A Main Class in Java Contains the Main Method

A Main Class in Java Contains the Main Method All Java programs must have an entry point, which is always the main() method. Whenever the program is called, it automatically executes the main() method first. The main() method can appear in any class that is part of an application, but if the application is a complex containing multiple files, it is common to create a separate class just for main().  The main class can have any name, although typically it will just be called Main. What Does the Main Method Do? The main() method is the key to making a Java program executable. Here is the basic syntax for a main() method: public class MyMainClass { public static void main(String[] args) { // do something here... }} Note that the main() method is defined within curly braces and is declared with three keywords: public, static and void : public: This method is public and therefore available to anyone.static: This method can be run without having to create an instance of the class MyClass.void: This method does not return anything.(String[] args): This method takes a String argument. Note that the argument args can be anything  - its common to use args but we could instead call it stringArray. Now lets add some code to the main() method so that it does something: public class MyMainClass { public static void main(String[] args) { System.out.println(Hello World!); }} This is the traditional Hello World! program, as simple as it gets. This main() method simply prints the words Hello World! In a real program, however, the main() method just starts the action and does not actually perform it. Generally, the main() method parses  any command line arguments, does some setup or checking, and then initializes one or more objects that continue the work of the program.   Separate Class or Not? As the entry point into a program, the main() method has an important place, but programmers do not all agree on what it should contain and to what degree it should be integrated with other functionality. Some argue that the main() method should appear where it intuitively belongs - somewhere at the top of your program.  For example, this design incorporates main() directly into the class that creates a server: However, some programmers point out that putting the main() method into its own class can help make the Java components you are creating reusable. For example, the design below creates a separate class for the main() method, thus allowing the class ServerFoo to be called by other programs or methods: Elements of the Main Method Wherever you place the main() method, it should contain certain elements since it is the entry point to your program. These might include a check for any preconditions for running your program. For example, if your program interacts with a database, the main() method might be the logical place to test basic database connectivity before moving on to other functionality. Or if authentication is required, you would probably put the login information in main(). Ultimately, the design and location of main() are completely subjective. Practice and experience will help you determine where best to put main(), depending on the requirements of your program.

Exploring the Causal Factors of Rape and Murder

Exploring the Causal Factors of Rape and Murder Hashtag: # Ãâ€"zgecanAslan (Ozgecan Aslan – Name of Turkish Student) Discrimination in Society Two of the three victims of February 10, 2015, Chapel Hill shooting were female university students at the University of North Carolina. A day later, # Ãâ€"zgecanAslan, a female university psychology student at Cag University in Turkey, was murdered and burned by three men. This brutality caused an outcry and thousands of women went to the street to protest her death and blamed Turkey government’s â€Å"systematic misogynist policy† for the rising incidents of abuses against women. The victims were university students, female, innocent or unsuspecting, brutally killed by a stronger male, and belonging to a similar religion. The female students in the Chapel Hill incident were Muslim, brutality shot in the head just outside their home, and murdered by a male anti-theist neighbor. Similarly, Ozgecan Aslan, a 20-year-old Muslim schoolgirl was on her way home from school when the three men (bus driver, his father, and a friend) who were trying to rape her stabbed her to death, burned and threw her body in a river. These incidents are similarly in some aspects. For instance, many people think that the Chapel Hill North Carolina incident was a â€Å"faith Hate† crime while protesters supporting think that # Ãâ€"zgecanAslan case is Misogyny, which by definition is also a Hate Crime but specific to femininity. They are both results of discrimination in society, crime against the helpless and perpetrated by ordinary men rather than known criminals. Get more information here: Womens Right to Education Contributing Factors of Student Suicides The Killing of Three Muslin-American College Students Students Right to Conscientious Objection Relieving Students School-Related Stress Misogyny according to literature is a male malady, a very primitive or stone aged view of women. Moreover, it is pervasive, persistent, and pernicious sexual prejudice. A government supporting this practice, therefore, is not only responsible for allowing continuity of such imprudent primitive concept but also encouraging violence against women. Female Students Vulnerability to Crime The result of study regarding victims of crime suggests that the real indicator of vulnerability to crime is not only helplessness but also a person’s lifestyle. Individuals spending time in public places such as working people, students, teachers, teenagers are most at risk. In fact, the survey shows that serious violent crimes against students often occurred away from school. Although anyone can be a victim, female students are more vulnerable than male. In 1990, four unsuspecting female students of University of Florida were brutally murdered inside in their college apartment by Danny Rolling, a man who instead of feeling sorry for what he did, repeatedly sang â€Å"None greater than thee, oh Lord† before he died in the chamber in 2006. Females are thought to be physically weaker thus is easier for a man to overpower a woman. For instance, the result of Crime Victimization Survey of students in Toronto High School in Canada suggests that 13% of female students experienced three or more sexual assaults while most violence occurring in school are hate crimes. However, like # Ãâ€"zgecanAslan, there are women that are resilient and take reasonable actions against their attacker. They can be aggressive and can afford to stand up to stronger men particularly when inhibiting violence.

Prohibition of Torture in the case of Guantanamo Bay Essay

Prohibition of Torture in the case of Guantanamo Bay - Essay Example As much as people tend to think that it is something of the past, it indeed happens more than it is thought of. Democratic countries such the United States of America which are said to uphold human rights are in fact culprits of condoning torture. For example, there has been a lot of evidence through videos leaked through the internet and other forms of media that implicate the United States of America condoning torture in Guantanamo bay. The first Government official to accept that indeed torture did take place in Guantanamo bay detention camp was Secretary of Defense Robert Gates. What is the Guantanamo Bay Detention camp? After the 2001 terrorist attack, the United States government opened a military interrogation and detainment camp in the Guantanamo Bay Naval Base in Cuba.2 This camp was meant for holding and interrogating detainees suspected to be terrorists. This mainly focused on the war in Iraq and Afghanistan. Guantanamo Bay detention camp is divided into three sections, th at is; Camp X-ray camp delta and camp Iguana. Camp iguana was meant to hold detainees considered to be children (those under the age of 16 years). â€Å"Camp X-ray was the first section set up to detain suspected terrorist but was later replaced by camp delta since it was a temporarily section.†3 The first detainees to be detained in Guantanamo bay detention camp were brought on January 11, 2002.... One characteristic in the two is the use of torture. In the Middle East, Israel can be used as an example. This is because; Israel is also sensitive to terrorist attacks as much as the United States of America. This is as a result of its conflicts with her neighbors especially Palestine. In both scenarios detention of terror suspects is done without any court process. In the Middle East, there are various methods of torture. One such method is suffocating of suspects using a towel and water during interrogation. This is where a prisoner is held down or strapped facing upward and his face covered with a towel or a cloth. Water is then poured on the towel. â€Å"The process of water interrogation creates a drowning feeling†¦Ã¢â‚¬ ¦...’ The same is done in Guantanamo Bay detention camp. In both Guantanamo Bay detention camp and detention camps in Israel, water interrogation is the most used form of torture during interrogation. In the Middle East detainees are also emotiona lly tortured, and they are subjected to a lot of humiliation. For example, in Iraq, there have been reports of women detainees being stripped naked. Iraqi soldiers and policemen are known for their inhumane way of handling detainees and prisoners. They mistreat them to the extent of even urinating on them. The same was going on in Guantanamo bay detention camp. Lesser Ethics in Relation to Torture and the Geneva Conventions Terrorism has brought about a new debate not only in the United States of America, but in the whole world as well. This is because the Geneva Convention prohibits torture of any soldier, detainee, civilian and prisoners of war. The Geneva conventions are treaties signed by the international community.

The Communication Effect on a Family Essay Example | Topics and Well Written Essays - 1000 words

The Communication Effect on a Family - Essay Example The essay "The Communication Effect on a Family" analyzes the research on how communication affects a family. The miscommunication is attributed to poor communication or lack of a common language between two people, ideally, this is triggered by the different viewpoints of speaking held by specific people. Basically, its major area of concern is the larger sense of community and indeed the whole human system in general. According to interaction view, each and every behavior is considered to be a way of communication thus it is totally impossible to evade communication. Communication can be perceived to be avoided but the use of non-verbal communication is one way of passing information. Silence is usually attributed to some issues which are considered to be completely beyond our reach or control thus rendering the idea of no communication to be totally impossible. For instance, I am a Chinese student studying in America but it would be impossible not to communicate to my family back in China. Basically, every form of communication is made up of specific content with regard to the relationship between the two parties involved. Generally, all communications contain specific meaning as per the words used and to the person, the information is intended to be delivered to. On the other hand, the information is based on how the sender or the speaker intends for his or her information to be perceived by the receiver. For instance, I always prefer to communicate with my family using Skype. not because I can not reach them through an ordinary phone but it’s due to the general perception of how the content of information I intend to deliver to them is perceived, ideally the relationship we have is the core factor of why the best method of communication is preferred between me and my parents therefore the viability of how and what the communicator said lies in the ability of one to interpret both the verbal and non-verbal aspects of communication. Metacommunication is generally regarded to be the core relational aspect of any interaction between two or more people. Punctuation also plays a critical role in determining the nature of relationship between the sender and the recipient of a certain massage. Both the sender and recipient of information behave in a different manner during the entire process of communication however these forms of behaviors are attributed to their partner’s reactions, ideally there is the feeling from both sides of partners with each side believing that the other partner is the main reason behind the strange behavior. There is need of punctuating the whole communication thus terming one part of it as the cause while the other part is referred to as the main response. There are several instances that occur in line with other subsequent events, basically this implies that when one event happens then most definitely it would trigger the other adjacent event to follow suit. This case applies to me when I do not tal k or communicate to my family back in china through the Skype then most definitely I will be depressed or have quilt feelings of breaking down communication to people who are so dear to

