technical analysis with reference to bellwether stocks(2) analysed
DESCRIPTION
TechTRANSCRIPT
Technical Analysis With Reference To Knowledge Based Stock
INDUSTRY PROFILE
Dr Ambedkar Institute of Technology, MBA Page | 1
Technical Analysis With Reference To Knowledge Based Stock
OVERVIEW
The Indian retail brokerage industry consists of companies that primarily act as agents for the buying
and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or
transaction fee basis. It has two main interdependent segments: Primary market and the Secondary
market.
Evolution of the Indian Brokerage MarketThe Indian broking industry is one of the oldest trading industries that had been around even before
the establishment of the BSE in 1875. Despite passing through a number of changes in the post
liberalization period, the industry has found its way towards sustainable growth.
Early YearsThe equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock
market for about 150 years that played a significant role in developing risk markets as also promoting
enterprise and supporting the growth of industry.
The roots of a stock market in India began in the 1860s during the American Civil War that led to a
sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock
companies that issued securities to raise finance. This trend was akin to the rapid growth of securities
markets in Europe and the North America in the background of expansion of railroads and exploration
of natural resources and land development. Bombay, at that time, was a major financial centre having
housed 31 banks, 20 insurance companies and 62 joint stock companies. In the aftermath of the crash,
banks, on whose building steps share brokers used to gather to seek stock tips and share news,
disallowed them to gather there, thus forcing them to find a place of their own, which later turned into
the Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the
formation of a trust in 1887 known as the “Native Share and Stock Brokers Association”. A unique
feature of the stock market development in India was that that it was entirely driven by local
enterprise, unlike the banks which during the pre-independence period were owned and run by the
British. Following the establishment of the first stock exchange in Mumbai, other stock exchanges
came into being in major cities in India, namely Ahmedabad (1894), Calcutta (1908), Madras (1937),
Uttar Pradesh and Nagpur (1940) and Hyderabad (1944). The stock markets gained from surge and
boom in several industries such as jute (1870s), tea (1880s and 1890s), coal (1904 and 1908) etc, at
different points of time.
Dr Ambedkar Institute of Technology, MBA Page | 2
Technical Analysis With Reference To Knowledge Based Stock
Indian Brokerage Industry
India in Global Markets
The stature and significance of India is growing in the world capital markets. India is not only
attracting greater interest from world markets, but is also assuming increasing importance in global
finance.
India is a major recipient of foreign institutional flows amongst the emerging markets.
Since the opening up of domestic stock ,markets to foreign investors, cumulative net FII
Investments reached Rs 517 Bn by 2008 end.
India is major destination of private equity flows into the emerging markets
India was host to the annual meetings/conference of the World Federation of Exchanges
(2005) and International Organization of Securities Commission (IOSCO) (2007)
India emerged a trillion dollar market capitalization market in 2007, and was among the
top 10 stock exchanges in the world in terms of market capitalization
India is amongst the top fifteen stock exchanges in the world in respect of equity turnover
India emerged as a leading player in commodities futures market
India is amongst the top five in the number of transactions
India is among the top five in respect of volume traded in Stock Index Futures and Stock
Futures
India is one of the few markets with extensive dematerialization of shares
India’s T+2 securities settlement cycle is at par with the global standards
Indian stock markets have the largest number of listings, with trading taking place in
about 2,500-3,000 stocks.
India’s most popular stock index (Sensex) is constructed on the basis of full float
methodology, one of the firsts in the Asian region and a global standard.
Indian market indices such as Sensex and CNX Nifty are listed in foreign exchanges for
trading as ETFs.
Dr Ambedkar Institute of Technology, MBA Page | 3
Technical Analysis With Reference To Knowledge Based Stock
Recent Trends (2010)…
Global risk aversion is unwinding and Confidence levels returning, being reflected in
performance of the indices.
Liquidity and credit flows improving
Political stability and India re-rating
FII and Domestic Flows resuming, USD 7bn FII inflow in April & May
Secondary volumes showing early signs of uptrend, average daily volumes of Rs 800 bn
vs. 620 bn in previous year
SWOT ANALYSIS ON BROKERAGE INDUSTRY
SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is an
important tool for auditing the overall strategic position of a business and its environment.
STRENGTHS
Multiples engines of growth- an integrated financial services platform
Well established and continuously expanding geographical footprints
Unique, stable and scalable business model
Adoption of technology — screen based trading, electronic matching, and paperless
securities
Centralized operations, effective risk management, and control on large interconnected
operations spanning multiple locations, which is enabled by telecom connectivity and low
costs
Accessibility of capital increases and margin finance increases
WEAKNESSES
Lack of visible goodwill among minor players
Lack of trust on companies by customers
Psyche of people in India is converging
Companies are still running on selling concept
Weak infrastructural facilities
Compliance with strict rules and norms set by govt.
Dr Ambedkar Institute of Technology, MBA Page | 4
Technical Analysis With Reference To Knowledge Based Stock
OPPORTUNITIES
Structure of the industry, market size, and growth rates-huge potential in Indian market
Government is continuously liberalizing the market
Proactive and progressive nature of Indian brokerage industry(India rank s amongst top
five globally in this segment)
Economy is still growing at healthy rate leading to investment / capital requirement
Huge market opportunity for wealth management service providers as Indian wealth
management business is transforming from mere wealth safeguarding to growing wealth.
