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
Overall experts feel the FY22 would remain strong for the market and economy, though COVID-19 may hit earnings in Q1FY22.
This is the time to hunt for favourite fundamental stocks which are missing in your long-term portfolio. Experts say this is the time to take advantage of the price corrections
Crucial trendline support is placed at 14,000. A breach of this could lead to 13,700–13,500.
As far as the levels are concerned, 15,050 – 15,200 – 15,400 are the important Fibonacci levels in the upward direction, whereas on the lower side, 14,700 – 14,500 are the key supports.
All-in-all, Yes Securities believes the market will run up ahead of, and in anticipation of an ensuing economic recovery.
Most experts say the rally is expected to continue in broader space, as both midcap and smallcap indices are still below their record highs of January 2018.
Generally, it is believed muhurat trading brings prosperity and wealth throughout the year. It takes place on the Laxmi Pujan day for an hour in the evening.
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.
On the decisive crossing of 12,400 levels would lift the Nifty to 13,300 levels, said Shrikant Chouhan of Kotak Securities.
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
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
A clear picture of how the coronavirus outbreak has hit the banking sector will emerge only after some quarters once the Reserve Bank of India's support wounds up, analysts say.
Bank Nifty traded lower last week but still closed above the 20-day moving average. The banking index is trading above all important moving averages and it should find strong support on the downside.
The immediate requisite for unlocking the directional momentum play would be a definitive close above 11,950-12,065 zone.
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.
Overall, Nifty can trade in a range of 20 DMA standing around 11,350 mark and 200 DMA placed near 10,800 levels for the coming week.
The geopolitical concerns between India-China and global market volatility would continue to weigh on markets in the immediate term.
Neeraj Chadawar of Axis Securities believes that the equity will continue to trade on higher multiples for some more time.
While the market has rallied smartly, the rally has been highly concentrated with the top 15 stocks contributing over 70 percent of the returns.
Infosys fired almost on all cylinders in June quarter earnings, which gave confidence to investors and as a result six out of 10 fund houses raised exposure to the stock last month.
India's stock market remains one of the most promising emerging markets of the world with tremendous growth potential as several structural reforms initiated by the Narendra Modi-led government assures that tomorrow belongs to India.
In muted earnings expectations for Q1FY21, beats were much higher than misses and that was one of major reasons and confidence booster for equity market not only in India but globally.
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.
The June quarter results are in line with expectations and we have not witnessed any major negative price reaction post the numbers.
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.