Technical Analysis on Selected Stocks of Indian Banking Sector

Technical Analysis is a basic tool used widely by investors to understand the intrinsic value of shares as well as to know whether it is undervalued or overvalued in the stock market. Investors can understand the major turning points of the stock market through various indicators. The tools of technical analysis will help the investors in their decision making. Most of the investors in India are risk averse investors. Even while investing in equities, they prefer to invest in very safer securities like banking industries. This study is an attempt to understand the market behavior of selected securities in baking sector and to interpret the investors whether to buy, sell or hold the securities. The objective of this project will give us a clear picture about the current trend and risk involved with the selected scrip on par with the market. This study completely depends on the secondary data available in various websites. The technical tools used for the analysis are Beta, Relative Strength Index and Simple Moving Average to understand whether the scrip is technically strong or weak.