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
If Nifty manages to breach 17,812, we might see it move higher towards 18,011 (1.38 percent extension level of the rise from 14,151-15,915, projected from 15,513), said Karan Pai of GEPL Capital
Here's what Shrikant Chouhan of Kotak Securities Ltd recommends investors should do with these stocks when the market resumes trading today.
A laggard in the ongoing rally in the stock markets, ITC is also seen benefitting from attractive valuations, a strong product portfolio and unlocking of value from a possible restructuring, analysts say
Any decisive trading above 15,050 on the Nifty will conclude the current correction leg and the new up wave will start.
The long-term bullish trend remains intact but in the medium-term, we might see the index in a range between 14,460 to 15,431 levels.
On the weekly chart, this current candle has engulfed its previous week's candle and if the index closes below 14,850, bearish engulfing will be formed on the weekly timeframe, which will be a negative signal.
As far as the levels are concerned, 15,050 – 15,200 – 15,400 are the important Fibonacci levels in the upward direction, whereas on the lower side, 14,700 – 14,500 are the key supports.
On the derivative front, Call writers at 14,000 and 14,200 strikes triggered short-covering which pushed Nifty towards 14,600 levels.
In the upcoming session, the market can witness a follow-up rally as there is still a lot of outstanding positions held by Call writers.
Overall Nifty is trading with bullish bias and it has a potential to trade towards 15,000 unless it gives closing below its 5-week SMA and last week's low standing around 14,350.
RSI has cooled off in the last week by retracing the 65-mark from the overbought zone on the daily time frame and has the potential to touch the previous swing high.
Prabhudas Lilladher believes that current uncertainty is a passing phase and return to normalcy will result in several beaten down segments bouncing back strongly from FY22.
After eight straight sessions of bull run, Nifty has formed a bearish ABCD harmonic pattern on the daily timeframe which is placed near 161.80 percent retracement from its previous intermediate low of 11,535 levels.
One should always avoid investing in bad quality businesses because as is said a rising tide lifts all the boats but the end outcome is always bad in investing if one ignores the quality aspect, Shailendra Kumar of Narnolia advised.
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
ITC traded higher in the previous week and the uptrend is likely to continue; Rs 160 should be considered the stoploss level on a closing basis, says Shabbir Kayyumi of Narnolia Financial Advisors. .
As the September quarter earnings bouyed market sentiment and increased hope for strong earnings growth in coming years, brokerages upgraded majority of quality stocks in current month.
Long-term investors should pick their favourite mid and smallcap shares gradually over the next few months, experts say.
After showing up-move from the lows recently, the Nifty struggled to sustain the gains on September 14 and closed the day lower by 24 points amid high volatility.
The banking index is trading in a rising channel and currently, it is trading near its lower trend line which increases chances of taking support near 22,000.
Neeraj Chadawar of Axis Securities believes that the equity will continue to trade on higher multiples for some more time.
While the market has rallied smartly, the rally has been highly concentrated with the top 15 stocks contributing over 70 percent of the returns.
India's stock market remains one of the most promising emerging markets of the world with tremendous growth potential as several structural reforms initiated by the Narendra Modi-led government assures that tomorrow belongs to India.
Given that India will remain a growth market in the long-term one cannot neglect growth stocks for a prolonged period of time, Jyoti Roy advised.
Investors look at the dividend yield to ensure a certain amount of return on their investment, even if share prices remain subdued. However, not all of them are attractive