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 uptrend is expected to strengthen if the frontline indices decisively surpass short- and medium-term moving averages. Below are some short-term trading ideas to consider.
The market might rebound in the upcoming sessions after a correction in the previous week, but there are doubts over the sustainability of the upmove. Below are some trading ideas for the near term.
The consolidation is likely to continue until the benchmark indices decisively break the tight range of the past four days on either side. Below are some trading ideas for the near term.
Volatility is expected to continue in the market, with support at the current week's low. Below are some trading ideas for the near term.
The phase of consolidation may last as long as the index trades below the 21,000 mark, with immediate support at 20,850 and crucial support at the 20,500-20,300 levels, but if the index decisively closes above 21,000, then 21,500 could be the possibility
Vinay Rajani of HDFC Securities expects markets to perform well in the coming times and dips should be utilised to go long as far as positional trades and investments are concerned.
The last week's low point of 19,250 is expected to be crucial this week as well. A breach of this level may pull down the index up to the psychological 19,000 mark, whereas on the higher side, 19,400-19,500 can be critical hurdles, experts said
Punjab National Bank traded above all key moving averages, with making higher tops for fifth straight day. The stock gained nearly 4 percent to settle at Rs 52.25, the highest closing level since January 31, 2023, and formed bullish candlestick pattern on the daily charts with above averages volumes.
NMDC has also formed bullish candle with long upper shadow on the daily scale, indicating a bit of profit booking at higher levels. The stock closed with 1.7 percent gains at Rs 116.4, with above average volumes. It has been making higher highs higher lows formation for second consecutive session.
Primary trend of Minda Corporation turned positive as stock price closed above its 200 days EMA. Momentum Oscillators like RSI (11) and MFI (10) have witnessed trendline breakout, indicating higher possibility of price to gain momentum from hereon. One can buy the stock in the range of Rs 205-200.
Primary trend of EIH is positive as it is trading above its 50, 100 and 200 days EMA. We expect stock price to end consolidation and resume its uptrend in the days to come.
EIH has broken out from the symmetrical triangle on the weekly chart with higher volumes. It has broken out on the daily chart on Monday to close at five days high.
EIH was the second stock which rose 2 percent to Rs 199, the highest closing level since September 7 and formed bullish candlestick pattern on the daily charts, while Butterfly Gandhimathi Appliances climbed 7 percent to end at record closing high of Rs 1,708 and formed decent bullish candle on the daily charts.
EIH was also in strong momentum, rising nearly 12 percent to Rs 201, the highest closing level since April 2, 2019. The stock has seen formation of robust bullish candle, which engulfed both previous red candles, and the Bollinger Band expanded on both the side and the closing was above the upper band of Bollinger Band. The volume was also strong.
Astral rallied more than 6 percent to Rs 2,314.45 and formed strong bullish candlestick pattern on the daily charts with robust volumes, continuing uptrend for third consecutive session. It has decisively broken the long downward sloping resistance trend line adjoining January 17 and August 25 this year.
Primary trend of EIH is positive as it is trading above its all important short term and long term moving averages. Momentum oscillators like RSI and MFI are placed above 60 and rising upwards, indicating strength in the current uptrend of the stock.
The Nifty 50 lost 0.8 percent last week but stayed consistently above the crucial 17,000 mark as well as the 200-day moving average of about 17,030 in the past six straight sessions. The first half of this week will likely give a fair idea of the short-term direction
As the world reopens, investors can look at companies like IRCTC, IndiGo, Mahindra Holidays among others
Various measure taken by the government and ‘unlocking ‘ of the economic activity has made brokerages confident of an economic recovery and they have been upgrading stocks.
On the higher side, Nifty has been finding stiff resistance in the range of 11,350-11,400.
Atish Matlawala of SSJ Finance & Securities said that rate cut will benefit banks as they will be able to bring down the cost of funds and pass on the benefit to the borrowers
Rajesh Agarwal of AUM Capital recommends buying Container Corporation of India with stop loss at Rs 1300 and target at Rs 1357, a buy in EIH with stop loss at Rs 182 and target at Rs 200 and a buy also in Kansai Nerolac Paints with stop loss at Rs 493 and target at Rs 520.
"We believe the stock has undergone a healthy corrective phase paving the way for the next leg of the up move towards Rs 192," says Dharmesh Shah, Head Technical, AVP at ICICIdirect.com.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 21 points or 0.2 percent. Nifty futures were trading around 10,439-level on the Singaporean Exchange.
Here is a list of top three stocks which can give up to 17% return in the next six months.