SAPM

ASSIGNMENT
INDUSRTY: TWO-WHEELERS INDUSTRY
COMPANY: BAJAJ AUTO LIMITED

MADHUNITHA.B
10MBA1036

POINT-FIGURE CHART OF BAJAJ - AUTO LIMITED

(FOR THE PERIOD JUNE AUG 2011)

Box value : Rs.20

Reversal value :Rs.40
Chart 1
1580

1560

1540

x o x

1520

x o

1500

1480

x o x o x

1460

1440

x o x o x o

1420

x o

o x

1400

1380 x

1360 x o x o x
1340 x o x o x
1320
1300

x o x o x

POINT-FIGURE CHART OF BAJAJ - AUTO LIMITED

( FOR THE PERIOD JUNE AUG 2011)
Chart 2
1580

1570

1560

1550

1540

X O X

1530

X O X

1520

X O X

1510

X O

1500

1490

1480

X O X O X

1470

X O X O X

1460

1450

X O X O X O X O X

1440

X O X O X O X O X

1430

X O

O X O

1420

X O

O X

1410

O X

1400

1390

1380 X

1370 X O X O X
1360 X O X O X
1350 X O X O X
1340 X O X O X
1330
1320
1310
1300

O X
O

X O X O X

Box value : Rs.10

Reversal value :Rs.30

INTERPRETATION:
RESISTANCE LEVEL:
The desirable buy level for the security of BAJAJ AUTO LIMITED is ranged
from Rs.1520 - Rs.1580. This indicates Bullish signal.
SUPPORT LEVEL:
The desirable sell level for the security of BAJAJ AUTO LIMITED is ranged
from Rs.1320 Rs.1370. this indicates Bearish signal.
TREND:
The line between the chart shows the upward trend of the security.

BETA CALCULATION FOR BAJAJ- AUTO LIMITED:

FORMULA:

Beta = Co-variance of the stock / Variance of the market

VARIANCE

0.226722

CO-VARIANCE

0.193518098

BETA

0.853548

INTERPRETATION:
The BETA value for BAJAJ-AUTO LIMITED is 0.853548. since the value
is less than 1, the security is deemed to be a risk-averse security. This means
investors who wish to take minimum risk will invest in bajaj-auto limited.
Similarly, the profitability of the security will also be low.

DATA AND CALCULATION:

Rj = 100* log (close price / opening price)
Rm = 100* log (close price / opening price)
Co Variane = sum[ (Rjt-Rj)(Rmt- Rm)] / n-1
Variance = sum (Rmt- Rm) / n - 1

BETA CALCULATION

Date

Opening
price

Close
Price

Rj

Open

Close

Rm

Rjt - Rj

Rmt - Rm

(Rjt Rj)(RmtRM)

