1.

1 Introduction to the topic

Investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security of principle, as well as security of return, within an expected period of time.

A security is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself. In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market Security analysis: Security Analysis is the analysis of tradable financial instruments called securities. Analysis of financial securities and forecasting the future returns is termed as security analysis. Classification of security analysis: The methods used to analyze securities and make investment decisions fall into two very broad categories. Security analysis are broadly classified into two 1. Fundamental analysis 2. Technical analysis

Fundamental analysis
Fundamental analysis is a technique that attempts to determine a securitys value by focusing on underlying factors that affect a company's actual business and its future prospects. On a broader scope, you can perform fundamental analysis on industries or the economy as a whole. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements. Fundamental analysis is broadly classified in to three areas: 1. Economic analysis 2. Industry analysis 3. Company analysis

Economic analysis

Investors are concerned with those factors in the economy which affects the performance of the organization in which they wish to participate through purchase of stock. A study of economic forces would give an idea about future corporate earnings and the payment of dividends and interest to investors. Economic analysis occupies the first place in the Financial analysis top down approach. When the economy is having sustainable growth, then the industry group (Sectors) and companies will get benefit and grow faster. The analysis of macroeconomic environment is essential to understand the behavior of the stock prices. The following factors are considered in economic analysis 1. Growth rate of Gross Domestic Product. 2. Industrial growth rate 3. Inflation rate 4. Exchange rates. 5. Balance of payments 6. Government budgets and deficits 7. Interest rates 8. Tax structure 9. Demographic factors Industry analysis The second face of fundamental analysis consists of a detailed analysis of a specific industry; its characteristics, its past record, its future prospects. An industry is a group of firms that have a similar technological structure of production and produce similar products. The objective of industry analysis is to assess the prospects of various industrial groupings. The industry analysis should take into account the following factors. 1. Characteristics of the Industry 2. Stage in Industry life cycle 3. Government policy 4. Demand and market 5. Human resource 6. Future prospect Company or Corporate analysis Company analysis is a study of variables that influence the future of a firm both qualitatively and quantitatively. It is a method of assessing the competitive position of a firm, its earning and profitability, 2

the efficiency with which it operates its financial position and its future with respect to earning of its shareholders. Factors considered in company analysis:

Non financial aspects

Financial aspects

1. History and track record 2. Technology 3. Management 4. Human resource 5. Brand image 6. Competitive advantage 7. Infrastructure 8. Market share of the company.

1. Financial statement comparison. 2. Dividend 3. Earnings per share 4. Price earnings ratio 5. Book value 6. Key ratio analysis.

Fundamental analysis can be used to identify companies that represent good value. Hence it is good for long term investments.

TECHNICAL ANALYSIS
Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. The field of technical analysis is based on three assumptions: 1. 2. 3. The market discounts everything. Price moves in trends. History tends to repeat itself.

Tools of technical analysis: 1. Charting techniques 2. Trend 3

3. Volume Movements 4. Moving average 5. Bollinger Bands 6. Relative strength index 7. Rate of change of price and volumes (ROC) Charting Techniques In technical analysis, charts are similar to the charts that you see in any business setting. A chart is simply a graphical representation of a series of prices over a set time frame.

Types of charts: 1. Line Chart 2. Bar chart 3. Candle stick chart 4. Point and figure chart Technical Analysis: The Use Of Trend One of the most important concepts in technical analysis is that of trend. The meaning in finance isn't all that different from the general definition of the term - a trend is really nothing more than the general direction in which a security or market is headed

Types of Trend There are three types of trend:

Uptrends Downtrends Sideways/Horizontal Trends As the names imply, when there is little movement up or down in the peaks and troughs, it's a sideways or horizontal trend.

Trend Lengths

Along with these three trend directions, there are three trend classifications. A trend of any direction can be classified as a long-term trend, intermediate trend or a short-term trend. The major trend is generally categorized as one lasting longer than a year. An intermediate trend is considered to last between one and three months and a near-term trend is anything less than a month. A long-term trend is composed of several intermediate trends, which often move against the direction of the major trend. If the major trend is upward and there is a downward correction in price movement followed by a continuation of the uptrend, the correction is considered to be an intermediate trend. The short-term trends are components of both major and intermediate trends.

MOVING AVERAGES
Most chart patterns show a lot of variation in price movement. This can make it difficult for traders to get an idea of a security's overall trend. One simple method traders use to combat this is to apply moving averages. A moving average is the average price of a security over a set amount of time. By plotting a security's average price, the price movement is smoothed out. There are two types of moving averages 1. Simple moving average 2. Exponential moving average Simple moving average:

SMA: Time period share price sum / Time period

Exponential moving average:

SMA: Time period share price sum / Time period

5 Multiplier: (2 / (Time periods + 1) )

EMA: {Close - EMA(previous day)} x multiplier + EMA(previous day).

BOLLINGER BANDS
The Bollinger Bands were introduced by J. Bollinger. They provide a visual channel of upper and lower bounds that prices tend to stay between. The channel calculation is based on variation about a statistical mean over a certain look back period. The channels are defined by the calculation of the standard deviation (sigma) of the input value. The upper band is some multiplication factor of Sigma added to a simple moving average of the input value for the same period as the Sigma calculation. The lower band is the value minus Sigma times a multiplication factor. The SMA is plotted as a dashed line and the upper and lower Bollinger Bands are plotted as thin, solid lines. A text note is added to the plot in the upper left corner showing the look back period and the upper and lower Bollinger Band Values. Bollinger Bands bring statistics into the problem of determining stock trading ranges and extremes. Standard deviation can be used to determine when a price move is statistically out of the ordinary. Using a multiplication factor of two means that approximately 95% of the time price should remain between the Bollinger Bands. The distance between the upper and lower bands is also an indication of the volatility of the issue. Usually when the bands tighten a relatively substantial price move is pending. The purpose of Bollinger Bands is to provide a relative definition of high and low. By definition prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions..Bollinger Bands consist of a set of three curves drawn in relation to securities prices .The middle band is a measure of the intermediate-term trend, usually a simple moving average, which serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same

CALCULATION Middle Bollinger Band = 20 day simple moving average Upper Bollinger Band = Middle Bollinger Band + (2 * 20 day standard deviation) Lower Bollinger Band = Middle Bollinger Band (2 * 20 day standard deviation)
data that were used for the average.

RELATIVE STRENGTH INDEX

The relative strength index (RSI) is another one of the most used and well-known momentum indicators in technical analysis. RSI helps to signal overbought and oversold conditions in a security. The indicator is plotted in a range between zero and 100. A reading above 70 is used to suggest that a security is overbought, while a reading below 30 is used to suggest that it is oversold. This indicator helps traders to identify whether a securitys price has been unreasonably pushed to current levels and whether a reversal may be on the way.
100 RSI = 100 - -------1 + RS RS = Average Gain / Average Loss

THE RATE OF CHANGE (ROC)

The Rate-of-Change (ROC) indicator, which is also referred to as simply Momentum, is a pure momentum oscillator that measures the percent change in price from one period to the next. The ROC calculation compares the current price with the price "n" periods ago. The plot forms an oscillator that fluctuates above and below the zero line as the Rate-of-Change moves from positive to negative. As a momentum oscillator, ROC signals include centerline crossovers, divergences and overbought-oversold readings.

Calculation: ROC = [(Close - Close n periods ago) / (Close n periods ago)] * 100

1.2 ORGANISATION PROFILE

Belair is provider of integrated financial services including Funds management, Insurance, Investment, Share broking & Property Management. The Group is established in the year 1999, with the key financial objective to have Total Shareholder Return in the top quartile. Our focus on building a sustainable business has long ensured our success. Over the years our sustainability program has been integral in helping us achieve the Groups strategic priorities. Belair has a strong Customer base with its every growing branches and Franchises. Belair has successfully built a land bank over a period of time. Belair corporation Pvt Ltd is a Member of the National Stock Exchange (NSE) and the leading Commodity Exchange MCX. We are also a depository participant with CDSL. Belair also represents TATA AIG, Reliance in Marketing there insurance products. The company also does Mutual funds and other distributions of Financial product

Belair Logo:

Belair Mission:
Commitment to attain the status of premier retail financial services company, by providing a superior financial solutions to its customers, enhanced value to its stake holders and employees.

Why choose Belair?

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Belair account management teams develop personal and long term relationships with their clients to build mutual trust and gain a deeper understanding of their clients' private and business planning needs. The foundation of our strength is our commitment to consistently provide top quality and unsurpassed service. We believe that high quality is about much more than delivering the agreed services at the agreed time. It comprises working in close collaboration with our client; assist with the successful management of their overall business objectives and providing insight into their developing and dynamic business environment. Belair is wholly independent and privately owned. This eliminates the risk of any conflicts of interest arising from the cross-selling of investment advisory, insurance and property services. As a fully integrated company rather than a partnership, we provide our clients with strong central direction and integrated, unbiased teamwork between our networks of offices. We are committed to providing a non-competing environment of trust and integrity which plays a major role in the business efforts of clients. We understand and anticipate the needs and their relationship with clients. We work hand-in-hand to deliver the best possible solutions. Our successes result from our teams of local jurisdictional experts who thoroughly understand all the different markets in which we are active Belair Group of companies: 1. Belair Corporation Pvt. Ltd 2. Belair Commodities India Pvt. Ltd 3. Belair Homes Pvt. Ltd Financial services offered by belair: 1. Equity 2. Commodity 3. IPO 4. Depository services 5. Mutual funds 6. Insurance 7. Real estate 8. Portfolio management services
9. Online trading

1.3 OBJECTIVES OF THE STUDY

Primary Objectives:
To do fundamental and technical analysis of equity shares in IT industry.

Secondary objectives:
To analyze the equities of top three Indian IT companies in CNX IT listing through fundamental and technical analysis. To study the current scenario of Indian economy.
To analyze the future potential of IT Industry in India.

To study the benefits and risks associated with the long term investments in those top IT companies. To do technical analysis to find the short term benefits and risks associated with the IT sector equities. To predict the future movements of scrip prices through charting techniques. To analyze the growth potential of those equities through technical indicators.

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1.4 SCOPE OF THE STUDY

This study analysis the shares of IT sector alone.

This study analysis only the equities and omits the other forms of securities. This study will be useful only for the investors those who invest in equities.
IT Industry equities are analyzed through National stock Exchange of India and not

stepped in to BSE and other stock exchanges. Only NSE indices (CNX IT) are used.

1.5 LIMITATIONS OF THE STUDY

There is a time constraint. This study is limited with some basic tools of fundamental and technical analysis. Even though this study tries to attempt the futures scrip movements, nobody can predict the volatile share market. This study is widely based on secondary data.

No personal contacts with stakeholders of companies also a limitation for analyzing the project.

REVIEW OF LITERATURE
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1. According to Warren buffet, one of a successful investor in wall street Share is a portion of ownership in a corporation. The holder of a stock is entitled to the company's earnings and is responsible for its risk for the portion of the company that each stock represents. The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. Thats what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing
2. According to Theodore Roosevelt at a Message to Congress in 1908

There is no moral difference between gambling at cards or in lotteries or on the race track and gambling in the stock market.
3. According to Kenneth L Fisher, stock market guru

Most investors dont even stop to consider how much business a company does. All they look at are earnings per share and net assets per share.
4. According to Jesse Livermore

The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements. 5. According to Benjamin Graham, Economist and professional investor "The essential point (of intrinsic value) is that security analysis does not seek to determine exactly what the intrinsic value of a given security is. It needs only to establish either that the value is adequate -e.g., to protect a bond or to considerable lower than the market price. For such purposes an indefinite and approximate measure of the intrinsic value may be sufficient."
6. According to Charles Dow, editor of Wall street journal

Stock market discounts everything.

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No single investor can influence the stock market. But he can if he buys large quantity of shares. One can understand the stock market but cannot predict it
7. According to Mehraboon J.Irani Vice president, Equity Darashaw & co

Indian economy is doing quite positive and I expect it to grow between 8.5 to 10 percent for at least the next three to four years. One cause for concern is the rate of interest which I think is an off shoot of inflation which itself is part of growth in any economy. Inflation generally grows with the growth of the economy and this is the trend which has been noticed, however it is a concern going forward 8. According to Michal Parness, Founder & CEO of Trendfund.com Investors dont Make Money in the Stock Market. One reason the institutions make so much money is that they are trading. They make money every time you buy or sell. They make money whether you win or lose. That means that when youre investing, youre basically just sitting there. Youre not going anywhere. Youre not making money as an investor.

