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 the weekly price chart, the scrip registered a strong bullish candlestick pattern coupled with the solid bullish pattern on last closing session, indicating a positive signal," says Dinesh Rohira, Founder & CEO at 5nance.com.
Based on Fibonacci retracement, support and resistance for the index is placed at 10,417 and 10,780 levels, respectively. With a set of important events lined up in coming weeks, coupled with earnings announcements from index constituents this week, expect heightened volatility.
Rajat Bose of rajatkbose.com recommends buying Havells India with stop loss below Rs 534 for targets of Rs 546 and Rs 553 and a buy also on Varun Beverages with stop loss below Rs 712.90 and targets are Rs 738 and Rs 750.
The index has a string of resistances placed between 10,700 and 10,800 levels which could act as a crucial resistance level in the May series. Hence, technical experts advice investors to remain stock specific as trading in benchmark indices could turn rangebound.
"Technical evidence indicates that the stock is getting accumulated on dips and is now all set to appreciate from here with the rise in momentum," says Vinay Rajani of HDFC Securities.
To conclude, we advise remaining long on the Nifty with an upside target of 10,883, keeping a strict stop loss at 10,630 levels on a closing basis.
Rajesh Agarwal of AUM Capital recommends buying Kotak Mahindra Bank with target of Rs 1240 and stop loss at Rs 1185, a buy in Selan Exploration Technology with target at Rs 270 and stop loss at Rs 252 and a buy also on IRB Infrastructure Developers with target at Rs 295 and stop loss at Rs 272.
On a year-to-date (YTD) basis, as many as six out of 10 stocks failed to even match the Sensex’s return of 1.09 percent.
Top contrarian buy calls include Hero MotoCorp, Tech Mahindra, LIC Housing Finance, Hindustan Petroleum Corporation (HPCL) and NMDC.
Dalmia Bharat, SBI and Ashok Leyland, among others are being tracked by investors on Thursday.
The global investment bank has turned cautious on the midcaps space and prefers quality and growth visibility. The domestic mutual fund's industry has a bias towards mid/smallcaps in general.
CLSA expects earnings to dramatically improve to a 15-20 percent CAGR over the next two years as corporate earnings return to normal with the bad news already priced in.
For the last couple of weeks, the index had been trading in a narrow range but closer to its all-time high levels and on Tuesday, Nifty formed a bearish candlestick covering this range.
Rajat Bose of rajatkbose.com is of the view that one can sell PVR, Just Dial and Federal Bank and can buy Crompton Greaves and Oberoi Realty.
The global investment bank analysed the portfolios of 90 percent (by value) of the domestic equity funds to assess the impact.
The brokerage highlighted how the firm was trying to focus on meaningful innovation rather than incremental changes; targeting to be among the top two across categories.
Credit Suisse increased its earnings estimates for Jubilant Foodworks, Crompton Consumer, Nestle and GSK Consumer.
While retaining buy call on IndusInd Bank with a target price at Rs 2,060, CLSA said it sees 25 percent earnings CAGR over FY17-20 with return on equity of 18-19 percent.
The Goods and Services (GST) Council, which met in Guwahati for a 2-day meet starting Thursday of last week, has decided to keep only 50 luxury and 'sin' goods like tobacco in the highest slab.
Consumer and light electric companies hit fresh 52-week high after the Goods and Services Tax (GST) Council on Friday decided to slash rates on more than 175 items, reducing taxes on these from the existing 28 percent.
The 2-day GST council meeting is underway and the outcome is expected on Friday.
The S&P BSE Sensex rose over 200 points in trade on Friday but there was plenty of action in individual stocks as more than 150 stocks hit a fresh 52-weeks high on the BSE.
TCS, Infosys, Wipro and among others being tracked by investors on Monday.
GDP, IT, media and TCS, among others, are being tracked by investors on Friday.
In an interview to CNBC-TV18's Anuj Singhal, SP Tulsian of sptulsian.com shared his views and outlook on the fundamentals of the market and specific stocks.