Fundamental analysis can be performed either top-down or bottom-up Approach. An investor who uses the top-down technique begins his or her study by considering the general health of the economy. An investor attempts to establish the general performance of the economy and selects the industries and sectors of the economy presenting the best investment possibilities by examining numerous macroeconomic parameters such as interest rates, inflation, and GDP levels. The bottom-up technique is another option. Instead of beginning on a bigger scale, the bottom-up strategy begins with an examination of individual stocks. The bottom-up approach’s logic is that individual stocks may outperform the industry as a whole. The bottom-up method focuses mostly on microeconomics indicators such as a company’s earnings and financial measures. Analysts that take this method do a comprehensive evaluation of each organisation in order to obtain a better grasp of its operations.