Praedico Global Research Pvt. Ltd.

Report on

‘Technical Analysis of 10 stocks’

SUBMITTED BY:

Sweta Bhutra (PGFB2053)

Jaipuria Institute of Management, Jaipur

Acknowledgement
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At the very beginning of this report, I might want to broaden our genuine and sincere
commitment towards all the personages who have helped in this undertaking. Without their
dynamic direction, collaboration, and consolation, I would not have made progress in the
task.

I am inexpressibly obliged to Mr. Sunny Ralli, Mr. Priyank Gupta, and Ms. Purnima Gupta,
for upright direction and support to finish this report.

Any exclusion in this short affirmation does not mean an absence of appreciation.

Thank You.

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 Table of Contents

S. no. Title Page no.

1. Technical Analysis and the Indicators 4

2. Key to make the decision 7

3. Analysis of 10 Stocks 9

4. References 22

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 Technical Analysis

Technical analysis is a trading discipline employed to evaluate investments and identify

trading opportunities by analyzing statistical trends gathered from trading activity, such as
price movement and volume. It tells when to buy a stock.

PSAR:

The parabolic SAR indicator, developed by J. Wells Wilder, is used by traders to determine
trend direction and potential reversals in price. The indicator uses a trailing stop and reverse
method called “SAR,” or stop and reverse, to identify suitable exit and entry points. Traders
also refer to the indicator as to the parabolic stop and reverse parabolic SAR or PSAR. The
parabolic SAR indicator appears on a chart as a series of dots, either above or below an
asset’s price, depending on the direction the price is moving. A dot is placed below the price
when it is trending upward, and above the price when it is trending downward.

ADX:

The average directional index (ADX) is used to determine when the price is trending
strongly. In many cases, it is the ultimate trend indicator.

ADX is used to quantify trend strength. ADX calculations are based on a moving average of
price range expansion over a given period. The default setting is 14 bars, although other
periods can be used. ADX can be used on any trading vehicle such as stocks, mutual funds,
exchange-traded funds and futures. ADX is plotted as a single line with values ranging from a
low of zero to a high of 100. ADX is non-directional; it registers trend strength whether the
price is trending up or down. The indicator is usually plotted in the same window as the two
directional movement indicator (DMI) lines, from which ADX is derived.

RSI:

The relative strength index (RSI) is a momentum indicator used in technical analysis that
measures the magnitude of recent price changes to evaluate overbought or oversold
conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line
graph that moves between two extremes) and can have a reading from 0 to 100. Traditional
interpretation and usage of the RSI are that values of 70 or above indicate that a security is

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becoming overbought or overvalued and may be primed for a trend reversal or corrective
pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued
condition.

MACD:

Moving average convergence divergence (MACD) is a trend-following momentum indicator

that shows the relationship between two moving averages of a security’s price. The MACD is
calculated by subtracting the 26-period exponential moving average (EMA) from the 12-
period EMA. The result of that calculation is the MACD line. A nine-day EMA of the
MACD called the “signal line,” is then plotted on top of the MACD line, which can function
as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses
above its signal line and sell—or short—the security when the MACD crosses below the
signal line. Moving average convergence divergence (MACD) indicators can be interpreted
in several ways, but the more common methods are crossovers, divergences, and rapid
rises/falls.

CCI Oscillator:

The Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine
when an investment vehicle is reaching a condition of being overbought or oversold.
Developed by Donald Lambert, this technical indicator assesses price trend direction and
strength, allowing traders to determine if they want to enter or exit a trade, refrain from
taking a trade, or add to an existing position. In this way, the indicator can be used to provide
trade signals when it acts in a certain way.

William %R:

Williams %R, also known as the Williams Percent Range, is a type of momentum indicator
that moves between 0 and -100 and measures overbought and oversold levels. The Williams
%R may be used to find entry and exit points in the market. The indicator is very similar to
the Stochastic oscillator and is used in the same way. It was developed by Larry Williams and
it compares a stock’s closing price to the high-low range over a specific period, typically 14
days or periods.

Bollinger Band ®:

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A Bollinger Band® is a technical analysis tool defined by a set of trendlines plotted two
standard deviations (positively and negatively) away from a simple moving average (SMA)
of a security’s price, but which can be adjusted to user preferences. Bollinger Bands® was
developed and copyrighted by famous technical trader John Bollinger, designed to discover
opportunities that give investors a higher probability of properly identifying when an asset is
oversold or overbought.

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 Key to Make the Decisions

PSAR:

1. If the stock price is lesser than the PSAR value, then it is downtrend which suggests a
selling signal
2. If the price of the stock is higher than the PSAR value, then it is an upward trend
which suggests that there is a buying signal.

