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 uptrend is expected to strengthen if the frontline indices decisively surpass short- and medium-term moving averages. Below are some short-term trading ideas to consider.
The momentum is expected to continue in the upcoming session. Below are some trading ideas for the near term.
The rebound after a severe fall can't be ruled out, but the sustainability is key to watch. Below are some trading ideas for the near term.
The market is expected to attempt an upward movement amid likely consolidation. Below are some trading ideas for the near term.
The Nifty 50 is likely to consolidate further in the coming sessions before the start of a new leg of an upmove. Below are some trading ideas for the near term.
Experts suggest that the immediate resistance is likely at 24,850 for the Nifty 50, followed by 24,950, while 24,500 is expected to act as crucial support for the current rally. Here are some trading ideas for the near term.
Despite elevated volatility, the market is expected to maintain an upward journey in the coming sessions, along with intermittent consolidation.
Blue Dart Express has seen a consolidation breakout, trading above all the key moving averages, and has formed a robust bullish candlestick pattern on the daily charts, with a manifold jump in volumes.
On the upside, the levels of 22,200 – 22,450 are anticipated to pose strong resistance in the current week starting from March 26.
ICICI Bank was the outperformer, forming bullish candlestick pattern on the daily charts after Doji or High Wave kind of pattern formation in previous session, with above average volumes. The stock still traded above all key moving averages.
If the Nifty 50 breaks the low of this month around 21,300, the crucial support, then further correction towards 21,000 mark can't be ruled out, while 21,850 will be crucial for further upside in the 'sell on rally' market, experts said
Viraj Vyas advises creating a non-directional spread in Nifty50 by selling 1 lot of 19,100PE and 1 lot of 19,500CE.
Selling on rallies might remain a favourable strategy as long as the Nifty50 remains below the 20,000 mark.
Coal India has also seen a breakout of falling resistance trendline and formed robust bullish candlestick pattern on the daily scale, while the volumes remained strong for second consecutive session.
Oberoi Realty seems to be breaking out from a bullish Inverse Head and Shoulders pattern which emerged following a corrective move. The stock has crossed above the 200-DMA (daily moving average) which stands at Rs 876 and this DMA was almost acting as a proxy neckline for this formation.
Siemens retreated sharply after recent consolidation and record high, falling nearly 4 percent to Rs 3,132. The stock has seen formation of big bearish candlestick pattern on the daily charts, after Doji pattern formation in previous session, but still maintained short term and long term key moving averages.
Tata Steel has given a strong breakout from multiple resistance zones with a sharp surge in volumes. The momentum indicator RSI (relative strength index) has given a positive crossover and surpassed the level of 60, which confirms the buy signal.
After a short-term correction, Dr Reddy's Laboratories has formed higher bottom reversal formation. The stock is consistently taking support near the 50 and 20 day SMA (Rs 4,192, Rs 4,227)
"Till the time this Ukraine-Russia war kind of scenario does not subside completely, uncertainty is likely to loom over markets across the globe. So in such times, it's advisable not to trade aggressively and avoid carrying positions overnight," says Sameet Chavan, chief analyst, technical and derivatives, Angel One.
Until the decisive breakout is not seen on the Nifty, one should expect a rangebound movement and focus on stock-specific action, Sameet Chavan of Angel One advised
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today.
Here's what Malay Thakkar of GEPL Capital, recommends investors should do with these stocks when the market resumes trading today.
Although the trend has been extremely strong, we reiterate that one should avoid getting complacent at such elevated levels, says Sameet Chavan of Angel One.
Experts said the momentum is expected to remain in the bulls’ basket but considering the hefty run-up until last week, some amount of profit-booking and consolidation can’t be ruled out
The recent rally in some steel stocks has raised the concerns of peak valuations, but brokerages find it in line with their long-term historic mean.