834 5233.292 77 1674.202 73
470.46 651.13
Apr-06 767.386 5645.538 15 1953.391 03
May- 502.18 700.97
06 718.711 6026.263 86 2102.931 7
528.60 710.22
Jun-06 644.582 6343.232 27 2130.679 63
556.46 689.39
Jul-06 704.89 6677.535 13 2068.183 43
Aug- 585.23 700.28
06 751.379 7022.799 33 2100.851 37
Sep- 616.59 761.53
06 828.345 7399.166 72 2284.614 8
654.29 819.15
Oct-06 877.75 7851.516 3 2457.474 8
Nov- 691.41 866.63
06 893.82 8297.001 68 2599.915 83
Dec- 738.36
06 999.32 8860.385 54 2770.89 923.63
788.42 994.01
Jan-07 1088.893 9461.081 34 2982.033 1
824.77 1031.2
Feb-07 1005.434 9897.344 87 3093.647 16
Mar- 839.10 961.01
07 788.731 10069.241 34 2883.058 93
839.25 854.44
Apr-07 769.18 10071.035 29 2563.345 83
May- 847.42 791.57
07 816.816 10169.14 83 2374.727 57
862.29 802.98
Jun-07 822.961 10347.519 33 2408.957 57
880.73 855.31
Jul-07 926.168 10568.797 31 2565.945 5
Aug- 892.44 880.36
07 891.956 10709.374 78 2641.085 17
Sep- 907.31 941.63
07 1006.773 10887.802 68 2824.897 23
Oct-07 1058.839 11068.891 922.40 2957.568 985.85

76 6
Nov- 930.70 1019.6
07 993.4 11168.471 59 3059.012 71
Dec- 929.81 1013.6
07 988.634 11157.785 54 3040.873 24
914.31 961.62
Jan-08 902.837 10971.729 08 2884.871 37
903.60 922.79
Feb-08 876.923 10843.218 15 2768.394 8
Mar- 906.79 868.93
08 827.036 10881.523 36 2606.796 2
908.82 832.52
Apr-08 793.605 10905.948 9 2497.564 13
May- 898.15 769.80
08 688.782 10777.914 95 2309.423 77
880.52 697.91
Jun-08 611.366 10566.319 66 2093.753 77
850.91 623.64
Jul-08 570.775 10210.926 05 1870.923 1
Aug- 827.22 596.60
08 607.677 9926.647 06 1789.818 6
Sep- 790.31 580.79
08 563.935 9483.809 74 1742.387 57
736.00 526.22
Oct-08 407.06 8832.03 25 1578.672 4
Nov- 680.01 430.83
08 321.511 8160.141 18 1292.506 53
Dec- 625.69 355.13
08 336.845 7508.352 6 1065.416 87
582.93 349.34
Jan-09 389.692 6995.207 39 1048.048 93
545.06 383.00
Feb-09 422.476 6540.76 33 1149.013 43
Mar- 516.93 433.88
09 489.487 6203.211 43 1301.655 5
497.11 489.25
Apr-09 555.808 5965.414 78 1467.771 7
May- 491.69 556.32
09 623.677 5900.309 24 1668.972 4
500.37 631.66
Jun-09 715.513 6004.456 13 1894.998 6
515.01 695.22
Jul-09 746.489 6180.17 42 2085.679 63
Aug- 526.47 735.74
09 745.221 6317.714 62 2207.223 1
Sep- 542.57 749.61
09 757.127 6510.906 55 2248.837 23
576.13 770.69
Oct-09 809.745 6913.591 26 2312.093 77
Nov- 613.43 778.66
09 769.115 7361.195 29 2335.987 23

Dec- 662.03 832.96

09 920.045 7944.395 29 2498.905 83
710.71 887.67
Jan-10 973.868 8528.571 43 2663.028 6
758.28 962.39
Feb-10 993.275 9099.37 08 2887.188 6
Mar- 809.99 1025.7
10 1110.1 9719.983 86 3077.243 48
RSI
MONT CLOSING
H PRICE GAIN LOSS
Apr-05 355.14
May- 17.15
05 337.986 4
10.37
Jun-05 327.613 3
42.97
Jul-05 370.587 4
Aug- 35.52
05 406.115 8
Sep- 45.86
05 451.978 3
26.57
Oct-05 425.4 8
Nov- 22.93
05 448.335 5

Dec- 12.39
05 435.936 9
52.26
Jan-06 488.197 1
Feb- 80.97
06 569.171 4
Mar- 47.66
06 616.834 3
150.5
Apr-06 767.386 52
May- 48.67
06 718.711 5
74.12
Jun-06 644.582 9
189.30
SUM 478.75 8
31.916 12.620
AVERAGE 67 53
2.5289
RS 48
71.662
RSI 94
MONT CLOSING
H PRICE GAIN LOSS
Jul-06 704.89
Aug- 46.48
06 751.379 9
Sep- 76.96
06 828.345 6
49.40
Oct-06 877.75 5
Nov-
06 893.82 16.07
Dec-
06 999.32 105.5
89.57
Jan-07 1088.893 3
Feb- 83.45
07 1005.434 9
Mar- 216.7
07 788.731 03
19.55
Apr-07 769.18 1
May- 47.63
07 816.816 6
Jun-07 822.961 6.145
Jul-07 926.168 103.2

