Trading Through Technical Analysis

Trading Through Technical Analysis
A PROJECT REPORT ON
TRADING THROUGH TECHNICAL ANALYSIS
UNDERTAKEN AT A
SOUTH GUJARAT SHARES & SHAREBROKERS LTD.
SUBMITTED BY
NARENDRA N. PATEL
ID NO: - O8MBA36
GUIDED BY:
MR. NIRAV MAJMUDAR
MBA PROGRAMME
2008-10
SUBMITTED TO
SRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT
AND COMPUTER APPLICATION
1
Srimad Rajchandra Institute Of Management And Computer Application
ACKNOWLEGEMENT
I give my thanks to the officers & executives and all the staff
members of the SOUTH GUJARAT SHARES & SHARE BROKERS
LTD. for their valuable assistance and excellent co-operation in
preparation of this Project Report.
My thanks goes to Veer Narmad South Gujarat University

that gave me a chance to brighten my academic qualification that
provide that opportunity to have practical knowledge about the
relevant field.
I would like to thanks Mr. Nirav Majmudar, permanent faculty

& finance teacher for making available all facilities in fulfilling the
requirement for my project report and has provided me complete
guidance during my project report.
The project would have been possible throughout the

experience, guidance and supervision of Mr. Rajesh Patel has
potentially and critically gone through the subject matter.
Finally, I would like to thank to all these people who are

directly or indirectly contributed to my project work.
Narendra N. Patel
Signature
2
DECLARATION
I, Narendra N. Patel., here by declare that the project report

entitled “TRADING THROUGH TECHNICAL ANALYSIS” under the
guidance of Mr. Nirav Majmudar, submitted in partial fulfillment of the
requirement for degree of Master of Business Administration to Veer
Narmad South Gujarat University, Surat is my original work – research
study – carried out during 25th May, 2009 to 25th July, 2009. Hereby I
declare that this report will not submitted for the award of any other
degree/diploma/ fellowship of other similar titles of price to any other
institution/ organization of university by any other person or for
copying.
Place:
Date: / /
Signature
(Narendra N. Patel.)
F.Y.M.B.A. (Sem-2)
ID No:08MBA36
3
EXECUTIVE SUMMARY
India's economy is on the fulcrum of an ever increasing growth

curve. With positive indicators such as a stable 8-9 per cent annual
growth, rising foreign exchange reserves, a booming capital market
and a rapid rise in FDI in the last year, India has emerged as the
second fastest growing major economy in the world.
The economy has been growing at around 9 percent in the past

two years recording a growth rate of 9.4 per cent and 8 per cent in
2006-07 and 2007-08 respectively and 6.5 percentage in 2008-09.
significantly, the industrial and service sectors have been contributing
a major part of this growth, suggesting the structural transformation
underway in the Indian economy.
Investment in the equity market is very risky compare to the

other instruments like mutual fund and insurance. So it needs in depth
analysis of the scripts.
The study of the stock market has become divided in to two

kinds of thought: Fundamental analysis and technical analysis.
Fundamental analysis focuses on the economic forces of supply and
demand that cause prices to move higher and lower as to stay the
same. Technical analysis is the study of market action primarily
through the use of charts for the purpose of forecasting future price
trends. The term “market action” includes the two principle sources of
information available to the technicians-price and volume.
I have chosen the technical analysis for the purpose of analyzing

the scripts. I have studied basic theories of technical analysis which are
applicable to this analysis which includes various indicators and
oscillators. I have used MACD oscillator and RSI indicator for analyzing
scripts and to obtain buy and sell signals.
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From my research, I found that it is really a nice approach to

estimate the future. It really helps to catch the small moves and gives
the opportunity to investor to get returns in the small and long run
also.
The selection of the company:-
Here companies have been selected on the basis of market

capitalization. Those companies are highest at market capitalization
have been selected. Here it is to be noted that BHARTI AIRTEL and
SBI has not been selected because historical data of the share prices is
not available on NSE.
From my research of historical data which yields profit and losses

has been calculated on the basis of MACD and RSI which has yield
profits which is resulted from the frequent buy-sell. The procedure has
been well explained in the report. The all result which has been
obtained after analysis of these signals. These all result is said to be
obtained by adopting active trading strategy. These result of active
trading strategy has been obtained are compared with the passive
trading strategy which referred to the buying the stocks at the starting
of year and selling the security after particular time interval (at the end
of the year in this report).
So these analysis and interpretation of the data has been done

and all the results and findings obtained. It is found from the research
that active trading strategy is more useful then the passive trading
strategy.
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CERTIFICATE
This is to certify that the Summer Project report

entitled “Trading Through Technical Analysis”
has been carried out by Narendra Patel
(08MBA36) at South Gujarat Shares &
Sharebroker Ltd.as a partial fulfillment of the
requirement for the degree of Master of Business
Administration (M.B.A.) during academic year 2008-
10.
Nirav Majmudar Dr. Bankim

Patel
FACULTY GUIDE DIRECTOR
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TABLE OF CONTENTS
SR. TRADING THROUGH TECHNICAL PAGE

NO. ANALYSIS NO.
01 About the Company
1.1 Introduction about company
1.2 Profile of the company
1.3 Ideology
02 About the Topic & Literature Review
03 RESEARCH METHODOLOGY
3.1 Research Objectives
3.2 Research Design
3.3 Limitation to the study
04 DATA ANALYSIS & INTERPRETATION
05 FINDINGS & CONCLUSIONS
06 RECOMMENDATIONS
BIBLIOGRAPHY
APPENDIX
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INTRODUCTION ABOUT SGSSL

The South Gujarat Shares and Share brokers Ltd. (SGSSL) was
started with authorized share capital of Rs. 3 crores and it’s paid up
capital 1.27 crores under the company Act 1956. In 1992, The
Company started its activities as association of person as sub broker
giving service for buying and selling of securities to investors in Surat.
Mr. Anil Choksy, Mr. Ashok Maheta, Mr. Jagdish Patel, Mr.Paresh
jarivala Who took initiative to forming a limited company, So as
become member of NSE India .In this way SGSSL was registered under
company Act on the 5th January 1995, and conducted it’s trading
business as member of National Stock Exchange.
31st march 1995 which was first financial year completed by the
company after its registration & in this year the company suffered a
loss of Rs.80000 due to heavy expenses like assets purchase,
maintenance, establishment of building, furniture etc. The company
had also faced loss in next financial year (1995) of RS.118000 because
of prevailing poor market condition.
During the year ended 31st march, 1997 the company has turned
the table. On the total income of Rs. 4,5,80,000, the company made a
net profit of Rs.3,70,000 and after adjusting the losses of Rs. 1,98,000,
the Net Profit shown to the Balance Sheet was Rs. 1,78,000.
On the 27th February 1996, the company obtained SEBI
registration broker. Originally the operation was started at Baroda
because at that time National Stock Exchange not providing
connectivity in Surat. When connectivity was started, it shifted in Surat
at 23rd July 1996 at Belgium Chambers. At Belgium Chambers the
company has huge space for smooth operation approximately
2700sq.ft.
In the next year 1998 the company has taken approval from
National Security Depository Ltd. (NSDL) to work as Depository
Participant (DP). In the beginning only 8 scrip were available which is
only for FII (Foreign Institutional Investors) and Mutual Funds. Then
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after trading of equity on NSE’s scrip were started. There are more
than 12,500 holders which having demated a/c in SGSSL. The
company is second largest in demate a/c in Surat city.
In present condition company try to register its sub-broker in
SEBI. But now in present, company has 35 registered sub-brokers and
other members.
Company has a Computer-to-Computer Link (CTCL) network,
which are connected with LAN and WAN. In Surat City Company has
given many register sub-broker CTCL. Company also provides its
services outside in Surat like, Navsari, Bilimora and Hazira. In company
there are 28 people working. Company has also connect with 5 servers
in this server one server connect with NSE CTCL and second with
disaster management. In NSDL also there is one main server.
The company provide 3 different rooms for online trading to its
clients and sub-broker with Satellite dish, Modem and Iqara cable. The
trading business of the company is rapidly expanding and its daily
trading volumes have now crossed Rs.4 crores. The company expects
the trading volume will increase in future.
Mr. Anil Choksy (Chairman & MD) of the company leads the
operation of the company. He along with other Whole-time Directors
maintains a close hand on the operation. The company has its own
internal trading and settlement regulation, which are in conformity with
the NSE and SEBI regulation. These regulations ensure that the
activities of the company are managed on the Co-operative basis and
in the high interest of the investors and the shareholders of the
company.
1.2 Profile of Company
1. Name of the company
“South Gujarat Shares and Share brokers Limited”
2. Registered Office
3rd Floor, Belgium Square,
Opp.Linear bus stop,
Ring Road,
10
Surat-395 003.
3. Boards of Directors
Mr.Anil J. Choksy (Chairman and MD)
Mr.Bhadresh G. Kapadia (Whole-time Director)
Mr.Shashikant R. Yadav (Whole-time Director)
Mr.Aiyush M. Yacoobali (Whole-time Director)
Mr.Bipinchandra Lineswala (Whole-time Director)
Mr.Chetan T. Halvawala (Director)
Mr.Paresh H. Zaveri Director (Director)
4. Bankers
Bank of Baroda
 Canara Bank
 HDFC Bank
Prime Co-operative Bank
5. Internal Auditor
Anvish Sanghavi & Company
Chartered Accountant
Surat.
1.3 IDEOLOGY
The emphasis in SGSSL is the ‘Client’. We are committed to

service our clients employing a personalized and human approach,
understanding their need and customizing solutions to fulfill their need.
It is an approach that is inculcated and ingrained in all the employees
and is followed from the top to bottom in the organization. We cater to
our clients by offering them insights in to the markets, advising them
and providing them with our best services.
CRM (Customer Relationship Management) Approach is follows
 Speed & Quality in Delivery System
 Consistency of service quality
 Professional Approach
 Fulfilling the Client’s need
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LITERATURE REVIEW:
For this study, I have collected lot of data from the different sources of
data. Mainly I have used two methods for data collection.
A) Primary Data: -
 Personal consultation with broker as well as mentor:
In which I have consulted with the mentor about how to get the
data which help me in analysis. How to get that data from which
sources and also how to obtain graphs from the various sites and
broker has help me out in obtaining that data. Mentor has also
given me knowledge about various techniques to use in the
technical analysis.
B) Secondary Data:
 Internet
In which various information and data supporting to the topic has
been referred and it has help me out in understanding various
techniques and graphs explained in the theory used in analyzing
the data.
 Data has been collected for the understanding purpose has
been collected through www.investopedia.com.
 Data of Market capitalization has been obtained through
www.Moneycontrol.com
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What is Technical Analysis?

