📊 NISM Series XVChapter 15 of 15⚖ 15 marks weightageCase-Based ✓
Ch.15: Technical Analysis
Practice questions for NISM-Series-XV: Research Analyst Certification Examination
(mandated by SEBI under the Research Analysts Regulations, 2014).
Chapter 15 carries 15 out of 100 marks
in the final examination. The exam has 80 MCQs + 5 case-based sets, 120-minute duration,
60% passing score, and −0.25 negative marking per wrong answer.
56
MCQ
3
Case Sets
68
Total Qs
15
Exam Marks
60%
Pass Score
−0.25
Neg. Marking
What You Will Learn in This Chapter
Interpret candlestick, bar and line charts for price analysis
Apply Dow Theory, support/resistance, and trend analysis
Use technical indicators: moving averages, RSI, MACD, Bollinger Bands
Key Terms:candlestick chartsupportresistancemoving averageRSIMACDBollinger BandsDow Theory
Chapter 15 in 10 minutes: technical analysis
Technical analysis carries 15 of the 100 marks in NISM Series XV — the single heaviest chapter in the paper. Where fundamental analysis asks what a business is worth, technical analysis asks what the price is doing and what the balance of buyers and sellers looks like right now. Exam questions lean towards definitions, how each chart pattern is read, and which indicator suits which market condition, rather than live chart interpretation.
1. What technical analysis assumes
The discipline rests on three working assumptions: the price already reflects everything known about the security, prices move in identifiable trends rather than randomly, and patterns of market behaviour repeat because participants react to similar situations in similar ways. You do not have to agree with these to answer the questions — you have to know they are the stated basis of the method.
2. Chart types
Chart
What it plots
Typical use
Line
Closing prices joined into a single line
Clean view of overall direction
Bar (OHLC)
Open, high, low and close for each period
Full range without candle shading
Candlestick
Same four values, drawn as a body plus shadows
Most pattern work; body shows open-to-close
Point & Figure
Price movement only, ignoring time
Filters out minor noise
Renko
Fixed-size bricks on set price moves
Isolates trend from small fluctuation
Heikin-Ashi
Averaged values smoothing each candle
Makes a prevailing trend easier to see
On a candlestick, the real body is the distance between open and close; the thin lines above and below are the shadows or wicks, marking the high and low. Almost every reversal pattern is defined by the relationship between body size and shadow length.
3. Dow Theory and the three trends
Dow Theory is the framework the rest of the chapter builds on. Its tenets hold that the market discounts all information, that it moves in three simultaneous trends, that a primary trend has distinct phases, that indices should confirm one another, that volume should confirm the trend, and that a trend is assumed to continue until there is clear evidence it has reversed.
Primary trend — the main direction, usually running a year or more.
Secondary trend — corrections that move against the primary trend, typically weeks to months.
Tertiary trend — short-term fluctuation of days, treated as noise by longer-term participants.
4. Reversal patterns
These suggest a trend may be turning. Note how often confirmation by the next candle is part of the definition — a frequent exam point.
Hanging man — after an advance: small body, long lower shadow at least twice the body, little or no upper shadow. A warning only; the following candle must close lower to validate it.
Hammer — the same shape after a decline, showing selling was absorbed and price pushed back near the open. Needs upward confirmation.
Bullish engulfing — a small down candle followed by a large up candle whose body completely covers it. More meaningful after four or more declining candles.
Bearish engulfing — the mirror image after an advance. Both candles should be large relative to those around them; in choppy markets the signal is weak.
Dark cloud cover — an up candle, then a gap-up that turns into a down candle closing below the midpoint of the first.
Piercing pattern — the bullish counterpart, forming near the bottom of a congestion area.
5. Consolidation and continuation patterns
These suggest the existing trend will resume after a pause. An ascending triangle shows equal highs with rising lows; a descending triangle shows equal lows with falling highs and usually appears in downtrends. For a triangle, the conventional profit target is the height of the pattern at its widest point, added to or subtracted from the breakout level.
Flags and pennants form when price moves sideways after a sharp run. The sharp move before them is the flagpole; a rectangular pause is a flag, a small triangular one a pennant. Traders wait for a break beyond the pattern's boundary before acting.
