International Science Community Association Research Journal of Management Sciences 2319 - 1171 5 9 2016 09 6 Application of Technical Analysis in Indian Stock Market: An Empirical Study of CNX IT Index Stocks 24 32 EN Tiwari Shefali 1 Shri Raojibhai Gokalbhai Patel Gujarati Professional Institute of Management, Indore, MP, India Nair Sandeep 1 Rani Channamma University, Belagavi, Karnataka, India Joshi* Sushant T. 2 Rani Channamma University, Belagavi, Karnataka, India Thyagaraja C.M. 3 Kuvempu University, Shivamogga, Karnataka, India Chatpalli Vishnukant S. 4 Rani Channamma University, Belagavi, Karnataka, India Gill Mandip 1 Maharaja Ranjit Singh College of Professional Sciences, Indore, MP, India Saluja H.S. 1 Maharaja Ranjit Singh College of Professional Sciences, Indore, MP, India Totala* N.K. 2 Institute of Management Studies, Devi Ahilya Vishwavidyalaya, Indore, MP, India > Research Paper 2016 8 20 2016 09 6 In order to forecast future price trends of the stocks and indices Technical Analysis is a practice of finding recurrent patterns of historical prices. It is stated that Weak Form of Efficient Market Hypothesis explains that historical price quotations of a security or index does not add value to the investors, as this type of information is reflected in the current price quotations of the security or index. Resultantly, all trading rules, tools and techniques of Technical Analysis developed based on historical information are of no use to predict the market. This rejects the usefulness of Technical Analysis. On the other hand, if their exist no Weak Form of Market Efficiency, it means future price movements can be determined by the information embedded in historical price series, consequently, Technical Analysis can be applied to determine the future share prices. The present study explored the application and importance of Technical Analysis in CNX IT Index constituents select companies of Indian Stock Market. For this, Efficiency of Weak Form of Market was tested by taking stock returns calculated on daily basis for the CNX IT Index constituent companies from April 2009 to March 2015, i.e., 7 years. Descriptive Statistics as well as One Sample Kolmogorov-Smirnov (KS) Test were applied to check the normality. Runs Test and Autocorrelation Test were applied to determine Weak Form of Stock Market Efficiency. Copyright@ International Science Community Association