Technical Analysis & Fundamental Analysis Project

Need for the study

An investor can choose the right underlying for investment, which is risk free. The Technical Analysis & Fundamental Analysis study included the changes in daily price movement and buying and selling signals to the selected stocks. This helps the investor to take right decisions regarding trading in stock futures. 

Objectives of Study

1. The purpose of doing Technical Analysis & Fundamental Analysis study is to analyze the factor that affect the company’s performance
2. To examine the internal and external factors affecting the future price of company
3. The purpose includes assessing the future market strength of company
4. The purpose also serves the investors to decide whether to invest in company shares to gain returns
5. To find about the company future trend through method of technical analysis 

Scope

The scope of the Technical Analysis & Fundamental Analysis study covers the analysis made for THREE major type of companies like Dr. Reddy’s laboratories Ltd, Cipla Ltd, Ranbaxy Laboratoris Ltd.

The scope of the analysis can be studied by using “Moving Averages Method”, which is one of the popular statistical tools in technical analysis is considered for the study.

The study for “Technical analysis” is done by taking P&L a/c, balance sheet &key financial ratios of three companies for four years form 2011-2016. The key ratios taken are average price and average volume from various websites, for technical analysis graphs have been constituted accordingly.

Findings and conclusions

1. Helpful for investor for taking investment decisions
2. The Investor  can know the risk and return of the share by analyses
3. This  analysis is useful for investor who wants to go for long and short term investment
4. The Investor can estimate the future EPS with the help of historical  data
5. The Financial statements of company reveal the needed information for investor to make investment decisions
6. Fundamental analysis is used to predict long-term share price movement
7. Technical analysis is used to forecast the supply and demand by studying the price and volume of trading by using technical analysis the moment investor is able to know growth of share
8. Technical analyst  short term share price. 

Limitations of Study

1. The  study is based on information which is secondary
2. The study is basically on Pharma  industries
3. For analysis purpose  two pharmaceutical companies are taken into consideration
4. The sample size is  restricted to Three companies

Suggestions

1. The investor should analyze the risk factors which can affect the prices of share before marketing investment decision.
2. For long term benefit emphasis should be given to both fundamental and technical analysis’s
3. Investment decision should also be based on risk return analysis.
4. For Investment decisions, future prospects of the company should also be taken into consideration.
5. The Investor should also analyze the behavior of the market as a whole as well the behavior of movement of the share in which the investor is likely to invest.