Download or read book Momentum Trading on the Indian Stock Market written by Gagari Chakrabarti and published by Springer Science & Business Media. This book was released on 2013-03-27 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study is an exploration of the Indian stock market, focusing on the possible presence of momentum trading. One thing, however, should be noted. While it is true that momentum trading, which tends to generate speculative bubbles, may result in a financial market crash, its nature in contrast might depend on the nature of the economy itself. The study, while exploring the presence and nature of momentum trading on the Indian stock market in recent years, seeks to relate it to significant structural breaks in the Indian or global economy. To be precise, it outlines a potential correlation between the instability in the stock market and the speculative trading on the market, exploring the question of whether it is human psychology that drives financial markets. In the process, the choice of a significant structural break has been obvious: the global financial meltdown of 2007-2008 – a crisis that has often been referred to as the worst ever since the crash of 1929. While analyzing the nature of momentum trading on the Indian stock market with regard to the financial crisis of 2007-08, the study takes into account two major representatives of the market, the BSE (Bombay Stock Index) and NSE (National Stock Index), for the period 2005 to 2012. This study seeks to answer a few important questions. First of all, it tries to unveil the underlying structure of the market. In doing so, it examines the following issues: (i) What was the latent structure of the Indian stock market leading up to the crisis of 2007-08? Does the structure offer insights into designing profitable trading strategies? (ii) Is it possible to construct a profitable portfolio on the Indian stock market? (iii) Is there any profitable trading strategy on the Indian stock market? While exploring these issues, the study delves deeper, breaking the whole period down into two sub-periods, before the crisis of 2008 and after the crisis. The purpose of this division is to determine whether there has been any discernible change in the market structure since the shock.

Download or read book Momentum in Stock Market written by Sahil Jain and published by . This book was released on 2017 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is about the momentum based trading strategy in Indian Stock Market. We have created winner and looser portfolio on the basis of actual return and investigated for reversal in the stock market. We have also investigated the optimum formation period and holding period in the stock market in India.

Download or read book An Empirical Investigation Into Volume Based Price Momentum Strategy in Indian Stock Market written by Martin Bernard and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the profitability of volume-based price momentum strategies for equities included in BSE-100 index from 2004 to 2012. It is an attempt to investigate whether there exist any relationship between momentum profits and historical trading volume in the immediate horizon. To measure the effectiveness of volume-based price momentum strategies in the immediate horizon we adopted the methodology used by Lee and Swaminathan (2000) and Naughton et al. (2008). The performance of Volume-based winners and losers portfolios were analysed in Indian context for eight years. Our results show that historical trading volume has no role in boosting the magnitude of momentum return. However, the analysis of the results indicates that winners portfolios have higher turnover than their counterparts. Finally, by testing the relationship between two informational apparatus used by technicians, i.e. volume and price, we could not find any substantive evidence of strong relationship between them, there by subscribing to the weak form of efficiency of Indian stock market.

Download or read book Long Term Price Momentum Early and Late Strategies in Indian Market Stock Return written by Martin Bernard and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent days price momentum has gained considerable attention among the financial market researchers, as it deals with simple trading strategies offering abnormal returns based on historical market informations. However there is scarcity of works in this line of research in emerging markets. This paper investigates the long horizon relationship between historical trading volume and momentum return in Indian stock market, which is one of the most promising emerging markets. We also investigate the profitability of early-stage and late-stage strategies in Indian context. Our sample contains the blue-chip stocks represented in BSE-100 index over a period of eight years starting from August 2004 to July 2012. The study created double-sorted portfolios for measuring the volume based price momentum returns by applying Lee and Swaminathan (2000) methodology, which necessitated measuring the differences in the momentum return of low and high trading volume stocks. Our results suggest that there is no role for historical trading volume in boosting the magnitude of momentum profits over long horizon portfolios. Our findings also shows that neither long-term price momentum nor long-term price reversal strategy are pronounced in early-stage and late-stage respectively.

