IDEAS home Printed from https://ideas.repec.org/h/spr/spbchp/978-81-322-1127-3_4.html
   My bibliography  Save this book chapter

Investigation into Optimal Trading Rules in Indian Stock Market

In: Momentum Trading on the Indian Stock Market

Author

Listed:
  • Gagari Chakrabarti

    (Presidency University)

  • Chitrakalpa Sen

    (Auro University)

Abstract

This chapter deals with momentum trading and possibility of a profitable trading strategy in the Indian stock market. It does so by examining the historical moving averages of the indexes. According to the trading rule, an investor should buy when price is above some moving average of historical prices and sell when price falls below some moving average. The study considers several moving averages, short run, medium run, and long run, and explores whether the general buy and sell strategies fare better than the holding strategy based on the moving average. Existence of a momentum strategy would reaffirm the doubt that the Indian stock market is not efficient. It will put a question mark to the invincibility of the market, as suggested by the efficient market hypothesis.

Suggested Citation

  • Gagari Chakrabarti & Chitrakalpa Sen, 2013. "Investigation into Optimal Trading Rules in Indian Stock Market," SpringerBriefs in Economics, in: Momentum Trading on the Indian Stock Market, edition 127, chapter 0, pages 69-110, Springer.
    • Handle: RePEc:spr:spbchp:978-81-322-1127-3_4
    DOI: 10.1007/978-81-322-1127-3_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:spbchp:978-81-322-1127-3_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.