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
Irrespective of global or political set up on the domestic front, long-term investors should focus on stocks which can give earnings visibility, and have a high margin of safety with high corporate governance standards.
Mayuresh Joshi of Angel Broking said the year 2019 will largely be a year of stock-specific stories.
Ashwani Gujral of ashwanigujral.com recommends buying Siemens with a stop loss of Rs 1020, target of Rs 1075, Can Fin Homes with a stop loss of Rs 284, target of Rs 298 and Bajaj Finserv with a stop loss of Rs 6400, target of Rs 6550.
Mitessh Thakkar of mitesshthakkar.com advises buying CESC with a target Rs 750.
Credit Suisse prefers investment-related stocks (due to likely continuity in public capex growth) over consumption-focussed stocks for India in 2019.
Rajat Bose of rajatkbose.com recommends buying Cadila Healthcare with stop loss below Rs 350.80 for target of Rs 356.90 and Colgate Palmolive with stop loss below Rs 1259.90 for targets of Rs 1299 and Rs 1308.
Investec sees L&T as an excellent play on government capex pick-up.
The stock can be bought at current levels and on dips towards 1395 with a stop loss below Rs 1360 and a target of Rs 1600 levels, says Ashish Chaturmohta of Sanctum Wealth Management.
Globally almost all the markets like commodity, currency, bond and equity have been very volatile in the last two-three months. Some of this volatility is still continuing in the developed equity markets
MOSL’s FY19/20 Nifty EPS estimates have been cut by 4.4/2.9% to Rs 515/655 v/s Rs 539/674 earlier
The stock can be bought at the current level and on dips to Rs 1,390 with a stop loss below Rs 1,360 for a target of Rs 1,600, says Ashish Chaturmohta of Sanctum Wealth Management.
Further rise in VIX is likely cap the gains in markets and trade in a range. VIX needs to move lower for market to move higher, says Ashish Chaturmohta of Sanctum Wealth Management.
Ashwani Gujral of ashwanigujral.com suggests buying Ceat with a stop loss of Rs 1240, target of Rs 1285, ICICI Bank with a stop loss of Rs 355, target of Rs 372 and Larsen & Toubro with a stop loss of Rs 1375, target of Rs 1430.
Being an election year, Ajay Jaiswal of Stewart & Mackertich Wealth Management believes a sharp upside cannot be ruled out in case the ruling Government once again manages to retain thumping mandate.
Price growth in Nifty will mostly come through earnings growth while valuation multiple will see continued contraction, said Vineeta Sharma of Narnolia Financial Advisors
Macquarie has an overweight rating on L&T and has raised its target price to Rs 1,880 from Rs 1,825 while JP Morgan has also maintained its overweight rating on L&T with a target price of Rs 1,570
Rajesh Agarwal of AUM Capital recommends buying Canara Bank with stop loss at Rs 255 and target of Rs 272 and Graphite India with stop loss at Rs 938 and target of Rs 970.
Invest in quality companies with a healthy growth outlook and reasonable valuations.
Macquarie has recently upgraded its Nifty50 target to 12,000 for March 2019. It expects largecaps to perform better than midcaps as the latter is still vulnerable from valuations and flows
Traders can initiate fresh shorts in the range Rs 1225-1235. It closed at Rs 1221 on October 15, 2018.
We expect further rebound in markets but the upside also seems capped. The Nifty50 may face hurdle in the 10,550-10,700 zone while 10,100 would continue to act as crucial support
Use the dips in the market to accumulate or buy into quality stocks.
On profitability front, the company’s consolidated operating margins stood 16.2 percent in Q1-FY19 at Rs 45,683 million as against 14.6 percent at Rs 34,693 million in Q1-FY18.
In the current market scenario one should avoid leveraged positions and investors should diversify their portfolios, said Ajay Jaiswal of Stewart & Mackertich Wealth Management
Despite the current correction, the Nifty50 is still up 8.6 percent and the Sensex 11.3 percent year-to-date, which indicated that the market has been managing to climb all wall of worries very easily, experts said.