A SUMMER TRAINING REPORT ON “TECHNICAL ANALYSIS OF COMMODITY MARKET TAKING GOLD AND CRUDE OIL” AT JAINAM SHARE AND SECURITIES PVT LTD, SURAT SUBMITTED BY SOYEB R. JINDANI (MBA SEM III, 2008-2010 BATCH) UNDER SUPERVISION OF VARUN DHINGRA (LECTURER) JUNE-JULY 2009 BHAGAWAN MAHAVIR COLLEGE OF MANAGEMENT NEW CITY LIGHT ROAD, SR NO 149, 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
A
SUMMER TRAINING REPORT
ON
“TECHNICAL ANALYSIS OF COMMODITY MARKET TAKING GOLD
AND CRUDE OIL”
AT
JAINAM SHARE AND SECURITIES PVT LTD, SURAT
SUBMITTED BY
SOYEB R. JINDANI
(MBA SEM III, 2008-2010 BATCH)
UNDER SUPERVISION OF
VARUN DHINGRA
(LECTURER)
JUNE-JULY 2009
BHAGAWAN MAHAVIR COLLEGE OF MANAGEMENT
NEW CITY LIGHT ROAD, SR NO 149,
AHEAD ASHIRWAD VILLA, B/H HEENA BANGLOWS,
BHARTHANA, VESU, SURAT-395017
1
DECLARATION
I’m Soyeb Jindani, a student of BHAGAWAN MAHAVIR COLLEGE OF
MANAGEMENT, Which is affiliated to Veer Narmad South Gujarat
University, Surat hereby declare that the project entitled “TECHNICAL
ANALYSIS OF COMMODITY MARKET TAKING GOLD AND CRUDE
OIL” at Jainam Share and Security pvt ltd., is the original work done
by me and the information provided in the study is authentic to the best
of my knowledge. This study report has not been submitted to any other
institution or university for the award or any other degree and will not be
submitted in near future.
This report is based on my personal opinion hence cannot be
referred to legal purpose.
(Soyeb Jindani)
Date:
2
ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in
the success of any venture. In the present world of competition and
success, training is like a bridge between theoretical and practical
working; willingly I prepared this particular Project. First of all I would
like to thank the supreme power, the almighty god, who is the one who
has always guided me to work on the right path of my life. I would like to
thank Miss Shital Mehta for granting me permission to undertake the
training in their esteemed organization.
I express my sincere thanks to Dr. A.S.Abani. (Director), Varun
Dhingra (Lecturer) & others faculty members of M.B.A. department,
for the valuable suggestion and making this project a real successful.
I also thanks to Mr. Biranj Patel (Sr. Executive of HR), Chetna
Bhandari (Marketing Manager) for their time-to-time guidance and
support in completing the project. I also thank the other staff of Jainam
who devoted their valuable time by helping me to complete my project.
Last but not least, my sincere thanks to my parents and friends
who directly or indirectly helped me to bring this project into the final
shape.
Soyeb Jindani
DATE:
3
Executive Summary
“A good broker system must be able to cope with an extremely
complex and dynamic environment.”
The microstructure of the stock market in which brokers work is
highly dynamic and volatile. Many stocks are available to be bought and
sold, each exhibiting its own patterns and characteristics that are highly
unpredictable. With so many options and considerations that need to be
taken into account, it is an extremely arduous task for a broker to
investigate aspects of the stock market and consistently provide effective
advice to their clients.
The study is done at stock broking firm to understand nature and
functions of the firm. Especially when the prices are being high and low
within few seconds so at that time each core functions of firm affects the
work environment of whole culture. Commodities are being traded since
long years. To understand the predications about prices of commodities
like Gold, Crude Oil, and other precious metals, the researcher has done
study on technical analysis.
For the purpose of the study, researcher has collected data of
Gold M and Crude Oil from January 2007 to July 2009.
4
After the data analysis it has been predicted that Gold M is still in
bearish condition and at this time the investor should not enter into
trading he or she should wait till it goes on bullish level. And about Crude
Oil it has been analyzed that in near future prices of Crude Oil will be
high so it is time of bull and so investor can take a advantage of it.
In short, technical analysis is a forward-looking, graphical
assessment tool that anticipates bi-directional value-levels of a price-
series over a given time horizon.
This research will able to understand empower traders and
investors with a basic knowledge of charting, trading-skills, and decision-
making abilities.
Secondly, to set such a value, one must ask to what degree the
source of analysis is reliable, accurate, and consistent with one's specific
trading preferences, and tolerance for risk.
Finally, one must know to what extent one can expect to
consistently profit from such analysis.
5
Index:
Chapte
r No.
Particulars Page No.
1 Introduction to training
1.1 Introduction to training 8
1.2 Objective of Study 9
1.3 Benefit of Study 10
2 Introduction to industry 11-34
3 About company
3.1 Company profile 35-43
3.2 About department 44-73
4 Theoretical framework 74-107
5 Research methodology
5.1 Objective of the study 109
5.2 Problem identification 109
6
5.3 Assumption and benefits of study 110
5.4 Research design 111
5.5 Sampling 111
5.6 Research tool used 111
5.7 Data collection 111
5.8 Limitation of the study 112
6 Data analysis 113-127
7 Findings, conclusion and suggestion 128-131
Bibliography 132
Annexure 133-141
7
CHAPTER-1CHAPTER-1
INTRODUCTION TOINTRODUCTION TO
TRAININGTRAINING
8
1.1 Introduction to Training.
This project report is prepared as result of summer training of M.B.A. (Full time) which was of 8 weeks from 21st May 2009 to 15th July 2009. The researcher has taken training at JAINAM SHARES CONSULTANT PVT LTD which is simply related with stock market. Hence it is Stock broking firm which deals with different market like Equity, Commodity, and Derivatives etc.
1.2 Objective of Study:
To gain knowledge about different market such as capital market and its industry which is helpful in completing this report effectively.
To gain the knowledge about stock market and it operation.
To become familiarize with organization, which help in applying theoretical concepts into practical routine
To understand the working system of different department.
To get an experience of working environment.
9
To become part of professionalism.
To understand technical terms and its applications in study.
To understand of working of different departments and its connectivity with whole organization.
To gain the detailed knowledge of core functions like Marketing, Human Resources, Finance, Research.
To know how the scripts are being traded in Equity market, Derivatives, Commodity market.
1.3 Benefit of Study:
The research has gained some of the following benefit due to this study.
Got the knowledge about stock market and its operations.
Learnt about different scrip.
Learnt about equity and derivatives and how the prices are being volatile.
The working of sensex and nifty its rules and regulation.
How to invest in different security and at what time investor should exit or enter in trading.
How the top management is handling whole organization structure.
10
Learnt some technical terms of stock market and its application in trading.
As researcher has done detailed study on technical analysis of commodity market so researcher has gained knowledge about technical terms of it.
And moreover the study of technical analysis helped to understand the price movements of commodities and how to predict price for near future.
Even because of the study uses of charts how to make different kinds of charts and after analysis of charts what would be interpretation of it the all things can be answered after the detailed study.
