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
The Nifty 50 may see further selling pressure in the upcoming session, given the negative sentiment. Below are some trading ideas for the near term.
The Nifty is likely to maintain an upward rally towards 24,900-25,000, with immediate support at 24,600-24,500 levels. Here are some trading ideas for the near term.
Experts expect the Nifty 50 index to take support at the 22,600-22,500 zone, and above these levels, there is a possibility of a resumption of the upmove towards the 23,000 mark. However, below 22,500, a sharp downward move can't be ruled out.
The momentum can take the Nifty50 towards 18,500-18,700 in coming sessions, if it sustains 18,200 mark which can be near term support, followed by 18,000 being crucial support, experts said
The banking index has been showing outperformance and is continuing its uptrend after some consolidation. Among private sector banks, Axis Bank is showing strength and has given a breakout above its previous swing high resistance.
PCBL was up nearly 3 percent at Rs 136.35, the highest closing level since September 20 and formed decent bullish candlestick pattern on the daily charts with higher volumes in last 13 consecutive sessions. The stock has been in an uptrend since the double bottom kind of formation.
Commodities will be the biggest gainers and as long as the geopolitical heat continues, it will be the dominating market theme, Axis Securities said.
Here's what Jayesh Bhanushali of IIFL Securities recommends investors should do with these stocks when the market resumes trading today
Here's what Rajesh Palviya of Axis Securities, recommends investors should do with these stocks when the market resumes trading today.
Traders can continue with a stock specific approach. "And we may see trades on both sides if Nifty remains in a consolidation mode," says Sameet Chavan of Angel One.
Experts advise investors to stay light and avoid bottom-fishing for a while as the market is a bit oversold
Selling pressure at higher levels after the sharp rally indicate a pause in the momentum, which is healthy for a further upside, technical experts said.
The weekly chart of Nifty now exhibits a shooting star candle which is an indication of some pause if the low of the candle is breached on a closing basis, said Sameet Chavan of Angel Broking.
Nifty witnessed a fresh breakout on charts after almost two months of consolidation in the range of 15,500-15,900. It crossed the 16,000-mark for the first time on August 3
Any sustainable move above 14,750 levels may cause momentum towards 14,850-14,900 levels.
The daily strength indicator RSI and the momentum indicator Stochastic both have turned bearish along with negative crossover which supports bearish sentiments ahead.
Traders can adopt buy on dips approach until the support level holds and expect the trading range of 12,721 to 13,050 levels.
Nifty has got strong support at 11,660 and it can be kept as a stop loss in long positions. Upside targets for Nifty are seen at 12,250 and 12,430.
The index has given bullish crossover as 100 DMA crossed 200 DMA from below, signaling that the strong bullish momentum will continue in the mid term.
Put writers still hold the maximum open interest at 11,900 strikes which should act as immediate support for Nifty in the coming sessions.
With the derivatives expiry next week, the market is expected to trade volatile with rollover movement in individual sectors and stocks.
Experts say market has already run ahead of fundamentals and a correction is due
During the last couple of weeks, Nifty failed to surpass the resistance of 50-DMA. At present 20 and 50 DMA, both are placed almost at the same levels at 9,250. This level will act as a far resistance.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
On the technical front, 8,800 levels would act as a major support for Nifty below which we could see further long liquidation which could drag the index towards 8,600 levels in the coming sessions.