This document analyzes blue chip automobile industries listed on the CNX Autonifty index for future investments. It aims to study the relationship between the index and automobile stocks and identify buy/sell signals and overbought/oversold conditions. The analysis finds that Mahindra & Mahindra, Maruti Suzuki, and Tata Motors stocks are positively correlated with the index and frequently reach overbought levels, suggesting they are suitable for investment. The study concludes these automobile stocks provide a way for investors to reduce risk by diversifying their portfolio.

1. AN ANALYSIS OF BLUECHIP
AUTOMOBILE INDUSTRIES
IN CNX AUTONIFTY
SPECIAL REFERENCE TO FUTURE
INVESTMENTS, TUTICORIN

2. Introduction
The title of the project is “Technical Analysis” a Tool for
Investment Decision Making with Special Focuses on
BLUECHIP AUTOMOBILE INDUSTRIES in AUTO NIFTY on
NSE” carried out in future investments for investors. It is done
mainly to analyze indices and the role of technical analysis in
decision making. This project aimed the researcher a lot in
putting theoretical knowledge that the researcher had gained
through his academics, in to practical. And also the researcher
has gain theoretical as well as practical knowledge about share
market and the activities undertaken in a share broking company.
Hence the researcher feels this project is definitely relevant to the
MBA degree that the researcher is pursuing.

3. Statement Of Problem
• The investors have difficult to identify the Risk factor of
the Blue chip four wheeler Automobile Company's shares.
• Investment timing plays a crucial role for trading in stock
market trading. The investors face difficulty while identifying
the opportunities.
• The investors have difficulty to identify the appropriate
overbought and oversold condition of the Blue chip four
wheeler Automobile Company's scripts.

4. Objectives Of The Study
Primary Objectives
• To study the relationship between the CNX AUTONIFTY
and Blue chip four wheeler Automobile company’s stocks.
Secondary objectives
• To study the strength of Blue chips four wheeler Automobile
Company’s stocks.
• To know the risk factor in the selected automobile company’s
shares.
• To know the buy and sell signal position in market trend
of Blue chip four wheeler Automobile company’s stocks.
• To find out the overbought and oversold condition of Blue
Chip Automobile Company’s share.
• To find out trend following the momentum of the selected
automobile company’s stocks.

5. Research Methodology(sample Design Research
Design Tools Analysis )
Research is a systematic and continues method of
defining a problem, collecting the facts and analyzing them,
reaching conclusion forming generalizations. Research
methodology is a way to systematically solve the problem. It may
be understood has a science of studying how research is done
scientifically.

6. Research Methodology(sample Design Research
Design Tools Analysis )
Research Design
A research design is the arrangement of condition for
collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in
procedure. It is the conceptual structure within which research is
conducted. Analytical Research is used in this study.
An analytical research answers questions why , how, when and
by whom the incident happened. It provides suitable reason. It is
an in depth study.

7. Research Methodology(sample Design Research
Design Tools Analysis )
TOOLS FOR ANALYSIS
The following are the tools have been used in this research
• Correlation
• RSI (Relative Strength Index)
• Beta

8. Research Methodology(sample Design Research
Design Tools Analysis )
SOURCES OF DATA
The main sources of data for the present study used
are secondary in nature. Secondary data consists of information
that already exists somewhere and has been collected for specific
purpose in the study. Secondary data has been obtained by the
national stock exchange website. For the purpose of this study
the daily closing prices of Three Blue chip four wheeler
Automobile companies listed in National stock exchange were
taken and analysis them through the technical tools.

9. Limitation
• The study is only focused on three Automobile companies in
CNX AUTO NIFTY.
• The study only focused on Technical Analysis but the
Fundamental Analysis is also an important study analysis
for the determination of company's stock price movement.
• The limited Technical tools only have been used for this study.
• Very short period of time for the study.

10. Company Profile
• Future investments is a channel partner for ICICI securities
Future investments started in 2005 owned by S.Sankar Kumar
.Future investments using the ICICI securities domain to trade.
• Future investments are a provider of financial services and
information provider primarily to Institutional and Retail
clients in India.
• The Company operates in three segments:
– Capital Market (CM) segment,
– Depository Participant (DP) segment
– Merchant Banking (MB) segment.
• The Company is a member of the National Stock Exchange of
India Ltd. (NSE) and BSE Limited (BSE) in the Capital
Market and Dervatives (Futures & Options) segment.

