The use of technical and fundamental tools and techniques in the Indian stock exchange

This paper presents findings of an online questionnaire survey on the perceived importance of chartist/technical and fundamental analysis and the usage of chartist methods and services and valuation techniques among 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. Among Chartist Methods and Services, Sentiment Indicators were most used and Chart Company or Analyst was least used by brokers. Among Valuation Techniques, Earnings Multiple Methods were most used and Dividend Discount Models were least used by brokers. Except between age group and sentiment indicators; computer graphics and services and gender, there is no association between any other demographic variables of brokers and the usage of chartist methods and services and valuation techniques.