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
A rebound may be possible after the severe sell-off, but sustainability is the level to watch given the bearish sentiment. Below are some short-term trading ideas to consider.
The market is expected to consolidate further, although the overall trend remains positive. Below are some short-term trading ideas to consider.
The market is expected to continue rangebound trading in the upcoming sessions. Below are some short-term trading ideas to consider.
The market may see some consolidation after the recent significant run-up. Below are some trading ideas for the near term.
The market is anticipated to sustain its upward bias in the forthcoming sessions. Here are some trading ideas for the near term.
As for the Nifty, going ahead, immediate support is expected around last Thursday’s low of 22,300, which coincides with the 20EMA (20-day exponential moving average), followed by the pivotal support of the bullish gap around 22,200.
Havells India, for instance, saw a breakout of its falling resistance trendline adjoining the highs of March 2 and April 8, and formed a big bullish candlestick pattern on the daily timeframe with healthy volumes.
Engineers India formed robust bullish candlestick pattern on the daily timeframe with significantly higher volumes. The rally of 10 percent was after 5-6 days of consolidation and now the stock traded above all key moving averages.
Looking forward, the immediate resistance for Nifty is identified at the record high level of 21,834, with an additional resistance level at 22,000. On the downside, crucial support levels are recognized at 21,330 and 20,975.
Looking forward, the immediate resistance for Nifty is identified at the 21,500 levels, representing the 78.6 percent Fibonacci extension level.
Tata Communications climbed 4.6 percent to Rs 1,782 and formed strong bullish candlestick pattern on the daily timeframe with above average volumes. The stock sustained above all short-to-long term averages.
Zomato has taken a support at 20-day EMA (Rs 77.15) and climbed 3.5 percent to Rs 80.3. The stock has formed long bullish candlestick pattern on the daily charts with above average volumes.
Engineers India stock has experienced a consolidation breakout on the daily chart, indicating a potential shift in its price trend.
PNC Infratech has seen bullish candle with upper and lower shadows on the daily scale as it rose 2.6 percent to Rs 319 on the NSE. It has seen a breakout of consolidation range, as well as, downward sloping resistance trendline adjoining highs of February 3 and May 8 this year.
At the current juncture, the price action in Container Corporation of India is above William alligator (trend following indicator) which is echoing towards further upside in the counter.
Jubilant Pharmova shares rallied nearly 6 percent to Rs 342 and formed bullish candlestick pattern with long upper and lower shadows on the daily timeframe, with strong volumes. The stock has been making higher tops, higher bottoms for the second consecutive session.
Engineers India shares rallied over 6 percent to hit a multi-year high Rs 97.5 and formed bullish candlestick pattern on the daily scale with good volumes. The stock has seen higher tops, higher bottoms formation for second consecutive session.
Rail Vikas Nigam sustained its uptrend for third consecutive session and registered strong rally (from Rs 77.50 to Rs 130) in last five out of seven days. The stock surged 10 percent to Rs 130 and formed long bullish candlestick pattern on the daily scale, with above average volumes.
Tata Consumer Products which jumped 4.6 percent to Rs 732.5, the highest closing level since February 16. The stock has formed large bullish candlestick pattern on the daily charts with robust volumes, with getting back above 50-day EMA.
Equitas Holdings is on the verge of breaking out from the downward sloping trendline on the weekly chart. Short term trend of the stock is positive as it is trading above its 5, 20 and 50 day EMA.
In terms of broader pattern, benchmark index Nifty50 has shown resistance around downward sloping line which is currently near 17,727 on weekly basis.
Though Elgi Equipments looks lucrative at current levels, one should wait because the stock is trading near its previous top Rs 422.30, which is also all-time high.
On the higher side, Nifty may find an immediate resistance in the range of 13,000-13,100 levels where we have seen Call writing.
Sudarshan Sukhani of s2analytics.com advises buying Asian Paint with stop loss at Rs 1,760 and target of Rs 1,820.
The BSE mid-cap index added 2.35 percent, while the small-cap index rose 1.55 percent and the BSE large-cap index was up 1.20 percent in the past week.