Leveraging technology to enable best practices and processes
Corporates looking at consolidation / acquisitions / restructuring opens out opportunities
for the corporate advisory business.
THREATS
High degree competition
Fluctuations in government policies
Political framework
Developing Indian economy
Companies must develop and implement physical, administrative and technical safeguards
to achieve the following goals:
Ensure the security and confidentiality of customer records and information
Secure against any anticipated threats or hazards to the security or integrity of
such information
Secure against unauthorized access to or use of such information that could result
in substantial harm or inconvenience to any customer
Stock broker
Dr Ambedkar Institute of Technology, MBA Page | 5
Technical Analysis With Reference To Knowledge Based Stock
A stock broker or stockbroker is a regulated professional broker who buys and sells shares
and other securities through market makers or Agency Only Firms on behalf of investors. A broker
may be employed by a brokerage firm.
Services providedA transaction on a stock exchange must be made between two members of the exchange—
an ordinary person may not walk into the New York Stock Exchange (for example), and ask to trade
stock. Such an exchange must be done through a broker.
There are three types of stockbroking service.
Execution-only, which means that the broker will only carry out the client's
instructions to buy or sell.
Advisory dealing, where the broker advises the client on which shares to buy and
sell, but leaves the final decision to the investor.
Discretionary dealing, where the stockbroker ascertains the client's investment
objectives and then makes all dealing decisions on the client's behalf.
Similar roles
Roles similar to that of a stockbroker include investment advisor, and financial advisor. A
stockbroker may or may not be also an investment advisor, and vice versa.
Acting as a principal
Stockbrokers also sometimes or exclusively trade on their own behalf, as a principal,
speculating that a share or other financial instrument will increase or decline in price. In such cases
the term broker makes little sense and the individuals or firms trading in principal capacity
sometimes call themselves dealers, stock traders or simply traders. There are of many other types of
traders within capital markets, for example trading within the foreign exchange market.
The History of Stock Brokerage Firms
Dr Ambedkar Institute of Technology, MBA Page | 6
Technical Analysis With Reference To Knowledge Based Stock
Stock brokerage firms have been an established feature in the financial industry for nearly
one thousand years. Dealing in debt securities, brokers employ a variety of systems to aid investors
with the purchase and sales of stocks and bonds in a variety of markets. The firms have changed over
the years, growing to massive organizations that can affect the entire financial sector positively or
negatively with their performance. Changing with the times, the early twenty-first century saw a rise
of online trading that enabled the average investor to take part in the stock market for the first time.
HistoryDuring the 11th century, the French began regulating and trading agricultural debts on behalf
of the banking community, creating the first brokerage system. In the 1300s, houses began to be set up
in major cities like Flanders and Amsterdam in which commodity traders would hold meetings. Soon,
Venetian brokers began to trade in government securities, expanding the importance of the firms.
In 1602, the Dutch East India Company became the first publicly traded company in which
shareholders could own a portion of the business. The stocks improved the size of companies and
became the standard bearer for the modern financial system.
SignificanceThe earliest brokerage firms were established in London coffee houses, enabling individuals
to purchase stocks from a variety of organizations. They formally founded the London Stock
Exchange in 1801 and created regulations and memberships. The system was copied by brokerage
firms across the world, most notably on Chestnut Street in Philadelphia. Soon, the US exchange was
moved to New York City and various firms like Morgan Stanley and Merrill Lynch were created to
assist in the brokering of stocks and securities. The firms limited themselves to researching and trading
stocks for investment groups and individuals.
ConsiderationsDuring the 1900s, stock brokerage firms began to move in a direction of market makers. They
adopted the policy of quoting both the buying and selling price of a security. This allows a firm to
make a profit from establishing the immediate sale and purchase price to an investor. The conflict with
brokerage firms setting prices creates the concern that insider trading can result from the sharing of
information. Regulators have enforced a system called Chinese Walls to prevent communication
between different departments within the brokerage company. This has resulted in increased profits
and greater interconnection within the financial industry.
Dr Ambedkar Institute of Technology, MBA Page | 7
Technical Analysis With Reference To Knowledge Based Stock
EffectsThe creation of high valued brokerage firms like Goldman Sachs and Bear Sterns created a
system of consolidation. Working with hundreds of billions of dollars, the larger firms began to merge
and take over smaller firms in the last half of the 20th century. Firms like Smith Barney were acquired
by Citigroup and other investment banks, creating massive financial institutions that valued, held,
sold, insured and invested in securities. This conglomeration of the financial sector created an
environment of volatility that caused a chain reaction when other firms like Bear Sterns and Lehman
Brothers filed for bankruptcy. Trillions of dollars of assets were tied together in different companies
and resulted in a large economic collapse in late 2008.
Features A large share of the brokerage firms have moved to an online format. Smaller brokers such as
E*Trade, TD Ameritrade and Charles Schwab have taken control of most individual investors
accounts. The added convenience and personal attention paid to the small investor has resulted in a
large influx of activity. In addition, the fact that the online resources offer up-to-the-minute pricing
and immediate trades makes their format appealing to the modern user. Discounted commissions have
lessened the price of trades, giving access to a wider swath of people and adding liquidity to the
market. The role of the stock brokerage firm is ever-changing and proves to be a boon for the future of
the financial industry.
