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CAPITAL MARKET

INTRODUCTION TO MARKET ANALYSIS

Stock Market Analysis helps the investors in formulating their investing/trading techniques prior to the opening of the market. This helps them to confirm their conviction on trades. Stock Market Analysis deals with the performance of the stocks in particular and the indexes in general. Stock Market Index typically gives the overall performance of the market or of a specific sector. It is based on the statistical compilations of the prices of the representative set of stocks and reflects a composite value of its component stocks.

There are many factors affecting the collective mood of the stock market. Stock Market is a dynamic one which changes with every information due to change in perception of the investors. Stock Market believes in supremacy of the market and considers that demand-supply mechanism leads to efficient price discovery. It also considers that the market discounts/considers everything and presumes every investor to be rational who invest by considering all the informations (economic and political (domestic and international) scenario, weather condition, company
specific news, international relations, monetary and fiscal policies, international Stock Market behavior and many more) available to him.
Stock Market Analysis is a prerequisite for any investor for extracting profit out of the sock market. But most of the investors don’t have the time and knowledge for analyzing the market. So, they take the help of professional Stock Market Analysts who guide them through the financial
jungle to a profitable outcome.

Stock Market Analysis is basically of two types :-
Fundamental Analysis
Technical Analysis

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