SUMMER INTERNSHIP FINAL REPORT ON

“A STUDY ON FUNDAMENTAL AND

TECHNICAL ANALYSIS ON COMPANIES
IN MEDIA SECTOR IN INDIA”

BY

MEGHA CHATURVEDI
ENROLLMENT NO.: 21BSP3437

ADITYA BIRLA CAPITAL

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 Final Report for Summer Internship
ON

“A STUDY OF FUNDAMENTAL AND

TECHNICAL ANALYSIS ONCOMPANIES
IN MEDIA SECTOR IN INDIA”
BY

MEGHA CHATURVEDI
ENROLLMENT NO. 21BSP3437

ADITYA BIRLA CAPITAL

“A report submitted in partial fulfilment of the

requirements of PGPM Program of IBS Mumbai”

Submitted to:

Mr. Nikesh Ruparel Prof. Neha Sajnani

(Company Guide) (Faculty Guide)

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 AUTHORISATION

I have successfully completed the Project with Aditya Birla Sunlife at Mumbai. The
summer internship program was held for the period from 21 st Feb 2022 to 22nd May
2022.

I hereby declare to the best of my knowledge and ability that my work on the Summer
Project Title “A STUDY ON FUNDAMENTAL AND TECHNICAL ANALYSIS
OF COMPANIES IN MEDIA SECTOR IN INDIA” is a genuine research work
undertaken by me. It has not been published anywhere earlier and is prepared after
completion of Summer Internship Program with “Aditya Birla Sunlife Insurance”.

This project work is submitted in the partial fulfilment of the requirements

for the award of the certificate of Post-Graduate Programme in
Management (PGPM).

Date: 22nd May 2022

Name: Megha Chaturvedi
Place: Mumbai.
Enrolment No.: 21BSP3437

Mr. Nikesh Ruparel Prof. Neha Sajnani

(Company Guide) (Faculty Guide)

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 Acknowledgement

I would like to take this opportunity to extend my gratitude to Aditya

Birla Capital for offering me a perfect stage to earn experience and
exposure in the fieldof Finance. I would also like to express my sincere
emotions to all who have helpedme in this course and will continue to
do so in the future for the project titled “Technical Analysis on
Companies in Media Sector in India”.

Bearing in mind previous I am using this opportunity to express my

deepest gratitude and special thanks to Executive Assistant Partner
(EAP) of the company Mr. Nikesh Ruparel who in spite of being
extraordinarily busy with his duties, took time out to hear, guide and
keep me on the correct path and allowing me to carry out my project at
their esteemedorganization and extending during the training.

I also thank Prof. Neha Sajnani, my faculty guide, who inspired me by

her discussions and showed me the right course to pursue. I also thank all
people in the workplace for their constant support and help in
accomplishing the objectivesof the project till date. There are many who
I may have left out in the acknowledgement, but whose co-operation no
doubt went a long way in the project completion. Hope to continue
cooperation with all of you in the future.

Megha Chaturvedi
21BSP3437
Place: Mumbai
Date: 22nd May 2022

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 EXECUTIVE SUMMARY

Name: Megha Chaturvedi Enrollment No: 21BSP3437

Specialization: Finance IBS Campus: IBS Mumbai

Email ID: [email protected]

Organization: Aditya Birla Sun Life Insurance is a company that comes under the
insurance sector and is primarily into providing life insurance policies. It has its head office
in Mumbai and is a part of the US$41 billion Aditya Birla Group.

Title of Project: A Study of Fundamental and Technical Analysis of Media Sector

Objective:
 To find whether the Media Sector stocks are worth investing or not using
fundamental and technical analysis.
 To get an overview of the Indian economy.
 To know more about the current status of Indian Media sector & the impact of
Reliance Jio on the companies in the sector.

Methodology:
Fundamental Analysis was carried out using the opening and closing price of the stocks on
daily basis to calculate Index and NAV. Technical analysis was carried out by live trading,
by testing the oscillators and strategies on the charts to test the profitability or the win/loss
ratio.

Conclusion:

 India Internet users are expected to reach 900 million by 2025,from 622 million
internet users in 2020,increasing at a CAGR of 45% until 2025.
 The advertising-based video on demand (AVoD) segment is expected to rise at a
CAGR of 24% to reach US$2.6 BILLION BY 2025.
 TV is expected to remain the largest segment and likely to post a CAGR of 7% to
RS.847 billion by 2023.
The rapid growth of OTT channels, increased emphasis on animated intellectual
property(IP) content and larger investments in VFX by studios has provided
animation and VFX by studios has provided animation and VFX studios with
opportunities in both domestic and international markets.

