A PROJECT REPORT ONA STUDY ON

TRADING IN STOCK EXCHANGEA GREAT GIZMO OF INVESTMENT

INTERNAL GUIDE EXTERNAL GUIDE

Dr. Tulika singh Mr. Bipin Bihari. Dutta

Department of Business Management Asst. Manager

C.V. Raman college of Engineering Bhubaneswar Stock Exchange

PRESENTED BYBISWAJEET SAMALRegd.No.-1506227002

DEPARTMENT OF BUSINESS MANAGEMENT 

C.V.RAMAN COLLEGE OF ENGINEERING,BBSR

UNDER THE GUIDANCE OF

INTRODUCTION

Indian securities market is a great avenue for investment

An emerging economic like India brings in the scope of high industrial growth rate opportunities.

Development of industries in turn would result in wealth appreciation of investors.

The securities market opens up a wide range of options for investment like- equities, bonds, debentures, commodities etc.

The stock exchanges which provide a market for the trade of securities have developed and arranged strong trading and risk management mechanism ensuring investor protection and continuous service

OBJECTIVES:

To know the benefits of long term investment in stock market.

To understand when to invest and in which company to invest in order to get maximum return and how

to keep track of the market movements without going through the price of each share in the portfolio.

To understand how addition and removal of a company’s listed shares affects one’s investment.

SCOPE

The study is focused on the Indian stock market and how a small investor can earn benefit out of it

reducing the risks attached.

It is based on some tools like fundamental analysis, technical analysis.

For fundamental analysis stocks of Automobile sector have been selected with 1 companies from each

sector to give an idea of how to analyze sectors

And select companies for technical analysis four companies have been selected from Banking sector

among the all Bank selected for technical analysis this will help an investor to analyze what is the

right time to enter the market.

LIMITATIONS

The study is limited only to the equity segment of the Indian stock market. The study is restricted to 8 companies for fundamental analysis and 4 companies for technical analysis. Only two years share price data has been taken to understand the Technical Analysis

METHODOLOGY

Data about stock exchanges and its operations have been collected from the secondary sources like:

Articles from newspapers, magazines, websites of NSE, BSE, online news serving sites like- live mint,

money control etc.

And from primary source like direct interaction with Mr. Bipin Bihari Dutta, Assistant Manager,

Bhubaneswar Stock Exchange, Bhubaneswar.

ORGANIZATION BACKGROUND

NAME:- ODISHA CAPITAL MARKET & ENTERPRISES LTD

(Formerly known as: Bhubaneswar Stock Exchange Ltd.) FOUNDED:- 17th April, 1989 as a Company FUNCTION AS A STOCK EXCHANGE:- 5th June, 1989 CIN:- U67120OR1989PL REGISTRATION NUMBER 2240 CLASS OF COMPANY :- PUBLIC LOCATION Bhubaneswar (Odisha ) CHAIRMAN :- Mr . Gopal chandra Nada CEO:- Mr. Debraj Biswal MANAGERS :                 Mr. Gadadhar Mishra ASST. MANAGER :   Mr . Bipin bihari Dutta

THEORETICAL FRAMEWORK

Investment Investment is an activity that is engaged in by people who have saving ,that is investments are made from saving.

Investment objectives Maximization of return Minimization of risk Future Planning like- retirement, education & marriage of children

Investment avenues Savings Bank Account Bank Fixed Deposit Post Office Savings Schemes PPF Life Insurance Policies Equity Shares

Structural View of Securities Market

There are basically two types of markets for the trade of securities

Money Market

Capital Market

Stock Exchange A Stock Exchange also called Stock Market or Share Market is a proper place providing necessary market infrastructure for trading

in securities in systematic manner i.e. as per certain rules and regulations.

In simple words a stock exchange is a market place where investors can buy and sell stocks and other securities like- equities,

bonds, debentures, commodities etc.

Indian securities market had 2 national and 19 regional stock exchanges .

Trading in Stock Exchange

Trading Platform/ Segment Stock markets provide a platform for buying and selling of securities like- equities (stocks), bonds and derivatives.

Product Lines of stock exchangeCash Market Segment

Equities Exchange Traded Funds Mutual Funds Bonds/Debentures

Derivatives Market Segment Equity Derivatives Currency Derivatives Global Indices Derivatives Interest Rate Derivatives New Debt Market

The Benefits of long term investment in stock market

Saving Deposit , Fixed Deposit -5year, Senior Citizen Saving scheme -5year Monthly income Account scheme -.5year, National saving scheme-5Year, PPF, Kisan Vikas Patra ,Sukanya samridhi Account Scheme , Share Market-CNX Nifty and Investment in share market.

