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
According to Shardul Kulkarni of Angel Broking, one may short Indian Overseas Bank (IOB) at the current level with a target of Rs 45 and a stoploss of Rs 51.50.
Pritesh Mehta of IIFL recommends buying Indian Overseas Bank around Rs 50-52 with a target of Rs 58.
SP Tulsian of sptulsian.com feels that SBI, Allahabad Bank, Punjab National Bank, Yes Bank and UCO Bank may rise 5-10% on the back of policy changes for booking the mark-to-market losses.
According to Aashish Tater, Head of Research of Fortunewizard.com, as scenario in banking space is likely to be challenging, one may purchase Indian Overseas Bank (IOB) on scattered basis, which will give a tremendous returns from current levels.
Aashish Tater of Fortunewizard.com feels IFCI will get the banking license by either merging with LIC Housing or Tourism Finance. Indian Overseas Bank will be able to raise USD 500 mn through ECB for five and half years for expansions abroad, besides government money at Rs 78.56 coming in July, thus strengthening its balance sheet.
SP Tulsian of sptulsian.com advises to short UCO Bank at current levels as it may slip to Rs 74.
Ambareesh Baliga, Managing Partner- Global Wealth Management at Edelweiss Financial Services advises to avoid Indian Overseas Bank (IOB) at current levels.
According to Ashu Madan, president of core client group at Religare Securities, Rs 61-62 could be a decent support for Indian Overseas Bank (IOB). If that is broken it can go down to Rs 53-54 levels, he added.