CHAPTER-2CHAPTER-2
INTRODUCTION OFINTRODUCTION OF
INDUSTRYINDUSTRY
11
Introduction to the Industry:
Financial System:
The economy of each and every country in based on the sound
financial system which helps in production, capital and economic growth
by encouraging savings habits, mobilizing savings from house holds and
other segments and allocating savings into productive usage such as
trade, manufacture, commerce etc.
Thus, financial system provides bridge for surplus of the savers to
be utilized by the deficit spending units.
The financial system includes three basic elements:
12
Financial Market:
Market Purpose Players Regulatory
Money market Short Term ( from one day to one year)
Banks,FIs,FIIs,Corporates,MF,Govt.
RBI
Capital market
Long Term (above one year)
Corporates,Banks,FIs,FIIs, MF,Individuals
SEBI
Forex market Short Term Long Term Foreign
Banks, Corporates,authorized forex
RBI
13
Financial
System
Financial Markets
Financial Intermediaries
Financial Instruments
Credit Money
Market Market
Forex Capital
Market market
currency funds dealers
Credit market Short Term Long Term Rupee funds
Banks,FIs,Corporates
RBI
Financial Intermediaries
Development Financial InstitutionsCommercial BanksNon banking financial InstitutionsInsurance Organisation
For corporate enterprises, expansion, modernization,
reorganization, and mergers require long-term funds to be raised
through the issue of shares, debentures and bonds, all of which find their
way to the secondary market through the new issue market. The
term does not necessarily refer to newly issued stocks, although initial
public offerings are the most commonly known new issues. Essentially,
the function of the New Issue market lies in facilitating the transfer of
investible funds to corporate organization. Initial issue of shares by new
enterprises may substantially account for volume of activities in the new
issue market and it has been so during the eighties and earlier at various
times.
Secondary Market:
The market where securities are traded after they are initially
offered in the primary market. Most trading is done in the secondary
market. To explain further, it is trading in previously issued financial
instruments. An organized market for securities examples are the New
York Stock Exchange(NYSE), Bombay Stock Exchange(BSE), National
Stock Exchange(NSE),bond market, over the counter markets, residential
mortgage loans, governmental guaranteed loans etc.
Role and Functions of Stock Exchange:
1. Established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities.
2. Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities.
3. Provides a physical location for buying and selling securities that have been listed for trading on that exchange.
4. Establishes rules for fair trading practices and regulates the trading activities of its members according to those rules.
5. The exchange itself does not buy or sell the securities, nor does it set prices for them.
6. The exchange assures that no investor will have an undue advantage over other market participants.
7. This means that orders are executed and transactions are settled in the fastest possible way.
8. Investors make informed and intelligent decision about the particular stock based on information.
16
9. Listed companies must disclose information in timely, complete and accurate manner to the Exchange and the public on a regular basis.
History of Stock Market:
The stock market has a long history. According to French historian Fernand Braudel, in 11th century Cairo, Islamic and Jewish traders had already established every form of trade association.
They were knowledgeable about credit and payment methods. Braudel's suggestions negate the opinion that the Italians contrived these methods later.
In 12th Century France, the courratiers de change dealt with managing and regulating the debts of agricultural communities on behalf of the banks. They can be referred to as the first brokers, because they only dealt with debts. The people of Flanders and the neighboring counties also implemented this idea, and Beurzen was soon introduced in Ghent and Amsterdam.
In late 13th Century, commodity traders in Bruges gathered inside the house of a man named Van Der Beurse. In 1309, they were named the "Brugse Beurse," and institutionalized their unofficial meetings.
The Bankers of Venice started trading in government securities in the middle of the 13th century. In 1351, the Government of Venice prohibited the spread of rumors done with the intention of decreasing government fund prices. During the 14th century, the Bankers of Pisa, Verona, Genoa, and Florence also started trading in government securities. This was possible because these independent city-states were governed by a group of influential citizens, and not by a duke.
Later, joint stock companies were started in the Netherlands. This provided shareholders the opportunities to invest in business ventures and get a contribution of their profits or losses. In 1602, the Dutch East India Company issued their first shares through the Amsterdam Stock Exchange, and it was the first company to issue stocks and bonds. A stock exchange in London started trading stocks in 1688. The Amsterdam Stock Exchange (or Amsterdam Beurs) was the first stock exchange to introduce continuous trading in the earlier part of the 17th Century. According to Murray Sayle, the Dutch were the originators of short selling, option trading, debt-equity swaps, merchant banking, unit trusts, and other speculative instruments. Stock markets are currently present in every developed and most developing countries, but the biggest stock markets are present in the United States, Canada, China (Hong Kong), India, UK, Germany, France, and Japan.
17
World History of Market:
History of stock market trading in the United States can be traced
back to over 200 years ago. Historically, The colonial government
decided to finance the war by selling bonds, government notes promising
to pay out at profit at a later date. Around the same time private banks
began to raise money by issuing stocks, or shares of the company to raise
their own money. This was a new market, and a new form of investing
money, and a great scheme for the rich to get richer. A little further on
the history timeline, more specifically in 1792, a meeting of twenty four
large merchants resulted into a creation of a market known as the New
York Stock Exchange(NYSE). At the meeting, the merchants agreed to
meet daily on Wall Street to daily trade stocks and bonds.
Further in history, in the mid-1800s, United States was
experiencing rapid growth. By 1900, millions of dollars worth of stocks
were traded on the street market. In 1921, after twenty years of street
trading, the stock market moved indoors.
History brought us the Industrial Revolution, which also played a
role in changing the face of the stock market. New form of investing
began to emerge when people started to realize that profits could be
made by re-selling the stock to others who saw value in a company. This
was the beginning of the secondary market, known also as the
speculators market. This market was more volatile than before, because
it was now fueled by highly subjective speculation about the company’s
future.
18
This was the pretext for appearance of such stock market giants as
NYSE. History books tell us that the reason the NYSE is so highly
regarded among stock markets was primarily because they only trade in
the very large and well-established companies. It acted as a more stable
investment alternative, for people interested in throwing their capital
into the stock market arena. The smaller companies making up the stock
market formed into what eventually became the American Stock
Exchange (AMEX). Contrary to the 80-year old history, today the NYSE,
AMEX, NASDAQ and hundreds of other exchange markets make a
significant contribution to the national and global economy.
The growth in the number of market participants led the
government to decide that more regulation of the stock market was
needed to protect those investing in stock. History was made in 1934,
when following the Great Crash, Congress passed the Securities and
Exchange Act. This act formed the Securities and Exchange Commission
(SEC), which, through the rules set out by the act and succeeding
amendments, regulates American stock market trading with the help of
the exchanges. It also includes overseeing the requirements for a
company to issue stock shares to the public and ensures that the
company offers relevant information to potential investors.
Although historically, investing in stocks was a “hobby” for the
rich, an average person too soon came to realize the value of the
investing in stocks vs. traditional assets like land or a house.
