Trading through technical analysis: an empirical study from Indian stock market

Technical analysis is an art or science of planting the stock information like price movements, trading volume and market scenario in the form of charts for the purpose of forecasting the future price trends. It can aid the investors to anticipate what is ‘possible’ to happen to prices over the short-run time. And also helps in understanding the intrinsic value of shares and knowing whether the scripts are undervalued or over valued by scrutinizing the turning points of the market. This research study attempts to apply technical analysis tool s& techniques on selective scripts to assist precise investment decision in Indian equity/stock market. This analytical study is purely based on secondary data which had been collected from National Stock Exchange (NSE) website, journals and magazines. For the purpose of analysis Moving Average Convergence Divergence (MACD) technique is used to identify the scripts are technically strong or not. It facilitates investors’ to recognize the current trend and risks associated with the scrip at par with the market. This paper aims at carrying out Technical analysis of the securities of selected companies and to assist investment decisions in the Indian stock market. And technical analysis provides unbiased solutions in a biased world.