13..Prasanna P Kaware ABC PROJECT REPORT_compressed

PROJECT REPORT
ON
FUNDAMENTAL & TECHNICAL ANALYSIS OF THE IT
SECTOR
By
PRASANNA P KAWARE
(23BSPHH01C0342)
ADITYA BIRLA CAPITAL
1
PROJECT REPORT ON
FUNDAMENTAL & TECHNICAL ANALYSIS OF THE IT

SECTOR
By
PRASANNA P KAWARE
(23BSPHH01C0342)
A report submitted in partial
fulfilment of the requirements of
MBA Program of
IBS HYDERABAD
Faculty Guide: Dr . T . Sita Ramaiah

(Sr. Asst. Professor,
Finance and Accounting IBS – Hyderabad)
Company Guide: Mr. Nikesh Ruparel

(Executive Associate Partner – Aditya Birla Capital-Mumbai)
Date of Submission -15th April 2024
2
AUTHORISATION
This project work, titled "To Analyse the IT Sector Based on Fundamental and
Technical Parameters," represents the culmination of my efforts undertaken as
part of the MBA Program at IBS Hyderabad. I, Prasanna P Kaware, Enrolment
No (23BSPHH01C0342) am solely responsible for the research, analysis, and
presentation of the findings included within this report.
The findings and conclusions presented within this report are the result of my
independent research and analysis. They are genuine and intended solely to
contribute to the academic discourse within the field of finance. To ensure the
integrity of this work, I confirm that this project, in its entirety, has not been
submitted or published elsewhere in any form. Any similarities to previous
projects or research works are purely coincidental and unintentional.
This report has been formally submitted to Dr. T. Sita Ramaiah (Sr. Asst.
Professor, Finance and Accounting IBS – Hyderabad).
Prasanna P Kaware, Enrolment No. (23BSPHH01C0342)
Date: 15th MAY 2024
Place: Aditya Birla Capital Office, Ghatkopar (W), Mumbai, (400077).
3
ACKNOWLEDGEMENT
I wish to extend my heartfelt appreciation to all those who played a pivotal role
in making my summer internship experience truly enriching.
First and foremost, I express my sincere gratitude to Aditya Birla Capital for
extending the opportunity to partake in their esteemed Summer Internship
Program. This invaluable experience provided me with a firsthand glimpse into
the dynamics of the corporate realm, which has been immensely beneficial for
my professional growth.
I am deeply indebted to my mentor, Mr. Nikesh Ruparel, whose unwavering

support , teaching and guidance were instrumental throughout my internship
journey. His mentorship helped me navigate challenges with confidence and
achieve commendable results.
Furthermore, I am grateful to m faculty guide, Dr. T. Sita Ramaiah, for his

invaluable insights and encouragement throughout the internship period. His
expertise and constructive feedback played a significant role in shaping my
learning experience.
Lastly, I extend my appreciation to all individuals who, directly or indirectly,

contributed to my internship journey. Their contributions, whether in the form of
time, energy, or knowledge, have been instrumental in my professional and
personal development.
Overall, this internship experience has been profoundly enriching, and I am

genuinely thankful for the opportunity to learn, grow, and excel.
4
Sr.No Title Table . No Figure . No Page . No
1 COVER PAGE 1,2
2 AUTHORISATION 3
3 ACKNOWLEDGEMENT 4
4 About the Company - Aditya Birla Capital 7,8
5 Learning from the Internship 9
6 Different Types of Markets 10,11
7 Risks in Market 12,13
8 The IT Sector: An Overview 14,15,16
9 Revenue Breakup for a IT Companies 1 1 17,18
10 Basics Of Stock Treading 19,20
11 Index Analysis 21,22
12 Index Calculation 2,3 2 23,24,25
13 Gold Investment 26
14 Insurance 27,28
15 Techniques for Trading At Stock Market 29,30
16 FUNDAMENTAL ANALYSIS 31
17 Intrinsic Value 32
18 The Goal: Uncovering Value 4,5,6,7,8 32,33,34,35
19 Comparison of NAV and Index 3 36,37
20 Technical Analysis 9 38,39
21 Moving averages 10 40
22 Relative Strength Index (RSI) 11 40
23 Bollinger Bands 12 41
24 Stochastic RSI 13 42
25 Super Trend 14 43
26 Volume Weighted Average Price 15 44
27 Pivot Point Standard 16 45
28 Long Term View and Short Term Vivew 17,18 46
29 Trendlines 19,20 47
30 Long Term Technical Analysis 48
31 Rounding Bottom 21 49
32 Cup with Handle 22 50,51
33 Bump and run reversal 23 52,53
34 Head and shoulders pattern 24 54,55
35 Head and shoulder Bottom Pattern 25 56,57
36 Double Top 26 58,59
37 Double Bottom 27 60,61
38 Medium-Term Technical Pattern / Chart Analysis : 62
39 Symmetrical Triangle 62,63
5
40 Symmetrical Triangle 28 63
41 Ascending Triangle 29 64,65
42 Descending Triangle 30 67,68
43 Price Channel 31 69
44 Short-Term Technical Pattern / Chart Analysis 70
45 Doji 32 71
46 Doji Trend Reversal 33 71
47 Hammer & Hanging Hammer 34,35 72,73
48 Shooting-Star 36 74,75
49 Blending Candlesticks 37 76
50 Derivatives 77,78
51 Vertical Spread 38,39 79
52 Naked Call Sell 40,41 80
53 Naked Put Sell 42,43 81
54 Vertical Spread Hindalco Put 44,45 82
55 Short Strangle with Iron Condor 46,47 83
56 Iron condor strategy 48,49 84
57 Short Strangle 50,51 85
58 Zero to Hero 52,53 86
59 Iron Fly 54,55 87
60 Indigo Directional spread 56,57 88
61 Calendar Spread 58,59 89
62 Synthetic futures 60 90
63 Covered Call 61 91
64 Short Straddle 62,63 92
65 Long Straddle 64,65 93
66 Long Strangle 66 94
67 Financial Modelling of Alembic Pharmaceuticals 95
68 Assumptions 10 95
69 Balance sheet forecasted 11 96
70 Income Statement Forecast 12 97
71 Supporting Schedule 13 97
72 Cash flow statement Forecasted 14 98
73 Performance Analysis 15 67 90
74 Cash flow analysis model 68 100
75 DCF Model 16 101
76 PRODUCT DESIGN 17,18 102,103
77 FINDINGS & CONCLUSION 104,105
78 REFERENCES 106
6
About the Company - Aditya Birla Capital
Aditya Birla Capital Limited (ABCL) is the holding company for the financial
services businesses of the Aditya Birla Group. With subsidiaries/JVs that have a
strong presence across Protecting, Investing, and Financing solutions, ABCL is a
financial solutions group that caters to the diverse needs of its customers across
their life cycle. Powered by more than 34,000 employees, the businesses of
ABCL have a nationwide reach with over 1,200 branches, more than 2,00,000
agents/channel partners, and several bank partners.
As of December 31st, 2022, Aditya Birla Capital Limited manages aggregate
assets for over Rs. 3,600 billion with a consolidated lending book of approx. Rs.
859 billion, and an active customer base of approx. 43 million through its
subsidiaries and joint ventures.
Aditya Birla Capital Limited is a part of the Aditya Birla Group, which is in the
league of Fortune 500. Anchored by an extraordinary force of over 140,000
employees belonging to 100 nationalities, the Aditya Birla Group operates in 36
countries across the globe.
• "To be a leader and role model in a broad-based and integrated financial

services business."
• The four pillars of our vision that will help us achieve it are:
• To be a leader – we are committed to leading all facets of our businesses
rather than just another participant in this race.
• To be a role model – we will not become leaders by cutting corners or making
compromises. Whatever we do, we will strive to be the best in class. And if
we are the best, then our customers will have no reason to go elsewhere –
therefore, our leadership is assured on pure merit.
• To be a broad-based player – we are committed to meeting all our target
customers' felt and unfelt needs. And thereby, we can retain him or her across
their needs and life stages.
• We aim to be an integrated player – The company believes that this
approach gives us a competitive edge through sharing best practices, deriving
cross–business synergies & providing a talent pool with a world of opportunity
to grow.
“Our customers place a lot of trust when they choose us as a partner for the
fulfilment of their dreams - be it buying a dream home or investing their hard-
7
earned money in mutual funds or for meeting their retirement or child's education
or protection needs or taking a business loan for expansion. At Aditya Birla
Capital, our endeavour is to become a preferred financial services brand of choice
for all our customer’s needs across their life cycle - a brand that customers will
trust and happily endorse. Keeping this customer insight in mind, we have created
a unique strategy & structure to present our spectrum of businesses and offerings
under one virtual brand. From a customer perspective, this offers simplicity &
convenience. We offer our employees a world of growth opportunities across all
our financial services offerings. And to our shareholders, this reassures us that we
will attract and retain our customers, cost-effectively, across their life-cycle
needs.”
8
Learning from the Internship
The internship journey at Aditya Birla Capital has been truly enriching and
rewarding. The atmosphere provided for learning and training is tranquil and
conducive, fostering an environment where knowledge can flourish. The
concerted efforts of our trainers, company mentors, and other officials have been
instrumental in shaping our learning experience, making it both engaging and
profound.
One of the standout features of our learning journey has been the incorporation
of real-world scenarios and practical conditions into our training modules. By
immersing ourselves in these authentic situations and assignments, we have been
able to not only understand but deeply grasp the concepts being taught. Daily
assignments have been pivotal in this regard, offering us the opportunity to apply
our learning in diverse scenarios and ensuring a thorough understanding of
various topics and techniques. These assignments, ranging from group
presentations to portfolio creation, case studies, and comparative analyses, have
been invaluable in honing our skills.
The internship began with a comprehensive orientation session, where we were

provided with insights into the company, its objectives, and the scope of our
learning. We received detailed briefings on the topics we would explore, the
methodologies employed by the company, our roles, and the expected outcomes
of the internship. This orientation session was instrumental in providing us with
clarity regarding the structure and significance of the Summer Internship Program
(SIP), empowering us to maximize our learning and make the most of this
opportunity for personal and professional growth.
Throughout the internship, we have been exposed to key topics relevant to our
field of study. These topics have been meticulously explained in the reports,
offering a concise overview of the concepts covered and the insights gained.
Overall, the internship experience at Aditya Birla Capital has been characterized
by a steadfast commitment to holistic learning, practical application, and
nurturing our professional development.
9
Different Types of Markets :
In the finance industry, there are various types of markets where financial assets
are traded. Here are some of the main types.
1. Stock Market (Equity Market) : This is where shares of publicly traded

companies are bought and sold. Investors can purchase ownership stakes in
companies through stocks, which represent a claim on the company's assets and
earnings.
2. Bond Market (Fixed-Income Market) : Bonds are debt securities issued by

governments, municipalities, corporations, or other entities to raise capital. The
bond market is where these bonds are bought and sold. Bonds typically pay
periodic interest payments and return the principal amount at maturity.
3. Foreign Exchange Market (Forex) : This is where currencies are traded.

Participants in the forex market include banks, corporations, governments, and
individual traders. Forex trading involves buying one currency while
simultaneously selling another.
4. Commodity Market : Commodities are physical goods like gold, oil,

agricultural products, and metals. The commodity market facilitates the buying
and selling of these goods. Commodities are often traded via futures contracts,
which specify the quantity and price at which the commodity will be delivered
on a future date.
5. Derivatives Market : Derivatives are financial contracts whose value is derived

from the value of an underlying asset, index, or reference rate. Examples include
options, futures, forwards, and swaps. The derivatives market allows investors to
hedge risk, speculate on price movements, and manage exposure to various
financial variables.
10
6. Money Market : The money market deals with short-term debt securities with
maturities typically ranging from overnight to one year. Instruments traded in the
money market include Treasury bills, commercial paper, certificates of deposit,
and repurchase agreements. The money market serves as a source of short-term
liquidity for borrowers and a place for investors to park excess cash.
7. Real Estate Market : Real estate markets involve the buying, selling, and
renting of properties, including residential, commercial, and industrial real estate.
Real estate investments can provide rental income and potential appreciation in
property value.
8. Cryptocurrency Market : This is a relatively new type of market where digital

or virtual currencies like Bitcoin, Ethereum, and Litecoin are bought and sold.
Cryptocurrencies operate on decentralized networks using blockchain
technology.
These are just some of the main types of markets in the finance industry, each
serving different purposes and catering to various types of investors and traders.
11
Risks in Market :
Financial markets are inherently complex and subject to various risks, which can
impact investors, institutions, and even broader economies. Here are some of the
key risks associated with financial markets
1. Market Risk : Also known as systematic risk, this risk arises due to factors
affecting the overall performance of the market, such as economic downturns,
geopolitical events, changes in interest rates, or shifts in investor sentiment.
2. Liquidity Risk : This refers to the risk of not being able to buy or sell an asset
quickly enough without significantly affecting its price. Assets with low liquidity
may be difficult to sell at their market value, leading to potential losses.
3. Credit Risk : This risk arises from the potential for a borrower or issuer to
default on their financial obligations. It's particularly relevant in bond markets,
where investors may face losses if the issuer fails to make interest payments or
repay the principal amount.
4. Interest Rate Risk : Fluctuations in interest rates can impact the value of fixed-
income securities, such as bonds. When interest rates rise, bond prices typically
fall, and vice versa. This risk affects both individual investors and institutions
holding fixed-income assets.
5. Inflation Risk : Inflation erodes the purchasing power of money over time.
Investments that fail to outpace inflation can result in real losses for investors.
Therefore, protecting against inflation risk is crucial for maintaining the value of
investments over the long term.
6. Currency Risk : Also known as exchange rate risk, this risk arises from
fluctuations in the value of one currency relative to another. Investors holding
assets denominated in foreign currencies may face losses if the exchange rate
moves unfavourably.
12
7. Political and Regulatory Risk : Changes in government policies, regulations,
or political instability can impact financial markets. These risks can manifest in
various forms, such as changes in tax laws, trade policies, or regulatory
requirements, affecting the profitability and stability of investments.
8. Systemic Risk : This refers to the risk of widespread failure within the financial
system, often due to interconnectedness between financial institutions or markets.
Systemic risks can arise from events such as banking crises, market crashes, or
disruptions in payment systems.
9. Operational Risk : Arising from internal processes, systems, or human error,

