"A STUDY ON TECHNICAL ANALYSIS OF S&P CNX NIFTY INDEX COMPANIES"

Abstract

In the present days of financial markets, investment activity has become an art as well as science. Analysis of investment options always looks into the maximum returns with minimum risk. A number of factors, both internal and external to the business units can cause changes in the returns of the securities. So study of these factors and their impact on security returns generated considerable interest to all the stakeholders of the capital market. Time is the most important factor to be considered for making an investment decision. It doesn’t mean timing the market, but time in the market. Prices of shares will fall or rise as time varies. The success of an investment activity depends upon the knowledge and ability of investors to invest the right amount, in the right type of investment and at the right time. With the lure of earning extraordinary returns in a short period of time, people at large get mesmerized at attractive technical calls. Teams of experts, technical analysts, brokers, research houses put out series of such recommendations on almost all stocks in all market situations. Transactions on the basis of such calls might result in handsome profit or sometimes such transactions might be seemed as resulted into losses and payment of brokerage. This creates a need to study the transactions which are based on such calls. Consequently, as per the need of studying the transactions based on technical calls, title of the topic is framed, “A Study on Technical Analysis of S & P CNX Nifty Index Companies”.