Chinmay Solankar Black Book Final Draft

SGPC’s GURU NANAK INSTITUTE OF MANAGEMENT STUDIES
(Management Institute of Guru Nanak Khalsa College, Matunga, Mumbai)
Summer Internship Project Report

Titled
Fundamentals & Technical Analysis of IT Mid-Cap
Sector
In the partial fulfillment of the Degree of
Master in Management Studies (MMS)
By
Mr. Solankar Chinmay Maruti
[MMS & Roll No.: 118]
Semester-III & Specialization: Finance
Batch: 2022-24
Under the Guidance of
Corporate Guide
Mr. Saurav Srivastava
(Bajaj Allianz)
Faculty Guide
Prof. Faisal Memon
(Project Guide)
Academic Year:2023-24
SGPC’s GURU NANAK INSTITUTE OF MANAGEMENT STUDIES
Matunga (E), Mumbai – 400 019
CERTIFICATE
This is to certify that Mr. Solankar Chinmay Maruti a student of Class: MMS
Semester: Third bearing Roll No. 118 has successfully completed the projects
titled, “Fundamental & Technical Analysis of IT Mid-Cap Sector”,
In the partial fulfillment of the Degree of Master in Management Studies (MMS).
Place: Matunga
Date:
Name of the Project Guide: Prof. Faisal Memon
Signature of the Project Guide:
Signature Institutes Seal:
(Dr. Satvinder Singh Bedi)

Director
STUDENT DECLARATION
I hereby declare that the projects titled “Fundamental & Technical Analysis of
IT Mid-Cap Sector” is my own work conducted under the supervision of
Prof. Faisal Memon.
I further declare that no part in these projects has been plagiarized without proper
citations and has not formed the basis for the award of any degree, diploma,
associateship, fellowship previously.
Name of Student: Solankar Chinmay Maruti
Signature of the Student:

ACKNOWLEDGEMENT
I would like to express my gratitude to our Director, Dr. Satvinder Singh Bedi
for inspiring me to take up this project.
I wish to acknowledge my sincere gratitude and indebtedness to my faculty

guide Prof. Faisal Memon for his valuable guidance in the preparation of the
Project Report.
I extend my gratitude to “BAJAJ ALLIANZ LTD” and the Mr. Saurav

Srivastava for smooth onboarding process and Mr. Nikesh Ruparel for their
encouragement, support, guidance and assistance for undergoing successful
industrial training and for preparing project report.
It gives me immense pleasure to thank a large number of individuals for their

cordial cooperation and encouragement which has contributed directly or
indirectly in preparing this report.
TABLE OF CONTENTS
Sr.
Topic Description
No.
1. EXECUTIVE SUMMARY 1.
2. INTRODUCTION TO THE TOPIC 4.
3. INDUSTRY OVERVIEW 18.
4. COMPANY OVERVIEW 27.
PROJECT DETAILS
 Objectives and Limitations of The
6. Project 35.
 Methodology
 Source/s of Data
DATA ANALYSIS AND

7. 36.
INTERPRETATION
8. RECOMMENDATIONS/FINDINGS 69.
9. KEY LEARNINGS 70.
10. CONCLUSION 72.
11. REFERENCES / BIBLIOGRAPHY 73.
12. LIST OF ABBREVIATIONS 74.
Project Progress Report Duly Filled &

13. 75.
Signed
14. Approved Project Synopsis 76.

EXECUTIVE SUMMARY
Every MMS student is required to complete a projection on a topic that was given to him for
the summer internship program as part of the curriculum. Accordingly. At Bajaj Allianz in
Mumbai, I have been given the project task of performing a fundamental and technical analysis
of the insurance sector.
The fundamental and technical analysis project teaches a number of areas of portfolio
management, including choosing equity shares, investing in various mutual funds, buying life
insurance, etc. The project attempts to create a portfolio that may provide investors with good
returns, and in order to do this, we considered how to analyze various equities and forecast
their future growth movement.
The first step in forecasting the future of any stock is to conduct fundamental and technical
analysis on it. Starting with the training sessions, we discussed the many investment
alternatives accessible to an investor and how to assist an investor in selecting the best option
so that he may get the most out of his money.
The Insurance industry has been chosen for examination as part of this internship program. The
Insurance sector has been subjected to fundamental and technical examination, with a large-
cap fund mix used for study. In this view, research has been conducted to analyze the equity
shares of firms in the Indian stock market's Insurance industry. The first stage in starting the
study is to do an economic analysis of the sector chosen for research, which will provide insight
into the sector's performance. The following stage is Index Formulation (of the funds chosen
from the sector to be studied) - this assists us in making various decisions on current day share
trading.
Further, Fundamental Analysis would be done where topline, bottom line, ratio analysis and
ratio ranking method will be applied for short listing 'growth-pick and value-pick companies'.
The following step would be the process of hedging, which basically means offsetting the loss
or minimizing the risk associated with the stocks shortlisted; the percentage of shares to be
hedged is directly proportional to the volatility of the stock held; if a share is highly volatile, a
large percentage of shares would be hedged to cover the loss, and vice versa.
The next element in the investigation will be Technical Analysis, which simply represents the
premise that share price movement follows a pattern and the factors that influence price
movement.
We would estimate the future price movement of stocks using technical analysis based on
previous price movement of the stocks. With the forecast result, investors would be able to
make financial decisions such as purchasing, holding, or selling stocks. This study assists us in
forecasting future market trends. The primary goal of technical analysis is to analyze the’
supply and demand of stocks'. Following the completion of all of the preceding procedures, the
outcome will be utilized to make investment, asset allocation, and risk coverage decisions.
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As a result, this study will point potential investors in the appropriate way for investing their
money.
As a result, our analysis will point investors in the appropriate path for investing their money.
As a result, in order to maximize profits while limiting risk, investors must analyze both the
risk and return components of individual stocks within an industry. The results would be
utilized to make investment decisions, asset allocation decisions, and risk coverage decisions
when investing, and a fund sheet would be created appropriately.
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INTERNSHIP OVERVIEW
 Nature of Work Assigned
 Performing live trading by opening trading account in Zerodha in
 market timings.
 Analyze the IT Mid-Cap Sector companies stock charts through various trading
 strategies to perform sale and purchase of stocks.
 We have to Applied strategy by doing Live trade in market and
 analyzing the graph on Trading view.
 We have to perform back testing in Streak.
 Doing live trading in Zerodha Daily.
1) Objectives of Internship:
 Learning the concept of Stock Market.
 Analysis of Mid Cap Companies of the Sector.
 To study the fundamental concept of the IT Mid-Cap Sector.
 To study the technical analysis of the IT Mid-Cap Sector.
 Understanding the products of the company.
 Learning the concept of Derivative Markets.
 Learning the concept of Product Designing.
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INTRODUCTION
INTRODUCTION
The IT Mid-Cap sector is a rapidly growing industry that bridges the gap between small start-
ups and large corporations. In 2022, the industry is expected to see continued growth, with new
players emerging and established companies expanding their reach. The IT mid-cap sector,
which includes mid-sized technology firms, remains a dynamic and lively section of the greater
technology industry. As we enter the year 2023, the sector finds itself working in an
environment marked by significant technical breakthroughs, digital transformation, and
altering market patterns. This introduction seeks to provide a complete overview of the IT mid-
cap sector, highlighting its relevance, essential characteristics, and new trends impacting its
trajectory in the present year. They often possess a balance between stability and growth
potential, making them an attractive investment proposition for risk-aware investors.
Companies in the sector work in a variety of IT subsectors, including software development,

cloud computing, cybersecurity, artificial intelligence (AI), data analytics, and digital services.
These mid-cap organisations are often agile, with a strong emphasis on innovation, market
response, and the capacity to provide personalised solutions to their consumers. The
development of emerging technologies such as AI, machine learning, blockchain, and the
Internet of Things (IoT) brings opportunities as well as challenges for mid-cap IT
organisations. These organisations are frequently at the forefront of developing and
implementing innovative approaches based on these technologies, allowing businesses to
improve efficiency, automate processes, and unleash new revenue sources.
As cyber-attacks become more sophisticated and pervasive, the IT mid-cap sector is seeing an
increase in demand for cybersecurity solutions. With data breaches, ransomware attacks, and
privacy concerns on the rise, mid-cap IT firms specialising in cybersecurity are vital in
preserving sensitive information and defending digital assets. The IT mid-cap sector in 2023 is
also driven by investor state of mind and market trends in terms of market dynamics. As
technology remains a popular investment industry, mid-cap IT companies frequently receive
interest from both institutional and individual investors looking for development prospects.
The sector's potential for mergers and acquisitions activity remains high, as larger players seek
to acquire innovative mid-cap firms to extend their portfolios and market reach.
The IT mid-cap sector encounters a number of challenges. Intense competition, a dynamic

regulatory framework, talent acquisition and retention, and the need to continuously innovate
are all elements that mid-cap IT companies must handle effectively in order to continue growth
and profitability.
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Demand of IT Mid-Cap Industry
Increasing IT Infrastructure Investments: As organisations across industries engage extensively

in modernising their technology stacks, the need for IT infrastructure solutions is increasing.
Mid-cap IT companies play a critical role in infrastructure services such as hardware, software,
networking, and cloud solutions. With the expanding digital transformation initiatives and the
need for scalable, secure, and cost-effective infrastructure, there is a huge need for IT mid-cap
firms that can provide bespoke solutions to meet the needs of a variety of organisations.
Scalable IT Solutions: Mid-cap enterprises in the IT industry provide a more personalised and
flexible approach than major corporations. They offer the flexibility to adapt to the unique
needs of organisations and deliver scalable solutions that may develop alongside their clients.
As companies seek scalable IT infrastructure, software applications, and services, the demand
for IT mid-cap firms grows.
Niche Expertise: Many IT mid-cap companies have developed niche expertise in specialized
areas such as artificial intelligence, blockchain, Internet of Things (IoT), virtual reality, and
augmented reality. Organizations looking to leverage these emerging technologies and
integrate them into their operations often turn to mid-cap firms due to their domain knowledge
and ability to provide focused solutions. The demand for these niche services drives the growth
of the IT mid-cap industry.
Cost-Effectiveness: When compared to their larger rivals, IT mid-cap enterprises frequently

provide competitive pricing structures. This feature of affordability appeals to small and
medium-sized organisations (SMEs) with limited finances. Small and medium-sized
enterprises (SMEs) may now access high-quality IT services and solutions without straining
their financial resources, fuelling demand for IT mid-cap firms as preferred partners for
technology implementation and support.
Customer connections: IT mid-cap organisations frequently place a premium on developing

excellent customer connections. They provide personalised help, regular communication, and
a focused approach to understanding and addressing client needs. This emphasis on client
satisfaction increases their image and attracts firms looking for long-term IT relationships. The
confidence and relationship they build with their client’s fuels demand for IT mid-cap
companies.
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Supply of IT Mid-Cap Industry
The supply of IT mid-cap firms is distinguished by their capacity to provide a comprehensive