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 Table of Content

Sr. Topic Page

No. No.
1. Abstract 7
2. About Aditya Birla Capital
2.1 Introduction 8
2.2 Vision 9
2.3 Mission 9

3. Introduction of the project

3.1 Objective 10
3.2 Data Source 10
3.3 Limitations 11
3.4 Methodology 11

4. Fundamental Analysis 12
4.1 Economic Analysis 13-15
4.2 Industry Analysis 16-21
4.3 Company Analysis
4.3.1 Qualitative Analysis 22-27
4.3.2 Quantitative Analysis 28-36
5. Technical Analysis 37
5.1 Chart 38
5.2 Trendline 39-40
5.3 Support and Resistance 41-42
5.4 Chart Pattern
A) Long Term 43-47
B) Medium-Term 48-51
C) Short Term 52-54
6 Back testing of Indicators 55
7 Project on Derivative 56-59
8 Overall Learnings 60
9 References 61

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 1. Abstract

This project titled as “A study on Technical Analysis of companies in Media sector in

India” focuses on analysis of stock market i.e., the stocks of the companies in the Media
sector in India. This study mainly focuses on the changing trends in the long and short term in
the Media sector.
Secondary data are gathered from the websites such as tradingview.com, moneycontrol.com
and others for gathering charts for the technical analysis. Charts are used for analyzing the long
term, medium term and short-term trends, to calculate index and also for trading purpose. The
analysis is done on Media Sector companies.
The findings of this study were arrived based on the analysis conducted. Some of the major
findings of this study are based on the stock market, past years trends, index, etc. of Media
sector. This study is to analyze the Media stock market.
This study will conclude the performance of Media Sector Company’s stock market through
technical analysis and the growth prospects in future years to come.

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 2 ABOUT ADITYA BIRLA CAPITAL

2.1 INTRODUCTION

Aditya Birla Capital Limited (ABCL) is the holding company for the financial services
businesses of the Aditya Birla Group.
ABCL’s subsidiaries have a strong presence across Protecting, Investing and Financing
solutions, ABCL is a universal financial solutions group catering to diverse needs of its
customers across their life stages. Powered by more than 27,000 employees, the subsidiaries
of ABCL have a nationwide reach with 935+ branches and more than 2,00,000 agents /
channel partners and several bank partners.
As of September 30th, 2021, Aditya Birla Capital Limited manages aggregate assets under
management over Rs. 3,703 billion, has a consolidated lending book of approx. Rs. 591
billion, and an active customer base of over 28 million, through its subsidiaries and joint
ventures.
Aditya Birla Capital Limited is a part of the Aditya Birla Group, in the league of Fortune
500. Anchored by an extraordinary force of over 140,000 employees, belonging to 100
nationalities. Today, over 50% of Group revenues flow from overseas operations that span
36 countries in North and South America, Africa and Asia.

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2.2 VISION
To be a premium global conglomerate with a clear focus on each of the businesses.
The 4 pillars of our vision that will help us achieve it are:
 To be a leader
 To be a role model
 To be a broad-based player
 We aim to be an integrated player

2.3 MISSION

To deliver superior value to our customers, shareholders, employees, and society at large.

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 3 INTRODUCTION OF THE PROJECT

3.1 OBJECTIVE
1. To study the various chart patterns in long term, medium-term and short term.
2. To study the back-testing strategies.
3. To study sector P/E ratio, Undervalued and Overvalued Stocks
4. Asset Allocation and calculate NAV.
5. Live Trading
6. Mutual Trading
7. Project on Derivatives

3.2 DATA SOURCE

Secondary Data: The data was gathered from the Money Control and Trading View.

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3.3 LIMITATIONS OF THE STUDY

 As the data collected is from secondary sources, it is not sure if the data is
accurate and complete.
 Due to lack of experience and knowledge of the sector it can’t be
said that the projections made have been totally correct and accurate.
 The study is limited to large cap stocks only having market capitalization
of Rs. 7500cr. and above.

3.4 METHODOLOGY
 Fundamental Analysis
 Technical Analysis

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4 FUNDAMENTAL ANALYSIS

What is Fundamental Analysis?

Fundamental analysis is a technique that is used to determine the value of an asset by
focusing on underlying factors that affect the company’s future aspects and its actual
business.

It is a method used to evaluate a security that entails attempting to measure its

intrinsic value by examining related economic, financial, and other qualitative and
quantitative factors. Fundamental analysis is about using real data to evaluate a
security's value. Although most analysts use fundamental analysis to value stocks,
this method of valuation can be used for just about any type of security. It assumes
that over the long term, a stock price will reflect the company’s intrinsic value .

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4.1 ECONOMIC ANALYSIS

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy
and is making significant strides. Proving its resilience to the world, Indian M&E industry
is on the cusp of a strong phase of growth, backed by rising consumer demand and
improving advertising revenue. According to a FICCI-EY report, the advertising to GDP
ratio is expected to reach 0.4% by 2025 from 0.38% in 2019.

