Fundamental and Technical Analysis: Tools Used in Stock Market

Abstract

Stock market prices fluctuate continuously due to the constant buying and selling in the market. These fluctuations in prices don't occur out of thin air, there are reasons behind these which can also be predictable. There are tools to analyze price movement in stock market. I have selected the topic " Fundamental and Technical Analysis: Tools Used in Stock Market " to provide a brief overview of these tools to the investors and traders. In this report I have discuss the about main two analysis method ; fundamental analysis and technical analysis. How fundamental analysis first evaluate the economic condition than Industry where company is doing business and finally company's fundamental factors i.e. liquidity situation, solvency situation, ability to generate profit, EPS can affect the intrinsic value to stock prices are given in this report. Here, I have discuss about technical analysis and its main assumptions. Also how different charts are drawn to represent stock market information in graphical from. I have tried to give a understanding of technical analysis indicators and how they give trend and price volatility signal to the traders. Lastly what is sentimental analysis and how it affect an individual trader is discussed.