Stock ExchangeStocks (Shares, equity) are traded in stock exchange. India has two big stock exchanges
(Bombay Stock Exchange - BSE and National Stock Exchange - NSE) and few small exchanges like
Jaipur Stock Exchange etc. Click here to see the list of Stock Exchanges in India Investor can trade
stocks in any of the stock exchange in India.
Stock BrokerInvestor requires a Stock Broker to buy and sell shares in stock exchanges (BSE, NSE etc.).
Stock Broker are registered member of stock exchange. A stock broker can register to one or more
stock exchanges.
Only stock brokers can directly buy and sell shares in Stock Market. An investor must contact
a stock broker to trade stocks. Broker charge commissions (brokerages) for their service. Brokerage is
usually a percent of total amount of trade and varies from broker to broker.
Dr Ambedkar Institute of Technology, MBA Page | 8
Technical Analysis With Reference To Knowledge Based Stock
Stock TradingTraditionally stock trading is done through stock brokers, personally or through telephones.
As number of people trading in stock market increase enormously in last few years, some issues like
location constrains, busy phone lines, miss communication etc start growing in stock broker offices.
Information technology (Stock Market Software) helps stock brokers in solving these problems with
Online Stock Trading.
Online Stock Market Trading is an internet based stock trading facility. Investor can trade
shares through a website without any manual intervention from Stock Broker.
In this case these Online Stock Trading companies are stock broker for the investor . They are
registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE
and NSE.
There are two different type of trading environments available for online equity trading.
1. Installable software based Stock Trading TerminalsThis trading environment requires software to be installed on investors computer. These
software are provided by the stock broker. These softwares require high speed internet connection.
These kind of trading terminals are used by high volume intra day equity traders.
Advantages:
Orders directly send to stock exchanges rather then stock broker. This makes
order execution very fast.
It provides almost each and every information which is required to a trader on a
single screen including stock market charts, live data, alerts, stock market news
etc.
Disadvantages:
Location constrains - You cannot trade if you are not on the computer where you
have installed trading terminal software.
It requires high speed internet connection.
These trading terminals are not easily available for low volumn share traders.
Dr Ambedkar Institute of Technology, MBA Page | 9
Technical Analysis With Reference To Knowledge Based Stock
2. Web (Internet) based trading applicationThis kind of trading environment doesn't require any additional software installation. They are
like other internet websites which investor can access from around the world through normal internet
connection.
Below are few advantages and disadvantages of Online Stock Market Trading :-
Advantages of Online Stock Trading (Website based):
Real time stock trading without calling or visiting broker's office.
Display real time market watch, historical datas, graphs etc.
Investment in IPOs, Mutual Funds and Bonds.
Check the trading history; demat account balance and bank account balance at any time.
Provide online tools like market watch, graphs and recommendations to do analysis of stocks.
Place offline orders for buying or selling stocks.
Set alert to inform you certain activity on the stock through email or sms.
Customer service through Email or Chat.
Secure transactions.
Disadvantages of Online Stock Trading (Website based):
Website performance - sometime the website is too slow or not enough user friendly.
Little long learning curve especially for people who don’t know much about computer and
internet.
Equity Broking Companies Accounts
Indiabulls Securities Limited
Reliance Money Limited
Bonanza Portfolio Limited
Angel Broking Limited
Motilal Oswal Securities Limited
Marwadi Shares & Finance Private Limited
India Infoline Limited
Anand Rathi Securities Limited
Jhaveri Securities Private Limited
Karvy Stock Broking Limited
Trustline Securities Investment Private Limited
Dr Ambedkar Institute of Technology, MBA Page | 10
Technical Analysis With Reference To Knowledge Based Stock
Asit C Mehta Investment Intermediates Limited
Networth Stock Broking Limited
Emkay Share & Stock Brokers Limited
Unico Financial Intermediaries Private Limited
Anagram Securities Limited
India Capital Markets Private Limited
Dr Ambedkar Institute of Technology, MBA Page | 11
Technical Analysis With Reference To Knowledge Based Stock
COMPANY PROFILE
COMPANY PROFILE
Dr Ambedkar Institute of Technology, MBA Page | 12
Technical Analysis With Reference To Knowledge Based Stock
Background and inception of the company
TRUSTLINE SECURITIES PVT LTD was founded in the year 1995 as a K&A
SECURITIES PVT LTD and it was registered under the company act of 1956. Trustline
securities are professionally managed group headed by the directors, having vast experience
in the stock market. Beside the core promoters, the group is having its full fledge teams
headed by young and dynamic professionals like charted accountants, company secretaries,
MBAs, IT professionals etc to handle the various divisions of the company.