6. Support, resistance, trendlines and channels
Support is a level where a decline is expected to pause because demand concentrates there — a floor price struggles to break below. Resistance is the ceiling, where supply concentrates and an advance stalls. Once either is decisively broken, the two commonly swap roles. Trendlines join successive lows in an uptrend or highs in a downtrend; a channel is formed by a parallel line on the opposite side.
7. Indicators
Indicators are calculations layered on price or volume. Moving averages smooth price to show direction. The RSI measures the strength of recent gains against losses on a 0–100 scale. MACD compares two moving averages to read momentum shifts. Bollinger Bands place bands either side of a moving average to show volatility. The ADX measures how strong a trend is without saying which way it points, RSC compares one security's performance against another or against an index, and OBV accumulates volume to test whether it supports the price move.
Written in BullWiser's own words from the NISM-Series-XV workbook (February 2026), Chapter 15. Technical analysis is a study of price behaviour, not a prediction of outcomes, and nothing here is a recommendation to buy or sell.
Multiple Choice Questions (56)
Q1MCQHardChart Types - Heikin-Ashi
The Heikin-Ashi chart is an adjusted candlestick chart designed to average price data and reduce noise. What specific advantage does this chart type offer to a trader, according to the text?
AIt captures intraday price movements (Open, High, Low).
BIt focuses solely on price movements, ignoring time and volume.
CIt helps the trader to remain longer in the trade by filtering out whipsaws.
DIt is best suited for identifying breakout levels and support/resistance zones.
Q2MCQMediumDow Theory Tenets
According to Dow Theory, which of the following best describes the 'Secondary trend'?
AA long-term movement, representing either a bull or bear market.
BA minor trend reflecting short-term fluctuations, lasting days to weeks.
CA correction or rally within the primary trend, typically lasting weeks to months.
DThe phase where smart money enters quietly, preceding public participation.
Q3MCQEasyChart Types
Which type of chart is ideally suited for quick trend visualization and a long-term perspective but does not capture intraday price movements?
ABar Chart
BCandlestick Chart
CLine Chart
DPoint and Figure Chart
Q4MCQHardDow Theory Phases
The phase where "smart money enters quietly" and the phase where "retail investors often enter/exit late" during a primary trend correspond to which two phases, respectively, according to Dow Theory?
APublic Participation and Distribution.
BAccumulation and Public Participation.
CAccumulation and Distribution.
DDistribution and Accumulation.
Q5MCQMediumChart Types
A trader wants to identify patterns like Doji, Hammer, and Engulfing, and understand market psychology through color-coded bodies. Which chart type would be most suitable for this purpose?
ALine Chart
BBar Chart
CCandlestick Chart
DRenko Chart
Q6MCQMediumMarket Trends
What is the typical duration of a secondary trend, as described in the text?
AA few days to a few weeks
BOne year or more
CA few weeks to several months
DLess than three weeks
Q7MCQHardSecondary Trends
What is a typical characteristic of a secondary trend's retracement within a primary move, as per Dow Theory?
AIt typically lasts for less than three weeks.
BThe volumes are usually higher than the primary trend, indicating strong conviction.
CThe retracement can range from 1/3rd to 2/3rd of the previous primary move.
DIt is primarily driven by smart money exiting the market.
Q8MCQEasyChart Types
Which type of chart uses only closing prices over time as a continuous line and does not capture intraday price movements?
ABar Chart
BCandlestick Chart
CLine Chart
DPoint and Figure Chart
Q9MCQHardChart Types Comparison
A technical analyst wants to analyze long-term trends while filtering out minor fluctuations and ignoring the element of time. Which chart type would be most appropriate for this specific requirement?
ALine Chart
BBar Chart
CPoint and Figure Chart
DHeikin-Ashi Chart
Q10MCQEasyDow Theory Tenets
According to Dow Theory, how many primary phases do primary trends typically have?
ATwo
BThree
CFour
DFive
Q11MCQMediumMarket Trends - Tertiary Trends
What is the typical duration of a tertiary trend, according to the provided text?
ATypically one year or more
BFrom a few weeks to several months
CFrom a few days to a few weeks
DExactly 6 months
Q12MCQEasyChart Types
Which chart type is visually much clearer than bar charts, uses color-coded bodies, and is best suited for identifying patterns like Doji and Hammer?
