Technical Analysis & Fundamental Analysis

Project
Need for the study

An investor can choose the right underlying for

investment, which is risk free. The Technical Analysis &
Fundamental Analysis study included the changes in
daily price movement and buying and selling signals to
the selected stocks. This helps the investor to take right
decisions regarding trading in stock futures. 

Objectives of Study

1. The purpose of doing Technical Analysis &

Fundamental Analysis study is to analyze the factor that
affect the company’s performance
2. To examine the internal and external factors
affecting the future price of company
3. The purpose includes assessing the future market
strength of company
4. The purpose also serves the investors to decide
whether to invest in company shares to gain returns
5. To find about the company future trend through
method of technical analysis 

Scope

The scope of the Technical Analysis & Fundamental

Analysis study covers the analysis made for THREE
major type of companies like Dr. Reddy’s laboratories
Ltd, Cipla Ltd, Ranbaxy Laboratoris Ltd.
 The scope of the analysis can be studied by using
“Moving Averages Method”, which is one of the popular
statistical tools in technical analysis is considered for
the study.

The study for “Technical analysis” is done by taking P&L

a/c, balance sheet &key financial ratios of three
companies for four years form 2011-2016. The key ratios
taken are average price and average volume from
various websites, for technical analysis graphs have
been constituted accordingly.

Findings and conclusions

1. Helpful for investor for taking investment decisions

2. The Investor  can know the risk and return of the
share by analyses
3. This  analysis is useful for investor who wants to go
for long and short term investment
4. The Investor can estimate the future EPS with the
help of historical  data
5. The Financial statements of company reveal the
needed information for investor to make investment
decisions
6. Fundamental analysis is used to predict long-term
share price movement
7. Technical analysis is used to forecast the supply
and demand by studying the price and volume of trading
by using technical analysis the moment investor is able
to know growth of share
8. Technical analyst  short term share price. 

Limitations of Study
1. The  study is based on information which is
secondary
2. The study is basically on Pharma  industries
3. For analysis purpose  two pharmaceutical
companies are taken into consideration
4. The sample size is  restricted to Three companies

Suggestions

1. The investor should analyze the risk factors which

can affect the prices of share before marketing
investment decision.
2. For long term benefit emphasis should be given to
both fundamental and technical analysis’s
3. Investment decision should also be based on risk
return analysis.
4. For Investment decisions, future prospects of the
company should also be taken into consideration.
5. The Investor should also analyze the behavior of the
market as a whole as well the behavior of movement of
the share in which the investor is likely to invest.