INTRODUCTION

ABOUT RELIANCE MONEY

Reliance Capital

Reliance Reliance
Reliance Reliance Reliance
Mutual fund General Insurance Consumer
Mutual Fund Life Insurance Money Finance
Reliance money is a part of the Reliance Anil Dhirubai Ambani Group
and is promoted by Reliance capital, the fastest growing private sector financial
services company in India, ranked amongst the top 3 private sector financial
companies in terms of net worth.
Reliance money is a comprehensive financial solution provider that enables you
to carry out trading and investment activities in a secure, cost-effective and
convenient manner. Through reliance money, you can invest in a wide range of
asset classes from Equity, Equity and commodity Derivatives, Mutual Funds,
insurance products, IPO’s to availing services of Money Transfer & Money
changing.
Reliance Money offers the convenience of on-line and offline transactions
through a variety of means, including its Portal, Call & Transact, Transaction
Kiosks and at its network of affiliates.

Some key steps of the company that are as…..

“Success is a journey, not a destination.” If we look for examples to
prove this quote then we can find many but there is none like that of Reliance
Money. The company today known as the largest financial service provider of
India.

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Success sutras of Reliance Money:
The success story of the company is driven by 8 success sutras adopted by it
namely trust, integrity, dedication, commitment, enterprise, hard work and team
play, learning and innovation, empathy and humility. These are the values that
bind success with Reliance Money.

History of the Organization:

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934. RCL was incorporated as a public limited company in
1986 and is now listed on the Bombay Stock Exchange and the National Stock
Exchange (India).

• RCL has a net worth of over Rs 3,300 crore and over 165,000
shareholders. On conversion of outstanding equity instruments, the net
worth of the company will increase to about Rs 4,100 crore.
• Reliance Capital is a constituent of S&P CNX Nifty and MSCI India and
also features in the Forbes list of World’s largest 2000 public companies.
• Aug 16, 1903 - Plenty of Reliance Money at Odds of 2 to 1, with Few
Takers. Never in' the history of International yacht matches has the betting
been so slowly on the eve of the races.

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 • Apr 8, 1992 -MUMBAI, India -- Reliance Money, the financial products
distribution…an undisclosed sum of money

The Special Features: Reliance Products:

 Reliance Life Insurance

 Demat Account Services
 Reliance Mutual Funds
 Reliance General Insurance

Functional Departments of the Organization:-

Technical Consultancy Department:

The Technical Consultancy Department is responsible for technical appraisal of
industrial projects. The mission of the division is aimed towards the verification of
the technical viability of industrial projects and assisting the Funds management
in taking the decisions that require technical expertise. Moreover, it is
responsible for conducting technical studies and rendering technical consultancy
services to certain industrial sectors for the purposes of investigating modern
technologies and productivity levels for local manufacturing plants.

H R Department:
Reliance Group`s; Human Resources department plans and direct for the
employee population as well as they are having the following functions as:-
 Hiring
 Promotions
 Reassignments
 Position classification and grading
 Salary determination
 Performance appraisal review and processing
 Personnel data entry and records maintenance

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  Policy development
 Work permitting immigration visa program
 Workers’ compensation
Finance Department:
The Finance Manager is responsible for all aspects of the accounting and
financial administration of the Reliance Group, the supervision of the
implementation of the Reliance Group financial policies, directives and
procedures and the initiation of the financial plans within the guidelines of
Reliance Group. The department contains several distinct sections, each of
which is responsible for a proportion of the activities taking place within the
finance department.

Marketing Consultancy Department:

It studies and analyzes marketing information in order to build solid base for
management The Marketing Consultancy Department plays and important role
within the Fund as decisions. The division also assists projects sponsors in
formulating solid marketing strategies to improve their industries and strengthen
their position in the local and international markets.

Research Department:
The Research Department is having the capacity to act through four composing
units i.e., the market research unit, economic studies unit, and statistical studies
unit. It is the mission of the division to provide support services for information
and consultancy to the senior management and division in the areas of
economic, statistical and marketing information and consultancy through data
analysis, processing of economic and statistical data, market research studies
and publishing related periodical reports.

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Organization Structure and Organization Chart:-

The organizational structure is well planned out and it follows a simple format
which is follows:

Technical Consultancy Department

Human Resource Department

Finance Department

Marketing Consultancy Department

Research Department

Each team lead has a team comprising only of both senior as well as junior
market research analyst who aid the team lead in the entire market research
process as it has been discussed previously. This is the basic organizational
structure followed by Reliance groups.

Present status of the organization:

In April 2007, it provides the Flat fees system. It has 2.2 million customers in 1
year of official launch. It has Reliance Capital has interests in asset management
and mutual funds, life and general insurance, private equity and proprietary
investments, stock broking, depository services, distribution of financial products,
consumer finance and other activities in financial services. Reliance Mutual Fund

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is India's no.1 Mutual Fund. Reliance General Insurance is India's fastest
growing general insurance company and the top 3 private sector insurers.
Reliance Money is the largest brokerage and distributor of financial products in
India with more than 2.5 million customers and the largest distribution network.
Reliance Consumer finance has a loan book of over Rs. 8,000 crores at the end
of June 2008. Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6
billion) and total assets of Rs. 19,940 crores (US$ 4.6 billion) as of June 30,
2008 and over 26,000 employees.

• Money has increased its market share among private financial companies
to nearly Convenient & effective – Anytime & anywhere financial
transaction capability. Launched over 5,000 outlets across 700
towns/cities. Average daily turnover – in excess of Rs 2,000 crores.

• pan-India presence and superior risk management and investment

strategies. Reliance Money is not, however, resting on its laurels.

• Company’s customer centric approach will be studied during the training

period and the finding of the research work will definitely focus on the
present condition & future requirement (if any) relating to products of
company.

Future Plans of the Organization:-

Vision of Reliance Money

To achieve & sustain market leadership, Reliance Money shall aim for complete
customer satisfaction, by combining its human and technological resources, to
provide world class quality services. In the process Reliance Money shall strive
to meet and exceed customer's satisfaction and set industry standards.

Mission statement:

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“Our mission is to be a leading and preferred service provider to our customers,
and we aim to achieve this leadership position by building an innovative,
enterprising , and technology driven organization which will set the highest
standards of service and business ethics.”

Competitors Details:-
In today’s world many companies have emerged who have taken a serious note
on the importance of market research and he advantages of using it for the
better growth and development of the company. Hence, our competitors are
those company’s who are in the market research and development field as well
as the consultancies, since they also make use of market research and business
developers.

Some of the competitors are:

 Religare
 Motilal Oswal
 Standard Chartered
 Way To Wealth
 Bajaj Capital
 ICICI Prudential
 HSBC
 Kotak Mahindra
 IngVysya
 IL & Fs Invest smart
 HDFC
 Geojit Securities
 Indiabulls
 India Infoline

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WHAT’S THIS EQUITY ANALYSIS?
Professional investor will make more money & less loss than, who let their
heart rule. Their head eliminate all emotions for decision making. Be ruthless &
calculating, you are out to make money. Decision should be based on actual
movement of share price measured both in money & percentage term & nothing
else. Greed must be avoided patience may be a virtue, but impatience can
frequently be profitable.
In Equity Analysis anticipated growth, calculations are based on
considered FACTS & not on HOPE. Equity analysis is basically a combination of
two independent analyses, namely fundamental analysis & Technical
analysis. The subject of Equity analysis, i.e. the attempt to determine future
share price movement & its reliability by references to historical data is a vast
one, covering many aspect from the calculating various FINANCIAL RATIOS,
plotting of CHARTS to extremely sophisticated indicators.
A general investor can apply the principles by using the simplest of tools:
pocket calculator, pencil, ruler, chart paper & your cautious mind, watchful
attention. It should be pointed out that, this equity analysis does not discuss how
to buy & sell shares, but does discuss a method which enables the investor to
arrive at buying & selling decision. The financial analysts always need yardsticks
to evaluate the efficiency & performances of any business unit at the time of
investment. Fundamental analysis is useful in long term investment decision. In
Fundamental analysis company s goodwill, its performances, liquidity, leverage,
turnover, profitability & financial health was checked & analysis with the help of
ratio analysis for the purpose of long term successful investment.
Technical analysis refers to the study of market generated data like prices
& volume to determine the future direction of prices movements.
Technical analysis mainly seeks to predict the short term price travels.
The focus of technical analysis is mainly on the internal market data, i.e. prices &
volume data. It appeals mainly to short term traders. It is the oldest approach to
equity investment dating back to the late 19th century.

