Stock market behavior with special reference to relative strength index (RSI)

Till now various researches have been done on Technical Analysis in Stock Market to know the future trend. All researchers have used different criteria for their research, each having its own merits and demerits. Most of these studies have been done in a very broad prospective. In the present research work attempts is being made to find out the difficulty of prediction which lies in the complexities of modeling human behavior. Even with a lack of consistent prediction methods, there have been some mild successes. The results will be useful for problems of prediction and estimation of the change points and trend direction in the stock prices. Stock market prediction has always had a certain appeal for researchers. The study posited the stock market movements during 2006-10 with the help of RSI and the divergence in the market. The results state that the scrips follow an average buying/selling behavior and the divergence occur very often in the market.