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 may remain consolidative with rangebound trading until the August high is decisively broken. Below are some short-term trading ideas to consider.
Given the prevailing negative sentiment, the trend in benchmark indices is expected to favour bears in the upcoming sessions. Below are some trading ideas for the near term.
Immediate support for the Nifty 50 is seen at 25,700, with a crucial level at 25,500, while resistance is expected around the 25,900-26,000 range. Here’s a look at the ‘buy on dip’ opportunities and stocks to avoid, according to market experts.
Given the weak sentiment, the Nifty 50 is expected to sustain its downtrend in the upcoming sessions. Below are some trading ideas for the near term.
The consolidation is expected to continue in Nifty 50, although the bulls remain in control. Below are some trading ideas for the near term.
Going forward, 19,600-19,500 is expected to act as a crucial support for the Nifty50 in coming sessions, and if it manages to sustain above then the gradual upmove towards 20,000 can be possible, experts said
The trend is definitely positive, but considering the one-way rally of last several sessions, the possibility of some profit taking can't be ruled out in near term before we are getting into next leg of upmove, experts said.
The momentum indicator RSI has sustained above the 65 level on all the time frames like daily, weekly and monthly indicating strong positive momentum of the index.
The benchmark Nifty is likely to march towards 19,300-19,500 levels in coming days, as long as it holds the 19,000 mark, which is an immediate support, then 18,800 levels, experts said
Century Textiles has broken out from the symmetrical triangle on the weekly chart. Primary trend of the stock is positive as it is trading above 20 and 50 and 100 week moving averages.
Puravankara has broken out on the daily chart on August 5, where it closed at highest level since July 25, 2022. Short term trend of the stock is positive as it is trading above its short term important moving averages.
Occurrence of a ‘Bullish Hammer’ on weekly scale near the confluence zone of a multi support area of its 200 week EMA reconfirm the strength of its ongoing channel support zone in Zensar Technologies. Trend strength indicator RSI too exhibits a positive crossover along with a likely trend break
On June 2, Century Textiles is not only cleared the resistance of 200 days simple moving average (SMA), but successfully closed above the same. It also formed long bullish candle which supported further uptrend from the current levels.
Experts feel overall the index has been rangebound and the surpassing 17,200-17,300 mark in coming days can be concluded as a completion of recent corrective phase.
"Far support for the Nifty is seen at 16,700. As far as resistance is concerned, traders should not anticipate any target and should keep long positions with trailing stop loss basis," said Vinay Rajani of HDFC securities.
If you are a retail investor have Rs 1 crore to invest, here are a few recommendations for investing and dividing your portfolio exposure across these sectors.
Gaurav Garg of CapitalVia feels the LTC and reintroducing of Special Festival advance scheme for government employees are expected to boost the consumer demand by additional Rs 36,000 crore.
We recommend buying Century Textiles & Industries around Rs 348 with a stop loss of Rs 320 for higher targets of Rs 400.
On the technical front, Bank Nifty is looking much stronger than Nifty and it is likely to test 23,000 levels in the coming sessions.
On the weekly chart, Nifty has formed a bullish higher top higher bottom pattern. A similar pattern is also observed in the Midcap and Smallcap indices, indicating broad-based rally in the markets.
The broader markets also traded in line with benchmark indices as the BSE Midcap index gained 35 percent and Smallcap index rose 40 percent.
On the downside now, strong supports would be in the range of 9,050 levels near the 50-day average and any decline near 9,250 would be a good opportunity to add longs.
Sudarshan Sukhani of s2analytics.com recommends buying Asian Paints with stop loss at Rs 1825 and target of Rs 1890 and Pidilite Industries with stop loss at Rs 1540 and target of Rs 1645.
Sudarshan Sukhani of s2analytics.com recommends buying Bajaj Finserv with stop loss at Rs 9500 and target of Rs 10300 and Havells India with stop loss at Rs 611 and target of Rs 635.
Prakash Gaba of prakashgaba.com recommends buying Balkrishna Industries with target at Rs 1180 and stop loss at Rs 1143 and Bharti Airtel with target at Rs 582 and stop loss at Rs 554.