Trading Through Technical Analysis

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Trading Through Technical Analysis

A PROJECT REPORT ON

TRADING THROUGH TECHNICAL ANALYSIS

UNDERTAKEN AT A

SOUTH GUJARAT SHARES & SHAREBROKERS LTD.

SUBMITTED BY

NARENDRA N. PATEL

ID NO: - O8MBA36

GUIDED BY:

MR. NIRAV MAJMUDAR

MBA PROGRAMME

2008-10

SUBMITTED TO

SRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT

AND COMPUTER APPLICATION

1

Srimad Rajchandra Institute Of Management And Computer Application






DECLARATION

I, Narendra N. Patel., here by declare that the project report

entitled “TRADING THROUGH TECHNICAL ANALYSIS” under the

guidance of Mr. Nirav Majmudar, submitted in partial fulfillment of the

requirement for degree of Master of Business Administration to Veer

Narmad South Gujarat University, Surat is my original work – research

study – carried out during 25th May, 2009 to 25th July, 2009. Hereby I

declare that this report will not submitted for the award of any other

degree/diploma/ fellowship of other similar titles of price to any other

institution/ organization of university by any other person or for

copying.

Place:

Date: / /

Signature

(Narendra N. Patel.)

F.Y.M.B.A. (Sem-2)

ID No:08MBA36

3





EXECUTIVE SUMMARY

India's economy is on the fulcrum of an ever increasing growth

curve. With positive indicators such as a stable 8-9 per cent annual

growth, rising foreign exchange reserves, a booming capital market

and a rapid rise in FDI in the last year, India has emerged as the

second fastest growing major economy in the world.

The economy has been growing at around 9 percent in the past

two years recording a growth rate of 9.4 per cent and 8 per cent in

2006-07 and 2007-08 respectively and 6.5 percentage in 2008-09.significantly, the industrial and service sectors have been contributing

a major part of this growth, suggesting the structural transformation

underway in the Indian economy.

Investment in the equity market is very risky compare to the

other instruments like mutual fund and insurance. So it needs in depth

analysis of the scripts.

The study of the stock market has become divided in to two

kinds of thought: Fundamental analysis and technical analysis.

Fundamental analysis focuses on the economic forces of supply and

demand that cause prices to move higher and lower as to stay the

same. Technical analysis is the study of market action primarily

through the use of charts for the purpose of forecasting future price

trends. The term “market action” includes the two principle sources of

information available to the technicians-price and volume.

I have chosen the technical analysis for the purpose of analyzing

the scripts. I have studied basic theories of technical analysis which are

applicable to this analysis which includes various indicators and

oscillators. I have used MACD oscillator and RSI indicator for analyzing

scripts and to obtain buy and sell signals.

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From my research, I found that it is really a nice approach to

estimate the future. It really helps to catch the small moves and gives

the opportunity to investor to get returns in the small and long run

also.

The selection of the company:-

Here companies have been selected on the basis of market

capitalization. Those companies are highest at market capitalization

have been selected. Here it is to be noted that BHARTI AIRTEL and

SBI has not been selected because historical data of the share prices is

not available on NSE.

From my research of historical data which yields profit and losses

has been calculated on the basis of MACD and RSI which has yield

profits which is resulted from the frequent buy-sell. The procedure has

been well explained in the report. The all result which has been

obtained after analysis of these signals. These all result is said to be

obtained by adopting active trading strategy. These result of active

trading strategy has been obtained are compared with the passive

trading strategy which referred to the buying the stocks at the starting

of year and selling the security after particular time interval (at the end

of the year in this report).

So these analysis and interpretation of the data has been done

and all the results and findings obtained. It is found from the research

that active trading strategy is more useful then the passive trading

strategy.

5





CERTIFICATE

This is to certify that the Summer Project reportentitled “Trading Through Technical Analysis”

has been carried out by Narendra Patel

(08MBA36) at South Gujarat Shares &

Sharebroker Ltd.as a partial fulfillment of the

requirement for the degree of Master of Business

Administration (M.B.A.) during academic year 2008-

10.

Nirav Majmudar Dr. Bankim

Patel

FACULTY GUIDE DIRECTOR

6





TABLE OF CONTENTS

SR.

NO.

TRADING THROUGH TECHNICAL

ANALYSIS

PAGE

NO.

01 About the Company

1.1 Introduction about company

1.2 Profile of the company

1.3 Ideology

02 About the Topic & Literature Review

03 RESEARCH METHODOLOGY

3.1 Research Objectives

3.2 Research Design

3.3 Limitation to the study

04 DATA ANALYSIS & INTERPRETATION

05 FINDINGS & CONCLUSIONS

06 RECOMMENDATIONS

BIBLIOGRAPHY

APPENDIX

7





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INTRODUCTION ABOUT SGSSL

The South Gujarat Shares and Share brokers Ltd. (SGSSL) was

started with authorized share capital of Rs. 3 crores and it’s paid up

capital 1.27 crores under the company Act 1956. In 1992, The

Company started its activities as association of person as sub broker

giving service for buying and selling of securities to investors in Surat.

Mr. Anil Choksy, Mr. Ashok Maheta, Mr. Jagdish Patel, Mr.Paresh

jarivala Who took initiative to forming a limited company, So as

become member of NSE India .In this way SGSSL was registered under

company Act on the 5th January 1995, and conducted it’s trading

business as member of National Stock Exchange.

31st march 1995 which was first financial year completed by the

company after its registration & in this year the company suffered a

loss of Rs.80000 due to heavy expenses like assets purchase,

maintenance, establishment of building, furniture etc. The company

had also faced loss in next financial year (1995) of RS.118000 because

of prevailing poor market condition.

During the year ended 31st march, 1997 the company has turned

the table. On the total income of Rs. 4,5,80,000, the company made a

net profit of Rs.3,70,000 and after adjusting the losses of Rs. 1,98,000,

the Net Profit shown to the Balance Sheet was Rs. 1,78,000.

On the 27th February 1996, the company obtained SEBI

registration broker. Originally the operation was started at Baroda

because at that time National Stock Exchange not providing

connectivity in Surat. When connectivity was started, it shifted in Surat

at 23rd July 1996 at Belgium Chambers. At Belgium Chambers the

company has huge space for smooth operation approximately

2700sq.ft.

In the next year 1998 the company has taken approval from

National Security Depository Ltd. (NSDL) to work as Depository

Participant (DP). In the beginning only 8 scrip were available which is

only for FII (Foreign Institutional Investors) and Mutual Funds. Then

9





after trading of equity on NSE’s scrip were started. There are more

than 12,500 holders which having demated a/c in SGSSL. The

company is second largest in demate a/c in Surat city.

In present condition company try to register its sub-broker inSEBI. But now in present, company has 35 registered sub-brokers and

other members.

Company has a Computer-to-Computer Link (CTCL) network,

which are connected with LAN and WAN. In Surat City Company has

given many register sub-broker CTCL. Company also provides its

services outside in Surat like, Navsari, Bilimora and Hazira. In company

there are 28 people working. Company has also connect with 5 servers

in this server one server connect with NSE CTCL and second with

disaster management. In NSDL also there is one main server.

The company provide 3 different rooms for online trading to its

clients and sub-broker with Satellite dish, Modem and Iqara cable. The

trading business of the company is rapidly expanding and its daily

trading volumes have now crossed Rs.4 crores. The company expects

the trading volume will increase in future.

Mr. Anil Choksy (Chairman & MD) of the company leads the

operation of the company. He along with other Whole-time Directors

maintains a close hand on the operation. The company has its own

internal trading and settlement regulation, which are in conformity with

the NSE and SEBI regulation. These regulations ensure that the

activities of the company are managed on the Co-operative basis and

in the high interest of the investors and the shareholders of the

company.

1.2 Profile of Company

1. Name of the company

“South Gujarat Shares and Share brokers Limited”

2. Registered Office

3rd Floor, Belgium Square,

Opp.Linear bus stop,

Ring Road,

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Surat-395 003.

