Nilay Shah

1720521
SAPM CIA 3.1
Technical Analysis for 2 companies

Method 1: Japanese Candlestick Method

 Doji: This is a candlestick formed when the opening and closing prices are the same, or
very close to each other. The shadows may have different lengths.
 Gravestone Doji: This pattern resembles a gravestone, hence the name. It is formed when
the open and the close occur at the low of the period.
 Dragonfly Doji: This pattern is formed when the opening and the closing prices of a
security are at the high of the period. It includes a long lower shadow and signals a reversal
of an uptrend.
 Bearish Engulfing Pattern: This pattern indicates bears in control of the market. It
consists of a large body that completely engulfs the body of the previous candlestick. It is
a “down” candlestick, one where the closing price is below the opening price. When it
appears, it signals a bearish reversal.
 Bullish Engulfing Pattern: The pattern is often formed at the end of a downtrend. It is
comprised of a smaller down candlestick whose body is engulfed by a larger up
candlestick.
 Hammer: The Hammer pattern includes a long tail on its lower end and a near-negligible
upper shadow. It is typically a signal of a market reversal, either bullish or bearish.

Method 2: Relative Strength Index

The relative strength index (RSI) is a momentum indicator 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. The indicator was originally developed by J.
Welles Wilder Jr. and introduced in his seminal 1978 book, New Concepts in Technical
Trading Systems.

Traditional interpretation and usage of the RSI are that values of 70 or above indicate that
a security is 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.
1. HDFC AMC:
1 month price data:
Turnover
Date Symbol Series Open High Low LTP Close Volume
(in Lakhs)
13-Sep-2019 HDFCAMC EQ 2,680.00 2,684.85 2,642.80 2666.00 2,665.20 1,55,249 4,132.67
12-Sep-2019 HDFCAMC EQ 2,664.30 2,698.00 2,624.90 2661.00 2,664.35 2,59,810 6,920.68
11-Sep-2019 HDFCAMC EQ 2,671.45 2,689.00 2,652.00 2660.75 2,657.75 3,16,636 8,436.15
09-Sep-2019 HDFCAMC EQ 2,621.00 2,652.10 2,607.35 2642.00 2,646.70 3,36,111 8,870.61
06-Sep-2019 HDFCAMC EQ 2,625.00 2,643.85 2,596.10 2607.00 2,611.25 2,51,312 6,572.96
05-Sep-2019 HDFCAMC EQ 2,595.00 2,657.60 2,583.00 2605.50 2,604.60 10,11,761 26,394.33
04-Sep-2019 HDFCAMC EQ 2,640.00 2,643.00 2,560.10 2590.00 2,573.95 7,34,568 19,019.85
03-Sep-2019 HDFCAMC EQ 2,575.00 2,699.00 2,563.10 2645.05 2,652.30 15,97,494 42,389.39
30-Aug-2019 HDFCAMC EQ 2,440.65 2,593.90 2,440.65 2586.00 2,552.20 8,77,722 22,041.19
29-Aug-2019 HDFCAMC EQ 2,400.00 2,454.00 2,370.00 2429.50 2,432.50 3,94,498 9,589.38
28-Aug-2019 HDFCAMC EQ 2,408.00 2,478.80 2,364.00 2400.30 2,400.15 8,40,356 20,310.23
27-Aug-2019 HDFCAMC EQ 2,270.00 2,422.00 2,265.00 2392.85 2,411.55 10,27,978 24,473.49
26-Aug-2019 HDFCAMC EQ 2,238.00 2,252.00 2,189.60 2245.00 2,243.10 2,59,574 5,776.26
23-Aug-2019 HDFCAMC EQ 2,125.30 2,187.85 2,075.10 2174.60 2,175.70 3,70,875 7,886.28
22-Aug-2019 HDFCAMC EQ 2,199.00 2,199.60 2,125.90 2138.00 2,138.20 2,32,733 5,003.80
21-Aug-2019 HDFCAMC EQ 2,275.65 2,279.20 2,193.80 2197.00 2,200.75 2,93,265 6,570.02
20-Aug-2019 HDFCAMC EQ 2,316.40 2,316.40 2,262.00 2274.00 2,271.80 1,65,890 3,783.53
19-Aug-2019 HDFCAMC EQ 2,275.90 2,334.90 2,274.45 2287.00 2,295.30 3,45,188 7,963.58
16-Aug-2019 HDFCAMC EQ 2,200.30 2,269.00 2,191.10 2266.90 2,261.80 2,66,030 5,956.53
14-Aug-2019 HDFCAMC EQ 2,229.00 2,249.95 2,183.40 2200.30 2,200.50 2,55,437 5,661.47

