GNVS Institute of Management

GTB Nagar, Sion- Koliwada (E), Mumbai-37

University of Mumbai
GNVS Institute of Management
GTB Nagar, Sion- Koliwada (E), Mumbai-37

Summer Internship Project Report

MMS 2021-2023

Submitted in Partial Fulfillment of

Masters in Management Studies
Specialization: Finance

TOPIC: A STUDY OF TECHNICAL ANALYSIS ON BANK NIFTY

Submitted by:
Priti Rameshwarprasad Gupta

Roll no.: 2021030

Under the Guidance of

Dr. Hitesh G. Suthar

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 Declaration

I hereby declare that the Summer Internship Report submitted for the MMS Degree programme
at GNVS Institute of Management (Affiliated to University of Mumbai) is my original work
and is conducted in (Company Name: Aditya Birla Capital).

Place: Mumbai ( Priti Rameshwarprasad Gupta )

Date: Signature of the Student

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 Certificate

This is to certify that the Summer Internship Report is the bonafide internship work, carried
out by Mr./Ms. Priti Rameshwarprasad Gupta, student of MMS programme, at GNVS Institute
of Management (Affiliated to University of Mumbai) during the period of 2021 to 2022, in
partial fulfilment of the requirements for the award of the Degree of Master in Management
Studies.

Place: Mumbai

Signature of Student

Date:

Signature of Internal Guide Signature of External Examiner

College Seal Signature of Director

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 Acknowledgements

I wish to express my gratitude to Subhajit Sengupta from the (company name: Aditya Birla
Capital) for providing me valuable information and guidance.

I am grateful to GNVS Institute of Management for giving me an opportunity to pursue MMS

programme. I wish to thank Dr. R. K. Saily, Director, GNVS Institute of Management who has
been a perpetual source of inspiration and offered valuable suggestions.

I am indebted to my Guide (Professor; Dr. Hitesh G. Suthar), GNVS Institute of Management,

for providing guidance, support, and encouragement throughout my internship study.

I would like to express my thanks to all people from the (company name: Aditya Birla Capital)
for their support and guidance from time to time during my internship programme.

Place: Mumbai
Date:

Signature of the student

Priti Rameshwarprasad Gupta

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v
 TABLE OF CONTENT

PAGE
PARTICULARS
SR NO. NO.
1 Front Page i
2 Declaration ii
3 Certificate iii
4 Acknowledgements iv
5 Chapter 1 : Introduction
1.1 Introduction of Bank Nifty 1-3
1.2 Technical Analysis 4
1.3 Assumption of Technical Analysis 5
1.4 Importance of Technical Analysis 6
1.5 Weakness of Technical Analysis 7
1.6 Objective of the Study 8
1.7 Scope of the Study 8
1.8 Limitation of the Study 8
1.8 Research Methadology 9
6 Chapter 2 : Review of Literature 10-12
7 Chapter 3 : Tools used in Technical Analysis
3.1 Trends 13-14
3.2 Trend length 15
3.3 Volume 16
3.4 Price Action 17
3.5 Charts and its Type 17-18
3.6 Support and Resistance 19
3.7 Japanese Candlesticks 20-34
3.8 Advance Chart Pattern 34-40
3.9 Technical Indicator 40-42
8 Chapter 4 : Data Analysis and Interpretation 43-58
9 Case Study 59-61
10 Chapter 5 : Finding and Suggestion 62-63
11 Chapter 6 : Conclusion 64
12 Reference 65

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 CHAPTER 1
INTRODUCTION

1.1 WHAT IS BANK NIFTY?

•Bank Nifty is an industry index focused exclusively on bank equities, including private banks
and PSU banks.

• It is also one of the most actively traded indexes in the futures and options segments and can
be used for F & O trading on NSEs.

• Bank Nifty is calculated using the free float method, which weights stocks based on free float
market capitalization. Bank Nifty was introduced on September 15, 2003, but uses January 1,
2000 as the base year, with a reference value of 1000. This means that if the current Bank Nifty
value is around 30,000, it will show 30 times the wealth accumulation. The last 19 years.

• The index is readjusted semi-annually and Bank Nifty values are available in real time during
trading hours.

• This is the first index available for weekly options trading and currently has more trading
volume than Nifty.

• As a sector index, Bank Nifty represents only the bank sector. Includes private banks and
PSU banks.

• Bank Nifty represents the 12 most liquid large-capitalization stocks in the banking sector
traded on NSE. It provides investors and market intermediaries with a benchmark to understand
the performance of the capital markets of the Indian banking sector.

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1.1.1 BANK NIFTY WEIGHTAGE STOCK LIST 2022:

Below is a list of companies included in the Bank Nifty Weightage Stocks List issued by NSE
India based on the May 2022 closing price.

Bank Nifty Index Weightage Companies List 2022

SR. NO BANKS WEIGHTAGE

1 HDFC Bank 27.58%

2 ICICI Bank 23.72%
3 Kotak Mahindra Bank 12.30%
4 State Bank of India (SBI) 10.81%
5 Axis Bank 10.69%
6 IndusInd Bank 5.40%
7 AU Small Finance Bank Ltd 2.46%
8 Bandhan Bank 1.97%
9 Bank of Baroda (BANKBARODA 1.66%
10 Federal Bank 1.58%
11 IDFC First Bank Ltd. 1.01%
12 Punjab National Bank (PNB) 0.83%

1.1.2 ROLE OF BANKS IN ECONOMIC DEVELOPMENT:

The banking system plays an important role in the modern economic world. Banks collect the
savings of the individuals and lend them out to business- people and manufacturers. Bank loans
facilitate commerce. Manufacturers borrow from banks the money needed for the purchase of
raw materials and to meet other requirements such as working capital. It is safe to keep money
in banks. Interest is also earned thereby. Thus, the desire to save is stimu-lated and the volume
of savings increases. The savings can be utilised to produce new capital assets.

Banks play a very important and dynamic role in the economic development of every nation.
A study of the economic history of western country shows that without the evolution of
commercial banks in the 18th and 19th centuries, the industrial revolution would not have taken
place in Europe. The economic importance of commercial banks to the developing countries
can be categorized into:

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 • Promoting capital formation
• Encouraging innovation
• Monetization
• Influence economic activity
• Facilitator of monetary policy

1.1.3 IMPACT OF RBI POLICY ON BANK NIFTY & BANK SECTOR.

RBI Policy Generally, the RBI Governor will post a policy to the NSE at 2:30 pm on business
days. Policy changes will have a significant impact on bank stocks and will make the Bank
Nifty index very volatile. Within a few minutes, 500 points will go up and down. A Daytime
Tips is the best stock tips provider and provides you with over 90% accurate and reliable bank
nifty tips. RBI policy has a significant impact on free stock pick trading. Market trends often
change when the RBI governor announces RBI policy. The market also fluctuates based on
expectations of changes that may occur after a policy announcement. RBI uses the following
tools: Changes made after the announcement of banking, automotive and real estate guidelines.

1.1.4 WHY IS THE PERFORMANCE OF BANK NIFTY SO CRUCIAL:

Bank Nifty consists of 12 shares. Bank Nifty accounts for about 26% of Nifty. By sector. Bank
Nifty has the highest weight of any Nifty. To be able to trade with Nifty requires a very good
knowledge of Bank Nifty. Bank Nifty is often considered a driver for Nifty.

Therefore, if Bank Nifty is performing poorly, expect Nifty not to hit the new highs. If Bank
Nifty outperforms Nifty, expect Nifty to outperform other markets. Bank Nifty operates in the
financial services sector and is Nifty's engine. If the financial sector of the economy is not
performing well, no other sector can be expected to perform well. Therefore, Bank Nifty's stock
price also plays an important role in Nifty.

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1.2 TECHNICAL ANALYSIS

Technical analysis is the study of how past and present price fluctuations in a particular
financial market can help determine its future direction. However, at the same time, technical
analysis should not be considered a crystal ball. Rather, the skills of technical analysts are
primarily used to determine the most likely response to past and present price fluctuations, as
well as future price fluctuations. Therefore, technical analysis is not really about predicting the
future, but about finding potential opportunities to trade financial markets.

