5% CANARY APPLICATION: A TOOL FOR EARLY WARNING IN INDIAN FINANCIAL MARKETS

The objective of this research is to study the possibility of applying 5% Canary concept of NAAIM founders among others. It is the first derivative in assessing the market direction in any Indian equity markets while looking specifically at Sensex, Nifty 50 and Nifty 500 only. It also explores how long a market tends to go down after a 5% drop from the 52-week high and how long it takes for the market price to change after such a drop. This study draws on the work of other researchers but differs from theirs, in that it adopts theoretically based concepts-brachistochrones-that are also more than two centuries old, with the aim of generating knowledge that will be useful to the everyday and professional investors in the Indian capital markets in particular in protecting and growing their investment.