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
Prices have taken resistance at 20 DMA thrice in last few weeks and now finally trading above it suggesting extension of recent up move is likely.
Prakash Gaba of prakashgaba.com recommends buying Berger Paints with target at Rs 330 and stop loss at Rs 316, Federal Bank with target at Rs 95 and stop loss at Rs 88 and GAIL India with target at Rs 360 and stop loss at Rs 344.
Brent crude futures, the international benchmark for oil prices, have slipped around 30 percent since early October to trade around $60 a barrel from around $86 a barrel
Traders can accumulate the stock in the range of Rs 82–83.50 for the target of Rs 92 with a stop loss below Rs 79, says Rupak De of Bonanza Portfolio.
Foram Parekh of Indiabulls Ventures feels that earnings recovery will continue in H2FY19 but at a slower pace
Prabhudas Lilladher says that the current volatility should be used as an opportunity accumulate fundamentally strong stocks for long term.
Price growth in Nifty will mostly come through earnings growth while valuation multiple will see continued contraction, said Vineeta Sharma of Narnolia Financial Advisors
Monthly RSI indicates that stock is bouncing from a long-term support and making it lucrative buy for a short-term gain, says Manali Bhatia of Rudra Shares & Stock Brokers.
Manali Bhatia of Rudra Shares & Stock Brokers said for medium term, 10,000-9,950 is still a major support with more than 51 lakh contract of cumulative open interest
Markets seem to have bottomed out for the short term. The upside targets for the Nifty are seen at 10,380 and 10,600
Mitessh Thakkar of mitesshthakkar.com suggests selling Bata India with a stop loss of Rs 910 and target of Rs 860 and advises buying Federal Bank with a stop loss of Rs 78.5 and target of Rs 86.
The main impact could be in the form of accretion in fresh slippages and the rise in credit costs (especially for SME/MSME/retail) along with weakening credit growth profile.
Shabbir Kayyumi of Narnolia Financial Advisors expects sideways to bullish movement for the Nifty in coming sessions, within a range of 11,450 on the higher side and 11,100 on the lower side
We remain positive in the wake of lower slippages coupled with strong earnings growth.
Going forward, earnings will play a big role in pushing the market to new frontiers but stock specific action will continue.
Traders can accumulate the stock in the range of Rs 81-83 for the target of Rs 93 and a stop loss below Rs 78.
On the daily chart, the index seems to have found support at the lower band of the rising wedge which led to a 100 points rally. The trend looks positive as the Nifty managed to float above its 50-day exponential moving average (EMA).
Mitessh Thakkar of mitesshthakkar.com is of the view that one may buy Bajaj Auto with a target of Rs 2980.
Deutsche Bank maintains its buy rating on Federal Bank but has reduced its 12-month target price to Rs 120 per share from Rs 130 earlier.
The Nifty is expected to face immediate resistance at around 10,760 and 10,790 levels and is likely to find support around 10,640 and 10,600 levels. Moreover, if the index manages to breach 10,790 levels on the closing basis, then a further rally towards 10,950 is possible.
"We expect the stock to extend this rally towards our mid to long-term target of Rs 115.50 with a stop loss below Rs 96 on a closing basis," says Abhishek Mondal, Research Analyst at Guiness Securities.
"Nifty may find support around the 10,600 mark. If it fails to hold this mark, the index may correction till the 10,550 zone. Strong hurdle is seen around 10,660 levels. A decisive trade above these levels would add momentum on the upside," says Rajesh Agarwal of AUM Capital.
On a year-to-date (YTD) basis, as many as six out of 10 stocks failed to even match the Sensex’s return of 1.09 percent.
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