(RmtRm)2

1-Jun-11

1,346.20

1,335.60

0.3433176

5561.05

5592

0.241036

-0.46947921

0.294181

-0.138112

0.086543

2-Jun-11

1,325.00

1,368.50

1.4028923

5529.9

5550.35

0.160309

1.276730723

0.213454

0.2725237

0.045563

3-Jun-11

1,375.00

1,375.80

0.0252607

5565.7

5516.75

-0.38365

-0.10090093

-0.330504

0.0333481

0.109233

6-Jun-11

1,360.00

1,361.70

0.0542529

5504.3

5532.05

0.2184

-0.07190871

0.271545

-0.0195265

0.073737

7-Jun-11

1,360.00

1,350.05

0.3189055

5509.15

5556.15

0.368936

-0.44506714

0.422082

-0.1878546

0.178153

8-Jun-11

1,351.00

1,330.90

0.6509924

5535.25

5526.85

-0.06596

-0.77715402

-0.012811

0.0099563

0.000164

9-Jun-11

1,338.50

1,333.40

0.1657925

5523.55

5521.05

-0.01966

-0.2919541

0.033484

-0.0097758

0.001121

10-Jun-11

1,336.00

1,324.85

0.3639748

5518.05

5485.8

-0.25457

-0.49013643

-0.201421

0.0987238

0.04057

13-Jun-11

1,334.90

1,345.10

0.330584

5469.85

5482.8

0.102699

0.204422339

0.155844

0.031858

0.024287

14-Jun-11

1,345.25

1,373.65

0.907309

5485.6

5500.5

0.117803

0.781147353

0.170948

0.1335358

0.029223

15-Jun-11

1,378.00

1,369.70

0.2623762

5494.45

5447.5

-0.3727

-0.38853781

-0.319554

0.1241586

0.102114

16-Jun-11

1,365.00

1,344.95

0.6426512

5419.65

5396.75

-0.18389

-0.76881284

-0.130749

0.1005215

0.017095

17-Jun-11

1,340.25

1,342.70

0.0793173

5412.5

5366.4

-0.37149

-0.04684432

-0.318342

0.0149125

0.101341

20-Jun-11

1,333.00

1,311.80

0.6962523

5372.2

5257.9

-0.93399

-0.82241391

-0.88084

0.724415

0.775879

21-Jun-11

1,320.00

1,321.35

0.0443938

5280.8

5275.85

-0.04073

-0.08176784

0.012417

-0.0010153

0.000154

22-Jun-11

1,325.65

1,342.45

0.5469243

5304.65

5278.3

-0.21627

0.420762683

-0.163121

-0.0686354

0.026609

23-Jun-11

1,344.00

1,336.55

0.2414058

5269.1

5320

0.417519

-0.36756747

0.470664

-0.1730009

0.221525

24-Jun-11

1,340.00

1,387.75

1.5206438

5343.4

5471.25

1.026887

1.39448214

1.080032

1.506086

1.16647

27-Jun-11

1,391.00

1,383.30

0.2410753

5441.2

5526.6

0.676334

-0.36723693

0.729479

-0.2678918

0.53214

28-Jun-11

1,389.70

1,420.10

0.939787

5548.85

5545.3

-0.02779

0.813625367

0.025351

0.0206264

0.000643

29-Jun-11

1,394.00

1,401.85

0.2438772

5566.5

5600.45

0.264071

0.117715597

0.317216

0.0373413

0.100626

30-Jun-11

1,414.80

1,407.10

0.2370088

5614.5

5647.4

0.253746

-0.36317043

0.306891

-0.1114539

0.094182

1-Jul-11

1,432.10

1,423.15

0.2722668

5705.75

5627.2

-0.60204

-0.39842838

-0.548894

0.2186948

0.301284

4-Jul-11

1,452.80

1,424.45

0.8558622

5679.55

5650.5

-0.2227

-0.98202379

-0.16956

0.1665117

0.02875

5-Jul-11

1,425.90

1,427.70

0.0547891

5659.85

5632.1

-0.21346

-0.07137257

-0.160311

0.0114418

0.0257

6-Jul-11

1,417.00

1,437.25

0.6162467

5622.7

5625.45

0.021236

0.490085083

0.074381

0.0364529

0.005532

7-Jul-11

1,433.00

1,455.95

0.690027

5633.35

5728.95

0.73083

0.563865412

0.783975

0.4420563

0.614616

8-Jul-11

1,462.50

1,459.80

0.0802515

5734.65

5660.65

-0.56406

-0.20641317

-0.510916

0.1054599

0.261035

11-Jul-11

1,460.05

1,452.10

0.2371203

5648.05

5616.1

-0.24637

-0.36328194

-0.193225

0.0701951

0.037336

12-Jul-11

1,440.50

1,425.85

0.4439423

5556.9

5526.15

-0.24099

-0.57010389

-0.187846

0.1070918

0.035286

13-Jul-11

1,435.00

1,451.80

0.5054891

5542.05

5585.45

0.338773

0.379327476

0.391918

0.1486653

0.1536

14-Jul-11

1,459.00

1,430.70

0.8506715

5569

5599.8

0.23953

-0.9768331

0.292675

-0.2858946

0.085659

15-Jul-11

1,415.30

1,422.20

0.2112168

5602.95

5581.1

-0.16969

0.085055139