Technical analysis is a broad collection of methods and strategies that attempt to predict
future prices based on past prices or other observable market statistics such as volume and open
interest. Different analysts / traders may use different types of charts at different times, such
as: Line charts, bar charts, candlestick charts, scatter charts, or many other types of charts.

Technical analysis plots stock information such as price, volume, and open interest on
a chart and applies different patterns and indicators to assess future price fluctuations. The time
frame to which the technical analysis applies ranges from daily (1 minute, 5 minutes, 10
minutes, 15 minutes, 30 minutes, or hourly), daily, weekly, or monthly price data to the year.

Technical analysis actually looks at the supply and demand of the market to determine
which direction or trend will continue. In other words, technical analysis seeks to understand
market sentiment by looking at the market itself, not its components. Understanding the
advantages and limitations of technical analysis will give you a variety of new tools and skills
to become better traders and investors.

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1.3 ASSUMPTION OF TECHNICAL ANALYSIS:

1. The Market Discounts Everything:

The main criticism of technical analysis is that it only considers price behaviour and ignores
the basic elements of the company. However, technical analysis assumes that the stock price at
any given time reflects everything that has or may have affected the company, including the
underlying factors. Technical analysts believe that in addition to broader economic factors and
market sentiment, all of the company's fundamentals are priced in equities, so these factors do
not need to be considered individually. It leaves only an analysis of price behaviour that
technical theory considers to be the product of supply and demand for a particular stock in the
market.

2. Price moves in Trends:

Technical analysis assumes that price fluctuations follow the trend. This means that once a
trend is established, future price fluctuations will be in the same direction rather than against
the trend. Most of the technical trading strategies are based on this assumption only.

3. History tends to repeat itself:

Another important idea in technical analysis is that the history tends to be repeated, mainly
related to price fluctuations. The repetitive nature of price behaviour is due to market
psychology. In other words, market participants tend to respond consistently to similar market
stimuli over time. Technical analysis uses chat patterns to analyze market movements and
understand trends. Many of these charts have been in use for over 100 years, but are still
considered relevant because they show patterns of frequent price fluctuations.

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1.4 IMPORTANCE OF TECHNICAL ANALYSIS:

1. Not just stocks

Technical analysis has universal applicability. It can be applied to any finance Financial
Instruments-Stocks, Futures and Commodities, Bonds, Forex, etc.

2. Focus on price

Price fluctuations follow basic development. Just focus on it Price action, Engineers are
looking to the future. Price patterns are considered a key indicator and It usually leads the
economy for 6-9 months. It makes sense to see to follow the market Directly to price
fluctuations. In most cases, change is a subtle beast. nevertheless Markets tend to react
suddenly and unexpectedly, and clues are usually developed before they become important.
Movement. Accumulation time should be used as an indicator of future accumulation Advance
and distribution period as an indicator of imminent decline.

3. Supply, demand, and price action

Technicians analyze price actions using highs, lows and closes share. You can only perform a
good analysis if you have all of the above information. Apart from this, these will not be able
to say much. But taken together, open, high, low It closely reflects the power of supply and
demand.

4. Pictorial Price History:

Price charts provide the most valuable information that makes past amounts easier to read
Charts are much easier to read than tables when it comes to securities price movements over a
period of time. Numbers. Easy to identify.

-Past and present volatility

-Past trading volume or trading volume

-Relative strength of stocks compared to index

5. Assist with Entry Points:

Helps track the appropriate entry point. Basically used to decide what to buy & Technical
analysis is used for purchase. Timing plays a very important role in this context. In
performance. Helps identify levels of demand (support) and supply (resistance) levels as well
as breakout.
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1.5 WEAKNESSES OF TECHNICAL ANALYSIS:

1. Analyst Bias

Technical analysis is not a hardcore science. It's subjective in nature and your personal Bias
can be reflected in the analysis. It is important to be aware of these biases. Chart analysis. If
the analyst is persistently bullish, the bullish bias obscures it analysis. On the other hand, if the
analyst is an angry bear, the analysis is There may be a bearish bias.

2. Open for explanation

Technical analysis is a combination of science and art and is always expanding interpretation.
Although there are standards, it is often the case that two technicians check same chart and plot
two different scenarios or see different patterns. Both are possible find reasonable support and
resistance levels as well as key breakouts to justify Position. The cup is half empty or half full?
It is in the eyes of the handler.

3. Too late

You can blame technical analysis for being too late. When the trend is identified, significant
movement has taken place. After such an important move, the reward for the risk ratio is not
great. The delay is a particular criticism of the Dow theory.

4. Always another level

Technical analysts are still waiting for a new level. Even after a new trend has determined,
there is always another “critical” level at hand. The technicians were charged sit on the fence
and never take an unqualified position. Even if they are raising prices, there are is always an
indicator or a level that will qualify their opinion.

5. Trader’s remorse

A variety of patterns and indicators appear when studying technical analysis. Not all active
signals. Example: A sell signal is given when the neckline of the head and shoulders broken
model. Although this is a rule, it is not immutable and may follow other rules factors such as
mass and momentum. In the same vein, what works for an individual shares may not work for
one another. The 50-day moving average can be very helpful in determining support and
resistance for any Stocks, but 70-day moving average could work better for Addiction.
Although many principles of technical analysis are common, each security has its own style.

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1.6 OBJECTIVE OF THE STUDY:

1. To study share price movements on banking sectors.

2. To find out the upward and downward behaviour in share price movement on banking
companies.
3. To understand and identify the Overbought and Oversold price levels as derived from
using all the historical data available.
4. To maximize the gains from all shorts of trading activities, and minimize risk and losses
arising from such activities.
5. To know how charting techniques are useful to the buy or sell decision.

1.7 SCOPE OF THE STUDY:

1. The study is related to technical analysis to predict the future behaviour of the stocks.
2. The analysis has been done on 8 selected stocks of Bank Nifty.
3. The analysis involves using of limited technical stocks of Banks

1.8 LIMITATION OF THE STUDY:

1. Analysis involves the use of limited technical tools.

2. The study is restricted only to eight selected stocks of Bank Nifty.
3. We can’t predict the prices of the stocks for long term.
4. This technical analysis is not applicable to newly listed companies.

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1.9 METHODOLOGY OF STUDY:

1.9.1 Sampling design:

The samples selected are from the index of bank nifty of Eight banks.

The samples of Banks selected are:

• HDFC Bank
• ICICI Bank
• SBI Bank
• AXIS Bank
• Bandhan Bank
• Bank of Baroda
• PNB Bank

1.9.2 DATA SOURCE:

Primary data source:

Data is collected from various apps and tools.

Secondary data source:

Data collected from Websites, magazines, and newspaper.

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 CHAPTER 2

REVIEW OF LITERATURE

2.1.1 Hudson, Dempsey and Keasey (1996) investigated whether technical trading rules
predict the UK stock market. Their paper also addresses the question of whether technical
analysis can provide higher returns to investors in costly trading scenarios. The survey also
shows that the technical trading rules investigated have the potential to predict with respect to
UK data, but their use does not allow investors to obtain excessive returns in the case of high-
value transactions.

2.1.2 Wong, Manzurand Chew (2003) examined the importance of technical research in
predicting when to enter and exit the stock market. Test statistic is used to evaluate the
performance of the most well-known pattern follower, the moving average, and the most
widely used reverse trend predictor, the Relative Strength Index. Results based on Singapore
data show that indicators can be used to generate significant positive returns. It was concluded
that SES members are making great profits by applying technical analysis.

2.1.3 ChongandNg (2008) used two oscillators, the Moving Average Convergence Divergence
(MACD) and the Relative Strength Index (RSI), to determine if they were beneficial.
According to 60 years of data from the London Stock Exchange FT30 Index, the RSI and
MACD rules produce better returns than the buy-and-hold approach in most situations.

2.1.4 (Sudheer, 2012) states in his study that technical analysis is a study that predicts future
security prices. The main goal of technical analysis is to generate returns by allowing people
to decide when and when to enter the securities. The bottom line is that you have to struggle to
buy (slump) and sell at high prices in order to make big returns and profits.

