A STUDY ON FINANCIAL

MARKET THROUGH
FINANCIAL AND TECHNICAL
ANALYSIS
SUBMITTED BY: Manpreet Bajaj
CLASS: BBA V Morning B
ENROLMENT NO.: 00415901721
NAME OF THE MENTOR : Mrs Pratibha Arora
 INTRODUCTION
In an era defined by unprecedented financial complexities and rapid market shifts, the
importance of informed decision-making in the financial markets cannot be overstated.
Investors, traders, and financial professionals are continually seeking better ways to navigate
this dynamic landscape, and one avenue that has proven invaluable is the fusion of financial
and technical analysis. This study embarks on a journey to explore the intricate world of
financial markets, emphasizing the role of financial and technical analysis, with a special focus
on Stocnerv Learning Private Limited as a reference point. The Pinnacle of Financial Expertise:
Stocnerv Learning Private Limited Stocnerv Learning Private Limited stands as a testament to
the power of knowledge, experience, and innovation in the financial sector. With its stellar
reputation and commitment to financial education, Stocnerv has emerged as a pioneering
institution, offering a wide range of courses, seminars, and resources designed to empower
individuals in their financial endeavors. This institution serves as an ideal reference point for
our study, showcasing how the principles of financial and technical analysis can be harnessed
effectively. The Dual Lenses of Financial Analysis: 1. Financial analysis serves as the bedrock
upon which sound financial decisions are made. It involves a meticulous examination of
financial statements, economic indicators, and qualitative factors, enabling investors to gauge
the intrinsic value of an asset or investment. Key components of financial analysis include: 2.
Fundamental Analysis: Fundamental analysis, a cornerstone of financial expertise, scrutinizes
the financial health and performance of companies, industries, or economies. It relies on the
examination of financial ratios, income statements, balance sheets, and cash flow statements
to uncover the true worth of an asset. 3. Economic Context: Incorporating macroeconomic
factors such as GDP growth rates, inflation, and interest rates is integral to understanding the
broader economic context that shapes investment decisions. 4. Valuation Techniques: Financial
analysts employ various valuation techniques, including discounted cash flow (DCF) analysis
and price-to-earnings (P/E) ratios, to estimate the fair value of assets or securities.
 INTRODUCTION
Navigating Market Dynamics with Technical Analysis: 1. In contrast, technical analysis delves into
market behavior, price charts, and historical price data. It operates under the premise that market
prices already incorporate all available information, and price patterns tend to repeat over time.
Key elements of technical analysis encompass: 3 | P a g e 2. Price Chart Analysis: Technical
analysts harness price charts to identify trends, support and resistance levels, and patterns that
can offer insights into future price movements. 3. Indicators and Oscillators: Utilizing technical
indicators like moving averages, relative strength index (RSI), and moving average convergence
divergence (MACD) allows traders to make well-informed decisions based on market momentum
and overbought/oversold conditions. 4. Candlestick Patterns: Candlestick patterns are
instrumental in discerning market sentiment and identifying potential reversals or continuations
of trends. The Symbiosis of Financial and Technical Analysis: In an ever-evolving financial
landscape, the synergy between financial and technical analysis has become increasingly evident.
While fundamental analysis provides the foundation for long-term investment strategies by
assessing the intrinsic value of assets, technical analysis excels in timing entry and exit points,
optimizing trading strategies, and managing risk in the short term. This study seeks to illuminate
how the integration of these analytical approaches can lead to more informed and comprehensive
decision-making within the financial markets. Through the lens of Stocnerv Learning Private
Limited's expertise and experience, we aim to showcase practical applications and strategies that
demonstrate the synergy between financial and technical analysis. In the forthcoming chapters,
we will delve deeper into methodologies, tools, and real-world examples, providing an insightful
guide to navigate the multifaceted world of financial markets with confidence and competence.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
Stock market prediction is one of the most challenging
problems which has been distressing both researchers and
financial analysts for more than half a century. To tackle this
problem, two completely opposite approaches, namely
technical and fundamental analysis, emerged. Technical
analysis bases its predictions on mathematical indicators
constructed on the stocks price, while fundamental analysis
exploits the information retrieved from news, profitability,
and macroeconomic factors. The competition between
these schools of thought has led to many interesting
PICASSO 2019 achievements, however, to date, no satisfactory solution has
been found. Our work aims to combine both technical and
fundamental analysis through the application of data
science and machine learning techniques. In this paper, the
stock market prediction problem is mapped in a
classification task of time series data. Indicators of technical
analysis and the sentiment of news articles are both
exploited as input. The outcome is a robust predictive
model able to forecast the trend of a portfolio composed by
the twenty most capitalized companies listed in the
NASDAQ100 index.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