9. Trading the Trend: The Only Way to Make Money in the Market If you dont know this already, Trend Trading means trading trends based on human emotions. Not lagging indicators. Not complex statistical analysis and not Ph.D. level mathematical equations. With trend trading, you look for market movement. That could mean stocks that are going to move up or down during the course of a day (intraday). Youll play the gaps up and down, often several days a week. The Trend trading means being aware and taking advantage of trends like the run ups that happen around earning sessions. These are trends that have worked time and time again in the market. They consistently yield results

RESEARCH METHODOLOGY
3.1 Research Problem:

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To analyze the stock market of IT sectors and to help the short term as well as long term investors in the investment decision in IT sectors of the Indian scenario through fundamental and technical analysis. 3.2 Research Design: The research has been based on secondary data analysis. The study has been exploratory as it aims at examining the secondary data for analyzing the previous researches that have been done in the area of technical and fundamental analysis of stocks. The knowledge thus gained from this preliminary study forms the basis for the further detailed Descriptive research. In the exploratory study, the various technical indicators that are important for analyzing stock were actually identified and important ones short listed. 3.3 Data collection method: 1. Primary data: Primary data are collected by regularly monitoring the share market. Though the number of stock exchanges in India are plural, research work is carried on in the NSE (National stock exchange of India) in the CNX IT listing. 2. Secondary data: The share prices of Infosystech, Wipro and TCS for a period of five years was collected from the data base National Stock Exchange. The historical Nifty movement was collected from National Stock Exchange. The economy related data were collected from Reserve bank of India and Ministry of finance. The financial statements of the IT companies were collected from their respective websites . Time frame of research: The research has been done for a period of six months. However the time for the data collection of this research is as follows: Fundamental analysis: Past five year data from various secondary sources Technical analysis: Three months data from various primary and secondary sources 3.4 Research Population: This research is done in CNX IT. The companies listed in NSE CNX IT are the population. NSE CNX IT Sector Index

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CNX IT Index is an index comprised of the most liquid and large capitalization IT stocks, traded on the NSE, engaged in the business of software or hardware. CNX IT provides investors and market intermediaries with an appropriate benchmark that captures the performance of the IT segment of the market. The index is a market capitalization weighted index with base date being 1st January 1996 and base index value being 1000. Companies selected in the index have to be IT stocks which should rank high in terms of market value represented by their market capitalization and liquidity. List of CNX IT companies:
1. CMC Ltd., 3. Core Projects & Technologies Ltd 5. Educomp Solutions Ltd 7. Financial Technologies (India) Ltd 9. Firstsource Solutions Ltd 11. GTL Ltd 13. HCL Infosystems Ltd 15. HCL Technologies Ltd 17. Infosys Technologies Ltd 19. MindTree Ltd 2. Moser Baer India Ltd 4. MphasiS Ltd 6. Oracle Financial Services Software Ltd 8. Patni Computer Systems Ltd 10. Polaris Software Lab Ltd 12. Rolta India Ltd.,COMPUTERS 14. Tata Consultancy Services Ltd 16. Tech Mahindra Ltd 18. Tulip Telecom Ltd 20. Wipro Ltd

3.5 Research Sample: Samples of three from the list of twenty IT companies were chosen for the study on the basis of share prices and volume traded. They are as follows: 1. Infosys Technologies Ltd 2. Tata Consultancy Services Ltd 3. Wipro Ltd

DATA ANALYSIS AND INTERPRETATION

FUNDAMENTAL ANALYSIS
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ECONOMIC ANALYSIS:
Overview of Indian Economy
The Economy of India is the eleventh largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). The country's per capita GDP (PPP) is $3,290 (IMF, 127th) in 2010. Following strong economic reforms from the socialist inspired economy of a post-independence Indian nation, the country began to develop a fast-paced economic growth, as free market principles were initiated in 1990 for international competition and foreign investment. Economists predict that by 2020, India will be among the leading economies of the world. Overview

India was under social democratic policies from 1947 to 1991. The economy was characterized by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the country toward a market-based economy. A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalize business regulations. By 2008, India had established itself as the world's second-fastest growing major economy. India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany. Previously a closed economy, India's trade and business sector has grown fast. India currently accounts for 1.5% of world trade as of 2007 according to the WTO. According to the World Trade Statistics of the WTO in 2006, India's total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion

GDP Growth Rate of India

Table No 1

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Chart No 1

Interpretation: The Gross Domestic Product (GDP) in India expanded 8.90 percent in the third quarter of 2010 over the previous quarter. From 2004 until 2010, India's average quarterly GDP Growth was 8.40 percent reaching an historical high of 10.10 percent in September of 2006 and a record low of 5.50 percent in December of 2004. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points.

Industrial Growth Rate

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Industry accounts for 28% of the GDP and employ 14% of the total workforce. In absolute terms, India is 12th in the world in terms of nominal factory output. The Indian industrial sector underwent significantly changes as a result of the economic reforms of 1991, which removed import restrictions, brought in foreign competition, led to privatization of certain public sector industries, liberalised the FDI regime, improved infrastructure and led to an expansion in the production of fast moving consumer goods. Post-liberalization, the Indian private sector was faced with increasing domestic as well as foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced employment generation even by smaller manufacturers who earlier relied on relatively labourintensive processes. Textile manufacturing is the second largest source of employment after agriculture and accounts for 20% of manufacturing output, providing employment to over 20 million people. Ludhiana produces 90% of woollens in India and is known as the Manchester of India. Tirupur has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear. India is 13th in services output. The services sector provides employment to 23% of the work force and is growing quickly, with a growth rate of 7.5% in 19912000, up from 4.5% in 195180. It has the largest share in the GDP, accounting for 55% in 2007, up from 15% in 1950. Information technology and business process outsourcing are among the fastest growing sectors, having a cumulative growth rate of revenue 33.6% between 199798 and 200203 and contributing to 25% of the country's total exports in 200708. The growth in the IT sector is attributed to increased specialization, and an availability of a large pool of low cost, but highly skilled, educated and fluent English-speaking workers, on the supply side. This is matched on the demand side by an increased demand from foreign consumers interested in India's service exports, or those looking to outsource their operations. The share of the Indian IT industry in the country's GDP increased from 4.8 % in 2005 06 to 7% in 2008. In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world. Tourism in India is relatively undeveloped, but growing at double digits. Some hospitals woo medical tourism.

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Organised retail supermarkets accounts for 24% of the market as of 2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods from state to state, and even within states. Mining forms an important segment of the Indian economy, with the country producing 79 different minerals (excluding fuel and atomic resources) in 200910, including iron ore, manganese, mica, bauxite, chromite, limestone, asbestos, fluorite, gypsum, ochre, phosphorite and silica sand.

DEMOGRAPHICS OF INDIA
Population: 1,173,108,018 (July 2010 est.) Age structure 0-14 years: 30.5% (male 187,197,389/female 165,285,592)

15-64 years: 64.3% (male 384,131,994/female 359,795,835) 65 years and over: 5.2% (male 28,816,115/female 31,670,841) (2010 est.) Literacy: Definition: age 15 and over can read and write

Total population: 61% Male: 73.4% Female: 47.8% (2001 census)

Inflation Rate of India

Table No 2

Chart No 2

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INTERPRETATION: The inflation rate in India was last reported at 9.47 percent in December of 2010. From 1969 until 2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy.

Balance of Trade of India

Table No 3

Chart No 3

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INTERPRETATION: India reported a trade deficit equivalent to 8900 USD Millions in December of 2010. India is leading exporter of gems and jewelry, textiles, engineering goods, chemicals, leather manufactures and services. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Other imported products are: machinery, gems, fertilizers and chemicals. Main trading partners are European Union, The United States, China and UAE.

Government Budget of India

Table No 4

Chart No 4

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INTERPRETATION: India reported a government budget deficit equivalent to 5.50 percent of the Gross Domestic Product (GDP) in 2010. Government Budget is an itemized accounting of the payments received by government (taxes and other fees) and the payments made by government (purchases and transfer payments). A budget deficit occurs when a government spends more money than it takes in. The opposite of a budget deficit is a budget surplus.

Interest Rate of India

Table No 5

Chart No 5 22

INTERPRETATION: The benchmark interest rate (reverse repo) in India was last reported at 5.5 percent. In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official interest rate is the benchmark repurchase rate. From 2000 until 2010, India's average interest rate was 5.82 percent reaching an historical high of 14.50 percent in August of 2000 and a record low of 3.25 percent in April of 2009.

Indian Rupee Exchange Rate Chart (USDINR)

Table No 6

Chart No 6

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INTERPRETATION: The Indian Rupee exchange rate (USDINR) depreciated 2.29 percent during the last 12 months. From 1973 until 2011 the USDINR exchange averaged 29.48 reaching an historical high of 51.97 in March of 2009 and a record low of 7.19 in March of 1973. The Indian Rupee spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the INR. While the Indian Rupee spot exchange rate is quoted and exchanged in the same day, the Indian Rupee forward rate is quoted today but for delivery and payment on a specific future date

TAX STRUCTURE OF INDIA

The Tax Structure in India is quite strong and follows the financial year. The taxation under the tax structure in India is applicable for any kind of income pertaining to a person working as an employee under the public sector units, private sector units, foreign companies in India, Departments of the State Governments of India, and Departments of the Central Government of India or self employed individuals engaged in commercial activities which is legal in nature. The several corporations engaged in commercial activities also come under the taxation. The public bodies, state governments and central government have clear demarcation of their functioning. The central government imposes tax on all kinds of income such as central
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excise, customs duties, and service tax apart from income pertaining to agriculture. The State Governments of India is responsible for imposing tax pertaining to Value Added Tax (VAT), sales tax, income from agriculture, state excise duty, stamp duty, professional tax, land revenue, etc. Taxes imposed by the local bodies are pertaining to octroi tax, water supply utilities, drainage and sewage utilities, property tax, etc.

Different taxes levied under tax structure in India:

Tax Direct Tax Personal Income Tax on corporate Excise duty Customs Duty Tax levied Tax by or state Value

Income Capital gains tax Indirect Tax Service tax

governments Sales tax

Added Tax Securities Other tax

transaction

The different heads of income for tax structure in India:

Salary House property Profit in business or profession Capital gains
Other sources

INDUSTRY ANALYSIS Information technology industry

The Information Technology industry has emerged as one of the most important industries in the Indian economy contributing significantly to the growth of the economy. The IT industry of India got a major boost from the liberalization of the Indian economy. India's software exports have grown at an annual average rate of more than 50% since 1991. The structure of the IT industry is quite different from other industries in the Indian economy. The IT industry of India is hugely dependant on skilled manpower. Primarily a knowledge based industry, the IT industry of India has reordered significant success due to the huge availability of skilled personnel in India.
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The industry structure in the IT sector has four major categories. These are: IT services IT enabled services Software products Hardware

STAGE IN INDUSTRY LIFE CYCLE

INTERPRETATION:

Indian IT industry is in the growth stage since last five years It is growing at a fast phase.

SWOT ANALYSIS OF INDIAN IT SECTOR

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Government Initiatives
The government has constituted the Technical Advisory Group for Unique Projects

(TAGUP) under the chairmanship of Nandan Nilekani. The Group would develop IT infrastructure in five key areas, which includes the New Pension System (NPS) and the Goods and Services Tax (GST)
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 The government set up the National Taskforce on Information Technology and Software

Development with the objective of framing a long term National IT Policy for the country
Enactment of the Information Technology Act, which provides a legal framework to

facilitate electronic commerce and electronic transactions

Setting up of Software Technology Parks of India (STPIs) in 1991 for the promotion of

software exports from the country, there are currently 51 STPI centers where apart from exemption from customs duty available for capital goods there are also exemptions from service tax, excise duty, and rebate for payment of Central Sales Tax. But the most important incentive available is 100 per cent exemption from Income Tax of export profits, which has been extended till 31st March 2011
Government is also setting up Information Technology Investment Regions (ITIRs). These

regions would be endowed with excellent infrastructure and would reap the benefits of cositting, networking and greater efficiency through use of common infrastructure and support services.
Moreover, according to NASSCOM government, IT spend was US$ 3.2 billion in 2009 and

is expected to reach US$ 5.4 billion by 2011. Further, according to NASSCOM, there is US$ 9 billion business opportunity in e-governance in India.
The government has recently relaxed employment visa norms for the IT and ITeS sectors,

allowing companies in these sectors to employ foreign nationals as per their requirements, effectively removing the ceiling of 20 such employees per company. Companies would need to provide a declaration that the skilled worker has been hired for working in an IT or ITeS company or a software technology park of India or special economic zone dedicated to IT or an IT unit in a multi-product zone, while the foreign worker being sponsored would have to give a declaration to the effect that his annual salary is in excess of US$ 25,000 per annum.

