Equity Research Using Technical Analysis

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VII, July 2019 | ISSN 2454–6186

Equity Research Using Technical Analysis

Varshini Venu¹, Dr. Bhavya Vikas², Charithra C M^3
1MBA 2^nd year, BNM Institute of Technology, Bangalore, Karnataka, India
²Associate Professor, BNM Institute of Technology, Bangalore, Karnataka, India
³Assistant Professor, BNM Institute of Technology, Bangalore, Karnataka, India

Abstract:- Technical analysis is a financial market technique that claim the ability to forecast the future direction of stock through the study past market data, price movement patterns, price and volume correlation; these data are widely used by traders. Technical analysis also considers the actual price and volume behaviour of the market or instruments on the assumption that price and volume are two most relevant factors in determining the future direction and behaviour of a particular stock or market. The investor will have the question in mind that in trading period which stock should be buy, how much to be buy and when to sell or to hold for future date to gain the maximum profit. So this research helps in making appropriate discussion for short term traders. This study aims to analyse the trends of stock price movement of twelve companies from three different sectors during the year 2018-19.

Key Words: Technical analysis, relative strength index, rate of change, simple moving average

I. INTRODUCTION

The method of studying is to analyse securities and investment decision will follows two categories: Fundamental analysis and technical analysis. In fundamental analysis it analysis the company value theoretically for the purpose of long term investment and also analysis the economy, industry and company based information in detail. But in technical analysis it will only studies the demand and supply in a market. The main aim is study the technical indicator by was various database. It focuses on short term investment as intraday trading where the trading should be done within a day. Technical analysis will use various tool to predict market activity and by the support of chart it will represent the data to identify the pattern of future activity. Technical analysis will help the investor to evaluate strength and weakness of the securities.

Need of the Study:

This study involves technical analysis method to analyze the stock, with the help of technical tool are simple moving average like 7days and 12days and also ROC, RSI it will help to analysis the day trader and short term investor to make right decision to invest the money in stock which is comparing the price movement with the help of above technique. These tools are used to check daily price movement in stock market.

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