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
Prakash Gaba of prakashgaba.com recommends buying Berger Paints with target at Rs 330 and stop loss at Rs 316, Federal Bank with target at Rs 95 and stop loss at Rs 88 and GAIL India with target at Rs 360 and stop loss at Rs 344.
Sudarshan Sukhani of s2analytics.com recommends buying UPL with stop loss at Rs 745 and target of Rs 770 and Titan Company with stop loss at Rs 906 and target of Rs 930.
Mitessh Thakkar of mitesshthakkar.com suggests buying Bata India with a stop loss of Rs 1028 and target of Rs 1060 and Colgate Palmolive with a stop loss of Rs 1079 and target of Rs 1222.
Elaborating on banks, analysts at the firm wrote that banks are finding the sweet spot of growth and credit quality.
Mitessh Thakkar of mitesshthakkar.com suggests selling Bata India with a stop loss of Rs 910 and target of Rs 860 and advises buying Federal Bank with a stop loss of Rs 78.5 and target of Rs 86.
Mitessh Thakkar of mitesshthakkar.com is of the view that one may buy M&M with a stoploss of Rs 766 and target of Rs 799.
Sudarshan Sukhani of s2analytics.com suggests buying Divis Labs with stop loss at Rs 1290 and target of Rs 1350 and JSW Steel with stop loss at Rs 375 and target of Rs 392.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Aurobindo Pharma with a stop loss of Rs 720 and target of Rs 755 and sell Equitas Holdings around Rs 131 with stop loss of Rs 136 and target of Rs 120.
Prakash Gaba of prakashgaba.com suggests buying India Cements with target at Rs 133 and stop loss at Rs 124, ITC with target at Rs 325 and stop loss at Rs 315 and Sun Pharma Advanced with target at Rs 425 and stop loss at Rs 390.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy IDFC Bank with a stop loss of Rs 39.8 and target of Rs 44 and sell Infosys with a stop loss of Rs 1363.5 and target of Rs 1320.
Sudarshan Sukhani of s2analytics.com is of the view that one may buy Britannia Industries with a target Rs 6540.
The focus of investors should be on buying quality which could withstand the correction and outperform index when the market starts rising.
Motilal Oswal expects ICICI Prudential margins to improve further to 18.2 percent by FY20E, boosting average operating RoEV to around 20 percent over FY18-20E.
Rajesh Agarwal of AUM Capital recommends buying Indraprastha Gas with stop loss at Rs 256 and target at Rs 276, a buy in Motherson Sumi Systems with stop loss at Rs 313 and target at Rs 333 and a buy also in ICICI Prudential Life Insurance with stop loss at Rs 398 and target at Rs 423.
The market’s focus will increasingly shift to macros and earnings. India’s macros have weakened considerably in the past few months. It will have to likely contend with a weaker macro in CY18/FY19 versus CY17/FY18 given the likely higher inflation/interest rates and possibly higher current account deficit/weaker currency, Kotak Institutional Equities said in a recent note.
On the higher side, the Nifty may move towards 10,910 and 11,030 over the short-term. On the lower end, support is pegged at 10,550.
Prakash Gaba of prakashgaba.com recommends buying Axis Bank with target at Rs 560 and stop loss at Rs 540, a buy in MCX India with target at Rs 810 and stop loss at Rs 780 and a buy also in Tata Motors DVR with target at Rs 205 and stop loss at Rs 191.
"We believe at current market price, there is no margin of safety and it has already discounted FY18-20 earnings growth. No doubt, the fundamentals of this Company are robust," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
ICICI Pru reported a 16% dip in net profit in 4QFY18, primarily on account of higher new business strain resulting from new business growth, says Sumit Bilgaiyan, Founder of Equity99.
"The stock may be bought in the range of Rs 385-390 for targets of Rs 425-445, keeping a stop loss below Rs 362," says Aditya Agarwal, Head Technical Research at Way2Wealth Brokers Pvt. Ltd.
"ICICI Prudential Life Insurance continues to be our top pick in life insurance space since its IPO with target of Rs 530 by FY19 end," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
The company expects strong growth opportunities for the life insurance sector and expects it to grow in-line with the nominal GDP growth. SMC Global Securities has a buy on the stock with target of Rs 505 per share.
Here is the list of 20 stocks that could give up to 50 percent return over a period of one year.
"Market cap to embedded value for ICICI Pru is 2.3 times which suggest comfortable valuations. Our target for the stock is Rs 520 with return of 31 percent," says Shailendra Kumar, Chief Investment Officer at Narnolia Securities.
Ashwani Gujral of ashwanigujral.com recommends buying Ceat, Jindal Steel & Power and State Bank of India.