Dr Shashank M Hiremath

Dear Readers,   Greetings of the day!!   Elliott Wave Theory is a popular technical analysis approach used to analyse financial markets, including the Indian stock market. Developed by Ralph Nelson Elliott in the 1930s, the theory suggests that financial markets move in predictable patterns or waves.   According to Elliott Wave Theory, market price movements consist of alternating waves of expansion and contraction, which are driven by investor psychology and market sentiment. These waves are divided into two types: impulse waves and corrective waves.   Impulse waves, also known as motive waves, are the larger waves that move in the direction of the overall trend. They are further subdivided into five smaller waves, labelled as 1, 2, 3, 4, and 5. Waves 1, 3, and 5 represent the upward movement of the trend, while waves 2 and 4 are the corrective waves that retrace some of the price movement.   Corrective waves, on the other hand, are the smaller waves ...

Dear Investors,               While we invest or think of investing our money in the stock market for any duration, certain key aspects are to be considered. In this article, I have tried to explain the circumstances wherein many investors, including day traders make mistakes in their stock selection and keep shouting slogans on the entire stock market for making losses. After reading this article, you might find a reason, as to why I would like to invest or say no to the loss making companies for investments.  Just like a doctor, an investor should identify the pulse and symptoms of a loss making company and stay away from investing in such companies. Now, let us examine the important factors:   Why do investors or traders incur losses in stock market?   According to the research more than 95% of the Indian traders loose their capital in the stock market.   In the stock market, more than the news, the react...

Dear Investors,              Valuation of Stocks using Fundamental Analysis!!             While technical analysis is a widely used method for valuating stocks and predicting the future, fundamental analysis also becomes very important and critical many a times. It is not very easy to make money in the stock market by just doing technical analysis, reading charts, graphs etc all the time. Many researchers have proved that fundamental analysis is  EQUALLY IMPORTANT . Here in this write-up, I would like to discuss more about the fundamental analysis of stocks before investing.             Fundamental analysis is a stock valuation technique that uses financial and economic analysis to predict the movement of stock prices. The fundamental information to be analyzed should include a company's financial reports, non-financial reports such as growth estimates of demand for products and services,...