Volume : 4, Issue : 7, July - 2015

A STUDY ON ANALYSIS OF EQUITY SHARE PRICE MOVEMENTS OF SELECTED BANKING SCRIP�S

A. Arun Prakash, P. Shanmugha Priya

Abstract :

<p>Research Issue: The market price of the shares of a company tends to change according to internal as well as external factors. The stock market indices may have a greater impact on the share prices which determine the volatility or otherwise of the shares. The present study has been undertaken to analyze the share price movement of bank industry as the rise in investment values throughout India which leads to revenue generation for the banks. Research Objective: 1. To analyze and understand the share price behavior of the selected banking scrip&rsquo;s. 2. To study how fluctuations in stock price influence the buy or sell decisions. 3. To analyze the performance of bank nifty and nifty. 4. To predict the trend in the price movements of the selected banking scrip&rsquo;s based on the bank nifty. Research Tools: Simple Moving Average (SMA), Relative Strength Index (RSI), Money Flow Index (MFI) and Linear Regression Findings: Based on the technical analysis the researcher identifies that there is a crossover of SMA 20 and 50 the share price of Oriental Bank of Commerce, SBI, ICICI Bank, HDFC Bank during 2014 which continues in an upward direction indicating that the market is going to be in a bullish trend. This is also conforming by RSI and MFI index movement. Practical Implications: Through this research the researcher advise to invest to the investors in their money on the following Banking Scrip&rsquo;s, OBC, SBI, ICICI and HDFC Banks. Because during 2014 these are all in an upward direction indicating that the market is going to be in a bullish trend.</p>