Importance of technical and fundamental analysis and other strategic factors in the Indian Stock market

This paper presents findings of an online questionnaire survey on the perceived importance of chartist/technical and fundamental analysis and the different strategic factors in the stock price forecasting by stock brokers of Bombay Stock Exchange, India. Stock brokers rely more on technical analysis vis-à-vis fundamental analysis at shorter forecasting horizons and rely more on fundamental analysis at longer forecasting horizons. Regarding the use of chartist / technical and fundamental analysis on seven forecasting horizons, four distinct forecasting styles among stock brokers could be identified through cluster analysis. Also our results suggest that Company Specific Factors was rated the most important and Other Factors was rated the least in stock price forecasting in long term by brokers.