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
Experts said there could be some volatility going ahead due to RBI monetary policy meeting, as well as the outcome of state elections.
Mitessh Thakkar of mitesshthakkar.com suggests buying Bajaj Finance with a stop loss of Rs 2414 and target of Rs 2490, Escorts with a stop loss of Rs 678 and target of Rs 718 and Balkrishna Industries with a stop loss of Rs 972 and target of Rs 1022.
Mitessh Thakkar of mitesshthakkar.com suggests buying Axis Bank with a stop loss of Rs 617 and target of Rs 645, Colagate Palmolive with a stop loss of Rs 1114 and target of Rs 1160 and IRB Infra above Rs 145 with stop loss of Rs 141.5 and target of Rs 154.
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.
Sudarshan Sukhani of s2analytics.com suggests selling Bharti Infratel with stop loss at Rs 270 and target of Rs 261, IRB Infra with stop loss at Rs 178 and target of Rs 168 and Jet Airways with stop loss at Rs 270 and target of Rs 255.
We have a sell recommendation for IRB Infrastructure for target of Rs 165 per share, says Dinesh Rohira of 5nance.com.
We advise to remain selective on the stock with strict stop loss and expect the Nifty index to trade at 11670 levels on upside and 11420 levels on the downside on weekly basis, says Dinesh Rohira of 5nance.com.
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.
Sudarshan Sukhani of s2analytics.com recommends buying Torrent Pharma with a stop loss at Rs 1675 and target of Rs 1735 and NIIT Tech with a stop loss at Rs 1125 and target of Rs 1325.
The relative strength index (RSI) is trading near 66 levels, which indicates positive momentum and support for the bullish rally
Prakash Gaba of prakashgaba.com advises buying ACC with a target at Rs 1400.
"The scrip is facing a resistance at Rs 260 levels and support is placed at Rs 215 levels which will remain crucial. We have a sell recommendation for IRB Infra which is currently trading at Rs. 238.50," says Dinesh Rohira, Founder & CEO at 5nance.com.
Rising crude oil prices will add to the inflationary pressure in the domestic economy, coupled with weakening of the rupee against the dollar and dramatic political scenario in Karnataka.
Prakash Gaba of prakashgaba.com is of the view that one can buy Biocon with target at Rs 665 and stop loss at Rs 635 and sell DCB Bank with target at Rs 175 and stop loss at Rs 184.
"We recommend buying IRB for the upside target of Rs 325, keeping a stop loss below at Rs 250," says Vinay Rajani of HDFC Securities.
To conclude, we advise remaining long on the Nifty with an upside target of 10,883, keeping a strict stop loss at 10,630 levels on a closing basis.
Rajesh Agarwal of AUM Capital recommends buying Kotak Mahindra Bank with target of Rs 1240 and stop loss at Rs 1185, a buy in Selan Exploration Technology with target at Rs 270 and stop loss at Rs 252 and a buy also on IRB Infrastructure Developers with target at Rs 295 and stop loss at Rs 272.
"IRB was stuck in a trading range between Rs 171 and Rs 260 which in turn has formed a Rectangular Channel pattern on the weekly chart. Projections indicate the stock is all set to move towards its conservative target of Rs 302," says Hadrien Mendonca, Senior Technical Analyst at IIFL.
The Nifty50 has to surpass its previous peak of 10,480 on a closing basis for the momentum to sustain or to gather more strength.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 29 points or 0.28 percent. Nifty futures were trading around 10,497-level on the Singaporean Exchange.
The consolidation is likely to continue for next 3-4 months. In fact, the entire calendar year is expected to be tough.
"Strong support zone is seen around 10030 levels. We are expecting Nifty to trade within a range of 10030-10170 levels ahead of FOMC Meeting due later on Wednesday," says Rajesh Agarwal of AUM Capital.
Mitessh Thakkar of miteshthacker.com recommends selling Cipla with a stop loss of Rs 590 and target of Rs 564 and advises buying NIIT Tech with a stop loss of Rs 854 and target of Rs 900.
Ruchit Jain of Angel Broking advises buying Godrej Consumer with a target of Rs 1091.
CLSA feels Maruti has potential to further strengthen India franchise with unveiling new compact SUV.