The stock market is a key pivot in every growing and thriving
economy, and every investment in the market is aimed at
maximising proft and minimising associated risk. As a result,
numerous studies have been conducted on the stock-market
prediction using technical or fundamental analysis through
various soft-computing techniques and algorithms. This study
attempted to undertake a systematic and critical review of
about one hundred and twenty-two (122) pertinent research
works reported in academic journals over 11 years (2007–
2018) in the area of stock market prediction using machine
Nti 2020 learning. The various techniques identifed from these reports
were clustered into three categories, namely technical,
fundamental, and combined analyses. The grouping was
done based on the following criteria: the nature of a dataset
and the number of data sources used, the data timeframe,
the machine learning algorithms used, machine learning task,
used accuracy and error metrics and software packages used
for modelling. . The results revealed that 66% of
documents reviewed were based on technical analysis;
whiles 23% and 11% were based on fundamental
analysis and combined analyses, respectively.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
The stock market is a key pivot in every growing and thriving
economy, and every investment in the market is aimed at
maximising proft and minimising associated risk. As a result,
numerous studies have been conducted on the stock-market
prediction using technical or fundamental analysis through
various soft-computing techniques and algorithms. This study
attempted to undertake a systematic and critical review of
about one hundred and twenty-two (122) pertinent research
works reported in academic journals over 11 years (2007–
2018) in the area of stock market prediction using machine
Shah 2019 learning. The various techniques identifed from these reports
were clustered into three categories, namely technical,
fundamental, and combined analyses. The grouping was
done based on the following criteria: the nature of a dataset
and the number of data sources used, the data timeframe,
the machine learning algorithms used, machine learning task,
used accuracy and error metrics and software packages used
for modelling. . The results revealed that 66% of
documents reviewed were based on technical analysis;
whiles 23% and 11% were based on fundamental
analysis and combined analyses, respectively.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
Every investor is advised to have enough knowledge about
the stock market before making any investment decisions.
Analysis of capital market can be done either by
Fundamental analysis or by Technical analysis. This paper
aims to study on Fundamental analysis of selected IT
companies listed at NSE. Fundamental analysis is studied
in three parts. Economic analysis deals with fundamental
factors like GDP, IIP, fiscal deficit, inflation, current account
deficit etc. Industry analysis Indian IT sector is analyzed
based on entry barriers, type of industry, government
Silpa 2017 interference, Porter’s five force model. Finally, Company
analysis deals with various ratios such as dividend payout
ratio, EPS, P/E ratio, Debt-Equity ratio are used. It also
focuses on the calculation of Intrinsic value of shares and
compared with Market value. If intrinsic value is greater
than market value the share is said to be undervalued
whereas if market value is greater than intrinsic value, the
share is overvalued. From the study Wipro, TCS and
Infosys shares are undervalued and suggested to buy and
hold the shares.
 REVIEW OF LITERATURE
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NAME OF THE AUTHOR FINDINGS
PUBLICATION
To assess stock market informational efficiency
with minimal data snooping, we take the view
of a statistician with little knowledge of finance.
The statistician uses techniques like least
squares to estimate peer-implied fair values
from the market values of replicating portfolios
with the same accounting statements as the
company being valued. Divergence of a
Bartram 2017 company’s peer-implied value estimate from its
market value represents mispricing, motivating
a convergence trade that earns risk-adjusted
returns of up to 10% per year and is
economically significant for both large and small
cap firms. The rate of convergence decays to
zero over the subsequent 34 months.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
Stock market is for local public to invest their
money in companies and get their shares. If ‘A’
person wants to get shares of SBI Bank, stock
market will provide him a seller who wants to sell
his stock. We have created this project for
beginner to help them for prediction of stock. We
have considered 3 major factors like Technical,
Fundamental & News. In Technical analysis we
Sharma 2021 used 44 moving average, as it forms average of 44
days closing candle average. In fundamental we
have used 3 basic rules of analysis, which are used
by many investors and they show long term vision
of company and their internal management.
News plays an important factor to dump or rise of
share price, as is plays with people sentiments.
Using these 3 predictions a beginner can sort list
of stock which he wants to buy.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
This article reports the results of a questionnaire
survey in June/July 2010 on the use of Fundamental
and Technical analysis by brokers/fund managers in
Indian stock market to form their forecasts of share
price movements. The findings of the research
reveal that more than 85 per cent of the
respondents rely upon both Fundamental and
Technical 8 | P a g e analysis for predicting future
price movements at different time horizons. At
Venkatesh 2011 shorter horizons there exists a skew towards