We can define Technical Analysis as a study of the stock market
considering factors related to the supply and demand of stocks.
Technical Analysis doesn’t look at underlying earnings potential of a
company while evaluating stocks {unlike fundamental Analysis}.
It uses charts and computer programs to study the stock’s
trading volume and price movements in the hope of identifying a trend.
In fact the decision made on the basis of technical analysis is done only
after inferring a trend and judging the future movement of the stock on
the basis of the trend. Technical Analysis assumes that the market is
efficient and the price has already taken into consideration the other
factors related to the company and the industry. It is because of this
assumption that many think technical analysis is a tool, which is
effective for short-term investing.
History of Technical Analysis:
Technical Analysis as a tool of investment for the average
investor thrived in the late nineteenth century when Charles Dow, then
editor of the Wall Street Journal, proposed the Dow theory. He
recognized that the movement is caused by the action/reaction of the
people dealing in stocks rather than the news in itself.
Technical analysis is a method of evaluating securities by analyzing the
statistics generated by market activity, such as past prices and
volume. Technical analysts do not attempt to measure a security's
intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future activity.
Just as there are many investment styles on the fundamental side,
there are also many different types of technical traders. Some rely on
chart patterns, others use technical indicators and oscillators, and most
use some combination of the two. In any case, technical analysts'
exclusive use of historical price and volume data is what separates
them from their fundamental counterparts. Unlike fundamental
analysts, technical analysts don't care whether a stock is undervalued -
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the only thing that matters is a security's past trading data and what
information this data can provide about where the Security might move
in the future.
1. The Market Discount Everything

A major criticism of technical analysis is that it only considers price
movement, ignoring the fundamental factors of the company.
However, technical analysis assumes that, at any given time, a stock's
price reflects everything that has or could affect the company -
including fundamental factors. Technical analysts believe that the
company's fundamentals, along with broader economic factors and
market psychology, are all priced into the stock, removing the need to
actually consider these factors separately. This only leaves the analysis
of price movement, which technical theory views as a product of the
supply and demand for a particular stock in the market.
2. Price Moves in Trends

In technical analysis, price movements are believed to follow trends.
This means that after a trend has been established, the future price
movement is more likely to be in the same direction as the trend than
to be against it. Most technical trading strategies are based on this
assumption.
3. History Tends to Repeat Itself

Another important idea in technical analysis is that history tends to
repeat itself, mainly in terms of price movement. The repetitive nature
of price movements is attributed to market psychology; in other words,
market participants tend to provide a consistent reaction to similar
market stimuli over time. Technical analysis uses chart patterns to
analyze market movements and understand trends. Although many of
these charts have been used for more than 100 years, they are still
believed to be relevant because they illustrate patterns in price
movements that often repeat themselves.
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How is Technical Analysis done?

Technical Analysis is done by identifying the trend from past
movements and then using it as a tool to predict future price
movements of the stock. It can be done by using any of the following
methods:
a) Moving Averages—
This method is used to predict the trend and specify various
support and resistance levels in the short and long term period. Most
commonly used moving averages are 30 DMAs and 200 DMAs. Where
DMA means Days Moving Average.
b) Charts & Patterns—

Some analysts’ uses charts and patterns to decide on the trend
and then judge the future movement. The tool used by such analyst is
converting the chart in one of the many form of many shapes
commonly formed by stocks. Some of such patterns are:
Reversal Patterns: - Continuation Patterns: -

1. Bump and Run 1.Cup with Handle
2. Double Top 2. Flag Pennant
3. Double Top 3. Symmetric Triangle
4. Double Bottom 4.Ascending Triangle
5. Head And Shoulders Top 5. Descending Triangle
6. Head And Shoulders Bottom 6. Price Channel
7. Falling Wedge 7. Rectangle
8. Rising Wedge 8. Measured {Bear} Move
9. Rounding Bottom
10. Triple Top
11. Triple Bottom
Who uses Technical Analysis?
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Investors for their short-term trading decisions use Technical

Analysis. This short-term may be further divided in day trading, short-
term investment and for hedging purposes. The role played by
Technical Analysis in each case is as follows:
1) Day Traders:
A day trader is one who takes and squares off his position both on the
same day. Mostly a day trader counts on turnover rather than margin.
A day trader will interpret the market movement in the manner stated
below.
Suppose Mr. X is a day trader who deals in S&P CNX Nifty. The
movement of Nifty during a particular day is stated below, if Mr. X
follows the recommendations made by Technical Analysis he should
sell the Nifty at 1904-1908 levels and again at 1890 level. It can be
clearly seen that buying is coming at the level of 1870-1875; it is better
He Squares off and can even become a net buyer at this range.
2) Short term investors:

These people form the biggest clientele base of both the brokers and
the Technical Analyst. To explain the working lets take the price
movement curve of Infosys Technologies on NSE for the period 1st
January 2003 to 9th April 2003. On closely analyzing the chart you will
notice that a sustained buying is coming at the level of around
Rs.4000. Another aspect, which should be noted, is the declining trend
in terms of short term ‘High’ created by the stock. We can clearly
deduce that each short-term rally is creating a lower high over the
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given term. In such a situation it is recommended by analyst to buy at

the resistance level but sell it off immediately if it breaks the level by a
margin of 2-3%. This is just an illustrative example and the level of
analysis varies with each case.
3.Hedgers:
These are generally big investors, who have lot of money at stake and
hence
they look to have some hedging of their risk. The strategy followed by
this section of investors is that they compare the stock in consideration
with the index and on the basis of the result of this comparison they
take their position in the stock. This can be explained by comparing the
movement of nifty on the graph with Infosys movement as we have
done in the figure given below.If we look at both the charts of nifty
movement with Infosys movement we find that although both have
fallen over the period but Infosys has witnessed some rallies and hence
we can clearly say that a hedger will benefit by using technical Analysis
and getting out at the periods when Infosys has given an upward rally.
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Is Technical Analysis Helpful?

If we use only technical analysis in itself and do not consider
other aspects it is very unlikely that we will have much success in the
long run, particularly in case of short-term investments. But if we use
Technical analysis along with fundamental analysis or discount the
industry and company related news while considering the valuation,
our chances of minimizing the risk brightens.
One thing that we must realize is that technical analysis provides us
only with the trend and judge future on that basis, it can be far from
actual in few cases, one of them was the day Infosys crashed by 30%
on a single day. By no imagination and no analysis one could have
guessed the same or rather have come closed to it. Therefore the best
use of technical analysis is to realize the trend and levels at which it
will break the trend so that one is prepared to take positions when such
trend breaks. It is because of this disadvantage that Technical analysis
more useful only for short-term investing…
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RESEARCH METHODOLOGY.
RESEARCH OBJECTIVES:-
Primary Objective:
To find out appropriate time to buy and sell securities based on
selected indicator and oscillator.
Secondary Objectives:
Understanding the technical analysis theories and methods to analyze
charts of the 5 companies using technical analysis.
To help suggest investment decision by suggesting buying and selling
signals.
To compare active trading strategy with passive trading strategy to
measure this is more beneficial and profitable one.
RESEACH DESIGN
A research design specifies the methods and procedures for conducting
survey .Research design is the plan and structure of investigation so
conceived as to obtain answer to research questions. The plan is
overall scheme of the research.
♦ RESEARCH DESIGN:
Descriptive Research Design.
♦ DATA COLLECTION METHOD:
Secondary data (1 year)
♦ SAMPLING TECHNIQUE:
Sample of 5 companies has been selected on the basis of market
capitalization from NSE.
♦ Reliance
♦ ONGC
♦ NTPC
♦ NMDC
♦ BHEL
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NSE 10 Jul 11:04

Rank Company Last Price % 52 wk 52 wk Market Cap
Name Chg High Low (Rs. cr)
1 Reliance 1,838.00 -0.83 2,535.00 930.00 289,264.12
2 ONGC 980.00 -1.84 1,220.00 538.15 209,609.51
3 NTPC 192.30 -0.95 233.00 113.00 158,560.28
4 Bharti 786.45 -1.16 1,036.00 483.00 149,293.78
Airtel
5 NMDC 330.05 0.43 474.40 119.00 130,855.45
6 SBI 1,587.85 -1.01 2,039.70 891.50 100,809.46
7 BHEL 2,034.05 0.58 2,400.00 981.00 99,570.82
Here in my project I have used descriptive research design. This

research Design helps to find out (explore) meaning out of the
secondary data. My research is totally dependent on the secondary
database collected from the different relevant sources mentioned at
the end in bibliography. Here I have not taken the data of Bharti airtel
and SBI because the historical data of the stocks were not available on
the NSE site.
LIMITATIONS TO THIS STUDY
(a) COST: - Various field works and visit to training centers,
analyzing data with software may be costly.
(b) TIME: - The scope of study is vast and thus time constraint so
I can’t do the all industry analysis and company analysis.
(c) Resistance to reveal the real investment information by the
broker.
(d) Technical analysis software was not possible as it was
available with main broker only so by analyzing the indicator
and oscillator value. We can easily find out the position of the
scripts but can not predict the exact values.
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Here two techniques has been used for the analysis purpose which
gives the buying and selling signals at the time when market gives
opportunity to earn profit within short time span and techniques are
as follows.
1)Moving Average Convergence Divergence - MACD

A trend-following momentum indicator that shows the
relationship between two moving averages of prices. The MACD
is calculated by subtracting the 26-day exponential moving average
(EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the
"signal line", is then plotted on top of the MACD, functioning as a
trigger for buy and sell signals.
Explanation of Moving Average Convergence Divergence -

MACD
There are three common methods used to interpret the MACD:
1. Crossovers - As shown in the chart above, when the MACD falls
below the signal line, it is a bearish signal, which indicates that it may
be time to sell. Conversely, when the MACD rises above the signal
line, the indicator gives a bullish signal, which suggests that the price
of the asset is likely to experience upward momentum. Many traders
wait for a confirmed cross above the signal line before entering into
a position to avoid getting getting "faked out" or entering into a
position too early, as
Shown by the first arrow.
2. Divergence - When the security price diverges from the MACD. It

signals the end of the current trend.
3. Dramatic rise - When the MACD rises dramatically - that is, the
shorter moving average pulls away from the longer-term moving
average - it is a signal that the security is overbought and will soon
return to normal levels.
Traders also watch for a move above or below the zero line
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because this signals the position of the short-term average relative to

the long-term average. When the MACD is above zero, the short-term
average is above the long-term average, which signals upward
momentum. The opposite is true when the MACD is below zero. As you
can see from the chart above, the zero line often acts as an area of
support and resistance for the indicator.
2)Relative Strength Index - RSI

A technical momentum indicator that compares the magnitude of
recent gains to recent losses in an attempt to determine overbought
and oversold conditions of an asset. It is calculated using the following
formula:
RSI= 100- 100

1+RS
RS = Average of x days' up closes
Average of x days' down closes
From the chart below, the RSI ranges from 0 to 100. An asset is
deemed to be overbought once the RSI approaches the 70 level,
meaning that it may be getting overvalued and is a good candidate for
a pullback. Likewise, if the RSI approaches 30, it is an indication that
the asset may be getting oversold and therefore likely to become
undervalued.
Explanation of Relative Strength Index – RSI

A trader using RSI should be aware that large surges and drops in the
price of an asset will affect the RSI by creating false buy or sell
signals. The RSI is best used as a valuable complement to other stock-
picking tools.
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Signal Generating Procedure

1) MACD:
MACD is an oscillator that measures the convergence and
divergence between two exponential moving averages. A short term
exponential moving average and a long term exponential moving
average are calculated with the help of closing price data. A12 days
and 48 days exponential moving averages constitute a popular
combination. The difference between the short term EMA and long
term EMA represents MACD.
The MACD values for different days are derived by deducting the
long term EMA for each day from the corresponding short term EMA for
the day. These MACD values are plotted on an XY graph with MACD
values on the Y axis and time period on the X axis. The MACD line
would oscillate across the zero line. If the MACD line crosses the zero
line from above the trend can be considered to have turned bearish,
signaling a selling opportunity. On the other hand, if the MACD line
moves above the zero line from below, the trend can be said to have
turned bullish and indicates buying opportunity.
2) RSI:
The RSI ranges from 0 to 100. An asset is deemed to be
overbought once the RSI approaches the 70 level, meaning that it may
be getting overvalued and is a good candidate for a pullback. Likewise,
if the RSI approaches 30, it is an indication that the asset may be
getting oversold and therefore likely to become undervalued.
RSI values above 70 are considered to denote overbought
condition and values below 30 are considered to denote oversold
condition. When the RSI has crossed the 30 line from below to above
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and is rising, a buying opportunity is indicated. When it has crossed 70

line from above to below and is falling, a sell signal is indicated.
Here the analysis has been done using the signal generating
procedure explained above. Now in this graph when MACD line(Red
line) has crossed zero line from the above to below on the 15th then sell
signal has been generated and on the other hand when MACD has
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crossed zero line from below to above on 24th the buy signal has been
generated. This is all about the generating signals using MACD.
Let us see that how RSI is used in generating the signals which help in
buying and selling stocks.
In the above graph we can see that when RSI has crossed the 70
line from above to below on 9th and then selling opportunity exist and
sell signal has been generated. When we go ahead in the same month
on 17th then buying opportunity exist and buy signal is generated. On
the 25th also RSI line cross from above to below so that at that time
also sell signal is generated. Investors are advised to follow the signals
given by technical analyst and he can maximize the return following
the advice.
Now we are moving toward the return calculation on the basis of the
calculation done using MACD and RSI.
For more charts log on to www.icharts.in
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HOW BUY AND SELL SIGNALS WILL GENERATE THE

PROFIT:
In the very beginning itself, buying and selling generating
procedure has been explained but here issue is “how to generate
profit using these signals?”
So let us see that how these signals will generate the profit.
It is also important for the investor that when and how many
positions will be squared-off to earn the maximum return on the
stock held. So it is explained as follows:
First of all there is need to analyses the opportunity of
buying and selling will be converted in to the actual transaction
by the investor. Here it is assumed that all buy signals are
converted in to actual transaction and it will get squared off at
sell signal.
RELIANCE INDUSTRIES LTD.

P&L
Close Signal Signal (MACD) P&L
Date Price (MACD) (RSI) (%) (RSI) (%)
8-May-08 2667.25 Sell 12.07%
9-May-08 2528.4
12-May-08 2553.85
13-May-08 2501.1
14-May-08 2530.75 Buy
15-May-08 2622.95
16-May-08 2635.7 Sell 3.98%
20-May-08 2602.95
21-May-08 2667.7 Sell
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22-May-08 2626.05
23-May-08 2556.2
26-May-08 2515.6
27-May-08 2495.1 Buy
28-May-08 2522.5
29-May-08 2462.7
30-May-08 2403.5
2-Jun-08 2358.8 Buy
3-Jun-08 2406.65
4-Jun-08 2307 Sell -2.245%
Here in the above table, there are many buy and sell signals
has been generated. So in this table we can see that on the 8 th of
May there is one sell signal at which buy position has been
squared off by the investor (MACD). So the profit/loss (12.07%)
according to that signal has been shown in the MACD P&L
column.
But when it came to the RSI Signal column there are one
buy signal and one sell signal is shown. But thereafter one sell
signal and after buy signal is shown. So in this case buy position
will be squared off at the sell signal, but sell signal will not be
considered because there is no stock to sell as all the buy
position has been squared off when sell signal arrived.
Now, let us see that what happens to multiple buy
signals and only alone sell signal.
Signal P&L P&L

Close (MACD Signal (MACD) (RSI)
Date Price ) (RSI) (%) (%)
29-Sep-08 1932.85 Buy
30-Sep-08 1949.35
1-Oct-08 1906.7
3-Oct-08 1761.45
6-Oct-08 1641.6
7-Oct-08 1674.65
8-Oct-08 1648.55
10-Oct-08 1527.6
13-Oct-08 1571.4 Buy
14-Oct-08 1621.05
28
15-Oct-08 1520.2
16-Oct-08 1391.95
17-Oct-08 1306.05
20-Oct-08 1320.9 Buy
21-Oct-08 1394.95
22-Oct-08 1316.8
23-Oct-08 1217.65
24-Oct-08 1019.5
27-Oct-08 1077 Buy
28-Oct-08 1153
29-Oct-08 1201.75
31-Oct-08 1375.45 Sell -7.28%
Now in this case, (RSI column) all the buy signals on the
dates (29-Sep-08, 13-Oct-08, 20-Oct-08, 27-Oct-08) has been squared
off on the selling opportunity existed on 31-Oct-08.in this method all
the buy signals has been averaged and the price obtaind is the
average of all the buy signals. So this strategy has been adopted in all
the companies selected for the technical analysis. Above multiple buy
signals has been squared off at the sell signal generated thereafter. So
here loss has been generated which is -7.28 %( in the RSI P&L column).
Now in this section we will see that is it technical analysis really
helpful in generating more revenue compare to that of investing it once
and forget it for a long time. In short long term investment generates
more profit or this frequent buy sell of the security will yield more profit
to investor. So here comparison has been made between the active
trading strategies (frequent Buy-sell) or passive trading strategy
(invests for a long period and do not sell in between).
For more information about the tables explained above. Detailed
analysis has been found in the APPENDIX.
29
Technical analysis has been done on the basis of this strategy

has generated the following result:
Reliance Active Trading Passive Trading

Particulars MACD RSI total MACD RSI
Buy signals 9 20 29 1 1
Sell signals 8 17 25 1 1
Total number of 17 37 54 2 2
signal
Number of times profit 2 8 10 1 1
Number of times loss 5 3 8 0 0
Average profit 10.05% 10.68% 20.73% 46.55% 38.80%
Average loss 2.03% 3.25% 0.0528 0 0
3
Total profit 9.95% 75.69% 85.64% 46.55% 38.80%
ONGC: Active Trading Passive Trading

Particulars MACD RSI Total MACD RSI
signal
30

Average profit 10.41% 8.38% 18.79 35.46% 6.58%
%
Average loss 4.86% 3.40% 8.26% 0 0
Total profit 6.93% 88.78% 95.71 35.46% 6.58%
%
NTPC Active Trading Passive Trading

signal
Average profit 5.55% 15.58% 21.13% 7.65% 3.02%
Average loss 2.37% 2.74% 5.11% 0 0
Total profit 7.98% 106% 114.30 7.65% 3.02%
%
NMDC Active Trading Passive Trading

signal
Average profit 28.21% 13.01% 41.22% 44.45% 29.04%
Average loss 8.94% 111.44% 120.38% 0 0
Total profit 11.74% -183.85% - 44.45% 29.04%
172.11%
31
BHEL Active Trading Passive Trading

Particulars MACD RSI total MACD RSI
signal
Average profit 5.35% 6.94% 12.29 27.96% 9.59%
%
Average loss 4.96% 12.55% 17.51 0 0
%
Total profit 4.18% 49.91% 54.09 27.96% 9.59%
%
Where,
Average profit = gross profit/number of times profit generated
Average loss = loss generated/ number of times loss generated
Total profit = gross profit -- total loss generated
32
Findings:
 I found that 166 RSI signals and 90 MACD signals have been
generated in a year and total are 256 signals.
 NTPC has 23 MACD signals and Reliance & NTPC has 37 RSI
signals generated in a year which are highest.
 NTPC has highest total number of signal generated that is 60
signals in a year.
 ONGC has reasonable profit margin in both MACD and RSI i.e.
6.93% and 88.78% respectively where as NTPC has 7.98% &
106% respectively.
 NMDC has more average profit for both MACD and RSI 28.21%
&13.01% respectively.
 All companies have high profit for MACD except NTPC.
 NTPC has lowest average loss for MACD and RSI i.e. 2.37%
&2.74% respectively.
 NMDC has highest profit in MACD i.e. 44.45% and reliance has
highest profit in RSI i.e. 44.45%
 NMDC is making losses in using RSI i.e. -183.85%
 Active trading strategy is more useful and gives more return
compare to passive trading strategy.
33
RECOMMENDATIONS:
 It is recommended that one should use RSI because it is more

effective then MACD as it has more accuracy and generate more
signals then MACD and provide more clear guidelines for entry
and exit from the market.
 One should go for active trading strategy because it is more
profitable then passive trading strategy.
34
BIBLIOGRAPHY:
Books:
 Kevin S. (2007). “Portfolio Management”. Second edition,
Prentice-Hall of India Pvt. Ltd.
 Donald R.C., & Pamela S.S.(2003). Business Research Methods,
Eighth Edition, Tata McGraw-Hill Edition.
Sites:
 www.investopedia.com
 www.icharts.in
 www.nseindia.com
 www.Moneycontrol.com
35
APPENDIX
Tables showing analysis of buy and sell signals &
profit
BHEL
Close Signal Signal P&L P&L

Date Price (MACD) (RSI) (MACD)() (RSI)(%)
1-Apr-08 1892.2 sell -9.94%%
2-Apr-08 1853.5
3-Apr-08 1752.75
4-Apr-08 1633.4
7-Apr-08 1636
8-Apr-08 1714.25 buy
9-Apr-08 1775.8
10-Apr-08 1768.35
11-Apr-08 1828
15-Apr-08 1833.2
16-Apr-08 1780.7
17-Apr-08 1785.1
21-Apr-08 1771.15
22-Apr-08 1872.45 sell 8.45
23-Apr-08 1827.35
24-Apr-08 1850.7
25-Apr-08 1870
28-Apr-08 1866.3 buy
29-Apr-08 1891.7
30-Apr-08 1902.15
2-May-08 1910.2
5-May-08 1910.6
6-May-08 1859.15 sell -0.38
7-May-08 1785.4
36
8-May-08 1761.5
9-May-08 1724.8
12-May-08 1745.75
13-May-08 1734.5
14-May-08 1744.6 buy
15-May-08 1801.4
16-May-08 1798.85
20-May-08 1735.7
21-May-08 1771.6
22-May-08 1748.45
23-May-08 1745.1
26-May-08 1655.65
27-May-08 1659.7
28-May-08 1612.5
29-May-08 1597.65
30-May-08 1663.05 buy
2-Jun-08 1594.15 sell
3-Jun-08 1550.15
4-Jun-08 1475.05
5-Jun-08 1444.65
6-Jun-08 1423.3
9-Jun-08 1375.25
10-Jun-08 1383.5 buy
11-Jun-08 1481.85
12-Jun-08 1510.2
13-Jun-08 1557.55
16-Jun-08 1526.8
17-Jun-08 1540.4
18-Jun-08 1501.4
19-Jun-08 1423.85
20-Jun-08 1405.15
23-Jun-08 1359.65 buy
24-Jun-08 1398.4
25-Jun-08 1436.2
26-Jun-08 1436.75
27-Jun-08 1381.25
30-Jun-08 1379.45
1-Jul-08 1356.1 Buy
2-Jul-08 1423
3-Jul-08 1402.05
4-Jul-08 1500.2
7-Jul-08 1467.9
8-Jul-08 1498.7
9-Jul-08 1572.05
10-Jul-08 1563.4 Sell 1.64%
11-Jul-08 1521.6
37
14-Jul-08 1467.25
15-Jul-08 1368.85
16-Jul-08 1378.6 Buy
17-Jul-08 1452.2
18-Jul-08 1531.8 Sell 11.11%
21-Jul-08 1506.3
22-Jul-08 1597.4
23-Jul-08 1773.35
24-Jul-08 1727.6 Sell
25-Jul-08 1654
28-Jul-08 1649.7
29-Jul-08 1593.8
30-Jul-08 1667.15
31-Jul-08 1682
1-Aug-08 1754.9
4-Aug-08 1716.25 Buy
5-Aug-08 1769.9
6-Aug-08 1828.45 Sell
7-Aug-08 1771.8
8-Aug-08 1783.35
11-Aug-08 1830.95 Sell
12-Aug-08 1808.45
13-Aug-08 1786.4
14-Aug-08 1707.8 Sell 10.04%
18-Aug-08 1693.85
19-Aug-08 1677.95 Buy
20-Aug-08 1734.6
21-Aug-08 1671
22-Aug-08 1716.4
25-Aug-08 1688.85
26-Aug-08 1721.9
27-Aug-08 1682.05
28-Aug-08 1629.55 Buy
29-Aug-08 1707.85
1-Sep-08 1722.35
2-Sep-08 1785.9
4-Sep-08 1766.2
5-Sep-08 1732.25
8-Sep-08 1791.7 Sell 6.78%
9-Sep-08 1750.75
10-Sep-08 1711.8
11-Sep-08 1665.3 Sell
12-Sep-08 1698.5
15-Sep-08 1627.6
16-Sep-08 1646
17-Sep-08 1604.25 Buy
38
18-Sep-08 1613.55
19-Sep-08 1708.85 Sell 4.87%
22-Sep-08 1685.85
23-Sep-08 1626.05
24-Sep-08 1663.8
25-Sep-08 1633.9
26-Sep-08 1550.55
29-Sep-08 1512.6 Buy
30-Sep-08 1591.25
1-Oct-08 1591.55
3-Oct-08 1569.75
6-Oct-08 1448.6
7-Oct-08 1496.85
8-Oct-08 1468.75
10-Oct-08 1350.5 Buy
13-Oct-08 1499.8
14-Oct-08 1495.65
15-Oct-08 1397.55
16-Oct-08 1312.7
17-Oct-08 1191.55
20-Oct-08 1097.75
21-Oct-08 1142.15
22-Oct-08 1138.25 Buy
23-Oct-08 1172.55
24-Oct-08 1099.85
27-Oct-08 1079.85
28-Oct-08 1146.45 Buy
29-Oct-08 1176.35
31-Oct-08 1291.7
3-Nov-08 1341.7 Buy
4-Nov-08 1412.6
5-Nov-08 1378
6-Nov-08 1389.2
7-Nov-08 1402.85 Sell 12.55%
10-Nov-08 1515.95
11-Nov-08 1369.3
12-Nov-08 1336
14-Nov-08 1280.5 Sell -4.56%
17-Nov-08 1292.15
18-Nov-08 1267.95
19-Nov-08 1230.85
20-Nov-08 1191.5
21-Nov-08 1279.3 Buy
24-Nov-08 1302
25-Nov-08 1283.6
26-Nov-08 1298.1
39
28-Nov-08 1359.6
1-Dec-08 1270.1
2-Dec-08 1274.75
3-Dec-08 1268.85 Buy
4-Dec-08 1357.7
5-Dec-08 1338.05
8-Dec-08 1361.5
10-Dec-08 1413.35
11-Dec-08 1374.15 Sell 6.90%
12-Dec-08 1362.5
15-Dec-08 1374.55
16-Dec-08 1403.45 Sell
17-Dec-08 1337.35
18-Dec-08 1433.85
19-Dec-08 1442.2
22-Dec-08 1401.25
23-Dec-08 1364.35
24-Dec-08 1351.7
26-Dec-08 1300.6 Buy
29-Dec-08 1346.25
30-Dec-08 1376.15
31-Dec-08 1362.6
1-Jan-09 1402.2 Buy
2-Jan-09 1412.05
5-Jan-09 1438.4
6-Jan-09 1467.25
7-Jan-09 1441.8 Sell 9.79%
9-Jan-09 1417.2
12-Jan-09 1344.35 Sell 0.66%
13-Jan-09 1358.05 Buy
14-Jan-09 1385.95
15-Jan-09 1350.9
16-Jan-09 1403.85
19-Jan-09 1417.05
20-Jan-09 1401.7
21-Jan-09 1349 Buy
22-Jan-09 1368.45
23-Jan-09 1320.75 Buy
27-Jan-09 1378.75
28-Jan-09 1398.45
29-Jan-09 1358.25
30-Jan-09 1320.8
2-Feb-09 1306.4 Buy
3-Feb-09 1341.35
4-Feb-09 1357.25
5-Feb-09 1346.85
40
6-Feb-09 1365.55
9-Feb-09 1391
10-Feb-09 1452.4
11-Feb-09 1447.9 Sell 7.27%
12-Feb-09 1410.7
13-Feb-09 1467.4 Sell
16-Feb-09 1400.15
17-Feb-09 1381.25
18-Feb-09 1398.35
19-Feb-09 1383.2
20-Feb-09 1364.1
24-Feb-09 1361.6 Buy
25-Feb-09 1380.15
26-Feb-09 1405.45
27-Feb-09 1403.85
2-Mar-09 1383.8
3-Mar-09 1364.55
4-Mar-09 1333.1
5-Mar-09 1283
6-Mar-09 1311.15
9-Mar-09 1301.05 Buy
12-Mar-09 1342.05
13-Mar-09 1371.35
16-Mar-09 1404.85
17-Mar-09 1401.65 Buy
18-Mar-09 1459.25
19-Mar-09 1411.65 Sell 5.69%
20-Mar-09 1378.05
23-Mar-09 1410.3
24-Mar-09 1443.7
25-Mar-09 1482.05
26-Mar-09 1565.9
27-Mar-09 1549.8 Sell
30-Mar-09 1472.5
31-Mar-09 1510.55
41
NMDC
Close Signal P&L P&L

