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
Sudarshan Sukhani of s2analytics.com recommends selling Can Fin Homes with stop loss at Rs 240 and target of Rs 218, Cummins India with stop loss at Rs 665 and target of Rs 635 and Sun TV with stop loss at Rs 625 and target of Rs 575.
Rajesh Agarwal of AUM Capital recommends buying Can Fin Homes with stop loss at Rs 252 and target of Rs 274 and Lakshmi Vilas Bank with stop loss at Rs 82 and target of Rs 90.
Mitessh Thakkar of mitesshthakkar.com suggests buying Reliance Industries with a stop loss of Rs 1239 and target of Rs 1282 and Bata India with a stop loss of Rs 974 and target of Rs 1000 while he advises selling CESC with a stop loss of Rs 891 and target of Rs 840.
Ashwani Gujral of ashwanigujral.com suggests buying Aurobindo Pharma with a stop loss of Rs 794, target of Rs 820, Balrampur Chini with a stop loss of Rs 88, target of Rs 96 and advises selling Balkrishna Industries with a stop loss of Rs 1170, target of Rs 1145.
In the last one month, brokerage houses downgraded several stocks either due to weak corporate earnings, higher valuations or stock-specific news.
Mitessh Thakkar of miteshthacker.com suggests buying V-Guard Industries above Rs 218.5 with stop loss of Rs 212 and target of Rs 232, Bharat Forge above Rs 657 with stop loss of Rs 645 and target of Rs 680 and HDFC Bank with a stop loss of Rs 2080 and target of Rs 2120.
Rajesh Agarwal of AUM Capital is of the view that one can buy Sun Pharmaceutical Industries with stop loss at Rs 584 and target of Rs 625 and Aditya Birla Fashion with stop loss at Rs 187 and target of Rs 200 and can sell Kotak Mahindra Bank with stop loss at Rs 1310 and target of Rs 1260.
Mitessh Thakkar of mitesshthakkar.com recommends buying Axis Bank with a stop loss of Rs 568 and target of Rs 588, Balkrishna Industries with a stop loss of Rs 1240 and target of Rs 1305 and Cummins India with a stop loss of Rs 680 and target of Rs 750.
The carnage in midcap and smallcaps is a buying opportunity in select stocks
"Rising volumes and other oscillators also indicate that the current momentum is likely to extend further. We advise investors to keep a strict stop loss of Rs 1235 on every long position in the stock," says Hadrien Mendonca, Senior Technical Analyst at IIFL.
The Nifty50 has to surpass its previous peak of 10,480 on a closing basis for the momentum to sustain or to gather more strength.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 29 points or 0.28 percent. Nifty futures were trading around 10,497-level on the Singaporean Exchange.
“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.
Ashish Kyal of Waves Strategy Advisors suggests buying Balkrishna Industries with a target of Rs 1192.
Mitessh Thakkar of mitesshthakkar.com discusses with Prashant Nair and Ekta Batra his analysis on the technical side of the market as well as specific stocks and sectors.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell JSPL and Hindalco Industries and can buy VIP Industries.
Ashwani Gujral of ashwanigujral.com is of the view that one may sell ICICI Bank and Jet Airways.
"The Nifty has formed 'Hammer' candlestick pattern indicating a short term reversal. Furthermore, on hourly scale, oscillators like RSI & MACD has given positive crossover which is a bullish sign," says Rajesh Agarwal of AUM Capital.
Prakash Gaba of prakashgaba.com is of the view that one may enter Balkrishna Industries around Rs 850-950.
Gaurang Shah of Geojit Financial Services is of the view that one may prefer Ceat for long term.
Sudarshan Sukhani of s2analytics.com is of the view that one can sell Balkrishna Industries and can buy Hindustan Unilever and Marico.
HSBC expects further demand pick-up which will improve company's return on capital employed.
Mitessh Thakkar of miteshthacker.com is of the view that one can buy Balkrishna Industries and can sell Oriental Bank of Commerce.
Ashwani Gujral of ashwanigujral.com recommends buying Reliance Industries, Balkrishna Industries and Sonata Software.