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 1) GDP

India's nominal gross domestic product (GDP) grew 19% in 2021, advertising growth
outperformed with 25% growth. The highest growth of ₹6,200 crore was in television
advertising, followed by digital advertising at ₹5,500 crore and print at ₹2,900 crore.

2) Inflation

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3) Government Policy
 In November 2021, the government announced that it is working towards
creating a National Centre of Excellence for AVGC (animation, visual effects,
gaming and comics).
 On February 25, 2021, the government outlined the Information Technology
(Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 to
establish a progressive institutional mechanism and a three-tier grievance
redressal framework for news publishers and OTT platforms on the digital
media.
 In February 2021, the digital entertainment committee of the Internet and
Mobile Association of India (IAMAI) finalised a code of conduct to form the
basis for self-regulation code for OTT content. The code has been endorsed by
17 OTT platforms including Netflix, Amazon Prime Video, Disney+ Hotstar,
ZEE5 and Voot.
 In February 2021, Prasar Bharati (India) and PSM (the official State Media of
Maldives) inked an agreement to facilitate collaboration and capacity building
in the field of broadcasting.
 Digital audio–visual content including films and web shows on over-the-top
(OTT) streaming platforms, as well as news and current affairs on online
platforms, have been brought under the Ministry of Information and
Broadcasting in November 2020.

4) Road Ahead

Indian M&E industry is on an impressive growth path. The industry is expected to

grow at a much faster rate than the global average rate.

Growth is expected in retail advertisement on the back of several players entering

the food and beverages segment, E-commerce gaining more popularity in the
country, and domestic companies testing out the waters. Rural region is also a
potentially profitable target.

5) Exchange Rate:

Note: Conversion rate used for November 2021 is Rs. 1 = US$ 0.01336

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 4.2 INDUSTRY ANALYSIS
INTRODUCTION

The Indian media and entertainment industry is one of the fastest growing media
industries in the world and is projected to reach USD 100 billion by 2030, Apurva
Chandra, Secretary, Ministry of Information and Broadcasting (MIB), said on Friday.
Chandra, who inaugurated the Media and Entertainment Week at Dubai Expo's India
Pavilion, said the media and entertainment industry in India is currently valued at USD 28
billion and highlighted that the country has the talent and creative skill required in the
industry.

"The Indian media and entertainment industry is valued at USD 28 billion and is projected
to reach USD 100 billion by 2030, growing at a cumulative growth rate of 12 per cent.
India has the talent and creative skill required in the industry,"

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 MARKET SIZE

According to the FICCI-EY report 2021, the media and entertainment business is
estimated to grow 25% to reach Rs. 1.73 trillion (US$ 23.29 billion) in 2021.

According to an EY report, the Indian media and entertainment (M&E) sector stood at Rs.
1.38 trillion (~US$ 19 billion) in 2020 and is estimated at Rs. 1.73 trillion (~US$ 23.7
billion) in 2021. Further, it is projected to grow to Rs. 2.23 trillion (~US$ 30.6 billion) by
2023 due to acceleration of digital adoption among users across geographies.

Television would account for 40% of the Indian media market in 2024, followed by print
media (13%), digital advertising (12%), cinema (9%), and the OTT and gaming industries
(8%).

The market is projected to increase at a CAGR of 17% between 2020 and 2023.

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SECTOR COMPOSITION OF MEDIA AND ENTERTAINMENT INDIA

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 SWOT ANALYSIS

Strengths

 When media industries tout their strengths, they often mean their customers rather
than the journalism awards sitting on the trophy shelf.
 If you’re looking to invest or advertise, broadcast television rules if you want the
broadest audience, but doesn’t have the influence it once did, for example.
 Brand names can also be a strength.
 Both customers and advertisers may want to be associated with media outlets
considered elite news and entertainment sources.

Weakness

 Every media outlet engages in a fierce competition for a larger share of audience.
At any given time, ratings or circulation figures are a weakness for some industry
sectors.
 Cost structure is a weakness in some traditional media industries, where a change
in audience media preferences has left a solid brand, but a bloated workforce and
narrowing customer base.
 New media can have a similar problem, with founders and investors pouring cash
into their vision of the future that results in an unsustainable amount of red ink.

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Opportunities

 Traditional media industries are looking to monetize their offerings on the

Internet, or turn their free social media outlets into effective sales pitches for their
pay offerings.
 There’s also the time-honored opportunities presented by the expansion of
markets. Combine them both, and media outlets may find it profitable to specialize
in niche content that’s more popular outside of their traditional geographic
footprint, and sell targeted Web advertisements to bring in the necessary revenue.
 The shifting consumer preferences, while often viewed as a negative, also
provides opportunities for media organizations to benefit.
 People using the Internet to get their news may lower the market for the physical
newspaper, but create new opportunities to market its content, for example.