Most stock markets around the world have undergone a process of steady evolution and have changed in relation to the process known as ‘globalization’. With information technology changing the way we do business all over the world it was but natural for stock markets to also integrate their functions in an IT enabled electronic environment. This has not just revolutionized the way companies raise money for expansion or new ventures but also brought about a level of transparency and ease in the functional areas of trade in shares that was never seen before.
The most famous stock markets of the world are:
19
London Stock Exchange New York Exchange
Tokyo Stock Exchange
Hong Kong Stock Exchange
Singapore Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a physical exchange, also
referred to as a listed exchange — only stocks listed with the exchange
may be traded. Orders enter by way of exchange members and flow down
to a floor broker, who goes to the floor trading post specialist for that
stock to trade the order. The specialist's job is to match buy and sell
orders using open outcry. If a spread exists, no trade immediately takes
place--in this case the specialist should use his/her own resources (money
or stock) to close the difference after his/her judged time. Once a trade
has been made the details are reported on the "tape" and sent back to
the brokerage firm, which then notifies the investor who placed the
order. Although there is a significant amount of human contact in this
Jainam Share Consultants Pvt. Ltd. was incorporated on 10th
November 2003 and it is mainly carrying on the broking business in the
equity market. The company has acquired memberships of the two major
stock exchanges of India; National Stock Exchange of India Ltd. (NSE)
and Bombay Stock Exchange Ltd. (BSE). The company is also registered
as a Depository Participant (DP) with Central Depository Services (I) Ltd.
(CDSL).
The company’s registered office is situated at,
M-5/6, Malhar Complex,
Dumas Road, Ichchanath,
Surat 395007.
The company commenced its BSE operations from 4th October
2004 and its NSE operations from 17th March 2005. Since incorporation
the company has been consistently growing with the present client base
of around 11000+ clients. The company has approximately 80 outlets to
cater to the needs of the investors for their equity trading in the stock
exchanges.
Jainam Commodities Pvt. Ltd.
39
Jainam Commodities Pvt. Ltd. was incorporated on 1st June 2005
and is mainly carrying on the broking business in the commodity market.
The company has acquired memberships of the two major commodity
exchanges of India viz. National Commodity & Derivatives Exchange Ltd.
(NCDEX) and Multi-Commodity Exchange of India Ltd. (MCX)
The Company’s registered office is situated at
M-11, Malhar Complex,
Dumas Road, Ichchanath,
Surat 395007.
Board of Directors:
1 Dr. Jitendra Shah
2 Mr. Chirag Shah
3 Mr. Milan Parikh
4 Mr. Nipun Shah
5 Mrs. Pinal Shah
6 Mrs. Purna Shah
Business Network:
Head Office: At registered address, Surat.
Local Branches: 8 Branches in Surat city.
Regional Branches:
Rajkot
Bhavnagar
40
Mumbai
Jainam Organisation Hirearchy:
41
Milestone of company:
42
Board of Directors:
HRM
Shital Mehta
Operation Finance
Hemal Zaveri
Marketing
Chetna Bhandari
Research
Rohan Mehta
System/ technical
Commodity
Devesh Shah
Customer care
Dhawal Panchal
Demat a/c
Kamlesh Patel
Security & KYC
Hetal Shah
Account Opening
Nisha Dudhwala
RMS (Risk management
system)
Dilip Morakhia
General Account & Banking
Mutual Fund
Abhishek
Shah
It & Software
Nikhil Tandel
Jainam Share Consultants Pvt. Ltd.
2005 15th December Acquired Membership
of
Central Depository
service (India) Ltd.
2004 23rd December Acquired Membership
of National Stock
Exchange of India Ltd.
(Cash Seg.)
2004 17th December Acquired Membership
of National Stock
Exchange of India Ltd.
(F & O Seg.)
2004 30th December Acquired Membership
of Bombay Stock
Exchange Ltd. (Cash
Seg.)
2003 10th November Company Registered
Jainam Commodities Pvt. Ltd.
2006 06th February Acquired Membership
of National Commodity
and Derivatives
Exchange of India Ltd.
2005 08th December Acquired Membership
of Multi Commodity
Exchange of India Ltd.
43
2005 1st June Company Registered
Mission:
“TO PROVIDE WORLD CLASS SERVICES AND CREAT WEALTH FOR
EVERY ONE”
Vision 2015:
“TO BE THE MOST PREFERRED ORGANIZATION PROVIDING ALL
FINANCIAL SERVICES ACROSS THE COUNTRY”
Five CORE VALUES of company:
1. Change
2. People Development
3. Security
44
4. Team Work
5. Integrity
Jainam Share Consultants Pvt. Ltd.
Member: Bombay Stock Exchange Ltd. (BSE)
Trading Member ID: 2001
SEBI Registration No: INB011211639 (CM Segment)
Member: National Stock Exchange of India Ltd. (NSE)
Trading Member ID: 12169
SEBI Registration No: INB231216939 (CM Segment)
SEBI Registration No: INF231216939 (Derivatives Segment)
Member: Central Depository Services (I) Ltd. (CDSL)
DP ID: 41500
SEBI Registration No: IN-DP-CDSL-322-2005
Jainam Commodities Pvt. Ltd.
Member: Multi-Commodity Exchange of India Ltd. (MCX)
Trading Member ID: 29735
FMC Registration No: MCX/TCM/CORP/0924
45
Member: National Commodities & Derivatives Exchange Ltd.
(NCDEX)
Trading Member ID: 00738
FMC Registration No: NCDEX/TCM/CORP/0723
Core Strength of Jainam:
Milan Parikh who has excellent contacts and relationship with sub-brokers in surat.
Nipun Shah has the knowledge that is needed to complete the difficult procedure of getting various memberships.
Dr. Jitendra Shah – the senior and most respectable member of team Jainam who has the ability to motivate all to reach great heights.
Even the name ‘Jainam’ derived from the first letter of the above three directors.
Strategy:
Build long term relationship with customer by winning their trust.
Give decided services to all customers by protecting their investment in volatile circumstances and adding value to their wealth.
Integrate the best in technology, research and analysis into the business model ensuring growth not only in business but also in customer relationship.
Jainam Strengths:
Every customer is provided one stop solution for trading in the equities market and commodities market.
Provisions of free, state of art research to all clients. Dedicated and experienced team for any type work, Inspiring and powerful leadership. Customer base of more than 14000+
46
Products and services of the company:
Products
Equity
Derivatives
Depository Services
Commodities
IPO -Initial Public Offerings
Insurance
Portfolio Tracking
E-Trading
Mutual Funds
General Information about company:
No. of Employee 160
Working Hours 9:45 am to 6:15 pm
Lunch Time 20 minute during 12:00 noon to 2:00 pm
Salary Payment 5th of every month
47
Attendance Regular recording
Leave As per its policy
Conduct & Discipline
High degree of discipline, positive conflict is good between employees
3.2 About Department:
Human Resource Department
48
Human Resources Department Structure:
49
Managing Director
Senior Executive
Department Head
Junior ExecutiveJunior Executive
Introduction:
The JAINAM shares company’s HR department plays a significant role in day to day life activities. Its activities and functions are related with other departments.
