A Technical View on Speculative Approach of Price Behaviour of Select Bank Scripts in Bombay Stock Exchange (BSE): An Empirical Study

Stock market in India has witnessed a radical change over the last decade. The reforms initiated by SEBI have made the investors to feel free in investing their money in the stock market. The primary notion of investment in the stock market is to earn superior return in short term. Since bullish & bearish trends are like two sides of a coin in the stock market, the investors tend to buy and sell the securities according to the trends. But finding the trend is not that much of easy. In order to identify the trend the concept of technical analysis has been emerged. Technical analysis is based on the belief that the history repeats itself, which means price patterns and trade volume occur again and again over a period of time. This repetition of price and volume pattern helps an investor to predict the near future price movements. Though fundamental analysis is a part of security evaluation, the research analyst, stock market professionals and academicians are habituated to use the technical analysis to predict the price behaviour of a script in the stock market. Keeping the above facts in view, an attempt is made in this paper to put forth the application of technical analysis in a practical way to identify the trends of the selected stocks of Indian banking sector in Bombay Stock Exchange (BSE) by applying the oscillators like MACD, ROC and RSI