• Avani Malani
• Dr. Manu K S

The study focuses on how the stock trading volume can be effected using gamblers fallacy. In the following study it is assumed that if price of a stock keeps on rising for numerous successive trading days then, according to the gamblers fallacy the investors will expect the stock prices to subsequently fall and vice versa. Therefore, the investor’s wish to sell the stock increases, which results in a conflict between the investors and a greater trading volume on day one when the stock prices falls. The data sample consists of nifty 50 daily closing prices and the corresponding trading volume for 5 years starting from 2nd September 2013 to 31st August 2018. The study shows that after a long sequence of the stock returns with the same sign, the day on which the sign is changed, the selling and buying activity in that particular stocks is exceptionally high. Furthermore, the average abnormal trading volumes constantly increases along the length of the preceding return sequence.

stock return sequences, trading volume, stock prices, gambler fallacy.

"The Effect of Stock Return Sequences on Trading Volumes: The Case of Nifty 50 index ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.145-153, June-2019, Available :http://www.jetir.org/papers/JETIRCK06017.pdf

"The Effect of Stock Return Sequences on Trading Volumes: The Case of Nifty 50 index ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp145-153, June-2019, Available at : http://www.jetir.org/papers/JETIRCK06017.pdf