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
On the decisive crossing of 12,400 levels would lift the Nifty to 13,300 levels, said Shrikant Chouhan of Kotak Securities.
The Q2FY21, so far, witnessed robust numbers from IT, Pharma, Auto components, select banks, and cement sector companies.
As the September quarter earnings bouyed market sentiment and increased hope for strong earnings growth in coming years, brokerages upgraded majority of quality stocks in current month.
For the rest of the week the range looks shifted towards 11,700-11,350 as of now.
Despite the bullishness, it is ideal to remain nimble while trading, as the index has again entered its overbought state with an ongoing negative divergence.
During the last couple of weeks, Nifty failed to surpass the resistance of 50-DMA. At present 20 and 50 DMA, both are placed almost at the same levels at 9,250. This level will act as a far resistance.
Amara Raja Batteries has recently crossed the strong resistance line standing around Rs 490 levels, indicating strong bullish breakout.
Kotak slashed its price target for Amara Raja to Rs 650 (from Rs 780 earlier) and Exide Industries to Rs 165 (from Rs 180) due to cut in EPS estimates amid COVID-19-led impact.
Mitesh Thakkar of miteshthakkar.com recommends selling Coal India with a stop loss of Rs 162 for target of Rs 150 and Tata Motors with a stop loss of Rs 109 for target of Rs 100.
Mitesh Thakkar of miteshthakkar.com recommends buying Hindustan Unilever with stop loss at Rs 2100 and target of Rs 2300 and M&M Financial Services with stop loss at Rs 355 and target of Rs 385.
Sudarshan Sukhani of s2analytics.com advises selling Adani Power with a stop loss of Rs 58, target of Rs 54.
On the technical front, both Nifty and Bank Nifty are trading in a rising channel. However, Bank Nifty is facing a strong hurdle in the zone of 32,200-32,350.
Sudarshan Sukhani of s2analytics.com recommends buying HCL Tech with stop loss at Rs 542 and target of Rs 585 and ICICI Prudential Life Insurance with stop loss at Rs 487 and target of Rs 515.
Sudarshan Sukhani of s2analytics.com recommends buying GAIL India with stop loss at Rs 120 and target of Rs 133 and Dr Reddy's Labs with stop loss at Rs 2900 and target of Rs 3050.
The BSE mid-cap index was up 0.28 percent, while the small-cap index fell 1.10 percent and the BSE large-cap index was down 0.22 percent in the past week.
Mitessh Thakkar, mitesshthakkar.com recommends buying Amara Raja Batteries with a stop loss of Rs 737 and target of Rs 770 and HDFC Bank with a stop loss of Rs 1259.5 for target of Rs 1300.
Mitesh Thakkar of Miteshthakkar.com advises buying Bajaj Finserv with stop loss at Rs 8,540 and target of Rs 9,000.
There is strong support around 11,000 for Nifty, and, if it breaks below that, the Nifty could test 10,850-10,800 levels, experts feel.
The equity market may trade with a negative bias in the short-term, but the broader market will maintain its positive bias in the long-term, Vinod Nair of Geojit Financial Services says.
On the weekly time frame, the Relative Strength Index is trading near 50 levels, showing strength.
Prakash Gaba of prakashgaba.com recommends buying Maruti Suzuki with target at Rs 5750 and stop loss at Rs 5450 and Reliance Industries with target at Rs 1205 and stop loss at Rs 1160.
Mitessh Thakkar of mitesshthakkar.com recommends buying ICICI Bank with a stop loss of Rs 424 and target of Rs 440 and Pidilite Industries with a stop loss of Rs 1224 and target of Rs 1270.
Ashwani Gujral of ashwanigujral.com suggests selling State Bank of India with a stop loss of Rs 361, target of Rs 346 and Kotak Mahindra Bank with a stop loss of Rs 1520, target of Rs 1465.
Ashwani Gujral of ashwanigujral.com recommends buying Adani Power with a stop loss of Rs 63, target of Rs 75 and Canara Bank with a stop loss of Rs 272, target of Rs 284.
11,800 is the vital support area for the Nifty. It would be wise to remain cautious as high levels of volatility is likely