Website Review and Summary Essay Example for Free

Website Review and Summary Essay Infant Mortality Infant mortality is a serious matter when it concerns the life of an infant. Many individuals and families have had to face the death of a child in one way or another. Infant mortality can cause devastating implications for all those involved. The awareness of assistance offered from local, state and national government agencies are available for those who have experience the death of an infant. One way to provide information would be to understand what public and community health is all about. Public and Community health is important and researching related websites can benefit those who are interested. This paper will address and compare how local, state and national government websites address specific information regarding infant mortality. In addition, information will be explored specifically related to whether or not the information found in the websites overlap, what type of structure is identified between the levels of government, what functions are seen at each level of government, and how the levels of government work together specifically regarding infant mortality. Defining Public and Community Health. First of all, public health deals with promoting health through the communication and organizational efforts to assist health care providers, the public, the communities and individuals. (Kleinfelder, 2013). To be honest, for the most part, people refer to public health simply as â€Å"free†, meaning a place to go when they need state and federally funded vaccinations, influenza and pneumonia shots, wellness prevention, and tuberculine screening for health care workers to mention a few. As far as community health, this addresses issues through education, research on diseases, injury prevention and the promotion of healthy lifestyles. How  does the information overlap? When researching for the sole purpose of obtaining information specifically related to infant mortality, many websites are reviewed. The information identified did at times overlap such as the percentages of infant deaths at the local and state levels as opposed to the United States percentage of infant deaths, meaning the percentages were typically the same. In addition, the top rated causes of infant deaths from one website to the next were similar such as sudden infant death syndrome, premature births, very low birth weights and birth defects. Types of structure and function identified between levels of government. Each level of the government whether local, state or national, has their own processes and procedures to handle concerns affecting the people. The structure at the state level governs over the city, or local counties. When an issue arises that local and state levels cannot handle, national levels will assist to resolve those issues. The purpose of understanding the structures among the government levels is not only to figure out how to identify, analyze, plan and implement resolutions to health concerns, such as infant mortality, it is also important understand the funding for health care and other needs of the people. In the eyes of the people it must prove its legitimacy to remain in office. According to Beitsch LM, Brooks, Grigg Menachemi, (2006), â€Å"A strong infrastructure is required to perform public health services and to protect the public from environmental toxins, influenza, chronic diseases, and unacceptable rates of infant mortality. State health agencies must be able to provide the core functions of public health, assessment, policy development, and assurance across the domains of health protection and health promotion activities.† The local and state agency’s focus on decreasing infant death. To accomplish this, the government provides funding to enable state-based programs the ability to perform surveillance to gather information that would enable a decline in maternal and infant mortality. The purpose of the information gathered is used to develop the health programs associated with infant mortality or other health related issues. In addition, the ability to identify infant mortality risks rests on the shoulders of local and state agencies. These agencies use of pregnancy risk assessment monitoring systems data to complete this task. On  a national level, the U.S. Department of Health and Human Services will work with state agencies to develop a national strategy for addressing all health related issues. (Riegelman, 2010). How do the levels of government work together? All agencies work in a collaborative effort to improve women’s health prior to pregnancy, promote quality prenatal care, strengthening surveillance and research, including prevention and overall health promotion. According to Beitsch, Brooks, Grigg Menachemi, (2006). â€Å"The goals of these agencies communicate with the main objective to improve access to quality pre-conception, peri-conception, and prenatal health care across racial/ethnic and geographical divides, and to provide the best available care to mothers and infants.† Conclusion In all reality, despite the efforts of all levels of government health agencies, the probability of the concerns surrounding infant mortality will continue simply due to the ignorance and negligence of the American public to simple choose not to do the right thing. All levels of government, whether local, state or national, infant mortality is a health concern to be reckoned with. We, as a community, have an obligation to understand that educating ourselves through research and reviewing websites for knowledge is key to resolve all public and community health concerns on all levels. The paper did explore information related to websites address the type of structure between the levels of government, what functions are seen at each level of government, and how the levels of government work together specifically regarding infant mortality. The ability to promote educational programs to prevent a death of an infant is a necessity to ensure lifelong happiness. References Beitsch LM, Brooks RG, Grigg M, Menachemi N. Structure and Functions of State Public Health Agencies. American Journal of Public Health. 2006; 96(1):167-172. Doi:10.2105/AJPH.2004.053439. Kleinfelder, J., (2013). What is the difference between community health and public health? Retrieved from http://wwwresearchgate./post/What_is_the_diffe†¦ Riegelman, R. K. (2010). Public health 101: Healthy people—healthy populations. Sudbury, MA: Jones and Bartlett.

Team Work Scenarios Essay -- Ethics Team Working Together Essays

Team Work Scenarios Learning Team Each team should respond in paragraph form to the questions that follow the scenarios presented below. Any disagreements or complications that occur within the team regarding the correct response should be noted in the Learning Team Reflection Worksheet for the week. SCENARIOS Duty-based (Deontological): 1. Donna was wrong for setting rules for the team without any input from Michael. He is not going to follow the rules if there was no buy-in on the rules. Donna and Michael should renegotiate the rules together and come up with a set of rules with which both are comfortable. If that doesn?t work, try to get another team member (or a member from another team) to mediate between the two. 2. Stephanie should not lie for her teammates. If ... Team Work Scenarios Essay -- Ethics Team Working Together Essays Team Work Scenarios Learning Team Each team should respond in paragraph form to the questions that follow the scenarios presented below. Any disagreements or complications that occur within the team regarding the correct response should be noted in the Learning Team Reflection Worksheet for the week. SCENARIOS Duty-based (Deontological): 1. Donna was wrong for setting rules for the team without any input from Michael. He is not going to follow the rules if there was no buy-in on the rules. Donna and Michael should renegotiate the rules together and come up with a set of rules with which both are comfortable. If that doesn?t work, try to get another team member (or a member from another team) to mediate between the two. 2. Stephanie should not lie for her teammates. If ...