2.1.5 (Varathan N & Tamilenthi, 2012) concluded that the technical analysis of securities is
a survey of historical price and volume trends to assess the direction of future price volatility
in scrips. The purpose is to create price direction and size forecasts, where a large profit from
a relatively small number of correct forecasts is sufficient to offset many small losses from a
false forecast, and proper risk management. And to bring positive long-term returns through
cash management tool.

2.1.6 (Dr. Pallavi, 2000) states in her research that Indian banking can be divided into different
categories such as government, private banking and professional banking. In India, the Reserve
Bank of India is the governing body for all Indian banks. Since 1969, public sector banks have

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covered decades to establish the Indian banking sector because of the demand for customer
value and customer base.

2.1.7 (Chitra, 2011) is a stock market study of factors that influence the supply and demand
of stocks, understanding whether stocks are undervalued or overvalued, and determining the
intrinsic value of stocks. Her study states that it helps to do. Equity market indicators help
investors identify key market turning points.

2.1.8 (Venkatesh & Tyagi, 2011) found in a survey that the results of a September-November
2010 survey on the use of technical analysis by brokers / fund managers in the Indian stock
market formed a forecast of stock price movements. Did. According to the survey, more than
85% of respondents rely on both fundamental and technical analysis to predict future price
movements over different time periods.

2.1.9 (Hemalatha, 2013) conducted a survey to analyze and understand Canara Bank's capital
adequacy ratio. This survey is entirely based on company reports and secondary data collected
from websites. Today, Canara Bank holds a leading position in the Indian banking industry.
The purpose of the study is to analyze stock price fluctuations, compare stock price fluctuations
to the market, and discover future trends.

2.1.10 (Chirag V. Jiyani 2015) concludes in his article that private sector banking has
experienced significant growth and excellent financial services. Deposits, down payments,
gross income, and total private bank spending increased during the survey period. The study
also shows that private banks' overall financial performance improved over the period.

2.1.11 R. Krishnan and Vinod Mishra (2012) wrote in this article, entitled "Japan-China
Liquidity Patterns of the Indian Stock Market," using one-year intraday data from the Indian
National Stock Exchange (NSE), Examine liquidity patterns to identify commonalities between
liquidity indicators. Researchers have found that most volume and spread-related liquidity
indicators show a U-shaped pattern during the day.

2.1.12 Chalothon Chootong and Ohm Solnil (2012) wrote in this article, "Bollinger Bands
Using a Combination of Trading Signal Generation, Chart Patterns and Indicator Means,"
Trading Incl. Price action patterns, candlestick chart patterns, moving averages, index
fluctuations. Introduction of trading tactics that combine indicators. On-balance volume,
Relative strength index, Moving average, Convergence, Divergence, Stochastic oscillator. The
purpose is to improve the return on investment.

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2.1.13 Acheme David Ijegwa, Vincent Olufunke Rebecca, Folorunso Olusegun and
Olusola Olasunkanmi Isaac (2014) in this paper titled “A Predictive Stock Market Technical
Analysis Using Fuzzy Logic” researcher studies four indicators used in technical analysis.
Indicators are Moving Averages Convergence/Divergence (MACD), Relative Strength Index
(RSI), Stochastic Oscillator (SO) and On-Balance Volume (OBV). The fuzzy rules are a
combination of the trading rules for each of the indicators used as input variables of the fuzzy
system and for all four technical indicators used. The result is recommendation to buy, sell or
hold for that data is collected Nigerian Stock Exchange

2.1.14 Mrs. J. Nithya and Dr. G. Thamizhchelvan (2014) examined “Effectiveness of

Technical Analysis in Banking Sector of Equity Market” researcher undertaking CNX Nifty
stock for technical analysis. To find out correct stock for investment Candlestick charts and
MACD, RSI indicator is used. By using RSI investor enhance their gain if RSI increase and
share price also increase this indicates that strong sell indication and if decreasing share price
and decreasing RSI which indicates strong buy indication for investor. These indicators can
play valuable role in the timing the stock market entry and exit

2.1.15 Bhamini Garg (2014) in this Research article titled “Technical Analysis Indicators:
pathway towards Rewording Journey” researcher has endeavored to give an insight into
Technical Analysis Indicators as to how investor can attempt to improve the success rate of
increasing the profitability by taking right entry and exit positions into the stock market.
Technical analysis does not offer us with definite answers but it improves trading capabilities
to almost 80% that means 8 out of 10 trades will be successful. Researcher provides an analysis
of various indicators namely moving Averages, Relative Strength Index, Average Directional
Index, Moving Averages Convergence Divergence, and Money Flow Index along with their
application on the stock charts of the selected companies, NSE Nifty and Bank Nifty in order
to get clearer image.

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 CHAPTER 3

TOOL USED IN TECHNICAL ANALYSIS

3.1 TREND:

Trends are one of the main technical tools used in technical analysis. On the financial side, a
trend is the general direction in which a security or market is moving. On any chart, we can see
that prices tend to move in a series of highs and lows rather than moving linearly in any
direction over a long period of time. In technical analysis, these highs and lows form the trend.
Trend analysis is very useful because it benefits investors to move along the trend rather than
against it. Therefore, it is very important to understand and recognize trends so that you can act
rather than go against them. Two important maxims in technical analysis are: Trends are your
friends "and don't go against trends.

3.1.1 TYPES OF TREND

UPTREND

In the uptrend, both the high (high) and low (low) of the stock chart rise in sequence. As a
result, stock prices hit new highs every day and are lower than before. Please do not make any
mistakes. This does not have to be the height of a lifetime. It can also be the highest inventories
contacted in the last few days, weeks, or months. This steady rise in highs and lows shows that
the market has positive sentiment. Stock prices are expected to rise rather than fall. As a result,
more investors are buying and pushing up prices. Similarly, every time a stock goes down,
investors see the opportunity to buy more. They don't wait for it to fall to the previous level.
Before that, I will buy the stock. It stops falling.

Figure 3.1

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DOWNTREND

A downtrend is a pattern in which stock prices are constantly declining. Not only are the
mountains lower, but the valleys are also lower. This means that market investors are confident
that stocks will continue to fall. A slight rise in stock prices is used by investors to sell existing
stocks. No further purchases will be made at these levels. Such stocks should not be bought,
no matter how low their prices are, especially if you are a short-term investor. Long-term
investors may want to wait for stock prices to fall further.

Figure 3.2

SIDEWAYS TREND:

In a Sideways trend, stocks do not move significantly in any direction over a long period of
time. The highs and lows are constant and there is no important decision as to whether to buy
the stock.

Figure 3.3

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3.2 3- TREND LENGTH:

Charles Dow has developed a set of principles for understanding and analyzing market
behavior. This later became known as the Dow theory, which is the basis of the study of
technical analysis. Charles Dow believed that prices were moving with waves and trends. He
believed it was like the ebb and flow of the tide, where the waves climbed the beach with each
ebb tide and flow, the waves got smaller and the stock prices went up. Conversely, as the tide
peaks and goes further down the beach until the tide disappears, so does the stock price. This
may seem like a simple concept, but it is part of the foundation of modern research on stock
price trends.

Trend length:

• Primary – Long term (ie, over a year): Flood of Dow's statement

• Secondary – Intermediate (ie 1-3 months): Waves

• Minor – Short term (ie less than a month): Wave

Figure 3.4

THE TIME SCALE:

The time scale refers to the date range at the bottom of the graph and can vary from decades to
seconds. The most commonly used timescales are daytime, daily, weekly, monthly, quarterly,
and yearly. The shorter the time frame, the more detailed the chart. Each data point can
represent the closing price of a period or, depending on the chart used, open, high, low, and
close prices.

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THE PRICE SCALE:

The price scale is on the right side of the chart. View the current price of the stock and compare
it to historical data points. This may seem like a simple concept, as increasing the scale from
the bottom changes the price scale from low to high. Note that the data used to create the graph
is the same, but the data is plotted and displayed on the graph differently.

3.3 WHAT IS VOLUME?

Volume is simply the number of shares or contracts that trade over a given period of time.
usually a day. The higher the volume, the more active the security. To determine the movement
of the volume (up or down), chartists look at the volume bars that can usually be found at the
bottom of any chart. Volume bars illustrate how many shares have traded per period and show
trends in the same way that prices do.

