The Effect Of Technical Analysis On Profitability In Secondary Market With Special Reference To Tcs - A Top Income-Based Stock

Abstract

Investors classify the preference of Stocks based on the three categories that is income, growth, and value. Investors based on their understanding and belief use the knowledge to grow their profits more efficiently. This study aims to focus on the income-based category of stock who offer regular and steady income to its investors, usually in the form of dividends, over a period with low exposure to risk are known as Income stocks. These stocks are stable but provide a high dividend yield. This paper tries to apply indicators like Bollinger’s Bond, EMA and Super trend on these stocks and their impact on decision making is identified. Individually these indicators assist in investment decision making process to buy or sell the stock. The effectiveness of any indicator is difficult to measure which can give 100% assurance in decision making. To solve this issue three effective indicators are applied simultaneously for a stock to get meticulous decision on buy or sell a stock at a particular time. To find out the performance of top performing income-based stock TCS is selected. The indicators on combined basis will help in predicting the stock movement. For this study the three indicators selected are Bollinger’s Bond, MACD and Super trend.