Date Price (MACD) Signal(RSI) (MACD)(%) (RSI) (%)
1-Apr-08 10941.4 sell -7.87%
2-Apr-08 10814.7
3-Apr-08 10354.1
4-Apr-08 10188
7-Apr-08 11206.8
8-Apr-08 12327.5
9-Apr-08 13560.25
10-Apr-08 1423.85
11-Apr-08 1495.05
15-Apr-08 1420.3 sell
16-Apr-08 1349.3
17-Apr-08 1302.9
21-Apr-08 1310.65
22-Apr-08 1255.65
23-Apr-08 1211.45 buy
24-Apr-08 1226.6
25-Apr-08 1287.95
28-Apr-08 1352.35
29-Apr-08 1346.45
30-Apr-08 1413.8
2-May-08 1484.5
5-May-08 1529.3
6-May-08 1476.65
7-May-08 1418.9 sell
8-May-08 1489.85
9-May-08 1441.95
12-May-08 1481.75
13-May-08 1458.65
14-May-08 1487.4
15-May-08 1486.55
16-May-08 1448.65
20-May-08 1405.7 buy
21-May-08 492
22-May-08 512.05
23-May-08 486.45
42
26-May-08 462.15
27-May-08 439.05
28-May-08 428.45
29-May-08 430.2
30-May-08 413.3
2-Jun-08 392.65 sell
3-Jun-08 379.6
4-Jun-08 360.65
5-Jun-08 359.55
6-Jun-08 373.25 buy
9-Jun-08 379.75
10-Jun-08 378
11-Jun-08 380.95
12-Jun-08 381.9
13-Jun-08 375.2
16-Jun-08 379.35
17-Jun-08 377.75
18-Jun-08 380.55
19-Jun-08 372.15
20-Jun-08 353.6
23-Jun-08 335.95
24-Jun-08 319.15
25-Jun-08 305.95
26-Jun-08 302.1
27-Jun-08 287
30-Jun-08 272.65
1-Jul-08 259.05 Sell
2-Jul-08 255.85
3-Jul-08 243.1
4-Jul-08 230.95
7-Jul-08 219.4 Buy
8-Jul-08 230.4
9-Jul-08 241.95
10-Jul-08 251.7 Sell -218.81
11-Jul-08 241.4
14-Jul-08 250.9
15-Jul-08 238.35
16-Jul-08 226.45
17-Jul-08 218.8 Buy
18-Jul-08 229.75
21-Jul-08 223.2
22-Jul-08 234.2
23-Jul-08 245.95
24-Jul-08 258.25
43
25-Jul-08 271.2 Buy

28-Jul-08 284.8
29-Jul-08 299.05
30-Jul-08 314
31-Jul-08 329.7
1-Aug-08 346.2
4-Aug-08 362.95
5-Aug-08 362.1
6-Aug-08 344 Sell 21.16
7-Aug-08 327.45 Buy
8-Aug-08 343.85
11-Aug-08 361.05 Buy
12-Aug-08 359.95 Sell 24.12
13-Aug-08 359.1
14-Aug-08 352
18-Aug-08 346.45
19-Aug-08 332.95 Sell Buy -8.44
20-Aug-08 349.6
21-Aug-08 332.85
22-Aug-08 326.6
25-Aug-08 313.75
26-Aug-08 307.9
27-Aug-08 303.45
28-Aug-08 289.5 Buy
29-Aug-08 304
1-Sep-08 310.85
2-Sep-08 312.05
4-Sep-08 313.35
5-Sep-08 298.35
8-Sep-08 296.45
9-Sep-08 298.2
10-Sep-08 284.45
11-Sep-08 282.4
12-Sep-08 279.2
15-Sep-08 252.8
16-Sep-08 231.5
17-Sep-08 222.95
18-Sep-08 206.5
19-Sep-08 216.85 Buy
22-Sep-08 227.7
23-Sep-08 238.25
24-Sep-08 238
25-Sep-08 242.25 Sell -15.49
26-Sep-08 233.4
44
29-Sep-08 221.75
30-Sep-08 215.5
1-Oct-08 220.55
3-Oct-08 216.25
6-Oct-08 205.45
7-Oct-08 195.7
8-Oct-08 190.3
10-Oct-08 183
13-Oct-08 184.05 Buy
14-Oct-08 191.05
15-Oct-08 184.5
16-Oct-08 184
17-Oct-08 175
20-Oct-08 169.55
21-Oct-08 173.05
22-Oct-08 165.55
23-Oct-08 157.4
24-Oct-08 149.6
27-Oct-08 142.15
28-Oct-08 144.95
29-Oct-08 142.5
31-Oct-08 143.7
3-Nov-08 150.9 Buy
4-Nov-08 158.45
5-Nov-08 158.7
6-Nov-08 153.2
7-Nov-08 155.6
10-Nov-08 180.55
11-Nov-08 185.45
12-Nov-08 176.85 Sell -4.07
14-Nov-08 173
17-Nov-08 159.55
18-Nov-08 150.4
19-Nov-08 150.5
20-Nov-08 141.3
21-Nov-08 142.9 Sell -5.60
24-Nov-08 140.6
25-Nov-08 139.45
26-Nov-08 129.65
28-Nov-08 126.85
1-Dec-08 128.5
2-Dec-08 123.85 Buy
3-Dec-08 133.3
4-Dec-08 137.5
45
5-Dec-08 131.9
8-Dec-08 138.05
10-Dec-08 139.25
11-Dec-08 141
12-Dec-08 141.8
15-Dec-08 157.2
16-Dec-08 181.2
17-Dec-08 170.05 Sell
18-Dec-08 174
19-Dec-08 171.85
22-Dec-08 167.65
23-Dec-08 162.75
24-Dec-08 163.9
26-Dec-08 156.35 Buy
29-Dec-08 162.05
30-Dec-08 165.5
31-Dec-08 165.75
1-Jan-09 191.3 Sell 35.26
2-Jan-09 188.75
5-Jan-09 187.75
6-Jan-09 184.65
7-Jan-09 160.15
9-Jan-09 147.95
12-Jan-09 147
13-Jan-09 145.45
14-Jan-09 149.35
15-Jan-09 145.75 Buy
16-Jan-09 151.2
19-Jan-09 153.3
20-Jan-09 150.75
21-Jan-09 148.05
22-Jan-09 147.15
23-Jan-09 145.6 Buy
27-Jan-09 147.45
28-Jan-09 170.4
29-Jan-09 165.8
30-Jan-09 166.3
2-Feb-09 164.7
3-Feb-09 164.1
4-Feb-09 165.1
5-Feb-09 159.95
6-Feb-09 159.2 Buy
9-Feb-09 171.6 Buy
10-Feb-09 170.3 Sell 10.91
46
11-Feb-09 168.85
12-Feb-09 167.8
13-Feb-09 168.4
16-Feb-09 166
17-Feb-09 161.75
18-Feb-09 159.95 Sell -7.28
19-Feb-09 158.65
20-Feb-09 152.65
24-Feb-09 152.85
25-Feb-09 150.05
26-Feb-09 147.65 Buy
27-Feb-09 151.7
2-Mar-09 150.65 Sell
3-Mar-09 145.6
4-Mar-09 146.2
5-Mar-09 146.8
6-Mar-09 143.4
9-Mar-09 142.45
12-Mar-09 143.3
13-Mar-09 143.5 Buy
16-Mar-09 150
17-Mar-09 150.1
18-Mar-09 152.4
19-Mar-09 151.65 Sell 4.01
20-Mar-09 150.8
23-Mar-09 162.5 Buy
24-Mar-09 155.65 Sell
25-Mar-09 156.65
26-Mar-09 155.1
27-Mar-09 159.85
30-Mar-09 155.65
31-Mar-09 155.8
NTPC
Signal Signal P&L P&L

