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
Given the improved sentiment after the counter-attack by bulls, the benchmark indices are expected to extend their upward rally amid possible consolidation. Below are some trading ideas for the near term.
The Nifty 50 is likely to trend higher and hit new highs amid consolidation. Below are some trading ideas for the near term.
Jubilant Ingrevia, Vishnu Prakash R Punglia, Piramal Enterprises, Balkrishna Industries, and Adani Ports and Special Economic Zone can also be on radar.
Since last 5 months Mrs. Bectors Food Specialities is making higher highs and higher lows indicating up thrust in the counter. At current juncture it has reversed from 200 DEMA high and low channel indicating upside in the counter.
ONGC has seen a decent correction from the highs in last couple of months as the crude Oil prices have cooled off from their highs. However, the prices are now showing signs of some pullback move as it has given a breakout from a trendline resistance.
If global cues are supportive, the Nifty can continue its journey north, with 17,400, 17,500 and 17,650 as immediate hurdles
The Nifty 50 extended its gains over the past four weeks to 7.5 percent, which indicates a positive momentum. If the uptrend persists, a record high can’t be ruled out in the coming days, experts said.
For the week, 18,350 remains the level to watch. Once it is surpassed, there is no major hurdle visible before 18,600
Dips should be utilised to create fresh longs in the largecap stocks. However, the real opportunity is seen in financial stocks, private & PSU banks and NBFCs, said Vinay Rajani of HDFC securities.
The primary trend of the market is bullish as Nifty has been holding above its 50, 100 and 200-day moving averages.