Stock, Forex, Commodities, Options, Futures, Cryptocurrencies
logo-main logo-main
Select category
  • Select category
  • All in One Series
  • Astro Trading
    • Christeen Skinner
    • David Williams
    • Donald A. Bradley
    • Earik Beann
    • Fabio Oreste
    • Henry Weingarten
    • Ian Williams
    • Indrodeep Banerjee
    • Jack Gillen
    • James Mars Langham
    • Jeanne Long
    • L.J. Jensen
    • Louise McWhirter
    • M. G. Bucholtz
    • Myles Wilson Walker
    • Patrick Mikula
    • Raymond A. Merriman
    • Shane Smoleny
    • Tim Bost
  • Commodities, Futures & Options
    • Adam Dunsby
    • Al Sherbin
    • Andrea Roncoroni
    • Arthur Prill
    • Arthur Sklarew
    • Bertram J. Schaeffer
    • Bill Kraft
    • Brian Overby
    • Carley Garner
    • Charles M. Cottle
    • Cynthia A. Kase
    • D.M. Daniel
    • Dan Passarelli
    • David Bennett
    • Dennis A. Chen
    • Ernie Zerenner
    • Euan Sinclair
    • George Jabbour
    • George Kleinman
    • Gianluca Fusai
    • Guy Cohen
    • J. D. Hamon
    • Jack D. Schwager
    • James Bittman
    • Jared Levy
    • Jeff Augen
    • Jess Gaspar
    • Joe Duarte
    • John Eckstein
    • Johnathan Mun
    • Jon Najarian
    • Julius Baer
    • Kenneth H. Shaleen
    • Kenneth R. Trester
    • Kevin M. Kraus
    • L. Dee Belveal
    • Lawrence G. McMillan
    • Lee Lowell
    • Lewis Peter Brandt
    • Louis Phlips
    • Marc Allaire
    • Mark Cummins
    • Mark Etzkorn
    • Mark W. Pickell
    • Markos Katsanos
    • Michael Chupka
    • Philip H. Budwick
    • Richard Lehman
    • Robert Doty
    • Robert F. Wiest
    • Robert Jaeger
    • Ronald C. Spurga
    • Roy W. Longstreet
    • Russell Rhoads
    • Ryan Drake
    • Sarah Mulholland
    • Scott H. Fullman
    • Sheldon Natenberg
    • Tom James
    • Wendy Kirkland
  • Cryptocurrency Books
    • Aaron Wright
    • Ahmed A. Elngar
    • Andreas M. Antonopoulos
    • Bikramaditya Singhal
    • Brian Kelly
    • Chris Dannen
    • Daniel Drescher
    • David Birch
    • David Lee Kuo Chuen
    • David Metcalf
    • Elli Androulaki
    • Finn Brunton
    • Ghassan Karame
    • Hanna Halaburda
    • Imran Bashir
    • Jared Norton
    • Joseph J. Bambara
    • Kariappa Bheemaiah
    • Makoto Nishibe
    • Max Hooper
    • Melanie Swan
    • Mohammed Kayed
    • Pedro Franco
    • Primavera De Filippi
    • Roger Wattenhofer
    • Sandeep Kumar Panda
    • Siraj Raval
    • Steve Patterson
    • Tiana Laurence
    • Valentina Emilia Balas
    • Vikram Dhillon
  • Cycle Trading
    • Brian J. Millard
    • Ed Carlson
    • Edward R. Dewey
    • Frank Barillaro
    • Howard Marks
    • J.M. Hurst
    • Nicholas Rau
    • Richard S. Love
    • Robert P. Baker
    • Steven E. Bolten
    • Walter J Bressert
  • Forex and Stocks Trading
    • A. J. Monte
    • Aaron N. Behle
    • Aaron R. Zalewski
    • Abe Cofnas
    • Adam Grimes
    • Adam Khoo
    • Adam Kritzer
    • Aidan J. McNamara
    • Alan S. Farley
    • Alex Nekritin
    • Alexander Elder
    • Alexander Peace
    • Alistair Blair
    • Álvaro Cartea
    • Andreas F. Clenow
    • Andrew Abraham
    • Andrew Aziz
    • Andrew Coles
    • Ann C. Logue
    • Anne Dolganos Picker
    • Anthony Crescenzi