Date Close Price (MACD) (RSI) (MACD)% (RSI)%
1-Apr-08 195.15 Sell 1.05%
2-Apr-08 193.8
3-Apr-08 193.95
47
4-Apr-08 189.3
7-Apr-08 190.2
8-Apr-08 186.65
9-Apr-08 187.55
10-Apr-08 186
11-Apr-08 186.85 Buy
15-Apr-08 191.4 sell 2.38
16-Apr-08 187.35
17-Apr-08 189.4
21-Apr-08 194.2
22-Apr-08 195.9
23-Apr-08 195.9 sell
24-Apr-08 190.3
25-Apr-08 192.65
28-Apr-08 193
29-Apr-08 194.75 Buy
30-Apr-08 196.75
2-May-08 200.75 sell 3.00%
5-May-08 198.3
6-May-08 196.1
7-May-08 194.9
8-May-08 192.75
9-May-08 191.95
12-May-08 192.1
13-May-08 191.55
14-May-08 190.05
15-May-08 191.35 Buy
16-May-08 191
20-May-08 186
21-May-08 182
22-May-08 178.75
23-May-08 176.8
26-May-08 175.55
27-May-08 177.45
28-May-08 176.8
29-May-08 171.25
30-May-08 172.35 Buy
2-Jun-08 161.4 sell
3-Jun-08 159.9
4-Jun-08 157.85
5-Jun-08 166.9 buy sell -8.95%
6-Jun-08 165.6
9-Jun-08 163.3
10-Jun-08 161.55
11-Jun-08 165.7
48
12-Jun-08 163.15
13-Jun-08 161.25
16-Jun-08 166.05
17-Jun-08 168.2 sell
18-Jun-08 167.3
19-Jun-08 165.8
20-Jun-08 162.9
23-Jun-08 162.15
24-Jun-08 155.6 sell -6.68%
25-Jun-08 156.75
26-Jun-08 155.2
27-Jun-08 150.8
30-Jun-08 151.9
1-Jul-08 153.15 Buy
2-Jul-08 158.9
3-Jul-08 152.55
4-Jul-08 153.9
7-Jul-08 155.6
8-Jul-08 161.3
9-Jul-08 168.45
10-Jul-08 166.95
11-Jul-08 162 Sell
16-Jul-08 162.35
17-Jul-08 165.3
18-Jul-08 173.8
21-Jul-08 181.5
22-Jul-08 184.95
23-Jul-08 190.45
24-Jul-08 185.55 Sell
25-Jul-08 187.7
28-Jul-08 184.75
29-Jul-08 178.5
30-Jul-08 170.9
31-Jul-08 170.35
1-Aug-08 176.8 Buy
4-Aug-08 174.75
5-Aug-08 182.8
6-Aug-08 180.6
7-Aug-08 183.6
8-Aug-08 184.95
11-Aug-08 185.8
12-Aug-08 185.15
13-Aug-08 186.4 Sell
14-Aug-08 181.5
18-Aug-08 180.35 Buy
49
19-Aug-08 181.75
20-Aug-08 183.9
21-Aug-08 173.5
22-Aug-08 170.55 Sell 3.27%
25-Aug-08 171
26-Aug-08 172.1 Buy
27-Aug-08 171.3
28-Aug-08 169.7 Buy
29-Aug-08 174.9
1-Sep-08 173.2 Buy
2-Sep-08 177.15
4-Sep-08 174.1
5-Sep-08 173.5
8-Sep-08 181.55
9-Sep-08 179.5 Sell 3.04%
10-Sep-08 178.1
11-Sep-08 173.25
12-Sep-08 173.95
15-Sep-08 170.4
16-Sep-08 170.4 Sell -1.64%
17-Sep-08 169.1 Buy
18-Sep-08 174.05 Buy
19-Sep-08 182.95
22-Sep-08 181.75 Sell 6.96%
23-Sep-08 179.55
24-Sep-08 177.95
25-Sep-08 179.05
26-Sep-08 174.35
29-Sep-08 166.25 Sell Buy -4.69%
30-Sep-08 171.9
1-Oct-08 173.95
3-Oct-08 171.85
6-Oct-08 168.45
7-Oct-08 176.45
8-Oct-08 175.75
10-Oct-08 165.25 Buy
14-Oct-08 174.7
15-Oct-08 167.3
16-Oct-08 165.9
17-Oct-08 150.25
20-Oct-08 151.5
21-Oct-08 152.45
22-Oct-08 144.3
23-Oct-08 143.2
24-Oct-08 130.45
50
27-Oct-08 125.75
28-Oct-08 132.55 Buy
29-Oct-08 134
31-Oct-08 141.1
3-Nov-08 150.95
4-Nov-08 151.9
5-Nov-08 147.5 Sell
6-Nov-08 144.4 Buy
7-Nov-08 151.4 Buy
10-Nov-08 162.85 Sell 6.60%
11-Nov-08 151.05
12-Nov-08 150.2
14-Nov-08 149.35
17-Nov-08 150.65 Sell -0.27%
18-Nov-08 139.3
19-Nov-08 136
20-Nov-08 138.55 Buy
21-Nov-08 150.55
24-Nov-08 153.5
25-Nov-08 153.9 Buy
26-Nov-08 164.5
28-Nov-08 159.45 Sell 13.11%
1-Dec-08 156.45
2-Dec-08 160.15
3-Dec-08 158.95
4-Dec-08 165.05 Sell
8-Dec-08 166.25
10-Dec-08 168.9
11-Dec-08 167.1 Sell
12-Dec-08 164.9
15-Dec-08 168.55
16-Dec-08 174.65
17-Dec-08 173.8
18-Dec-08 183
19-Dec-08 182.2
22-Dec-08 181.7 Sell
23-Dec-08 179.7
24-Dec-08 177.9
26-Dec-08 176.8
29-Dec-08 177.05
30-Dec-08 181.55 Sell
31-Dec-08 180.6
1-Jan-09 182.5
2-Jan-09 184.15
5-Jan-09 180.8 Sell 14.88%
51
6-Jan-09 177.05
7-Jan-09 171.45
9-Jan-09 178.25 Buy
12-Jan-09 170.9
13-Jan-09 168 Buy
14-Jan-09 171.6
15-Jan-09 166.7
16-Jan-09 179.85
19-Jan-09 178.4
20-Jan-09 185.95 Sell 6.89%
21-Jan-09 179.95
22-Jan-09 178.55
23-Jan-09 179.85
27-Jan-09 190.1 Buy
28-Jan-09 191.25
29-Jan-09 190.25
30-Jan-09 189.65 Sell
2-Feb-09 181.2 Sell -4.91%
3-Feb-09 176.9
4-Feb-09 176.85
5-Feb-09 176.85 Buy
6-Feb-09 180.35
9-Feb-09 182.95
10-Feb-09 180.3
11-Feb-09 180.45
12-Feb-09 179.85
13-Feb-09 182.95
16-Feb-09 178.05
17-Feb-09 174.15 Buy
18-Feb-09 176.4
19-Feb-09 179.1
20-Feb-09 177.75
24-Feb-09 178.2
25-Feb-09 180.2
26-Feb-09 184.75 Buy
27-Feb-09 185
2-Mar-09 178.85
3-Mar-09 178.8
4-Mar-09 179.85 Sell -2.72%
5-Mar-09 172.8 Buy
6-Mar-09 177.65
9-Mar-09 176.65
12-Mar-09 174.05
13-Mar-09 170.25
16-Mar-09 171.15 Buy
52
17-Mar-09 173.85
18-Mar-09 175.1
19-Mar-09 178.6 Sell 2.73%
20-Mar-09 177.55
23-Mar-09 183.7 Buy
24-Mar-09 181.2 Sell
25-Mar-09 177
26-Mar-09 181.3
27-Mar-09 182.1
30-Mar-09 183.5
31-Mar-09 179.85
ONGC
Close Signal P&L P&L
Date Price (MACD) Signal(RSI) (MACD)% (RSI)%
2-Apr-08 1012.7 Buy
3-Apr-08 1018.65
4-Apr-08 1005.2
7-Apr-08 1018.6
8-Apr-08 1012
9-Apr-08 1014
10-Apr-08 1003.15 Sell -0.952001
11-Apr-08 1002.85
15-Apr-08 1026.05 Buy
16-Apr-08 1017.55 sell 7.21
53
17-Apr-08 1017.3
21-Apr-08 1031.5
22-Apr-08 1051.95
23-Apr-08 1043.6 sell
24-Apr-08 1032.4
25-Apr-08 1055.15 sell
28-Apr-08 1048.5
29-Apr-08 1051.65
30-Apr-08 1033.05
2-May-08 1039.95
5-May-08 1039.85
6-May-08 1043.5
7-May-08 1038.7
8-May-08 1029.95 sell 0.38%
9-May-08 1031.6
12-May-08 1029.5
13-May-08 1000.3
14-May-08 939.3
15-May-08 951.35
20-May-08 936.8
21-May-08 941.55
22-May-08 926.1
23-May-08 900.15
26-May-08 894.9
27-May-08 884.45
28-May-08 873.85
29-May-08 853.25
30-May-08 865.2 Buy
2-Jun-08 833.1
3-Jun-08 839.3 Buy
4-Jun-08 886.2
5-Jun-08 957.1
6-Jun-08 938.95 sell 7.85%
9-Jun-08 879.95
10-Jun-08 829.55
11-Jun-08 831.4
12-Jun-08 832.4 Buy
13-Jun-08 841.95
16-Jun-08 845.05
17-Jun-08 883.25
18-Jun-08 881.95 Sell 5.62%
19-Jun-08 855.7
20-Jun-08 867.65
23-Jun-08 884.8
24-Jun-08 853.85
25-Jun-08 865.4
26-Jun-08 871.75
27-Jun-08 832.5
54
30-Jun-08 815.05 sell -2.98%