Assumptions for Equity Analysis

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1. Works only in normal share-market conditions with great reliability, it also
works in abnormal share-market conditions, but with low reliability.
2. Equity analysis is purely based on the INVESTMENT PHILOSOPHY , so the
investment object has vital importance associated to return along with risk.
3. Cash management gets the magnitude role, because the scenario of equity
analysis is revolving around the term money
4. Portfolio management, risk management was up to the investor’s knowledge.
5. Capital market trend is always a friend, whether it is short run or long run.
6. You are buying stock & not companies, so don’t are curious or panic to do
postmortem of company’s performances.
7. History repeats: investors & speculators react the same way to the same types
of events homogeneously.
8. Capital market has a typical market psychology along with other issues like;
perceptions, the crowd Vc the individual, tradition s & trust.
9. An individual perceptions about the investment return & associated risk may
differ from individual to individual.
10. Although the equity analysis is art as well as sciences so, it also has some
exceptions.
ANALYSIS OF AUTOMOBILE INDUSTRY
Over a period of more than two decades the Indian Automobile industry
has been driving its own growth through phases. With comparatively higher rate
of economic growth rate index against that of great global powers, India has
become a hub of domestic and exports business. The automobile sector has
been contributing its share to the shining economic performance of India in the
recent years.
To understand this industry for the purpose of investment we need to
analyze it by following two approaches:
1). Fundamental Analysis (E.I.C Approach)
a. Economy
b. Industry
c. Company

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2).Technical Analysis
EQUITY ANALYSIS

ENVIRONMENT & ECONOMICAL ANALYSIS

FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS

Fundamental Analysis
Fundamental analysis is the study of economic, industry and company
conditions in an effort to determine the value of a company s stock. Fundamental
analysis typically focuses on key statistics in company s financial statements to
determine if the stock price is correctly valued.
Most fundamental information focuses on economic, industry and
company statistics.
The typical approach to analyzing a company involves four basic steps:
1. Determine the condition of the general economy.
2. Determine the condition of the industry.
3. Determine the condition of the company.
4. Determine the value of the company s stock

A). ECONOMY
Economic analysis is the analysis of forces operating the overall economy a
country. Economic analysis is a process whereby strengths and weaknesses of
an economy are analyzed. Economic analysis is important in order to understand
exact condition of an economy.
GDP and Automobile Industry
In absolute terms, India is 16th in the world in terms of nominal factory output.
The service sector is growing rapidly in the past few years. This is the pie- chart
showing contributions of different sectors in Indian economy. The per capita
Income is near about Rs38,000 reflecting improvement in the living standards of
an average Indian.

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 Today, automobile sector in India is one of the key sectors of the
economy in terms of the employment. Directly and indirectly it employs more
than 10 million people and if we add the number of people employed in the auto-
component and auto ancillary industry then the number goes even higher.
As the world economy slips into recession hitting the demand hard and
the banking sector takes conservative approach towards lending to corporate
sector, the GDP growth has downgraded it to 7.1 per cent for 2008-09 and
predicted it to be 6.5 per cent for FY 2009-10 Mr. Montek Singh (Planning
Commission of India). Following is the graph showing a trend of Indian GDP
trend in past 3 years.

Source: India Central Statistical Organization

The market value of Automobile Industry is more than US$8 bl. and Contribution
in Indian GDP is near about 5% and will be double by 2016. The automotive
industry in India grew at a computed annual growth rate (CAGR) of 11.5 percent
over the past five years, but growth rate in last FY2008-09 was only 0.7% with
passenger car sales shows 1.31% growth while Commercial Vehicles segment
slumped 21.7%.

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Recession
All the major auto companies enjoyed the high growth ride till the mid 2008. But
at the end of the year, industry had to face the hard truth and witnessed the fall
in sales compared to last year. In December 2008, overall production fell by 22
% over the same month last year. Global recession has hit the Indian auto
industry, India is strong and growing industry but the impact of recession is
evident now on industry as sales & growth of automobile companies have
declined. Passenger Vehicles segment registered negative growth.

One of its supporting facts is that the sales in December 2008 for passenger
vehicles fell by 13.86% over December 2007 Two Wheelers registered minor
growth of 1.85 % during April – December 2008. However, Two Wheelers sales
recorded 15.43 percent fall in December 2008 over the same month last year.
Although the sector was hit by economic slowdown, overall production
(passenger vehicles, commercial vehicles, two wheelers and three wheelers)
increased from 10.85 million vehicles in 2007-08 to 11.17 million vehicles in
2008-09. Passenger vehicles increased marginally from 1.77 million to 1.83
million while two-wheelers increased from 8.02 million to 8.41 million. Total
number of vehicles sold including passenger vehicles, commercial vehicles, two-
wheelers and three-wheelers in 2008-09 was 9.72 million as compared to 9.65
million in 2007-08.

Inflation
Despite of negative inflation these days (-.21% on 22-Aug-09) we saw an
increasing trend of sales in auto sector. A moderate amount of inflation is
important for the proper growth of an economy like India because it attracts more
private investment. The fall in wholesale prices from a year earlier is mainly due
to a statistical base effect and doesn’t suggest contraction in demand, the
Reserve Bank of India said few week back, while revising its inflation forecast for
the FY through March to around 5% from 4%.

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In last FY despite of skyrocketing oil prices (crude oil price has already up to
$130 compared to $20 per barrel five years back), Indian automobile Industry
was not as much affected and experts think that Indian automobile industry will
continue to grow this year despite all obstacles- oil price hike, higher interest
rates. However, the effect of inflation has affected every sector which is related
to car manufacturing and production. The increase in the price of fuel and the
steel due to inflation has led to a slower growth rate of the car industry in India.
The effect of inflation has taken the rise in the price rate of the cars by 3-4%
which in turn suffices the need to meet the rise in price of the raw materials to
build a car. The car market and the car industry witnessed a fall of 8-9%.

FDI’s
In India FDI up to 100 percent, has been permitted under automatic route to this
sector, which has led to a turnover of USD 12 billion in the Indian auto industry
and USD 3 billion in the auto parts industry. India enjoys a cost advantage with
respect to casting and forging as manufacturing costs in India are 25 to 30 per
cent lower than their western counterparts the Investment Commission has set a
target of attracting foreign investment worth US$ 5 billion for the next seven
years to increase India's share in the global auto components market from the
existing 0.9 per cent to 2.5 per cent by 2015. FDI inflows in Automobile Industry
2008-09 was Rs.5,212 Cr an increase of 47.25% compare to 2007-08, while in
April-May 2009 it was around Rs.497 Cr.
Source- FDI Statistics Govt. of India
Export
Society of Indian Automobile Manufacturers (SIAM), automobile sales (including
passenger
r vehicles, commercial vehicles, two-wheelers and three-wheelers) in the
overseas markets increased to 1.53 million units in 2008-09 from 1.23 million
units in 2007-08. Export of passenger vehicles increased from 218,401 in 2007-
08 to 335,739 units in 2008-09.

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There is a continuous increase in the export of automobiles since the financial
year 2002-03, except for the decline in the export of commercial vehichles in the
financial year 2008-09, which may be attributed to the global economic
recession.
Despite recession, the Indian automobile market continues to perform better than
most of the other industries in the economy in coming future, more and more
MNC’s coming in India to setup their ventures which clearly shows the scope of
expansion.
b.) INDUSTRY ANALYSIS (AUTOMOBILE)
The current trends of the global automobile industry reveal that in the developed
countries the automobile industries are stagnating as a result of drooping
markets, whereas the automobile industry in the developing nations, have been
consistently registering higher growth rates every passing year for their domestic
flourishing domestic automobile markets.
Being one of the fastest growing sectors in the world its dynamic growth phases
are explained by the nature of competition, Product Life Cycle and consumer
demand. The industry is at the crossroads with global mergers and relocation of
production centers to emerging developing countries.
In 2009, estimated rate of growth of India Auto industry is going to be 9% .The
Indian automobile sector is far from being saturated, leaving ample opportunity
for volume growth.
Segmentation of Automobile Industry
The automobile industry comprises of Heavy vehicles (trucks, buses, tempos,
tractors); passenger cars; Two-wheelers; Commercial Vehicles; and Three
wheelers. Following is the segmentation that how much each sector comprises
of whole Indian Automobile Industry.
Industrial Analysis of any industry can be done based on the following headings:
1. SWOT Analysis
2. Industry Specific Index

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1.) SWOT Analysis
A scan of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the firm usually can
be classified as strengths (S) or weaknesses (W), and those external to the firm
can be classified as opportunities (O) or threats (T). Such an analysis of the
strategic environment is referred to as a SWOT analysis. SWOT analysis of the
Indian automobile sector gives the following points:
Strengths
• Large domestic market
• Sustainable labor cost advantage
• Competitive auto component vendor base
• Government incentives for manufacturing plants
• Strong engineering skills in design etc
Weaknesses
• Low labor productivity
• High interest costs and high overheads make the production
uncompetitive
• Various forms of taxes push up the cost of production
• Low investment in Research and Development
• Infrastructure bottleneck

Opportunities
• Commercial vehicles: SC ban on overloading
• Heavy thrust on mining and construction activity
• Increase in the income level
• Cut in excise duties

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 • Rising rural demand

Threats
• Rising input costs
• Rising interest rates
• Cut throat competition
2.) Industry Specific Index
Industry specific index also called as sectoral index are those indices, which
represent a specific industry sector. All stocks in a sectoral index belong to that
sector only. Hence an index like the BSE auto index is made of auto stocks.
Sectoral Indices are very useful in tracking the movement and performance of
particular sector.

BSE Auto Index comprises all the major auto stocks in the BSE 500 Index.

BSE AUTO Index 5 Year Chart

• Automobile Industry Index at BSE for 5 Year

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COMPANY
Above is the Indian Auto Industry Index(BSE) shows the up’s and down’s
over the period of 5 years. Intially in 2003 when major giants got listed on stock
exchange TATA Motors, Maruti Suzuki, etc. indian auto industry start picking up
growth slowly in the first end of 1st quarter index reaches to its highest in his
history. Than we saw a steady fall in the index and in the mid 2006 reaches to
years lowest point it again start booming and than year on year we saw a up and
down movement in the index as lots of new players came in Indian market with
foreign colaboration but when 2008 came with global slowdown it brings the
demand of automobile so low that index reaches to its lowest in past 5year .
Most of the company even shut down their manufacturing units for more than a
week, production came down because of less demand in the economy. Also no
further launches were made in mid or late 2008 and postponed to next year. We
have also saw a fall in FDI’s in automobile Industry. But in the beginning of 2009
right from 1st quarter auto industry again start regaining and we saw a
tremondous growth in auto industry which never seen before not in india but all
over the world. The demand of 2 and 4 Wheelers start increasing rapidly which
also force auto industry to employ more workers to meet demand and with in the
2nd quarter of FY2009-10 Auto index reaches to its highest ever crossed mark of
6000. And this growth of industry will be carry further as festive season still to
come, so there is a lot of scope to growth in this industry.

c.) COMPANY ANALYSIS (Maruti Suzuki & TATA Motors)

The company analysis shows the longterm strenght of the company that what is
the financial Position of the company in the market where it stand among its
competitors and who are the key drivers of the company, what is the future plans
of the company, what are the policies of government towards the company and
how the stake of the company divested among different groups of people.
Profile of Maruti Suzuki

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Maruti Suzuki is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue
earned. Until recently, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan. As of May 10, 2007, Govt. of India
sold its complete share to Indian financial institutions. With this, Govt. of India no
longer has stake in Maruti Udyog.

The turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After Tax
at Rs. 12,187ml.Maruti Suzuki India Ltd. has sold a total of 84,808 vehicles in
August 2009, an increase of 41.6%, compared to 59,908 vehicles in the same
period of 2008. The company's domestic sales in August 2009 increased 29.3%
to 69,961 vehicles, compared to 54,113 vehicles in August 2008. Total
passenger car sales in August 2009 increased 30.5% to 69,629 units, compared
to 53,351 units in August 2008 The company's exports increased 156.2% to
14,847 units, compared to 5,795 units in August 2008.

Profile of Tata Motors

Tata Motors Limited is India’s largest automobile company, reported gross
revenue (stand-alone) of Rs.28599.27 crores (2007-08: Rs.33093.93 crores) in
2008-09, a year marked by severe demand contraction in the automobile
industry. Revenues (net of excise) for the year were Rs. 25660.79 crores
compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%. The Profit
before Tax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08, a
decline of 60.7%. The Profit after Tax for the year was Rs.1001.26 crores
compared to Rs.2028.92 crores, a decline of 50.7%.
It is the leader in commercial vehicles in each segment, and among the
top three in passenger vehicles with winning products in the compact, midsize
car and utility vehicle segments. The company is the world’s fourth largest truck
manufacturer, and the world’s second largest bus manufacturer.

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Page 19 of 69
INTERNSHIP TRANING

Student’s work profile (Role and responsibilities):

The work profile of the student or the roles and responsibilities that are being

handled by the student on his internship program at Reliance Money as a

Marketing trainee since Dec 2009 are listed as below:

During the first week of the internship program, the interns were welcomed by

giving an induction program in order to make them understand his role and

responsibilities during his stay in the organization.

Being appointed as a Marketing Trainee at Reliance Money during the internship

program, my duty or the role was to assist the Sales department in their functions

and to complete the tasks assigned to me. I was given the responsibility of:-

Making Database of the existing clients, generating leads through cold calling.

Given task is to promote Reliance Money Financial Products.

Recruitment of Financial Advisors and motivating them to generate business.

Meeting the customer and giving information/ Product details to customer.

Verification and Tracking the Records of filled in application form, before

processing it further.

Handled with responsibility, whatever task has been assigned to me- Multitasking.

During the absence of the Trainers, it was my duty and responsibility to impart

product knowledge to the new joiners’.

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Description of live experiences:

During my internship at Reliance Money, I got an opportunity to learn a lot. Being a

part of the Sales Department, I was involved in the activities of Cold Calling, Lead

generation and Meeting the client. There I learned how the Marketing and sales

process goes & what are the activities involved in the process of pitching sales. It

involves the activities like meeting clients, giving information about the products

and the benefits associated with them.

How to promote the product, pitch the sales, there I learnt all such tactics. Usages

of computerized automate system for maintaining and tracking record of the status

of application forms of the customers.

Student’s contribution to the organization:

Understanding of the job profile quickly i.e. in short span of time.

An amount, as a service considered to be a fair and suitable equivalent for a fair

price or return.

Worth in usefulness or importance to the possessor; utility or merit.

One of the trustworthy employees in the organization.

Flexible in doing any kind of job that will be assigned in the organization. (Multi

task job).

Valuable Human Asset to the organization.

Sincere and punctual at work.

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PROJECT OVERVIEW
Overview of Demat Account.

In India, a Demat account, the abbreviation for dematerialized account, is a type of

banking account which dematerializes paper-based physical stock shares. The
dematerialized account is used to avoid holding physical shares: the shares are bought
and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it
became mandatory that any person holding a demat account should possess a Permanent
Account Number (PAN), and the deadline for submission of PAN details to the
depository lapsed on January 2007.

Procedure
1. Fill demat request form (DRF) (obtained from a depository participant or DP with
whom your depository account is opened).
2. Deface the share certificate(s) you want to dematerialize by writing across
Surrendered for dematerialization.
3. Submit the DRF & share certificate(s) to DP. DP would forward them to the
issuer / their R&T Agent.
4. After dematerialization, your depository account with your DP would be credited
with the dematerialized securities.

