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
Given the prevailing negative sentiment, the trend in benchmark indices is expected to favour bears in the upcoming sessions. Below are some trading ideas for the near term.
The support for Nifty50 lies at 20,850, below which the market may witness a healthy correction in the short term.
Looking at the positional technical setup, it would be advisable to lighten long commitments in the resistance zone of 19,230-19,333.
Crucial support for the Nifty50 is expected to remain at 18,800, the low of the last week, as beyond this point, it may slide down to 18,600-18,500. On the higher side, the immediate hurdle will be at 19,200-19,300, followed by 19,500
On the higher end, a resistance level is noted at 19,000 on the Nifty, where Call writers are waiting to defend the price level.
GNFC has given a strong breakout on the daily chart with a sharp surge in volumes. The stock has broken out from a falling channel pattern which was in force for the last 2-3 months.
The next support is placed at 200-day SMA of 17,368, which coincides with Budget day's low, as breaking this may drag the Nifty towards 17,000 level, whereas the near-term resistance is expected at 17,600 followed by 17,700-17,800
Experts feel the 17,800-18,200 range is expected to break on either side after the announcement of the Budget, hence, if the Nifty breaks 18,200, then 18,500 is the level to watch out for
Sun TV Network is expected to be giving a breakdown of a wedge like pattern on the daily timeframe after seven months with decent volumes and the supertrend indicator is also indicating a downwards move which can be used as a confluence towards the bearish view.
ABB India has remained resilient amid the market sell off on Wednesday. Besides, the price has been taking support around the 200-DMA (day moving average), suggesting a possibility of recovery over the short term.
According to experts, 18,450-18,500 is likely to be a crucial area for further upside. If the said zone sustains, then new highs are possible in the coming days, with support at 18,300, followed by 18,000 levels
GNFC is expected to be retesting a breakout of a rounding bottom formation after five years on the weekly timeframe whereas on the daily timeframe the stock is likely to be taking support from a support zone and bouncing with high volumes which can be used as a confluence towards the bullish view.
IFB Industries surged more than 11 percent to Rs 985.20 and formed robust bullish candlestick pattern on the daily charts with large volumes, giving a highest close since September 21.
On daily time frame prices after consolidation, the Bollinger band has started to expand where prices on July 18 had closed above upper Bollinger band. This tells that the volatility of L&T Infotech is rising on the upside.
Eicher Motors is in a consolidation phase as the prices have been oscillating within a broad channel. Until the stock surpasses above the resistance of the channel, one should avoid bottom fishing here and existing longs, too, can be lightened on pullback move towards the resistance zone.
"From an investor point of view, one can buy in small tranche of Sharda Cropchem at current levels and another tranche at Rs 660 for an expected upside till Rs 780 and plausible support is seen at Rs 640."
GNFC is moving in a rational uptrend since March 2020. The upmove in the stock has been backed with good volume buildup indicating long participation in the counter.
GNFC is in strong uptrend across all timeframes forming a series of higher tops and bottoms. The stock is well-placed above the 20, 50, 100 and 200-day SMA which reconfirmed bullish trend.
On the benchmark index front, Nifty has immediate resistance at 16,959 and 17,027 levels. The downside support for the index is placed at 15,834, said Vidnyan Sawant of GEPL Capital
The Nifty 50 must surpass 16,800-17,000 levels to gain strength, which is possible if geopolitical tensions ease. However, 16,400-16,200 will act as crucial support levels, experts said.
Broadly Vidnyan Sawant of GEPL Capital expects the Nifty to trade in a range of 17,000-17,800 levels. For any further upside, it is important that the index breaks and sustains above 17,800 mark.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today.
The Nifty 50 extended its gains over the past four weeks to 7.5 percent, which indicates a positive momentum. If the uptrend persists, a record high can’t be ruled out in the coming days, experts said.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today
Stocks from sectors like PSU banks, metal and pharma should be kept on radar for generating trading gains, said Vinay Rajani of HDFC Securities