Figure 3.5

1. Volumes are used to confirm a trend

2. 100 shares buy and 100 shares sell makes the total volume 100, not 200

3. The end of day volumes indicates the cumulative volume across trades executed throughout
the day

4. High volumes indicates the presence of smart money

5. Low volumes indicate retail participation

6. When you initiate a trade to either go long or short always make sure if volumes confirm

7. Avoid trading on low volume days

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3.4 PRICE ACTION BY USING TECHNICAL Analysis

In simple terms, price action is a trading technique that allows a trader to read the market and
make subjective trading decisions based on the recent and actual price movements, rather than
relying solely on technical indicators.

Market opened at 9:15 AM and closed at 15:30 PM during which there were many trades. It
will be practically impossible to track all these different price points. In fact, what one needs
is a summary of the trading action and not really the details on all the different price points.

By tracking the Open, high, low and close we can draw a summary of the price action.

The open- When the markets open for trading, the first price at which a trade executes is called
the opening Price.

The high- This represents the highest price at which the market participants were willing to
transact for the given day.

The Low-This represents the lowest level at which the market participants were willing to
transact for the given day.

The close - The Close price is the most important price because it is the final price at which the
market closed for a particular period of time. The close serves as an indicator for the intraday
strength. If the close is higher than the open, then it is considered a positive day else negative.
Of course we will deal with this in a greater detail as we progress through the module.

The closing price also shows the market sentiment and serves as a reference point for the next
day's trading. For these reasons, closing price is more important than the Open, High or Low
prices.

3.5 CHART AND ITS TYPE:

Charts are a basic tool and an important component for performing technical analysis, and in
fact, without charts, there is no technical analysis. In jargon, a chart refers to a graphic
representation of a range of prices over a period of time, and in general, a chart refers to a price
chart.

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3.5.1 WHAT IS LINE CHART:

A line chart is a graphical representation of the past price action of an asset, connecting a series
of data points with a solid line. This is the most basic type of chart used in finance and usually
only shows the closing price of a security over time. Line charts can be used in any time frame,
but in most cases you will use daily price changes.

Figure 3.6

3.5.2 WHAT IS BAR CHART:

A bar chart consists of multiple price bars, each bar showing how the price of an asset or
security has fluctuated over a period of time. Each bar normally displays open, high, low and
close prices (OHLC), but this can be customized to display only high, low and close prices
(HLC).

Figure 3.7

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 3.6 Support and resistance

Support and resistance levels are important points in time where the forces of supply and
demand meet. These support and resistance levels are seen by technical analysts as crucial
when determining market psychology and supply and demand. When these support or
resistance levels are broken, the supply and demand forces that created these levels are assumed
to have moved, in which case new levels of support and resistance will likely be established.

Support
Support is the level at which demand is strong enough to stop the stock from falling any
further. In the image above you can see that each time the price reaches the support level, it
has difficulty penetrating that level. The rationale is that as the price drops and approaches
support, buyers (demand) become more inclined to buy and sellers (supply) become less
willing to sell.
Resistance
Resistance is the level at which supply is strong enough to stop the stock from moving
higher. In the image above you can see that each time the price reaches the resistance level, it
has a hard time moving higher. The rationale is that as the price rises and approaches
resistance, sellers (supply) become more inclined to sell and buyers (demand) become less
willing to buy.

Figure 3.8

19
3.7 WHAT IS JAPANESE CANDLESTICK:

The Japanese candlestick is a kind of price chart showing the opening, closing, high and low
prices of any period. It was invented centuries ago by Japanese American merchants and
became popular among Western merchants in the 1990s by a broker named Steve Nison.

Today, Japanese candlestick charts are the most common way to quickly analyze price
behavior, especially among technical traders. It provides much more information visually than
traditional line charts and shows at a glance the highs, lows, open and close prices of the market.
High-Low-Open-Close (HLOC) charts show the same level of detail as candlesticks, but
traders tend to prefer candlesticks because they are easier to analyze faster than HLOCs. It's
worth trying both to see what works best for you. Technical traders not only use them to track
past price behavior, but also look for Japanese candlestick patterns to get clues as to where the
market is heading next. They do this by looking for recognizable forms that often lead to
continuations or reversals. Candlesticks can be used to study price behavior over any period
from 1 second to 1 year.

HOW TO READ JAPANESE CANDLE STICK PATTERN:

To read Japanese candlestick patterns, you need to be familiar with the three elements of each
candle's color, body and core. Its color indicates the direction of movement during the period,
its body indicates the open and closed levels of the market, and its core indicates the high / low
range.

• On most charts today, green candlesticks show upward movement and red candlesticks show
downward movement. However, white (top) and black (bottom) may be used instead.

• For green candles, the top of the body is closed and the bottom is open. In the case of red,
the opposite is true.

• For both red and green sticks, the top of the core (sometimes called the shadow) is the highest
point the market has reached during that period, and the bottom is the lowest.

20
 Figure 3.9

With these three factors, you can learn a lot about market movements over a period of time.
For example, a green candlestick with a long leg indicates that there was a significant bullish
price volatility. If the core is even higher than the long body, it indicates that there was high
volatility during that period. Therefore, the bull and the bear may have been fighting for control,
and in the end the bull won. On the other hand, a short red body with a high upper wick indicates
that the bull pushed up the market price but was rebounded by the bear before the closing
price. And if there is no core at all, you can see that the open or closed was also high / low.
Some patterns have been adopted by technical traders as indicators of potential future
movements. The theory here is simple. These patterns reveal specific behaviors that often lead
to specific results in the past. There are three types of candlestick patterns: single, double, and
triple. It is based on the number of sticks that make up the pattern.

Past performance does not guarantee future price fluctuations, but these patterns can help you
find opportunities. Let's see at some famous examples.

21
TOP 18 JAPANESE CANDLESTICK PATTERNS

CANDLE SENTIMENT TYPE

Spinning Top Neutral Single

Green Morubozu Bullish Single
Red Morubozu Bearish Single
Doji Neutral Single
Hammer Bullish Single
Inverted Hammer Bullish Single
Hanging man Bearish Single
Shooting star Bearish Single
Engulfing Either Double
Harami Either Double
Harami cross Either Double
Homing piegion Bullish Double
Tweezers Either Double
Morining star Bullish Triple
Evening star Bearish Triple
Three white shoulder Bullish Triple
Three black crows Bearish Triple
Three inside up Bullish Triple
Three inside down Bearish Triple
Rising three Bullish Triple
Falling three Bearish Triple

Table 1.1

22
SINGLE CANDLESTICK PATTERN:

These are some of the simplest patterns you can find and include only one trading period. Often,
they form a component of a longer pattern.

1. SPINNING TOP:

The Spinning top is formed when the candlestick has long cores on both the top and bottom
of the narrow body. As a result, the market was wide-ranging, but there was little difference
between open and closed.

Figure 3.10

Unlike most candlestick patterns, it doesn't matter if the top is made of red or green sticks-it
should have a small body and a long core.

A tug of war occurs between the buyer and the seller at the roundabout. However, bears and
bulls cancel each other out, so there is little to get in the way of actual movement.

Technical traders rotate the spinning top as an indicator of the weakness of the ongoing trend.
When the market reaches the top after a long bull run, positive emotions can diminish. On the
other hand, bullish sentiment may increase after a downtrend.

2. MARUBOZU:

Marubozu means "baldness" in Japanese. This means a candlestick with no core at all.

• The green Marubozu opens and closes at the lowest and highest levels, respectively.

• The red Marubozu opened and closed at the highest and lowest levels, respectively.

Visualizing the movement within the green Marubuzuo, there are no price actions above or
below the opening and closing prices.

23
 Figure 3.11

As you can see, this clearly shows a bullish feeling on the bare green bar. The Bulls raised
market prices without resistance from bears. If this happens as part of an uptrend, technical
traders consider it a sign that the uptrend will continue. If this happens after a downtrend, the
trend reversal may be imminent.

Figure 3.12

On the other hand, the red Marubozu is the exact opposite. They tell you that the bear had a
session that was almost completely under control-so it is possible that the downtrend will
continue or the uptrend will reverse.

