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
On last Friday, Cipla finally managed to traverse through a neckline resistance of ‘Inverse Head and Shoulder’ pattern around Rs 960 on a closing basis. In addition, the positive placement of ‘RSI-Smoothened’ is likely to provide the much-needed impetus for the next leg of the rally
As long as the Nifty trades above 15,500, one should continue to trade with a positive bias and look for stock-specific buying opportunities during the week, says Ruchit Jain, of 5paisa.com
Brokerages see opportunities in companies including Star Health, Data Patterns, Cipla, Aditya Birla Capital and KPIT Technologies
GNFC is in strong uptrend across all timeframes forming a series of higher tops and bottoms. The stock is well-placed above the 20, 50, 100 and 200-day SMA which reconfirmed bullish trend.
Here's what Malay Thakkar of GEPL Capital, suggests investors possessing these stocks when the market resumes trading today
Traders are advised to stick to the stock centric approach because the real action lies there and we expect it to continue in coming session as well.
Here's what Karan Pai of GEPL Capital, recommends investors should do with these stocks when the market resumes trading today.
Traders are advised to stay light on positions and even if the market attempts to recover, one should avoid aggressive longs till the time 17,700 is not surpassed, says Sameet Chavan of Angel One.
Experts feel the mood at street turned more cautious and nervous after Friday's sharp fall and hence the more correction can't be ruled out if the Nifty decisively breaks 17,000 mark in coming days.
Here's what Mehul Kothari of Anand Rathi Shares & Stock Brokers, recommends investors should do with these stocks when the market resumes trading today.
The only concern is the banking index, which has shown a relative underperformance. But this index is still in a consolidation phase, and there's a good probability of some buying interest emerging. This would further support the benchmark, says one analyst.
"The immediate supports for Nifty are placed around 16,600 and 16,500 while the levels to watch on the upside will be 16,800 and then 17,000," said Ruchit Jain of Angel Broking.
In these uncertain times, when markets are volatile as the country grapples with the frightening rise in COVID-19 infections, experts say investors should go for quality large-cap stocks and use any near-term correction to pick up such shares.
The sector was in focus in Union Budget 2021. Finance Minister Nirmala Sitharaman in her Budget speech announced an outlay of Rs 2,23,846 crore for health and well being.
The key support levels for Nifty in the short-term are 13,750 which is a 61.8 percent retracement level of the rise from 13,131-14,753.
On the long term, "the resumption of economic activity and the vaccination drive will dictate investor sentiment going forward, hence, we remain bullish on markets," Prashanth Tapse of Mehta Equities said.
The most noted point after September quarter earnings season was that more than 100 stocks witnessed upgrade in rating to buy from brokerages.
One should always avoid investing in bad quality businesses because as is said a rising tide lifts all the boats but the end outcome is always bad in investing if one ignores the quality aspect, Shailendra Kumar of Narnolia advised.
On the decisive crossing of 12,400 levels would lift the Nifty to 13,300 levels, said Shrikant Chouhan of Kotak Securities.
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
The volatility index IndiaVIX is hovering below 25 levels from the past couple of weeks which hints of no major movement in the short term.
SBI's economists say the surge in equity markets is not linked to economic recovery and maybe a sign of irrational exuberance.
After some tough years, the pharma sector is performing well and is around 25 percent up while the broader market is down 20 percent year-to-date.
The road ahead for the market is bumpy and a lot will depend on the course of coronavirus pandemic. Moreover, global cues and measures of governments and central banks will remain important factors for the market.
Experts point out that the rabi season ended largely on expected lines and at present, it appears the kharif crop is unlikely to be affected and may see a normal season.