11. Company Profile
QUALITY POLICY OF THE COMPANY:-
To achieve and retain leadership, shall aim for complete
customer satisfaction, by combining its human and technological
resources, to provide superior quality financial service, in the
process, company will strive to exceed customer’s expectation

12. Company Profile
QUALITY OBJECTIVES:-
• Build-in-house processes that will insure transparent and
harmonious relationship with its clients and investor to provide
high quality of services.
• Establish a partner relationship with its investors service agent
and vendors that will help in keeping up it commitments to the
customers.
• Provide high quality of work life for all its employees and
equip them with adequate knowledge and skills so as to
respond to customer’s needs.
• Continue to uphold the values of honesty and integrity and
strive to establish unparalleled standard and business ethics.
• Use state-of-the art information technology in developing new
and innovative financial products and services to meet the
changing needs of investors and clients.

13. Findings
CORRELATION
• In the year 2014 January- December the correlation coefficient
an Auto Nifty and Mahindra & Mahindra Ltd. Stocks
relationships is positive. The positive correlation is r=0.89.
• In the year 2014 January - December the correlation
coefficient an Auto Nifty and Maruti suzuki Ltd. Stocks
relationships is positive. The positive correlation is r=0.99.
• In the year 2014 January - December the correlation
coefficient an Auto Nifty and Tata Motors Ltd. Stocks
relationships is positive. The positive correlation is r=0.95.

14. Findings
BETA (RISK FACTOR)
The beta of NIFTY index is 1 at is standard.
• In the year 2014 it implies that one percent change in the
sector stock return causes exactly one percent change in the
stock return Mahindra & Mahindra Ltd. stock was more when
compared on auto nifty. (1.23)
• In the year 2014 it implies that one percent change in the
sector stock return causes exactly one percent change in the
stock return Maruti Suzuki Ltd. Stock was more volatile.
Stock was more when compared on auto nifty. (0.96)
• In the year 2014 it implies that one percent change in the
sector stock return causes exactly one percent change in the
stock return Tata motors India Ltd. stock was more when
compared on auto nifty. (1.31)

15. Findings
RELATIVE STRENGTH INDEX (RSI)
MAHINDRA & MAHINDRA
In the month of February the RSI reached the level 30. So it
indicates oversold condition. The RSI crossing the level of above
70 in the period of April, May, June , July, September , October
November which is clearly signaling that the stock had the
overbought condition. So investor can invest in these stocks.
MARUTI SUZUKI
In the month of February the RSI reached the level 30. So it
indicates oversold condition. The RSI crossing the level of above
70 in the period of April, May, June , July, September , October
November which is clearly signaling that the stock had the
overbought condition. MARUTI stock is more volatile.
Investor/trader may use the volatile and make profit.

16. Findings
RELATIVE STRENGTH INDEX (RSI)
TATA MOTORS
In the month of December the RSI reach the level 30. So it
indicates oversold condition. The RSI crossing reaches the level
of above 70 in the period of March, April, May, July, and
September which is clearly signaling that the stock had the
overbought condition. So investor can invest in these stocks.

17. Suggestion
• It is better to invest in companies with good market value, good
performance in revenue and should consider various factors
affecting the performance before investing.
• The investors who invest in blue chip companies it reduce risk
bearing. The company’s stock has a relationship with CNX Auto
Nifty.
• The investor has to invest in blue chip Company of automobiles in
her/his portfolio to reduce risk.
• The investor and trader should known about the company’s
performance and quarter results.
• The study reveals that the Mahindra & Mahindra, Maruti and Tata
motors have highest return and investor can be suggested to invest
more in these companies.

18. Suggestion
• The Correlation of Mahindra & Mahindra, Maruti and Tata
motors shows the positive relationship with CNX Auto Nifty.
• The risk factor of the Maruti stock is 2.807.so it is more than the
market value (+1) which indicates more volatility of the stock.(If
beta = +1.0,it implies that one percent change in the market stock
return causes exactly one percent change in the stock return. It
indicates that the stock market moves in tandem with the market).

19. Conclusion
• This study concludes return, market trend, co-efficient of
variations for the Automobile blue chip four wheeler stocks.
Risk has two components, systematic and unsystematic risk.
The relationship between Automobile stocks and Auto nifty
are positively correlated most of the time. Investors/trader is
interested in predicting the future behavior of stock market.
The person, who has knowledge in stock market, may survive
in the market and generates profit or good return whether the
market is down.
• Studying the fundamental factors which influence the market
price and also the performance of the company is a part of any
investor before going for investment. The investor /trader
should look at the price movements of the particular company
over the years and should go for better portfolio.