    • Ari Kiev
    • Ashraf Laidi
    • Ashwani Gujral
    • Barbara Rockefeller
    • Barry Gumm
    • Ben Robson
    • Benjamin Graham
    • Bennett A. McDowell
    • Bernard Baumohl
    • Bill Eykyn
    • Bill Feingold
    • Bill M. Williams
    • Bob Volman
    • Boris Schlossberg
    • Brent Donnelly
    • Brent Penfold
    • Brett N. Steenbarger
    • Brian Dolan
    • Brian Schad
    • Brian Twomey
    • Bruce I. Jacobs
    • Bruce Kamich
    • Bryan Lee
    • Bryan V Post
    • Carolyn Boroden
    • Charles Biderman
    • Chris Cain
    • Chris Lewis
    • Chris Satchwell
    • Clif Droke
    • Clifford Bennett
    • Clifford Pistolese
    • Clive Lambert
    • Clive M. Corcoran
    • Conrad Alvin Lim
    • Constance Brown
    • Courtney Smith
    • Curtis Faith
    • Dan Denning
    • Danny Younes
    • David Borman
    • David G McMillan
    • David H. Weis
    • David Halsey
    • David Hawkins
    • David Keller
    • David Loader
    • David Santschi
    • David Stendahl
    • David Wilson
    • Deron Wagner
    • Don Miller
    • Don Snellgrove
    • Donna McCormick
    • Douglas S. Ehrman
    • Ed Ponsi
    • Edwin L. Watanabe
    • Elaine Knuth
    • Emilio Tomasini
    • Esme Faerber
    • Evelina M. Tainer
    • Felipe Tudela
    • Floyd Upperman
    • Fred K. H. Tam
    • Gareth Burgess
    • Gary Dayton
    • Gatis N. Roze
    • George Pruitt
    • Gerald Appel
    • Gerald Greene
    • Gordon DeRoos
    • Grace Cheng
    • Greg Fisher
    • Greg Michalowski
    • H. Jack Bouroudjian
    • Hank Pruden
    • Harry Boxer
    • Harry D. Schultz
    • Howard B. Bandy
    • Ian Copsey
    • Igor Toshchakov
    • Igor Tulchinsky
    • Ilian Yotov
    • Irene Aldridge
    • Jack Hough
    • Jacob Bernstein
    • Jae K. Shim
    • James Chen
    • James Dicks
    • James L. Bickford
    • Jamie Saettele
    • Jared Martinez
    • Jason Alan Jankovsky
    • Jason Perl
    • Jay M. Meisler
    • Jeff Cooper
    • Jeff Greenblatt
    • Jeffrey Katz
    • Jeffrey Weiss
    • Jeremy J. Siegel
    • Jim Troup
    • Jody Samuels
    • Joe Ross
    • Johannes Forthmann
    • John C. Brooks
    • John F. Carter
    • John F. Ehlers
    • John F. Summa
    • John Forman
    • John Hayden
    • John J. Murphy
    • John Jagerson
    • John L. Person
    • John M. Bland
    • John Piper
    • John Sussex
    • John Sweeney
    • Jon D. Markman
    • Jordan L. Kimmel
    • José Penalva
    • Joseph Brusuelas
    • Joseph Hooper
    • Josh Lukeman
    • Julie A. Dahlquist
    • Julie R. Dahlquist
    • Justin Kuepper
    • Kathleen Brooks
    • Kathy Lien
    • Kedrick Brown
    • Keith Fitschen
    • Keith Schap
    • Ken Standfield
    • Kenneth Jeffrey Marshall
    • Kerry W. Given
    • Kevin J. Davey
    • Kiana Danial
    • L. A. Little
    • Laszlo Birinyi
    • Laurence A. Connors
    • Laurence Holt
    • Laurentiu Damir
    • Lee Hyongdo
    • Lewis Borsellino
    • Linda Bradford Raschke
    • Lita Epstein
    • Louis B. Mendelsohn
    • Manesh Patel
    • Marcel Link
    • Mario Singh
    • Mark Andrew Lim
    • Mark Cherlin
    • Mark D. Wolfinger
    • Mark Helweg
    • Mark Larson
    • Mark R. Conway
    • Mark Tinghino
    • Mark Whistler
    • Markus Heitkoetter