1-Jul-08 793.8 Buy
2-Jul-08 859.35
3-Jul-08 859.4
4-Jul-08 876.5
7-Jul-08 882.55
8-Jul-08 867.7
9-Jul-08 877.3
10-Jul-08 882.7 Sell
11-Jul-08 849.5
16-Jul-08 864.1
17-Jul-08 902.55
18-Jul-08 944
21-Jul-08 955.25
22-Jul-08 964.15
23-Jul-08 994.55
24-Jul-08 1027.05 Sell
25-Jul-08 983.6
28-Jul-08 1011.6
29-Jul-08 983.45
30-Jul-08 990.5
31-Jul-08 996.25
1-Aug-08 997.55 Sell 20.43%
4-Aug-08 982.15
5-Aug-08 1003.05
6-Aug-08 1016.9
7-Aug-08 1024.35
8-Aug-08 1063.9
11-Aug-08 1105.4
12-Aug-08 1088.3 Sell
13-Aug-08 1083.9
14-Aug-08 1066.3
18-Aug-08 1074.4
19-Aug-08 1063.15
20-Aug-08 1035.7
21-Aug-08 1010.3
22-Aug-08 1019.2
25-Aug-08 1014.55
26-Aug-08 1015.9
27-Aug-08 1006.65
28-Aug-08 999.25 Buy
29-Aug-08 1023.25
1-Sep-08 1031.15 Buy
2-Sep-08 1102.45
4-Sep-08 1068.35
5-Sep-08 1071.95
8-Sep-08 1099.7
9-Sep-08 1102.4 Sell 9.36%
55
10-Sep-08 1077.95
11-Sep-08 1035.9
12-Sep-08 1023.4
15-Sep-08 961.35 Sell -7.26%
16-Sep-08 952.5
17-Sep-08 978.75 Buy
18-Sep-08 1001.75
19-Sep-08 1071.25
22-Sep-08 1059.7 Sell 7.64%
23-Sep-08 1054.9 Buy
24-Sep-08 1061.8
25-Sep-08 1071.05 Sell
26-Sep-08 1035.4
29-Sep-08 1021.55 Buy
30-Sep-08 1034.2
1-Oct-08 1040.75 Sell -1.35%
3-Oct-08 1020.05
6-Oct-08 981.3
7-Oct-08 987.4
8-Oct-08 963.5
10-Oct-08 916.3
13-Oct-08 917
14-Oct-08 881.55
15-Oct-08 838.7
17-Oct-08 776.1
20-Oct-08 779.45
21-Oct-08 789.45
22-Oct-08 761.2
23-Oct-08 776.35
24-Oct-08 658
27-Oct-08 611.8
28-Oct-08 644.25 Buy
29-Oct-08 648.35
31-Oct-08 669.1
3-Nov-08 710.6 Buy
4-Nov-08 760.3
5-Nov-08 755.15
6-Nov-08 743.7
7-Nov-08 740
10-Nov-08 805.45 Sell -3.40%
11-Nov-08 735.85
12-Nov-08 711.8
14-Nov-08 693
17-Nov-08 700.45
18-Nov-08 667.6 Sell -6.44%
19-Nov-08 652.5
20-Nov-08 651.1 Buy
21-Nov-08 687.65
56
24-Nov-08 678.5
25-Nov-08 685.85
26-Nov-08 700.25 Sell 7.02%
28-Nov-08 693.8
1-Dec-08 681
2-Dec-08 661.85
3-Dec-08 651.75
4-Dec-08 674.5
5-Dec-08 655.45
10-Dec-08 677
11-Dec-08 664.95
12-Dec-08 646.35 Buy
15-Dec-08 673.85
16-Dec-08 713.35 Buy
17-Dec-08 717.6
18-Dec-08 732.4 Sell 11.74%
19-Dec-08 710.95
22-Dec-08 710.65
23-Dec-08 688.6
24-Dec-08 670.65
26-Dec-08 642.95 Sell -10.95%
29-Dec-08 656.25 Buy
30-Dec-08 671.9
31-Dec-08 667.1
1-Jan-09 684.8
2-Jan-09 680.3 Buy
5-Jan-09 725.25
6-Jan-09 718.9 Sell 8.71%
7-Jan-09 690.6
9-Jan-09 669.1
12-Jan-09 653.5 Sell -4.10%
13-Jan-09 630.6
14-Jan-09 648.6
15-Jan-09 625.35 Buy
16-Jan-09 648.7
19-Jan-09 670.25
20-Jan-09 664.15
21-Jan-09 650.05
22-Jan-09 649.5
23-Jan-09 646.5
27-Jan-09 621.15 Buy
28-Jan-09 641.25
29-Jan-09 639.1
30-Jan-09 654.95
2-Feb-09 639.5 Buy
3-Feb-09 651.4
4-Feb-09 665.5
5-Feb-09 663.6
57
6-Feb-09 683.25
9-Feb-09 724.4
10-Feb-09 717.45
11-Feb-09 706.75 Sell 11.82%
12-Feb-09 693.6
13-Feb-09 704.8
16-Feb-09 687.5
17-Feb-09 677.4
18-Feb-09 670.8 Buy
19-Feb-09 679.85
20-Feb-09 672.9
24-Feb-09 679.8
25-Feb-09 700.35
26-Feb-09 719.75 Sell 6.80%
27-Feb-09 691
2-Mar-09 664.45
3-Mar-09 648.45
4-Mar-09 663.85
5-Mar-09 650.05
6-Mar-09 673.35
9-Mar-09 666.4
12-Mar-09 682.55
13-Mar-09 706.4
16-Mar-09 715.6
17-Mar-09 715.9
18-Mar-09 723.85
19-Mar-09 731.2
20-Mar-09 755
23-Mar-09 794.2
24-Mar-09 779.2 Sell
25-Mar-09 763.7
26-Mar-09 807.6
27-Mar-09 808.25 Sell
30-Mar-09 782.45
31-Mar-09 780.2
RELIANCE
Signal Signal P&L P&L(RSI)
Date Close Price (MACD) (RSI) (MACD) (%) (%)
1-Apr-08 2345.25 Buy
2-Apr-08 2343.55
3-Apr-08 2396.05
4-Apr-08 2321.15
7-Apr-08 2404.9
8-Apr-08 2381.75
9-Apr-08 2418.25
10-Apr-08 2468.65
11-Apr-08 2551.55
15-Apr-08 2611.8
58
16-Apr-08 2642.5
17-Apr-08 2640.05
21-Apr-08 2643.6 sell
22-Apr-08 2607.35
23-Apr-08 2577.6
24-Apr-08 2582.65
25-Apr-08 2624.5
28-Apr-08 2591.4
29-Apr-08 2659.95 Sell
30-Apr-08 2614.5
2-May-08 2674.75
5-May-08 2669.2
6-May-08 2650
7-May-08 2688.95
8-May-08 2667.25 Sell 12.07
9-May-08 2528.4
12-May-08 2553.85
13-May-08 2501.1
14-May-08 2530.75 Buy
15-May-08 2622.95
16-May-08 2635.7 Sell 3.98
20-May-08 2602.95
21-May-08 2667.7 Sell
22-May-08 2626.05
23-May-08 2556.2
26-May-08 2515.6
27-May-08 2495.1 Buy
28-May-08 2522.5
29-May-08 2462.7
30-May-08 2403.5
2-Jun-08 2358.8 Buy
3-Jun-08 2406.65
4-Jun-08 2307 Sell -2.245
5-Jun-08 2246.8
6-Jun-08 2238.5
9-Jun-08 2162.7
10-Jun-08 2197.75 Buy
11-Jun-08 2261.4
12-Jun-08 2277.3
13-Jun-08 2270.4
16-Jun-08 2282.35
17-Jun-08 2332.9 Sell -0.58
18-Jun-08 2287.1
19-Jun-08 2248.15
20-Jun-08 2099.2
23-Jun-08 2025.7
24-Jun-08 2062.7 Buy
25-Jun-08 2136
59
26-Jun-08 2239.55 Sell 7.90