array of services encompassing all aspects of technology deployment and support. Many IT
mid-cap firms specialise in particular domains or technologies. This specialisation allows them
to gain in-depth knowledge and provide targeted solutions. Some mid-cap companies, for
example, specialise in healthcare information technology (IT), financial technology (fintech),
e-commerce solutions, enterprise resource planning (ERP), customer relationship management
(CRM), or industry-specific software development. The supply of IT mid-cap firms is
enhanced by their specialised knowledge and ability to meet the needs of specific markets.
IT mid-cap firms are distinguished by their broad service portfolios, specialisation in specific
domains or technologies, emphasis on innovation and R&D, scalability, regional presence,
collaborations, and access to talented staff. The IT mid-cap industry has a diverse supply of
providers capable of serving the technology needs of organisations in a variety of industries.
Key Players of IT Mid-Cap Industry
Several prominent participants in the IT mid-cap market have established themselves as

significant contributors to the technology sector. While the landscape is dynamic and
vulnerable to change, the following companies have been important players in the IT mid-cap
industry:
Mindtree Ltd was an Indian multinational information technology services

and consulting company, headquartered in Bangalore. Mindtree was acquired by Larsen &
Toubro in 2019 before being merged with L&T Infotech (LTI) in 2022 to form LTI Mindtree.
The company had business interests in e-commerce, mobile applications, cloud
computing, digital transformation, data analytics, testing, enterprise application integration,
and enterprise resource planning. It had more than 307 active clients and 43 offices in over 18
countries, as of 31 March 2019.
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Zensar Technologies Limited is an Indian publicly traded software and services company.
The company's stock trades on the Bombay Stock Exchange and on the National Stock
Exchange of India. A subsidiary of RPG Group, the company's chairman is Harsh Goenka.
Zensar traces its origin to 1922 when a British original-equipment manufacturing firm
established a regional manufacturing unit in Pune, India. The firm evolved to become the
Indian manufacturing arm of British computer maker ICL, and was re-named ICIM
(International Computers Indian Manufacture). In 1963, ICIM listed on the Bombay Stock
Exchange. In 1991, ICIM established a subsidiary company named International Computers
Limited (ICIL), with a focus on software. In 1999, the original hardware division of ICIM was
shuttered, leaving ICIM/ICIL as a purely software company.
Mphasis Limited is an Indian multinational information technology services

and consulting company based in Bengaluru. The company provides infrastructure technology
and applications outsourcing services, as well as architecture guidance, application
development and integration, and application management services. It serves financial
services, telecom, logistics, and technology industries. Mphasis was ranked #7 in India IT
companies and overall, #189 by Fortune India 500 in 2019. In April 2016, Hewlett Packard
Enterprise sold the majority of its stake in Mphasis to Blackstone Group LP for around US$1
billion.
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WHAT IS FUNDAMENTAL ANALYSIS?
Fundamental analysis (FA) is a way of identifying a security's underlying worth that entails
examining important economic and financial components. Fundamental analysis looks at all
aspects that can affect the value of a security, from macroeconomics like the state of the
economy and market conditions to microeconomics like managerial efficiency.
By comparing it to its current price, the goal is to arrive at a number that an investor can use to
assess whether an investment is cheap or overvalued. This technique to stock analysis is
considered as diametrically opposed to technical analysis, which makes price predictions based
on historical market data such as price and volume.
Fundamental analysis is most commonly employed to evaluate stocks, but it may be used to
evaluate any security, from bonds to derivatives. If you consider the fundamentals, from the
broader economy to the particular of the organization, you are conducting basic research.
UNDERSTANDING FUNDAMENTAL ANALYSIS
Every stock analysis seeks to determine if a security is reasonably valued in comparison to the
market as a whole. Fundamental research from a macro to micro perspective is widespread
practice in order to identify securities that the market has mispriced.
Analysts typically analysts the overall health of the economy first, followed by the health of
the relevant industry, to establish the stock's fair market value. Only then do they focus on the
performance of certain companies.
Fundamental analysis uses publicly available data to determine the value of a stock or other
type of security. For example, an investor can conduct fundamental analysis on the value of a
bond by studying economic variables such as interest rates and the overall state of the economy,
then investigating information on the bond's performance.
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HOW TO DO FUNDAMENTSL ANALYSIS OF STOCKS?
1. Understand the sector.
It is critical that you understand the industry in which you intend to invest. You will have a
better grasp of how the company is doing, if it is making the best long-term decisions, and
whether you should maintain or sell the shares. A good place to start is by visiting its website
and learning about the company, its management, its promoters, and its products.
2. Use the financial ratios for initial screening.
The Indian stock exchange has around 5,500 stocks listed. Reading the financials of all of these
companies (balance sheet, profit-loss statement, etc.) may take years. Most corporations'
annual reports are 200-300 pages lengthy. It's also not worth your time to read each company's
report. A better strategy would be to first choose a few good organizations based on a few
criteria. Then, one by one, research these selected companies to find the one that best suits you.
For the initial screening of companies, different financial parameters such as Price to Earnings
(PE) ratio, Price to Book Value (PBV) ratio, ROE, CAGR, Current ratio, Dividend yield, and
so on can be used.
3. Understand the company.
After you've selected the companies using the criteria listed above, the following step is to
investigate them. It is critical that you understand the business in which you are investing.
Because if you don't, you won't be able to determine whether the company is performing well
or poorly, whether it is making the right decisions for its future goals, whether its competitors
are performing well or poorly in comparison to them, and, most importantly, whether you
should hold or sell the stock.
As a result, it is critical that you understand the company. You should be aware of the
company's products/services, who is heading it (founders/promoters), management efficiency,
competitors, and so on.
A simple way to learn about the company is to go to its website. Visit the company's website
and look at the 'ABOUT', 'PRODUCTS', 'PROMOTERS/BOARD OF DIRECTORS', and so
on. Read the company's mission and vision statements. Furthermore, if you can locate the
company's annual report, download and read it. This report will provide detailed information
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about the company. Furthermore, if you comprehend the company's products, services, and
vision and find it appealing, proceed to the following step. Otherwise, disregard such company.
4. Study the financial reports
As soon as you have a good understanding, you should start researching the company's
financial records, which include the balance sheet, profit-loss accounts, cash flow statements,
operational costs, sales, and expenses, among other things. If the company's net profit has
increased over the last five years, this could be interpreted as a good indicator for the company.
Its compound annual growth rate (CAGR), revenue, and other parameters can be evaluated.
5. Check the debt
Debt is a crucial factor that can have a detrimental impact on a company's profitability. If a
security has a large debt, it will be unable to perform adequately and pay you back. It is
recommended that you avoid companies that are heavily in debt. Always look for investing
opportunities in companies with debt-to-equity ratios less than one.
6. Find the company’s competitor
The company in which you wish to invest must perform well in comparison to its competition.
Look for a company that is outperforming the competition. It should have more future
prospects, upcoming initiatives, additional facilities, and so on.
7. Analyze future prospects
When making long-term investments, fundamental analysis is the finest tool to use. Invest in
companies whose products will be relevant in 15 to 25 years.
8. Review all the aspects from time to time.
Do not invest in a business only to ignore it afterwards. Maintain your knowledge of the
company in which you have invested. You should be kept up to date on all corporate news and
financial performance. If the corporation has a problem, sell the security.
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BENEFITS OF FUNDAMENTAL ANALYSIS
1. Helps in Identifying Good Stocks
The main advantage of fundamental analysis is that it helps you in selecting a good stock after
considering all the complexities of the stock market. Therefore, investors can select stocks of
companies having solid business models and sustainable revenue projections. Fundamental
analysis keeps you updated about the economy, interest rates, etc. Investors can select stocks
after analyzing the companies from all angles. Thus, the probability of making profits is quite
high in such an investment.
2. Provides a Strong Base for Investment
Fundamental analysis helps in providing a strong base. It can help an investor pick up the right
stock from a bunch of stocks. An investor can check which stock (from the basket of stocks)
will be benefited once all the related factors are considered. These factors include interest rates,
GDP data, employment data, etc. After considering these, an investor can take a call
accordingly.
3. Helps in Developing a Thorough Understanding
Fundamental analysis helps an investor in the development of a rich understanding of the

company’s business model. This understanding is of utmost importance since you are about to
invest your hard-earned money. Since economic parameters are considered, investors are able
to gather the right information to make rational decisions.
4. Helps in Eliminating Biases
Most investment decisions tend to go wrong as a result of cognitive biases. However, numbers
don’t lie, and they limit the room for personal biases. This is critical for wealth creation over
the long run. Instead of establishing entry and exit points, fundamental analysis helps an
investor in taking a long-term view of the equity markets.
5. Helps in Detecting Red Flags
With the help of fundamental research and analysis, it is easier to detect red flags in the
financial statements of the company. These flags serve as a warning signal about possible
problems with the company.
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WHO USES FUNDAMENTAL ANALYSIS?
1 Individual Investors: Many individual investors use fundamental analysis to evaluate the
financial health and prospects of companies before making investment decisions. They analyze
factors such as revenue, earnings, growth potential, industry trends, and competitive
positioning to assess the value of a stock.
2. Financial Analysts: Professionals working in investment banks, brokerage firms, and other
financial institutions rely heavily on fundamental analysis. They analyze financial statements,
industry reports, economic data, and other relevant information to provide investment
recommendations to clients or make informed trading decisions.
3. Portfolio Managers: Fund managers and portfolio managers use fundamental analysis to
construct and manage investment portfolios. They evaluate individual securities and make
investment decisions based on factors such as company earnings, valuation, industry trends,
and risk factors.
4. Investment Bankers: Investment bankers use fundamental analysis to assess the value of
companies involved in mergers and acquisitions (M&A), initial public offerings (IPOs), and
other corporate transactions. They analyze financial statements, market trends, and industry
dynamics to determine the fair value of a company and negotiate deal terms.
5. Credit Analysts: Banks and lending institutions employ credit analysts to evaluate the
creditworthiness of borrowers. Fundamental analysis helps them assess a company's ability to
repay loans by examining its financial statements, cash flow, debt levels, and other relevant
factors.
6. Equity Research Analysts: Equity research analysts employed by brokerage firms or