07
Aug- 34.21
07 891.956 2
Sep- 114.8
07 1006.773 17
655.80 353.9
SUM 8 25
43.720 23.59
AVERAGE 53 5
1.8529
RS 58
64.948
RSI 66
MONT CLOSING
H PRICE GAIN LOSS
Oct-07 1058.839
Nov- 65.43
07 993.4 9
Dec-
07 988.634 4.766
85.79
Jan-08 902.837 7
Feb- 25.91
08 876.923 4
Mar- 49.88
08 827.036 7
33.43
Apr-08 793.605 1
May- 104.8
08 688.782 23
77.41
Jun-08 611.366 6
40.59
Jul-08 570.775 1
Aug- 36.90
08 607.677 2
Sep- 43.74
08 563.935 2
156.8
Oct-08 407.06 75
Nov- 85.54
08 321.511 9
Dec- 15.33
08 336.845 4
SUM 52.236 774.23

51.615
AVERAGE 3.4824 33
0.0674
RS 68
6.3203
RSI 77
MONT CLOSING
H PRICE GAIN LOSS
Jan-09 389.692
Feb- 32.78
09 422.476 4
Mar- 67.01
09 489.487 1
66.32
Apr-09 555.808 1
May- 67.86
09 623.677 9
91.83
Jun-09 715.513 6
30.97
Jul-09 746.489 6
Aug-
09 745.221 1.268
Sep- 11.90
09 757.127 6
52.61
Oct-09 809.745 8
Nov-
09 769.115 40.63
Dec- 150.9
09 920.045 3
53.82
Jan-10 973.868 3

Feb- 19.40
10 993.275 7
Mar- 116.8
10 1110.1 25
762.30 41.89
SUM 6 8
50.820 2.793
AVERAGE 4 2
18.194
RS 33
RSI 94.79
GRASIM
MOVING AVERAGE
MONT SUM OF 12 SUM OF 3
HS CLOSING MONTHS AVG MONTHS AVG
Apr-05 1205.628
May-05 1135.28
Jun-05 1097.587 3438.495 1146.165
1115.2606
Jul-05 1112.915 3345.782 7
Aug-05 1273.241 3483.743 1161.2476

7
1240.6226
Sep-05 1335.712 3721.868 7
1271.6636
Oct-05 1206.038 3814.991 7
Nov-05 1285.098 3826.848 1275.616
1287.2156
Dec-05 1370.511 3861.647 7
1363.8756
Jan-06 1436.018 4091.627 7
Feb-06 1612.816 4419.345 1473.115
1332.280 1655.1173
Mar-06 1916.518 15987.362 2 4965.352 3
1421.663
Apr-06 2278.231 17059.965 8 5807.565 1935.855
1504.643 2108.5943
May-06 2131.034 18055.719 3 6325.783 3
1559.964 2056.9036
Jun-06 1761.446 18719.578 8 6170.711 7
1631.356 1954.0313
Jul-06 1969.614 19576.277 4 5862.094 3
1707.123 1971.1676
Aug-06 2182.443 20485.479 3 5913.503 7
1795.841
Sep-06 2400.336 21550.103 9 6552.393 2184.131
1913.195 2399.0206
Oct-06 2614.283 22958.348 7 7197.062 7
2033.207
Nov-06 2725.243 24398.493 8 7739.862 2579.954
2145.713
Dec-06 2720.58 25748.562 5 8060.106 2686.702
2262.092 2759.4643
Jan-07 2832.57 27145.114 8 8278.393 3
2346.532 2726.4123
Feb-07 2626.087 28158.385 1 8179.237 3
2360.392 2513.8323
Mar-07 2082.84 28324.707 3 7541.497 3
2362.145
Apr-07 2299.265 28345.741 1 7008.192 2336.064
2392.082
May-07 2490.286 28704.993 8 6872.391 2290.797
2450.231 2416.2613
Jun-07 2459.233 29402.78 7 7248.784 3
2524.687 2604.2026
Jul-07 2863.089 30296.255 9 7812.608 7
2581.143
Aug-07 2859.911 30973.723 6 8182.233 2727.411
2653.387 2996.7543
Sep-07 3267.263 31840.65 5 8990.263 3
Oct-07 3664.025 32890.392 2740.866 9791.199 3263.733
Nov-07 3675.948 33841.097 2820.091 10607.236 3535.7453

