2. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
PROFILE OF THE GEOJIT FINANCIAL SERVICES LTD.
Geojit, a joint venture with Kerala State Industrial Development
Corporation Ltd. is a pioneer in the retail financial services sector. Over two
decades the company has grown to offering complete management solutions.
Today the company has over Rs.20 billion in assets under its custody.
Geojit’s shares are listed on the Bombay Stock Exchange. The
company is a member of the National Stock Exchange of India Ltd., the
Bombay Stock Exchange and the National Securities Depository Ltd., and a
charter member of the Association of Financial Planners, India. More than
1000 professionals are operating through over 250 offices across the
country provide services to a growing retail investor base of 200,000.
Prominent institutional clients include banks, mutual funds and other
institutions such as UTI and insurance companies. Geojit has a large pool of
certified professionals who plan, execute and manage customized
investment strategies for clientele. Financial literacy programmers are
conducted on a regular basis through the branch network to raise
investment awareness. Early application of innovative technology in the
industry led to many national firsts such as internet trading, electronic
securities settlement on the web and an online integrated trading screen for
stocks and derivatives.
- IN 1988 The company, Geojit Securities Limited (GSL), was a
partnership firm, with two partners Mr. C.J. George and Mr. Ranjit, under
the name and style of M/s Geojit & Company established on 4th November,
BEC DOMS BAGALKOTPage 2
3. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
to act as stock and share brokers with membership on the Cochin Stock
ExchangeThe company was incorporated as a Public Limited Company on
24th November and obtained its Certificate of commencement of business
on 25th January 1995.
-
The company is at present engaged in the activities of stock and
share broking, underwriting, marketing of initial public offering of
companies and mutual funds, corporate advisory services, investments in
shares, participating in Bought Out Deals, syndication of inter-corporate
deposits, debt, bought-outs etc.The company has at present branches at
Trichur, Kottayam, Muvattupuzha and Coimbatore apart from having
representative offices at Mumbai. IN 1966 The company had made a
public issue of equity shares aggregating to Rs.95/- lakhs, during the
period under report which received an overwhelming support and was
oversubscribed over 14 times.
The Company held 100% of the paid up Capital of Rs.30,00,000/-
M/s Geojit Stock & Shares Ltd., a wholly owned subsidiary of the Company
as at 31st March. Geojit Securities Ltd, a leading retail share broking firm
launched Internet securities trading for the first time in India. Geojit
Securities is a joint venture with Kerala State Industrial Development
Corporation (KSIDC) with branches in 40 cities. ABN Amro Bank is set to
pick up an equity stake in Geojit Securities Ltd one of the largest stock
brokers and depository participant in the country.
The company is planning to introduce multi-bank, multi-DP
interfaces to facilitate and promote Internet trading in the country.Geojit
Securities Ltd, the first company to start online trading services, has
signed a MoU with UTI Bank to enable investors to buysell demat stocks
through the company's website. The Company has signed a deal with
Centurion Bank to provide payment gateway for Internet trading. The
Company launched its online interface with HDFC Bank for Internet trading.
BEC DOMS BAGALKOTPage 3
4. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Geojit Securities Ltd, a leading stock broking company, has decided to
issue bonus shares at 1:1 ratio, to capitalize part of general reserve.
PRODUCTS AND SERVICES
BEC DOMS BAGALKOTPage 4
5. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
PRODUCTS:-
Equity
F & O (Futures and Options)
Margin Trading Funding Scheme
Loan Against Shares
Loan Against Commodity Trading
Depository
Commodity
Portfolio Management Services (PMS)
1) Equity:
Equity/ordinary share capital, as a long-term source of finance,
represents ownership capital/securities and its owners –
equity-holders/ordinary shareholders – share the reward and risk associated
with the ownership of corporate enterprises. A shareholder can exercise, sell
in the market and renounce/forfeit his pre-emptive rights
partially/completely. He does not gain/loss from rights issues. Ordinary
share capital is a high-risk-high-reward source of finance for corporate. The
shareholders share the risk, return and control associated with ownership of
companies.
2) F & O (Futures and Options):-
BEC DOMS BAGALKOTPage 5
6. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
The National Stock Exchange and The Stock Exchange, Mumbai have
commenced trading in Derivatives Market with Index Futures being the first
instrument. Now both the exchanges provide trading in Index Futures and
Options and Stock Futures and Options.