Guiding Procedures for Response to Emergency Situations

GUIDING PROCEDURES TO RESPOND TO EMERGENCY SITUATIONS ON CONSTRUCTION PROJECTS By Maj  ® Muhammad Ijaz Student MS Disaster Management-2012 at NUST (MCE) Introduction Construction projects involve use of heavy machinery, execution of numerous work activities simultaneously. Working environment like in Pakistan where safety culture does not prevail results in increased vulnerability to accidents thus frequent emergency situations on construction projects. The author being a Project Manager on construction projects have experienced number of emergency situation involving loss of life of worker.The Safety Rules requires that the constructor shall establish Emergency Response Procedures for every project, Life Insurance of worker is also mandatory clause of the contract agreement in Pakistan but normally not implemented in letter and sprite. This article will be useful to assist constructors in developing Emergency Response Procedures. Detailed Emergency Plan helps to minimize the human suffering and economic losses that can result from emergencies. It should be understood that the size and complexity of projects, as well as their access and location, have a bearing on the degree of planning necessary for emergencies.It is therefore strongly recommended that the constructor ensure that a member of staff on site assist in developing the emergency response plan. The Planning Process Planning shall begin before any work commences on the project. Although there may be little time between the award of the contract and the start of the project, a good emergency response plan can be generic and, with some minor changes, can be easily adapted to specific sites and readily implemented.This is especially the case where a constructor specializes in similar types of projects. For meaningful Development of Response Plan following considerations should be kept in mind: 1) Identification and assessment of hazard 2) Assessment of resources 3) Mean of communication 4) Implementati on of the plan 5) Basic Principles 6) Sharing the Procedure 7) Post Emergency Consideration Each of these points is explained in the following sections. Identification and assessment of hazardThe process of hazard identification and assessment involves a thorough review that should include, but not be limited to, the following points: †¢ Transportation, materials handling, hoisting, equipment or product installation, temporary structures, material storage, start-up, and commissioning activities †¢ Environmental concerns †¢ Consultation with the client regarding potential hazards when working in or adjacent to operating facilities †¢ Resources such as material safety data sheets (MSDSs) to determine potential hazards from on-site materials. †¢ Proximity to traffic and public ways.Because construction sites are frequently fast-changing, the process of hazard assessment must be ongoing to accommodate the dynamic environment. Once hazards are identified, the nex t task is to assess the potential or risk involved in each. For each hazard identified, ask: †¢ What can go wrong? †¢ What are the consequences? For each potential hazard it is important to identify resources necessary for an appropriate emergency response. For most events in construction, a simple analysis based on the experience of the people involved on the project is likely sufficient.Assessment of resources It is important to identify which resources are available and have contingency plans in place to make up for any deficiencies. The most important resource on most projects will be a provincial rescue system like 1122. It is essential to verify that rescue system is in effect in the area. Most cities of Punjab have a 1122 system in place, but it is important to know the facilities or limitations available in that location. Is a high-reach rescue team available? What is the response time? What must site personnel do in the meantime?Other on-site resources such as fir e extinguishers, spills containment equipment, and first aid kits must be maintained and clearly identified. Construction equipment may be included among potential emergency resources. Personnel, especially on-site medical staff or workers trained in first aid, should be included in the plan. There may be situations where outside resources are so far away that an adequate response is not possible. In these situations, resources may have to be obtained and kept on site. Examples would include fire protection or ambulance/medical resources in remote areas.Whatever the situation may be, people, equipment, facilities, and materials are needed for emergency response. Where they will come from must be determined in advance. Moreover, the people supplying these resources must be made aware of their role in the plan. Mean of communication An important key to effective emergency response is a communications system that can relay accurate information quickly. To do this, reliable communicatio ns equipment must be used, procedures developed, and personnel trained. It is a good idea to have a backup system in place, in case the ystem is rendered useless by the emergency. For example, telephone lines may be cut. The type and location of emergency communication systems must be posted on the project. This will include location of telephones, a list of site personnel with cellular phones or two-way radios, and any other equipment available. Emergency phone numbers and the site address/location should be posted beside all site phones. On large sites, the location of emergency phones must be clearly marked. The poster like Emergency Response can be used to record this and other information.A communication system must be made up of strategically placed equipment and properly defined responsibilities. The emergency response plan posted in a conspicuous place on the project must identify the designated equipment and the people to operate it. Implementation of the plan The task of a dministering and organizing the plan is vital to its effectiveness. The person who has this task will normally be the person in charge of the emergency response operation or may be assigned to Quality Control Manager (QCM).It is their task to ensure that everyone clearly understands their roles and responsibilities within the emergency response plan (a chart may be helpful in this regard), that emergency resources, whether people or equipment, are kept at adequate levels in step with the progress of the project. It is very important to review the emergency plan on a regular basis and especially after an emergency has occurred. Changes may be necessary where deficiencies became apparent as the plan went into operation. Basic Principles An emergency can be reported from any source i. e. orker on site, an outside agency, or the public. Remember that circumstances may change during the course of an emergency. Any procedures you develop must be able to respond to the ongoing situation. T he following list covers basic actions to take in an emergency. These steps apply to almost any emergency and should be followed in sequence. †¢ Stay calm. †¢ Assess the situation. †¢ Take command. †¢ Provide protection. †¢ Aid and manage. †¢ Maintain contacts. †¢ Guide emergency services. Stay calm – Your example can influence others and thereby aid the emergency response.Assess the situation – Determine what happened and what the emergency is. Look at the big picture. What has happened to whom and what will continue to happen if no action is taken? Try to identify the cause that must be controlled to eliminate immediate, ongoing, or further danger. Take command – The most senior person on the scene should take charge and call, or delegate someone to call, emergency services and explain the situation. Assign tasks for controlling the emergency. This action also helps to maintain order and prevent panic.Provide protection †“ Eliminate further losses and safeguard the area. Control the energy source causing the emergency. Protect victims, equipment, materials, environment, and accident scene from continuing damage or further hazards. Divert traffic, suppress fire, prevent objects from falling, shut down equipment or utilities, and take other necessary measures. Preserve the accident scene; only disturb what is essential to maintain life or relieve human suffering and prevent immediate or further losses. Aid and manage – Provide first aid or help those already doing so. Manage personnel at the scene.Organize the workforce for both a headcount and emergency assignments. Direct all workers to a safe location or command post. This makes it easier to identify the missing, control panic, and assign people to emergency duties. Dispatch personnel to guide emergency services on arrival. Maintain contact – Keep emergency services informed of situation. Contact utilities such as SNGPL, SSGPL, Elec tric Supply etc. where required. Alert management and keep them informed. Exercise increasing control over the emergency until immediate hazards are controlled or eliminated and causes can be identified.Guide Emergency Services – Meet services on site. Lead them to emergency scene. Explain ongoing and potential hazards and cause(s), if known. Sharing the Procedure To be effective, an Emergency Response Procedure must be clearly communicated to all site personnel. The following activities should be considered: †¢ Share the procedure with new site subcontractors and new workers to ensure that it covers their activities adequately. †¢ Share the procedure with suppliers to ensure that it covers any hazards that the storage or delivery of their materials might create. Share new work areas in operating plants with owner/client to ensure that new hazards are identified and covered in the procedure. †¢ Share the procedure with the Joint Health and Safety Committee or H ealth and Safety Representative on a regular basis to address new hazards or significant changes in site conditions. †¢ Place the procedure in a conspicuous location. The Emergency Response Procedure for a construction project must continually undergo review and revision to meet changing conditions. Post Emergency ConsiderationThe recovery process, or what happens after the emergency response has been completed, is a critical step in the plan. Many emergency tasks may be handled by people who are not accustomed to dealing with emergencies. People may have seen their work partners and friends badly injured and suffering great pain. Once the emergency is over, the attitude should not be â€Å"Okay, let’s get back to work† or â€Å"Let’s go home. † Some of the people involved may need assistance in order to recover. In some cases professional counselling may be needed.As part of site emergency planning, construction companies should have measures in pla ce to deal with post-traumatic stress. Local hospitals, ambulance services, and medical practitioners may be able to help. Debriefing is necessary to review how well the plan worked in the emergency and to correct any deficiencies that were identified. Debriefing is critical to the success of future emergency response planning. Conclusion Slow response, lack of resources, or the absence of trained personnel will lead to chaos in an emergency.To minimize human suffering and financial losses, all personnel must know their responsibilities under the emergency response plan. Remember – planning for emergencies should include the following points: 1) hazard identification/assessment 2) emergency resources 3) communication systems 4) administration of the plan 5) emergency response procedure 6) communication of the procedure 7) debriefing and post-traumatic stress procedure. The plan should be used to set emergency procedures, implement and communicate the procedures, and ensure th at any required training has been completed.The plan should also be evaluated regularly to ensure that it conforms to current operations and conditions. In any Emergency Response Procedure, the following steps are basic and essential: †¢ Stay calm. †¢ Assess the situation. †¢ Take command. †¢ Provide protection. †¢ Aid and manage. †¢ Maintain contact. †¢ Guide emergency services. Reader must keep in mind that these are generalized guidelines/procedure and not itself an Emergency Response Plan. The plan should be formulated keeping the specific conditions of the project in mind.Though these guideline/procedures are prepared for the professional involved in construction project, however these may serve as useful basis for Emergency Managers working in related sectors like manufacturing plants, quarry sites etc. References Write a manuscript (term-paper) on any article related to disaster response and recovery. Last date of submission is  31 March 2 012. But please must take into an account the following points, while writing the article. –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The term-paper is an important part of the academic. –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The article must be in the lines of the course/subject parameter, i. . , â€Å"Disaster Response and Recovery† –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The article must be of 7-10 pages. Please don’t expand it by giving unnecessary discussion, be brief and to the point. –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The article must be supported by at least 12 references at the end of the manuscript which should be arranged in alphabetic order, according to the given style;   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  For Journal Articles; Name of authors, (year), â€Å"Title of the article/paper†, Journal, volume, page, ISSN For Book/Thesis Articles; Name of authors, (year), â€Å"Title of the book/thesis†, (Publishers) For Conference Proceedings;Name of authors, (year with month), â€Å"Title of the article/paper† (Conference theme) For Web-page Articles; (Complete site detail, with date and time) For citation, please follow the given instructions; For one author,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (Ali, 2012)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   For two authors,  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (Ali and Usman, 2012)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   For three or more,  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (Ali et al. 2012) O  Very important point:  Ã‚  Ã‚   The â€Å"Similarity Index† (plagiarism check) must  not exceed 15%. In case of more than 15% the article will be rejected and ZERO marks will be award for this activity. Good luck, wish you all the best ARSHAD

