ANALYSIS OF FINANCIAL AND TECHNICAL USEFULNESS IN DECISION MAKING

This study focused on the practical usefulness of fundamental and technical analysis in decision making. Fundamental analysis is more helpful for long term investment, whereas technical analysis is useful for short term perspective. The data have been taken in the study are mainly secondary in nature. The study covers the period from 2011 to 2020 and five market capitalization services companies were selected. Price earnings ratio employed for the technical analysis and profitability ratios, turnover ratios, debt equity ratio employed for fundamental analysis. In this way, technical analysis can be made to accumulate efforts of fundamental analysis. In the study, it was observed that both analyses help to judge in dealing with stock market activities. Hence, the study provides useful insights for investing community, Portfolio managers, stock analyst to trace overvalued and undervalued stock that encourage trading lead to fair valuation of equity stocks which is beneficial for the proper allocation of resources in the economy.

___________________________________________________________________________________

 

Keywords: EPS, EBIT, ITR, ATR, D/E and P.E.


DOI:

Article DOI:

DOI URL:


Download Full Paper:

Download