A derivative is a financial contract, between two or more parties, which
is derived from the future value of an underlying asset. At any point of time
there will always be available near three months contract periods. For e.g. in
the month of Jan 2006 one can enter into Jan, Feb or Mar contracts. The last
Thursday of each month is the expiry day for that month’s contract. When
one contract expires, a new contract is introduced. For instance, on expiry of
Jan 2006 contract, April contract shall get activated.
Currently, settlements of all Derivatives trades are in cash. There is
Daily as well as Final Settlement. As long as the position is open, the same
will be marked to Market at the
Daily Settlement Price, the difference will be credited or debited accordingly
and the position shall be brought forward to the next day at the daily
settlement price. Any position which remains open at the end of the final
settlement day (i.e., last Thursday) shall be closed out by the Exchange at
the Final Settlement Price which will be the closing spot value of the
underlying.
There are two types of margins collected on the open position, viz.,
Initial Margin which is collected upfront and Mark to Market Margin to be
paid on T+1 day. As per SEBI Guidelines it is mandatory for clients to give
margin, failing which the outstanding positions may be closed out.
There are three types of Members in the Futures and Options Segment:-
BEC DOMS BAGALKOTPage 6
7. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Trading Members are only eligible to trade; their trades are settled by
the Clearing Members.
Trading cum clearing members are members who are eligible to trade
and also settle trades on their own behalf and also settle on behalf of
other trading members.
Professional Clearing Members are members who are only specialized
in the clearing and settlement activities. They do not trade on their
own behalf or on behalf of other members
Self Clearing Members are those who trade and settle only their own
trades. Geojit Financial Services Ltd is trading cum clearing member at
NSE.
3) Margin Trading Funding Scheme:
In Marginal Trading, an Investor buys securities by borrowing a portion
of the transaction value and using the securities in the portfolio as collateral.
An investor who purchases securities may pay for the securities fully in cash
or may borrow a part of the transaction value from the brokerage firm.
4) Loan Against Shares:-
Geojit Credits Pvt. Ltd., a subsidiary of Geojit Financial Services Ltd,
registered as a Non-Banking Finance Company (NBFC) offers Loans against
security of shares. The facility is available to all customers of Geojit Financial
Services Ltd.
Key Features of the Scheme:-
1. All securities defined under Group I of NSE are eligible for Loan against
Shares
2. Loan is provided against a minimum of two securities and minimum
loan amount is Rs.50000/-
BEC DOMS BAGALKOTPage 7
8. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
3. Loan up to 50% of the current market value of approved shares.
4. Upper ceiling on quantum of loan shall be as determined by Geojit
Credits P Ltd on a case to case basis
5. Speedy disbursal through RTGS / direct credit to the customer’s bank
account / cheque
6. Securities are to be transferred to Geojit Credits Pvt. Ltd
7. Fixed charges of 1.00 % of loan amount is charged upfront and is non
refundable.
8. Rate of interest is 14 % p.a. for Loans above Rs 3 lacks and 15% pa for
Loans up to Rs 3 lacs. This is subject to change from time to time.
Interest is charged on Daily Outstanding Balance in Loan account at
monthly rests. Interest debited every month should be repaid by
chque/DD payable at Kochi with in 7 days of debit.
9. The credit is provided as an overdraft facility for a period of One year
at a time, renewable by mutual consent.
10. Loan can also be redeemed by instructing Geojit Credits Pvt. Ltd
to sell the securities
11. Loans are re-valued daily
12. Margin calls are made if the value of the securities fall by 10%
which can be met with either by redeeming the loan partially or placing
additional securities
13. Securities may be liquidated if the margins are not furnished in
case of a fall of 20% value of the securities
5) Loan Against Commodity Trading:-
BEC DOMS BAGALKOTPage 8
9. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Geojit Credits Pvt. Ltd offers loans against Pledge of Warehouse
Receipts for delivery at Commodity Exchanges.
Key Features of the Scheme:-
Loans against Pledge of Physical and Demat warehouse receipts
Loans up to 80% of sale value price contracted for Futures delivery
Loans are also considered against Pledge of warehouse receipts
without Futures Sell contract on a case-to-case basis at higher
margins ranging from 30% to 50% of the value
Loans available till sale proceeds are realized on settlement from the
Commodity Exchange else up to a maximum of three months
Provision to switch between different future contracts (subject to
validity of warehouse receipts)
Simple documentation
6) Depository:-
A depository can be compared to a bank. It holds securities such as
shares, debentures, bonds, government securities, units etc. of investors in
electronic form. There are two depositories in India, The National Securities
Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
An individual who desires to avail the depository services can approach a
Depository Participant (DP). Banks, financial institutions, custodians, brokers
or any other entity eligible as per SEBI (Depositories and Participants)
Regulations, 1996 can apply to the Depository to become a Depository
Participant. As on 31st March, 2006 there are 526 Depository Participants in
India.
