FUNDAMAENTAL ANALYSIS OF SHARE PRICE OF SUN

PHARMACEUTICALS LIMITED AND ITS INFLUENCE ON

STOCK EXCHANGE

The Independent Project

Submitted in partial fulfillment of the requirement for the

Award of the degree of MASTER OF BUSINESS
ADMINISTRATION

Submitted By:
Pratima Vaidya
(Scholar no.: PG/FT 082103149)
Under the guidance of
MS. ROLI PRADHAN

April 2010

DEPARTMENT OF MANAGEMENT STUDIES

MAULANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY
(DEEMED UNIVERSITY)
BHOPAL 462051 (M.P.) INDIA.
 DECLARATION

I hereby declare that the work which is being presented in this project
entitled “Fundamental Analysis of share price of Sun Pharmaceuticals
limited and its influence on stock exchange’’ towards partial fulfillment of the
requirement of Master Degree–The Master of Business Administration in
DEPARTMENT OF MANAGEMENT STUDIES has been carried out at
MAULANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY (DEEMED
UNIVERSITY), Bhopal .It is an authentic record of my own work carried out
under the guidance of Ms. Roli Pradhan Department of Management Studies,
MANIT, Bhopal. The matter embodied in the Independent Project has not been
submitted by me for award of any other Degree.

Place: BHOPAL
Date: 26/04/2010

Pratima Vaidya
 CERTIFICATE

April 2010

This is to certify Ms Pratima Vaidya, Scholar No. 082103149 of MBA

(FT) IVth Semester has worked under my supervision for this Independent
project (Paper Code:699) on “Fundamental Analysis of share price of Sun
Pharmaceuticals limited and its influence on stock exchange’’, submitted to
DEPARTMENT OF MANAGEMENT STUDIES,MANIT, BHOPAL, towards
partial fulfillment of the requirement of Master Degree –The Master of Business
Administration(MBA). It is only for academic purpose and is a Bonafide work
done by the researcher.
The above study is duly approved by me and is the candidate’s own
contribution.

Ms. Roli Pradhan

(Assistant Professor,
Department of Management Studies,
MANIT)
REMARKS
 ACKNOWLEDGEMENT

I would like to express my deep gratitude to our Director Dr. R.P. Singh
who is responsible for moulding our thinking to complete this project.
It is my great pleasure to express my sincere gratitude and thanks to my
heads of the department Dr. Aashish Deshpande, (HOD, Dept. of Mgmt. Studies
MANIT) for his valuable guidance and help.
I am extremely thankful to my project guide Ms. Roli Pradhan,
Department of management studies for imitating keen interest and giving
valuable guidance at every stage of this project.
I am also thankful to all the faculty members of the Department of
management studies for their kind and valuable cooperation during the course of
the project.
I would also like to thank my Friends and well wishers who encourage
me to complete this project successfully
We are greatly thankful to our senior for extending their helping hand in
doing all the related work to the project for their full cooperation to prove our
worth, always and in this Endeavour.
Finally, but most important, I extend my heartfelt gratitude towards my
family specially my husband Mr. Hitesh Vaidya for their full cooperation to
prove my worth, always and in this Endeavour.
 ABSTRACT

Stock market operations are often compared to operation in gambling

dens, and winning strategies are all supposed to be backed by Lady Luck.
Investors are most often guided by the sentiments of faith and phobia. There are
plenty of soothsayers/financial wizard offering advice and strategies to investors.
However, to play safe and manage their funds optimally, they need organized
information, logical reasoning backed by scientific methods and techniques. This
project is a humble attempt at presenting this information.

This project has been a great learning experience for me; at the same time
it gave me enough scope to implement my analytical ability. This project aims to
studies supply and demand in a market for stock of Sun Pharmaceuticals Ltd. in
an attempt to determine what direction, or trend, will continue in the future. In
other words, with the help of several indicators it analyzes the relationship
between price – volume and supply – demand for the stock of Sun
Pharmaceuticals limited and its influence on Nifty.

