@ChaitanyaC

I assume that your question is ” Can investors do short term (or medium term) trading without the use of technical charts?”

I know a lot of fellow investors who do not use charts, (or are not well versed in charts) but are clued in to the goings on in the companies they track. They have clear cut focus on how to play the situation and are aware of the near term triggers that could affect short term price movements.

These kind of investors track stuff like the raw material prices, finished product prices, exports data, scuttlebutt, and some of them are very well networked. They are good at playing quarterly results, or a turnaround situation etc.

I met a few investors who used to play on a situation that is not so common in markets. They used to track selling in a specific company by big funds, HNIs, FII/DIIs, etc and when the selling reached the fag end, they played for the rally that ensues once the selling pressure abates.

Yet another set of investors tend to buy into stocks that are being bought by fancy names (investors) and try to coattail them.

Some value investors determine the replacement cost of a company and end up buying the stock at a discount to that value that sometimes markets offer and play for the resulting bounce.

There are various ways a pure fundamental investor can play the game of short tem trading. But by nature I have seen that the vast majority of fundamental investors take a medium to long term call.

All said and done, there is no harm in having a look at price chart of the company you want to involve yourself with, even though you do not know too much of charts. A brief look atleast provides a rough idea about the trend in the stock, whether its up, down , or sideways.

Financial modelling would help better than anything in future predictions.
DCF relies on accurate forecasts and assumptions, so it’s one of several methods used for valuation. Other methods include Price-to-Earnings (P/E) ratios, Price-to-Book (P/B) ratios, and comparing with industry peers.

In a bull market, everything tends to be valued with higher expectations. It’s important not to compare an IPO price, which is decided by management and merchant bankers, with the stock price, which is determined by the market. If Piccadilly can maintain a growth rate that meets market expectations, it is not richly valued. However, if the growth rate declines, it may be overvalued.

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