4 3
2899.245 3670.1323
Dec-07 3670.424 34790.941 1 11010.397 3
2935.429 3537.7196
Jan-08 3266.787 35225.158 8 10613.159 7
2955.227
Feb-08 2863.657 35462.728 3 9800.868 3266.956
3009.241 2953.8166
Mar-08 2731.006 36110.894 2 8861.45 7
3032.711 2725.1903
Apr-08 2580.908 36392.537 4 8175.571 3
3015.507 2531.9173
May-08 2283.838 36186.089 4 7595.752 3
2989.931
Jun-08 2152.317 35879.173 1 7017.063 2339.021
2897.379 2062.8733
Jul-08 1752.465 34768.549 1 6188.62 3
2824.769 1964.4583
Aug-08 1988.593 33897.231 3 5893.375 3
2712.692 1887.8003
Sep-08 1922.343 32552.311 6 5663.401 3
2518.758 1749.2503
Oct-08 1336.815 30225.101 4 5247.751 3
2291.169 1401.3446
Nov-08 944.876 27494.029 1 4204.034 7
2078.320 1132.6423
Dec-08 1116.236 24939.841 1 3397.927 3
1909.928 1102.4016
Jan-09 1246.093 22919.147 9 3307.205 7
1784.311 1239.5273
Feb-09 1356.253 21411.743 9 3718.582 3
1358.2163
Mar-09 1472.303 20153.04 1679.42 4074.649 3
1601.469
Apr-09 1645.506 19217.638 8 4474.062 1491.354
1576.709 1701.5063
May-09 1986.71 18920.51 2 5104.519 3
1591.148
Jun-09 2325.589 19093.782 5 5957.805 1985.935
Jul-09 2603.763 19945.08 1662.09 6916.062 2305.354
1717.689 2528.3783
Aug-09 2655.783 20612.27 2 7585.135 3
1784.182
Sep-09 2720.265 21410.192 7 7979.811 2659.937
1867.957 2572.7186
Oct-09 2342.108 22415.485 1 7718.156 7
1979.666 2449.2536
Nov-09 2285.388 23755.997 4 7347.761 7
2088.216
Dec-09 2418.838 25058.599 6 7046.334 2348.778
Jan-10 2701.945 26514.451 2209.537 7406.171 2468.7236

6 7
2318.443 2594.6353
Feb-10 2663.123 27821.321 4 7783.906 3
2433.148 2737.9426
Mar-10 2848.76 29197.778 2 8213.828 7
RSI
MONT CLOSING
H PRICE GAIN LOSS
Apr-05 1205.628
May- 70.34
05 1135.28 8
37.69
Jun-05 1097.587 3
15.32
Jul-05 1112.915 8
Aug- 160.3
05 1273.241 26
Sep- 62.47
05 1335.712 1
129.6
Oct-05 1206.038 74
Nov-
05 1285.098 79.06
Dec- 85.41
05 1370.511 3
65.50
Jan-06 1436.018 7
Feb- 176.7
06 1612.816 98
Mar- 303.7
06 1916.518 02
361.7
Apr-06 2278.231 13
May- 147.1
06 2131.034 97
369.5
Jun-06 1761.446 88
1310.3
SUM 18 754.5
87.354
AVERAGE 53 50.3
RS 1.7366

71
63.459
RSI 25
CLOSING
MONH PRICE GAIN LOSS
Jul-06 1969.614
Aug- 212.8
06 2182.443 29
Sep- 217.8
06 2400.336 93
213.9
Oct-06 2614.283 47
Nov- 110.9
06 2725.243 6
Dec-
06 2720.58 4.663
111.9
Jan-07 2832.57 9
Feb- 206.4
07 2626.087 83
Mar- 543.2
07 2082.84 47
216.4
Apr-07 2299.265 25
May- 191.0
07 2490.286 21
31.05
Jun-07 2459.233 3
403.8
Jul-07 2863.089 56
Aug-
07 2859.911 3.178
Sep- 407.3
07 3267.263 52
2086.2 788.62
SUM 73 4
139.08 52.574
AVERAGE 49 93
2.6454
RS 6
72.568
RSI 62
MONT CLOSING GAIN LOSS

H PRICE
Oct-07 3664.025
Nov- 11.92
07 3675.948 3
Dec-
07 3670.424 5.524
403.6
Jan-08 3266.787 37
Feb- 403.1
08 2863.657 3
Mar- 132.6
08 2731.006 51
150.0
Apr-08 2580.908 98
May- 297.0
08 2283.838 7
131.5
Jun-08 2152.317 21
399.8
Jul-08 1752.465 52
Aug- 236.1
08 1988.593 28
Sep-
08 1922.343 66.25
585.5
Oct-08 1336.815 28
Nov- 391.9
08 944.876 39
Dec- 171.3
08 1116.236 6
419.41
SUM 1 2967.2
AVE 27.960 197.81
RAGE 73 33
0.1413
RS 49
12.384
RSI 38
MONT CLOSING
H PRICE GAIN LOSS
Jan-09 1246.093
Feb- 110.1
09 1356.253 6
Mar- 116.0
09 1472.303 5
173.2
Apr-09 1645.506 03

