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
While the market may rebound following last week’s sell-off, the key factor to watch is sustainability. Below are some short-term trading ideas to consider.
Despite likely consolidation in the market, experts advised buying 8 stocks for the next week.
The market may remain consolidative, with the continuation of the "sell on rally" strategy. Below are some trading ideas for the near term.
Given the current price action, an upside breakout seems more likely, suggesting that a move above 24,500 could pave the way for further gains in the Nifty 50.
On the weekly and monthly time frame, Welspun Corp is trending higher forming a series of higher tops and bottoms indicating strong up trend. However with Friday's up move the stock has confirmed "Symmetrical Triangle" breakout at Rs 220 levels. This breakout is accompanied with huge volume spurt indicating increased participation.
Jai Corp has reached the momentum phase and could continue to add gains in the days to come. Stock has also broken out from the downward sloping trend line on the weekly charts.
Tata Communications has consolidated and maintained a base near Rs 1,130 levels and has picked up momentum with a bullish candle pattern to imply strength. It has potential to carry on with positive bias in the coming days.
"Schaeffler India is on the verge of breaking out from the last three months' price consolidation. Indicators and oscillators like RSI, DMI and MACD have been showing strength in the current upmove."
While the Nifty is just a couple of percentages away from its all-time high of 16,700, the small and midcap indices are failing to sustain at higher levels.
"We expect profitability to improve going ahead led by price increases taken by the company and maintain a buy with a target of Rs 6,095," says Sumit Bilgaiyan, Founder of Equity99.
"The free float of the company is very small and hence suggest long term investors mainly in the retail segment accumulate it gradually and hold it for a long time," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
According to Prakash Gaba of prakashgaba.com, the level of 10000 is a psychological support and resistance at 10180-10211. Bank Nifty on the other hand has support at 24600 and resistance at 25000.
With synergies playing out in due course, we believe that the company is well placed to capture opportunities arising in both automotive and industrial space in India.
FAG Bearings may see significant upside from current levels, says Bhavin Shah, Equirus Securities.
See 20-25% return in FAG Bearings India over next couple of years, says SP Tulsian, sptulsian.com.