Security Analysis An Investment Management

Q-1Collect the newspapers of last 1 month feed the daily sensex value in to the excel sheet and you have to salt remote it with the help of Dow J one(a)s theory. Solution SENSEX An proponent of the 30 some actively trade windd stocks on the Bombay Stock Exchange (BSE). The Sensex is considered the about important benchmark office on the BSE, and it is the oldest stock index in India. Unlike some(prenominal) indices, it is non weighted for price or commercialise capitalization, precisely rather for free-float capitalization. This is similar to mart capitalization, save uses sh bes available for trade rather than the total shares outstanding. Thus, it excludes shares that have not been vested, among early(a)s. Sensex is formally cognise as the Bombay Exchange Sensitive Index. DOW possible action Dow theory was formulated from a series of Wall lane Journal editorials authored by Charles H. Dow, which reflected Dows beliefs on how the stock market behaved and how the market could be utilize to measure the health of the trade environment. Dow believed that the stock market as a whole was a reliable measure of general business conditions within the scrimping and that by analyzing the overall market, one could accurately gauge those conditions and commit the direction of major market hacks and the likely direction of soulfulness stocks. The market discounts everything.

Dow theory uses trend analysis to determine which expression the market is headed. Primary trends are major market trends. substitute(prenominal) trends are co rrections of the indigenous trend. ! Primary trends are do up of ternion phases. For an upward trend, these phases are: the accumulation phase, the cosmos participation phase and the wasted phase. For a downward trend, the three phases are: the distribution phase, the public participation phase and the alarm 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 name a full essay, set up it on our website: OrderCustomPaper.com

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