Fundamental Analysis and Technical Analysis

Fundamental analysis and technical analysis are two different methods of analyzing the stock market. They have different goals, approaches, and advantages. Here is a brief explanation of why they are needed for stock market investors and traders. Fundamental analysis aims to find the intrinsic value of a company. This method seeks out sare strong but may have a low market value.

Fundamental analysis is needed for stock market investors who want to:
Invest for the long term, based on the growth potential and profitability of a company. Technical analysis differs from fundamental analysis, in that traders look to statistical trends in the stock’s price and volume. Technical analysis uses stock charts to identify patterns that might suggest where the price is headed.
Technical analysis is needed for stock market traders who want to:
Trade for the short term, based on the price movements and momentum of a stock. The best method depends on the individual’s goals, risk tolerance, time horizon, and trading style. This course will explore various ways to combine fundamental and technical analysis using practical examples

Key Features

• Industry-Recognized Certification - The certification will enhance your profile and make you a top choice among employers. Earn a certificate of completion from NSE Academy & Empirical Academy.

• Case study of the Nifty stock and strategy for Trading - Case studies showing you exactly how technical analysis can fuel pattern recognition, set price targets and plan your exit strategy

• Financial Industry Professionals - Professionals within the industry prioritizing curriculum and training specific to financial institutions.

• Practical usage of Technical analysis - Develop trading strategies based on technical theories and use in the NSE Smart application.

• Acquire knowledge in the corporate world - Acquire skills to do comprehensive research on the performance of companies

• Lifetime Course Access - Get lifelong access to every course you enroll in and take advantage of mentoring opportunities at your convenience.
  
   

Course Curriculum

• SEGMENT ONE ( 2 hours )
  • Introduction of Fusion Analysis as a Comprehensive Investment Strategy for Stock Markets right now.
  • First Step: TECHNICAL ANALYSIS – understanding its Pros & Cons
  • Difference between Technical and Fundamental Analysis
  • Philosophy of Technical Analysis: Dow Theory and Elliott Wave
  • Trendlines
  • Support and Resistances
  • Types of Charts
  • Japanese Candlestick Patterns – Some important pattern

• SEGMENT TWO ( 2 hours )
  • Classical Western Chart Patterns
  • Double Top & Double Bottom
  • Head & Shoulder Top & Bottom
  • Triangles (Symmetrical, Ascending, Descending & Broadening)
  • Wedges, Flags & Pennants
  • Gap Theory – All types of gap

• SEGMENT THREE ( 2 hours )
  • Basic Indicators & Oscillators
  • Categorization of Technical Indicators
  • Trend Indicators – Moving Average
  • Sequence and Types of Moving Averages
  • Momentum – Relative Strength Index
  • Moving Average Convergence Divergence
  • Volume – Money Flow Index
  • Volatility – Bollinger Bands
  • Fibonacci Retracements and Golden Ratio

• SEGMENT FOUR ( 2 hours )
  • Second Step: BEHAVIOURAL FINANCE and psychological considerations
  • Understanding Behavioral Finance & Its Application in investing (vs.Traditional financial models which presumed investors are always Rational)
  • Investing Styles – Value vs. Growth
  • Market Psychology and Sentiments
  • Efficient Market Hypothesis
  • Heuristics and biases – Various types (Approx. 10+ like Availability Heuristic, Loss Aversion, Belief Perseverance, Confirmation Bias, Framing, Representativeness, Overconfidence)
  • Herd Mentality
  • Expected Utility vs Prospect Theory
  • Market Bubbles & Crashes
  • Importance of checklist and ways to overcome biases in investing

• SEGMENT FIVE ( 2 hours )
  • Third Step: FUNDAMENTAL ANALYSIS – Qualitative and Quantitative Analysis
  • Evaluating Sector & Industry Structure – Top down vs. Bottom Up
  • Understanding Competitive Advantage and how it affects companies
  • Evaluating Management and understanding Corporate Governance
  • Understanding Financials – Income Statement
  • Understanding Financials – Balance Sheet & Cash Flow Analysis
  • Evaluating a company and importance of News and Events
  • Major Economic Indicators to look at
  • How to read through an Annual Report

• SEGMENT SIX ( 2 hours )
  • Ratio Analysis, i.e. profitability ratios, activity ratios, liquidity ratios, solvency ratios and valuation ratios (All major ratios approx. 30+)

• SEGMENT SEVEN ( 2 hours )
  • Some Fundamental Valuation Methods (DCF, FCF, DDM, EV/EBITDA, Liquidation Value approaches – Only Basics)
  • Understanding Stock Selection
  • Using screeners & filters – Scanning the efficient stocks using Screener.in etc.

• SEGMENT EIGHT (1 hour)
  • Blending Technical, Behavioural and Fundamental theories and inputs together to formulate effective investment strategies that really work – Fusion