Investors deal with uncertainties in the stock market in order to optimize financial returns. This includes forecasting stock prices and stock market trends. This article uses ARIMA to predict the movement of income stocks.

Among the technical analysis method of forecasting, ARIMA model is considered a flexible statistical method of examining the behaviour of stocks and capturing the different types of data in one model.

Momentum hybrid performance helps an investor assess how to combine different types of stocks to optimise their return on investment.

Momentum analysis and medium-term momentum analysis refers to the process of examining the past performance of the stocks for a specified period in order to make sound investment decisions.

They do not shed light on the linkage between return and risk. The CAPM analysis helps in understanding the trade-off for each category of stock, i.e. growth, income and value stock.

Short term momentum analysis represents the change experienced by stock prices over a specified period of time. The examination of recent past performance represents the status of the short term investments.

Comparison of annualized average return over a market return enables investors to understand the return generating capacity and the performance of stocks.

It is essential to examine the influence of the Bombay Stock Exchange (BSE) crashes on the investor’s behaviour.