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
Shabbir Kayyumi of Narnolia Financial Advisors expects the Nifty to trade within a 10,850-11,200 range going forward
The index may move down towards 10,820, and below that we see a further correction towards 10,670 levels.
Most brokerage firms expect the move to impact demand for newer vehicles and remain an overhang on Ashok Leyland and Tata Motors in the short term till clarity emerges
Ashwani Gujral of ashwanigujral.com recommends buying Berger Paints with a stop loss of Rs 292, and target of Rs 306, HPCL with a stop loss of Rs 264, target of Rs 278 and Sun TV with a stop loss of Rs 788, target of Rs 810.
Analysts’ advise investors to remain with quality stocks which might have fallen less in the carnage as compared to stocks whose value has eroded 50-80 percent in the past 6 months
We recommend selling Ashok Leyland at a current market price of Rs 132 and sell more on any rise around the Rs.136 level for the downside target of Rs.120, says Nandish Shah of HDFC Securities.
Rajesh Agarwal of AUM Capital
We maintain our accumulate rating with a price target of Rs 183 per share, says Soumen Chatterjee of Guiness Securities.
Here is a list of top 10 stocks handpicked by Emkay Global that could return 13-85 percent over the next 12-18 months
“We still prefer buying on dips as long as critical supports are intact.” says Jaydeb Dey of Stewart & Mackertich Wealth Management
Vinay Rajani of HDFC Securities is of the view that one can sell Aurobindo Pharma with target at Rs 485 and stop loss at Rs 570, a sell in Muthoot Finance with target at Rs 350 and stop loss at Rs 395 and a buy in Cholamandalam Investment with target at Rs 1,700 and sto loss at Rs 1,490.
Reversal of the bearish view can be pegged above the recent high of 10,929, says Gaurav Ratnaparkhi of Sharekhan
The light commercial vehicle (LCV) sales were up 10 percent at 3,238 units versus 2,932 units.
"Weakness in the market may continue for the next few days," says Achin Goel, Head of Wealth Management and Financial Planning, Bonanza Portfolio
A close below 10,560 with a bearish candle on the charts suggests the index may continue facing resistance around 10,560 and 10,630.
The market's upward trajectory was in spite of volatility in stocks traded abroad and crude hitting multi-year highs, primarily because investors continued to be hopeful that earnings would keep getting better.
"Ashok Leyland is expected to continue expanding its market share led by network expansion and new product launches. Outlook for FY19 remains positive. We remain buyers in Ashok Leyland with short term target price of Rs 171 per share," says Sumit Bilgaiyan, Founder of Equity99.
Next week's trend will be decided on the basis of quarterly earnings and trends in global markets.
Top contrarian buy calls include Hero MotoCorp, Tech Mahindra, LIC Housing Finance, Hindustan Petroleum Corporation (HPCL) and NMDC.
" We recommend Ashok Leyland with a buy rating and a target price of Rs 195 in long term as we believe the company has multiple levers in its favour which will drive growth over FY19-FY20," says Sumit Bilgaiyan, Founder of Equity99.
Investors should view markets with sector and stocks specific approach and we don’t recommend to add aggressive shorts but wait for a pullback, Manav Chopra, CMT, Head Research- Equity, Indiabulls Ventures Ltd, said in an interview to Moneycontrol's Kshitij Anand.
The Nifty50 is expected to open with a gap on the lower side on Friday tracking heavy sell-off in other Asian markets
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Ashok Leyland, Britannia Industries and Larsen & Toubro and can sell HPCL and Repco Home Finance.
Sameet Chavan of Angel Broking is of the view that one may sell Tata Global Beverage with a target of Rs 240.
Jay Thakkar of Anand Rathi Securities is of the view that oen may buy NIIT Tech with a target of Rs 912.