Effectiveness of Technical Analysis for Selection of Equity Stock from It Sector in Indian Capital Market

Abstract

This research focuses on the stock price movements for ten different companies from IT sector for the financial year 2011-12 using technical analysis in order to find the optimum stocks for investments for the next financial year, i.e., 2012-2013.The Candlestick patterns are used to determine the trend reversal options & the line chart is used to determine the support & resistance levels. The moving average lines, MACD & RSI Indicators are used in order to check their efficiencies & their extent of use in different predictions. The study also suggests on the target points for various stocks & time period required for achieving those targets. It also gives an idea of why certain stocks will not be suitable for investments. The investment pattern will differ according to the stocks considered and the ri.sk appetite of the investor