Funadamental and Technical Analysis of Nifty

Fundamental and Technical Analysis of Equity Market| Name :- Dhwani Shah Enrollment No :- 0901202144| Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well. – Warren Buffett| A REPORT ON FUNDAMENTAL AND TECHNICAL ANALYSIS OF EQUITY MARKET BY SHAH DHWANI JITENDRA (0901202144) SUBMITTED TO:- Company Guide Mr. Bhavik Shah Advisory Head (Angel Broking Ltd) Faculty Guide Prof. Mayank Patel IBS Ahmedabad A Report submitted in partial fulfilment of the requirement of the MBA Program of The ICFAI University, Dehradun DATE OF SUBMISSION: 15th May, 2010 Authorization The making of this project report is authorized by Mr Bhavik Shah ( Advisory Head) Angel Broking Ltd, Ahmedabad (India). I also express my honest confirmation in support of the fact that the said â€Å"Report† has neither been used before to fulfill any other purpose nor it will be submitted to any other person or authority in future. The report is submitted only as partial fulfillment of the requirement of the MBA Program of ICFAI University, Dehradun. Acknowledgements This research project has been a very enlightening and rewarding experience for me in an area that is of great personal interest. I would like to acknowledge and express my gratitude to three groups of people who provided generous amounts of support and cooperation during this scholarly endeavour. First, I have benefited greatly from the never-ending patience, guidance, and encouragement from my company guide Mr. Bhavik Shah. He gave me the support and knowledge required to complete this project in a successful manner. Thank you Bhavik sir for your never-ending encouragement and support for my scholarly pursuits. I would also like to thank Mr. Sachin Rajveer for his constant support and help. Second, I would like to thank Prof. Mayank Patel my faculty in-charge for providing me all required support from his side in terms of knowledge and encouragement, for being there whenever I have a question of doubt and to solve the same. Lastly, a Special vote of thanks to Prof. Saji Kumar, Prof. Prashant Saxena and My Parents for solving all the problems I faced in terms of sources required and for giving a constant encouragement and aspire me to go ahead and fulfil my goals. â€Å"Success in investing doesn't correlate with I. Q. once you're above the level of 25†¦ Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing. † – Warren Buffet Table of Contents Authorization3 Acknowledgements4 Abstract7 Introduction8 Purpose of the Study:8 Limitations of the Study:8 Method of Collecting Data:8 What Is Fundamental Analysis? 9 The Indian Economy:10 The Industries in the Economy:13 Financial Ratios:23 What Is Technical Analysis? 25 ABB. LTD34 ACC LTD. 35 AMBUJA CEMENT36 AXIS BANK LTD. 37 BHARAT HEAVY ELECTRICALS LTD.. 38 BHARAT PETROLEUM CORPORATION LTD. 39 BHARTI AIRTEL LTD. 40 CAIRN LTD. 41 CIPLA LTD. 42 DLF LTD. 3 GAIL (INDIA) LTD. 44 GRASIM INDUSTRIES LTD45 HCL TECHNOLOGIES LTD. 46 HDFC BANK LTD47 HERO HONDA MOTORS LTD. 48 HINDALCO INDUSTRIES LTD. 49 HINDUSTAN UNILEVER LTD. 50 HOUSING DEVELOPMENT FINANCE CORPORATION LTD. 51 ITC LTD. 52 ICICI BANK LTD53 IDEA CELLULAR LTD. 54 INFOSYS TECHNOLOGIES LTD55 INFRASTRUCTURE DEVELOPMENT FINANCE CO. LTD. 56 JAIPRAK ASH ASSOCIATES LTD. 57 JINDAL STEEL & POWER LTD. 58 LARSEN & TURBO LTD. 59 MAHINDRA & MAHINDRA LTD. 60 MARUTI SUZUKI INDIA LTD. 61 NTPC LTD. 62 OIL & NATURAL GAS CORPORATION LTD. 63 POWERGRID CORPORATION OF INDIA LTD. 64 PUNJAB NATIONAL BANK65 RANBAXY LABORATORIES LTD. 6 RELIANCE CAPITAL LTD. 67 RELIANCE COMMUNICATION LTD68 RELIANCE INDUSTRIES LTD. 69 RELIANCE INFRASTRUCTURE LTD. 70 RELIANCE POWER LTD. 71 SIEMENS LTD. 72 STATE BANK OF INDIA73 STEEL AUTHORITY OF INDIA LTD74 STERLITE INDUSTRIES (INDIA) LTD. 75 SUN PHARMACEUTICAL INDUSTRIES LTD. 76 SUZLON ENERGY LTD. 77 TATA CONSULTANCY SERVICES LTD. 78 TATA MOTORS LTD. 79 TATA POWER CO. LTD. 80 TATA STEEL LTD. 81 UNITECH LTD. 82 WIPRO LTD. 83 Recommendations84 Glossary85 References86 Abstract Stock Market the word itself is enough to speak about itself. It works on two emotions carried by individuals in the market greed and fear. Both emotions either lead to profits or losses. Majority of the participants deal into the market in a speculative manner, buying and selling based on, following the herd or market hear say. But remain an aware about the key reason why a particular stock moved up or fell down. If a stock moves suddenly these individuals say â€Å"Operator must have done that† but forget to find out the real reason. The reasons behind the screen for a company’s share prices going up or falling down, which are hidden in its financial performances and past movement history. These facts can be known by the Fundamental and Technical analysis. Therefore, this report is intended to guide these new entrants and the current market movers about Technical and Fundamental Analysis. To show how the same can lead to profit earning investments and not speculative losses. In this report the basics of Fundamental Analysis have been discussed and all the financial key ratios have been given for the Nifty50 for the 10 years time span from fiscal year 2000 to 2009. A brief idea about Industry and the over all economy is also given. On the bases of these Fundamental tools we can get to know the financial position of a company to back this Technical analysis is also been shown. Initially a few patterns of technical analysis have been explained with an example and later how the use of the same can be done to predicts the future price moves and further a few patterns existing in charts for the current time period have been given. Introduction Purpose of the Study: Is the Stock Market a safe option to invest my savings? For how much time horizon should I invest? What amount of returns should I expect? What are the ideal stocks for investment? This report consists of answers to all these questions which rise in an investors mind before entering into the stock market or when an existing investor buys a stock. For this purpose, Fundamental Analysis of Nifty50 is done for which the economic analysis of the Indian economy is done based on the Inflation Rate, GDPFC, Growth Rate and year on year returns of Nifty. Then a brief Industry analysis is done based on the Industrial Ratios and reason behind them. Finally, Company Analysis is done by analysing the Quality of Management, Product Range of the Company; Financial Strength based certain ratios like Price to Earnings Ratio, Dividend Yield, Price to Book Value, Earnings per Share, Market Capitalization and Market Returns. Following it, Japanese Candle Stick charts showing the chart patters of the market price for each of the 50 scrips are given based on the technical analysis tools and techniques. As Fundamental Analysis is only about identifying undervalued stocks or the booming sectors or companies, but it does not say anything about the timings of the unlocking of that undervaluation but its combination with Technical Analysis will give a better picture to the Investor. As the combination of both enables an investor in taking decisions based on Techno-Funda Analysis and find out the right entry and exit points. This project will even help in knowing the economy as Nifty is the barometer for the Indian Economy, through which the growth patterns and cyclical patterns of the various sectors can also be known, through which scrips of midcap and small can also tracked for the same sector. Limitations of the Study: * . Lesser importance is been given to Economic and Industry Analysis. * Views for investment have been given for short term. Method of Collecting Data: Secondary Data is been used in this project report. This Secondary Data is been collected from reliable sources like the Company Sites and the NSE Site for the Company Data and Indian Bullion, Reserve Bank Of India, and Fimmda Sites for the Industry and Economic Data and for Technical Charts i. charts is been used. Detailed information about the sources is been given in referencing. What Is Fundamental Analysis? Fundamental analysis is a method of evaluating  a security  that entails  attempting to measure  its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysis is an attempt to study everything that can affect the  security's value; including macroeconomic factors (like the overall economy and industry conditions)  and  company-specific factors (like financial condition and management). There are two approaches to Fundamental Analysis Top-Down Approach and a Bottom-Up Approach. * Top-down approach: In this approach, an analyst investigates both international and national economic indicators, such as GDP growth rates, energy prices, inflation and interest rates. The search for the best security then trickles down to the analysis of total sales, price levels and foreign competition in a sector in order to identify the best business in the sector. * Bottom-up approach: In this approach, an analyst starts the search with specific businesses, irrespective of their industry/region. The end  goal of performing fundamental analysis  is to produce a value that an investor  can compare  with the security's current price, with the aim of figuring out what sort of position to take with that security (underpriced=buy, overpriced=  sell or short). Benefits of Fundamental Analysis: * Identifying the intrinsic value of a security. * Identifying long term investment opportunity, as it involves real time data. Drawbacks of Fundamental Analysis: * Too many economic indicators and extensive macroeconomic data can confuse novice investors. * The same set of information on macroeconomic indicators can have varied effects on the same currencies at different times. * It is beneficial only for long term investments. Steps involved in Fundamental Analysis: * Macroeconomic analysis, which involves considering currencies, commodities and indices. Industry sector analysis, which involves the analysis of companies that are a part of the sector. * Financial analysis of the company. Valuation of any security is done through the discounted cash flow (DCF) model, which takes into consideration: * Dividends received by investors. * Earnings or cash flows of a company. * Debt, which is calculated by using the debt to equity ratio and the current ra tio (current assets/current liabilities). The Indian Economy: To understand the Indian Economy firstly we need to understand a few macroeconomic indicators, as macro economy is the environment in which all the firms operate. These indicators suggest the growth and development prospects of an economy as a whole. Given below are the indicators along with a brief description about them and even figures suggesting where the Indian Economy stands as per these indicators. Gross Domestic Product (GDP): The India GDP statistics is a summarization of all the differential factors that forms the basic foundation of the Indian economy. The India GDP statistics is a cumulative report of the performance of all the major parameters of the Indian economy. The statistics of the India GDP clearly reveals that the rise of the India GDP after the 1990s was due to the open economy phenomenon. The paradigm shift of Indian economy from that of a closed-market to open market was during the balance-of-payments crisis in the late ‘80s. The Government of India remained flexible – it opened up the Indian markets such that private investments could easily find an entry. GDP calculated at purchaser’s price is the total value calculated by all the domestic producers, adding any product taxes and deducting the subsidies, if any (these elements are excluded from the value of the products). Due to the change in the economic policy of India, more foreign direct investments (FDIs) and foreign institutional investors (FIIs) came into the country. This, in a way, strengthened the foundation the Indian economy the confidence index of overseas investors was at a high. With the stupendous growth of Indian Information Technology sector, Indian service industry and the Indian BPO sector, the Indian GDP shot up to 6% during the period from 1988 to 2003. It was after 2004, that the growth of the gross domestic product of India showed considerable improvements, mainly geared by the growth in the Indian service and manufacturing industry. The Indian GDP figure stood at an extraordinary 8. 