3. Boards of Directors

Mr.Anil J. Choksy (Chairman and MD)

Mr.Bhadresh G. Kapadia (Whole-time Director)Mr.Shashikant R. Yadav (Whole-time Director)

Mr.Aiyush M. Yacoobali (Whole-time Director)

Mr.Bipinchandra Lineswala (Whole-time Director)

Mr.Chetan T. Halvawala (Director)

Mr.Paresh H. Zaveri Director (Director)

4. Bankers

Bank of Baroda

Canara Bank

HDFC Bank

Prime Co-operative Bank

5. Internal Auditor

Anvish Sanghavi & Company

Chartered Accountant

Surat.1.3 IDEOLOGY

The emphasis in SGSSL is the ‘Client’. We are committed to

service our clients employing a personalized and human approach,

understanding their need and customizing solutions to fulfill their need.

It is an approach that is inculcated and ingrained in all the employees

and is followed from the top to bottom in the organization. We cater to

our clients by offering them insights in to the markets, advising them

and providing them with our best services.

CRM (Customer Relationship Management) Approach is follows

Speed & Quality in Delivery System

Consistency of service quality

Professional Approach

Fulfilling the Client’s need

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LITERATURE REVIEW:

For this study, I have collected lot of data from the different sources of data. Mainly I have used two methods for data collection.

A) Primary Data: -

Personal consultation with broker as well as mentor:

In which I have consulted with the mentor about how to get the

data which help me in analysis. How to get that data from which

sources and also how to obtain graphs from the various sites and

broker has help me out in obtaining that data. Mentor has alsogiven me knowledge about various techniques to use in the

technical analysis.

B) Secondary Data:

Internet

In which various information and data supporting to the topic has

been referred and it has help me out in understanding various

techniques and graphs explained in the theory used in analyzingthe data.

Data has been collected for the understanding purpose has

been collected through www.investopedia.com.

Data of Market capitalization has been obtained through

www.Moneycontrol.com

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http://www.investopedia.com/

http://www.moneycontrol.com/








the only thing that matters is a security's past trading data and what

information this data can provide about where the Security might move

in the future.

1. The Market Discount Everything

A major criticism of technical analysis is that it only considers price

movement, ignoring the fundamental factors of the company.

However, technical analysis assumes that, at any given time, a stock's

price reflects everything that has or could affect the company -

including fundamental factors. Technical analysts believe that the

company's fundamentals, along with broader economic factors and

market psychology, are all priced into the stock, removing the need to

actually consider these factors separately. This only leaves the analysis

of price movement, which technical theory views as a product of the

supply and demand for a particular stock in the market.

2. Price Moves in Trends

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

This means that after a trend has been established, the future price

movement is more likely to be in the same direction as the trend than

to be against it. Most technical trading strategies are based on this

assumption.

3. History Tends to Repeat Itself

Another important idea in technical analysis is that history tends to

repeat itself, mainly in terms of price movement. The repetitive nature

of price movements is attributed to market psychology; in other words,

market participants tend to provide a consistent reaction to similar

market stimuli over time. Technical analysis uses chart patterns to

analyze market movements and understand trends. Although many of

these charts have been used for more than 100 years, they are still

believed to be relevant because they illustrate patterns in price

movements that often repeat themselves.

14


http://www.investopedia.com/terms/f/fundamentals.asp

http://www.investopedia.com/terms/m/marketpsychology.asp

http://www.investopedia.com/terms/f/fundamentals.asp

http://www.investopedia.com/terms/m/marketpsychology.asp




How is Technical Analysis done?

Technical Analysis is done by identifying the trend from past

movements and then using it as a tool to predict future pricemovements of the stock. It can be done by using any of the following

methods:

a) Moving Averages—

This method is used to predict the trend and specify various

support and resistance levels in the short and long term period. Most

commonly used moving averages are 30 DMAs and 200 DMAs. Where

DMA means Days Moving Average.

b) Charts & Patterns—

Some analysts’ uses charts and patterns to decide on the trend

and then judge the future movement. The tool used by such analyst is

converting the chart in one of the many form of many shapes

commonly formed by stocks. Some of such patterns are:

Reversal Patterns: - Continuation Patterns: -1. Bump and Run 1.Cup with Handle2. Double Top 2. Flag Pennant3. Double Top 3. Symmetric Triangle4. Double Bottom 4.Ascending Triangle5. Head And Shoulders Top 5. Descending Triangle6. Head And Shoulders Bottom 6. Price Channel7. Falling Wedge 7. Rectangle

8. Rising Wedge 8. Measured {Bear} Move9. Rounding Bottom10. Triple Top11. Triple Bottom

Who uses Technical Analysis?

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Investors for their short-term trading decisions use Technical

Analysis. This short-term may be further divided in day trading, short-

term investment and for hedging purposes. The role played by

Technical Analysis in each case is as follows:1) Day Traders:

A day trader is one who takes and squares off his position both on the

same day. Mostly a day trader counts on turnover rather than margin.

A day trader will interpret the market movement in the manner stated

below.

Suppose Mr. X is a day trader who deals in S&P CNX Nifty. The

movement of Nifty during a particular day is stated below, if Mr. X

follows the recommendations made by Technical Analysis he should

sell the Nifty at 1904-1908 levels and again at 1890 level. It can be

clearly seen that buying is coming at the level of 1870-1875; it is better

He Squares off and can even become a net buyer at this range.

2) Short term investors:

These people form the biggest clientele base of both the brokers and

the Technical Analyst. To explain the working lets take the price

movement curve of Infosys Technologies on NSE for the period 1st

January 2003 to 9th April 2003. On closely analyzing the chart you will

notice that a sustained buying is coming at the level of around

Rs.4000. Another aspect, which should be noted, is the declining trend

in terms of short term ‘High’ created by the stock. We can clearly

deduce that each short-term rally is creating a lower high over the

16





given term. In such a situation it is recommended by analyst to buy at

the resistance level but sell it off immediately if it breaks the level by a

margin of 2-3%. This is just an illustrative example and the level of

analysis varies with each case.

3.Hedgers:

These are generally big investors, who have lot of money at stake and

hence

they look to have some hedging of their risk. The strategy followed bythis section of investors is that they compare the stock in consideration

with the index and on the basis of the result of this comparison they

take their position in the stock. This can be explained by comparing the

movement of nifty on the graph with Infosys movement as we have

done in the figure given below.If we look at both the charts of nifty

movement with Infosys movement we find that although both have

fallen over the period but Infosys has witnessed some rallies and hencewe can clearly say that a hedger will benefit by using technical Analysis

and getting out at the periods when Infosys has given an upward rally.

17





Is Technical Analysis Helpful?

If we use only technical analysis in itself and do not considerother aspects it is very unlikely that we will have much success in the

long run, particularly in case of short-term investments. But if we use

Technical analysis along with fundamental analysis or discount the

industry and company related news while considering the valuation,

our chances of minimizing the risk brightens.

One thing that we must realize is that technical analysis provides us

only with the trend and judge future on that basis, it can be far fromactual in few cases, one of them was the day Infosys crashed by 30%

on a single day. By no imagination and no analysis one could have

guessed the same or rather have come closed to it. Therefore the best

use of technical analysis is to realize the trend and levels at which it

will break the trend so that one is prepared to take positions when such

trend breaks. It is because of this disadvantage that Technical analysis

more useful only for short-term investing…

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RESEARCH METHODOLOGY.

RESEARCH OBJECTIVES:-

Primary Objective:

To find out appropriate time to buy and sell securities based on

selected indicator and oscillator.

Secondary Objectives:

Understanding the technical analysis theories and methods to analyze

charts of the 5 companies using technical analysis. To help suggest investment decision by suggesting buying and selling

signals.

To compare active trading strategy with passive trading strategy to

measure this is more beneficial and profitable one.

RESEACH DESIGN

A research design specifies the methods and procedures for conducting

survey .Research design is the plan and structure of investigation soconceived as to obtain answer to research questions. The plan is

overall scheme of the research.

♦ RESEARCH DESIGN:

Descriptive Research Design.

♦ DATA COLLECTION METHOD :

Secondary data (1 year)

♦ SAMPLING TECHNIQUE:Sample of 5 companies has been selected on the basis of market

capitalization from NSE.

