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 Nifty 50 may see further selling pressure in the upcoming session, given the negative sentiment. Below are some trading ideas for the near term.
Navin Fluorine International has seen a consolidation breakout. The stock has formed big bullish candlestick pattern on the daily timeframe, and traded above 10, 21 and 50-day EMA, but still way below 200-day EMA.
Welspun India formed robust bullish candlestick pattern on the daily timeframe with strong volumes. The stock maintained downward sloping resistance trendline breakout in the mid of October as well as stayed above all key moving averages, which is a positive sign.
NLC India has broken out from the bullish Cup and Handle pattern on the daily chart. Price Breakout is accompanied with jump in volumes.
Breaching either side of 18,200-18,450 range can give some kind of direction to the market in the coming days, but having a monthly expiry and FOMC minutes scheduled this week, volatility and consolidation is at the top before any kind of big move on either side of range
After a long bearish trend, the pharma indices have recovered from bottom and formed “Flag & Poll” pattern, which suggests bullish strength in pharma sector.
Dinesh Thakkar of Angel Broking said though MF inflows this year have slowed down, he was very confident that MF inflows will pick up from here on as market sentiment improves
As long as banking index is trading above 28,000, we suggest trading with buy on dip strategy.
Angel remains overweight on discretionary consumption theme with stocks like Safari Industries, Bata, Blue Star and Parag Milk Foods.
In an exclusive CNBC-TV18 panel discussion, market experts SP Tulsian, Dipan Mehta, Daljeet Singh Kohli and Prakash Diwan listed out their top stock bets ahead of the Budget.
Here are top 10 stocks to focus on December 19 - REC, Bank of India, CNX IT Index, TCS, HDFC Bank, Crompton Greaves, Spicejet, GMM Pfaudler, GMDC and India Glycol.
See 50-60% upside in GMM Pfaudler, says Aashish Tater, Fort Share Broking. GMM Pfaudler is a joint venture between Indian promoters and foreign promoters Pfaudler Incorporate which is promoted by Robbins & Myers. Now this is very interesting story going forward because here the downside risk is next to negligible.
GMM Pfaudler can fetch 250% returns in long term, says Rajen Shah, Angel Broking.
Ganesh Shanbhag of SMS Financial has recommended investing in GMM Pfaudler.