Team 6 Comic

Hey Kirti, Do you know, I have made Rs. 70,000 in the Stock Market How did you do that? It’s so easy! I took a Trade on Bank Nifty & used capital to get Rs. 30,000.

Do you know that the Financial Services Sector in India is Growing Rapidly. Wow, Amazing, Can you tell me more about the Financial Services Sector The rising income is driving the demand for financial services across income brackets, increasing the Investment Corpus of Indian People

India is Positioned to become one of the largest digital markets with rapid expansion of mobile and internet. India has a diversified financial sector undergoing rapid expansion , both in terms of strong growth of existing Financial services and new entities entering the market. Wow, that sounds so interesting !! Financial services sector is the second largest sector after the IT sector which has created wealth of almost 298% in the last 10 years.

Wait Wait. There’s more! India is today one of the most dynamic global economies and a leading player in delivering financial services in India and abroad alike.

The top 1.Muthoot Finance Companies of 2.Bajaj Finserv the Sector are 3.Cholamandalam Investment 4.Bajaj finance 5.HDFC Thank You so much I will do some research om this Sector & Companies. They look really interesting No Problem, If you Start Investing now, You’ll be Financial Strong. All the Best Kirti

PART II

Hey Kirti What’s up, You told me you possess a good amount of idle money on you. What’s your plan? Yeah I remember, I am planning to start investing in the financial sector as I got various insights from you that day Also, do you know what I have Technical Analysis as a subject in my curriculum I have some doubts which I am still figuring out, Can you help me with that Sure Kirti, Tell me what it is, I’m curious

I think this would not only help me in my assignment but will also make my investment journey feasible. I think we are good to go!! This sounds absolutely perfect!

So Abhinav, can you tell me the difference between the different types of Stocks. Sure, there are 3 Types of Stocks mainly, Blue Chip Stocks, Growth Stocks and Penny Stocks, Blue Chip Companies are mainly Stocks like bajaj finance which have already grown and really safe to invest in Growth Stocks are companies that have the potential to grow further and give massive returns and Penny Stocks are stocks which are less in price and the company is mainly no functioning properly.

Wow, that’s Interesting Can you suggest a few Blue Chips Stocks in the Financial Services Sector for the Assignment? Sure, of course! 1) HDFC AMC 2) Bajaj Finance 3) Muthoot Finance 4) Baja Finserv 5) Cholamandalam Investment & Finance Ltd.

Okay, So are there any Financial Service Sectors that like Nifty 50 We have Nifty FinServ, which includes banks, financial infsint1ia0tn0uc,t0eio,0ni0nss, uhroaunscineg companies and other financial services companies. Wow, That's Interesting, So My teacher told me to identify trends in 5 BlueChip Stocks and the Index. Can you help me with that?

Sure, so there are 3 Types of Trends i.e., Primary, Secondary and Minor, I’ll explain the details once we proceed with the Charts. Alright, Got it, Let me get my Laptop Open Trading View on your Laptop and find Nifty Fin Serv OKAY!

Minimize the chart and Use Weekly Time frames to Identify the Primary Trend. As you can see the Nifty Finserve Index was started in August of 2020 and there is 1 Primary Trend,

Major trends of the industry or stock which sustains for a longer period usually 4 years of time moves in the Bullish Phase, within the Primary Trend, we can see a few Secondary Trends which show the Yes, I get what you are saying. I would like to make a guess regarding the secondary trends. • Post Budget Movements • Sideways Movement for some days • Minor Fluctuations – Sideways • Russia Ukraine War Impact on the Market So the Secondary trends are something which is minor corrections in the markets for the reason stated above which can be observed in the above nifty FinServ chart

So I would quickly like to identify the trends for your companies so that you can learn quickly and apply same on the others Oh yes ! It seems that my job is just about done. Look at the primary trends and secondary trends for your blue chip companies and here it goes !

Bajaj Minimize the finance! chart and Use Weekly Time frames to Identify the Primary Trend. Bajaj Finserv! Hdfc AMC

MUTHOOMTinimize the FINANCcEhart and Use Weekly Time frames to Identify the Primary Trend. CHOLA MANDALAM This looks perfect and now I will be to apply this on other stock as well for my companies too!

Now quickly let's cover up what a minor trend is. So minor trends are fluctuations to the market movement on a daily basis which are less than three weeks of Time period. It can be seen using daily charts I shall make an attempt to find those then, let's do it! See I have identified major trends

Minimize the chart and Use Weekly Time frames to Identify the Primary Trend. Good Kirti ! It’s good to see that you are a fast learner . What about the Indicators? So let me talk to you about certain indicators too which are used during bearish and bullish divergence.

Some of them are : Relative Strength Index (RSI) Commodity Channel Index (CCI) Moving Average Convergence Divergence ( MACD) On balance volume ( OBV) Ohh Alright, So can you tell me what news affects the Stock Price in this Sector Sure, so any corporate News is specific to acquisition or Negative companies and industry news will normally cause people to sell stocks, or and some financial Uncertainty like Covid some Government Pandemic, Subprime Crisis economic reports, 2008, Ukraine Russia War, Demonetization).

Some other Macro News can be like • Budget ( Announcement of Budget and Tax Shelters) • Fiscal Policy ( Worldwide) • Global Indexes • NPAs ( Merger and Acquisitions) • Insurance FDI Policies Superb, that was a really great conversation, I have written down all the points and I’ll make a report on that

PART III

Hi, Kirti! Any progress? Is there something more you want to learn? Hi Abhinav! Yes, can you help me with trend analysis and support and resistance levels for my blue chip and penny stock . Yes sure Kirti , can you name them? For blue chip it is Bajaj Finance and for penny it is Arc Finance.

