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Indian Journal of Finance

ISSN: 0973-8711 Frequency: Monthly Peer Review: Double-blind Published since: 2007 Language: English
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Original Article

Open Access Original Article

Implications and Usefulness of Fundamental and Technical Analysis in Stock Market Decision Making

S. Nagendra1,  Satish Kumar2,  Jayashree3

1 Associate Professor, Department of Business Administration, Alva's Institute of Engineering & Technology, Shobhavana Campus, Mijar, Moodbidri - 574 225, Mangalore, Karnataka

2 Associate Professor, Department of Commerce, Manipal Academy of Higher Education (MAHE), Manipal -576 104, Karnataka

3 Financial Analyst, Intel Technology India Pvt. Ltd., No 23-56, P Devarabeesanahalli Outer Ring Road, Varthur Hobli, Bangalore, Karnataka

Volume 12
Issue 5
Pages 54–71
Year 2018
Received: Jan. 20, 2018 Accepted: April 23, 2018 Published: May 1, 2018
Abstract

This paper threw light on the practical usefulness of fundamental and technical analysis. Company level fundamental analysis may involve examination of financial data, management, business concepts, and competition. Technical analysis is about analyzing past price action and from that deriving a predictive model for the future. Fundamental analysis is more useful for long term trades and investments ; whereas, technical analysis is more useful from a short term perspective. For the purpose of data analysis and interpretation, five market capitalization services companies were selected. These are TCS, Reliance, Coal India, HUL, and Hindustan Zinc. Data for 10 years were collected for these companies. Stock market prices of 10 years of these companies were employed for the technical analysis. Also, balance sheets of 10 years of these companies were employed for fundamental analysis. In the study, it was found that both the analysis were useful in dealing with stock market activities.

Keywords Finance Financial Crisis Financial Economics Financial Intermediation Financial Markets Stock Market Forecasting G1 G110 G170
How to Cite

S. Nagendra, Satish Kumar, Jayashree (2018). Implications and Usefulness of Fundamental and Technical Analysis in Stock Market Decision Making. Indian Journal of Finance, 12(5), 54–71. https://doi.org/10.17010/ijf/2018/v12i5/123702

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