Export Promotion Schemes

Export Oriented Units (EOUs) Scheme: The purpose of the scheme was basically to boost exports by creating additional production capacity.

Electronics Hardware Technology Parks (EHTPs): Electronics Hardware Technology Park (EHTP) complexes can be set up by the Central Government, State Government,
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Public or Private Sector Undertakings or any combination thereof, duly approved by the Inter- Ministerial Standing Committee (IMSC) in the Ministry of Communication and Information Technology (Department of Information Technology).

Software Technology Parks (STPs): The Software Technology Parks of India (STPI) have been set up by the Ministry of Information Technology, Government of India and the International Technology Park in a joint project by the State Government.

Special Economic Zone (SEZ) Scheme: SEZs are being set up to enable hassle free manufacturing and trading for export purposes. Sales from Domestic Tariff Area (DTA) to SEZs are being treated as physical export. This entitles domestic suppliers to Drawback/ DEPB benefits, CST exemption and Service Tax exemption. Certain exemptions like Income Tax exemption on export profits is available to SEZ Units for 5 years, 50% for next 2 years and 50% of ploughed back profits for 3 years thereafter are available for units in these designated areas/zones.

Export Promotion Capital Goods (EPCG) Scheme: The EPCG Scheme allows import of capital goods for pre-production, production and postproduction (including CKD/SKD thereof) at 5% customs duty subject to export obligations.

Human resource of IT Industry India is considered as one of the major IT hub in the world. One of the major reason is its human resource availability Several multinational organizations are investing in India for its resource which is cheap as well as having abundant skill set. Abundant talent pool producing close to 6,75,000 technical graduates a year, of which 4,00,000 are engineers Future of Indian Information Technology Industry The current scenario in the IT industry of India and the tremendous growth registered in recent years has generated much optimism about the future of the Indian Information technology industry. Analysts are optimistic about the huge potential of growth in the Information Technology industry in India. According to a report prepared by McKinsey for NASSCOM, the exports component of the Indian industry is expected to reach US$ 175 billion in revenue by 2020. The domestic component will contribute US$ 50 billion in revenue by 2020. Together, the
29

export and domestic markets are likely to bring in US$ 225 billion in revenue, as new opportunities emerge in areas such as public sector and healthcare and as geographies including Brazil, Russia, China and Japan opt for greater outsourcing. The major areas of benefit that the future growth in the IT industry can generate are

Exports - The IT industry accounts for a major share in the exports from India. This is expected to grow further in coming years. The information technology industry is one of the major sources of foreign currency for India.

Employment - The biggest benefit of the IT industry is the huge employment it generates. For a developing country like India, with a huge population, the high rate of employment in the IT sector is a big advantage. More than 2.5 million people are employed in the sector either directly or indirectly, making it one of the biggest job creators in India and a mainstay of the national economy..

FDI (Foreign Direct Investment) - High inflow of FDI in the IT sector is expected to continue in coming years. The inflow of huge volumes of FDI in the IT industry of India has not only boosted the industry but the entire Indian economy in recent years. Software exports from India are expected to grow in coming years. New markets for

software exports from India have opened up in the Middle East, South and Southeast Asia, Africa, and Eastern Europe. Many developing countries are now using the Indian model for growth in the IT sector. Another important area of future growth for the IT industry of India is the domestic market. While exports dominate the IT industry at present, there is huge scope of growth in the domestic market in the future. The US recession has had its share of negative impacts on the Indian IT industry. However, the industry has faced the challenges posed by the global market and is sustaining its rate of growth. The focus for the future is to ensure that the benefits of the IT industry percolate to the grassroots levels.

COMPANY ANALYSIS INFOSYS TECHNOLOGIES LTD

30

Infosys Technologies Limited provides consulting and information technology services to clients globally by delivering end-to-end business solutions. Infosys provides solutions for a dynamic environment where business and technology strategies converge. Its solutions include application development and maintenance, corporate performance management, enterprise quality services, infrastructure services, product engineering and systems integration. The company caters to industries such as banking and capital markets, automotive, healthcare, insurance, media and entertainment, utilities and transportation. Infosys has over 72,000 employees in over 40 offices worldwide. Founded Founder(s) : : 2 July 1981 (1981-07-02) N R Narayana Murthy Nandan Nilekani N. S. Raghavan Kris Gopalakrishnan S. D. Shibulal K Dinesh Ashok Arora Headquarters : Key people : Bengaluru, Karnataka, India N R Narayana Murthy (Chairman) Kris Gopalakrishnan (CEO & MD) S. D. Shibulal (COO & Director) Products Services : : Finacle Information technology consulting services, solutions and outsourcing.

KEY RATIO ANALYSIS

DIVIDEND PER SHARE OF INFOSYS
Chart No 7

31

Interpretation:

From the above chart it is inferred that investors always expect a good

return from the company. It is a good situation for the companys investors as the dividend per share is in its highest of Rs 60.

EARNINGS PER SHARE OF INFOSYS

Chart No 8

Interpretation:

Earnings per share are the profit generated per equity share. From the

above chart it is inferred that EPS has been increasing from the 2007 onwards and it is in its highest of Rs 112 in 2011.

DIVIDEND PAY OUT RATIO OF INFOSYS

Chart No 9

Interpretation: (53.45 %).

Dividend payout ratio is the percentage of profit declared as dividend to

equity share holders. The profit available for equity share holders was higher in the year 2011

PRICE EARNINGS RATIO OF INFOSYS

Chart No 10

Interpretation: P/E ratio reflects the price currently paid by the market for each rupee of currently reported EPS. From the above chart it is inferred that the year 2006-07 has shown a higher P/E ratio of 32.7 indicating the investors expectation and market appraisal of the firm. The current P/E Ratio is 25.93 which is normal.

OPERATING MARGIN OF INFOSYS

Chart No 11

Interpretation: stage (37.66).

Operating margin are the profit earned by the company through its operation.

It shows the operating efficiency of the company. Operating margin of Infosys is in the good

32

BOOK VALUE PER SHARE OF INFOSYS

Chart No 12

Interpretation:

From the above chart it is inferred that the book value of the share is

constantly increasing from Rs 195.14 on 2007 to Rs 426.85 in 2010. It is good for the investors who seek capitalization in their investment.

WIPRO LIMITED

Wipro Limited, headquartered at Bangalore, is a leading provider of IT solutions for customers across Americas, Europe, Asia, Australia and the Middle East. Wipro promoted by Azim Premji is a PCMM Level 5 and SEI CMM Level 5 certified IT services company. Wipro provides comprehensive research and development services, IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development and maintenance services to corporations globally. In its non-IT businesses, the company has a significant presence in consumer products and in infrastructure engineering. It also has a significant presence in toiletries and lighting products and solutions. Some of Wipro`s subsidiaries are Wipro Technologies, Wipro Infotech, Wipro Consumer Care and Lighting, Wipro GE Medical Systems Limited, Wipro Infrastructure Engineering and Wipro Biomed. Founded Founder(s) Headquarters : : : 1945 M. H. Premji Bangalore, Karnataka, India

33

Key people

Azim Premji (Chairman) T K Kurien (CEO)

Services

Application Development and Maintenance BPO Product Engineering Solutions Technology Infrastructure Services Consulting IT services IT consulting

Industry

KEY RATIO ANALYSIS

DIVIDEND PER SHARE OF WIPRO
Chart No 13

Interpretation:

From the above chart it is inferred that the dividend per share is

fluctuating with some small ups and downs. The current dividend per share is Rs 6.

EARNINGS PER SHARE OF WIPRO

Chart No 14

Interpretation:

From the above chart it is inferred that the earnings per share reaches its

maximum in 2011 (Rs33.37) form 2009 (Rs20.3) which is a good increase.

DIVIDEND PAY OUT RATIO OF WIPRO

Chart No 15

Interpretation: than dividend.

From the above chart it is inferred that the dividend payout ratio is

constantly decreasing. Buying this share is beneficial to investors who seek capitalization other

PRICE EARNING RATIO OF WIPRO

Chart No 16

34

Interpretation:

From the above chart it is inferred that the Price Earnings ratio is in its

maximum of 28.72 in 2007 and followed by a heavy fall on 2009 at 4.07 due to recession. The current P/E ratio is 13.46.

OPERATING MARGIN OF WIPRO

Chart No 17

Interpretation:

From the above chart it is inferred that the operating efficiency of the firm

is somewhat constant with little change. The operating margin reduced slightly in 2009 and 2010 and regained in 2011. The current Operating margin is 24%.

BOOK VALUE PER SHARE OF WIPRO

Chart No 18

Interpretation:

The book value of the share is increasing from Rs 63.86 in 2007 to Rs

120.49 in 2010 which is a massive increase. Long term investors tend to invest in such shares whose book value is constantly increasing. The book value reduced first time since five years in 2011 at Rs 86.64.

TATA CONSULTATING SERVICES

Tata Consultancy Services (TCS), a part of the Tata group, provides information technology and management consultation services to organizations in more than 53 countries. The company offers e-business, application development and maintenance, architecture and technology consulting, engineering, security, infrastructure development and management and quality consulting services. In addition, TCS offers software packages for electronic banking, insurance billing, customer relationship management, and hospital management. It caters to
35

finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, energy and utility industries. The company generates around 19% of its revenues from the manufacturing industry, and 6% of its revenues from its engineering and industrial services (EIS) business.. It has over 89,000 trained IT consultants in 47 countries. The company generated consolidated revenues of USD 4.3 billion for the fiscal year ended March 2007. TCS went public in 2004, raising USD 1.17 billion in one of the largest initial public offerings. Founded Headquarters Key people : : : 1968 Mumbai, Maharashtra, India Ratan Tata (Chairman) S Ramadorai (Vice Chairman) N. Chandrasekaran (CEO& MD) Products Systems Services : : TCS Bancs, Digital service products, Healthcare management Outsourcing BPO Software products IT services IT consulting

Industry

KEY RATIO ANALYSIS:

DIVIDEND PER SHARE OF TCS
Chart No 19

Interpretation:

From the above chart it is inferred that the dividend per share is constant

in Rupees fourteen in 2008 & 2009 and it rose to its maximum of Rupees twenty in 2010. The current DPS is Rs 14 per share.

EARNINGS PER SHARE OF TCS

Chart No 20

36

Interpretation: 38.62.

From the above chart it is inferred that

the

Earnings per share is

fluctuating between Rs 38 to Rs 48. It is decreased to Rs 28.62 in 2010. The current EPS is Rs

DIVIDEND PAY OUT RATIO OF TCS

Chart No 21

Interpretation:

From the above chart it is inferred that there is a massive increase in

Dividend payout ratio in 2010 (69.88%). The current DPS is 36.25% and thus indicates the company is investing its profit for future growth.

PRICE EARNING RATIO OF TCS

Chart No 22

Interpretation:

From the above chart it is inferred that the Price Earnings ratio was 28.72

in 2007 and followed by a heavy fall on 2009 at 10.92 due to recession. The present ratio is 37.49 which is the maximum.

OPERATING MARGIN OF TCS

Chart No 23

Interpretation:

From the above chart it is inferred that the operating margin was

constantly reduced from 2007 to 2009 but the rate of decrease is less. It started increasing in 2010. The current Operating margin is 31.55% which is the highest in past five years.