independent research firms use fundamental analysis to provide investment research and
recommendations to clients. They study company financials, industry trends, competitive
landscape, and macroeconomic factors to determine the fair value of a stock and make buy/sell
recommendations.
7. Institutional Investors: Large institutional investors such as pension funds, mutual funds, and
hedge funds employ fundamental analysis to guide their investment decisions. They analyze a
wide range of factors, including company financials, industry analysis, management quality,
and market trends, to make informed investment choices.
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WHAT IS TECHNICAL ANALYSIS?
Technical analysis is a method or procedure that forecasts the anticipated future price
movement of securities, such as a stock or currency pair, using market data.
The assumption that all market participants' aggregate activity - buying and selling - accurately
represent all relevant information pertaining to a traded asset and so consistently assign a fair
market value to the security underpins the legitimacy of technical analysis.
UNDERSTANDING TECHNICAL ANALYSIS
Technical analysis methods are used to examine how supply and demand for a securities effect
price, volume, and implied volatility variations. It is based on the concept that a security's
historical trading activity and price fluctuations can be useful indications of the security's future
price movements when combined with appropriate investment or trading guidelines.
It is frequently used to produce short-term trading signals from various charting tools, but it
can also aid in determining a security's strength or weakness in relation to the larger market or
one of its sectors. This data assists analysts in improving their overall valuation estimate.
In the late 1800s, Charles Dow and the Dow Theory pioneered technical analysis as we know
it today.1 Several notable researchers, including William P. Hamilton, Robert Rhea, Edson
Gould, and John Magee, contributed to Dow Theory principles, assisting in the formation of
its foundation. Nowadays, technical analysis includes hundreds of patterns and signals created
over many years of research.
For millennia, traders, analysts, and investors have relied on technical analysis, which has
gained widespread support among regulators and academics due to its behavioral finance
characteristics. This reading provides an overview of the topic, compares technical analysis to
other schools of thought, and covers some of the most important instruments employed in
technical analysis. Despite the fact that technical analysis adheres to set norms and principles,
the interpretation of results is often subjective. That is, while certain components, such as
indicator computation, follow certain criteria, the interpretation of findings is frequently
dependent on a blending of methodologies that suit the individual analyst's style and approach.
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HOW TO DO TECHNICAL ANALYSIS?
Historical Price:
The price of a stock is expected to move in a trend or cycle, and hence previous price levels
play an important role in stock market analysis utilizing technical analysis. The history price
of any stock informs us a lot about its future price. Traders use previous performance on their
charts to determine the best entry and exit positions for their trades. This is how technical
analysis investing works, and many fundamental investors use technical analysis to determine
the best entry points for every company.
Technical Charts:
Technical analysis charts are the only weapon in the armory of any technical trader. Price (y-
axis) is displayed against time (x-axis) in linear or other formats in this chart. The other form
could be a candlestick chart (which is generally liked), a point and figure chart, a bar chart, or
a Renko chart, among others. Candlestick charts, on the other hand, are the most popular type
of technical chart.
Technical analysis is highly dependent on two of the parameters mentioned below:
1. Time Frames
2. Technical Indicators
Time Frames:
This time period represents the duration of the candlestick chart's range. For example, if the
time frame is 5-minutes, a single candle will represent the price every 5 minutes. The time span
ranges from one minute to a year and is considered one of the most well-known technical
analysis stock market strategies. The following are some well-known time frames:
• 5 minutes chart • 15 minutes chart • Hourly chart • Daily chart • Weekly chart
• Monthly chart
For technical analysis, intraday traders favor time frames of 5 minutes or 15 minutes. Investors
with a longer investment horizon, on the other hand, often prefer a daily, weekly, or monthly
time period chart.
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Technical Indicators:
The chart just shows the price fluctuation at various points in time. When conducting stock
analysis utilizing technical analysis techniques, a trader must use a variety of indicators to have
a better understanding of the stock's likely behavior. These indicators are briefly outlined in
this section and can help a user undertake technical analysis of equities.
• Relative Strength Index (RSI): This is a momentum indicator that can tell you if an investment
is overbought (RSI > 70) or oversold (RSI 30).
• Support and resistance: These are price points on a stock's chart that show where the share
price is expected to decrease (support) and where it is expected to rise (resistance). These points
are drawn from the historical share price trend.
• Demand and Supply Zones: These zones are a more technical extension of support and
resistance. Buyers are waiting in the demand zone to purchase the stock, while sellers are
waiting in the supply zone to sell it.
• Moving Averages: This is a more advanced representation of a stock's average price that is
used to identify trends in a chart.
• Fibonacci Retracement: This is a slightly complicated concept that involves different

percentages of support and resistance lines. These percentages represent the amount of
retracement that can be anticipated at the share price.
• Moving Average Convergence Divergence (MACD): MACD is a momentum indicator that

represents the relationship between two moving averages.
• Volume: As the name implies, this is the active volume of a share traded on the market at any
given time. Higher volumes indicate greater liquidity, and vice versa.
IMPORTANCE OF TECHNICAL ANALYSIS
Performing technical stock analysis can help you determine the following:
• Intrinsic stock value compared to its market price.
• Ability of an asset to perform in the market.
• Instability of an asset’s price over a particular period.
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• Historically persistent price fluctuations.
• Impact of certain micro and macroeconomic events on stock value.
• Trade volumes, resistance and support levels.
• On-going stock market trends.
BENEFITS OF TECHNICAL ANALYSIS
• Determining Entry and Exit Points
You can forecast the price trends of your target stocks using technical analysis. This will assist
you in determining the best timing to enter or quit the market and book profits on your trades.
In this regard, time charts and candlestick patterns can be useful.
• Analyzing Market Trends
You can use technical market analysis to forecast future market patterns such as uptrends,
downtrends, and sideways trends. Thus, based on your study, you may plan your transactions
to maximize profits.
•Understanding Investor Psychology:
Technical analysis can also assist you comprehend the mentality of other market participants.
It can help you gain a thorough understanding of their trading actions and investor emotions.
• Detecting Early Signs of Trend Reversal:
The ability to recognize early signals of a price trend reversal is a significant advantage of
employing technical analysis. You can accomplish this by using price volume analysis to
square off your positions before your asset prices decline.
•Provides Valuable Market Information:
Technical analysis can provide a wealth of information through support and resistance levels,
volatility, chart and candlestick patterns, and so on. This will assist you in taking the right
positions and thus building a more substantial portfolio. Furthermore, this type of information
is useful for all types of trading, including intraday, short-term, long-term, and swing trading.
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• Helps Determine Target and Stop Loss Price:
You can create your target and stop loss positions based on technical analysis because it helps
predict future price patterns. Furthermore, by doing so, you may establish a clear strategy for
achieving your goals based on your risk tolerance.
WHO USES TECHNICAL ANALYSIS?
1. Traders: Short-term traders, such as day traders or swing traders, often rely heavily on
technical analysis. They use charts, patterns, and technical indicators to identify short-term
price trends, determine entry and exit points, and make quick trading decisions.
2. Active Investors: Active investors who engage in frequent buying and selling of securities
may use technical analysis alongside other tools to time their trades and take advantage of
market trends. They may incorporate technical indicators and chart patterns into their decision-
making process.
3. Technical Analysts: Professionals specializing in technical analysis, known as technical

analysts or chartists, use this approach as their primary method of analyzing markets. They
study historical price data, volume, and various technical indicators to forecast future price
movements and provide trading recommendations.
4. Quantitative Traders: Some quantitative trading firms and algorithmic traders utilize
technical analysis as part of their trading strategies. They may develop automated trading
systems that incorporate technical indicators and patterns to generate buy and sell signals.
5. Risk Managers: Risk managers and professionals involved in risk assessment and portfolio
management may use technical analysis to monitor market trends, identify potential risks, and
adjust portfolio allocations accordingly. Technical analysis can provide insights into the overall
market sentiment and help manage risk exposure.
6. Individual Investors: Like fundamental analysis, technical analysis is also used by individual
investors who prefer a more technical approach to investing. They may learn and apply
technical analysis techniques to make investment decisions based on price patterns, trends, and
other technical indicators.
17
INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
The IT (Information Technology) mid-cap sector refers to a segment within the technology
industry that consists of medium-sized companies with a market capitalization ranging from
approximately Rs.5000 Cr-Rs.20000 Cr. These companies play a crucial role in the technology
landscape, combining the agility and growth potential of small businesses with the established
market presence of larger enterprises.
The Indian IT Mid-Cap sector is known for its technological excellence and innovative
solutions, contributing to India's emergence as a global technology hub. The sector is a major
source of revenue through exports, with a significant foothold in the US and European markets.
The IT Mid-Cap sector in India has recorded impressive growth in assets in recent years,
showcasing a CAGR of 19% over the last five years. The sector is expected to grow by 15-
17% in FY22, driven by increasing demand for digital solutions and services.
The cloud, automation, and AI are major trends dominating the industry. The COVID-19
pandemic has accelerated the adoption of cloud-based services. The shift from traditional IT
services to digital services is another trend that is expected to continue in the future.
The Indian IT Mid-Cap sector faced significant challenges during the pandemic, impacting
credit growth. Despite these challenges, the sector showcased a modest growth rate of 7-8% in
FY21, with the expectation of a 10-12% growth rate in FY22. Furthermore, technological
innovation is expected to drive credit growth in the sector in the future.
Key Initiatives and Government Support
Make in India: A government initiative aimed at promoting the growth of the Indian economy
through increased domestic production.
Digital India: An initiative to empower India's citizens by helping them get access to digital
services.
Start-ups: An initiative to promote and support start-ups, with a focus on job creation and
innovation.
18
Positive Growth: The Indian IT Mid-Cap sector is positioned for optimistic growth in the
future. The sector is expected to grow by $135 billion and provide jobs to over 30 Lakh people
by 2025.
Digital Transformation: The Indian IT Mid-Cap sector plays a crucial role in the country's
digital transformation journey. New-age technologies like AI, blockchain, and cloud
computing will drive growth in the future.
The Indian IT Mid-Cap sector showcases immense potential and opportunities, making it a
vital component of India's economy.
SWOT
Strengths:
Innovation and Technological Expertise: The IT mid-cap sector is known for its innovation and
technological expertise. These companies often focus on niche areas and have the ability to
develop cutting-edge products and services, providing a competitive advantage in the market.
Agility and Flexibility: Mid-cap IT companies are often more agile and flexible compared to
larger corporations. They can quickly adapt to changing market conditions and customer
demands, allowing them to seize new opportunities and respond to challenges effectively.
Market Positioning: Many mid-cap IT companies have established a strong market position
within their respective niches. They have built a loyal customer base and developed deep
industry relationships, enabling them to compete effectively against larger competitors.
19
Cost Efficiency: Compared to large enterprises, mid-cap IT companies tend to have lower
operational costs. This cost efficiency allows them to offer competitive pricing for their
products and services, attracting price-sensitive customers.
Weaknesses:
Limited Resources: Mid-cap IT companies often face resource limitations, including financial
constraints and a smaller workforce. This can impact their ability to invest in research and
development, expand into new markets, or compete with larger players.
Scale and Reach: Mid-cap companies may struggle to achieve the same scale and reach as their
larger counterparts. They might face challenges in securing major enterprise contracts or
entering global markets due to limited brand recognition and distribution networks.
Vulnerability to Economic Fluctuations: The IT mid-cap sector can be particularly susceptible

to economic downturns. Reduced IT spending during recessions or market downturns can
negatively impact revenue and profitability, making them more vulnerable compared to larger,
diversified organizations.
Opportunities:
Emerging Technologies: The IT mid-cap sector has the opportunity to capitalize on emerging
technologies such as artificial intelligence, blockchain, cloud computing, and cybersecurity.
By investing in these areas, mid-cap companies can gain a competitive edge and expand their
market share.
Industry Consolidation: The IT industry is known for mergers, acquisitions, and partnerships.
Mid-cap companies can leverage consolidation opportunities to strengthen their market
position, acquire new technologies, access new markets, and achieve economies of scale.
Digital Transformation: As businesses across industries undergo digital transformation, mid-

