Stock Market Analysis
This is reflected in a market indicator called an index, which tracks the performance of some of the more popular and steady stocks that are traded in that particular market.
Some of the most famous stock market indexes of the world are:
Footsie - London Stock Exchange
Dow Jones - New York Stock Exchange
Hang Seng - Hong Kong Stock Exchange
BSE Sensex - Mumbai Stock Exchange
Nikkei - Tokyo Stock Exchange
Nifty - National Stock Exchange of India
Stock market indexes have become particularly important in today's market economy, which is integrating very fast on a global scale. Traders do not confine trading in stocks to just one or two markets in their country of origin, but invest in a large number of markets around the globe.
With more and more investment companies developing global dimensions, stock markets around the world are integrating on a scale never before imagined. As a result, analysis of stock markets has become one of the main activities, covering a very large number of factors both within and outside the market. For instance, when the government of the country where the market is located announces a new policy measure aimed at deregulating a particularly stifling part of an industry segment, it may have a positive impact on the stock market. Because stock market analysts cannot anticipate such factors, their impacts do not come under the main purview of stock market analysis. However, most analysts do set aside some space for the impact of extraneous both positive and negative factors on the market.
Stock market analysis has become a highly specialized activity, limited to select groups of experts known as technical analysts. In most cases they are professionally trained in financial analysis and are reasonably familiar with the tools used to analyze a particular market. In certain other cases, they are economists or veteran investors with a special interest in stock market analysis and market economics. The number of factors that directly or indirectly impact stock markets are increasing rapidly, with more analysts digging deeper into the circumstances that influence stock market behavior. On the other hand, the integration of information technology in market analysis is increasingly meeting the challenge posed by the complexities of stock market analysis.
Some of the most important types of analysis affecting stock markets are:
- Fundamental Analysis
- Stock Market Analysis
- Stock Market Technical Analysis
- Index Momentum Analysis
- Stock Momentum Analysis
- Stock Chart Analysis
- Market Analysis
- Market Trend Indicators