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
The momentum could get concentrated to fewer stocks and sectors and hence, traders need to be very selective in stock picking for trading, expert advises
Federal Bank, ICICI Pru Life Insurance, Oberoi Realty among the stocks. With the Sensex and the Nifty reversing losses after the RBI decision, experts say the Nifty’s next stop could be 17,800. Banking and financial services, FMCG, IT, metal and pharma stocks supported the market.
We feel that the Nifty is in bounce back mode. If the Nifty sustains above 16,610 levels then it will move towards 16,800 in the coming days, said Vidnyan Sawant of GEPL Capital
Occurrence of a ‘Bullish Hammer’ on weekly scale near the confluence zone of a multi support area of its 200 week EMA reconfirm the strength of its ongoing channel support zone in Zensar Technologies. Trend strength indicator RSI too exhibits a positive crossover along with a likely trend break
Volatility is expected to remain high as India VIX remains above the 20 mark
After completing bullish ABCD Harmonic pattern near Rs 1,700 levels, Balkrishna Industries has continuously shown the strength and has taken an anchor support near its 100 – week exponential moving average on the weekly time frame.
"Bank of Baroda is outperforming the PSU banking index where it has witnessed a breakout of a bullish Inverse Head and Shoulder formation, to resume its bullish momentum."
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The current trend suggests bull run in the market is most likely to continue as the index has given breakout in the broader timeframes
Given the expected strong momentum, experts advise top 14 stock picks that are available at attractive valuations now
The market has remained volatile as coronavirus cases continue to rise in the country. Experts say every decline is an opportunity to buy quality stocks, with a strong recovery expected once infections reach their peak.
Overall experts feel the FY22 would remain strong for the market and economy, though COVID-19 may hit earnings in Q1FY22.
Looking at the technical setup, Nifty is expected to remain volatile for the next few trading sessions with a sideways to a bearish trading pattern. Support for the Nifty is placed near 14,400 and resistance is near 14,950
At the lower end, support for the Nifty is seen at 14,750 on the daily chart. The higher-end break of 15,250 will open the gate for 15,400 in the coming weeks.
We continue to believe that the AUM growth story remains intact with the benefit of MTM gains more than compensating for the stressed inflows.
On the technical front, now 13,000 should act as strong resistance for Nifty while 29,500 would be an immediate hurdle for Bank Nifty.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
Nifty closed at a 3-week low at 11,671 on October 29 and the breakdown of the 50-day average at 11,540 would accelerate the second round of profit-booking, pushing the index lower to 11,200.
Even management commentary gave the market a confident outlook to withstand businesses against the COVID spread and its impact.
Experts say market has already run ahead of fundamentals and a correction is due
Nifty has reached close to the resistance of 78.6 percent retracement of the entire downswing seen from January 2020 top to March 2020 bottom
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.
Bank Nifty index has key support in the range of 20,800-21,000 levels and the positive views will be negated if it breaches 20,400 on the downside.