Market trend analysis of NSE
INTRODUCTION TO THE TOPIC
Market Trend Analysis of a Company:
Analysis in terms of finance helps to find out the basic and critical factors affecting the economy of company, market and nation. It can be practiced at major through two methods: Fundamental and Technical.
1. Fundamental Analysis: Fundamental analysis is the examination of the underlying forces that affect the interests of the economy, industry, and company. It tries to forecast the future movement of the capital market using signals from the economy, industry, and company. The presumption behind fundamental analysis is that a thriving economy fosters industrial growth which leads to development of companies. Fundamental analysis can be done by studying three prospects of capital market:
a. Economic Analysis
b. Industry Analysis
c. Company Analysis
Fundamental analysis is influenced by the other psychological factors such as perception, sentiment and so on, of investors. The proxy for the measure of this psychological factor is the past share price of company itself. Thus, an investor can not fully depend upon fundamental analysis for the decision of money investment and hence technical tools are used for better information and assurance of type of investment.
2. Technical Analysis: A study of past share price behavior to predict the future trend is termed as technical analysis. Technical analysis is frequently used as a supplement to fundamental analysis. Technical analysis is based on the economic premise that forces of demand and supply determine the pattern of market price and the volume of trading in a share. Tools for technical analysis are listed here below:
a. Charts [Line, Bar, Candlestick, Point and figure chart]
b. Dow Theory
c. Elliot Wave Theory
d. Flow of Funds
e. Market Structure
f. Market Indicators
Rationale behind the topic
As the tremendous growth of Indian economy continues in the world, capital market comes into limelight. All the major and minor companies are
Market Trend Analysis of a Company:
Analysis in terms of finance helps to find out the basic and critical factors affecting the economy of company, market and nation. It can be practiced at major through two methods: Fundamental and Technical.
1. Fundamental Analysis: Fundamental analysis is the examination of the underlying forces that affect the interests of the economy, industry, and company. It tries to forecast the future movement of the capital market using signals from the economy, industry, and company. The presumption behind fundamental analysis is that a thriving economy fosters industrial growth which leads to development of companies. Fundamental analysis can be done by studying three prospects of capital market:
a. Economic Analysis
b. Industry Analysis
c. Company Analysis
Fundamental analysis is influenced by the other psychological factors such as perception, sentiment and so on, of investors. The proxy for the measure of this psychological factor is the past share price of company itself. Thus, an investor can not fully depend upon fundamental analysis for the decision of money investment and hence technical tools are used for better information and assurance of type of investment.
2. Technical Analysis: A study of past share price behavior to predict the future trend is termed as technical analysis. Technical analysis is frequently used as a supplement to fundamental analysis. Technical analysis is based on the economic premise that forces of demand and supply determine the pattern of market price and the volume of trading in a share. Tools for technical analysis are listed here below:
a. Charts [Line, Bar, Candlestick, Point and figure chart]
b. Dow Theory
c. Elliot Wave Theory
d. Flow of Funds
e. Market Structure
f. Market Indicators
Rationale behind the topic
As the tremendous growth of Indian economy continues in the world, capital market comes into limelight. All the major and minor companies are
Bibliography: Data is gathered from http://www.nseindia.com/ http://www.google.com/ http://en.wikipedia.org Magazines, Newspapers and Other Secondary data resources. Books referred Indian Economy: S. Chand Publications [Ruddar Datt & K.P.M. Sundharam] The Indian Financial System: Pearson education [Bharti V. Pathak] Financial Management: McGraw Hill Companies [M.Y. Khan & P.K. Jain] Investment Analysis and Portfolio Management: Pearson education [M. Rangnathan and R. Madhumathi]