Market Sentiment
While doing stock market analysis, the basic factors considered mostly are fundamental and technical. Solid fundamentals help to make a sound long term portfolio and technical indicators are generally used as the point to enter or exit at specific price.
With the widening and diversification of capital markets more and more investors join the capital markets directly and indirectly and this large numbers even with small investments make a big chunk of investment world. This diversified investors base has given strength to one factor that usually discussed less but play a major role in equity or financial markets analysis and this factor is the 'Market Sentiment'
The short term investing or trading strategy is influenced by the factor of sentiment in most of the cases.
In nutshell, the factor of sentiment has the ability to affect the stock price movements not less than fundamental and technical factors even though this is the short term phenomena.
"It is vital to consider the importance of the sentimental factor, while reviewing the Stocks fundamentally or technically."