Trustline securities is a Member of the National Stock Exchange (NSE), Trustline
security is a Member of the Multi Commodity Exchange (MCX), National Commodity and
Derivative Exchange (NCDEX), National Multi Commodity Exchange of India Limited
(NMCEIL), to trade in commodities market and it as also started currency trading after
becoming the Member of National Stock Exchange (NSC), (MCX-SX). Trustline has entered
into Depository services in the business participation with Central Securities Depository
Limited (CSDL), National Securities Depository Limited (NSDL) and it has also started the
Derivatives trading after becoming a Trading cum clearing Member of NSE in its Future and
Option segment.
Trustline have a worldwide vision and it along with its associates is currently providing state
of the art stock broking services through all the major stock exchanges, they provide all the
services are available under the one roof and they are fully equipped with all modern
infrastructures to carry on its activities and all branches are well connected through the VPN,
Lease line, ISDN, Internet and other network facilities. All of its operations are computerised
through the advanced technologies. All branches are ultra modern, hi-tech, well furnished and
fully computerized, driven by the well-qualified professionals. With its ability to evolve with
changing environment the company has been able to put itself to the forefront of stock
broking activities. With its network spreading across various parts of India, it has made a
distinct mark among the stock broking the stock broking houses and high net worth corporate
as well as individuals.
Nature of the business carried
Dr Ambedkar Institute of Technology, MBA Page | 13
Technical Analysis With Reference To Knowledge Based Stock
The nature of the business carried by Trustline Securities Pvt Ltd. Is related with the
various things like Portfolio Management Services, Mobilization of Mutual Funds, and
Commodities Broking, Marginal Funding as well as Equities Research and online media.
Vision
“To provide world class investment solutions to the class of investors who believe in 'India
as a story whose time has come and empower them through technology'. To provide the most
useful and ethical Investment Solutions - guided by values driven approach to growth, client
service and employee development.”
Mission
Dr Ambedkar Institute of Technology, MBA Page | 14
Trustline securities
pvt ltd
Equity & Derivative
Trading
Commodities Trading
Currency Trading
Depository ServicesInstitutio
nal Desk
Real Estate Services
Insurance Advisory Services
Mutual Fund
Trading
IPO Services
Technical Analysis With Reference To Knowledge Based Stock
“To empower individual investors to take control of their financial lives, free from the high
costs and conflicts of traditional stock broking firms. And to guide all our investors to enlarge
their investments by systematic deployment of funds”
Objective
“We endeavor to be amongst the top ranking highly networked & fully integrated Broking
and Financial services house in the country.”
Our Team
Knowledgeable experience professionals having in-depth knowledge.
Dedicated employees committed to customer services.
Our Motto
To treat customers with dignity, respect and care.
Consistent efforts to improve our skill and services to serve the customers
better.
Products & Service profile
Product offered by Trustline securities Pvt Ltd are as follows:
Equity
Derivatives
Insurance
Commodities
Mutual Funds
Services offered by Trustline securities Pvt Ltd are as follows:
IPO Services
Depository Services
Investment Advisory Services
Facilities Offered by Trustline in Depository Services:
Dr Ambedkar Institute of Technology, MBA Page | 15
Technical Analysis With Reference To Knowledge Based Stock
Online Back office:
You can view your demat account over the Internet and avail a host of
services. This facility empowers our clients to view, download, and print updated holdings
with respective valuations
De-materialization:
You can submit your physical shares at the Trustline branch for
dematerialization into electronic form.
Re-materialization:
You can also request for Re-materialization which enables you to convert
the dematerialized shares into physical form.
Transfer:
Inter and intra depository services are available through which you can
transfer shares
Corporate Actions:
While holding your stock in demat account, in case you are eligible for any
bonus and rights issues the allotment would be transferred to your demat account
Easi:
Facility provided by CDSL. You can view your demat account over the
Internet and avail a host of services. This facility empowers our clients to view, download,
and print updated holdings with respective valuations.
Currency Trading:
Currently in India, there are 3 major exchanges offering Currency future trading – NSE,
MCX-SX & USE-SX. Trustline Securities is a trading cum clearing member for the currency
Dr Ambedkar Institute of Technology, MBA Page | 16
Technical Analysis With Reference To Knowledge Based Stock
segment. We believe in the tremendous potential of currency future to become a dominant
force of the Indian financial market with a turnover which can outperform even equity and
commodity segment. We firmly believe that wider market participation will bring more
Strength to the market & this can be achieved through disseminating education & information
among various market participants. For us, currency is not just any other segment of business;
it is "the business of future".
Our Offerings: Offline trading:
This is the most traditional way of carrying out trading in financial
markets. Clients can place their orders with our nearest branch by visiting them personally or
on the phone.
Online trading:
Online trading offers the convenience to trade from the comfort of your
home / office. We provide trading software which can be downloaded by the client on any
system. Through their user ID & password, clients can start trading online. Alternatively, we
also provide the facility to trade through our browser based application.
Corporate advisory:
We believe that corporate participation is the key to growth of this
segment. We understand that corporate have a very special set of requirements for hedging as
well as investment. Every business needs customized solutions to its requirements and that is
what we deliver - hedging / investment solutions based on what is best-suited to the business
dynamics. Our dedicated team of Relationship Managers ensures that our deliverables exceed
the expectations & a long-lasting relationship is built.
