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 the Nifty 50 climbs and sustains above 24,500, then a further rally towards 24,800-25,000 seems likely, while the support is placed at 24,300. Here are some trading ideas for the near term.
The Nifty 50 is likely to be rangebound with resistance at 23,100-23,200 and support at 22,800 in the coming sessions, while volatility is expected to be elevated ahead of the Lok Sabha election results.
JBM Auto formed a robust bullish candlestick pattern on the daily charts with significantly higher volumes, after several weeks of consolidation. The stock traded above all key moving averages.
JBM Auto has seen a decisive breakout of falling resistance trendline and formed robust bullish candlestick pattern on the daily charts with healthy volumes. The stock stayed above all key moving averages.
BLS International has seen a breakout of downwad sloping resistance trendline in previous session. Further, the stock traded well above all key moving averages.
Poly Medicure has formed Bullish Engulfing candlestick pattern on the daily timeframe and settled way above 20-day EMA. The stock has rallied 6.6 percent to Rs 1,429 with above average volumes.
BSE shares rose 5.4 percent to Rs 603, the highest closing level since October 27, 2022, and formed bullish candlestick pattern on the daily charts with robust volumes. The stock has seen a consolidation breakout, while it has been forming higher highs, higher lows since April.
JSW Steel has given a nice breakout of recent consolidation in previous session with 2.4 percent rally and continued uptrend on Thursday too, with 2.6 percent gains to close at Rs 749, the highest closing level since January 19, 2023.
Trent had seen an ‘Impulsive’ upmove in the month of February which was followed by a consolidation phase in last one month. The prices have now given a breakout from this consolidation indicating a continuation of its short term uptrend.
Kalyan Jewellers India also came back strong after recent consolidation, rising nearly 10 percent to Rs 119.5, and formed strong bullish candlestick pattern on the daily charts with robust volumes.
Adani Green Energy was locked in 5 percent upper circuit for eighth consecutive session after taking support at around Rs 439 on February 28. The stock closed at Rs 682.7, rising 55 percent in last eight sessions in a row, and the volume on last Friday was above average volumes.
JSW Energy surged nearly 13 percent to Rs 235, the highest closing level since February 9, and formed large bullish candle on the daily charts, with strong volumes after taking support at Rs 205 in previous session.
JBM Auto was also in action, climbing 5 percent to Rs 581, the highest closing level since April 22, 2022 and formed long bullish candle on the daily charts, with making higher high higher low formation. This stock also traded above all key moving averages, which is a positive sign.
Campus Activewear has reported more than 6 percent gains for yet another session, rising 6.5 percent to Rs 420. The stock has formed long bullish candle on the daily charts with healthy volumes for second day in a row, closing above 50-day EMA (exponential moving average).
Triveni Turbine shares gained nearly 5 percent to Rs 266.30, trading near all-time high and formed bullish candlestick pattern on the daily charts. On monthly charts, there was Three White Soldiers kind of pattern formation.
Nifty has also reclaimed the level above its 20-day EMA, currently placed at 14,156. The volume-weighted average traded price of Nifty February future on February 1 is 14,033 which could act as strong support, going forward.
In the last seven day's rally (From Oct 25 to Nov 5) S&P BSE Sensex rallied 3 percent.
Long-term investors can buy into this counter with a stop below Rs 305 on a closing basis.
The rally which pushed Sensex to record highs was just handful of largecap stocks while most well-known stocks in the broader market were hitting 52-weeks low.
Higher crude oil prices and the rupee’s weakness will continue to dampen sentiment putting pressure on the fiscal deficit and bond yields in the short term, Vikas Jain of Reliance Securities feels
Rajat Bose of rajatkbose.com is of the view that one may sell JBM Auto.
With PM Modi’s vision of making every Indian car electric by 2030, stocks of automakers and ancillary companies which produce electric parts or vehicles are likely to take off.
Mitessh Thakkar of miteshthacker.com is of the view that one may buy Dr Reddy’s Labs and sell Pidilite Industries.
Ashish Kyal of Waves Strategy Advisors advises buying Cox & Kings with a target of Rs 253.
Jay Thakkar of Sharekhan is of the view that one may buy JBM Auto with a target of Rs 236.10.