BOOK VALUE PER SHARE OF TCS

Chart No 24

Interpretation:

From the above chart it is inferred that the he book value of the share is

highly fluctuating. It reached its maximum of rupees 138.38 in 2009. In 2010 it was rupees 76.72 which is the lowest. The current Book value is Rs 99.53
37

TECHNICAL ANALYSIS - INFOSYSTCH

PRICE MOVEMENTS OF INFOSYSTCH
Chart No 25

Interpretation From the above chart it is inferred that the Infosys technologies shares were the highest priced shares amongst Indian IT industries. The shares reached their 52 week high of rupees 3499.00 in 4th January 2011. There is a downtrend from the month of January followed by sideway trend. There is a trend reversal at the end of March indicating an uptrend.
VOLUME MOVEMENTS OF INFOSYSTCH Chart No 26

Interpretation From the above chart it is inferred that the highest volume traded in three months is 20,60,815 on 13th January 2011 and the lowest is 3,65,048 on 16th February. The average volume traded is 10,65,838. The volume movements seem to be healthy. MOVING AVERAGES OF INFOSYSTCH
Table No 7 Date Pric e
10dy SMA 20da y SMA
Smoothi ng constan t

20da y EMA

Dat e

Pric e

10d y SMA

20da y SMA

Smooth ing constan t

20da y EMA

38

3-Jan

3458. 4 3481. 5 3459. 6 3478. 2 3370. 8 3395. 8 3325. 7 3377. 3 3205. 2 3204. 3 3268. 8 3323

3391

0.182

3382. 4 3400. 4 3411. 2 3423. 4 3413. 8 3410. 5 3395. 1 3391. 9 3357. 9 3330

16Feb 17Feb 18Feb 21Feb 22Feb 23Feb 24Feb 25Feb 28Feb 1-Mar

3103

3089

3144

0.182

3103. 3 3105. 1 3104. 2 3115. 3 3120. 1 3112. 6 3093. 7 3078

4-Jan

3406

0.182

3113. 4 3100. 3 3165. 3 3141. 9 3078. 8 3008. 8 3007. 3 2997. 1 3082. 4 3026. 1 3062. 2 3042. 7 3116. 3 3095. 5 3090. 3 3053. 9 3100. 8 3030. 2 3030. 9 2978. 7

3088

3137

0.182

5-Jan

3419

0.182

3094

3128

0.182

6-Jan

3430

0.182

3101

3124

0.182

7-Jan

3430

0.182

3106

3117

0.182

10-Jan

3432

3362

0.182

3101

3108

0.182

11-Jan

3426

3372

0.182

3096

3098

0.182

12-Jan

3424

3382

0.182

3093

3090

0.182

13-Jan

3400

3383

0.182

3082

3084

0.182

3063. 3 3066. 8 3059. 4 3059. 9 3056. 8 3067. 6 3072. 7 3075. 9 3071. 9 3077. 1 3068. 6 3061. 7 3046. 6

14-Jan

3376

3378

0.182

3080

3084

0.182

17-Jan

3357

3374

0.182

3318. 9 3319. 6 3306. 9 3304. 9 3293. 8 3292. 1 3286. 2 3270

3-Mar

3072

3081

0.182

18-Jan

3341

3374

0.182

4-Mar

3067

3078

0.182

19-Jan

3249. 6 3295. 9 3243. 9 3284. 7 3259. 7 3196. 9 3168. 2 3117. 7 3089. 2

3320

3370

0.182

7-Mar

3061

3078

0.182

20-Jan

3302

3366

0.182

8-Mar

3056

3079

0.182

21-Jan

3289

3360

0.182

9-Mar

3052

3079

0.182

24-Jan

3278

3355

0.182

10Mar 11Mar 14Mar 15Mar 16Mar 17Mar

3053

3077

0.182

25-Jan

3271

3349

0.182

3057

3077

0.182

27-Jan

3253

3338

0.182

3067

3080

0.182

28-Jan

3249

3325

0.182

3251. 5 3227. 1 3202. 1

3070

3076

0.182

31-Jan

3241

3308

0.182

3065

3072

0.182

1-Feb

3223

3290

0.182

3060

3066

0.182

39

2-Feb

3089. 3 3117. 6 3047. 9 3087. 5 3096. 6 3130. 7 3053. 2 3040. 9 3104. 6 3106. 6

3199

3270

0.182

3181. 6 3169. 9 3147. 7 3136. 8 3129. 5 3129. 7 3115. 8 3102. 2 3102. 6 3103. 3

18Mar 21Mar 22Mar 23Mar 24Mar 25Mar 28Mar 29Mar 30Mar 31Mar

2941. 1 2922. 3 2943. 1 2993. 4 3002. 8 3163. 1 3139. 6 3173. 4 3170. 9 3241. 3

3048

3058

0.182

3027. 5 3008. 3 2996. 5 2995. 9 2997. 2 3027. 3 3047. 7 3070. 6 3088. 8 3116. 5

3-Feb

3186

3253

0.182

3036

3049

0.182

4-Feb

3161

3232

0.182

3019

3038

0.182

7-Feb

3146

3217

0.182

3008

3030

0.182

8-Feb

3127

3202

0.182

3000

3026

0.182

9-Feb

3114

3193

0.182

3011

3034

0.182

10-Feb

3100

3177

0.182

3014

3041

0.182

11-Feb

3087

3168

0.182

3029

3049

0.182

14-Feb

3086

3163

0.182

3043

3054

0.182

15-Feb

3087

3155

0.182

3069

3065

0.182

MOVING AVERAGES OF INFOSYSTCH

Chart No 25

40

Interpretation: From the above chart it is inferred that the price line cuts the 10day simple moving average curve (SMA 10) and 20 day simple moving average curve (SMA 20) from below shows the trend reversal at the end of March. The 10 day SMA cuts the 20 day SMA from below also confirms the bullish trend.

BOLLINGER BANDS OF INFOSYSTCH Table No 8

Dat e Pric e Middl e band 20 20 day Std dev Uppe r band Low er ban d Dat e Pric e Middl e band 20 20 day Std dev Uppe r band Lowe r band

41

day SMA
3-Jan 3458 16Feb 17Feb 18Feb 21Feb 22Feb 3362.4 96.01 3555 3170 23Feb 24Feb 25Feb 28Feb 1-Mar 3103

day SMA
3144.2 79.53 3303.2 2985

4-Jan

3482

3113

3137.4

75.96

3289.3

2985

5-Jan

3460

3100

3127.6

66.98

3261.5

2994

6-Jan

3478

3165

3123.6

62.18

3248

2999

7-Jan

3371

3142

3116.5

50.35

3217.2

3016

10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan 27Jan 28Jan 31Jan

3396

3079

3107.5

38.73

3184.9

3030

3326

3371.5

82.75

3537

3206

3009

3098.1

38.71

3175.5

3021

3377

3382.4

66.82

3516

3249

3007

3090

40

3170

3010

3205

3382.5

66.59

3516

3249

2997

3084

44.23

3172.5

2996

3204

3378

74.86

3528

3228

3082

3083.6

44.22

3172.1

2995

3269

3374

78.38

3531

3217

3-Mar

3026

3080.5

45.93

3172.3

2989

3323

3373.7

78.57

3531

3217

4-Mar

3062

3077.7

45.27

3168.3

2987

3250

3369.5

82.71

3535

3204

7-Mar

3043

3077.5

45.46

3168.4

2987

3296

3365.9

84.26

3534

3197

8-Mar

3116

3078.9

46.2

3171.3

2987

3244

3359.6

88.34

3536

3183

9-Mar

3096

3078.8

46.18

3171.2

2987

3285

3355

89.71

3534

3176

10Mar 11Mar 14Mar 15Mar 16Mar

3090

3076.8

44.73

3166.3

2987

3260

3348.8

91.8

3532

3165

3054

3076.9

44.71

3166.3

2987

3197

3338.4

96.52

3532

3145

3101

3079.9

44.2

3168.3

2991

3168

3324.5

99.91

3524

3125

3030

3076.1

45.09

3166.3

2986

3118

3308.2

105.6

3520

3097

3031

3072.3

45.55

3163.5

2981

42

1-Feb

3089

3289.8

109.9

3510

3070

17Mar 18Mar 21Mar 22Mar 23Mar 24Mar 25Mar 28Mar 29Mar 30Mar 31Mar

2979

3066.1

49.27

3164.7

2968

2-Feb

3089

3270.2

109

3488

3052

2941

3057.5

54.99

3167.5

2948

3-Feb

3118

3253.1

104.7

3462

3044

2922

3048.6

61.38

3171.4

2926

4-Feb

3048

3231.6

100.3

3432

3031

2943

3037.5

59.34

3156.2

2919

7-Feb

3088

3217.4

99.66

3417

3018

2993

3030.1

54.94

3140

2920

8-Feb

3097

3202.4

94.06

3391

3014

3003

3026.3

54.06

3134.4

2918

9-Feb

3131

3192.7

90.83

3374

3011

3163

3034

61.51

3157

2911

10Feb 11Feb 14Feb 15Feb

3053

3176.5

85.18

3347

3006

3140

3040.6

65.28

3171.2

2910

3041

3168.3

89.82

3348

2989

3173

3049.4

70.5

3190.4

2908

3105

3163.3

90.45

3344

2982

3171

3053.8

75.06

3204

2904

3107

3155.2

87.86

3331

2980

3241

3064.6

85.07

3234.7

2895

BOLLINGER BANDS OF INFOSYSTCH

Chart No 26

43

Interpretation From the above chart it is inferred that the price line along with the Bollinger bands indicates that there is a silent market in the month of March followed by a little noisy market. There is volatility in the prices at the end of March. The price line cuts the upper Bollinger bands and thus signals the bullish trend.

RELATIVE STRENGTH INDEX OF INFOSYSTCH

Table No 9

44

Date
03Jan 04Jan 05Jan 06Jan 07Jan 10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan 27Jan 28Jan 31Jan

Close Price 3458. 35 3481. 45 3459. 6 3478. 15 3370. 75 3395. 75 3325. 7 3377. 3 3205. 2 3204. 3 3268. 8 3323

Gai n

Los s

Avg gain

Avg loss

RS

RSI

Date
16Feb

Close Price 3103

Gain
0

Los s
3.55

Avg gain 12.6 4 13.3 8 13.3 8 18.0 1 18.0 1 15.9 9 15.9 9 13.1 6 12.5 1 16.1 6 16.1 6 18.7 4 14.1 9 19.3 1 19.3 1 18.5 7 18.5 7 17.2 8 17.2 8 17.3 3

Avg loss 19.3 4 17.2 9 14.6 2 12.5 8 14.2 5 18.7 6 18.7 8 18.8 9 19.6 1 19.6 1 18.1

RS
0.6 5 0.7 7 0.9 1 1.4 3 1.2 6 0.8 5 0.8 5 0.7

RSI
39.5 1 43.6 2 47.7 8 58.8 8 55.8 2 46.0 1 45.9 8 41.0 7 38.9 4 45.1 8 47.1 8 52.1 2 43.2 7 50.9 2 49.3 2 47.8 7 45.9

23.1

17Feb 18Feb 21Feb 22Feb 23Feb 24Feb 25Feb 28Feb 01Mar 03Mar 04Mar 07Mar 08Mar 20.2 3 21.5 35.5 5 35.5 5 35.7 8 40.2 6 34.6 4 38.2 5 0.5 7 0.6 36. 27 37. 68 37. 53 33. 38 36. 8 32. 47 09Mar 10Mar 11Mar 14Mar 15Mar 16Mar

3113.3 5 3100.3

10.35

21.9

13.1

18.5 5 0

3165.2 5 3141.8 5 3078.8

64.95

107

23.4

25

63.1

70.1

3008.8

70

51.6

3007.3

1.5

172

2997.1

10.2

0.6 4 0.8 2 0.8 9 1.0 9 0.7 6 1.0 4 0.9 7 0.9 2 0.8 5 0.7 9 0.6 8 0.8 4

0.9

3082.4

85.3

64.5

3026.1

56.3

54.2

3062.2

36.1

17.2 2 18.6 1 18.6 1 19.8 4 20.2 2 21.8 8 21.8 8 25.2 6 20.7 5

3249. 6 3295. 9 3243. 85 3284. 65 3259. 65 3196. 9 3168. 15 3117. 7

73.4

3042.7

19.5

46.3

3116.3

73.6

52.1

3095.5

20.8

40.8

3090.2 5 3053.9

5.25

25

21.5

0.6

36.4

62.8

20.1 7 20.1 7 18.3 9

0.5

3100.8

46.9

44.1 2 40.6 2 45.5 1

28.8

0.5 8 0.4 8

3030.1 5 3030.9

70.7

50.5

0.75

45

01Feb 02Feb 03Feb 04Feb 07Feb 08Feb 09Feb 10Feb 11Feb 14Feb 15Feb

3089. 2 3089. 25 3117. 6 3047. 9 3087. 45 3096. 6 3130. 7 3053. 2 3040. 85 3104. 55 3106. 55

28.5

18.3 9 14.7

35.2 8 35.2 8 22.9 9 27.9

0.5 2 0.4 2 0.7 3 0.6

34. 26 29. 42 42. 12 37. 48 34. 88 29. 6 38. 47 27. 8 29. 98 33. 01 34. 9

17Mar 18Mar 21Mar 22Mar 23Mar 24Mar 25Mar 28Mar 29Mar 30Mar 31Mar

2978.7

52.2

17.3 3 17.3 3 17.3 3 12.7 2 16.3 1 14.4 1 25.8 6 20.6

19.4 8 22.0 6 22.6 8 22.6 8 18.6 5 18.6 5 17.2 6 18.9 4 17.4 5 17.2 5 14.6 6

0.8 9 0.7 9 0.7 6 0.5 6 0.8 7 0.7 7 1.5

47.0 8 44

0.05

2941.1

37.6

28.3 5 0

16.7 3 16.7 3 14.9 5 11.7 3 14.1 6 10.8 6 10.8 6 12.4 9 12.6 4

2922.3

18.8

43.3 2 35.9 4 46.6 6 43.5 8 59.9 7 52.1

69.7

2943.0 5 2993.3 5 3002.8

20.75

39.5 5 9.15

27.9

0.5 4 0.4 2 0.6 3 0.3 9 0.4 3 0.4 9 0.5 4

50.3

27.9

9.45

34.1

22.6 6 28.1 9 25.3 6 25.3 6 23.5 7

3163.0 5 3139.5 5 3173.3 5 3170.9

160.3

77.5

23.5

1.0 9 1.3 2 1.3 3 1.9 1

12.4

33.8

23.0 1 23.0 1 28.0 4

56.8 7 57.1 5 65.6 7

63.7

2.45

3241.3

70.4

RELATIVE STRENGTH INDEX OF INFOSYSTCH

46

Chart No 27

Interpretation From the above chart it is inferred that the there are two oversold conditions in the month of February 2011. The price line travels below the centre line most days. The price line is above the centre line at the end of March. It signals that the current trend is bullish.