operational risk encompasses a wide range of potential failures, including errors
in trading, settlement, compliance, or cybersecurity breaches.
10. Model Risk : Financial models used for pricing, risk management, or
decision-making purposes may not accurately reflect the complexities of real-
world markets. Model risk arises from inaccuracies or limitations in these models,
leading to potential misjudgements or losses.
Understanding and managing these risks is essential for investors and institutions
to navigate financial markets effectively and protect against potential losses.
Diversification, hedging strategies, risk assessment tools, and staying informed
about market developments are among the approaches used to mitigate these
risks.
13
The IT Sector: An Overview :
The Information Technology (IT) sector in India is one of the country's most
dynamic and rapidly growing industries. It has played a significant role in
transforming India into a global technology hub and has contributed significantly
to the country's economic growth. Here's an overview of the IT sector in India:
1. Software and Services : India is renowned for its software development and IT
services industry. Indian IT companies provide a wide range of services including
software development, application maintenance, system integration, consulting,
and outsourcing. Major Indian IT services companies include Tata Consultancy
Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra.
2. Offshore Outsourcing : India has emerged as a preferred destination for

offshore outsourcing of IT services due to its large pool of skilled IT
professionals, cost advantages, and quality of service. Many multinational
corporations outsource IT projects to Indian firms for software development,
back-office operations, customer support, and other services.
3. IT Parks and Special Economic Zones (SEZs) : India has established numerous
IT parks and SEZs across the country to provide infrastructure and facilities for
IT companies. Cities such as Bengaluru, Hyderabad, Pune, Chennai, and
Gurugram are major hubs for IT companies, housing large IT parks and SEZs.
4. Education and Skilled Workforce : India's education system produces a large

number of engineering and IT graduates every year, providing a skilled workforce
for the IT industry. Additionally, many IT companies in India invest in training
and skill development programs to enhance the capabilities of their employees.
5. Global Presence : Indian IT companies have a strong global presence, serving

clients across various industries and geographies. They have established offices
and delivery centers in key markets such as the United States, Europe, Asia-
Pacific, and the Middle East.
14
6. Emerging Technologies : Indian IT companies are increasingly focusing on
emerging technologies such as artificial intelligence (AI), machine learning
(ML), data analytics, cloud computing, cybersecurity, and Internet of Things
(IoT) to drive innovation and stay competitive in the global market.
7. Government Support : The Indian government has implemented policies and

initiatives to support the growth of the IT sector, including tax incentives,
infrastructure development, and promotion of research and development (R&D).
The National Policy on Software Products, Digital India program, and Startup
India initiative are some examples of government initiatives aimed at fostering
the growth of the IT industry.
Overall, the IT sector plays a pivotal role in India's economic development, job
creation, and global competitiveness. With continued investment in technology
infrastructure, skill development, and innovation, the Indian IT industry is poised
for further growth and expansion in the years to come.
o The IT Sector: A Key Driver of the Indian Economy

• The Indian IT sector is a cornerstone of the nation's economy,
encompassing a wide range of services and activities. It includes IT
services, business process outsourcing (BPO), engineering research and
development, software products, and e-commerce, collectively known
as the IT-BPM industry.
• This sector generates significant revenue, both domestically and through
exports, employing millions of people.
o Rise of the Indian IT Industry
• The IT sector's boom began in the 1990s, fuelled by economic reforms
and the introduction of the Software Technology Parks of India (STPI)
scheme. The Y2K problem, where computer systems needed updates to
avoid date-related malfunctions at the turn of the millennium, presented
a crucial opportunity. Indian companies' cost-effective solutions gained
global recognition, leading to increased outsourcing and offshoring of
IT services to India.
• Since then, the sector has expanded into diverse IT services and
emerging technologies, fostering continuous growth and innovation.
15
Factors Contributing to IT Sector Growth
• Several key factors have driven the IT sector's success in India:
• Skilled Workforce: India boasts a large pool of skilled IT professionals.
• Cost Advantage: India offers competitive pricing compared to many
developed nations.
• Global Demand: The global demand for IT services continues to rise.
• Government initiatives, such as establishing technology hubs, and
international recognition have further propelled the sector's growth.
• Major Players and Future Outlook

• Tata Consultancy Services, Infosys, Wipro, Tech Mahindra, and HCL
Technologies are some of the key players in the Indian IT services
market. The sector has witnessed significant growth and has become the
world's largest exporter of IT services.
• India aims to further expand its information and communication
technology (ICT) sector and increase its contribution to the GDP. The
embrace of technological advancements like Artificial Intelligence,
cloud computing, and cybersecurity will drive digital transformation in
the country.
Employment of the IT-BPM industry in India from financial year 2009 to

2022, with an estimate for 2023.
16
Revenue Breakup for a IT Companies :
Revenue Breakup
Energy,
Life Regional
Consumer Technology Communication Resources Logistics &
Company Name BFSI Sciences & Manufacturing Markets & Retail
Business & Services & Media and Transport
Healthcare Others
Utilities
TCS 32.6% 15.9% 10.9% 8.6% 8.5% 6.9% 5.6% 11% - -
Infosys 32% - 7% 8% 11% 13% 12% 3% 15% -
HCL Tech - - - 72% 16% - - 12% - -
Wipro 31% 16% 14% 13% 8% 5% 13% - - -
LTIMindtree 36.5% - 6.5% 23.8% 17.9% - - - 15.3% -
Tech Mahindra 16% - - 9% 16% 40% - - - 8%
Oracle Fin Serv - - - 10% 90% - - - - -
Persistent 31% - 22% 47% - - - - - -
MphasiS 62% - - 4.33% - 8.66 - 12% - 13%
KPIT Tech - - - - - - - - - 100%
COFORGE LTD. 54% - - - 27% - - - - 19%
Birlasoft 21% - 24% - 41% - 14% - - -
Cyient - - 18% - - 23% 28% - - 31%
Sonata - - - - 27% - - 21% 27% 25%
Affle India - 99% - - - - - 1% - -
Happiest Minds 50% 27% - 17% - - - 6% - -
Intellect Desig 100% - - - - - - - - -
Zensar Tech 36% 18% - - 46% - - - - -
Latent View 8% - - 71% - - - 9% 8% -
Route - - - - - 98% - 2% - -
Mastek 11.10% 23.5% 6.75 6.75% 14.8%
Total 521.2% 175.9% 125.9% 958.7% 315.2% 1051.9% 72.6% 77.0% 80.1% 196.0%
Table.01
Fig.01
17
• BFSI: The Banking, Financial Services and Insurance industry. The size of the slice
suggests that this is the largest contributor to the company's revenue.
• Consumer Business: This slice represents the Consumer Business industry, but the
specific breakdown within this category isn't provided in the pie chart.
• Life Sciences & Healthcare and Technology & Services: These two slices represent the
Life Sciences & Healthcare industry and the Technology & Services industry,
respectively. Their relative sizes show that they contribute less revenue compared to BFSI
but more than Consumer Business.
• Manufacturing and Communication & Media: These slices represent the
Manufacturing industry and the Communication & Media industry, respectively. They
seem to contribute a similar amount of revenue, which is less than the previous three
categories.
• Energy, Resources and Utilities and Regional Markets & Others: These two slices
represent the Energy, Resources and Utilities industry and the Regional Markets & Others
industry, respectively. The slice sizes suggest that they are the smallest contributors to the
company's revenue.
18
BASICS OF STOCK TRADING
Overview of the basics of stock trading :
1. Understanding Stocks : Stocks represent ownership in a company. When you

buy a stock, you're essentially buying a small piece of that company. Stocks are
traded on stock exchanges, such as the New York Stock Exchange (NYSE) or the
Nasdaq.
2. Brokerage Account : To buy and sell stocks, you need to open a brokerage
account with a brokerage firm. This account allows you to place orders to buy or
sell stocks through the broker's trading platform.
3. Research : Before buying a stock, it's important to research the company and
its financial health. Look at factors such as the company's revenue, earnings,
growth prospects, and industry trends. You can find this information in financial
news, company reports, and analyst research.
4. Stock Market Orders : There are different types of orders you can place when
trading stocks:
• Market Order : A market order is an instruction to buy or sell a stock at
the current market price. It's executed immediately.
• Limit Order : A limit order allows you to set a specific price at which you
want to buy or sell a stock. The trade will only be executed if the stock
reaches your specified price.
• Stop Order : A stop order becomes a market order once the stock reaches
a certain price. It's used to limit losses or lock in profits.
5. Risk Management : Stock trading involves risks, including the risk of losing
money. It's important to manage your risk by diversifying your investments,
setting stop-loss orders, and not investing more than you can afford to lose.
6. Monitoring and Analysis : Once you've bought stocks, it's important to monitor
your investments regularly. Keep track of company news, market trends, and
19
economic indicators that may affect the value of your stocks. You may also
consider using technical analysis or fundamental analysis to make informed
trading decisions.
7. Long-Term vs. Short-Term Investing : Stock trading can be done with different
time horizons. Long-term investing involves holding stocks for an extended
period, typically years, with the expectation of capital appreciation. Short-term
trading, on the other hand, involves buying and selling stocks over shorter
timeframes, often taking advantage of short-term price fluctuations.
8. Costs and Fees : When trading stocks, you may incur costs and fees, such as
brokerage commissions, transaction fees, and taxes. Be sure to understand the
fees associated with trading and factor them into your trading strategy.
Remember, stock trading involves risks, and it's essential to educate yourself, do
thorough research, and consider your investment goals and risk tolerance before
trading stocks. Additionally, seeking advice from financial professionals or
experienced investors can be beneficial, especially for beginners.
20
INDEX ANALYSIS
Index analysis involves evaluating and interpreting the performance of financial
market indices to gain insights into overall market trends, sectoral performance,
and investor sentiment. Here's an explanation of index analysis:
1. Understanding Market Indices : A market index is a statistical measure of the

performance of a group of stocks or other assets representing a particular market
or sector. Indices are used as benchmarks to track the performance of the overall
market or specific segments of the market. Examples of widely followed indices
include the S&P 500, Dow Jones Industrial Average (DJIA), Nasdaq Composite,
and FTSE 100.
2. Components of Index Analysis :

• Price Movement : Index analysis involves examining the price movement
of the index over time. This includes identifying trends, such as upward or
downward movements, as well as periods of volatility or consolidation.
• Volume Analysis : Analysing trading volume associated with index
movements can provide insights into the level of market participation and
investor interest. High volume during price rallies or sell-offs may indicate
strong conviction among market participants.
• Technical Analysis : Technical indicators, such as moving averages,
relative strength index (RSI), and MACD (Moving Average Convergence
Divergence), are commonly used in index analysis to identify potential
trend reversals, support and resistance levels, and overbought or oversold
conditions.
• Fundamental Analysis : Fundamental factors, such as economic indicators,
corporate earnings, interest rates, and geopolitical events, can influence
index movements. Fundamental analysis involves assessing these factors
to understand their impact on market sentiment and valuations.
• Market Breadth : Market breadth indicators, such as the advance-decline
line and the number of stocks trading above their moving averages, provide
insights into the overall health of the market. Strong market breadth
typically accompanies sustainable market rallies, while weak breadth may
signal underlying weakness.
• Sector Analysis : Indices often comprise multiple sectors, each with its own
dynamics and performance drivers. Sector analysis involves examining the
21
relative strength or weakness of individual sectors within the index to
identify opportunities or risks.
3. Interpreting Index Analysis :

• Trend Identification : Index analysis helps identify prevailing market
trends, such as uptrends, downtrends, or sideways movements.
Understanding the direction of the trend can guide investment decisions.
• Market Sentiment : Analysis of index movements and associated indicators
provides insights into investor sentiment, including bullish or bearish
attitudes, optimism, or caution.
• Risk Assessment : Index analysis assists in assessing market risk by
identifying potential areas of support and resistance, as well as overbought
or oversold conditions that may precede corrections or reversals.
• Investment Opportunities : By identifying sectors or stocks that are
outperforming or underperforming the broader market, index analysis can
help investors identify potential investment opportunities or areas for
portfolio rebalancing.
Overall, index analysis is a valuable tool for investors, traders, and analysts to
understand market trends, assess risk, and identify investment opportunities in
the financial markets. It involves a combination of technical, fundamental, and
sentiment analysis to gain a comprehensive view of market dynamics.
22
INDEX CALCULATION
Specific segments within a country's stock market. They achieve this by

calculating a weighted average of selected stocks from that segment. These
indexes are invaluable tools for investors and analysts, allowing them to
understand market trends, compare different investment options, and express
stock performance in numerical terms. specific segments within a country's
stock market. They achieve this by
Steps to calculate Stock Market Index (IT SECTOR)
1. Data Collection: Begin by gathering the daily closing prices for all the
stocks belonging to the paint sector.
2. Market Capitalization: Calculate the market capitalization for each

stock by multiplying its closing price with the total number of
outstanding shares.
3. Stock Weighting: Determine the weightage of each stock within the

index. This is achieved by dividing the individual market
capitalization of each stock by the total market capitalization of all the
paint sector stocks combined.
4. Price Change Calculation: To calculate the percentage change in price

for each stock, use the following formula: (Current Price - Base Price)
/ Base Price * 100
5. Weightage Change: Calculate the change in weightage for each stock

