Difference between technical and fundamental analysis. Diferent types of charts, importance of candlestick charts.
What drives the stock price? Why do price changes so often?: Stock prices are driven by the market forces of demand and supply. Stock prices change often due to the willingness of the buiyers to pay money and the rate at which sellers expect to sell their shares.
What is fundamental analysis?: Fundamental analysis takes into consideration a lot of quantitative and qualitative variables based on which the future profitability of the company is determined. Some of these variables are Profit, Revenue, HR, Finance, customer base, etc
What is technical analysis?: Technical analysis is analyzing the demand and supply situation of the stocks and following the market to determine its price movements.
What are the Pro and cons of fundamental analysis? : Fundamental analysis advantages are it gives the ability of the company to earn profit in the long run and it makes long term investment easier, however its disadvantage is that the reliable information cannot be gathered by the general public as a whole.
What is the input (Data required) to do fundamental / technical analysis?: Inputs for fundamental analysis is – Balance sheet, P&L statement, CFS, Industry cycle, Management, etc. Inputs for technical analysis are – prices and volume.
Explain the relationship of news, earning, and analyst report with the stock price?: The relationship between the news, earning and analyst report with the stock prices may be positively correlated or it may be negatively correlated.
What is the average turnover in NSE only daily basis? Can anyone manipulate the stock price?: The average turnover in NSE is around 3 lakh crores. Manipulation of stock prices is not possible in large cap companies, however companies which have small share capital then manipulation becomes easier in them. Liquidity is essential with respect to
