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Buying shares

Bhavesh (Accounts) (899 Points)

18 May 2014

Hi Freinds, can anybody tell me what factor has to be look into for buying the shares fundamentally and techincally?

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3 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 18 May 2014

Hmmmm.....

This is a very tough question to ask. Stock market analysis by itself is a huge subject. All I can say fundamentals are about the company, the kind of product they manufacture, the size of the company and so on... Technical analysis is based on the movements in the stock market.

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Bhavesh (Accounts) (899 Points)
Replied 18 May 2014

Hi Praveen, Thanks for your answer can you tell me in details what fundamentally has to look into for eg. What should one see in the Balance Sheet, What one has to see in the P&L A/c., whether the share is worth buying in the current scenario. Can you please tell me in details for fundamentally purchase of shares, so it can be invested wisely. Thanks once again.

praveen (Chartered Accountant) (6971 Points)
Replied 18 May 2014

Fundamentals depends upon industry to industry. You need to see what product is the company dealing in and what will be the effect in the days to come. For example infosys get huge revenue through exports. If you see that there is an RBI policy coming up or due to some reasons the exchange rate is going to increase, then you can predict about the company's future and then accordingly you can invest.

You need to understand the functions of the company as well as the industry

For more information/news/comments please visit https://capraveenmr.wordpress.com/ or email me at mrpraveen @ live.com