ADX:

If the value is lesser than 25, then there is no trend, therefore, neutral.

If the value is greater than 25, therefore there is a trend that leads to the two options:

1. PlusDi is higher than MinusDi: buying signal.

2. MinusDi is higher than PlusDi: selling signal.

If there is a big jump in the PlusDi or MinusDi, then there is a trend even if the ADX is lower
than 25, and the trend will be based upon the above two options.

RSI:

There are three conditions in this indicator:

a. Neutral: 25-75
b. Overbought: 75-100
c. Oversell: 0-25

If the value is between:

1. 20-30: buying signal

2. 70-80: selling signal
3. Other value: neutral

MACD:

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There are two cases in this indicator:

1. Red Line (MACD) crosses Blue Line (MACD Signal): buying signal
2. Blue Line (MACD Signal) crosses Red Line (MACD): selling signal

CCI Oscillator:

There are three cases:

1. The value between -100 to 100: neutral

2. Above 100: selling signal
3. Below -100: buying signal

William %R:

There are three cases:

1. The value between -20 to -80: neutral

2. The value between -20 to 0: selling signal
3. The value between -80 to -100: buying signal

Bollinger Band:

There are three cases:

1. Price touches upper band: selling signal

2. Price touches lower band: buying signal
3. Prices between lower and upper bands: neutral

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 Analysis of 10 Stocks

1. Titan Company Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger Band

Oscillator %R
1748.94 34.50 67.46 Red Line (MACD): 61.19 -20.37 Between the Upper
PlusDi: 56.10 and middle band
28.74 Blue Line (MACD with a downward
MinusDi: Signal): movement
13.72 53.79

18th June 2021

PSAR ADX RSI MACD CCI Willia Bollinger

Oscillator m %R Band
1747.04 33.88 67.49 Red Line (MACD): 52.15 -20.32 Between the Upper and
PlusDi: 53.43 middle band with a
26.58 Blue Line (MACD downward movement
MinusDi Signal): 53.72
: 15.66

Decision Table:

Indicator Signal Final Decision

PSAR Sell
ADX Buy
RSI Neutral
MACD Buy Buy
CCI Oscillator Neutral
William %R Neutral
Bollinger Band Neutral

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2. Bajaj Finserve Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger Band

Oscillator %R
11490.85 33.47 57.14 Red Line (MACD): 34.44 -50.09 Between the Upper
PlusDi: 230.00 and middle band
24.01 Blue Line (MACD with a downward
MinusDi: Signal): movement
14.27 282.66

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
11505.20 33.39 60.98 Red Line (MACD): 228.43 82.27 -26.84 Between the
PlusDi: Blue Line (MACD Signal): Upper and
25.61 271.82 middle band
MinusDi: with a
13.06084 downward
movement

Decision Table:

Indicator Signal Final Decision

PSAR Buy
ADX Buy
RSI Neutral
MACD Sell Buy
CCI Oscillator Neutral
William %R Neutral
Bollinger Band Neutral

3. Marico Ltd.

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17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
480.68 44.35 75.15 Red Line (MACD): 14.21 160.12 -7.27 Price touching
PlusDi: Blue Line (MACD Signal): upper band
32.95 12.92
MinusDi:
7.8

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
485.64 45.72 76.15 Red Line (MACD): 15.14 164.23 -7.36 Price touching
PlusDi: Blue Line (MACD Signal): upper band
31.59 13.36
MinusDi:
7.05

Decision Table:

Indicator Signal Final Decision

PSAR Buy
ADX Buy
RSI Sell
MACD Buy Sell
CCI Oscillator Sell
William %R Sell
Bollinger Band Sell

4. Tata Motors Ltd.

17th June 2021

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 PSAR ADX RSI MACD CCI William Bollinger
Oscillator %R Band
334.75 33.56 60.42 Red Line (MACD): 10.58 64.77 -31.03 Between the
PlusDi: Blue Line (MACD Signal): Upper and
29.53 9.54 middle band
MinusDi: with a
13.51 downward
movement

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
360.75 32.09 53.77 Red Line (MACD): 9.35 18.24 -51.71 Between the
PlusDi: Blue Line (MACD Signal): Upper and
26.26 9.50 middle band
MinusDi: with a
20.21 downward
movement

Decision Table:

Indicator Signal Final Decision

PSAR Buy
ADX Buy
RSI Neutral
MACD Sell Buy
CCI Oscillator Neutral
William %R Neutral
Bollinger Band Neutral

