Evaluating The Impact Of Behavioural Syndromes On HNI Investment Decisions: A Technical Analysis Of BSE And NSE Stocks

Abstract

High Net-worth Individuals (HNIs) play a pivotal role in shaping stock market dynamics, yet their investment decisions are often influenced by behavioral syndromes such as overconfidence, loss aversion, and herd behavior. This research evaluates the impact of these behavioral syndromes on HNI investment decisions in the context of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) stocks. Utilizing a mixed-methods approach, the study combines technical analysis of stock price movements with psychometric assessments of HNI behavioral traits. Data from 500 HNIs and historical stock performance (2020–2025) are analyzed to identify patterns linking behavioral biases to investment outcomes. Findings reveal that overconfidence significantly amplifies risk-taking, while loss aversion leads to suboptimal portfolio diversification. The study offers actionable insights for financial advisors and policymakers to mitigate behavioral biases, enhancing HNI investment efficiency and market stability. By bridging behavioral finance and technical analysis, this research contributes to a nuanced understanding of wealth management in emerging markets.