Why Reliance Money?

Reliance Money is the most cost-effective, convenient and secures way to
transact in a wide range of financial products and services.
The highlights of Reliance Money’s offering are:

Cost-effective: The fee charged by the affiliates of Reliance Money, through

whom the transactions can be placed, is among the lowest charged in the

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present scenario. As an introductory offer, pay a flat fee of just Rs. 500/- valid for
2 months or specified transactional value.

Convenience: You have the flexibility to access Reliance Money services in

multiple ways: through the Internet, Transaction Kiosks, Call & Transact (Phone)
or seek assistance through our Business Partners.

Security: Reliance Money provides secure access through an electronic token

that flashes a unique security number every 32 seconds (and ensures that the
number used for the earlier transaction is discarded). This number works as a
third level password that keeps you account extra safe.

Single window for multiple products:

Reliance Money, through its affiliates/partners, facilitates transactions in Equity,
Equity & Commodity Derivatives, Offshore Investments**, Mutual Funds, IPO’s,
Life Insurance and General Insurance products.

3 in 1 integrated access: Reliance Money offers integrated access to your

banking, trading and demat account. You can transact without the hassle of
writing cheques.

Demat Account with Reliance Capital:

Through Reliance Money, you get a hassle-free demat account with Reliance
Capital. The Annual Maintenance Charge for the Demat Account is just Rs. 50/-
per annum.
Other Services:
# through the portal www.reliancemoney.com, reliance Money provides:

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 • Reliable research, including views of external experts with an enviable
track record.
• Live news from Reuters and Dow Jones.
• CEOs’ / experts’ views on the economy and financial markets.
• The Personal Finance section provides tools that help you plan your
investments, retirement, tax, etc.
• Analyze your risk profile through the Risk Analyzer.
• Get a suitable investment portfolio using the Asset Allocator

Requirements for opening D-MAT cum trading account with

Reliance Money:
1. pan card copy
2. add proof/ tell bill/ e- bill/ voter id/ bank pass book/ passport
3. cancelled cheques of ICICI/ IDBI/HDFC/AXIS the company accepts the
cheques of other banks also but it will take the time of 3-4days because
the company has the tie ups with these banks only
4. payment cheques: (for opening the account initial charges) for people who
are in the corporate list Rs 500 for clients not in the corporate list Rs 750
5. Recent 3 photographs.

Secured log in with reliance money:

 Unique user id (different for each & every client)
 User password (which you need to change every 15 days)
 Security key (which changes in every 32 seconds and generate numbers
randomly)

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Brokerage:
 Reliance money is working on the zero brokerage concepts, because of
which education cess as well as service tax will be NIL.
 As per the SEBI guidelines any brokerage company can't charge zero
brokerage so it charges 0.01% of brokerage in the name of transaction
cost.
 Other than this the security transaction tax (STT) is also being charged @
 On Delivery: 0.125% On Intra day: 0.0125%
 Other than this holding charges are also being charged on sale of
securities @Rs 12 on
 1 Scrip & 1 Order (irrespective of the fact as to how much big be the value
of the complete order).

Reliance Money
BROKERAGE

ONLINE OFFLINE

RECHARGE VOUCHER RECHARGE VOUCHER

+
FRANCHISEE FEE

FRANCHISEE FEE Rs. 15/ TRANSACTION

Reliance has the concept of Recharge Vouchers

RECHARGE VOUCHER:

Page 25 of 69
Account Opening Charges :
For Regular Customers : Rs. 750.00
For Govt. Employees / Corporate : Rs. 500.00

Comparisons of reliance demat account with icici demat account:

• Minimum balance requirement-

An average minimum balance of Rs. 5000 is to be maintained during each

quarter, failing which Rs. 750 will be levied / debited from the customer's bank
account. In case of an insufficient balance to debit Rs. 750, ICICI Bank will have
right to close the account of the customer.

Reliance money provides zero balance account with Axis bank when you open demat
account.

• Annual service charge:

ICICI take Rs 500 as annual service charge but reliance takes only Rs 50.

• Agreement stamp paper:

ICICI charges Rs 100 as stamp but reliance doesn’t.

• Brokerage charge:

ICICI take 0.75% as brokerage but reliance 0.01%.

THE BENEFITS

 A safe and convenient way to hold securities;

 Immediate transfer of securities;
 No stamp duty on transfer of securities;
 Elimination of risks associated with physical certificates such as bad delivery,
fake securities, delays, thefts etc.;

Page 26 of 69
  Reduction in paperwork involved in transfer of securities;
 Reduction in transaction cost;
 No odd lot problem, even one share can be sold;
 Nomination facility;
 Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with
each of them separately;
 Holding investments in equity and debt instruments in a single account.
 Reduce brokerage charges.
 Enables quick ownership of securities on settlement resulting in increased
liquidity,
 Avoids confusion in the ownership title of securities
 Provides easy receipt of public issue allotments.

PORTFOLIO MANAGEMENT SERVICES (PMS)

Reliance Money Limited is one of the fastest-growing Stock Broking companies
in India, which also offers Commodity Broking, Distribution of Mutual Funds,
Insurance, Offshore investments, Equity Advisory services, Money Changing,
Money Transfer and Gold Coin Retailing, As Portfolio Managers, it is our
endeavor that every portfolio created by us is reflective of the values on which
Reliance Money has been built - a commitment towards transparency and a
strong research - driven investment process.

While your personal portfolio reflects your investment style and profile, managing
it requires considerable time and effort. Anticipating & analyzing market
movements, financial statements and studying macro-economic variables is
becoming increasingly complex. As you may not have the required time and
expertise to manage your investments, under Portfolio Management Services,
you delegate the responsibility of managing your portfolio to our team of
specialists who understand your investment objectives. Our team of Portfolio

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Managers, Research Analysts and Relationship Managers are working
continuously to create and actively manage your portfolio to provide you the best
returns in the fast-changing market dynamics.

BENEFITS OF PMS
Flexibility
• Efficient switch between cash & equities.
• Focused portfolio of select stocks / sector concentrations.
• Professional management with the objective of delivering consistent long-
term performance while controlling risks.

Hassle Free Operation

• PMS offers customized services, which take care of all the administrative
aspects of the client's portfolio, with periodic reporting.

Transparency
• Clients get regular statements and updates on their investments.
• Web-enabled access ensures that the client is just a click away from all
information related to his/her investments (i.e. securities one holds, cost &
current value, securities purchased & sold, dividends received,
performance of portfolio, market commentary, etc).
• Customized advise that suits individual requirements helps achieve the
desired financial & investment objectives.
• Easy access to dedicated Relationship Managers / Financial Advisors
through whom the client can interact with Fund Managers and discuss
concerns / feedback on his/her portfolio.
• The Portfolio Manager will provide audited statement of accounts at the
end of financial year to help the client assess the tax liabilities on his/her
portfolio, including Capital Gains report. (The PMS provider is a trustee
acting in a fiduciary capacity on behalf of the investor. Therefore, the tax

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 liability for a PMS investor would remain the same as if the investor is
accessing the capital market directly).
• Reliance Money endeavors to deliver competitive returns through a
diligent fund management framework, supported by rigorous analysis and
a proven investment methodology,

INVESTMENT OBJECTIVE
Generate capital appreciation in medium to long term through investments in
equities and equity related instruments comprising predominantly large cap
companies, this scheme will be benchmarked to the Nifty 50 stocks.

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INTRODUCTION
4.1 AIM & OBJECTIVES
AIM: The Role of Equity Analyst in Share Market.

OBJECTIVES:

• To study of Share Market.

• To Study the derivatives in stock market.
• To study the equity analysis of automobile industry.

4.2 RESEARCH METHODOLOGY

Definition of Research: As defined by Redman and Mory, Research is a

Systemized effort to gain new knowledge.
Definition of Research Methodology: It is a way to systematically and
scientifically solve the research problem.

