Está en la página 1de 17

TERM PAPER

OF
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
ON
GMDC LTD.

Submitted To: Submitted By:
MR. AMARJIT SAINI KARAN VEER SINGH
REG.NO. -10900968
ROLL NO. - RS1902B41

(A Government of Gujarat Undertaking) Corporate History 1963 The Gujarat Mineral Development Corporation Limited. Meanwhile. particularly in the chemical and textile industries. in the year 1968 was beneficiation of fluorspar. therefore commenced mining of lignite in Kutch district. 1970 By early 70's. The production of lignite. . GMDC started mining operations at Rajpardi near Ankleshwar in 1984. GMDC. with a small sand crushing plant at Surendranagar which supplied graded sand to consumers all over the State. continued to increase and reached a level of 5 million tonnes by the year 1997-98. (GMDC) was set up / established / constituted in the year 1963. The sand was used by various manufacturers of sodium silicate and glass industries. demand driven. a rare mineral essential for basic industries. Gujarat Mineral Development Corporation Ltd. and has been supplying lignite to majority of the textile industries from this mine. which required massive quantities of fuel to sustain the growth. foundry flux and welding electrodes among others. with the mandate to develop major mineral resources in the State of Gujarat. more deposits of lignite were identified in Bharuch district. set up by GMDC. Availability of lignite as an efficient and cheaper substitute for coal provided the impetus for industrial growth of Gujarat. hydrochloric acid. based on further exploration in other parts of Gujarat. like refining of steel manufacturing of aluminium. the Industrialisation of Gujarat took off at a rapid pace. 1968 The next project. The Company commenced its operations.

. as well as continues to look into the development of other minor and major mineral resources in the State of Gujarat.Though lignite dominates the current activities of the Corporation. GMDC continues to pursue its path of expansion based on mineral resources. particularly in the fields of lignite based power generation.

.

.

.

com Selvanayagam 12760 24910 Shri B P Pati.com 12747 72130 . Secretary (079) 279 (079) 232 cosec@gmdcltd.com GM (LP and Sales) 10096 235712 Shri A DGM (Sales) (079) 279 (079) 269 sales@gmdcltd. 27911540 26841275 Shri D U Vyas GM (Geo / Tech) (079) (079) geo@gmdcltd.com 13200 30424985 Shri Joel Evans Co.com 12746 29296716 Shri P K Soni GM (CSR) (079) 279 (079) 268 csr@gmdcltd.com Chattopadhyay 12962 60774 Shri D C Shah GM (IT) (079) (079) comp@gmdcltd.com 27913211 25891890 Shri D S Shah Manager (Civil) (079) 279 (079) civil@gmdcltd.Phone No.G.com 11151 24860 Shri K N Limbadia GM (HR) (079) (079) persn@gmdcltd.Email (Office) (Residenc e) Shri A L Thakor GM (P.com 27911878 26650661 Shri D K Thakkar DGM(P & M) (079) (079) purchase@gmdcltd.com 27910090 26402005 Shri L Kulshrestha GM (Finance.M. (079) (079) env@gmdcltd.com 27912322 23248362 Shri D GM (Power ) (079) 279 (079) 267 power@gmdcltd. K ) (079) 279 (079) fink@gmdcltd.com. IFS C.Functional Divisions Name Designation Phone no.R and D) and (079) 279 (02717) tech@gmdcltd.

(Residence) (Office) Shri A K Makadia Rajpardi (02645) (02645) 240128 240185 Shri Samantarai Mata-No.com 12648 30202 HEAD OF PROJECTS Name Projects Phone No. (02839) 9727792767 Madh 291467 Shri J H Parikh Chher (02839) 9727792609 293022-23 Shri S N Benerjee Kadipani (02669) 9727792806 274221 Shri G K Patel Shivrajpur (02676) 9727792725 243604 Shri G M Dadabhai Gadhsisa (02834) (02834) 282290 282289 Shri H K Joshi Tadkeswar (02623) 9727792766 233052 Shri C R Patel Panandhro (02839) (02839) 282463 284411 Shri A K Garg Bhavnagar (0278) (0278) 2560542 2883802 .Shri S R Bhatt GM (Accounts) (079) 279 (079) 254 fin@gmdcltd.Phone No.

computers or their combinations. weekly and monthly price fluctuations is the most effective means of attempting to capitalize on the future course of price movements. Fundamental Analysis is based on the study of factors external to the trading markets which affect the supply and demand of a particular market. not on evaluating those factors directly. Shri Dinesh Prasad Bhatia (02891) 9727792837. 233104 DIFFERENT TYPE OF ANALYSIS • Technical Analysis • Fundamental Analysis TECHNICAL ANALYSIS Technical Analysis operates on the theory that market prices at any given point in time reflect all known factors affecting supply and demand for a particular market. It is in stark contrast to technical analysis since it focuses. among other things. manual calculations. not on price but on factors like weather. domestic and foreign political and economic events and changing trade prospects. government policies. Technical strategies generally utilize a series of mathematical measurements and calculations designed to monitor market activity. but on an analysis of market prices themselves. Trading decisions are based on signals generated by charts. This approach theorize that a detailed analysis of. actual daily. Consequently. technical analysis focuses. .

change in the future. which may indicate that current prices are inconsistent with underlying economic conditions. that information is not instantaneously assimilated or disseminated and that econometric models can be constructed to generate equilibrium prices. and will.Fundamental analysis theorizes that by monitoring relevant supply and demand factors for a particular market. . Fundamental analysis assumes that markets are imperfect. accordingly. a state of current or potential disequilibrium of market conditions may be identified before the state has been reflected in the price level of that market.

