There are two major concepts of analysis

• Fundamental analysis:

            Fundamental analysis is a way of scientific analysis as it try to estimate the intrinsic worth of the company. It analyses the basic fundamental criteria of the company like sales, profits, balance sheet studies. It involves assessing short and long term prospects of different industries and companies. It may also involve studying interest levels, capital market conditions and the out for national economy and also the economies of trading partner countries. One of the most important factor of affecting price of a corporate security is the actual / expected profitability of the issuing  company. Fundamental analysis pays attention to a company's debt-equity ratio, profit margins, dividend payout, earning per share, sales penetration, market share, interest, asset and dividend coverage, product and market innovation and the promoters track record. Fundamental analysis conservative, non-speculative approach of evaluating  equity shares on value based method.

• Technical Analysis

                 The technical analysis is the market based method. There is a bye word "You can not beat the market. The market will beat you.  the market has its own way of correction. The bull market rally ignores fundamentals which fuelled by emotional investors take the stocks to unprecedented level and lead  the market to overbought. Especially in a speculative zone prices zoom to dizzy high.  On the other hand in a bear cycle the due to panic and fear fuelled by heavy selling pressure ignores even strong fundamentals and pushes down the prices lower and lower. This situation is called oversold market. the fundamental analysis have wide rage of studies in various levels say economic analysis, industry level analysis and company level analysis. Even then there is no condition that the company's profit or growth may continue to the same previous level. The stock market always discounts the future. If so it never mind the past. The predictive knowledge of the future is more important than analysing the past.

      The super timing of the market is nothing but a pure technical analysis.

Fundamental say what to buy

Technical say when to buy