cap IT companies can provide the necessary solutions and services. They can assist companies
in adopting new technologies, optimizing processes, and enhancing their digital presence.
Threats:
Intense Competition: The IT industry is highly competitive, with numerous players, including
large corporations and start-ups. Mid-cap companies face competition from both sides, which
can erode their market share and profitability if they fail to differentiate themselves effectively.
Rapid Technological Changes: The IT landscape is characterized by rapid technological

advancements. Mid-cap companies must continually invest in research and development to
keep pace with evolving trends and remain relevant. Failure to adapt to new technologies can
result in obsolescence.
Data Privacy and Security Concerns: With the increasing reliance on technology, data privacy
and security have become major concerns. Mid-cap IT companies must address these issues
adequately to build trust with their clients and ensure compliance with regulations. A data
breach or security incident can severely damage their reputation and result in legal and financial
consequences.
20
Overall, the IT mid-cap sector has unique strengths in innovation, agility, and market
positioning. However, it faces challenges related to limited resources, scalability, and economic
fluctuations. By leveraging opportunities in emerging technologies and digital transformation
while addressing competition and security threats, mid-cap IT companies can thrive in a
dynamic and competitive industry.
MAJOR COMPANIES IN IT Mid-Cap Sector
Sr. No. Company Name Shareholdings Established On Headquarter
1 Mindtree 61.02% 1999 Bengaluru
2 Mphasis's 55.99% 1998 Bengaluru
3 Persistent Sys. 31.26% 1990 Pune
4 Coforge 55.73% 1992 Uttar Pradesh
21
TOP 3 IT Mid-Cap Sector In INDIA
ZENSAR TECHNOLOGY –
Zensar traces its origin to 1922 when a British original-equipment manufacturing firm
established a regional manufacturing unit in Pune, India. The firm evolved to become the
Indian manufacturing arm of British computer maker ICL, and was re-named ICIM
(International Computers Indian Manufacture). In 1963, ICIM listed on the Bombay Stock
Exchange. In 1991, ICIM established a subsidiary company named International Computers
Limited (ICIL), with a focus on software. In 1999, the original hardware division of ICIM was
shuttered, leaving ICIM/ICIL as a purely software company.
In February 2000, the company renamed to Zensar. Ganesh Natarajan became CEO in 2001,
beginning a 15-year tenure. From 2000 to 2005, the company focused on application
management for its clients. RPG Group, the Indian industrial conglomerate headquartered
in Mumbai, Maharashtra, is the majority shareholder in the company. The company continues
to have its headquarters in Pune in Western India.
By 2012, Zensar had approximately 11000 employees servicing 400 clients in over 20 global
locations and at the end of the 2019 financial year earned revenues of over US$550 million.
Zensar Technologies Limited is an Indian publicly traded software and services company. The
company's stock trades on the Bombay Stock Exchange and on the National Stock Exchange
of India. A subsidiary of RPG Group, the company's chairman is Harsh Goenka.
Stocks Market Performance
22
Financial Performance of Zensar Technologies
CYIENT –
Cyient (formerly Infotech Enterprises Limited) is an Indian multinational technology company

that is focused on engineering, manufacturing, data analytics, and networks and operations.
Infotech Enterprises Ltd. was established in 1991 in Hyderabad. Infotech Enterprises was re-
branded as Cyient in 2014 and was featured among the top 30 outsourcing companies in the
world in 2018.
Cyient was established as Infotech Enterprises Ltd. in 1991 in Hyderabad by B. V. R. Mohan

Reddy. In 1995, the company received its first ISO 9002 certification from BVQi London for
its conversion services. Infotech Enterprises started its operations as a private limited to provide
engineering service to global markets. It encountered a strong resistance to the very concept of
engineering outsourcing, but found immediate opportunity in the GIS arena. Cyient became a
public limited company in 1997, had an IPO of equity shares at ₹ 20/- per share and listed in
all major stock exchanges in India. Around 1999, it signed a breakthrough contract to
provide GIS conversion and consultation mapping services worth US$5.5 million to US based
23
Analytical Surveys, Inc. Within the same year, the company acquired Cartographic Sciences
from Analytical Surveys, Inc. In June 1999, the company acquired Data view Solutions
Limited, a UK based GIS Software Company. The company continued to pursue engineering
services, and finally got a major breakthrough with a leading aircraft engine manufacturer in
the year 2000 for engineering services.
Infotech Enterprises Limited adopted the Cyient name in 2014. On May 7, 2014, Cyient
Limited, formerly known as Infotech Enterprises Limited, officially announced its new name
based on approval from a shareholders' vote. The process of determining the new identity,
bearing connotations to the word’s client and science, while Cyient referencing Infotech
Enterprises, involved various brand specialists, and the new name was tested in 17 languages.
Financial Performance of Cyient LTD
24
MASTEK –
Mastek is an enterprise-level digital engineering and cloud transformation company with

operations in 40 countries. Listed on the National Stock Exchange and Bombay Stock
Exchange. the company provides digital transformation services and software to large public
and private enterprises, with over 5,810 employees globally. The company is headquartered
in Mumbai, Maharashtra.
Mastek, formerly Management and Software Technology Private Limited was founded on 14
May 1982 by three Indian Institute of Management Ahmedabad alumni Ashank Desai, Ketan
Mehta and R. Sundar. They were later joined by Sudhakar Ram who held the role of Group
CEO of the company until late 2016 when John Owen joined the business and took over as the
Group CEO. Ashank Desai now operates as the Vice Chairman and Hiral Chandrana joined
Mastek as Global CEO in July, 2021.
In 1992 Mastek acquired Carter Cast Systems, an IT company as part of the plan to establish
the Mastek footprint in the UK and set up base in Theale.
In 1995 Capita engaged Mastek to bid for the London Congestion Charging scheme. In 2003,
BT Global Services invited Mastek to join the consortium for the Spine programme. Mastek
was involved in delivering and maintaining several applications for the NHS Spine over the
next decade – involving over 130 deliveries during the project phase.
25
Financial Performance of Mastek
26
COMPANY OVERVIEW
COMPANY OVERVIEW
BAJAJ ALLIANZ
Allianz SE, the world's biggest insurer, and Bajaj Fiserv Limited have partnered to form Bajaj
Allianz General Insurance Company Limited. On May 2, 2001, the Company got a certificate
of registration from IRDA to undertake general insurance business in India. Today, Bajaj
Allianz General Insurance is one of the industry's major private insurers, with offices in over
1100 towns and cities. The Company has been steadily extending its activities in order to better
serve its clients.
The company recently revised its brand identity to 'Caringly Yours' in order to recast itself in
the eyes of Indian consumers as a brand that protects and cares about their most cherished
belongings - their health, house and content, vehicles, businesses, and so on. With this, the
Company aspires to not only elevate its service to the next level, but also to give the finest
customer experience at every touchpoint and to make insurance a pull product rather than a
push product.
With a comprehensive range of products and services that go beyond insurance, Bajaj Allianz
General Insurance caters to individuals throughout the country's demographics as well as the
business sector. With its innovative digital and mobile applications, the Company not only
brings insurance solutions to clients' doorsteps, but it also increases insurance penetration.
Today, it has reached out to over 1000 new Tier 2 and 3 towns across India via its digital
offices. The Company places a great emphasis on client centricity and strives to provide
superior value while providing an excellent and caring experience for the customer. Today, the
Company is expanding its client interactions beyond insurance by providing them with a slew
of digitized customer-centric activities.
In fiscal year 2022-23, the company reported strong financial achievements, with revenue of
Rs 15,487 crore. The company earned Rs. 1,348 crores in net profit. For the period, Bajaj
Allianz General Insurance also reported a healthy Combined Ratio of 100.5% and Solvency
Ratio of 391%.
27
History:
With a clear commitment and ambition to be India's life goals enabler, Bajaj Allianz Life (the
Company) is now one of the country's leading private life insurers. The Company is a
collaboration between two household brands and formidable enterprises in their own right: the
Bajaj Group's Bajaj FinServ Limited and Allianz SE, the world's top insurance giant.
Bajaj Allianz Life began operations in 2001. It has extended its presence across the country in
less than two decades, serving vast groups of clients through its 582 branches scattered across
India, 80,000+ agents, a big set of partners, and a strong presence in the internet category. It
has been able to do so because the Company innovates, develops, and offers a diverse portfolio
of comprehensive, customized, and market-specific life insurance solutions. The great
confidence that the Bajaj Allianz Life brand has established in India, along with competitive
pricing and technological skill, has enabled the Company to position itself as a market leader
among private life insurers.
Over the past year, Bajaj Allianz Life has strengthened its position while adding new feathers
to its cap. In addition, the Company intends to be at the forefront of tech-enabled services and
digital disruptions in this field. It has adopted cutting-edge technology to increase its digital
footprint by improving mobile solutions, analytics, and cloud services, among other
technological advancements. It is going towards process automation in order to provide a
competitive advantage and impetus for its intermediaries, employees, and partners, with the
goal of providing a comprehensive, better client experience. As a life insurer, Bajaj Allianz
Life remains committed to being there for its customers in times of need. Its improved
processes and automation have also aided customers during the claim process. Between FY
2006-07 and FY 2018-19, the Company paid over 2 lakh individual claims, with a total claim
value exceeding INR 3,600 crores, and has a strong Claim Settlement Ratio of 95.01%.
Bajaj Allianz Life is regularly recognized for creating value for the industry and its consumers.
In 2018, it was named one of the Top 75 Most Valuable Indian Brands by WPP Plc. and Kantar
Millward Brown in a research. Bajaj Allianz Life placed third among private life insurers in
the 2019 Nielson and ET Brand Equity Most Trusted Brands study. The State Bank of India
(SBI), a Fortune 500 business, is an Indian multinational, public sector banking and financial
services statutory entity based in Mumbai. SBI's long past and reputation of over 200 years
establishes it as the most trusted bank among Indians across generations. SBI, India's largest
bank, serves over 45 crore customers through its vast network of over 22,000 branches, 62617
ATMs/ADWMs, and 71,968 BC outlets, with an unwavering focus on innovation and customer
centricity stemming from the bank's core values of Service, Transparency, Ethics, Politeness,
and Sustainability. Through its many subsidiaries, such as SBI General Insurance, SBI Life
Insurance, SBI Mutual Fund, SBI Card, and so on, the bank has successfully diversified its
business. It has a global footprint and operates across time zones with 229 offices in 31 different
28
countries. SBI continues to revolutionize banking in India as it strives to provide responsible
and sustainable banking solutions.
Mission:
We will seek to understand consumers' insurance needs and transform them into reasonable,
high-value solutions as a responsible, customer-focused industry leader. Collaboration based
on synergies.
Bajaj Allianz is an industry leader in general and health insurance, as well as risk management.
This collaboration successfully combines Bajaj FinServ's extensive distribution network and
in-depth knowledge of the local market with the Allianz Group's global experience and
technical expertise.
As a recognised Indian Insurance Company with a capital basis of Rs. 110 crores, the company
is fully licenced to underwrite all lines of insurance business, including health insurance.
Vision:
1. To be the first-choice insurer for customers.
2. To be the preferred employer for staff in the insurance industry.
3. To be the number one insurer for creating shareholder value.
29
SWOT ANALYSIS OF COMPANY
STRENGTHS:
1. Allianz SE's global insurance exposure and Bajaj's strong local implementation.
2. Has a network that spans 1100 cities and Towns.
3. Fundamentally sound with high-paying potential.
4. Allianz AG is a multinational insurance behemoth and one of the world's top asset
managers, have 115 years of financial experience in over 70 countries and assets worth
billions of dollars.
WEAKNESS:
1. Rural regions have a low penetration rate.