Our edge
Dr Ambedkar Institute of Technology, MBA Page | 17
Technical Analysis With Reference To Knowledge Based Stock
A vast network of offices giving us pan India presence
Dedicated Relationship Managers
Real-time risk monitoring of financial markets
Experienced Research Analysts
Research & Analysis:
Our Research is based on Technical and Fundamental Analysis using the most reliable
software BLOOMBERG. We have METASTOCK installed at all branches for study of
market movement at branch level. Our forecasts suit the Intraday Traders, Swing Traders as
well as the Long Term Investors. We are geared to differentiate the varying service needs of
Retail as well as the Institutional Investors.
AREA OF THE OPERATION
Trustline Securities Pvt Ltd was started by Dr. Mukesh Kansal; he is the sole person
responsible for all operations in Trustline. Trustline Securities Pvt Ltd was incorporated in
1995 at Noida in Uttar Pradesh. Initially in 1995 Trustline became the member of NSE equity
segment and also gained membership in DSE. And in 2000 Trustline Securities Pvt Ltd
became the member of future and option segment in NSE and also became the member of
NCDEX in 2004. Trustline Securities Pvt Ltd became the member in BSE for feature and
option segment in the year 2006. And in 2007 it started online trading and became the
member of NMCEIL. Membership in currency trading was gained in the year 2008 and also
Trustline Securities Pvt Ltd became the participant of NSDL in year 2009. And in 2010
Trustline Ltd became the member of MCX-SX.
Trustline Securities Pvt Ltd is performing its operation I whole the region of India.
Total branches all over India is 510 branches which includes 80 Own Branches, 430 Business
Associates, 3500 Human work force, 1200 Trading Terminals, 80,000 Demat Accounts, and
70,000 Clients, some of the Prominent Institutional Clients are.
FIIs clients are Goldmansachs, Credit - Suisse, Indea Absolute Return Fund, and
KARMA Capital.
Dr Ambedkar Institute of Technology, MBA Page | 18
Technical Analysis With Reference To Knowledge Based Stock
DIIs clients are Unit Trust of India (UTI), Reliance Mutual Fund, Punjab National
Bank (PNB), TAURUS Mutual Fund, Canara Robeco Asset Management Company, National
Insurance Company and CANBANK Investment Management Services.
Banks are PNB, PNB GIITS, OBC, Central Bank, Canara Bank, Dena Bank, Bank of India.
Branches of Trustline Securities Pvt Ltd are as given below:
OWNERSHIP PATTERN
Dr Ambedkar Institute of Technology, MBA Page | 19
Technical Analysis With Reference To Knowledge Based Stock
The ownership pattern means the management level people who hold and lead the
business activities like Board of Director, Company Secretary Etc.
Trustline Securities Pvt. Ltd: Promoters, Management Team and Business partner
Promoters
Dr. Mukesh Kansal,
Chairman & Managing Director
(FCA, FCS & PhD in Stock Market)
An Entrepreneur par excellence
Having vast experience in Financial Services business
Is one of the earliest professional members of Indian stock exchange system
Investment consulting & intermediary business has been key area of his work
Has been a Member of Executive Committee of NSE
Adopted as member of Currency Advisory Group of NSE.
Mrs. Sarika Kansal
Director
Having vast experience of more than 15 years in Financial Services business
Brings in strong business acumen to management
Spear headed marketing efforts in building of the brand “Trustline”
This trust is reposed by more than 70,000 clients
Competitors Information
Dr Ambedkar Institute of Technology, MBA Page | 20
Technical Analysis With Reference To Knowledge Based Stock
India bulls financial services ltd.
Blue diamond securities and finance ltd.
Fortune financial services India ltd
Peerless financial services ltd
Bonanza financial services ltd
India info line ltd
JM financial.
Infrastructural Facilities
Trustline Securities Pvt. Ltd has good infrastructure facilities towards the technical and
fundamental activities to customer and employees
Online trading account for investing in Equities and Derivatives.
Integration of online trading + Bank + Demat account.
Instant cash transfer facility against purchase and sale of shares.
Instant order and trade conformation by e-mail.
Single screen interface for cash and derivatives.
They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
Trustline Securities Pvt. Ltd has ability to transfer funds from most banks. Investor
not really needs to open an account with a particular bank as it can establish link
with most modern banks.
Allow investor to buy and sell stocks online along with the following features like
multiple watch lists, integrated banking, demat and digital contacts, Real-time
portfolio tracking with price alerts and Instant Credit and transfer.
Good network: Trustline Securities Pvt Ltd is having its own server to store the
datas related to their clients and also to have a better network facility.
Proper accommodation for its employees: Employees has been provided with
better seating facility for their work, along with the better desktop to trade.
Quick and efficient client support: Clients will be provided every information
regarding their holdings condition either by calling them or sending instant
messages and mail alerts, thus guiding the client to successful business.
Dr Ambedkar Institute of Technology, MBA Page | 21
Technical Analysis With Reference To Knowledge Based Stock
Client support through remote control: Clients are intimated immediately about
any negative or positive movements in their trade, they are intimated through
instant messages and by calling the clients.
Excellent back office software: Back office software is the most required for a
broking house to provide service efficiently, Trustline Securities Pvt Ltd in well
equipped by best back office software to comfort their employees and clients.
