Momentum Trading on the Indian Stock Market

Business & Finance, Economics, Econometrics, Finance & Investing, Finance
Cover of the book Momentum Trading on the Indian Stock Market by Gagari Chakrabarti, Chitrakalpa Sen, Springer India
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Gagari Chakrabarti, Chitrakalpa Sen ISBN: 9788132211273
Publisher: Springer India Publication: March 27, 2013
Imprint: Springer Language: English
Author: Gagari Chakrabarti, Chitrakalpa Sen
ISBN: 9788132211273
Publisher: Springer India
Publication: March 27, 2013
Imprint: Springer
Language: English

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.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

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.

More books from Springer India

Cover of the book The Mathematical Legacy of Srinivasa Ramanujan by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Biofortification of Food Crops by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Arsenic and Fluoride Contamination by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Brain, Self and Consciousness by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Second Language Acquisition in Multilingual and Mixed Ability Indian Classrooms by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Principles of Critical Care in Obstetrics by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Breast Diseases by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Optimal Covariate Designs by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Emerging Trends in Computing and Communication by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Energy Security and Development by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Unraveling Thermoluminescence by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Green Chemistry: Synthesis of Bioactive Heterocycles by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Globalization and Standards by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Enzymatic Transformation by Gagari Chakrabarti, Chitrakalpa Sen
Cover of the book Heat Stress and Animal Productivity by Gagari Chakrabarti, Chitrakalpa Sen
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy