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
Bulls are likely to remain on the front foot in the upcoming sessions as well and any dip in the prices should be used to create fresh longs.
For the rest of the week the range looks shifted towards 11,700-11,350 as of now.
On the upside, the Nifty needs to sustain 10,800 for the uptrend to continue towards 11,100 and then possibly 11,350.
Aashish Somaiyaa of Motilal Oswal Asset Management Company advised that one should avoid panic and remain invested.
Majority of experts started advising clients to accumulate quality stocks in a gradual manner with a long term view
Positional Support for Nifty is seen at 8,900, and unless that is breached, the short-term trend of the market would be considered bullish only.
Due to the COVID-19 pandemic, most large and mid-cap stocks have corrected significantly. They are expected to remain volatile unless the issue of coronavirus comes under control.
Brokerages and analysts are of the view that the pain caused by COVID-19 may linger and the market is factoring in the hit on earnings and economic fallout from coronavirus outbreak.
After trading in a range of 12,270-12,180 odd levels during the five sessions, Nifty has seen a breakdown from the range, indicating the resumption of correction.
'Better farm income coupled with the measures taken by the government and RBI will help improve demand conditions'
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.
BSE Smallcap index declined 9 percent, BSE Midcap index down 2 percent, while BSE largecap index added 10 percent in last one year.
Brokerages remain mixed on Dr Lal PathLabs performance for the September quarter, with Morgan Stanley maintaining its underweight call on the stock, citing a miss on estimates and valuation issues.
The stock may be bought in the range of Rs 925-930 for the target of Rs 985-1,015, keeping a stop loss below Rs 885.
Aditya Agarwala of Yes Securities says a sustained trade above 11,150 can extend the current upmove to 11,185-11,245 levels
UBS said the relative valuation of small and midcaps suggest that optimism may be priced but not the uncertainties, despite the recent corrections.
CLSA has retained its Underperform rating on Cadila with reduced target price at Rs 440 from Rs 480 per share earlier following cut in FY19-20 margin estimate by 100 bps & earnings by 5-7 percent.
“On the overall basis, long-term capital gains tax doesn’t look dampening and revenue growth assumptions are looking realistic. Investors should focus on sectors/stocks having agri or rural theme. Escorts, Ashok Leyland, M&M, PI Inds and UPL will be positive,” Hemang Jani, Head Equity Sales & Advisory, Sharekhan told Moneycontrol.
Prakash Gaba of prakashgaba.com is of the view that Dr Lal PathLabs may test Rs 1050.
Gaurang Shah of Geojit Financial Services is of the view that one may prefer Apollo Hospitals.
The pharma companies have posted mix earnings in the quarter ended September 2017 on the back pricing pressure and increased competition.
Tata Motors, Dr Lal and Page Industries, among others, are on the radar of investors on Friday.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Motilal Oswal, Hindustan Copper, Engineers India, DHFL and Dr Lal PathLabs and advises selling Escorts.
In an interview to CNBC-TV18's Latha Venkatesh and Anuj Singhal, SP Tulsian of sptulsian.com shared his views and outlook on the fundamentals of the market and specific stocks.
Tata Steel and Welspun India, among others, are on the radar of investors on Tuesday.