    • Martha A. Brozyna
    • Martin J. Pring
    • Matt Krantz
    • Matthew McCall
    • Michael C. Thomsett
    • Michael D. Archer
    • Michael Griffis
    • Michael Harris
    • Michael N. Kahn
    • Michael Parness
    • Mike Baehr
    • Mike Bellafiore
    • Ned Gandevani
    • Nicole Elliott
    • Noble DraKoln
    • Oliver Morrison
    • Omar Bassal
    • Pascal Willain
    • Paskalis Glabadanidis
    • Patsy Busby Dow
    • Paul J. Mladjenovic
    • Paul Kasriel
    • Perry J. Kaufman
    • Peter Atwater
    • Peter Rosenstreich
    • Prasanna Khemariya
    • Prasenjit Paul
    • Rafael Romeu
    • Raghee Horner
    • Richard A. Dickson
    • Richard J. Bauer
    • Richard L. Peterson
    • Richard Sipley
    • Richard W. Arms
    • Rick Bensignor
    • Rick Swope
    • Rob Booker
    • Robert Balan
    • Robert C. Miner
    • Robert Carver
    • Robert D. Edwards
    • Robert Robbins
    • Robert Slater
    • Ross Cameron
    • Ross L. Beck
    • Roy Didlock
    • Ruth Barrons Roosevelt
    • Ryan Huang
    • Ryan O'Keefe
    • Sebastian Jaimungal
    • Shani Shamah
    • Sharon Michalsky
    • Stephen W. Bigalow
    • Steve Nison
    • Steve Palmquist
    • Steve Ruffley
    • Steve Ward
    • Steven Dym
    • Suri Duddella
    • T. Harv Eker
    • T. J. Marta
    • Thomas K. Lloyd Sr
    • Thomas L. Busby
    • Thomas McCafferty
    • Thomas N. Bulkowski
    • Thomas Oberlechner
    • Thomas Stridsman
    • Tim Weithers
    • Tina Logan
    • Tom Taulli
    • Tony Plummer
    • Trader Dale
    • Vadym Graifer
    • Valeriy Zakamulin
    • Vicki Schmelzer
    • Young Ho Seo
  • Geometric & Pattern Trading
    • A. W Cohen
    • A.J. Frost
    • Al Brooks
    • Al Gaskill
    • Al Larson aka Hans Hannula
    • Art Collins
    • Arthur Merrill
    • Barry Rudd
    • Ben Stein
    • Bradley F. Cowan
    • Bryce T. Gilmore
    • Buff Dormeier
    • Carl Futia
    • Colin Alexander
    • Curtis M. Arnold
    • Dave Landry
    • David Aronson
    • Deborah Owen
    • Deborah Weir
    • Derrik S. Hobbs
    • Dr. Charles B. Schaap
    • Edgar E. Peters
    • Edward Leshik
    • Eric T. Jones
    • Fari Hamzei
    • Gene Nowell
    • George A. Fontanills
    • George Angell
    • George Bayer
    • George Dagnino
    • George MacLean
    • George Seamans
    • Gerald Marisch
    • Gilbert Raff
    • Gregory L. Morris
    • H. J. Wolf
    • H. M. Gartley
    • Harry Domash
    • Heinrich Weber
    • Jake Bernstein
    • James Dalton
    • James E. O'Brien
    • Jane Cralle
    • Jay Kaeppel
    • Jay Norris
    • Jeffrey Kennedy
    • Jeremy Du Plessis
    • Jeremy Walters
    • Jesse L. Livermore
    • John Burford
    • John Crane
    • John R. Hill
    • John R. Stevenson
    • Joseph Benning
    • Joseph T Duffy
    • Josh DiPietro
    • Ken Wolff
    • Kenneth S. Van Strum
    • Larry Connors
    • Larry D. Spears
    • Larry Jacobs
    • Larry Pesavento
    • Larry R. Williams
    • Leigh Stevens
    • Leslie Masonson
    • M. William Scheier
    • Mark Leibovit
    • Michael J. Parsons
    • Michael Jardine
    • Michael McDonald
    • Michael S. Jenkins
    • Michael Sincere
    • Michael W. Covel
    • Neall Concord-Cushing
    • Peggy MacKay
    • Peter Leeds