by multiplying its weight (from step 3) by its corresponding
percentage change in price (from step 4).
6. Final Index Value: Assuming a base value of 1000, the final index
value is calculated by multiplying the change in weightage for each
stock by 10 (1000/100) and summing those values.
7. Daily Base Adjustment: To track the index's movement over time, the
previous day's base value needs to be multiplied by the daily change
in weightage.
23
INDEX LIVE DATA :
DATE INDEX PRICE EXPLANATION
1000 Initial Price
20-02-2024 981.75 Decline From Previous Price
22-02-2024 991.37 Rises From Previous Price
04-03-2024 977 Decline From Previous Price
12-03-2024 1,003.06 Rises From Previous Price
14-03-2024 1,016.99 Rises From Previous Price
15-03-2024 1,012.74 Decline From Previous Price
24
LAST PRICE
MARKET PERCENTAGE IMPACT
Company Name AS ON WEIGHTAGE IMPACT %
CAP CHANGE PRICE
01/03/2024
21-03-2024
TCS 4,096.30
971.9
14,81,643.02 41.18
Decline 0.012066173
0.03%
From Previous0.12
Price
Infosys 1,655.05 6,94,758.66 19.31 -1.13% -0.2174328 -2.17
HCL Tech 1,644.45 4,51,513.17 12.55 -1.17% -0.14630771 -1.46
Wipro 519.15 2,70,967.47 7.53 0.11% 0.007986501 0.08
LTIMindtree 5,270.90 1,56,991.76 4.36 -0.57% -0.02465116 -0.25
Tech Mahindra 1,271.65 1,24,378.42 3.46 -0.17% -0.00596978 -0.06
Oracle Fin Serv 7,706.10 66,480.23 1.85 0.43% 0.007970114 0.08
Persistent 8,610.05 66,388.97 1.85 -0.24% -0.00433983 -0.04
MphasiS 2,616.75 49,406.16 1.37 -0.02% -0.00031476 0.00
KPIT Tech 1,575.10 43,055.66 1.20 0.29% 0.003466563 0.03
COFORGE LTD. 6,519.00 40,498.87 1.13 -0.53% -0.00601908 -0.06
Birlasoft 823 22,377.15 0.62 1.49% 0.009240744 0.09
Cyient 2,032.00 22,441.47 0.62 0.33% 0.002032328 0.02
Sonata 774.85 21,763.77 0.60 -0.16% -0.00097417 -0.01
Affle India 1,115.60 15,629.78 0.43 0.05% 0.000214255 0.00
Happiest Minds 848.15 12,891.58 0.36 0.18% 0.000655947 0.01
Intellect Desig 1113 15,170.40 0.42 0.32% 0.001368108 0.01
Zensar Tech 544.8 12,449.73 0.35 -0.87% -0.00302179 -0.03
Latent View 516.1 10,489.78 0.29 1.31% 0.00380536 0.04
Route 1,592.75 9,989.93 0.28 -0.16% -0.00044378 0.00
Mastek 2,945.40 8,959.30 0.25 0.84% 0.002101386 0.02
TOTAL 35,98,245.26 100.00 -3.59
NEW
INDEX 980.28
PRICE
Table.03
INDEX PRICE
1030
1020
1010
1000
990
980
970
960
950
940
930
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
/0 4
24
20 2/2
22 2/2
24 2/2
26 2/2
28 2/2
01 2/2
03 3/2
05 3/2
07 3/2
09 3/2
11 3/2
13 3/2
15 3/2
17 3/2
19 3/2
21 3/2
3/
/0
18
Table.02
25
GOLD INVESTMENT
Investing in gold means buying gold as a way to grow your money over time.
Here's a simple explanation of gold investment in Indian English:
1. Buying Gold : Gold investment involves purchasing gold in various forms,
such as gold jewellery, gold coins, gold bars, or gold exchange-traded funds
(ETFs). You can buy gold from jewellery shops, banks, or online platforms that
sell gold.
2. Hedge Against Inflation : People invest in gold because it's considered a safe
investment that can protect their money during times of inflation. When the value
of money goes down due to rising prices, the value of gold usually goes up, so it
helps to keep your savings safe.
3. Diversification : Investing in gold is a way to diversify your investment
portfolio. This means spreading your money across different types of investments
to reduce risk. Gold often moves differently from stocks and bonds, so having
gold in your portfolio can help balance out the ups and downs of other
investments.
4. Store of Value : Gold has been seen as a store of value for thousands of years.
It's a tangible asset that holds its value over time. People trust gold because it's
rare, doesn't corrode or rust, and has been used as money for centuries.
5. Easy to Buy and Sell : Gold is easy to buy and sell. You can buy small amounts
of gold or larger quantities depending on your budget and investment goals. When
you want to sell, you can usually find buyers easily, either at jewelry shops or
through online platforms.
6. Long-Term Investment : Gold investment is often seen as a long-term
investment. While the value of gold can go up and down in the short term,
historically, gold has held its value well over the long term, making it a popular
choice for people looking to grow their wealth steadily over time.
7. Storage and Security : If you buy physical gold like jewelry or coins, you'll
need to store it safely to protect it from theft or damage. Some people prefer to
keep their gold in bank lockers or home safes. If you invest in gold ETFs, you
won't need to worry about storage because the gold is held by the fund manager.
Overall, gold investment is a popular choice for people in India who want to
protect their savings, diversify their investments, and grow their wealth over time
in a simple and secure way.
26
Insurance :
In India, insurance is a significant financial instrument that provides protection
against unforeseen events, offering a safety net for individuals, families, and
businesses. Here's an overview:
Types of Insurance:
1. Life Insurance : Provides financial coverage to the insured person's family or
beneficiaries in case of death. It ensures financial stability for dependents after
the insured's demise.
2. Health Insurance : Covers medical expenses incurred due to illnesses,
accidents, or hospitalization. It can include individual health plans, family
floater policies, critical illness covers, etc.
3. Motor Insurance : Mandatory by law, it covers damages to vehicles and third-
party liabilities arising from accidents. It includes two types: third-party
insurance and comprehensive insurance.
4. Property Insurance : Covers damages to property due to natural disasters like
fire, floods, earthquakes, etc. It includes home insurance, fire insurance, and
other property-specific covers.
5. Travel Insurance : Provides coverage for medical expenses, trip cancellations,
lost baggage, etc., during domestic or international travel.
6. Commercial Insurance : Covers businesses against various risks like property
damage, liability claims, business interruption, etc. It includes fire insurance,
marine insurance, liability insurance, etc.
Insurance Regulatory Framework :
• Regulator : The Insurance Regulatory and Development Authority of India
(IRDAI) regulates and supervises the insurance industry in India.
• Licensing : Insurance companies need to be licensed by IRDAI to operate
in India.
• Product Approval : IRDAI approves insurance products before they are
launched to ensure they comply with regulatory norms and are beneficial to
customers.
• Distribution Channels : Insurance products are distributed through various
channels such as agents, brokers, banks, online platforms, and direct sales.
27
Key Players :
1. Life Insurance Corporation of India (LIC) : Established in 1956, LIC is the
largest state-owned life insurance company in India.
2. Private Insurance Companies : Several private insurers operate in India,
offering a wide range of insurance products and services. Some prominent ones
include ICICI Prudential Life Insurance, HDFC Life, SBI Life, etc.
Benefits of Insurance :
1. Financial Protection : Insurance provides financial security to individuals and
businesses by covering potential losses or liabilities.
2. Risk Mitigation : It helps in mitigating risks associated with life, health,
property, and business operations.
3. Savings and Investment : Certain insurance products, like endowment and
unit-linked insurance plans (ULIPs), offer opportunities for savings and
investment along with insurance coverage.
4. Tax Benefits :Insurance premiums paid towards certain policies are eligible
for tax deductions under Section 80C of the Income Tax Act, 1961.
Challenges :
1. Low Insurance Penetration : Despite significant growth, insurance
penetration (percentage of insurance premiums to GDP) in India remains
relatively low compared to developed economies.
2. Lack of Awareness : Many people in India, especially in rural areas, lack
awareness about insurance products and their benefits.
3. Fraud and Mis-selling : Instances of insurance fraud and mis-selling of
policies remain challenges for the industry, necessitating stricter regulatory
oversight and consumer education.
In essence, insurance plays a crucial role in India's financial landscape, offering
protection, risk management, and financial stability to individuals, families, and
businesses.
28
Techniques for Trading At Stock Market:
Trading in the stock market involves buying and selling financial instruments like
stocks, bonds, options, or commodities with the goal of making a profit. Here are
some techniques commonly used by traders:
1. Day Trading :
• Objective : Profit from short-term price fluctuations within a single trading
day.
• Strategy : Execute multiple trades throughout the day, aiming to capitalize
on small price movements.
• Tools : Technical analysis, chart patterns, and real-time market data are
essential for identifying opportunities.
2. Swing Trading :
• Objective : Capture short- to medium-term price trends, typically lasting a
few days to several weeks.
• Strategy : Enter trades based on anticipated price swings or trends, aiming to
ride the momentum until it reverses.
• Tools : Technical analysis, trend-following indicators, and fundamental
analysis for identifying potential swing trade opportunities.
3. Position Trading :
• Objective : Capitalize on long-term price trends, holding positions for weeks,
months, or even years.
• Strategy : Identify strong fundamental trends or macroeconomic factors and
take long or short positions accordingly.
• Tools : Fundamental analysis, macroeconomic research, and a focus on long-
term market trends.
4. Algorithmic Trading :
• Objective : Automate trading decisions using pre-defined rules and
algorithms to execute trades at optimal times and prices.
• Strategy : Develop algorithms based on technical indicators, statistical
models, or machine learning algorithms to identify trading opportunities.
• Tools : Programming languages (e.g., Python, R), algorithmic trading
platforms, and access to market data and APIs.
29
5. Options Trading :
• Objective : Profit from price movements or volatility in the underlying asset
by trading options contracts.
• Strategy : Employ various options strategies like buying calls or puts, writing
covered calls, or using spreads to capitalize on market movements.
• Tools : Options pricing models, volatility indicators, and understanding of
options Greeks (Delta, Gamma, Theta, Vega).
6. Market Sentiment Analysis :
• Objective : Gauge the overall sentiment of market participants to anticipate
future price movements.
• Strategy : Analyse market sentiment indicators, such as investor surveys,
news sentiment, social media sentiment, or options market sentiment.
• Tools : Sentiment analysis tools, news aggregators, social media monitoring
platforms, and options data analysis tools.
7. Quantitative Trading :
• Objective : Utilize quantitative models and statistical analysis to identify
trading opportunities and optimize trading strategies.
• Strategy : Develop and backtest quantitative models based on historical data,
market patterns, or statistical arbitrage strategies.
• Tools : Quantitative analysis software, statistical programming languages,
historical market data, and access to high-frequency trading platforms.
8. Risk Management :
• Objective : Preserve capital and manage risk exposure to avoid significant
losses.
• Strategy : Implement risk management techniques like position sizing, stop-
loss orders, diversification, and portfolio hedging.
• Tools : Risk management calculators, stop-loss orders, portfolio analysis
software, and risk assessment frameworks.
30
FUNDAMENTAL ANALYSIS :
Fundamental analysis is like getting to know a company inside out before
deciding to invest in its stock. It's all about understanding the value of a
company by looking at big economic factors and small details about how the
company runs. The main idea is to figure out if a stock's price is fair or if it's too
high or too low.
Imagine you want to invest in a business for the long haul, like 3 to 5 years. It's
important to ignore the everyday ups and downs in the stock market and focus
on how the company is doing overall. If a company is strong and doing well, its
stock price tends to go up over time, making money for investors.
Fundamental analysis involves a few steps, like checking how much money the
company makes and spends (that's the profit & loss statement), seeing what it
owns and owes (that's the balance sheet), and looking at how money moves in
and out of the company (that's the cash flow statement). Also, we look at
different financial ratios to get a better idea of how healthy the company is.
There are four main parts to fundamental analysis:

a. Economic Analysis : This means looking at the big picture of the economy
to see how it might affect the company.
b. Industry Analysis : We check out the industry the company is in to
understand its prospects and challenges.
c. Company Analysis : Here, we dive deep into the specific company to see
how well it's managed and how it's doing compared to others in the same
industry.
d. Growth and Value Analysis : This is about finding companies that have the
potential to grow in the future (growth pick) or companies that are
undervalued and might be worth more than their current price (value pick).
31
Intrinsic Value :
Fundamental analysis is a cornerstone method for stock market analysis,
alongside technical analysis. While technical analysts focus on price
movements and charts, fundamental analysis delves deeper to assess a stock's
intrinsic value.
This approach considers various factors that can influence a stock's future price,
including:
• Macroeconomic Factors: The overall health of the economy, interest rates,

government policies, and industry trends all play a role.
• Company-Specific Factors: A company's financial health, management
team, competitive advantages, and future growth prospects are all crucial
aspects.
The Goal: Uncovering Value
Fundamental analysis aims to determine a stock's intrinsic value, which is an
estimate of its true worth based on its underlying fundamentals. Investors then
compare this value to the stock's current market price.
Identifying Investment Opportunities
• Undervalued Stocks: Stocks trading below their intrinsic value can be

potential investments, but only if they exhibit year-over-year (YoY)
growth. Such stocks with positive YoY growth are often called "value
picks."
• Overvalued Stocks: While generally avoided, overvalued stocks can be
considered for further analysis if their price-to-earnings growth ratio (PEG
ratio) falls between 0 and 1.
Financial Ratios: Tools for Comparison

Analysts utilize various financial ratios to compare companies within
an industry or assess a company's performance over time. These ratios
can include:
• Return on Capital Employed (ROCE)
• Debt-to-Equity Ratio
• Enterprise Value to Earnings Before Interest, Taxes,
Depreciation, and Amortization (EV/EBITDA)
32
• Price-to-Earnings Ratio (P/E Ratio)
• Current Ratio
The specific ratios used for comparison may vary depending on the
industry a company operates in. For example, a retail company might
be evaluated differently than a technology company. By employing
fundamental analysis, investors can gain valuable insights into a
company's true value and make informed investment decisions.
COMPANY NAME PE RATIO
TCS 36.25
Infosys 27.24
HCL Tech 38.18
Wipro 29.97
LTIMindtree 34.28
Tech Mahindra 54.92
Oracle Fin Serv 36.04
Persistent 59.18
MphasiS 30.59
KPIT Tech 70.02
COFORGE LTD. 37.56
Birlasoft 36.1
Cyient 44.93
Sonata 48.6
Affle India 52.9
Happiest Minds 49.4
Intellect Desig 86.43
Zensar Tech 25.95
Latent View 61.4
Route 26.5
Mastek 63.71
SECTOR AVERAGE 45.2452381
Table No.04 PE RATIO
33
VALUE PICK
BELOW REVENUE REVENU PROFIT PROFIT INTERPRETATI

