Determining effectiveness of key technical analysis rules for stocks across various sectors like oil & gas, pharma & bank for the Indian stock market

Abstract

The project work aims to study the effectiveness of rules for technical analysis of selected companies across various stock sectors that are part of the CNX Nifty. It emphasizes how technical analysis outcomes can be of great use to investors when making investment decisions. The appropriate analytical framework can be applied to forecast the selected companies’ stock prices from each sector in scope. The study tries to find the right stock for investment and the justification for the same based on the relevant charts and indicators. Using the technical analysis rules, the study predicts the upward or downward movement of stock prices of selected companies’ stock prices. The descriptive statistical analysis method is used to study the price trend chart of multiple stocks using moving average convergence divergence (MACD) and relative strength index (RSI) charting techniques. The project also uses the simple random sampling method to study samples of price data.