Download or read book Momentum and Contrarian Strategies in the Indian Stock Market An Evaluative Study written by Asha E. Thomas and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stock prices are generally governed by rational inputs and irrationality in the market can cause only daily, weekly and short run fluctuations. While irrationality takes prices away from its intrinsic value, rationality brings it back. Contrarian investment strategy is followed under the assumption that typical herd behaviour leads to overreaction to information and hence stocks which have gone up recently is overvalued or vice versa. By taking the opposite position, contrarian expects profit when the market turns rational. On the other hand, momentum investment strategy is followed by moving along with the tide. Here it is found useful to follow the crowd and be a part of it. But if market is efficient in pricing, then both these strategies will fail.The present study is conducted to test the effectiveness of these two investment strategies in the Indian stock market. As a first step to this, the researcher tested the market efficiency of Indian stock market. Indian Market is found to be Weak-form inefficient and Strong form efficient. However, the study found out that momentum and contrarian strategies could not deliver any superior returns to Indian investors during the study period. Separate analysis was carried out by the researcher to test the efficiency o these tools, when Indian markets were severely hit by global financial crisis. Interdependency of Indian Stock Market with other leading emerging markets was also part of the study. The results confirmed the evidence of significant correlation with these markets. The study is expected to help the Indian investors while taking various investment decisions.

Download or read book How to Make Profit in Share Market written by Mahesh Chandra Kaushik and published by Prabhat Prakashan. This book was released on 2020-01-01 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: About the book
This book is an excellent work of the famous financial advisor Mahesh Chandra Kaushik. It focuses on retail investors and provides useful suggestions for their investments. The writer has made it easy and an interesting to read, avoiding use of technical jargon. After reading this book, you will understand why some people always make money in share market while some people always lose money. If you read this book step-by-step and follow the suggestions provided herein you will never lose money in share market. After reading this book, you will know how an initial investment of 100 dollars in share market can become 7, 18, 03, 722 dollars in 20 years. Please stop paying money for share market tips. Just read this book—you will yourself learn the tips for winning in the share market and start earning handsome profits.

Download or read book Weekly Momentum Study on Indian Stock Markets written by Uttam B. Sapate and published by . This book was released on 2017 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Efficient Market Hypothesis (EMH) has been one of the dominant topics in the financial research literature. The main purpose of this study is to explore the existence of return continuation in the Indian Stock Markets, thus investigating its efficiency at the weak form level (Fama,1970). Momentum strategies which buy stocks that have performed well in the past and sell stocks that have poor performances previously - generate significant positive returns. The weekly momentum strategies can be executed by the investor to generate significant profits. The explanation of momentum remains challenge in literature. The behavioral factors may account for the momentum phenomena.

Download or read book Catching Waves written by Harvey McDaniel and published by Independently Published. This book was released on 2020-05 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Live by these trading rules, and you'll never have to worry about losing all your money to the stocks... Are you seeking an additional channel of income, one that doesn't require going through a tedious hiring process or have fixed working hours? Are you interested in investing in the stock market, yet as soon as you look into the stock trading details from CNBC or the business section of the news, you find yourself overwhelmed by the numbers, graphs, and trading jargon? Are you familiar with the ins and outs of the stock market, yet haven't been experiencing much luck in the profits department? Investing in the stock market as a way to increase your earnings has always been a popular go-to method for many around the world, especially in the United States. According to Lexington Law, "Over a typical 12-month period, the odds of making money in stocks rise to roughly 75 percent," which, in the long-run, can really add up. The catch, however, is that the longer you wait to begin with trading, the more your opportunities diminish. With that being said, all it takes is for you to learn the ropes of the market, and you'll be controlling your profits in no time. In Catching Waves, here is just a fraction of what you will discover: A simple, beginner-friendly approach to investing in momentum stocks, providing straight-forward and proven trading strategies you can use to your own advantage How to make the market work in your favor, allowing you to grow your current portfolio in the most efficient way possible The best plans of action to take in trading, and how to utilize a method according to what type of trader you are to ensure long-term success A breakdown of stock market basics, building up your knowledge on investing and paving the path for you to become a stock trend expert The buy and sell signals to look out for that will increase your chances of gaining significant profits, as well as how to find the top-paying stocks Step-by-step guidance on how to ride the stock market waves, putting your theoretical knowledge into practice The 10 trading rules to live by that will turn you into a stock market guru in a matter of days, ensuring that you stay at the top of your investment game And much more. If you're afraid of the high risk everyone associates with stock trading, yet you still hear that voice in the back of your mind saying, "Try it," then do yourself the favor of taking the time to become properly informed on the subject. This way, you can decide once and for all if it's something you want to pursue in depth, and you will also be more knowledgeable on how to reduce potential risks. Trading isn't only for finance or economy experts -- anyone can take it on as either a side hobby to earn a little extra cash, or even as a way to save up for retirement. No matter your age or skill level, as long as you're interested and motivated to learn the ways of the market, you will be able to grasp the concepts and be on the road toward success. If 24-year-old Tim Grittani could take a chance and invest his life savings of $1,500, only to have it turn into $1 million after just three years, then so can you. It doesn't have to be a large sum -- you can start with any amount you're comfortable with, and then adjust however you see fit. Jump onto the trading wagon fast, or else you may just miss out on the opportunity of a lifetime... If you want to unveil the wonders of stock trading and discover how it can help you earn money to finance your future, then scroll up and click the "Add to Cart" button right now.