Which of the following is NOT a typical characteristic of a Secondary Trend as described in the text?
AThey can last for 3 weeks to 3 months.
BThe retracement can range from 1/3rd to 2/3rd of the previous primary move.
CThe volumes could be typically higher than the primary trend, indicating strong conviction.
DThey are often triggered by macroeconomic data releases or central bank policy shifts.
Q14MCQMediumMarket Trends - Secondary Trend
According to Dow Theory, what is the typical retracement range for a secondary trend relative to the previous primary move?
A1/4th to 1/2
B1/3rd to 2/3rd
C1/2 to 3/4th
DLess than 1/4th
Q15MCQHardDow Theory and Market Trends
If the Nifty 50 index is showing a clear primary uptrend, but the Sensex index is failing to make new highs and is instead consolidating, which tenet of Dow Theory is being violated or not confirmed?
AThe Market Discounts Everything
BThe Primary Trends Have Three Phases
CVolume Confirms the Trend
DIndices Must Confirm Each Other
Q16MCQMediumTA vs FA
What is a key difference in the time horizon between Technical Analysis and Fundamental Analysis, as described in the text?
ATechnical Analysis is for long-term investment, while Fundamental Analysis is for short-term trading.
BTechnical Analysis focuses on short/medium-term trading strategies, while Fundamental Analysis is for long-term investment decisions.
CBoth analyses are primarily used for long-term investment decisions.
DBoth analyses are exclusively used for short-term trading strategies.
Q17MCQEasyTechnical Analysis Assumptions
One of the core philosophies of Technical Analysis is that 'Price Discounts Everything.' What does this imply?
ATechnical analysts should focus on external fundamentals before price.
BAll known and unknown information is already reflected in the market price.
CMarket prices frequently deviate from their intrinsic values.
DVolume is more important than price in reflecting information.
Q18MCQMediumChart Types - Point and Figure
Which chart type exclusively focuses on price movements, ignoring both time and volume, and is widely used for identifying breakout levels and support/resistance zones?
ABar Chart
BRenko Chart
CPoint and Figure Chart
DHeikin-Ashi Chart
Q19MCQMediumDow Theory Tenets
Which tenet of Dow Theory states that for a trend to be valid, major indices must move in the same direction, such as Nifty and Sensex?
AThe Market Discounts Everything
BVolume Confirms the Trend
CIndices Must Confirm Each Other
DTrends Persist Until Clear Reversal
Q20MCQMediumCore Philosophy of Technical Analysis
Which core philosophy of Technical Analysis assumes that all known and unknown information, including economic, political, and psychological factors, is already reflected in the market price?
AHistory Repeats Itself
BPrice Discounts Everything
CPrice Moves in Trends
DVolume Confirms Price
Q21MCQEasyDow Theory Tenets
According to Dow Theory, which of the following confirms the trend?
AThe market's intrinsic value.
BVolume.
CThe company's earnings reports.
DAnalyst recommendations.
Q22MCQMediumTechnical vs Fundamental Analysis
Which of the following statements accurately differentiates Technical Analysis from Fundamental Analysis based on their typical time horizon?
ATechnical Analysis is for long-term investment decisions, while Fundamental Analysis is for short/medium term trading strategies.
BTechnical Analysis focuses on short/medium term trading strategies, while Fundamental Analysis is for long-term investment decisions.
CBoth Technical and Fundamental Analysis are primarily used for long-term investment decisions.
DBoth Technical and Fundamental Analysis are primarily used for short/medium term trading strategies.
Q23MCQEasyDow Theory - Volume
According to Dow Theory, what role does volume play in confirming a trend?
AVolume should decrease in the direction of the primary trend.
BVolume should increase in the direction of the primary trend.
CVolume is irrelevant for trend confirmation.
DVolume confirms reversals, not trends.
Q24MCQEasyIntroduction to Technical Analysis
What is the primary focus of technical analysis when evaluating securities?
AA company’s financial health and intrinsic value.
BStatistical trends gathered from trading activity, primarily price and volume.
CMacroeconomic indicators and geopolitical stability.
DManagement quality and competitive landscape.
Q25MCQMediumTechnical vs. Fundamental Analysis
A long-term investor seeking to identify undervalued or overvalued assets would most likely follow which type of analysis, according to the comparison table?
