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PROJECT REPORT
ON
TECHNICAL ANALYSIS OF EQUITY SHARE
SUBMITTED BY:
Jyoti Prakash Barik
Bhubaneswar Stock Exchange Ltd.
Regd No-0806260005
SUBMITTED TO
BIJU PATTNAIK UNIVERSITY OF TECHNOLOGY
Chapter-I Introduction
Chapter-iv Conclusion
References
INTRODUCTION
For the investor, it is the exchange of money or cash for a future claim on
money or the purchase of security of a promise to pay at a later date a long
with a regular income as in the case of shares, bonds and debentures etc. For
the issuer or the security it is the use of money for fixed capital equipments,
working capital or any other productive and unproductive activity.
Characteristics of Investment:
1. RISK:
(a) The longer maturity period, the longer is the risk. Thus deposit of two
years carry higher rate than one-year deposit.
(b) The more the credit worth ness of the borrower or agency issuing
securities, the less is the risk.
2. RETURN:
3. SAFETY:
4. LIQUIDITY:
The powers of the Central Government under the Act are far-reaching
and including the following in particulars:
The growth companies are also called the blue chip companies. The blue
chips of yester years are not necessarily the blue chip of today. The investor
has to review and assess the companies from time to time to locate the blue
chips , based on fundamental analysis.
In order to enable one to identify these blue chips of tomorrow, lone should
know the nature and characteristics of these companies. A few guidelines in
this regard are set out below.
Fifthly, the company should have a consistent and stable distribution policy
with good profit margins.
Sixthly, such a company services the investors well with bonus or rights
issue or convertible debentures, from time to time in addition tool increasing
dividend margins are growing and the company is gaining in financial
strength.
1. The study has the inherent limitation of the published data used.
2. Due to shortage of time, the time period for the study was limited to 1
year only.
3. The data collected and analyses could interpret in the third chapter.
4. The fourth chapter gives the finding of the study and attempt to make
certain helpful suggestion.
ORGANIZATIONAL
PROFILE.
The industrial devil today needs huge capital funds. The stocks exchange
helps to channel the saving of the country into productive channels.
It assists in finding new capital for the Govt. financial institutions, and to
the industrial through raising the loans by bounds, shares and securities.
Stock Exchange enables entrepreneurs to raise large funds and start
industries. Exchange enables entrepreneurs help in giving employment to
the prosperity of the country by increasing industrialization.
The work is done by Stock brokers who are the members of the Stock
Exchange by Procuring subscriptions from the public through share
issues, bounds, securities made by the Govt. financial institutions and as
well as corporate sector.
This work is also done by stockbrokers who bought and sold on behalf of
their clients. The characteristics of this market is that there is a perfect
competition of buying and selling. The prices are which the shares and
securities change bounds are not fixed by Stock Exchange but fluctuate
every seconds according to the demand and supply which depend on
many factors such as extent of trading, proposed divided, Bonus , right
prospectus of a particular industry, govt. policies, management of the
company and general economic environment.
The 12th plan required moping up of vast savings of the community and
bringing them into productions use. The emphasis is on the tapping of
the country’s resources not only from urban centers but also from semi-
urban and rural areas. There is a great need to exert our skills to pool the
muddy resources for garnering them into productivity channels.
Listed have to comply with the various clauses with the listing
agreement that has to be entered into with the exchange. The listing
agreement that has to be entered into with the exchange. The listing
agreement contains 42 classes dealing with information’s of vital
concern to the investing public which should be passed on to the stock
exchange, such as unaudited, half yearly financial results, bonus
dividend, changes in directors, take over, amalgamation, merger etc.
All institutions investors having a portfolio worth more than Rs.10 crores
were required to compulsorily trading and settle 8 scrips through the
demat route effective 15th January 1998. The 8 scrips were Bank of India,
L&T and Tisco. The advantages of various problems associated with
papers based or physical settlement.
Corporate sector has to play on equally important role. They must not
only run efficiently but at the same time keep timely well informed their
share holders investing public, and stock exchanges their prosperity their
product, turn over net profit even about the growing competition.