    • Peter Tryde
    • Phil DeMuth
    • R. W. Schabacker
    • Richard Russell
    • Richard Smitten
    • Richard Yamarone
    • Robert Bevan Dalton
    • Robert Fischer
    • Robert Lee
    • Robert Pardo
    • Robert R. Prechter
    • Robert W. Colby
    • Roy Kelly
    • Rubén Villahermosa
    • Ruth Miller
    • Ryan Mallory
    • Sammy Chua
    • Scribner Browne
    • Stan Weinstein
    • Stephen Briese
    • Steve Woods
    • Steven Achelis
    • Teresa Bell
    • The Seeker
    • Thomas J. Dorsey
    • Thomas K. Carr
    • Thomas R. DeMark
    • Timothy Knight
    • Timothy Morge
    • Toby Crabel
    • Tom Gentile
    • Toni Turner
    • Tushar S. Chande
    • Victor Ledeboer
    • Victor Sperandeo
    • W. D. Gann
    • Wayne Gorman
    • Welles J. Wilder
    • Wetsel Market Bureau
    • William C Garrett
    • William F. Eng
  • Market Theory & Speculative Trading
    • Aaron Brown
    • Agustin Lebron
    • Alicia Abell
    • Andrew Busch
    • Andrew Lo
    • Archie Craig MacKinlay
    • Benjamin Senauer
    • Bertrand M. Roehner
    • Bin Li
    • Bob Froehlich
    • Brenda Lange
    • Burton G. Malkiel
    • C H Thorpe
    • C. Fred Bergsten
    • Charles D. Ellis
    • Charles D. Kirkpatrick
    • Charles Henry Dow
    • Charles M. Laloggia
    • Charles Sidey
    • Charles V. Payne
    • Cherrie A. Mahon
    • Chitrakalpa Sen
    • Chris Kacher
    • Chris M. Hart
    • Chris Wilkinson
    • Christopher L. Carolan
    • Daniel A. Strachman
    • David Dreman
    • David G. Mayes
    • David J. Abner
    • Didier Sornette
    • Donald A. Walker
    • Donald Coxe
    • Doug Henwood
    • Douglas J. Lucas
    • Dr. John Keppler
    • Edward O. Thorp
    • Edwin Lefevre
    • Elaine Scott
    • Eric Tyson
    • Ernest P. Chan
    • F. A. Hayek
    • Fausto Pugliese
    • Fernando Oliveira
    • Forrest Davis
    • Fowler William Worthington
    • Frank J. Fabozzi
    • Frederic Drew Bond
    • Gabriel Rauterberg
    • Gagari Chakrabarti
    • Gary G. Hamilton
    • George Charles Selden
    • George Henry Lewes
    • George Soros
    • Gerald M. Loeb
    • Gewei Ye
    • Gil Morales
    • Giuseppe Campolieti
    • Grant Henning
    • H. Kent Baker
    • H. Nejat Seyhun
    • Halil Kiymaz
    • Harold Bierman
    • Humphrey Bancroft Neill
    • Ian Marsh
    • J. B. Marwood
    • J. J. Butler
    • J.Peter Steidlmayer
    • Jack R. Vogel
    • Jack Schannep
    • James Altucher
    • Jean Folger
    • Jessica James
    • Joel Greenblatt
    • John Ferguson Hume
    • John Magee
    • John Mihaljevic
    • John Moody
    • Jonathan Worrall
    • Joseph E. Gagnon
    • Justyn Walsh
    • Kenneth L. Grant
    • Kevin Koy
    • Lawrence A. Cunningham
    • Lawrence Glosten
    • Lee Leibfarth
    • Louis Guenther
    • Lucio Sarno
    • Ludwig von Mises
    • Mark Minervini
    • Martin D. Weiss
    • Martin Schwartz
    • Maureen Ohara
    • Max Isaacman
    • Merritt B. Fox
    • Michael D. Sheimo
    • Milton Marquis
    • Misha Petrovic
    • Murray A. Ruggiero
    • Murray N. Rothbard
    • Ned Davis
    • Nicolas Darvas
    • Norman Frumkin
    • Norman G. Fosback
    • P. Ekkehard Kopp
    • Pat Dorsey
    • Patrick L. Young
    • Paul Davidson
    • Peter D. Schiff