Threats

 Disruptive technologies are a threat to media industries that haven’t been

proactive in using them for their benefit.
 User-generated content, whether it’s a popular series of YouTube videos or the
hottest social media site that everyone’s obsessing over, also takes eyeballs away
from established media industries.
 Fragmentation is a further threat for those who depend on a high volume of
customers, as broadcast TV networks, radio and newspapers in particular have
found out.
 If you're a business looking to get the most comprehensive coverage possible in
your advertising, doing it through the leading local radio station has less appeal if
the ratings are far from what they once were.

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 Porter Five Forces

COMPETITI
VE
RIVALRY

BARGAINI THREAT
NG OF
POWER NEW
OF ENTRAN
SUPPLIE TS
RS

BARGAININ THREAT
G OF
POWER SUBSTITU
OF TES
BUYERS

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 4.3 COMPANY ANALYSIS
4.3.1 QUALITATIVE ANALYSIS

INTRODUCTION OF ZEE ENTERTAINMENT

Zee Entertainment Enterprises (formerly Zee Telefilms) is an Indian media conglomerate.
Headquartered in Mumbai, it has interests in television, print, internet, film, mobile
content and allied businesses. It operates 45 channels worldwide. Zee Entertainment
Enterprises Limited (ZEEL) is a media and entertainment company engaged in providing
broadcasting services. The company operates through content and broadcasting segment.
The company has a library, housing over 260,000 hours of television content. The
company holds rights to approximately 4,800 movie titles. The company's brands include
Zee TV, Zee Cinema, Zee Action, Zee Classic, Zee Anmol, Zee Cafe, Zee Studio, Zee
Salaam, Zing, ETC Bollywood, Zee Q and Zindagi.
The company was launched on 15 December 1991 as Zee Telefilms, brand name that was
retained until 2006.
Zee Telefilms launched a Nickelodeon-branded programming block in 1999 as part of a
distribution deal between Viacom International and Zee Telefilms. It was replaced by a
new Cartoon Network block in 2002.
On September 22, 2021, the company announced that it will merge with Sony Pictures
Networks India.
Zee Entertainment announced that its board had approved its merger with Sony Pictures
Networks India.

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a) PRODUCT OF THE COMPANY
Zee Entertainment Enterprises Limited (ZEEL) is a media and entertainment
company .The company holds rights to approximately 4,800 movie titles. The
company's brands include Zee TV, Zee Cinema, Zee Action, Zee Classic, Zee
Anmol, Zee Cafe, Zee Studio, Zee Salaam, Zing, ETC Bollywood, Zee Q and
Zindagi. The company has a range of offering in the regional language domain with
channels, such as Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee
Telugu, Zee Kannada, Zee Tamil and Sarthak TV. Its high definition offerings
include Zee TV HD, Zee Cinema HD, & tv HD, Zee Studio HD, Zee Cafe HD,
&pictures HD, Ten 1 HD and Ten Golf HD.

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b) PROMOTERS OF THE COMPANY
The Shareholding Pattern page of Zee Entertainment Enterprises Ltd. presents the
Promoter's holding, FII's holding, DII's Holding, and Share holding by general
public etc.

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c) CAPITAL STRUCTURE OF THE COMPANY

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 d) SWOT ANALYSIS OF THE COMPANY

STRENGTH

1 First private Hindi TV channel in India

2. Global presence
3. Started legacy of reality show by starting Antakshari
4. Runs highly successful singing reality show Sa Re Ga Ma
5. HD quality
6. Pioneer of Cookery show on TV (Khana Khazana)

WEAKNESS

1. Unable to cope up with changes and likings of viewers despite of being the oldest pvt
channel
2. Constantly dipping viewership
3. Shows mainly focus on drama between Saas-Bahu
4. Earlier shows such as Disney Hour used to easily grab attention of kids
5. Growth of Zee Network's own regional channel shifted focus from original Zee TV
6. Channel had given remarkable shows such as 'Phillips Top 10', 'Hum Paanch', 'Filmy
Chakkar' etc. now unable to break the ground 7. Unnecessary importance is given to TRP

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OPPORTUNITIES

1. Weak and questionable method of judging viewership by TRP need not be given such
high priority
2. Make some really good shows for kids especially on weekends as Zee Network does
not have channel dedicated to kids
3. Can catch audience once more by giving genuine humour based programmes
4. Method of 'Once in a week show' can be reintroduce to break the ground and provide
quality contents
5. Renaissance of creativity is the key

THREATS

1. Similarity of shows in all GECs

2. New channels such as Colors able to grab #1 spot.

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4.3.2 QUANTITATIVE ANALYSIS
a) INDEX CALCULATION

The index is calculated as the weighted arithmetic mean with a fixed basket in the base
period preceding the comparison period.
In my Index 6 companies are there which include Large Cap Stocks.

