10-Day Guided Course: Fundamental & Technical Stock
Analysis
Step-by-step instructions, examples, exercises, and visuals for Indian stock market beginners
Table of Contents
Day Topic Page
Day 1 Introduction to Stocks
Day 2 Financial Statements Deep Dive
Day 3 Interpreting Key Financial Ratios
Day 4 Qualitative Analysis & Moat
Day 5 Valuation Techniques Simplified
Day 6 Basics of Technical Analysis & Charts
Day 7 Indicators: MA, RSI & MACD
Day 8 Chart Patterns & Breakouts
Day 9 Advanced Tools: Bollinger & Fibonacci
Day 10 Building a Trading Plan & Risk Management
Day 1: Introduction to Stocks
What is a Stock?: Definition, ownership, and how shares represent company equity.
Example: Buying 1 share of ABC Ltd at ■100 makes you a small owner.
Common Mistake: Assuming price only goes up.
Exercise: List three reasons why stock prices might fall.
Day 2: Financial Statements Deep Dive
Balance Sheet: Assets = Liabilities + Equity. Shows company health.
Income Statement: Revenue, expenses; net profit calculation.
Cash Flow Statement: Operating, Investing, Financing cash flows.
Example: Calculate equity from sample asset/liability data.
Mistake: Ignoring negative cash flow signals.
Exercise: Identify two line items in each statement.
Day 3: Interpreting Key Financial Ratios
P/E & P/B Ratios: Price/Earnings and Price/Book in valuation context.
ROE & ROI: Return on Equity and Return on Investment meanings.
Debt Ratios: Debt/Equity, Interest Coverage signals.
Exercise: Compute P/E for a company with EPS ■5 and price ■150.
Day 4: Qualitative Analysis & Moat
Management Quality: Importance of track record and governance.
Competitive Advantage: Moat types: brand, cost, network effects.
Industry Trends: Macro factors impacting business.
Exercise: Research and note the moat of a chosen Indian company.
Day 5: Valuation Techniques Simplified
Discounted Cash Flow: Present value concept in simple terms.
Comparable Analysis: Peers-based valuation.
Margin of Safety: Buying below intrinsic value.
Exercise: Compare P/E of two similar companies.
Day 6: Basics of Technical Analysis & Charts
Chart Types: Line, bar, candlestick explained.
Support & Resistance: Drawing levels on price chart.
Volume Role: How volume confirms moves.
Visual Example:
Exercise: Mark support/resistance on the given chart.
Day 7: Indicators: MA, RSI & MACD
Moving Averages: Simple vs. Exponential; crossover signals.
RSI: Overbought/oversold indications.
MACD: Trend and momentum signals.
Exercise: Calculate a 5-day SMA on recent price data.
Day 8: Chart Patterns & Breakouts
Head & Shoulders: Reversal pattern identification.
Triangles & Flags: Continuation patterns.
Breakout Strategy: Entry and stop-loss placement.
Exercise: Identify a pattern on a sample chart.
Day 9: Advanced Tools: Bollinger & Fibonacci
Bollinger Bands: Volatility envelope use.
Fibonacci Retracement: Key retracement levels application.
Exercise: Apply Fibonacci on a trending move.
Day 10: Building a Trading Plan & Risk Management
Position Sizing: Risk per trade calculation.
Stop-Loss & Take-Profit: Setting realistic levels.
Review & Journal: Keeping a trade diary.
Exercise: Draft your risk management rules.
Glossary
Term Definition
Bullish Expectation of price rising.
Bearish Expectation of price falling.
Liquidity Ease of buying/selling an asset.
Volatility Degree of price variation over time.
