Indian Stock analysis

Indian Stock analysis

Stock analysis is of two types – fundamental and technical. If you plan on investing in the stock for the long market you need to analyse the stock fundamentally. On the other hand, if trading or short term investing is your focus, you need to become efficient at technical analysis. To analyse a stock fundamentally, you ideally need to read the company’s annual report and balance sheet statements, comprehend the scope of its business holistically and then gauge its valuation. However, to start off, you can look at the company’s annual and quarterly profits and sales, and use common valuation ratios like the PE ratio. Technical analysis constitutes identifying various patterns and implementing different tools and indicators to predict the movement of prices. You could start off with technical analysis by Identifying the trend and using simple indicators like the moving average.