Synthesizing Technical Analysis, Fundamental Analysis Artificial Intelligence – An Applied Approach to Portfolio Optimisation Performance Analysis of Stock Prices in India

摘要

As the Wall Street saying goes: ‘The crowd is right in the trends and wrong at the ends.’ Most of the participants in the investment arena are unaware of the mathematics, science & psychology behind the Technical analysis, Fundamental analysis, & Artificial Intelligence in financial markets. In this paper, we use Technical Analysis (Relative Strength Index), Fundamental analysis, and Artificial Intelligence to optimize the portfolio & review of their performance on Nifty fifty selected stocks. i.e., Reliance Industry Ltd, ICICI Bank, HDFC Bank, Axis Bank, TCS. The main aim is to evaluate & validate Relative Strength Index efficiency & effectiveness of the Indian stock market. The following objective is to design a system trading setup & develop a backtesting strategy to optimize the portfolio. The empirical analysis includes backtesting of optimized indicators representing the desired portfolio, i.e., Reliance industry ltd, ICICI Bank, HDFC Bank from Jan 2013 to Jan 2020. To understand the efficiency of the portfolio & backtesting of portfolio done with the help of Amibroker software.