Discussion with HR manager:
As Researcher has discussed with HR manager about how they are performing their task of HRM? She immediately told me that first they are considering two factors like GOAL and ACTIVITY. They are giving importance to each goal and activity.
Activities carried by HRD:
Attendance Management Personal file updating Leave Management Contract Management for labor
ISO Documentation HR Budget MIS Report Training and development
50
Recruitment & Selection Induction and Orientation Performance Appraisal Separation
Transfer Resignation
Human Resource Systems support the mentioned driving forces in the following manner at Jainam Shares Consultant pvt. ltd:
Salary and basic needs Competitive with the industry Parity within the organisation Providing growth compared to the industry Compensation strategy concentrated towards Retention
of Employees
Work Environment Employee engagement measurement Policy formulation and its strict adherence
Clarity of Job, Role, responsibility and accountability
Growth prospects Career planning Learning need identification Opportunities to gain knowledge Opportunities apply the knowledge gained.
51
1)Job Analysis:
Definition of Job Analysis:
The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it
They have suggest us a below uses of job analysis for their organization.
52
2) Man Power Planning:
After doing job analysis they are always done a Manpower Planning. As we know that success of any organization depends upon the quantity and quality of its human resources. JAINAM has accepted a strategy of putting right person on the right job. They doing MPP as per the business plan. They are doing MPP for one year period.
They are using a technique of managerial judgment for the forecast of the future human resource. They are doing MPP on the basis
53
Uses of Job Analysis Information
Job Analysis
Recruiting and
Selection
Decisions
Performance
Appraisal
Job Evaluation—
Wage and Salary
Decisions
(Compensation)
Training
Requirements
Job Description
And
Job Specification
of future supply of human resource. They make assumption of future expected loss of human resource. They are done MPP on continuous basis.
3) Recruitment and Selection:
After doing Job analysis and HRP, they recruit and select the person as per job requirement. The below diagram shows hoe Job analysis and HRP helpful in Recruiting and Selection Every firm can hire a person after the Job analysis and HRP has been done.
Sources of recruitment:
They generally use both the internal and external sources for the Recruitment.
Internal sources:
They generally use internal sources for Recruitment and Selection. They generally recruit the require person through Promotion and Transfer. They used past employee of company for the Recruitment
External sources:
54
Recruiting and
Selection
As a external sources of Recruitment they used a service of a agency which are providing a skilled Human Resources. Currently they are Recruiting a persons from “MAFOIA consultancy Ltd.”
Interview:
After recruiting a necessary employee for the job they select a right person who has all necessary skills and ability to do job. They select a person through a Interview process. Interviews are taken by a HR Manager of the JAINAM and by the Manager of respected department in which the person is required.
Test during Interview:
If any special test is required during interview, they are planning to put it in action for checking the abilities of applicant.
Final placement:
After the test and final interview call over, right person at right place to be placed in the JAINAM by the HR manager.
Induction training:
As new employee is placed in the organization, the following are some important task which is done to make him/her familiar with the organization.
As I have joined the organization for the purpose of my MBA summer training, they have consider me as a new employee of the firm and given me induction manual to be familiarize with the JAINAM.
Purpose of Induction Manual:
1. To make familiar with organization and its culture 2. Accelerate socialization process for the individual.3. Aware of responsibilities and privileges.4. Integrate with the organization.
55
The Organization expects the following from their employees,
1. We need to clearly define roles, goals and rules to be most efficient.
2. We meet deadlines and issue reports on time.
3. Have confidence in your skills and it is good to seek advice. No one knows it all.
4. We will GRIP (Goals Roles Issues Process) our problems and challenges, we will not let them fester.
5. We must work co-operatively as equals and support each other.
6. Careful, calm rational, respectful communication is key, no raised voices.
7. Respect each other’s ideas and views.
8. We support independent thinking and opinion with reasons up and down the organization.
9. We expect people to voice their disagreement.
10. Positive conflict is good.
11. Continue to be open about our feeling and assumptions.
12. Avoid issues of personalities, prestige, point scoring, put downs, negative cements, fear and what did they say about me? Move on.
13. The decision maker must listen, seek input and explain rationale behind decisions.
56
14. Once a decision is made irrespective of your view, you implement it with good will. As it is company’s decision.
Terminal Process:
Most involuntary separations are due to poor performance, poor attendance, or violation of some other company policy.
Acts:
Two acts are following as HR acts
1. Provident fund act 1952
2. ESIC- Employees’ state insurance act 1948:
"An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto."
57
Marketing & Sales Department:
Marketing & Sales Department:
58
Introduction:
Marketing is so basic that it cannot be considered as a separate function. Marketing has been defined in various ways. The definition that serves our purpose best is as follows: “marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.”
This definition of marketing rests on the following core concepts, needs, wants& demands, products, value, cost & satisfaction, exchange and transactions, relationship and networks, markets and marketers and prospects.
“Marketing management is the process of planning and executing the conception, pricing, promotion & distribution of ideas, good and services to create exchanges that satisfy individual and organizational goals.” This definition recognizes that marketing management is a process involving analysis, planning, implementation and control; that it covers goods, services and ideas; that it rests on the notion of exchange, and that he goal is to produce satisfaction of the parties involved.
Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving the desired responses from the other parties. Marketing management has the task of influencing the level; timing and composition of demand in a way that will the organization achieve its objectives. Marketing management is essentially demand management.
This department was started before one year in the organization.
Discussion with manager:
When Researcher talked to marketing manager, Chetna Bhandari who has 10 years experience in share broking firm, about requirement of this department in the company , she replied like “ on demand of 300 sub brokers and to make easy transactions and to facilitate them, they have established the marketing and sales department last year”
59
Functions of department:
1. Taking reverences from sub brokers.2. Making call for appointment to explain detailed information.3. Fixing meeting with client and sharing information.4. Problem solving of clients and sub brokers.5. Meeting with existing sub brokers in 15 days.6. Meeting with new clients in every week.7. For potential consumers they are appointing one special guide
Advertisement:
When Researcher asked her about advertisement and its rules, she said that if the firm wants to put single banner they need to take permission from SEBI. If there are any changes in the matter immediately they have to inform to SEBI about changes.
Strategy:
She said about the strategy to stabilize their firm in this competitive environment. In her words “If we think that ANGEL, SHARE KHAN and other big firms are our competitors then we will not be able to survive in the market. So we believe that we, ourselves are competitors of the firm”
Promotion Method:
1. Telephone & E-mail:
Customer Satisfaction Measures.
E-mail and Telephonic Complaint.
By appointing employee to special customers.
Order Conformation.
By giving daily reports about market and industry to customers.
60
Distribution Channel:
Zero Level:
Jainam Shares consultant
One level:
61
Direct customer
(Sub-brokers)
Indirect customer
(Clients)
Jainam Shares consultant
Direct customer
(Sub-brokers)
Indirect customer
(Clients)
IT & Software department:
62
IT & Software department:
This department was stared before 2 months.
Discussion with manager:
When Researcher talked to in charge of the department Mr. Nihkil Tandel about the need for staring this department, he explained me the various reasons like,
Reasons for establishment of the department:
1. To build, stabilize, and deploy IT services, applications, and infrastructure improvements in the most efficient way possible.
