EXECUTIVE SUMMARY
EQUITY ANALYSIS is the systematic study of the performance of
companies in the capital market. Equity analysis consists of
1)
Fundamental
analysis &
2)
Technical
analysis.
Any decision to be taken in
investment of shares should be based on actual movement of share prices of the
target scrip.
In Equity Analysis, calculations are based on FACTS & not on
HOPE. The core of equity analysis lies in the attempt to determine future share
price movements with the help of RATIO ANALYSIS, STUDY OF GRAPHS, and many
other statistical and research methods. Equity analysis does not discuss how to
buy & sell shares, but rather it discusses the methods, which can enable
the investor to arrive at any buy or sell decision.
The Technical
Approach to investment is essentially based on the presumption that prices of
any scrip always moves in a trend which can be determined by the changing
attitude of investor’s toward a variety of economic, monetary, political and
psychological forces.
The ‘art’ of
technical analysis, is to identify a trend reversal at a relatively early stage
and ride on that trend until the weight of the evidence shows or proves the
trend has reversed.