RSI: The monthly data is not available as the company requires a minimum of 15 trading
months for the same. The RSI (Weekly) is available on the BSE website.
Theoretically, the RSI is on the 70-30 basis. The RSI line for HDFC AMC is within those
limits. At a very recent stage (16 Aug ’19), the shares of HDFC AMC were overbought and
hence the share price turned bearish. It significantly fell and later recovered due to its strong
financial performance. RSI value above 70 indicates that the value of the share is more than
what it should be and hence it is suggested to sell at that stage and vice-versa.

Japanese candlestick:

As mentioned in the introduction, Doji is seen on the last candlestick where there is no
difference between the opening and the closing price. There is no sign of bullish or bearish
engulfment in the last month. Dragonfly Doji and Gravestone Doji are visible once each in this
chart. The company is doing extremely well.
This chart was available on the MoneyControl website.
2. Reliance Nippon Life Asset Management
1 month price data:
Turnover
Date Symbol Series Open High Low LTP Close Volume
(in Lakhs)
13-Sep-2019 RNAM EQ 262.00 264.40 260.10 261.90 262.25 15,32,019 4,026.02
12-Sep-2019 RNAM EQ 264.40 267.40 260.70 261.50 261.90 82,05,430 21,731.10
11-Sep-2019 RNAM EQ 276.00 285.45 273.35 274.40 277.30 53,12,943 14,839.53
09-Sep-2019 RNAM EQ 285.20 289.00 280.00 284.95 286.10 5,69,589 1,623.11
06-Sep-2019 RNAM EQ 279.50 286.00 275.00 283.65 282.85 4,98,657 1,392.55
05-Sep-2019 RNAM EQ 279.45 284.30 276.35 277.60 277.85 2,80,877 785.13
04-Sep-2019 RNAM EQ 282.95 288.55 271.20 277.00 276.55 7,57,707 2,117.68
03-Sep-2019 RNAM EQ 272.90 287.80 271.45 280.10 283.00 10,93,747 3,091.51
30-Aug-2019 RNAM EQ 271.90 277.70 268.30 275.00 272.90 5,62,233 1,537.41
29-Aug-2019 RNAM EQ 276.90 284.00 267.15 271.50 271.00 6,65,321 1,819.30
28-Aug-2019 RNAM EQ 257.50 280.95 257.00 277.50 276.90 23,09,444 6,272.30
27-Aug-2019 RNAM EQ 255.80 258.80 253.00 257.30 257.00 17,02,241 4,370.69
26-Aug-2019 RNAM EQ 249.90 253.00 243.75 253.00 251.10 5,35,794 1,338.95
23-Aug-2019 RNAM EQ 240.00 247.00 235.55 246.80 244.90 1,33,724 324.12
22-Aug-2019 RNAM EQ 231.00 244.75 231.00 239.40 239.50 3,09,115 738.75
21-Aug-2019 RNAM EQ 250.10 252.35 231.60 232.75 232.95 3,73,134 894.88
20-Aug-2019 RNAM EQ 251.95 256.35 249.85 252.85 252.50 1,59,826 404.76
19-Aug-2019 RNAM EQ 257.50 258.80 253.60 254.15 254.65 4,74,085 1,220.83
16-Aug-2019 RNAM EQ 243.90 257.90 241.00 256.00 254.85 6,20,546 1,575.65
14-Aug-2019 RNAM EQ 249.70 254.70 240.00 241.00 241.15 1,62,703 399.13
RSI:

The RSI line of this company has never reached the overbought stage (exceeded 70). It had
once gone below 30 and that’s when it turned bullish. RSI value below 30 indicates that the
value of the share is less than what it should be and hence it is suggested to buy at that stage
and vice-versa.
This chart was available on the BSE website.

Japanese Candlestick:
As mentioned in the introduction, Doji is seen on the last candlestick where there is no or
negligible difference between the opening and the closing price. There is no evident sign of
bullish or bearish engulfment in the last month. Dragonfly Doji and Gravestone Doji are also
not to be seen. The mainstream candlesticks which show the open, close, high and low are
significantly visible. The company is stable and shows sign of growth..
This chart was available on the MoneyControl website.