SHARE PRICE MOVEMENT THROUGH TECHNICAL ANALYSIS WITH SPECIAL REFERENCE TO INFORMATION TECHNOLOGY (IT) COMPANIES

Dr.R.MALINI

Volume : VIII, Issue : I, January - 2019

SHARE PRICE MOVEMENT THROUGH TECHNICAL ANALYSIS WITH SPECIAL REFERENCE TO INFORMATION TECHNOLOGY (IT) COMPANIES

Dr. R. Malini

Abstract :

Technical analysis is based on analyzing current demand-supply of commodities, stocks, indices, futures or any tradable instrument. It is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. It helps in understanding the intrinsic value of shares and knowing whether the shares are undervalued or overvalued. Through technical indicators, investors can analyze the short-term price movement of the stock, the most important market turning points and project the price movement. The Information technology (IT) sector has grown much faster globally. So, this study made an attempt to analysing the price movements of top five Information Technology companies (i.e.: Tata Consultancy Service, Infosys Limited, Wipro Limited, Hindustan Computers Limited and Cognizant Technology Solution). Secondary data were used for the purpose of technical analysis (i.e.: the daily share price movements of the selected top five Information Technology (IT) sector) in National Stock Exchange. This study covers a period of six months from 1st July 2017 to 31st December 2017.The major tools used in this study are Moving Average (MA), Rate of Change (ROC) and Relative Strength Index (RSI). Finally this study concludes that the investors who are willing to invest their investment in Information Technology (IT) Sector, the top performers are Tata Consultancy Services and Infosys Limited and also this study strongly suggests the investor, technical analysis was highly essential for deciding the suitable stock.