COMPANY
AVG(UNDERVALUED) MARCH 2022 E 2023 2022 2023 ON
TCS 36.25 1,91,754 2,25,458 38,449 42,303 R↑,P↑ So buy

Infosys 27.24 1,21,641 1,46,767 22,146 24,108 R↑,P↑ So buy
HCL Tech 38.18 85,651 1,01,456 13,523 14,845 R↑,P↑ So buy
Wipro 29.97 79,312 90,488 12,243 11,366 R↑,P↓ So buy
LTIMindtree 34.28 26,109 33,183 3,950 4,410 R↑,P↑ So buy
Oracle Fin Serv 36.04 5,221 5,698 1,889 1,806 R↑,P↓ So buy
MphasiS 30.59 11,961 13,798 1,431 1,638 R↑,P↑ So buy
COFORGE LTD. 37.56 6,432 8,015 715 745 R↑,P↑ So buy
Birlasoft 36.1 4,130 4,795 464 332 R↑,P↓ So buy
Cyient 44.93 4,534 6,016 522 514 R↑,P↓ So buy
Zensar Tech 25.95 4,244 4,848 422 328 R↑,P↓ So buy
Route 26.5 2,002 3,569 170 333 R↑,P↑ So buy
Table NO05
If two Cumulative years Revenue and Profit both are Increasing by previous year
so we will buy the Stock if one of them is decreasing again we can buy the stock.
If both Revenue Profit are decreasing we will not buy the stock
GROWTH PICK ( Between 0 - 1.2)
COMPANY ABOVE AVG(OVERVALUED) PEG RATIO
Tech Mahindra 54.92 -1

Persistent 59.18 3.3
KPIT Tech 70.02 1.2
Sonata 48.6 -2.3
Affle India 52.9 6.1
Happiest Minds 49.4 13.4
Intellect Desig 86.43 1.8
Latent View 61.4 -10.5
Mastek 63.71 -4.4
Table NO.06
If PEG Ratio is in between 0 – 1.2 then the stock is Growth Pick as we can see
PEG Ratio for KPIT is 1.2 so this is an Growth Pick Stock.
34
Under-valued Companes
Net
Profit
Net
Net Rises or
Revenue as on Revenue as on Revenue Rises or falls Revenue Profit as Net Profit Value Pick-up
Company Name P/E Ratio Profit as falls as
Mar 2022 Mar 2023 as on Privious Year change in % on Mar change in % Stock ↑
on 2023 on
2022
Privious
Year
HCL Tech 38.12 85,651 1,01,456 Rises 18.4528% 13,523 14,845 Rises 9.7759% ↑
COFORGE LTD. 37.55 6,432 8,015 Rises 24.6113% 715 745 Rises 4.1958% ↑
TCS 36.34 1,91,754 2,25,458 Rises 17.5767% 38,449 42,303 Rises 10.0237% ↑
Adroit Infotech 36.05 6.37 22.45 Rises 252.4333% 0.62 3.78 Rises 509.6774% ↑
Oracle Fin Serv 35.75 5,221 5,698 Rises 9.1362% 1,889 1,806 Falls -4.3939% ↑
LTIMindtree 34.29 26,109 33,183 Rises 27.0941% 3,950 4,410 Rises 11.6456% ↑
Innovana 32.72 58 79 Rises 36.2069% 21 27 Rises 28.5714% ↑
Zensar Tech 30.53 11,961 13,798 Rises 15.3582% 1,431 1,638 Rises 14.4654% ↑
Wipro 29.99 79,312 90,488 Rises 14.0912% 12,243 11,366 Falls -7.1633% ↑
Infosys 27.26 1,21,641 1,46,767 Rises 20.6559% 22,146 24,108 Rises 8.8594% ↑
Mindteck 26.11 299 337 Rises 12.7090% 33 21 Falls -36.3636% ↑
Zensar Tech 26.02 4,244 4,848 Rises 14.2319% 422 328 Falls -22.2749% ↑
Sasken Tech 22.25 434 447 Rises 2.9954% 128 99 Falls -22.6563% ↑
Expleo Solution 20.67 743 903 Rises 21.5343% 68 134 Rises 97.0588% ↑
Saksoft 9.75 480 666 Rises 38.7500% 63 82 Rises 30.1587% ↑
63 Moons Tech 7.7 160 290 Rises 81.2500% -56 -27 Rises -51.7857% ↑
Table No.07
If PE Ratio for a Stock is Less than the Industry PE Average then the Stock is
Under-valued and those are Value Pickup Stocks. And if Stock PE Ratio is
more than Industry PE average then stock is Over Valued Stock
Over-valued Companes
Company Name P/E Ratio
Intellect Desig 86.8

Saksoft 81.78
NINtec SYSTEMS 78.84
Silver Touch Te 66.62
Mastek 63.86
Tata Elxsi 60.59
Persistent 59.16
Softtech Engine 57.06
Ducon Infratech 55.63
Tech Mahindra 54.84
Securekloud Tec 49.45
Newgen Software 47.41
G-Tec Jainx 46.03
Cyient 44.72
Table No.08
35
Comparison of NAV and Index :
NAV reflects the fund's holdings, not individual stock performance: The NAV
represents the price per share of the mutual fund, which is calculated by dividing
the total value of all the underlying assets in the fund by the number of shares
outstanding. Since the fund tracks a particular index, the NAV reflects the
weighted average price of all the securities in that index. So, the NAV gives you
an idea of the overall value of the fund's holdings at a specific point in time, but
it doesn't directly tell you how any particular stock within the index is performing.
Index shows broader market movement: The index tracks the performance of a
basket of securities, typically chosen to represent a specific market segment or
the entire stock market. The image you sent appears to show a time series graph
of the index price, which reflects how the value of that basket of stocks has
changed over time. This can be helpful to understand how the overall market or
a particular sector is performing. Since the fund aims to track the index, by
looking at the index's movement over time, you can also indirectly gauge how the
fund, as a whole, is performing relative to the market benchmark.
For example, imagine the index represents the technology sector, and the stock
market experiences a downturn. If the NAV of the mutual fund that tracks the
technology sector index falls along with the index price, it suggests the fund is
performing as expected relative to the broader market movement in the
technology sector. However, if the NAV falls more than the index price, it might
indicate that the fund manager has underperformed by selling off stocks at a loss
or failing to pick winning stocks within the technology sector.
• Identify potential outperformance: If the NAV consistently tracks closely with

the index, it suggests the fund is performing as expected. However, if there
are significant deviations between the NAV line and the index line, it might
indicate the fund's underperformance or outperformance relative to the index.
• NAV can show expense ratio impact: The expense ratio is a fee charged by
the mutual fund to manage the fund. A higher expense ratio can cause the
NAV to trail the index over time.
Some additional things to consider when you're analysing a stock:
• Look beyond the fund: While the index and NAV can be useful for
understanding the fund's performance, they don't necessarily tell you how
individual stocks within the index are faring. You'd need to research the
specific companies you're interested in to make informed investment
decisions.
36
• Company financials: Analyse the company's financial health by looking at
its financial statements, including earnings reports, balance sheets, and cash
flow statements.
• Competitive advantage: Understand what makes the company unique and
how it stacks up against its competitors.
• Market conditions: Consider how the overall stock market and the specific
sector the company operates in are performing.
• Investment goals: Determine your investment goals and risk tolerance. Are
you looking for short-term gains or long-term growth? How much risk are
you comfortable with?
Comparison of NAV and Index

1050
1000
950
900
850
800
24
24
24
24
24
24
24
24
24
24
24
2/
2/
3/
3/
3/
3/
3/
4/
4/
4/
4/
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
18
25
03
10
17
24
31
07
14
21
28
INDEX PRICE NAV (ASSET ALLOCATIUON IN CR)
Fig no.03
37
Technical Analysis :
About the Fund Date of Inception 25th April 2024
OBJECTIVE: To generate long-term capital appreciation for policyholders by investing in fundamentally
strong and liquid large-cap companies.
STRATEGY: To build and actively manage an equity portfolio of fundamentally large-cap solid stocks
in terms of market capitalization by following an in-depth research-focused investment approach. The
fund will attempt to invest in the Private Banking sector adequately. The fund will invest in companies
with financial strength, robust, efficient & visionary management, enjoying competitive advantage,
good growth prospects & adequate market liquidity. The fund will adopt a disciplined yet flexible long-
term approach towards investing, focusing on generating long-term capital appreciation. The non-
equity portion of the fund will be invested in highly rated money market instruments and fixed
deposits. The fund will also maintain a reasonable level of liquidity.
NAV as on 25td April 2024: 11.15 BENCHMARK: NAV vs Nifty 50
Asset held as on 25th April 2024: 10 cr FUND MANAGER: Mr. PRASANNA KAWARE
Asset Allocation
5.00% 3.50%
6.00% 15.50%
7.00%
8.00% 12.50%
9.00%
Equitas Bank Holdings 12.00%
10.00%
11.50%
Kotak Mahindra 15.50% Kotak Mahindra Equitas Bank
AU Small Financ HDFC Bank
Equitas Bank 12.50% ICICI Bank City Union Bank
IndusInd Bank IDBI Bank
Au Small Finance 12.00% Axis Bank Federal Bank
HDFC Bank 11.50% Yes Bank
ICICI Bank 10.00%

City Union Bank 9.00%
IndusInd Bank 8.00% Comparison of NAV and Index
IDBI Bank 7.00% 1050
Axis Bank 6.00% 1000
Federal Bank 5.00% 950
Yes Bank 3.50% 900
Table No.09 850
800
24
24
24
24
24
24
24
24
24
24
24
2/
2/
3/
3/
3/
3/
3/
4/
4/
4/
4/
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
/0
18
25
03
10
17
24
31
07
14
21
28
INDEX PRICE NAV (ASSET ALLOCATIUON IN CR)
38
Technical Analysis :
Is a method for forecasting the direction of prices in financial markets by studying historical
market data, primarily price and volume. Technicians believe that by analysing past price
movements and trading activity, they can identify patterns that can help predict future trends.
A deeper dive into the core concepts of technical analysis:
• Focus on price and volume : Technical analysts rely on charts to visualize

price movements and volume fluctuations over time. These charts can depict
a variety of financial instruments, including stocks, bonds, commodities,
currencies, and futures contracts. By studying the price movements on a chart,
technicians can identify trends, such as uptrends, downtrends, and sideways
trends. They can also gauge the strength of a trend by analysing the volume of
trading activity. Higher volume typically suggests a stronger trend, while
lower volume can indicate a trend that may be losing momentum.
• Identifying patterns : By analysing the charts, technicians look for recurring
patterns that might signal potential future price movements. These patterns
can be categorized into two main groups: chart patterns and candlestick
patterns.
- Chart patterns are formed by the price action itself over time on a chart. Some
common chart patterns include head and shoulders, double tops and bottoms,
triangles, wedges, and flags. Each pattern has its own implications for future
price movements, and technicians use their knowledge of these patterns to
identify potential entry and exit points for trades.
- Candlestick patterns are formed by the price movements within a single
trading period, typically a day, week, or month. These patterns are visualized
using candlesticks, which are bars on a chart that depict the opening price,
closing price, high price, and low price for the trading period. Some common
candlestick patterns include hammer, hanging man, doji, engulfing patterns,
and piercing patterns. Like chart patterns, candlestick patterns can provide
clues about potential future price movements.
• Technical indicators : These are mathematical calculations applied to price

and volume data to provide insights into trends, momentum, and
support/resistance levels. Technical indicators are often used in conjunction
with chart and candlestick patterns to confirm signals or provide additional
information about the market. Some popular technical indicators include
39
A. Moving averages : Moving averages smooth out price data by creating an
average price over a specific number of trading periods. Technicians can use
different moving averages to identify trends, gauge momentum, and spot
potential support and resistance levels.
Fig No.10 Moving Averages
B. Relative Strength Index (RSI) : The RSI is a momentum indicator that

measures the speed and magnitude of recent price movements. It is typically
displayed as a line on a scale of 0 to 100, with values above 70 generally
considered overbought and values below 30 considered oversold. Technicians
can use the RSI to identify potential reversal points in the market.
Fig No.11 Relative Strength Index (RSI)
40
C. Bollinger Bands : Bollinger Bands are a volatility indicator that consists of a
moving average (typically the 20-day moving average) with two bands plotted
above and below it. The width of the bands expands and contracts based on
market volatility. Technicians can use Bollinger Bands to identify potential
breakout opportunities when the price moves outside the bands or to gauge
changes in volatility.
Fig No.12 Bollinger Bands
41
D. Stochastic RSI :
It is one of the most important and widely used tools for technical analysis in
securities trading. It compares a particular closing price of a security to a range
of its prices over a certain period. We can also manipulate the sensitivity of this
indicator by adjusting the time. Stochastic is like MACD in several ways, such as
the indication of calls is almost the same as that of MACD. It also consists of two
lines: the blue line, which is also called the stochastic line of %k, and the orange
line, which is also called the baseline, and the moving average of the stochastic
line.
The criteria for buying and the short call are also similar. Whenever the blue line
cuts the baseline from above, we are predicting that prices will fall, so it is an
indication to short, and when the blue line cuts the baseline from below, we are
predicting that the prices will rise- a buy call. The main point to remembering this
indicator is that these cut from above or below only matter when they are in a
specific area of that graph, to be specific below 20 or above 80. If there is a line
crossing in these areas, that cross will only be considered as a legitimate call. We
were asked to check the accuracy of stochastic calls in a similar way as we have
done for other indicators.
Fig No.13Stochastic RSI
42
E. Super Trend :
When doing intraday trading, you must open the chart of the specific stock you watch to use
this indicator. You must also set a time interval of 5 minutes. Any reliable charting software
will work. Insert Super Trend onto the chart after it has been opened, keeping the settings at 5.
Additionally, you can insert your preferences. However, you shouldn't avoid placing your
stop loss while utilizing this indicator. You can precisely place your stop loss at the green signal
line for a long position. Put it on the red indicator line to take a short position. Combining a
super trend with the stop-loss pattern is the best method for maximizing trading wealth. A
period of 5 is used by default as the parameter. It's important to remember that any changes to
these figures may have an impaimpacter the trend indicator is used. For any trading indication,
there is no ideal setup. Additionally, the more parameters you alter, the more over-optimized
your trading system may become at that time.
You should be aware that the indicator may be more responsive to price changes with
smaller settings, which would result in more signals. Higher settings will reduce market noise
but could result in fewer trade signals.
Fig No.14 Super Trend
F. Volume Weighted Average Price :
The VWAP, which measures the average price a security has traded at during
the day based on both volume and price, is significant because it gives traders
information about a security's trend and worth. Because it informs traders about
a security's trend and value, the VWAP, which calculates the average price a
deposit has been traded throughout the day based on both volume and price, is
essential. The VWAP calculation is completed using charting software, and the
43
results are superimposed on the chart. This display is a line, like other moving
averages. That line is determined as follows:
Pick a time frame to work with (such as a tick chart, one minute, five minutes,
etc.).
In essence, to identify when buying is appropriate, double this typical price by

