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 technical analysis is a security analysis discipline used for forecasting the direction of price through the study of past market data. Technical analysis employs models and trading rules based on price and volume transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, business cycles, stock market cycles or, classically, through recognition of chart patterns . 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. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor. This project is conducted in hedge equities, Hedge Equities is one of the leading Financial Services Company in India, specialized in offering a wide range of financial products. they will help investors in their investment and pass necessary information and suggestion for their investment. Hedge provide technical analysis and fundamental analysis of shares for their customers. .
In this study we selected 4 steel companies
1. Tata steel LTD
2. Jindal South West Steel LTD
3. Steel Authority of India LTD
4. Uttam Galva Steel LTD
Through this analysis we can get an idea about the share price movement of steel industry and also to find out the nature of movement of individual steel company. This technical analysis will help to purchase shares of the shares at a reasonable for a short period to retain profit. 2.2 BACKGROUND OF THE PROBLEM
In the share market main two important share analysis are, technical and fundamental analysis. technical analysis is mainly used by investors for their investment decision. the main problem is that most of the investors are doing technical analysis in the wrong way this project will help to know more about technical analysis and it use. For doing this analysis I selected 4 steel companies. The steel companies are good in there price movement and volume of trade. This study mainly deals with analysis of closing prices of the last 30 days. It is based on some assumptions for predicting future price movement by the help of these past share price movements. Technical analysis is fully based on historical and past data. Here the 30 days share price movement will helps us to predict the future movement of share prices of steel industries and also to make rational decisions, whether to buy the share and sell the share.
1.3 NEED AND IMPORTANCE OF THE TOPIC
* It is helpful for investors to know the price movement of the shares in market * The reason why today's traders use technical analysis as their primary trading tool is because it is much easier to understand than fundamental analysis. *
What To Buy or Sell? When To Buy or Sell? Technical Analysis gives a precise answer to the above mentioned questions.
OBJECTIVES OF THE STUDY
* The main objective of the study is to know the share price movement of selected steel companies * To evaluate the price fluctuation of steel companies on the basis of share price movements * To know the change that happen to the share price as per the demand and supply * To understand the overbought and over sold situations of each shares * To find out the underlying trend of price movement of individual shares
1.5 RESEARCH METHODOLOGY
The type of research...
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