♦ Reliance

♦ ONGC

♦ NTPC

♦ NMDC

♦ BHEL

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NSE 10 Jul 11:04

Rank Company

Name

Last Price %

Chg

52 wk

High

52 wk

Low

Market Cap

(Rs. cr)

1 Reliance 1,838.00 -0.83 2,535.00 930.00 289,264.12

2 ONGC 980.00 -1.84 1,220.00 538.15 209,609.51

3 NTPC 192.30 -0.95 233.00 113.00 158,560.28

4 Bharti

Airtel

786.45 -1.16 1,036.00 483.00 149,293.78

5 NMDC 330.05 0.43 474.40 119.00 130,855.45

6 SBI 1,587.85 -1.01 2,039.70 891.50 100,809.46

7 BHEL 2,034.05 0.58 2,400.00 981.00 99,570.82

Here in my project I have used descriptive research design. This

research Design helps to find out (explore) meaning out of the

secondary data. My research is totally dependent on the secondary

database collected from the different relevant sources mentioned at

the end in bibliography. Here I have not taken the data of Bharti airtel

and SBI because the historical data of the stocks were not available on

the NSE site.LIMITATIONS TO THIS STUDY

(a) COST: - Various field works and visit to training centers,

analyzing data with software may be costly.

(b) TIME: - The scope of study is vast and thus time constraint so

I can’t do the all industry analysis and company analysis.

(c) Resistance to reveal the real investment information by the

broker.

(d) Technical analysis software was not possible as it was

available with main broker only so by analyzing the indicator

and oscillator value. We can easily find out the position of the

scripts but can not predict the exact values.

20


http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=RI

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=ONG

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=NTP

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=BA08


http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=NMD02

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=SBI

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=BHE

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=RI

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=ONG

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=NTP



http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=NMD02

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=SBI

http://www.moneycontrol.com/stocks/company_info/pricechart.php?sc_did=BHE




21





Here two techniques has been used for the analysis purpose which

gives the buying and selling signals at the time when market gives

opportunity to earn profit within short time span and techniques are

as follows.

1)Moving Average Convergence Divergence - MACD

A trend-following momentum indicator that shows the

relationship between two moving averages of prices. The MACD

is calculated by subtracting the 26-day exponential moving average

(EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the

"signal line", is then plotted on top of the MACD, functioning as a

trigger for buy and sell signals.

Explanation of Moving Average Convergence Divergence -

MACD

There are three common methods used to interpret the MACD:

1. Crossovers - As shown in the chart above, when the MACD falls

below the signal line, it is a bearish signal, which indicates that it may

be time to sell. Conversely, when the MACD rises above the signal

line, the indicator gives a bullish signal, which suggests that the price

of the asset is likely to experience upward momentum. Many traders

wait for a confirmed cross above the signal line before entering into

a position to avoid getting getting "faked out" or entering into a

position too early, as

Shown by the first arrow.

2. Divergence - When the security price diverges from the MACD. It

signals the end of the current trend.

3. Dramatic rise - When the MACD rises dramatically - that is, the

shorter moving average pulls away from the longer-term moving

average - it is a signal that the security is overbought and will soon

return to normal levels.

Traders also watch for a move above or below the zero line

22





because this signals the position of the short-term average relative to

the long-term average. When the MACD is above zero, the short-term

average is above the long-term average, which signals upward

momentum. The opposite is true when the MACD is below zero. As youcan see from the chart above, the zero line often acts as an area of

support and resistance for the indicator.

2)Relative Strength Index - RSI

A technical momentum indicator that compares the magnitude of

recent gains to recent losses in an attempt to determine overbought

and oversold conditions of an asset. It is calculated using the following

formula:

RSI= 100- 100

1+RS

From the chart below, the RSI ranges from 0 to 100. An asset is

deemed to be overbought once the RSI approaches the 70 level,

meaning that it may be getting overvalued and is a good candidate for

a pullback. Likewise, if the RSI approaches 30, it is an indication that

the asset may be getting oversold and therefore likely to become

undervalued.

Explanation of Relative Strength Index – RSI

A trader using RSI should be aware that large surges and drops in the

price of an asset will affect the RSI by creating false buy or sell

signals. The RSI is best used as a valuable complement to other stock-

picking tools.

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RS = Average of x days' up closes

Average of x days' down closes




Signal Generating Procedure

1) MACD:

MACD is an oscillator that measures the convergence and

divergence between two exponential moving averages. A short term

exponential moving average and a long term exponential moving

average are calculated with the help of closing price data. A12 days

and 48 days exponential moving averages constitute a popular

combination. The difference between the short term EMA and long

term EMA represents MACD.

The MACD values for different days are derived by deducting the

long term EMA for each day from the corresponding short term EMA for

the day. These MACD values are plotted on an XY graph with MACD

values on the Y axis and time period on the X axis. The MACD line

would oscillate across the zero line. If the MACD line crosses the zero

line from above the trend can be considered to have turned bearish,

signaling a selling opportunity. On the other hand, if the MACD line

moves above the zero line from below, the trend can be said to have

turned bullish and indicates buying opportunity.

2) RSI:

The RSI ranges from 0 to 100. An asset is deemed to be

overbought once the RSI approaches the 70 level, meaning that it may

be getting overvalued and is a good candidate for a pullback. Likewise,

if the RSI approaches 30, it is an indication that the asset may be

getting oversold and therefore likely to become undervalued.

RSI values above 70 are considered to denote overbought

condition and values below 30 are considered to denote oversold

condition. When the RSI has crossed the 30 line from below to above

24





and is rising, a buying opportunity is indicated. When it has crossed 70

line from above to below and is falling, a sell signal is indicated.

Here the analysis has been done using the signal generating

procedure explained above. Now in this graph when MACD line(Red

line) has crossed zero line from the above to below on the 15th then sell

signal has been generated and on the other hand when MACD has

25





crossed zero line from below to above on 24th the buy signal has been

generated. This is all about the generating signals using MACD.

Let us see that how RSI is used in generating the signals which help in

buying and selling stocks.In the above graph we can see that when RSI has crossed the 70

line from above to below on 9th and then selling opportunity exist and

sell signal has been generated. When we go ahead in the same month

on 17th then buying opportunity exist and buy signal is generated. On

the 25th also RSI line cross from above to below so that at that time

also sell signal is generated. Investors are advised to follow the signals

given by technical analyst and he can maximize the return following

the advice.

Now we are moving toward the return calculation on the basis of the

calculation done using MACD and RSI.

For more charts log on to www.icharts.in

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HOW BUY AND SELL SIGNALS WILL GENERATE THE

PROFIT:

In the very beginning itself, buying and selling generating

procedure has been explained but here issue is “how to generate

profit using these signals?”

So let us see that how these signals will generate the profit.

It is also important for the investor that when and how many

positions will be squared-off to earn the maximum return on the

stock held. So it is explained as follows:

First of all there is need to analyses the opportunity of

buying and selling will be converted in to the actual transaction

by the investor. Here it is assumed that all buy signals are

converted in to actual transaction and it will get squared off at

sell signal.

RELIANCE INDUSTRIES LTD.

DateClosePrice

Signal(MACD)

Signal(RSI)

P&L(MACD)

(%)P&L

(RSI) (%)

8-May-08 2667.25 Sell 12.07%

9-May-08 2528.4

12-May-08 2553.85

13-May-08 2501.1

14-May-08 2530.75 Buy

15-May-08 2622.95

16-May-08 2635.7 Sell 3.98%

20-May-08 2602.9521-May-08 2667.7 Sell

27





22-May-08 2626.05

23-May-08 2556.2

26-May-08 2515.6

27-May-08 2495.1 Buy

28-May-08 2522.5

29-May-08 2462.7

30-May-08 2403.5

2-Jun-08 2358.8 Buy

3-Jun-08 2406.65

4-Jun-08 2307 Sell -2.245%

Here in the above table, there are many buy and sell signals

has been generated. So in this table we can see that on the 8th of

May there is one sell signal at which buy position has been

squared off by the investor (MACD). So the profit/loss (12.07%)

according to that signal has been shown in the MACD P&L

column.