2. In comparison to established players, there is a smaller infrastructure.
OPPORTUNITIES:
1. Expanding the potential of the rural market.

2. Growing income for urban youth.
THREATS:
1. Instability and crises in the economy.

2. The emergence of new non-bank financial institutions (NBFIs) in the
market.
3. Raising public awareness about the need of protecting one's future.
30
Achievements:
Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's Investors
Service for seven consecutive years. This rating indicates highest claims paying ability and a
fundamentally strong position.
Bajaj Allianz General Insurance was recognized as the Aon Best Employer 2016 highlighting
the company's excellence in promoting a transparent culture and healthy work environment
along with designing employee friendly policies. The award was an outcome of the Aon Best
Employers 2016 Study which was conducted in partnership with Business world and
Bloomberg TV. Bajaj Allianz GIC was chosen as one of the best Health Insurance Providers
of the Year by Outlook Money Awards 2015, for best-in-class and innovative products and
services and exceptional claims management processes. Bajaj Allianz General Insurance was
conferred the Economic Times Best Corporate Brand Award as an outcome of Economic Times
Best Brands Survey 2016 identifying the company as one of the best brands according to the
consumers in urban India. The company was recognized as the Most Admired Health Insurance
Company of the Year by Pharma Leaders Power Brands Awards 2015, recognizing its
contribution in the health insurance space and exceptional claim settlement services to our
customers.
Bajaj Allianz General Insurance has been adjudged as the "Best General Insurance Company
in the Private Sector" by ABP News - Banking, Financial Services Awards in the year 2014.
The Company was awarded in the same category by Indian Insurance Awards in the year 2013,
by Bloomberg UTV Financial Leadership Awards in 2012 and by CNBC TV18 India Best
Bank and Financial Institution Award in 2012 and 2011.
Bajaj Allianz was conferred with the Golden Peacock Award 2014 in the category of
Innovative Products/Service. It was awarded as "Claims Service Company of the Year" by the
Indian Insurance Awards 2013, for its superior claims paying ability. In the same year Bajaj
Allianz won an award for "Claims Innovation of the Year" in the Asia Pacific Region at the
Claims Awards Asia 2013.
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Core Value:
Our beliefs are the very essence of who we are and what we do. They shape our values and
actions in serving our customers and creating unmatched value for all our stakeholders-
customers, shareholders and employees. By being an enabler of opportunities for sustainability
and growth, Bajaj Allianz aims to make a significant contribution to national development.
32
Business Volume –
Particulars 2022-23 2021-22
Gross Written Premium 15,487 13,788
Net Written Premium 8,311 7,763
Net Earned Premium 8,019 7,779
Net Incurred Claims 5,847 -5,676
Net Commissions -366 94
Management Expenses 2,659 -2,165
Others -32 -144
Profit Before Tax 1,803 1,793
Provision for Tax -455 -454
Profit After Tax 1,348 1,339
Shareholder's Equity 9,806 8,822
Employee Count (in Nos). 7,754 6,843
Growth Rate of Net Worth 14.85% 17.04%
Net Commission Ratio -4.41% -1.21%
Operating Profit Ratio 16.21% 18.20%
Liquid Assets to liabilities Ratio 0.14 0.37
Return on Net worth 14.06% 16.04%
33
Particulars 2022-23 2021-22
Available Solvency Margin (ASM) to Required

3.91 3.44
Solvency Margin (RSM) Ratio
The Company registered strong financial results by posting revenue of ₹ 15,487 crore in FY
2022-23. The company recorded a net profit of ₹ 1,348 crore. Bajaj Allianz General Insurance
also reported a healthy Combined Ratio of 100.5% and Solvency Ratio of 391% for the period.
Main Office:
1st Floor, Great Eastern Plaza Building, Pune Airport Road, Yerwada Road, Yerawada, Pune
- 411006 (Opposite Gunjan Theatre &Yerwada Petrol Pump, Near Nyati Bldg.).
Total Staff:
Bajaj Allianz General Insurance corporate office is located in G.e. Plz Airport Yerawada Rd,
Yerwada, Maharashtra, 411006, India and has 11,909 employees.
Product:
Home or property insurance, life insurance, disability insurance, health insurance, and
automobile insurance.
Competitors:
Allianz's competitors include Generali, Zurich, Prudential, Blue KC. Allianz ranks 6th among
20 competitors. Generali is an insurance company & offers services like insurance, banking &
investment management.
Life Insurance Corporation of India.
India First Life.
Reliance Life.
34
PROJECT DETAILS
 OBJECTIVES OF THE PROJECT:
o To evaluates securities by attempting to measure their intrinsic value.
o To statistical trends in the stock’s price and volume.
o To forecast future trends in stock prices.
o To suggest how insurance companies is suitable for investment to retail investors.
o To Assessing the financial performance of insurance firms.
1. LIMITATIONS OF THE PROJECT:
 Fundamental Analysis Limitation:
o Lack of Information
o Limited Analyst Coverage
o Volatility
 Technical Analysis Limitation:
o Limited Historical Data
o Low Liquidity
o Market Manipulation
2. METHODOLOGY TO BE USED:
Secondary Data Desk research through online sources.
3. SOURCE/S OF DATA:
Sources of Secondary Data: Company’s Websites, Reports, Published Sources, etc.
35
DATA ANALYSIS AND INTERPRETATION
(FUNDAMENTAL ANALYSIS OF IT MID-CAP SECTOR)

FUNDAMENTAL ANALYSIS OF IT MID-CAP SECTOR
INDEX
The following steps were taken to locate the Index:
Companies with a market capitalization in the mid-market.
Determine their market capitalization.
Determine their weight.
Market Weightage = (Market Cap/Total Market Cap) *100

Make a note of the share's closing price today.
Take note of the closing price of the shares yesterday.
Determine the % change in price.
(Current closing price - Previous closing price)/Previous closing price *100
Determine the index change.

Index Variation = Weightage Market% *% Price Modification
Index calculations are also always started with a base index of 1000.
Determine the change in the Index.
Sensex Change = Sensex* Index Change
** Add the rise in Sensex from yesterday's Sensex or deduct the drop in Sensex from
yesterday's Sensex. Initially, the Sensex was taken as 1000 because it was the starting
point.
INDEX ON MAY 24TH, 2023
36
List of Companies shown in below table.
Company Name
Cyient
Sonata
Happiest Minds
Affle India
Birla Soft
Route
Zensar Tech
Intellect Desig
Latent View
Mastek
INDEXING DATA
All the Steps that required index values are shown in below table.
SR.NO. DATE INDEX VALUE

1 24-05-2023 1000.00
2 25-05-2023 992.27
3 26-05-2023 996.05
4 29-05-2023 1010.56
5 30-05-2023 1009.87
6 31-05-2023 1008.12
7 01-06-2023 1023.64
8 02-06-2023 1041.81
9 05-06-2023 1060.81
10 06-06-2023 1054.02
11 07-06-2023 1043.82
12 08-06-2023 1049.17
13 09-06-2023 1042.29
14 12-06-2023 1051.98
15 13-06-2023 1061.84
16 14-06-2023 1066.35
17 15-06-2023 1068.66
18 16-06-2023 1073.93
19 19-06-2023 1077.97
20 20-06-2023 1081.46
21 21-06-2023 1096.67
22 22-06-2023 1113.62
23 23-06-2023 1102.78
37
INDEXING IN GRAPH
INDEX VALUE
1140.00
1120.00
1100.00
1080.00
1060.00
1040.00
1020.00
1000.00
980.00
960.00
940.00
920.00
24-05-2023
25-05-2023
26-05-2023
29-05-2023
30-05-2023
31-05-2023
01-06-2023
02-06-2023
05-06-2023
06-06-2023
07-06-2023
08-06-2023
09-06-2023
12-06-2023
13-06-2023
14-06-2023
15-06-2023
16-06-2023
19-06-2023
20-06-2023
21-06-2023
22-06-2023
23-06-2023
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
The process of Fundamental Analysis involves multiple steps which are as follows
38
Management of ULIP (Unit Linked Insurance Plan)
ULIP full form is Unit Linked Insurance Plans. ULIP plan is a life insurance product that offers
insurance coverage to the insured along with the benefit of investment returns. In ULIP plan a
part of the premium is used to provide insurance coverage to the insured’s family, whereas the
other half of the premium amount is invested in market-linked securities as chosen by the
insured like equity, debt and money market funds to gain profitable returns on investment in a
long-term.
ULIPs are considered as a popular option of investment as it not only provides the advantage
of life cover and wealth creation but also offers the benefit of tax saving under Section 80C
and 10(10D) of Income Tax Act.
We were supposed to create our own ULIP plans, choosing companies from the sector given,
which in my case was Automobiles, based on the ratio analysis and compare the two side by
side to maximize profits for the investors. The companies might deliver better results but I
would not recommend one to invest in my plan right now.
P/E RATIO
For calculation of industry P/E, I have considered Power Generation/ Distribution Sector
companies
Total Average Price Earnings Ratio is 35.24