the volume for that period as the green candle crosses the line from the bottom.
Then you will get a number called TPV.
Basically, multiply this average price by the volume for that period to determine
when it is time to buy when the green candle crosses the line from the bottom.
You will then receive a value known as TPV. Multiply the volume for that period
by this typical price. You will then receive a value known as TPV. Compile a
cumulative TPV, or running total, of the TPV data. The first period won't have a
prior value, thus this is achieved by repeatedly adding the most recent TPV to
the previous values. With time, this figure should become more noticeable.
Keep track of the cumulative volume in a running total. To accomplish this,

keep adding the most current volume to the one before it. As the day goes on,
this figure should likewise become increasingly significant.
Compile a cumulative TPV, or running total, of the TPV data. The first period
won't have an initial value, thus this is achieved by repeatedly adding the most
recent TPV to the previous values. With time, this figure should become more
noticeable. Keep track of the cumulative volume in a running total. Add the most
current volume to the one before it to accomplish this. As the day goes on, this
figure should likewise become increasingly significant.
Fig No.15 Volume Weighted Average Price
44
Pivot Point Standard :
Pivot points can be useful intraday indications for these if you trade in commodities,
equities, or futures. Because they are immobile and stay fixed at the same values
throughout trading, pivot points vary from other indicators like moving averages and
oscillators. It is simpler for traders to plan their trades using these levels because they are
fixed. S1, S2, or R1, R2 are levels that can be used as target prices or stop-loss levels.
Additionally, traders frequently mix pivot points with several trend indicators. Pivot
points are significant for several reasons. These are the factors that make traders adore
pivot points. It's only possible with intraday trading. The pivot point algorithm calculates
the data for the current trading day using information from the previous trading day.
Therefore, the levels on the chart only apply to the current time. Precise indications for
intraday trading are pivot points.
The pivot point's data becomes extremely detailed because it only applies to one trading
day. Therefore, it is only appropriate for brief periods. The ideal time frames for the pivot
point indicator are one, two, and five minutes. Due to this, day traders favor pivot points
more.
Fig No.16 Pivot Point Standard
45
Long Term View and Short Term Vivew :
Technical analysis is the examination of past price movements to forecast
future price movements. Technical analysts are sometimes referred to as
chartists because they rely almost exclusively on charts for their analysis.
Fig No. 17 Long Term View
Fig No. 18 Short Term View
46
TRENDLINES
Technical analysis is built on the assumption that prices trend. Trendlines
are an important tool in technical analysis for both trend identification and
confirmation. A trendline is a straight line that connects two or more price
points and then extends into the future to act as a line of support or
resistance. Many of the principles applicable to support and resistance
levels can be applied to trendlines as well.
Fig No. 19Down Trendline
Fig No. 20 Up Trendline
47
LONG TERM TECHNICAL ANALYSIS :
A. Rounding Bottom :
The rounding bottom is a long-term reversal pattern best suited for weekly
charts. It is also called a saucer bottom, representing a long consolidation period
that turns from a bearish bias to a bullish tone.
• Prior Trend: There must be a prior tendency to reverse for a pattern to be

considered a reversal. A rounding bottom's low should signal a new low or
reaction low. In reality, there are times when the common is established
months in advance, and the security trades sideways before exhibiting the
pattern. The low of the rounded bottom may not be the lowest low during the
past few months when it ultimately develops.
• Decline: The first part is a decline leading to the pattern’s low. This decline
will take on different forms: some are pretty jagged, with several reaction
highs and lows, while others trade lower more linearly.
• Low: The rounded bottom's low point can approximate a "V" shape, but it
shouldn't be too acute and take several weeks to form. Prices are on a long-
term drop, therefore there is a chance that a selling climax may result in a
lower jump.
• Advance: The pattern's right half, which is the advance from the lows, should
take roughly the same amount of time as the drop that came before it. A
rounded bottom's validity could be questioned if the advance is too abrupt.
• Breakout: When the pattern crosses above the response high that signalled
the start of the drop at the beginning of the pattern, bullish confirmation is
given. This level may become support, as typical of most resistance
breakthroughs.
• Volume: A perfect volume pattern would have high levels at the start of the
decline, low levels after the fall, and rising levels during the advance. On the
fall, volume levels are not particularly significant, but on the advance and,
ideally, on the breakout, volume should rise.
A rounding bottom could be considered a head and shoulders bottom without

clearly distinguishable shoulders. The head, which is situated in the middle of the
design, stands in for the low. Similar volume patterns are present, and a resistance
breakout provides confirmation. On the rounding bottom, symmetry is preferred,
but the left and right sides do not have to be equal in time or slope.
48
Fig No. 21 Rounding Bottom
49
B. Cup with Handle :
The handle and the cup. The cup takes shape following an advance and has a
bowl-like or rounded bottom. The handle and a trading range on the right side of
the cup are constructed as it is finished. When the handle breaks out of its trading
range again, the last advance will continue.
• Trend : A past trend must still be present to be considered a continuation
pattern. The movement should ideally be a few months old and still needs to
develop fully the less likely it is that the pattern heralds a continuation or less
upward potential, the more established the trend.
• Cup : The cup should have a "U" shape and have a rounded bottom or a bowl-
like appearance. A base with a "V" shape would be deemed too abrupt to
qualify. The cup is a consolidation pattern with reliable support at the bottom
thanks to the "U"'s softer shape. Equal highs should be on both sides of the
cup would make for the ideal pattern, but this is only sometimes the case.
• Vase Depth : The depth of the cup should ideally retrace at most a third of the
prior progress. However, the retracement might be between 1/3 and 1/2 due to
choppy markets and overreactions. The maximum retracement in extreme
circumstances might reach 2/3.
• Handle : The pullback that creates the handle occurs after the peak on the right
side of the cup. This handle can have several shapes, such as a short pullback,
downward-sloping flag, or pennant. The handle, which can retrace up to one-
third of the rise of the cup but typically not more, signifies the last
consolidation or pullback before the major breakout. The more bullish the
structure and strong the breakout, the lower the retracement is. It is sometimes
wise to hold off until a break above the resistance line created by the cup's
highs.
• Duration : The cup may last up to six months; on weekly charts, it may even
last longer. The handle can take one week to many weeks to complete, but it
is best to do so in one to four.
• Volume : On the breakout over the handle's resistance, there should be a large
spike in volume. Measure the distance from the right peak of the cup to the
cup's bottom to get the expected advance following breakout.
As with most chart patterns, capturing the pattern's essence is more crucial
than its specifics. The handle is a brief pullback followed by an extending
breakout, while the cup is a bowl-shaped consolidation. Even while a cup
retracement of 62% might not meet the pattern specifications, a stock's pattern
might nonetheless represent the idea of the Cup with a Handle.
50
Fig No. 22 Cup with Handle
51
C. Bump and run reversal:
The basis for drawing the trendline. During this phase, prices advance orderly,
with no excess speculation. The trendline should be moderately steep. If it is too
steep, then the next bump is likely to be insignificant enough. If the trendline is
not steep enough, the subsequent trendline break will occur too late. Bukowski
advises that an angle of 30 to 45 degrees is preferable. The angle size will depend
on the scaling (semi-log or arithmetic) and the chart size. As its name suggests,
the Bump and Run Reversal (BARR) is a reversal pattern that develops after
excessive speculation pushes prices up too quickly. T Thomas Bukowski created
the chart pattern and first appeared in the June 1997 issue of Technical Analysis
of Stocks and Commodities. It is also found in his most cu book, the
Encyclopaedia of Chart Patterns. The Bump an pattern's original name was the
Bump and Run Formation, or Barfield
• Phase : The lead-in phase, which might span a month or longer, is the first
phase of the pattern. With a visual evaluation, it is probably simpler to
determine whether the trendline is sound.
• Phase of the Bump : The bump forms as prices veer further off the lead-in
trendline. The angle of the trendline continuing up from the advance of the
bump should ideally be roughly 50% bigger than the angle of the trendline
extending up from the lead-in phase. This would, roughly equal an angle
between 45 and 60 degrees. A visual inspection will do if measuring the angles
is not possible.
• Validity of a Bump : The Bump must show a short-lived speculative advance.
To establish the degree of speculative Ness in the bump, Bukowski created a
"arbitrary" measuring method. At least twice as much space should separate
the highest high of the bump from the lead-in trendline as there should be
between the top trendline and the highest high of the lead-in phase. The lead-
in trendline can be reached by drawing a vertical line from the highest highs.
The example that follows is given.
• Bump rollover : As soon as speculative activity stops, prices peak, and a top
forms. A modest double top or a series of peaks that fall can occasionally form.
The right half of the bump forms as prices start moving toward the lead-in
trendline.
• Volume : As the stock advances during the lead-in phase, volume is usually
average and sometimes low. When the speculative passage begins to form the
left side of the bump, the book expands as the passage accelerates.
• Run Phase : The run phase begins when the pattern breaks support from the
lead-in trendline. Prices will sometimes hesitate or bounce off the trendline
before breaking through. Once the break occurs, the run phase takes over, and
the decline continues.
52
• Support turns resistance : A retracement sometimes tests the newfound
resistance level after breaking the trendline. The reaction lows within the
bump can also identify potential support-turned-resistance level scan also
be identified by the reaction is lows within the bump.
The Bump and Run Reversal pattern can be applied to daily, weekly or
monthly charts. As stated above, the way is designed to identify
unsustainable speculative advances for an extended period. The subsequent
decline can be just as ferocious because prices rise quickly to form the
bump’s left side.
Fig No. 23 Bump and run reversal
53
D. Head and shoulders pattern:
After an uptrend, a head and shoulders reversal pattern develops, and its
completion signifies a change in trend. Three peaks may be seen in the pattern,
the centre peak (called the head) being the highest and the two outer peaks (called
the shoulders) being low and about equal. Each peak's response lows can be
linked together to create a neckline or a support.
The head and shoulders reverse pattern includes a left shoulder, head, right
shoulder, and neckline, as the name suggests. We'll examine each component
separately before putting them all together with examples.
• Prior Trend : For this to be a reversal pattern, it must be proven that there was
an earlier rise. There could not be a head and shoulders reversal pattern or any
reversal pattern if there was no earlier uptrend to reverse.
• Left Shoulder : While in an uptrend, the left shoulder forms a peak that marks
the high point of the current trend. After this peak, a decline ensues to
complete the shoulder formation (1). The fall’s low usually remains above the
trendline, keeping the uptrend intact.
• Head : Starting at the low of the left shoulder, a progress that surpasses the
preceding high marks the top of the head. The second point of the neckline (2)
is where the subsequent decline's low is located after the peak. The uptrend is
frequently threatened when the drop trough crosses the trend line.
• Right Shoulder : The right shoulder is formed by moving from the head's low
point. This peak, which has a lower high than the head, typically coincides
with the left shoulder's high. Even though symmetry is desired, there are
situations when the shoulders look off. The neckline should be broken by the
right shoulder's peak's decline.
• Neckline : The neckline is created by joining low points 1 and 2. The left
shoulder is finished at low point 1 and the head is only being started. The head
ends at low point 2 and the right shoulder starts. The neckline may slope up,
down, or be horizontal depending on how the two low points are related. The
neckline's slope will determine the pattern’s bearish; a downward slope is
more bearish than an upward slope. The neckline can occasionally be formed
using many low points.
Volume plays a key function in confirmation as the head and shoulders pattern
develops. By evaluating volume levels, volume can be measured as an indication
(OBV, Chaykin Money Flow). The volume during the advance of the left
shoulder should ideally, but only seldom, be higher than during the advance of
the head. This drop in volume and the new highs that make up the head are a
cautionary indicator. The next red flag appears when loudness rises as the head
moves away from its apex. Lasting confirmation occurs when volume keeps
rising while the right shoulder declines.
54
Fig No. 24 Head and shoulders pattern
55
E. Head and shoulder bottom pattern :
The head and shoulders bottom are sometimes referred to as an inverse head
and shoulders. The pattern shares many common characteristics with its
comparable partner but relies more on volume patterns for confirmation. The
head and shoulders bottom occurs after a decline and signifies a trend change
when it is completed.
There are three successive troughs in the pattern, the two outside troughs
(shoulders) being shallower than the centre trough (head), which is the deepest.
The two shoulders should be roughly identical in size. The response highs in the
pattern's midsection might be linked together to provide resistance or a neckline.
The price movement that forms the head and shoulders top and bottom patterns
is essentially the same but reversed. The difference between the two is how
volume is used. Book is generally more critical in bottom forms than in top
formations. While a head and shoulders top might benefit from more importance
on the neckline breakout, a bottom would need it. We'll examine each component
of the design one at a time, keeping volume in mind, before assembling it.
• Prior Trend: For this to be a reversal pattern, it must be proven that there was
a previous downturn. A head and shoulders bottom cannot emerge without a
prior downturn to reverse.
• Left Shoulder: While in a downtrend, the left shoulder forms a trough that
marks a new reaction low in the current trend. After creating this trough, an
advance ensues to complete the left shoulder formation.
• Head: The low point of the head is formed by a decrease that starts from the
left shoulder's high and exceeds the previous low. The succeeding advance's
high creates the second point of the neckline (2) after making a bottom.
Sometimes the high of the passage deviates from a downtrend line, casting
doubt on the strength of the decline.
• Right Shoulder: The right shoulder is formed as the neckline descends from
the height of the head. This low is typically in line with the left shoulder’s low
and is always higher than the head. While symmetry is ideal, it is the right
shoulder can beer lower, wider, or narrower on occasion.
• Neckline: The neckline forms by connecting reaction highs 1 and 2. The right
shoulder begins at Reaction High two and ends at the head. The neckline can
slope up, slope down and be horizontal depending on how the two response
highs are related to one another. The neckline's slope will determine the
pattern’s bullish; an upward slope is more bullish than a downward slope.
• Volume: While it is critical to the head and shoulders bottom, volume is also
important to the head and shoulders top. With the required volume expansion,
the reliability of any breakout is maintained. Volume can be quantified by
56
looking at the absolute levels connected to each peak and trough or by using
an indicator (OBV, Chai kin Money Flow).
The early half of the pattern's volume levels are less significant than the second
half. There is typically many volumes and strong selling pressure on the left
shoulder dip.
The intensity of selling can continue during the decline that forms the head’s low.
After this low, subsequent volume patterns should be overseen to look for
expansion during the advances. The advance from the head’s low should show
increased volume and/or better indicator readings (e.g., CMF > 0 or strength in
OBV). B
The right shoulder should decline with light volume once the response high
forms, the second neckline point. Following a gain, profit-taking is typical.
Analysis of volume can assist differentiate between typical profit-taking and
intense selling pressure. On the downturn, indicators like CMF and OBV should
hold their strength. Volume must increase during the advance and the breakout
for the breakout to be regarded as legitimate.
Fig No 25 Head and shoulder bottom pattern
57
F. Double top:
After a protracted uptrend, the double top is a notable reversal pattern that
develops. The pattern, as its name suggests, consists of two about equal peaks
that are spaced apart by a slight trough.
The traditional double top, though there may be variants, signifies a transition
from a bullish to a negative trend that is at least intermediate in duration. Along
the way up, numerous potential double tops may develop, but a reversal cannot
be confirmed until crucial support is broken. We shall examine the formation's
crucial locations before going through an example to help with clarification.
• Prior Trend : Any pattern that reverses a trend must have that trend to do so.
A major rise lasting several months should exist in the case of the double top.
• First Peak: The first peak should represent the trend's highest point. As a result,
the first high is quite typical, and the current uptrend is not in danger or in
doubt.
• Trough : Following the first peak, there is normally a 10% and 20% decrease.
The volume on the drop following the initial high is typically insignificant.
Sometimes the lows are rounded or prolonged, which can indicating demand.
• 4.Second peak : Usually with minimal volume, the advance off the lows
encounters opposition from the prior high. Expect resistance to the previous
high. The only possibility that remains even after hitting resistance is a double
top. Confirmation of the pattern is still required. The time between peaks
might range from a few weeks to many months, with 1-3 months being the
typical time. There is some wiggle room even though precise peaks are
preferred. A peak that is within 3% of the prior high is typically sufficient.
• Peak drop : The second peak's subsequent decline should be characterised by
an increase in volume and/or a quicker descent, sometimes punctuated by one
or two gaps. Such a drop demonstrates that supply and demand are outpacing
one another.
• Support break : The double top and trend reversal are still not complete even
after the price has fallen to support. The double top is complete when support
from the low point in between the peaks is broken. This should also happen
with a rise in volume and/or a quickening of the descent.
• Support turned resistance : When support is broken, resistance may now be
there, and occasionally a reaction rally will test this new resistance level. An
opportunity to short a position or quit a position may be presented by such a
test.
• Price goal : Deduct the distance from the support break to the top to determine
a price goal. This would imply that the potential drop would be more serious
the larger the formation.
58
Fig No 26 Double top
59
G. Double bottom :
After a protracted slump, a notable reversal pattern called the double bottom
emerges. As its name suggests, the pattern consists of two about equal troughs
that follow each other, with a moderate peak in the middle.
The classic double bottom typically signals an intermediate or long-term change
in trend, though there may be variances. Along the journey down, numerous
potential double bottoms may occur, but a reversal cannot be verified until major
resistance is overcome. We'll examine the formation's essential components
before going through an example to help make things more transparent. Any
reversal pattern requires an earlier trend to reverse it. For the double bottom to
occur, there needs be a major downward trend lasting several months.
• First Trough : The current trend's lowest point should be shown by the first
trough. The initial track is typical, and the downward tendency is still present.
• Peak : An advance usually runs between 10% and 20% after the initial trough.
A rise in volume on the passage from the initial drain could indicate early
accumulation even if it is often insignificant. The hesitation in descending
occasionally causes the peak's high to be a little rounded or drawn out. This
hesitancy shows that demand is rising but is still insufficient to cause a
breakout. Any reversal pattern requires an earlier trend to reverse it. For the
double bottom to occur, there needs to be a significant or downward trend
lasting several months.
• First Trough : The current trend's lowest point should be shown by the first
trough. The initial track is typical, and the downward tendency is still present.
• Peak : An advance usually runs between 10% and 20% after the initial trough.
A rise in volume on the passage from the initial track could indicate early
accumulation, even if it is often insignificant. The hesitation in descending
occasionally causes the peak's hight be slightly rounded or drawn out. This
hesitancy shows that demand is rising but is still insufficient to cause a
breakout.
• Breaking the resistance : The double top and trend reversal are still
incomplete, even after the price has increased to the opposition. The double
bottom is complete when resistance from the highest point between the
troughs is broken. This ought to happen with a rise in volume and/or speed.
Broken resistance becomes prospective support, and occasionally the first
corrective tests this newly discovered support level. A similar test may present
a second opportunity to close a short position or open a long one.
60
• Price Target : To calculate a target, add the separation between the resistance
breakout and the lows of the dip. This would imply that the potential progress
would increase with the size of the formation.
• It's always crucial to remember that the double bottom is a medium- to a long-
term reversal pattern and won't appear immediately. Even if formation in a
few weeks is conceivable, having at least four weeks pass between lows is
recommended. The shape of bottoms typically takes longer than that of tops.
Therefore, patience is frequently a virtue. Give the pattern time to grow, then
search for the right hints.
Fig No 27 Double bottom
61
Medium-Term Technical Pattern / Chart Analysis :
Symmetrical Triangle :
The symmetrical triangle, which is also known as a coil, typically develops as
a continuation pattern during a trend. At least of two lower highs and two higher
lows can be seen in the pattern. The symmetrical triangle is formed when these
locations are linked together because the lines converge as they are extended.
Another way is to think of it is as a wedge that starts out wide and gradually gets
narrower. Symmetrical triangles can indicate significant trend reversals, but more
frequently they indicate the continuation of the current trend. What type of
pattern, continuation, or reversal it may be, only a valid breakout may reveal the
direction of the next significant move. We will look at each component of the
symmetrical triangle separately before giving an example using Conseco.
• Trend : A trend must already be in place to be considered a continuation

