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 may remain consolidative with rangebound trading until the August high is decisively broken. Below are some short-term trading ideas to consider.
The consolidation is expected to continue as long as the frontline indices trade below the 50-day EMA. Below are some short-term trading ideas to consider.
The benchmark indices need to decisively close above the previous day's high for a further upward move; until then, consolidation may be seen. Below are some short-term trading ideas to conside.
The market is anticipated to sustain its upward bias in the forthcoming sessions. Here are some trading ideas for the near term.
Jigar Patel continues to advise traders to be light from now on and stay stock specific.
HDFC Bank has traded way below all key moving averages (20, 50, 100 and 200 EMA - exponential moving averages) due to single-day big fall, while the stock is 77 rupees away from the low of October 2023 (Rs 1,460).
As the index approaches its all-time highs, there is potential for further upside, with targets set at 21,180 and 21,400.
Varun Beverages traded well above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average) and saw a breakout of falling resistance trendline adjoining highs of September 29, and November 6, which is a positive sign.
NMDC broke the falling resistance trendline adjoining highs of January 13 and August 1, and clocked more than 4 percent gains at Rs 118.70. The stock has seen formation of long bullish candlestick pattern on the daily timeframe, with multi-fold jump in trading volumes.
Sunteck Realty maintained upward journey for fifth consecutive session, rising more than 5 percent to Rs 378, the highest closing levels since December 8 last year and formed long bullish candlestick pattern on the daily charts, with above average volumes.
Castrol India has seen a golden crossover with the 50-day EMA (exponential moving average) crossing 200-day EMA, which indicates possibility of further uptrend.