RATE OF CHANGE OF INFOSYSTCH

Table No 10

47

Date
03-Jan 04-Jan 05-Jan 06-Jan 07-Jan 10-Jan 11-Jan 12-Jan 13-Jan 14-Jan 17-Jan 18-Jan 19-Jan 20-Jan 21-Jan 24-Jan 25-Jan 27-Jan 28-Jan 31-Jan 01-Feb 02-Feb 03-Feb 04-Feb 07-Feb 08-Feb

Close Price 3458.35 3481.45 3459.6 3478.15 3370.75 3395.75 3325.7 3377.3 3205.2 3204.3 3268.8 3323 3249.6 3295.9 3243.85 3284.65 3259.65 3196.9 3168.15 3117.7 3089.2 3089.25 3117.6 3047.9 3087.45 3096.6

ROC

Date
15-Feb 16-Feb 17-Feb 18-Feb 21-Feb 22-Feb 23-Feb 24-Feb 25-Feb

Close Price 3106.55 3103 3113.35 3100.3 3165.25 3141.85 3078.8 3008.8 3007.3 2997.1 3082.4 3026.1 3062.2 3042.7 3116.3 3095.5 3090.25 3053.9 3100.8 3030.15 3030.9 2978.7 2941.1 2922.3 2943.05 2993.35

ROC 0.560007 -0.46831 2.14738 0.416201 2.216948 0.35615 0.838465 -1.05398 -3.1325 -3.5232 -0.66387 -2.80245 -1.22891 -3.87173 -0.81322 0.542419 2.707059 1.549563 3.460011 -1.69511 0.15862 -2.7268 -3.33914 -6.22533 -4.92489 -3.13567

-7.34599 -6.10809 -3.94843 -6.57102 -2.22057 -4.47324 -1.23433 -3.48355 -0.25895 -1.12817 -4.62249 -7.03581 -4.93445 -5.40975 -6.04066 -6.00368 -5.00207

28-Feb 01-Mar 03-Mar 04-Mar 07-Mar 08-Mar 09-Mar 10-Mar 11-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar 21-Mar 22-Mar 23-Mar

48

09-Feb 10-Feb 11-Feb 14-Feb

3130.7 3053.2 3040.85 3104.55

-2.07076 -3.6283 -2.46496 0.496892

24-Mar 25-Mar 28-Mar 29-Mar 30-Mar 31-Mar

3002.8 3163.05 3139.55 3173.35 3170.9 3241.3

-1.67327 2.007546 3.610382 4.699924 6.452479 10.20707

RATE OF CHANGE OF INFOSYSTCH

Chart No 28

Interpretation: From the above chart it is inferred that the 10 day Rate of Change is fluctuating above and below the centre line from the beginning of the year. The rate of change crosses the centre line from below and signals the bullish trend. The rate of change stands at ten points which is relatively high in past three months.

TECHNICAL ANALYSIS - WIPRO

PRICE MOVEMENTS OF WIPRO Chart No 29

49

Interpretation: The share price declined from the beginning of this year. There is a trend reversal on 31st January 2011. The 52 week high, low are rupees 725 and rupees 372.10 respectively. There is a double top formation in the month of February. The trend is bullish in March. VOLUME MOVEMENTS OF WIPRO Chart No 3 Interpretation: From the above chart it is inferred that the highest volume of 39,10,042 shares were traded on 21st January. And the lowest volume was 2,62,430 on22nd March. The average volume traded in the period of three months is 14,77,700. MOVING AVERAGES OF WIPRO OF WIPRO
Table No 11

50

Date
03Jan 04Jan 05Jan 06Jan 07Jan 10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan 27Jan 28Jan 31Jan 01Feb 02Feb 03Feb 04Feb

Price
483.05 484.65 485.65 486.35 476.95 464.6 467.45 467.7 453.55 463.1 466.75 478.55 476.1 477.5 455.95 443.9 446.9 438.65 437.6 438.1 429.35 437.85 442 436.7

10dy SMA 485.495 485.41 486.245 486.93 486.28 484.23 481.84 479.76 476.12 473.305 471.675 471.065 470.11 469.225 467.125 465.055 463 460.095 458.5 456 452.26 448.19 444.78 440.7

20day SMA

Smoothin g constant

20day EMA 485.495

Date

Price

10dy SMA

20day SMA

0.1818 0.1818 0.1818 0.1818 0.1818 478.09 479.05 479.72 479.48 479.13 478.59 478.24 478.18 478.08 476.7 474.64 472.42 469.93 467.31 464.65 461.97 459.63 457.45 454.96 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818

Smoothi ng constan t

20day EMA

16-Feb 485.341 17-Feb 485.397 18-Feb 485.571 21-Feb 484.003 22-Feb 480.475 23-Feb 478.107 24-Feb 476.215 25-Feb 472.094 28-Feb 470.459 01-Mar 469.784 03-Mar 471.378 04-Mar 472.237 07-Mar 473.194 08-Mar 470.058 09-Mar 465.302 10-Mar 461.956 11-Mar 457.719 14-Mar 454.061 15-Mar 451.159 16-Mar 447.194 17-Mar 445.495 18-Mar 444.859 21-Mar 443.376 22-Mar

437.15 432.05 432.7 451.05 444.8 436.8 427.15 433.05 438.2 443.45 444.3 441.4 447.25 449 450.95 454.8 449.3 456.25 442.4 445.4 443.45 439.9 433.9 434.4

428.06 5 427.07 426.67 429.08 5 430.99 432.26 433.18 434.46 435.84 437.64 438.35 5 439.29 440.74 5 440.54 441.15 5 442.95 5 445.17 447.49 447.91 448.10 5 448.02 447.87 446.53 5 445.07 5

438.1 3 435.9 3 433.6 9 433.4 4 433.4 9 432.9 8 432.4 1 432.1 8 432.1 8 432.8 9 433.2 1 433.1 8 433.7 1 434.8 1 436.0 7 437.6 1 439.1 8 440.9 8 441.8 8 442.8 7 443.1 9 443.5 8 443.6 4 442.8 1

0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818

429.9 11 430.3 430.7 37 434.4 3 436.3 15 436.4 04 434.7 21 434.4 17 435.1 05 436.6 22 438.0 18 438.6 33 440.2 441.8 443.4 64 445.5 25 446.2 11 448.0 36 447.0 12 446.7 19 446.1 24 444.9 93 442.9 76 441.4 17

51

07Feb 08Feb 09Feb 10Feb 11Feb 14Feb 15Feb

426.9 425.75 424.1 417.95 420.25 424.4 425.45

437.795 435.98 433.7 431.63 429.895 428.525 428.135

452.46 450.52 448.35 445.86 444.2 442.26 440.2

0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818

440.38 437.72 435.244 432.099 429.945 428.937 428.303

23-Mar 24-Mar 25-Mar 28-Mar 29-Mar 30-Mar 31-Mar

436.6 439.65 455.9 461.9 463.5 472.85 480.2

443.64 442.12 5 442.78 5 443.35 445.46 448.20 5 451.88

442.4 442.5 4 443.9 8 445.4 2 446.6 9 448.1 6 449.9 5

0.1818 0.1818 0.1818 0.1818 0.1818 0.1818 0.1818

440.5 41 440.3 79 443.2 01 446.6 01 449.6 73 453.8 87 458.6 71

MOVING AVERAGES OF WIPRO

52

Chart No 31

Interpretation From the above chart it is inferred that the price line cuts the 10day simple moving average curve (SMA 10) and 20 day simple moving average curve (SMA 20) from below shows the trend reversal at the end of March. The 10 day SMA cuts the 20 day SMA from below also confirms the bullish trend.

BOLLINGER BANDS OF WIPRO

53

Table No 12

54

Date

Price

Middle band 20 day SMA

20 day Std dev

Upper band

Lower band

Date

Price

Middle band 20 day SMA 438.13 435.93 433.69 433.44 433.49 432.98 432.41 432.18 432.18 432.89 433.21 433.18 433.71 434.81 436.07 437.61 439.18

20 day Std dev

Upper band

Lower band

03Jan 04Jan 05Jan 06Jan 07Jan 10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan

483.0 5 484.6 5 485.6 5 486.3 5 476.9 5 464.6 467.4 5 467.7 453.5 5 463.1 466.7 5 478.5 5 476.1 477.5 455.9 5 443.9 446.9 478.09 479.05 479.72 479.48 479.13 478.59 478.24 478.18 478.08 476.7 474.64 472.42 12.29 10.53 9.302 9.899 10.34 10.68 10.56 10.57 10.57 11.52 13.37 14.09 502.6 6 500.1 2 498.3 2 499.2 7 499.8 499.9 5 499.3 6 499.3 2 499.2 1 499.7 5 501.3 9 500.5 9 453.5 1 457.9 9 461.1 1 459.6 8 458.4 6 457.2 2 457.1 1 457.0 4 456.9 4 453.6 5 447.9 444.2 5

16Feb 17Feb 18Feb 21Feb 22Feb 23Feb 24Feb 25Feb 28Feb 01Mar 03Mar 04Mar 07Mar 08Mar 09Mar 10Mar 11Mar

437. 15 432. 05 432. 7 451. 05 444. 8 436. 8 427. 15 433. 05 438. 2 443. 45 444. 3 441. 4 447. 25 449 450. 95 454. 8 449. 3

15.92 13.35 9.347 8.809 8.864 8.359 8.344 8.261 8.265 8.588 8.884 8.856 9.35 9.776 10.14 10.53 9.797

469.96 462.63 452.38 451.06 451.21 449.7 449.09 448.7 448.71 450.06 450.98 450.89 452.41 454.37 456.36 458.67 458.77

406.2 9 409.2 2 414.9 9 415.8 2 415.7 6 416.2 6 415.7 2 415.6 6 415.6 5 415.7 1 415.4 4 415.4 7 415.0 1 415.2 6 415.7 8 416.5 4 419.5 8

55

BOLLINGER BANDS OF WIPRO

Chart No 32

Interpretation: From the above chart it is inferred that there is a high volatility in share prices in the months of January and February followed by a silent market in the mid February and March. The price line exceeds the upper Bollinger band at the end of March signaling the overbought condition and confirms the bullish trend.