1 0.05513 260.1 . M. 249.8 6 5 2.04019 5 -5.5 -7.58 8 15 7 5 262. 257.92 -2.70 8 5 249 244 246 0. 267.68 8 55 7 253 256.15 0.2 0. of Ope Oscillat M. .5 273.3 8/25/200 250. 8 250 7 242. - 9/1/2008 247 9 244.75 0.0 8/8/2008 15 265 5 257.95 8/18/200 253.84 8 250 254 246.03427 254.04726 5 3.95 1.75 0. .9 193. 256. 261.8 -2 8/26/200 .00290 256.06801 5 -3.02233 255.5 253. 254.5 - 8 260 260 5 251. 190.55 8/6/2008 272 274 255.10 9/4/2008 239 242 198 206. - 9/5/2008 204 85 192 193. 8 4 5 255. 253.3 0.4 -1.95 .9 258.00302 5 -3.04518 250.9 284.15 8/14/200 251.2 8/7/2008 258 8 5 256.04946 5 0. No.05 0.5 -0.3 6 8/20/200 259. - 8 248 4 245 247.45 265.7 -8.1 245.0 .9 8 8 05 5 248. 259. 267.7 247.8 8/27/200 244.15 0.05419 252.75 0.61 1. 246.8 8 8/28/200 245.45 8/12/200 259.6 257.42 -2.15 1 8/5/2008 275 279 266 267. 8/1/2008 250 95 246.01628 256. .2 258.85 9 247. 265.56 . - 8 3 262 243.88 8 9 95 5 258.23823 237.8 4 8/13/200 264. 253.05 7 8/21/200 256.83 -12.05 1.4 241. 50) GAIN LOSS s 277.05 0. .95 0.49 -2.1 - 8 258 258 5 245.65 2 256. 244.75 8/22/200 - 8 252 259 252 253.19469 5 -35 219.5 247.36 9/2/2008 247 9 240.25 5 8/19/200 261. 8/4/2008 277 95 272 275. 256.77 4.2 0.8 0.05 -9.avg( run Date n High Low Close ors Avg.85 0. 252. 231.5 256.75 8 255 85 254. 263.85 5.00137 5 -2.55 3 8/11/200 263.85 8/29/200 250. 256.

Here GMDC market performance was good and its moving average trend is in increasing form. also it has reached the resistance level.10 days and less than 10 days moving average is helpful for short term investment . In this.MOVING AVERAGE An indicator frequently used in technical analysis showing the average value of a security's price over a set period. hence it is advisable to long term investors to sell the share and book the profit at the same time it advisable to the short term investors to buy the share and hold it for mere future and sell it when it reaches the support level. It plots average daily settlement prices over a defined period of time like 10 days and 50 days. I have calculate three moving average on the bases of 10 days.For long term investors 50 days moving average which is helpful for investment in stock market. and 50 days. Thus it is good sign to sell to long term investors Interpretation:- As per tree different period moving average charts show the trend of GMDC in BSE. Interpretation:- As shown in the above chart. Moving averages can be used to quickly identify whether a security is moving in an uptrend or a downtrend depending on the direction of the moving average. Conversely. the market price is below the moving average line also both the market price and moving average is moving along the line. a downward sloping moving average with the price below can be used to signal a downtrend. . As charts when a moving average is heading upward and the price is above it. the security is in an uptrend. Moving average charts is a tool used by technical analysts to track the price movements of a security. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

company oscillator value 0.OSCILLATORS Oscillators is a technical analysis tool that is banded between two extreme values and built with the results from a trend indicator for discovering short-term overbought or oversold conditions. Because. and then another lower peak (shoulder).543 that is the position where an investor should invest in the particular stock or if an exist investor then shoud hold the stock till it reaches it maximum level. and for new investor that not to purchase the particular stock in the mean time. Interpretation:- According to GMDC oscillator chart. HEAD AND SHOULDERS A head and shoulders pattern is also a trend reversal formation. and move towards another investment where there is a great prospect of profitability. This is the highest value of last two years. this is the moment where investors should sell their investment. and as it approaches the lower extreme it is deemed to be oversold. The slope of this line can either be up or down. If we talk about 20 may 2009 then we get the value near than over brought so. Typically.e.78 on 16 Dec 2008. As the value of the oscillator approaches the upper extreme value the asset is deemed to be overbought. But when we move towards minimum level the maximum oversold position is on 8th oct 2008 i. this is the position of over brought so. When we move further and a glance of data from 1dec 08 to 30sep10 the maximum achievable value is on 16. . dec 2008. followed by a higher peak (head). A "neckline" is drawn by connecting the lowest points of the two troughs. it produces a more reliable signal. it is a the time where investor should sold the stock. when the slope is down. when the market correction will done the value of stock definitely decreases. It is formed by a peak (shoulder). -0.