May- 341.2
09 1986.71 04
338.8
Jun-09 2325.589 79
278.1
Jul-09 2603.763 74
Aug-
09 2655.783 52.02
Sep- 64.48
09 2720.265 2
378.1
Oct-09 2342.108 57
Nov-
09 2285.388 56.72
Dec- 133.4
09 2418.838 5
283.1
Jan-10 2701.945 07
Feb- 38.82
10 2663.123 2
Mar- 185.6
10 2848.76 37
2076.3 473.69
SUM 66 9
138.42 31.579
AVERAGE 44 93
4.3833
RS 02
81.424
RSI 04
BIRLA SUPER
MOVING AVERAGE
MONT CLOSING SUM OF 12 SUM OF 3

H PRICE MONTHS AVG MONTHS AVG
Apr-06 68.283
May-
06 69.179
63.321
Jun-06 52.503 189.965 67
80.540
Jul-06 51.657 241.622 67
Aug-
06 55.411 228.75 76.25

Sep- 71.513
06 54.969 214.54 33
72.277
Oct-06 54.795 216.832 33
Nov- 71.139
06 48.243 213.418 33
Dec-
06 45.282 203.289 67.763
67.465
Jan-07 54.077 202.397 67
Feb- 65.901
07 50.102 197.704 33
Mar- 54.032 64.449
07 43.888 648.389 42 193.349 67
52.525
Apr-07 50.2 630.306 5 198.267 66.089
May- 51.066 65.288
07 51.675 612.802 83 195.865 33
51.360 67.264
Jun-07 56.03 616.329 75 201.793 33
51.738
Jul-07 56.19 620.862 5 214.095 71.365
Aug- 51.336
07 50.59 616.041 75 214.485 71.495
Sep-
07 56.592 617.664 51.472 219.402 73.134
51.864 74.290
Oct-07 59.5 622.369 08 222.872 67
Nov- 54.212
07 76.42 650.546 17 243.102 81.034
Feb- 56.413 88.070
08 71.7 676.964 67 264.212 67
Mar- 56.875 89.078
08 59.616 682.503 25 267.236 67
Apr-08 75.347 707.748 58.979 283.083 94.361
May- 61.407 93.232
08 73.035 736.895 92 279.698 67
62.848
Jun-08 67.483 754.178 17 275.481 91.827
93.279
Jul-08 63.973 766.476 63.873 279.838 33
Aug- 65.124
08 71.05 781.496 67 275.541 91.847
Sep- 65.765
08 63.876 789.182 17 266.382 88.794
65.109
Oct-08 42.727 781.319 92 241.626 80.542
Nov- 63.049 69.838
08 31.863 756.59 17 209.516 67
Dec- 60.676 56.498
08 31.03 728.12 67 169.496 67

57.062 46.221
Jan-09 33.045 684.745 08 138.665 67
Feb- 53.866 43.097
09 33.355 646.4 67 129.293 67
Mar- 51.687 43.630
09 33.462 620.246 17 130.892 67
47.686
Apr-09 43.197 588.096 49.008 143.059 33
May- 47.270 54.066
09 52.185 567.246 5 162.199 33
46.931
Jun-09 63.42 563.183 92 192.264 64.088
46.505 72.552
Jul-09 58.856 558.066 5 217.658 67
Aug-
09 66.292 553.308 46.109 240.753 80.251
Sep- 47.065 87.972
09 75.35 564.782 17 263.918 67
50.015 92.877
Oct-09 78.135 600.19 83 278.633 67
Nov- 53.850
09 77.877 646.204 33 297.654 99.218
Dec- 58.044 104.24
09 81.361 696.535 58 312.723 1
62.786 109.10
Jan-10 89.952 753.442 83 327.325 83
Feb- 66.085 107.37
10 72.94 793.027 58 322.13 67
Mar- 69.365 105.69
10 72.823 832.388 67 317.076 2
RSI
MONT CLOSING
H PRICE GAIN LOSS
Apr-06 68.283
May-
06 69.179 0.896
16.67
Jun-06 52.503 6
Jul-06 51.657 0.846

Aug-
06 55.411 3.754
Sep-
06 54.969 0.442
Oct-06 54.795 0.174

Nov-
06 48.243 6.552

Dec-
06 45.282 2.961
Jan-07 54.077 8.795

Feb-
07 50.102 3.975
Mar-
07 43.888 6.214
SUM 13.445 37.84

AVER 1.1204 0.5178
AGE 17 33
2.1636
RS 63
RSI 68.39
MONT CLOSING
H PRICE GAIN LOSS
Apr-07 50.2
May-
07 51.675 1.475
Jun-07 56.03 4.355
Jul-07 56.19 0.16
Aug-
07 50.59 5.6
Sep-
07 56.592 6.002
Oct-07 59.5 2.908
Nov-
07 76.42 16.92
Feb-
08 71.7 4.72

