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
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.
On the upside, the Nifty needs to sustain 10,800 for the uptrend to continue towards 11,100 and then possibly 11,350.
The market's valuations have turned higher than long-period average and investors should be cautious and selective in picking stocks, say experts .
The Nifty50 and the Sensex have rallied 41 percent from the lows of March 23, with leading sectors gaining 32-55 percent during the period.
Axis Securities added ITC and CCL products in its list of top picks as it sees value buying and small cap allocation increasing, while the brokerage dropped Aarti Industries and Escorts from its list.
SBI's economists say the surge in equity markets is not linked to economic recovery and maybe a sign of irrational exuberance.
As fundamentals will take time to turn positive, investors should stick to quality largecaps rather than midcaps or smallcaps.
A CNBC-TV18 report indicated that the country's second largest private sector lender may be planning to raise around $3 billion
"ICICI Bank's valuations are attractive at current levels and it is among our top picks in sector," Jefferies said.
Now Nifty would face a strong hurdle at 10,500-10,550 zone as the 200-days exponential moving average is placed on daily charts.
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.
Aashish Somaiyaa of Motilal Oswal Asset Management Company advised that one should avoid panic and remain invested.
Experts point out the broader structure of the market continues to remain weak as Nifty is making a lower top and lower bottom formation.
Nifty has given bullish crossover of 20 DMA and 50 DMA in the last week suggesting bullish movement in mid-term; however confirmation will come only above 9,200 mark which can take prices higher towards previous swing high placed at 9,550 mark..
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.
Fiscal stimulus, the extension of RBI forbearance, normal monsoon and results of the first half of FY21 will decide the course of India's financial sector.
Every time Nifty approached 8,800-8,850, buying emerged and finally we saw it surpassing 9200 on a closing basis last week. Technically, this development was crucial for our market as we can now see the immediate base getting shifted higher from 8,000 to 8,650-8,800.
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.
Hence every expert on the street advised buying quality stocks in a gradual manner instead of bulk purchases and waiting for the market bottom which no one has found yet in the history.
Vineeta Sharma of Narnolia Financial Advisors said the sharp fall in valuation was an opportunity for prudent long term equity investors.
A sustained trade below 8260 could drag the Index lower to levels of 8080 and 7800. On the flip side a trade beyond 8450 can activate short covering rallies taking Nifty higher to levels of 8740 and 8960.
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.
The restructuring of Yes Bank has to be seen in the light of failures of the NBFCs, IL&FS and DHFL and the crisis in banks like PMC Bank and PNB.