Above Average range i.e., 35.24 companies are Overvalued
UNDERVALUE & OVERVALUE

The stocks above the industry average are overvalued and the stocks below the industry are
undervalued.
For undervalued stock we find value pick. For calculation of value pick we first compare the
revenue and profit of two financial year and see whether it is increasing or decrease. If anyone
i.e., profit and revenue any one or both are increasing we take them as value pick
39
For overvalued stock first we calculate growth pick then we have to find out peg ratio.
Peg ratio= P/e /Annual eps growth.
If peg ratio is between 0-1.5 than we select it as a growth pick and if peg ratio is greater than
1.5, we reject it.
Company P/E Ratio > Sector PE => Overvalued
Company P/E Ratio < Sector PE => Undervalued
Here is the list of undervalue & overvalue companies.
UNDERVALUED
OVERVALUED
40
Finding Ratios for the Selected Companies
RATIOS
The Price-to-Book Ratio (P/B Ratio) is a financial indicator used to evaluate a company's price
in relation to its book value. It compares a company's market price per share to its book value
per share. The P/B ratio can provide insight into the market's opinion of a company's financial
strength, asset quality, and growth prospects in the IT Mid-Cap sector.
Price-to-Sales Ratio (P/S Ratio): The P/S ratio compares the market capitalization of a firm to
its total revenue. It offers an alternative value indicator, which is especially valuable for
companies with fluctuating or negative earnings. A lower P/S ratio could suggest an
undervalued stock.
The Current Ratio is a financial ratio that measures a company's ability to meet its short-term
obligations with its short-term assets. It is a crucial ratio for analysing the liquidity and financial
health of companies in various sectors, including the IT Mid-Cap sector. The Current Ratio is
calculated by dividing a company's current assets by its current liabilities.
Return on Equity (ROE): ROE calculates a company's profitability by expressing net income
as a percentage of shareholders' equity. It demonstrates how successfully the company is
utilising its shareholders' investments. A higher ROE indicates greater profitability and more
effective capital utilisation.
Return on Capital Employed (ROCE) is a financial statistic used to evaluate the profitability
and efficiency of a company's capital investments. It is especially essential in the examination
of IT Mid-Cap companies, where capital investments play a critical role in generating growth
and innovation. ROCE evaluates the return on capital used by a corporation, which includes
both stock and debt. It is determined as a percentage by dividing the company's operational
profit (earnings before interest and taxes, or EBIT) by its capital employed.
41
Ranking Ratios for what best suit the company.
Allocation of AUM (Asset Under Management)
a. For the allocation of AUM, we will consider only those selected companies From Value pick
and growth pick.
b. We have already rank them with the help of Ratio Analysis.
c. AUM = 10cr.
d. Calculation of no. of Shares:
e. Consider share price on Base day that is first day of NAV
i. Calculation.
ii. Divide it with the allocated AUM
iii. We will get no. of shares
f. These no. of shares should be constant throughout the analysis.
g. So, every day, only Share price will change and accordingly allocation of AUM = Share
price x No. of shares.
h. Calculation of NAV =Total AUM / No. of units No. of units 1cr.
42
NET ASSET VALUES (NAV)
43
Comparing Index and NAV
For Investments in Ulip funds and long-term investments we can allocate funds on these shares
and it will our investments in future.
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(TECHNICAL ANALYSIS OF IT MID-CAP SECTOR)

TECHNICAL ANALYSIS OF IT MID-CAP SECTOR
Trading Strategies
1) BULL180/Bullish Engulfing: -
This strategy can be used when the price of stock is falling from past few candlesticks and the
time frame which is used in this strategy is 5 minutes. The major condition is that there should
be red candles in the past few time as it indicates the falling of the price of stock and then there
should be a green candle which indicates the rising or increasing of the price of stock and size
of the green candle should be greater than the red candle and both the candles should be 180
degree to each other. When one green candle comes, which is bigger in size from the last one
red candle and other green candle also starts to appear up in the chart then the strategy suggests
that it is the perfect time to invest in the stock and buy that stock.
Preferably the stop loss price should be the size of the last green candle and the triggered price
should be as the double of the stop loss price.
2) BEAR180/Bearish Engulfing: -
This strategy can be used when the chart of the stock is going towards a positive side and the
price of the stock is increasing continuously and the time graph should be 5 minutes only in
this too. There should be some green candlesticks in the required situation and when the red
candlestick comes up and other red one starts generating the strategy suggests that it is the right
time to short sell the stock assuming that the stock will fall. The stop loss price should be
equivalent to last red candle size and the triggered price should be as double as the stop loss
preferably.
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3) 15 Minutes Breakout: -
The 15-minute rule is a straightforward and powerful one for the day trader. Simply, it says
this: if a stock is in a trending formation and breaks its 15-minute high (that is, the high created
in the first 15 minutes of trading), it is likely that it will continue in the direction of the break
upward. The stop loss price should be at 1% and the triggered price should be as double as the
stop loss preferably.
(Buy)
(Sell)
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4) ORB 45: -
The breakout strategy is quite simple. When the price of a stock cross 15-30 min opening range,
it considers an opening range breakout. Based on the breakout pattern, it can be figured out that
the bullish or bearish trend. One of the best things about the trade that the entry-exit point is
easily identifiable. The concept was developed by Toby Crabel.
(Buy)
(Sell)
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Technical analysis is a tool or process that uses market data to forecast the likely future price
movement of a security, such as a stock or currency pair.
The theory underlying technical analysis's validity is the idea that the collective actions -
buying and selling - of all market participants accurately reflect all relevant information
pertaining to a traded security, and thus consistently assign a fair market value to the security.
Price charts are analysed by technical traders in order to forecast price movement. The time
frames considered and the specific technical indicators that a trader chooses to use are the two
key variables for technical analysis.
The time ranges displayed on charts for technical analysis range from one minute to monthly
or even yearly. time spans. Popular time frames that technical analysts most frequently examine
include:
• 5-minute chart
• 15-minute chart
• Hourly chart
• Daily chart
The time span that a trader chooses to analyse is usually influenced by that trader's unique
trading style. Intra-day traders, or those who open and close trades within a single trading day,
like to analyse price action on shorter time frames, such as 5-minute or 15-minute charts. Long-
term traders that maintain market positions overnight or for extended periods of time are more
likely to use hourly, 4-hour, daily, or even weekly charts to study markets.
Price change that occurs within a 15-minute time window can be quite significant for an intra-
day trader seeking for a chance to profit on price fluctuations that occur over a single trading
day. However, the same price action may not be particularly noteworthy or predictive for long-
term trading purposes when examined on a daily or weekly chart.
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 LONG TERM STRATEGIES
1) Rounding Bottom –
A rounding bottom is a chart pattern used in technical analysis that is recognised by a

series of price moves that form the shape of a "U" graphically. Rounding bottoms are
observed near the end of long-term downward trends and indicate a change in long-
term price movements.
2) Cup with Handle
A cup and handle price pattern are a technical indicator that appears on a security's price
chart as a cup with a handle, with the cup shaped like a "u" and the handle slanting
downward. The cup and handle pattern are seen as a bullish indicator, with lower
transaction volume on the pattern's right side. The image below depicts a typical cup
and handle combination. Set a purchase stop order immediately above the upper trend
line of the handle. Orders should be executed only if the price breaks through the
pattern's resistance. Traders who adopt an aggressive entry strategy may experience
high slippage and trigger a false breakout.
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3) Bump & Run Reversal
The Bump and Run chart pattern is an amazing reversal pattern that can help you
pinpoint the end of one trend and the beginning of another. The Bump and Run trading
strategy is a high-risk market method that seeks to profit from excessively volatile
markets. The Bump and Run trading strategy is one of the most important reversal
trading strategies you will almost surely need to understand. The psychological
explanation for the Bump and Run reversal's power is that it capitalises on the result of
excessive thought. This leads the price to move to the extreme too soon, resulting in a
reversal. The Bump and Run Reversal pattern is effective on daily, weekly, and monthly
time frames. As previously noted, the pattern is designed to identify speculative
ventures that are unsustainable over time. Because prices rose so quickly to generate
the left side of the hump, the subsequent drop could be just as significant.
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4) Head & Shoulder
A head and shoulders pattern is a chart formation that appears as a baseline with three
peaks, the outside two of which are close in height and the tallest in the centre. In
technical analysis, a head and shoulders pattern is a chart structure that indicates a
bullish-to-bearish trend reversal. The head and shoulders pattern is one of the most
reliable trend reversal patterns. It is one of several top patterns that, to varying degrees
of accuracy, mark the end of an upward trend. The head and shoulders chart is said to
reflect a bullish-to-bearish trend reversal and to signal the conclusion of an upward
trend. Investors regard it as one of the most reliable trends. reversal formations.
5) Double Top
A double top design is formed by combining two successive rounded tops. The initial
rounding of the top results in an upside-down U shape. Because they occur after a long
bullish run, rounding tops are typically indicative of a bearish reversal. The conclusions
drawn from double tops will be identical. When a double top occurs, the peak of the
second rounded top is usually much lower than the peak of the first rounded top,
indicating resistance and fatigue. Double tops are unusual occurrences, with their
formation typically indicating that investors are seeking ultimate rewards from a strong
trend. Double peaks are typically followed by a negative reversal, allowing traders to
profit by selling the stock during a drop.
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6) Double Bottom
The inverse of double top patterns is double bottom patterns. The outcomes of this
pattern are diametrically opposed. Following a single rounded bottom pattern, a double
bottom is formed, which can be the first indication of an impending reversal. Near the
end of a protracted bearish trend, rounding bottom formations are most typical. The
double bottom pattern, created by two consecutive rounded bottoms, could also signal
that investors are following the security in order to profit from its final push lower
towards a support level. A double bottom frequently implies a strong comeback,
allowing investors to profit from a bullish climb. Following a double bottom, popular
trading strategies include taking long positions in order to profit from rising asset prices.
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 MEDIUM TERM STRATEGIES
1) Ascending Triangle
An ascending triangle is a chart pattern in technical analysis. It is generated by price

movements that allow a horizontal line to be drawn along the swing highs and a rising
trendline to be drawn along the swing lows. The two lines join to form a triangle.
Traders typically search for triangular formation breakouts. The breakout could happen
to the upside or to the downside. Ascending triangles are also referred to as continuation
patterns since the price will usually break out in the same direction as the preceding
trend. Because it has a unique entry point, profit goal, and stop-loss level, an ascending
triangle can be traded. It is comparable to a falling triangle..
2) Descending triangle
A descending triangle is a bearish chart pattern formed by connecting a series of lower

highs with one trend line and a series of lows with a second horizontal trend line in
technical analysis. Traders typically seek for a move below the lower support trend line
since it signifies the development of negative momentum and the imminence of a
breakdown. When a breakdown occurs, traders place short bets and actively help drive
the asset's price lower. Descending triangles are a common chart pattern among traders
because they indicate declining demand for an asset, derivative, or commodity. When
the price breaks below the lower support, it is a clear indication that the downward trend
will likely continue or worsen. Descending triangles allow technical traders to produce
huge profits in a short amount of time. Descending triangles can appear as an upswing
reversal pattern; however, they are most usually connected with negative continuation
patterns.
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3) Symmetrical triangle
A symmetrical triangle is a chart pattern defined by two converging trend lines