BEC DOMS BAGALKOTPage 9
10. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Geojit, is a depository participant of NSDL & CDSL. Investors can open
demat accounts with NSDL & CDSL through Geojit. One can approach the
nearest branch of Geojit for opening an account. Agreement charges
(statutory charges) along with Annual Maintenance Charge (AMC) are
collected upfront while opening an account. It takes two to three days to
open a demat account. Upon activation of the demat account, a Welcome
Letter is sent to the customer along with the Delivery Instruction Slip book.
DP facilities offered by Geojit :-
De-materialization: Consumers can convert their physical shares into
electronic form by surrendering the shares for dematerialization at the
Geojit branch.
Re-materialization: Re-materialization enables consumers to convert
the dematerialized shares into physical form.
Repurchase: This facility helps consumers to submit the units of
open-ended Mutual Funds in case of re-purchase.
Pledge: Consumers can pledge securities to avail a loan.
Transfer: Consumers can transfer securities from one demat account
to another.
IPOs: In case consumers have applied for an IPO and receive an
allotment then the securities are transferred directly to their demat
account. The same applies for bonus and rights issues.
Commodity De-mat Account: If consumers are a commodity player,
they may need to open a commodity de-mat account with Geojit.
Speed-e: If consumers register for Speed-e services, then transfer
instructions can be placed online over the internet to pre-notified
BEC DOMS BAGALKOTPage 10
11. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Clearing Members Pool a/c. This does away with the need to submit a
physical delivery instruction slip.
Internet Services: If consumer have access to Internet then they can
register with Geojit to view their demat account over the Internet. This
is very beneficial as consumers can avail of a host of services at no
extra cost.
SMS Alert Facility: The alert messages for debits (transfers) and IPO
credits would be sent to the account holders who have subscribed to
this facility. Depository provides this facility and no charge is levied on
DPs for providing this service to investors.
7) Commodity:
Geojit Commodities, a subsidiary of Geojit Financial Services Limited,
is mainly engaged in the business of Commodity Futures Trading. Geojit
Commodities is a member of:
National Multi – Commodity Exchange of India limited (NMCE)
National Commodity & Derivatives Exchange Limited (NCDEX)
Multi – Commodity Exchange (MCX)
India Pepper and Spice Trade Association (IPSTA)
Singapore Commodity Exchange (SICOM)
Dubai Gold Commodity Exchange (DGCX).
Geojit provides information on commodity futures, along with
technical and fundamental analysis online at its website and also through the
company's large branch network. The company conducts Seminars,
distributes free in-house literature and holds interactive sessions that help
raise awareness on the futures market. The number of participants is
continuously on the rise thus leading to increased volumes and market
BEC DOMS BAGALKOTPage 11
12. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
efficiency. Geojit Commodity offers futures trading through multiple
exchanges in varied commodities such as:
Agri- commodities: oilseeds, soya, groundnut, pulses, rice, wheat,
sugar, spices, rubber, guar, pepper, cardamom, coffee, etc
Precious metals: gold and silver,
Base metals: steel, aluminium, nickel, zinc, copper, etc
Energy products: crude oil and furnace oil
Geojits clientele in commodities range from investors, co-operative
societies, state and national institutions to dealers, traders, manufacturers,
financiers, speculators, arbitragers,etc.
Geojit does not have proprietary interest in any commodity and therefore is
price neutral. Transaction costs are highly affordable attracting a spectrum
of investors. Membership in multiple exchanges gives clients the added
advantage of arbitrage. Geojit has specialized staff that provide the required
guidance, help and enable clients to enter at the appropriate price.
8) PMS (Portfolio Management Services):
Geojit, a SEBI registered Portfolio Manager (Reg. No.INP000000316)
offers discretionary portfolio management services. Geojit has a team of
experts who carefully take investment decisions based on the clients'
objectives. The Portfolio Management team has a successful track record of
more than 10 years in the capital market. The team has access to Geojit's
strong Equity Research, and Fundamental & Technical Analysis.
Investment Objective: To generate medium to long-term capital
growth (2-3 years) by identifying undervalued stocks and those
with growth opportunities from a select list of well researched
stocks
BEC DOMS BAGALKOTPage 12
13. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Strategy: Identifying growth stocks from a select list through
extensive research.
