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
Consolidation is likely to continue, with the indices attempting to defend the previous Thursday’s low in the upcoming session. Below are some short-term trading ideas to consider.
The market could see some consolidation and profit booking in the upcoming sessions, though the overall trend remains positive. Below are some trading ideas for the near term.
The Nifty 50 is likely to consolidate with immediate resistance at 24,200 and support at 24,000. Here are some trading ideas for the near term.
Experts are now hoping to see the rally to reach 22,500 in the coming sessions, with support at the psychological 22,000 mark and a crucial support at the 21,900 level
Indus Towers has seen a decisive breakout of downward sloping resistance trendline and saw a gap up opening. The stock formed strong bullish candlestick pattern on the daily charts with healthy volumes.
The market seems to have entered into consolidation mode with hurdle on the higher side at 21,593, the record high, and the support for the Nifty 50 on the lower side at 21,200-21,000 levels.
With decisively surpassing previous record highs and making higher highs, higher lows formation along with healthy volumes on daily charts last week, the Nifty50 is likely to march further northward with eyeing 20,400-20,500 zone.
Godrej Properties shares rallied 6.5 percent to Rs 1,125 and formed strong bullish candle on the daily scale with strong volumes, continuing uptrend for fifth consecutive session and recouping all its previous seven straight days' losses.
Astral rallied more than 6 percent to Rs 2,314.45 and formed strong bullish candlestick pattern on the daily charts with robust volumes, continuing uptrend for third consecutive session. It has decisively broken the long downward sloping resistance trend line adjoining January 17 and August 25 this year.
Redington (India) saw strong buying interest and had a gap-up opening on Thursday. It climbed 9.1 percent to Rs 139.55, and formed a large bullish candlestick pattern on daily charts with significantly higher volumes.
Considering the positive placement of ‘RSI-Smoothened’ oscillator, we expect Wipro to convincing surpass immediate hurdles. One can look to buy for a near term target of Rs 498.
Volatility is expected to remain high as India VIX remains above the 20 mark
Experts advise investors not to trade aggressively unless a convincing trend develops. Investors should keep track of global stock indices.
Fineotex Chemical is trading in an uptrend and has recently shown outperformance. The previous resistance of Rs 182 is now expected to become a support and hence any declines towards this support could be used as a buying opportunity.
Momentum indicator RSI has moved above the 60 mark that may generate thrust for further upside. Nifty is giving proper follow-up of bullish reversal morning star candlestick formation on the weekly chart
Experts feel the mood at street turned more cautious and nervous after Friday's sharp fall and hence the more correction can't be ruled out if the Nifty decisively breaks 17,000 mark in coming days.
Experts advise investors to stay light and avoid bottom-fishing for a while as the market is a bit oversold
Here's what Vikas Jain of Reliance Securities, recommends investors should do with these stocks when the market resumes trading today.
Ajanta Pharma, Alembic Pharma, Astral Poly Tech, AU Small Finance and Bajaj Finance are among the 'potential 25 wealth creators for the next 25 years', the brokerage firm says.
Experts point out select mid and smallcaps look good for medium to long term horizon. They name about 20 favourite stocks
This war between USA & China may intensify further & may take ugly shape going forward, which may change World Power Equation post-COVID-19 era, Amit Jain of Ashika Wealth Advisors said.
These stocks may take off once the runway is clear, says the brokerage.
Narnolia also retained its buy call on the stock with a target price of Rs 1,380 (implying 14 percent potential upside from current levels).
A reduction in personal income tax will lead to higher consumption and will be positive for many sectors, especially autos and consumers, said experts.
We can expect midcaps to perform for the coming year as midcaps are at a 10 percent discount as compared to largecaps.