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 sector was in focus in Union Budget 2021. Finance Minister Nirmala Sitharaman in her Budget speech announced an outlay of Rs 2,23,846 crore for health and well being.
Nifty may face a strong resistance near 14,250 which is capped under 21-day EMA. On the lower side, support can be seen at 13,700.
India VIX, after facing a stiff resistance near 25.50 levels, has closed below 22 levels, drifting six percent lower for almost two consecutive days.
Post Q2FY21, ICICI Direct marginally revised its FY21-22 estimates and introduce FY23 estimated numbers. Going forward, it expects Nifty earnings to grow at 17.5 percent CAGR in FY20-23.
June and March quarter earnings indicated that lot of sectors did not have much impact of COVID-19-led lockdown. As a result, lot of stocks saw an upgrade in rating to buy.
The Bank Nifty index has been a laggard in the current upmove and may outperform the broader markets with key potential targets of 23,800-24,100 levels over the next few weeks.
After some tough years, the pharma sector is performing well and is around 25 percent up while the broader market is down 20 percent year-to-date.
Aashish Somaiyaa of Motilal Oswal Asset Management Company advised that one should avoid panic and remain invested.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
A stable move above 12,000 levels will invalidate resistance and it will strengthen the index to record new life-time-high till 12,300 odd levels.
Breaking below 11,935, we expect profit booking towards 11,802. The low of 11,802 is now key pivotal support level for the market in the short term.
Mitesh Thakkar of miteshthakkar.com recommends buying Bank of Baroda above Rs 104 with stop loss of Rs 100 for target of Rs 109 and Divis Labs with a stop loss of Rs 1785 for target of Rs 1880.
Ashwani Gujral of ashwanigujral.com recommends buying Cholamandalam Investment with a stop loss of Rs 324, target of Rs 338 and State Bank of India with a stop loss of Rs 319, target of Rs 334.
Ashwani Gujral of ashwanigujral.com advises buying HDFC Life with stop loss at Rs 625 and target of Rs 650.
Volatility needs to move below 16 for market up move to sustain. However above moving 18, could lead to profit booking in market.
The S&P BSE Midcap index shed 1.31 percent, Smallcap Index was down 0.90 percent and S&P BSE Largecap Index fell 0.59 percent last week.
A sustained trade above 10,900 will trigger a short-covering rally to levels of 11,010-11,100.
Bank Nifty is trading below 20, 50 and 100 day SMA's which are important short term moving average, indicating negative bias in the short to medium term.
Sudarshan Sukhani of s2analytics.com advises buying Divis Labs with stop loss at Rs 1590 and target of Rs 1650 and Indraprastha Gas with stop loss at Rs 310 and target of Rs 325.
Ashwani Gujral of ashwanigujral.com recommends selling Jindal Steel & Power with a stop loss of Rs 134, target of Rs 126, Raymond with a stop loss of Rs 710, target of Rs 685 and Hero MotoCorp with a stop loss of Rs 2430, target of Rs 2350.
It would be wise to remain cautious at the current juncture as upside seems to be limited.
The daily chart analysis indicates that the Nifty has formed a ‘Hammer’ kind of a candlestick pattern and a close above the 11400 mark would confirm that a short-term recovery is on the cards.
Prakash Gaba of prakashgaba.com recommends buying JSW Steel with target at Rs 298 and stop loss at Rs 289, Raymond with target at Rs 820 and stop loss at Rs 787 and L&T Finance Holdings with target at Rs 155 and stop loss at Rs 148.
Sudarshan Sukhani of s2analytics.com recommends buying Mahindra & Mahindra with stop loss at Rs 660 and target of Rs 675, Divis Labs with stop loss at Rs 1698 and target of Rs 1730 and United Spirits with stop loss at Rs 536 and target of Rs 565.
Sudarshan Sukhani of s2analytics.com recommends buying Bajaj Finance with stop loss at Rs 2970 and target of Rs 3080, Berger Paints with stop loss at Rs 322 and target of Rs 327 and Hindustan Zinc with stop loss at Rs 272 and target of Rs 285.