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
Nifty has given a bullish pole flag pattern breakout on the weekly chart and higher high higher low formation is likely to continue ahead.
As far as supports are concerned, 16,200, followed by 16,000 are likely to be the key levels for the benchmark, whereas for Bank Nifty, support is visible around 35,500 – 35,200.
On the larger market front, the long-term bullish trend remains intact and the Nifty will move towards 16,450 and 16,687 in the coming days, said Vidnyan Sawant of GEPL Capital.
Nifty witnessed a fresh breakout on charts after almost two months of consolidation in the range of 15,500-15,900. It crossed the 16,000-mark for the first time on August 3
We believe that the long-term bullish trend is intact but in the short to medium term, we might see some profit booking in the benchmark index, said Vidnyan Sawant of GEPL Capital
After a bull run in FY21, the new fiscal year has begun with some uncertainty because of the second wave of COVID-19 and higher commodity prices but analysts remain optimistic about economic growth and corporate earnings, making several stocks very attractive.
As the market seems to have the comfort of valuation now, it is time to lap up quality stocks, analysts point out.
The secondary oscillators suggest that the market is likely to face volatile moves in the upcoming sessions with some consolidation within a broader range of 14,700-15,200.
The base support for Nifty50 has shifted above 14,850–14,900 level. Any dip towards those levels can be used as a 'buy on dips' opportunity.
LIC Housing Finance is the fresh addition in its portfolio as it is a value play (1.0x PBV) supported by pick up in home loan demand, and builder NPL resolutions
The numbers of these large-cap IT players came on the better side of expectations and the outlook for the sector looks positive.
Goldman Sachs has a 'buy' on Infosys, Mindtree, TCS, Tech Mahindra & Mphasis. It has a 'sell' on Wipro and a 'neutral' on HCL Tech and L&T Infotech.
On the technical front, secondary oscillators suggest that volatility is likely to grip the market in the coming sessions.
Brokerage firm Credit Suisse says a pick-up in Accenture’s revenue growth and strong bookings augur well for the demand environment.
Most experts say the rally is expected to continue in broader space, as both midcap and smallcap indices are still below their record highs of January 2018.
Analysts and brokerage firms are bullish on market prospects as events such as the US election is over and positive reports on the vaccine front are giving hopes that soon COVID-19 will be under control.
One should always avoid investing in bad quality businesses because as is said a rising tide lifts all the boats but the end outcome is always bad in investing if one ignores the quality aspect, Shailendra Kumar of Narnolia advised.
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.
Vineeta Sharma, Head of Research at Narnolia Financial Advisors said the robust results posted by IT companies were ahead of their estimates given the increased demand for digital services in the times of COVID-19.
As the COVID-19 pandemic has driven an increased focus on digital transformation, tech spending is expected to hold up better as customers invest to ensure business continuity and seamless operations.
The surge in coronavirus infections, an acrimonious buildup to US elections and geopolitical reasons will keep volatility high that can act as a spoilsport, say experts.
After showing up-move from the lows recently, the Nifty struggled to sustain the gains on September 14 and closed the day lower by 24 points amid high volatility.
Within the recovery theme, sectors like low-ticket consumer durables, cement, hotels and multiplexes are expected to do well.
Nifty50, on the weekly chart, has completed the 'Bearish Bat' harmonic pattern and is currently trading below its potential reversal zone (PRZ).
HDFC Securities maintained positive outlook on IT sector despite the sector recently re-rating to +2-standard deviations (SD) valuations.