A Case Study of Technical Indicators with Reference to Nifty

Abstract

The investors now-a-days have numerous alternatives for investment, the most alluring one among them being the stock market. It is considered as one of the most profitable investments in a very short period. In spite of very good yield, investment in the stock markets carries risk on the flip side. There are people who made massive returns in the stock market in a few days, and on the other hand there are many people who went to dust because of stock crash. Stock markets allure investors from one side and alarm investors on the other side. Hence the investors are supposed to be very cautious when they are employing their funds in stock. Many enthusiastic economists put their hand in getting some sort of prediction over the stock markets. Eugune Fama, Charles H. Dow, and Ralph Elliot have contributed a lot to the analysis of stock market performance. They have developed different kinds of patterns, tools and theories, which are relevant in the analysis of stock markets. Fundamental analysts analyse the economy, the industry and the company aspects, while the efficient market theory analyses the flow of information in the market. Technical analysis takes care of the psychological factors while undertaking a market analysis. The present study is an application of technical indicators on Nifty movement in the year 2015.