2. Software service problem was in very high degree3. To become self dependent in making software for the business4. In future to apply for innovations and creative ideas in business for
growth and expansion of the firm 5. To facilitate the A/C & trading department 6. To solve it problems quickly.7. Reliability and security of business plan 8. Asset protection9. Restoration of a service to health when things go wrong
The department is still in underdevelopment process. Top management is supporting as best to make it efficient for making all processes of the firm.
63
KYC (know your client) department & DP:
64
KYC (know your client) department & DP:
The department plays significant role in the stock market transaction and in company.
Introduction:
In order to prevent identity theft, identity fraud, money laundering,
terrorist financing, etc, the RBI had directed all banks and financial
institutions to put in place a policy framework to know their customers
before opening any account.
This involves verifying customers' identity and address by asking
them to submit documents that are accepted as relevant proof.
Mandatory details required under KYC norms are proof of identity
and proof of address. Passport, voter's ID card, PAN card or driving
license are accepted as proof of identity, and proof of residence can be a
ration card, an electricity or telephone bill or a letter from the employer
or any recognised public authority certifying the address.
Some banks may even ask for verification by an existing account
holder. Though the standard documents which are accepted as proof of
65
identity and residence remain the same across various banks, some
deviations are permitted, which differ from bank to bank.
So, all documents shall be checked against banks requirements to
ascertain if those match or not before initiating an account opening
process with any bank. Thus opening a new bank account is no longer a
cake walk. Those are the basic requirements of KYC to identify a
customer at the account opening stage.
DP department:
Demat refers to a dematerialized account.
Introduction:
Just as one have to open an account with a bank if he/she want to save his/her money, make cheque payments etc, one need to open a demat account if one want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares.
One have to approach the DPs (remember, they are like bank branches), to open one’s demat account.Let's say one’s portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.All these will show in one’s demat account.So don’t have to possess any physical certificates showing that one own these shares. They are all held electronically in your account.
As one buy and sell the shares, they are adjusted in one’s account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.
Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to
66
be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.
Process to start DP:
Look for a DP to have an account with most banks are also DP participants, as are many brokers. One can choose your very own DP. A broker is separate from a DP. A broker is a member of the, who buys and sells shares on his behalf and on behalf of his clients.
A DP will just give you an account to hold those shares. One do not have to take the same DP that your broker takes. You can choose your own.
But many brokers offer special incentives in the form of lower charges for opening demat accounts with their DPs. Get one’s documents in placeOnce you approach your DP, you will be guided through the formalities of opening an account. One must fill up an account opening form and sign an agreement with one’s DP. The DP will ask for some documents as proof of one’s identity and address.
Check with them what they require. For instance, some may accept a driver's license, others may not.
Here is a broad list (One won't need all of them though):
While they only ask for photocopies of the documents, they will need the originals for verification. One shall have to submit a passport size photograph on which you sign across. How many shares one need to have to open an accountWhen opening an account with a bank, one need a minimum balance.
Not so with a demat account. A demat account can be opened with no balance of shares.And there is no minimum balance to be maintained either. You can have a zero balance in your account.
Charges for it:
The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.
Nomination:
By filling up the nominee form while opening the demate account.
After starting Dp:
When one open an account, the DP will allot a unique BO ID
68
(Beneficial Owner Identification) Number, which one need to quote for all future transactions. If you want to sell your shares, you need to place an order with one’s broker and give a 'Delivery Instruction' too one’s DP.
The DP will debit one’s account with the number of shares sold. One will receive the payment from one’s broker. If one want to buy shares, inform one’s broker about your Depository Account Number, so that the shares bought are credited into one’s account.
Difference between a depository and a depository participant:
A depository is a place where the stocks of are held in electronic form. The depository has agents who are called depository participants (DPs).
Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DPs are the branches that cater to individuals.
There are only two depositories in India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). There are over a 100 DPs.
Changes of Bank account details:
Since in the depository system monetary benefits on the security
balances are paid as per the bank account details provided by you at the
time of account opening, you must ensure that any subsequent change in
bank account details is informed to your DP immediately.
Closing or Transfer:
One can submit account closure request to your DP in the
prescribed form. The DP will transfer all the securities lying in the
account, as per the instruction, and close the demat account.
69
Freeze or locking account:
One can freeze or lock one’s account for any given period of time,
if so desired. Accounts can be frozen for debits (preventing transfer of
securities out of accounts) or for credits (preventing any movements of
securities into accounts) or for both.
Customer Care Department:
70
Customer Care Department:
Definition
Customer Care is the processing of meeting (and exceeding) your
customer expectations of service.
Mission of the department:
“One satisfied customer is more valuable than 5 lakh rs, Advertisement”.
71
Objectives of Customer Care
create a culture of customer focus creating rapport and building loyalty
achieving customer satisfaction
They are committed to providing customers with efficient, local, support to help them achieve the maximum benefit from their solution. They have structured their business so that, no matter where customers are located, they have direct access to local sales, support and management to ensure they are responsive to all customers' needs - not just product maintenance.
The objectives/functions of the Customer Relations Strategy are to:
Provide customers and staff with clear standards and expectations Ensure all customer contact reaches an appropriate conclusion
Minimize incidences of repeat contact
Seek to provide a seamless service for customers
Provide equal and easy access to our services at a time, place and channel that meet the needs of residents, businesses and other stakeholders
Cater for customers needs irrespective of age, gender, physical or financial ability, ethnic origin, race, religion or geographical location
Provide a prompt, courteous and knowledgeable response to all customer enquiries.
Equip our staff to provide customers with an excellent standard of service
Enable our customers to provide feedback easily, through complaints, customer surveys, etc
Use customer compliments, comments and complaints to drive improvements to service
Improve the speed, quality and consistency of response to enquiries by having our information in a format that can be easily accessed
Integrate customer care into mainstream service provision
72
Continually increase the level of resources going into front line services
It is their belief that by meeting these objectives they will:
Delight the customer by providing excellent standards of service Maximize satisfaction with the quality of the service provided
Developing Customer Care strategies:
73
Finance Department
Finance Department:
74
Introduction:
The primary purpose of any business is to earn profits. To earn profit, the business has to produce goods or render services. To do either, management of business must have adequate supply of funds. It is the responsibility of the finance department to ensure the supply of the needed funds.
Financial management is the application of planning and control to the finance function of a business to ensure that the funds needed are raised and used effectively for its benefits. Financial management means procurement of funds at minimum cost and its effective use in order to maximize the wealth of shareholders.
The company’s Finance department is divided into two parts:
Account Department
Banking Department
Functions of Account Department:
Payment of expenses.
Final accounts.
All types of taxes.
Auditing and statutory auditing. (Quarterly)
Daily or time to time banking match.
Pay in pay out.
Collection of check and entry maintenance.
Enquiry and third party check.
75
Functions of Banking Department:
Capital Structure maintenance
Pay in pay out of checks with exchanges.
Maintenance of OD
Fulfillment of necessary requirement of department of financial needs.
