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Technidex

Developing, devising & designing highly specialized solutions…

October 2012

Technidex

Our approach is analytical. We develop, devise & design highly specialized solutions – indexes, automated statistical analysis & investment / trading strategies –

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using proprietary computer models.

About Us

• Technidex, promoted by Navin Agrawal, develops stock market indexes, structures

investment / trading strategies, designs automated & real-time market analytic models (which can be used on different assets – equities, derivative instruments, commodities & currencies) and writes specialized statistical analytic reports.

• Our approach is analytical, using proprietary computer models to develop highly specialized
• solutions. Our success comes from our long experience and nearly two decades of

innovation & entrepreneurship, combined with our network of senior-level relationships at some of the largest public & private sector institutions, funds, insurance companies & banks.

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• Technidex will be advising institutional investors, corporate & HNI investors, traders &

arbitrageurs and focusing on designing instruments to outperform the market. FIIs, Hedge Funds, DIIs, Mutual Funds, Insurance Companies & Banks analyze markets differently and their research needs differ from each others. With Fundamental & Technical reports easily available in abundance, the need is for research & analysis with a difference.

About Us - Ownership

NAVIN AGRAWAL | FOUNDER & CEO | MUMBAI, INDIA

Navin has 18 years of capital markets experience as a trader, a strategist, an investment manager (specializing in low risk equity strategies and hedging using derivatives) and Head of Institutional Equities business. Navin started his career as an equities trader in 1994 with Skindia Finance, one of India’s premier special situations brokerage and investment banking firms, where he advised a major UK-based hedge fund. He was a key member of the team that developed the globally quoted Skindia GDR Index and pioneered GDR Arbitrage & Reverse Arbitrage (Dual Fungibility) in Indian Depository Receipts. He went on to set up the Institutional Brokerage Desk & Research team as Head of Institutional Equities at IDBI Capital & SMC Global Securities. He was also a key member of the Investment Banking team. At Instanex, a leading, India-focused investment, advisory and risk-management firm, Navin played an

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At Instanex, a leading, India-focused investment, advisory and risk-management firm, Navin played an important role in the restructuring Instanex Capital Inc., USA owned Ownership Indexes in May 2012 and also designed Alpha & Market Neutral Strategies. Navin graduated from H. R. College of Commerce, Mumbai University, in 1994. He lives in Mumbai with his wife and daughter.

What We Do

Indexes

Technidex Stock Futures Indexes are the first indexes to be truly representing the futures segment, based on the futures’ open interest and not on the market cap. Contrary to the standard practice of the index future being based on the underlying, our underlying index is based on the weights in futures’ index. Technidex Stock Futures Indexes are an ideal bench-mark for tradable exposure to Indian stock futures & their underlying stocks.

Automated Analysis

Technidex believes that changes in the fundamentals will be visible through technical analysis. Our automated computer models provide a very specialized type of technical analysis – performing real-time Statistical Analysis on all relevant market data and alert us when the fundamentals change in the form of swings in share prices & volumes. The models have been successfully back- tested for over 10 years, through several bull & bear phases.

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Investment / Trading Strategies

Technidex will focus on specialized analysis to design Trading & Investment Strategies while neutralizing the general risks associated with stock market investing. Strategies & portfolios will be created based on specialized research and outputs from our automated computer models and will be backed with reasonable amount of back-testing.

Index Futures

Index futures in the derivatives segment are based on their underlying index which is normally designed based on the adjusted free-float market cap method. Hence, the index futures are actually representing the adjusted free-float equity market cap while incorporating the prevailing Cost of Carry.

Underlying Index Cost of Carry

Current month Index Future

Underlying Index

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Technidex They do not actually represent the futures (derivative) segment. Very often, the trading / positional activity & interest is in stocks which are not part of the underlying index, hence, their activities don’t get reflected in the index future.