pattern. The symmetrical triangle denotes a time of consolidation prior to the
trend's continuation following the breakout, and the trend should be at least a
few months old.
• A trendline must have at least two points to form, and a symmetrical triangle
needs two trendlines As a result, a configuration must have a least of 4 points
to be considered a symmetrical triangle. The upper line should slope
downward, and the second high (high 4) should be lower than the first high
(high 2). The lower line should slope upward and the second low, (3) should
be higher than the first low, (1).
• Volume : The volume should diminish as the symmetrical triangle extends and
the trading range contracts. This refers to the quiet before the sorm or the
tightening consolidation before the breakout.
• Duration : The symmetrical triangle can extend for weeks or months. I The
pattern is usually considered a pennant if it is less than 3 weeks Typically, the
duration is about 3 months.
• Breakout Time : The ideal breakout point comes halfway through or near the
end of the pattern's development. The pattern's duration can be calculated by
going backwards from the lower trendline's base to its apex (where the upper
and lower lines converge). A break close to the apex may be unimportant,
while one before the halfway point may be hasty. After all, a breakout must
happen eventually as the apex draws near.
• Breakout Direction : Only after the break has taken place can the breakout's
future course be ascertained. It may seem intuitive, but attempting to predict
the flight's direction can be risky. Even while a continuation pattern should
break out in the long-term trend's direction, this is not always the case.
• Breakout Confirmation : A break must be on a closing basis in order to be
valid. To ensure legitimacy, some traders use a price (3% break) or time
62
(maintained for 3 days) filter. When an upside breakout occurs, the volume
should increase along with the breakout.
• Return to Apex : The apex may serve as future support or resistance after the
breakout (up or down). Before continuing in the breakout's direction, the price
will occasionally retrace to the breakout's apex or a nearby level of support or
resistance.
• Price Objective : There are two ways to gauge the size of the move following
the breakout. First, measuring the symmetrical triangle's length can determine
the breakout point. Second, a parallel trendline can be created.
This line's extension will serve as a potential breakout target. According to

Edwards and Magee, about 75% of symmetrical triangles are continuation
patterns, and the remaining 25% are reversal patterns. Analysis of reversal
patterns can be challenging, and false breakouts are frequent. Nevertheless, we
must wait for the flight to take off rather than predicting its course.
Look for gaps, rapid price movement, and volume for confirmation in further
examination of the breakout. For upward breakouts, confirmation is important.
Prices occasionally make a reaction move back to the apex's breakout point before
continuing to move in the direction of the flight. A second opportunity to join
with a higher reward-to-risk ratio may be provided by this return. Potential reward
price objectives discovered by measurement and parallel trendline extension are
only intended to serve as general guides. Technical analysis is dynamic,
necessitating continuous evaluation. In the aforementioned first example, SUNW
may have reached its target (42) in a short period of time, but the stock showed
no sign of slowing down and climbed past 100 in the months that followed.
Fig 28 Symmetrical Triangle
63
Ascending Triangle :
As a continuation pattern, the ascending triangle is a bullish formation that
typically appears during an uptrend. Although ascending triangles are often
continuation patterns, they can occasionally develop as reversal patterns near the
end of a decline. Ascending triangles are bullish patterns that show accumulation
regardless of where they appear. The pattern is also known as a right-angle
triangle because of its shape. At the top, a horizontal line is formed by two or
more equal highs.
Two or more rising troughs form an ascending trendline that converges on the
horizontal line as it rises. If both lines were extended right, the ascending
trendline could act as the hypotenuse of a right triangle. A right triangle would
form if a perpendicular line were drawn extending down from the left end of the
horizontal line.
Let’s examine each part of the pattern and then look at an example:
• Trend : An established trend should exist to qualify as a continuation pattern.
But because the ascending triangle is a bullish pattern, it is less crucial how
long and how strong the current trend is. The strength of the formation is
crucial.
• Top Horizontal Line : The top horizontal line can only be formed if there are
at least two response highs. The highs should be quite close together but do
not have to be exact. The reaction low and the highs ought to be separated by
some distance.
• Lower Ascending Trendline : At least two reaction lows are required to form
the lower ascending trendline. There should be some space between the
reaction lows, which should increase in magnitude over time. The ascending
triangle is invalid if a more recent reaction low is equal to or lower than the
preceding reaction low.
• Duration : The pattern can span anywhere from a few weeks to many months,
with a typical pattern lasting between one and three months.
• Volume : Volume often decreases as the pattern matures. To verify the flight
when the upside breakthrough has place, e volume should be increased.
Although it is preferable, volume confirmation is not always required.
• Return breakouts : Technical analysis' fundamental principle is that support
evolves into resistance and vice versa. The ascending triangle's horizontal
resistance line changes from resistance to support when it is broken. Before
the move starts, there may occasionally be a return to this support level.
• Target : After the breakout has occurred, the price estimate is calculated by
multiplying the breakout of resistance by the total length of the pattern.
64
In contrast to the symmetrical triangle, an ascending triangle has a distinct
bullish tilt prior to the breakout.
If you remember, the symmetrical triangle is a neutral formation that depends
on the impending flight to determine the next move's course. The horizontal line
on the climbing triangle depicts the overhead supply that restricts security from
rising above a certain level. It appears as though a sizable sell order has been
placed at this level and is being executed slowly, delaying any additional price
increases.
Fig No.29 Ascending Triangle
65
Descending Triangle :
The descending triangle is a bearish pattern that typically develops as a
continuation of a downward trend. Descending triangles can occasionally
develop as reversal patterns at the end of an upswing, although they usually do
so as continuation patterns. Descending triangles are distribution-related bearish
patterns that might appear anywhere. The pattern is also known as a right-angle
triangle because of its shape.
At the bottom, a horizontal line of additional equivalent lows forms. A
trendline that declines and eventually converges with the horizontal line is
formed above by two or more dropping peaks. The descending trendline may
serve as the hypotenuse of a right triangle if both lines were extended to the
right. A right triangle would result if a perpendicular line were drawn ascending
from the left end of the horizontal line. Before looking at an example, let's look
at each pattern component.
• Trend : An established trend should exist to qualify as a continuation pattern.

