Saturday, July 12, 2008

Objectives, Scope & Limitations

Objectives


With the growth in the markets, more people are looking at securities as an option of investment. Technology growth in the last decade has been fantastic. With faster modes of information being shared, it means that it is going to be more and more difficult for people playing in the markets to have access to that unique piece of information that will enable them to earn extraordinary returns. In the light of increasing interest of investors in stock market, this project seeks to get thorough knowledge of the stock market.

Ø To understand the capital market

Ø To identify the short, medium and long-term trends for market direction.

Ø Using technical indicators to reveal useful market forces behind the price to predict future movements and determine good points of entry and exit.

Ø To understand the global capital market and its significance.

Ø Identifying the macroeconomic variables affecting capital market.

Ø To analyze the trends in stock market using technical, fundamental and statistical analysis tools for predicting the behavior of stock markets.

Scope

The scope of this project extends to learning about the technical and statistical analysis.

Ø Studying the stock market regularly and doing observations to gain knowledge of the market.

Ø Carrying out the Technical analysis,statisical analysis of the data

collected for the bankex sector.

Ø Studying the Capital market of United Kingdom.

Ø Studying the movement of market using metastock software.

Ø Findings of this project will be used as an important document for the official use in India Infoline Ltd.

Limitations

Ø It is difficult to measure emotional factors associated with stock market.

Ø The formidable government interference in different sectors.

Ø International economic and socio- political situations have large repercussions on stocks.

Ø Acceptance or rejection of the proposed tax structure could lead to unexpected movement in the market.

Ø At last the fact that market is the supreme force and it can outweigh any kind of analysis.

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