Abstract
Abstract
This paper attempts to investigate the factor using a fundamental and technical
analysis of the stock market, between the age groups of 18 to 35 & above .We
have collected primary data from websites, financial reports, and research
papers as the foundation for secondary data based on the majority of responses
from Maharashtra State, which are collectively 191 responses. The research
focuses on buyer behaviour and his perspective on the buying methods they
adopt to invest. Sampling used in this research was simple random sampling,
which is one of the best probability sampling techniques that helps save time
and resources. A chi square was used Extensive data analysis has revealed that
many young people face difficulties when investing due to a lack of proper
investing knowledge. They used to invest by recommendation.
Introduction:
A secondary or major source of income is the stock market. Investors
increase their money by trading stocks. For the best returns in the shortest
amount of time, stock fundamental and technical research should be performed
prior to investing. Investors should also be aware of how news affects the stock
market in order to benefit or prevent loss. Therefore, we will analyse several
factors in this research paper, such as fundamental analysis, technical analysis,
and how news affects the stock market, in order to forecast the direction of the
stock market or any particular stock.
Fundamental analysis is the study of the underlying factors that have an
impact on the health of the economy, industrial sectors, and businesses. The
objective of most analyses is to predict future price movement and make
money off of it. Fundamental analysis at the corporate level could entail
looking at financial information, management, business model, and
competitiveness.
Literature Review
The efficiency of stock markets: According to the efficient market hypothesis (EMH), stock
prices fully reflect all available information and any new information is rapidly incorporated
into stock prices. This means that fundamental analysis may not be effective in beating the
market, as all information is already reflected in stock prices. However, empirical studies
have found that the EMH is not always true, and there are opportunities for outperformance
using fundamental analysis.
The role of financial statements: Fundamental analysis relies on financial statements to assess
a company's financial health and future performance. Financial statements provide
information on a company's revenue, expenses, assets, liabilities, and cash flow. A thorough
analysis of financial statements can help an investor determine the intrinsic value of a stock.
Earnings and revenue growth: Fundamental analysis also takes into account a company's
earnings and revenue growth. A company that is consistently increasing its earnings and
revenue is considered to be in a strong financial position and a good investment opportunity.
The use of charts and technical indicators: Technical analysis uses charts and technical
indicators to identify trends and patterns in stock prices. Technical indicators, such as moving
averages, support and resistance levels, and momentum indicators, are used to determine
entry and exit points in the stock market.
Trend analysis: Trend analysis is an important aspect of technical analysis. Technical analysts
look for trends in stock prices, such as uptrends, downtrends, and sideways movements, to
make predictions about future price movements.
Behavioural finance: Technical analysis is based on the idea that stock market behaviour is
not always rational, and that psychological factors can influence stock prices. Behavioural
finance studies the impact of investor psychology on stock market behaviour.
In conclusion, both fundamental and technical analysis have their strengths and weaknesses
and can be used in combination to make investment decisions. While fundamental analysis
provides a comprehensive analysis of a company's financial health and future performance,
technical analysis can provide valuable information about short-term price movements