Mar- 12.08
08 59.616 4
22.40
SUM 31.82 4
AVE 2.240
RAGE 3.182 4
1.4202
RS 82
RSI 58.682
MONT CLOSING
H PRICE GAIN LOSS
Apr-08 75.347
May-
08 73.035 2.312
Jun-08 67.483 5.552
Jul-08 63.973 3.51
Aug-
08 71.05 7.077
Sep-
08 63.876 7.174
21.14
Oct-08 42.727 9
Nov- 10.86
08 31.863 4
Dec-
08 31.03 0.833
Jan-09 33.045 2.015
Feb-
09 33.355 0.31
Mar-
09 33.462 0.107
SUM 9.509 50.561

AVE 0.7924 4.2134
RAGE 17 17
0.1880
RS 7

15.829
RSI 88
MONT CLOSING
H PRICE GAIN LOSS
Apr-09 43.197
May-
09 52.185 8.988
11.23
Jun-09 63.42 5
Jul-09 58.856 4.564

Aug-
09 66.292 7.436
Sep-
09 75.35 9.058
Oct-09 78.135 2.785

Nov-
09 77.877 0.258
Dec-
09 81.361 3.484
Jan-10 89.952 8.591

Feb- 17.01
10 72.94 2
Mar-
10 72.823 0.117
21.95
SUM 42.986 1
AVE 3.5821 1.829
RAGE 67 25
1.9582
RS 71
66.196
RSI 47

AMBUJA CEMENT
MOVING AVERAGE
CLOSING SUM OF 12 SUM OF 3

M0NTH PRICE MONTHS AVG MONTHS AVG
Apr-05 419.907
May-05 460.197
Jun-05 299.589 1179.693 393.231
273.918
Jul-05 61.97 821.756 7
Aug-05 1180.33 1541.889 513.963
438.013
Sep-05 71.7404 1314.0404 5
441.037
Oct-05 71.0425 1323.1129 6
73.2901
Nov-05 77.0875 219.8704 3
76.3872
Dec-05 81.03182 229.16182 7
82.0764
Jan-06 88.11 246.22932 4
85.2007
Feb-06 86.4605 255.60232 7
249.52 90.4838
Mar-06 96.881 2994.34672 89 271.4515 3
224.06
Apr-06 114.377 2688.81672 81 297.7185 99.2395
194.56 105.792
May-06 106.1205 2334.74022 17 317.3785 8
177.25 104.134
Jun-06 91.906 2127.05722 48 312.4035 5
180.69 100.446
Jul-06 103.3119 2168.39912 99 301.3384 1
91.434 101.452
Aug-06 109.14 1097.20912 09 304.3579 6
95.049
Sep-06 115.124 1140.59272 39 327.5759 109.192
99.178
Oct-06 120.595 1190.14522 77 344.859 114.953
Nov-06 134.7523 1247.81002 103.98 370.4713 123.490

42 4
108.80 131.424
Dec-06 138.925 1305.7032 86 394.2723 1
113.22 138.254
Jan-07 141.085 1358.6782 32 414.7623 1
117.13 137.788
Feb-07 133.355 1405.5727 11 413.365 3
118.01 127.295
Mar-07 107.447 1416.1387 16 381.887 7
117.80 117.584
Apr-07 111.952 1413.7137 95 352.754 7
118.86 112.726
May-07 118.78 1426.3732 44 338.179 3
120.71
Jun-07 114.169 1448.6362 97 344.901 114.967
123.01 121.258
Jul-07 130.827 1476.1513 26 363.776 7
124.74
Aug-07 129.986 1496.9973 98 374.982 124.994
127.11
Sep-07 143.527 1525.4003 67 404.34 134.78
129.30 140.108
Oct-07 146.8114 1551.6167 14 420.3244 1
130.32 145.809
Nov-07 147.0909 1563.9553 96 437.4293 8
147.597
Dec-07 148.8895 1573.9198 131.16 442.7918 3
130.38 142.599
Jan-08 131.819 1564.6538 78 427.7994 8
129.16 133.148
Feb-08 118.738 1550.0368 97 399.4465 8
130.34
Mar-08 121.53 1564.1198 33 372.087 124.029
130.74
Apr-08 116.762 1568.9298 42 357.03 119.01
129.75
May-08 106.87 1557.0198 17 345.162 115.054
127.36 103.057
Jun-08 85.54 1528.3908 59 309.172 3
123.07 90.5996
Jul-08 79.389 1476.9528 94 271.799 7
119.19 82.7753
Aug-08 83.397 1430.3638 7 248.326 3
114.03 81.4626
Sep-08 81.602 1368.4388 66 244.388 7
106.88 75.3413
Oct-08 61.025 1282.6524 77 226.024 3
99.330
Nov-08 56.402 1191.9635 29 199.029 66.343
92.297 60.6396
Dec-08 64.492 1107.566 17 181.919 7

