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Investors' Awareness of Fundamental and Technical Analysis For International Journal of Innovative Technology and Exploring Engineering (IJITEE) ISSN: 2278-3075, Volume-8 Issue-9, July 2019 Investors’ Awareness of fundamental and Technical Analysis for Investments in Securities Market Jayalakshmi. R, N. Lakshmi Abstract: The role of investors in the securities market reveals the rising prominence of financial savings and also the II. REVIEW OF LITERATURE growth of industry and the economy. The focal point is to survey the investors’ awareness of the fundamental and technical Wiwik Utami (2017) conducted a case study on investors’ analysis for investment in the securities market. The study stock investment decisions in Indonesia. The result showed identified an analysis of the economy, industries and companies that the period of investment and experience influenced the as the three fundamental components that influence and affect method of security analysis adopted before investment the investors’ investment in the securities market. decisions. Technical analysis was mostly preferred by Keywords: securities market, investors, rising prominence, regular tradinginvestors for quick decision-making. financial savings & technical analysis. Prasaanna Prakash (2016) found that the retail investors were less aware of the various investment options and the I. INTRODUCTION protective measures taken by the government. A majority of Investment in the securities market needs analysis to the retail investors chose investments for a short duration. identify and select the right instruments and right time to The researcher suggested that the retail investors be given invest to reap high returns, which in turn, can increase the proper attention. Investors’ decisions were based on investors’ wealth. Based on the analysis, the investment psychological, emotional and behavioral factors. strategies have to be framed and portfolios constructed, Raghavendra Prasad (2016) found that 55% of the evaluated and revised from time to time. Fundamental respondents followed both fundamental analysis and analysis and technical analysis examine the securities technical analysis before making investment decisions. The individually or in groups. Fundamental analysis calculates study concluded that the print media and brokering agencies the intrinsic value of securities and the present values of played a significant role ininvestors’ investment decisions. cash inflows. It measures the macro-economic environment, Wellington Garikai Banga (2015) indicated that industrial competition and the performance of companies. It fundamental strategy and technical strategy turnedthe is performed by long term investors. On the other hand, a investors’ investment objective from safety to wealth technical analysis deals with the present and future price appreciation and augmentation ofthe value of holdings. The trends, the movements in the market and the market value of result showed that a security analysis provided the investors securities. Technical analysis is preferred by frequent traders with the skill to makeinvestment decisions more efficiently. in the market. The present study intends to identify the Suresh (2013) examined the security analysis for selection extent of awareness among investors about Indian securities of portfolio and revealed the strength of top down approach market and the factors influencing investment in capital of Fundamental analysis on three phases and tools of market. The perception of the investor’s aboutthe risks in technical analysis. The study found that Trend was the tool capital market investment will be analyzed. The study also mostly applied by the investors for technical analysis. Abdul focused on the attitude of retail investors towards the Shaik, et al. (2012) found that the retail equity investors securities market so as to identify the reasons behindthe were drawn more towards liquidity, quick returns, capital poor response of investors. appreciation and safety. The study concluded that fundamental analyses must be framed as the basisfor the development of investment objectives. Srinivasa Rao Kasisomayajula (2012) revealed that 39% of respondents lack awareness and 27% analytical skills in secondary market investments. The study concluded that individual investors faced problems due to lack of information and were dependent on brokering agencies. Dhiraj Jains and Nakul Dashora (2012) found that 47% of respondents were not able to forecast the capital market due to lack of market information. Vanita Tripathi (2009) examined the Revised Manuscript Received on July 06, 2019. investment strategies, perceptions and preferences of the Mrs. Jayalakshmi. R, Research Scholar in Commerce, Sri G.V.G investors of securities market and found that investors’ had