76
Research Department:
77
Introduction:
In the firm of share broking organization research department
plays crucial role for time to time updates and other technical services
for clients as well as internal purpose.
The Jainam shares consultants’ pvt ltd is providing the following
technical services.
Technical Services:
Intra-day Calls
For day traders’ Jainam provides intraday calls with entry, exit
and stop loss levels during the market hours and our calls are flashed on
our terminals. Our analysts continuously track the calls and provide the
recommendations according to the market movements. Past performance
of these calls in terms of profit/loss is also available to our associates to
enable them to judge the success rate.
Posting Trading Calls
Jainam’s “Position Trading Calls” are based on a through analysis of
the price movements in selected scripts and provides calls for taking
positions with a 10 - 15 days time span with stop losses and targets.
These calls are also flashed on our terminals during market hours.
78
Derivative strategies:
Our analyst take a view on the NIFTY and selected scripts based on
derivatives and technical tools and devise suitable “Derivative Strategies” ,
which are flashed on our terminals and published in our derivative reports.
Daily Services:
Market Outlook at 9:30 AM
A crisp pre-market report that arms our clients with sensitive
information before the opening bell. Key corporate developments, policy
announcements, geo-political news and views are analyzed for their
impact on the market.
Technical Report at 6:00 PM
This report analyses trading patterns, historical background,
market position of key stocks and offer short term (1 to 5 days) as well as
medium term (10 to 20 days) views. Tracking individual scripts as well as
the Sensex and Nifty, its insight cuts through the market maze.
Derivative Analysis Report
The report provides FII activity in derivative segments, change in
open interest, put call ratio, cost of carry of stock and index based
79
derivative products. Our derivative analysts use the above tolls to project
the movement during the next trading sessions
CHAPTER-4CHAPTER-4
THEORETICALTHEORETICAL
FRAMEWORKFRAMEWORK
TECHNICALTECHNICAL
ANALYSISANALYSIS
& &
COMMODITYCOMMODITY
MARKETMARKET
80
Technical Analysis:
Introduction:
The methods used to analyze securities and make investment
decisions fall into two very broad categories: fundamental analysis and
technical analysis. Fundamental analysis involves analyzing the
characteristics of a company in order to estimate its value. Technical
analysis takes a completely different approach; it doesn't care one bit
about the "value" of a company or a commodity. Despite all the fancy and
exotic tools it employs, technical analysis really just studies supply and
demand in a market in an attempt to determine what direction, or trend,
will continue in the future. In other words, technical analysis attempts to
understand the emotions in the market by studying the market itself, as
opposed to its components.
Definition:
81
Technical analysis is the forecasting of future financial price
movements based on an examination of past price movements. Like
weather forecasting, technical analysis does not result in absolute
predictions about the future. Instead, technical analysis can help
investors anticipate what is "likely" to happen to prices over time.
Technical analysis uses a wide variety of charts that show price over
time.
The field of technical analysis is based on three assumptions:
1. The market discounts everything.
2. Price moves in trends.
3. History tends to repeat itself.
1. The Market Discounts Everything.
A major criticism of technical analysis is that it only considers
price movement, ignoring the fundamental factors of the company.
However, technical analysis assumes that, at any given time, a stock's
price reflects everything that has or could affect the company - including
fundamental factors. Technical analysts believe that the company's
fundamentals, along with broader economic factors and market
psychology, are all priced into the stock, removing the need to actually
consider these factors separately. This only leaves the analysis of price
movement, which technical theory views as a product of the supply and
demand for a particular stock in the market.
2. Price Moves in Trends.
82
In technical analysis, price movements are believed to follow
trends. This means that after a trend has been established, the future
price movement is more likely to be in the same direction as the trend
than to be against it. Most technical trading strategies are based on this
assumption.
3. History Tends To Repeat Itself.
Another important idea in technical analysis is that history tends
to repeat itself, mainly in terms of price movement. The repetitive nature
of price movements is attributed to market psychology; in other words,
market participants tend to provide a consistent reaction to similar
market stimuli over time. Technical analysis uses chart patterns to
analyze market movements and understand trends. Although many of
these charts have been used for more than 100 years, they are still
believed to be relevant because they illustrate patterns in price
movements that often repeat themselves.
Technical Analysis: The Use of Trend
One of the most important concepts in technical analysis is that of
trend. A trend is really nothing more than the general direction in which
a security or market is headed. Take a look at the chart below:
83
It isn't hard to see that the trend in is up. However, it's not always this
easy to see a trend:
A More Formal Definition
In any given chart, you will probably notice that prices do not tend
to move in a straight line in any direction, but rather in a series of highs
and lows. In technical analysis, it is the movement of the highs and lows
that constitutes a trend. For example, an uptrend is classified as a series
of higher highs and higher lows, while a downtrend is one of lower lows
and lower highs.
Types of Trend
There are three types of trend:
84
Uptrend
Downtrend
Sideway
When each successive peak and trough is higher, it's referred to as
an upward trend. If the peaks and troughs are getting lower, it's a
downtrend. 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. In terms of
the stock market, a 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. In Figure to get a sense of how these three trend lengths might look.
Trend lines:
85
A trendline is a simple charting technique that adds a line to a
chart to represent the trend in the market or a stock. Drawing a trendline
is as simple as drawing a straight line that follows a general trend. These
lines are used to clearly show the trend and are also used in the
identification of trend reversals.
In Figure, an upward trendline is drawn at the lows of an upward trend.
This line represents the support the stock has every time it moves from a
high to a low. Notice how the price is propped up by this support. This
type of trendline helps traders to anticipate the point at which a stock's
price will begin moving upwards again. Similarly, a downward trendline
is drawn at the highs of the downward trend. This line represents the
resistance level that a stock faces every time the price moves from a low
to a high.
The Importance of Trend It is important to be able to
understand and identify trends so that you can trade with rather than
against them. Two important sayings in technical analysis are "the
trend is your friend" and "don't buck the trend”.Technical Analysis:
Support and Resistance Once understand the concept of a
trend, the next major concept is that of support and resistance. You'll
often hear technical analysts talk about the ongoing battle between
Member can trade in multiple commodities from a single point,
on real time basis.
Traders would be trained to be Rural Advisors and Commodity
Specialists and through them multiple rural needs would be met,
like bank credit, information dissemination, etc.
Chapter 4
Research Methodology
116
4.1 Objective of Study:
Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet.
To make investment decisions.
To determine the trend of commodity like Gold and Crude Oil.
To forecast future financial price movements.
To take an approach that what is “likely” to happen in price over time.
117
To understand emotions of market by using market itself.
To understand the chart patterns and technical terms and how decisions are being made with the help of it.
4.2 Problem identification:
Research always starts with a problem. In this study, the problem statement is “Technical Analysis of commodity market taking Gold and Crude Oil.”
4.3 Assumptions and benefits of study:
The field of technical analysis is based on three assumptions : 1. The market discounts everything. 2. Price moves in trends. 3. History tends to repeat itself.
Benefits of study:
This study will help those investors who are interested in commodity trading in future.