When we talk about the candlestick diagram of last two years we find that over low high and close is increasing over a period of last two years so. from 9th jan 2010 to 6th feb 2010. High. it shows the growth from company’s prospect but it is not good from new investor’s purpose. it is the situation where investor should sale its investment and not the purchase of the same stock. For the particular day. it is good for long term investors but vice-versa for short term investor purpose.Interpretation:- When we show the head and shoulder chart we find an uneven trend of stock movement. we get a actual figure of a stock whether the stock is over sold or over brought in the particular day. If the closing price is above the opening price. Open. So. high.e. CANDLE STICK CHARTS Candlestick is formed with the help of opening. there is not a good time to investment as this point at 6th jan 2010 of near about 172. as we learn earlier that a upward stock movement is not so reliable due to this the current scenario is not the positive for the investment. . and also give a brief of the behavior of sort sellers or speculators in the intraday and interday transactions. The lines (long or short) above and below the body or real body represent the high or low price range and these lines are known as shadows. Normally. Low. The filled or the hollow portion of the candle is known as body or real body which can belong. black colour is used for filling the candle. Close. the highest price is declared by the top of the upper shadow and the lowest price is marked by the bottom of the lower tail. low and closing price of the day. because there is number of head and shoulders drawn over a period of time. and if we talk about movement of stock of last two years there is a increasing trend follow by the stock. If the opening price is above the closing price then a filled candlestick is drawn. Interpretation:- The candlestick chart shows the daily price movement of a stock by four ways i. As. So. Because. tails or wicks. then a hollow candlestick (normally displayed in white with black border) is drawn. The head and shoulder movement is purely upward so. normal or short with proportionate to the line above or below it.

. the last price of stock at 5th Aug. till 10th apr there was a good investment prospect. by an amount exceeding some noise. by an amount exceeding some noise. This means the price is more likely to "bounce" off this level rather than break through it. However. As.V-Formulation Support and resistance level Support and resistance is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels. we show the stock of GMDC cross the support level at 15th Oct. So. once the price has passed this level. However. it is likely to continue dropping until it finds another support level.08. it is likely that it will continue rising until it finds another resistance level. A support level is a price level where the price tends to find support as it is going down. So.10 is near about 150. this would be the time to purchase the stock and it is good stock for long term investor. It is where the price tends to find resistance as it is going up. A resistance level is the opposite of a support level.08 and cross the resistance level 19th nov. As. And from that movement the stock is continuously moving on and on. it is highly risky stock for new investors and suggestion is not to invest in this particular stock in the mean time. Interpretation:- If we talk about support and resistance level of GMDC of last two years we find that 150 and 200. This means the price is more likely to "bounce" off this level rather than break through it. But after 25th jan 2010 when stock cross the Support level again it shows the investment in the particular stock is made some sort of safe investment so. once the price has passed this level.

As we do the technical analysis of GMDC Ltd. Technical analysis is widely accepted worldwide and a very useful tools for the analysis of share price behavior. . we find some outcomes i. • The stock is highly volatile stock as it is a front line stock. The recognition of top and bottoms is in nutshell of technical analysis process. The share market is more challenging. Entering the market at the beginning of the up-trend and getting out of it at the first stroke of the formation in the reversal is the basis of this analysis. political and psychological forces. By studying the nature of previous market turning points it is possible to develop some characteristics that can help to identify major markets top and bottoms.Conclusion:- The study is concerned with the relevant features of technical analysis and about its indicators. • The investor should choose the particular stock wisely. monetary. • In the current time there is a good time to sell the particular stock and should purchase the new with same fetures. • The stock is good for long term investors. fulfilling and rewarding to resourceful investors willing to learn the art of cyclical timing to study of technical analysis.e. under here- • Company is having a good growth rate. The technical approach to invest is essentially a reflection of the idea that price moves in trends which are determined by the challenging attitudes of investors towards a variety of economic.

about.capitaline. • There is a positive correlation in between the stock and market (BSE) price.forextrading. • The stock is showing its Bullish trend over a period of time. . and stock is also overbought. Murphy • Investment analysis and portfolio management By Prasanna Chandra.com • www.bse. • The stock is not good for the new investors as correction is required.about. • In the mean time stock is good for speculators if. they are able to take risks.com • www.investopedia.com/finance • www.com • www. Bibliography:- Websites: • www.com • Books Referred • Technical Analysis of the Financial Markets By John J.sify.com • www.