AN ANALYTICAL STUDY ON STOCK PRICE BEHAVIOUR USING TECHNICAL ANALYSIS: EVIDENCE FROM SELECTED SECTORS IN INDIA (2023–2025)

Abstract

This research paper investigates the behavior of stock prices across three major sectors of the Indian economy pharmaceuticals, oil and energy, and banking using the tools of technical analysis. With the rise of algorithmic trading, the integration of predictive analytics and behavioral finance has transformed how investors assess risk and opportunity. The study employs simulated monthly data from 2023 to 2025 for selected companies, including Dr. Reddy’s Laboratories, Sun Pharma, ONGC, Indian Oil Corporation, HDFC Bank, and ICICI Bank. Technical indicators such as Simple Moving Average (SMA), Beta, and Money Flow Index (MFI) are applied to identify market trends, volatility, and liquidity patterns. The findings reveal that pharmaceutical stocks demonstrate stable upward trends with lower volatility, oil stocks reflect sensitivity to global commodity prices, and banking stocks show cyclical movements influenced by policy rates and inflationary trends. This analysis underscores the significance of technical indicators as strategic tools for short-term trading and risk-adjusted investment decisions. It contributes to the growing literature on technical analysis in emerging markets, demonstrating how sectoral interdependencies can guide investor sentiment and capital allocation.