Method for Index calculation

1) Weightage is calculated by sum of the total market capital.

2) Calculation of % change in stock price is compared to previous day.
(Current price – previous price) /Previous price.
3) Index change is calculated by multiplying Weightage and % change in price
4) Calculation of Index is always start with base Number 1000
5) Base value is multiplied by Index change
6) And by adding/subtraction the total with 1000 we get the final answer.

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b) SECTOR P/E RATIO

• The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that
measures its current share price relative to its earnings per share (EPS).
• The average PE Ratio of all the 6 stocks is 14.38333.
• Below average (less than 14.38333) is called Undervalued & Above average
(greater than 14.38333) is called as Overvalued.
• Negative P/E ratio will reject they will not select in undervalued as well as
Overvalued

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c) UNDERVALUED STOCKS

After the valuation process the undervalue, stocks are determined by positive change in
earning per share (EPS) for each undervalue share. The Undervalued stocks with positive
percentage change in EPS or which show growth Year on Year are selected as the “Value
picks” and the ones with negative percentage change in EPS or which show a decline in
EPS Year on Year are rejected.
There are four criteria for selecting an undervalue company in it-
1. When both values are increasing then select.
2. When one value is increasing and other is decreasing, then also select it.
3. When one value is decreasing and other is increasing, then also select it.
4. When both values are decreasing then do not select it

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 d) OVERVALUED STOCKS
The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio
divided by the growth rate of its earnings for a specified time period. After the selection of
Value Picks, the next step is to analyzes the Overvalued stocks and derive determine the
Growth Picks. For determining the Growth Picks, P/E Growth value (PEG value) is
calculated for each Overvalued stock by dividing P/E ratio of each of these stocks by the
percentage change in earnings per share Year on Year and the stocks with positive PEG
values should be between 0 to 1.5 are selected as Growth Picks. The Overvalued stocks
with negative PEG values or with PEG values greater than 1.5 are rejected.

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e) SOME IMPORTANT FINANCIAL RATIO
 Debt Equity Ratio: It is used to evaluate a company's financial leverage and is
calculated by dividing a company's total liabilities by its shareholder equity.
Generally, the lower the ratio, the better.

 Return on Asset Ratio: Return on Asset (ROA) measures how efficient a

company's management is in earning a profit from their economic resources or
assets on their balance sheet. ROA is shown as a percentage, and the higher the
number, the more efficient a company's management is at managing its balance
sheet to generate profits.

 Asset Turnover Ratio : It shows the ratio between the fixed assets and the net
sales of the company. From this ratio one can understand how the assets are
performing and being utilized in achieving the objectives of the company.
Fixed assets turnover ratio = Net Sales / Average Fixed Assets.
There is no Ideal Ratio.

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 Quick Ratio: The term quick assets or liquid assets refers current assets which can
be converted into cash immediately and it comprises all current assets except stock
and prepaid expenses. It is determined by dividing quick assets by quick liabilities.
Liquid ratio = Liquid assets/ Liquid liabilities
Ideally the liquid ratio should be 1:1.

 Current Ratio: It helps to understand the investors about a company’s ability to

cover its short-term debt and make easy for investor to compare with its
competitors. Ideal Current ratio is 2:1.

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Combine Ranking of all the Stocks

For determining the combine ranking of the stocks we have to provide some certain
weightage to all the above mention ratio according to their value.

Now, for calculating the ranking we have to multiply the weightage with the particular
ranks and then sum it.

The main reason behind the calculating the ranking is to calculate the NAV (Net Asset
Valuation) of my Sector by allocating the fund (initially Rs. 10 Cr.)

NAV= Total Allocation/ No. of units

[In this Case No. of units is taken as Rs. 1 Cr, by default]

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 f) FUND FACT SHEET

Media Equity Fund Fund Inception: 21st April, 2022

NAV as on 21st April 2022: 9.90 Benchmark: Index 947.33
Asset held as on 21st April 2022: Rs.99049561.21
Fund Manager: Ms. Megha Chaturvedi

About the Portfolio:

OBJECTIVE: To generate long-term capital appreciation for policy holders by

making investments in fundamentally strong and liquid large cap companies.