However, the current trend's length and continuity are less significant
because the descending triangle is a bearish pattern. The strength of the
formation is crucial.
• Lower Horizontal Line : At least two reaction lows must form the lower
horizontal line. The lows should be reasonably close to one another,
however, they don't have to be exact. The reaction is high and lows should
be separated by some distance.
• Upper Descending Trendline : At least two reaction highs are required to
form the upper descending trendline. These reaction highs should be
successively lower and there should be some distance between the highs. If a
more recent reaction high equals or exceeds the previous high, the
descending triangle is invalid.
• Duration : The pattern can span anywhere from a few weeks to many
months, with a typical pattern lasting between one and three months.
• Volume : Volume often decreases as the pattern matures. For confirmation,
the volume should be increased when the downside break occurs. Although
it is preferable, volume confirmation is only sometimes required.
• Return to Breakout : One fundamental principle of technical analysis is that
broken support becomes resistance, and vice versa. The descending triangle's
horizontal support line becomes resistant when it is broken. Before the
downtrend starts in earnest, there may occasionally be a return to this newly
discovered resistance level.
• Target : After the resistance breakout, the price prediction is determined by
calculating the pattern's maximum total distance and subtracting it from the
flight. Unlike a symmetrical triangle, a descending triangle has a clear
bearish bias before the break.
66
As a neutral formation, the symmetrical triangle depends on the upcoming
breakout to determine the best action. The horizontal line symbolizes demand
keeping security from falling below a specific level in the descending triangle.
It appears a sizable buy order has been placed at this level and is taking a few
weeks or months to be filled, halting further price decline. The response highs
keep falling even when the price doesn't drop any farther—the descending
triangle's bearish skew results from highs, which show more significant selling
pressure.
Flg No. 30 Descending Triangle
67
Price Channel :
For explanatory purposes, a "bullish price channel" will refer to a channel with
a positive slope and a "bearish price channel" to a channel with a negative slope.
Main trendline: Drawing the main trendline takes at least two points. A price
channel is a continuation pattern with an upper and lower trendline and slopes up
or down. Support and resistance are shown by the upper and lower trendlines,
respectively. Price channels with downward slopes are bearish, while those with
upward slopes are bullish.
• This line sets the trend and the slope. The main trendline extends up for a
bullish price channel, and at least two reaction lows are required to draw it.
The main trendline extends down for a bearish price channel, and at least two
reaction highs are required to draw it.
• The channel line is the line drawn in opposition to the primary trendline. The
channel line should ideally be derived from two response highs or lows.
Analysts only use one reaction, either a high or a low, to create the parallel
channel line after creating the main trendline. The channel line identifies
resistance along a bullish price channel and support along a bearish price
channel.
• Bullish price channel: The trend is bullish if prices rise and move along the
track. Price failure at channel line resistance is the first sign of a trend change.
A subsequent break below primary trendline support would further indicate a
trend change. A bullish break above channel line resistance means an advance
acceleration.
• Bearish price channel: The trend is considered bearish if prices fall and move
within the track. When prices are along the channel line, a trend change is
initially indicated. A further indication of a trend change would be a
subsequent break above the main trendline primary. It would be bearish and
signal an escalation of the downturn if the price broke through the support of
the channel line.
• Scaling: Semi-log scales appear to fit reaction highs and lows the best,
however, this may just be an opinion. Semi-log rankings show % changes in
price.
The distance between moving from 50 to 100 and to 200 will appear to be the
same. Some traders look to buy when prices approach the primary trendline
support in a bullish price channel. Like most price patterns, signals should be
confirmed using other technical analysis techniques. There is an opportunity for
flexibility because technical analysis is equally as much an art as a science.
68
Flg No 31 Price Channel
69
Short-Term Technical Pattern / Chart Analysis
• Doji
Doji is essential candlesticks that provide information independently and feature
in several essential patterns. The candlestick that results from varying the
duration of the upper and lower shadows resembles a cross, an inverted cross, or
a plus sign. Doji patterns are impartial on their own. Any bias, whether bullish or
bearish, is based on past price activity and potential future confirmation. Both the
singular and plural forms of the term "Doji" are used. The open and close should
ideally, but not necessarily, be equal. The key is to capture the spirit of the
candlestick, even though a doji with a similar open and close would be regarded
as more robust. Doji hints to uncertainty or a struggle between buyers and sellers.
Prices fluctuate during the session above and below the opening level but close
at or close to the opening level. A standoff results as a result. No one is a bull or
a bear.
Doji and Trend
A doji's significance relies on the trend or candlesticks that came before it. A doji
following an increase or extended white candlestick signifies a waning of the
purchasing pressure. A doji indicates that selling pressure is lessening after a
downturn or long black candlestick. Doji suggests that a shift in trend may be on
the horizon as supply and demand are becoming more equalised. Doji by
themselves are inadequate to signify a reversal, and additional proof might
70
Fig No. 32 Doji
Fig No. 33 Doji Trend Reversal
71
HAMMER & HANGING HAMMER :
Reversals of the long shadow Single candlestick reversal patterns come in two
pairs: a small true body, a lengthy shadow, and a short or non-existent shadow.
Generally speaking, the chart, which can be black or white, should have a long
shadow that is at least twice as long. The classification is based on the long
shadow's location and the price movement before it. The first pair, the hammer
and hanging man, have little bodies and extended lower shadows that are
identical. With little bodies and protracted upper shadows, the second pair,
shooting star and inverted hammer, is also identical. The bullish or bearish in the
nature of these candlesticks is only determined by previous price movement and
additional confirmation.
The hammer and inverted hammer are bullish reversal patterns that appear after
a drop, whereas the shooting star and the hammer and hanging man look identical
bu have different implications based on the preceding price action. Both feature
small natural bodies that can be either black or white, long lower shadows, and
either very short or no upper shadows. The hammer is a bullish reversal pattern
that develops following a decline, just like other single and double patterns.
Hammers can be used to highlight probable trend reversals as well as support or

bottom levels. Hammers signify a bullish recovery after a decline. It appears that
sellers drove prices lower throughout the session based on the extended lower
shadow's low. On the other side, the solid ending shows buyers regained their
composure to solidly end the session. Even while it can seem like there is enough
knowledge, hammers require more bullish backing.
The hammer's low point suggests that there are still lots of sellers. Additional
buying pressure is needed before taking any action, ideally on an increasing
volume. Hammers are comparable to selling climaxes, and high volume might
bolster the veracity of the reversal.
The hanging man can also indicate a top or level of resistance, a bearish reversal
pattern. A hanging guy, which appears after an advance, indicates that selling
pressure is about to pick up.
The extended lower shadow's low demonstrates that sellers drove prices lower
throughout the session. The appearance on the selling pressure raises the yellow
flag even if the bulls regained control and raised prices by the finish. A hanged
man needs bearish affirmation before being used, just like the hammer. A gap
down or a lengthy, black candlestick on high volume can provide as confirmation
in this situation.
72
Flg No. 34 HANGING HAMMER
Flg No. 35
73
SHOOTING - STAR :
Although the inverted hammer and shooting star have the same appearance,
their implications vary depending on recent price action. Each candlestick has a
little genuine body (black or white), long upper shadows, and either no bottom
shadows at all or very little lower shadow. These candlesticks indicate possible
trend reversals, but action must wait for confirmation. The shooting star, so
named because it develops after an advance and is in the star position, is a bearish
reversal pattern. A shooting star may indicate a possible trend reversal or level of
resistance.
The candlestick develops when prices open with a higher gap, rise throughout the
session, and close far from their highs. The resulting candlestick has a little black
or white body and a long top shadow. The capacity of the bears to drive prices
lower after a significant increase (the upper shadow) raises the yellow flag. To
denote a major reversal, the top shadow should be quite long and at least twice as
long as the body. There must be bearish confirmation following the shooting star,
which can either be a gap down or a protracted, dark candlestick with significant
volume.
Although it forms after a downturn or downtrend, the inverted hammer
resembles a shooting star exactly. Inverted hammers signify probable trend
reversals or levels of support. The lengthy upper shadow following a dip shows
buying pressure during the session. The bulls, however, were unable to maintain
this buying pressure, and prices finished much below their peaks, leaving a
significant upper shadow. Due to this failure, action must wait for bullish
confirmation. A gap-up is followed by an inverted hammer.
74
Fig No.36 SHOOTING - STAR
75
Blending Candlesticks :
One or more candlesticks can be combined to create a single candlestick in

candlestick patterns.
This blended candlestick, which can be made using the methods below, perfectly
captures the essence of the design. The first candlestick's open, the last
candlestick's closure, and the pattern's high and low are all indicators.
A bullish engulfing or piercing pattern combines into a hammer by using the

high/low of the pattern, the close of the first candlestick, and the open of the
second candlestick. The hammer's extended lower shadow suggests a possible
bullish reversal. Both the bullish engulfing and piercing patterns need bullish
confirmation, just like the hammer does.
Fig No. 37 Blending Candlesticks
76
DERIVATIVES :
Options are a sort of derivative contract that provide their holders the option,
but not the obligation, to purchase or sell a securities at a given price at a later
period. For such a right, option sellers demand an amount known as a
premium. If market prices are unfavourable to them, option holders will let
the option expire worthless and fail to exercise this right, limiting potential
losses to the option premium. On the other hand, if the market changes in a
way that makes this right more valuable, it will use it.
Types of options
a) Call option :
Options Call options are financial contracts that give the option buyer the right
but not the obligation to buy a stock, bond, commodity, or other asset or
instrument at a specified price within a specific time period. The stock, bond,
or commodity is called the underlying asset. A call buyer profits when the
underlying asset increases in price.
b) Put option :
Put options are traded on various underlying assets, including stocks,
currencies, bonds, commodities, futures, and indexes. They are key to
understanding whether to perform a straddle or a strangle. The value of a put
option appreciates as the underlying stock’s price depreciates relative to the
strike price.
§ Important Terms
a) Strike price :
The strike price on an options contract is the price at which the underlying
security can be either bought or sold once exercised.
Also known as the exercise price, the strike price is a key feature of an options
contract.
b) In the Money :
If the market price is higher than the strike price, the call option is in the money
(ITM).
If the market price is lower than the strike price, the put option is in the money.
77
c) At the Money :
Calls and puts that have a strike price at or very close to the underlying
security's current market price are at the money (ATM).
ATM options are most sensitive to changes in time decay, implied volatility,
and interest rates, among other risk factors.
d) Out of the Money :

Out of The Money, options are more desirable to traders with limited capital
because they are almost always less expensive than ITM options.
OTM options are more frequently traded for the covered call or protective put
strategies.
§ Important Strategies
A. Vertical Spread Put

B. Naked Call Sell
C. Naked Put Sell
D. Vertical Spread Put
E. Short Strangle with Iron Condor
F. Iron condor strategy
G. Short Strangle
H. 0 to Hero
I. Iron Fly
J. Directional spread
K. Calendar Spread
L. Synthetic Future
M. Covered call
N. Short Straddle
O. Long Straddle
P. Long Strangle
78
A. Vertical Spread :
A vertical spread involves the simultaneous buying and selling of options of the
same type (i.e., either puts or calls) and expiry, but at different strike prices. The
term 'vertical' comes from the position of the strike prices
A vertical call spread can be a bullish or bearish strategy, depending on how the
strike prices are selected for the long and short positions.
Fig No.38
Vertical Spread
Fig No.39
79
B. Naked Call Sell :
A naked call is when a call option is sold by itself (uncovered) without any
offsetting positions. When call options are sold, the seller benefits as the
underlying security decreases in price.
Fig No.40,41 Naked Call Sell
80
C. Naked Put Sell :
A naked put is an options strategy in which the investor writes, or sells, put
options without holding a short position in the underlying security. A naked put
strategy is sometimes referred to as an "uncovered put" or a "short put" and the
seller of an uncovered put is known as a naked writer.
Fig No.42,43 Naked Put Sell
81
D. Vertical Spread Hindalco Put :
A vertical spread is an options strategy that involves buying (selling) a call (put)
and simultaneously selling (buying) another call (put) at a different strike price,
but with the same expiration. A vertical call spread can be a bullish or bearish
strategy, depending on how the strike prices are selected for the long and short
positions.
Fig No.44,45 Vertical Spread Hindalco Put
82
E. Short Strangle with Iron Condor :
The tradeoff is that a short iron condor spread has a much lower profit potential
in dollar terms than a comparable short strangle. Also, the commissions for an
iron condor spread are higher than for a strangle. Short iron condor spreads are
sensitive to changes in volatility (see Impact of Change in Volatility).
Fig No.46,47 Bank-Nifty Short Strangle with Iron Condor
83
F. Iron condor strategy :
An iron condor is an options-trading strategy that allows an investor to bet on the
relative stability of the underlying asset. The investor buys two call options and
two put options, which combined provide the greatest profit if the price of the
underlying asset remains stable.
Fig No.48,49 Iron condor strategy
84
G. Nifty Short Strangle :
A short strangle is a neutral option selling strategy with limited profit potential
and undefined risk. To open a short strangle, sell a short put below the stock's
price and a short call above the stock's price, with the same expiration date.
Fig No.50,51 Nifty Short Strangle
85
H. Zero to Hero :
This strategy involves selling a call and a put at the same strike price and
expiration date, expecting the stock to stay close to the strike price. It comes with
the risk of unlimited losses if the stock makes a significant move in either
direction.
Fig No.52,53 Zero to Hero
86
I. Iron Fly :
An Iron Butterfly Strategy or Iron Fly Strategy is an options trading strategy
that combines multiple calls and put options to devise a market-neutral strategy.
Iron Fly Option Strategy involves running a short call spread and a short put
spread simultaneously. The spread converges at a middle strike price.
Fig No.54,55 Iron Fly
87
J. Directional spread :
This directional strategy involves selling a call option with a higher strike price
compared to the spot price and purchasing a call option with a lower strike price.
As with the bull call, the bull put is also used when traders believe that the market
would turn bullish in the near future.
Fig No.56,57 Indigo Directional spread
88
K. Calendar Spread :
A calendar spread is a derivatives strategy that involves buying a longer-dated
contract to sell a shorter-dated contract. Calendar spreads allow traders to
construct a trade that minimizes the effects of time.
Fig No.58,59 Bank-Nifty Calendar Spread
89
L. Synthetic futures :
Using options involve combining call and put options to replicate the payoff of a
futures contract. For example, an investor buys a call option and sells a put option
for a long synthetic future.
Fig No.60 Nifty Synthetic futures
90
M. Covered Call :
Is an options trading strategy that offers limited return for limited risk. A covered
call involves selling a call option on a stock that you already own. By owning the
stock, you're “covered” (i.e. protected) if the stock rises and the call option
expires in the money.
Fig No.61Covered Call
91
N. Short Straddle :
A short straddle consists of one short call and one short put. Both options have
the same underlying stock, the same strike price and the same expiration date. A
short straddle is established for a net credit (or net receipt) and profits if the
underlying stock trades in a narrow range between the break-even points.
Fig No.62,63 Bank-Nifty Short Straddle
92
O. Long Straddle :
A long straddle is a combination of buying a call and buying a put, both with the
same strike price and expiration. Together, they produce a position that should
profit if the stock makes a big move either up or down.
Fig No 64 Nifty Long Straddle
93
P. Long Strangle :
In a long strangle—the more common strategy—the investor simultaneously
buys an out-of-the-money call and an out-of-the-money put option. The call
option's strike price is higher than the underlying asset's current market price,
while the put has a strike price that is lower than the asset's market price.
Nifty Long Strangle
94
Financial Modelling of Alembic Pharmaceuticals :
Financial modelling is the process of using values to describe the activities of a

