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
In the very short term, as the majority of the momentum indicators are trading in overbought zones, the possibility of small retracement towards 10,500 levels cannot be denied.
On a lower side, crucial support is seen at 20 DMA standing around 9,600 mark and any decisive move below this zone can push Nifty lower towards 50 DMA around 9,300 mark.
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.
Mitesh Thakkar of miteshthakkar.com suggests selling Escorts with a stop loss of Rs 760 for target of Rs 725 and Mahindra & Mahindra with a stop loss of Rs 458 for target of Rs 435.
Mitesh Thakkar of miteshthakkar.com recommends buying Titan Company with a stop loss of Rs 1280 for target of Rs 1340 and Infosys with a stop loss of Rs 784 for target of Rs 820.
Prakash Gaba of prakashgaba.com recommends buying Havells India with target at Rs 645 and stop loss at Rs 623 and IndusInd Bank with target at Rs 1425 and stop loss at Rs 1297.
Sudarshan Sukhani of s2analytics.com recommends selling Balkrishna Industries with stop loss at Rs 1089 and target of Rs 1050 and Tata Elxsi with stop loss at Rs 955 and target of Rs 925.
According to Nomura, the overhang of whistleblower allegations is now behind and will prefer Infosys to TCS on valuations basis
Sudarshan Sukhani of s2analytics.com recommends buying Bosch with stop loss at Rs 15030 and target of Rs 15865 and Bharti Infratel with stop loss at Rs 249 and target of Rs 262.
Mitesh Thakkar of miteshthakkar.com recommends buying Ashok Leyland with a stop loss of Rs 78.8 and target of Rs 85 and Hindalco Industries with a stop loss of Rs 204 for target of Rs 218.
Sudarshan Sukhani of s2analytics.com recommends buying GAIL India with stop loss at Rs 120 and target of Rs 133 and Dr Reddy's Labs with stop loss at Rs 2900 and target of Rs 3050.
Mitesh Thakkar of miteshthakkar.com recommends buying Axis Bank with a stop loss of Rs 744.9 and target of Rs 780 and Bank of India with a stop loss of Rs 72.5 and target of Rs 78.5.
In a rangebound trade, experts advised focusing more on stock selection and trade management. Here is the list of 10 stocks which could return 14-24 percent in next 10-12 months:
Ashwani Gujral of ashwanigujral.com recommends buying Axis Bank with a stop loss of Rs 728, target of Rs 750, HDFC with a stop loss of Rs 2200, target of Rs 2310 and State Bank of India with a stop loss of Rs 310, target of Rs 334.
VK Vijaykumar of Geojit Financial Service feels the proposed AIF is better than the earlier one since this also includes projects referred to NCLT.
Ashwani Gujral of ashwanigujral.com suggests buying JSPL with stop loss at Rs 119 and target of Rs 130.
Among sectors we prefer to initiate longs in Auto, Banking and Metal space for reasonable upside as the risk reward remains favourable.
Going forward, 11,100 will act as immediate support for the Nifty, with 11,550 acting as next resistance, which is previous weeks high for the benchmark index
According to CLSA, GDP growth in FY20 is likely to be around 6 percent, much lower lower than the RBI's 6.9 percent projection.
The next immediate support for Nifty50 is placed at around 10,750 and then towards 10,600 levels, while resistance is observed at 11,110 and then towards 11,200 levels.
The golden rule of investment is to pour money in stocks that are trading at attractive levels compared to their intrinsic value, thus allowing investors to create wealth over a period of time
Prakash Gaba of prakashgaba.com suggets buying Bajaj Auto Pharma with target at Rs 2810 and stop loss at Rs 2717.
Sudarshan Sukhani of s2analytics.com recommends buying Mindtree with stop loss of Rs 702 and target of Rs 725 and Pidilite Industries with stop loss at Rs 1215 and target of Rs 1255.
Mitessh Thakkar of mitesshthakkar.com recommends buying ICICI Bank with a stop loss of Rs 424 and target of Rs 440 and Pidilite Industries with a stop loss of Rs 1224 and target of Rs 1270.
Though the midcaps are going through rough phase, we believe that it's a time to look for good pedigree stocks that delivered phenomenal performance in Q1 and are expected to do so in the subsequent quarters.