Technical Analysis of Indian Stock Market

In India securities market have a very long history. The first stock exchange was set up in Bombay in 1875. Since then the number of stock exchanges in the country has grown to 23 including the Over the Counter Exchange of India (OTCEI), Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). In NSE there are about 2000 companies are listed with a market capitalization of around Rs.5466750 Crore (December 2011) and is expected to become the biggest stock exchange in India in terms of market capitalization. The Securities and Exchange Board of India (SEBI) was set up in 1988 as an administrative arrangement.Among the major stock exchanges the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) dominate the Indian Capital Market. Bombay Stock Exchange (BSE) is a value weighted index composed of 30 stocks with the base April 1979=100. It consist of the 30 largest and the most actively traded stocks. SENSEX touched 21,078 points on January 8, 2008.National Stock Exchange (NSE) was incorporated in November 1992 and in October 1995 it became the largest stock exchange of the country. It consists of a well diversified 50 stock index, nicknamed as S&P CNX Nifty or Nifty 50 or simply Nifty, accounting for 22 sectors of the Indian economy.