    • Peter H. Rossi
    • Peter S. Rose
    • Philip A. Fisher
    • Pim van Vliet
    • R. Stafford Johnson
    • Ralph Vince
    • Richard D. Wyckoff
    • Richard L. Lackey
    • Richard L. Weissman
    • Richard M. Ebeling
    • Richard M. Morgan
    • Richard Ney
    • Richard S. Bookbinder
    • Rik W. Hafer
    • Robert Dubil
    • Robert G. Hagstrom
    • Robert J Elliott
    • Robert J. Shiller
    • Robert J. Yetman
    • Robert L. McDonald
    • Rollo Tape
    • Roman N. Makarov
    • Roy Harrod
    • Ruey S. Tsay
    • S. A. Nelson
    • Sarnoff
    • Scott E. Hein
    • Sean D. Casterline
    • Stefan Bergheim
    • Stephen J. Antczak
    • Steve Fraser
    • Steven B. Hawkins
    • Ted Warren
    • Thomas Gibson
    • Tom Williams
    • W.H.C. Bassetti
    • Warren Boroson
    • Warren Fayette Hickernell
    • Wesley R. Gray
    • William J. O'Neil
    • William Peter Hamilton
    • William Wallace Duncan
    • Yefei Lu
    • Yi Tang
  • Science, Astrology & Numerology
    • Alan Leo
    • Anne Christie
    • Anthony Grafton
    • Bangalore Venkata Raman
    • Bent Nielsen
    • Bernadette Brady
    • Betty Caulfield
    • C. Aq Libra
    • Carl Jung
    • Clifford Cheasley
    • Cyril Fagan
    • Deborah Houlding
    • Drunvalo Melchizedek
    • Eric Temple Bell
    • Frances Sakoian
    • H. Emilie Cady
    • Hidetoshi Fukagawa
    • Hilary Gerard
    • Jean Simpson
    • Joanna Martine Woolfolk
    • John Oscar Lieben
    • Juan Eduardo Cirlot
    • Karl Anderson
    • Liz Greene
    • Louis Acker
    • Louise Edington
    • Luo Clement
    • Lyn Birkbeck
    • M. C. Poinsot
    • Marina Costelloe
    • Matthew Oliver Goodwin
    • Max Heindel
    • Nigel Pennick
    • Ophiel
    • Raphael
    • Robert Hand
    • Robert Lawlor
    • Robert Pelletier
    • Roger Beck
    • Roy Firebrace
    • Rudolf Steiner
    • Sepharial
    • Seth Thomas Miller
    • Shirley B. Lawrence
    • Stephen Arroyo
    • Steven Forrest
    • Sue Tompkins
    • Tamsyn Barton
    • Tons Brunes
    • Tony Rothman
    • Vera Anderson
    • Vivian E. Robson
    • W. S. Andrews
    • W. Wynn Westcott
    • Wallace A. Sherrill
    • Walter Winston Kenilworth
    • Wen-Kuang Chu
    • William R. Newman
  • Trading Courses
    • Galen Woods
    • Jim Kane
Login / Register
0 Wishlist
0 items / $0.00
Menu
logo-main logo-main
Browse Categories
  • Trading Courses
  • Forex and Stocks Trading
  • All in One Series
  • Astro Trading
  • Cycle Trading
  • Commodities, Futures & Options
  • Geometric & Pattern Trading
  • Market Theory & Speculative Trading
  • Science, Astrology & Numerology
  • Cryptocurrency Books
  • Home
  • Books and Courses
  • Articles
  • Contact Us
  • About US
Gagari Chakrabarti, Chitrakalpa Sen - Momentum Trading on the Indian Stock Market
Click to enlarge
Home Market Theory & Speculative Trading Chitrakalpa Sen Momentum Trading on the Indian Stock Market
Ryan Mallory - The Part-Time Trader_ Trading Stock as a Part-Time Venture
The Part-Time Trader: Trading Stock as a Part-Time Venture $19.83
Back to products
Gagari Chakrabarti, Chitrakalpa Sen - Anatomy of Global Stock Market Crashes_ An Empirical Analysis
Anatomy of Global Stock Market Crashes: An Empirical Analysis $18.20

