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Made By:- TARUN CHAWLA Roll no. :- Cun120551017 CHITKARA BUSINESS SCHOOL
INTRODUCTION
KARVY, is a premier integrated financial services provider. Ranked among the top ten in the country in all its business segments. Provide services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate.
Financial Instruments
Mutual funds
Insurance Broking
Commodities Broking
Bonds
IPO's
Fixed deposit
Equities
Its Competition
Fortune India Ltd India Infoline Religare Securities Stock Holding Motilal Oswal
Fundamental analysis
Fundamental analysis is the study of economic, industry, and company conditions in an effort to determine the value of a company's stock. Fundamental analysis typically focuses on key statistics in a company's financial statements to determine if the stock price is correctly valued.
EIC Framework
Fundamental Analysis
The Analysis of economy, industry and company constitute the main activity in the fundamental approach to security analysis. And can be viewed as different stages in investment decision making process.
Company Analysis Industry analysis
Economy Analysis
Three tier analysis depict that company performance dependent not only on its own effort but also on the general industry and economy factor.
ECONOMIC ANALYSIS
Populations Monsoons and Agriculture Production Natural resources and availability of raw material Industrial Productions Inflation Interest rate Foreign exchange reserve Balance of payment position Budget deficits
Industry Analysis
The industry analysis should take in to account the following factors as influence the performance of the company, whose share prices are to be analyzed.
The past performance of the industry. Growth rate of the industry The performance of the product and technology of the industry. Role of government in the industry Labor conditions. Rivalry among existing players Industry life cycle.
Company Analysis
Qualitative Factors Management of the company Long-term vision of the company Strategic position of the company in the market. Technology Ratio Analysis Profitability of the company Liquidity of the company Solvency of the company Activity level of the company
TECHNICAL ANALYSIS
It is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume. Technical analysts, sometimes called "chartists", may employ models and trading rules based on price and volume transformations. Techniques like the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, cycles or, classically, through recognition of chart patterns are used.
Trend lengths
Volume
Technical Charts
Simple chart OHLC
Candle Stick
Part 2 Research
A Comparative Study on Fundamental and Technical Analysis as an Indicator for Investment Decision- Making
Research Methodology
Sources of Data- Primary as well as Secondary Research Design- Descriptive Design SAMPLING METHOD -Convenient Sampling SAMPLE SIZE- Sample size was 210 including small investors, speculators, businessmen and students. The interview was conducted inside the city of Jammu, Udhampur and Kashmir only.
160
40
40
person who is satisfied with an expected return of less than 10% p.a
20%
Less than 10% 10%-20% 20%-50% More than 50% 30%
22% 34% 3% Blue Chip Mid Cap Penny Shares All 41%
67%
Out of 160 investors, 53 investors practice intraday where as 107 dont want to take much risk by doing intraday trading.
Attitude towards the following Financial Instruments, in the Indian Capital Market
70
60
50
40
Shares
Debentures Mutual Funds
30
Bonds
20
10
0 Highly Favorable Favorable Some What Favorable Not Very Favorable Not at all favorable
50
40 30 20 10 0 Fundamental Analysis Technical Analysis Both None Series1
Interpretation: Out of Investors who believe in Technical analysis, 43 investors uses Dow theory for investment
45 40 35 30 25 20 15 10 5 0 Line Chart Bar Chart Candle Stick Chart Point & Figure Chart All Non Series1
Can't Say
Against
Series1
In Favour
20
40
60
80
100
120
Findings
Unlike Fundamental Analysis, Technical Analysis is also very much important to play in the stock market Fundamental Analysis tells about right choice where as Technical Analysis tells about the right time to enter or exit from the market. Technical Analysis assumes that history tends to repeat itself, but it is not wise to believe that the same trend wills occur next. Among the various types of charts the Candle-Stick Chart is the most effective and acceptable tool to evaluate the performance of a stock and forecast the future.
When an investor looks in to the numerous types of chart patterns, it creates a lot of confusion and expectations in the minds of the investors. In trading, volumes can easily determine whether the demand side is greater or supply side is greater for stocks at any given point of time. Most of the investors are not aware of the sophisticated and well designed tools of technical analysis. They invest without going through the technical analysis. Though Technical Analysis plays a lions role to decide investment pattern as Fundamental Analysis, it cannot be treated as a substitute to Fundamental Analysis.
Suggestions
Technical analysis is a game of charts and figures. So, at the time of taking any decision regarding. Instead of looking in to all chart patterns, it is good to follow a single chart pattern and to draw timely conclusion by interpreting that. Market never tells anything of its own! Its the investor who has to look in to the market and catch up the indicator to forecast and expect the market trend. Most of the investors assume that by using charts and patterns, they can earn much by purchasing in low and selling at high prices. But, it is not so easy as they think. So, such believes should be rooted out from mind before looking towards market.
Success is simple. Do what's right, the right way, at the right time. SOCHKAR, SAMAJHKAR, INVESTKAR