Security Analysis An Investment Management

Q-1Collect the newspapers of last 1 month feed the daily sensex determine in to the excel sheet and you have to salt out-of-door it with the help of Dow J one(a)s theory. Solution SENSEX An proponent of the 30 to the highest degree(prenominal) actively trade windd stocks on the Bombay Stock Exchange (BSE). The Sensex is considered the most important benchmark great power on the BSE, and it is the oldest stock index in India. Unlike some(prenominal) indices, it is not weighted for price or commercialise capitalization, precisely rather for free-float capitalization. This is similar to grocery capitalization, merely uses sh bes available for trade rather than the total shares outstanding. Thus, it excludes shares that have not been vested, among new(prenominal)s. Sensex is formally cognise as the Bombay Exchange Sensitive Index. DOW scheme Dow theory was formulated from a series of Wall track Journal editorials authored by Charles H. Dow, which reflected D ows beliefs on how the stock market behaved and how the market could be utilize to measure the health of the blood environment. Dow believed that the stock market as a whole was a reliable measure of general business conditions within the frugality and that by analyzing the overall market, one could accurately gauge those conditions and point the direction of major market hacks and the likely direction of respective(prenominal) stocks. The market discounts everything.

Dow theory uses trend analysis to determine which authority the market is headed. Primary trends are major mark et trends. alternative trends are c! orrections of the indigenous trend. Primary trends are do up of 3 phases. For an upward trend, these phases are: the accumulation phase, the existence participation phase and the wasted phase. For a downward trend, the three phases are: the distribution phase, the public participation phase and the scourge phase. Market indexes must patronise each other. In other words, a major retrogression from a bull or bear market cannot be signaled unless both indexes (generally the...If you want to buy the farm a full essay, set up it on our website: OrderCustomPaper.com

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