87.193 63.8246
Jan-09 70.58 1046.327 92 191.474 7
83.151 68.4326
Feb-09 70.226 997.815 25 205.298 7
78.713 69.6953
Mar-09 68.28 944.565 75 209.086 3
75.560 72.4773
Apr-09 78.926 906.729 75 217.432 3
73.651 77.0536
May-09 83.955 883.814 17 231.161 7
74.488
Jun-09 95.593 893.867 92 258.474 86.158
91.9086
Jul-09 96.178 910.656 75.888 275.726 7
77.396 97.7583
Aug-09 101.504 928.763 92 293.275 3
78.865 98.9706
Sep-09 99.23 946.391 92 296.912 7
81.575
Oct-09 93.545 978.911 92 294.279 98.093
84.146
Nov-09 87.245 1009.754 17 280.02 93.34
86.929 92.8926
Dec-09 97.888 1043.15 17 278.678 7
89.467 95.3893
Jan-10 101.035 1073.605 08 286.168 3
92.716
Feb-10 109.222 1112.601 75 308.145 102.715
96.659
Mar-10 115.597 1159.918 83 325.854 108.618

RSI
M0NT CLOSING
H PRICE GAIN LOSS
Apr-05 419.907
May-
05 460.197 40.29
160.6
Jun-05 299.589 08
237.6
Jul-05 61.97 19
Aug- 1118.
05 1180.33 36
Sep- 1108.
05 71.7404 59
0.697
Oct-05 71.0425 9
Nov-
05 77.0875 6.045
Dec- 3.944
05 81.03182 32
7.078
Jan-06 88.11 18
Feb- 1.649
06 86.4605 5
Mar- 10.42
06 96.881 05
17.49
Apr-06 114.377 6
May- 8.256
06 106.1205 5
14.21
Jun-06 91.906 45
1203.6 1531.6
SUM 34 35
AVE 80.242 102.10
RAGE 27 9
0.7858
RS 49
44.004
RSI 22
MONT CLOSING
H PRICE GAIN LOSS

Jul-06 103.3119
Aug- 5.828
06 109.14 1
Sep-
06 115.124 5.984
Oct-06 120.595 5.471
Nov- 14.15
06 134.7523 73
Dec- 4.172
06 138.925 7
Jan-07 141.085 2.16
Feb-
07 133.355 7.73
Mar- 25.90
07 107.447 8
Apr-07 111.952 4.505
May-
07 118.78 6.828
Jun-07 114.169 4.611
16.65
Jul-07 130.827 8
Aug-
07 129.986 0.841
Sep- 13.54
07 143.527 1
79.305
SUM 1 39.09
AVER 5.2870
AGE 07 2.606
2.0287
RS 82
RSI 66.98
MONT CLOSING
H PRICE GAIN LOSS
Oct-07 146.8114
Nov- 0.279
07 147.0909 5
Dec- 1.798
07 148.8895 6
17.07
Jan-08 131.819 05
Feb- 13.08
08 118.738 1
Mar-
08 121.53 2.792

Apr-08 116.762 4.768

May-
08 106.87 9.892
Jun-08 85.54 21.33
Jul-08 79.389 6.151
Aug-
08 83.397 4.008
Sep-
08 81.602 1.795
20.57
Oct-08 61.025 7
Nov-
08 56.402 4.623
Dec-
08 64.492 8.09
16.968 99.287
SUM 1 5
AVE 1.1312 6.6191
RAGE 07 67
0.1708
RS 99
RSI 14.595
MONT CLOSING
H PRICE GAIN LOSS
Jan-09 70.58
Feb-
09 70.226 0.354
Mar-
09 68.28 1.946
10.64
Apr-09 78.926 6
May-
09 83.955 5.029
11.63
Jun-09 95.593 8
Jul-09 96.178 0.585
Aug-
09 101.504 5.326
Sep-
09 99.23 2.274
Oct-09 93.545 5.685
Nov-
09 87.245 6.3
Dec- 10.64
09 97.888 3
Jan-10 101.035 3.147
TheFeb-
Administrative management college, Bangalore. 54
10 109.222 8.187
Mar-
10 115.597 6.375
SUM 61.576 16.559

AVER 4.1050 1.1039
AGE 67 33
3.7185
RS 82
RSI 78.807
ANALYSIS & INTERPRETATIONS:
1) ACC: Moving Average
Short Term Moving Average:

 In the above chart blue color shows the closing price and red color
shows the Moving average(i.e. 3months)
 Moving averages are used along with the price of the scrip.
 In the above chart, downward penetration of the rising average indicates

the possibility of a further fall. Hence, the sell signal is generated during J,
February , July& October.
 Upward penetration of a falling average would indicate the possibility of

the further rise. Hence, the buy signal is generated during April, May &
December
 The moving average is continuously falling from October to January.
 The moving average is continuously rising from August to November.
Long Term Moving Average:

 This chart is similar to previous chart but it is long term moving average.
 In the above chart, blue color indicates closing price. Red color indicates long
term moving average (i.e., 12months MV).
 In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated during
December & October.
 Upward penetration of a falling average would indicate the possibility of the
further rise. Hence, the buy signal is generated during September & January.
 The moving average is continuously rising from October to January.
 The moving average is continuously falling from October to August .