3. DOJI

In the Doji pattern, the opening and closing prices are exactly the same (or almost the same).
Therefore, the body appears as a very thin line-usually less than 5% of the full range of the
period.

Like Spinning top, this can tell you that the bull and bear canceled each other at the end of the
session. There are four main types of doji to watch out for.

• Long-legged doji has long cores on both the top and bottom of the body

• Gravestone Doji has a high core above the body and nothing below

• Dragonfly Doji has a long core under the body and little or no core above.

• There is no Wick in the four price doji

24
 Figure 3.13

The same thing is often seen as a sign of an imminent trend reversal. If the market is formed
after an expanding uptrend, it may be about to retreat. After the fall, selling sentiment may run
out. This means that the Bulls are on the verge of acquisition.

4. HAMMER

When the market forms a hammer after a sharp fall, technical traders believe it is on the verge
of a bullish rebound.

The hammer is recognizable by the long wick underneath the relatively short body, with little
or no wick above it. The body should be 2-3 times shorter than the bottom core.

Figure 3.14

This indicates that the market hit a new low during the session, but recovered and closed at a
much higher price. So there was a lot of selling pressure, but the buyer intervened to push the
bear back before the closing price.

The bearish sentiment is fading, but that doesn't necessarily mean that a reversal is imminent.
Therefore, most technical traders wait for confirmation before opening a position with a
hammer. There is usually a strong move during the next period.

25
 5. INVERTED HAMMER

An inverted hammer looks just like a hammer, just upside down. Therefore, there is a relatively
short body under the high upper wick and there is little reach.

Figure 3.15

They also appear after the downtrend and are considered signals that may indicate an imminent
reversal of the trend. However, the price action inside the inverted hammer is a little different.

The core above shows that the buyer dominated the market during the session, but encountered
resistance from the seller. However, sellers are unable to lower prices further, and bearish
sentiment may be diminishing.

As with a hammer, it's best to wait for confirmation before opening a buy position-usually in
the form of a bullish candle shortly after.

6. HANGING MAN

The Hanged Man looks like a hammer, but the only difference is where it appears. Hammers
appear after the bear market, but hung guys do so after the uptrend. They are seen as a sign of
growing selling sentiment towards the buyer, and therefore a reversal is imminent.

The price behavior among the hanging people is as follows.

Figure 3.16

26
The seller dominated the market, but faced severe resistance. However, this resistance could
only control the price and did not continue the bull run. Therefore, ones mood can change
quickly.

People with red hanging are usually considered to be stronger signals than people with green,
but both are considered to be bearish patterns.

7. SHOOTING STAR

On the other hand, the shooting star is a double inverted hammer. But like a hanging person,
shooting stars appear at the top of the uptrend, not at the bottom of the downtrend.

Figure 3.17

The shooting star begins the session while the bull is still in control. However, the bear takes
over and lowers the price of the asset.

• With a green shooting star, they pulled it back just above the opening

• With a red shooting star, they pulled it down outdoors

Both indicate that a trend reversal may be imminent. But like hammers, inverted hammers,
and hanging people, it's often a good idea to wait for signs of a new bear market before acting.

DOUBLE CANDLESTICK PATTERN

When a signal is formed in two consecutive periods, it is known as a double candlestick pattern.
These often indicate a reversal of future trends, but they can also be used to identify
continuations.

8. ENGULFING

In the Engulfing pattern, one candlestick is immediately followed by another large candlestick
in the opposite direction.

27
 Figure 3.18

In a bullish swallow, the red candle is hidden by the green candle that follows. Technical
traders can see this as a sign that bullish sentiment is taking hold, which can be a significant
rise, especially if bullish involvement occurs after the integration period.

Bear Engulfing occurs when a bullish stick is swallowed by the next bearish stick. This is the
way to form a negative opinion.

9. HARAMI

Harami is essentially a pattern that involves the rear. One candle is followed by a much smaller
candle in the opposite direction.

The name Harami comes from the Japanese pregnancy because some people believe that the
pattern resembles that of a pregnant person.

In bullish skirt steak, a red candle is followed by a green candle that is completely contained
in the body of the previous candle. This is often seen as a sign that the downtrend is about to
end.

28
 Figure 3.19

In bearish Harami, the opposite happens. A green candlestick is followed by a small red
candlestick. In both cases, the size of the second stick is used to determine the strength of the
signal. The smaller it is, the better.

Figure 3.20

If Harami is followed by the same thing (the smallest possible candle body), talk about
Harami's cross.

10. HOMING PIGEON:

The bullish homing pigeon, on the other hand, resembles Harami, except that both candlesticks
are red. The body of the second candle is completely contained in the body of the first candle.
This is seen as a sign that an uptrend may begin.

Traders looking for homing pigeons are on the lookout for a downtrend that is weakening or
approaching important support points. Homing pigeons are considered to be of little use in very
unstable situations.

29
 11. TWEEZERS

The tweezers pattern is when two identical candlesticks appear in opposite directions after a
bull market or a bear market. Tweezers are considered a sign of an imminent turn.

The first candle in tweezers corresponds to the previous trend. Therefore, in the uptrend, it will
be green. The upper body is short and the lower part requires a long core. The downtrend is red
with a short body at the bottom and a high core at the top.

The second candle is the opposite color, but otherwise it is the same. Therefore, when you put
the two together, they look like tweezers.

Figure 3.21

THREE CANDLESTICK PATTERNS

The longest pattern covered is a triple formed over three consecutive periods. The triple
candlestick pattern is often regarded as part of the strongest signal of imminent movement.

12. Morning Star

Morningstar occurs when the market reaches a point of decision after a long period of decline
and then begins to recover. It consists of three candlesticks.

1. Red One with a large body that is part of the downtrend

2. Short candlesticks (often above) indicate that the bull is participating in the session

3. A large green stick confirming that the inversion has begun

30
 Figure 3.22

Traders can see this as a sign that recovery is turning into a sustained upward trend.

12. EVENING STAR

The evening star is the opposite of the morning star, showing how the bull market retreats after
reaching the point of indecision.

It looks like a morning star, but first with green candlesticks (after a long upward trend) and
finally with red candlesticks.

Figure 3.23

Both evening and morning stars can be formed with the same thing in the center. This indicates
a stronger period of indecision and may be seen as a sign that subsequent movements will be
more pronounced.

13. THREE WHITE SOLDIERS

The Three White Soldiers pattern appears after an expanded downtrend and minor integrations.
Technical traders use it as one of the clearest signs that the bear market is over. The three
soldiers are:

1. Green candle after moving down

2. Another green candle that is larger than the first wick and has little or no top wick

3. A third green candle whose body is at least second equal and has little or no core

31
 Figure 3.24

14. THREE BLACK CROWS:

The pattern of three black crows is the opposite of the three white soldiers. It appears after the
uptrend and consists of three consecutive long red candlesticks, which are considered a strong
signal that the bull market is over.

The second candle should have a short or non-existent lower wick, and the third candle should
have few wicks.

Technical traders can use the three black crows as an opportunity to open a short position in
an attempt to profit from the subsequent bear market.

Figure 3.25

15. THREE INSIDE UP

The three inside-up patterns appear after the downtrend and are another trend reversal indicator
that indicates the start of a potential reversal. The three candlesticks in the inside-up pattern
are:

1. Bold red that continues the previous downtrend

2. A green bar with a body that closes at least half of the previous candle-so the market has
regained half of what it lost in the previous period

3. Green candlestick that closes above the first high

32
 Figure 3.26

Buyers should have overwhelmed sellers, stopped the market from falling, and potentially
started a new uptrend.

16. THREE INSIDE DOWN

The three inside outs are inside out. It consists of a long green candlestick and a red candlestick
that closes at least half of the previous candlestick. Then another red candle that closes below
the first low.

Figure 3.27

When three-downs appear after a bull market, pattern-seeking traders may find opportunities
for profitable short positions.

17. RISING AND FALLING THREE

Rising Three (or Rising Three Methods) is a candlestick pattern that occurs within an uptrend
and is used to identify an imminent continuation.

Figure 3.28

33
All three rising sticks occur after a large body green candle. They are all usually bearish and
traded within the limits set by the previous bullish candles. Here, the upward trend continues
while the buyer waits for emotions to change.

