THE STUDY OF FUTURE PRICES IN EQUITY MARKET : USING TECHNICAL ANALYSIS TOOLS

Abstract

Technical Analysis is a study of the stock market with respect to factors affecting the supply and demand of stocks helps to understand the intrinsic value of shares and to know whether the shares are undervalued or overvalued.

The stock market indicators would help the investor to identify major market turning points. The term "Technical Analysis'' is a general heading for myriad of trading techniques.

Technical analysis attempts to forecast future prices by the study of past prices and a few other related summary statistics about security trading. A technical analyst is always concerned with the direction of price movements.

Any investor or trader must certainly consider technical analysis as a tool whether to buy the stock at a particular point of time though it is fundamentally strong.

This is a significant technical analysis of selected company shares which helps to understand the price behaviour of these, the signals given by them and the major turning points of the market price.

The objective of this research project is to make a study on the technical analysis of selected stocks and interpret whether to buy or sell them by using techniques.

This in turn would help investors to identify the current trend and risks involved with the scrip on par with market. This study is purely based on data provided on stocks listed in National Stock Exchange (NSE),Bombay Stock Exchange (BSE). For the purpose of analysis, techniques like Trend Analysis, Simple Moving average ,Exponential Moving Average and some other famous indicators are used and the strength of stock is inferred.