Technidex Automated Analysis Automated realtime unbiased analysis which

Technidex Automated Analysis Automated, real-time & unbiased analysis which has outperformed the underlying… October 2012

Equity Research • • • Fundamental analysis & Technical analysis are the two main schools of thought in the financial markets. Fundamental analysis looks at economic factors, known as fundamentals. Technical analysis, on the other hand, looks at the price movement of a security and uses this data to predict its future price movements. At the most basic level, a fundamental analyst starts with the financial statements, while a technical analyst approaches a security from the charts. By looking at the balance sheet, cash flow statement and income statement, a fundamental analyst tries to determine a company's value. In financial terms, an analyst attempts to measure a company's intrinsic value. Technical traders, on the other hand, believe there is no reason to analyze a company's fundamentals because these are all accounted for in the stock's price. Technicians believe that all the information they need about a stock can be found in its charts. While technical analysis can be used on a timeframe of weeks, days or even minutes, fundamental analysis often looks at data over a number of years. Technidex Private & Confidential | Page 2

Equity Research Fundamental Analysis Technical Analysis Profitability EPS Margin Liquidity Technidex Solvency Private & Confidential | Page 3

Fundamental Analysis – Points to ponder Fund am comp ental Ana any’s lysis i mana s an s t a geme nt & tements & alyzing a c comp ompetitive health, its etitor s & m advantage s, its arket s High Interest Rates – impact profitability Should I look at Q or Y o Y ? Technidex Va lua Fin tion an cia mod l R els ati & os Impact of currency fluctuation dependant on global factors Private & Confidential | Page 4

Technical Analysis – Points to ponder Candlesticks s& t r o pp u ? ? S ? t e a c an ks Stoc t Resist a x e d In Technidex Techn i dema cal Analys n deter d in a ma is studies s mine r u what ket in an a pply & ttemp contin direction, or tre t to ue in n the fu ture. d, will s. r o t a l l ci t & s n o ough i ce erb old n ge Ov ers r ve me Ov i D so me so Private & Confidential | Page 5

BEARs will be BEARs - BULLs will be BULLs Markets are up, they are close to resistance. They will come down… SELL Markets are down, they have broken supports. They will go down further… SELL Technidex Markets are up, they have crossed resistances, they will go up further… BUY Markets are down, they are close to supports, they will go up … BUY Private & Confidential | Page 6

I told you to SELL… See, market has gone down… Y… U B ne to o u g o s ha ld y I to arket m up… See, tal n dame n u F e d I us ysis? l u o h S Anal I need an alternate solution…. An analysis which is automated, realtime, is unbiased and has been successfully back-tested over long periods… Technidex Shou Techni ld I use cal An alysis? Technidex Private & Confidential | Page 7

Objectives of our analysis • To provide continuous & real-time analysis for absolute (positive) capital appreciation in all market environments, by outperforming popular Indian equity benchmarks or the underlying equity / commodity / currency; • To provide analysis & outlook on existing portfolio of equities, derivative instruments, commodities & currencies; • To provide trading / investment strategies and to structure portfolios with an attempt to outperform the market. Technidex Private & Confidential | Page 8

Our Analysis Process • Technical Analysis has stood the test of time and is essentially a graphical analysis of crowd psychology; • Methods may have evolved through time and complex mathematical models may have been applied to the markets, however the principles remain the same; • Technical Analysis is serious business and needs knowledge, expertise & experience to make the right call. It is our attempt to make this complex study as simple, mechanical & unbiased as possible; • Our proprietary computer model provides a very specialized type of technical analysis – performing real-time Statistical Analysis on all relevant market data. We believe that changes in the fundamentals will be visible through technical analysis; • Our research efforts are supplemented by tools that enable us to understand market behavior – rational or irrational and eventually translate it into a single tool for analyzing a stock / an index / a commodity / a currency and even a portfolio; Technidex Private & Confidential | Page 9

What is Statistical Analysis? • Statistical Analysis refers to a collection of methods used to process large amounts of data and report overall trends; • Statistical Analysis is particularly useful when dealing with noisy data; • Statistical Analysis provides ways to objectively report on how unusual an event is based on historical data. Technidex Private & Confidential | Page 10

Our Analysis Methodology • We believe the market knows everything and is continuously telling us what to expect in the coming days by giving indications. It is for us to identify these indicators, make our stock selection and plan our entry & exit; • Our proprietary computer model is real-time and analyses the price movements, volume changes and computes its own indicators, averages, important levels & price bands to analyze market statistics; • These are calculated on a continuous & rolling basis to eliminate faulty analysis on account of truncated week / month or analysis carried out in the middle of the week / month; • Points are awarded and the stock & sector are ranked to filter the strong & weak stocks / sectors. All this is done mechanically with zero manual intervention to prevent biased analysis; • This analysis is simultaneously carried out for trading, short, medium & long term for a complete outlook on all parameters. Technidex Private & Confidential | Page 11

