ANALYSIS OF IT COMPANIES USING TOOLS AND TECHNIQUES OF TECHNICAL ANALYSIS

Abstract

Technical analysis in its basic sense is the analysis of the market action through charts to predict future price movements. There are various tools and techniques to perform technical analysis like moving averages, charting techniques, MACD, ROC, RSI, etc. For this research, RSI (Relative Strength Index) indicator will be used to predict future price movements and to determine whether the shares are overbought or not. The samples selected from the NIFTY-IT index based on market capitalization are Infosys Ltd., Tech-Mahindra Ltd. and Wipro Ltd. The objectives of this research are to study the price movement of the shares of selected companies and use RSI indicator to know the momentum of price change and advice the investors in taking investing decisions.