Download or read book A Study of Contrarian and Momentum Profits in Indian Stock Market written by Raj Dhankar and published by . This book was released on 2016 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the Indian stock market within the framework of momentum and contrarian strategies, using the monthly-adjusted prices of all the stocks listed on National Stock exchange (NSE) having complete data for the sample period January 1997 to March 2013. The findings reveal the presence of statistically significant small term momentum and long term overreaction effect in Indian stock market. Further, the paper also evaluates the predictions of various behavioural models that propose that momentum profits eventually reversed in long term. The evidence of the paper provides support for the behavioural explanation of momentum and overreaction effect in Indian stock market.

Download or read book Indian Stock Market for Beginners written by Angshuman Adhikari and published by Angshuman Adhikari. This book was released on 2021-05-02 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Indian Stock Market for Beginners is for people who are new and willing to enter stock markets. This book will explain the overall scenario of the stock markets with simplified terminologies and basic concepts. If you are looking to enter the stock markets but don't know where to start than this book is definitely for you. It will help the beginner as a reference guide for Indian and global stock markets. Specifically it will help you in:- 1. Basic Terms and working model of stock market 2. Various products and services associated with stock markets 3. kick starting and selecting a broker 4. How to make your first trade 5. Additional mental mastering techniques for holistic development of an investor 6. More clarity in topics with illustrated examples 7. Insight of a trader/investor with 10+ years of experience

Download or read book Seasonality in Momentum Profits written by Supriya Maheshwari and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper investigates Indian momentum profitability along with its performance stability round the year using the stock price data from National Stock Exchange (NSE). Results show evidence in favor of momentum profitability over the sample period from 1997 to 2013. Moreover, the momentum performance is not specific to any particular month suggesting no influence of calendar effects on momentum anomaly in the Indian stock market. Though, momentum strategies performed differently in different calendar months, with particularly strong negative returns in the month of May. However, no statistically significant difference was observed among the mean monthly momentum returns across calendar months. Contrary to the US market findings, no January or similar April seasonality is observed in the Indian momentum profits suggesting some unique characteristics of Indian momentum profitability. In nutshell, the results from the study suggest support in favor of practical implementation of momentum strategies throughout the year in the Indian stock market.

Download or read book Momentum and Overreaction Effect a Study of Indian Stock Market written by Maheshwari Supriya and published by Independent Author. This book was released on 2022-12-03 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The search and investigation of stock market anomalies have always been a popular area of research among the academicians. The Efficient Market Hypothesis (EMH) that was once very well accepted and adored the most dominant place in the traditional finance theories, somehow, in recent times, the validity of the same has been questioned. The evidence of various stock market anomalies that document excess profit making opportunities resulted in critical re-examination of EMH. Probably the two most famous anomalies that have attracted the interest of both academicians and practitioners are the ones that are based on stocks return continuation (known as momentum effect) and long-term stock returns reversal (known as overreaction effect). Ever since DeBondt and Thaler (1985) and Jegadeesh and Titman (1993) drew attention towards the overreaction and momentum effect, these have remained as some of the most hotly debated anomalies in the academic literature. The investment strategies based on such continuation and long-term return reversal effects are commonly known as momentum and contrarian strategies, respectively. Both momentum and long-term reversal effect were found to persist in a majority of the out-of-sample tests using data from the U.S. as well as other developed stock markets across different time periods. Initially, most of the early investigations were based on the U.S. stock market, but gradually the investigation for the same spread out internationally to other developed stock markets. As a result, there exists a vast majority of literature supporting momentum and contrarian profitability in majority of the developed markets.