Our Daily Reports • Our analytic reports are simple, concise, precise & unbiased. They summarize the rolling analysis of the portfolio / index with price performance statistics, strength / weakness and deductions; • Our analytic model automatically, simultaneously & continuously selects the Best Buys & Sells for trading, short, medium & long term. Our system also does detailed technical & statistical analysis. Technidex Private & Confidential | Page 12

Back-testing: Our Success Mantra • Back-testing lets you test pre-built trading strategies under historical market conditions to determine whether certain scenarios would have worked well in the past. The idea is that if a trading strategy would have performed well previously, it may be worth considering today; • Our proprietary computer model has been successfully put through rigorous back-testing over long periods to test the success of the system and its analysis at different periods and in different market conditions; • Successfully has been defined as outperforming the underlying (stock, index, commodity, currency) on atleast 70% of the days by atleast 80% of the set of stocks / indexes that have been back-tested; • Back-testing has been carried out for atleast 10 years / since listing, in some cases, for over 15 years. Thus, the system has been successfully tested through several bull & bear phases; • Success rate has been calculated on various periods, T+1 day, T+5 days, T+10 days. Thus, the system works well for trading and investment strategies. Technidex Private & Confidential | Page 13

Back-testing Indexes Technidex Private & Confidential | Page 14

Back-testing S&P CNX Nifty Technidex Private & Confidential | Page 15

Back-testing BSE Sensex Technidex Private & Confidential | Page 16

Back-testing S&P CNX Nifty stocks Technidex Private & Confidential | Page 17

Back-testing CNX Nifty Junior stocks Technidex Private & Confidential | Page 18

Back-testing Nifty Midcap 50 stocks Technidex Private & Confidential | Page 19

About Us Technidex, promoted by Navin Agrawal, develops stock market indexes, designs investment / trading strategies, devises automated & real-time market analytic models (which can be used on different assets - equities, derivative instruments, commodities & currencies) and writes reports based on specialized statistical analysis. Our approach is analytical, using proprietary computer models to develop, devise & design highly specialized solutions. Our success comes from our long experience and nearly two decades of innovation and entrepreneurship, combined with our network of senior-level relationships at some of the largest public & private sector institutions, funds, insurance companies & banks. Navin has over 18 years of capital markets experience as a trader, a strategist, an investment manager and as the Head of Institutional Equities business. Our success comes from Navin’s long experience and nearly two decades of innovation and entrepreneurship, combined with the experience of Institutional Equities, Special Situation Broking, Investment Banking, Cross. Border Arbitrage, Investment Advisory, Statistical Analysis, Index designing. Technidex will focus on developing stock market indexes which analyze the markets differently and on designing Trading & Investment Strategies while neutralizing the general risks associated with stock market investing. Portfolios will be constructed to implement our strategies based on proprietary models attempting to outperform popular Indian equity benchmarks with hedging capabilities. Technidex Private & Confidential | Page 20

Disclaimer This presentation is prepared exclusively for the benefit and for the internal use of the recipient and/or its affiliates and does not carry any right of publication or disclosure to any other party. Neither this presentation nor any of its contents may be used for any other purpose without the prior consent of Technidex. The information in this presentation reflects prevailing conditions and our view as of this date, all of which are, accordingly, subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. The ideas expressed herein factor in the current regulatory framework and accordingly is subject to change. Technidex and their respective partners, directors, officers, agents, employees and shareholders (collectively referred to as "Relevant Persons") expressly disclaim any responsibility or liability whatsoever in connection with the compilation of this presentation and the information contained herein. Any comparative indexes that are made available in this presentation are mere indicators and are in no manner meant to reflect or influence the buying decision of the customers. Technidex and its group companies, directors, employees, affiliates and associates do not in any manner whatsoever verify or vouch for the accuracy or authenticity of the results. This presentation may include future expectations, projections, or forward looking statements. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events to be materially different from future events expressed or implied by such forward looking statements. Technidex Private & Confidential | Page 21

Contact Navin Agrawal Mobile: E-mail: Twitter: Website: +91 98200 27446 Navin@Technidex. in @Technidex www. Technidex. in 905 -A RNA Heights, J V Link Road, Andheri East, Mumbai 400093, INDIA 1212 -B Sheth Heights, Off R C Marg, Chembur East, Mumbai 400074, INDIA Technidex Private & Confidential | Page 22