This project will be useful to both speculators and investors, being a value
addition to their knowledge. The first part of paper gives the brief idea about
“Sun Pharmaceuticals Limited” The second part of the paper deals with the tools
of technical analysis which has been applied to analysis the relation between
share price and volume and its influence on Stock exchange.
TABLE OF CONTENTS

Acknowledgement
Abstract
S.No Contents Page
No.
CHAPTER 1: INTRODUCTION 1-21
Part A : General Introduction 1-14
1.1(a) What is Technical Analysis 2
1.2(a) History 2-3
1.3(a) Assumptions 3-4
1.4(a) How is technical analysis is done 5
1.5(a) Difference between fundamental and Technical analysis 5
1.6(a) Tools and techniques used for technical Analysis 5-7
1.7(a) Benefits of Technical Analysis 8
1.8(a) Drawbacks of Technical Analysis 8
1.9(a) About stock exchange (NSE) 9-13
1.10(a) About S&P CNX Nifty 13
1.11(a) Listing , Trading, clearing and Settlement 13-14
Part B : Company Information 15-22
1.1(b) About Sun Pharmaceuticals Limited 15-18
1.2(b) History 18
1.3(b) Sun Pharmaceuticals market share 19
1.4(b) Listing Details 19-20
1.5(b) Management 21
CHAPTER 2
Literature survey 23-31
CHAPTER 3: Research Methodology 31-35
3.1 Statement of the Problem 31
3.2 Scope of the Study 32
3.3 Importance of the Study 32
3.4 Objective of the Study 32
3.5 Limitation of the Study 33
3.6 Hypothesis 33
3.7 Sampling Techniques 33
3.8 Tools and Techniques used 33-35
3.9 Period of Study 35
 CHAPTER 4: DATA ANALYSIS & 36-50
INTERPRETATION
4.1 Data 36
4.2 Analysis overlook 36
4.3 Chi Square Test 36-39
4.4 Correlation analysis 39-41
4.5 Regression analysis 41-43
4.6 Opening Vs. Closing 44-45
4.7 Opening Vs. High 46-47
4.8 Nifty Vs. SunPharma 48-50
CHAPTER 5: Technical analysis 51-64
5.1 Support and resistance level 51-53
5.2 Volume of Trade 53-54
5.3 Money Flow 55-57
5.4 Momentum 58-60
5.5 Price and Volume Trend 59-60
5.6 On balance Volume 60-61
5.7 Beta 62-64
CHAPTER 6
6.1 Findings 65-66
CHAPTER 7: Conclusion and Suggestion 67-68
7.1 Conclusion 67
7.2 Suggestion 68
References and Bibliography 69-71
ANNEXURE 72-74
1 Historic Price of Nifty 72
2 Historic Price of Sun Pharmaceuticals Ltd. 73
3 Balance sheet of Sun Pharmaceuticals ltd. 73-74

LIST OF TABLE AND FIGURES

 LIST OF TABLES PAGE
NO
TABLE NO.1 Chi-Square test of Sun Pharmaceuticals share 38
price and Nifty
TABLE NO.2 Correlation analysis of Sun Pharmaceuticals share 40
price and Nifty
TABLE NO.3 Regression analysis of Sun Pharmaceuticals share 42
price and Nifty
TABLE NO.4 Opening Vs Closing Chart of Sun 44
Pharmaceuticals limited
TABLE NO.5 Open Vs. High Chart of Sun Pharmaceuticals 46
limited
TABLE NO.6 Change in price of Sun pharmaceuticals vs. Nifty 48
TABLE NO.7 Volume of trade chart of Sun Pharmaceuticals 54
limited
TABLE NO.8 Money Flow Chart 56-57
TABLE NO.9 Price Volume Trend Chart 59
TABLE NO.10 On Balance Volume Chart 61
TABLE NO.11 Calculation of Beta 63

LIST OF FIGURES PAGE

NO.
FIGURE NO.1 Sun Pharmaceuticals Market Share 19
FIGURE NO.2 Open vs. close 45
FIGURE NO.3 Volume of trade 45
FIGURE NO.4 Open vs. High 47
FIGURE NO.5 Nifty share Price 49
FIGURE NO.6 Sun pharmaceuticals share Price 49
FIGURE NO.7 Support and Resistance Level 53
FIGURE NO.8 Momentum 57

LIST OF ABBREVATIONS
NSE National stock Exchange

NEAT National Exchange for Automated Trading

IISL India Index Services and Products Ltd.
NSCCL National Securities Clearing Corporation Ltd.

NCCL National Commodity Clearing Limited

CRISIL Credit Rating and Information Services of India Ltd.
S&P Standard and Poor
PVT Price Volume Trend
OBV On Balance Volume

MFI Money Flow Index