Types of Research:
• Library Research
 Historical Records.
 Documents.
• Field Research:
 Mass Observation
 Questionnaire
 Personal Interview
 Group Interview
• Laboratory Research:
 Small Group Study of Random Behavior
 Play and Role Analysis

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 In this project, I have applied Field Research Method in which
Descriptive research methodology was adopting to portray the characteristics
of the situation and of the individuals by using Questionnaire as a tool for
primary data collection.
4.3 Data Collection:
There are several ways of collecting the appropriate data which differ
considerably in context of money costs, time and other resources at the disposal
of the research.
There are two types of data as follows,
• Primary data:
The primary data are those that are collected a fresh and for the first time
and thus happen to be original in character.
• Secondary data:
The secondary data are those which have already been collected by
someone else and which have already been passed through the statistical
process. In this project, the primary data has been collected through
questionnaire. The sources of secondary data collection are.
 Book (C.R.Kothari )
 Internet
 Intranet of the company.

Sample Technique:
The sampling method use for the selection of customers is Simple
Random Sampling I tried to cover as many customers as possible, to give my
report more logical support.
Sample Size:
Sample size consisted of 30 respondents. All the respondents were from the
Bangalore region only.

4.4 LIMITATIONS OF THE RESEARCH

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 1. The research is confine to a certain parts of Bangalore and does not
necessarily shows a pattern applicable to all of Country.

2. Some respondents were reluctant to divulge personal information, which

can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings.

4.5 DATA ANALYSIS & INTERPRETATION

Q1. Do you invest Your Money to grow?

Options Percentage of Respondents

Yes 88
No 12

Interpretation :
88% of the respondents say yes they invest their money to grow. This is because
the respondents whose income is above 10000 are investing their money to
grow.

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Q2. Where do you invest?

Options Percentage of Respondents

Mutual Funds 30
Shares 20
Commodity Market 6
Fixed Deposits 22
Bonds 16
Property 4
Others 2

Interpretation:
Most of the respondents invest there money in Fixed Deposits, Mutual Funds
and Share Market only 6% of the respondents invest there money in Commodity
Market. Most of the respondents Mutual Funds and Fixed Deposits because they
don’t have to manage their investment.

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Q3. From which option you will get the best returns?

Options Percentage of Respondents

Mutual Funds 20
Shares 22
Commodity Market 16
Fixed Deposits 18
Bonds 8
Property 14
Others 2

Interpretation:
Most of the respondents say they will get more returns in Share Market. Since
Share Market is said to be the best place to invest to get more returns. The risk
in the investment is also high.

Q4. Why you have not invested in Share Market?

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Options Percentage of Respondents
Risk 42
Lack of Knowledge 38
Return Factor 20

Interpretation:
Most of the respondents say there is more risk in shares. Risk is the most
important factor that people don’t want to take for their money.

Q5. What would you like more?

Options Percentage of Respondents

More benefits 22

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More security 62
Others, Please specify 16

Interpretation:
22% of the respondents say they get more benefits, 62% of the respondents say
they would like more security. Most of the respondents are service class people
hence they want more security for their money.

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Q6. If you invested in Share market, what has been your experience?

Options Percentage of Respondents

Satisfactory returns received 20
Burned fingers 8
Unsatisfactory results 6
No 66

Interpretation:
20% of the respondents have invested in Share market and received satisfactory
returns, 66% of the respondents have not at all invested in Share Market. Some
of the investors face problems due to less knowledge about the market. Some of
the respondents don’t have complete overview of the happenings and invest
their money in wrong shares which result in Loss. This is the reason most of the
respondents prefer Portfolio Management Services to trade.

Q7. How do you trade in Share Market?

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Options Percentage of Respondents
Hedging 24
Speculation 40
Investment 36

Interpretation:
24% of the respondents go for hedging & 40% go for investment.

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Q8. How do you manage your portfolio?
Options Percentage of Respondents
Self 66
Depends on the company for 34
Portfolio Management

Interpretation:
66% of the respondents say they themselves manage their portfolio and 34% of
the respondents say they depend on the security company for portfolio
Management. 34% of the respondents prefer PMS of the company because they
don’t have to keep a close eye on their investment.

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Q9. If you want to trade with Reliance Money, then why

Options Percentage of Respondents

Services 20
Investment Tips are good 12
Brokerage 38
Research 30

Interpretation:
30% of the respondents say they trade with Reliance Money because of their
research and 38% of the respondents say they trade with Reliance Money
because of Brokerage charges, 20% respondent’s trade with Reliance Money
because of its services.

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Q10. Are you using PMS of Reliance Money?

Options Percentage of Respondents

Yes 36
No 64

Interpretation:
36% of the respondents are using PMS of Reliance Money because of their trust
and research.

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Q11. What was your experience about Portfolio Management Services of
Reliance Money?

Options Percentage of Respondents

Earned Profit 52
Faced Loss 18
No Profit No Loss Situation 30

Interpretation:
52% of the respondents say that they have earned Profit through the portfolio
management services of Reliance Money.

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Q12. Does the Reliance Money keep its process transparent?
Options Percentage of Respondents
Yes 66
No 34

Interpretation:
66% of the respondents say that Reliance Money keeps its process transparent
because they inform the customers about the changes in the market.

Q13. Do you recommend Portfolio management services of Reliance Money to

others?
Options Percentage of Respondents
Yes 92
No 8

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Interpretation:
92% of the respondents say yes they recommend Reliance Money to others.
MARKETING ANALYSIS
Analysis of the two companies in share market

RATIO ANALYSIS OF TATA MOTORS AND MARUTI

SUZUKI
EPS measures the profit available to
the equity shareholders per share, that
is, the amount that they can get on
every share held. Till 2008 both the
companies had a rising EPS but in
2009 both of them fall and the effect
more on Tata motors as they bought
two brands Ford Motors and fall in
sales results in low EPS. But as trend
shows TATA motors have potential so
an shareholder expect better in future.

EPS = Net income- Dividends in Preferred Stock

Average Outstanding shares

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 The trend shows that Tata’s net profit
margin is quite stable until it falls to 3.77 in
2009. While the net profit of India’s no.1
car manufacturer Maruti Suzuki shows a
negative trend from 2007 onwards. But the
future prospect for both the company’s
profit is higher. Profit margins come down
as recession hits economy badly hence sales
get reduced and cost get increased very
much.
Net profit Ratio = (Net profit) × 100
(Net sales)

Both giants of Automobile industry shows

positive trend in Sales Revenue over the
past 5year. However recession brought
hurdles but both companies have potential
to grow in future as lots of products are still
to add in their portfolio. Moreover increased
demand in foreign market also seems to be a
positive signal for better future.

The quick ratio is a very stringent

measure of solvency. A general rule of
thumb suggests that the quick ratio
should be around 1. Maruti is always
showing a positive trend as its ratio is
always greater than 1 except in 2008,
while TATA motors was doing good till
2007, but the performance decreased
from 2008 onwards as shortage of cash
was there and current liabilities and
provision increased by Rs800Cr.

A high debt to equity ratio

suggests that a company has

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 financed its growth mostly via debt. We see that the debt –equity ratio of TATA
motors is very high compared to that of Maruti. It means that a lot of debt is used
by TATA’s to finance its increased operations. Sometimes the cost of the debt
financing may outweigh the return that the company generates on the debt
through investment and business activities and can lead to bankruptcy. Maruti is
going very swiftly in this field.

Debt-Equity Ratio= Total Debt

Total Equity

The current ratio is a convenient and

reliable tool for measuring a company's
level of liquidity. The ratio acts as an
indication that the firm is able to
generate funds to make all needed
payments in the future; thus, the ratio
indicates whether the firm is likely to be
a going concern. Both the companies
possess a good ratio but the ratio which

is close to 2 is desirable, so we see in graph that

Maruti has more strong liquidity than TATA Motors as its current ratio is always greater
than 1. Maruti is more successful in paying off its liabilities. Expansion plans of TATA
brought down its cash & Bank Balance and increase of outside liabilities.

