Next Data Science have its own stock and trade analytics lab which mainly focus on the following global trend that Indian players have started using analytics to trade on the bourses. Known as ‘Quants’ in some circles, data analytics are used for initiating both fundamental as well as technical trades. In fundamental trades the rapidly changing prices are caught by the software’s to bridge the gap between the current price in the market to what has been fed in the software as a fair value of the stock.
Data analysis is used more as a technical analysis tool as it checks historical data to identify similar patterns or signal and how prices responded to it. Trades are taken based on ‘history-repeats-itself’ strategy. Most technical analysts who trade on pattern recognition also trade on similar logic but data analytics helps the trader take the trade on a real time basis and on multiple stocks. Data analytics does not rely on price alone but uses other variables like volume, delivery data and technical signals.