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
With the continuous nine-day winning streak, the support level continues to shift higher as we now see immediate support in the zone of 17,700 - 17,600; whereas 200-SMA around 17,500 is likely to act as a sacrosanct level
The entire capital goods space has been bucking the trend in recent challenging times and Cummins India specifically is completely on a roll.
Cummins India has given a breakout of the triangle formation on the daily chart. It has retested its previous breakout level of Rs 1,550 after hitting a fresh 52-week high. The structure of the counter looks classical as it is trading from all its important moving averages.
After breaking out from the downward sloping trendline on the daily chart, Religare Enterprises is consolidating during last few days, indicating relative strength in the stock. Short and medium term trend remains positive as stock price is trading above all important moving averages.
KIMS Hospitals is in a clear higher high, higher low formation indicating bullish undertone of the prices.
The paper stocks were buzzing last week as we witnessed buying interest in some of the counters with good volumes. Satia Industries has seen a breakout from a long consolidation phase and has resumed its uptrend with a ‘Higher Top Higher Bottom’ structure
Cummins India rose 3.4 percent to end at record closing high of Rs 1,293 on Friday, and forming three white soldiers kind of pattern on the daily charts with large volumes. In fact, it has broken the consolidation of several weeks on Friday.
Indraprastha Gas climbed 7.5 percent to Rs 408.1, the highest closing level since January 21 and formed large bullish candle on the daily charts with strong volumes for third consecutive session, following high wave kind of candle formation.
The RSI indicator plotted on the daily charts is forming higher top higher bottom and sustaining above 55 mark indicating positive momentum of Tata Power Company
Shitij Gandhi of SMC Global expects momentum to continue towards north in upcoming sessions as well, as still lot of short position is held with Call writers which could trigger further short covering as far Nifty holds above 17,000 mark.
Nifty has given a bullish pole flag pattern breakout on the weekly chart and higher high higher low formation is likely to continue ahead.
The banking index is facing a strong hurdle in the range of 36,200-36,400, above which, the index could continue its journey towards 37,000.
As far as supports for Nifty are concerned, the immediate levels are 15,700 – 15,670 and the base is at 15,450. As long as the market defends these important supports, the short-term trend remains bullish, said Sameet Chavan of Angel Broking
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.
Nifty has crossed its multiple resistance levels near 12,000 and one can expect a new high with mid-caps and small-caps outperforming the broader markets.
Nifty will find support near its band of short-term averages of 11,430-11,480 and also 61.8 percent retracement of the recent up move from 10,800 to 12000.
Nifty registered a high above its previous double top resistance which indicates the continuation of higher high higher bottom formation on the daily timeframe.
Index traders can wait for consolidation or mild retracement to enter long and expect the bias to be on the positive side until the prices are trading above 10,020 levels.
Given the sharp fall in stock prices across sectors, most experts advised accumulating quality and fundamentally strong scrips with a long term perspective.
Prakash Gaba of prakashgaba.com recommends buying Asian Paints with target at Rs 1880 and stop loss at Rs 1830 and Axis Bank with target at Rs 750 and stop loss at Rs 730.
Prakash Gaba of prakashgaba.com recommends buying Balkrishna Industries with target at Rs 1180 and stop loss at Rs 1143 and Bharti Airtel with target at Rs 582 and stop loss at Rs 554.
Mitesh Thakkar of miteshthakkar.com recommends buying Biocon with a stop loss of Rs 300 for target of Rs 330 and L&T Finance Holdings with a stop loss of Rs 127 for target of Rs 140.
Sudarshan Sukhani of s2analytics.com recommends selling Balkrishna Industries with stop loss at Rs 1089 and target of Rs 1050 and Tata Elxsi with stop loss at Rs 955 and target of Rs 925.
Rajat Bose of rajatkbose.com recommends buying Ashok Leyland with stop loss below Rs 80.75 for target of Rs 90 and Aditya Birla Capital with stop loss below Rs 103.30 for target of Rs 112 and Rs 114.
Sustained move above high 12,300 levels will push prices higher towards Fibonacci extension mark of 12,400 which coincides also with the cup and handle pattern targets