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
Stocks to Watch, 03 Feb: Stocks like UPL, PB Fintech, Awfis Space Solutions, Thermax, Indus Towers, Paradeep Phosphates, Akzo Nobel India, Aarti Industries, Chalet Hotels, Honeywell Automation India, PG Electroplast, and Aditya Birla Lifestyle Brands will be in focus on February 3.
Buying momentum is expected to strengthen further if the frontline indices sustain above the 20-day EMA in the upcoming sessions. Below are some short-term trading ideas to consider.
Given the weak sentiment, the benchmark indices may extend their southward journey in the upcoming session. Below are some trading ideas for the near term.
Overall, the market trend is expected to remain positive despite occasional consolidation. Here are some trading ideas for the near term.
Sun Pharmaceutical Industries formed strong bullish candlestick pattern on the daily timeframe with healthy volumes, despite sharp market correction. The stock traded above all key moving averages.
Chalet Hotels sustained uptrend with robust volumes for three days in a row. It has seen a breakout of falling resistance trendline adjoining multiple touchpoints and traded above all key moving averages, which is a positive sign.
The overall market structure remains bullish as long as Bank Nifty remains above the 46,300 mark.
Paytm has seen a breakout of downward sloping resistance trendline adjoining highs of August 25 and September 11 in the beginning of trade and formed long bullish candlestick pattern on the daily timeframe with above average volumes.
KPR Mill formed bullish candlestick pattern with long upper shadow on the daily timeframe with above average volumes. It has also seen a breakout of falling resistance trendline, with trading above all key moving averages.