connecting a series of subsequent peaks and troughs. The slopes of these trend lines
should be nearly equal. A trend line that converges at irregular slopes is known as a
rising wedge, falling wedge, ascending triangle, or descending triangle. A symmetrical
triangle chart pattern implies a period of price consolidation before a breakout or crash.
A break below the lower trendline indicates the start of a new bearish trend, whereas a
break above the higher trendline indicates the start of a new bullish trend. This pattern
is also known as a wedge chart pattern. The distance between the high and low of the
pattern applied to the breakout price point determines the price goal for a symmetrical
triangle breakout or breakdown.
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4) Rectangle
A pricing chart pattern is a rectangle pattern. A rectangle is formed when the price
consistently approaches the same horizontal support and resistance levels. Only
between the two horizontal levels can the price change, making a rectangle. A rectangle
is a technical analysis chart pattern. The term refers to a condition in which the price of
an asset trades inside a narrow range with resistance and support levels parallel to each
other, like the shape of a rectangle. When investors are unsure about the long-term
direction of an investment, the limited range, or rectangle, appears. As a result, it rises
and falls within the defined range, unable to move either way. Investors will keep an
eye on the price of the asset as it tests the levels of support and resistance several times
before breaking out in a rectangle formation. When a security breaks out of the
rectangle's range, it is said to be heading in that direction. Not every break-out is a
success. For instance, the price could break out of the rectangle to the upside before
immediately falling back inside. This is referred to as a missed breakout.
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5) Price Channel
On a chart, a price channel arises when the price of a security is constrained by two
parallel lines. Depending on the trend, the channel can be described as horizontal,
ascending, or sinking. Price channels are commonly used by technical analysts to gauge
the velocity and direction of a security's price movement, as well as to identify trading
channels. When the price of a security is buffeted by supply and demand factors, it
forms a price channel and might trend upward, downward, or sideways. These effects
have an impact on a security's price and can result in the establishment of a long-term
price channel. The dominance of one factor determines the price channel's trending
direction.
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 SHORT-TERM STRATEGIES
1) Doji
A doji candlestick emerges when the open and closing prices of an asset are almost
identical over a specific time period, and it generally suggests a reversal pattern for
technical analysts. A doji, which can be solitary or plural, is generated when the open
and closing prices of a stock are virtually similar. Some observers take this as an
indication of a trend reversal. It could, however, be a time when buyers or sellers are
gaining momentum for a continuation trend. Doji patterns are common during periods
of consolidation and can help analysts detect future price breakouts.
2) Hammer
A hammer is a price pattern in candlestick charting that occurs when an asset trades
substantially lower than its opening price but climbs during the period to close around
the opening price. This pattern yields a hammer-shaped candlestick with a bottom
shadow at least twice the size of the real body. The body of the candlestick represents
the difference between the open and closing prices, while the shadow represents the
high and low values for the time. A hammer occurs when the price of a security falls,
indicating that the market is looking for a bottom. Hammers signal that sellers are likely
to yield in order to produce a bottom, which is accompanied by a price increase,
indicating a potential price direction reversal.
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3) Hanging Man
The expression "hanging man" refers to the shape of the candle and what the appearance
of this pattern suggests. The dangling man indicates a possible upward reversal. While
selling an asset solely on the basis of a hanging man pattern is a risky decision, many
believe it is an important piece of proof that market sentiment is shifting. The intensity
of the ascent has waned. When a hanging man emerges during an uptrend, it indicates
that purchasing power has decreased. While demand has been driving up the stock
price, this day saw a lot of selling. While buyers were able to bring the price to where
it started, the first sell-off suggests that an increasing number of investors feel the price
will rise. The pattern provides a chance for candlestick traders to exit existing long
positions or even go short in anticipation of a price decline.
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4) Inverted Hammer
A chart pattern that typically emerges near the end of a drop when buyer demand raises
the price of an item is an inverted hammer candlestick. It gets its name from the fact
that it looks like an inverted hammer in real life, with a very small bottom shadow and
a massive top shadow that is more than twice the size of its actual body. It is a bullish
reversal pattern, with the extended upper wick signalling that bullish traders are
attempting to push the security's price higher. It is not to be confused with the bearish
shooting star pattern, which appears at the end of an upswing, or the hanging man
pattern. The inverted hammer pattern is just a predictor of future price movement. Not
a definitive signal for investing in one particular commodity.
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5) Shooting Star
A bearish candlestick with a long upper shadow, little or no lower shade, and a little
actual body at the day's low is known as a shooting star candlestick. It happens in an
upward direction. To put it another way, a shooting star is a candlestick that appears as
a security opens, advances significantly, and then returns to the open at the end of the
day. To be categorised as a shooting star, a candlestick must form a shooting star during
a price gain. Furthermore, the gap between the day's highest and lowest prices must be
greater than double the size of the shooting star's body. Under the real body, there
should be very little to no shadow.
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Futures –
A futures contract is for the purchase or sale of a commodity or asset at a defined price and on
a specific date in the future. Futures contracts are standardized using certain quantity caps and
expiration dates. Futures contracts may be used to trade commodities like wheat and oil as well
as precious metals like gold and silver.
Here the profit making is infinite and loss incurred is infinite where the agreements are done at
present date and executed in future.
The futures expire on every Thursday either weekly or monthly.
The future contract is done on 3 bases
 Speculation
 Hedging
 Arbitrator
Options –
These derives its value from underlying assets which are used by the investors to speculate or
Hedge Funds. They are majorly 4 Options
 Buying a Call Option
 Selling a Call Option
 Buying a put option
 Selling a put option.
There is various strategy followed for the options –
 Lottery Concept Call and Put
 Straddle Strategy
 Vertical Spread Put
 Vertical Spread Call
 Iron Condor
 Long Strangle
 Short Strangle
 Covered Call
 Iron Fly
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INSURANCE AND PRODUCT
 Insurance is a means of protection from financial loss. It is a form of risk management,

primarily used to hedge against the risk of a contingent or uncertain loss. An entity
which provides insurance is known as an insurer, an insurance company, an insurance
carrier or an underwriter. A person or entity who buys insurance is known as an insured
or as a policyholder. The insurance transaction involves the insured assuming a
guaranteed and known - relatively small - loss in the form of payment to the insurer in
exchange for the insurer's promise to compensate the insured in the event of a covered
loss. The loss may or may not be financial, but it must be reducible to financial terms,
and usually involves something in which the insured has an insurable interest
established by ownership, possession, or pre-existing relationship.
 The insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insurer will compensate the insured. The amount of
money charged by the insurer to the policyholder for the coverage set forth in the
insurance policy is called the premium. If the insured experiences a loss which is
potentially covered by the insurance policy, the insured submits a claim to the insurer
for processing by a claims adjuster. The insurer may hedge its own risk by taking out
reinsurance, whereby another insurance company agrees to carry some of the risks,
especially if the primary insurer deems the risk too large for it to carry.
 Term insurance policy – “Flexi income goal” having the term period of 50 years in
which the pay term period is 12 years where the policy holder has to pay the premium
amount of Rs 50,000 and for the next twelve years he/she will get guaranteed fixed
income for the next twelve years. If unfortunately, the owner of the policy dies during
the first 10 years, then the family of the policy owner will get a cover of Rs 7,21,848
and if the owner dies during the 11th year then the family receives the cover of Rs.
8,30,125 and Rs. 8,40,953 if the owner dies during the 12th year. However, if owner
dies after the completion of pay term, then the family will receive the fixed income for
the coming 12 years.
 “POS Goal Suraksha” having the term period of 20 years in which the pay term for 12
years where the policy holder has to pay the premium amount of Rs 50,000 and for the
next twelve years he/she will get Rs. 15,28,500 in the 20th year.
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RISK PROFILE QUESTIONNAIRE
Understanding your investment needs, as well as your risk attitude and tolerance, is critical.
The quiz below has been designed to assist you in considering the various investment risks and
understanding how they affect your unique circumstances. The questions describe your security
mindset and the level of risk you are willing to take for your investments.
Risk tolerance is defined as "the amount of risk an investor is comfortable taking or the degree
of variability in investment returns that an individual is willing to withstand." Risk tolerance is
an important factor to consider while investing. Identifying your risk tolerance
1. How would you describe your investment experience in terms of investing in different asset
classes (e.g., stocks, bonds, real estate)?
a) Limited or none
b) Some exposure, but minimal experience
c) Moderate experience in one or two asset classes
d) Extensive experience in multiple asset classes
2. What is your investment time horizon for the funds you plan to allocate to higher-risk
investments?
a) Less than 3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years
3. How do you feel about short-term fluctuations in the value of your investments?
a) Very uncomfortable, prefer stable returns
b) Somewhat uncomfortable but can tolerate minor fluctuations
c) Acceptable as long as the overall performance is positive
d) Comfortable with significant short-term fluctuations for potential higher returns
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4. How important is it for you to beat inflation and achieve real growth on your investments?
a) Not important
b) Somewhat important
c) Moderately important
d) Very important
5. How would you react if a major financial crisis caused a significant decline in the value of
your investment portfolio?
a) Panic and sell all investments
b) Feel uneasy but wait for a recovery
c) Stay calm and hold on to investments
d) See it as an opportunity to buy more assets at a discounted price
6. How familiar are you with different risk management techniques, such as diversification,
hedging, and asset allocation?
a) Limited knowledge
b) Basic understanding
c) Good understanding
d) Advanced knowledge
7. What portion of your total investment portfolio are you willing to allocate to higher-risk
investments?
a) None
b) Up to 10%
c) Up to 25%
d) More than 25%
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8. How actively do you monitor and review your investment portfolio?
a) Rarely or never
b) Occasionally
c) Regularly
d) Actively and frequently
9. How do you feel about investing in emerging markets or sectors with higher growth potential
but also higher volatility?
a) Not comfortable at all
b) Slightly uncomfortable
c) Willing to consider with proper research and analysis
d) Excited about the potential for high growth, regardless of volatility
10. How important is it for you to receive regular income from your investments?
a) Not important at all
b) Slightly important
c) Moderately important
d) Very important
11. What is your primary investment objective?
a) Capital preservation
b) Steady income generation
c) Capital growth
d) Aggressive growth
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12. What is your investment time horizon?
a) Less than 3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years
13. How would you describe your risk tolerance?
a) Very conservative
b) Conservative
c) Balanced
d) Aggressive
14. How would you react if your investment portfolio declined by 10% within a short period?
d) See it as an opportunity to buy more stocks
15. How would you react if your investment portfolio declined by 30% during a market
downturn?
d) See it as an opportunity to buy more stocks
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Investor Score Description
Profile (Points)
Defensive 0-10 You're a defensive investor who prioritizes protecting your

present investing cash over maximizing prospective profits
Conservative 11-18 You're a conservative investor looking for a steady stream of

income with the possibility of capital appreciation. You seek less
investment value volatility and are ready to accept lower
prospective investment returns as a result.
Balanced 19-26 You are a balanced investor with some understanding of

investment market behaviors. You prefer a balance between
capital growth and capital security. You are prepared to accept
some short-term risk in order to gain longer-term capital growth.
Assertive 27-34 You are an assertive investor who understands the movement of
investment markets. You are most interested in maximizing
long-term capital growth, although you do not wish to make
unbalanced investment decisions. You are happy to take
calculated risks in order to maximize long-term capital growth.
Aggressive 35+ You are an aggressive investor with a strong bias towards
investments with high growth potential due to your investment
experience. You are willing to accept higher performance
fluctuations in return for potentially higher long-term capital
growth. You also have a greater focus on tax-advantaged
investments and/or leverage of your assets to further improve
capital growth potential
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RECOMMENDATIONS/ FINDINGS
RECOMMENDATIONS/ FINDINGS
Fundamental and technical analysis are two methodologies that are commonly used to examine
companies or sectors, including the IT Mid-Cap Sector. Here is an introduction of both
methodologies, as well as some suggestions for assessing the IT Mid-Cap Sector.
Conduct a thorough fundamental examination of IT Mid-Cap sector companies' financial

