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
Eicher Motors jumped 2.7 percent to Rs 3,213 and formed bullish candlestick pattern on the daily timeframe for third straight session, which resembles Three White Soldiers kind of pattern.
Nifty stands at the strong polarity support of 16,800 – 16,750 levels, failing to hold which the index is likely to see a further correction towards 16,450 – 16,400 zones
Eicher Motors has violated the crucial support of Rs 3,090 on closing basis. It took resistance at 200-day SMA in the recent pullback and resumed down trend.
In the near term, the index is expected to take support at 17,600, which has been holding quite well on every closing in the past six consecutive sessions, with resistance at the 18,000-18,250 zone
The trend seems to be reversing for the IT sector as HCL Tech & Infosys see maximum upgrades in the past one month while HUL and Tata Motors were the top stocks to witness maximum downgrades
Pent-up demand continues to propel auto stocks, while rising interest rates auger well for financials. However, the anticipated global slowdown is spoiling the party for IT and metal companies
As long as the Nifty stays above the key support of 17,350, there is no reason to worry but a breach can see take the index to 17,100–17,000
Federal Bank, ICICI Pru Life Insurance, Oberoi Realty among the stocks. With the Sensex and the Nifty reversing losses after the RBI decision, experts say the Nifty’s next stop could be 17,800. Banking and financial services, FMCG, IT, metal and pharma stocks supported the market.
The cooling off of metal prices was the biggest driver for the sector. Metal forms the major portion of auto companies' operating expenses
After a recent low touched on June 20, the index has rallied nearly 11 percent and from March lows, it has risen more than 29 percent, which has been the highest among sectors. The rally has been on the back of a decline in metal prices, the key raw material used by the sector.
Traders should take one step at a time and avoid aggressive trades, as there are clusters of resistances lined up for the NIfty on the way up
Eicher Motors is in a consolidation phase as the prices have been oscillating within a broad channel. Until the stock surpasses above the resistance of the channel, one should avoid bottom fishing here and existing longs, too, can be lightened on pullback move towards the resistance zone.
RBI Monetary Policy | Governor Shaktikanta Das said continued policy support is warranted for a durable and broad-based recovery and efforts will be made to limit disruptions to economic activity
Experts said trades could continue to be rangebound in the coming days and if the Nifty 50 closes decisively above 18,000-18,100, then it may rally towards record high levels.
Brokerages and market experts have been positive about the auto space of late as the sector is among the key beneficiaries of the economic recovery and low-interest rates.
Brokerage firm ICICI Direct pointed out that a healthy festive period and elements of pent-up demand, channel restocking led the auto industry to remain firmly on the recovery path in Q3FY21.
Nifty is still holding well above the weekly pivot of 13,352, while also holding above the value zone of 13,666.
Global brokerage firm CLSA, as per CNBC-TV18, expects the passenger vehicle (PV) segment to outperform in FY22. It has increased FY21-23 PV forecasts by 7-9 percent and for two-wheelers (2Ws) by 1-3 percent.
A significant pick-up in demand was seen for commercial vehicles (CV) while passenger vehicles (PV), two-wheelers (2W) and tractors also did well.
This war between USA & China may intensify further & may take ugly shape going forward, which may change World Power Equation post-COVID-19 era, Amit Jain of Ashika Wealth Advisors said.
Automobile production has been hit by coronavirus disruptions and the BS-VI transition, say experts.
As Nifty is almost 21 percent up from its 52 week low, it confirms a strong bottom is in place and any fall near 8,650 levels would be a good opportunity to create longs in the index.
If VIX sustains above 50 levels, then pressure can be seen in the market. It needs to move below 40 levels for stability to return in the market.
Hence every expert on the street advised buying quality stocks in a gradual manner instead of bulk purchases and waiting for the market bottom which no one has found yet in the history.
Mitesh Thakkar of miteshthakkar.com recommends selling Coal India with a stop loss of Rs 162 for target of Rs 150 and Tata Motors with a stop loss of Rs 109 for target of Rs 100.