But when it came to the RSI Signal column there are one

buy signal and one sell signal is shown. But thereafter one sell

signal and after buy signal is shown. So in this case buy position

will be squared off at the sell signal, but sell signal will not be

considered because there is no stock to sell as all the buy

position has been squared off when sell signal arrived.

Now, let us see that what happens to multiple buy

signals and only alone sell signal.

Date

Close

Price

Signal(MACD

)

Signal

(RSI)

P&L(MACD)

(%)

P&L(RSI)

(%)29-Sep-08 1932.85 Buy

30-Sep-08 1949.35

1-Oct-08 1906.7

3-Oct-08 1761.45

6-Oct-08 1641.6

7-Oct-08 1674.65

8-Oct-08 1648.55

10-Oct-08 1527.6

13-Oct-08 1571.4 Buy

14-Oct-08 1621.05

28





15-Oct-08 1520.2

16-Oct-08 1391.95

17-Oct-08 1306.05

20-Oct-08 1320.9 Buy

21-Oct-08 1394.95

22-Oct-08 1316.8

23-Oct-08 1217.65

24-Oct-08 1019.5

27-Oct-08 1077 Buy

28-Oct-08 1153

29-Oct-08 1201.75

31-Oct-08 1375.45 Sell -7.28%

Now in this case, (RSI column) all the buy signals on the

dates (29-Sep-08, 13-Oct-08, 20-Oct-08, 27-Oct-08) has been squared

off on the selling opportunity existed on 31-Oct-08.in this method all

the buy signals has been averaged and the price obtaind is the

average of all the buy signals. So this strategy has been adopted in all

the companies selected for the technical analysis. Above multiple buy

signals has been squared off at the sell signal generated thereafter. So

here loss has been generated which is -7.28 %( in the RSI P&L column).

Now in this section we will see that is it technical analysis really

helpful in generating more revenue compare to that of investing it once

and forget it for a long time. In short long term investment generates

more profit or this frequent buy sell of the security will yield more profit

to investor. So here comparison has been made between the active

trading strategies (frequent Buy-sell) or passive trading strategy

(invests for a long period and do not sell in between).

For more information about the tables explained above. Detailed

analysis has been found in the APPENDIX.

29





Technical analysis has been done on the basis of this strategy

has generated the following result:

Reliance Active Trading Passive Trading

Particulars MACD RSI total MACD RSI

Buy signals 9 20 29 1 1

Sell signals 8 17 25 1 1

Total number of

signal

17 37 54 2 2

Number of times profit 2 8 10 1 1

Number of times loss 5 3 8 0 0

Average profit 10.05% 10.68% 20.73% 46.55% 38.80%

Average loss 2.03% 3.25% 0.0528

3

0 0

Total profit 9.95% 75.69% 85.64% 46.55% 38.80%

ONGC: Active Trading Passive Trading

Particulars MACD RSI Total MACD RSI



Total number of

signal

19 31 50 2 2


30






Average profit 10.41% 8.38% 18.79

%

35.46% 6.58%

Average loss 4.86% 3.40% 8.26% 0 0

Total profit 6.93% 88.78% 95.71

%

35.46% 6.58%

NTPC Active Trading Passive Trading




Total number of

signal

23 37 60 2 2



Average profit 5.55% 15.58% 21.13% 7.65% 3.02%

Average loss 2.37% 2.74% 5.11% 0 0

Total profit 7.98% 106% 114.30

%

7.65% 3.02%

NMDC Active Trading Passive Trading




Total number of

signal

16 25 41 2 2



Average profit 28.21% 13.01% 41.22% 44.45% 29.04%

Average loss 8.94% 111.44% 120.38% 0 0

Total profit 11.74% -183.85% -

172.11%

44.45% 29.04%

31





BHEL Active Trading Passive Trading

Particulars MACD RSI total MACD RSI



Total number of

signal

15 36 51 2 2



Average profit 5.35% 6.94% 12.29

%

27.96% 9.59%

Average loss 4.96% 12.55% 17.51

%

0 0

Total profit 4.18% 49.91% 54.09

%

27.96% 9.59%

Where,

Average profit = gross profit/number of times profit generated

Average loss = loss generated/ number of times loss generated

Total profit = gross profit -- total loss generated

32





Findings:

I found that 166 RSI signals and 90 MACD signals have beengenerated in a year and total are 256 signals.

NTPC has 23 MACD signals and Reliance & NTPC has 37 RSI

signals generated in a year which are highest.

NTPC has highest total number of signal generated that is 60

signals in a year.

ONGC has reasonable profit margin in both MACD and RSI i.e.

6.93% and 88.78% respectively where as NTPC has 7.98% &106% respectively.

NMDC has more average profit for both MACD and RSI 28.21%

&13.01% respectively.

All companies have high profit for MACD except NTPC.

NTPC has lowest average loss for MACD and RSI i.e. 2.37%

&2.74% respectively.

NMDC has highest profit in MACD i.e. 44.45% and reliance has

highest profit in RSI i.e. 44.45%

NMDC is making losses in using RSI i.e. -183.85%

Active trading strategy is more useful and gives more return

compare to passive trading strategy.

33





RECOMMENDATIONS:

It is recommended that one should use RSI because it is more

effective then MACD as it has more accuracy and generate more

signals then MACD and provide more clear guidelines for entry

and exit from the market.

One should go for active trading strategy because it is more

profitable then passive trading strategy.

34





BIBLIOGRAPHY:

Books:

Kevin S. (2007). “Portfolio Management”. Second edition,

Prentice-Hall of India Pvt. Ltd.

Donald R.C., & Pamela S.S.(2003). Business Research Methods,

Eighth Edition, Tata McGraw-Hill Edition.

Sites:

www.investopedia.com www.icharts.in

www.nseindia.com

www.Moneycontrol.com

35



http://www.icharts.in/

http://www.nseindia.com/



http://www.icharts.in/

http://www.nseindia.com/







8-May-08 1761.5

9-May-08 1724.8

12-May-08 1745.75

13-May-08 1734.5

14-May-08 1744.6 buy

15-May-08 1801.4

16-May-08 1798.85

20-May-08 1735.7

21-May-08 1771.6

22-May-08 1748.45

23-May-08 1745.1

26-May-08 1655.65

27-May-08 1659.7

28-May-08 1612.5

29-May-08 1597.65

30-May-08 1663.05 buy

2-Jun-08 1594.15 sell

3-Jun-08 1550.15

4-Jun-08 1475.05

5-Jun-08 1444.65

6-Jun-08 1423.3

9-Jun-08 1375.25

10-Jun-08 1383.5 buy

11-Jun-08 1481.85

12-Jun-08 1510.213-Jun-08 1557.55

16-Jun-08 1526.8

17-Jun-08 1540.4

18-Jun-08 1501.4

19-Jun-08 1423.85

20-Jun-08 1405.15

23-Jun-08 1359.65 buy

24-Jun-08 1398.4

25-Jun-08 1436.2

26-Jun-08 1436.7527-Jun-08 1381.25

30-Jun-08 1379.45

1-Jul-08 1356.1 Buy

2-Jul-08 1423

3-Jul-08 1402.05

4-Jul-08 1500.2

7-Jul-08 1467.9

8-Jul-08 1498.7

9-Jul-08 1572.05

10-Jul-08 1563.4 Sell 1.64%11-Jul-08 1521.6

37





14-Jul-08 1467.25

15-Jul-08 1368.85

16-Jul-08 1378.6 Buy

17-Jul-08 1452.2

18-Jul-08 1531.8 Sell 11.11%

21-Jul-08 1506.3

22-Jul-08 1597.4

23-Jul-08 1773.35

24-Jul-08 1727.6 Sell

25-Jul-08 1654

28-Jul-08 1649.7

29-Jul-08 1593.8

30-Jul-08 1667.15

31-Jul-08 1682

1-Aug-08 1754.9

4-Aug-08 1716.25 Buy

5-Aug-08 1769.9

6-Aug-08 1828.45 Sell

7-Aug-08 1771.8

8-Aug-08 1783.35

11-Aug-08 1830.95 Sell

12-Aug-08 1808.45

13-Aug-08 1786.4

14-Aug-08 1707.8 Sell 10.04%

18-Aug-08 1693.8519-Aug-08 1677.95 Buy

20-Aug-08 1734.6

21-Aug-08 1671

22-Aug-08 1716.4

25-Aug-08 1688.85

26-Aug-08 1721.9

27-Aug-08 1682.05

28-Aug-08 1629.55 Buy

29-Aug-08 1707.85

1-Sep-08 1722.352-Sep-08 1785.9

4-Sep-08 1766.2

5-Sep-08 1732.25

8-Sep-08 1791.7 Sell 6.78%

9-Sep-08 1750.75

10-Sep-08 1711.8

11-Sep-08 1665.3 Sell

12-Sep-08 1698.5

15-Sep-08 1627.6

16-Sep-08 164617-Sep-08 1604.25 Buy

38





18-Sep-08 1613.55

19-Sep-08 1708.85 Sell 4.87%

22-Sep-08 1685.85

23-Sep-08 1626.05

24-Sep-08 1663.8

25-Sep-08 1633.9

26-Sep-08 1550.55

29-Sep-08 1512.6 Buy

30-Sep-08 1591.25

1-Oct-08 1591.55

3-Oct-08 1569.75

6-Oct-08 1448.6

7-Oct-08 1496.85

8-Oct-08 1468.75

10-Oct-08 1350.5 Buy

13-Oct-08 1499.8

14-Oct-08 1495.65

15-Oct-08 1397.55

16-Oct-08 1312.7

17-Oct-08 1191.55

20-Oct-08 1097.75

21-Oct-08 1142.15

22-Oct-08 1138.25 Buy

23-Oct-08 1172.55

24-Oct-08 1099.8527-Oct-08 1079.85

28-Oct-08 1146.45 Buy

29-Oct-08 1176.35

31-Oct-08 1291.7

3-Nov-08 1341.7 Buy

4-Nov-08 1412.6

5-Nov-08 1378

6-Nov-08 1389.2

7-Nov-08 1402.85 Sell 12.55%

10-Nov-08 1515.9511-Nov-08 1369.3

12-Nov-08 1336

14-Nov-08 1280.5 Sell -4.56%

17-Nov-08 1292.15

18-Nov-08 1267.95

19-Nov-08 1230.85

20-Nov-08 1191.5

21-Nov-08 1279.3 Buy

24-Nov-08 1302

25-Nov-08 1283.626-Nov-08 1298.1

39





28-Nov-08 1359.6

1-Dec-08 1270.1

2-Dec-08 1274.75

3-Dec-08 1268.85 Buy

4-Dec-08 1357.7

5-Dec-08 1338.05

8-Dec-08 1361.5

10-Dec-08 1413.35

11-Dec-08 1374.15 Sell 6.90%

12-Dec-08 1362.5

15-Dec-08 1374.55

16-Dec-08 1403.45 Sell

17-Dec-08 1337.35

18-Dec-08 1433.85

19-Dec-08 1442.2

22-Dec-08 1401.25

23-Dec-08 1364.35

24-Dec-08 1351.7

26-Dec-08 1300.6 Buy

29-Dec-08 1346.25

30-Dec-08 1376.15

31-Dec-08 1362.6

1-Jan-09 1402.2 Buy

2-Jan-09 1412.05

5-Jan-09 1438.46-Jan-09 1467.25

7-Jan-09 1441.8 Sell 9.79%

9-Jan-09 1417.2

12-Jan-09 1344.35 Sell 0.66%

13-Jan-09 1358.05 Buy

14-Jan-09 1385.95

15-Jan-09 1350.9

16-Jan-09 1403.85

19-Jan-09 1417.05

20-Jan-09 1401.721-Jan-09 1349 Buy

22-Jan-09 1368.45

23-Jan-09 1320.75 Buy

27-Jan-09 1378.75

28-Jan-09 1398.45

29-Jan-09 1358.25

30-Jan-09 1320.8

2-Feb-09 1306.4 Buy

3-Feb-09 1341.35

4-Feb-09 1357.255-Feb-09 1346.85

40







NMDC

DateClosePrice

Signal(MACD) Signal(RSI)

P&L(MACD)(%)

P&L(RSI) (%)