But after the three rises, another big green bar shows that the bull market is back. The opposite
happens when three things fall. A high red candle is followed by three small green candles.
Then another tall red candle resumes running the bear.

Figure 3.29

3.7 ADVANCE CHART PATTERN

Chart patterns are an important aspect of technical analysis, but they require some
knowledge to be used effectively. A chart pattern is a shape on a price chart that suggests
what a price might do next based on what you have done in the past. Chart patterns are the
basis of technical analysis, and traders need to know exactly what they are looking at and
what they are looking for.

Types of Chart Patterns

1. Ascending Triangle

The Ascending triangle is a bullish "continuation" chart pattern, indicating that breakouts are
likely to occur where the triangle lines converge. To draw this pattern, you need to place a
horizontal line (resistance line) at the resistance point and draw an ascending line (rising trend
line) along the support point.

34
 Figure 3.30

1. Triangle

Unlike the Ascending triangle, the descending triangle represents a bearish downtrend in the
market. The support line is horizontal and the resistance line is down, indicating a possible
downside.

Figure 3.31

1. Symmetrical Triange

In a symmetric triangle, the two trend lines begin to intersect, indicating a breakout in either
direction. The support line is drawn with an uptrend and the resistance line is drawn with a
downtrend. Breakouts can go in either direction, but often follow the general trends of the
market.

35
 Figure 3.32

2. Pennant

A pennant is represented by two lines that meet at a certain point. These often occur after a
strong up or down move where the trader pauses and the price solidifies before the trend
continues in the same direction.

Figure 3.33

3. Flag

The flagstock chart pattern takes the form of a rectangle where the support and resistance lines
are parallel until a breakout occurs. Breakouts are usually in the opposite direction of the trend
line. So this is an inversion pattern.

36
 Figure 3.34

4. Wedge

The wedge pattern represents a reduction in price fluctuations between the support and
resistance lines. This is either an ascending wedge or a descending wedge. Unlike triangles,
wedges do not have horizontal trend lines and are characterized by either two uptrend lines or
two downtrend lines.

The down wedge assumes that the price breaks the resistance, and the up wedge assumes that
the price breaks the support. This means that the wedges are a reversal pattern, as breakouts
oppose the general trend.

Figure 3.35

37
 5. Double Bottom

The double bottom resembles the letter W, indicating that the price has failed twice in an
attempt to break the support level. A reversal chart pattern that emphasizes trend reversal. After
two unsuccessful interruptions in support, market prices are moving in an upward trend.

Figure 3.36

6. Double Top

Unlike the double bottom, the double top is very similar to the letter M. After failing to break
the resistance level twice, the trend enters the reversal phase. The trend then returns to the
support line and begins a downtrend that breaks the support line.

Figure 3.37

38
 7. Head and Shoulders

The head and shoulder pattern attempts to predict a trend reversal from a bull market to a bear
market. It features large spikes with two small spikes on each side, and all three levels fall back
to the same level of support. After that, the trend should occur with a downward movement.

Figure 3.38

8. Rounding Top or Bottom

A rounded bottom or cup usually shows a bullish uptrend, and a rounded top usually shows a
bearish downtrend. Traders can buy in the middle of the U-shape and if they break through the
resistance level they can benefit from the next trend.

Figure 3.39

39
 9. Cup and Handle

Cup and Handle is a well-known continuation chart pattern that shows bullish market trends.
Same as the round bottom above, but with a round bottom handle. The handle resembles a flag
or pennant, and when completed you can see a market breakout with a bullish uptrend.

Figure 3.40

3.9 WHAT IS TECHNICAL INDICATOR:

Technical indicators are mathematical patterns derived from historical data used by technical
traders or investors to anticipate future price trends and make trading decisions. Use formulas
to derive a set of data points from historical price, volume, and open interest data. Technical
indicators are usually graphed and compared to the corresponding price charts for analysis. The
mechanism of technical indicators captures investor behavior and sometimes psychology to
show future trends in price activity. Technical indicators provided by technical analysis to
predict future price fluctuations include cycle volume, momentum value, volume pattern, price
trend, Bollinger band, moving average, Elliott wave, oscillator and sentiment indicator. ..
Technical indicators not only provide valuable insights into the price structure, but also show
how potential profits can be obtained from price fluctuations.

HOW TECHNICAL INDICATOR WORK

Technical analysis is a trading area adopted to evaluate investments and identify trading
opportunities by analyzing statistical trends from trading activities such as: B. Price
fluctuations and volume. Unlike fundamental analysts who seek to assess the intrinsic value of
a security based on financial or economic data, technical analysts focus on price fluctuation

40
patterns, trading signals, and various other analytical charting tools. To determine the strengths
or weaknesses of valuing a security. Technical analysis can be used on any securities using
historical transaction data. This includes stocks, futures, commodities, bonds, currencies and
other securities. This tutorial usually analyzes stocks by example, but keep in mind that these
concepts apply to all types of security. In fact, technical analysis is much more common in the
commodity and forex markets where traders focus on short-term price fluctuations. Technical
indicators, also known as "techniques," focus on historical trading data such as price, volume,
and open interest, rather than corporate fundamentals such as revenue, sales, and profit
margins. Technical indicators are often used by active traders because they are designed to
analyze short-term price fluctuations, but long-term investors can also use technical indicators
to identify entry and exit points.

TWO FAMOUS INDICATOR:

1. RELATIVE STRENGTH INDEX

The Relative Strength Index (RSI) has at least three main uses. Indicators range from 0 to 100
and plot recent price increases and recent price declines. Therefore, the RSI level is useful for
measuring momentum and trend strength.

The most basic use of the RSI is as an indicator of overbought and oversold. If the RSI exceeds
70, the asset is considered overbought and can fall. If the RSI falls below 30, the asset will be
oversold and may recover. However, making this assumption is dangerous. As a result, some
traders either wait for the indicator to go above 70 and then go down before selling, or go below
30 and then go up again and then wait to buy.

Divergence is another use for the RSI. If the indicator moves in a direction different from the
price, it indicates that the current price trend weakens and can quickly reverse. The third use of
the RSI is at support and resistance levels. During the uptrend, stock prices often exceed 30
levels and often reach 70 or higher. When stock prices are on a downtrend, the RSI usually
stays below 70 and often reaches below 30.

41
 Figure 3.41

2. MACD

The Moving Average Convergence Divergence (MACD) indicator helps traders identify the
direction of the trend and the momentum of this trend. It also provides a variety of trading
signals. When the MACD exceeds zero, the price is on the rise. When the MACD falls below
zero, it enters the bearish phase. The indicator consists of two lines, a MACD line and a slowly
moving signal line. When the MACD crosses below the signal line, it indicates that the price
is falling. When the MACD line crosses the signal line, the price goes up.

Looking at the side of the zero where the indicator is standing will help you decide which
signal to follow. For example, if the indicator is above zero, watch the MACD cross the buy
signal line. If the MACD is less than zero, the MACDs crossing below the signal line may
provide a potential short trade signal.

Figure 3.42
42
 CHAPTER 4

DATA ANALYSIS AND INTEPRETATION OF COMPANY

4.1 HDFC BANK:

FINANCIAL STATUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

OF MONTH OF MONTH
July 2021 1502 1426.45 50
August 2021 1435 1581.4 41
September 2021 1575 1594.95 70
October 2021 1583 1582.85 54
November 2021 1585 1493.55 46
December 2021 1495 1479.4 37
January 2022 1519.65 1485.7 60
February 2022 1508.5 1426.25 48
March 2022 1386.5 1470.30 33
April 2022 1476.4 1384.6 60
May 2022 1397.10 1388.95 40
June 2022 1397.15 1340.70 57
July 2022 1343.95 - 53

Table 4.1

THE RESISTANCE AND SUPPORT

1389.42
PIVOT

First Resistance 1404.4 First support 1380.8

Second Resistance 1413.0 Second Support 1365.9
Third Resistance 1427.9 Third Support 1357.3

Table 4.2

43
HDFC BANK GRAPHICAL REPRESENTATION:

Figure 4.1

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In September the RSI value is 70 which indicate to sell.
• In March the RSI value is 33 which indicate to buy.
• Seeing above representation one can predict that HDFC Bank is following sideways
trend from last 1 year.
• It is a financial institution which provide services to company. It will devote the
economy by holding financial asset for other. It is also one of the major sectors in stock
market. The most of the investor are investing in this bank.

