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
Buy on dips could continue to be a prudent strategy until the level of 12,800 holds.
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.
While the road ahead looks brighter, analysts and brokerages advise being prudent while picking stocks.
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.
Gaurav Garg of CapitalVia feels the LTC and reintroducing of Special Festival advance scheme for government employees are expected to boost the consumer demand by additional Rs 36,000 crore.
Moving ahead, the steam is still left and the bullish bias is expected to continue.
The Nifty has managed to close above the inverse head and shoulders neckline and the target, as per the pattern, is 11,800, which can be achieved if it sustains above 11,150 levels.
L&T is currently near the demand zone and chances of a reversal are very high.
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.
We recommend buying Larsen & Toubro around Rs 970-975 levels with a stop loss of Rs 940.
Even management commentary gave the market a confident outlook to withstand businesses against the COVID spread and its impact.
According to Prashanth Tapse, Surya Roshni, APL Apollo Tubes, Jindal Saw may benefit. Read on to find out which stocks other experts picked
Interventions by governments and central banks have prevented the economic situation from deteriorating significantly but it is unlikely that the recovery will be a V-shaped one, say experts.
The market's valuations have turned higher than long-period average and investors should be cautious and selective in picking stocks, say experts .
SBI's economists say the surge in equity markets is not linked to economic recovery and maybe a sign of irrational exuberance.
As fundamentals will take time to turn positive, investors should stick to quality largecaps rather than midcaps or smallcaps.
Pattern would be considered void on weekly close above 10,340, until then expect weakness to prevail with heightened volatility.
Majority of brokerages are bullish on L&T given its leadership position in the infrastructure segment, strong orderbook and healthy balance sheet
The structural reforms announced by the FM were hailed by experts and they said that the reforms are the long-term positives.
Prime Minister, Narendra Modi said the package will focus on four factors - Liquidity, Land, Labour and Laws.
While some sectors of the economy may see some relief after the lockdown ends, there are some, such as capital goods and consumer durables, that may have to wait for a longer time to see normalcy return to them.
On the daily chart, Nifty has also completed its Bearish ABCD Harmonic pattern at 9,650 levels and slipped below the potential reversal zone (PRZ) level, which indicates Nifty may face strong resistance around 9,650 level.
Current chart formation suggests a sustained rise above 7,900 will surely create a demand zone for the benchmark index.
Mitesh Thakkar of miteshthakkar.com recommends buying Hindustan Unilever with stop loss at Rs 2100 and target of Rs 2300 and M&M Financial Services with stop loss at Rs 355 and target of Rs 385.
The government consistently focuses on development of smart cities across country, especially since they came in to power in 2014.