Investment Decision Using Technical Analysis: A Study on Selected Stocks in Indian Stock Market

  • R Logambal Assistant Professor, Department of Management Studies, Gobi Arts and Science College (Autonomous), Coimbatore, Tamil Nadu, India
  • G Kanagasabapathy Research Scholar, Department of Management Studies, Gobi Arts and Science College (Autonomous), Coimbatore, Tamil Nadu, India
Keywords: Relative Strength Index, MACD, Simple Moving Average

Abstract

Technical analysis is a methodology in financial markets that asserts its capability to predict future stock directions by scrutinizing historical market data, patterns in price movements, and correlations between price and volume. Traders widely utilize these data in their decision- making processes. The approach also takes into account the real-time behavior of market prices and volumes, operating under the assumption that these are the most influential factors in determining a stock’s or market’s future trajectory. Investors often grapple with decisions regarding which stocks to buy, the optimal purchase quantities, and when to execute selling or holding actions to maximize profits in the trading period. This research delves into these
considerations, offering insights for short-term traders by analyzing the stock price trends of twelve companies across three distinct sectors over the 2020-2022 period.

Published
2024-03-01
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How to Cite
Logambal, R., & Kanagasabapathy, G. (2024). Investment Decision Using Technical Analysis: A Study on Selected Stocks in Indian Stock Market. Shanlax International Journal of Economics, 12(2), 62-68. https://doi.org/10.34293/economics.v12i2.7059
Section
Articles