Minimum Investment: Rs.10 lakhs for resident Indians and Rs.25
lakhs for Non-Resident Indians.
Reports: Portfolio and NAV are communicated bi-weekly via e-mail.
Risk factors: As the stocks are normally held for medium to long
term, the net asset value will be affected by market volatility.
PMS fee:
Option 1: 3% p.a. (charged @0.75% at the end of every quarter on
the average of beginning and ending NAV).
Option 2: 1% p.a. (charged @0.25% at the end of every quarter on
the average of beginning and ending NAV) and performance fee.
BEC DOMS BAGALKOTPage 13
14. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
RESEARCH ON TECHNICAL
ANALISYS
TITLE OF THE PROJECT:
“Technical Analysis on Automobile Sector” Undertaken at Geojit Financial
Services Ltd Bagalkot
SCOPE OF THE STUDY:
This study is most important because technical analysis helps
investors in better understanding the markets and gauges the direction in
which their investments might be headed and it’s utility helps in estimating
the future trends of the stock prices and to make a decent profit out of it.
OBJECTIVES OF THE STUDY:
BEC DOMS BAGALKOTPage 14
15. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
1) To predict investor positions (Buy, sell & hold).
2) To know the future trend of Stock Prices of Tata Motors Maruti Udyog
Ltd and M&M automobile in capital market.
METHODOLOGY:
Primary data is collected through direct interactions with the Branch
Manager and Employees of Geojit Financial Services, Ltd Bagalkot.
The Secondary data is collected from the relevant text books on the
subject matter and company’s official website.
TOOLS:
1. Moving Average Method.
2. Candle stick chart.
LIMITATIONS OF THE STUDY:
1. The study is limited only to automobile sector and 3 companies
2. I have used only 2 Technical tools to predict the movement of Scrip’s.
BEC DOMS BAGALKOTPage 15
16. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
THEROTICAL FRAME WORK
Technical analysis is the examination of past price movements to
forecast future price movements. Technical analysts are sometimes referred
to as chartists because they rely almost exclusively on charts for their
analysis.
MOVING AVERAGE:-A Moving Average is an indicator that shows the
average value of a security's price over a period of time. When
calculating a moving average, a mathematical analysis of the
security's average value over a predetermined time period is made.
As the securities price changes, its average price moves up or down.
There are several popular ways to calculate a moving average. Meta
Stock for Java calculates a "simple" moving average--meaning that
equal weight is given to each price over the calculation period.
BEC DOMS BAGALKOTPage 16
17. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
INTERPRETATION:- The most popular 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 itself. 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.
This type of moving average trading system is not intended to get you
in at the exact bottom nor out at the exact top. Rather, 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. The
critical element in a moving average is the number of time periods
used in calculating the average. When using hindsight, you can always
find a moving average that would have been profitable. The key is to
find a moving average that will be consistently profitable. The most
popular moving average is the 39-week (or 200-day) moving average.
This moving average has an excellent track record in timing the
major (long-term) market cycles.
ADVANTAGES:-The advantage of moving average system of this type
(i.e., buying and selling when prices break through their moving
average) is that you will always be on the "right" side of the market:
prices cannot rise very much without the price rising above its average
price. The disadvantage is that you will always buy and sell some late.
If the trend does not last for a significant period of time, typically twice
the length of the moving average, you will lose your money.
CANDLE STICK CHARTING:-
Candlestick charts have been around for hundreds of years. They are
often referred to as "Japanese candles" because the Japanese would use them
to analyze the price of rice contracts. Similar to a bar chart, candlestick
BEC DOMS BAGALKOTPage 17
18. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
charts also display the open, close, daily high and daily low. The difference is
the use of color to show if the stock went up or down over the day.
The chart below is an example of a candlestick chart for AT&T (T).
Green bars indicate the stock price rose, red indicates a decline:
Investors seem to have a "love/hate" relationship with candlestick
charts. People either love them and use them frequently or they are
completely turned off by them. There are several patterns to look for with
candlestick charts - here are a few of the popular ones and what they mean.
BEC DOMS BAGALKOTPage 18
19. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
This is a bullish pattern - the stock opened at (or near)
its low and closed near its high
.
The opposite of the pattern above, this is a bearish
pattern. It indicates that the stock opened at (or near) its
high and dropped substantially to close near its low.
