A COMPARATIVE STUDY OF FUNDAMENTAL AND TECHNICAL ANALYSIS METHODS IN PREDICTING STOCK PRICE MOVEMENTS AT RELIGARE

Abstract

The stock market plays a significant role in the economic development of a country by facilitating capital formation and investment opportunities. Investors and analysts use various methods to evaluate securities and make informed investment decisions. Among these methods, Fundamental Analysis and Technical Analysis are the two most widely used approaches for analyzing stocks and predicting future market movements. Fundamental Analysis focuses on evaluating the intrinsic value of a company by examining its financial statements, earnings, assets, liabilities, management quality, industry performance, and overall economic conditions. It helps investors identify whether a stock is undervalued or overvalued and supports long-term investment decisions. Technical Analysis, on the other hand, studies historical price movements, trading volumes, and market trends using charts and statistical indicators. It is primarily used to predict future price movements and identify suitable entry and exit points for trading. Technical analysts believe that market prices reflect all available information and that historical patterns tend to repeat over time. This study aims to examine the concepts, tools, advantages, and limitations of both Fundamental and Technical Analysis and compare their effectiveness in investment decision-making. The research highlights how these approaches assist investors in evaluating securities, managing risk, and maximizing returns. The findings suggest that while Fundamental Analysis is more suitable for long-term investment strategies, Technical Analysis is beneficial for short-term trading decisions. A combination of both methods can provide a comprehensive framework for successful investment management and wealth creation