Impact of Technical Analysis Tools in Short-Term Trading Decisions in The Indian Stock Market

Impact of Technical Analysis Tools in Short-Term Trading Decisions in The Indian Stock Market

International Journal of Creative and Open Research in Engineering and Management · 2026

HIGHLIGHT

Techniques such as percentage analysis, correlation, ANOVA, and regression analysis were employed to analyze the gathered data in Microsoft Excel and SPSS programs.

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ABSTRACT

The Indian stock market is witnessing rapid growth due to digitization, widespread internet access, and significant participation of retail investors. In this dynamic environment, short-term traders often resort to technical analysis including Relative Strength Index, Moving Average Convergence Divergence, and Moving Average to determine the correct entry and exit points for investments. Hence, the current study aims at determining the impact of technical analysis tools on short-term trading behavior of Indian retail investors. First, data were collected using a survey questionnaire comprising Likert scale questions from a sample of 101 active short-term traders sampled using purposive sampling techniques. Techniques such as percentage analysis, correlation, ANOVA, and regression analysis were employed to analyze the gathered data in Microsoft Excel and SPSS programs. According to the results, 61.4% of the respondents utilize technical analysis for their trades, whereas 52.5% rely on different technical analysis indicators to affirm decisions. Conversely, 60.4% of the respondents indicated satisfaction with technical analysis in making decisions. More so, regression analysis confirms that proper utilization of technical analysis boosts trading effectiveness and satisfaction. Additionally, correlation suggests that technical analysis can assist traders in minimizing risks and avoiding losses. Keywords: Technical Analysis, Short-Term Trading, Indian Stock Market, RSI, MACD, Moving Averages, Trading Decisions, Risk Management.