1-Apr-08 10941.4 sell -7.87%

2-Apr-08 10814.7

3-Apr-08 10354.1

4-Apr-08 10188

7-Apr-08 11206.8

8-Apr-08 12327.59-Apr-08 13560.25

10-Apr-08 1423.85

11-Apr-08 1495.05

15-Apr-08 1420.3 sell

16-Apr-08 1349.3

17-Apr-08 1302.9

21-Apr-08 1310.65

22-Apr-08 1255.65

23-Apr-08 1211.45 buy24-Apr-08 1226.6

25-Apr-08 1287.95

28-Apr-08 1352.35

29-Apr-08 1346.45

30-Apr-08 1413.8

2-May-08 1484.5

5-May-08 1529.3

6-May-08 1476.65

7-May-08 1418.9 sell

8-May-08 1489.859-May-08 1441.95

12-May-08 1481.75

13-May-08 1458.65

14-May-08 1487.4

15-May-08 1486.55

16-May-08 1448.65

20-May-08 1405.7 buy

21-May-08 492

22-May-08 512.0523-May-08 486.45

42





26-May-08 462.15

27-May-08 439.05

28-May-08 428.45

29-May-08 430.2

30-May-08 413.32-Jun-08 392.65 sell

3-Jun-08 379.6

4-Jun-08 360.65

5-Jun-08 359.55

6-Jun-08 373.25 buy

9-Jun-08 379.75

10-Jun-08 378

11-Jun-08 380.95

12-Jun-08 381.9

13-Jun-08 375.2

16-Jun-08 379.35

17-Jun-08 377.75

18-Jun-08 380.55

19-Jun-08 372.15

20-Jun-08 353.6

23-Jun-08 335.95

24-Jun-08 319.15

25-Jun-08 305.95

26-Jun-08 302.127-Jun-08 287

30-Jun-08 272.65

1-Jul-08 259.05 Sell

2-Jul-08 255.85

3-Jul-08 243.1

4-Jul-08 230.95

7-Jul-08 219.4 Buy

8-Jul-08 230.4

9-Jul-08 241.95

10-Jul-08 251.7 Sell -218.81

11-Jul-08 241.4

14-Jul-08 250.9

15-Jul-08 238.35

16-Jul-08 226.45

17-Jul-08 218.8 Buy

18-Jul-08 229.75

21-Jul-08 223.2

22-Jul-08 234.2

23-Jul-08 245.9524-Jul-08 258.25

43





25-Jul-08 271.2 Buy

28-Jul-08 284.8

29-Jul-08 299.05

30-Jul-08 314

31-Jul-08 329.71-Aug-08 346.2

4-Aug-08 362.95

5-Aug-08 362.1

6-Aug-08 344 Sell 21.16

7-Aug-08 327.45 Buy

8-Aug-08 343.85

11-Aug-08 361.05 Buy

12-Aug-08 359.95 Sell 24.12

13-Aug-08 359.1

14-Aug-08 352

18-Aug-08 346.45

19-Aug-08 332.95 Sell Buy -8.44

20-Aug-08 349.6

21-Aug-08 332.85

22-Aug-08 326.6

25-Aug-08 313.75

26-Aug-08 307.9

27-Aug-08 303.45

28-Aug-08 289.5 Buy29-Aug-08 304

1-Sep-08 310.85

2-Sep-08 312.05

4-Sep-08 313.35

5-Sep-08 298.35

8-Sep-08 296.45

9-Sep-08 298.2

10-Sep-08 284.45

11-Sep-08 282.4

12-Sep-08 279.2

15-Sep-08 252.8

16-Sep-08 231.5

17-Sep-08 222.95

18-Sep-08 206.5

19-Sep-08 216.85 Buy

22-Sep-08 227.7

23-Sep-08 238.25

24-Sep-08 238

25-Sep-08 242.25 Sell -15.4926-Sep-08 233.4

44





29-Sep-08 221.75

30-Sep-08 215.5

1-Oct-08 220.55

3-Oct-08 216.25

6-Oct-08 205.457-Oct-08 195.7

8-Oct-08 190.3

10-Oct-08 183

13-Oct-08 184.05 Buy

14-Oct-08 191.05

15-Oct-08 184.5

16-Oct-08 184

17-Oct-08 175

20-Oct-08 169.55

21-Oct-08 173.05

22-Oct-08 165.55

23-Oct-08 157.4

24-Oct-08 149.6

27-Oct-08 142.15

28-Oct-08 144.95

29-Oct-08 142.5

31-Oct-08 143.7

3-Nov-08 150.9 Buy

4-Nov-08 158.455-Nov-08 158.7

6-Nov-08 153.2

7-Nov-08 155.6

10-Nov-08 180.55

11-Nov-08 185.45

12-Nov-08 176.85 Sell -4.07

14-Nov-08 173

17-Nov-08 159.55

18-Nov-08 150.4

19-Nov-08 150.5

20-Nov-08 141.3

21-Nov-08 142.9 Sell -5.60

24-Nov-08 140.6

25-Nov-08 139.45

26-Nov-08 129.65

28-Nov-08 126.85

1-Dec-08 128.5

2-Dec-08 123.85 Buy

3-Dec-08 133.34-Dec-08 137.5

45





5-Dec-08 131.9

8-Dec-08 138.05

10-Dec-08 139.25

11-Dec-08 141

12-Dec-08 141.815-Dec-08 157.2

16-Dec-08 181.2

17-Dec-08 170.05 Sell

18-Dec-08 174

19-Dec-08 171.85

22-Dec-08 167.65

23-Dec-08 162.75

24-Dec-08 163.9

26-Dec-08 156.35 Buy

29-Dec-08 162.05

30-Dec-08 165.5

31-Dec-08 165.75

1-Jan-09 191.3 Sell 35.26

2-Jan-09 188.75

5-Jan-09 187.75

6-Jan-09 184.65

7-Jan-09 160.15

9-Jan-09 147.95

12-Jan-09 14713-Jan-09 145.45

14-Jan-09 149.35

15-Jan-09 145.75 Buy

16-Jan-09 151.2

19-Jan-09 153.3

20-Jan-09 150.75

21-Jan-09 148.05

22-Jan-09 147.15

23-Jan-09 145.6 Buy

27-Jan-09 147.45

28-Jan-09 170.4

29-Jan-09 165.8

30-Jan-09 166.3

2-Feb-09 164.7

3-Feb-09 164.1

4-Feb-09 165.1

5-Feb-09 159.95

6-Feb-09 159.2 Buy

9-Feb-09 171.6 Buy10-Feb-09 170.3 Sell 10.91

46





11-Feb-09 168.85

12-Feb-09 167.8

13-Feb-09 168.4

16-Feb-09 166

17-Feb-09 161.7518-Feb-09 159.95 Sell -7.28

19-Feb-09 158.65

20-Feb-09 152.65

24-Feb-09 152.85

25-Feb-09 150.05

26-Feb-09 147.65 Buy

27-Feb-09 151.7

2-Mar-09 150.65 Sell

3-Mar-09 145.6

4-Mar-09 146.2

5-Mar-09 146.8

6-Mar-09 143.4

9-Mar-09 142.45

12-Mar-09 143.3

13-Mar-09 143.5 Buy

16-Mar-09 150

17-Mar-09 150.1

18-Mar-09 152.4

19-Mar-09 151.65 Sell 4.0120-Mar-09 150.8

23-Mar-09 162.5 Buy

24-Mar-09 155.65 Sell

25-Mar-09 156.65

26-Mar-09 155.1

27-Mar-09 159.85

30-Mar-09 155.65

31-Mar-09 155.8

NTPC

Date Close PriceSignal(MACD)

Signal(RSI)

P&L(MACD)%

P&L(RSI)%

1-Apr-08 195.15 Sell 1.05%

2-Apr-08 193.83-Apr-08 193.95

47







12-Jun-08 163.15

13-Jun-08 161.25

16-Jun-08 166.05

17-Jun-08 168.2 sell

18-Jun-08 167.3

19-Jun-08 165.8

20-Jun-08 162.9

23-Jun-08 162.15

24-Jun-08 155.6 sell -6.68%

25-Jun-08 156.75

26-Jun-08 155.2

27-Jun-08 150.8

30-Jun-08 151.9

1-Jul-08 153.15 Buy

2-Jul-08 158.93-Jul-08 152.55

4-Jul-08 153.9

7-Jul-08 155.6

8-Jul-08 161.3

9-Jul-08 168.45

10-Jul-08 166.95

11-Jul-08 162 Sell

16-Jul-08 162.35

17-Jul-08 165.3

18-Jul-08 173.821-Jul-08 181.5

22-Jul-08 184.95

23-Jul-08 190.45

24-Jul-08 185.55 Sell

25-Jul-08 187.7

28-Jul-08 184.75

29-Jul-08 178.5

30-Jul-08 170.9

31-Jul-08 170.35

1-Aug-08 176.8 Buy

4-Aug-08 174.75

5-Aug-08 182.8

6-Aug-08 180.6

7-Aug-08 183.6

8-Aug-08 184.95

11-Aug-08 185.8

12-Aug-08 185.15

13-Aug-08 186.4 Sell

14-Aug-08 181.518-Aug-08 180.35 Buy

49





19-Aug-08 181.75

20-Aug-08 183.9

21-Aug-08 173.5

22-Aug-08 170.55 Sell 3.27%

25-Aug-08 171

26-Aug-08 172.1 Buy

27-Aug-08 171.3

28-Aug-08 169.7 Buy

29-Aug-08 174.9

1-Sep-08 173.2 Buy

2-Sep-08 177.15

4-Sep-08 174.1

5-Sep-08 173.5

8-Sep-08 181.55

9-Sep-08 179.5 Sell 3.04%10-Sep-08 178.1

11-Sep-08 173.25

12-Sep-08 173.95

15-Sep-08 170.4

16-Sep-08 170.4 Sell -1.64%

17-Sep-08 169.1 Buy

18-Sep-08 174.05 Buy

19-Sep-08 182.95

22-Sep-08 181.75 Sell 6.96%

23-Sep-08 179.5524-Sep-08 177.95

25-Sep-08 179.05

26-Sep-08 174.35

29-Sep-08 166.25 Sell Buy -4.69%

30-Sep-08 171.9

1-Oct-08 173.95

3-Oct-08 171.85

6-Oct-08 168.45

7-Oct-08 176.45

8-Oct-08 175.75

10-Oct-08 165.25 Buy

14-Oct-08 174.7

15-Oct-08 167.3

16-Oct-08 165.9

17-Oct-08 150.25

20-Oct-08 151.5

21-Oct-08 152.45

22-Oct-08 144.3

23-Oct-08 143.224-Oct-08 130.45

50





27-Oct-08 125.75

28-Oct-08 132.55 Buy

29-Oct-08 134

31-Oct-08 141.1

3-Nov-08 150.95

4-Nov-08 151.9

5-Nov-08 147.5 Sell

6-Nov-08 144.4 Buy

7-Nov-08 151.4 Buy

10-Nov-08 162.85 Sell 6.60%

11-Nov-08 151.05

12-Nov-08 150.2

14-Nov-08 149.35

17-Nov-08 150.65 Sell -0.27%

18-Nov-08 139.319-Nov-08 136

20-Nov-08 138.55 Buy

21-Nov-08 150.55

24-Nov-08 153.5

25-Nov-08 153.9 Buy

26-Nov-08 164.5

28-Nov-08 159.45 Sell 13.11%

1-Dec-08 156.45

2-Dec-08 160.15

3-Dec-08 158.954-Dec-08 165.05 Sell

8-Dec-08 166.25

10-Dec-08 168.9

11-Dec-08 167.1 Sell

12-Dec-08 164.9

15-Dec-08 168.55

16-Dec-08 174.65

17-Dec-08 173.8

18-Dec-08 183

19-Dec-08 182.2

22-Dec-08 181.7 Sell

23-Dec-08 179.7

24-Dec-08 177.9

26-Dec-08 176.8

29-Dec-08 177.05

30-Dec-08 181.55 Sell

31-Dec-08 180.6

1-Jan-09 182.5

2-Jan-09 184.155-Jan-09 180.8 Sell 14.88%

51





6-Jan-09 177.05

7-Jan-09 171.45

9-Jan-09 178.25 Buy

12-Jan-09 170.9

13-Jan-09 168 Buy

14-Jan-09 171.6

15-Jan-09 166.7

16-Jan-09 179.85

19-Jan-09 178.4

20-Jan-09 185.95 Sell 6.89%

21-Jan-09 179.95

22-Jan-09 178.55

23-Jan-09 179.85

27-Jan-09 190.1 Buy

28-Jan-09 191.2529-Jan-09 190.25

30-Jan-09 189.65 Sell

2-Feb-09 181.2 Sell -4.91%

3-Feb-09 176.9

4-Feb-09 176.85

5-Feb-09 176.85 Buy

6-Feb-09 180.35

9-Feb-09 182.95

10-Feb-09 180.3

11-Feb-09 180.4512-Feb-09 179.85

13-Feb-09 182.95

16-Feb-09 178.05

17-Feb-09 174.15 Buy

18-Feb-09 176.4

19-Feb-09 179.1

20-Feb-09 177.75

24-Feb-09 178.2

25-Feb-09 180.2

26-Feb-09 184.75 Buy

27-Feb-09 185

2-Mar-09 178.85

3-Mar-09 178.8

4-Mar-09 179.85 Sell -2.72%

5-Mar-09 172.8 Buy

6-Mar-09 177.65

9-Mar-09 176.65

12-Mar-09 174.05

13-Mar-09 170.2516-Mar-09 171.15 Buy

52







17-Apr-08 1017.3

21-Apr-08 1031.5

22-Apr-08 1051.95

23-Apr-08 1043.6 sell

24-Apr-08 1032.4

25-Apr-08 1055.15 sell28-Apr-08 1048.5

29-Apr-08 1051.65

30-Apr-08 1033.05

2-May-08 1039.95

5-May-08 1039.85

6-May-08 1043.5

7-May-08 1038.7

8-May-08 1029.95 sell 0.38%

9-May-08 1031.6

12-May-08 1029.513-May-08 1000.3

14-May-08 939.3

15-May-08 951.35

20-May-08 936.8

21-May-08 941.55

22-May-08 926.1

23-May-08 900.15

26-May-08 894.9

27-May-08 884.45

28-May-08 873.85

29-May-08 853.25

30-May-08 865.2 Buy

2-Jun-08 833.1

3-Jun-08 839.3 Buy

4-Jun-08 886.2

5-Jun-08 957.1

6-Jun-08 938.95 sell 7.85%

9-Jun-08 879.95

10-Jun-08 829.55

11-Jun-08 831.4

12-Jun-08 832.4 Buy13-Jun-08 841.95

16-Jun-08 845.05

17-Jun-08 883.25

18-Jun-08 881.95 Sell 5.62%

19-Jun-08 855.7

20-Jun-08 867.65

23-Jun-08 884.8

24-Jun-08 853.85

25-Jun-08 865.4

26-Jun-08 871.7527-Jun-08 832.5

54





30-Jun-08 815.05 sell -2.98%

1-Jul-08 793.8 Buy

2-Jul-08 859.35

3-Jul-08 859.4

4-Jul-08 876.5

7-Jul-08 882.558-Jul-08 867.7

9-Jul-08 877.3

10-Jul-08 882.7 Sell

11-Jul-08 849.5

16-Jul-08 864.1

17-Jul-08 902.55

18-Jul-08 944

21-Jul-08 955.25

22-Jul-08 964.15

23-Jul-08 994.5524-Jul-08 1027.05 Sell

25-Jul-08 983.6

28-Jul-08 1011.6

29-Jul-08 983.45

30-Jul-08 990.5

31-Jul-08 996.25

1-Aug-08 997.55 Sell 20.43%

4-Aug-08 982.15

5-Aug-08 1003.05

6-Aug-08 1016.9

7-Aug-08 1024.35

8-Aug-08 1063.9

11-Aug-08 1105.4

12-Aug-08 1088.3 Sell

13-Aug-08 1083.9

14-Aug-08 1066.3

18-Aug-08 1074.4

19-Aug-08 1063.15

20-Aug-08 1035.7

21-Aug-08 1010.3

22-Aug-08 1019.225-Aug-08 1014.55

26-Aug-08 1015.9

27-Aug-08 1006.65

28-Aug-08 999.25 Buy

29-Aug-08 1023.25

1-Sep-08 1031.15 Buy

2-Sep-08 1102.45

4-Sep-08 1068.35

5-Sep-08 1071.95

8-Sep-08 1099.79-Sep-08 1102.4 Sell 9.36%

55







24-Nov-08 678.5

25-Nov-08 685.85

26-Nov-08 700.25 Sell 7.02%

28-Nov-08 693.8

1-Dec-08 681

2-Dec-08 661.853-Dec-08 651.75

4-Dec-08 674.5

5-Dec-08 655.45

10-Dec-08 677

11-Dec-08 664.95

12-Dec-08 646.35 Buy

15-Dec-08 673.85

16-Dec-08 713.35 Buy

17-Dec-08 717.6

18-Dec-08 732.4 Sell 11.74%19-Dec-08 710.95

22-Dec-08 710.65

23-Dec-08 688.6

24-Dec-08 670.65

26-Dec-08 642.95 Sell -10.95%

29-Dec-08 656.25 Buy

30-Dec-08 671.9

31-Dec-08 667.1

1-Jan-09 684.8

2-Jan-09 680.3 Buy

5-Jan-09 725.25

6-Jan-09 718.9 Sell 8.71%

7-Jan-09 690.6

9-Jan-09 669.1

12-Jan-09 653.5 Sell -4.10%

13-Jan-09 630.6

14-Jan-09 648.6

15-Jan-09 625.35 Buy

16-Jan-09 648.7

19-Jan-09 670.25

20-Jan-09 664.1521-Jan-09 650.05

22-Jan-09 649.5

23-Jan-09 646.5

27-Jan-09 621.15 Buy

28-Jan-09 641.25

29-Jan-09 639.1

30-Jan-09 654.95

2-Feb-09 639.5 Buy

3-Feb-09 651.4

4-Feb-09 665.55-Feb-09 663.6

57





6-Feb-09 683.25

9-Feb-09 724.4

10-Feb-09 717.45

11-Feb-09 706.75 Sell 11.82%

12-Feb-09 693.6

13-Feb-09 704.816-Feb-09 687.5

17-Feb-09 677.4

18-Feb-09 670.8 Buy

19-Feb-09 679.85

20-Feb-09 672.9

24-Feb-09 679.8

25-Feb-09 700.35

26-Feb-09 719.75 Sell 6.80%

27-Feb-09 691

2-Mar-09 664.453-Mar-09 648.45

4-Mar-09 663.85

5-Mar-09 650.05

6-Mar-09 673.35

9-Mar-09 666.4

12-Mar-09 682.55

13-Mar-09 706.4

16-Mar-09 715.6

17-Mar-09 715.9

18-Mar-09 723.85

19-Mar-09 731.2

20-Mar-09 755

23-Mar-09 794.2

24-Mar-09 779.2 Sell

25-Mar-09 763.7

26-Mar-09 807.6

27-Mar-09 808.25 Sell

30-Mar-09 782.45

31-Mar-09 780.2RELIANCE

Date Close PriceSignal(MACD)

Signal(RSI)

P&L(MACD) (%)

P&L(RSI)(%)