Technical analysis focuses on price movement. The primary focus of technical analysis is on the movement of prices. Charts show how prices are moving (or not moving), when prices are trending, and the strength of those trends. Volume, oscillators and momentum give a clearer picture of market action. And this information can be obtained at a glance.
118
Trends are easily found. Taking a look at a moving average line quickly displays a price that is trending or stuck in a range. Whether it is up, down, or sideways, a chart can quickly display a currency that is exhibiting a trend. Trends are critical to technicians because a currency is likely to continue moving in the direction of the trend. Charts show them clearly and quickly.
Patterns are easily identified. One of the basic tenets of market action is that it repeats itself in clear, unmistakable patterns. Using charts helps the trader to find patterns and predict price movements based on these patterns. Like star constellations, patterns can be complex and complicated. Head-and-shoulders patterns, rounding tops and bottoms, ascending and descending triangles, and double and triple tops are proven patterns that many currency prices will follow. Hence, they have strong predictive powers. They can be impossible to detect without using a chart.
Charting is quick and inexpensive. Computers have relieved us from the burden of performing complex mathematical operations. The Internet has a wealth of different technical indicators available that can help the trader to make more profitable and more reliable trades. Many brokers offer these types of technical indicators to their clients as part of their package. Technical analysis is less time consuming and less costly than fundamental analysis. It can be performed in less than five minutes and the services are very often offered for free or at a nominal cost.
Charts provide a wealth of information. Charts and indicators can provide a huge amount of information in only a few moments. Trends are easily found. Support and resistance levels are quickly identified. Momentum, volatility, and trading patterns appear quickly and easily. There are more than fifty kinds of indicators and they each provide information on different aspect of how a currency is moving. This information is critical to technicians to make sound and profitable trades.
4.4 Research design:
“A research design is the arrangement of conditions for collections and analysis of data in a manner that aims to relevance to the research purpose with economy in procedure. In fact, research design is the
RSI shows the Sell period as it reaches to 70, in the following time.
For year 2007.
1. Whole month of February.
2. Last week December.
For year 2008.
1. Last week of January.
2. Mid week of March.
3. Last three weeks of September.
4. Last two weeks of November.
5. Last week of December.
For year 2009.
1. Last week of January.
Over Bought Zone:
RSI shows the Over Bought zone as it reaches above 70, in the following time
For year 2007.
3. Whole month of September.
4. Last three weeks of October.
5. First week of November.
For year 2008.
1. First two weeks of January.
2. Last week of February.
128
3. Mid week of March.
For year 2009.
1. Mid week of February.
Buy Period:
RSI shows the Buy period as it reaches to 30, in the following time
For year 2007.
1. First week of January.
2. Last week of April.
3. Last week of June
4. First week of July.
For year 2008.
1. Ending of March.
2. Ending of April.
3. Second week of September.
For year 2009.
1.First three week of March.
Over Sold Zone:
RSI shows the Over Sold Zone as it reaches Below 30, in the following time
For year 2007.
1. Last three week of May.
For year 2008.
1. First two week of April.
For year 2009.
There is no over sold zone till June 2009.
129
Introduction to Chart of Crude Oil:
In the chart, First top part is showing Relative Strength Index of
Crude oil for January 2007 to first week of July 2009.
The middle part of the chart is showing MACD (Moving Average
Convergence and Divergence) of Crude oil for January 2007 to first
week of July 2009.
The bottom part of the chart contains three parts as follows.
1. Bar chart of crude oil for January 2007 to first week of July 2009.
2. (Exponential Moving Average) 30 days EMA (Blue line) (Short
term) and 100 days EMA (Red line) (Long term)
3. Volume of Crude Oil for the same period.
130
131
132
133
134
Analysis of Bar Chart and EMA:
Last week of June 2007
Let us have a look at what the 3 years bar chart pattern of Crude Oil
is indicating:
The 30 days EMA crosses 100 days EMA from downside by giving a
buy signal at a price of 2860, which is long-term bullish crossover. The
14 days RSI is already in strong buy mode, Volumes accompanying the
breakout are encouraging, MACD is also in positive zone and thereby has
given the confirmation to a bullish outlook that led to the sharp high from
2860 to above 6000.
Last week of October 2008
On the daily chart 30 days EMA crosses 100 days EMA from
upside, by giving a sell signal at a price of 4600, which is long-term
bearish crossover. The 14 days RSI is already in selling mode as it is
heading lower, MACD is in negative zone and Volumes too are very high
showing delivery base selling in market that led to the sharp decline in
price of the script from high 4600 to 1600 low.
First Week of July 2009
As we see on the chart after accumulating between 2500 to 3500
for last 3 months, stock had broken out from trading range with higher
volumes and 30 days EMA also sustaining above 100 days EMA which
again shown a bullish sign. RSI and MACD both indicators also confirms
the signal.
After the 1st target the stock has corrected a bit we recommended to still
hold for a target as July 2008.
135
Analysis of RSI:
Sell period:
RSI shows the Sell period as it reaches to 70, in the following time
For year 2007.
1. In last two week of March.
2. Mid week of June.
3. Last week of November and December.
For year 2008.
1. First week of January.
2. Mid week of February.
3. Whole April month.
4. First and last of week June.
5. Last week of July.
For year 2009.
1. Last three weeks of March.
2. First week of May and June.
Over Bought Zone:
RSI shows the Over Bought zone as it reaches above 70, in the following time
For year 2007.
1. Mid week of July.
2. Second week of September.
136
3. Last week of October.
4. First week of November.
For year 2008.
1. Last week of February.
2. First two week of March.
3. Whole May month.
For year 2009.
1. Last week of May.
2. Second week of June.
Buy Period:
RSI shows the Buy period as it reaches to 30, in the following time
For year 2007.
1. First week of March.
2. Third week of August.
3. First week of December.
For year 2008.
1. Third week of January.
2. Last week of June.
3. Last three weeks of October.
4. Whole November month.
For year 2009.
1. Mid week of January.
2. Second week of February.
Over Sold Zone:
RSI shows the Over Sold Zone as it reaches below 30, in the following time
For year 2007.
137
1. First three weeks of January.
For year 2008.
1. Second week of October.
For year 2009.
There is no over sold zone till June 2009.
CHAPTER 6
Findings, Conclusions and suggestions
138
Findings:
As base on study, there are some findings such as…
Gold 2007-2009
There is up and down in the year 2007 in gold. And it is following head and shoulder pattern of chart.
In year 2008, the gold was in bullish crossover in some of the month.
Where in staring of 2009, it was highest high in last three years.
Where in 2007 it was highest low.
And as in last three months of chart May to July 2009; MACD is continuously going downtrend by showing negative effect. Which suggest traders and investors should be ready for bearish crossover for future.
Even the RSI for last three months may to July 2009; it is neither in buy nor in sell position.
Even number of volumes for Gold is also declining in the last three months.
Crude Oil 2007-2009
The prices of Crude oil have gone highest high in year July 2008.
And highest low was in staring of 2009.
At the end of June 2009, RSI is showing same position as gold.
139
No. of Volume for Crude Oil is increasing in last three months may to July 2009.
