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
Prakash Gaba of prakashgaba.com is of the view that one can buy Apollo Hospitals with target at Rs 1060 and stop loss at Rs 1020 and also buy Power Grid with target at Rs 205 and stop loss at Rs 198 while advises selling Indian Oil Corporation with target at Rs 163 and stop loss at Rs 170.
A rate hike is something which might not be taken in a positive light by most of the sectors
Positional traders are advised to buy into this counter for a target of Rs 3,749. A stop-loss suggested for the trade is below Rs 3,500.
Investors are advised to remain cautious and watch out for two levels: 10,770 on the upside and 10,550 on the down.
Mitessh Thakkar of mitesshthakkar.com is of the view that one may buy Bajaj Auto with a target of Rs 2980.
The company sold 7,06,365 units in May 2018 against 6,33,884 units in May 2017.
Global brokerage houses have upgraded a few stocks, highlighting robust Q4 FY18 results. Moneycontrol takes a look at six such stocks which have seen a ratings upgrade
"We believe margins would be stable in future due price increases and cost controls will help offset the impact of higher commodity prices and increase in competitive intensity," says Sumit Bilgaiyan, Founder of Equity99.
"At current market price of Rs 3,668, the stock seems expensive to us and earnings growth in coming quarters and onset of monsoons will drive the trend of stock prices," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
Top contrarian buy calls include Hero MotoCorp, Tech Mahindra, LIC Housing Finance, Hindustan Petroleum Corporation (HPCL) and NMDC.
We expect Nifty50 will continue to consolidate in a broad range of 10,300-10,500 for the next few trading sessions before giving any fresh breakout on either side," says Aditya Agarwal, Head Technical Research at Way2Wealth Brokers Pvt. Ltd.
Here is a list of top 12 wealth-creating ideas by experts with a time horizon of next 2-3 years.
VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities is of the view that one can buy Bank of Baroda and Titan Company.
Chandan Taparia of Motilal Oswal Securities recommends buying Hero MotoCorp, Bharat Forge and Asian Paints.
"The Nifty has formed 'Hammer' candlestick pattern indicating a short term reversal. Furthermore, on hourly scale, oscillators like RSI & MACD has given positive crossover which is a bullish sign," says Rajesh Agarwal of AUM Capital.
Ashwani Gujral of ashwanigujral.com recommends buying Titan Company with a stop loss of Rs 810, target of Rs 840, Reliance Industries with a stop loss of Rs 900, target of Rs 925 and a buy also on Jubilant Foodworks with a stop loss of Rs 1990, target of Rs 2050.
Mitessh Thakkar of miteshthacker.com is of the view that one can sell Petronet LNG and buy Motherson Sumi Systems.
Credit Suisse has upgraded Aurobindo to Outperform from Neutral rating with a target price at Rs 750 per share as the stock is attractive for low valuations at 13x FY19 EPS.
As many as 20-30 bluechip names are trading almost 50 percent discount to their 5 year average of price to earnings multiple and can be considered attractive for investment purpose.
A rate cut or a rate hike, investors are advised to stick to quality rate sensitive stocks which can outperform benchmark indices, suggest experts.
Mitessh Thakkar of mitesshthakkar.com suggests selling Ambuja Cements and HCC.
Morgan Stanley has Overweight call on PNB with a target price at Rs 215 per share as the company reported stable asset quality and provisions were 12 percent higher than estimate.
Sandeep Wagle of powermywealth.com recommends selling Bharat Petroleum Corporation and Hero MotoCorp.
“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.