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
While the road ahead looks brighter, analysts and brokerages advise being prudent while picking stocks.
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.
The year 2020 is largely about survival, both health-wise and finance-wise. It is also an opportune time to tweak and tighten the portfolio for the next bull run, said Yes Securities
The market is likely to be stock-specific and experience sector rotations. Therefore, investors should adopt a buy-on-dips strategy only in quality names, said Umesh Mehta, Head of Research, Samco Group.
Maximum Call OI of 23.35 lakh contracts was seen at 12,500 strikes which will act as crucial resistance in the October series.
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.
Majority of the oscillators are in overbought zone and sideways movement to cool off cannot be ruled out.
Jaikishan Parmar of Angel Broking believes this fundraising in this environment would be positive for HDFC.
Given that India will remain a growth market in the long-term one cannot neglect growth stocks for a prolonged period of time, Jyoti Roy advised.
Bank Nifty should witness an upward breakout as multiple higher bottoms in the range of 21,100-21,300 levels and the event of the credit policy is behind.
MACD has given a positive crossover with its average near-equilibrium level of zero on the weekly chart suggests positive bias to continue in mid-term as well.
Interventions by governments and central banks have prevented the economic situation from deteriorating significantly but it is unlikely that the recovery will be a V-shaped one, say experts.
The market's valuations have turned higher than long-period average and investors should be cautious and selective in picking stocks, say experts .
SBI's economists say the surge in equity markets is not linked to economic recovery and maybe a sign of irrational exuberance.
HDFC's most of subsidiaries are among the top three players in their respective segments. HDFC AMC, HDFC Life Insurance Company and HDFC Bank are other listed entities.
Macquarie believes worries about large-scale retail defaults are exaggerated.
Largecaps or sector leaders are the safest bet during a crisis because the recovery momentum generally reflects first in these stocks, say experts.
Prime Minister, Narendra Modi said the package will focus on four factors - Liquidity, Land, Labour and Laws.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
Mitessh Thakkar of mitesshthakkar.com recommends buying Apollo Hospitals with a stop loss of Rs 1,174, target at Rs 1,235 and CESC with a stop loss of Rs 412, target at Rs 450.
Emkay feels housing finance companies (HFCs) are better placed compared to asset finance companies (AFCs).
Motilal Oswal feels markets may continue to fall in near term, and that's the time to start becoming greedy. Hence the brokerage suggests accumulating on a gradual basis.
Mitesh Thakkar of miteshthakkar.com suggests buying HDFC with a stop loss of Rs 2127 for target of Rs 2060.
Sudarshan Sukhani of s2analytics.com recommends buying Berger Paints with stop loss at Rs 540 and target of Rs 560 and Castrol India with stop loss at Rs 134 and target of Rs 146.
The short-term trend remains weak with support for Nifty is coming near 12000-11950 zone, experts say.