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Technical Analysis VS Fundamental Analysis

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  Technical Analysis VS Fundamental Analysis In previous blogs we have seen about Fundamental Analysis and Technical Analysis in this blog we will see the difference and we will compare both with a different perspective In the fundamental analysis, we do a fundamental check of the company based on past performance but there are some limitations we can forecast the performance of the company but we can’t be sure and it’s very hard to give surety about the market buyers and sellers we can predict the future trend of the market for long term. If we want to invest in the short term we can’t able to predict the short-term trend of the market with only fundamental analysis. But if we consider technical analysis based upon charts, indicators, Patterns in different time frames then we can predict the market sentiments in shorter to the long-term trends in the market so we can say if the company is strong fundamentally it will reflect it on the market demand of share for long term but it can be
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Technical Analysis

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  Technical Analysis  In a previous blog we have seen the meaning of Fundamental Analysis in today’s blog we will see the meaning of Technical Analysis we have seen that we are going through a deep analysis of a company to invest for the long term which includes business model and company performance but in Technical Analysis We are trying to understand Long Term and Short Term Trend of Investments in that company. Which will give us a brief about short term and long-term sentiments of the market. Technical Analysis includes chart reading with different Forecasting methods developed by trading terminals. in which we use Weighted Moving Average, Moving Average, Vwap, RSI (Relative Strength Index), Volumes, etc. all these are the live market indicators. but these indicators are lagging indicators because they show the effect after the scenario. So we can predict the momentum for the short term based upon live market sentiment indicators, if we observe these indicators in the different ti
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Fundamental Analysis

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  Fundamental Analysis  We have seen Different concepts of The stock market in this series we have seen how we can grab opportunities available in the stock market. so today we will discuss fundamental Analysis. Many of us heard this term very usually in the stock market. Fundamental means forming a necessary base or core so, in this analysis, we have to understand the base or core of the company. we have to check the Asset Quality of the company, Business model, Growth of the company in terms of valuation, Revenue and Profit for last three year and future opportunities and threats for the company’s Business Model in future. If a company diversifying its business into different business models we have to see the vision of promoters and promoters holding with changing approach. If the company indulged in the international market, then which policies of the government will affect the business & From Company’s inventory management to the endpoint of the supply chain with current a
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Investment Awareness PART 2

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                    Rajarambapu Institute of Technology, Rajaramnagar Department of Management Studies (MBA) Finance Club Blog No. 19 __________________________________________________________________________________ In India the financial system has been developing rapidly in the last two decades and the proportion of financial investment has been growing. Thus, savings in the financial form of the household sector has increased from around 30% in the 1950s to 45% to 55% in recent years. The Domestic Savings of the household sector have seen a considerable increase from Rs 24,74,913 crore in 2015-16 to  Rs 34,46,760 crore in 2018-19 . The Gross Financial Savings during 2015-16, 2016-17, 2017-18 & 2018-19 were Rs 14,96,232 crore, Rs 16,14,677 crore, Rs 20,61,033 crore & Rs 19,95,706 crore. As the proportion of GDP total savings of household sector in financial form is about 12% of GDP during 2001 to 2006. In the fiscal year 2018, the household sector gross savings i
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Investing PART I

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Investing PART I Now we have seen different methods and concepts in the stock market that will help us to gain profit from the financial market, so in this blog, we will discuss the difference between a good investment and a bad investment. As we all know investment in the stock market is risky and it's nearly impossible for everyone to take this risk and study the balance sheet of the company constantly track the improvement as well as the performance of the company. if we compare risk factors as per safety point of view then we always rank equity market at last place comparing with Bank FD, Bond Investment, Dept. fund investment, etc. But in terms of reward, we can rank them exactly in the opposite sequence. with good study and proper knowledge if we decide of investing then we will be a success with unexpected returns on our investment. If tracking the market is not possible for you then some of you will go for Mutual fund investment. But in this case, you will not be an actual
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Block Deal & Bulk Deal in indian Stock market

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 Block Deal & Bulk Deal in Stock market As we are discussing different events in Primary and Secondary Market and how we can able to analysis the different Opportunities generated in the Indian stock market. If we observe all these events very closely with a logical approach, then we can surely able to be a part of the money-making process by the following capitalism. Today we will see one more event of the stock market to get direct and indirect benefits from the stock Market We will discuss Block Deal & Bulk Deal. As every one of us is aware of the retail and wholesale market in the regular market likewise in the stock market if any of promoter or any stockholder want to dissolve their stock holding from any company then with the permission of SEBI they can sell their stocks in this bulk deal or block deal facility. It will not affect us much as Like other events but we can able to know the reason behind this bulk deal the rate offered in this deal will be discounted as
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OFS (Offer for Sale) for fund raising

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  OFS (Offer for Sale)  In previous blogs we have seen the concepts of IPO, FPO, and QIP Now we will see the OFS (Offer for sale). In previous years Promoters used to have more than 95-98 % shares but Now as per SEBI’s Guideline promoters can hold a maximum of up to 75% before this promoter can able to manipulate the share prices as there is less liquidity in the market and can have full control on share prices. If any of the promoters have more than 75% stake in that market, then by using this OFS facility can able to dissolve their stake holdings. Institutional investors with other big investors have a 25 % Quota, and 10% is for retail investors, retail investors can invest but not more than 2 lakh rupees individually . promoters can bring this OFS or the people having more than 10 % holding can bring this OFS to market if promoters are bringing OFS then they can’t participate in this OFS but any other shareholder than promoters are bringing OFS then promoters can participate in th
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QIP (Qualified institutional placement) & FPO (Follow on public offer)

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 I n the last blog, we have seen how companies are getting funds from the primary market through IPO but now we will see the different ways for fund generation so we will discuss QIP (qualified institutional placement). Companies can raise funds with help of this QIP. Only qualified institutional buyers can invest in this QIP. When companies need working capital they always prefer to go with QIP which will reduce the time required to raise funds and complications in the documentation. In the past when companies need to improve or expand the business they always used to prefer ADR (American Depository Receipt), GDR (global depository receipt), FCCB (foreign currency convertible bonds). But when they used to get it in foreign currency for repayment they have to pay it in foreign currency and this will always depend upon the exchange rate of foreign currency to give a solution for this problem in 2006 illegal framework is introduced through QIP it has its own advantages like quick trans
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Initial public offering (IPO Part II)

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IPO Part II In the last Blog, we have seen about how the company goes through the scrutiny of SEBI and how they can able to raise funds from the primary market with the help of a banker. While applying for IPO we need to consider all the aspects mentioned in “Draft Red hearing prospects “so that we can able to understand the business model of that company with future projection to invest in that company for the long term. consider if you got allotted a share in your portfolio you will get notified by your broker and if you applied individually then you will get notify with a text message on your registered mobile number or you check it online on company’s website once you get conformation you need to check the actual share available on DMAT account. Once the company completes allotment then they declare the listing date on NSE and BSE or maybe on a specific exchange.  in previous days listing used to be at 9.00 am but nowadays this time has shifted to the 10.00 am. in this listing proc
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