STRATEGY: To build and actively manage an equity portfolio of 4 fundamentally

strong large cap stocks in terms of market capitalization, by following an in-depth
research-focused investment approach. The fund will invest in companies having
financial strength, robust, efficient & visionary management, enjoying competitive
advantage along with good growth prospects and adequate market liquidity. The fund
will adopt disciplined yet flexible long- term approach towards investing with a focus
on generating long-term capital appreciation. The non-equity portion of the fund will
be invested in high rated money market instruments and fixed deposits. The fund
will also maintain reasonable amount of liquidity.
ASSET ALLOCATION

Asset Allocation

15%
TV 18
36%
Broadcast
20%
Saregama
India
29%
Zee
Entertainement
Sun TV Network

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Fund Performance

Index v/s
5 NAV
0
-5
-
10
-
15
-
20
-
25
-
30
-
35 % change in % change in
Index NAV

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 5 TECHNICAL ANALYSIS

What is technical Analysis?

In simple words, Technical Analysis is the study of past price movements of the share to
forecast its future trends and movements. Just like a weather forecast, Technical Analysis is
not 100% accurate but it helps us predict what is likely to happen in the near future. Technical
Analysis mostly relies on different charts for analysis. It is applicable to stocks, commodities,
futures, options, etc., where the price of the underlying asset is affected and fluctuates and is
influenced by its supply and demand. Technical Analysis does not state if the underlying asset
is overpriced or under-priced. Instead, it helps us predict the direction, (upward or downward)
in which the price may move in the near future.
Price of a stock refers to any combination of the open, high, low or close for a given security
during a specific timeframe. The time frame can be based on intraday, i.e., 1 minute, 5-minute,
15-minute, and so on, or daily, weekly or monthly or yearly period. In addition, some technical
analyst also refers the volume or the open interest figures while studying for price action.

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What is Chart?
A trading chart or a price chart is a sequence of price plotted over a specific period of time. In
statistical terms, charts are referred to as time series plots.

On the chart, the y-axis (vertical axis) represents the price scale and the x-axis (horizontal axis)
represents the time scale. Prices are plotted from left to right across the x-axis with the most
recent plot being the furthest right. The price plot for PETRONET extends from 2017 to 2021.
The Technical Analysts use charts to analyse a wide array of securities and forecast future price
movements. The word "securities" refers to any tradable financial instrument such as stocks,
bonds, commodities, futures, etc. Any security whose price fluctuates due to its demand and
supply with price data over a period of time can be used to form a chart for analysis. While
technical analysts use charts almost exclusively, the use of charts is not limited to just technical
analysis. Because charts provide an easy-to-read graphical representation of a security's price
over a specific period of time, they can also be of great benefit to fundamental analysts.

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What is Trendline?
Technical analysis is built on the assumption that prices follow a trend. Trendlines are an
important tool in technical analysis for both trend identification and confirmation. A trendline
is a straight line that connects two or more price points and then extends into the future to act
as a line of support or resistance. Many of the principles applicable to support and resistance
levels can be applied to trendlines as well. Trendline further can be divided into (a) Up
Trendline and (b) Down Trendline.

(a) Up Trendline: An up trendline has a positive slope and is formed by connecting two
low points. The second low must be higher than the first for the line to have a positive
slope. Up trendlines act as support and indicate that net-demand is increasing even as
the price rises. A rising price combined with increasing demand is very bullish and
shows a strong determination on the part of the buyers. As long as prices remain above
the trendline, the uptrend is considered solid and intact. A break below the up trendline
indicates that net-demand has weakened and a change in trend could be imminent.

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(b) Down Trendline: A down trendline has a negative slope and is formed by
connecting two or more high points. The second high must be lower than the first for
the line to have a negative slope. Down trendlines act as resistance and indicate that
net-supply (supply less demand) is increasing even as the price declines. A declining
price combined with increasing supply is very bearish and shows the strong resolve of
the sellers. As long as prices remain below the down trendline, the downtrend is
considered solid and intact. A break above the down trendline indicates that net-supply
is decreasing and a change of trend could be imminent.

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Support and Resistance:

What is Support?
Support is the price level at which demand is thought to be strong enough to prevent the price
from dropping down further. The logic states that as the price declines towards support and
gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By
the time the price reaches the support level, it is believed that demand will overcome supply
and prevent the price from falling below support.

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What is Resistance?
Resistance is the price level at which selling is thought to be strong enough to prevent the price
from rising further. The logic states that as the price advances towards resistance, sellers
become more inclined to sell and buyers become less inclined to buy. By the time the price
reaches the resistance level, it is believed that supply will overcome demand and prevent the
price from rising above resistance.

Resistance does not always hold and a break above resistance signals that the bulls have won
out over the bears. A break above resistance shows a new willingness to buy and/or a lack of
incentive to sell. Resistance breaks and new highs indicate buyers have increased their
expectations and are willing to buy at even higher prices. In addition, sellers could not be
coerced into selling until prices rose above resistance or above the previous high. Once
resistance is broken, another resistance level will have to be established at a higher level.