In - House Call Center - Quick & Efficient Client Support: Each and every
branch of Trustline Securities Pvt Ltd is having call center with well trained and
efficient employees to support client.
In - House Training Center - Improved Staff Efficiency: Each branch is having
a training department, where the work of this department is to provide training to
employees, by upgrading their knowledge by all recent developments and changes
happening in market. And also providing the training to use the software
applications.
State of Art Technology - Trouble free Technical Support.
WORK FLOW MODEL
Dr Ambedkar Institute of Technology, MBA Page | 22
Technical Analysis With Reference To Knowledge Based Stock
Search of new client
Dr Ambedkar Institute of Technology, MBA Page | 23
Search for new client
Gather client information
Approach to the client
If the client is interested to open a Demat Account and trade
If the client is not interested to open a Demat Account and trade
Collect the client details and required documents
Stop here and return to
Sending the details to the head office for registration
Registration process
Call to the client from Head office
Client will approach to the local branch by personnel
Client will call to the local branch
Start trading
Technical Analysis With Reference To Knowledge Based Stock
1. New clients are found by appointing the agents to approach the clients personally to convince them to invest in market.
2. Clients can be found by gathering the details of interested persons from their old clients. And later contacting the clients personally by agents or through telephone or mail.
3. Clients are also found by internet also.
Gathering Client information 1. Collecting the economic status of the client2. Determining the capacity of client to invest
Approaching the client 1. Client is approached personally, mail or through phone.
Collecting the client details and required documents 1. If the client is interested in investing, then the required details to carry
on further process is collected from client, like pan card details, 2 pass port size photos, bank statement and any other required information. And the investment pattern that the client to goig to do.
Sending detail to head office for registration 1. After collecting all the details from client the collected information are
send to head office for approval and verification.
Informing the client 1. After receiving the confirmation form the head office, client is
informed regarding this. In order to intimate the client to invest the amount in his account to start the trading.
Approach of client 1. After intimating to client, client will meet personally in case if he
requires guidance in trading, in order to carry on trading by himself or intimates the local branch through telephone to start trading.
FUTURE GROWTH AND PROSPECTUS
Dr Ambedkar Institute of Technology, MBA Page | 24
Technical Analysis With Reference To Knowledge Based Stock
Further grow in distribution network across south India
Focus on insurance advisory service and currency trading
Building a strong foundation for Trustline academy and Trustline real estate service
Focusing more on retail and institutional investor by providing more services
Focusing on building a strong research team in technical and fundamental analysis.
MCKINSEY’S 7’S MODEL
INTRODUCTION
A framework for Strategic Management, which has received substantial attention of
management consultants and strategists, is McKinsey 7-S framework developed in the late
70’s by McKinsey Company, a reputed Management Consultancy firm in US. The 7-S
frameworks first appeared in “The Art of Japanese management” by Richard Pascale and
Anthony Athos in1981. It was born at a meeting of the four in 1978. The framework rests on
the proposition that effective organizational changes is best understood in terms of the
multipart relationship between
STRATEGY
STRUCTURE
SYSTEM
STYLE
SKILLS
STAFF
SHARED VALUES
Dr Ambedkar Institute of Technology, MBA Page | 25
Technical Analysis With Reference To Knowledge Based Stock
Skills Style
Strategy Systems
SharedValues
Staff
Structure
Structure
The Structure of the organization represents the hierarchy of the organization. It
represents the reporting system of the organization. Thus, organization structure is the pattern
of relationships among various activities and positions.
From the structure of the organization we can have clear picture of the responsibility of the
personnel working in the organization. It refers to the differentiation and integration of
activities and authority, role and relationships in the organization. Hence organization
structure is the basic framework within which the manager’s decision-making behaviour takes
place.
In Trustline Securities Pvt. Ltd, structure of the organization represents the vertical hierarchy
of the organization. This ensure specialization, easier control over functions, easier way for
pinpointing needs of the managers and maintaining the relative importance of functions in the
organization.
Dr Ambedkar Institute of Technology, MBA Page | 26
Technical Analysis With Reference To Knowledge Based Stock
Shared Values
Security:
“Providing long term financial security to our policy holders will be our constant
endeavour. We will do this by offering life insurance and pension products”.
Trust:
“We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage
their investments very carefully and live up to this trust”.
Dr Ambedkar Institute of Technology, MBA Page | 27
Trustline Promoter
Support Retail InvestmentBanking
InstitutionalCommodities
Director back office
Human Resource Manager
Corporate planning
Head IT & systems
Finance & Accounts,
Legal & Taxation
Company secretary & compliance
officer
Director retail business
Equities & Derivatives
Business Associate group
Third party Distribution
E-broking
Retail sales
Marketing
Branch Operations
Head retail commoditie
s
Head institutional commoditie
s
Director institutional
business
Ceo -Investment banking
Head institutional research
Head institutional derivatives
Technical Analysis With Reference To Knowledge Based Stock
Innovation:
“Recognizing the different needs of our customers, we will be offering a range of innovative
products to meet these needs”.
Staff
Organization requires the service of a large number of personnel. These personnel
occupy the various positions created through the process of organizing. These personnel
comprises of the staff of the organization.