business in the past, present, and anticipated future. These models are designed
to be instruments for making decisions. They might be used by company
executives to forecast the costs and profits for proposed new assignments.
Financial analysts use them to explain or predict how various events, such as
changes in economic policy or legislation, both internal and external, may affect
a company's stock price. Internal events include changes in strategy or business
model.
Financial models are employed when attempting to value a company or when
comparing it with others in the same sector. Additionally, they are used in
strategic planning to evaluate various hypotheses, determine project costs, make
financial decisions, and allocate company resources..
§ Assumptions
Table No.10 Assumptions
95
§ Balance sheet forecasted
Businesses use balance sheet forecasts to identify financial risks, uncover areas
for growth, and make long-term plans. Forecasts of a company's assets, liabilities,
and equity are used to determine how a company's actions will affect cash flow
in the future. Financial forecasting and comprehensive financial modeling both
include balance sheet forecasting as a key component.
Table No.11 Balance sheet forecasted
96
§ Income Statement Forecast
Building a 3-statement model requires forecasting the income statement because

it is largely responsible for the balance sheet and cash flow statement projections.
The income statement forecast should be used by management to determine if the
company generated a profit for the period. The bottom-line net income is the
crucial metric. Additionally, it should use it to compare actual results to
projections, identify patterns in operating profit ratios, and develop correlations
between expenses and revenue.
Table No.12 Income Statement Forecast
§ Supporting Schedule
Table No.13 Supporting Schedule
97
§ Cash flow statement Forecasted
The management of the business forecasts or anticipates the cash inflow and
outflow for the upcoming term to ensure that there will be enough money for the
business to conduct its regular operations. They must prepare for alternative
company funding sources in case there is a gap.
Table No.14 Cash flow statement Forecasted
98
§ Performance Analysis
An organization's capacity to handle its finances is measured by its financial

performance. A company's assets, liabilities, revenue, expenses, equity, and
profitability are assessed.
Financial ratios are essential metrics. Using information from financial
statements, it assesses the financial health of businesses.
Table No.15 Performance Analysis
Chart Title
9000 8281 35%
7529
8000 6844 30%
7000 29% 6222
6000 26%5393 554825% 25% 25% 25% 25%25%
5000 21%393522%4606 21% 20%
4000 3130.18 17% 15% 16% 17% 17% 17%15%
13% 15%
3000 10%
2000
1000 5%
0 0%
1 2 3 4 5 6 7 8 9 10
Revenue INR Crs 3130.18 3935 4606 5393 5548 6222 6844 7529 8281
EBITDA Margin % 21% 22% 26% 29% 25% 25% 25% 25% 25%
Net Margin % 13% 15% 17% 21% 15% 16% 17% 17% 17%
Revenue INR Crs EBITDA Margin % Net Margin %
Fig No 67 Revenue EBIT Net Margin
99
§ Cash flow analysis model
Cash flow analysis is essential to evaluate a company’s financial health. The analysis provides
insights into the inflow of cash and outflow of cash in a business over a specific period. It helps
to measure the company's ability to generate cash and to meet its financial obligations such as
debt repayment, dividends, and capital expenditures.Cash flow analysis is essential for several
reasons.
Firstly, it allows investors and analysts to determine a company’s liquidity. By analyzing the
company's cash inflows and outflows, investors can assess whether it is generating enough cash
to pay its debts and meet its obligations.
Secondly, cash flow analysis provides information about a company's operating, investing, and
financing activities. By understanding how the company generates and uses cash, investors can
identify areas where the company may be performing well or where it may be struggling.
Thirdly, cash flow analysis can calculate various financial ratios, such as the cash flow margin,
free cash flow, and the cash conversion cycle. These ratios can provide insights into a
company's financial performance and help investors compare its performance to its peers.
Cash flow analysis is important for evaluating a company’s financial health. It provides insights
into the company's liquidity, operating efficiency, and financial performance. Investors and
analysts use cash flow analysis to make informed investment decisions and to identify potential
risks and opportunities.
Chart Title
3000 2580 1500
1385.661287
1255.263227
2000 1136.970969 1501
1252 1370 1000
1128
725 864.19 797 812.6845542
1000 682.0113633
219.55
4.8 4.8 4.8 4.8 500
0
1 2 115.7-1713 4 5 6 7 8 9
0 25.09 -120 -120
-195.09 -120 -120 -120 0
-1000 -124.87
-828.66 -818.13 -975.08
-2000 -1579.4 -500
CFO INR Crs CFI INR Crs CFF INR Crs Net Change INR Crs
Fig 68 CFO,CIF,CFF,Net Change
100
§ DCF Model
The valuation technique known as "discounted cash flow" (DCF) determines an

investment's value based on its projected future cash flows. DCF analysis aims to
assess the value of an investment today by using projections of how much money
an investment will generate in the future. It can help people who are attempting
to choose between buying securities or a company. Business owners and
managers can use discounted cash flow analysis to help them make decisions
about operational and capital budgets. The company is undervalued and
discounted at 26% therefore we purchase the stocks. Because it taken into
consideration the rate of return anticipated by shareholders, businesses frequently
utilise the weighted average cost of capital termed as (WACC) as the discount
rate, we have found the rates at different weights.
Table No.16 DCF Model
101
PRODUCT DESIGN :
- Steps in Product designing
1) Understanding the products (HDFC, Aditya Birla Capital, Kotak Mahindra

Life, Bajaj, Tata)
2) Understand Different Designs
3) Make our plans on Excel.
4) Conclude and Present plans to the company.
STEP 1: Understanding the products.
Table No.17
STEP 2: Understand Different Designs
i. Lump sum
ii. Interval post Premium
iii. Interval + lumpsum
iv. Retirement
v. Lifelong annual income post premium
vi. Guarantee posts Premium
STEP 3: Make our plans on excel
After gaining sufficient knowledge about different kinds of insurance products,
we were asked to design our own product.
The products are as follows (Interest rate – 6.45%):
102
Table No.17
The policyholder will receive 1 lakh rupees in every 3 years till the 12th year.
From the 13th year, he/she will receive 1 lakh rupees till the 20th year, and on
Maturity, on the 21st year, he/she will receive Approx. 1.2 million / 12 lakhs
rupees. Along with returns, the policyholder gets life insurance of 1 million
rupees, which is increased until the policy maturity.
103
FINDINGS & CONCLUSION :
Findings :
1. Growing Market: The private banking sector in India has witnessed significant
growth over the years. The rising affluence, increasing number of high net
worth individuals (HNIs), and expanding middle class have contributed to the
expansion of private banking services.
2. Market Competition: The private banking sector in India is highly

competitive, with domestic and international players vying for market share.
Established private banks and foreign banks operating in India compete to
attract wealthy clients by offering personalized services and a wide range of
investment products.
3. Relationship-based Approach: Private banks in India often adopt a

relationship-based approach to serve their clients. Relationship managers play
a crucial role in understanding clients’ financial goals and offering tailored
solutions, including wealth management, investment advisory, estate
planning, and more.
4. Focus on Wealth Management: Private banks in India emphasize wealth

management services, including portfolio management, tax planning, and
estate management. They provide diverse investment options such as equities,
mutual funds, fixed income, real estate, and alternative investments to cater to
different risk appetites and financial objectives.
5. Technology Adoption: Private banks in India are increasingly embracing

technology to enhance customer experience and streamline operations. They
offer digital platforms and mobile applications to enable clients to access their
accounts, make transactions, and receive personalized investment
recommendations.
Equity Research is critical in filling the information gap between the buyers and
sellers of shares. Extensive research is required to analyse which stocks to invest
in properly. Banks were considered as the backbone of the financial system and
played an essential role in the economic development of a nation. They act as
intermediaries in changeling funds from surplus to deficit units to utilize them
104
fully. An efficient banking system of countries has significant positive
externalities, which generally increase the efficiency of economic transactions.
There was a significant shift in the banking system in the policy atmosphere after
the introduction of financial sector reform in 1992; these reforms impacted the
working of commercial banks.
One of the objectives of financial sector reform was to improve the efficiency
of the banking system in the Indian economy. Banking Sector shows immense
growth, and the potential for profits is more significant in the sector thus, we
analyzed stocks in this sector using specific fundamental ratios. A company
should be fundamentally strong, showing promise of profits and thus stock
appreciation. A company is said to be undervalued if its fair value is higher than
its market value. We try to find those undervalued stocks and then manage them
through portfolio management techniques.
The private banking sector in India has experienced remarkable growth and
transformation. With a focus on personalized services, wealth management, and
technological advancements, private banks strive to cater to the financial needs
of individuals and families. However, it's important to note that the banking sector
is dynamic, and various factors, such as economic conditions, regulatory changes,
and customer preferences, can impact the landscape. Continuous monitoring of
the industry and staying updated with the latest information will provide a more
accurate understanding of the private banking industry in India.
The technical analysis then helps us determine a good buying/selling position
that results in more returns. Portfolio management also minimizes the risks
involved in an investment and increases the chances of making profits.
Diversification into various equities further helps to minimize the risk, but the
reduced allocation is required. A good stock combination without a proper
allocation is also doomed to give losses. Budget is equally essential. Many tools
can be used to allocate funds appropriately. The optimized assigned portfolio
shows greater profits, and thus it performs well in the market.
105
REFERENCES
1. BSE. (n.d.). Retrieved from https://www.bseindia.com

2. NSE. (n.d.). Retrieved from https://www.nseindia.com/
3. Money Control. (n.d.). Retrieved from https://www.moneycontrol.com/
4. Zerodha. (n.d.). Retrieved from https://zerodha.com
5. Zerodha Varsity. (n.d.). Retrieved from https://zerodha.com/varsity/
6. Wikipedia. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Main_Page
7. Economic Times. (n.d.). Retrieved from
https://economictimes.indiatimes.com/
8. Times of India. (n.d.). Retrieved from https://timesofindia.indiatimes.com/
9. Trading View. (n.d.). Retrieved from https://in.tradingview.com/
10. Charting. (n.d.). Retrieved from https://chartink.com/
11. Business Standard. (n.d.). Retrieved from https://www.business-
standard.com/
12. Bloomberg. (n.d.). Retrieved from https://www.bloomberg.com/asia
13. Investopedia. (n.d.). Retrieved from https://www.investopedia.com/
14. Corporate Finance Institute. (n.d.). Retrieved from
https://corporatefinanceinstitute.com
15. https://web.sensibull.com/login?broker=zerodha
16. https://opstra.definedge.com/
106

13..Prasanna P Kaware ABC PROJECT REPORT_compressed

Uploaded by

Copyright:

Available Formats

You might also like

13..Prasanna P Kaware ABC PROJECT REPORT_compressed

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

13..Prasanna P Kaware ABC PROJECT REPORT_compressed

Uploaded by

Copyright:

Available Formats

PROJECT REPORT

ADITYA BIRLA CAPITAL

FUNDAMENTAL & TECHNICAL ANALYSIS OF THE IT

Faculty Guide: Dr . T . Sita Ramaiah

Company Guide: Mr. Nikesh Ruparel

I am deeply indebted to my mentor, Mr. Nikesh Ruparel, whose unwavering

Furthermore, I am grateful to m faculty guide, Dr. T. Sita Ramaiah, for his

Lastly, I extend my appreciation to all individuals who, directly or indirectly,

Overall, this internship experience has been profoundly enriching, and I am

• "To be a leader and role model in a broad-based and integrated financial

The internship began with a comprehensive orientation session, where we were

1. Stock Market (Equity Market) : This is where shares of publicly traded

2. Bond Market (Fixed-Income Market) : Bonds are debt securities issued by

3. Foreign Exchange Market (Forex) : This is where currencies are traded.

4. Commodity Market : Commodities are physical goods like gold, oil,

5. Derivatives Market : Derivatives are financial contracts whose value is derived

8. Cryptocurrency Market : This is a relatively new type of market where digital

9. Operational Risk : Arising from internal processes, systems, or human error,

2. Offshore Outsourcing : India has emerged as a preferred destination for

4. Education and Skilled Workforce : India's education system produces a large

5. Global Presence : Indian IT companies have a strong global presence, serving

7. Government Support : The Indian government has implemented policies and

o The IT Sector: A Key Driver of the Indian Economy

• Major Players and Future Outlook

Employment of the IT-BPM industry in India from financial year 2009 to

1. Understanding Stocks : Stocks represent ownership in a company. When you

1. Understanding Market Indices : A market index is a statistical measure of the

2. Components of Index Analysis :

3. Interpreting Index Analysis :

Specific segments within a country's stock market. They achieve this by

2. Market Capitalization: Calculate the market capitalization for each

3. Stock Weighting: Determine the weightage of each stock within the

4. Price Change Calculation: To calculate the percentage change in price

5. Weightage Change: Calculate the change in weightage for each stock

DATE INDEX PRICE EXPLANATION

1000 Initial Price

20-02-2024 981.75 Decline From Previous Price

21-02-2024 969.79 Decline From Previous Price

22-02-2024 991.37 Rises From Previous Price

23-02-2024 987.39 Decline From Previous Price

26-02-2024 985.22 Decline From Previous Price

27-02-2024 989.01 Rises From Previous Price

28-02-2024 984.95 Decline From Previous Price

29-02-2024 980.86 Decline From Previous Price

01-03-2024 981.57 Rises From Previous Price

04-03-2024 977 Decline From Previous Price

05-03-2024 960.63 Decline From Previous Price

06-03-2024 972.42 Rises From Previous Price

07-03-2024 977.54 Rises From Previous Price

08-03-2024 974.95 Decline From Previous Price

12-03-2024 1,003.06 Rises From Previous Price

13-03-2024 994.55 Decline From Previous Price

14-03-2024 1,016.99 Rises From Previous Price

15-03-2024 1,012.74 Decline From Previous Price

18-03-2024 998.66 Decline From Previous Price

19-03-2024 968.27 Decline From Previous Price

20-03-2024 965.69 Decline From Previous Price

There are four main parts to fundamental analysis:

• Macroeconomic Factors: The overall health of the economy, interest rates,