56

RELATIVE STRENGTH INDEX (RSI) OF WIPRO

57

Dat e

Clo se Pric e
448.1 5 454.4

Gai n

lo ss

Av g Gai n

Av g Lo ss

R S

RS I

Dat e

Clo se Pric e
437.1 5 432.0 5 432.7

Gai n

lo ss

Av g Gai n
2.31

Av g Lo ss
1.81

R S

RS I

13Dec 14Dec 15Dec 16Dec 20Dec 21Dec 22Dec 23Dec 24Dec 27Dec 28Dec 29Dec 30Dec 31Dec 03Jan 04Jan 05Jan 06Jan 07Jan

16Feb 6.25 0 17Feb 18Feb 21Feb 22Feb 23Feb 24Feb 25Feb 28Feb 01Mar 03Mar 04Mar 07Mar 08Mar 3.87 1.38 2.8 1 2.5 7 2.4 2 1.8 5 0.9 8 73.7 7 72 09Mar 10Mar 11Mar 14Mar 15Mar

11.7

1.2 8 1.1

56.0 6 52.3 8 52.5

5.1

2.31

2.1

458.4

0.65

2.32

2.1

1.1 1 1.7 7 1.2 1 0.8 9 0.8 1 1.1 8 1.3 6 1.5 5 1.9 1 1.6 6 1.7 2 1.7 4 1.4 3 1.8 5 1.5 1 1.1 6 0.9 4

470.0 5 477.6

11.7

451.0 5 444.8

18.4

3.63

2.05

63.9 5 54.8 1 47.1

7.55

6.2 5 8

3.03

2.49

485.5

7.9

436.8

2.73

3.07

477.3

8.2

427.1 5 433.0 5 438.2

9.6 5 0

2.73

3.38

44.7

479.5

2.2

5.9

3.15

2.68

54.0 7 57.5 6 60.7 9 65.6 2 62.4 5 63.1 9 63.4 8 58.8 9 64.9

483.4 5 485.1

3.95

5.15

3.52

2.59

1.65

443.4 5 444.3

5.25

3.89

2.51

491.3 5 488.5

6.25

0.85

3.95

2.07

2.8 5 0

441.4

2.9

3.79

2.28

489.9 5 491.2 5 483.0 5 484.6 5 485.6 5 486.3 5 476.9 5

1.45

447.2 5 449

5.85

3.91

2.28

1.3

1.75

3.96

2.28

8.2

450.9 5 454.8

1.95

3.26

2.28

1.6

3.54

1.38

3.85

3.54

1.91

3.32

1.38

70.7 2 64.8 7 49.4 3

449.3

5.5

3.49

2.31

60.2 2 53.7 2 48.4 5

0.7

2.54

1.38

456.2 5 442.4

6.95

2.68

2.31

9.4

2.05

13. 9

2.68

2.85

58

10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan 27Jan 28Jan 31Jan 01Feb 02Feb 03Feb 04Feb 07Feb 08Feb 09-

464.6

12. 4 0

1.44

2.93

0.4 9 0.7

32.9

16Mar 17Mar 18Mar 21Mar 22Mar 23Mar 24Mar 25Mar 28Mar 29Mar 30Mar 31Mar

445.4

2.89

2.28

1.2 7 1.6 7 1.2 5 0.8 7 0.7 3 0.7 7 0.9 4 1.2 8 1.4 2 1.4 1 1.5 9 2.2 2

55.9 4 62.6

467.4 5 467.7

2.85

1.64

2.34

41.1 7 39.0 3 26.6 4 34.7

443.4 5 439.9

1.9 5 3.5 5 6

2.89

1.73

0.25

1.5

2.34

0.6 4 0.3 6 0.5 3 0.4 8 0.7 7 0.7

2.47

1.98

55.4 9 46.6

453.5 5 463.1

14. 2 0

1.22

3.35

433.9

2.1

2.41

9.55

1.78

3.35

434.4

0.5

1.76

2.41

42.2 6 43.5 6 48.5 4 56.1 5 58.6 5 58.4 5 61.3 2 68.9 3

466.7 5 478.5 5 476.1

3.65

1.6

3.35

32.2 5 43.6 4 41.2 6 41.3 4 35.3 8 30.2 5 31.5 7 28.8 4 31.1 5 35.6 8 33.3 5 38.9 3 48

436.6

2.2

1.86

2.41

11.8

2.44

3.15

439.6 5 455.9

3.05

2.08

2.2

2.4 5 0

2.34

3.33

16.3

2.82

2.2

477.5

1.4

2.34

3.33

0.7

461.9

3.13

2.2

455.9 5 443.9

21. 6 12. 1 0

2.34

4.28

0.5 5 0.4 3 0.4 6 0.4 1 0.4 5 0.5 5 0.5

463.5

1.6

3.1

2.2

2.23

5.14

472.8 5 480.2

9.35

3.49

2.2

446.9

2.37

5.14

7.35

4.02

1.81

438.6 5 437.6

8.2 5 1.0 5 0

2.32

5.73

2.32

5.13

438.1

0.5

2.36

4.25

429.3 5 437.8 5 442

0.7 5 0

2.15

4.3

8.5

2.74

4.3

0.6 4 0.9 2 0.6 4 0.4 8 0.2 8 0.2

4.15

3.04

3.29

436.7

5.3

2.36

3.67

39.1

426.9

9.8

2.1

4.37

32.4 1 21.9 6 22.3

425.7 5 424.1

1.1 5 1.1

1.25

4.45

1.25

4.36

59

Feb 10Feb 11Feb 14Feb 15Feb 417.9 5 420.2 5 424.4 0

6 6.1 5 0 1.15 4.8

9 0.2 4 0.4

3 19.3 7 28.7 8 40.2 1 38.0 6

2.3

1.32

3.26

4.15

1.61

2.4

0.6 7 0.6 1

425.4 5

1.05

1.48

2.4

RELATIVE STRENGTH INDEX OF WIPRO

60

Chart No 33

Interpretation: From the above chart it is inferred that there are three oversold conditions, one in the month of January and two others in February. The RSI curve is travelling above the centre line indicating the bullish trend. The RSI touches the upper limit showing the future increase in price.

61

RATE OF CHANGE (ROC) OF WIPRO

Table No 14 Date 3-Jan 4-Jan 5-Jan 6-Jan 7-Jan 10-Jan 11-Jan 12-Jan 13-Jan 14-Jan 17-Jan 18-Jan 19-Jan 20-Jan 21-Jan 24-Jan 25-Jan 27-Jan 28-Jan 31-Jan 1-Feb 2-Feb 3-Feb 4-Feb 7-Feb Price 483.05 484.65 485.65 486.35 476.95 464.6 467.45 467.7 453.55 463.1 466.75 478.55 476.1 477.5 455.95 443.9 446.9 438.65 437.6 438.1 429.35 437.85 442 436.7 426.9 ROC -0.50463 1.539912 1.282586 0.599855 -1.68007 -5.44418 -4.30911 -4.54128 -7.6743 -4.13001 -3.69339 -1.46196 -2.10754 0.115316 -1.86182 -5.03797 -4.4473 -3.28519 -5.50637 -6.13819 -10.2811 -8.03403 -7.43455 -4.22195 -3.82969 62 Date 16-Feb 17-Feb 18-Feb 21-Feb 22-Feb 23-Feb 24-Feb 25-Feb 28-Feb 1-Mar 3-Mar 4-Mar 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar 21-Mar 22-Mar 23-Mar Price 437.15 432.05 432.7 451.05 444.8 436.8 427.15 433.05 438.2 443.45 444.3 441.4 447.25 449 450.95 454.8 449.3 456.25 442.4 445.4 443.45 439.9 433.9 434.4 436.6 ROC -1.09729 -1.0648 1.358632 5.942454 4.880924 4.510109 1.64188 2.038172 2.996827 1.441153 2.83532 2.010631 -0.84248 0.944245 3.239469 6.473136 3.752454 4.119124 -0.23678 0.24758 0.464431 -1.64338 -3.36303 -3.67003 -4.00176

8-Feb 9-Feb 10-Feb 11-Feb 14-Feb 15-Feb

425.75 424.1 417.95 420.25 424.4 425.45

-4.7326 -3.317 -4.4904 -4.07441 -1.15291 -2.83202

24-Mar 25-Mar 28-Mar 29-Mar 30-Mar 31-Mar

439.65 455.9 461.9 463.5 472.85 480.2

-2.14779 -0.07671 4.407776 4.063763 6.629834 9.161173

RATE OF CHANGE OF WIPRO

Chart No 34

Interpretation: From the above chart it is inferred that the Relative Strength Index is negative from the beginning of the year till the middle of February. There is a trend reversal in 18 th February followed by a negative trend in the month of March. The RSI crosses the centre line at the end of March and thus signal the Bullish trend.

TECHNICAL ANALYSIS - TCS

PRICE MOVEMENTS OF TCS Chart No 35 63

Interpretation: From the above chart it is inferred that the share price is falling in the month of January. The 52 week high, low were rupees 1220 and rupees 685.25 respectively. There is a pennant formation in the middle of February indicating high volatility in share price. There is a bullish price gap in the middle of March followed by an uptrend. VOLUME MOVEMENTS OF TCS
Chart No 36

Interpretation From the above chart it is inferred that a highest volume of 42,40,685 shares were traded on 18th January and the lowest volume was 7,02,521 on 3rd January 2011. The average volume traded in the period of three months is 17,33,081. MOVING AVERAGES OF TCS

64

D at 03e Jan
04Jan 05Jan 06Jan 07Jan 10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan 27Jan 28Jan 31Jan 01Fe b 02Fe b 03Fe b 04Fe b 07Fe b 08Fe b 09Fe b 10Fe 151411b Fe b

Pr ic 115 e 8.0
5 114 4.7 5 115 8.9 5 117 1.7 114 2.6 5 113 0.9 109 8.5 113 5.9 5 112 4.2 5 112 0.1 5 113 7.4 120 2.5 5 119 3 121 2.2 121 1.6 5 120 9.2 118 8.5 5 119 9.4 118 1.3 5 115 9.5 115 0.1 5 118 2.4 5 118 3.7 114 8.8 113 1.1 5 112 5.1 109 8.3 109 0.7 5 108 109 111 9.6 7.7 2.3

10 dy SM 115 A 3.0 1 115 1.4 115 2.3 2 115 5.4 9 115 5.6 5 115 4.6 2 114 9.8 3 114 7.7 3 114 3.1 4 113 8.5 9 113 6.5 2 114 2.3 114 5.7 1 114 9.7 6 115 6.6 6 116 4.4 9 117 3.4 9 117 9.8 4 118 5.5 5 118 9.4 8 119 0.7 6 118 8.7 5 118 7.8 2 118 1.4 8 117 3.4 3 116 5.0 2 115 5.9 9 114 5.1 112 113 3 1.2 5.9 9 3 5

20 da y SM A

Sm oot hin g con 0.1 sta 818 nt

20 da y 115 EM 3.0 A 1 115 1.5 115 2.8 6 115 6.2 8 115 3.8 114 9.6 4 114 0.3 4 113 9.5 4 113 6.7 6 113 3.7 4 113 4.4 1 114 6.8 115 5.2 116 5.5 6 117 3.9 4 118 0.3 5 118 1.8 4 118 5.0 3 118 4.3 6 117 9.8 4 117 4.4 5 117 5.9 117 7.3 2 117 2.1 3 116 4.6 8 115 7.4 9 114 6.7 2 113 6.5 112 5 0.1 5.1 8.0 6 5 1

D at 16e Fe
b 17Fe b 18Fe b 21Fe b 22Fe b 23Fe b 24Fe b 25Fe b 28Fe b 01Ma r 03Ma r 04Ma r 07Ma r 08Ma r 09Ma r 10Ma r 11Ma r 14Ma r 15Ma r 16Ma r 17Ma r 18Ma r 21Ma r 22Ma r 23Ma r 24Ma r 25Ma r 28Ma 313029r Ma r

Pr ic 109 e 6.5
110 9.2 108 9.7 113 8.6 113 8.7 5 112 5.5 5 111 1.8 111 0.0 5 111 0.2 5 112 4.5 115 0.2 113 5.5 5 110 8.2 5 111 7.7 112 6.7 110 8.5 5 107 7.0 5 109 7.5 5 108 9.8 111 4.8 5 109 8 108 2.7 5 107 0.8 106 9.5 106 4.3 5 109 3.4 111 9.6 5 111 9.9 115 113 118 1.9 8.7 3.9 5

10 dy SM 111 A 7.3 9 110 9.9 4 110 4.0 3 110 4.7 8 110 6.1 4 110 8.8 7 111 0.9 7 111 3.0 2 111 2.8 1 111 5.4 9 112 0.8 6 112 3.5 112 5.3 5 112 3.2 6 112 2.0 6 112 0.3 6 111 6.8 8 111 5.6 3 111 3.5 9 111 2.6 2 110 7.4 110 2.1 2 109 8.3 8 109 3.5 6 108 7.3 2 108 5.8 1 109 0.0 7 109 2.3 110 109 110 9.4 7.1 0.9 9

20 da y 115 SM 3.0 A 7 114 8.8 8 114 2.7 5 113 9.1 113 5.5 8 113 2.4 3 112 8.0 5 112 4.4 8 112 2.0 2 112 0.7 4 111 9.1 3 111 6.7 2 111 4.6 9 111 4.0 2 111 4.1 111 4.6 1 111 3.9 3 111 4.3 2 111 3.2 111 4.0 6 111 4.1 3 111 2.8 1 111 1.8 6 110 8.4 1 110 4.6 9 110 3.0 8 110 3.4 7 110 3.9 110 7 8.4 6.7 5.3 5 6 9

0.1 818 0.1 818 0.1 818 114 2.3 6 114 3.4 8 114 6.2 3 114 7.2 6 114 6.2 3 114 4.7 6 114 6.8 5 114 9.0 1 115 2.6 2 115 6.1 5 115 9.5 5 116 1.6 6 116 3.7 8 116 4.3 4 116 4.0 3 116 3.6 4 116 5.5 2 116 6.7 6 116 5.6 2 116 5.0 4 116 4.7 5 116 4.7 4 116 2.4 115 116 8 8.3 0.3 0.7 7 6 5 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 0.1 818 818

Sm oot hin 0.1 g 818 con 0.1 sta 818 nt

20 da y 111 EM 5.8 A 6 111 4.6 5 111 0.1 1 111 5.2 9 111 9.5 6 112 0.6 5 111 9.0 4 111 7.4 111 6.1 111 7.6 3 112 3.5 5 112 5.7 3 112 2.5 5 112 1.6 7 112 2.5 9 112 0.0 3 111 2.2 2 110 9.5 5 110 5.9 6 110 7.5 8 110 5.8 4 110 1.6 4 109 6.0 3 109 1.2 1 108 6.3 2 108 7.6 1 109 3.4 4 109 8.2 112 111 5 110 6.7 4.0 5.6 3

0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 818 0.1 0.1 818 818

65

Table No 15

MOVING AVERAGES OF TCS

Chart No 37

Interpretation From the above chart it is inferred that there are several crossovers between the price line and the moving average curves in last three months. The price line cuts the 10 day Simple moving average line (SMA) and 10 day Exponential moving average curve from below. It shows the bullish trend. The 10 day SMA cuts the 20 day SMA from below confirms the bullish trend.

