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
Chambal Fertilisers and Chemicals after the short correction has bottomed out near Rs 287 zone and indicated a decent pullback with a big bullish candle pattern on the daily chart to improve the bias. It is moving past the significant 50EMA level of Rs 306 zone anticipating for further upward move in the coming sessions.
After making a low at Rs 1,456, L&T is forming higher top higher bottom formation on all the time frames like daily, weekly & monthly indicating positive undertone of the stock for the short to medium term.
Bharat Electronics has recently consolidated within a range which seems to be a time-wise correction within an uptrend. The consolidation has led to the formation of a ‘Symmetrical Triangle’ pattern on the daily chart and prices have given a breakout from the pattern
For Nifty, the immediate resistance is at 16,700 and 16,975 followed by 17,132. The downside support is at 16,370, 16,000 and 15,671 levels
Short term trend of ICICI Securities turned bullish as it closed above its 5 days EMA, first time after April 20 this year, with higher volumes. Momentum oscillators like RSI and MFI have exited from the oversold zone and started rising, suggesting higher possibility of bullish trend reversal in stock price in the coming days.
The recent low of 15,671 is not far from the current levels now and the moment we slide below it, it will create a panic kind of situation in the market. Below this, 15,350-15,200 are the next levels to watch out for, says Sameet Chavan of Angel One
SRF has seen consolidation between Rs 2,700 and Rs 2,000 odd levels for the last six months and formed a base for the next leg of rally. Now it is showing a breakout on upside.
"In the coming week, 17,600 followed by 17,400 are likely to provide some cushion for the index and till the time, we do not close below these key levels, we would continue with our 'buy on decline' strategy," Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, said
Godrej Consumer Products is trading near 50-day SMA and the chart structure suggests a strong possibility of continuation of the uptrend in the near future
Tata Consumer Products is maintaining higher top, higher bottom formation on all the time frames after the recent correction from Rs 889–650).
Thermax is in a strong uptrend, where it is respecting its 50 and 20-DMA after a minor pullback, and is now ready to move above the previous swing high of Rs 2,175, which may lead to fresh bullish momentum towards Rs 2,300
The biggest beneficiaries would be the infrastructure segment, capital goods, real estate, railways, power, fintech, agriculture, defence and banks, say experts. One of them said the Budget will be negative for the entire PSU and PSU bank space since there were no major announcements on divestments.
The Nifty 50 extended its gains over the past four weeks to 7.5 percent, which indicates a positive momentum. If the uptrend persists, a record high can’t be ruled out in the coming days, experts said.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today.
To be on the safer side, we advise traders to keep booking profits in the rally and avoid taking aggressive longs for a while, said Sameet Chavan of Angel Broking.
Nifty has been forming an indecisive candle pattern for the last three weeks on weekly charts. This shows fatigue in market sentiment at higher levels which can cause some correction if the Nifty breaches 15,430, said Vidnyan Sawant of GEPL Capital
Going ahead, bias is on the positive side till the time Nifty is holding above 14,800
Nifty is trading at an all-time high and although there’s no limit on the upside, reciprocal retracements usually indicate the point where the markets could resist.
The most noted point after September quarter earnings season was that more than 100 stocks witnessed upgrade in rating to buy from brokerages.
At the same time majority of the momentum oscillators & indicators are in the overbought zone, hence the possibility of correction towards the line of polarity placed around 12,400 cannot be ruled out.
Gaurav Garg of CapitalVia feels the LTC and reintroducing of Special Festival advance scheme for government employees are expected to boost the consumer demand by additional Rs 36,000 crore.
Crucial support lies near the line of parity standing near 11,300 marks. Moreover, Flag pattern breakout on the weekly timeframe is valid until it is trading above the crucial support of 11,111.
Even management commentary gave the market a confident outlook to withstand businesses against the COVID spread and its impact.
In the coming months, the broader markets will outperform the benchmarks if the growth comes back on track, say experts.
Weakness if any would only need validation below 10,880 for any larger degree corrective move.