-0.116549

-0.0099131

0.013584

18-Jul-11

1,425.65

1,416.90

0.2673718

5581.75

5567.05

-0.11453

-0.39353344

-0.061381

0.0241554

0.003768

19-Jul-11

1,428.70

1,434.75

0.1835189

5569.85

5613.55

0.33941

0.057357245

0.392555

0.0225159

0.154099

20-Jul-11

1,440.00

1,424.55

0.4684795

5642.05

5567.05

-0.58118

-0.59464113

-0.528036

0.3139918

0.278822

21-Jul-11

1,427.00

1,419.50

0.2288576

5554.6

5541.6

-0.10176

-0.35501925

-0.048616

0.0172598

0.002364

22-Jul-11

1,430.00

1,448.55

0.5597453

5576.95

5633.95

0.441624

0.433583676

0.494769

0.2145237

0.244796

25-Jul-11

1,449.40

1,446.40

0.0899844

5633.8

5680.3

0.356985

-0.21614601

0.41013

-0.0886479

0.168207

26-Jul-11

1,446.00

1,425.75

0.6124913

5688.45

5574.85

-0.87608

-0.73865289

-0.822931

0.6078602

0.677215

27-Jul-11

1,425.00

1,434.40

0.2855412

5588.55

5546.8

-0.32566

0.159379597

-0.272518

-0.0434339

0.074266

28-Jul-11

1,433.50

1,448.35

0.4475826

5492.4

5487.75

-0.03678

0.321421015

0.016361

0.0052588

0.000268

29-Jul-11

1,447.00

1,469.60

0.6730612

5479

5482

0.023773

0.546899594

0.076918

0.0420665

0.005916

1-Aug-11

1,472.50

1,486.40

0.4080393

5527.5

5516.8

-0.08415

0.281877695

-0.031006

-0.0087399

0.000961

2-Aug-11

1,479.45

1,484.80

0.1567667

5493.2

5456.55

-0.29073

0.030605045

-0.237582

-0.0072712

0.056445

3-Aug-11

1,461.10

1,454.65

0.1921429

5402

5404.8

0.022505

-0.31830457

0.07565

-0.0240797

0.005723

4-Aug-11

1,455.00

1,419.65

1.0681707

5412.4

5331.8

-0.6516

-1.19433228

-0.598458

0.7147582

0.358152

5-Aug-11

1,397.00

1,398.55

0.0481591

5204.35

5211.25

0.057541

-0.07800248

0.110686

-0.0086338

0.012251

8-Aug-11

1,362.25

1,415.70

1.6714415

5083.85

5118.5

0.294998

1.545279925

0.348143

0.5379785

0.121204

9-Aug-11

1,359.00

1,426.20

2.0960975

4947.9

5072.85

1.083111

1.969935914

1.136256

2.2383511

1.291077

10-Aug-11

1,441.00

1,486.05

1.3369441

5196.55

5161

-0.29813

1.210782499

-0.24498

-0.2966175

0.060015

11-Aug-11

1,475.00

1,456.85

0.5377182

5128

5138.3

0.087144

-0.66387983

0.140289

-0.0931351

0.019681

12-Aug-11

1,465.00

1,454.55

-0.310897

5194.4

5072.95

-1.02748

-0.43705863

-0.974336

0.4258418

0.94933

16-Aug-11

1,460.00

1,456.35

0.1087096

5125.75

5035.8

-0.76889

-0.23487119

-0.71575

0.168109

0.512297

17-Aug-11

1,465.00

1,452.40

0.3751384

5030.3

5056.6

0.226471

-0.50130007

0.279616

-0.1401718

0.078185

18-Aug-11

1,450.25

1,437.75

0.3759498

5077.95

4944.15

-1.15968

-0.50211141

-1.106533

0.5556029

1.224416

19-Aug-11

1,413.00

1,427.15

0.432746

4859.3

4845.65

-0.12217

0.306584376

-0.069022

-0.021161

0.004764

22-Aug-11

1,429.80

1,481.25

1.5353071

4843.7

4898.8

0.491247

1.409145438

0.544392

0.767128

0.296363

23-Aug-11

1,485.00

1,544.85

1.7159864

4925.15

4948.9

0.208922

1.589824731

0.262067

0.4166402

0.068679

24-Aug-11

1,559.00

1,516.05

-1.213259

4934.35

4888.9

-0.40188

-1.33942067

-0.348735

0.4671024

0.121616

25-Aug-11

1,520.25

1,517.40

0.0814932

4914.65

4839.6

-0.66831

-0.20765486

-0.615168

0.1277425

0.378431

26-Aug-11

1,515.00

1,503.70

0.3251433

4839.25

4747.8

-0.82856

-0.45130494

-0.775419

0.3499505

0.601275

29-Aug-11

1,505.00

1,573.55

1.9344047

4806.2

4919.6

1.012795

1.808243113

1.06594

1.9274795

1.136229

30-Aug-11

1,589.00

1,573.55

-0.424335

4973.25

5001

0.241656

-0.55049661

0.294801

TOTAL

8.0743439

TOTAL

-3.40129

TOTAL

AVG

0.1261616

AVG

-0.05315

VARIANCE
COVARIANCE

-0.1622872

0.086908

12.19164

14.28348

0.226722
0.1935181

BETA

******

0.853548