Technical analysis in I.T sector of Indian equity market- A select study

Technical Analysis is the forecasting future of the financial price movements based on an examination of the stocks past price movements. Technical analysis does not result in absolute predictions about the future with regard to forecasting. In its place, technical analysis can help investors anticipate what is possible to happen to prices over time. Technical analysis is a study of predicting prices of securities for the future. The main aim of technical analysis is to generate returns by charter person decide when to enter and when to exit in the security. It is of the Indian Equity Market relating to factors affecting the supply and demand of stocks. It helps in understanding the intrinsic value of shares and knowing whether the shares are undervalued or overvalued. The stock market indicators would help the investor to identify major market turning points. For the purpose of the present study selected Information Technology companies have been considered, IT Sector respectively. The methods used for the purpose of this study are Simple Moving Average, Rate of Change (ROC) and Relative Strength Index (RSI). The simple moving average method helps in calculating the trend that a particular share had in the year, whether upward or downward, whereas ROC helps in calculating the oversold or undersold regions for any share and RSI talks about the optimum point to buy and sell. This study predicts how far the technical analysis will be useful for the investor to make an investment by using technical analysis.