Equity Research Intern

Abstract

The purpose of this project is to analyse two stocks belonging to the Indian banking sector through technical analysis. Indian Economy, one of the fastest growing economies in the world has companies which have made rapid progress. Many Indian companies are expanding their business globally through mergers and acquisitions. As the c0mpanies gr0w, their shareh0lders are benefitted with g00d dividends and capital appreciati0n 0n investment in equity shares of such companies. Numbers of companies which are listed on the stock exchange (BSE & NSE) have been increasing every year with new IPOs coming in. In India people are realizing that equity has the potential to give the highest returns when compared to any other asset classes however, majority of the people are not aware of the fundamentals and techniques of investments. They make decisions without the tips of an expert and just invest in shares based on their instinct or advices given by friends and family members. Therefore, it is very important to understand some of the techniques that are involved in the equity market so that an investor can cut losses short. This is where Technical Analysis helps. It considers an extensive variety of factors most importantly the prices movements and volume to future trends of the market. For the purpose of this study, the price movements have been analysed using tools such as Moving Average (MA), Moving Average Convergence and Divergence (MACD), Relative Strength Index (RSI), and Bollinger Bands. Based on these indicators, the trend of a particular stock has been determined and then a decision to buy, sell or hold is estimated. Finally the conclusion and recommendations are given with respect to the derived result. This study establishes that the future prices are derived from the historical prices and technical analysis can be used to greatly reduce your risks and maximize your profits.