Investors in the stock market base their decisions on two types of analysis: fundamental analysis and technical analysis. Technical analysis is the study of past share price patterns, whereas fundamental analysis examines the company’s financial condition, management, and competitive position in its industry or sector. Fundamental analysts look at a company’s annual report to make investment decisions, whereas technical analysts look at a chart of the stocks price movements in the past. Long-term and short-term charts of each segment (market, sector, and stock) are analyzed by investors to identify those that meet specific criteria.
First, the market is considered in general, using some of the composite indexes (for example KSE-100 index). If the broader market is deemed to be bullish (a stock is bullish when it promises an increase in price), the analysis would move on to a selection of sector charts. The individual stock analysis would focus on the most promising sectors. Individual stock selection can begin once the sector list has been reduced to three or four industry groups. A selection of 3-4 of the most promising stocks in each group can be made using a selection of 10-20 stock charts from each industry.
A stock chart is typically represented as a two-dimensional graph, with the x-axis representing time and the y-axis representing stock price. This visualization provides insight into the price fluctuation of a single stock. There are several methods for visualizing the stock market as a whole. Some of them propose a system for visualizing the current state of the stock market, while others consider visualizing stock market dynamics where temporal data is important.
There are numerous data sources, including the World Bank, IMF, government websites, the SBP, and a variety of others. The main issue with the data is that it is not available in excel or CSV format, particularly data pertaining to Pakistan. Another issue is that it is not freely available or does not adhere to the standard date format, which is extremely inconvenient when performing time-series data analysis.
In this article, I used free Quandl data. Quandl provides alternative data and core financial data from over 350 sources to over 30,000 active monthly users. The company provides a global database of alternative, financial, and public data, including capital market, energy, shipping, healthcare, education, demography, economics, and society information. Quandl was acquired by Nasdaq on December 4, 2018.
The attached link has two functions: one is to visualize the data and the other is to view and download data in CSV format. Returns are computed as a simple return and a continuous compounding return.