Fundamental Analysis Versus Technical Analysis-A Comparative Review

In the equity market, the process of stock selection for the purchase decision is a complex task as there are many stocks available in the market for purchase. The two main decision making tools employed widely in this process are fundamental analysis and technical analysis. This paper discusses the history of each of these tools and also the main components involved in each decision making tool. Fundamental analysis involves economy analysis, industry analysis and company analysis of the stock intended for purchase. Technical analysis involves the employment of several technical indicators like MACD, OBV, Moving average, etc on the past stock market prices. The merits and demerits of each of the tools are also discussed.