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
Mitesh Thakkar of miteshthakkar.com recommends buying Ashok Leyland with a stop loss of Rs 84 for target of Rs 92 and Dish TV with a stop loss below Rs 13 for target of Rs 14.5.
Ashwani Gujral of ashwanigujral.com recommends buying Jubilant Foodworks with a stop loss of Rs 1230, target of Rs 1275 and Tata Global Beverage with a stop loss of Rs 259, target of Rs 271.
Going forward, we expect the midcap stocks to play catch up to the heavyweights.
Bank Nifty remains a buy on dip till it trades above 28,750.
The S&P BSE Smallcap Index plunged 3.48 percent, while S&P BSE Largecap and Midcap index fell 1.26 percent and 2.27 percent, respectively.
Traders can accumulate the stock in the range of Rs 38-39 for the target of Rs 45 with a stop loss below Rs 36.40, says Rupak De of Bonanza Portfolio.
Nifty fell 168 points, while Sensex was down 417 points in the last week.
Sudarshan Sukhani of s2analytics.com suggests buying Aurobindo Pharma with a stop loss at Rs 780 and target of Rs 810, Mindtree with stop loss at Rs 1150 and target of Rs 1200 and RBL Bank with stop loss at Rs 590 and target of Rs 620.
Sudarshan Sukhani of s2analytics.com recommends buying Torrent Pharma with a stop loss at Rs 1675 and target of Rs 1735 and NIIT Tech with a stop loss at Rs 1125 and target of Rs 1325.
World Crest Advisors LLP bought 44,62,38,855 shares of Dish TV India through market purchase on July 24, 2018 while Hindustan Times bought 1,41,000 shares of Chambal Fertilisers & Chemicals through market purchase on July 27, 2018 and Eriez Industries Pvt.Ltd. bought 40,086 shares of 20 Microns Ltd through market purchase on July 27, 2018.
Rajesh Agarwal of AUM Capital recommends buying Tech Mahindra with stop loss at Rs 649 and target of Rs 667, NTPC with stop loss at Rs 152 and target of Rs 161 and Yes Bank with stop loss at Rs 373 and target of Rs 387.
For the week, Reliance Industries gained 12.31 percent while IDBI Bank jumped 18.88 percent. TCS added 3.56 percent while HCL Technologies gained 4.17 percent and Shilpa Medicare registered a gain of 5.39 percent.
Rajesh Agarwal of AUM Capital recommends buying HCL Technologies with stop loss at Rs 940 and target of Rs 984, Mahanagar Gas with stop loss at Rs 817 and target of Rs 855 and Hexaware Technologies with stop loss at Rs 501 and target of Rs 525.
Jayant Manglik of Religare Broking said though the Nifty is still showing resilience despite the global turmoil, continuous underperformance has turned sentiment bearish in the broader market.
We advocate creating fresh shorts in the given range of Rs 71.50-72.50, says Vinay Rajani of HDFC Securities.
In terms of returns, the BSE Midcap and Smallcap indices saw a cut of 11 percent and over 14 percent so far in 2018, compared to an over 1 percent return in the Sensex.
Mitessh Thakkar of miteshthacker.com is of the view that one can buy KPIT Technologies with a stop loss of Rs 260 and target of Rs 290 and Power Finance Corporation with a stop loss of Rs 74 and target of Rs 79 while one may sell RBL Bank with a stop loss of Rs 505 and target of Rs 477.
"We expect Q4FY18 results to be loaded with lots of adjustments as it would be the first quarterly results of the combined entity. However, from Q1FY19 onwards, we expect operating and financial performance to improve sequentially. Currently, we have a buy rating on Dish TV with a target price of Rs 115," says Sumit Bilgaiyan, Founder of Equity99.
Dish TV, Biocon and IIP and CPI are on investors’ radar on Friday.
"Nifty has formed Bullish Candles for three consecutive days. Index might face strong hurdle around 10430-10455 levels i.e. 100 and 50 SMA respectively," says Rajesh Agarwal of AUM Capital.
Dish TV, M&M and Tata Motors, among others, are being tracked by analysts on Friday.
Jay Thakkar of Anand Rathi Securities is of the view that oen may buy NIIT Tech with a target of Rs 912.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Firstsource Solutions and Future Lifestyle and can sell Dish TV.
Mitessh Thakkar of miteshthacker.com recommends selling Bosch with a stop loss of Rs 18,900 and target of Rs 18,200, Shree Cements with a stop loss of Rs 16,850 and target of Rs 16,000 and Zee Entertainment with a stop loss of Rs 576 for target of Rs 545.
Citi has however cut target of the stock to Rs 90 from Rs 100 and is of the view that though current EBITDA is far worse than its peers, it expects better trends in FY19.