How Useful is Technical Analysis in Predicting Future Stock Trends

Abstract

The study builds on the literature already available on financial data of the companies in India. The study is conducted to test out the usefulness of the technical analysis in predicting the future market trends therefore I have taken the 15 companies as recommended by the analysts in the smart investor of the business standard newspaper for the month of January. I have taken their current price on the recommended day and the target price given by the analysts on the recommended day and then further taken the highest and the lowest months in the following two months that is January and February and see the recommendations given by the analysts to the investors to buy or to sell the securities is actually comes out to be true or not. I have used mean., regression and t- tailed test to prove the results.