44
4.2 ICICI BANK

FINANCIAL STAUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 633.95 682.5 53

AUGUST 2021 684.05 719.05 66

SEPTEMBER 2021 727.6 700.85 70

OCTOBER 2021 693 802.05 41

NOVEMBER 2021 807.71 714.35 58

DECEMBER 2021 716.4 740.15 38

JANUARY 2022 743.05 788.95 48

FEBRUARY 2022 802.05 742.04 56

MARCH 2022 755.70 730.9 31

APRIL 2022 725 743.3 58

MAY 2022 732 752.85 44

JUNE 2022 748 707.2 58

JULY 2022 703.45 - 54

Table 4.3

THE RESISTANCE AND SUPPORT:

805.27

PIVOT

First Resistance 813.4 First Support 792.7

Second Resistance 826.0 Second Support 784.6

Third Resistance 834.1 45Third Support 772.0

 Table 4.4

ICICI BANK GRAPHICAL REPRESENTATION:

Figure 4.2

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In September the RSI value is 70 which indicate to sell.
• In March the RSI value is 31 which indicate to buy.
• Seeing above representation one can predict that HDFC Bank is following sideways
trend from last 1 year.
• Seeing above representation one can predict that ICICI Bank is following sideways
trend from last 1 year.

46
4.3 KOTAK MAHINDRA BANK

FINANCIAL STATUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 1742 1771.75 39

AUGUST 2021 1641.65 1776.4 38

SEPTEMBER 2021 1793 1993.5 58

OCTOBER 2021 1995 2057 63

NOVEMBER 2021 2055 1914.2 54

DECEMBER 2021 1790.20 1796.1 44

JANUARY 2022 1797 1884.2 51

FEBRUARY 2022 1882 1842.75 50

MARCH 2022 1811.8 1753.75 44

APRIL 2022 1749.3 1790.75 55

MAY 2022 1765.55 1846.85 52

JUNE 2022 1840 1661.1 53

JULY 2022 1645 - 37

Table 4.5

THE RESISTANCE AND SUPPORT:

1809.82

PIVOT

First Resistance 1834.5 First Support 1770.8

Second Resistance 1873.5 Second Support 1746.1

Third Resistance 1898.2 47 Third Support 1707.1

 Table 4.6

KOTAK MAHINDRA BANK GRAPHICAL REPRESENTATION:

Figure 4.3

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In October the RSI value is 63 which indicate to sell.
• In July the RSI value is 37 which indicate to buy.
• Seeing above representation one can predict that Kotak Mahindra Bank is following
sideways trend from last 1 year.

48
4.4 SBI BANK:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 420.3 431.8 57

AUGUST 2021 434.75 426.05 62

SEPTEMBER 2021 427.5 453 54

OCTOBER 2021 448 502.15 57

NOVEMBER 2021 508.5 465.5 68

DECEMBER 2021 464.45 460.45 42

JANUARY 2022 462 538.3 50

FEBRUARY 2022 543.95 483.2 64

MARCH 2022 478 493.55 34

APRIL 2022 491 496.3 60

MAY 2022 492.65 468.1 44

JUNE 2022 468 465.9 47

JULY 2022 463.35 - 58

Table 4.7

THE RESISTANCE AND SUPPORT:

515.32

PIVOT

First Resistance 521.32 First Support 511.6

Second Resistance 525.2 Second Support 505.5

Third Resistance 531.3 Third Support 501.8

Table 4.8

49
SBI BANK GRAPHICAL REPRESENTATION:

Figure 4.4

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In November the RSI value is 68 which indicate to sell.
• In March the RSI value is 34 which indicate to buy.
• Seeing above representation one can predict that SBI Bank is following Uptrend from
last 1 year.

50
4.5 AXIS BANK

FINANCIAL STATUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 750 708.9 54

AUGUST 2021 715 786.5 48

SEPTEMBER 2021 798 766.5 69

OCTOBER 2021 763.4 742 43

NOVEMBER 2021 755 655.65 39

DECEMBER 2021 664.9 678.55 35

JANUARY 2022 680.25 773.05 54

FEBRUARY 2022 778.1 742.4 67

MARCH 2022 728.7 761.15 46

APRIL 2022 760 728.6 62

MAY 2022 722 685.2 37

JUNE 2022 683 636.8 47

JULY 2022 633 - 45

Table 4.9

THE RESISTANCE AND SUPPORT:

729.55

PIVOT

First Resistance 736.6 First Support 720.3

Second Resistance 745.9 Second Support 712.3

Table 4.10
Third Resistance 752.9 Third Support 704

51
AXIS BANK GRAPHICAL REPRESENTATION:

Figure 4.5

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In September the RSI value is 69 which indicate to sell.
• In December the RSI value is 35 which indicate to buy.
• Seeing above representation one can predict that Axis Bank is following sideways trend
from last 1 year.

4.6 BANDHAN BANK

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FINANCIAL STATUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 332.4 291.25 50

AUGUST 2021 294.9 285 42

SEPTEMBER 2021 286 283 45

OCTOBER 2021 281.8 291.45 53

NOVEMBER 2021 279 272.45 40

DECEMBER 2021 277.25 252.7 39

JANUARY 2022 252.7 315.55 40

FEBRUARY 2022 318.85 306.3 68

MARCH 2022 300.6 307.4 42

APRIL 2022 305.85 334.4 64

MAY 2022 330 325.95 62

JUNE 2022 326 263.5 57

JULY 2022 262.5 - 31

Table 4.11

THE RESISTANCE AND SUPPORT:

276.27

PIVOT

First Resistance 283.9 First Support 266.2

Second Resistance 294.0 Second Support 258.6

Table 4.12
Third Resistance 301.6 Third Support 248.5

53
BANDHAN BANK GRAPHICAL REPRESENTATION:

Figure 4.6

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In February 2022 the RSI value is 68 which indicate to sell.
• In July 2022 the RSI value is 31 which indicate to buy.
• Seeing above representation one can predict that Bandhan Bank is following sideways
trend from last 1 year.

4.7 BANK OF BARODA

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FINANCIAL STATUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 86.35 80.3 60

AUGUST 2021 80.95 77.35 47

SEPTEMBER 2021 115.20 81.75 50

OCTOBER 2021 81.45 97.5 58

NOVEMBER 2021 98.4 85.75 70

DECEMBER 2021 86.6 81.95 40

JANUARY 2022 81.6 107.55 46

FEBRUARY 2022 108.6 106.55 75

MARCH 2022 105.95 111.6 48

APRIL 2022 111.6 112.9 65

MAY 2022 111.4 100.25 45

JUNE 2022 101 97.4 52

JULY 2022 97.6 - 44

Table 4.13

THE RESISTANCE AND SUPPORT:

115.38

PIVOT

First Resistance 116.5 First Support 114.1

Second Resistance 117.8 Second Support 112.9

Table 4.14
Third Resistance 119.0 Third Support 111.6

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BANK OF BARODRA GRAPHICAL REPRESENTATION:

Figure 4.7

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In February 2022 the RSI value is 75 which indicate to sell.
• In December 2021 the RSI value is 40 which indicate to buy.
• Seeing above representation one can predict that Bank of barodra is following Uptrend
from last 1 year.