ATechnical Analysis
BQuantitative Analysis
CFundamental Analysis
DBehavioral Analysis
Q26MCQEasyAssumptions of Technical Analysis
Which of the following is a core assumption of technical analysis regarding market prices?
AMarket prices are often manipulated and do not reflect true value.
BAll known and unknown information is already reflected in the market price.
CMarket prices are primarily driven by a company's future earnings potential.
DPrice movements are random and unpredictable.
Q27MCQHardTertiary Trend Characteristics
Which of the following is NOT a typical characteristic of a Tertiary trend as described in the text?
AThey typically last less than three weeks.
BThey are often highly volatile and reactive to news.
CVolume patterns are less reliable than in primary trends.
DThey are reliable for long-term forecasting.
Q28MCQEasyMarket Trends - Tertiary Trend
Which type of market trend reflects short-term fluctuations, typically lasting from a few days to a few weeks?
APrimary trend
BSecondary trend
CTertiary trend
DCyclical trend
Q29MCQMediumSecondary Trends
In a Bull Market, what is the term for a secondary trend characterized by a temporary decline (often 10–20%) before the primary uptrend resumes?
ARally
BDistribution Phase
CCorrection
DWhipsaw
Q30MCQEasyChart Types
Which chart type uses closing prices over time as a continuous line and is ideally suited for quick trend visualization and long-term perspective?
ABar Chart
BCandlestick Chart
CLine Chart
DPoint and Figure Chart
Q31MCQMediumDow Theory Tenets
The Dow Theory tenet 'The Market Discounts Everything' is stated to align with which economic hypothesis?
ARational Expectations Hypothesis
BAdaptive Market Hypothesis
CEfficient Market Hypothesis (EMH)
DRandom Walk Hypothesis
Q32MCQHardSecondary Trends & Tools
A swing trader aims to capitalize on intermediate moves within a broader market trend. Which type of trend is most relevant for this strategy, and which tool is specifically mentioned for identifying likely reversal zones within such a trend?
APrimary Trend; Moving Averages (50 or 100 DMA)
BSecondary Trend; Fibonacci Retracement
CTertiary Trend; 5-day EMA
DPrimary Trend; Volume Profile
Q33MCQMediumDow Theory Phases
In which phase of a primary trend, according to Dow Theory, does 'smart money' quietly enter the market?
APublic participation phase
BDistribution phase
CAccumulation phase
DCapitulation phase
Q34MCQMediumDow Theory Market Trends
In Dow Theory, what is the typical duration for a Secondary trend?
AFrom a few days to a few weeks.
BOne year or more.
CFrom a few weeks to several months.
DLess than three days.
Q35MCQEasyDow Theory - Market Trends
According to Dow Theory, what is the typical duration for a Tertiary trend?
AOne year or more
BA few weeks to several months
CA few days to a few weeks
DIndefinite, until a clear reversal
Q36MCQMediumTechnical vs. Fundamental Analysis
According to the comparison table, what is the typical time horizon for strategies followed by fundamental analysts?
AShort-term trading strategies
BMedium-term trading strategies
CLong-term investment decisions
DIntraday fluctuations
Q37MCQMediumChart Types
A trader wishes to identify patterns like Doji, Hammer, and Engulfing, and interpret market psychology. Which chart type is best suited for this purpose?
ALine Chart
BBar Chart
CCandlestick Chart
DPoint & Figure Chart
Q38MCQEasyIntroduction to Technical Analysis
What is the primary focus of technical analysis, according to the provided text?
AA company's financial health and intrinsic value.
BStatistical trends gathered from trading activity, primarily price and volume.
CMacroeconomic indicators and geopolitical stability.
DManagement quality and competitive landscape.
Q39MCQMediumPrimary Trend Drivers
Which of the following is identified as an underlying driver of primary trends in the market?
AShort-term earnings surprises
BTechnical exhaustion (e.g., overbought RSI)
CGeopolitical stability
DMinor intraday price fluctuations
Q40MCQMediumDow Theory
According to Dow Theory, for a trend to be valid, both the major indices must move in the same direction. Which pair of indices is given as an example in the text?