reliance on Technical analysis as opposed to
Fundamental analysis. But the skew becomes
steadily reversed as the length of horizon
considered to be extended. Technical analysis is
considered slightly more useful in forecasting
trends than Fundamental analysis, but
Fundamental analysis is significantly more useful
while taking long positions in the market.
 REVIEW OF LITERATURE
YEAR OF
NAME OF THE AUTHOR FINDINGS
PUBLICATION
Money is the one thing that people take
more seriously than their health. Retail
investors' decisions on how to invest/trade
their money are influenced by their
behaviour and emotions. The goal of this
research is to learn more about the factors
that impact retail investors' decision to
Singh 2023 invest in capital markets. Researchers can
eventually give personalized and normative
recommendations to investors as well as
the financial planning sector in successfully
and efficiently dealing with clients by
better understanding what leads retail
investors to adopt a specific investing style.
 NEED OF THE STUDY
The rationale for conducting a study on the topic "A Study on Financial Markets Through Financial and Technical Analysis with
Reference to Stocnerv Learning Private Limited" is multifaceted and grounded in several compelling reasons: 1. Relevance in Financial
Education: Stocnerv Learning Private Limited is recognized for its expertise in financial education and training. Studying financial and
technical analysis within the context of this institution serves as a relevant case study. It allows us to assess how financial knowledge
and strategies are imparted to individuals who seek to navigate the intricacies of financial markets effectively. Understanding how
Stocnerv utilizes these analytical tools can provide valuable insights for improving financial education and training programs. 2.
Meeting the Needs of Investors: In an era where individuals are increasingly responsible for managing their financial futures, there is a
growing need for accessible, comprehensive, and effective financial education. By studying financial and technical analysis in the
context of Stocnerv, we can evaluate whether such educational institutions are adequately preparing investors and traders to make
informed decisions in financial markets. 3. Enhancing Investment Decision-Making: Financial and technical analysis are vital
components of investment decision-making. Investors and traders employ these methodologies to assess the potential risks and
rewards of various investment options. By conducting this study, we can shed light on how Stocnerv's approach to financial and
technical analysis enhances the ability of its students and clients to make sound investment decisions. 4. Real-World Applications:
Stocnerv Learning Private Limited is likely to integrate real-world examples and case studies into its educational programs. By
referencing Stocnerv, this study can explore how financial and technical analysis are applied in practical, everyday market scenarios.
This real-world perspective can make the study more relatable and actionable for aspiring investors and traders. 5. Academic and
Practical Insights: Combining academic research with practical insights from Stocnerv provides a comprehensive view of the subject
matter. This approach can be valuable not only for individuals seeking to apply these techniques but also for researchers and
academics looking to advance the field of financial analysis. 6. Holistic Understanding of Financial Markets: Financial markets are
influenced by a multitude of factors, including economic indicators, investor sentiment, and market psychology. This study aims to
provide a holistic understanding of financial markets by considering both fundamental and technical analysis. Such an approach can
help individuals better navigate the complexities of modern financial markets. 7. Contributing to the Field: Research in the field of
financial analysis is an ongoing endeavor. By studying financial and technical analysis within the context of Stocnerv Learning Private
Limited, this study can contribute to the body of knowledge in finance, potentially uncovering new strategies, insights, or best
practices that can benefit investors and educators alike
 RESEARCH
METHODOLOGY
• Research Objective
1. To Study the fundamental analysis of the Financial Markets
2. To Study the Technical analysis of the Financial Markets
• Research Design
The study is descriptive in nature and of quantitative approach.
• Sources of Data Collection
Primary Data is collected
• Time Period of the Study
45 days as the duration of the internship
• Analytical Tools
The collected data will be analysed using Excel
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prediction. Expert Systems with Applications, 135, 60-70.

2. Nti, I. K., Adekoya, A. F., & Weyori, B. A. (2020). A systematic review of fundamental and technical analysis of stock market predictions.

Artificial Intelligence Review, 53(4), 3007-3057.

3. Shah, D., Isah, H., & Zulkernine, F. (2019). Stock market analysis: A review and taxonomy of prediction techniques. International

Journal of Financial Studies, 7(2), 26.

4. Silpa, K. S., Mol, J. A., & Ambily, A. S. (2017). A study on Fundamental Analysis of Selected IT companies Listed at NSE. Journal of

Advanced Research in Dynamical and Control Systems, 9(5), 1- 10.

5. Bartram, S. M., & Grinblatt, M. (2018). Agnostic fundamental analysis works. Journal of Financial Economics, 128(1), 125-147.

6. Sharma, L., Patil, P., Choudhari, S., Sangle, D., & Reddy, V. P. K. (2021). Fundamental & Technical Analysis of Stock for Beginners.

International Journal of Innovative Science and Research Technology, 6(5), 1334-1339.

7. Venkatesh, C. K., & Ganesh, L. FUNDAMENTAL ANALYSIS AS A METHOD OF