A STUDY ON CAPITAL MARKET WITH REFERENCE TO TECHNICAL ANALYSIS

APEEJAY SCHOOL OF MANAGEMENT

CORPORATE MENTOR FACULTY MENTOR

MR. LALIT KHANNA SUBMITTED BY GAURAV SHARMA 20/110

DR. SHALINI VERMANI

SMART EQUITY

Smart Equity Brokers Pvt. Ltd. was established on 1st May 2006 as Smart Equity Brokers Pvt. Ltd., by a young Chartered Accountant, Mr. Arun Khera, and Supported by Mr. Ravi Raj Jain. Smart is a full service brokerage house providing comprehensive advisory services to its clients under one roof, enabling to manage all financial needs.

CAPITAL MARKET

Capital markets are markets where people, companies, and governments with more funds than they need transfer those funds to people, companies, or governments who have a shortage of funds. Structure Primary Market- The primary market is where new securities are issued Secondary Market- . The secondary market is the market where primarily issued securities are traded

TECHNICAL ANALYSIS

Technical analysis is a security analysis technique that has the ability to forecast the future direction of prices through the study of past market data, primarily price and volume. It can be done by analyzing chart patterns, technical indicators and oscillators or combination of the two.

IMPORTANCE OF TECHNICAL ANALYSIS Takes Less Time

One can speculate faster with charts and price data.
Ready Resources There is an abundance of technical indicators available which lead to good analysis and strategies.

Inexpensive These technical indicators and software packages are relatively inexpensive.

ASSUMPTIONS

The Market Discounts Everything

Technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company.

Price Moves in Trends

In technical analysis, price movements are believed to follow trends.

History Tends To Repeat Itself

Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement

TREND
A trend is really nothing more than the general direction in which a security or market is headed Types of Trend

UPTREND

DOWNTREND

SIDEWAYS

SUPPORT & RESISTANCE

Support is the price level through which a stock or market seldom falls Resistance, on the other hand, is the price level that a stock or market seldom surpasses .

IMPORTANCE OF VOLUME

Any price movement up or down with relatively high volume is seen as a stronger, more relevant move than a similar move with weak volume.

TYPES OF CHARTS

LINE

BAR

CANDLESTICK

TECHNICAL CHART PATTERNS

HEAD & SHOULDERS DOUBLE TOP & BOTTOM GAP TRIPLE TOP TRIPLE BOTTOM BEARISH ENGULFING BULLISH ENGULFING DOJI EVENING STAR

HAMMER HANGING MAN HARAMI PATTERN INVERTED HAMMER MORNING STAR SHOOTING STAR WINDOWS THE FALLING THREE METHOD THE RISING THREE PATTERN

SOME OF THE IMPORTANT CHART PATTERNS(CANDLE STICK)

HEAD & SHOULDERS

There are two versions of the head and shoulders chart pattern. Head and shoulders top (shown on the left). Head and shoulders bottom, also known as inverse Head and shoulders (shown on the right).

Double Top Double Bottom

In the case of the double top pattern in Figure 3, the price movement has twice tried to move above a certain price level. In the case of a double bottom (shown on the right), the price movement has tried to go lower twice.

Bearish Engulfing Pattern

The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, usually occurring at the top of an uptrend. The pattern consists of two Candlesticks: Smaller Bullish Candle (Day 1) Larger Bearish Candle(Day 2)

Bullish Engulfing Pattern

The Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occurring at the bottom of a downtrend. The pattern consists of two Candlesticks: Smaller Bearish Candle(Day 1) Larger Bullish Candle(Day 2)

DOJI

The Doji is a powerful Candlestick formation, signifying indecision between bulls and bears. A Doji is quite often found at the bottom and top of trends and thus is considered as a sign of possible reversal of price direction

HAMMER

The Hammer candlestick formation, as one could predict from the name, is a bullish sign. This pattern occurs mainly at the bottom of downtrend and is a warning of a potential reversal downward.

HANGING MAN

The Hanging Man candlestick formation, as one could predict from the name, is a bearish sign. This pattern occurs mainly at the top of uptrend's and is a warning of a potential reversal downward.

HARAMI

The Harami Pattern is considered either bullish or bearish based on the criteria below: Bearish Harami: A bearish Harami occurs when there is a large bullish green candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. Bullish Harami: A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2.

The Rising Three Method

A bullish candlestick pattern that is used to predict the continuation of the current uptrend. 1. The first candle in the pattern is a long white candlestick within a defined uptrend. 2. A series of descending small-bodied candlesticks that trade within the range of the first candlestick. 3. A long white candlestick creates a new high, which suggests that bullish are back in control of the direction.

MAJOR USE OF AVERAGES

50 day MA helps in determining the trend

50 MA and 15 MA crossing over

200 ma act as major support

Technical Analysis: Indicators And Oscillators

RSI

Stochastic Oscillator

RSI helps to signal overbought and oversold conditions in a security.

The stochastic oscillator signals the buying and selling of security

SOME OF THE PATTERN SPOTTED

HEAD AND SHOULDERS(NIFTY)

THREE RISING SOLDIER(LUPIN)

BULLISH ENGULFING(SYN BANK)

CONCLUSION

With the use of technical analysis one can easily predict the movement of stock.

By the use of technical analysis one can trade for himself as well as can provide the lead to its clients .
Lack of knowledge and patience lead to losses.

Thank you