ANifty and Sensex
BNifty and Bank Nifty
CSensex and Dollar Index
DGold and Crude Oil
Q41MCQMediumTechnical vs. Fundamental Analysis
Which of the following is an assumption of Technical Analysis, as opposed to Fundamental Analysis?
AMarket prices may deviate from their intrinsic values.
BCurrent market price captures all relevant information.
CLong-term investment decisions are the primary objective.
DCash flow statements are the main tool.
Q42MCQEasyDow Theory - Trends
According to Dow Theory, how many distinct trends does the market possess?
ATwo: Primary and Secondary
BThree: Primary, Secondary, and Tertiary
CFour: Major, Intermediate, Minor, and Sideways
DOne: The dominant long-term trend
Q43MCQMediumSecondary Trends
Which technical tool is specifically mentioned as identifying likely reversal zones (38.2%, 50%, 61.8%) within a trend for secondary movements?
AMoving Averages (50 DMA)
BRSI/Stochastic Oscillator
CFibonacci Retracement
DTrendlines & Channels
Q44MCQHardChart Types
A technical analyst wants to analyze price movements while filtering out noise and ignoring time and volume. Which chart type should they use?
ARenko Chart
BHeikin-Ashi Chart
CPoint & Figure Chart
DBar Chart
Q45MCQEasyTechnical Analysis Introduction
According to the core philosophy of Technical Analysis, what does the market price primarily reflect?
AThe company's future earnings potential
BAll known and unknown economic, political, and psychological information
COnly the historical volume of trades
DThe intrinsic value determined by financial statements
Q46MCQHardChart Types
A chart type that only focuses on price movements, ignores time and volume, filters out noise, and is ideal for long-term trend analysis and identifying breakout levels, is known as a:
AHeikin-Ashi Chart
BRenko Chart
CPoint and Figure Chart
DBar Chart
Q47MCQHardTertiary Trends
Which characteristic is NOT typically associated with tertiary trends as per the provided text?
AThey often move counter to the primary or secondary trend.
BThey are generally less reliable for long-term forecasting.
CVolume patterns are consistently reliable for confirmation.
DThey are highly volatile and reactive to news events.
Q48MCQEasyTechnical Analysis Introduction
Which of the following is NOT explicitly mentioned as a core assumption or philosophy of Technical Analysis in the provided text?
APrice Discounts Everything
BPrice Moves in Trends
CMarket Action is Predictable (to a degree)
DFundamental News Drives Price Action
Q49MCQMediumPrimary Trends - Underlying Drivers
All of the following are mentioned as underlying drivers of Primary Trends EXCEPT:
AEconomic cycles (growth vs recession).
BGeopolitical stability.
CSpecific company earnings surprises.
DMonetary policy (interest rates, liquidity).
Q50MCQEasyDow Theory
According to Dow Theory, how many distinct trends does the market have?
AOne
BTwo
CThree
DFour
Q51MCQEasyTechnical Analysis Assumptions
According to the core philosophy of Technical Analysis, what is the role of volume in relation to price movements?
AVolume is irrelevant as price discounts everything.
BVolume confirms price movements and signals strength or weakness.
CHigh volume during reversals indicates a temporary fluctuation.
DVolume is primarily used to determine the intrinsic value of an asset.
Q52MCQHardChart Types
Which chart type is characterized by only focusing on price movements, ignoring time and volume, and is widely used for identifying breakout levels and support/resistance zones?
ARenko Chart
BHeikin-Ashi Chart
CBar Chart
DPoint and Figure Chart
Q53MCQEasyIntroduction to Technical Analysis
What is the primary data source for Technical Analysis?
AFinancial statements
BEconomic reports
CHistoric price and volume data
DIndustry publications
Q54MCQMediumChart Types - Heikin-Ashi
What is the specific function of a Heikin-Ashi chart as described in the text?
ATo ignore time and volume, focusing only on price movements.
BTo highlight the price range and directional bias for detailed price action.
CTo average price data to reduce noise and help traders remain longer in a trade by filtering out whipsaws.
DTo use fixed price movements (bricks) rather than time intervals for momentum tracking.
Q55MCQMediumTechnical vs. Fundamental Analysis
Which statement accurately differentiates Technical Analysis from Fundamental Analysis based on their assumptions?
ATechnical Analysis assumes market prices may deviate from intrinsic values, while Fundamental Analysis assumes current market price captures all information.