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 Chart Patterns:
There are hundreds of thousands of market participants buying and selling securities for a wide
variety of reasons such as gains, fear of loss, tax consequences, hedging, fundamental analysis,
technical analysis, broker recommendations, etc. Trying to figure out why participants are
buying and selling can be a difficult process. Chart patterns put all buying and selling into
perspective by bringing together the forces of supply and demand into a brief picture. As a
complete record of all trading, chart patterns provide a framework to analyse the battle between
bulls and bears. More importantly, chart patterns and technical analysis can help determine
who is winning the battle, allowing traders and investors to position themselves accordingly.
Chart pattern analysis can be used to make short-term or long-term forecasts. The data can be
intraday, daily, weekly or monthly and the patterns can be as short as one day or as long as
many
Long Term Chart Patterns:
1. Rounding Bottom: The rounding bottom is a long-term reversal pattern that is best
suited for weekly charts. It is also referred to as a saucer bottom, and represents a long
consolidation period that turns from a bearish bias to a bullish bias.

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2. Cup with Handle: The Cup with Handle is a bullish continuation pattern that marks a
consolidation period followed by a breakout. It was developed by William O'Neil. As
its name implies, there are two parts to the pattern: the cup and the handle. The cup
forms after an advance and looks like a bowl or rounding bottom. As the cup is
completed, a trading range develops on the right-hand side and the handle is formed. A
subsequent breakout from the handle's trading range signals that there is a continuation
in the prior increase in price.

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3. Bump & Run Reversal: As the name implies, the Bump and Run Reversal (BARR) is
a reversal pattern that forms after excessive speculation drives prices up too far, too
fast. Developed by Thomas Bulkowski, the pattern was introduced in the June-97. The
pattern was originally named the Bump and Run Formation, or BARF. Bulkowski
identified three main phases to the pattern: lead-in, bump and run. We will examine
these phases and also look at volume and pattern validation.

4. Head and Shoulders Top (Reversal): A head and shoulders reversal pattern forms
after an uptrend, and its completion marks a trend reversal. The pattern contains three
successive peaks with the middle peak (head) being the highest and the two outside
peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be
connected to form support, or a neckline. As its name implies, the head and shoulders
reversal pattern is made up of a left shoulder, head, right shoulder and neckline.

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5. Head and Shoulders Bottom (Reversal): The head and shoulders bottom are
sometimes referred to as an inverse head and shoulders. The pattern shares many
common characteristics with its comparable partner, but relies more on volume patterns
for confirmation. As a major reversal pattern, the head and shoulders bottom forms after
a downtrend, and its completion marks a change in trend. The pattern contains three
successive heads with the middle head being the deepest and the two outside shoulders
being shallower. The reaction highs in the middle of the pattern can be connected to
form resistance, or a neckline.

6. Double Top (Reversal): The double top is a major reversal pattern that forms after an
extended uptrend. As its name implies, the pattern is made up of two consecutive peaks
that are roughly equal, with a moderate trough in between. Although there can be
variations, the classic double top marks at least an intermediate change, if not long-term
change, in trend from bullish to bearish. Many potential double tops can form along the
way up, but until key support is broken, a reversal cannot be confirmed.

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7. Double Bottom (Reversal): The double bottom is a major reversal pattern that forms
after an extended downtrend. As its name implies, the pattern is made up of two
consecutive troughs that are roughly equal, with a moderate peak in between. Although
there can be variations, the classic double bottom usually marks an intermediate or long-
term change in trend. Many potential double bottoms can form along the way down,
but until key resistance is broken, a reversal cannot be confirmed.

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 Medium Term Chart Patterns:
1. Ascending Triangle: The ascending triangle is a bullish formation that usually forms
during an uptrend as a continuation pattern. There are instances when ascending
triangles form as reversal patterns at the end of a downtrend, but they are typically
continuation patterns. Regardless of where they form, ascending triangles are bullish
patterns that indicate accumulation. Because of its shape, the pattern can also be
referred to as a right-angle triangle. Two or more equal highs form a horizontal line at
the top. Two or more rising troughs form an ascending trendline that converges on the
horizontal line as it rises. If both lines were extended right, the ascending trendline
could act as the hypotenuse of a right triangle. If a perpendicular line were drawn
extending down from the left end of the horizontal line, a right triangle would form.

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2. Descending Triangle: The descending triangle is a bearish formation that usually
forms during a downtrend as a continuation pattern. There are instances when
descending triangles form as reversal patterns at the end of an uptrend, but they are
typically continuation patterns. Regardless of where they form, descending triangles
are bearish patterns that indicate distribution. Because of its shape, the pattern can also
be referred to as a right-angle triangle.