Each position of the organization makes certain specific contributions to achieve
organizational objectives. Hence the person occupying the position should have sufficient
ability to meet its requirements. Hence staffing is necessary to match jobs and the individuals.
In Trustline Securities Pvt. Ltd, Malleshwaram unit of Bangalore around 32
permanent employees are there and more than 80 agents are there who are working for
company. Branch Manager can manage the Sales Mangers, Clerical Staff as well as Customer
Relations Manager.
System
A system means all the procedures, formal and informal, that make the organization go day-
by-day, year-by-year. The organization is an open system organization because they interact
with environment. The developments in Information System are working wonders in all fields
of activity. It becomes possible to send and receive information almost instantaneously. Rapid
strides have been made by Trustline Securities Pvt. Ltd in the field of computerization Mini-
Computers, Online Computerization of product dispatch and finance and give product details
to customers.
Style
One element of mangers is how he/she chooses to spend time, another aspect is symbolic
behaviour. This suggests a second attribute that is by no means confused to those at top. The
style is a reflection of culture, more than to change the organization or performance.
The Trustline Securities Pvt. Ltd is basically a participating and democratic type of leadership
style. Before taking any decision meeting is conducted and the final decision is taken with the
Dr Ambedkar Institute of Technology, MBA Page | 28
Technical Analysis With Reference To Knowledge Based Stock
consent of all. Every employee gets chance to file his/her opinion. Every employee can
participate in decision making of the organization. The final decision is taken with consent of
all. It does not take any decision unilaterally.
Since every employee’s ideas and opinions are taken by the managers before arriving at a
final decision effective decisions can be taken. Managers are evaluated on the basis of quality
of their decision making.
Skill
The Trustline Securities Pvt. Ltd has personnel with variety of skills. The sales department
needs personnel with technical skill. The marketing department needs sale skill,
communication skill, convincing capacity. The actuary department needs planning the
program of insurance etc. The Agency Manager and Sales Manager should have the
managerial skill. They should have the ability to take right decisions. They should manage the
personnel and make then carry out their responsibility.
The Trustline Securities Pvt. Ltd has personnel with a variety of skill for different fields they
have personnel with different talents, skills and experience. It is a participative democratic
system so every decision is taken after discussion with the personnel. Hence the personnel
have good communication skills. Public relation department takes care in building the image
of the organization both by external communication and internal communication. In Trustline
Securities Pvt. Ltd is also having development department, its increasing strength of the
employees and arranging programs.
Strategy
Strategy sets out vision, mission, objectives, major action plans and policies of the entire
enterprises. These set out the picture of the strategy, the SBU strategy and the functional
strategies. This set out a broad frame work to guide managers at all levels in all functions in
their specific short term objectives.
Trustline Securities Pvt. Ltd mission is, “to regulate, promote and ensure orderly growth
of the industry”
The customers will enjoy the benefit s of dealing with a global Indian brand that best
understands their needs and delivers customized pragmatic solutions across multiple
Dr Ambedkar Institute of Technology, MBA Page | 29
Technical Analysis With Reference To Knowledge Based Stock
platforms. It will be a world class Indian financial services group. Our technology and best
practices will be benchmarked along international lines while our understanding of customers
will be uniquely Indian.
A culture of empowerment and a spirit of enterprise attract bright minds with an
entrepreneurial streak to join us and stay with us. Working with a home groom professionally-
managed company, which has partnerships with international leaders gives, our people a
perspective that is universal as well as unique. we will create an ethos of trust across all our
constituents. Adhering to high standards of compliance and corporate governance will be an
integral part of building trust.
Dr Ambedkar Institute of Technology, MBA Page | 30
Technical Analysis With Reference To Knowledge Based Stock
SWOT ANALYSIS
SWOT analysis refers to the analyzing the strengths, weakness, opportunities and threats of
the organization (company). SWOT is a compound of two factors namely external factors and
internal factors. Strength and weakness are the internal factors. Strengths and weakness are
the internal factor which can be controlled by the technical and personnel departments.
Opportunity and threats are the external factors which cannot be controlled by the company.
External factors may include political factors, socio-cultural factors. Technical factors,
Demography, Environmental factors etc.
STRENGTHS:
Original Research
Integrated Technology platform
“One stop” shops
Trustline securities ltd and K&A securities.com have developed into brands.
WEAKNESS:
Lack of a banking arm to complete the bank-broker-depository chain.
Insignificant presence in institutional segment.
OPPORTUNITIES:
Changing demographics with higher disposable income and increasingly complex
financial instruments will drive demand for investment advisory services.
Rapid penetration of Internet and computers means that technology enabled financial
services will gain market share.
Dr Ambedkar Institute of Technology, MBA Page | 31
Technical Analysis With Reference To Knowledge Based Stock
THREATS:
Volatile movement in indices and events.
Increasing competition with respect to decreasing brokerage, (Ex: Reliance capital
entered with least brokerage in the industry)
Technological changes. (Kotak securities has introduced an advanced software)
Stock markets falls will have a cascading effect on their mutual fund mobilization.
