Fundamental and technical analysis integration forms the focus of hybrid investment strategies 
The goal is to combine fundamental value assessment from long-term analysis with technical price analysis for better short-term timing decisions when selecting Indian stocks through actionable models.

Why Combine Both Approaches?
The analysis of key financial indicators known as Fundamental Analysis contributes to identifying stocks with minimal value and strong financial standing.
Technical Analysis provides traders with the appropriate times to execute their trades (decision points for market entry or exit).
The combination of FA and TA produces better quality investments through fundamental analysis while TA improves the timing aspect of investments.

Example:
– Fundamental Pick: Titan Company (strong ROE, debt-free, consistent dividend growth).
The investor should enter this trade by buying after the price clears the 200-day moving average following an upward trend.

Step-by-Step Hybrid Strategy

1. Use Fundamentals for Stock Screening
Criteria for Indian Stocks:
Asian Paints with a P/E ratio of 60 exceeds the standard value of 50 within the FMCG sector which indicates its market value exceeds industry standards.
– Profitability: ROE > 15% (e.g., HDFC Bank ROE = 16%).
– Debt: D/E < 1 (e.g., Dabur India D/E = 0.05).
– Dividend Yield: >2% for income (e.g., Coal India: 5-8%).

Tools: Screener.in, Trendlyne

2. Apply Technicals for Timing
Entry Signals:
The stock enters a breakout phase when it surpasses a resistance point accompanied by heavy trading volume.
The stock price of Stock reaches an oversold level as RSI falls to 28 in its established upward trend.
The stock price demonstrated a bounce effect following its reaction against the 50-day moving average.

Exit Signals:
The indicator signals to exit positions when the RSI value reaches above 70.
A Death Cross occurs when the 50-day MA moves below the 200-day MA which is a negative technical indicator.

3. Conflict Resolution
When fundamental indicators differ from technical indicators what would my trading approach be?
Investors should maintain their position in such stocks yet postpone their purchasing decision because fundamental analysis indicates strong potential but technical indicators show a declining trend.
The stock of Yes Bank should be avoided because its price increase from hype fails to mask its fundamental weaknesses.

The stock’s fundamental values establish long-term potential which technical analysis helps optimize timing.

Tasks for You👍😊
1. Analyze a Hybrid Pick:
The website Screener.in should be used to identify three stocks which show solid fundamentals through having P/E ratios under 30 and returning operate earnings exceeding 20 percent.
Users should review stocks on TradingView by examining technical indicators that show upward trends including rising volume with RSI below 40.

2. Paper Trade:
The virtual trading simulation should acquire Reliance Industry shares at present when P/E ratio values stay below 30 (fundamental analysis) and the share price surpasses the 20-day moving average (technical analysis).

3. Create a Checklist:
– Example:
– FA: ROE > 15%, D/E < 1, Revenue growth > 10%.
Investors should evaluate Bajaj Finance when RSI stands at less than 40 and price exceeds the 200-day moving average with volume higher than the previous thirty days average.

Key Takeaways
1. Quality First: Never compromise fundamentals for technical setups.
2. The combination of fundamental and technical analysis requires deliberate waiting for alignment (TCS demonstrated this pattern in 2020 by maintaining solid fundamental indicators while indicating price entry through technical analysis following price optimization).
3. The investor should neglect any temporary technical price declines in cases where fundamental conditions remain solid (such as Asian Paints during periods of market instability).

FAQs for Indian Investors
– “How to handle earnings season?”
– FA: Check earnings growth, margin trends.
– TA: Watch for post-earnings gaps (e.g., HDFC Bank gap-up after strong results).
– “Best sectors for hybrid strategies?”
– Banking (e.g., ICICI Bank), IT (e.g., Infosys), FMCG (e.g., Nestlé).
– “Tools for hybrid analysis?”
– FA: Screener.in, Annual Reports.
– TA: Zerodha Kite, TradingView.

Common Mistakes
– Over-Optimizing: Using 10+ indicators (keep it simple: 2-3 metrics).
– Ignoring Macros: Rate hikes or GST changes can override technicals (e.g., Realty stocks post-RBI policy).
– FOMO Trading: Buying Zomato because it’s trending, despite negative ROE.