statements, growth prospects, valuations, and regulatory environment. Determine a company
with good financial data, steady earnings growth, and appealing valuations.
Examine the experience, strategy, and risk management practises of the management teams.
Long-term success requires strong leadership and good governance.
Consider how macroeconomic factors such as interest rates, economic growth, and regulatory
changes affect the IT Mid-Cap sector. These elements can have a substantial impact on the
sector's profitability and performance.
Use technical analysis to find probable entry and exit points for trading or investing. To identify
trends and reversals, use price charts, moving averages, volume analysis, and indicators.
Keep an eye out for IT Mid-Cap news and developments, such as legislative changes, mergers
and acquisitions, or technological improvements. Keep up to date on developments that may
have an impact on the sector's future prospects.
Keep in mind that investment selections should be based on a thorough examination of both
fundamental and technical variables. It is also critical to diversify your portfolio and think about
your risk tolerance and investing goals.
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KEY LEARNINGS
KEY LEARNINGS
On an individual level, the project has assisted me in understanding- The workings of the
industry- A comprehensive investigation has aided in discovering and comprehending the
industry's how and what. How does a specific government action or pronouncement by the
board of directors effect the company and thus the industry (in a larger sense)?
A thorough study of Ratios- Fundamental analysis has aided in understanding the methods and
significance of the financial or non-financial ratios that are employed when conducting
research. Rather than being academic, the practical component of the learning assisted in
responding to the ratios on a better and higher level.
Learning about a Fund Manager's Role- During theoretical training sessions, there was a lot of
discussion on how fund managers think and work, and what their responsibilities are to their
investors. The large amount of AUM that they manage, how it is invested, and how it is hedged
against the market's threats.
Mutual Funds: The Fundamentals Mutual funds have evolved into a modern financial tool.
Less risky and more rewarding. Training sessions aided in learning the process from inception
to updating and basic operation. Some new ideas, including as AUM and NAV, were
introduced, and we were thoroughly taught in these new financial jargons. Various sorts of
mutual funds were also discussed.
OUTCOME AND CONTRIBUTION
 Contributed towards achieving a Target for the company.
 Made a Sale of Investment Plan worth Rs. 50000 Premium.
 Had got Selected in a Live Project conducted by the Company for Selected students.
LEARNINGS FROM THE SIP
Soft Skills
 Corporate Ethics
I have learned how to work with an organization and how to cultivate myself as a
learner.
 Analytical skills
Analysing different types of charts that improve my analytical skills.
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 Team work
While working on different proposals with my colleagues, I also learned about how to
utilize and distribute time while analysing proposals.
 Communication skills
While dealing with different kinds of people and handling their queries helped me in
improving my communication skills.
Domain Skills
 Determining whether the stocks should be brought or kept on hold through technical
analysis. Analysing the stock and implement different strategies.
 Performing live trading in zerodha (kite) and virtual trade (paper trade) in Sensibull and
Opstra.
 Learn about Technical analysis of the company, how price action can be determined by
using various oscillators and chart patterns.
 Learn how to do fundamental analysis of the company.
 Performing back test of oscillators in Streak
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CONCLUSIONS
CONCLUSION
Long-term investments benefit from fundamental analysis, while short-term investments

benefit from technical analysis. Fundamental analysis allows analysts to forecast future
performance by utilising an organization's financial records. Technical analysis, on the other
hand, allows analysts to predict whether prior patterns in stock prices will recur in the future.
Fundamental analysis takes into account both prior and current data, whereas technical analysis
solely takes into account past data.
We discovered how fundamental analysis may aid in long-term investing and how someone
looking for a long-term investment can benefit from it. It enables us to identify whether a
company is overpriced or under-priced in relation to the industry P/E ratio. The analysis was
then utilised to determine the growth and value choices, which were then used to construct a
portfolio. We allocated funds to each firm in the portfolio based on the weightings granted to
them based on key ratios in the sector. The NAV of the portfolio was then generated using the
AUM and number of units, and it was updated on a regular basis to guarantee that it
outperformed the market index benchmark. We learned to keep an eye on the market and grow
our business. portfolio at this time.
We learned about short-term investments and how technical analysis might help us with them.
It is usually used during the day. For short-term investing, use a variety of indicators and
patterns. By performing technical analysis on stocks and examining the patterns of change in
stock prices, we understood the difference between fundamental and technical analysis of
equities stocks. We learnt about many types of charts, trend lines, and other tools that help us
better understand the market in the technical segment.
In addition to basic and technical analysis, we learn about mutual funds and different types of
mutual funds, how to invest in mutual funds, and their benefits. Investors can choose any stock
to invest in the stock market. Before investing, the investor should conduct a thorough
examination of the market, prior trends, and the company in which he or she want to invest.
Whereas most investors focus on the company's fundamentals (turnover, profit, growth, etc.),
technical analysis focuses on the share price itself. The trader must design their own techniques
in Technical Analysis. As a result, they must be adaptable to the circumstances. Because
markets perform differently at different times, a one-size-fits-all strategy may not always
succeed.
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REFERENCES / BIBLIOGRAPHY
REFERENCES / BIBLIOGRAPHY
https://www.moneycontol.com/
India, N. (n.d.). NSE - National Stock Exchange of India Ltd: Live Share/Stock Market news &
Updates, quotes- nseindia.com. NSE India. https://www.nseindia.com/
Investopedia. (2019, June 6). Investopedia. https://www.investopedia.com/Bajaj Allianz

General Insurance: Access Annual reports. (n.d.).
Bajaj Allianz General Insurance Company. https://www.bajajallianz.com/about-us/annual-

reports.html
Yahoo is part of the Yahoo family of brands. (n.d.).

https://finance.yahoo.com/quote/%5ENSEI?fr=sycsrp_catchal
Trading View. (n.d.). Trading View – Track all markets. https://in.tradingview.com/Kite/
Zerodha’s fast and elegant flagship trading platform. (n.d.). https://kite.zerodha.com/
Sensibull - India’s largest options trading platform. (n.d.). https://sensibull.com/OpsTra/
Options Analytics Software. (n.d.). https://opstra.definedge.com/strategy-builderStreak
Create, backtest and deploy trading strategies. (n.d.). https://www.streak.tech/home
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LIST OF ABBREVIATION
 ROCE - Return on capital employed
 GDP- Gross Domestic Product
 P/E-Price to Earnings
 AUM -Asset under Management
 RSI-Relative Strength Index
 NAV- Net Asset Value
 ROE- Return on equity
 P/B – Price to Book Ratio

 P/S- Price to Sales Ratio
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PROJECT WORK- PROGRESS REPORT
PROJECT WORK- PROGRESS REPORT
Name of the Student: Chinmay Maruti Solankar Class & Roll No.: 118
Project Guide: Prof. Faisal Memon
Project Title: Fundamental & Technical Analysis of IT Mid-Cap Sector
Next
Sr. Student Project Guide
Date Topic Discussed Meeting
No. Signature Signature
Date
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SUMMER INTERNSHIP PROJECT SYNOPSIS FORMAT
Student Name: Chinmay Maruti Solankar Class & Roll No.: MMS B–118
Specialization: Finance
1. PROJECT TITLE:
Fundamental and Technical Analysis of IT (Mid-Cap) Sector
 OBJECTIVES OF THE PROJECT:
o To evaluates securities by attempting to measure their intrinsic value.
o To statistical trends in the stock’s price and volume.
o To forecast future trends in stock prices.
o To suggest how insurance companies is suitable for investment to retail investors.
o To Assessing the financial performance of insurance firms.
2. LIMITATIONS OF THE PROJECT:
 Fundamental Analysis Limitation:
o Lack of Information
o Limited Analyst Coverage
o Volatility
 Technical Analysis Limitation:
o Limited Historical Data
o Low Liquidity
o Market Manipulation
3. METHODOLOGY TO BE USED:
Secondary Data Desk research through online sources.
4. SOURCE/S OF DATA:
Sources of Secondary Data: Company’s Websites, Reports, Published Sources, etc.
(Approved/Not Approved) Date: _________
Project Guide: Name & Signature: ___________________________.
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SGPC’s GURU NANAK INSTITUTE OF MANAGEMENT STUDIES

(Management Institute of Guru Nanak Khalsa College, Matunga, Mumbai)

Summer Internship Project Report

Name of the Project Guide: Prof. Faisal Memon

Signature of the Project Guide:

Signature Institutes Seal:

(Dr. Satvinder Singh Bedi)

Name of Student: Solankar Chinmay Maruti

Signature of the Student:

I wish to acknowledge my sincere gratitude and indebtedness to my faculty

I extend my gratitude to “BAJAJ ALLIANZ LTD” and the Mr. Saurav

It gives me immense pleasure to thank a large number of individuals for their

2. INTRODUCTION TO THE TOPIC 4.

3. INDUSTRY OVERVIEW 18.

4. COMPANY OVERVIEW 27.

DATA ANALYSIS AND

9. KEY LEARNINGS 70.

10. CONCLUSION 72.

11. REFERENCES / BIBLIOGRAPHY 73.

12. LIST OF ABBREVIATIONS 74.

Project Progress Report Duly Filled &

14. Approved Project Synopsis 76.

 Nature of Work Assigned

 Performing live trading by opening trading account in Zerodha in

 strategies to perform sale and purchase of stocks.

 We have to Applied strategy by doing Live trade in market and

 analyzing the graph on Trading view.

 We have to perform back testing in Streak.

 Doing live trading in Zerodha Daily.

 Learning the concept of Stock Market.

 Analysis of Mid Cap Companies of the Sector.

 To study the fundamental concept of the IT Mid-Cap Sector.

 To study the technical analysis of the IT Mid-Cap Sector.

 Understanding the products of the company.

 Learning the concept of Derivative Markets.

 Learning the concept of Product Designing.

Companies in the sector work in a variety of IT subsectors, including software development,

The IT mid-cap sector encounters a number of challenges. Intense competition, a dynamic

Increasing IT Infrastructure Investments: As organisations across industries engage extensively

Cost-Effectiveness: When compared to their larger rivals, IT mid-cap enterprises frequently

Customer connections: IT mid-cap organisations frequently place a premium on developing

The supply of IT mid-cap firms is distinguished by their capacity to provide a comprehensive

Key Players of IT Mid-Cap Industry

Several prominent participants in the IT mid-cap market have established themselves as

Mindtree Ltd was an Indian multinational information technology services

Mphasis Limited is an Indian multinational information technology services

UNDERSTANDING FUNDAMENTAL ANALYSIS

1. Understand the sector.

2. Use the financial ratios for initial screening.

3. Understand the company.

4. Study the financial reports

5. Check the debt

6. Find the company’s competitor

7. Analyze future prospects

8. Review all the aspects from time to time.

1. Helps in Identifying Good Stocks

2. Provides a Strong Base for Investment

3. Helps in Developing a Thorough Understanding

Fundamental analysis helps an investor in the development of a rich understanding of the