Financial marketis has become a highly specialized activity confined to select groups of experts known as technical analysts. In most cases they are professionally trained in financial and are reasonably familiar with the tools used to analyze a particular market. In certain other cases they are economists or veteran investors with a special interest in financial market and market economics. The number of factors that directly or indirectly impact the financial markets are increasing rapidly with more analysts digging deeper into the circumstances that influence financial market behavior. On the other hand, the integration of information technology in market is increasingly meeting the challenge posed by the complexities of financial market. The financial market index has become particularly important in today’s market economy, which is integrating very fast on a global scale. Traders do not confine trading in securities to just one or two markets in the country of their origin but invest in a large number of markets across the globe. With more and more investment companies developing global dimensions financial markets around the world are integrating on a scale never imagined before. As a result, of the financial markets has become one of the main activities covering a very large number of factors both within the market and outside it. For instance, when the government of the country where the market is located, announces a new policy measure aimed at deregulating a particularly stifling part of an industry segment, it may have a positive impact on the financial market. Financial market analysts cannot anticipate such factors and therefore the impact of these factors do not come under the main purview of financial market . However, most analysts do set aside some space for the impact of extraneous factors on the market and they do so in equal measure for both positive as well as negative factors.