The various long term and short term investment avenues available in Indian market .

A Comparative analysis of all the investment options available on the basis of their respective returns during the period April,2015-2016

INVESTMENT AVENUES Rate of Return %Existing Rate of Return (April1,2015 to March 31,2016)

New Rate of return (April 2016)

Saving Deposit 4% 4%Fixed Deposit -5year 8.5% 7.9%Senior Citizen Saving scheme -5year

9.3% 8.6%

Monthly income Account scheme -5year

8.4% 7.8%

National saving scheme-5Year 8.5% 8.3%PPF 8.7% 8.1%Kisan Vikas Patra 8.7% 7.8%Sukanya samridhi Account Scheme

9.2% 8.6%

Share Market-CNX Nifty 16.74%

Company Analysis

Company fundamental and background check

Ratio analysis which includes growth rate, profitability ratio, liquidity ratio and turnover ratio

Determination of actual price of its stock by using dividend discount model

FUNDAMENTAL ANALYSIS OF “TATA MOTORS” 

Tata Motors Limited is among the largest automobile manufacturing companies in the world by volume, and has presence across a range of passenger and commercial vehicles

Valuation Analysis

 Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016Total Income from Operations (Rs. Cr.)

1,65,654.5 1,88,817.63 2,32,833.66 2,62,796.33 2,75,561.11 

Growth (%) 34.53 % 13.98 % 23.31 % 12.87 % 4.86 % PAT (Rs. Cr.) 13,573.91 9,862.49 14,104.18 14,059.65 11,108.27 Growth (%) 47.21 % (27.34 %) 43.01 % (0.32 %) (20.99 %) Earnings Per Share – Basic (Rs. )

42.58 31.02 43.61 43.44 32.71 

Earning Per Share – Weak (Rs. )

40.71 30.94 43.60 43.43 32.70 

Price to Earnings 6.77 8.70 9.66 10.86 11.81 

Technical Analysis

Technical analysis is the study of the stock market considering factors related to the supply and demand of

stocks.

Technical Analysis doesn’t look at underlying earnings potential of a company while evaluating stocks

{unlike fundamental Analysis}.

It uses charts and computer programs to study the stock’s trading volume and price movements in the hope of

identifying a trend Technical Analysis of SBI

POINTERRSI(Relative Strength Index)MACD(Moving Average Convergence and Divergence)

SMA(Simple Moving Average) EMA(Exponential Moving Average)

Understanding when to invest and in which company to invest in order to get maximum return and how to keep track of the market movements without

going through the price of each share in the portfolio.

Fundamental Analysis thus involves three steps .

(i) Economic Analysis

(ii) Industry Analysis

(iii)Company Analysis

Fundamental Analysis or Technical Analysis

Economy Analysis i. Growth Rates of National Income ii. Inflation iii. Interest Rates iv. Infrastructure v. Monsoonvi. Economic and Political Stability

RSI(Relative Strength Index)

MACD(Moving Average Convergence and Divergence)

SMA(Simple Moving Average)

EMA(Exponential Moving Average)

INDICATOR ANALYSIS

RSI(Relative Strength Index) RSI is 67.9. According to RSI analysis, sbin is technically strong

MACD(Moving Average Convergence and Divergence)

MACD: 8.09 and Signal Line: 7.31. According to MACD analysis, sbin is technically strong.

SMA(Simple Moving Average)  According to simple moving average analysis, sbin is in a strong uptrend. Major support levels are 252.54, 237.181, 206.8992

EMA(Exponential Moving Average) According to exponential moving average analysis, sbin is in a uptrend. Support level is at 253.

Fundamental Analysis vs Technical Analysis

Fundamental analysis attempts to evaluation the basic value of a security by evaluating

the fundamental factors affecting the economy, industry and company.

This tedious process and takes a rather long time to complete the process.

Technical analysis studies the price and volume movement, in the market.

And by carefully examining the pattern of these movement, the future price of the stock

predicted.

Conclusion and Suggestions

It is observed from the study that one can make a lot of money by investing his/her money in stocks

or trading in the stock market, but it is not so easy for the new investors. 

The investor must have a firm understanding of stocks and how they are traded in the market or risk

of losing money in a volatile type of investment.

Technical analysis helps in identifying the best timing of an investment, i.e., the best time to buy or

sell.

Stocks are volatile. Prices change according to supply and demand.

Before investing money in to stock market, one should collect information on the past trading data

and observe the movement of share prices through market index, chat, diagrams etc.

And also take advice of experts in stock market .

THANK YOU