Momentum Trading on the Indian Stock Market

$21.68

  • Pages: 121
  • Format: PDF
  • Published Date: 2013
Add to wishlist
Categories: Chitrakalpa Sen, Gagari Chakrabarti
Share:
  • Description
Description
Rate this product

Momentum Trading on the Indian Stock Market 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.

Introductions:

Resolving issues like ‘‘how and why markets work? … and work well?’’ are often concerns of the so-called mainstream economists. The query dates back to Adam Smith who conjectured a self-regulating economic system that heads towards a stable equilibrium, as individual economic agents pursue their divergent, often conflicting self-interest.

No vulnerabilities on the part of the market were feared, the markets were supposed to be ‘‘fundamentally stable’’. The illusion continued to impinge on ideas of other noted economists of the day such as Ricardo, Say, NMarshal, and Walrus. Out of this evolved a related chimera: in a fundamentally stable market, asset prices truly reflect fundamentals and are fairly priced.

The optimistic belief was too strong to be uprooted even by the great depression of the 1930s. The post-war economic theory saw a resurgence of the idea of rationality and efficiency of the market: ‘‘they breathed new life into the old fallacy’’.

One of the most celebrated post-war economics theories is the efficient market hypothesis (Fama 1970). The theory propagated the ‘fact’ that it may be possible to beat some of the markets all the time and all the markets some of the times but it would be impossible to beat all the markets all the time.

The efficient market hypothesis tells that it would be impossible to make consistent profit from any asset market. The market is able to process new information instantaneously and this is reflected properly in the asset price.

In a stock market, where numerous profit motivated investors are playing with similar objectives, where each of them prefers a stock with high return than a stock with low return and a stock with low risk to a stock with high risk, with no insider knowledge available to anyone (at least legally), each investor can expect to earn only a fair return for the risks undertaken (Hagin 1979).

According to Cootner (1964), ‘‘If any substantial group of buyers thought prices were too low, their buying would force up the prices. The reverse would be true for sellers. Except for appreciation due to earnings retention, the conditional expectation of tomorrow’s price, given today’s price, is today’s price.

In such a world, the only price changes that would occur are those that result from new information. Since there is no reason to expect that information to be non-random in appearance, the period-to-period price changes of a stock should be random movements, statistically independent of one another’’.

The efficient market hypothesis has been challenged time and again on various grounds. One of the most potent of these is on the basis of consistently profitable trading strategies. According to the efficient market hypothesis, the performance of portfolios of stocks should be independent of past returns (Hon and Tonks 2003).

However, empirical studies have shown that stock prices are not actually independent of past returns. They exhibit positive autocorrelation for a very long time which decays slowly. Momentum trading is one of the trading strategies which bank on this autocorrelation and buy and sell accordingly to make consistent profits. Since its discovery by DeBondt and Thaler (1985), the benefits of momentum strategies have been documented in many markets.

Momentum trading, in simple words, means buying stocks which exhibit past overperformance. Momentum trading is built on the rule that stocks which have been performing well, more precisely, better than the market for a predefined historical period, will tend to perform strongly in the coming periods as well.

It has been shown that these momentum stocks outperform the market significantly in future periods as well. As Vanstone (2010) puts aptly, with momentum trading strategies, the investors hitch a ride on the stronger stocks. The efficient market hypothesis, is however unable to explain this phenomenon.

Fama himself referred this as ‘‘the premier unexplained anomaly’’. The proponents of efficient market theory continue to call momentum trading a result of irrational investor behavior or ‘‘psychological biases’’ (Abreu and Brunnermeier 2003). The study of momentum in a particular asset market is of utmost importance, as in extreme cases, it may cause herding, bubble, and subsequent crash4 (Vayanos and Wooley 2009).

A possible reason for existence of momentum in the stock market is that the market is at most semi-strong efficient and exhibits a certain degree of long-term memory, i.e., once a shock is propagated into the system, it does not die down instantly as proposed by the efficient market theory, but decays slowly.

Thus, the presence of momentum trading and the resultant denial of efficient market hypothesis have implications for financial market theories as well as for government policies. And, the area has emerged as the financial market analysts’ delight.

Momentum Trading on the Indian Stock Market is an exploration of the Indian stock market for the possible presence of momentum trading. One thing, however, is to be noted. While it is true that momentum trading, generating speculative bubble may bring in its train a financial market crash, its nature on the other hand might depend on the nature of the economy itself.

The study, while exploring the presence and nature of momentum trading in the Indian stock market in recent years tries to relate it to the significant structural breaks in the Indian or global economy. To be precise, it tries to relate the instability in the stock market possibly to the speculative trading in the market:

whether it is human psychology that drives financial markets. In that 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 financial crisis ever since the one related to the great depression of 1929.

While analyzing the nature of momentum trading in the Indian stock market around the financial crisis of 2007–2008, the study takes into account two major representatives of the market, Bombay stock index (BSE) and National stock index (NSE), over the period 2005–2012.

This study seeks to answer a few important questions. First of all, it tries to unveil the underlying structure of the market. In that process, it examines the following issues:
• What has been the latent structure in the Indian stock market around the crisis of 2007–2008? Does the structure hint scope for designing a profitable trading strategy?
• Is it possible to construct a profitable portfolio in the Indian stock market?
• Is there any profitable trading strategy in the Indian stock market?

While exploring these issues, the study delves deeper and breaks the whole period into two sub-periods, before the crisis of 2008 and after the crisis of 2008. The rationale beneath this segregation is to see whether there has been any discernible change in the market structure before and after the shock.

Contents:

  • Trends in Indian Stock Market: Scope for Designing Profitable Trading Rule?
  • Possible Investment Strategies in Indian Stock Market
  • Investigation into Optimal Trading Rules in Indian Stock Market

Related products

Gagari Chakrabarti, Chitrakalpa Sen - Anatomy of Global Stock Market Crashes_ An Empirical Analysis
Quick view
Add to wishlist

Anatomy of Global Stock Market Crashes: An Empirical Analysis

$18.20
Add to cart
  • Charitsy Building, Zabeel Road, Al Karama st, Dubai
  • Telgram Channel: @sacredtraders
  • Email: sacredtraders.com@gmail.com
Recent Posts
  • Working Money The Stepchild of Chart Patterns By Kenny Gilliland
    August 13, 2022 No Comments
  • Using Binary Options In Forex By Dan Cook
    August 6, 2022 No Comments
  • Pump Up The Volume By Todd Krueger
    July 30, 2022 No Comments
  • Head & Shoulders By Alexander Sabodin
    July 23, 2022 No Comments
  • The Trend Is Your Friend By Alexander Sabodin
    July 16, 2022 No Comments
New Products
  • Profit From The Panic By Adam Khoo, Conrad Alvin Lim, Ryan Huang Profit From The Panic $20.93
  • The Warren Buffett Portfolio Mastering the Power of the Focus Investment Strategy By Robert_G._Hagstrom The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy $10.95
  • How to Avoid Loss and Earn Consistently in the Stock Market By Prasenjit Paul How to Avoid Loss and Earn Consistently in the Stock Market $7.01
Useful Links
  • Trading Books and Courses
  • W.D. Gann
  • Privacy Policy
  • DMCA Policy
  • Terms of Service
2017-2022 Sacred Traders
payments
  • Menu
  • Categories
  • Trading Courses
  • Forex and Stocks Trading
  • All in One Series
  • Astro Trading
  • Cycle Trading
  • Commodities, Futures & Options
  • Geometric & Pattern Trading
  • Market Theory & Speculative Trading
  • Science, Astrology & Numerology
  • Cryptocurrency Books
  • Home
  • Books and Courses
  • Articles
  • Contact Us
  • About US
Shopping cart
close

Sign in

close

Lost your password?

No account yet?

Create an Account
Shop
0 Wishlist
0 items Cart
My account