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
Granules India witnessed positive divergence between the prices and RSI indicator. The divergence is followed by breakout in RSI as well which indicates a strong momentum in the stock prices.
Currently JK Lakshmi Cement is well placed above 20, 50 and 100 day SMA. The daily weekly strength indicator RSI is in bullish terrain which supports rising momentum. The daily "band Bollinger" buy signal indicates increased momentum.
Traders can look to buy Granules India on a decline at around Rs 305 for a near-term target of Rs 322. The stoploss can be placed at Rs 294
Previous swing low support is placed at 17,254 which can act as immediate support for the Nifty.
Key support level to watch out for on Nifty, from a short-term perspective, is 15,600. If the index breaches below this level, we can expect further downside towards 15,450 and 15,100-15,145, said Karan Pai of GEPL Capital.
The sector was in focus in Union Budget 2021. Finance Minister Nirmala Sitharaman in her Budget speech announced an outlay of Rs 2,23,846 crore for health and well being.
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
The Q2FY21, so far, witnessed robust numbers from IT, Pharma, Auto components, select banks, and cement sector companies.
As the uncertainty persists, a stock-specific approach is what one needs to follow in this market.
The index is trading near 261.8 percent Fibonacci projected level, based on the previous week's trading range, suggesting that bears might take a breather.
The road ahead for the market is bumpy and a lot will depend on the course of coronavirus pandemic. Moreover, global cues and measures of governments and central banks will remain important factors for the market.
The market is expected to break out of its 3-month high soon and Nifty may hit 10,300 this week itself, feels an expert
Positional Support for Nifty is seen at 8,900, and unless that is breached, the short-term trend of the market would be considered bullish only.
Last week, FIIs bought equities worth Rs 1,790.6 crore, while Domestic Institutional Investors sold equities worth of Rs 2,620.48 crore
The primary trend of Nifty is bullish as the index is trading above its 50, 100 and 200 DMAs. Higher tops and higher bottoms are well intact. So, technical indicators are suggesting that the positional trend of the market is bullish.
DII and FII buying at various bottoms have arrested the downfall and we see buying interest from various market participants, said Vijay Kuppa of Orowealth.
Market experts advise a prudent, stock-specific approach in such an uncertain market
Mitessh Thakkar of mitesshthakkar.com suggests buying Granules India with a stop loss of Rs 99 and target of Rs 106, NBCC with a stop loss of Rs 55 and target of Rs 64 and Torrent Pharma with a stop loss of Rs 1677 and target of Rs 1800.
On the lower side, 11484 followed by 11436 would now be seen as immediate and crucial supports. At this juncture, a strategy would be to focus on individual pockets that are providing better trading opportunities, says Sameet Chavan of Angel Broking.
Mitessh Thakkar of mitesshthakkar.com suggests buying Balrampur Chini with a stop loss of Rs 76 and target of Rs 81, Bosch with a stop loss of Rs 20,900 and target of Rs 22,000 and Cadila Heathcare with a stop loss of Rs 412 and target of Rs 445.
Ashwani Gujral of ashwanigujral.com suggests buying Dr Reddy's Labs with a stop loss of Rs 2470, target of Rs 2550, NIIT Tech with a stop loss of Rs 1395, target of Rs 1430 and Bank of Baroda with a stop loss of Rs 148, target of Rs 160.
Mitessh Thakkar of mitesshthakkar.com suggests buying IDFC with a stop loss of Rs 47.5 and target of Rs 56, M&M above Rs 945 with stop loss of Rs 934 and target of Rs 980 and Muthoot Finance with a stop loss of Rs 414 and target of Rs 450.
Mitessh Thakkar of mitesshthakkar.com recommends buying KPIT Technologies with a stop loss of Rs 301 and target of Rs 320 and Sun Pharmaceutical Industries with a stop loss of Rs 564 and target of Rs 595 and advises selling Colgate Palmolive with a stop loss of Rs 1136 and target of Rs 1090.
Granules India 1QFY19 sales grew 17 percent YoY to Rs 450 crore, led by finished dosages and APIs.