Stock Exchange are regulated by SEBI and ministry of finance and their
working is controlled by Board of Directors which are elected as well as
nominated by Govt. and SEBI. We are confined that the Stock Exchange
will meet the challenges efficiently and take necessary steps to promote
investment climate in country and protect the invest of investors and take
action against the persons defaulting its laws.
BhSE was established under the Companies Act, 1956 during the year 1989
as a Company , limited by guarantee without having share capital with an
objective to perform a stock exchange to facilitate, assist , regulate and
control the business of buying and selling in stocks, shares and like
securities in the interest of investing public in the state of Orissa within the
meaning of SCAR. Recognition to function as a stock exchange in terms of
SCAR was granted to BhSE then by the Ministry of Finance, Govt. of India
initially for a period of five years. Thereafter, the said recognition is being
renewed by Securities and Exchange Board of India(SEBI) from time to
time.
The affairs and business of the BhSE are managed under a Memorandum &
Article of Association and Rules, Bye-laws and Regulations made there
under the control and supervision of its Board of Directors. The strength of
Board of Directors of BhSE is 8 including the Chief Executive Officer of
BhSE. The details of other 7 Directors of the Board of BhSE are-
ANALYSIS AND
INTERPRETATION.
(i) The average of daily share prices of each month is calculated. The
average price represents the share price of the month concerned.
(ii) The changes in the share prices is studied from these average
price.
S T A T E B A N K O F IN D IA
2500
2000
1500
A V E R A G E P R IC E O F S H A R
1000 PER C EN T A G E
500
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
1400
1200
1000 A V E R A G E P R IC E O F
800 SHARE S
600 P E R C E N TA G E
400
200
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
350
300
250 A V E R A G E P R IC E O F
200 S HAR E S
150 P E R C E NT AG E
100
50
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
250
200 AVERAGE PRICE OF
150 SHARES
100 PERCENTAGE
50
SEPTEMBER
NOVEMBER
DECEMBER
FEBRUARY
OCTOBER
JANUARY
AUGUST
0
MARCH
APRIL
JUNE
JULY
MAY
AVERAGE
YEAR(07- PRICE OF
08)MONTH SHARES PERCENTAGE
APRIL 778.89 100
MAY 782.22 100.43
JUNE 758.49 97.38
JULY 823.2 105.69
AUGUST 696.7 89.45
SEPTEMBER 767.41 98.52
OCTOBER 809.84 103.97
NOVEMBER 765.03 98.22
DECEMBER 838.25 107.62
JANUARY 776.43 99.68
FEBRUARY 586.63 75.32
MARCH 713.26 91.57
900
800
700 AVE R AG E P R IC E O F
600
500 S HAR E S
400 P E R C E NT AG E
300
200
100
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
600
500
400 AVE R AG E P R IC E O F
S HAR E S
300
P E R C E NT AG E
200
100
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
AVERAGE
YEAR(07- PRICE OF
08)MONTH SHARES PERCENTAGE
APRIL 840.35 100
MAY 876.71 104.32
JUNE 865.44 102.98
JULY 930.96 110.78
AUGUST 897.81 106.83
SEPTEMBER 925.84 110.17
OCTOBER 1066.66 126.93
NOVEMBER 945.34 112.49
DECEMBER 1009.45 120.12
JANUARY 943.01 112.21
FEBRUARY 914.85 108.86
MARCH 835.23 99.39
1200
1000
800
Series1
600
400 Series2
200
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
AVERAGE
YEAR(07- PRICE OF
08)MONTH SHARES PERCENTAGE
APRIL 252.39 100
MAY 263.34 104.34
JUNE 272.09 107.81
JULY 291.91 115.66
AUGUST 269.29 106.69
SEPTEMBER 290.15 114.96
OCTOBER 316.79 125.51
NOVEMBER 378.39 149.92
DECEMBER 446.45 176.89
JANUARY 476.91 188.96
FEBRUARY 420.69 166.68
MARCH 489.85 194.08
600
500
A V E RA GE P RICE OF
400
S HA RE S
300
200 P E RCE NTA GE
100
0
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
CONCLUSION
BOOK
1. INVESTMENT MANAGEMENT, V.A.ADVANI, HPH
2. STATISTIC FOR MANAGEMENT,JEVEN&RUBIN,PHI
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