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 current price structure and prevailing trend, Sudeep Shah continues to recommend a “sell on rise” strategy, as any short term pullbacks are likely to remain corrective in nature rather than mark the beginning of a sustainable trend reversal.
Further downward movement seems possible in the market in the upcoming sessions. Below are some trading ideas for the near term.
After the significant weakness over the last four days, the market may see consolidative and rangebound trading with a slightly negative bias. Below are some trading ideas for the near term:
Despite elevated volatility, the market is expected to maintain an upward journey in the coming sessions, along with intermittent consolidation.
In terms of levels, immediate resistance for Nifty 50 is notable at 22,800, a significant level on higher time frames, with further resistance observed at 23,170 and 23,400.
Looking ahead, immediate resistance levels for Nifty are identified at 22,300, representing a pivotal level on higher time frames, with further resistance at 22,500. Crucial support levels are noted at 21,900 and 21,800.
HDFC Bank has seen a decisive breakout of downward sloping resistance trendline adjoining highs of January 16 and March 7 and climbed above 10-day and 21-day EMAs (exponential moving averages).
The upward trending Flag breakout is a bullish sign and can give strong returns in coming weeks. Generally, traders feel the stock can either give flag or pole size target or both can be possible.
HEG formed bullish candlestick pattern with long upper shadow on the daily charts. The stock has seen a breakout of small downward sloping resistance trendline, which is a positive sign.