: 📊 How to Find Stocks That Are Cheap Fundamentally & Strong Technically

Apr 17, 2026
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A Smart Strategy by Sarbaguna Investment

In today’s dynamic market, successful investors don’t rely on just one method. The real edge comes from combining fundamental analysis (value) with technical analysis (timing).

This hybrid strategy helps identify stocks that are:

💰 Undervalued (cheap)
📈 Ready to move (strong trend)

🔍 What Does “Cheap Fundamentally” Mean?

A fundamentally cheap stock is one that is trading below its true value.

Investors evaluate this using key financial indicators like:

P/E Ratio (Price to Earnings)
EPS Growth (Earnings Per Share)
ROE (Return on Equity)
Debt-to-Equity Ratio
Book Value (BVPS)

👉 These metrics help determine whether a company is financially strong and undervalued.

📈 What Does “Technically Strong” Mean?

Technical strength focuses on price movement and market behavior.

Key indicators include:

RSI (Relative Strength Index) → momentum indicator
MACD → trend confirmation
Moving Averages (50/200 MA) → trend direction
Volume → confirms buying interest

👉 In NEPSE, indicators like RSI and MACD are widely used to identify bullish trends and entry points.

⚡ The Winning Strategy: Combine Both

The real power comes when you merge both approaches:

✅ Step 1: Filter Fundamentally Strong Stocks

Consistent profit growth
Low debt
Strong management
Good long-term potential

✅ Step 2: Apply Technical Analysis

Stock near breakout zone
RSI between 50–70 (healthy momentum)
Positive MACD crossover
Increasing volume

👉 This ensures you are buying good companies at the right time.

🎯 Why This Strategy Works

Many investors make mistakes like:

Buying hype stocks at peak prices
Ignoring company fundamentals
Entering too early or too late

Experts emphasize focusing on strong businesses instead of inflated stocks for sustainable returns.

👉 This combined method helps avoid those mistakes by balancing:

Value (safety)
Momentum (profit potential)

📊 Example Approach (NEPSE Style)

A smart investor in Nepal might:

Shortlist stocks using fundamentals (EPS growth, low P/E)
Narrow down using screeners
Analyze charts for breakout signals
Enter when trend confirms

👉 This reduces risk and increases probability of success.

💡 Sarbaguna Investment Insight

“Don’t just buy good stocks — buy them at the right time.”

The best opportunities lie where:

Fundamentals say BUY
Charts confirm GO

📢 Final Thought

In the modern stock market, discipline beats emotion.

📌 Fundamental analysis tells you what to buy
📌 Technical analysis tells you when to buy

Master both — and you gain a powerful edge in the market.

📈 Learn Smart Investing with Sarbaguna Investment
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📞 Contact: 9849290806