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 bearish sentiment is expected to prevail until the frontline indices provide a sustainable close above the medium-term moving average. Below are some short-term trading ideas to consider.
The market may attempt a rebound amid likely range-bound trading in the upcoming session, but the sustainability is the key watch. Below are some short-term trading ideas to consider.
Rangebound trading is expected to continue in the upcoming sessions amid elevated volatility. Below are some trading ideas for the near term.
REC formed bullish candlestick pattern on the daily charts with above average volumes. The 50-day EMA (exponential moving average placed at Rs 445) is crucial to watch in the coming session.
The overall outlook for the Nifty Index leans favourably towards a positive scenario.
Overall, the index has still been in the range with 19,750-19,800 likely to act as a crucial resistance as breaking of the same can drive the Nifty50 towards 20,000 mark, whereas 19,500 is expected to be immediate support and 19,200 may be crucial support for the index, experts said
The 18,050-18,000 level was safeguarded firmly, showcasing the importance of pivotal support and is expected to act as a sheet anchor in the comparable period. On the higher end, 18,400-18,450 is likely to act as the sturdy wall and a decisive breach would only trigger fresh longs in the system in future
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.
In the upcoming sessions, any sharp gains in the market may remain capped as long as Nifty trades below 15,900, said Shitij Gandhi of SMC Global Securities
Every sector participated in the run seen this month, given expected recovery in earnings and economy after slew of measures announced in last one year.
Sanjeev Hota of Sharekhan by BNP Paribas feels there could be further positive earnings surprise in store for Q4FY21.
As of December 28 close, the BSE Sensex is up about 15 percent while the BSE Midcap index has gained 19 percent and the Smallcap index 31 percent in the calendar year 2020.
The most noted point after September quarter earnings season was that more than 100 stocks witnessed upgrade in rating to buy from brokerages.
In the previous week, Nifty formed a bearish ABCD harmonic pattern on the daily chart which was placed around 12,800 levels.
IT and pharma are preferred themes by experts after June quarter earnings
Experts and analysts expect a change in market leadership in the post-COVID world in which telecom, healthcare, speciality chemicals, and rural consumers may dominate other sectors.
Nifty has been consolidating in a broader range of 8,900 to 9,500 from the last few sessions and is still holding back below its major moving averages on daily charts.
The panic created by COVID-19 has taken a heavy toll on most sectors but pharma companies seem to have withstood the carnage, with some stocks delivering healthy returns during this period.
In terms of market cap, it said it considered micro, small and midcap companies trading at attractive valuations relative to their large cap peers, post the flight to safety driven large cap rally.
Rusmik Oza said a 5-6 percent correction from the peak levels could be a healthy one for the long-term market sentiment.
SMC Global Securities has a buy on Ajanta Pharma and Can Fin Homes while Choice Broking has buy on State Bank of India.
Global volatility and elections-related uncertainties are key events to watch out for
Around 134 out of 776 smallcap stocks closed in the green and out of which top 10 stocks rallied between 8 percent and 33 percent
DHFL | Tube Investments | ICICI Bank | Mercator | Mphasis and Ambuja Cement are stocks, which are in the news today.
Prakash Gaba of prakashgaba.com recommends buying JSW Steel with target at Rs 298 and stop loss at Rs 289, Raymond with target at Rs 820 and stop loss at Rs 787 and L&T Finance Holdings with target at Rs 155 and stop loss at Rs 148.