So let me first explain to you what support and resistance is. The support level is a price point on the chart where the trader expects maximum demand (in terms of buying) coming into the stock/index. Whenever the price falls to the support line, it is likely to bounce back. The support level is always below the current market price. Great ! The resistance level is a price point on the chart where traders expect maximum supply (in terms of selling) for the stock/index. The resistance level is always above the current market

So let's take your companies and study their trend analysis and support and resistance levels. Yeah, ok! Look at the below charts to get a better understanding. Bajaj finance! Daily

Weekly Minimize the chart and Use Weekly Time frames to Identify the Primary Trend. Monthly Yeah, after that stock was moving in a channel, where it was making Higher Highs and lower lows, and 8043 has been a crucial Resistance level, and the stock has not given closing above that, It made a triple top and post which it made a triple bottom at support level around 6800

Yeah,that was quite informative wow, can you tell me more weekly time frame? In Weekly time frame we can support around 2000 and right now it’s moving in channels between 6400 and 8000 Yeah, true In the Monthly Time frame, the support levels are the same as Weekly, with 2 Support Levels

So lets now look on the ARC FINANCE CHARTS ! Kirti sees in penny stocks there are no major uptrends or downtrends , only support and resistance levels can be determined by lows and highs of the stock. These stocks usually go through lower or high upper circuits and high volatility so major trends cannot be determined. ARC FINANCE Daily

Weekly Minimize the chart and Use Weekly Time frames to Identify the Primary Trend. Monthly So can we say Yes of course, that they have You’re a fast an unusual learner! movement ?

PART IV

Hey Kirti what’s up! Long time no see Hey Abhinav , was just caught up with some more technical analysis assignments. Alas one last one to go. What it is about , hit me. So, I have to identify chart patterns and technical indicators for one of my blue-chip stocks.

Don’t worry , this is so simple, we’ll be done in an hour. Come let’s sit down and complete it quickly and then we can go out and party. May you make more money! Hahaaahh !

So first let me ask you a question , why must there be a chart pattern for a particular stock ? Maybe, it is because the market has recurring cycles of buying and selling activity. As business activity is cyclical, the prospects for the market will brighten at some point. Yes, There are different absolutely chart patterns but correct ! appropriate ones for your assignments are Double bottom, Triple Bottom and Head Shoulders Bottom.

So , can you please elaborate more on them . Yes sure. You can also start on marking the graphs to help you get a better grip on the concepts. That sounds absolutely perfect!

Double bottom, which is a low made in the same price area as at a prior bottom and is usually accompanied by an increase in average daily volume. Generally, a major prior low, the first part of the double bottom, marked the last time the prospects for the company or asset improved. This is pattern recognition of the most basic kind and reflects natural, reoccurring, and fundamental forces of cyclical change. Can you tell me something about reversal patterns too ? !

A price pattern that signals a change in the prevailing trend is known as a reversal pattern. For example double and triple tops or bottoms W bottoms or M tops V tops or bottoms Rounding tops and rounding bottoms The head and shoulders pattern Understood!

A triple top is formed by three peaks moving into the same area, with pullbacks in between, while a triple bottom consists of three troughs with rallies in the middle. Now, let me tell you what the head and shoulder pattern is. A head and shoulders pattern is a technical indicator with a chart pattern of three peaks, where the outer two are close in height and the middle is the highest.

The head and shoulders pattern—considered one of the most reliable trend reversal patterns— is a chart formation that predicts a bullish-to- bearish trend reversal. Now, you start working on the technical analysis based on the above explanations. Yes, Sure!

I am done identifying the chart patterns , now let’s conclude the assignment by placing the technical indicators . Yes , how many types of Technical indicators are there ? There are Simple A simple moving average is a moving average ( SMA), Bollinger bands,Moving technical indicator average convergence that can aid in divergence (MACD ) , Relative strength determining if an index(RSI) and asset price will Stochastic Indicator . continue or if it will reverse a bull or bear trend.

A Bollinger Band is a momentum indicator used in technical analysis that depicts two standard deviations above and below a simple moving average. • Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's. • The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions. The stochastic oscillator, also known as stochastic indicator, is a popular trading indicator​ that is useful for predicting trend reversals. It also focuses on price momentum and can be used to identify overbought and oversold levels in shares, indices, currencies and many other investment assets.

Double & Triple Minimize the Top & Bottom chart and Use Weekly Time frames to Identify the Primary Trend. Moving Average In SMA, we can see that all the MA are near their CMP, the 200 MA is below the Stock Price Red - 20 EMA Orange - 50 EMA Sky - 100 EMA Blue - 200 EMA

Minimize the STOCH RSIchart and Use Weekly Time frames to Identify the Primary Trend. RSI RSI here shows how the stock was in a bullish phase and the RSI was going down from the overbought zone to the normal zone.

BOLLINGER Minimize the BANDS chart and Use Weekly Time frames to Identify the Primary Trend. MACD In MACD, we can see how in Apr 2021, cause of the 2nd Wave, Stock went down and it was indicated by the MACD as well, where the 12 & 26 Day Convergence & Divergence went below and it recovered after that, which indicates it was good Buy time.

I am finally done with my technical analysis assignment ! It was a wonderful learning experience overall. It was quite interesting teaching you. I learnt quite a fair bit myself! Thank you so Hurray, at last much Abhinav. we are done!

TEAM 6 : AYUSHI CHANDNA (19111015) VADHADHIYA HARSH (19111048) ANUBHAV GANG (19111055)