How Useful is Technical Analysis in Predicting Future Stock Trends

Gurukul Business Review, Vol. 7, Spring 2011

24 Pages Posted: 15 May 2011 Last revised: 7 Jul 2011

See all articles by Gagan Deep Sharma

Gagan Deep Sharma

Guru Gobind Singh Indraprastha (GGSIP) University

Mandeep Mahendru

Gian Jyoti Institute of Management & Technology

Sanjeet Singh

UCRD, Chandigarh University; Chandigarh University

Date Written: May 13, 2011

Abstract

The study builds on the literature already available on financial data of the companies in India. The study tests out the usefulness of the technical analysis in predicting the future market trends. The study takes 15 companies as recommended by the analysts in the smart investor of the business standard newspaper for the month of January 2010. We took their current price on the recommended day and the target price given by the analysts on the recommended day and have further taken the highest and the lowest months in the following two months that is January and February and see the recommendations given by the analysts to the investors to buy or to sell the securities actually comes out to be profitable or not. We use mean, regression and t-test to prove the results.

Keywords: Technical analysis, Future market, T-test, Securities

Suggested Citation

Sharma, Gagan Deep and Mahendru, Mandeep and Singh, Sanjeet, How Useful is Technical Analysis in Predicting Future Stock Trends (May 13, 2011). Gurukul Business Review, Vol. 7, Spring 2011, Available at SSRN: https://ssrn.com/abstract=1840666

Gagan Deep Sharma (Contact Author)

Guru Gobind Singh Indraprastha (GGSIP) University ( email )

Sector 16 C,
Dwarka
Delhi, Delhi 110078
India

Mandeep Mahendru

Gian Jyoti Institute of Management & Technology ( email )

Phase - II
Mohali, Punjab
India

Sanjeet Singh

UCRD, Chandigarh University ( email )

National Highway 95
Punjab
Mohali, IN Punjab 140413
India

Chandigarh University ( email )

Gharuan
Mohali
Mohali, Punjab 140413
India

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