Basic difference between the Fundamental and Technical Analysis is mentioned in this slides.

1. NAME- GAURAV KUMAR RAI
CLASS- MBA(FM)
SEMESTER- IV
SUBJECT- SECURITY ANALYSIS AND PORTFOLIO
MANAGEMENT
PROFESSOR- Prof. A. R. TRIPATHI
UNIVERSITY- BANARAS HINDU UNIVERSITY

4. FUNDAMENTAL ANALYSIS
Fundamental analysis is a strategy used for a comprehensive examination of the
fundamental factors that can impact the interest of a company, industry, and the entire
Economy. This analysis is used to assess the Intrinsic Value of a stock or a share by
computing the financial, economic and other factors (both quantitative and qualitative)
to comprehend the chances where the share’s value differs from the current market price.
If you are choosing this analysis, you must execute:
• Economic analysis
• Industry analysis
• Company analysis.

5. TECHNICAL ANALYSIS
Technical analysis, on the other hand, is a methodology that helps to predict the future
price of a stock or a share active in the market. All of this prediction is highly based on
the previous performance statistics of the stock.
And, for this specific purpose, the price changes of the stock are ascertained to
comprehend how the value will alter in the coming days. If using technical analysis,
there are three golden rules that you would have to keep in mind, such as:
• Prices discount every information that is available for the public
• Price movements will not be random, and trends behind the actions of price can be
implemented with the help of technical tools
• Price trends can repeat themselves.

6. Basis of difference between Fundamental
Analysis and Technical Analysis
• Objectives
• Function
• Relevance
• Decision making
• Focus On
• Form of Data
• Value of Shares
• Type of Trader
• Impact of external news
• Methodology

7. Fundamental Analysis
To identify the intrinsic value of
the stock.
Technical Analysis
To identify the right time to enter
or exit the market.

8. Fundamental Analysis
It is used for investment related
function.
Technical Analysis
It is used for Trading related
function

9. Fundamental Analysis
It is relevant for long term
investments.
Technical Analysis
It is relevant for short term
investments

10. Fundamental Analysis
Decisions are based on the
information available and statistic
evaluated.
Technical Analysis
Decisions are based on market
trends and prices of stock.
Decision Making

11. Fundamental Analysis
It focus on both Past and Present data.
Technical Analysis
It focus on Past data only.

12. Fundamental Analysis
In this data is sourced from economic
reports, news events and industry
statistics.
Technical Analysis
It this data is sourced from technical
tools like Point and Figures, Bar and
Line Charts, Moving Averages and other
Modern tools.

13. Fundamental Analysis
The fundamental analyst estimates the intrinsic
value of shares and purchases them when their
market price is less than the intrinsic value. He
sells the shares when the market value of shares
is more than the intrinsic value and earns profit.
Thus, he works on long-term basis.
Technical Analysis
The technician believes that there is no real value
to any stock. According to him, stock prices
depend on demand and supply forces which in
turn are governed by rational and irrational
factors.

14. Fundamental Analysis
It is preferred by long term position
trader.
Technical Analysis
It is preferred by the swing as well as the
short term day trader

15. Fundamental Analysis
It remain unimpacted by external
news.
Technical Analysis
It get impacted due to external
news.

16. Fundamental Analysis
It helps in examination of ongoing
industry trends, financial data, economic
outlook and the performance of
competitor companies.
Technical Analysis
It is used for examining the market
psychology as well as price movement.