TECHNICAL ANALYSIS OF BANK SCRIPS UNDER CNX BANK INDEX ON THE BASIS OF ROC

PRESENTED BY NALLATHAMBI.V

CNX
The CNX Nifty index is a free float market capitalisation weighted index. The index was initially calculated on full market capitalisation methodology. From June 26, 2009, the computation was changed to free float methodology. The base period for the CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of National Stock Excitable Market Segment.

The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion. The CNX Nifty Index was developed by Ajay Shah and Susan Thomas. The CNX Nifty currently consists of the following 50 major Indian companies.

TECHNICAL ANALYSIS
Technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis

RATE OF CHANGE
A technical indicator that measures the percentage change between the most recent price and the price "n" periods in the past. The formula for ROC ROC= OP-CP/CP*100

ROC is classed as a price momentum indicator or a velocity indicator because it measures the rate of change or the strength of momentum of change

CNX INDIAN BANK CHARTS

USES OF THE RATE OF CHANGE INDICATOR

The Rate of Change indicator can be used to confirm price moves or detect divergences and can be used as a guide for determining overbought and oversold conditions.

ROC- INDIAN BANK

MOVING AVERAGE
Short term moving average 7 Days Long term moving average 21 days

MOVING AVERAGE OF IB

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