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
We expect the Nifty to take a breather after the recent surge but the bias will remain on the positive side, says Ajit Mishra.
Earnings are unlikely to pick up unless there is a meaningful recovery in the economy. But, many stocks are available at attractive valuations which have sound fundamentals.
Nifty is also trading above its two major simple moving averages 100-DMA and 200-DMA that are rising and placed around 11,000. The crossover between them hints at strong uptrend in mid-term
Failure to sustain above 11050 may induce a bigger correction in the market. Whereas on the higher end sustained trades above 11500 may negate the short term weakness and the Nifty may start moving up once again.
Despite the expected volatility, here are top 10 stocks where analysts initiated coverage with a buy rating in February
It is advisable to go long on selective opportunities only and use rally to exit the position, and maintain trailing stop-loss, writes Dinesh Rohira of 5nance.com
Gruh has not only surpassed its long-term 200-DEMA but has also sustained above the same which further accentuates our bullish stance on the stock.
The Nifty may scale new highs if it sustains above 11,800, says Rupak De of Bonanza Portfolio
Rajesh Agarwal of AUM Capital recommends buying Maruti Suzuki with stop loss at Rs 9070 and target of Rs 9380, Lupin with stop loss at Rs 925 and target of Rs 946 and Bharat Forge with stop loss at Rs 618 and target of Rs 658.
The scrip is facing a resistance at Rs 337 levels and crucial support from 100-days EMA is placed at Rs 305 levels. We have a sell recommendation for Infibeam which is currently trading at Rs 322.45, says Dinesh Rohira of 5nance.com.
Stock specific moves likely to happen in selective IT, pharma, NBFC stocks and heavyweights stocks are likely to take the lead while PSU, Auto, Cement, Mid and Small Cap stocks would be under pressure with limited upside.
Rajesh Agarwal of AUM Capital recommends buying Delta Corp with stop loss at Rs 237 and target of Rs 257, Infosys with stop loss at Rs 1255 and target of Rs 1309 and UPL with stop loss at Rs 685 and target of Rs 719.
"This week, we expect the market to remain rangebound between 10,925 on the upside and 10,720 on the downside," Dinesh Rohira of 5nance.com said
"We believe Gruh Finance is a quality company with robust financials. However, in terms of valuations of P/BV of 21x, it is grossly expensive," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
“On the overall basis, long-term capital gains tax doesn’t look dampening and revenue growth assumptions are looking realistic. Investors should focus on sectors/stocks having agri or rural theme. Escorts, Ashok Leyland, M&M, PI Inds and UPL will be positive,” Hemang Jani, Head Equity Sales & Advisory, Sharekhan told Moneycontrol.
Sameet Chavan of Angel Broking advises buying Rallis India with a target of Rs 304.
The positive takeaway for the BJP is that it will form the government for the fifth term in a row despite winning the elections by a small margin. But, there are certain stocks which have always given multibagger returns of up to 4000 percent whenever BJP won in Gujarat since 2002.
Ruchit Jain of Angel Broking advises buying Jubilant Lifescience with a target of Rs 724.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Gruh Finance, Praj Industries, ABB, Bank of Baroda and Colgate Palmolive (India) and advises selling Century Textiles and Industries.
Here is a list of stocks recommended by various experts which are likely to benefit the most from govt’s decision to introduce fiscal stimulus:
Sanjiv Bhasin of IIFL has an overwweight stance on HDFC and LIC Housing Finance and likes Gruh Finance.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Asian Paints, Gruh Finance, HUDCO and Nalco and sell Bharat Forge.
Sudarshan Sukhani of s2analytics.com is of the view that one can sell Bank of Baroda and Tata Motors and buy Vedanta, M&M Financial Services and Indraprastha Gas.
Whenever the market struggles to clear a well-defined resistance zone (9,930-9,950), momentum tends to shift towards broader markets.
Generally August series remains volatile with negative returns if we analyse historical records and the data indicates short buildup by the stronger hand in current series. Going forwards, we advise traders to remain cautious in current series