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Technical Analysis and Analysts Forecast: A Comparison

Journal of IMS Group

Volume 13 Issue 2

Published: 2016
Author(s) Name: Vismaya G and Jains P. Chacko | Author(s) Affiliation: Subject Matter Expert, SPI Global Pondicherry, India and Academic Associate, IIM Kozhikode, Kerala
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Abstract

Technical Analysis is a quantitative tool for analysing historical data which is highly used by researchers on evaluation of trends on times. It is hypothetically difficult to prove the future outcome using the statistical tools yet predictions play a vital role in expecting probable results. This paper enumerates to identify that as to what extent technical tools could be reliable and adaptive for predicting the future outcomes. The sample was defined selectively and framed on the basis of suggested clients by Geojit BNP Paribas Financial Services Ltd. The data has been derived from 20 corporates of different business operations. Technical indicators were used to evaluate the best fit of suggestions provided by the concern on terms of investments in securities. It has been found that the suggestions provided by the concern is satisfactory except 5 corporates. Further, the study reveals that single technical indicator does not suffice to predict the forthcoming trends.

Keywords: Forecast, Technical Indicators, Technical Analysis, Trends.

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