Technical Analysis as a Tool to Predict Stock Behaviour - A Study of BSE FMCG Stocks

Abstract

A stock market is a place that decides the liquidity of security by offering trading facilities. The price behavior of stocks reflects the
movements in their respective sector or companies. The technical analysis, as a tool, offers insight into the price movements of these
securities and tries to forecast the future price trends by using various tools like RSI, MACD, EMA, etc. These trends can be for short or
long term. The paper attempts to analyze and forecast the price movements of certain FMCG sector companies which are a part of Sensex
with the help of various technical analysis tools. The paper also attempts to take an insight into the power of these tools to predict stock
prices under various conditions