Download or read book Green Investing written by Gagari Chakrabarti and published by Springer. This book was released on 2014-08-28 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book seeks to answer the essential question of the investment-worthiness of green instruments. It is evident that investing in green and energy-efficient firms will be the most profitable choice for wise investors in the years to come. The reconciliation of the social choice for green technology and investors’ choice for gray technology will be automatically achieved once green firms become more profitable than gray ones, in the Indian context. As there has been very little research done in this area, especially in the Indian context, this book addresses that gap. In order to do so, it follows the development of five different portfolios consisting of 100% green, 75% green-25% gray, 50% green-50% gray, 25% green-75% gray and 100% gray stocks, and attempts to answer questions such as: Do green portfolios entail less relative own-risk as compared to their gray counterparts? How effectively do green portfolios avoid market risk? Are green portfolios inherently more stable? Do green portfolios have a higher probability of surviving a financial crisis? Is the performance of green portfolios backed by their fundamentals? Is there any particular technical trading strategy that can ensure a consistently above-average return from these portfolios?

Download or read book Market Momentum written by Stephen Satchell and published by John Wiley & Sons. This book was released on 2020-12-02 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: A one-of-a-kind reference guide covering the behavioral and statistical explanations for market momentum and the implementation of momentum trading strategies Market Momentum: Theory and Practice is a thorough, how-to reference guide for a full range of financial professionals and students. It examines the behavioral and statistical causes of market momentum while also exploring the practical side of implementing related strategies. The phenomenon of momentum in finance occurs when past high returns are followed by subsequent high returns, and past low returns are followed by subsequent low returns. Market Momentum provides a detailed introduction to the financial topic, while examining existing literature. Recent academic and practitioner research is included, offering a more up-to-date perspective. What type of book is Market Momentum and how does it serve a range of readers’ interests and needs? A holistic market momentum guide for industry professionals, asset managers, risk managers, firm managers, plus hedge fund and commodity trading advisors Advanced text to help graduate students in finance, economics, and mathematics further develop their funds management skills Useful resource for financial practitioners who want to implement momentum trading strategies Reference book providing behavioral and statistical explanations for market momentum Due to claims that the phenomenon of momentum goes against the Efficient Markets Hypothesis, behavioral economists have studied the topic in-depth. However, many books published on the subject are written to provide advice on how to make money. In contrast, Market Momentum offers a comprehensive approach to the topic, which makes it a valuable resource for both investment professionals and higher-level finance students. The contributors address momentum theory and practice, while also offering trading strategies that practitioners can study.

Download or read book Stock Trading with the Momentum System written by Mark Crisp and published by . This book was released on 2009-12-03 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This pocket-sized book gives you the inside story of a hot new stock technique called Momentum trading. This book is designed to be used while you surf and check out your portfolio. It is small, light and ideal for trading on the go or for use anywhere as reference. Momentum gives you custom filters to reveal high-profit stocks with huge financial potential. This book goes hand-in-hand with the video to provide high-quality and profitable information. This pocket guide gives you an excellent glimpse into the Momentum system that made 1.4 million dollars for the author its first year. The bottomline is that Momentum works.

Download or read book Momentum and Contrarian Profitability written by Supriya Maheshwari and published by . This book was released on 2016 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study explored the effectiveness of momentum and long-term contrarian strategy in the Indian stock market using data from National Stock Exchange (NSE). The study further examined the similarities and difference in momentum and long-term contrarian profitability using multiple return computation method. The results from the study provide support in favor of both momentum and long-term contrarian strategy in the Indian stock market. The strong momentum and contrarian profits in the Indian stock market are not explained by biases and errors in return computation method as argued in International literature. Such results provide support in favor of momentum and long-term contrarian profitability in the Indian stock market. Earlier studies in the Indian context were primarily focused on testing momentum and contrarian profitability. The study enhances the current literature by empirically showing that such mispricing in the Indian stock market is not an outcome of faulty methodology.

Download or read book Momentum Stock Selection written by Jacob Bernstein and published by McGraw-Hill Companies. This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: After a discussion that defines market timing and market momentum, the author details the using of momentum to trade effectively. Using examples and illustrations to emphasize key points, he explores such issues as accumulation and distribution patterns and buy and sell signals based on momentum.