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
Ashwani Gujral of ashwanigujral.com suggests buying NIIT Tech with a stop loss of Rs 1360, target of Rs 1410, Dabur India with a stop loss of Rs 450, target of Rs 475 and Axis Bank with a stop loss of Rs 630, target of Rs 655.
Mitessh Thakkar of mitesshthakkar.com suggests buying Bajaj Finance above Rs 2765 with stop loss of Rs 2744 and target of Rs 2840, Cummins India with a stop loss of Rs 674 and target of Rs 705 and India Cements with a stop loss of Rs 118.8 and target of Rs 129.
The S&P BSE Sensex hit a fresh record high of 37,327 while Nifty50 hit a fresh record high above 11,200 at 11,253 in the morning session.
The company reported 83 percent rise in its standalone net profit for the June quarter to Rs 833.7 crore, higher than what analysts had estimated, as it earned more in interest income and its asset quality remained stable.
Rajesh Agarwal of AUM Capital recommends buying Infosys with stop loss at Rs 1290 and target of Rs 1349, Bajaj Finance with stop loss at Rs 2430 and target of Rs 2518 and Titan Company with stop loss at Rs 825 and target of Rs 855.
Ashwani Gujral of ashwanigujral.com suggests buying Bajaj Finserv with a stop loss of Rs 6200, target of Rs 6450 and Larsen & Toubro with a stop loss of Rs 1285, target of Rs 1340.
Rajesh Agarwal of AUM Capital recommends buying Century Enka with stop loss at Rs 259 and target of Rs 272, Marico with stop loss at Rs 343 and target of Rs 360 and Bajaj Finance with stop loss at Rs 2390 and target of Rs 2450.
Ashwani Gujral of ashwanigujral.com recommends buying Cipla with a stop loss of Rs 610, target of Rs 650, Bata India with a stop loss of Rs 854, target of Rs 870 and Jubilant Foodworks with a stop loss of Rs 1370, target of Rs 1420.
"The market will take cues from June automobile sales numbers, minutes of FOMC meeting and updates on the monsoon's progress," says Sumit Bilgaiyan of Equity99
"One should exit such stocks where important support zones are breached and continue to hold on to stocks that are trading above their 50 and 20-EMA," says Amit Shah of Indiabulls Ventures
“I do have a few substitutes to juice up the portfolio, if conditions change,” says Ayon Mukhopadhyay of IIFL Institutional Equities for UK and Europe
Other momentum oscillators also indicate that stock has the legs to carry forward the momentum. Protect every long position with a stop loss around Rs 2,083 levels.
A break above the mentioned resistance zone will soon lead the Nifty towards its all-time high. Weight of the evidence still indicates that its bullish stance continues to remain intact.
Rajesh Agarwal of AUM Capital recommends buying Cipla with stop loss at Rs 530 and target at Rs 556, Bharat Petroleum Corporation with stop loss at Rs 395 and target at Rs 418 and a buy also in Tata Global Beverage with stop loss at Rs 255 and target of Rs 275.
Motilal Oswal expects Nifty EPS to grow 27.4 percent to Rs 579 in FY19 and 19.6 percent to Rs 693 in FY20.
Mitessh Thakkar of mitesshthakkar.com recommends buying Bajaj Finance with a stop loss of Rs 2099 and target of Rs 2160 and Indian Oil Corporation with a stop loss of Rs 166 and target of Rs 180.
"We believe the company will likely sustain its premium valuation. We maintain a buy rating on Bajaj Finance," says Sumit Bilgaiyan of Equity99.
"We recommend hold for long term investors who have entered earlier. We believe this company should be in portfolio basket for 5 to 10 years to reap the benefits of wealth creation," says Akash Jain, Vice President - Equity Research at Ajcon Global.
"We expect Bajaj Finance to make an attempt to rally towards its potential target of Rs 2,250 in the medium term," says Hadrien Mendonca, Senior Technical Analyst at IIFL.
Hadrien Mendonca of IIFL recommends buying Bajaj Finance with target at Rs 2,250 and stop loss at Rs 1,975 and Colgate Palmolive with target at Rs 1,276 and stop loss at Rs 1,138.
It is advisable to remain cautious and not venture into over-leveraged positions. Here is a list of top three stocks that could deliver returns of up to 8-10 percent.
"The Index has to close above 10,440 levels for further upmove. If it sustains below or fails to cross this mark, Nifty may witness a correction till 10,330 and 10,270 zone," says Rajesh Agarwal of AUM Capital.
Shahina Mukadam, Independent Market Expert is of the view that one may buy Motherson Sumi with a target of Rs 290.
“The initial rollover data towards April series indicates long rollover in stocks. However, on any bounce in the prices, the Nifty index will face strong resistance at 10,250-10,300 levels. On the downside, the next support is placed around 10,100-10,050 levels,” Shitij Gandhi, SMC Global Securities Ltd told Moneycontrol.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 58 points or 0.57 percent. Nifty futures were trading around 10,151-level on the Singaporean Exchange.