5% during the period thereafter. But thereafter, what hit us was the global meltdown and it’s after impacts. India got swayed off; the immediate repercussion fell on the growth pattern of the India economy. The GDP growth rate started getting a setback and from then on it had only experienced a downward pattern. A dramatic improvement might not be expected, but a slow and steady growth path is surely desirable. Inflation: Inflation means a persistent rise in the price levels of commodities and services, leading to a fall in the currency’s purchasing power. Inflation Rate is the measure of inflation over a period of time. Inflation rate is calculated for any time period weekly, monthly or annual. The rising figures show us an increase in the rate of goods and services and a fall in the purchasing power of the consumer with the same level of incomes. Therefore an individual must invest keeping in mind the future rise in prices. Increasing inflation is really bad for retirement planning because the target keeps on getting higher and higher to pay for the same quality of life. In other words, your savings will buy less. As a result, you will need to save more today to pay for higher priced goods and services in the future. Since everything you buy today costs more, so you have less left-over income available to save. Inflation has another effect too, once people start to expect inflation, they will spend now rather than later. That's because they know things will only cost more lately. This consumer spending heats up the economy even more, leading to further inflation. This situation is known as spiraling inflation because it spirals out of control. Inflation is important if you are holding bonds or Treasury notes. These fixed price assets only give a fixed return each year. As inflation spirals faster than the return on these assets, they become less valuable. Price Inflation greatly effects time value of money (TVM). It is a major component of interest rates which are at the heart of all TVM calculations. Actual or anticipated changes in the inflation rate cause corresponding changes in interest rates. Lenders know that inflation will erode the value of their money over the term of the loan so they increase the interest rate to compensate for that loss. Nifty: India is a land of many cultures and languages. Its vibrancy and quest for growth throws up as many questions as it throws up new answers. With globalization people are constantly seeking broader horizon of knowledge and information. How much has the country prospered? How well is the economy doing? Nifty is the platform on which India finds these answers. The Nifty Index is a composite of the top 50 stocks listed on the National Stock Exchange (NSE). It is a simplified tool that helps investors and ordinary people alike, to understand what is happening in the stock market and by extension, the economy. If the Nifty Index performs well, it is a signal that companies in India are performing well and consequently that the country is doing well. An upbeat economy is usually reflected in a strong performance of the Nifty Index. A rising index is also indicative that the investors are positive about the future. The Nifty Index is based upon solid economic research. It is internationally respected and recognized as a pioneering effort in providing simpler understanding of stock market complexities. Nifty is the flagship index of NSE, the 3rd largest stock exchange in the world in terms of number of transactions (Stock Futures). Nifty has been used to represent S;P CNX Nifty, owned and managed by India Index Services and Products Ltd. (IISL), a joint venture between NSE and CRISIL. * Nifty index can be used by individuals to track market movements and compare performance of individual companies’ vis-a-vis market performance. * Shareholders evaluation of management decisions – performance of a company vis-a-vis the market generally reflects the perception of the investor. * Assist traders and market intermediaries to evaluate performance and sentiments across the market. Index funds can replicate Nifty indices to earn market returns. * Derivative trading – Investors can use Nifty indices for hedging their exposures in the equity markets. Benchmarking NAV performances – Nifty is the benchmark for performance of open ended and close ended funds. Given above, are the annual returns of S;P CNX Nifty. In the fiscal year ‘03-‘04 and ‘05-’06 Nifty has given annual returns of 81. 29% and 67. 13%. In the year ’08-’09 the time of Global Meltdown Nifty showed strength as compared to the global markets(NASDAQ) and showed instant recovery and rose up to 73. 9% in the fiscal year ’09-’10. The Industries in the Economy: IT Industry: The Indian information technology (IT) industry has played a major role in placing India on the international map. The industry is mainly governed by IT software and facilities for instance System Integration, Software experiments, Custom Application Development and Maintenance (CADM), network services and IT Solutions. According to Nasscom's findings Indian IT-BPO industry expanded by 12% during the Fiscal year 2009 and attained aggregate returns of US$ 71. 6 billion. Out of the derived revenue US$ 59. billion was solely earned by the software and services division. Moreover, the industry witnessed an increase of around US$ 7 million in FY 2008-09 i. e. US$ 47. 3 billion against US$ 40. 9 bil lion accrued in FY 2008-09 | IT Outsourcing in India: As per NASSCOM, IT exports in business process outsourcing (BPO) services attained revenues of US$ 48 billion in FY 2008-09 and accounted for more than 77% of the entire software and services income. Over the years India has been the most favorable outsourcing hub for firm on a lookout to offshore their IT operations. The factors behind India being a preferred destination are its reasonably priced labor, favorable business ambiance and availability of expert workforce. Considering its escalating growth, IBM has plans to increase its business process outsourcing (BPO) functions in India besides employing 5,000 workforces to assist its growth. In the next few years, the industry is all set to witness some multi-million dollar agreements namely: * A 5 year agreement between HCL Technologies and News Corp for administering its information centers and IT services in UK. As per the industry analysts, the pact is estimated to be in the range of US$ 200-US$ 250 million * US$ 50 million agreement between HCL Technologies and Meggitt, UK-based security apparatus manufacturer, for offering engineering facilities. * Global giant Wal-Mart has short listed there Indian IT dealers namely Cognizant Technology Solutions, UST Global and Infosys Technologies for a contract worth US$ 600 million. India's domestic IT Market: India's domestic IT Market over the years has become one of the major driving forces of the industry. The domestic IT infrastructure is developing contexts of technology and intensity of penetration. In the FY 2008-09, the domestic IT sector attained revenues worth US$ 24. 3 billion as compared to US$ 23. 1 billion in FY 2007-08, registering a growth of 5. 4%. Moreover, the increasing demand for IT services and goods by India Inc has strengthened the expansion of the domestic market with agreements worth rising up extraordinarily to US$ 100 million. By the FY 2012, the domestic sector is estimated to expand to US$ 1. 7 billion against the existing from US$ 1 billion. Government initiative in India's domestic IT Market: The Indian government has established a National Taskforce on IT with an aim of formatting a durable National IT Policy for India * Endorsement of the IT Act, which offers an authorized structure to assist electronic trade and electronic operations. Major investments in India's domestic IT Market: * According to Andhra Pradesh Government the state's SEZs and Software T echnology Parks of India (STPI) will witness an investment of US$ 3. 27 billion in the next few years. * VMware Inc, San Francisco-based IT firm is looking forward to invest US$ 100 million by 2010 in India. EMC Corporation's total Indian assets is expected to reach US$ 2 billion by 2014 Future of Indian IT Industry: The Indian IT sector persists to be one of the flourishing sectors of Indian financial system indicating a speedy expansion in the coming years. As per NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion by 2020 out of which the domestic sector will account for US$ 50 billion in earnings. In total the export and domestic IT sector are expected to attain profits amounting to US$ 225 billion along with new prospects from BRIC nations and Japan for its outsourcing operations. Software Industry: It's the technological revolution that at times brings surprising opportunities for some nations. India, though not among the front runners in terms of economic growth, has successfully utilized such opportunities in the revolution to become an IT hotspot. For the past several years, India has been an increasingly favored destination for customized software development. As a result, a number of software companies in India have come up. Not only the number of players has increased in the Indian IT market, but at the same time, Indian software companies have done considerably well in the global market. Such huge success of software companies in India has given birth to a new speculation – whether other developing countries should imitate Indian example and whether the success of India would constitute a competitive challenge to the software industry of the developed world or not. The Software Industry in India: With the huge success of the software companies in India, the Indian software industry in turn has become successful in making a mark in the global arena. This industry has been instrumental in driving the economy of the nation on to a rapid growth curve. As per the study of NASSCOM-Deloitte, the contribution of IT/ITES industry to the GDP of the country has soared up to a share of 5% in 2007 from a mere 1. 2% in 1998. Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33% in the fiscal year ended in 2008. The export of software has also grown up, which has been instrumental in the huge success of the Indian software companies as well as the industry. In fact, software export from India accounts for more than 65% of the total software revenue. The domestic software market largely depends upon sale of software packages and products, which constitute major part of revenues. Products account for almost 40% of the domestic market. On the other hand, more than 80% of revenue from software exports comes from software services like custom software development and consultancy services etc. Reasons behind Success of Indian software companies: There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market. India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business solutions for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India. IT Business Sectors: Most of the software companies in India are into varied types of business. There can be several types of business in the IT sectors: * Infrastructure Software: These include OS, middleware and databases. * Enterprise Software: These automate business process in diverse verticals like finance, sales and marketing, production and logistics. * Security Software * Industry-specific Software * Contract Programming Top Companies in India: There are plenty of software companies in India which have been doing well. However, some of the top Indian software companies can be listed as: * Tata Consultancy Services * Wipro Limited * Infosys * HCL Technologies Tech Mahindra * Patni Computer Systems * i-flex Solutions * MphasiS * L;T Infotech * IBM India Banking Industry: The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years, based on the projections made in the â€Å"India Vision 2020† prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 are estimated at Rs 40, 90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13. 4 per cent during the rest of the decade as against the growth rate of 16. 7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase. The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grind lays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry. Cement Industry: The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Industry. In 1927, Concrete Association of India was set up to create public awareness on the utility of cement as well as to propagate cement consumption. The cement industry in India saw the price and distribution control system in the year 1956, established to ensure fair price model for consumers as well as manufacturers. Later in 1977, government authorized new manufacturing units (as well as existing units going for capacity enhancement) to put a higher price tag for their products. A couple of year’s later; government introduced a three-tier pricing system with different pricing on cement produced in high, medium and low cost plants. Cement industry, in any country, plays a major role in the growth of the nation. Cement industry in India was under full control and supervision of the government. However, it got relief at a large extent after the economic reform. But government interference, especially in the pricing, is still evident in India. In spite of being the second largest cement producer in the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind this is the poor rural people who mostly live in mud huts and cannot afford to have the commodity. Despite the fact, the demand and supply of cement in India has grown up. In a fast developing economy like India, there is always large possibility of expansion of cement industry. Cement Production and Growth: Domestic demand plays a major role in the fast growth of cement industry in India. In fact the domestic demand of cement has surpassed the economic growth rate of India. The cement consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement consumption, the state of Maharashtra leads the table with 12. 18% consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14. 72% of production, while Rajasthan remains at second position. The production of cement in India grew at a rate of 9. 1% during 2006-07 against the total production of 147. 8 MT in the previous fiscal year. During April to October 2008-09, the production of cement in India was 101. 04 MT comparing to 95. 05 MT during the same period in the previous year. During October 2009, the total cement production in India was 12. 37 MT compared to a production of 11. 61 MT in the same month in the previous year. The cement companies are also increasing their productions due to the high market demand. The cement companies have seen a net profit growth rate of 85%. With this huge success, the cement industry in India has contributed almost 8% to India's economic development. Technology Up-gradation: Cement industry in India is currently going through a technological change as a lot of up-gradation and assimilation is taking place. Currently, almost 93% of the total capacity is based entirely on the modern dry process, which is considered as more environment-friendly. Only the rest 7% uses old wet and semi-dry process technology. There is also a huge scope of waste heat recovery in the cement plants, which lead to reduction in the emission level and hence improves the environment. Recent Investments in the Indian Cement Industry * In a recent announcement, the second largest cement company in South India, Dalmia Cement declared that it's going to invest more than US$ 652. 6 million in the next 2-3 years to add 10 MT capacities. * Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2. 1 billion. * India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a cost of US$ 104 billion. * Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement plant in Maharashtra. It will invest US$ 463. 2 million for that. * Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$ 221. 36 million. * Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT cement plant in Orissa. Automobile Industry: Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. Every other day, we have been hearing about some new launches, some low cost cars – all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis. The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs. The figures show that the automobile sector in India has been growing robustly. The market shares of the different types of vehicles will clearly depict the demand pattern in this sector. Aluminum Industry: Aluminum Industry in India is a highly concentrated industry with the top 5 companies constituting the majority of the country's production. With the growing demand of aluminum in India, the Indian aluminum industry is also growing at an enviable pace. In fact, the production of aluminum in India is currently outpacing the demand. Though India's per capita consumption of aluminum stands too low (under 1 kg) comparing to the per capita consumptions of other countries like US ; Europe (range from 25 to 30 kgs), Japan (15 kgs), Taiwan (10 kgs) and China (3 kgs), the demand is growing gradually. In India, the industries that require aluminum most include power (44%), consumer durables, transportation (10-12%), construction (17%) and packaging etc. The Background: Though the existence of Aluminum was first established in the year 1808, it took almost 46 years to make its production commercially viable. The research work of several years resulted in extracting the aluminum from the ore. Aluminum is third most available element in the earth constituting almost 7. 3% by mass. Currently it is also the second most used metal in the world after steel. Due to the consistent growth of Indian economy at a rate of 8%, the demand for metals, used for various sectors, is also on the higher side. As a result, the Indian aluminum industry is also growing consistently. In FY09, the aluminum industry in India saw a growth of about 9%. The production of aluminum started in India in 1938 when the Aluminum Corporation of India's plant was commissioned. The plant which was set up with a financial and technical collaboration with Alcan, Canada had a capacity of producing 2,500 ton per annum. Hindustan Aluminum Corporation (Hindalco) was set up in UP in the year 1959; it had a capacity of producing 20,000 ton per annum. In 1965, a public sector enterprise Malco which had a capacity of 10,000 ton per annum was commissioned; by 1987, National Aluminum Company (NALCO) was commissioned to produce aluminum. It had a capacity of producing 0. 218 million ton. During the 1970s, the government started regulating and controlling the Indian aluminum industry. Restrictions in entry and price distribution controls were quite common in the Indian aluminum sector. Aluminum Control Order was implemented where the aluminum producers had to sell 50% of their products for electrical usages. However, in 1989, the order was removed as the government decontrolling was revoked. With de-licensing of industry in 1991, the liberal import of technologies and capital goods was started. The liberalization resulted in a growth rate of 12% of the industry, comparing to the growth rate of 6% during the 1980. Aluminum Production in India: India is world's fifth largest aluminum producer with an aluminum production competence of around 2. 7 million tones, accounting almost 5% of the total aluminum production in the world. India is also a huge reservoir of Bauxite with a Bauxite reserve of 3 billion tones. The Production: India lies at the eighth position in the list of leading primary aluminum producers in the world. India saw a significant growth in aluminum production in the past five years. In 2006-07, the production target of aluminum in India laid by the Ministry of Mines, Government of India was 1,153 KT, which was augmented to 1,237 KT in the next year (2007-08). Due to the growing demand from the construction, electrical, automobiles and packaging industry, the production of aluminum also hiked up. In FY 09, the total aluminum production in India was around 1. 35 tones. The Consumption: After a stagnant consumption of primary aluminum in India from the end of 1990s to 2002 (when the consumptions were between 500 – 600 KT), it started rising sharply since 2002. The consumption reached at 1,080 KT in 2006. The consumption of aluminum in India is dominated by the industries like power, infrastructure, and transportation etc. The Major Players: The Indian aluminum industry is dominated by four or five companies that constitute the majority of India's aluminum production. Following are the major players in the Indian aluminum industry: * Hindustan Aluminum Company (HINDALCO): Hindalco is the biggest player in the aluminum industry in India with around 39% of market share. An Aditya Birla Group flagship company, Hindalco has its aluminum plant at Renukoot in Uttar Pradesh. It has various aluminum products with a market share of 42% in primary aluminum, 20% in extrusions 63% in rolled products, 31% in wheels and 44% in foils. * Sterlite Industries: The aluminum business of Sterlite Industries Limited comprises of two Indian aluminum giants – BALCO and MALCO. While BALCO is a partially integrated, MALCO is a fully integrated producer of aluminum. Sterlite has got a market share of around 32%. * National Aluminum Company (NALCO): It is also one of the leading aluminum producers in India. Government of India has a stake of 87. 15% in this company. Its aluminum refinery is located at Damanjodi. It also has a smelter located at Angul, Orissa. Currently, NALCO is concentrating on a capex programme to increase its production from 345,000 tones to 460,000 tones. * Bharat Aluminum Company (BALCO) * MALCO * JINDAL Telecommunications Industry: The Communication Industry in India is one of the rapidly emerging sectors in India and is estimated to surface as the second biggest international telecom market. As per the report carried out by Telecom Regulatory Authority of India (TRAI), Indian communication industry has registered a 3. 5% increase in its total telecom subscribers in December 2009. The sector touched 562. 1 million in its total number of subscribers within a month, against 543. 20 million in November 2009. The growth in communication industry was triggered by an increase in the revenues generated from both landline and mobile facilities. On December 31, 2009 the sector earned the revenue of USD 8. 