Authors: Priti Rajendra Bhand, Prof. Neelam Patil
Abstract: Equity markets play a significant part in the development process of any economy through capital formation and investment opportunities available for the investors. In order to take the correct investment decisions, investors resort to various means; out of these methods, technical analysis is one of the most favored techniques. This research work aims to study the importance and efficacy of technical analysis in equity market investments. The technique of technical analysis includes studying the past price action and trading patterns in order to predict future prices. In this research study, some of the most common techniques used by investors, including moving averages, relative strength index, MACD, and patterns in charts, have been studied and their impact on investors' decision-making analyzed. Primary data as well as secondary data sources have been used to conduct the study. Primary data has been collected through the help of questionnaires while secondary data has been sourced through the financial statements, articles from financial journals as well as stock markets data bases. The results obtained show that a good percentage of investors base their investment decisions on technical indicators, especially in making short term investments. Although technical analysis provides some advantages, its combination with fundamental analysis produces much better results. The study concludes that the application of technical analysis in identifying market trends is helpful in making investment decisions especially in volatile market environment, even though there are some challenges..
DOI: https://doi.org/10.5281/zenodo.20286463
