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
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.
JSW Steel has given a nice breakout of recent consolidation in previous session with 2.4 percent rally and continued uptrend on Thursday too, with 2.6 percent gains to close at Rs 749, the highest closing level since January 19, 2023.
This week, 18,650-18,700 is expected to be a crucial hurdle and, if the index decisively surpasses this area, then 18,800-19,000 levels can't be ruled out
On May 18, HEG shares gained 1.5 percent at Rs 1,241.5, the highest closing since September 2 and formed a bullish candle with long upper shadow on the daily time-frame. The stock has been in a smart uptrend since the beginning of April despite intermittent correction and consolidation
The momentum is intact and the Friday's correction is on expected lines given the consistent uptrend in the past. Hence, once the current consolidation ends, the Nifty50 is expected to resume upward journey once again towards 18,900-19,000 levels in coming days, with crucial supports at 18,500-18,300, experts said
Traders and investors should continue holding ONGC and can expect upside towards Rs 195. A break above of Rs 195 will increase the momentum to take prices towards Rs 210 levels. Downside support for the stock is now placed at Rs 175 level.
Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today.
During this quarter, Nifty has gained 3,500 points or more than 23 percent with four trading days left. This is the highest quarterly gain since the quarter ending June 2009.
We recommend initiating a long position in REC above Rs 144 with a stop loss of Rs 124 and Rs 168.
Interestingly, from these 12 names, there are three stocks that have already more than doubled investor’s wealth in last one year. Sadhana Nitro Chem, HEG and National Peroxide gained 1435%, 117% and 101%, respectively.
PE multiple is widely used as a valuation tool that helps in screening a stock on a relative basis.
Ashwani Gujral of ashwanigujral.com recommends buying ICICI Bank with a stop loss of Rs 315, target of Rs 332, Reliance Industries with a stop loss of Rs 1200, target of Rs 1265 and Ajanta Pharma with a stop loss of Rs 1170, target of Rs 1225.
In terms of returns, the BSE Midcap and Smallcap indices saw a cut of 11 percent and over 14 percent so far in 2018, compared to an over 1 percent return in the Sensex.
10 stocks in LIC’s portfolio that have emerged as multi-baggers in the last one-year
According to Sharmila Joshi of sharmilajoshi.com, one may stay invested in HEG.
The valuation of India market still remains to be rich; hence, any correction owning to global volatility should be used as a buying opportunity to dig into quality stocks.
Interestingly, among the list, only three companies have been able to post positive topline and bottom line growth in each of the first three quarters of 2017.
Pankaj Jain of SW Capital is of the view that one may buy HEG with a target of Rs 2215.