Equity Research: Fundamental and Technical Analysis

India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities to get high returns, and to save tax in honest ways. Equities are playing a major role in contribution of capital to the business from the beginning of capital markets. Since the introduction of the concept of shares, large numbers of investors have shown interest to invest in the stock market. In industries plagued with skepticism and a stock market increasingly difficult to predict and contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and Short Term Investor. The price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. The price at which an investor is willing to buy or sell depends primarily on his expectations. If he expects the security's price to rise, he will buy it, if the investor expects the price to fall, he will sell it. These simple statements are the cause of a major challenge in forecasting security prices, because they refer to human expectations. As we all know firsthand, human expectations are neither easily quantifiable nor predictable. If prices are based on investor expectations, then knowing what a security should sell for becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a security should sell for isn't important, it still is. But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove.