Indian stock markets in sync with world stock markets
The global economic markets are in a constant state of flux and this has also affected the Indian stock market. In the current scenario the Indian stock market analyst has to closely monitor the economic conditions and the way the stock markets are performing in the other major countries of the world. As was expected by the Indian stock market analyst, the announcement by the FED in the US led to a volatile reaction in the Indian stock markets. The Stock market has been trading in the band of 16200 – 16700 (BSE Sensex) recently and the volatility is enormous.
A stock market trader needs to be aware of all conditions that can affect the stocks. They have the complete knowledge of stock market investment basics and will buy and sell shares for the clients on the basis of their knowledge and experience. There are many national and regional stock indices where investors can buy and sell shares. The prominent ones are BSE Sensex and the NIFTY index.
Analytical tools used for prediction of price movement
The Indian stock market analyst will essentially use 3 types of analytical tools to predict the movement of stocks. These are known as fundamental analysis, quantitative analysis and technical analysis. Predicting the movement and the outcome of the stocks is done through a combination of all three. There are stock market technical analysts that would study the charts of stocks and look for patterns as there are patterns in investment that can prove to be beneficial for their clients.
Work of a Stock market technical analyst
The stock market technical analyst will study the price patterns of the stocks to predict the future trend and prices. They will advise their clients on the best price at which they should buy the stocks, the duration for which they should hold the stocks and the price band at which they should sell the stocks. T the technical analysis of the stocks is done through studying the historical price patterns for the stocks. In its pure form, the technical analysis that is done by the analyst will ignore any economic conditions that will affect the stock, market conditions or the economy in general.
The stock market technical analyst is also known as chartists since they will follow the patterns that are simulated on the charts. Various chart patterns are referred to as head and shoulders, rectangles, wedges, triangles and pennants. Patterns will also show the historical price barriers, the support prices and also the resistance prices for the stocks. Since stocks at some point will follow the reversal, the charts are used for predicting the price at which the stock will show the reversal trends. The reason for studying the price trends over a period of time is rooted firmly in the investor behavior that history tends to repeat itself.
Stock market technical analyst work with fundamentalist as many factors such as industry behavior, economic conditions, political framework and management decision will also affect the price of the stock.