Tata motors and Maruti Suzuki both

the companies showed a positive
trend in paying dividends till 2008,
but the scenario changed in 2009 as
both the company’s dividend per
share fell. According to graph
TATA’s dividend was much higher
than that of Maruti, it always
provided dividend of above 10 per
share to its shareholders while
maruti stick to below 5 per share,
even though the fall in dividend in
2009, still both the companies are earning good profit.
Dividend per Share = Total amount of
Dividend
Share Outstanding
Financial Analysis
1. Share Holding Pattern for Quarter Ended 30-June-09

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Above is the updated share holding pattern of
TATA motors which shows that Indian promoter
share in the company is 41% that means if they
are not in the position to raise further money from
general public, Company already raised huge
money by selling their large stake to institutional
investors about 27%. General Public also have
quite large stake in the company compare to its
competitors.
Being a venture of Japanese company Suzuki big
stake of the company is held by foreign promoters
which shows that they can divest their part(small
part) to raise money in future. However
institutional investors also held 39% major stake
in the company but general public have very small
part which shows that less presence of share in the
secondary market hence low volume trading in
stock market.

Ventures & Products

TATA Motors
Tata Motors is try to be in a position to dominate the Indian Auto industry, at least in
four-wheeler segment. Tata Motors have announced that they are interested in the idea of
designing electric cars. To take it a step further Tata has also initialized plans for the
manufacture of a hybrid car which it will market with Chryster in the U.S.
After the launch of Nano, Tata also apparently has its eye on the European and U.S.
markets. The company hopes to have a version for Europe by 2011 and one for the U.S
perhaps by 2012. Tata Motors, is now aiming to launch its cars in Indonesia and is also
planning to sell Nano in South America with the help of Fiat. After launching the world’s
cheapest car, Nano, Tata Motors is looking east, towards neighboring Myanmar to boost
its sales by setting up a truck manufacturing plant. As part of its expansion plans in
Southeast Asia, Tata Motors had inked a joint venture with Thailand’s Thonburi Auto
Assembly’s to manufacture up to 35,000 one tone pickup trucks a year over the next 3-5
years. Tata Motors, is searching options to pump approximately Rs. 8,000 cr. During the
next 3-4 years on capital expenditure and product development.

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Maruti Suzuki
Maruti Suzuki has expanded the capacity at its Manesar plant to 1.7 lakhs unit per annum
from January 2009. By the year 2010, Suzuki Motors plan to increase their dealership in
India. This is a step to increase their sales to one million units as well as for a better
position in the Indian auto market. The expansion is estimated to cost $ 3.5 billion, out of
which a quarter will be assigned for amplifying leadership network to 1000 in number.
As Maruti Suzuki eyes one million sales by 2010, they have firmed up a massive
expansion plan of its service network and plans to expand it to 1700 towns and cities
from the current of about 1200. The company plans to increase the number of service
stations and workshops to over 3800 from about 2800 currently. They have also been
coming with specific sales promotion programmes targeted at interior regions, among
them is the “Mera Sapna Meri Maruti: New Panchayati Scheme”. The Haryana
government has allotted 700 acres of land to Maruti Suzuki for hi – tech Research &
Development complex at Rohtak. The upcoming facility, will see an investment in the
range of Rs. 1,000 cr. to 1,500 cr. And will introduce world class R&D facilities into
India. While the development of the allotted land and construction of the test tracks will
be completed in the first phase by 2012, the overall R&D facilities will be progressively
completed by 2015.
2. Government Policies Towards Indian Automobile Industry

Automobile industry in India also received an unintended boost from stringent

government auto emission regulations over the past few years. This ensured that vehicles
produced in India conformed to the standards of the developed world.

Though it has an advantage in India, thanks to low costs and government policies it soon
faces stiff competition from it multinational competitors all eyeing for a share in the ever
growing Indian auto sector. The policies adopted by Government will increase
competition in domestic market, motivate many foreign commercial vehicle
manufactures to set up shops in India, whom will make India as a production hub and
export to nearest market.

• Bring in a minimum foreign equity of US $ 50 Million if a joint venture involved

majority foreign equity ownership

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 • Automatic approval for foreign equity investment upto 100% of manufacture of
automobiles and component is permitted
• FIIs including overseas corporate bodies (OCBs) and NRIs are permitted to invest
up to 49 per cent of the paid-up equity capital of the investee company, subject to
approval of the board of directors and of the members by way of a special
resolution. .
• Investments in making auto parts by a foreign vehicle maker will also be
considered a part of the minimum foreign investment made by it in an auto-
making subsidiary in India. The move is aimed at helping India emerge as a hub
for global manufacturing and sourcing for auto parts.
• Specific component of excise duty applicable to large cars and utility vehicles
will be reduced to 15,000 rupees per vehicle from 20,000 rupees earlier.
• The Proposal by the Govt. to set up an expert group to advise on a viable and
sustainable system of pricing petroleum products, as this will surely had an
impact on the Automobile Industry.
The announced reduction on the basic customs on bio-diesel is great news for all
companies working on environmental saving technologies.

Technical analysis
Technical analysis refers to the study of market generated data like prices & volume to
determine the future direction of prices movements. Technical analysis mainly seeks to
predict the short term price travels. It is important criteria for selecting the company to
invest. It also provides the base for decision-making in investment. The one of the most
frequently used yardstick to check & analyze underlying price progress. For that matter a
verity of tools was consider.
This Technical analysis is helpful to general investor in many ways. It provides important
& vital information regarding the current price position of the company. Technical
analysis involves the use of various methods for charting, calculating & interpreting
graph & chart to assess the performances & status of the price. It is the tool of financial
analysis, which not only studies but also reflecting the numerical & graphical relationship
between the important financial factors.
The focus of technical analysis is mainly on the internal market data, i.e. prices &
volume data. It appeals mainly to short term traders. It is the oldest approach to equity
investment dating back to the late 19th century.

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Basic premises of technical analysis:
1. Market prices are determined by the interaction of supply & demand forces.
2. Supply & demand are influenced by variety of supply & demand affiliated factors both
rational & irrational.
3. These include fundamental factors as well as psychological factors.
4. Barring minor deviations stock prices tend to move in fairly persistent trends.
5. Shifts in demand & supply bring about change in trends.
6. This shift s can be detected with the help of charts of manual & computerized action,
because of the persistence of trends & patterns analysis of past market data can be used
to predict future prices behaviors.
Drawbacks / limitations of technical analysis:
1 Technical analysis does not able to explain the rezones behind the employment or
selection of specific tool of Technical analysis.
2 The technical analysis failed to signal an uptrend or downtrend in time.
3 The technical analysis must be a self defeating proposition. As more & more people
use, employ it the value of such analysis trends to reduce.

Usually the following tools & instruments are used to do the technical analysis:
Price Styles
Price in a chart can be displayed in three styles: bar, line, and candlestick.
Bar: It gives the detailed information about every aspect.

Line:
A line chart simply connects the closing prices from one period to the next. This
type of chart is ideal for securities with no high or low price data i.e., mutual funds or
that is even with the equity in case of base price.

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Price Patterns:

Overview:
A basic principle of technical analysis is that security prices move in trends. We also
know that trends do not last forever. They eventually change direction and when they do,
they rarely do so on a dime. Instead, prices typically decelerate, pause, and then reverse.
These phases occur as investors form new expectations and by doing so, shift the
security's supply/demand.
The changing of expectations often causes price patterns to emerge. Although no two
markets are identical, their price patterns are often very similar. Predictable price
behavior often follows these price patterns. Chart patterns can last from a few days to
many months or even years. Generally speaking, the longer a pattern takes to form, the
more dramatic the ensuing prices move.
Head and Shoulders:
The Head-and-Shoulders price pattern is the most reliable and well-known chart pattern.
It gets its name from the resemblance of a head with two shoulders on either side. The
reason this reversal pattern is so common is due to the manner in which trends typically
reverse.
An up-trend is formed as prices make higher-highs and higher-lows in a stair-step
fashion. The trend is broken when this upward climb ends. As you can see in the
illustration (Intel, INTC), the "left shoulder" and the "head" are the last two higher-highs.
The right shoulder is created as the bulls try to push prices higher, but are unable to do
so. This signifies the end of the up-trend. Confirmation of a new down-trend occurs when
the "neckline" is penetrated.

