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What is Technical & Fundamental Analysis of Share Market?

Technical and fundamental analysis are stock research techniques that consist of evaluating securities based on company performance, as opposed to relying on the performance of the market as a whole. This article is focused on what is technical and fundamental analysis from share market point of view.

Stock market is a very risky business and you need every advantage in your hands to succeed in share market trading and investment. Many brokerage or investment analysts focus on one technique of analyzing financial markets. However, it is advisable to study financial markets using both technical and fundamental analysis together. Technical analysis can be defined as a study of the markets based on historical price data with the main aim of forecasting future price movements based on the price patterns observed in past market movements. Whereas fundamental analysis is a study of companies’ financial statements for investment purposes in stocks, bonds, options, futures and currencies from economic, financial, and business perspectives.

Technical analysis is the overarching term for the various analyses used to forecast stock prices. In practical terms, it means we will be looking at share price trends as we make our market prediction. Fundamental analysis refers to analysis of the economic driving factors and events within a country or region, which can drive market performance.

Technical Analysis and Fundamental Analysis are two different methods used by analysts to predict an asset’s future price. While technical analysts analyze charts to make their predictions, fundamental analysts use financial statements and other data to predict an stock’’s future price.

Technical analysis deals with the study of past price action. The point of technical analysis, as an exercise in itself, is to gain insight into historical trading activity. Fundamental analysis, on the other hand, concerns itself with how different financial factors – such as earnings and dividends – can affect a stock’s price. Because of this different area of focus, technical and fundamental analysis often arrives at opposite conclusions. has SEBI Registered advisor that can help you to get investment ideas based on Fundamental and Technical analysis.


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