How Useful is Technical Analysis in Predicting Future Stock Trends

The study builds on the literature already available on financial data of the companies in India. The study tests out the usefulness of the technical analysis in predicting the future market trends. The study takes 15 companies as recommended by the analysts in the smart investor of the business standard newspaper for the month of January 2010. We took their current price on the recommended day and the target price given by the analysts on the recommended day and have further taken the highest and the lowest months in the following two months that is January and February and see the recommendations given by the analysts to the investors to buy or to sell the securities actually comes out to be profitable or not. We use mean, regression and t-test to prove the results