Known as "the hammer", this is a bullish pattern only if it
occurs after the stock price has dropped for several days.
A small body along with a large range identifies a
hammer. This pattern indicates that a reversal in the
downtrend is in the works.
Known as a "star”. For the most part, stars typically
indicate a reversal and or indecision. There is a
possibility that after seeing a star there will be a
reversal or change in the current trend.
BEC DOMS BAGALKOTPage 19
20. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
COMPANY ANALISYS
MARUTI UDYOG LIMITED
Maruti Udyog Ltd is one of India's leading automobile manufacturers and
the market leader in the car segment, both in terms of volume of vehicles
BEC DOMS BAGALKOTPage 20
21. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
sold and revenue earned. 18.28% of the company is owned by the
government, and 54.2% by Suzuki of Japan. The Indian government held an
Initial Public Offering of 25% of the company in June of 2003.The company
annually exports more than 30,000 cars and has an extremely large
domestic market in India selling over five hundred thousand cars annually.
Maruti 800, till 2004, was the India's largest selling compact car ever since it
was launched in 1983. More than a million units of this car have been sold
worldwide so far. Currently, Maruti Alto tops the sales charts. Due to the
large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term
"Maruti", in popular Indian culture, was associated to the Maruti 800 model.
The largest selling car from Maruti's stable, Maruti 800
In the order they were launched:
Maruti 800: Launched 1983. Largest selling car in India, till 2004.
Maruti Omni: Launched 1984.
Maruti Gypsy: Launched 1985.
Maruti 1000: Launched 1990
Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in
2006.
Maruti Esteem:Launched 1994
Maruti Wagon-R:Launched 1999 Modified 2006
Maruti Baleno:Launched 1999
Maruti Alto:Launched 2000. Currently the largest selling car in India
Maruti Grand Vitara:Launched 2003
Maruti Versa: Launched 2004
Maruti Swift: Launched 2005
SERVICES OFFERED:-
Authorized Service Stations- Maruti is one of the companies in India
which has unparalleled service network. To ensure the vehicles sold by them
BEC DOMS BAGALKOTPage 21
22. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
are serviced properly Maruti had 1545 listed Authorized service stations and
30 Express Service Stations on 30 highways across India.
Maruti Finance- To promote its bottom line growth, Maruti launched
Maruti Finance in January 2002. Prior to the start of this service Maruti had
started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi
Group and GE Countrywide respectively to assist its client in securing loan.
Maruti tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture
including its strategic parnters in car finance. Again the company entered
into a strategic partnership with SBI in March 2003. Since March 2003,
Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti
Finance is currently available in 166 cities across India.
Maruti TrueValue- Maruti True Value is a service offered by Maruti
Udyog to its customers. It is a market place for used Maruti Vehicles. One
can buy, sell or exchange used Maruti vehicles with the help of this service in
Indi
Some Milestones-
1983- Launched, hence bringing the first revolution in the Indian car market
in terms of
Shape May- 1993, Zen the world car unvieled at a world premier.
November- 1994, Esteem the first luxury car on Indian roads launched
December- 1999, Baleno, the top end of the luxury car launched.
March-2000 WagonR the original tall boy launched.
September-2000, Alto launched in three variants.
BEC DOMS BAGALKOTPage 22
23. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
TATA MOTORS
Tata Motors Limited formerly known as TELCO (TATA Engineering and
Locomotive Company), (NYSE: TTM) - is India's largest passenger automobile
and commercial vehicle manufacturing company. It is a part of the Tata
Group, and has its headquarters in Mumbai, Maharashtra. One of the world's
largest manufacturers of commercial vehicles and known for its hatchback
passenger vehicle Tata Indica, Tata Motors has its manufacturing base in
Jamshedpur, Lucknow, Pune and Singur. The OICA ranked it as the world's
21st largest vehicle manufacturer, based on figures for2006.
Tata Motors was established in 1945, when the company began
making trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors
gained Rs. 320 billion during 2001-2006 which was among the top 10
corporate profits in India. In 2004 it also bought Daewoo's truck
manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in
South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA,
giving it controlling rights in the company. On 10 January 2008, Tata Motors
launched their much awaited Tata Nano, noted for its Rs 100,000 price-tag,
at Auto Expo 2008 in Pragati Maidan, Delhi.
Tata Motors Limited is India's largest automobile company, with
revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader
by far in commercial vehicles in each segment, and the second largest in
the passenger vehicles market with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fifth
largest medium and heavy commercial vehicle manufacturer, and the
world's second largest medium and heavy bus manufacturer.
