ANALYZING PRICE PATTERNS: A TECHNICAL PERSPECTIVE ON STOCK INDEX MOVEMENTS

Abstract

This study examines stock index movements using technical analysis, focusing on major Indian indices such as the Nifty 50 and BSE Sensex. Technical analysis is widely used in financial markets to interpret price behavior, identify trends, and generate trading signals based on historical data. The research applies key indicators including Moving Averages, Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD) to analyze market trends and investor sentiment. The study is based on secondary data collected from reliable sources such as the National Stock Exchange and Bombay Stock Exchange, covering the period from April 2024 to March 2025. The analysis reveals that both indices experienced phases of strong bullish growth followed by corrections and consolidation, indicating the dynamic nature of market movements. Moving averages helped in identifying overall trend direction, while other indicators supported the detection of momentum changes and potential entry and exit points. The findings suggest that technical analysis is an effective tool for understanding market behavior and improving investment decision-making. Conducted under the guidance of Steel City Securities Limited, this study also highlights the practical application of technical tools in real-time trading environments and emphasizes their importance in risk management and strategy formulation for investors and financial analysts.