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 4.8 PUNJAB NATIONAL BANK

FINANCIAL STATUS OF THE COMPANY:

DATE OPENING PRICE CLOSING PRICE RSI

JULY 2021 42.4 39.5 55

AUGUST 2021 39.75 36.65 50

SEPTEMBER 2021 36.6 40.1 48

OCTOBER 2021 39.95 42.1 65

NOVEMBER 2021 42.55 37.3 50

DECEMBER 2021 37.4 37.3 40

JANUARY 2022 37.3 41.55 50

FEBRUARY 2022 41.8 34.9 60

MARCH 2022 34.4 35.05 40

APRIL 2022 35.1 35.1 52

MAY 2022 34.9 31.35 41

JUNE 2022 31.55 29 46

JULY 2022 29.05 - 43

Table 4.15

THE RESISTANCE AND SUPPORT:

31.58

PIVOT

First Resistance 31.5 First Support 31.4

Second Resistance 32.0 Second Support 31.1

Third Resistance 32.3 Third Support

57 30.9
 Table 4.16

PNB BANK GRAPHICAL REPRESENTATION:

Figure 4.8

ANALYSIS AND INTEPRETATION:

• Opening and closing price is based on monthly start opening and monthly end closing
price.
• In RSI research have board rule that if RSI is below 30 to buy and if RSI is above 70 to
sell the securities
• In October the RSI value is 65 which indicate to sell.
• In November 2021 and in January 2022 the RSI value is 40 which indicate to buy.
• Seeing above representation one can predict that PNB Bank is following Downtrend
from last 1 year.

58
THE CORONAVIRUS IMPACT ON THE STOCK MARKET- CASE STUDY

The effects of the virus were first felt in India in late February. On February 28, the Indian
stock market experienced a major plunge. Over 5,000,000 rupees of investor assets have been
wiped out in fear of the coronavirus. India's index fell 3.5%. This was the second biggest drop
in Sensex history. The Indian stock market regained its losses on March 2, but the recent
coronavirus case in India caused the market to fall again. On March 9, 2020, Sensex crashed
over 1900 points in one day. It is ranked as the most important daily dip since August 2015.
Stock markets have historically tended to be uncertain, and this is one such case. However,
there are good reasons for concerns about the Indian stock market, and one such concern is
China's role in the supply-demand chain in both India and the world.

NIFTY BANK- 9 YEAR OF OUTPERFORMANCE WIPED IN 4 MONTHS DUE TO

PANDEMIC:

For almost a decade, banks, especially private sector lenders, have been the best stocks for
investors and fund managers to outperform the benchmark index and generate alpha returns in
their portfolios. The Covid-19 pandemic has ended as the long-standing outperformance of
bank stocks has been wiped out in the last four months.

The Nifty Bank Index has fallen 32% since January, lagging behind the broader market. Over
the same period, NSE Nifty has fallen by just 8.2%. Bank stocks have also been lagging behind
in market recovery since their lows on March 24. The bank index has risen 36% from its 52-
week low on March 24, while the benchmark index Nifty50 has risen 50% during this period.

59
Compare this to how the Nifty Bank Index has worked over the years. From 2011 to the end of
2019, the benchmark index has almost tripled compared to doubling. Analysts attribute this
decline to investor concerns about the surge in non-asset assets (NPA) due to Covid-19 and the
blockade. "The six-month moratorium on loan services granted by the Reserve Bank of India
(RBI) has raised questions among investors about the quality of banks' assets. It weighs heavily
on bank stocks. "

WHEN NIFTY IS AT ITS PEAK, WHY NIFTY BANK IS LAGGING? BLAME IT ON

VIRUS:

Why is India's second most popular index, Nifty Bank, down 7% from its all-time high when
India's heart rate index Nifty has soared to an all-time high? And this is the time when even
mid-cap and small-cap indices are trading at 52-week highs. You can see the relationship by
comparing the Covid infection chart in India with the Nifty Bank chart. As financial stocks
become more sensitive to macroeconomic conditions, Nifty Bank has reflected the effects of
the Covid crisis over the last 12 months. Nifty Bank hit a 20-405 day low after India peaked
on September 24, last year with 1,017,754 Covid cases per day in the first wave of September
18. After that, as Covid's infection rate began to decline, Bank Nifty began to recover, rising
to a new high of 37,709 on February 16. At that time, Covid had less than 10,000 cases per
day. During this period, Nifty Bank outperformed Nifty by about 40 percent. When the second
Covid wave struck in February / March, the bank index again showed a negative correlation.
Covid cases peaked last month, with Nifty Bank generating 9% monthly revenue, 1 percentage
point above Nifty.

60
"As the economy normalizes and growth recovers, finance is in a good position to trade
reflation," said CLSA analyst Bikash Kumar Jain.

Therefore, the stock market works on the assumption. Look at history. When something big
happens, the market goes up and down according to people's thoughts, and when it actually
happens, adjusting the number stabilizes the market. There is a very good statement about the
market. The market moves with the news and adapts to real events. If you want to make a profit
on the stock market, buy and sell the moment the news arrives, and buy and sell stock when
something really happens.

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 CHAPTER 5

FINDINGS AND SUGGESTION

FINDINGS:

The analysis was primarily performed using one mathematical indicators called the relative
strenghi ndex, which is the main indicators of technical analysis.

After analyzing the eighth companies, this was proven using the Relative Strength Index.
Investors can identify oversold, overbought and trend reversals to make the right investment
decisions with minimal risk.

According to RSI data, it is better to take a long position when the RSI line is touching or
approaching oversold market conditions. H. Near or below 30 levels. On the other hand, it is
better to take a short position when the RSI line is touching or approaching overbought market
conditions. H. It's close to 70 or better. Second, according to the moving average, it is better to
take a long position if there is a bullish divergence. On the other hand, if there is a bearish
divergence, it is better to short.

Apart from the RSI indicators, even investors can identify popular chart patterns such as
support and resistance, head and shoulders, triangles and flags that help investors make
investment decisions.

Investors need to be very careful in identifying key trends

After he identifies the key trends, pulling back in the rally is an opportunity for re-entry, unless
the key trends are compromised.

Investors should not hesitate to increase their position when they identify their strengths and
hold their position until the trend signals a reversal.

Investors need to follow principles set with absolute clarity and integrity that help reduce
psychological tensions, and pressures. This also helps him protect himself from fake roomers
/ fake information and market manipulation.

62
SUGGESTION

Investors need to be educated on how to use technical analysis tools. Because it helps them
get more profit from their daily investment.

Fundamental analysis can also be proposed to investors along with the company. Profitability
and profitability growth.

Companies need to instruct investors to primarily monitor business, economic, social and
political factors that affect the supply and demand of securities. Investors can also use a number
of charts that show the true picture of securities movements.

Investors need to analyze real-time market data. Regardless of the uptrend and downtrend
markets, plan your own market timing strategy to make money.

The trading volume in minutes indicates the reversal point of the market, so you can identify
the trading time.

"Trends are your friends" is the motto of technical analysis. Therefore, investors need to
monitor stock trends before investing. Investors believe that stock market activity is risky and
hesitant to be willing to invest in the stock market. Therefore, companies need to implement
programs that educate and educate investors about the benefits of investing in the stock market
and the resulting benefits.

Like the stock market, semi-knowledge is very dangerous. Therefore, it is the company's
responsibility to train staff and technical analysts to become stock market experts, solve all
investor questions without false information or hesitation, and become an expert in solving
investor confusion to increase investment.

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 CHAPTER 6

CONCLUSION

Technical analysis is one of the most advanced techniques used to analyze securities by
analyzing historical and other statistics generated by market activity. Technical analysis is
based on three main assumptions. That is, the market discounts everything, trend price
fluctuations, history tends to repeat. Technical analysts say that the fundamentals of all
companies are always discounted by the market. They also see the short-term approach to
analyzing the market as a long-term analysis. Trends are one of the key concepts in technical
analysis and are actually the direction in which security is advancing. This trend line is drawn
using the closing price of the stock. Charts and graphs are used in technical analysis to show
price series over a period of time. The Relative Strength Index and Moving Average are the
main oscillators for technical analysis.

The Relative Strength Index is more popular with oscillators and helps identify overbought
and oversold market conditions for a particular stock or index. Moving averages are one of the
key mathematical indicators used to indicate the average price fluctuations of a security over a
period of time.

The stock market is a great opportunity to stand out in the market, but firstly investors need
to be educated and trained on the right information about the stock market, and secondly
analysts are educated and professional on analysis and services. You need to be trained.
delivery. These measures lead the company to success.

64
REFERENCE:

https://groww.in

https://www.moneycontrol.com

https://www.indiainfoline.com

https://www.investopedia.com

https://economictimes.indiatimes.com

https://www.nseindia.com

https://in.investing.com

https://www.researchgate.net

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