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 market is expected to consolidate further before potentially entering a fresh leg of upward movement. Below are some trading ideas for the near term.
The consolidative phase is likely to continue in the market despite the overall positive trend. Below are some trading ideas for the near term.
The momentum is expected to remain positive, but considering the 1,000-point rally over the last two sessions, some consolidation cannot be ruled out. Below are some trading ideas for the near term.
Below 15,600, Nifty could change its trend from bullish to bearish and till that happens, traders should make stock and sector-specific bullish bets, said Vinay Rajani of HDFC securities.
Prabhudas Lilladher prefers companies with low debt, good corporate governance, lean working capital cycle and 2-3 years of revenue visibility (order book).
Jagannadham believes buying will sustain in quality mid-caps and small-caps.
Despite the expected volatility, here are top 10 stocks where analysts initiated coverage with a buy rating in February
Reliance Securities’ Rajeev Srivastava advises investors to invest in quality stocks, which are less vulnerable to macro concerns and have healthy cash flow visibility
"We are confident about 20 percent CAGR revenue growth over FY17-20E coupled with improving operating margin," says says Shailendra Kumar, Chief Investment Officer at Narnolia Securities.
Going forward, if Nifty fails to trade above 10290 can resume the corrective wave dragging the Index lower to levels of 10080-10000.
"A sustained trade above Rs 320 can trigger a breakout from the channel resuming the uptrend. On the weekly chart, the stock has turned upwards after forming a tweezers bottom suggesting bull trend reversal on cards," says Aditya Agarwala of YES Securities (I) Ltd.
Moneycontrol attempts to identify stocks that wise investors should use to duck and weave through this particular storm.
The buying interest around TV Today Network picked up momentum in the last three months which saw its shares rising a little over 50 percent in the same period.