The Tata Group is one of India's largest and most respected business
conglomerates, with revenues in 2006-07 of $28.8 billion, the equivalent of
about 3.2 per cent of the country's GDP, and the international revenues of
the Group in 2006-07 were US$ 10.8 billion, contributing to 38% of the total
Group revenues. Tata companies together employ over 300,000 people.
BEC DOMS BAGALKOTPage 23
24. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Awards:
Tata Motors chosen as India's Most Trusted Brand in Cars...
Business today selects Mr. P.P. Kadle as India's Best CFO in 2005...
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...
Industry and Technology Award, 2002.
Advertising Awards...
Tata Engineering was conferred Bharat Gaurav Puraskar...
National Award for R&D Efforts...
Best Company Award at Work skills Competition...
Corporate Social Responsibility:-
Green Matters
Tata Motors, a Company that cares about the future...
True to the tradition of the Tata Group, Tata Motors is committed in letter
and spirit to Corporate Social Responsibility. It is a signatory to the United
Nations Global Compact, and is engaged in community and social initiatives
on labour and environment standards in compliance with the principles of
the Global Compact. In accordance with this, it plays an active role in
community development, serving rural communities around its
manufacturing locations. Tata Motors believes in technology for tomorrow.
Our products stand testimony to this. Our annual expenditure on R&D is
approximately 2% of our turnover. We have also set up two in-house
BEC DOMS BAGALKOTPage 24
25. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Engineering Research Centers that house India's only Certified Crash Test
Facility. We ensure that our products are environmentally.
.
MAHINDRA& MAHINDRA
Founded in 1945 as a steel trading company, we entered automotive
manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads.
Over the years, we’ve diversified into many new businesses in order to
better meet the needs of our customers. We follow a unique business
model of creating empowered companies that enjoy the best of
entrepreneurial independence and Group-wide synergies. This principle
has led our growth into a US $11.1 billion multinational group with more
than 117,000 employees in over 100 countries across the globe.Today, our
operations span 17 key industries that form the foundation of every modern
economy: aerospace, aftermarket, agribusiness, automotive, components,
consulting services, defense, energy, farm equipment, finance and
insurance, industrial equipment, information technology, leisure and
hospitality, logistics, real estate, retail, and two wheelers.
Business Interest of Mahindra Group:-
BEC DOMS BAGALKOTPage 25
26. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Automotive Sector: Mahindra Group is the market leader in utility vehicles in
India since inception. Mahindra also manufactures and markets utility
vehicles and light commercial vehicles, including three-wheelers. Some of
the famous automobile brands of Mahindra are: Scorpio and Bolero. Recently,
Mahindra joined hands with French automobile major Renault to enter
passenger car segment. It has launched a car called Mahindra Renault Logan.
Farm Equipment Sector: Mahindra is the largest producer of tractors in India
and is among the top five tractor brands in the world. It has its own
state-of-the-art plants in India, USA, China and Australia, and a capacity to
produce 1,50,000 tractors a year.
Trade & Financial Services: Mahindra Intertrade Limited and its subsidiaries
have specialized domain knowledge in imports and exports of commodities,
domestic trading, marketing and distribution services. Mahindra Finance is
one of the largest Non Banking Finance Companies in India with an asset
base of about Rs. 5000 crores. Mahindra Insurance Brokers offer Life and
Non-life Insurance plans to retail and corporate customers. Mahindra Steel
Service Centre is the first steel service centre in the organised sector in India.
Infrastructure Development: Mahindra Group has interests in real estate,
special economic zones, hospitality industry, infrastructure development,
project engineering consultancy and design. Mahindra Holidays & Resorts is
the leader in the lifetime holiday market in India. Mahindra Gesco is fastest
growing Construction Company in India. Mahindra World City is developing
and promoting India's first Integrated Business City. Mahindra Acres
Consulting Engineers is a multidisciplinary engineering consultancy
organization.
Specialty Businesses: Mahindra Group companies such as Mahindra
AshTech, Mahindra Defense, Spares Business Unit and Mahindra Logistics are
into Specialty Businesses. Mahindra AshTech undertakes turnkey contract
BEC DOMS BAGALKOTPage 26
27. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
execution for Ash Slurry System and Travelling Water Screens. Mahindra
Defense Systems looks after the requirements of India's defense and security
forces. Mahindra Logistics provide complete logistics solutions to complex
transportation needs of clients across the world.
