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
Here is what Mazhar Mohammad of chartviewindia.in, recommends investors should do with these stocks when the market resumes trading on October 27.
As the market seems to have the comfort of valuation now, it is time to lap up quality stocks, analysts point out.
Over the last five years, private sector banks have rapidly gained market share to around 30 percent (2020) from around 18 percent (2015).
Long-term investors should pick their favourite mid and smallcap shares gradually over the next few months, experts say.
Monthly and weekly Heikin candlestick patterns are flat bottom with higher high formations suggests prices can still trade higher towards previous swing pivot standing around 11,350 mark.
"Long term investors should not get carried away by such instant short term outperformance and can have exposure upto 20-25 percent in few promising quality mid & small cap stocks," Prashanth Tapse said.
Nifty Bank index has lost around 3 percent from the previous week and is trading just below 20,000-mark.
BSE Sensex shed 37 percent from its record high of 42273.87 touched on January 20, 2020.
Mitesh Thakkar of miteshthakkar.com recommends selling Coal India with a stop loss of Rs 162 for target of Rs 150 and Tata Motors with a stop loss of Rs 109 for target of Rs 100.
Ashwani Gujral of ashwanigujral.com recommends buying Chambal Fertilizers with a stop loss of Rs 175, target of Rs 190 and Muthoot Finance with a stop loss of Rs 768, target of Rs 790.
As market was testing new highs, emergence of geopolitical tensions could force people to book profits, said experts
Sudarshan Sukhani of s2analytics.com recommends selling IDFC First Bank with stop loss at Rs 45 and target of Rs 41 and UPL with stop loss at Rs 570 and target of Rs 548.
Sudarshan Sukhani of s2analytics.com recommends selling Tata Motors with stop loss at Rs 164 and target of Rs 157 and Motherson Sumi Systems with stop loss at Rs 134 and target of Rs 122.
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.
On the weekly time frame, the Relative Strength Index is trading near 50 levels, showing strength.
Here are 10 stocks where brokerages initiated coverage in August with a buy rating:
Umesh Mehta, Head of Research, Samco Securities said the first year of any government is generally turbulent and it may not really cheer the stock market
Trends on SGX Nifty indicate a positive opening for the broader indices in India, a gain of 25 points or 0.23 percent. Nifty futures were trading around 11,079-level on the Singaporean Exchange.
Prakash Gaba of prakashgaba.com suggets buying Bajaj Auto Pharma with target at Rs 2810 and stop loss at Rs 2717.
The Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
Mitessh Thakkar of mitesshthakkar.com advises buying Power Grid with a stop loss of Rs 206 and target of Rs 218.
Sudarshan Sukhani of s2analytics.com advises buying Divis Labs with stop loss at Rs 1590 and target of Rs 1650 and Indraprastha Gas with stop loss at Rs 310 and target of Rs 325.
Ashwani Gujral of ashwanigujral.com recommends buying State Bank of India with a stop loss of Rs 360, target of Rs 374 and Bharti Airtel with a stop loss of Rs 348, target of Rs 364.
In the last week, the S&P BSE Midcap index shed 0.57 percent, Smallcap Index fell 1.55 percent, while S&P BSE Largecap Index was up 0.84 percent in the week gone by.
Sun Pharma has support around 370-390 but it seems unlikely that the stock will hold on to that level.