1-Apr-08 2345.25 Buy

2-Apr-08 2343.55

3-Apr-08 2396.05

4-Apr-08 2321.15

7-Apr-08 2404.9

8-Apr-08 2381.75

9-Apr-08 2418.25

10-Apr-08 2468.65

11-Apr-08 2551.5515-Apr-08 2611.8

58





16-Apr-08 2642.5

17-Apr-08 2640.05

21-Apr-08 2643.6 sell

22-Apr-08 2607.35

23-Apr-08 2577.6

24-Apr-08 2582.6525-Apr-08 2624.5

28-Apr-08 2591.4

29-Apr-08 2659.95 Sell

30-Apr-08 2614.5

2-May-08 2674.75

5-May-08 2669.2

6-May-08 2650

7-May-08 2688.95

8-May-08 2667.25 Sell 12.07

9-May-08 2528.412-May-08 2553.85

13-May-08 2501.1

14-May-08 2530.75 Buy

15-May-08 2622.95

16-May-08 2635.7 Sell 3.98

20-May-08 2602.95

21-May-08 2667.7 Sell

22-May-08 2626.05

23-May-08 2556.2

26-May-08 2515.6

27-May-08 2495.1 Buy

28-May-08 2522.5

29-May-08 2462.7

30-May-08 2403.5

2-Jun-08 2358.8 Buy

3-Jun-08 2406.65

4-Jun-08 2307 Sell -2.245

5-Jun-08 2246.8

6-Jun-08 2238.5

9-Jun-08 2162.7

10-Jun-08 2197.75 Buy11-Jun-08 2261.4

12-Jun-08 2277.3

13-Jun-08 2270.4

16-Jun-08 2282.35

17-Jun-08 2332.9 Sell -0.58

18-Jun-08 2287.1

19-Jun-08 2248.15

20-Jun-08 2099.2

23-Jun-08 2025.7

24-Jun-08 2062.7 Buy25-Jun-08 2136

59





26-Jun-08 2239.55 Sell 7.90

27-Jun-08 2182.65

30-Jun-08 2095.15

1-Jul-08 2044.15 Buy

2-Jul-08 2144

3-Jul-08 2070.14-Jul-08 2097.9

7-Jul-08 2028.2

8-Jul-08 1979.45

9-Jul-08 2079.15

10-Jul-08 2046.65

11-Jul-08 2016.1

14-Jul-08 2043.45 Sell -0.03%

15-Jul-08 1977.4

16-Jul-08 1943.5 Buy

17-Jul-08 2018.5518-Jul-08 2113.2 Buy

21-Jul-08 2152.85

22-Jul-08 2152.15

23-Jul-08 2267.3

24-Jul-08 2308.05 Sell 15.79

25-Jul-08 2147.1

28-Jul-08 2179.9

29-Jul-08 2083.1

30-Jul-08 2165.5

31-Jul-08 2207.5

1-Aug-08 2297.6 Sell 8.03%

4-Aug-08 2242.4

5-Aug-08 2276.05

6-Aug-08 2298.6

7-Aug-08 2272.6

8-Aug-08 2251.8

11-Aug-08 2325.25 Buy

12-Aug-08 2347.25 Sell

13-Aug-08 2336.85

14-Aug-08 2276.7 Sell -2.13

18-Aug-08 2224.819-Aug-08 2219.6 Buy

20-Aug-08 2246.35

21-Aug-08 2212.65

22-Aug-08 2244.8

25-Aug-08 2232

26-Aug-08 2179.35

27-Aug-08 2148

28-Aug-08 2070.85

29-Aug-08 2136.2 Buy

1-Sep-08 2141.652-Sep-08 2212.75

60





4-Sep-08 2152.25

5-Sep-08 2080.9

8-Sep-08 2133.2

9-Sep-08 2142.55

10-Sep-08 2082.65

11-Sep-08 1997.412-Sep-08 1932.65

15-Sep-08 1886.95

16-Sep-08 1928.05

17-Sep-08 1876.65 Buy

18-Sep-08 1938.25

19-Sep-08 2055.1

22-Sep-08 2039.1 Sell -1.88

23-Sep-08 2006.45

24-Sep-08 2046.1

25-Sep-08 2025.726-Sep-08 1963.2

29-Sep-08 1932.85 Buy

30-Sep-08 1949.35

1-Oct-08 1906.7

3-Oct-08 1761.45

6-Oct-08 1641.6

7-Oct-08 1674.65

8-Oct-08 1648.55

10-Oct-08 1527.6

13-Oct-08 1571.4 Buy

14-Oct-08 1621.05

15-Oct-08 1520.2

16-Oct-08 1391.95

17-Oct-08 1306.05

20-Oct-08 1320.9 Buy

21-Oct-08 1394.95

22-Oct-08 1316.8

23-Oct-08 1217.65

24-Oct-08 1019.5

27-Oct-08 1077 Buy

28-Oct-08 115329-Oct-08 1201.75

31-Oct-08 1375.45 Sell -7.28

3-Nov-08 1441.7

4-Nov-08 1451.6 Sell

5-Nov-08 1269.05

6-Nov-08 1170.55

7-Nov-08 1220.75 Buy

10-Nov-08 1303.1

11-Nov-08 1207.7

12-Nov-08 1162.214-Nov-08 1146.75

61





17-Nov-08 1141.4

18-Nov-08 1139.95

19-Nov-08 1132.45

20-Nov-08 1056.05

21-Nov-08 1124.35

24-Nov-08 1144.8 Buy25-Nov-08 1071.8

26-Nov-08 1138.9

28-Nov-08 1134.45

1-Dec-08 1109.4

2-Dec-08 1073.95

3-Dec-08 1069.1

4-Dec-08 1159.1 Buy

5-Dec-08 1117.6

8-Dec-08 1118.55

10-Dec-08 1227.211-Dec-08 1259

12-Dec-08 1307.1

15-Dec-08 1340.55

16-Dec-08 1388.5

17-Dec-08 1351.4 Sell 12.48

18-Dec-08 1361

19-Dec-08 1351.3

22-Dec-08 1285.55

23-Dec-08 1259.75

24-Dec-08 1242

26-Dec-08 1210.15 Buy

29-Dec-08 1246.3

30-Dec-08 1250.5

31-Dec-08 1232.75

1-Jan-09 1254.65 Buy

2-Jan-09 1286.4

5-Jan-09 1365.85

6-Jan-09 1370.9 Sell 11.73

7-Jan-09 1200.75

9-Jan-09 1153.25 Sell -4.65

12-Jan-09 1097.913-Jan-09 1077.55 Buy

14-Jan-09 1179.75

15-Jan-09 1142.35

16-Jan-09 1217.35

19-Jan-09 1229.9 Sell 12.39

20-Jan-09 1183.65

21-Jan-09 1119.85 Buy

22-Jan-09 1136.3

23-Jan-09 1156.15

27-Jan-09 1225.9528-Jan-09 1274

62





29-Jan-09 1270.1

30-Jan-09 1323.6 Buy Sell 15.39

2-Feb-09 1280

3-Feb-09 1306.2

4-Feb-09 1307.5

5-Feb-09 1288.86-Feb-09 1344.85

9-Feb-09 1389.7

10-Feb-09 1401.95

11-Feb-09 1381.25 Sell

12-Feb-09 1351.55

13-Feb-09 1392.4

16-Feb-09 1320.2

17-Feb-09 1267.3 Buy

18-Feb-09 1295.15

19-Feb-09 1293.7520-Feb-09 1253.4 Sell -5.60

24-Feb-09 1253.25 Buy

25-Feb-09 1266.55

26-Feb-09 1290.8

27-Feb-09 1266.05

2-Mar-09 1225.65

3-Mar-09 1196.85

4-Mar-09 1211.1

5-Mar-09 1149.8

6-Mar-09 1169.9

9-Mar-09 1153.35 Buy

12-Mar-09 1202 Buy

13-Mar-09 1284.25

16-Mar-09 1327.6

17-Mar-09 1300.2 Sell 5.81

18-Mar-09 1331.4

19-Mar-09 1345.7

20-Mar-09 1339.2

23-Mar-09 1438.45

24-Mar-09 1452.45

25-Mar-09 1532.226-Mar-09 1565.5

27-Mar-09 1548.75 Sell

30-Mar-09 1516.45

31-Mar-09 1524.75

Documents

Trading Through Technical Analysis