Evaluating Portfolio Performance Using Technical Indicators and Financial Ratio for Stocks in NSE by PyPortfolioOpt

Financial indicators play a crucial role in stock market investment. Generally, a financial ratio engulfs a stock's financial condition. "Technicals" are heuristics that play a crucial role in identifying a stock based on short-term price movement indications. As a statistically dependent stock market, the NSE remains a well-suited stock exchange for observing technical indicator movements. Our research considered 7 stocks highly dependent on market capitalization (among the top 50 stocks by market capitalization). Our selection criteria were supported by their strong emphasis on financial ratios through EPS, current ratio, and P/E ratio. Also, these stocks were tested within the parameters of successful technical price movements. Finally, we applied portfolio optimization to support investment guidelines proposed by technical measurements and financial ratios. We have proposed the successful creation of a portfolio for the next 8 days, expecting a price rise. We successfully affiliated a portfolio that amplified a Sharpe ratio generation of more than 1. Our overall portfolio return is more than 8.525% in 8 days, resulting in a yearly expected return greater than 4.633 times that of the original investment. Hence, this proves our claim that a mixture of financial ratios and technical indicators provides sufficient evidence for a quality portfolio return.