BTechnical Analysis assumes the current market price captures all information, while Fundamental Analysis assumes market prices may deviate from their intrinsic values.
DBoth analyses assume market prices are often irrational and unpredictable.
Q56MCQEasyPrimary Trends
A sustained upward movement in prices, driven by optimism, growth, and liquidity, lasting typically one year or more, is classified as what type of primary trend?
ABear Market
BSideways Market
CBull Market
DCorrection
Case-Based Questions (3 sets)
Case 1Case-BasedTechnical Analysis Application
Priya, a research analyst, is evaluating 'TechInnovate Ltd.' (TIL) for a short-term trading recommendation. TIL has been in a robust primary uptrend for the past 18 months, characterized by higher highs and higher lows. Recently, the stock experienced a sharp 15% decline over three weeks, accompanied by noticeably lower trading volumes compared to its previous upward rallies. This decline brought TIL's price close to its 50-day moving average, a key level from which it has historically found support during its primary uptrend. Priya suspects this might be a temporary correction rather than a trend reversal. She is now analyzing various chart types and technical indicators, including Fibonacci retracements and the Relative Strength Index (RSI), to confirm her hypothesis and identify optimal entry points. She also notes that while the broader market indices (Nifty and Sensex) have shown some minor weakness, they remain above their long-term trendlines, aligning with the Dow Theory's principle of index confirmation. Her ultimate goal is to capitalize on the anticipated continuation of TIL's primary uptrend.
Medium Sub-question 1
Priya is considering using 'Fibonacci retracements and the Relative Strength Index (RSI)' to confirm her hypothesis and identify optimal entry points. Which chart type would be most suitable for effectively applying these indicators and observing detailed price action, including open, high, low, and close prices, to identify patterns like Doji or Hammer?
ALine Chart
BPoint and Figure Chart
CCandlestick Chart
DRenko Chart
Medium Sub-question 2
Priya observed that the recent 15% decline in TIL's price was accompanied by 'relatively lower trading volumes.' According to technical analysis principles, what does this volume characteristic suggest about the nature of this decline?
AHigh volume during a decline confirms a strong bearish primary trend reversal.
BLow volume during a decline suggests a lack of conviction, indicating it's likely a temporary correction.
CVolume is irrelevant for confirming secondary trends; only price action matters.
DHigh volume during a decline confirms the continuation of the primary uptrend.
Hard Sub-question 3
Priya notes that 'while the broader market indices (Nifty and Sensex) have shown some minor weakness, they remain above their long-term trendlines.' How does this observation, in the context of Dow Theory, support Priya's hypothesis that TIL's primary uptrend will likely continue?
AIt contradicts Dow Theory, as indices must show strength, not weakness, for individual stocks to continue an uptrend.
BIt supports Dow Theory's tenet that 'Indices Must Confirm Each Other,' implying the broader market's overall strength validates TIL's primary trend.
CIt suggests that the primary trend has already reversed, as minor weakness in indices is a leading indicator of a bear market.
DDow Theory primarily focuses on individual stock volume and price, not broader market indices.
Easy Sub-question 4
Based on Priya's observation of TIL's 18-month uptrend followed by a 3-week, 15% decline, how would Dow Theory classify these two movements respectively?
APrimary trend (uptrend) and Tertiary trend (correction)
BPrimary trend (uptrend) and Secondary trend (correction)
CSecondary trend (uptrend) and Tertiary trend (correction)
DPrimary trend (uptrend) and Primary trend (reversal)
Case 2Case-BasedChart Types and Technical Analysis Fundamentals
Deepak, a newly certified Research Analyst, is examining the recent price behavior of 'Global Pharma Ltd.' (GPL). He is particularly interested in identifying short-term trading opportunities and understanding market psychology reflected in price action. He initially uses a line chart, but finds it lacks detail for intraday movements. He then switches to a daily candlestick chart and observes several 'Doji' patterns appearing over the past week, often after sharp moves. Deepak is also grappling with the core assumptions of technical analysis, particularly how it differs from fundamental analysis. His senior analyst reminds him that market behavior is often cyclical and driven by human psychology, leading to recurring patterns. Deepak is trying to filter out minor fluctuations to get a clearer picture of the underlying trend, but also needs to be aware of rapid, news-driven price changes that might last only a few days.