2) GRASIM:
 In the above chart, X axis indicates month and the Y axis indicates the
price of scrip.
 In the above chart, blue color indicates closing price. Red color
indicates long term moving average (i.e., 3 months MV).
 In the above chart, downward penetration of the rising average

indicates the possibility of a further fall. Hence, the sell signal is
generated during December, October & June.
 Upward penetration of a falling average would indicate the possibility

of the further rise. Hence, the buy signal is generated during July,
may ,& August
 From January to October there is a rising trend and from March to

December there is a falling trend.

 This chart is similar to previous chart but it is long term moving

average.
indicates long term moving average (i.e., 12 months MV).

generated during August, October and June.

of the further rise. Hence, the buy signal is generated during March &
January.
 The moving average is continuously rising from May to October.
 The moving average is continuously falling in the month of March to

January..

3) Ultratech: MOVEING AVERAGE
price of scrip.
indicates long term moving average (i.e.,3months MV).

generated during January, October & December.

of the further rise. Hence, the buy signal is generated during July &
November.
 The moving average is continuously rising from June to January.

 This chart is similar to previous chart but it is long term moving

average.
indicates long term moving average (i.e., 12months MV).

generated during December,& January.

of the further rise. Hence, the buy signal is generated during July, May
& January.
 The moving average is continuously rising from July to January.
.
BIRLA SUPER

MOVING AVERAGE
Short term moving average
 In the above chart ‘X’ axis shows the months and ‘Y’ axis shows the price
scrip
 In the above chart Blue colour indicates the closing Price and red shows the
average
 In the above chart, downward penetration of the rising average indicates the
possibility of a further fall. Hence, the sell signal is generated in February and
December

of the further rise. Hence, the buy signal is generated August and
April.
 The moving average continuously falling in July and December
 The Moving average continuously rising in April and December
Long term

 This chart is similar to previous chart but it is long term moving average.
 In the above chart, blue color indicates closing price. Red color indicates long
term moving average (i.e., 10months MV).

generated during April,& December.

of the further rise. Hence, the buy signal is generated during August,
&,April
 The moving average is continuously rising from April to December
AMBUJA CEMENT
MOVING AVERAGE

Short term
price of scrip.

generated during June,July, August

of the further rise. Hence, the buy signal is generated during May &
September.
 The moving average is continuously rising from July to September.
Long term

price of scrip.

generated during ,July &, August

of the further rise. Hence, the buy signal is generated during May &
September.
 The moving average is continuously rising from July to September.

5. Summary of Findings, Suggestions & Conclusion:
FINDINGS
ACC:
• In the chart, moving average (short term & long term) was fluctuating month
by month. It was rising from July to October & falling from november to
January.
• During the month of April the shares were overbought, so it is the right time to
sell the share.
• During the month of January the shares were oversold, so it is right time to
buy the share
GRASIM:
• The moving average of 3 months & 12 months, shows It shows rising trend
from December to October. It shows falling trend from November to January.
• The January month was overbought region; the investor can sell the scrip.
• The March month was over sold region, the investor can buy the scri.

ULTRATECH:
• The moving average of 3 months & 12 months was rising from April to
December. It was falling from October to January.
• The April Month was overbought region; the investor can sell the scrip.
• The January month was oversold, region, the investor can buy the scrip.
BIRLA SUPER:
December. It was falling from May to December.
• The December Month was overbought region the investor can sell the scrip.
• The September month was oversold, region, the investor can buy the scrip.
AMBUJA:
December. It was falling from May to December.
• The August Month was overbought region the investor can sell the scrip.
• The June month was oversold, region, the investor can buy the scrip.

SUGGESTIONS
• It is very difficult for an investor to select any scrip for investment in stock
market. Before investing, the investor should go for a detailed study of the
scrip, which includes: Fundamental analysis of the company & its return for
past 3 years.
• ACC:
o According Moving-Average, the prices of the scrip is falling from
October to January & the Short-Term Average intersect in June So, in
future the investor is been advised to sell the share.
o According to Relative Strength Index (RSI), the RSI lies between 80 &
90 region & is been in decreasing trend. There fore in future the prices
may come down very drastically, so investor is been advised to sell the
share.
• GRASIM:
October to January & the Short-Term Average intersect in June so, in
81 region & is been in increasing trend. There fore in future the prices
may come up very drastically, so investor is been advised to buy the
share.

