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
Ashwani Gujral of ashwanigujral.com suggests buying United Spirits with a stop loss of Rs 556, target of Rs 580, Arvind with a stop loss of Rs 340, target of Rs 357 and Hindustan Unilever with a stop loss of Rs 1580, target of Rs 1640.
IT, Consumer and Capital Goods are likely to report solid earnings growth while automobiles, pharmaceuticals, and cement will continue to witness margin pressures leading to subdued earnings
Mitessh Thakkar of mitesshthakkar.com recommends buying Biocon with a stop loss of Rs 663 and target of Rs 705 and advises selling Container Corporation of India with a stop loss of Rs 628 and target of Rs 585 and Oriental Bank of Commerce with a stop loss of Rs 75.1 and target of Rs 68.
We recommend selling the stock at CMP for the target of Rs 777 and keeping a stop loss at Rs 880 on a closing basis, says Vinay Rajani of HDFC Securities.
Rajesh Agarwal of AUM Capital recommends buying CESC with stop loss at Rs 998 and target of Rs 1035, Kajaria Ceramics with stop loss at Rs 467 and target of Rs 482 and Wipro with stop loss at Rs 300 and target of Rs 320.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Bharat Forge with a stop loss of Rs 658 and target of Rs 690 and Century Textiles and Industries with a stop loss of Rs 940 and target of Rs 1000 and can sell Sun TV with a stop loss of Rs 781 and target of Rs 740.
Strong earnings have helped D-Street to skyrocket to fresh record highs in the last two months and stocks which rose in anticipation of good earnings in the small & midcap space delivered over 100 percent net profit growth.
To justify the support at the lower level, it has to sustain above its 200-DMA which comes around Rs 827 levels.
Investors are advised to stay long as long as the index holds above 10,750-10,700, experts said
Shabbir Kayyumi of Narnolia Financial Advisors advises buying Escorts with a target of Rs 950.
Shabbir Kayyumi of Narnolia Financial Advisors expects the Nifty to trade within a 10,850-11,200 range going forward
Ashwani Gujral of ashwanigujral.com recommends buying Asian Paints with a stop loss of Rs 1380, target of Rs 1420 and KPIT Tech with a stop loss of Rs 296, target of Rs 311.
Rajesh Agarwal of AUM Capital recommends buying Infosys with stop loss at Rs 1290 and target of Rs 1349, Bajaj Finance with stop loss at Rs 2430 and target of Rs 2518 and Titan Company with stop loss at Rs 825 and target of Rs 855.
Analysts’ advise investors to remain with quality stocks which might have fallen less in the carnage as compared to stocks whose value has eroded 50-80 percent in the past 6 months
"The market will take cues from June automobile sales numbers, minutes of FOMC meeting and updates on the monsoon's progress," says Sumit Bilgaiyan of Equity99
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Dabur India with a stop loss of Rs 387.8 and target of Rs 405 and sell DLF with a stop loss of Rs 196.2 and target of Rs 182.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy ACC with a stop loss of Rs 1299 and target of Rs 1345 and sell Escorts below Rs 873 with stop loss of Rs 900 and target of Rs 830 and also sell Bank of India with a stop loss of Rs 94.2 and target of Rs 88.
In terms of returns, the BSE Midcap and Smallcap indices saw a cut of 11 percent and over 14 percent so far in 2018, compared to an over 1 percent return in the Sensex.
"We expect slight dip in EBITDA margins due to rising raw material cost which will put weigh on margins though we are closely watching for average realisation. We have a buy call on Escorts," says Sumit Bilgaiyan of Equity99.
On Thursday, we will witness May series expiry while in evening Government of India will declare quarterly GDP numbers. From Friday, Auto companies will start posting their monthly sales numbers.
Dharmesh Shah of ICICI Direct.com Research is of the view that one may buy Pfizer with a target of Rs 2960.
"We expect Escorts to rally towards its potential target of Rs 1047 in the medium term, translating into a 9 percent upside from current market price," says Hadrien Mendonca, Senior Technical Analyst at IIFL.
Rajesh Agarwal of AUM Capital recommends buying Yes Bank with target at Rs 365 and stop loss at Rs 341, a buy on Tata Steel with target at Rs 589 and stop loss at Rs 569 and a buy also on Wockhardt with target at Rs 810 and stop loss at Rs 780.
"There has been a sharp upside bounce in Nifty in the last three weeks, but this is going to be a temporary trading bounce"
Ashwani Gujral of ashwanigujral.com suggests buying Kotak Mahindra Bank, Axis Bank, PNB Housing, Escorts, SREI Infra and Bajaj Auto.