Dr Ambedkar Institute of Technology, MBA Page | 32
Technical Analysis With Reference To Knowledge Based Stock
ANALYSIS OF FINANCIAL STATEMENT
SUMMARY - ANNUAL REPORT OT THE COMPANY
BALANCE SHEET AS 31 ST MARCH, 2010(Rs in crores)
PARTICULARS 31-3-2010 31-3-2009 SOURCES OF FUNDS Owners fund Equity share capital 11.23 11.23 Share application money 1.52 1.52 Preference share capital --- --- Reserves and surplus 29.47 42.66 LOAN FUNDS --- --- Secured loans 20.47 0.85 Unsecured loans - - TOTAL LIABILITIES 62.69 56.25 APPLICATION OF FUNDS FIXED ASSETS Gross Block 18.72 16.04 Less: Revaluation Reserve --- --- Less: Accumulated Depreciation 5.16 3.32 Net Block 13.56 12.72 Capital Work-in-Progress 1.16 1.98 Investments 10.34 10.35 NET CURRENT ASSETS Current Assets Loans And Advances 84.14 85.25 Less: Current Liabilities And Provisions 46.51 54.05 Total Net Current Assets 37.63 31.02 Miscellaneous expenses not written 0.01 TOTAL 62.69 56.25
PROFIT AND LOSS ACCOUNT FOT THE YEAR ENDED 31ST MARCH, 2010
Dr Ambedkar Institute of Technology, MBA Page | 33
Technical Analysis With Reference To Knowledge Based Stock
PARTICULARS 31-3-2010 31-3-2009
Income
Operating income 34.56 46.83
Expenses
Material consumed
-
-
Manufacturing expenses -
-
Personnel expenses 17.53 21.21
Selling expenses 5.86 0.47
Administrative expenses 22.93 23.98
Expenses capitalized -
-
Cost of sales 46.32 45.66
Operating profit -11.76 1.17
Other recurring income 3.93 2.25
Adjusted PBDIT -7.83 3.41
Financial expenses 2.96 1.68
Depreciation 2.15 1.62
Other write offs - 0.01
Adjusted PAT -12.94 0.1
Tax charges -0.14 0.19
Adjusted PAT -12.8 -0.08
Nonrecurring items -0.36 -0.05
Other non cash adjustments -0.02 3.19
Reported net profit -13.18 3.05
Earnings before appropriation -9.38 4.3
Equity dividend - 0.42
Preference dividend -
-
Dividend tax - 0.07
Retained earnings -9.38 3.81
SUMMARY:
Dr Ambedkar Institute of Technology, MBA Page | 34
Technical Analysis With Reference To Knowledge Based Stock
The net decrease in total revenue of TRUSTLINE is Rs.12.27 crores. The total
revenue is decreased from Rs.46.83 crores to Rs 34.56 crores during 2010.
The organization recorded a loss of 11.76 crores in its net profit in the year 2010.
The net increase in expenditure of TRUSTLINE is 1.445% over its previous year.
The net increase in fixed Assets of TRUSTLINE is Rs.0.84 crores. This is 6.60% over
its previous year fixed assets. The total fixed assets are increased from Rs.12.72 crores
to Rs 13.56 crores during 2010.
The increase in Net current assets of TRUSTLINE is 21.31% over its previous year.
The net decrease in capital work in-progress of TRUSTLINE is 41.41% over its
previous year.
The net increase in secured loan of TRUSTLINE is Rs 19.62 crores. The total secured loan is
increased from Rs 0.85 crores to Rs 20.47 crores during 2010.
LEARNING EXPERIENCE
Dr Ambedkar Institute of Technology, MBA Page | 35
Technical Analysis With Reference To Knowledge Based Stock
Learning is not to impart in a day process. It is a continuous process which enriches the
knowledge regarding the particular field. It is a team work. This is so because the guide
helping if not supportive the work is not completed.
It was a great experience obtained during my project work in Trustline. All the staffs of the
company were very co-operative and they provided all the detailed information with handouts
necessary for the project. The internal atmosphere inside the company was cool and friendly.
Apart from this, I got certain information from the company’s website.
While doing the project in this company I got to know that every seconds of time is very
precious and this is to be worked out very carefully. I got to know about my views after
looking towards their duties, responsibilities, functions towards the organization.
It was the staff’s responsibility to handle the customer’s orders and complaints and this was to
taken in a very serious manner so as to avoid any future disturbance that might arise and
hamper the day-to-day running business. This project helped me to gain much confidence
level to a great extend because to gain something we ourselves have to express.
This project has enriched my knowledge regarding planning, controlling, as well as executing
the work of the organization in time. The project work is an integrated learning experience
that encourages us to break away from the compartmentalization of the different disciplines. It
aims to provide us with opportunities to explore the inter-relationships and inter-
connectedness of subject-specified knowledge to:
Improve practical working skills & faster collaborative learning skills.
To ensure a healthy return on investment by maximizing operation efficiency, capacity
utilization and productivity.
To continually improve and redesign systems, processes and practices in order to
ensure error prevention and improve response time.
To treat human resource as the key to Quality Excellence and ensure development,
involvement and satisfaction of employees.
To meet obligations towards the society as a responsible corporate citizen.
To provide value for money to all stake holders.
To follow ethical business philosophy at all times.
Dr Ambedkar Institute of Technology, MBA Page | 36