66

BOLLINGER BANDS OF TCS

Table No 16
Date Price Middl e band 20 day SMA 20 day Std dev Upp er ban d Lower band Date Price Middle band 20 day SMA 20 day Std dev Upper band Lower band

3-Jan

1158. 05 1144. 75 1158. 95 1171. 7 1142. 65 1130. 9 1098. 5 1135. 95 1124. 25 1120. 15 1137. 4 1202. 55 1193 1142.3 6 1143.4 8 1146.2 3 1147.2 6 1146.2 3 1144.7 6 1146.8 5 1149.0 1 1152.6 2 1156.1 5 26.195 1194. 7 1190. 9 1184. 2 1181. 5 1182. 4 1179. 9 1189. 6 1196. 3 1207. 1 1216. 1 1089.96

16-Feb

1096.5

1153.07

43.503

1240.1

1066.06

4-Jan

17-Feb

1109.2

1148.88

43.491

1235.9

1061.9

5-Jan

18-Feb

1089.7

1142.75

42.762

1228.3

1057.23

6-Jan

21-Feb

1138.6

1139.1

39.733

1218.6

1059.63

7-Jan

22-Feb

1138.7 5 1125.5 5 1111.8

1135.58

36.34

1208.3

1062.9

10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan

23-Feb

1132.43

34.285

1201

1063.86

23.699

1096.08

24-Feb

1128.05

30.875

1189.8

1066.3

19.011

1108.2

25-Feb

1110.0 5 1110.2 5 1124.5

1124.48

28.543

1181.6

1067.4

17.143

1112.97

28-Feb

1122.02

27.522

1177.1

1066.98

18.094

1110.04

1-Mar

1120.74

26.768

1174.3

1067.2

17.556

1109.65

3-Mar

1150.2

1119.13

23.81

1166.7

1071.51

21.4

1104.05

4-Mar

1135.5 5 1108.2 5 1117.7

1116.72

19.134

1155

1078.45

23.651

1101.71

7-Mar

1114.69

17.723

1150.1

1079.24

1212. 2 1211. 65

27.238

1098.15

8-Mar

1114.02

17.337

1148.7

1079.34

29.95

1096.25

9-Mar

1126.7

1114.1

17.392

1148.9

1079.31

67

24Jan 25Jan 27Jan 28Jan 31Jan 1-Feb

1209. 2 1188. 55 1199. 4 1181. 35 1159. 5 1150. 15 1182. 45 1183. 7 1148. 8 1131. 15 1125. 1 1098. 3 1090. 75 1089. 6 1112. 3 1097. 7

1159.5 5 1161.6 6 1163.7 8 1164.3 4 1164.0 3 1163.6 4 1165.5 2 1166.7 6 1165.6 2 1165.0 4 1164.7 5 1164.7 4 1162.4 8 1160.7 5 1160.3 6 1158.3 7

31.859

1223. 3 1226. 3 1230. 4 1231. 3 1231. 1 1230. 9 1232. 7 1234. 3 1233. 6 1233. 9 1234. 3 1234. 3 1238. 3 1241. 4 1241. 9 1243. 9

1095.83

10-Mar

1108.5 5 1077.0 5 1097.5 5 1089.8

1114.61

17.066

1148.7

1080.48

32.309

1097.04

11-Mar

1113.93

18.245

1150.4

1077.44

33.309

1097.16

14-Mar

1114.32

17.791

1149.9

1078.74

33.504

1097.33

15-Mar

1113.2

18.578

1150.4

1076.04

33.519

1096.99

16-Mar

1114.8 5 1098

1114.06

18.235

1150.5

1077.58

33.634

1096.37

17-Mar

1114.13

18.166

1150.5

1077.8

2-Feb

33.579

1098.37

18-Mar

1082.7 5 1070.8

1112.81

19.398

1151.6

1074.01

3-Feb

33.769

1099.22

21-Mar

1111.86

20.902

1153.7

1070.06

4-Feb

33.97

1097.68

22-Mar

1069.5

1108.41

21.885

1152.2

1064.64

7-Feb

34.448

1096.14

23-Mar

1064.3 5 1093.4

1104.69

22.719

1150.1

1059.25

8-Feb

34.757

1095.24

24-Mar

1103.08

22.32

1147.7

1058.44

9-Feb

34.776

1095.19

25-Mar

1119.6 5 1119.9

1103.47

22.537

1148.5

1058.4

10Feb 11Feb 14Feb 15Feb

37.902

1086.68

28-Mar

1103.97

22.782

1149.5

1058.4

40.324

1080.1

29-Mar

1138.7

1105.39

23.986

1153.4

1057.41

40.753

1078.85

30-Mar

1151.9 5 1183.9

1106.76

25.76

1158.3

1055.24

42.742

1072.89

31-Mar

1108.45

29.393

1167.2

1049.66

BOLLINGER BANDS OF TCS

Chart No 38

68

Interpretation From the above chart it is inferred that the expanding Bollinger bands in the month of February indicate a highly fluctuating market. There is a silent market in the month of March. There is a breakthrough in the upper band at the end of March signals a bullish trend.

RELATIVE STRENGTH INDEX OF TCS

Table No 17

69

Date

Clos e Pric e
1158.0 5 1144.7 5 1158.9 5 1171.7 1142.6 5 1130.9 1098.5 1135.9 5 1124.2 5 1120.1 5 1137.4 1202.5 5 1193 1212.2 1211.6 5 1209.2 1188.5 5 1199.4 1181.3 5 1159.5 1150.1 5 1182.4 5 1183.7

Gai n

los s

Av g Gai n
8.63 8.28 7.68 5.94 4.08 4.08 4.08 6.76 6.68 6.67 7.54 11.4 10.5 11.9 11.9 11.9 10.8 10.7 10.7 10.7 10.7 10.3 10.4

Av g Los s
2.78 3.73 3.73 3.73 5.8 6.22 7.74 7.05 7.88 8.18 8.18 8.18 8.86 8.53 8.03 7.25 8.73 8.73 7.94 8.66 7.02 7.02 6.18

R S

RSI

Dat e
16Feb 17Feb 18Feb 21Feb 22Feb 23Feb 24Feb 25Feb 28Feb 01Mar 03Mar 04Mar 07Mar 08Mar 09Mar 10Mar 11Mar 14Mar 15Mar 16Mar 17Mar 18Mar 21Mar 22Mar

Close Price
1096.5 1109.2 1089.7 1138.6 1138.7 5 1125.5 5 1111.8 1110.0 5 1110.2 5 1124.5 1150.2 1135.5 5 1108.2 5 1117.7 1126.7 1108.5 5 1077.0 5 1097.5 5 1089.8 1114.8 5 1098 1082.7 5 1070.8 1069.5

Gai n
0 12.7 0 48.9 0.15 0 0 0 0.2 14.3 25.7 0 0 9.45 9 0 0 20.5 0 25.1 0 0 0 0

los s
1.2 0 20 0 0 13 14 1.8 0 0 0 15 27 0 0 18 32 0 7.8 0 17 15 12 1.3

Avg Gai n
4.02 4.93 4.93 8.42 6.12 6.03 6.03 6.03 6.05 7.06 8.9 8.9 7.28 7.95 8.6 7.69 7.69 5.66 5.65 7.44 7.44 7.44 7.43 6.41

Avg Los s
11.4 10.1 9.91 9.24 9.24 10.2 8.68 7.54 7.11 5.19 4.65 5.62 7.57 6.53 6.44 7.74 8.59 8.59 9.15 8.2 8.43 9.39 10.2 10.3

RS

RSI

03Jan 04Jan 05Jan 06Jan 07Jan 10Jan 11Jan 12Jan 13Jan 14Jan 17Jan 18Jan 19Jan 20Jan 21Jan 24Jan 25Jan 27Jan 28Jan 31Jan 01Feb 02Feb 03Feb

0 0 14.2 12.8 0 0 0 37.5 0 0 17.3 65.1 0 19.2 0 0 0 10.9 0 0 0 32.3 1.25

7.6 13 0 0 29 12 32 0 12 4.1 0 0 9.5 0 0.5 2.5 21 0 18 22 9.3 0 0

3.1 1 2.2 2 2.0 6 1.5 9 0.7 0.6 6 0.5 3 0.9 6 0.8 5 0.8 2 0.9 2 1.4 1.1 8 1.3 9 1.4 8 1.6 3 1.2 4 1.2 3 1.3 5 1.2 4 1.5 3 1.4 7 1.6 9

75. 67 68. 98 67. 32 61. 46 41. 31 39. 63 34. 52 48. 95 45. 87 44. 94 47. 97 58. 31 54. 21 58. 15 59. 63 62. 04 55. 4 55. 09 57. 41 55. 27 60. 41 59. 57 62. 78

0.3 5 0.4 9 0.5 0.9 1 0.6 6 0.5 9 0.7 0.8 0.8 5 1.3 6 1.9 1 1.5 8 0.9 6 1.2 2 1.3 3 0.9 9 0.8 9 0.6 6 0.6 2 0.9 1 0.8 8 0.7 9 0.7 2 0.6 2

26.1 1 32.8 3 33.2 47.6 6 39.8 4 37.1 9 41.0 2 44.4 5 45.9 7 57.6 3 65.6 7 61.3 49.0 3 54.9 3 57.1 7 49.8 5 47.2 3 39.7 1 38.1 8 47.5 6 46.8 9 44.2 1 42.0 3 38.2 7

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04Feb 07Feb 08Feb 09Feb 10Feb 11Feb 14Feb 15Feb

1148.8 1131.1 5 1125.1 1098.3 1090.7 5 1089.6 1112.3 1097.7

0 0 0 0 0 0 22.7 0

35 18 6.1 27 7.5 1.2 0 15

10.4 9.2 4.54 4.54 3.17 3.17 4.79 4.79

8.38 9.64 10.1 11.3 11.8 11.9 11.7 11.3

1.2 4 0.9 5 0.4 5 0.4 0.2 7 0.2 7 0.4 1 0.4 2

55. 44 48. 82 31. 08 28. 66 21. 12 21. 06 29. 04 29. 82

23Mar 24Mar 25Mar 28Mar 29Mar 30Mar 31Mar

1064.3 5 1093.4 1119.6 5 1119.9 1138.7 1151.9 5 1183.9

0 29.1 26.3 0.25 18.8 13.3 32

5.2 0 0 0 0 0 0

4.57 6.65 8.52 7.86 8.56 9.51 11.8

10.7 9.66 7.71 7.71 7.71 6.41 4.16

0.4 3 0.6 9 1.1 1 1.0 2 1.1 1 1.4 8 2.8 3

29.9 3 40.7 7 52.5 1 50.5 52.6 3 59.7 4 73.9 2

RELATIVE STRENGTH INDEX OF TCS

71

Chart No 39

Interpretation: From the above chart it is inferred that there are two oversold conditions in the February. In the end of March the RSI line travels from the lower line to the upper line. The RSI touches the upper limit showing the future increase in price.