Easy Sub-question 1
Deepak finds the line chart lacking detail for intraday movements. Which chart type, among those mentioned in the text, would be most suitable for Deepak to analyze intraday open, high, low, and close prices?
APoint and Figure Chart
BRenko Chart
CBar Chart (OHLC)
DHeikin-Ashi Chart
Easy Sub-question 2
Deepak's senior analyst reminds him that market behavior is often cyclical and driven by human psychology, leading to recurring patterns. Which core philosophy or assumption of technical analysis does this statement align with?
APrice Discounts Everything
BPrice Moves in Trends
CHistory Repeats Itself
DVolume Confirms Price
Hard Sub-question 3
Deepak needs to filter out minor fluctuations to get a clearer picture of the underlying trend, but also needs to be aware of rapid, news-driven price changes that might last only a few days. If he wants to filter out noise and focus solely on significant price movements by using fixed price movements (bricks) rather than time intervals, which chart type would be most appropriate for this specific goal?
ALine Chart
BBar Chart
CCandlestick Chart
DRenko Chart
Medium Sub-question 4
Deepak observes 'Doji' patterns on the daily candlestick chart, often after sharp moves. What does the appearance of 'Doji' patterns on a candlestick chart typically suggest about market psychology at that moment?
AStrong bullish momentum and continuation.
BStrong bearish momentum and continuation.
CIndecision between buyers and sellers.
DConfirmation of a new primary trend.
Case 3Case-BasedTechnical Analysis Application
Rohan, a research analyst at 'Alpha Insights', is tasked with preparing a short-to-medium term trading recommendation for 'TechGen Innovations' (TGI) stock. He primarily relies on technical analysis. Over the past year, TGI has shown a sustained upward movement, recently hitting a new 52-week high. However, in the last month, TGI experienced a 12% pullback, consolidating within a narrower range, before showing signs of resuming its upward trajectory. Rohan notes that during this pullback, trading volumes were noticeably lower than during the preceding upward rally. He is observing the stock's price action on a daily candlestick chart, a weekly bar chart, and also reviewing the Nifty IT index's performance for confirmation. He suspects that the recent pullback is a temporary phenomenon within a larger trend. He also notices that the 50-day Moving Average is still well above the 200-day Moving Average, indicating long-term strength. Rohan's objective is to identify if the primary trend is still intact and pinpoint potential entry points.
Medium Sub-question 1
Rohan observes that trading volumes were noticeably lower during the 12% pullback compared to the preceding upward rally. According to Dow Theory, what does this observation primarily suggest about the current market action?
AIt confirms a reversal of the primary trend.
BIt indicates the secondary trend is gaining strength.
CIt suggests the pullback is likely a temporary correction, not a reversal of the primary trend.
DIt implies that smart money is accumulating shares during the pullback.
Hard Sub-question 2
Given Rohan's observation of the 50-day Moving Average being well above the 200-day Moving Average, which strategy would be most aligned with his findings, assuming the primary trend is expected to continue?
AShort selling TGI, anticipating further decline.
BAdopting a long-term value investing approach, ignoring technicals.
CBuying dips in TGI, aligning with a trend-following strategy.
DSwitching to a Renko chart to identify breakout levels more clearly for short-term trades.
Easy Sub-question 3
Rohan is reviewing the Nifty IT index's performance for confirmation. Which tenet of Dow Theory is Rohan applying by observing the Nifty IT index in conjunction with TGI's stock price?
AThe Market Discounts Everything
BThe Market Has Three Trends
CIndices Must Confirm Each Other
DTrends Persist Until Clear Reversal
Medium Sub-question 4
Based on the scenario, what type of market trend does the recent 12% pullback in TechGen Innovations (TGI) most likely represent within the context of its sustained upward movement over the past year?
APrimary trend
BSecondary trend
CTertiary trend
DSideways trend
About this content: These practice questions are based on the
NISM-Series-XV: Research Analyst Certification Examination Workbook (February 2026)
published by the National Institute of Securities Markets (NISM), Mumbai.
NISM is a SEBI-established institution. Questions cover Technical Analysis with verified answers and explanations.
BullWiser is an independent exam preparation platform — not affiliated with NISM or SEBI.
Last updated: .
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