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 is likely to remain rangebound with focus on the Iran-Israel conflict. Below are some short-term trading ideas to consider.
The market is expected to continue rangebound trading until the index decisively surpasses and sustains above the high of the month of May. Below are some short-term trading ideas to consider.
Overall, the trend remains positive, though some profit booking and consolidation in the upcoming sessions can't be ruled out after the robust gains of the previous session. Below are some short-term trading ideas to consider.
The market may extend the downtrend if it breaks the 10-day EMA (Exponential Moving Average) amid likely consolidation, while the VIX in the lower zone supports bulls. Below are some trading ideas for the near term.
Hindustan Copper has formed Bullish Engulfing kind of candlestick pattern on the daily charts, indicating the possibility of positive mood in the counter going ahead.
In light of the overall chart structure, Vidnyan Sawant maintains a bullish stance on Nifty 50 with specific targets set at 21,593 and 21,800 for the short to medium term.
AI is finding demand among various Indian companies for technology, sales, customer support and marketing. These stocks may gain from the artificial intelligence play.
Cyient has formed long bullish candle on the daily scale with above average volumes, with making higher tops higher bottoms formation for third consecutive session. The stock jumped 4.6 percent to end at record closing high of Rs 1,287.
Jubilant Pharmova shares rallied nearly 6 percent to Rs 342 and formed bullish candlestick pattern with long upper and lower shadows on the daily timeframe, with strong volumes. The stock has been making higher tops, higher bottoms for the second consecutive session.
Cyient is in a classical uptrend and is forming higher highs and higher lows on the daily chart. The structure of the counter is lucrative, as it is trading above each of its significant moving averages.
Great Eastern Shipping Company shares rose nearly 4 percent to Rs 624 and formed long bullish candlestick pattern on the daily timeframe with above average volumes.
Cyient is clearly one of the rank outperformers as we can see a series higher highs higher lows in daily time frame chart.
Cyient was also in focus, rising over 2 percent to Rs 974, and formed bullish candle on the daily charts with above average volumes. The stock has been making higher highs higher lows formation for third consecutive session, with trading above all key moving averages.
Union Bank of India shares gained 4.7 percent to close at Rs 66, forming long bullish candle on the daily charts with above average volumes. The stock closed above the median of Monday's red candle, may be indicating positive mood.
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.
Overall experts feel the FY22 would remain strong for the market and economy, though COVID-19 may hit earnings in Q1FY22.
Cyient's revenue stood at $149.2 million, down 3.9/9.7 percent QoQ/YoY against HDFC Securities' estimates of $153 million, while constant currency revenue degrowth was 3.7 percent QoQ.
Most brokerages feel 2020 could be the year for broader markets to do well
Maybank Kim Eng feels a more broad-based participation of stocks and sector rotation is a more likely trend in 2020.
The Nifty Midcap index itself fell 18 percent and around 45 stocks included in the index corrected in the range of 30-90 percent in last 18 months.
Morgan Stanley, which expects the Sensex at 42,000 by December 2019, said the market could start pricing in a stronger election outcome in the coming weeks causing the Nifty to break its four-month range to the upside.
Traders can accumulate the stock in the range of Rs 610-615 for the target of Rs 661 with a stop loss below Rs 593.
Sustained trades above 10,800 may induce a rally towards 11,000 levels in February series.
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Morgan Stanley is overweight on the stock with a target set at Rs 720.