RATE OF CHANGE OF TCS

72

Table No 18 Date 03-Jan 04-Jan 05-Jan 06-Jan 07-Jan 10-Jan 11-Jan 12-Jan 13-Jan 14-Jan 17-Jan 18-Jan 19-Jan 20-Jan 21-Jan 24-Jan 25-Jan 27-Jan 28-Jan 31-Jan 01-Feb 02-Feb 03-Feb 04-Feb 07-Feb 08-Feb Price 1158.05 1144.75 1158.95 1171.7 1142.65 1130.9 1098.5 1135.95 1124.25 1120.15 1137.4 1202.55 1193 1212.2 1211.65 1209.2 1188.55 1199.4 1181.35 1159.5 1150.15 1182.45 1183.7 1148.8 1131.15 1125.1 ROC -0.23691 -0.43488 1.662281 2.681623 0.127059 -1.34776 -5.05208 -2.92685 -3.55167 -3.27274 -0.64206 3.762026 1.817871 6.086728 7.140331 10.07738 4.630485 6.684456 5.463554 1.943028 -4.35741 -0.88433 -2.3511 -5.18714 -6.45468 -5.33844 73 Date 16-Feb 17-Feb 18-Feb 21-Feb 22-Feb 23-Feb 24-Feb 25-Feb 28-Feb 01-Mar 03-Mar 04-Mar 07-Mar 08-Mar 09-Mar 10-Mar 11-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar 21-Mar 22-Mar 23-Mar 24-Mar Price 1096.5 1109.2 1089.7 1138.6 1138.75 1125.55 1111.8 1110.05 1110.25 1124.5 1150.2 1135.55 1108.25 1117.7 1126.7 1108.55 1077.05 1097.55 1089.8 1114.85 1098 1082.75 1070.8 1069.5 1064.35 1093.4 ROC -7.36673 -3.44708 -3.66441 1.199893 3.682965 3.190465 2.037445 -0.20228 1.1433 2.55358 3.696358 4.20758 -2.66555 -1.84852 0.102172 -0.29232 -2.97284 -1.14389 -3.08582 -3.07338 -3.30677 -2.30092 -4.19612 -5.07677 -3.98719 1.518035

09-Feb 10-Feb 11-Feb 14-Feb 15-Feb

1098.3 1090.75 1089.6 1112.3 1097.7

-8.42921 -7.66919 -6.02846 -3.29088 -7.16732

25-Mar 28-Mar 29-Mar 30-Mar 31-Mar

1119.65 1119.9 1138.7 1151.95 1183.9

2.013576 2.761975 2.139301 4.913479 9.341953

RATE OF CHANGE OF TCS

74

Chart No 40

Interpretation: From the above chart it is inferred that the Rate of change is travelling between positive and negative form the beginning of the year. The ROC line is below the centre line in the month of March. It crosses the centre line at the end of March confirms the Bullish trend.

5.1 FINDINGS
Fundamental analysis:
Economic analysis:
The continuous increase of GDP is favorable news to stock market and it creates bullish

impact on the stock market.

Industrial growth rate is rapidly increasing through various government initiatives. There is

a massive improvement in Manufacturing, Textile, Service, IT and Mining industries.

The work force of India which is cheap as well as skillful attracts the foreign investments.

64% of the total population is literates. The education in professional courses is gone high in past decades.
Even though there are hikes in prices in all types of goods, Inflation is not foreseeable

problem as RBI and government of India have fighting priority towards inflation.
The balance of trade is negative till now. But there is an improvement in it. The negative

rate of balance of trade is reducing slowly. India is leading exporter of gems and jewelry,
75

textiles, engineering goods, chemicals, leather manufactures and services. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs.
Government budget always faced deficit till now. India reported a government budget

deficit equivalent to 5.50 percent of the Gross Domestic Product (GDP) in 2010. The budget 2011 planned in the way to overcome the deficit. The expected deficit is 4.5 percent of GDP.
India's average interest rate was 5.82 percent reaching an historical high of 14.50 percent in

August of 2000 and a record low of 3.25 percent in April of 2009. The current interest rate is 5.5 percent. The Indian Rupee exchange rate (USDINR) depreciated 2.29 percent during the last 12 months. Strengthening of rupee creates bullish market. Personal income tax exemption limit raised to Rs 180,000 from Rs 160,000 for individual tax payers in 2011 budget. For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh. This may raise the number of new investors in share market. INDUSTRY ANALYSIS:
The Information Technology industry has emerged as one of the most important

industries in the Indian economy contributing significantly to the growth of the economy. The industry structure in the IT structure has four major categories. These are: IT services IT enabled services Software products Hardware

The IT industry of India got a major boost from the liberalization of the Indian economy. India's software exports have grown at an annual average rate of more than 50% since 1991.
The Indian IT industry is at the growth stage in Industry life cycle The government is taking initiatives and providing subsidies and infrastructure for the

expansion of IT sector in India. The software technological parks Indian and Information Technology Investment Regions which are having several tax exemptions were set up by both state and central government induces further IT development.
76

 The following Export promotion schemes are beneficial for IT industries.

Export Oriented Units (EOUs) Scheme Electronics Hardware Technology Parks (EHTPs) Software Technology Parks (STPs) Special Economic Zone (SEZ) Scheme Export Promotion Capital Goods (EPCG) Scheme

India is considered as one of the major IT hub in the world. One of the major reason is its human resource availability. Abundant talent pool producing close to 6,75,000 technical graduates a year, of which 4,00,000 are engineers
Software exports from India are expected to grow in coming years. New markets for

software exports from India have opened up in the Middle East, South and Southeast Asia, Africa, and Eastern Europe. While exports dominate the IT industry at present, there is huge scope of growth in the domestic market in the future. The focus for the future is to ensure that the benefits of the IT industry percolate to the grassroots levels. COMPANY ANALYSIS:
INFOSYS TECHNOLOGIES LTD The Dividend Per share is rapidly increasing in past three years. The current DPS is Rs 60.

Increasing DPS attracts more investors.

The Earnings Per Share has been increasing from the 2007 onwards and it is in its highest

of Rs 112 in 2011. This shows that the companys profit earning capacity is improving.
The Dividend payout ratio is 54.5% in 2011. This attracts more long term investors. The Price/Earnings ratio reflects the price currently paid by the market for each rupee of

currently reported EPS. The year 2006-07 has shown a higher P/E ratio of 32.7 indicating the investors expectation and market appraisal of the firm. The current P/E Ratio is 25.93 which is normal.
The Operating margin of Infosys is in the good stage and constantly increasing. The present

Operating margin is 37.66%.

The constant increase in book value of Infosyss shares tends to attract the long term

investors who aim for capitalization. The present book value is Rs 426.85.
WIPRO LIMITED 77

 The Dividend Per Share is fluctuating with some small ups and downs. The current

dividend per share is Rs 6.

The Earnings Per Share of wipro reaches its maximum in 2011 to Rs 33.37 from Rs 20.3 of

2009 which is a good increase. This shows the company is in the profit earning position.
The Dividend Payout Ratio is constantly increasing. The current dividend payout ratio is

5.56%. This will be beneficial ti the investors who seeks dividend form their investments.
The P/E ratio is Rs 13.46 in 2011 which is recovered from a huge decline of Rs 4.07 in 2009

due to recession.
The Operating Margin reduced slightly in 2009 and 2010 and regained in 2011. The current

Operating margin is 24% which shows that the operational efficiency of Wipro is good.
The Book Value of wipro shares were Rs 85.42. This was increased in the year 2010 as Rs

120.49 and decreased back to Rs 86.46 in 2011.

TATA CONSULTANCY SERVICES LIMITED The Dividend per share is constant at Rs 14 in 2008 & 2009 and it rose to its maximum of

Rs 20 in 2010. The current DPS is Rs 14 per share.

The Earnings per share is fluctuating between Rs 38 and Rs 48. It is decreased to Rs 28.62

in 2010. The current EPS is Rs 38.62. This shows that the company is in profit making stage.
There is a massive increase in Dividend payout ratio in 2010 (69.88%). The current DPS is

36.25% and thus indicates the company is investing its profit for future growth.
The Price/Earnings ratio is recovered from Rs 10.92 in 2009 to Rs 37.49 in 2011. The Operating Margin was constantly reduced from 2007 to 2009 but the rate of decrease is

less. It started increasing in 2010. The current Operating margin is 31.55% which is the highest in past five years.
The book value of the share is highly fluctuating. It reached its maximum of rupees 138.38

in 2009. In 2010 it was rupees 76.72 which is the lowest. The current Book value is Rs 99.53. This recovery gives hope to the long term investors.

TECHNICAL ANALYSIS
78

INFOSYS TECHNOLOGIES LIMITED Price movements - Infosys technologies shares were the highest priced shares amongst

Indian IT industries. The 52 week high, low were Rs 3499 and Rs 2510 respectively. There is a downtrend from the month of January followed by sideway trend. There is a trend reversal at the end of March indicating an uptrend.
Volume movements - The highest volume traded in three months is 2060815 on 13th January

2011 and the lowest is 365048 on 16th February. The average volume traded is 1065838. The volume movements seem to be healthy. This shows that more number of investors involved in buying and selling Infosys shares.
Moving Averages The price line cuts the 20day SMA, 10day SMA and 10 day EMA

curves at different occasions in the month of March indicating the bullish trend.
Bollinger Bands The Bollinger bands signals there is a high fluctuating in share prices in

the month of March. The price line cuts the upper bands and thus signals the bullish trend.
Relative strength index There are two oversold conditions in the month of February 2011.

The price line travels below the centre line most days. The price line is above the centre line at the end of March and signals that the current trend is bullish.
Rate of change (ROC) - The rate of change crosses the centre line from below and signals

the bullish trend. The rate of change stands at +10 points which is relatively high in past three months. WIPRO LIMITED:
Price movements The share price declined from the beginning of this year. There is a

trend reversal on 31st January 2011. The 52 week high, low are rupees 725 and rupees 372.10 respectively. There is a double top formation in the month of February. The trend is bullish in the month of March.
Volume movements - A highest volume of 39,10,042 shares were traded on 21st January.

And the lowest volume was 2,62,430 on22nd March. The average volume traded in the period of three months is 14,77,700.
Moving Averages The price line cuts the 20day SMA, 10day SMA and 10 day EMA

curves at different occasions in the month of March indicating the bullish trend.
Bollinger Bands - There is a high volatility in share prices in the months of January and

February followed by a silent market in the mid February and March. The price line exceeds
79

the upper Bollinger band at the end of March signaling the overbought condition and confirms the bullish trend.
Relative strength index (RSI) There are three oversold conditions, one in the month of

January and two others in February. The RSI curve is travelling above the centre line indicating the bullish trend. The RSI touches the upper limit showing the future increase in price.
Rate of change (ROC) - The rate of change is positive from the month of February and

declines in March followed by a massive increase and crosses +9 points. This shows that the current trend is bullish.

TATA CONSULTANCY SERVICES: Price movements The share price is falling in the month of January. The 52 week high,

low were rupees 1220 and rupees 685.25 respectively. There is a pennant formation in the middle of February indicating high volatility in share price. There is a bullish price gap in the middle of March followed by an uptrend.
Volume movements - A highest volume of 42,40,685 shares were traded on 18th January and

the lowest volume was 7,02,521 on 3rd January 2011. The average volume traded in the period of three months is 17,33,081.
Moving Averages The price line cuts the 10 day Simple moving average line (SMA) and

10 day Exponential moving average curve from below. It shows the bullish trend. The 10 day SMA cuts the 20 day SMA from below confirms the bullish trend.
Bollinger Bands The expanding Bollinger bands in the month of February indicate a

highly fluctuating market. There is a silent market in the month of March. There is a breakthrough in the upper band at the end of March signals a bullish trend.
Relative strength index (RSI) - There are two oversold conditions in the February. In the

end of March the RSI line travels from the lower line to the upper line. The RSI touches the upper limit showing the future increase in price.
Rate of change (ROC) - The Rate of change is travelling between positive and negative

form the beginning of the year. The ROC line is below the centre line in the month of March. It crosses the centre line at the end of March confirms the Bullish trend.
80

5.2 SUGGESTIONS

The Indian IT Industry is in the growth phase. The contribution of GDP by the Indian IT Industry is increasing year by year. The price trend of the samples taken in the CNX IT Listing seems to be bullish in the past two years. The Indian IT industry is reverting back from the global economic recession. The fundamentals of all the samples are strong. This indicates that there is a good opportunities for long term investors to invest in IT companies shares who aims for dividend and capitalization. The technical indicators are giving buy signal indicating a short term uptrend trend. The investor can hold this share of IT companies for long term. Investors who want to get short term profit can enter as the stocks of IT companies are in over sold region and can exit when there is trend reversal and when share are in over bought region.

81

5.3 CONCLUSION

The Fundamental and Technical analysis of equity shares in IT industry is focus on analyzing both long-term and short-term investments in the IT industry and shows the opportunities involved in share investments in IT industry. The fundamentals are strong, the economy is on a boom and industry is on an expansion stage. The economic indicators are favorable to the stock market. The performance of the IT Industry on a whole is improving. The IT companies are in good position and their performances are showing growth year by year. This is apt time for investors to get into share market and make hay while sun shine. The investor has to enter and exit at right levels. The technical indicators are now showing buy signal and its the right time to enter to reap short term profit.

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83