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
A major theme for 2019 was corporate governance and companies with a good, clean management were rewarded handsomely by the markets – a theme which may well continue in 2020 as well.
Sudarshan Sukhani of s2analytics.com recommends buying Ashok Leyland with stop loss at Rs 84.80 and target of Rs 88 and M&M Financial Services with stop loss at Rs 348 and target of Rs 355.
Mitesh Thakkar of miteshthakkar.com advises selling ITC with a stop loss of Rs 239 and target of Rs 226.
Rajat Bose of rajatkbose.com recommends buying Ashok Leyland with stop loss below Rs 80.75 for target of Rs 90 and Aditya Birla Capital with stop loss below Rs 103.30 for target of Rs 112 and Rs 114.
Maybank Kim Eng feels a more broad-based participation of stocks and sector rotation is a more likely trend in 2020.
Mitesh Thakkar of miteshthakkar.com recommends buying Ashok Leyland with a stop loss of Rs 78.8 and target of Rs 85 and Hindalco Industries with a stop loss of Rs 204 for target of Rs 218.
Prakash Gaba of prakashgaba.com advises buying DLF with a stop loss of Rs 220 and target of Rs 240.
While having a bullish stance, the brokerage raised its price target on the stock to Rs 2,900 from Rs 2,600 earlier, implying 24 percent potential upside from current levels.
BSE Sensex has touched a fresh record high of 41,120.28 and Nifty50 touched a new record high of 12,132.45.
In a rangebound trade, experts advised focusing more on stock selection and trade management. Here is the list of 10 stocks which could return 14-24 percent in next 10-12 months:
The weekly strength indicator RSI is moving upwards and is quoting above its reference line, indicating a positive bias.
Sudarshan Sukhani of s2analytics.com recommends buying Exide Industries with stop loss at Rs 188 and target of Rs 201, HDFC with stop loss at Rs 2150 and target of Rs 2400 and Jindal Steel & Power with stop loss at Rs 141 and target of Rs 152.
Indications are in the favour of further consolidation and we expect the Nifty50 to hover within the 11,700-12,100 range in the coming week.
Ashwani Gujral of ashwanigujral.com recommends buying Axis Bank with a stop loss of Rs 728, target of Rs 750, HDFC with a stop loss of Rs 2200, target of Rs 2310 and State Bank of India with a stop loss of Rs 310, target of Rs 334.
VK Vijaykumar of Geojit Financial Service feels the proposed AIF is better than the earlier one since this also includes projects referred to NCLT.
In the last seven day's rally (From Oct 25 to Nov 5) S&P BSE Sensex rallied 3 percent.
Mitesh Thakkar of Miteshthakkar.com advises buying Bajaj Finserv with stop loss at Rs 8,540 and target of Rs 9,000.
The BSE Sensex already surpassed earlier record-high and made a fresh high of 40,392.22 last week, showing over 11 percent gains from September lows.
Given current market sentiment and high perceived risk towards corporate governance issues, it is best to avoid poorly governed mid and smallcap companies with question marks on their financials, Rusmik Oza advised.
Nifty Put-Call option distribution data is suggesting is support at 11,400 levels and resistance at 11,800 levels.
Traders should use any dip for creating fresh longs as the current trend is likely to remain bullish with Nifty moving towards 11,750-11,800 levels in the coming sessions.
Experts feel that economic activity is likely to remain muted and investors will be better off with companies that are likely to benefit the most from the corporate tax cut.
There is strong support around 11,000 for Nifty, and, if it breaks below that, the Nifty could test 10,850-10,800 levels, experts feel.
For the markets to extend the recent euphoria, the Nifty will have to clear the 11,700-mark.
According to CLSA, GDP growth in FY20 is likely to be around 6 percent, much lower lower than the RBI's 6.9 percent projection.