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Construction of Portfolio by Using Technical Analysis

This document outlines a study on constructing a portfolio using technical analysis. It will analyze major companies in different sectors to determine when to buy and sell stocks based on technical indicators. The study aims to identify whether current stocks are bullish or bearish and construct a portfolio with different weights of major company stocks. Secondary data will be collected from websites, journals, and the Bombay Stock Exchange to perform technical analysis on selected companies. The study is limited to the selected companies and does not consider other factors that could impact future stock prices.

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Chandrashekhar Chandu
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440 views4 pages

Construction of Portfolio by Using Technical Analysis

This document outlines a study on constructing a portfolio using technical analysis. It will analyze major companies in different sectors to determine when to buy and sell stocks based on technical indicators. The study aims to identify whether current stocks are bullish or bearish and construct a portfolio with different weights of major company stocks. Secondary data will be collected from websites, journals, and the Bombay Stock Exchange to perform technical analysis on selected companies. The study is limited to the selected companies and does not consider other factors that could impact future stock prices.

Uploaded by

Chandrashekhar Chandu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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A Study on CONSTRUCTION OF PORTFOLIO BY USING TECHNICAL ANALYSIS Synopsis submitted in partial fulfillment of the requirements for the award

of the Degree of Masters of Business Administration Of Bangalore University Submitted by Name: Devaraj K.M Register Number: 10SLCMA033 Under the guidance of Ms.M.R PRATIBHA

THE OXFORD COLLEGE OF BUSINESS MANAGEMENT 4TH Sector, HSR Layout, Bangalore 560 102 2010-12

1. TITLE OF THE STUDY: CONSTRUCTION OF PORTFOLIO BY USING TECHNICAL ANALYSIS. 2. INTRODUCTION:


The technical analysis is based on the doctrine given by Charles H. Dow in 1884, in the wall street journal. He wrote a series of articles in the wall street journal. A. J. Nelson, a close friend of Charles Dow formalized the Dow theory for economic forecasting. The analysts used charts of individual stocks and moving averages in the early 1920s. Later on with the aid of calculators and computers, sophisticated techniques came in to vogue. The share price movement is analyzed broadly with two approaches, namely, fundamental approach and the technical approach. Fundamental approach analyses the share prices on the basis of economic, industry and company statistics. If the price of the share is lower than its intrinsic value, investor buys it. But, if he finds the price of the share higher than the intrinsic value he sells and gets profit. The technical analyst mainly studies the stock price movement of the security market. If there is an uptrend in the price movement investor may purchase the scrip. With the onset of fall in price he may sell it and move from the scrip. Basically, technical analysts and the fundamental analysts aim at good return on investment. Technical analysis is a process of identifying trend reversals at an earlier stage to formulate the buying and selling strategy. With the help of several indicators they analyze the relationship between price-volume and supply-demand for the overall market and the individual stock. Volume is favorable on the upswing i.e. the number of shares traded is greater than before and on the downside the number of shares traded dwindles. If it is the other way round, trend reversals can be expected.

3. STATEMENT OF THE PROBLEM:


Indian capital market is experiencing a tough situation by the various economical and financial reforms involving the various sub markets in the financial system. The stock market is highly volatile, it is very difficult for the ordinary investor or speculator to predict the movements of stock prices and it may seem like there is no rhyme of reason to their movement so, to analyze the movement of stock market I have chosen this topic.

4. OBJECTIVES OF THE STUDY:


1. To perform technical analysis of some major companies in different sectors. 2. To study when to buy and when to sell the stock by analyzing technical indicators. 3. To study whether current stock is bullish or bearish. 4. To construct the portfolio with different weights taking some major companies sectors stocks.

5. SCOPE OF THE STUDY:


An effective technical analysis facilitates investment decision of individual investors, It helps investors to understand in which company stock they should invest in and It also helps investors to minimize their risk through effective investment decisions.

6. RESEARCH DESIGN:
SECONDARY DATA: Data collection tools: The data is collected from Websites, Journals, Bombay Stock Exchange, and Library etc. Sampling Technique: Appropriate technical indicators sampling technique, since the data is based on Secondary data. Sample Size: there is no sample size, since the data is based on secondary data.

7. LIMITATIONS OF THE STUDY:


1. The study is restricted only to the selected companies. 2. Other factors which can affect the future price of the stocks are not considered.

8. CHAPTER SHEME:
(8.1) INTRODUCTION: It will provide the brief introduction about the title A STUDY ON CONSTRUCTION OF PORTFOLIO BY USING TECHNICAL ANALYSIS. (8.2) RESEARCH DESIGN: This chapter will provide a plan of study which will include statement of problem, need for study, objectives of study, scope of study, methodology (types of data, sources of data, tools for data collection, method of sampling, sample size, techniques for data collection,) limitation of the study . (8.3) PROFILE OF THE COMPANY/ORGANIZATION: This chapter will contain a complete profile of the company/organization including history, Nature of business, product & services, organization structure, competitors, turnover & no. of branch. (8.4) ANALYSIS & INTERPRETATION OF THE DATA: This chapter will provide analysis & interpretation of data. It will also contain the tables and graphs which will explain the analysis nicely. (8.5) SUMMARY OF FINDING, CONCLUSIONS & RECOMMANDATION: This chapter will consist of summary of findings through analysis of data; conclusion and recommendation will be provided on the basis of findings. The recommendation will be practical, realistic, & relevant.

9. BIBLIOGRAPHY:
It will include with the details of the book, magazine, journals, newspapers, website & other sources which referred for the study.

10. ANNEXURE:
It will contain the questionnaire and some data which help the reader to understand the report.

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