Security Analysis of Selected Stocks in Information Technology Sector

Abstract

Investment decision includes decision regarding where to invest, how much to invest and for how long duration to invest. For making such decisions, security analysis techniques such as fundamental analyses and technical analysis can be used. Fundamental analysis is based on EIC approach i.e., analysis of Economy, Industry and company analysis which is time consuming analysis generally preferred by beginner investors. And a technical analysis assumes that share price of security represents all the information regarding security. It helps in taking buy, sell and hold decision of investors. Present research has performed technical analysis on selected securities. Beta, Payout ratio, Profitability margin, 52 week high low prices, returns of security are used to analyse the data which is collected for the duration of 5 years from 2017 to 2022. Relative strength index technique is used for knowing whether securities are overbought or oversold. The study aims to examine the risk and return of selected security and suggest the investors in taking buy, sell and hold decision.