THE STUDY OF FUNDAMENTAL & TECHNICAL ANALYSIS
KUMARI PRIYANKA
School of Business
Galgotias University
ABSTRACT
Fundamentalists and chartists have historically always argued about how stocks and markets should be studied. Chartists, also known as technical analysts, estimate market patterns based on historical data, whereas fundamental analysts assess economic, financial, qualitative, and quantitative factors of a security in order to analyze the future of such security they also focus on all the other factors that influence stock prices.
The study of Technical analysis begins with charts, but fundamental analysis begins with the financial statements of the organization. In fundamental analysis, you must look at a company's income statement, balance sheet, and cash flow statement to establish its intrinsic worth. Whereas in technical one put more focus on the past trend and the patterns of a particular stock which might help in forecasting the future of that particular stock or security.
The main objective of this thesis is to study the important concepts of fundamental analysis and forecast the future trends of certain companies which becomes the part of findings of this study.
A stock's intrinsic value can be calculated by discounting future projected cash flows to the net present value. You can buy the stock if it is trading below the company's intrinsic value. Technical analysts, on the other hand, feel that the price of stock already reflects everything that has or could affect a company. Hence the study of fundamental and technical analysis can help others in trading and investing in the best stocks to have maximum return i.e higher amounts of profit by forecasting the future values of a particular stock.
The objectives of this Master Thesis are to study the fundamental analysis and analyze the Stock markets while Trading, based on the Japanese Candlestick pattern which clearly helps to identify at what time we should place Buy and Sell calls with a complete Technical and Logical things applied. Both Primary and Secondary Data are used to prepare this report.