Moreover MACD is in its Positive direction or trend.
So it leads to the hope for highs of Crude oil in future.
Conclusions:
Technical analysis has its strengths, most importantly its timeliness. Technical analysis is concerned with what is actually happening in a market. This discipline also has its weaknesses, namely its reliance, for the most part, on normal probabilities and repetition in trading patterns.
It should be remembered that volume can sometimes sputter for reasons unrelated to market momentum. Volume, for example, is typically light ahead of market holidays or in the advent of key report or statistical releases.
Volume The volume section of the chart indicates the number of commodity contracts changing hands on a given day. The greater the volume, the higher the vertical bar on the chart. Volume is a useful measure of the strength of price movements. High volume tends to confirm a price trend, while low volume warns of flagging trading interest, creating doubt regarding the viability of the prevailing trend.
It should be remembered that volume can sometimes sputter for reasons unrelated to market momentum. Volume, for example, is typically light ahead of market holidays or in the advent of key report or statistical releases.
In Summary
140
Technically, gold's chart indicates:
Prices: an intermediate-term downtrend following a failure to score new highs in early July
RSI: a continuing downtrend
MACD: a continuing downtrend(negative)
Volume/Open Interest: a recent shift to bearish sentiment, matching the strength of the market's previous bullish conviction.
Technically, Crude oil's chart indicates:
Prices: an intermediate-term uptrend following a success to score new highs in early July
RSI: a continuing uptrend
MACD: a continuing uptrend (positive)
Volume/Open Interest: a recent shift to bullish sentiment, matching the strength of the market's previous bearish conviction.
Suggestions:
Based on the charts and explanation above, there are some suggestions like...
In Gold, general trend is going downward, so it is advisable to investors for making new buy or stop loss.
In Crude oil, the trend is going upward so investors can make profitable contracts in future.
Investor and Traders should get knowledge about technical terms and chart patterns to sustain their loss.
The firm like Jainam is providing daily technical services to their sub brokers and clients so this type of approach should be taken care to make aware about the current market and its analysis.
141
The trading of commodity is being done through the time of Jesus where he has said in the bible about wheat traded so it is not a new that commodities are being trade. But there is lack of knowledge about the commodity market and its analysis which can be fulfilled by this type of technical analysis.
8 Miss Rupal Pachhayaa Trading Officer 0261-3087013
9 Mr. Nikhil Tandel IT Exe. 0261-3087006
10 Mr. Mahavir Shah Mutual Fund Exe. 0261-3087004
11 Mr. Dhawal Panchal Customer Care Head
0261-3087009
12 Miss Shital Mehta HR head 0261-3087003
13 Mr. Biranj Patel HR Seniro Exe. 9375798005
Weekly Reports
Week No: 1
Start date: 21 st may 2009 End date: 23 rd may 2009
Roll No: 14 Name of the student: Soyeb R. Jindani
Officer in charge in the company: Mr. Biranj Patel
Contact No: 9375798005
Work completed in this Week:
144
1. On Thursday (Dt.. 21/5/2009) History of Jainam Share Consultant Pvt. Ltd. & information about BSE
2. On Friday (Dt. 22/5/2009) Discussion about various department of Jainam pvt. Ltd.
3. On Saturday (Dt. 23/5/2009) Holiday from organization
Project Report Progress:
1. Some portion of Industry profile.
Submitted To: Varun Dhingra
Date of reporting: 23rd may, 2009
Week No: 2
Start date: 25 th may 2009 End date: 30 th may 2009
Roll No: 14 Name of the student: Soyeb R. Jindani
Officer in charge in the company: Mr. Biranj Patel
Contact No: 9375798005
Work completed in this Week:
3. On Monday (Dt.. 25/5/2009) Visiting HR department
145
4. On Tuesday (Dt. 26/5/2009) HR department activities, Role of HR manager
5. On Wednesday (Dt. 27/5/2009) Reading Induction manual 6. On Thursday (Dt. 28/5/2009) Visiting Marketing Department7. On Friday (Dt. 29/5/2009) Marketing Dept. functions and other
information 8. On Saturday (Dt. 30/5/2009) Holiday from organization
Project Report Progress:
1. Some portion of Industry profile.2. Company profile3. Department like HR and marketing
Submitted To: Varun Dhingra
Date of reporting: 30th may, 2009
Week No: 3
Start date: 1 st June 2009 End date: 6 th June 2009
Roll No: 14 Name of the student: Soyeb R. Jindani
Officer in charge in the company: Mr. Biranj Patel
Contact No: 9375798005
146
Work completed in this Week:
2. On Monday (Dt. 1/6/2009) Visiting IT department3. On Tuesday (Dt. 2/6/2009) Visiting R & D department4. On Wednesday (Dt. 3/6/2009) Visiting Mutual Fund department5. On Thursday (Dt. 4/6/2009) Visiting Mutual Fund department6. On Friday (Dt. 5/6/2009) Discussion of Various topics for Project
report7. On Saturday (Dt. 6/6/2009) Holiday from organization
Project Report Progress: (Cumulating Work)
1. Industry profile.2. Company profile3. Department like HR and marketing4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual
Fund
Submitted To: Varun Dhingra
Date of reporting: 6th June, 2009
Week No: 4
Start date: 8 th June 2009 End date: 13 th June 2009
Roll No: 14 Name of the student: Soyeb R. Jindani
Officer in charge in the company: Mr. Biranj Patel
Contact No: 9375798005
147
Work completed in this Week:
8. On Monday (Dt. 8/6/2009) Visiting customer care department9. On Tuesday (Dt. 9/6/2009) Visiting commodity department10. On Wednesday (Dt. 10/6/2009) Visiting MCX 11. On Thursday (Dt. 11/6/2009) Visiting DP department12. On Friday (Dt. 12/6/2009) Visiting KYC department13. On Saturday (Dt. 13/6/2009) Holiday from organization
Project Report Progress: (Cumulating Work)
1. Industry profile.2. Company profile3. Department like HR and marketing4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual
Fund5. Department like (a) Customer care (b) Commodity (c) KYC &
DP
Submitted To: Varun Dhingra
Date of reporting: 13th June, 2009
Week No: 5
Start date: 15 th June 2009 End date: 20 th June 2009
Roll No: 14 Name of the student: Soyeb R. Jindani
148
Officer in charge in the company: Mr. Biranj Patel
Contact No: 9375798005
Work completed in this Week:
14. On Monday (Dt. 15/6/2009) Visiting Security department15. On Tuesday (Dt. 16/6/2009) Visiting General A/C department16. On Wednesday (Dt. 17/6/2009) Visiting A/C & Banking Department17. On Thursday (Dt. 18/6/2009) Visiting Collection department18. On Friday (Dt. 19/6/2009) Visiting Marketing & Sales Department19. On Saturday (Dt. 20/6/2009) Holiday from organization
Project Report Progress: (Cumulating Work)
1. Industry profile.2. Company profile3. Department like HR and marketing4. Department like. (a) Marketing (b) IT (c) R&D (d) Mutual
Fund5. Department like (a) Customer care (b) Commodity (c) KYC &