ARE THE EFFECTS OF THE MOON ON MARKET MOVEMENTS ANALOGOUS? – A STUDY ON NSE INDIA

Abstract

The paper belongs to the area of Financial Astrology, an unchartered field of analysis of securities. Investors' fraternity continues to find investing in the stock market an attractive and challenging venture. During the recent decade, the growth and development of the Indian stock market have been tremendous. While managing their investments in the stock market, investors most often utilize fundamental analysis and/or technical analysis. Although neither of these strategies is successful in determining when to enter into a transaction and when to exit it to maximize profits or reduce losses. The answer to this issue is financial astrology, which uses planetary positions to predict stock/index prices. In the study, the link between the NSE NIFTY and the Moon's passage through Indian astrology's zodiacal signs is explored. An analysis of historical data from March 2010 to April 2020 is used in this study. In this research paper, we examine whether the moon's conjunction with 12 distinct zodiac signs has significant bullish and bearish effects. Based on the study's findings, investors may be able to predict when to buy or sell stocks based on lunatic trends. Trends are determined by conjunctions that have an average positive return and those that have an average negative return. Further research is needed in term of investigating the relationship between psychology factors (heuristic bias, information ignorance, and other factors) and investment decision making by putting lunatic trends as intervening factor. The effect of moon on certain anomalies has to examine specifically. Additionally, the study adds to the body of literature on the impact of lunar factors on stock prices.