5. Tech Mahindra Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band

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 1093.0 31.87 71.98 Red Line (MACD): 23.16 104.30 -12.87 Between the
PlusDi: Blue Line (MACD Signal): Upper and
26.45 19.14 middle band
MinusDi: with an upward
8.75 movement

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
1092.24 33.40 66.44 Red Line (MACD): 22.76 89.32 -22.52 Between the
PlusDi: Blue Line (MACD Signal): Upper and
25.62 19.87 middle band
MinusDi: with an upward
7.80 movement

Decision Table:

Indicator Signal Final Decision

PSAR Sell
ADX Buy
RSI Neutral
MACD Buy Buy
CCI Oscillator Neutral
William %R Neutral
Bollinger Band Neutral

6. HDFC Life Insurance Co. Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
676.30 22.80 64.77 Red Line (MACD): 5.08 125.14 -8.57 Price touching
PlusDi: Blue Line (MACD Signal): upper band
23.39 2.36
MinusDi:

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 14.21

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
679.61 23.19 68.93 Red Line (MACD): 6.56 163.24 -3.74 Price touching
PlusDi: Blue Line (MACD Signal): upper band
25.39 3.20
MinusDi:
14.21

Decision Table:

Indicator Signal Final Decision

PSAR Buy
ADX Neutral
RSI Neutral
MACD Buy Sell
CCI Oscillator Sell
William %R Sell
Bollinger Band Sell

7. Power Grip Corporation of India Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
251.50 34.08 58.23 Red Line (MACD): 5.70 56.63 -41.98 Between the
PlusDi: Blue Line (MACD Signal): Upper and
26.67 5.01 middle band
MinusDi: with an upward
19.24 movement

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18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
251.20 31.68 49.81 Red Line (MACD): 4.78 13.81 -67.02 Between the
PlusDi: Blue Line (MACD Signal): Upper and
22.74 4.96 middle band
MinusDi: with an upward
22.98 movement

Decision Table:

Indicator Signal Final Decision

PSAR Sell
ADX Neutral
RSI Neutral
MACD Sell Sell
CCI Oscillator Neutral
William %R Neutral
Bollinger Band Neutral

8. Oberoi Realty Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
681 29.47 56.26 Red Line (MACD): 21.38 25.45 -48.82 Between the
PlusDi: Blue Line (MACD Signal): Upper and
24.51 22.25 middle band
MinusDi: with a
18.40 downward
movement

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

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 Oscillator %R Band
679.86 27.46 50.46 Red Line (MACD): 17.90 -10.66 -72.12 Between the
PlusDi: Blue Line (MACD Signal): Upper and
22.26 21.38 middle band
MinusDi: with a
21.67 downward
movement

Decision Table:

Indicator Signal Final Decision

PSAR Sell
ADX Buy
RSI Neutral
MACD Sell Neutral
CCI Oscillator Buy
William %R Neutral
Bollinger Band Neutral

9. Tata Steel Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
1186.80 20.06 49.29 Red Line (MACD): 21.02 -37.14 -81.98 Between the
PlusDi: Blue Line (MACD Signal): lower and
24.66 26.25 middle band
MinusDi: with a
25.45 downward
movement

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
1184.97 19 47.29 Red Line (MACD): 16.39 -129.87 -69.20 Between the
PlusDi: Blue Line (MACD Signal): lower and
22.08 24.28 middle band

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 MinusDi: with a
30.75 downward
movement

Decision Table:

Indicator Signal Final Decision

PSAR Sell
ADX Sell
RSI Neutral
MACD Sell Sell
CCI Oscillator Buy
William %R Neutral
Bollinger Band Neutral

10. Avenue Supermart Ltd.

17th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
3119.60 40.96 65.89 Red Line (MACD): 89.20 104.05 -29.94 Between the
PlusDi: Blue Line (MACD Signal): lower and
29.92 76.95 middle band
MinusDi: with a
9.42 downward
movement

18th June 2021

PSAR ADX RSI MACD CCI William Bollinger

Oscillator %R Band
3130.69 42.20 67.95 Red Line (MACD): 90.36 116.09 -21.63 Between the
PlusDi: Blue Line (MACD Signal): lower and
32.8 79.95 middle band
MinusDi: with a
8.51 downward
movement

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Decision Table:

Indicator Signal Final Decision

PSAR Buy
ADX Buy
RSI Neutral
MACD Buy Buy
CCI Oscillator Sell
William %R Neutral
Bollinger Band Neutral

References

1. https://www.traderscockpit.com/
2. https://www.investopedia.com/

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