Agreement in Stock Selection by Following Fundamental and Technical Analysis on Nifty Stocks

10 Pages Posted: 1 Sep 2013

See all articles by Vishvesh H. Raval

Vishvesh H. Raval

Vinimay Securities

Khyati Vyas

Rofel Arts and Commerce College

Date Written: August 30, 2013

Abstract

Merits of using fundamental research and technical research are different and these two different investment styles of investing in the stock market have its own following. The stock selection for investment portfolio which relies on the Fundamental Analysis have higher success rate than the models relying on Technical Analysis is the common view. Fundamental research focuses on identifying and analyzing the factors that influence security prices whereas technical analysis is concerned with analyzing market behavior. Given the sharp differences, it is often seen independent of each other and practitioners tend to favor one over the other but small group applies both. This research investigates the agreement in Stock selection following both styles on universe of Nifty Stocks. Fifty Investor participants took part in personal/group discussions, of their Stock selection style; for their portfolio in the cities of Vapi, Valsad, Vadodara and Ahmedabad. Stock pickers reported Fundamental and Technical style as independent of each other, with only moderate measure of agreement.

Keywords: Behavioural Finance, Psychology

JEL Classification: D31, D70, D80, E20, E30, G10, P36, R20

Suggested Citation

Raval, Vishvesh H. and Vyas, Khyati, Agreement in Stock Selection by Following Fundamental and Technical Analysis on Nifty Stocks (August 30, 2013). Available at SSRN: https://ssrn.com/abstract=2318660 or http://dx.doi.org/10.2139/ssrn.2318660

Vishvesh H. Raval (Contact Author)

Vinimay Securities ( email )

404 Pushpakunj
Apollo Compound
Vadodara, Gujarat 390002
India

Khyati Vyas

Rofel Arts and Commerce College ( email )

Vapi Namdha Road
PO-67
Vapi, Gujarat 396191
India

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