Page 140 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

In addition, the introduction seeks to define the parameters of the research paper's structure and scope,
outlining the main fields of study and the analytical approach used. Using a combination of critical evaluation,

empirical analysis, and literature review, this study aims to find insights that can help traders, investors, and
policymakers in their pursuits within the Indian stock market. In the end, the introduction provides a roadmap

for navigating the complexities of the Indian stock market landscape and acts as a core framework for the next

investigation of trading methods.

Literature Review:

 Technical analysis:

Pring (2002) provides useful insights into the principles and practices of technical analysis, which involves

studying previous price movements, trade volumes, and chart patterns in order to estimate future price trends.

Traders frequently utilize technical indicators like moving averages, the Relative Strength Index (RSI), and
Bollinger Bands to discover trading opportunities and make informed decisions.

 Quantitative models:

Chakrabarti et al. (2017) investigate the application of quantitative models in trading strategies, emphasizing

the importance of mathematical algorithms and statistical techniques for assessing market data and creating

trading signals. Quantitative models use mathematical models and computer algorithms to detect patterns,
trends, and anomalies in market data, allowing traders to make informed judgments.

 Algorithmic trading:

Subramanian (2019) and Prensky (2001) provide significant documentation on the emergence of algorithmic
trading. Algorithmic trading is the use of computer algorithms to automatically execute transactions based on

predefined rules and parameters. It allows traders to make trades quickly, take advantage of market
inefficiencies, and minimize risks more efficiently.

 Option Trading Strategies:

Wang et al. (2019) investigate the intricacies of options trading methods, including those for call and put

options. Options trading methods involve complicated derivatives products that allow traders to hedge risk,

speculate on price changes, and create revenue using tactics such as straddles, strangles, and spreads.

Objectives:

 Strategy Exploration Objective:

To explore and understand various trading strategies employed in the stock market with a focus on their

applicability to professional trading.