Cost of Carry Index

What We Do: Indexes

Technidex will focus on developing stock market indexes using documented (proprietary) Index Construction & Computation Methodology and analyze the markets

• Technidex Stock Futures Indexes are the first indexes to be truly representing the futures

segment, based on the futures’ open interest and not on the market cap. Contrary to the standard practice of the index future being based on the underlying, our underlying index is based on the weights in futures’ index;

• With a base of 1000 on January 2, 2006, Technidex Stock Futures Indexes have adequate

historical data and are an ideal bench-mark for tradable exposure to Indian stock futures & their underlying stocks;

• Technidex Stock Futures Indexes take into account the price movement of not only the

current month future but all active futures (current, near & far month contracts) of the

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current month future but all active futures (current, near & far month contracts) of the index components, their underlying stocks and simultaneously compute the prevailing Cost

• f Carry & Delivery % of the Index;
• The components of Technidex Indexes are highly representative of activity in stock futures

& their underlying shares having a broad sector representation with large, mid & small cap stocks and having high liquidity in both, futures & equity;

Technidex Stock Futures Indexes

• Technidex Stock Futures Index is an indicator representing the price movement of the

entire universe of active stock futures listed for trading, on a major stock exchange in India, across all expiry dates;

• Technidex Underlying Stock Index simultaneously tracks the price movement of the

underlying stocks of the index constituents. Thus making simultaneous analysis of futures & underlying prices more meaningful;

• Technidex Cost of Carry (CoC) Indicator is a continuous price line to track the prevailing

premium / discount of stock futures across all expiries. Our CoC calculation methodology eliminates abnormal spikes in CoC close to expiry days;

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• Technidex Delivery Indicator tracks the delivery% in the underlying stocks. It indirectly

influences the prevailing premium / discount and Cost of Carry. It also indicates the strength / weakness in the overall market;

Technidex Stock Futures Indexes

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Technidex Cost of Carry & Delivery Indicators

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Our Daily Report: Technidex Indexes Update

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I told you to SELL… See, market has gone down…

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I need an alternate solution…. An analysis which is automated, real- time, is unbiased and has been successfully back-tested over long periods…

Technidex

What We Do: Automated Analysis

• Technidex believes that changes in the fundamentals will be visible through technical
• analysis. Our automated computer models provide a very specialized type of technical
• analysis. Our automated computer models provide a very specialized type of technical

analysis – performing real-time Statistical Analysis on all relevant market data and alert us when the fundamentals change in the form of swings in share prices & volumes. The models have been successfully back-tested for over 10 years, through several bull & bear phases.

• 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

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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

• ver long periods to test the success of the system and its analysis at different periods and in

different market conditions.

Our Analysis Methodology

• 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; index / a commodity / a currency and even a portfolio;

• 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
• f truncated week / month or analysis carried out in the middle of the week / month;
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• 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.

Our Daily Reports – Index Scoreboards

• 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.

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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 system’s success and its analysis at different periods and different market conditions;

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Back-testing S&P CNX Nifty

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Back-testing BSE Sensex

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Back-testing S&P CNX Nifty stocks

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Back-testing CNX Nifty Junior stocks

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Back-testing Nifty Midcap 50 stocks

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What We Do: Strategies

• Technidex will focus on specialized analysis to design Investment & Trading Strategies

while neutralizing the general risks associated with stock market investing; while neutralizing the general risks associated with stock market investing;

• Investment strategies will be designed with assets (equity, commodity, currency) that are

traded in spot & futures segment simultaneously to facilitate hedging;

• Trading strategies will mainly be based on analysis based on our automated statistical

analysis models using futures & options and their underlying assets;

• Portfolios will be created to implement our strategies, based on activities of large

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• Portfolios will be created to implement our strategies, based on activities of large

players, economic indicators & analysis by our proprietary automated models, attempting to

• utperform popular Indian equity benchmarks with hedging;

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

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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.

Contact

Navin Agrawal Navin Agrawal

Mobile: +91 98200 27446 E-mail: Navin@Technidex.in Twitter: @Technidex Website: 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

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1212-B Sheth Heights, Off R C Marg, Chembur East, Mumbai 400074, INDIA