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3. Symmetrical Triangle: The symmetrical triangle, which can also be referred to as a
coil, usually forms during a trend as a continuation pattern. The pattern contains at least
two lower highs and two higher lows. When these points are connected, the lines
converge as they are extended and the symmetrical triangle takes shape. You could also
think of it as a contracting wedge, wide at the beginning and narrowing over time. While
there are instances when symmetrical triangles mark important trend reversals, they
more often mark a continuation of the current trend. Regardless of the nature of the
pattern, continuation or reversal, the direction of the next major move can only be
determined after a valid breakout.

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4. Price Channel: A price channel is a continuation pattern that slopes up or down and is
bound by an upper and lower trendline. The upper trendline marks resistance and the
lower trendline marks support. Price channels with negative slopes (down) are
considered bearish and those with positive slopes (up) bullish. For explanatory
purposes, a "bullish price channel" will refer to a channel with positive slope and a
"bearish price channel" to a channel with negative slope.

5. Rectangle Pattern: A rectangle is a continuation pattern that forms as a

trading range during a pause in the trend. The pattern is easily identifiable
by two comparable highs and two comparable lows. The highs and lows
can be connected to form two parallel lines that make up the top and bottom
of a rectangle. Rectangles are sometimes referred to as trading ranges,

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  Short Term Chart Patterns:
1. Doji: Doji are important candlesticks that provide information on their own and
also feature in a number of important patterns. Doji form when a security's open
and close are virtually equal. The length of the upper and lower shadows can vary
and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone,
doji are neutral patterns. Any bullish or bearish bias is based on preceding price
action and future confirmation. The word "Doji" refers to both the singular and
plural form.

2. Hammer: The hammer is a bullish reversal pattern that forms after a decline. In
addition to a potential trend reversal, hammers can mark bottoms or support levels.
After a decline, hammers signal a bullish revival.

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3. Hanging Man: The hanging man is a bearish reversal pattern that can also mark a
top or resistance level. Forming after an advance, a hanging man signals that selling
pressure is starting to increase.

4. Inverted Hammer : The inverted hammer and shooting star look exactly alike, but
have different implications based on previous price action. Both candlesticks have
small real bodies (black or white), long upper shadows and small or non-existent
lower shadows. These candlesticks mark potential trend reversals, but require
confirmation before action.

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5. Shooting Star: The shooting star is a bearish reversal pattern that forms after an
advance and in the star position, hence its name. A shooting star can mark a
potential trend reversal or resistance level. The candlestick forms when prices gap
higher on the open, advance during the session and close well off their highs. The
resulting candlestick has a long upper shadow and small black or white body.

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 Back-Testing of Indicators

Conclusion: As a Financial Advisor I recommend my client to use Aroon Indicator in

Media Sector on Zee Entertainment Stock. As its Profit probability is highest among all
the indicators which we mentioned above from Last 1 Year.

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 PROJECT ON DERIVATIVES

SHORT STRADDLE
Intraday Strategy
a) Opstra

b) Sensibull

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RELIANCE
Long Straddle
a) Opstra

b) Sensibull

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POWER GRID
Vertical Spread (Top Gainer)
a) Opstra

b) Sensibull

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ITC
Covered Call
a) Opstra

b) Sensibull

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 9 LEARNINGS

As an individual who only has theoretical knowledge about finance market and not
having a good business exposure. Internship at “Aditya Birla Sunlife Insurance” has
brought everything to me which, I wanted to learn and have that is gaining practical
knowledge about finance market and along with a good business exposure. In this
three-month internship, I got to learn a lot by commendable people and would like
to share a few things about my learnings.

Firstly, I got to know there are two types of market that is “Equity Market” and “Debt
Market”. After that got to know about market capitalization and also how to make
your own index so that you can track down your chosen sector by yourself to see if
it is falling or raising.

After known the types of market and also after choosing sector of my choice, I learnt
about two types of analysis namely fundamental and technical analysis. In
fundamental analysis, I got to know how it helps in long-term investing and a person
looking for long term investment can use this analysis for investment. In technical
analysis, I got to learn about short term investment which is basically intra-day. For
short investment use different technical indicators and patterns.

After doing fundamental analysis in my chosen sector, I learnt about allocation of

funds which is a mixture of overvalue and undervalue shares. After allocating fund,
I have to see that my sector portfolio beats my index.

Overall, the internship experience in Aditya Birla Sunlife Insurance was cherish full
and the learnings which I got from there will build my base and will remain with for
a long time. Further the internship experience and learnings from Aditya Birla
Sunlife Insurance will boost my career.

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 References

1. https://www.moneycontrol.com
2. https://in.tradingview.com
3. https://www.mbaskool.com/brandguide/media-and-entertainment/672-zee-tv.html
4. https://embapro.com/frontpage/porterfiveanalysis/10629-zee-entertainment
5. https://www.ibef.org/industry/media-entertainment-india

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