AMITY UNIVERSITY -----UTTAR PRADESH-----

Amity Business School SUMMER INTERNSHIP - Synopsis Student Name Enrollment No Programme Company's Name and Address Industry Guide Name Designation Contact Number Ph.(O) : .: 011-4987 1084/384 (R) : Mobile : 9650698754 Fax : 011-23354944 E-mail : krishna.dubey@religare.com | www.religare.com RUCHITA SINGH A0101911176 MBA G-36 , FF Marina Arcade , Connaught Circus, New Delhi-110 001

Mr.Krishna Dev Dubey Branch Manager

2) Topic

Study of currency trading models and consumer behavior towards trading market.

3) Project Objectives To study the various methods to forecast the future trends of four major currency pairs traded in India. To study and compare the magnitude of recent gains to recent losses in currency market, to determine the overbought and oversold conditions of a currency pair using RSI model. To study the consumer behavior towards investment in trading market.

4) Methodology to be adopted

Object 1: To study the various methods to forecast the future trends of four major currency pairs traded in India: Methods: Fundamental Analysis. Interest rate parity principle Future Rate = (spot rate) {1 + interest rate on home currency * period} {1 + interest rate on foreign currency * period}

Pricing futures cost of carry model The cost of carry model used for pricing futures is: Future Price=Se^(r-rf)T

where: r=Cost of financing (using continuously compounded interest rate) rf= one year interest rate in foreign T=Time till expiration in year E=2.71828

Object:2 To study and compare the magnitude of recent gains to recent losses in currency market, to determine the overbought and oversold conditions of a currency pair using RSI model.

Methods: Technical analysis Relative Strength Model

100 RSI = 100 - -------1 + RS RS = Average Gain / Average Loss

Object:3 To study the consumer behavior towards investment in Trading market. Methods: SPSS software In home interview Snowball sampling Judgmental sampling Telephone Interview Mail Survey

5) Brief Summary of project Traders in currency market often consider the information in currency forecasting while making assessments about future rates. The purpose of this study is to systematically assess the future values of various currency pairs (whose trading in done in India). Dataset consists of over 3 years of bi-annual data on avg. Interests of that period. All the data were collected from Indias exchange rate database. The forecasting has been done in two segments i.e., Fundamental and technical analysis.

Fundamental Analysis is based on the study of the factors which affects the supply and demand of a particular market. It is different than technical analysis since it focuses, not on Interest but on factors like weather, government policies, domestic and foreign political and economic events & changing trade prospects. Fundamental Analysis is an approach to analyze market behaviour that stresses the study of supply and demand. It is done in the belief that such an analysis will enable one to profit by being able to anticipate Interest trends. Technical Analysis operates on the theory that market Interests at any given point in time reflect all known factors affecting supply and demand for a particular market. The analysis and interpretations are done to check out the behaviour of various internationally traded currencies with respect to Indian currency.

The study also tries to find out the awareness of consumers towards the trading market. Also it tries to find out what investment options are the hot favourites of majority of investors in share market. The study focuses on various shortcomings the company is facing in terms of its customers. Recommendations have also been made in regard of these problems.

Company profile: Vision "To be the leading emerging markets financial services group driven by innovation, delivering superior value for all stakeholders globally"

In India, Religare continues to rank among the foremost financial services franchises we have come a long way from being a standalone retail equity broking business less than a decade ago to an integrated financial services platform today.