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During a healthy up-trend, volume should increase during each rally. A sign that the
trend is weakening occurs when the volume accompanying rallies is less than the volume
accompanying the preceding rally. In a typical Head-and-Shoulders pattern, volume
decreases on the head and is especially light on the right shoulder.
Following the penetration of the neckline, it is very common for prices to return to the
neckline in a last effort to continue the up-trend. If prices are then unable to rise above
the neckline, they usually decline rapidly on increased volume. An inverse (or upside-
down) Head-and-Shoulders pattern often coincides with market bottoms. As with a
normal Head-and-Shoulders pattern, volume usually decreases as the pattern is formed
and then increases as prices rise above the neckline
Rounding Tops and Bottoms:
Rounding tops occur as expectations gradually shift from bullish to bearish. The gradual,
yet steady shift forms a rounded top. Rounding bottoms occur as expectations gradually
shift from bearish to bullish. Volume during both rounding tops and rounding bottoms
often mirrors the bowl-like shape of prices during a rounding bottom. Volume, which
was high during the previous trend, decreases as expectations shift and traders become
indecisive. Volume then increases as the new trend is established

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Double Tops and Bottoms
A double top occurs when prices rise to a resistance level on significant volume, retreat,
and subsequently return to the resistance level on decreased volume. Prices then decline
marking the beginning of a new down-trend.
A double bottom has the same characteristics as a double top except it is upside is down.

Tops T1 & T2 are almost at the same level & trend violated the support line formed with
the help of bottom B1 hence, a Double top reversal pattern has been formed. To measure
the likely downward reaction, measure the distances between the intervening bottom &
the double tops. Deduct these distances from the intervening bottom & that will be the
downward target of the double top reversal pattern.

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Bottom B1 & B2 are almost at the same level & trend violated the resistances level
formed with the help of top T1 hence; a Double bottom reversal pattern has been formed.
To measure the likely upward reaction, measure the distances between the intervening
top & the double bottom. Deduct these distances from the intervening top & that will be
the upward target of the double bottom reversal pattern.

Tops T1, T2 & T3 are almost at the same level & trend violated the support line formed
with the help of bottom B1 because the B1 is the lowest bottom hence, a triple top
reversal pattern has been formed. To measure the likely downward reaction, measure the
distances between the intervening bottom & the triple tops. Deduct these distances from
the intervening bottom & that will be the downward target of the triple top reversal
pattern.

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Bottom B1, B2 & B3 are almost at the same level & trend violated the resistances level
formed with the help of top T1 because the T1 is the heights top hence, a triple bottom
reversal pattern has been formed. To measure the likely upward reaction, measure the
distances between the intervening top & the triple bottom. Deduct these distances from
the intervening top & that will be the upward target of the triple bottom reversal pattern.
SENSEX AND TATA MOTORS

Tenet four of Dow Theory is that the averages must confirm each other that mean that the
performance of related industries should move in one direction for the health of a
particular industry. When the performances diverge, it is warning that change is in the
air. However, we can see that the movement of stock prices of Tata motors and SENSEX
are more or less in the same direction. One thing which very clear is TATA motors react
very badly whenever there is a negative sentiments comes in market results SENSEX

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comes down, and TATA motors also comes down. Different sets of colored line in above
chart prove this fact.

Tenet five is that Trends are confirmed by volume. In case of Tata motors, when the
people stopped investing during recession, prices went down and after recession, when
people came back to the market, prices also increased.

1. Resistance & Support Level

This Technical tool helps in telling that what would be the price band of share price in
which it move in near future on the basis of past high and low levels made by a particular
scrip. Resistance Level shows the price above which share price will not move in normal
case on the other hand Support level shows the minimum share price which can be
touched by share or crossing of this share will not be there in normal market condition
Following is the Resistance & Support level of Maruti Suzuki & TATA Motors for the
period of 2 months:

Resistance Level
Rs.1425 approx.

Support level
RS.1275 approx.

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 (1-Jul-09 to 7-Sept-09) Resistance Level
Rs.490 approx.

Support Level
Rs.430 approx.
As it is seen in the past 4
months TATA share price
moved up and it keeps
making on new level so
perfect resistance level for
this share is not easy to
predict as performance of
this share is very good
compare to all scrips of
The above band of resistance and support level shows that the price of shares will move
in between this range only until unless any wrong reaction came out in economy or when
any correction takes place the prices will move in between this band only.

2. Simple Moving Average (50 periods)-Medium Term

A Moving Average is an indicator that shows the average value of a security's price over
a period of time. The method of interpreting a moving average is to compare the
relationship between a moving average of the security's price with the security's price

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itself. In above figure we have compare the share price of Tata Motor and Maruti with
moving average of 50 period of Tata Motors, Maruti respectively.
A buy signal is generated when the security's price rises above its moving average and a
sell signal is generated when the security's price falls below its moving average. It is
designed to keep you in line with the security's price trend by buying shortly after the
security's price bottoms and selling shortly after it tops. Yellow area in the graph
indicates buy signal and Green area indicates sell signal. In the near future both the
companies show buy signal as their security prices rises above its moving average. It
shows that both companies are performing better, so industry as whole is also performing
outstanding. So keeping a hold position for the companies would be profitable in future.

3. Long Term Simple Moving Average (200 periods)

In the above chart Moving Average is an indicator that shows the average value of a
security's price over a period of time. We have compare the share price of Tata Motor
and Maruti with moving average of 200 period of Tata Motors, Maruti respectively by
taking share prices of 5 year to take out the Moving average for 200 periods. This Tool of
200 Periods tells us about the position of share to buy or sell for a long period say for 9-
12 months.
A buy signal is generated when the security's price rises above its moving average and a
sell signal is generated when the security's price falls below its moving average. Yellow

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area in the graph indicates Buy signal and Green area indicates Sell signal. In the near
future both the companies show Buy signal as their security prices rises above its moving
average. This shows that an investor can kept a hold position or can buy for longer period
of time but as we can see in case of Maruti the moving average line is also rising which
shows that Buy n hold position for very long period could be unprofitable a minor
correction in the share price can bring down the share price line and then moving average
line will easily cross the share price line.
4. TATA MOTORS MACD

Sell

Overbough Oversol Buy

Above graph shows the MACD of TATA motors for the period of 6 months. The MACD
is the difference between a 26-day and 12-day exponential moving average. A 9-day
exponential moving average(EMA), called the "signal" (or "trigger") line is plotted on
top of the MACD to show buy/sell opportunities. here are three popular ways to use the
MACD: crossovers, overbought/oversold, and divergences.
Crossovers: Yellow area shows that there was situation when sell position occurred in
the end of month June till mid of July as MACD curve below EMA or Signal line shows
a sell situation otherwise we saw a buy position of TATA Motors most of the time Light
Green area shows that investor want to buy and wan to be in hold position. The trend of

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buying is seems to be over here or in coming few days and a selling or booking of profit
could be seen hence MACD line could fall below EMA in coming time.

MARUTI SUZUKI MACD

Overbough Oversol

Crossover: The above graph shows the MACD of Maruti Suzuki, here Yellow area
shows the selling position as MACD line is below EMA line the Light Green area shows
the buy position which occur last time in the end of July but now buy position for Maruti
is created as EMA or signal line seems to be below MACD line and it will probably
continue in near future.
For both TATA Motors & Maruti Suzuki
Overbought/Oversold: The amount of green lines in above graph on the up side shows
the overbought situation by the investor which mean that investor buy more shares at this
time and oversold situation occurs when green line is on the downside.
Moving Average Crossover

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 20 Periods S

B
50 Periods

A crossover occurs when a faster Moving Average (i.e. a shorter period Moving
Average-20 periods) crosses either above a slower Moving Average (i.e. a longer period
Moving Average-50 periods) which is considered a bullish crossover or below which is
considered a bearish crossover. M.A.C helps in telling buying opportunities when the
shorter moving average crosses above the longer moving average and selling
opportunities when the shorter moving average crosses below the longer moving average.
Following is the MAC of TATA Motors & Maruti Suzuki to understand the position of
both companies average share movement
Above is the MAC graph of TATA Motors for the period of 6 months in which ‘S’
denote the selling situation or position whereas ‘B’ is the point after approx 1 month
when we saw a bounce back in share prices hence a buy signal occurs which is because,
longer moving average of 50 periods cut shorter moving average from the lower side and
shows a holding position of shares in coming future also. The increasing trend in the
prices after buy signal of shares shows that good amount of profit could be achieved in
future if stick with hold position.
A move below the moving average suggests that the bears are in control of the price
action and that the asset will likely move lower, above yellow circle shows that area
when price fall below average price and then it move onto lower side.
Below is the MAC graph of Maruti Suzuki for past 6 months in which we haven’t see
any sell position till yet the movement of share price is always on the positive side that is
increasing so we can say that buying opportunities is always there in case of Maruti
Suzuki. A cross above a moving average suggests that the bulls are is in control and that

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the price may be getting ready to make a move higher and Maruti Share Prices show that
trend of moving up prices.

Buy

No Sell Position or Always Position of Buy

5. BOLLINGER BAND
Bollinger bands are used to measure a market’s volatility. Basically, this little tool tells
us whether the market is quiet or whether the market is LOUD! When the market is
quiet, the bands contract; and when the market is LOUD, the bands expand.

TATA Motors

On the graph it can be seen the overall trend of the market and quick reference for supply
and demand as well as support and resistance areas by using a 20 days moving average
and 2 standard deviation in calculating the Bollinger Bands. As we can see in the graph is
that the at most of the time the graph lies between the middle band and the upper band
which shows an increasing price trend in the market and it’s called Riding the Band.

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When the stock is outside the upper end of the Bollinger band it is considered as
‘OVERBOUGHT’, which means that stock has gone up too fast and when a stock is
outside the lower band it is ‘OVERSOLD’. An oversold stock has gone down too fast.
During the months of April, May, mid July and mid august the stock of TATA motors
crossed the upper band which means that during these periods the prices rose very fast,
while in mid of July the stock went below the lower band, i.e. The prices fell too fast and
are susceptible to bargain hunting. The overbought and oversold stocks are apt to reverse
course. It’s also seen that the volatility increased to new highs after July because the
bands started to widen. It’s better to buy stocks when it touches the lower band, but in
regards all other technical factors should be considered while buying.
Maruti Suzuki

Initially the bands show slight slope and lie approximately parallel to each other, this
means that the price of the stock is oscillating up and down between the bands through a
channel. The stock also shows overbought many times during the six months but it did
not show any oversold trend, therefore it becomes an important factor in determining the
price trend as it tells that the prices have not fallen very fast in these six months. During
the june month the bands contracted very much which shows low volatility, but then
onwards the bands started to widen which creates high volatility and looking at the future
scenario it may be analysed that the stock will see a fall as at the end of august the band
was overbought, because when price is trading near the upper or lower Bollinger band
line, there is a possibility of trend reversal.
The buy and sell signals are not given when prices reach the upper or lower bands. Such
levels merely indicate that prices are high or low on a relative basis. A security can
become overbought or oversold for an extended period of time. Knowing whether or not

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prices are high or low on a relative basis can enhance the interpretation of other
indicators, and it can assist with timing issues in trading.

CONCLUSION
Indian Automobile Industry is in the growth phase and the expected
growth rate is 9-10% for FY2009-10 as compared to last year growth rate which
was just 0.7% and the above facts and figures in our study also support this
truth.
The Indian auto market is still untapped. The majority of the people in
country don’t own a four wheeler and all the major auto companies are trying to
increase their sales by several moves. Like TATA has launch NANO the people’s
car and now TATA motors is also planning to come out with an electric car as
well as hybrid car, moreover in two wheeler segment many companies like
Mahindra and Mahindra grow even more than expectations.
From the Technical Analysis of both companies i come to know that
the share price of Maruti will move in the band of Rs.1275 to Rs.1425 and that of
TATA Motors will move in the range of Rs. 430 to Rs. 490 if certain correction
made in the market.
I have also come to know that share price movement of TATA Motors
is just according to the movement of SENSEX, whenever there is a negative
sentiment in the market regarding TATA Motors there is a steep fall in the stock
price of TATA Motors but we have seen quick recovery in its share prices to
regain its primary trend E.g. as we seen in last 3-4 months TATA recovers
approx.90% after downfall.

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 By analyzing the current trend of Indian Economy and Automobile
Industry I can say that being a developing economy there is lot of scope for
growth and this industry still have to cross many levels so there is huge
opportunities to invest in and this is proving as more and more foreign
Companies setting up there ventures in India.

RECCOMDATION:
A. INITIAL MARGIN FIXATION METHODOLOGY.
B. DAILY CHANGES IN MARGIN.
C. MARGINING FOR CALENDER SPREADS.
D. MARGIN COLLECTION AND ENFORCEMENT

E. The trading should take place through an online screen based

trading system which also has a disaster recovery site. The per half
hour capacity of the computers and the network should be at least 4
to 5 times of the anticipated peak load in any half hour or of the actual
peak load seen in any half hour during the preceding six months.
This shall be reviewed from time to time on the basis of experience.

F. The clearing of the derivatives market should be done by an

independent clearing corporation, which satisfies the conditions
listed.

G. The exchange must have an online surveillance capacity which

monitors positions, prices and volumes in real-time so as to deter
market manipulation. Price and position limits should be used for
improving market quality.

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 H. Information about trades, quantities and quotes should be
disseminated by the exchange in real time over at least two
information vending networks which are accessible to investors in the
country.

I. The exchange should have at least 50 members to start

derivatives trading.

J. If derivatives trading is to take place at an existing cash market, it

should be done in a separate segment with a separate membership i.e.,
all members of the existing cash market would not automatically
become members of the derivatives market.

K. The derivatives market should have a separate governing

council which shall not have representation of trading/clearing
members of the derivatives Exchange beyond whatever percentage
SEBI may prescribe after reviewing the working of the present
governance system of exchanges.

BIBLIOGRAPHY

Books:

• Philip Kotler. (1999):’Marketing Management’ Prentice Hall Of India Pvt.

Ltd., New Delhi.

Magazines

• Business World.
• Business Week
• Today

REFERENCES

• www.reliancemoney.com
• www.google.com

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• www.wikipedia.com

Page 67 of 69
ANNEXURE

QUESTIONNAIRE

Name: ___________________________________
Address: ___________________________________
Contact No.:__________________________________

Q1. Do you invest Your Money to grow?

a. Yes b. No

Q2. Where do you invest?

a. Mutual Funds b. Shares
c. Commodity Market d. Fixed Deposits
e. Bonds f. Property
g. Others

Q3. From which option you will get the best returns?
a. Mutual Funds b. Shares
c. Commodity Market d. Fixed Deposits
e. Bonds f. Property
g. Others

Q4. Why you have not invested in Share Market?

a. Risk b. Lack of Knowledge
c. Return Factor

Q5. What would you like more?

a. More benefits b. More security
c. Others, Please specify

Q6. If you invested in Share market, what has been Your experience?
a. Satisfactory returns received b. Burned fingers
c. Unsatisfactory results d. No

Q7. How do you trade in Share Market?

a. Hedging b. Speculation
c. Investment

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Q8. How do you manage your portfolio?
a. Self b. depends on the company
For Portfolio Management

Q9. If you want to trade with Reliance Money, then why

a. Services b. Investment Tips are good
c. Brokerage d. Research

Q10. Are you using PMS of Reliance Money?

a. Yes b. No

Q11. What was your experience about Portfolio Management Services of

Reliance Money?
a. Earned Profit b. Faced Loss
c. No Profit No Loss Situation

Q12. Does the Reliance Money keep its process transparent?

a. Yes b. No

Q13. Do you recommend Portfolio management services of Reliance Money to

others?
a. Yes b. No

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