Major Achievements of Mahindra Group
Mahindra & Mahindra made the first indigenous Jeep in the country in
1949.
Fourth largest tractor company in the world.
Largest manufacturer of tractors in India.
Largest manufacturer of MUVs, offering over 20 model
BEC DOMS BAGALKOTPage 27
28. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
TECHNICAL ANALISYS ON
AUOTOMOBILE SECTOR
BEC DOMS BAGALKOTPage 28
29. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
MARUTI SUZUKI LTD
10 DAYS MOVING AVG OF MARUTI SUZUKI SCRIP
10 DAYS
DATE OPEN HIGH LOW CLOSE MOVING AVG
1-Apr-10 1422 1427.4 1385 1390.7
5-Apr-10 1403.9 1404.9 1386.25 1395.5
6-Apr-10 1408.6 1408.6 1373 1376.35
7-Apr-10 1385 1405 1369.55 1400.4
8-Apr-10 1402 1410 1379.2 1383.15
9-Apr-10 1444.4 1450 1375 1381.15
12-Apr-10 1394 1396 1364.05 1372.05
13-Apr-10 1377 1377 1354 1367
15-Apr-10 1370 1377.9 1351 1354.05
16-Apr-10 1352 1362 1345.1 1350.95 1377.13
19-Apr-10 1324 1346.25 1324 1331.25 1371.185
BEC DOMS BAGALKOTPage 29
36. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
11-Mar-11 1260 1277.95 1239.2 1252.7 1262.145
14-Mar-11 1245 1283 1218.35 1259.25 1270.995
15-Mar-11 1220 1227.7 1200.05 1214.5 1271.775
16-Mar-11 1215.1 1228 1215.1 1223.6 1264.845
17-Mar-11 1214.95 1214.95 1161 1169.25 1248.945
18-Mar-11 1180.15 1202 1150 1158.3 1233.4
21-Mar-11 1161 1166 1125.9 1131.35 1220.065
22-Mar-11 1136 1179.3 1134 1171.85 1211.6
23-Mar-11 1171.85 1180.1 1156.45 1175.65 1202.555
24-Mar-11 1176 1185 1160.15 1168.6 1192.505
25-Mar-11 1180 1184.5 1162 1181.8 1185.415
28-Mar-11 1189 1210 1181.1 1201.8 1179.67
29-Mar-11 1200 1248 1200 1239.25 1182.145
30-Mar-11 1244 1296 1239.3 1275.65 1187.35
31-Mar-11 1268.9 1286.9 1240 1263.55 1196.78
CHART ANALYSIS:-MARUTI SUZUKI
INTERPRETATION:-
Here, the Moving Average is below to the closing line. In this Graph,
we can observe that moving Average of Maruti Suzuki Ltd. Stock has been
decreased. So, it is giving clear picture of future movement of the scrip. And,
if we observe the trend of this graph then we can also notice that Moving
Average line has been decreased.
ANALYSIS:-
Here, in this graph moving average line has been decreased and below
to the actual line so it‘s provides a message to the investor that it’s a right
time to buy the security of Maruti Suzuki Ltd.
BEC DOMS BAGALKOTPage 36
46. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
CHART:- TATA MOTORS
INTERPRETATION:-
Here, In this case, Moving Average is below to the actual line. In this
Graph, we can see that the moving average of Tata Motors Stock has been
increasing. So, it is giving clear picture of future movement of the scrip to
the investors.
ANALYSIS:- This Graph provides a message to the investor that the both
stock price are increasing so it indicates that it is not right time to buy the
security it’s time to sell the security.
BEC DOMS BAGALKOTPage 46
47. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
Mahindra & Mahindra
10 DAYS MOVING AVERAGE OF M&M SCRIP
OPEN HIGH LOW CLOSE 10 DAYS
DATE PRICE PRICE PRICE PRICE MOVING AVG
1-Apr-10 550.4 555.7 528.3 533.8
5-Apr-10 537.3 548.8 535.5 547.15
6-Apr-10 550 552.95 533.1 534.25
7-Apr-10 539.7 541.25 525 529.95
8-Apr-10 536 544 522.55 525.15
9-Apr-10 530 533 522.2 528.25
12-Apr-1
0 532 532.6 516.5 517.7
BEC DOMS BAGALKOTPage 47
57. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
INTERPRETATION:-
In this Graph, we can observe that moving Average of MAHINDRA
& MAHIDRA’S. Stock scrip is below the actual price. And, if we observe the
trend of this graph then we can also notice that Moving Average line has
been decreased.
