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 market is expected to continue consolidating within last Friday's trading range. Below are some short-term trading ideas to consider.
The market may extend its rally if it decisively clears the previous week’s high in the upcoming sessions. Below are some short-term trading ideas to consider.
Overall, the market is likely to remain positive as long as it sustains above all key moving averages. Below are some trading ideas for the near term.
Just Dial recorded healthy rally with robust volumes for yet another session, forming strong bullish candlestick pattern on the daily timeframe. The stock traded above all key moving averages, which is a positive sign.
If Nifty slips below its 20-DMA of 19,600, it might indicate a correction towards 19,300-18,888 levels.
Elecon Engineering is looking lucrative on technical fronts. Technically, it is bouncing back from a 38.2 percent retracement of the previous rally. It has witnessed a breakout of the triangle formation with strong volume, which suggests much more potential upside in this counter.
Britannia Industries in the latest week has given a breakout of Inverse Head and Shoulder pattern, indicating beginning of the uptrend. The breakout is confirmed by the Higher volumes and a gap.
HPL Electric and Power is in classical bullish momentum. The overall structure of the counter is lucrative, as it is trading above all of its moving averages
J Kumar Infraprojects has a strong bullish setup where it witnessed a breakout of Descending triangle breakout on the longer timeframe. It has retested its previous breakout Rs 240 level after hitting a fresh 52-week high.
Sun TV Network rebounded from its two years major support of Rs 400 levels. This buying was accompanied with huge volumes which signals buying support near major support zones. The stock is well placed above the 20-day SMA which remains a positive sign.
Indoco Remedies has given a falling trendline breakout with a rise in volume activity. The stock has broken above the previous swing high and negated the lower high lower low formation. The RSI indicator can also be seen giving a trendline breakout and confirming the bullish view.
The broader market has started to show some encouraging signs, with the Nifty Midcap 100 and Smallcap 100 indices rising 3 percent and 4 percent. This should do extremely well if the market remains above the psychological support of 16,000
Nifty is now placed below its 50 and 20-day exponential moving average (EMA) which is placed at 14,626 and 14,657 respectively, indicating a bearish trend for the short term.
The S&P BSE Midcap index was down 0.76 percent and S&P BSE Largecap Index shed 0.78 percent, while Smallcap Index was up 0.48 percent last week.
Any decent declines during the year remain to be a good buying opportunity for investors having longer-term horizon. On the downside, 10460 – 10426 are the levels to watch out for.
Vishvesh Chauhan of Monarch Networth Capital is of the view that one may buy Elecon Engineering with a target of Rs 94.
Krish Subramanyam of Altamount Capital advises buying Alembic with a target of Rs 50.50.
Krish Subramanyam of Altamount Capital advises buying HCL Infosystems with a target of Rs 66.
Krish Subramanyam of Altamount Capital recommends buying Indraprastha Gas for a target of Rs 482 and Sunil Hitech Engineers with a target of Rs 295.
Avinnash Gorakssakar of Precision Investment Services advises buying Jubilant Foodworks with a target of Rs 1930.
Manav Chopra of Networth Stock Broking suggests buying Castrol India with a target of Rs 490.
Mayuresh Joshi, Fund Manager (PMS) at Angel Broking is of the view that one may pick MBL Infrastructures on declines.
Mayuresh Joshi of Angel Broking is of the view that one may prefer JK Lakshmi Cement, Subros and Elecon Engineering.
Mayuresh Joshi - fund manager - PMS at Angel Broking recommends buying Elecon Engineering.
Jai Bala of cashthechaos.com is of the view that one may look at Elecon Engineering, EIH Hotels and Balmer Lawrie.