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
A sustainable move below 17,700 (which seems likely) would activate the pattern and as a result of this, we could see a fresh leg of correction in coming days, says Sameet Chavan of Angel One.
Here's what Gaurav Sharma of Globe Capital Markets recommends investors when the market resumes trading today.
Here's what Rajesh Palviya, VP-Technical and Derivative Research, Axis Securities, recommends investors should do with the 3 stocks when trading resumes today
Selling pressure at higher levels after the sharp rally indicate a pause in the momentum, which is healthy for a further upside, technical experts said.
"The key support levels for the Nifty in the short term are 15,430 and 15,145. On the upside, the key resistance level is 15,962," said Vidnyan Sawant of GEPL Capital.
Secondary oscillators suggest that the market is likely to witness negative bias in the coming sessions as long as Nifty is trading below 15,800, said Shitij Gandhi of SMC Global Securities.
Looking at the current chart set up, we are expecting a volatile movement in the market with a bearish tilt in the coming trading sessions, said Vishal Wagh of Bonanza Portfolio
As the economy finds its feet again, stocks that were affected the most such as those in contact intensive sectors such as hospitality, tourism and entertainment will get back in favour
The key support levels to watch out for in the short-term are 15,135 (previous swing high) and 14,884 (5-day low).
After a phase of strong earnings, lockdown-like restrictions have led to more downgrades than upgrades but analysts and brokerages remain bullish about many stocks, which have been upgraded to a ‘buy’ rating.
In these uncertain times, when markets are volatile as the country grapples with the frightening rise in COVID-19 infections, experts say investors should go for quality large-cap stocks and use any near-term correction to pick up such shares.
On the upside, the cluster of resistances is visible at every 100-150 points. So, for this week, 14,600 – 14,750 – 14,900 are points of pain for the Nifty.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
On the derivatives front, call writers added hefty open interest at 11,400 and 11,500 strikes while put writers added marginal open interest at 11,300 and 11,200 strikes.
The bearish engulfing pattern on the weekly chart is also intact, hence any rising attempt from here could encounter selling pressure at the highs.
To put things into perspective, we can expect the prices to trade in a range of 10,900 to 11,399 with a positive bias in the coming days.
Experts continue to warn that the market will keep oscillating between rise and fall and one must remain cautious while taking a call for trade.
The analyst believes 9,400 will act as support and Nifty is likely to march towards 9,800 in the coming trading session. The beach of 9,400 will drag Nifty to 9,200 – 9,000 levels.
While the banks and NBFCs have been dominating the benchmark indices, market experts say emerging sectors such as pharma are gearing up to take the front seat.
The steep fall in oil price is definitely positive not only for India which imports around 85 percent of requirement, but also companies which use as their raw material in any form.
Current sell-off has presented an opportunity to accumulate stocks for long term as most of the stocks are available to the investors at attractive valuations.
Mitesh Thakkar of miteshthakkar.com recommends selling Bharat Forge with a stop loss of Rs 376 for target of Rs 350 and Britannia Industries with a stop loss of Rs 2840 for target of Rs 2720.
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.
Prakash Gaba of prakashgaba.com recommends buying Asian Paints with target at Rs 1880 and stop loss at Rs 1830 and Axis Bank with target at Rs 750 and stop loss at Rs 730.
The government consistently focuses on development of smart cities across country, especially since they came in to power in 2014.