Title: Technical analysis and National Stock Exchange of India: testing the RSI rule using CNX Nifty index

Authors: Esha Jain

Addresses: Finance Faculty, The NorthCap University, Gurgaon, NCR, India

Abstract: Technical analysis is just a strategy for seeing if it worth purchasing or offering a stock. This review can be made on the premise of information that is produced through the activities of the general population in the market. Technical analysis attempts to quantify the aggregate mind of the speculators which is led by covetousness and dread. The essential starting point under which specialised investigation works is the investigation of interest and supply, past costs and volume in the market and the heading of the value incline thereof later on. This study is significant for investors and traders as it leads to identify the level of price movement that further helps in understanding buying and selling situations in the market by identifying support and resistance levels. The results of the study show that the RSI test is reliable for any investor while trading in stock market.

Keywords: CNX Nifty index; relative strength index; stock market; technical analysis; India.

DOI: 10.1504/AAJFA.2019.102991

Afro-Asian Journal of Finance and Accounting, 2019 Vol.9 No.4, pp.406 - 419

Received: 17 Aug 2017
Accepted: 12 May 2018
Published online: 14 Oct 2019 *

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