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  • ISSN[Online] : 2643-9875  ||  ISSN[Print] : 2643-9840

Volume 07 Issue 11 November 2024

Applicability of Fibonacci Series on Low Beta Stocks of Nifty-50
1Veerendra Anchan, 2Vansh Shah, 3Vatsal Desai, 4Rushabh Shah
1Assistant Professor, Anil Surendra Modi School of Commerce, NMIMS University, Mumbai
2,3,4Student, MSc. (Finance), Anil Surendra Modi School of Commerce, NMIMS University, Mumbai
DOI : https://doi.org/10.47191/ijmra/v7-i11-16

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ABSTRACT:

This study explores the relationship between stock volatility, measured by beta & price movement patterns using the Fibonacci series in the context of low beta stocks. Low beta stocks, typically more stable than high beta ones, were analyzed using Fibonacci retracement & extension levels to identify key support & resistance points. Historical price data from Nifty 50 low beta were examined under various market conditions including bullish, bearish & stable. The findings from our research indicate that the low beta stocks adhere to Fibonacci levels, hence it offers reliable long-term guidance. The study highlights that while Fibonacci retracement levels are useful, their effectiveness depends on stock volatility & market conditions, which helps investors in optimizing their trading strategies.

KEYWORDS:

Stocks, Low beta, volatility, Fibonacci retracement levels, support & resistance.

REFERENCES
1) Dikici, R., & Özkan, E. (2003). An application of Fibonacci sequences in groups. Applied Mathematics and Computation, 136(2–3), 323–331. https://doi.org/10.1016/S00963003(02)00044-9

2) Kumar, R., Colony, B., & Rohtak, H. (2014). Magic of Fibonacci Sequence in Prediction of Stock Behavior. In International Journal of Computer Applications (Vol. 93, Issue 11).

3) Lahutta, D. (n.d.). Technical Analysis of Price Formations with Fibonacci Sequence on Warsaw Stock Exchange. www.worldscientificnews.com

4) Majumdar, A. (2023a). The Impact of Fibonacci Retracement to Forecast the Support and Resistance of Select Indian Stocks and Indices. https://www.researchgate.net/publication/370133559

5) Majumdar, A. (2023b). The Impact of Fibonacci Retracement to Forecast the Support and Resistance of Select Indian Stocks and Indices. https://www.researchgate.net/publication/370133559

6) Sinha, S. (2017). The Fibonacci Numbers and Its Amazing Applications. https://www.researchgate.net/publication/330740074

7) Zafarullah Shaker, R., & Zulfiqar, N. (2018). Do Predictive Power of Fibonacci Retracements Help the Investor to Predict Future? A Study of Pakistan Stock Exchange Muzaffar Asad. In International Journal of Economics and Financial Research ISSN (Vol. 4, Issue 6).
Volume 07 Issue 11 November 2024

There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.


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