Visalakshi College for Women, Udumalpet, Tirupur Dt, Tamil Nadu, India. shifted their investment Assistant Professor, Department of Commerce, Karpagam Academy of strategy from a purely Higher Education, Coimbatore, Tamil Nadu, India. Dr.N.Lakshmi, Associate Professor and Head, Department of technical analysis to Commerce, Sri G.V.G Visalakshi College for Women, Udumalpet, fundamental analysis while TirupurDt, TamilNadu, India. Retrieval Number: I8071078919/19©BEIESP Published By: DOI:10.35940/ijitee.I8071.078919 Blue Eyes Intelligence Engineering 2734 & Sciences Publication Investors’ Awareness of fundamental and Technical Analysis for Investments in Securities Market making decisions. Abdul Ansari and Samiran Jana (2009) IMPORTANCE OF FUNDAMENTAL proved that during an uncertain situation the ANALYSIS investors’decision-making process had psychological biases. INDUSTRIAL ANALYSIS Only rational traders used both the analyses as tools for ECONOMIC ANALYSIS constructing portfolios. SomSankar Sen and Santanu kumar COMPANY ANALYSIS Ghosh (2008) have carried out an empirical study on the IMPORTANCE OF TECHNICAL ANALYSIS impact offive selected macroeconomic variables on securities market Liquidity of two premier stock exchanges of India. The study clearly indicates asignificant positive V. THE IMPACT OF GENERATION GAP ON impact of all the independent variables on the market SECURITY ANALYSIS liquidity. III. STATEMENT OF THE PROBLEM The study found that generation gap among the respondents The Indian securities market is significantly influenced by had an impact on Awarenessand Importance of Fundamental the activitiesof financial institutions. Even thoughthe and Technical Analyses. Since there were five groups in the operation of these institutions isconfined to a small group of questionnaire comprisingthree groups based on generation shares, itsimpact is often quite pervasive. A significant gap to compare their opinion on the basis of Means Analysis number of investors lack professional expertise, and so the of variance technique, ONEWAY ANOVAwas followed. performance of the securities market is determined and H0: Respondents of different generations give dominated by a few large, wealthy playersand the similaropinion on Awareness, Importance forFundamental technicalities of securities market operators. So, the and Technical Analyses. H1: Respondentsof different awareness among the general public about the fundamental generations do not give similar opinion on Awareness, and technical analyses for securities market investment have Importance for Fundamental and Technical Analyses. to be analyzed. Hence, the present research work attempts to analyze investor awareness of fundamental and technical Mean Value and F (Anova) Test Based on Generation analyses for securities market investments. IV. RESEARCH METHODOLOGY Genera Awarene Importance of Import The present research work is descriptive in nature with a tion ss Fundamental Analysis ance portentacceptance in the current scenario. This study is Econo Industr Compa ofTech carried out to describe the investors’ awareness mic ial ny nical ofFundamental and Technical analyses for investment in Analys securities market instruments. It also makes an attempt is toexplain the importance of Economic, Industrial and 1965 – 23.1563 10.656 28.156 51.687 31.312 Company analyses. The populationof investorsin securities 1976 20.3279 3 3 5 5 market is very large, so it was decided to adopt “Convenient 1977 – 22.0000 11.229 26.672 47.590 28.868 Sampling”.Questionnaire was prepared in consultation with 1995 5 1 2 9 experts. Primary data were gathered from 100 respondents. After 10.000 23.000 41.000 26.000 The collected data have been analyzed using Z test and 1995 0 0 0 0 ANOVA. To ensure the reliability and validity of data ‘F’ 5.220 0.612 2.644 8.835 3.627 reliability and normality test were applied. ratio Signifi 0.007 0.544 0.076 0.000 0.030 Objectives cance To study the level of awareness and significance of Remar Significa Not Not Signifi Signifi Fundamental and Technical Analysesamong investors for k nce Sig Sig cance cance investments in securities markets. Research Hypothesis Respondents with varying personal profileshave almostthe same level of awareness of, and give similar importance to, Fundamental and TechnicalAnalyses for investments in securities market. Framework Of The Study Framework of the study wasFundamental analysis which constitutes the Economy, Industries andCompaniesand Technical Analysis. AWARENESS Retrieval Number: I8071078919/19©BEIESP Published By: DOI:10.35940/ijitee.I8071.078919 Blue Eyes Intelligence Engineering 2735 & Sciences Publication International Journal of Innovative Technology and Exploring Engineering (IJITEE) ISSN: 2278-3075, Volume-8 Issue-9, July 2019 *The mean difference
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