Stock analysis is used by traders to make buy and sell call. It’s an approach to make informed decisions while investing in stocks. Stock analysis can be categorised into – fundamental analysis and technical analysis. Fundamental analysis is evaluation of data from sources, including financial records, economic reports, company assets, and market share. Analysts typically study the company’s financial statements – balance sheet, income statement, cash flow statement, and footnotes. These statements are made available to the investors in the form of quarterly earnings, disclosures to stock exchanges in compliance with the Securities and Exchange Board of India (Sebi) norms. In fundamental analysis, the analysts particularly check for a company's core income, income from other sources, profitability, guidance, assets and liabilities and debt ratio among other parameters. The other method, i.e. the technical analysis focuses purely on statistical data. It works on two assumptions; one, the stock price reflects the fundamentals. Second, the study of past and present movement in prices can help determine the future price trends. Technical analysis primarily deals with price, volume, demand and supply factors. This method is effective only when supply and demand forces influence the market. However, when outside factors are involved in a price movement, technical analysis may not be successful. More
The market is expected to see consolidation until it convincingly surpasses Thursday's high. Below are some short-term trading ideas to consider.
Jamna Auto Industries ended at new closing high and formed long bullish candlestick pattern on the daily charts. The stock traded way above all key moving averages, which is a positive sign.
The Nifty is likely to continue its march upwards amid consolidation with hurdle at 19,500-19,600 levels, whereas the near term support is expected to be 19,300-19,200 levels, followed by crucial support at 19,000, experts said
Olectra Greentech was the top gainer in the Nifty500, climbing 18 percent to end at record closing high of Rs 1,232 and formed robust bullish candlestick pattern on the daily timeframe, with strong volumes. The stock has made higher highs, higher lows formation for second consecutive session.
Jamna Auto Industries is in a classical uptrend where it is breaking out symmetrical triangle formation after building a strong base at its 200-DMA. On an immediate basis, Rs 125 is the horizontal resistance line; above this, we can expect a rally towards Rs 133-136 levels.
Phoenix Mills is outperforming the Nifty Realty index where it is on the verge of a breakout of a critical hurdle of Rs 1,150 that may lead to further strength towards Rs 1,250-1,300 zone.
Jash Engineering is in strong bullish momentum where it is resuming this momentum followed by a breakout of 9 months consolidation. The breakout comes with a big bullish candlestick and high volume that indicates the beginning of a fresh expansion phase.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today.
Reacting on the above news, stock of many auto and auto-components makers rallied. The Nifty Auto index gained 0.86 percent as Tube Investments, Ashok Leyland, Tata Motors, Bharat Forge, Balkrishna Industries and Bajaj Auto gained 1-3.6 percent.
Brokerage firm ICICI Direct pointed out that a healthy festive period and elements of pent-up demand, channel restocking led the auto industry to remain firmly on the recovery path in Q3FY21.
Market is trading in range but falling crude oil prices and appreciating rupee are helping the market to trade on the positive side
The recent fall is an opportunity to add quality stocks in portfolio which are expected to give smart return over a period of 12-18 months, experts said.
Hemang Jani, Head - Advisory, Sharekhan, said any major declines should be used as an opportunity to get into quality names in the consumption and financials space
The company maintains its industry leading return on equity of 30 percent and modest debt/EBITDA of 0.3 times, says Soumen Chatterjee of Guiness Securities.
Midcap and smallcap stocks, which were underperforming benchmark indices since the start of this year, are now likely to outperform in days ahead.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can sell DCB Bank with a stop loss of Rs 181.50 and target of Rs 172 and buy Hindustan ZInc with a stop loss of Rs 295 and target of Rs 317 and United Breweries with a stop loss of Rs 1249 and target of Rs 1310.
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 2.5 points or 0.02 percent. Nifty futures were trading around 10,789-level on the Singaporean Exchange.
If the index closes above 10,800, it would result in a further short-covering, this might push it to 10,950 levels.
"The structural shift towards higher tonnage vehicles should trigger demand for its high margin parabolic springs. Superior return on equity, deleveraged balance sheet and minimum capex plans makes it a proxy to play the infrastructure theme in India," says S Ranganathan, Head of Research at LKP Securities.
" The Daily Relative Strength Index (RSI) is showing an upward trend and the MACD is trading with a positive crossover above the zero line, which indicates that the stock has potential to move higher from current level." says Abhishek Mondal of Guiness Securities.
Here is a list of top five stocks which could give up to 14% return in short term.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 7.5 points or 0.07 percent.
The house expect revenues to grow 12.5 percent in the next three Revenue and growth years, driven by a 12 percent CAGR in OEM and 15percent in the aftermarket. The new plant in Hosur is to serve the export market and multinationals such as Daimler and Volvo.
Ruchit Jain of Angel Broking recommends buying Natco Pharma with a stoploss at Rs 995 and target of Rs 1080 and a buy on GHCL with a stoploss at Rs 286 and target of Rs 327.
FIIs were net sellers in August as they sold more than Rs 10,000 crore worth of shares on global weakness, which dented market sentiment.