6.1 Why analysis ?


Stock market analysis is about the correct measurement of the trends of various stocks of the companies listed with the BSE, the NSE and other regional exchanges. As any other stock market, the Indian stock market is a volatile market too where the share prices of the companies are subject to changes at any point of time. This is quite obvious from the fact that major indicators like Sensex and Nifty change every few seconds. As an investor, you can therefore be confused. What drives such changes? The important task then is to pick the right choices from the ocean of stocks available for trade. Also, how do you decide whether it is a bull or a bear market? How do you figure out the trend in the market? What is the right time to invest in a particular stock?

The answer to all such questions is that you have to analyse the market and market trends along with the companies in which you are going to invest. Stock analysis is crucial when deciding to pick your stocks and evaluating your investment strategies. Generally, stock analysis is classified into fundamental analysis and technical analysis. While some investors use fundamental analysis, others use technical analysis to evaluate their stocks.

Rate this article:
Comments are only visible to subscribers.

Equity Research


Investment in securities market are subject to market risks.Read all the related documents carefully before investing.
Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.