27-Jun-08 2182.65
30-Jun-08 2095.15
1-Jul-08 2044.15 Buy
2-Jul-08 2144
3-Jul-08 2070.1
4-Jul-08 2097.9
7-Jul-08 2028.2
8-Jul-08 1979.45
9-Jul-08 2079.15
10-Jul-08 2046.65
11-Jul-08 2016.1
14-Jul-08 2043.45 Sell -0.03%
15-Jul-08 1977.4
16-Jul-08 1943.5 Buy
17-Jul-08 2018.55
18-Jul-08 2113.2 Buy
21-Jul-08 2152.85
22-Jul-08 2152.15
23-Jul-08 2267.3
24-Jul-08 2308.05 Sell 15.79
25-Jul-08 2147.1
28-Jul-08 2179.9
29-Jul-08 2083.1
30-Jul-08 2165.5
31-Jul-08 2207.5
1-Aug-08 2297.6 Sell 8.03%
4-Aug-08 2242.4
5-Aug-08 2276.05
6-Aug-08 2298.6
7-Aug-08 2272.6
8-Aug-08 2251.8
11-Aug-08 2325.25 Buy
12-Aug-08 2347.25 Sell
13-Aug-08 2336.85
14-Aug-08 2276.7 Sell -2.13
18-Aug-08 2224.8
19-Aug-08 2219.6 Buy
20-Aug-08 2246.35
21-Aug-08 2212.65
22-Aug-08 2244.8
25-Aug-08 2232
26-Aug-08 2179.35
27-Aug-08 2148
28-Aug-08 2070.85
29-Aug-08 2136.2 Buy
1-Sep-08 2141.65
2-Sep-08 2212.75
60
4-Sep-08 2152.25
5-Sep-08 2080.9
8-Sep-08 2133.2
9-Sep-08 2142.55
10-Sep-08 2082.65
11-Sep-08 1997.4
12-Sep-08 1932.65
15-Sep-08 1886.95
16-Sep-08 1928.05
17-Sep-08 1876.65 Buy
18-Sep-08 1938.25
19-Sep-08 2055.1
22-Sep-08 2039.1 Sell -1.88
23-Sep-08 2006.45
24-Sep-08 2046.1
25-Sep-08 2025.7
26-Sep-08 1963.2
29-Sep-08 1932.85 Buy
30-Sep-08 1949.35
1-Oct-08 1906.7
3-Oct-08 1761.45
6-Oct-08 1641.6
7-Oct-08 1674.65
8-Oct-08 1648.55
10-Oct-08 1527.6
13-Oct-08 1571.4 Buy
14-Oct-08 1621.05
15-Oct-08 1520.2
16-Oct-08 1391.95
17-Oct-08 1306.05
20-Oct-08 1320.9 Buy
21-Oct-08 1394.95
22-Oct-08 1316.8
23-Oct-08 1217.65
24-Oct-08 1019.5
27-Oct-08 1077 Buy
28-Oct-08 1153
29-Oct-08 1201.75
31-Oct-08 1375.45 Sell -7.28
3-Nov-08 1441.7
4-Nov-08 1451.6 Sell
5-Nov-08 1269.05
6-Nov-08 1170.55
7-Nov-08 1220.75 Buy
10-Nov-08 1303.1
11-Nov-08 1207.7
12-Nov-08 1162.2
14-Nov-08 1146.75
61
17-Nov-08 1141.4
18-Nov-08 1139.95
19-Nov-08 1132.45
20-Nov-08 1056.05
21-Nov-08 1124.35
24-Nov-08 1144.8 Buy
25-Nov-08 1071.8
26-Nov-08 1138.9
28-Nov-08 1134.45
1-Dec-08 1109.4
2-Dec-08 1073.95
3-Dec-08 1069.1
4-Dec-08 1159.1 Buy
5-Dec-08 1117.6
8-Dec-08 1118.55
10-Dec-08 1227.2
11-Dec-08 1259
12-Dec-08 1307.1
15-Dec-08 1340.55
16-Dec-08 1388.5
17-Dec-08 1351.4 Sell 12.48
18-Dec-08 1361
19-Dec-08 1351.3
22-Dec-08 1285.55
23-Dec-08 1259.75
24-Dec-08 1242
26-Dec-08 1210.15 Buy
29-Dec-08 1246.3
30-Dec-08 1250.5
31-Dec-08 1232.75
1-Jan-09 1254.65 Buy
2-Jan-09 1286.4
5-Jan-09 1365.85
6-Jan-09 1370.9 Sell 11.73
7-Jan-09 1200.75
9-Jan-09 1153.25 Sell -4.65
12-Jan-09 1097.9
13-Jan-09 1077.55 Buy
14-Jan-09 1179.75
15-Jan-09 1142.35
16-Jan-09 1217.35
19-Jan-09 1229.9 Sell 12.39
20-Jan-09 1183.65
21-Jan-09 1119.85 Buy
22-Jan-09 1136.3
23-Jan-09 1156.15
27-Jan-09 1225.95
28-Jan-09 1274
62
29-Jan-09 1270.1
30-Jan-09 1323.6 Buy Sell 15.39
2-Feb-09 1280
3-Feb-09 1306.2
4-Feb-09 1307.5
5-Feb-09 1288.8
6-Feb-09 1344.85
9-Feb-09 1389.7
10-Feb-09 1401.95
11-Feb-09 1381.25 Sell
12-Feb-09 1351.55
13-Feb-09 1392.4
16-Feb-09 1320.2
17-Feb-09 1267.3 Buy
18-Feb-09 1295.15
19-Feb-09 1293.75
20-Feb-09 1253.4 Sell -5.60
24-Feb-09 1253.25 Buy
25-Feb-09 1266.55
26-Feb-09 1290.8
27-Feb-09 1266.05
2-Mar-09 1225.65
3-Mar-09 1196.85
4-Mar-09 1211.1
5-Mar-09 1149.8
6-Mar-09 1169.9
9-Mar-09 1153.35 Buy
12-Mar-09 1202 Buy
13-Mar-09 1284.25
16-Mar-09 1327.6
17-Mar-09 1300.2 Sell 5.81
18-Mar-09 1331.4
19-Mar-09 1345.7
20-Mar-09 1339.2
23-Mar-09 1438.45
24-Mar-09 1452.45
25-Mar-09 1532.2
26-Mar-09 1565.5
27-Mar-09 1548.75 Sell
30-Mar-09 1516.45
31-Mar-09 1524.75
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Trading Through Technical Analysis

TRADING THROUGH TECHNICAL ANALYSIS

SOUTH GUJARAT SHARES & SHAREBROKERS LTD.

MR. NIRAV MAJMUDAR

SRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT

AND COMPUTER APPLICATION

My thanks goes to Veer Narmad South Gujarat University

I would like to thanks Mr. Nirav Majmudar, permanent faculty

The project would have been possible throughout the

Finally, I would like to thank to all these people who are

I, Narendra N. Patel., here by declare that the project report

India's economy is on the fulcrum of an ever increasing growth

The economy has been growing at around 9 percent in the past

Investment in the equity market is very risky compare to the

The study of the stock market has become divided in to two

I have chosen the technical analysis for the purpose of analyzing

From my research, I found that it is really a nice approach to

The selection of the company:-

Here companies have been selected on the basis of market

From my research of historical data which yields profit and losses

So these analysis and interpretation of the data has been done

This is to certify that the Summer Project report

Nirav Majmudar Dr. Bankim

FACULTY GUIDE DIRECTOR

SR. TRADING THROUGH TECHNICAL PAGE

05 FINDINGS & CONCLUSIONS

INTRODUCTION ABOUT SGSSL

The emphasis in SGSSL is the ‘Client’. We are committed to

What is Technical Analysis?

1. The Market Discount Everything

2. Price Moves in Trends

3. History Tends to Repeat Itself

How is Technical Analysis done?

b) Charts & Patterns—

Reversal Patterns: - Continuation Patterns: -

Who uses Technical Analysis?

Investors for their short-term trading decisions use Technical

2) Short term investors:

given term. In such a situation it is recommended by analyst to buy at

Is Technical Analysis Helpful?

NSE 10 Jul 11:04

Here in my project I have used descriptive research design. This

1)Moving Average Convergence Divergence - MACD

Explanation of Moving Average Convergence Divergence -

2. Divergence - When the security price diverges from the MACD. It

because this signals the position of the short-term average relative to

2)Relative Strength Index - RSI

RSI= 100- 100

Explanation of Relative Strength Index – RSI

Signal Generating Procedure

and is rising, a buying opportunity is indicated. When it has crossed 70

HOW BUY AND SELL SIGNALS WILL GENERATE THE

RELIANCE INDUSTRIES LTD.

Signal P&L P&L

Technical analysis has been done on the basis of this strategy

Reliance Active Trading Passive Trading

ONGC: Active Trading Passive Trading

Number of times loss 5 1 6 0 0