The development of kinematic model of hand can play a vital role in hand gesture recognition and Human Computer Interaction (HCI) applications. This paper proposes an algorithm for finger identification and joints localization, thus generating the kinematic model of human hand by means of image processing techniques. Skin tone analysis and background subtraction is carried out for hand detection in the workspace. Geometric features of hand are used for hand identification (left or right), finger identification and joints localization. Proposed algorithm is tested for diverse hand poses and remarkable results are produced. Algorithm not only generates the kinematic model for the different orientations of the hand but also have very low computational cost.