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 consolidation in the market is expected to continue, with a focus on stock-specific action amid the earnings season. Below are some trading ideas for the near term.
The Nifty is likely to maintain an upward rally towards 24,900-25,000, with immediate support at 24,600-24,500 levels. Here are some trading ideas for the near term.
Bharat Dynamics decisively surpassed its previous record high of February 27 and ended at new closing high of Rs 2,046 with robust volumes. The stock has formed long bullish candlestick pattern on the daily timeframe.
Experts are hopeful of further uptrend towards 22,700-22,800 in the coming sessions, with support at 22,300-22,200 levels, and the volatility index diving to November 2023 lows
On the higher end, finding resilience is challenging in uncharted territory, though 22,600-22,650 could be seen as the following potent targets for Nifty in the current week.
The Bank Nifty index, a major heavyweight, still lacks conviction, and its participation is crucial to strengthen momentum in the coming week.
The parameters remain overbought, with 21,800-21,850 being the immediate hurdle in Nifty, followed by 21,900-22,000 for the upcoming week.
Laxmi Organic Industries has seen a decisive breakout of almost four-month consolidation and rallied 8.4 percent to Rs 285.85. The stock has formed robust bullish candlestick pattern on the daily charts with multi-fold jump in volumes.
Craftsman Automation has maintained formation of the Higher high & Higher Low since April 2021. In the first week of May 2023, the stock gave a breakout of the Descending Triangle pattern, indicating continuation of the prior uptrend.
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.
On the Options front, we have maximum Call Open interest at 19,000 strike, which is Out-Of-Money (OTM) indicating the traders are betting big on 19,000 mark again. Whereas on the Put side, the maximum open interest was at 18,000 strike, suggesting crucial support area for the Nifty in January series
IRB Infrastructure Developers has been making higher top higher bottom formation on the monthly chart. Primary trend of stock is positive as it is trading above its 100 and 200-day moving average.
JK Lakshmi Cement shares jumped more than 10 percent to end at record closing high of Rs 825.35 and formed robust bullish candle on the daily charts with healthy volumes. It has been making higher highs for 10th consecutive session.
Experts point out select mid and smallcaps look good for medium to long term horizon. They name about 20 favourite stocks
"ICICI Bank's valuations are attractive at current levels and it is among our top picks in sector," Jefferies said.
This Friday, Nifty continued its northward trajectory and with the help of complete gush, managed to clock fresh record highs beyond 12,300.
Rusmik Oza of Kotak said high expectations from the Budget could lead to a good start for Indian equities in 2020.
Hence here are 11 stocks where brokerages initiated coverage with a buy call, which could give 10-73 percent return:
A decisive break above 11,700 will definitely offer a range breakout, which will further open the gates for the index to retest 12,000 levels
Experts feel Diwali 2019 to Diwali 2020 period could be an exciting phase for the markets, expecting the market to return 15-25 percent.
The immediate support for Nifty is placed at 10,740 below which further selloff can be seen which could drag the Nifty50 towards 10,600 levels.
The brokerage feels product diversification and value addition are keys to growth.
The risks to portfolio would be geopolitical tension and global recession (as there are expectations of economy slowdown in US and Europe), Edelweiss said.
Mitessh Thakkar of mitesshthakkar.com recommends buying Dr Reddy's Labs with a stop loss of Rs 2592 and target of Rs 2680, Lupin with a stop loss of Rs 851.5 and target of Rs 890 and Finolex Industries with a stop loss of Rs 547 and target of Rs 585.
Expects these players to benefit the most from transition to organised segment.