56 billion. As per the Business Monitor International report, the nation is all set to include 8 to 10 million cellular phone subscribers on monthly basis. At this pace the communication industry is expected to encompass more than half of India's population i. e. 612 million cellular phone subscribers by mid 2012. In addition, as per a research carried out by Nokia, the Telecommunications sector is estimated to surface as the biggest driving component in India's GDP with a contribution of about 15. 4% by the FY2014. India as an emerging Value-Added Services Market: As per a research conducted by Stanford University, Indian mobile value-added services (MVAS) are expected to reach USD 2. 74 bn by the FY2010. To benefit from the emerging MVAS market in India, Reliance Telecommunications and Bharti Airtel Limited are all set to introduce online cellular phone applications in Indian retail stores. While Bharti Airtel will offer around 1,250 applications, Reliance Telecommunications' applications will soon be accessible to its GSM customers by Feb 2010. India as an emerging telecom equipment manufacturing Market: The manufacturing of Cellular phone in India is predicted to expand at an annual rate of 28. 3% till the FY 2011 which can be translated as a production of 107 million mobile handsets by 2010. The production would automatically generate profits and is predicted to increase at an annual rate of 26. 6% till 2011, reaching the target of USD13. billion. Chief Investments in the Communication Industry in India: Over the past one decade, the flourishing Indian Communication industry has been successful in drawing the attention of conglomerates that have invested and are willing to invest more in the sector. With the influx of new telecom giants in Indian market, the investments are likely to gain immense momentum: * Investment of USD 6 bn by Vodafone Essar for the next 3 fis cal years in order to expand its list of cellular phone subscribers to 100 million against the existing 40 million. By 2010, Reliance Communications (RCom) is expecting to increase the total number of telecom towers by constructing 56,596 telecom towers and attaining the preset target of 100,000. * Telenor, Norway based telecom giant has purchased 7% of shares in Unitech Wireless and now possesses 67. 25% by bringing in an investment of USD 431. 70 million * Indian government owned telecom player, BSNL will invest USD1. 17 billion in its WiMax scheme * A proposal of foreign direct investment worth USD 660. million by Federal Agency for State Property Management of the Russian Federation has been recently approved by the Indian government. The Agency would be acquiring 20% stake in Sistema-Shyam after bringing in the investment. * A USD 1 billion investment will be brought in by Tata Teleservices in its newly introduced GSM facility Tata DoCoMo. Future of Communication Industry in In dia: Indian Communication Industry has a flourishing future in its value-added services market. The pre-set target of the 11th plan from FY 2007 – 12 is to provide 600 million cellular phone connectivity aided by an investment of USD 74 billion. Moreover, it is estimated that by the FY 2012 the profits generated by Indian Communication Industry will touch USD 55 billion against the current USD 31 billion. Pharma Industry: The pharmaceutical industry in India is among the most highly organized sectors. This industry plays an important role in promoting and sustaining development in the field of global medicine. Due to the presence of low cost manufacturing facilities, educated and skilled manpower and cheap labor force among others, the industry is set to scale new heights in the fields of production, development, manufacturing and research. In 2008, the domestic pharma market in India was expected to be US$ 10. 76 billion and this is likely to increase at a compound annual growth rate of 9. 9 per cent until 2010 and subsequently at 9. 5 per cent till the year 2015. Industry Trends: * The pharma industry generally grows at about 1. 5-1. 6 times the Gross Domestic Product growth * Globally, India ranks third in terms of manufacturing pharma products by volume * The Indian pharmaceutical industry is expected to grow at a rate of 9. 9 % till 2010 and after that 9. 5 % till 2015 * In 2007-08, India exported drugs worth US$7. billion in to the US and Europe followed by Central and Eastern Europe, Africa and Latin America * The Indian vaccine market which was worth US$665 million in 2007-08 is growing at a rate of more than 20% * The retail pharmaceutical market in India is expected to cross US$ 12-13 billion by 2012 * The Indian drug and pharmaceuticals segment received foreign direct investment to the tune of US$ 1. 43 billi on from April 2000 to December 2008 Challenges: Every industry has its own sets of advantages and disadvantages under which they have to work; the pharmaceutical industry is no exception to this. Some of the challenges the industry faces are: * Regulatory obstacles * Lack of proper infrastructure. * Lack of qualified professionals * Expensive research equipments * Lack of academic collaboration * Underdeveloped molecular discovery program * Divide between the industry and study curriculum Government Initiatives: The government of India has undertaken several including policy initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the measures adopted are: * Pharmaceutical units are eligible for weighted tax reduction at 150% for the research and development expenditure obtained. Two new schemes namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Program have been launched by the Government. * The Government is contemplating the creation of SRV or special purpose vehicles with an insurance cover to be used for funding new drug research * The Department of Pharmaceuticals is mulling the cre ation of drug research facilities which can be used by private companies for research work on rent Pharma Export: In the recent years, despite the slowdown witnessed in the global economy, exports from the pharmaceutical industry in India have shown ood buoyancy in growth. Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. For the financial year 2008-09 the export of drugs is estimated to be $8. 25 billion as per the Pharmaceutical Export Council of India, which is an organization, set up by the Government of India. A survey undertaken by FICCI, the oldest industry chamber in India has predicted 16% growth in the export of India's pharmaceutical growth during 2009-2010. Key Players in the Industry: There are several national and international pharmaceutical companies that operate in India. Most of the country's requirements for pharmaceutical products are met by these companies. Some of them are briefly described below: * Ranbaxy Laboratories Limited is the biggest pharmaceutical manufacturing company in India. The company is ranked at the 8th position among the global generic pharmaceutical companies and has presence in 48 countries including world class manufacturing facilities in 10 countries and serves to customers from over 125 countries. Ranbaxy Laboratories 2009-2010 Q3 Net Profit Results showed a profit of Rs 116. 6 crores as compared to Rs 394. crores deficit, recorded during the corresponding period last fiscal. * Dr. Reddy's Laboratories manufactures and markets a wide range of pharmaceuticals both in India and abroad. The company has 60 active pharmaceutical ingredients to manufacture drugs, critical care products, diagnostic kits and biotechnology products. The company has 6 FDA plants that produce active pharma ingredients and 7 FDA inspected and ISO 9001 and ISO 14001 certified plants. Dr. Reddy's Q1 FY10 result shows the revenues of the company at Rs. 18,189 million which is up by 21%. During this quarter the company introduced 24 new generic products, applied for 22 new generic product registrations and filed 4 DMFs. * Cipla is an Indian pharmaceutical company renowned for the manufacture of low cost anti AIDS drugs. The company's product range comprises of anthelmintics, oncology, anti-bacterial, cardiovascular drugs, antibiotics, nutritional supplements, anti-ulcerants, anti-asthmatics and corticosteroids. Cipla also offers other services like quality control, engineering, project appraisal, plant supply, consulting, commissioning and know-how transfer, support. For the financial year 2008-09 the company registered an increase of 22% in sales and other income over the previous year. * Nicholas Piramal is the second largest pharmaceutical healthcare company in India. The brands manufactured by the company include Gardenal, Ismo, Stemetil, Rejoint, Supradyn, Phensedyl and Haemaccel. Nicholas Piramal has entered into join ventures and alliances with several international corporations like Cheissi, Italy; IVAX Corp; UK, F. Hoffmann-La Roche Ltd. , Allergan Inc. , USA etc. Glaxo Smithkline (GSK) is a United Kingdom based pharma company; it is the world's second largest pharmaceutical company. The company's portfolio of pharma products consist of central nervous system, respiratory, oncology, vaccines, anti-infectives and gastro-intestinal/metabolic products among others. On November 2009, the FDA had announced that the H1N1 vaccine manufactured by GSK would join the list of the four vaccines approved. * Zydus Cadila also known as Cadila Healthcar e is an Indian pharmaceutical company located in Gujarat. The company's 1QFY2010 results show the net sales at Rs880. cr which is higher than the estimated Rs773cr. The net profit was Rs124. 8cr which was increase of 39%; the increase was on account of higher sales and improvement in the OPM. Financial Ratios: Earnings per Share( EPS): The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share   serves as an indicator of  a company's profitability. Calculated as : When calculating, it is more accurate to use a  weighted average number of shares outstanding over the reporting term, because the  number of shares outstanding can change over time. An important aspect of EPS that's often ignored is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS number, but one could do so  with  less equity (investment) – that company would be more efficient at using its  capital to generate income and, all other things being equal, would be a â€Å"better† company. Investors also need to be aware of earnings manipulation that will affect the quality of the earnings number. It is important not to rely on any one financial measure, but to use it in conjunction with statement analysis and other measures. Price to Book Value (P/B): A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. Also known as the â€Å"price-equity ratio†. Calculated as: A lower  P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware that  this varies   by industry. This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately. Price to Earnings Ratio (P/E): A valuation ratio of a company's current share price compared to its per-share earnings. Calculated as: For example, if a company is currently trading at Rs. 43. 00 a share and earnings over the last 12 months were Rs 1. 95 per share, the P/E ratio for the stock would be 22. 05 (Rs43/Rs1. 95). In general, a high P/E  suggests that investors are expecting  higher earnings  growth  in the future compared to companies with a  lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually  more useful to compare the P/E ratios of one  company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors  using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects. The P/E is sometimes  referred to as the â€Å"multiple†, because it shows how much investors are willing to pay per Re. of earnings. If a company were currently trading at a multiple  (P/E) of 20, the interpretation is that an investor is  willing to pay Rs. 20 for Re. 1 of   current earnings. It is important that investors note  an important  problem that arises with the P/E measure, and to avoid basing a decision on this measure alone. The denominator (earnings) is based on an accounting measure of earnings  that  is susceptible to forms of manipulation, making the  quality of the P/E  only as good as the quality of the underlying earnings number. Dividend Yeild (D. Y): A financial ratio that  shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a  stock. Dividend yield is calculated as follows: Dividend yield is  a way to measure how much cash flow you are getting for each dollar invested in an equity position. Investors who require a minimum stream of cash flow from their investment portfolio can secure this cash flow by investing in stocks paying relatively high, stable dividend yields. What Is Technical Analysis? Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify  patterns that can suggest future activity. Just as there are many investment styles on the fundamental side, there are also many different types of technical traders. Some rely on chart patterns; others use technical indicators and oscillators, and most use some combination of the two. In any case, technical analysts' exclusive use of historical price and volume data is what separates them from their fundamental counterparts. Unlike fundamental analysts, technical analysts don't care whether a stock is undervalued – the only thing that matters is a security's past trading data and what information this data can provide about where the security might move in the future. The field of technical analysis is based on three assumptions: * The market discounts everything. * Price moves in trends. * History tends to repeat itself. The Market Discounts Everything: A major criticism of technical analysis is that it only considers price movement, ignoring the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company – including fundamental factors. Technical analysts believe that the company's fundamentals, along with broader economic factors and market psychology, are all priced into the stock, removing the need to actually consider these factors separately. This only leaves the analysis of price movement, which technical theory views as a product of the supply and demand for a particular stock in the market. Price Moves in Trends: In technical nalysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption. History Tends To Repeat Itself: Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart  patterns to analyze market movements and understand trends. Although many of these charts have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves. Although technical analysis and fundamental analysis are seen by many as polar opposites – the oil and water of investing – many market participants have experienced great success by combining the two. For example, some fundamental analysts use technical analysis techniques to figure out the best time to enter into an undervalued security. Oftentimes, this situation occurs when the security is severely oversold. By timing entry into a security, the gains on the investment can be greatly improved. Alternatively, some technical traders might look at fundamentals to add strength to a technical signal. For example, if a sell signal is given through technical patterns and indicators, a technical trader might look to reaffirm his or her decision by looking at some key fundamental data. Oftentimes, having both the fundamentals and technical’s on your side can provide the best-case scenario for a trade. Not Just for Stocks: Technical analysis can be used on any security with historical trading data. This includes stocks, futures and commodities, fixed-income securities, forex, etc. In this tutorial, we'll usually analyze stocks in our examples, but keep in mind that these concepts can be applied to any type of security. In fact, technical analysis is more frequently associated with commodities and forex, where the participants are predominantly traders. Now that the philosophy behind technical analysis is understood, with the help of certain examples let’s see how it really works. Trend: One of the most important concepts in technical analysis is that of trend. The meaning in finance isn't all that different  from the general definition of the term – a trend is really nothing more than the general direction in which a security or market is headed. There are three types of trend: * Uptrends: Higher Highs and Higher Lows * Downtrends: Lower Highs and Lower Lows * Sideways/Horizontal Trends: Little movement up or down in the peaks and troughs Along with these three trend directions, there are three trend classifications. A trend of any direction can be classified as a long-term trend, intermediate trend or a short-term trend. In terms of the stock market, a major trend is generally categorized as one lasting longer than a year. An intermediate trend is considered to last between one and three months and a near-term trend is anything less than a month. A long-term trend is composed of several intermediate trends, which often move against the direction of the major trend. If the major trend is upward and there is a downward correction in price movement followed by a continuation of the uptrend, the correction is considered to be an intermediate trend. The short-term trends are components of both major and intermediate trends. It is important to be able to understand and identify trends so that you can trade with the trend rather than against them. Two important sayings in technical analysis are â€Å"the trend is your friend† and â€Å"don't buck the trend†. Trendline is the tool used to draw trends and even identify the support and resistance. Support and Resistance: Support: The price level through which a stock or market seldom falls. Resistance: The price level that a stock or market seldom surpasses. Once a resistance or support level is broken, its role is reversed. If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to  reverse its role. For a true reversal to occur, however, it is important that the price make a strong move through either the support or resistance. Support and resistance analysis is an important part of trends because it can be used to make trading decisions and identify when a trend is reversing. For example, if a rader identifies an important level of resistance that has been tested several times but never broken, he or she may decide to take profits as the security moves toward this point because it is unlikely that it will  move past this level. Support and resistance levels both test and confirm trends and need to be monitored by anyone who uses technical analysis. As long as the price o f the share remains between these levels of support and resistance, the trend is likely to continue. It is important to note, however, that a break beyond a level of support or resistance does not always have to be a reversal. For example, if a price moved above the resistance levels of an upward trending channel, the trend has accelerated, not reversed. This means that the price appreciation is expected to be faster than it was in the channel. Being aware of these important support and resistance points should affect the way that you trade a stock. Traders should avoid placing orders at these major points, as the area around them is usually marked by a lot of volatility. If you feel confident about making a trade near a support or resistance level, it is important that you follow this simple rule: do not place orders directly at the support or resistance level. This is because in many cases, the price never actually reaches the whole number, but flirts with it instead. So if you're bullish on a stock that is moving toward an important support level, do not place the trade at the support level. Instead, place it above the support level, but within a few points. On the other hand, if you are placing  stops or short selling, set up your trade price at or below the level of support. Volumes: Volume is simply the number of shares or contracts that trade over a given period of time, usually a day. The higher the volume, the more active the security. To determine the movement of the volume (up or down), chartists look at the volume bars that can usually be found at the bottom of any chart. Volume bars illustrate how many shares have traded per period and show trends in the same way that prices do. Volume is an important aspect of technical analysis because it is used to confirm trends and chart patterns. Any price movement up or down with relatively high volume is seen as a stronger, more relevant move than  a similar move with weak volume. Therefore, if you are looking at a large price movement, you should also examine the volume to see whether it tells the same story. The other use of volume is to confirm chart patterns. Patterns such as head and shoulders, triangles, flags and other price patterns can be confirmed with volume. In most chart patterns, there are several pivotal points that are vital to what the chart is able to convey. Basically, if the volume is not there to confirm the pivotal moments of a chart pattern, the quality of the signal formed by the pattern is weakened. Another important idea in technical analysis is that price is preceded by volume. Volume is closely monitored to form ideas on upcoming trend reversals. If volume is starting to decrease in an uptrend, it is usually a sign that the upward run is about to end. Now that some of the important factors of technical analysis are understood, we can move on to charts, which help to identify trading opportunities in prices movements. Charts: In technical analysis, charts are similar to the charts that you see in any business setting. A chart is simply a graphical representation of a series of prices over a set time frame. For example, a chart may show a stock's price movement over a one-year period, where each point on the graph represents the closing price for each day the stock is traded There are several things that you should be aware of when looking at a chart, as these factors can affect the information that is provided. They include the time scale, the price scale and the price point properties used. The Time Scale: The time scale refers to the range of dates at the bottom of the chart, which can vary from decades to seconds. The most frequently used time scales are intraday, daily, weekly, monthly, quarterly and annually. The shorter the time frame, the more detailed the chart. Each data point can represent the closing price of the period or show the open, the high, the low and the close depending on the chart used. The Price Scale and Price Point Properties: The price scale is on the right-hand side of the chart. It shows a stock's current price and compares it to past data points. This may seem like a simple concept in that the price scale goes from lower prices to higher prices as you move along the scale from the bottom to the top. The problem, however, is in the structure of the scale itself. A  scale can  either be constructed in a linear (arithmetic) or logarithmic way, and both of these options are  available on most charting services. Charts: There are four main types of charts that are used by investors and traders depending on the information that they are seeking and their individual skill levels. The chart types are: the line chart, the bar chart, the candlestick chart and the point and figure chart. Line Chart: The most basic of the four charts is the  line chart because it represents only the closing prices over a set period of time. The line is formed by connecting the clo