ANALYSIS:-
Here, in this case, the Stock price of MAHINDRA & MAHIDRA’S. is
above to its moving average line. So, it is giving clear picture of future
movement of the scrip. So it indicates that it is a right time to buy the
security.
CANDLE STICK CHART
MARUTI-SUZUKI:-
INTERPRETATION:- In the above Candle Stick Chart it is clear that Stock Price
of MARUTI-SUZUKI has ups and downs. Simply Share Prices of
MARUTI-SUZUKI is moving up and decreased to the last months.
ANALYSIS:-
BEC DOMS BAGALKOTPage 57
58. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
It indicates that the investors are becoming more bullish than bearish in the
October and November months. Here, It is a right time to sell the Scrip. Were
its decreasing last months in that time we buy the scrip.
TATA MOTORS:-
INTERPRETATION:-
In the above Candle Stick Chart it is clear that Stock Price of TATA
MOTORS has been increasing. And the Share Prices of TATA MOTORS is
moving up.
ANALYSIS:- .
BEC DOMS BAGALKOTPage 58
59. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
It indicates that the investors are becoming more bullish. Here,
as far as TATA MOTORS is concerned, bullish market trend is taking place. It
is a right time to sell the Scrip.
CHART:- M&M
INTERPRETATION:-
In the above Candle Stick Chart it is clear that Stock Price of MAHIDRA
& MAHIDRA has been increasing it indicates that the investors are becoming
more bullish than bearish.
ANALYSIS:-
Here, as far as M&M is concerned, bullish market trend is taking place.
The Share Prices of MAHIDRA & MAHIDRA is moving up. It is a right time to
sell the Scrip.
BEC DOMS BAGALKOTPage 59
60. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
FINDINGS, SUGGESTIONS &
CONCLUSION
BEC DOMS BAGALKOTPage 60
61. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
FINDINGS OF THE STUDY
Technical analysts evaluate securities by analyzing statistics
generated by market activity, past prices and volume.
Moving average line has been decreased and below to the actual
line so it‘s provides a message to the investor that it’s a right time
to buy the security of Maruti Suzuki Ltd.
Candle Stick Chart it is clear that Stock Price of MARUTI-SUZUKI It
indicates that the investors are becoming more bullish than bearish
in the October and November months. Here, It is a right time to sell
the Scrip. Were its decreasing last months in that time we buy the
scrip.
In case of 10 days Moving Average of Tata Motors Scrip, message
to the investor that the both stock price are increasing so it
indicates that it is not right time to buy the security it’s time to sell
the security.
Candle Stick Chart it is clear that Stock Price of TATA MOTORS has
been increasing, as far as TATA MOTORS is concerned, bullish
market trend is taking place. It is a right time to sell the Scrip.
Moving Average of the Stock price of MAHINDRA & MAHIDRA’S. is
above to its moving average line. So, it is giving clear picture of
future movement of the scrip. So it indicates that it is a right time
to buy the security.
It is a right time to sell the Scrip of MAHINDRA & MAHIDRA’S Candle
Stick Chart it is clear that Stock Price of MAHIDRA & MAHIDRA has
been increasing
BEC DOMS BAGALKOTPage 61
62. TECHNICAL ANALYSIS OF AUTOMOBILE SECTOR AT
CONCLUSION OF THE STUDY
As we all know India is one of the fastest growing economies in the
world. India is consistently achieving growth in automobile sector. The
automotive industry is witnessing tremendous and unprecedented changes
these days. On a global scale, the assets of the top ten automotive
corporations accounts for 28% of the assets of the world’s top 50 companies,
29% of their employment and 30% of their total sales.
The Indian automobile industry is going through a technological
change where each firm is engaged in changing its processes and
technologies to sustain the competitive advantage and provide customers
with the optimized products and services. Consistent growth and dedication
have made the Indian automobile industry the second- largest tractor and
two-wheeler manufacturer in the world. It is also the fifth-largest
commercial vehicle manufacturer in the world. The Indian automobile market
is among the largest in Asia.
Apart from domestic production, the industry is consistently focusing
on the automobile exports. The auto component segment is contributing a
lot in the export arena. The liberalized policies of the government are now
making the companies go for more and more exports. Because of these
reasons, the shares of automobile industry are performing well and therefore
the share market is attracting people to invest their hard earned money and
find fortune. But lack of knowledge about shares and stock market is making
BEC DOMS BAGALKOTPage 62