• ULTRATECH:
October to January & the Short-Term Average intersect in june So, in
share.
BIRLA SUPER:
o According Moving-Average, the prices of the scrip is falling from June

to December & the Short-Term Average intersect in September So, in
share.
AMBUJA:
o According Moving-Average, the prices of the scrip is falling from July

to September & the Short-Term Average intersect in october So, in
78 region & is been in increasing trend. Therefore in future the prices
may come up very drastically, so investor is been advised to buy the
share.

CONCLUSION
In Indian scenario the investments are spread over Bank Deposits, Savings Certificate,
Post Office, Equity Markets and the latest Mutual Fund. Since Mutual Funds are
subject to market risk the investor take help of advisory services for financial
planning which helps the investor to take calculated risk. Technical analysis is a good
indicator that shows the trend movement as well as the varying degree of moving
average movement, Rate of change and Relative strength indicates. Technical analysis
may be used for more than supplement of fundamental analysis.
The recent correction in the stock market has left many investors unsettled. It is quite
common to see many investors moving to side lines every time the market turns
volatile or corrects itself. It is sure as the market starts rallying again, some of them
will move back quickly but would be willing to move out even more quickly at the
next sign of downside volatility.
Technical analysis can offer great insight, but if used improperly, they can also
produce false signals. While trend lines have become a very popular aspect of
technical analysis, they are merely one tool for establishing, analyzing, and
confirming a trend. Trend lines should not be the final arbiter, but should serve
merely as a warning that a change in trend may be very useful.
In this project, the market is falling tremendously in the month of June & July. So, the
tools which were used also showing the downward trend. We can predict that the
investor can sell the share.

BIBLIOGRAPHY:
Reference Books.
• Security Analysis & Portfolio Management
--By. Punithavathy Pandian.
• Investment Analysis and Portfolio Management

--By. Prasanna Chandra
• Security Analysis & Portfolio Management
--By. Fischer and Jordan
• Financial Management
--By. M. Y. Khan & P. K. Jain
Websites.
• www.nseindia.com
• www.stockcharts.com
• www.wikipedia.com
• www.acclimited.com
• www.grasim.com
• www.ultratechcement.com


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Technical Analysis of Cement Sector in India

This project is about a brief introduction to Technical Analysis, different price

Technical Analysis also provides a comprehensive study on stock historical price

The Administrative management college, Bangalore. 1

ABOUT TECHNICAL ANALYSIS:

The Administrative management college, Bangalore. 2

Technical analysis is frequently contrasted with fundamental analysis, the study of

The Administrative management college, Bangalore. 3

Efficient market hypothesis

Random walk hypothesis

The Administrative management college, Bangalore. 4

Principles of technical analysis

Market action discounts everything

Prices move in trends

History tends to repeat itself

The Administrative management college, Bangalore. 5

Combining Technical Analysis with other Market Forecast Methods

Charting terms and indicators

Widely-known technical analysis concepts include:

The Administrative management college, Bangalore. 6

AN OVERVIEW OF STOCK MARKET:

The Administrative management college, Bangalore. 7

Importance of stock market:

Function and purpose:

Relation of the stock market to the modern financial system:

The financial system in most western countries has undergone a remarkable

1. The Stock Market, individual investors & financial risk:

The Administrative management college, Bangalore. 8

market can be swayed tremendously in either direction by press releases, rumors,

Stock market index:

The Administrative management college, Bangalore. 9

The Administrative management college, Bangalore. 10

The Administrative management college, Bangalore. 11

2.1 Title of the Project

2.2 Statement of Problem

2.3 Review of Literature

In a comprehensive and influential study Brock, Lakonishok and Lebaron (1992)

The Administrative management college, Bangalore. 12

2.4 Objective of Study

2. To determine the trend of the stock prices using technical analysis.

3. To predict the future share price movements of particular scripts.

2.5 Scope of the Study

The Administrative management college, Bangalore. 13

The Administrative management college, Bangalore. 14

2.7 Statistical Tools Used in Analysis of Study:

The Administrative management college, Bangalore. 15

2) Relative strength index:

RSI = 100 - [100/ (1 + RS)]

RS = (Avg. of n-day up closes)/(Avg. of n-day down closes)

The Administrative management college, Bangalore. 16

2.9 Overview of Report

Chapter 2: Research design

Chapter 3: Industry profile

Chapter 4: Analysis and Interpretation of data

Chapter 5: Summary of Findings, Conclusions &Recommendations

The Administrative management college, Bangalore. 17

The forms of cement produced:

• Ordinary Portland Cement

Major players in Indian cement sector:

The Administrative management college, Bangalore. 18

Bottlenecks of Cement Industry:

• A comparison of the energy efficiency of Indian cement industry with that of

I have taken five Cement Sector Companies which are as follows: