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
Given the favourable technical indicators, the uptrend is likely to continue in the upcoming sessions. Below are some short-term trading ideas to consider.
The market is likely to trade with a negative bias amid ongoing consolidation. Below are some trading ideas for the near term.
Aster DM Healthcare formed bullish candlestick pattern with upper shadow on the daily charts. The volume was above average and the stock traded above all key moving averages.
Aster DM Healthcare has formed Bullish Engulfing kind of candlestick pattern on the daily charts with above average volumes, and closed 5 percent higher at Rs 319.4. The stock is on the verge of falling trendline breakout.
Aster DM Healthcare was the biggest gainer in the Nifty500 index, rising 13.5 percent to see all-time closing high of Rs 325.70. The stock has formed robust bullish candlestick pattern on the daily charts with significantly higher volumes.
JK Paper shares rallied 3.5 percent to Rs 440, the highest closing level since August 16 this year and formed another long bullish candle with robust volumes on the daily charts. The stock has given a strong breakout of horizontal resistance trend line adjoining several points - August 12, September 1, September 8 and December 19 this year.
ITC has given a consolidation breakout on the daily timeframe, suggesting a rise in optimism among the investors.
Muthoot Finance was the fourth biggest gainer in the futures & options segment, rising nearly 6 percent to Rs 1,012 and formed Bullish Engulfing kind of pattern on the daily charts after taking support at around Rs 950 levels.
Ujjivan Financial Services rose nearly 2 percent to Rs 210, the highest closing level since August 13, 2021 and formed decent bullish candlestick pattern on the daily charts, while Elgi Equipments jumped more than 2 percent to end at record closing high of Rs 551 and formed small bodied bullish candle on the daily scale.
On the daily chart, ITI has confirmed "Rounding Bottom" formation breakout at Rs 115 levels along with huge volumes. The stock has recaptured the 200-day SMA and rebounded sharply.
GNFC is moving in a rational uptrend since March 2020. The upmove in the stock has been backed with good volume buildup indicating long participation in the counter.
"Till the time this Ukraine-Russia war kind of scenario does not subside completely, uncertainty is likely to loom over markets across the globe. So in such times, it's advisable not to trade aggressively and avoid carrying positions overnight," says Sameet Chavan, chief analyst, technical and derivatives, Angel One.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today.
Hence here are 11 stocks where brokerages initiated coverage with a buy call, which could give 10-73 percent return:
Here is a list of top 10 stocks which can return up to 35 percent in the next 12 months. For simplicity, we have taken stocks which have a market cap of less than Rs 10,000 crore.